Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 02, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | Xencor Inc | |
Entity Central Index Key | 1,326,732 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 46,703,182 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 13,561 | $ 14,528 |
Marketable securities | 141,225 | 115,608 |
Accounts receivable | 6,938 | 8,616 |
Prepaid expenses and other current assets | 4,365 | 2,901 |
Total current assets | 166,089 | 141,653 |
Property and equipment, net | 3,360 | 3,105 |
Patents, licenses, and other intangible assets, net | 10,886 | 10,362 |
Marketable securities - long term | 237,865 | 273,340 |
Other assets | 103 | 103 |
Total assets | 418,303 | 428,563 |
Current liabilities | ||
Accounts payable | 4,275 | 3,880 |
Accrued expenses | 6,502 | 6,692 |
Current portion of deferred rent | 135 | 128 |
Current portion of deferred revenue | 95,788 | 95,521 |
Income taxes | 175 | 65 |
Total current liabilities | 106,875 | 106,286 |
Deferred rent, less current portion | 361 | 397 |
Deferred revenue, less current portion | 7,319 | 7,926 |
Total liabilities | 114,555 | 114,609 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value: 10,000,000 authorized shares; -0- issued and outstanding shares at March 31, 2017 and December 31, 2016 | ||
Common stock, $0.01 par value: 200,000,000 authorized shares at March 31, 2017 and December 31, 2016; 46,689,447 issued and outstanding at March 31, 2017 and 46,567,978 issued and outstanding at December 31, 2016 | 467 | 466 |
Additional paid-in capital | 557,473 | 552,889 |
Accumulated other comprehensive loss | (1,196) | (1,441) |
Accumulated deficit | (252,996) | (237,960) |
Total stockholders' equity | 303,748 | 313,954 |
Total liabilities and stockholders' equity | $ 418,303 | $ 428,563 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Condensed Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 46,689,447 | 46,567,978 |
Common stock, shares outstanding | 46,689,447 | 46,567,978 |
Statements of Comprehensive Inc
Statements of Comprehensive Income (Loss) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue | ||
Collaborations, licenses and milestones | $ 4,340,000 | $ 7,252,000 |
Operating expenses | ||
Research and development | 15,048,000 | 10,035,000 |
General and administrative | 4,811,000 | 3,950,000 |
Total operating expenses | 19,859,000 | 13,985,000 |
Loss from operations | (15,519,000) | (6,733,000) |
Other income (expenses) | ||
Interest income | 1,057,000 | 359,000 |
Interest expense | (3,000) | (27,000) |
Other income | 3,000 | |
Total other income, net | 1,054,000 | 335,000 |
Loss before income tax | (14,465,000) | (6,398,000) |
Income tax expense | 170,000 | 0 |
Net loss | (14,635,000) | (6,398,000) |
Other comprehensive loss | ||
Net unrealized gain on marketable securities | 245,000 | 619,000 |
Comprehensive loss | $ (14,390,000) | $ (5,779,000) |
Net loss per share attributable to common shareholders: | ||
Basic and diluted net loss (in dollars per share) | $ (0.31) | $ (0.16) |
Weighted average shares used to compute net loss per share attributable to common stockholders: | ||
Weighted-average common shares outstanding- basic and diluted (in shares) | 46,598,797 | 40,626,729 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total |
Increase (Decrease) in Stockholders' Equity | |||||
Adoption of ASU 2016-09 (see Note 1) | Accounting Standard Update 2016 09 | $ 401 | $ (401) | |||
Balance, restated | $ 466 | 553,290 | $ (1,441) | (238,361) | $ 313,954 |
Balance (Scenario, Previously Reported) at Dec. 31, 2016 | $ 466 | 552,889 | (1,441) | (237,960) | 313,954 |
Balance at Dec. 31, 2016 | 313,954 | ||||
Balance (in shares) (Scenario, Previously Reported) at Dec. 31, 2016 | 46,567,978 | ||||
Balance (in shares) at Dec. 31, 2016 | 46,567,978 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise and vesting of stock awards | $ 1 | 1,025 | 1,026 | ||
Issuance of common stock upon exercise and vesting of stock awards (in shares) | 121,469 | ||||
Comprehensive income (loss) | 245 | (14,635) | (14,390) | ||
Stock-based compensation expense | 3,158 | 3,158 | |||
Balance at Mar. 31, 2017 | $ 467 | $ 557,473 | $ (1,196) | $ (252,996) | $ 303,748 |
Balance (in shares) at Mar. 31, 2017 | 46,689,447 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (14,635) | $ (6,398) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 410 | 282 |
Amortization of premium on marketable securities | 659 | 426 |
Stock-based compensation | 3,158 | 1,960 |
Abandonment of capitalized intangible assets | 9 | 9 |
Gain on sale of marketable securities available-for-sale | (3) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,678 | (604) |
Interest receivable | (479) | 41 |
Prepaid expenses and other assets | (1,465) | (683) |
Accounts payable | 395 | (2,109) |
Accrued expenses | (190) | (1,243) |
Income taxes | 110 | |
Deferred rent | (30) | (26) |
Deferred revenue | (340) | (5,952) |
Net cash used in operating activities | (10,720) | (14,300) |
Cash flows from investing activities | ||
Purchase of marketable securities | (6,988) | (16,340) |
Purchase of intangible assets | (702) | (343) |
Purchase of property and equipment | (494) | (317) |
Proceeds from sale and maturities of marketable securities | 16,911 | 26,660 |
Net cash provided by investing activities | 8,727 | 9,660 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock upon exercise of stock awards | 1,026 | 200 |
Net cash provided by financing activities | 1,026 | 200 |
Net decrease in cash and cash equivalents | (967) | (4,440) |
Cash and cash equivalents, beginning of period | 14,528 | 12,590 |
Cash and cash equivalents, end of period | 13,561 | 8,150 |
Cash paid during the period for: | ||
Interest | 3 | |
Income taxes | 60 | |
Supplemental disclosures of non-cash investing activities | ||
Unrealized gain on marketable securities available for sale | $ 245 | $ 619 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim financial statements for Xencor, Inc. (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of interim financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets and liabilities at the date of the interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited interim financial statements and related notes should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2016 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 1, 2017. Marketable Securities The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters and concentration and diversification. The Company invests its excess cash primarily in marketable securities issued by investment grade institutions. The Company considers its marketable securities to be available-for-sale. These assets are carried at fair value and the unrealized gains and losses are included in accumulated other comprehensive income (loss). Accrued interest on marketable securities is included in marketable securities. If a decline in the value of a marketable security in the Company’s investment portfolio is deemed to be other-than-temporary, the Company writes down the security to its current fair value and recognizes a loss as a charge against income. The Company reviews its portfolio of marketable securities, using both quantitative and qualitative factors, to determine if declines in fair value below cost are other-than-temporary. Recent Accounting Pronouncements Pronouncements Adopted in 2017 In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company's payments for tax withholdings should be classified. In addition, the standard allows an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, as currently required, or account for forfeitures of awards in the period that they occur. We adopted the new standard on January 1, 2017 and established an accounting policy election to account for forfeitures when they occur. We applied the modified retrospective approach which resulted in a cumulative-effect adjustment of a decrease of $0.4 million to retained earnings and additional paid-in capital. The adoption will result in periodic adjustments in the recognition of stock compensation expense associated with forfeitures in the period in which they occur. The remaining aspects of adopting ASU 2016-09 did not have a material impact on our financial statement position or results from operations. Pronouncements Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , as a new Topic, Accounting Standards Codification Topic 606 (“ASU 2014-09”). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customer Topic 606, Principal versus Agent Considerations , which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers Topic 606, Identifying Performance Obligations and Licensing , which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers Topic 606, Narrow-Scope Improvements and Practical Expedients , related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. In December 2016, the FASB issued ASU No. 2016-20, T echnical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , which amends certain narrow aspects of the guidance issued in ASU 2014-09 including guidance related to the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples. These ASUs are effective for public entities for interim and annual reporting periods beginning after December 15, 2017, including interim periods within that year, which for us is the period beginning January 1, 2018. The Company will adopt the new standard in 2018 and is currently evaluating and planning for its implementation including assessing its overall impact during the second and third quarter of 2017. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. Credit losses on available-for-sale securities will be required when the amortized cost is below the fair market value.The amendment is effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. We will apply the standard’s provision as a cumulative effect adjustment to retained earnings as of the beginning of the first effective reporting period. We do not expect the adoption to have a material impact on our results of operations or financial position. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The standard clarifies when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. The amendment is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We continue to review the requirements of this standard and any potential impact it may have on our cash flow statement. In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which amends the guidance on the amortization period of premiums on certain purchased callable debt securities by shortening the amortization period of premiums to the earliest call date. The amendment affects all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date. The amendment is effective for fiscal years beginning after December 31, 2018 with early adoption permitted. The Company will review the requirements of the standard but does not anticipate it will have a significant impact on our financial statements. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s 2016 Annual Report on Form 10-K. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 2. Fair Value of Financial Instruments Financial instruments included in the financial statements include cash equivalents, marketable securities, accounts receivable, accounts payable and accrued expenses. Marketable securities and cash equivalents are carried at fair value. The fair value of the other financial instruments closely approximates their fair value due to their short maturities. The Company accounts for recurring and non-recurring fair value measurements in accordance with FASB Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures . ASC 820 defines fair value, establishes a fair value hierarchy for assets and liabilities measured at fair value, and requires expanded disclosure about fair value measurements. The ASC 820 hierarchy ranks the quality of reliable inputs, or assumptions, used in the determination of fair value and requires assets and liabilities carried at fair value to be classified and disclosed in one of the following three categories: Level 1— Fair Value is determined by using unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2— Fair Value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets that are not active. Related inputs can also include those used in valuation or other pricing models, such as interest rates and yield curves that can be corroborated by observable market data. Level 3— Fair value is determined by inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgments to be made by the reporting entity –e.g. determining an appropriate discount factor for illiquidity associated with a given security. The Company measures the fair value of financial assets using the highest level of inputs that are reasonably available as of the measurement date. The assets recorded at fair value are classified within the hierarchy as follows for the periods reported (in thousands): March 31, 2017 December 31, 2016 Total Total Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Money Market Funds $ 11,057 $ 11,057 $ — $ 12,137 $ 12,137 $ — Corporate Securities 164,682 — 164,682 181,483 — 181,483 Government Securities 214,408 — 214,408 207,465 — 207,465 $ 390,147 $ 11,057 $ 379,090 $ 401,085 $ 12,137 $ 388,948 Our policy is to record transfers of assets between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. During the three months ended March 31, 2017, there were no transfers between Level 1 and Level 2. The Company does not have any Level 3 assets or liabilities. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Net Loss Per Share | |
Net Loss Per Share | 3. Net Loss Per Share We compute net loss per common share by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period without consideration of common stock equivalents. Diluted loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common stock equivalents outstanding for the period. The treasury stock method is used to determine the dilutive effect of the Company’s stock option grants. Potentially dilutive securities consisting of stock issuable under options and our 2013 Employee Stock Purchase Plan (ESPP) are not included in the diluted net loss per common share calculation where the inclusion of such shares would have had an antidilutive effect. Basic and diluted net loss per common share is computed as follows (in thousands except share and per share data): Three Months Ended March 31, 2017 2016 (in thousands, except share and per share data) Numerator: Net loss attributable to common stockholders $ (14,635) $ (6,398) Denominator: Weighted-average common shares outstanding used in computing basic and diluted net loss 46,598,797 40,626,729 Basic and diluted net loss per common share $ (0.31) $ (0.16) For the three months ended March 31, 2017 and 2016 1,474,000 shares and 1,050,000 shares, respectively, of potentially dilutive securities have been excluded from the calculation of diluted net loss per common share as the effect of including such securities would have been antidilutive. |
Comprehensive Loss
Comprehensive Loss | 3 Months Ended |
Mar. 31, 2017 | |
Comprehensive Loss | |
Comprehensive loss | 4. Comprehensive loss Comprehensive loss is comprised of net loss and other comprehensive income (loss). For the three months ended March 31, 2017 and 2016, the only component of other comprehensive loss is net unrealized gains on marketable securities. There were no material reclassifications out of accumulated other comprehensive income (loss) during the three months ended March 31, 2017 and 2016. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2017 | |
Marketable Securities | |
Marketable Securities | 5. Marketable Securities The Company’s marketable securities held as of March 31, 2017 and December 31, 2016 are summarized below: Gross Gross Amortized Unrealized Unrealized March 31, 2017 Cost Gains Losses Fair Value (in thousands) Money Market Funds $ 11,057 $ — $ — $ 11,057 Corporate Securities 165,269 10 (597) 164,682 Government Securities 215,008 16 (616) 214,408 $ 391,334 $ 26 $ (1,213) $ 390,147 Reported as Cash and cash equivalents $ 11,057 Marketable securities 379,090 Total investments $ 390,147 Gross Gross Amortized Unrealized Unrealized December 31, 2016 Cost Gains Losses Fair Value (in thousands) Money Market Funds $ 12,137 $ — $ — $ 12,137 Corporate Securities 182,394 6 (917) 181,483 Government Securities 207,986 44 (565) 207,465 $ 402,517 $ 50 $ (1,482) $ 401,085 Reported as Cash and cash equivalents $ 12,137 Marketable securities 388,948 Total investments $ 401,085 The maturities of the Company’s marketable securities are as follows: Amortized Estimated March 31, 2017 Cost Fair Value (in thousands) Mature in one year or less $ 141,371 $ 141,225 Mature after one year 238,906 237,865 $ 380,277 $ 379,090 Amortized Estimated December 31, 2016 Cost Fair Value (in thousands) Mature in one year or less $ 115,748 $ 115,608 Mature after one year 274,632 273,340 $ 390,380 $ 388,948 The unrealized losses on available-for-sale investments and their related fair values as of March 31, 2017 and December 31, 2016 are as follows: Less than 12 months 12 months or greater March 31, 2017 Fair value Unrealized losses Fair value Unrealized losses (in thousands) Corporate Securities $ 78,164 $ (82) $ 72,512 $ (515) Government Securities 48,472 (71) 141,980 (545) $ 126,636 $ (153) $ 214,492 $ (1,060) Less than 12 months 12 months or greater December 31, 2016 Fair value Unrealized losses Fair value Unrealized losses (in thousands) Corporate Securities $ 82,215 $ (133) $ 88,990 $ (784) Government Securities 17,573 (16) 149,694 (549) $ 99,787 $ (149) $ 238,684 $ (1,333) The unrealized losses from the listed securities are due to a change in the interest rate environment and not a change in the credit quality of the securities. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Stock-Based Compensation | |
Stock-Based Compensation | 6. Stock Based Compensation Our Board of Directors and the requisite stockholders previously approved the 2010 Equity Incentive Plan (the 2010 Plan). In October 2013, our Board of Directors approved the 2013 Equity Incentive Plan (the 2013 Plan) and in November 2013 our stockholders approved the 2013 Plan. The 2013 Plan became effective as of December 3, 2013, the date of the Company’s initial public offering (IPO). As of December 2, 2013, we suspended the 2010 Plan and no additional awards may be granted under the 2010 Plan. Any shares of common stock covered by awards granted under the 2010 Plan that terminate after December 2, 2013 by expiration, forfeiture, cancellation or other means without the issuance of such shares will be added to the 2013 Plan reserve. As of March 31, 2017 the total number of shares of common stock available for issuance under the 2013 Plan is 8,768,599, which includes 2,684,456 of common stock that were available for issuance under the 2010 Plan as of the effective date of the 2013 Plan. Unless otherwise determined by the Board, beginning January 1, 2014, and continuing until the expiration of the 2013 Plan, the total number of shares of common stock available for issuance under the 2013 Plan will automatically increase annually on January 1 of each year by 4% of the total number of issued and outstanding shares of common stock as of December 31 of the immediate preceding year. Pursuant to approval by our board on January 1, 2017, the total number of shares of common stock available for issuance under the 2013 Plan was increased by 1,862,719 shares. As of March 31, 2017 a total of 4,686,672 options had been issued under the 2013 Plan. In November 2013, our Board of Directors and stockholders approved the 2013 Employee Stock Purchase Plan (ESPP), which became effective as of December 5, 2013. We have reserved a total of 581,286 shares of common stock for issuance under the ESPP. Unless otherwise determined by our Board, beginning on January 1, 2014, and continuing until the expiration of the ESPP, the total number of shares of common stock available for issuance under the ESPP will automatically increase annually on January 1 by the lesser of (i) 1% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year, or (ii) 621,814 shares of common stock. Pursuant to approval by our board, there was no increase in the number of authorized shares in the ESPP in 2017. As of March 31, 2017, we have issued a total of 221,486 shares of common stock under the ESPP. Total employee, director and non-employee stock-based compensation expense recognized for the three months ended March 31, 2017 are as follows (in thousands): Three Months Ended March 31, 2017 2016 General and administrative $ 1,467 $ 952 Research and development 1,691 1,008 $ 3,158 $ 1,960 The following table summarizes option activity under our stock plans and related information: Weighted Weighted Average Average Number of Exercise Remaining Aggregate Shares subject Price Contractual Intrinsic to outstanding (Per Term Value options Share) (in years) (in thousands) Balances at December 31, 2016 4,045,801 $ 11.95 7.82 Options granted 1,135,600 $ 22.67 Options forfeited (72,678) $ 15.40 Options exercised (121,469) $ 8.45 Balance at March 31, 2017 4,987,254 $ 14.43 8.05 $ 47,683 Exercisable 2,072,560 $ 9.61 6.70 $ 29,654 We calculate the intrinsic value as the difference between the exercise price of the options and the closing price of common stock of $23.92 per share as of March 31, 2017. Weighted average fair value of options granted during the three-month period ended March 31, 2017 and 2016 was $16.95 and $8.30 per share, respectively. There were 957,000 options granted during the period ended March 31, 2016. We estimated the fair value of each stock option using the Black-Scholes option-pricing model based on the date of grant of such stock option with the following weighted average assumptions for the three months ended March 31, 2017 and 2016: Options Three Months Ended March 31, 2017 2016 Expected term (years) 6.2 6.1 Expected volatility 89.2 % 75.8 % Risk-free interest rate 2.07 % 1.56 % Expected dividend yield — % — % ESPP Three Months Ended March 31, 2017 2016 Expected term (years) 0.5 - 2.0 0.5 - 2.0 Expected volatility 67.8 - 79.8 % 67.8 % Risk-free interest rate .55 - .93 % .55 - .93 % Expected dividend yield — % — % As of March 31, 2017, the unamortized compensation expense related to unvested stock options was $35.4 million. As of March 31, 2016, the unamortized compensation expense related to unvested stock options net of estimated forfeitures was $16.3 million. The remaining unamortized compensation expense will be recognized over the next three years. As of March 31, 2017 and 2016, the unamortized compensation expense under our ESPP was $339,000 and $418,000, respectively. The remaining unamortized expense will be recognized over the next 8.5 months. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies | |
Commitments and Contingencies | 7. Commitments and Contingencies Operating Leases The Company leases office and laboratory space in Monrovia, CA through June 2020 with an option to renew for an additional five years. The Company also leases office space in San Diego, CA through June 2020. The leases are accounted for as non-cancellable operating leases and future minimum payments are as follows (in thousands): Years ending December 31, For the remainder of the fiscal year $ 607 2018 833 2019 859 2020 466 Thereafter — Rent expense for the three months ended March 31, 2017 and 2016 was $189,000 and $143,000 respectively. In April 2017, the Company entered into a Letter of Intent (“LOI”) to lease additional office space in San Diego, CA. Under the terms of the LOI, the Company would lease approximately 23,700 square feet of office space for a five-year period beginning from the date of occupancy. The total payments over the term of the lease would be $5.7 million. The Company expects to complete the lease negotiations and take occupancy of the space in the second quarter of 2017. Contingencies From time to time, the Company may be subject to various litigation and related matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred. On March 3, 2015, a verified class action complaint, captioned DePinto v. John S. Stafford, et al., C.A. No. 10742, was filed in the Court of Chancery of the State of Delaware against certain of the Company’s current and former directors alleging cause of action for Breach of Fiduciary Duty and Invalidity of Director and Stockholder Consents. In general, the complaint alleged that the plaintiff and the class he seeks to represent were shareholders of the Company during the recapitalization and certain related transactions that the Company underwent in 2013 and that the defendants breached their fiduciary duties in the course of approving that series of transactions. It also challenged as invalid certain corporate acts taken in the 2013 time period. The plaintiffs and the Company agreed to separate the litigation into two separate claims; Count I relating to the claim of Breach of Fiduciary Duty by the current and former directors of the Company and, Count II relating to the Invalidity of Director and Stockholder consents. On December 14, 2015, the Delaware Chancery Court entered an Order and Partial Final Judgment in connection with Count II and approved the settlement of the invalidity claims, validating each corporate act challenged in the complaint, dismissing with prejudice Count II of the complaint (the invalidity claims) and granting plaintiff’s counsel a fee award of $950,000. We have paid the plaintiff’s legal award of $950,000 net of insurance proceeds of $187,500 which has been reflected as a charge in our 2015 operations. On September 27, 2016, the parties engaged in voluntary mediation and agreed to settle the complaint’s remaining claim, Count II, for a total payment of $2.375 million to the class certified by the Delaware Court of Chancery. The settlement, which is subject to approval by the Court, was reached without any party admitting wrong-doing. Under the terms of the settlement, no payments shall be made to the plaintiffs by the Company or any of the defendants in the lawsuit other than payments covered by the Company’s insurance. On April 4, 2017, the Delaware Court of Chancery approved the Settlement between the parties. On May 1, 2017, the Company’s insurance carriers fully funded the settlement account. We continue to recognize legal costs related to the litigation as incurred and offset any insurance proceeds when approved and issued. As of March 31, 2017 and December 31, 2016 we have reported the $2.355 million settlement as a payable and also reflected a receivable of the same amount for the insurance coverage that will fund the settlement. We are obligated to make future payments to third parties under in‑license agreements, including sublicense fees, royalties, and payments that become due and payable on the achievement of certain development and commercialization milestones. As the amount and timing of sublicense fees and the achievement and timing of these milestones are not probable and estimable, such commitments have not been included on our balance sheet. |
Collaboration and Licensing Agr
Collaboration and Licensing Agreements | 3 Months Ended |
Mar. 31, 2017 | |
Collaboration and Licensing Agreements | |
Collaboration and Licensing Agreements | 8. Collaboration and Licensing Agreements Following is a summary description of the arrangements that generated revenue in the three months ended March 31, 2017 and 2016. Novartis In June 2016, the Company entered into a Collaboration and License Agreement (the Novartis Agreement) with Novartis Institutes for BioMedical Research, Inc., (Novartis), to develop and commercialize bispecific and other Fc modulated antibody drug candidates using the Company’s proprietary XmAb® technologies and drug candidates. Pursuant to the Agreement: · The Company granted Novartis certain exclusive rights to research, develop and commercialize XmAb14045 and XmAb13676, two development stage products that incorporate the Company’s bispecific Fc technology, · The Company will apply its bispecific technology in up to four target pair antibodies identified by Novartis (each a Global Discovery Program) and, · The Company will provide Novartis with a non-exclusive license to certain of its Fc technologies to apply against up to ten targets identified by Novartis. The Company received a non-refundable upfront payment under the Novartis Agreement of $150 million in July 2016 and is eligible to receive up to $2.4 billion in future development, regulatory and sales milestones in total for all programs that could be developed under the Novartis Agreement. The Company evaluated the Novartis Agreement and determined that it is a revenue arrangement with multiple deliverables or performance obligations. The Company’s substantive performance obligations under the Novartis Agreement include: · delivery of an exclusive license to commercialize XmAb14045 in worldwide territories outside the U.S., with worldwide co-exclusive rights with Xencor to research, develop and manufacture XmAb14045 · delivery of an exclusive license to commercialize XmAb13676 in worldwide territories outside the U.S., with worldwide co-exclusive rights with Xencor to research, develop and manufacture XmAb13676 · application of its bispecific technology to four Novartis selected target pair antibodies and delivery of four bispecific product candidates and, · delivery of a non-exclusive license to its Fc technologies: Cytotoxic, Xtend and Immune Inhibitor The Company determined that the $150 million upfront payment represents the total initial consideration and was allocated to each of the deliverables using the relative selling price method. The Company determined that each of the development and regulatory milestones is substantive. Although sales milestones are not considered substantive, they are still recognized upon achievement of a milestone. After identifying each of the deliverables included in the arrangement, the Company determined the relative selling price using its best estimate of selling price for each of the deliverables. The total allocable consideration of $150 million was allocated to the deliverables based on the relative selling price method as follows: * $27.1 million to certain rights to the XmAb14045 Program, * $31.4 million to certain rights to the XmAb13676 Program, * $20.05 million to each of the four Global Discovery Programs and, * $11.3 million to the Fc licenses The Company recognized as license revenue the amount of the total allocable consideration allocated to the rights to the XmAb13676 and XmAb14045 Programs upon delivery of the exclusive license to Novartis both of which were transferred as of the effective date of the Novartis Agreement. At the time that each Global Discovery Program is accepted by Novartis, the Company will recognize collaboration revenue of $20.05 million for each program. Since Novartis has substitution rights for up to four target pair antibodies, revenue recognition may be delayed until the earlier that Novartis has an open IND for a delivered bispecific Discovery Program or the right to substitute the target pair lapses. No bispecific antibodies for Global Discovery Programs have been delivered as of March 31, 2017. The Company will recognize as licensing revenue the amount of the total consideration allocated to the Fc license over the five year research term beginning from the effective date of the Novartis Agreement. During the three months ended March 31, 2017, we recognized $0.6 million. No revenue was recognized for the three months ended March 31, 2016. As of March 31, 2017 there is $89.7 million in deferred revenue related to the arrangement. Amgen, Inc. In September 2015, the Company entered into a research and license agreement (the Amgen Agreement) with Amgen, Inc. (Amgen) to develop and commercialize bispecific antibody product candidates using the Company’s proprietary XmAb® bispecific Fc technology. Under the Amgen Agreement, the Company granted an exclusive license to Amgen to develop and commercialize bispecific drug candidates from the Company’s preclinical program that bind the CD38 antigen and the cytotoxic T-cell binding domain CD3, (the CD38 Program). The Company will also apply its bispecific technology to five previously identified Amgen provided targets (each a Discovery Program). The Company received a $45.0 million upfront payment from Amgen and is eligible to receive up to $1.7 billion in future development, regulatory and sales milestones in total for all six programs and is eligible to receive royalties on any global net sales of products. In the fourth quarter ended December 31, 2015, the Company transferred the research material and data related to its CD38 Program to Amgen. Amgen will assume full responsibility for the further development and commercialization of product candidates under the CD38 Program. Assuming successful development and commercialization of a product, the Company could receive up to $355 million in milestones payments which include $55 million in development milestones, $70 million in regulatory milestones and, $230 million in sales milestones. If commercialized, the Company is eligible to receive from high single-digit up to low double-digit royalties on global net sales of approved products under the CD38 Program. Pursuant to the Amgen Agreement, for each of the five Discovery Programs the Company will apply its bispecific technology to antibody molecules provided by Amgen that bind Discovery Program Targets and return the bispecific product candidates to Amgen for further testing, development and commercialization. Subject to approval by Xencor, Amgen has the right to substitute up to three of the previously identified targets during the research term provided that Amgen has not initiated non-human primate studies with the Xencor provided bispecific candidate. The initial research term is three years from the date of the Amgen Agreement but Amgen, at its option, may request an extension of one year if Xencor has not completed delivery of all five Discovery Program bispecific candidates to Amgen. Amgen will assume full responsibility for development and commercialization of product candidates under each of the Discovery Programs. Assuming successful development and commercialization of each Discovery Program compound, the Company could receive up to $260.5 million in milestones for each compound which include $35.5 million in development milestones, $55.0 million in regulatory milestones and $170.0 million in sales milestones. If commercialized, the Company is eligible to receive mid to high single-digit royalties on global net sales of approved products. The Company evaluated the Amgen Agreement and determined that it is a revenue arrangement with multiple deliverables or performance obligations. The Company’s substantive performance obligations under the Amgen Agreement include delivery of research material and data related to its CD38 Program and application of its bispecific technology to five Amgen provided targets and delivery of the five bispecific product candidates. The Company evaluated the Amgen Agreement and determined that the CD38 Program and each of the five Discovery Programs represent separate units of accounting. The $45 million upfront payment represents the total initial consideration and was allocated to each of the deliverables using the relative selling price method. After identifying each of the deliverables included in the arrangement, the Company determined its best estimate of selling price for each of the deliverables. The total allocable consideration of $45 million was allocated to the deliverables based on the relative selling price method as follows: $13.75 million to the CD38 Program and, $6.25 million to each of the five Discovery Programs The Company recognized as collaboration revenue the amount of consideration allocated to the CD38 Programs upon delivery of the CD38 research material and data to Amgen in the fourth quarter of 2015. During 2016, the Company recognized as collaboration revenue the amount of consideration for delivery of three Discovery Programs; the Company delivered bispecific antibody candidates for five Discovery Programs and Amgen elected to substitute one of the originally identified antibody candidates. There were no additional Discovery Programs delivered in the three months ended March 31, 2017 and there were no additional substitutions of originally identified candidate by Amgen during the three months ended March 31, 2017. During the three months ended March 31, 2017 and 2016, we recognized zero and $6.25 million in revenue under this arrangement, respectively. As of March 30, 2017 there is $12.5 million in deferred revenue related to the arrangement. Merck Sharp & Dohme Corporation In July 2013, we entered into a License Agreement with Merck Sharp & Dohme Corp (Merck). Under the terms of the agreement, we provided Merck with a non-exclusive commercial license to certain patent rights to our Fc domains to apply to one of their compounds. The agreement provided for an upfront payment of $1.0 million and annual maintenance fees totaling $0.5 million. We are also eligible to receive future milestones and royalties as Merck advances the compound into clinical development. We determined that the deliverables under this agreement were the non-exclusive commercial license and the options. The options are considered substantive and contingent and no amount of the upfront payment was allocated to these options. We also determined that the future milestones and related payments were substantive and contingent and did not allocate any of the upfront payment to the milestones. During each of the three months ended March 31, 2017 and 2016 we recognized $25,000 of revenue respectively. As of March 31, 2017, there is $25,000 of deferred revenue related to this arrangement. Alexion Pharmaceuticals, Inc. In January 2013, we entered into an option and license agreement with Alexion Pharmaceuticals, Inc. (Alexion). Under the terms of the agreement, we granted to Alexion an exclusive research license, with limited sublicensing rights, to make and use our Xtend technology to evaluate and advance compounds against six different target programs during a five-year research term under the agreement, up to completion of the first multi-dose human clinical trial for each target compound. Alexion may extend the research term for an additional three years upon written notice to us and payment of an extension fee of $2.0 million. Alexion is responsible for conducting all research and development activities under the agreement at its own expense. Under the agreement, we received an upfront payment of $3.0 million. Alexion is also required to pay an annual maintenance fee of $0.5 million during the research term of the agreement and $1.0 million during any extension of the research term. We determined that $2.5 million of the upfront fee was allocated to the license and is being recognized into income over the initial research term of five years. In the third quarter of 2014, Alexion achieved a clinical development milestone with an undisclosed molecule to be used against an undisclosed target. In the fourth quarter of 2015, Alexion exercised its option to take an exclusive commercial license and achieved a further clinical development milestone. In December 2016, Alexion achieved a Phase 3 clinical development milestone for an undisclosed target for which we received a $5 million milestone payment. During each of the three months ended March 31, 2017 and 2016 we recognized $250,000 in revenues. As of March 31, 2017, we have deferred revenue related to this arrangement of $0.8 million. Novo Nordisk A/S In December 2014, we entered into a collaboration and license agreement with Novo Nordisk A/S (Novo). Under the terms of the agreement we granted Novo a research license to use certain Xencor technologies including our bispecific, Fcy-IIb, Xtend and other technologies during a two-year research term. In connection with the agreement we received a $2.5 million upfront payment and funding for research support during the research term. We recognized the $2.5 million upfront payment as income over the two-year research term. The research funding is being recognized into income over the period that the services are being provided. We determined that future milestone payments were substantive and contingent and we did not allocate any of the upfront consideration to these milestones. During the three months ended March 31, 2017 and 2016, we recognized zero and $0.7 million of revenue, respectively. As of March 31, 2017, we have no deferred revenue related to this arrangement. CSL Limited In February 2009, we entered into a Research License and Commercialization Agreement with CSL Limited (CSL). Under the agreement, we provided CSL with a research license to our Fc Cytotoxic technology and options to non-exclusive commercial licenses. CSL elected to exercise one commercial license for a compound, CSL362. In 2013 CSL sublicensed CSL362 (now called talacotuzumab) to Janssen Biotech Inc. (Janssen Biotech). In March 2017, CSL, through its sub-licensee, Janssen Biotech, initiated a Phase 3 clinical trial for CSL362. As a result of the Phase 3 clinical trial initiation, we received a milestone payment of $3.5 million. During the three months ended March 31, 2017 and March 31, 2016, we recognized $3.5 million and zero of revenue, respectively. As of March 31, 2017, we have no deferred revenue related to this arrangement. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Taxes | |
Income Taxes | 9. Income taxes The provision for income taxes for the three-month period ended March 31, 2017 represents the interim period tax allocation of the federal and state alternative minimum tax based on the Company’s projected year-end effective income tax rates which cannot be offset by the Company’s net operating loss carryforwards, No provision for income tax was made for the three-month period ended March 31, 2016 because the Company incurred a loss from operations and its projected year end effective tax rate was zero. The Company has deferred tax assets consisting primarily of net operating loss and tax credit carryforwards that have been fully offset by a valuation allowance. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Polices) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim financial statements for Xencor, Inc. (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of interim financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets and liabilities at the date of the interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited interim financial statements and related notes should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2016 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 1, 2017. |
Marketable Securities | Marketable Securities The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters and concentration and diversification. The Company invests its excess cash primarily in marketable securities issued by investment grade institutions. The Company considers its marketable securities to be available-for-sale. These assets are carried at fair value and the unrealized gains and losses are included in accumulated other comprehensive income (loss). Accrued interest on marketable securities is included in marketable securities. If a decline in the value of a marketable security in the Company’s investment portfolio is deemed to be other-than-temporary, the Company writes down the security to its current fair value and recognizes a loss as a charge against income. The Company reviews its portfolio of marketable securities, using both quantitative and qualitative factors, to determine if declines in fair value below cost are other-than-temporary. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pronouncements Adopted in 2017 In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company's payments for tax withholdings should be classified. In addition, the standard allows an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, as currently required, or account for forfeitures of awards in the period that they occur. We adopted the new standard on January 1, 2017 and established an accounting policy election to account for forfeitures when they occur. We applied the modified retrospective approach which resulted in a cumulative-effect adjustment of a decrease of $0.4 million to retained earnings and additional paid-in capital. The adoption will result in periodic adjustments in the recognition of stock compensation expense associated with forfeitures in the period in which they occur. The remaining aspects of adopting ASU 2016-09 did not have a material impact on our financial statement position or results from operations. Pronouncements Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , as a new Topic, Accounting Standards Codification Topic 606 (“ASU 2014-09”). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customer Topic 606, Principal versus Agent Considerations , which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers Topic 606, Identifying Performance Obligations and Licensing , which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers Topic 606, Narrow-Scope Improvements and Practical Expedients , related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. In December 2016, the FASB issued ASU No. 2016-20, T echnical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , which amends certain narrow aspects of the guidance issued in ASU 2014-09 including guidance related to the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples. These ASUs are effective for public entities for interim and annual reporting periods beginning after December 15, 2017, including interim periods within that year, which for us is the period beginning January 1, 2018. The Company will adopt the new standard in 2018 and is currently evaluating and planning for its implementation including assessing its overall impact during the second and third quarter of 2017. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which amends the guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. Credit losses on available-for-sale securities will be required when the amortized cost is below the fair market value.The amendment is effective for fiscal years beginning after December 15, 2019 including interim periods within those fiscal years. We will apply the standard’s provision as a cumulative effect adjustment to retained earnings as of the beginning of the first effective reporting period. We do not expect the adoption to have a material impact on our results of operations or financial position. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The standard clarifies when cash receipts and cash payments have aspects of more than one class of cash flows and cannot be separated, classification will depend on the predominant source or use. The amendment is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We continue to review the requirements of this standard and any potential impact it may have on our cash flow statement. In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, which amends the guidance on the amortization period of premiums on certain purchased callable debt securities by shortening the amortization period of premiums to the earliest call date. The amendment affects all entities that hold investments in callable debt securities that have an amortized cost basis in excess of the amount that is repayable by the issuer at the earliest call date. The amendment is effective for fiscal years beginning after December 31, 2018 with early adoption permitted. The Company will review the requirements of the standard but does not anticipate it will have a significant impact on our financial statements. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s 2016 Annual Report on Form 10-K. |
Fair Value of Financial Instr17
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value of Financial Instruments | |
Schedule of assets recorded at fair value | The assets recorded at fair value are classified within the hierarchy as follows for the periods reported (in thousands): March 31, 2017 December 31, 2016 Total Total Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Money Market Funds $ 11,057 $ 11,057 $ — $ 12,137 $ 12,137 $ — Corporate Securities 164,682 — 164,682 181,483 — 181,483 Government Securities 214,408 — 214,408 207,465 — 207,465 $ 390,147 $ 11,057 $ 379,090 $ 401,085 $ 12,137 $ 388,948 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Net Loss Per Share | |
Schedule of basic and diluted net loss per common share | Basic and diluted net loss per common share is computed as follows (in thousands except share and per share data): Three Months Ended March 31, 2017 2016 (in thousands, except share and per share data) Numerator: Net loss attributable to common stockholders $ (14,635) $ (6,398) Denominator: Weighted-average common shares outstanding used in computing basic and diluted net loss 46,598,797 40,626,729 Basic and diluted net loss per common share $ (0.31) $ (0.16) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Marketable Securities | |
Schedule of marketable securities | Gross Gross Amortized Unrealized Unrealized March 31, 2017 Cost Gains Losses Fair Value (in thousands) Money Market Funds $ 11,057 $ — $ — $ 11,057 Corporate Securities 165,269 10 (597) 164,682 Government Securities 215,008 16 (616) 214,408 $ 391,334 $ 26 $ (1,213) $ 390,147 Reported as Cash and cash equivalents $ 11,057 Marketable securities 379,090 Total investments $ 390,147 Gross Gross Amortized Unrealized Unrealized December 31, 2016 Cost Gains Losses Fair Value (in thousands) Money Market Funds $ 12,137 $ — $ — $ 12,137 Corporate Securities 182,394 6 (917) 181,483 Government Securities 207,986 44 (565) 207,465 $ 402,517 $ 50 $ (1,482) $ 401,085 Reported as Cash and cash equivalents $ 12,137 Marketable securities 388,948 Total investments $ 401,085 |
Schedule of maturities of marketable securities | Amortized Estimated March 31, 2017 Cost Fair Value (in thousands) Mature in one year or less $ 141,371 $ 141,225 Mature after one year 238,906 237,865 $ 380,277 $ 379,090 Amortized Estimated December 31, 2016 Cost Fair Value (in thousands) Mature in one year or less $ 115,748 $ 115,608 Mature after one year 274,632 273,340 $ 390,380 $ 388,948 |
Schedule of unrealized losses on available-for-sale investments | The unrealized losses on available-for-sale investments and their related fair values as of March 31, 2017 and December 31, 2016 are as follows: Less than 12 months 12 months or greater March 31, 2017 Fair value Unrealized losses Fair value Unrealized losses (in thousands) Corporate Securities $ 78,164 $ (82) $ 72,512 $ (515) Government Securities 48,472 (71) 141,980 (545) $ 126,636 $ (153) $ 214,492 $ (1,060) Less than 12 months 12 months or greater December 31, 2016 Fair value Unrealized losses Fair value Unrealized losses (in thousands) Corporate Securities $ 82,215 $ (133) $ 88,990 $ (784) Government Securities 17,573 (16) 149,694 (549) $ 99,787 $ (149) $ 238,684 $ (1,333) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stock-Based Compensation | |
Schedule of total employee, director and non-employee stock-based compensation expense recognized | Total employee, director and non-employee stock-based compensation expense recognized for the three months ended March 31, 2017 are as follows (in thousands): Three Months Ended March 31, 2017 2016 General and administrative $ 1,467 $ 952 Research and development 1,691 1,008 $ 3,158 $ 1,960 |
Schedule of weighted average assumptions used for estimation of fair value of stock options | Options Three Months Ended March 31, 2017 2016 Expected term (years) 6.2 6.1 Expected volatility 89.2 % 75.8 % Risk-free interest rate 2.07 % 1.56 % Expected dividend yield — % — % |
Schedule of weighted average assumptions used for estimation of fair value of ESPP | ESPP Three Months Ended March 31, 2017 2016 Expected term (years) 0.5 - 2.0 0.5 - 2.0 Expected volatility 67.8 - 79.8 % 67.8 % Risk-free interest rate .55 - .93 % .55 - .93 % Expected dividend yield — % — % |
Summary of stock option activity | Weighted Weighted Average Average Number of Exercise Remaining Aggregate Shares subject Price Contractual Intrinsic to outstanding (Per Term Value options Share) (in years) (in thousands) Balances at December 31, 2016 4,045,801 $ 11.95 7.82 Options granted 1,135,600 $ 22.67 Options forfeited (72,678) $ 15.40 Options exercised (121,469) $ 8.45 Balance at March 31, 2017 4,987,254 $ 14.43 8.05 $ 47,683 Exercisable 2,072,560 $ 9.61 6.70 $ 29,654 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies | |
Schedule of future minimum payments for non-cancellable operating leases | The leases are accounted for as non-cancellable operating leases and future minimum payments are as follows (in thousands): Years ending December 31, For the remainder of the fiscal year $ 607 2018 833 2019 859 2020 466 Thereafter — |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Details) - Accounting Standard Update 2016 09 $ in Thousands | Dec. 31, 2016USD ($) |
Additional Paid-in Capital | |
Adoption of ASU 2016-09 (see Note 1) | $ 401 |
Accumulated Deficit | |
Adoption of ASU 2016-09 (see Note 1) | $ (401) |
Fair Value of Financial Instr23
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value of Financial Instruments | ||||
Money Market Funds | $ 13,561 | $ 14,528 | $ 8,150 | $ 12,590 |
Total Fair Value | 390,147 | 401,085 | ||
Money Market Funds | ||||
Fair Value of Financial Instruments | ||||
Money Market Funds | 11,057 | 12,137 | ||
Corporate Securities | ||||
Fair Value of Financial Instruments | ||||
Securities | 164,682 | 181,483 | ||
Government Securities | ||||
Fair Value of Financial Instruments | ||||
Securities | 214,408 | 207,465 | ||
Level 1 | ||||
Fair Value of Financial Instruments | ||||
Total Fair Value | 11,057 | 12,137 | ||
Level 1 | Money Market Funds | ||||
Fair Value of Financial Instruments | ||||
Money Market Funds | 11,057 | 12,137 | ||
Level 2 | ||||
Fair Value of Financial Instruments | ||||
Total Fair Value | 379,090 | 388,948 | ||
Level 2 | Corporate Securities | ||||
Fair Value of Financial Instruments | ||||
Securities | 164,682 | 181,483 | ||
Level 2 | Government Securities | ||||
Fair Value of Financial Instruments | ||||
Securities | $ 214,408 | $ 207,465 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net loss attributable to common stockholders | $ (14,635) | $ (6,398) |
Denominator: | ||
Weighted-average common shares outstanding- basic and diluted (in shares) | 46,598,797 | 40,626,729 |
Basic and diluted net loss (in dollars per share) | $ (0.31) | $ (0.16) |
Net Loss Per Share - Anti-dilut
Net Loss Per Share - Anti-dilutive securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net Loss Per Share | ||
Anti-dilutive securities (in shares) | 1,474,000 | 1,050,000 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities | ||
Amortized cost | $ 391,334 | $ 402,517 |
Gross unrealized gains | 26 | 50 |
Gross unrealized losses | (1,213) | (1,482) |
Fair value | 390,147 | 401,085 |
Marketable securities | ||
Schedule of Available-for-sale Securities | ||
Fair value | 379,090 | 388,948 |
Money Market Funds | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 11,057 | 12,137 |
Fair value | 11,057 | 12,137 |
Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 165,269 | 182,394 |
Gross unrealized gains | 10 | 6 |
Gross unrealized losses | (597) | (917) |
Fair value | 164,682 | 181,483 |
Government Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 215,008 | 207,986 |
Gross unrealized gains | 16 | 44 |
Gross unrealized losses | (616) | (565) |
Fair value | 214,408 | 207,465 |
Cash and Cash Equivalents | ||
Schedule of Available-for-sale Securities | ||
Fair value | $ 11,057 | $ 12,137 |
Marketable Securities - Maturit
Marketable Securities - Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Maturing in one year or less | $ 141,371 | $ 115,748 |
Maturing after one year through five years | 238,906 | 274,632 |
Total amortized cost | 380,277 | 390,380 |
Estimate Fair Value | ||
Maturing in one year or less | 141,225 | 115,608 |
Maturing after one year through five years | 237,865 | 273,340 |
Total estimated fair value | $ 379,090 | $ 388,948 |
Marketable Securities - Unreali
Marketable Securities - Unrealized losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair value | ||
Fair value, less than 12 months | $ 126,636 | $ 99,787 |
Fair value, 12 months or greater | 214,492 | 238,684 |
Unrealized losses | ||
Unrealized losses, Less than 12 months | (153) | (149) |
Unrealized losses, 12 months or greater | (1,060) | (1,333) |
Corporate Securities | ||
Fair value | ||
Fair value, less than 12 months | 78,164 | 82,215 |
Fair value, 12 months or greater | 72,512 | 88,990 |
Unrealized losses | ||
Unrealized losses, Less than 12 months | (82) | (133) |
Unrealized losses, 12 months or greater | (515) | (784) |
Government Securities | ||
Fair value | ||
Fair value, less than 12 months | 48,472 | 17,573 |
Fair value, 12 months or greater | 141,980 | 149,694 |
Unrealized losses | ||
Unrealized losses, Less than 12 months | (71) | (16) |
Unrealized losses, 12 months or greater | $ (545) | $ (549) |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - shares | Dec. 02, 2013 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Stock-based compensation | ||||
Common stock, shares issued | 46,689,447 | 46,567,978 | ||
Employee stock options | ||||
Stock-based compensation | ||||
Options granted (in shares) | 1,135,600 | 957,000 | ||
Employee Stock Purchase Plan | ||||
Stock-based compensation | ||||
Total number of shares of common stock available for issuance | 581,286 | |||
Awards issued under the plan (in shares) | 221,486 | |||
Annual increase in shares of common stock available for issuance (in shares) | 0 | |||
Employee Stock Purchase Plan | Maximum | ||||
Stock-based compensation | ||||
Annual percentage increase in shares of common stock available for issuance | 1.00% | |||
Annual increase in shares of common stock available for issuance (in shares) | 621,814 | |||
The 2013 Plan | ||||
Stock-based compensation | ||||
Total number of shares of common stock available for issuance | 8,768,599 | |||
Annual percentage increase in shares of common stock available for issuance | 4.00% | |||
Awards issued under the plan (in shares) | 4,686,672 | |||
Annual increase in shares of common stock available for issuance (in shares) | 1,862,719 | |||
The 2010 Plan | ||||
Stock-based compensation | ||||
Total number of shares of common stock available for issuance | 2,684,456 | |||
Options granted (in shares) | 0 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock-based compensation | ||
Total employee, director and non-employee stock-based compensation expense | $ 3,158 | $ 1,960 |
General and administrative | ||
Stock-based compensation | ||
Total employee, director and non-employee stock-based compensation expense | 1,467 | 952 |
Research and development | ||
Stock-based compensation | ||
Total employee, director and non-employee stock-based compensation expense | $ 1,691 | $ 1,008 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 02, 2013 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Employee stock options | ||||
Number of Shares subject to outstanding options | ||||
Balance at the beginning of the period (in shares) | 4,045,801 | |||
Options granted (in shares) | 1,135,600 | 957,000 | ||
Options forfeited (in shares) | (72,678) | |||
Options exercised (in shares) | (121,469) | |||
Balance at the end of the period (in shares) | 4,987,254 | 4,045,801 | ||
Exercisable options (in shares) | 2,072,560 | |||
Weighted Average Exercise Price (Per Share) | ||||
Balance at the beginning of the period (in dollars per share) | $ 11.95 | |||
Options granted (in dollars per share) | 22.67 | |||
Options forfeited (in dollars per share) | 15.40 | |||
Options exercised (in dollars per share) | 8.45 | |||
Balance at the end of the period (in dollars per share) | 14.43 | $ 11.95 | ||
Exercisable (in dollars per share) | $ 9.61 | |||
Weighted-average remaining contractual life | 8 years 18 days | 7 years 9 months 26 days | ||
Weighted-average remaining contractual life of awards exercisable | 6 years 8 months 12 days | |||
Aggregate intrinsic value of options outstanding | $ 47,683 | |||
Aggregate intrinsic value of options exercisable | $ 29,654 | |||
Closing price of common stock (in dollars per share) | $ 23.92 | |||
Weighted average fair value of options granted (in dollars per share) | $ 16.95 | $ 8.30 | ||
The 2010 Plan | ||||
Number of Shares subject to outstanding options | ||||
Options granted (in shares) | 0 |
Stock-Based Compensation - FV o
Stock-Based Compensation - FV of employee stock options (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Compensation expense | ||
Total employee, director and non-employee stock-based compensation expense | $ 3,158,000 | $ 1,960,000 |
Employee stock options | ||
Weighted average assumptions for estimated fair value of employee stock options | ||
Expected volatility (as a percent) | 89.20% | 75.80% |
Risk-free interest rate (as a percent) | 2.07% | 1.56% |
Expected term (years) | 6 years 2 months 12 days | 6 years 1 month 6 days |
Compensation expense | ||
Unamortized compensation expense related to unvested options | $ 35,400,000 | $ 16,300,000 |
Period to recognize unamortized compensation expense | 3 years | |
Employee Stock Purchase Plan | ||
Weighted average assumptions for estimated fair value of employee stock options | ||
Expected volatility, low end of range (as a percent) | 67.80% | |
Expected volatility, high end of range (as a percent) | 79.80% | |
Expected volatility (as a percent) | 67.80% | |
Risk-free interest rate, low end of range (as a percent) | 0.55% | 0.55% |
Risk-free interest rate, high end of range (as a percent) | 0.93% | 0.93% |
Compensation expense | ||
Unamortized compensation expense related to unvested options | $ 339,000 | $ 418,000 |
Period to recognize unamortized compensation expense | 8 months 15 days | |
Employee Stock Purchase Plan | Minimum | ||
Weighted average assumptions for estimated fair value of employee stock options | ||
Expected term (years) | 6 months | 6 months |
Employee Stock Purchase Plan | Maximum | ||
Weighted average assumptions for estimated fair value of employee stock options | ||
Expected term (years) | 2 years | 2 years |
General and administrative | ||
Compensation expense | ||
Total employee, director and non-employee stock-based compensation expense | $ 1,467,000 | $ 952,000 |
Research and development | ||
Compensation expense | ||
Total employee, director and non-employee stock-based compensation expense | $ 1,691,000 | $ 1,008,000 |
Commitments and Contingencies33
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2017USD ($)ft² | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Operating Leases | |||
For the remainder of the fiscal year | $ 607,000 | ||
2,018 | 833,000 | ||
2,019 | 859,000 | ||
2,020 | 466,000 | ||
Net rent expense | $ 189,000 | $ 143,000 | |
Monrovia | |||
Renewal term | 5 years | ||
Forecast | |||
Lease term | 5 years | ||
Area of property | ft² | 23,700 | ||
Operating Leases | |||
Total payments | $ 5,700,000 |
Commitments and Contingencies -
Commitments and Contingencies - Litigation (Details) | Sep. 27, 2016USD ($) | Mar. 31, 2017USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($) |
Commitments and Contingencies | ||||
Number of claims | item | 2 | |||
Insurance proceeds | $ 187,500 | |||
Paid legal award | $ 2,375,000 | $ (950,000) | ||
Outstanding settlement amount | $ 2,355,000 | $ 2,355,000 | ||
Insurance receivable | $ 2,335,000 | $ 2,335,000 |
Collaboration and Licensing A35
Collaboration and Licensing Agreements (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Jun. 30, 2016USD ($)productitem | Sep. 30, 2015USD ($)item | Dec. 31, 2014USD ($) | Jul. 31, 2013USD ($)item | Jan. 31, 2013USD ($)item | Feb. 28, 2009item | Mar. 31, 2017USD ($)item | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)item | |
Collaboration research and licensing agreements | ||||||||||||
Revenue recognized | $ 4,340,000 | $ 7,252,000 | ||||||||||
Current portion of deferred revenue | $ 95,788,000 | $ 95,521,000 | 95,788,000 | $ 95,521,000 | ||||||||
License Agreement | Merck Sharp & Dohme Corp. | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Nonrefundable upfront payment | $ 1,000,000 | |||||||||||
Annual maintenance fees | $ 500,000 | |||||||||||
Revenue recognized | 25,000 | 25,000 | ||||||||||
Deferred revenue | 25,000 | 25,000 | ||||||||||
Number of compounds | item | 1 | |||||||||||
Portion of nonrefundable upfront payment allocated to option | $ 0 | |||||||||||
License Agreement | Alexion Pharmaceuticals, Inc. | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Nonrefundable upfront payment | 2,500,000 | |||||||||||
Research term of revenue recognized | 5 years | |||||||||||
Option and license agreement | Alexion Pharmaceuticals, Inc. | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Nonrefundable upfront payment | $ 3,000,000 | |||||||||||
Milestone payment | $ 5,000,000 | |||||||||||
Number of different target programs | item | 6 | |||||||||||
Research license term | 5 years | |||||||||||
Annual maintenance fees | $ 500,000 | |||||||||||
Revenue recognized | 250,000 | 250,000 | ||||||||||
Deferred revenue | 800,000 | $ 800,000 | ||||||||||
Additional research term | 3 years | |||||||||||
Extension fee | $ 2,000,000 | |||||||||||
Annual maintenance fees payable during any extension of research term | $ 1,000,000 | |||||||||||
2009 Research License and Commercialization Agreement | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Number of commercial licenses | item | 1 | |||||||||||
2009 Research License and Commercialization Agreement | CSL Limited | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Milestone payment | 3,500,000 | |||||||||||
Revenue recognized | 3,500,000 | 0 | ||||||||||
Deferred revenue | 0 | 0 | ||||||||||
Collaboration And License Agreement | Novartis | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Nonrefundable upfront payment | $ 150,000,000 | |||||||||||
Revenue recognized | 600,000 | 0 | ||||||||||
Deferred revenue | 89,700,000 | 89,700,000 | ||||||||||
Collaboration And License Agreement | Novartis | Maximum | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Potential milestone payment | $ 2,400,000,000 | |||||||||||
Collaboration And License Agreement | Novartis | Bispecific FC Technologies | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Number of development stage products | product | 2 | |||||||||||
Collaboration And License Agreement | Novartis | Bispecific FC Technologies | XmAb14045 | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Allocation of consideration to deliverables | $ 27,100,000 | |||||||||||
Collaboration And License Agreement | Novartis | Bispecific FC Technologies | XmAb13676 | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Allocation of consideration to deliverables | 31,400,000 | |||||||||||
Collaboration And License Agreement | Novartis | Global Discovery Program | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Number of bispecific product candidates delivered | item | 0 | |||||||||||
Allocation of consideration to deliverables | $ 20,050,000 | |||||||||||
Number of Global discovery programs | item | 4 | |||||||||||
Collaboration And License Agreement | Novartis | Global Discovery Program | Maximum | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Number of antibody targets for which bispecific technology applied | item | 4 | |||||||||||
Collaboration And License Agreement | Novartis | FC Licenses | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Research license term | 5 years | |||||||||||
Number of bispecific product candidates delivered | product | 4 | |||||||||||
Allocation of consideration to deliverables | $ 11,300,000 | |||||||||||
Collaboration And License Agreement | Novartis | FC Licenses | Maximum | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Number of targets against which non-exclusive license is provided | item | 10 | |||||||||||
Collaboration And License Agreement | Novo Nordisk | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Nonrefundable upfront payment | $ 2,500,000 | |||||||||||
Research license term | 2 years | |||||||||||
Revenue recognized | $ 0 | 700,000 | ||||||||||
Deferred revenue | 0 | $ 0 | ||||||||||
Research term of revenue recognized | 2 years | |||||||||||
Research and License Agreement 2015 | Amgen, Inc. | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Nonrefundable upfront payment | $ 45,000,000 | |||||||||||
Potential milestone payment | $ 1,700,000,000 | |||||||||||
Number of different target programs | item | 6 | |||||||||||
Number of previously identified products | item | 3 | |||||||||||
Number of bispecific product candidates delivered | item | 0 | |||||||||||
Substituted candidates | item | 0 | |||||||||||
Revenue recognized | $ 0 | $ 6,250,000 | ||||||||||
Deferred revenue | $ 12,500,000 | 12,500,000 | ||||||||||
Research and License Agreement 2015 | Amgen, Inc. | CD38 Program | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Potential milestone payment | 355,000,000 | |||||||||||
Allocation of consideration to deliverables | 13,750,000 | |||||||||||
Research and License Agreement 2015 | Amgen, Inc. | Discovery Program | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Potential milestone payment | $ 260,500,000 | |||||||||||
Research license term | 3 years | |||||||||||
Allocation of consideration to deliverables | $ 6,250,000 | |||||||||||
Additional research term | 1 year | |||||||||||
Previous targets which bispecific technology will be applied | item | 5 | |||||||||||
Research and License Agreement 2015 | Amgen, Inc. | Global Discovery Program | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Number of different target programs | item | 3 | |||||||||||
Number of bispecific product candidates delivered | item | 5 | |||||||||||
Substituted candidates | item | 1 | |||||||||||
Development-based | Research and License Agreement 2015 | Amgen, Inc. | CD38 Program | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Potential milestone payment | $ 55,000,000 | |||||||||||
Development-based | Research and License Agreement 2015 | Amgen, Inc. | Discovery Program | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Potential milestone payment | 35,500,000 | |||||||||||
Regulatory-based | Research and License Agreement 2015 | Amgen, Inc. | CD38 Program | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Potential milestone payment | 70,000,000 | |||||||||||
Regulatory-based | Research and License Agreement 2015 | Amgen, Inc. | Discovery Program | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Potential milestone payment | 55,000,000 | |||||||||||
Sales-based | Research and License Agreement 2015 | Amgen, Inc. | CD38 Program | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Potential milestone payment | 230,000,000 | |||||||||||
Sales-based | Research and License Agreement 2015 | Amgen, Inc. | Discovery Program | ||||||||||||
Collaboration research and licensing agreements | ||||||||||||
Potential milestone payment | $ 170,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Taxes | ||
Income tax expense | $ 170,000 | $ 0 |
Effective tax rate | 0.00% |