Chiasma (CHMA) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 06, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	CHMA
Entity Registrant Name	CHIASMA, INC
Entity Central Index Key	1,339,469
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		24,379,216

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 12,133	$ 37,013
Marketable securities	61,038	55,971
Prepaid expenses and other current assets	2,171	2,110
Total current assets	75,342	95,094
Property and equipment, net	584	683
Other assets	927	979
Total assets	76,853	96,756
Current liabilities
Accounts payable	1,982	1,166
Accrued expenses	4,105	5,534
Other current liabilities	1,717	1,700
Total current liabilities	7,804	8,400
Long-term liabilities	1,083	2,631
Total liabilities	8,887	11,031
Commitments and Contingencies (Note 9)
Stockholders' equity:
Common stock, $0.01 par value; authorized 125,000,000 shares at September 30, 2017 and December 31, 2016; issued and outstanding 24,376,827 shares at September 30, 2017 and 24,359,584 shares at December 31, 2016	244	244
Preferred stock, $0.01 par value; authorized 5,000,000 shares; none outstanding
Additional paid-in capital	266,980	264,017
Accumulated other comprehensive loss	(8)	(9)
Accumulated deficit	(199,250)	(178,527)
Total stockholders' equity	67,966	85,725
Total liabilities and stockholders' equity	$ 76,853	$ 96,756

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	24,376,827	24,359,584
Common stock, shares outstanding	24,376,827	24,359,584
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating expenses:
General and administrative	$ 2,252	$ 3,881	$ 7,353	$ 19,267
Research and development	4,691	4,521	13,625	26,526
Restructuring charges		1,037		7,574
Total operating expenses	6,943	9,439	20,978	53,367
Loss from operations	(6,943)	(9,439)	(20,978)	(53,367)
Other income, net	(192)	(139)	(556)	(389)
Loss before provision for income taxes	(6,751)	(9,300)	(20,422)	(52,978)
Provision for income taxes	98	73	301	238
Net loss	$ (6,849)	$ (9,373)	$ (20,723)	$ (53,216)
Earnings per share of common stock:
Basic	$ (0.28)	$ (0.38)	$ (0.85)	$ (2.19)
Diluted	$ (0.28)	$ (0.38)	$ (0.85)	$ (2.19)
Weighted-average shares outstanding:
Basic	24,365,207	24,357,730	24,361,479	24,305,916
Diluted	24,365,207	24,357,730	24,361,479	24,305,916

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (6,849)	$ (9,373)	$ (20,723)	$ (53,216)
Other comprehensive income (loss):
Unrealized gains (losses) on available for sale securities, net	16	147	1	(31)
Total other comprehensive income (loss)	16	147	1	(31)
Comprehensive loss	$ (6,833)	$ (9,226)	$ (20,722)	$ (53,247)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating Activities:
Net loss	$ (20,723)	$ (53,216)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	119	373
Stock-based compensation	2,886	2,813
Amortization of premium (discount) on marketable securities, net	(149)	(75)
Provision for deferred income taxes	63	252
Non-cash interest expense	99	185
Non-cash restructuring charges	0	670
Loss on sale of property and equipment		53
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(62)	(86)
Accounts payable and accrued expenses	(613)	1,927
Other assets	(10)	(87)
Other current and long-term liabilities	146	1,610
Net cash used in operating activities	(18,244)	(45,581)
Investing Activities:
Purchase of marketable securities	(71,099)	(102,882)
Maturities of marketable securities	66,182	139,756
Purchases of property and equipment	(20)	(2,889)
Proceeds from sale of property and equipment		127
Net cash provided by (used in) investing activities	(4,937)	34,112
Financing Activities:
Payment under license termination agreement	(1,700)	(1,700)
Exercise of warrants		5
Exercise of stock options	1	600
Net cash used in financing activities	(1,699)	(1,095)
Net decrease in cash and cash equivalents	(24,880)	(12,564)
Cash and cash equivalents, beginning of period	37,013	41,039
Cash and cash equivalents, end of period	$ 12,133	$ 28,475

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	1. Description of Business and Summary of Significant Accounting Policies Chiasma, Inc. is a clinical-stage biopharmaceutical company incorporated in 2001 under the laws of the State of Delaware. Chiasma, Inc. is headquartered in Massachusetts and has two wholly owned subsidiaries; Chiasma (Israel) Ltd., and Chiasma Securities Corp, collectively referred to as “the Company,” “we,” “us”, “our” or “Chiasma”. We are focused on improving the lives of patients who face challenges associated with their existing treatments for rare and serious chronic disease. Employing our proprietary Transient Permeability Enhancer (“TPE”) technology platform, we seek to develop oral medications that are currently available only as injections. We are currently conducting an international Phase 3 clinical trial – MPOWERED – of oral octreotide capsules (conditionally trade-named “MYCAPSSA”) for the maintenance treatment of adult patients with acromegaly to support a potential submission of a Marketing Authorization Application (“MAA”) to the European Medicines Agency (the “EMA”). The MPOWERED trial is a global, randomized, open-label and active-controlled 15-month TPE-based Liquidity We have incurred significant losses from operations since our inception and expect losses to continue for at least the next several years. We are heavily dependent on the regulatory approval and subsequent commercial success of our product candidate, octreotide capsules for the treatment of acromegaly in the United States and Europe, both of which may never occur. We expect to continue with our ongoing international Phase 3 MPOWERED clinical trial of octreotide capsules in acromegaly to support potential regulatory approval in Europe and to continue enrollment in the international Phase 3 CHIASMA OPTIMAL clinical trial of octreotide capsules in acromegaly to support potential regulatory approval in the United States. In June and August 2016, we announced two separate corporate restructuring plans intended to focus our resources on the continued development of octreotide capsules for the maintenance treatment of adult acromegaly patients. We currently expect our existing cash, cash equivalents and marketable securities to fund our operations for at least one year after the date these condensed consolidated financial statements are issued. We expect to continue to incur significant operating losses for the foreseeable future. Successful transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support our cost structure. As a result of the CRL and our subsequent interactions with the FDA which resulted in a SPA with respect to our Phase 3 CHIASMA OPTIMAL trial design, our ability to generate product revenues has been delayed indefinitely. We plan to continue to fund our losses from operations and capital funding needs from existing balances of cash, cash equivalents and marketable securities and potentially through the issuance of debt and/or equity or through collaborations or license agreements with other companies. Debt or equity financing may not be available on a timely basis on terms acceptable to us, or at all. If we are not able to secure adequate additional funding, we may be forced to make further reductions in spending, extend payment terms with suppliers, liquidate assets where possible, or suspend or curtail our planned development of octreotide capsules. Any of these actions could materially harm our business, results of operations and future prospects. Failure to obtain regulatory marketing approval of octreotide capsules in acromegaly will prevent us from commercializing the product candidate, which could raise significant concerns about our continued viability as a business. Basis of Presentation We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, certain information and footnote disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”) for annual financial statements have been condensed or omitted. The information included in this quarterly report on Form 10-Q 10-K year-end Cash Equivalents Cash equivalents consist of highly liquid instruments purchased with an original maturity of three months or less at the date of purchase. Marketable Securities Our investments primarily consist of commercial paper and corporate and government debt securities. These marketable securities are classified as available-for-sale, If a decline in the fair value of a marketable security below our cost basis is determined to be other than temporary, such marketable security is written down to its estimated fair value as a new cost basis and the amount of the write-down is included in earnings as an impairment charge. The cost of securities sold is based on the specific identification method. Concentrations of credit risk Financial instruments that potentially subject us to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable securities and long-term restricted deposits. We routinely maintain deposits in financial institutions in excess of government insured limits. Management believes that we are not exposed to significant credit risk as our deposits are held at financial institutions that management believes to be of high credit quality and we have not experienced any significant losses in these deposits. We regularly invest excess operating cash in deposits with major financial institutions and money market funds and in notes issued by the U.S. government, as well as in fixed income investments and U.S. bond funds, both of which can be readily purchased and sold using established markets. We believe that the market risk arising from our holdings of these financial instruments is mitigated based on the fact that many of these securities are either government backed or of high credit rating. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, and the disclosure of contingent assets and liabilities as of and during the reporting period. We base these estimates and assumptions on historical experience when available, and on various factors that we believe to be reasonable under the specific circumstances. Significant estimates relied upon in preparing the accompanying condensed consolidated financial statements include, but are not limited to, accounting for stock-based compensation, present value of long-term purchase obligation, income taxes, useful lives of long-lived assets, and accounting for certain accruals. We assess the above estimates on an ongoing basis; however, actual results could materially differ from those estimates. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board issued new guidance which establishes a right-of-use right-of-use

Investments

Investments	9 Months Ended
	Sep. 30, 2017
Investments Schedule [Abstract]
Investments	2. Investments Our investments consisted of the following as of September 30, 2017 and December 31, 2016: As of September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value ($ in thousands) Money market funds $ 11,497 $ — $ — $ 11,497 Corporate notes 34,364 1 (6 ) 34,359 Commercial paper 26,682 1 (4 ) 26,679 Total $ 72,543 $ 2 $ (10 ) $ 72,535 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value ($ in thousands) Money market funds $ 35,218 $ — $ — $ 35,218 Corporate notes 22,347 — (7 ) 22,340 Commercial paper 33,633 7 (9 ) 33,631 Total $ 91,198 $ 7 $ (16 ) $ 91,189 As of September 30, 2017, we do not consider those securities that are in an unrealized loss position to be other-than-temporarily impaired, as we have the ability to hold such investments until recovery of the fair value. We utilize the specific identification method in computing realized gains and losses. We had no realized gains and losses on our available-for-sale The fair values of our investments by classification in our condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016 were as follows: September 30, December 31, ($ in thousands) Cash and cash equivalents $ 11,497 $ 35,218 Marketable securities 61,038 55,971 Total $ 72,535 $ 91,189 Cash and cash equivalents in the table above exclude cash of $0.6 million and $1.8 million as of September 30, 2017 and December 31, 2016, respectively. The contractual maturity dates of all of our investments are less than one year.

Fair Value Measurements of Fina

Fair Value Measurements of Financial Instruments	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements of Financial Instruments	3. Fair Value Measurements of Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The fair value accounting guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: • Level 1 • Level 2 • Level 3 To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by us in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The fair value measurements of our financial instruments are summarized in the table below: Fair Value Measurements at September 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ($ in thousands) Cash equivalents: Money market funds $ 11,497 $ — $ — $ 11,497 Total cash equivalents $ 11,497 $ — $ — $ 11,497 Marketable securities: Corporate notes $ — $ 34,359 $ — $ 34,359 Commercial paper — 26,679 — 26,679 Total marketable securities — 61,038 — 61,038 Total $ 11,497 $ 61,038 $ — $ 72,535 Fair Value Measurements at December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ($ in thousands) Cash equivalents: Money market funds $ 35,218 $ — $ — $ 35,218 Total cash equivalents $ 35,218 $ — $ — $ 35,218 Marketable securities: Corporate notes $ — $ 22,340 $ — $ 22,340 Commercial paper — 33,631 — 33,631 Total marketable securities — 55,971 — 55,971 Total $ 35,218 $ 55,971 $ — $ 91,189 We did not have any Level 3 assets being measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016.

Earnings per Share of Common St

Earnings per Share of Common Stock	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Earnings per Share of Common Stock	4. Earnings per Share of Common Stock All common stock warrants and stock options have been excluded from the computation of diluted weighted-average shares outstanding because such securities would have an anti-dilutive impact due to net losses reported during the three and nine months ended September 30, 2017 and 2016.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Accrued Expenses	5. Accrued Expenses As of September 30, 2017 and December 31, 2016, accrued expenses consisted of the following: September 30, December 31, ($ in thousands) Accrued general and administrative expenses $ 803 $ 547 Accrued research and development expenses 2,232 2,107 Accrued payroll and employee benefits 1,070 2,597 Accrued restructuring costs — 283 Total accrued expenses $ 4,105 $ 5,534

License Agreement

License Agreement	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
License Agreement	6. License Agreement In December 2012, we signed a license agreement with F. Hoffmann-La Hoffmann-La non-transferable In July 2014, Roche terminated the license agreement. Upon termination, Roche returned all rights and documentation granted under the agreement to us. Following the termination of the license agreement, we are not entitled to further payments from Roche, Roche has no remaining rights to octreotide capsules and we retain all rights to octreotide capsules and all related intellectual property. Subsequent to the termination, we purchased from Roche active pharmaceutical ingredient (“API”) supplies to continue the development and manufacturing of octreotide capsules as well as Roche’s proposed trade name for octreotide capsules for an aggregate amount of $5.1 million payable in three equal annual installments of $1.7 million beginning in 2016. We made the first $1.7 million payment in March 2016 and the second $1.7 million payment in March 2017. The difference between the aggregate purchase price and the present value of the installment payments represents the interest component of the financing arrangement and is being recorded as interest expense over the payment term. Other than these payments, we have no other financial and operational obligations to Roche.

Warrants

Warrants	9 Months Ended
	Sep. 30, 2017
Text Block [Abstract]
Warrants	7. Warrants As of December 31, 2016, there were 3,567,015 common stock warrants outstanding with exercise prices ranging from $0.09 per share to $9.13 per share. The warrants were issued at various points between October 2012 and February 2015 with expiration dates ranging from October 2022 through February 2025. There were no warrants exercised during the nine months ended September 30, 2017. There were 3,567,015 outstanding warrants as of September 30, 2017.

Stock Incentive Plans

Stock Incentive Plans	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Incentive Plans	8. Stock Incentive Plans In 2008, our board of directors adopted the 2008 Stock Incentive Plan (the “2008 Plan”), which provided for the grant of incentive stock options, nonqualified stock options, and restricted stock to employees, directors, and nonemployees of the Company up to 3,547,741 shares of common stock. Option awards expire 10 years from the grant date and generally vest over four years, but vesting conditions can vary at the discretion of our board of directors. In July 2015, the Company approved the 2015 Stock Option and Incentive Plan (the “2015 Plan”), which became effective upon our initial public offering (“IPO”). The 2015 Plan allows the grant of incentive stock options, nonqualified stock options, and restricted stock to employees, directors, and nonemployees of the Company up to 3,566,296 shares of common stock. In connection with the adoption of the 2015 Plan, no further option grants are permitted under the 2008 Plan and any expirations, cancellations, or terminations under the previous plan are available for issuance under the 2015 Plan. On January 1, 2016, the number of shares reserved and available for issuance under the 2015 Stock Plan increased by 960,504 shares of common stock pursuant to a provision in the 2015 Stock Plan that provides that the number of shares reserved and available for issuance will automatically increase each January 1, beginning on January 1, 2016, by 4% of the number of shares of common stock issued and outstanding on the immediately preceding December 31 or such lesser number as determined by the compensation committee of the board of directors. In October 2016, the compensation committee of the board of directors determined there would be no increase to the shares reserved and available under the 2015 Stock Plan on January 1, 2017. As of September 30, 2017, the total number of shares authorized for stock award plans is 7,114,037 of which 3,172,219 remain available for grant. There are 3,632,340 stock options outstanding as of September 30, 2017. Stock-based compensation for the three and nine months ended September 30, 2017 and 2016 consisted of the following: Three Months Nine Months Ended 2017 2016 2017 2016 ($ in thousands) General and administrative $ 337 $ 384 $ 1,202 $ 1,619 Research and development 334 373 1,684 1,194 Total $ 671 $ 757 $ 2,886 $ 2,813 Primarily as result of the workforce reduction discussed in Note 10, approximately 1,718,000 options were forfeited during the nine months ended September 30, 2016. We issued approximately 17,000 and 292,000 shares of common stock following the exercise of underlying stock options in the nine months ended September 30, 2017 and 2016, respectively. The fair value of each stock option issued was estimated at the date of grant using the Black-Scholes option model with the following weighted-average assumptions: Nine Months 2017 2016 Expected volatility 74 % 75 % Expected term (years) 5.69 6.20 Risk-free interest rate 1.81 % 1.42 % Expected dividend yield 0 % 0 % We issued approximately 117,000 option grants in the nine months ended September 30, 2017. The weighted-average grant date fair value per share of options granted during the nine months ended September 30, 2017 was $0.95. We issued approximately 1,164,000 option grants in the nine months ended September 30, 2016. The weighted-average grant date fair value per share of options granted during the nine months ended September 30, 2016 was $6.69.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies We conduct certain of our operations in leased facilities, which are accounted for as operating leases. Certain leases include renewal options. In addition, we lease automobiles and equipment under operating leases. There were no assets held under capital leases at September 30, 2017 and December 31, 2016. In conjunction with the facility leases, we provided bank guarantees in the aggregate amount of $0.5 million as security deposits at September 30, 2017, which were classified as other assets in the accompanying condensed consolidated balance sheets. At September 30, 2017, the minimum rental commitments under all non-cancelable Legal Proceedings On June 9, 2016, Chiasma, Inc. and certain of our current and former officers were named as defendants in a purported federal securities class action lawsuit filed in the United States District Court for the District of Massachusetts, styled Gerneth v. Chiasma, Inc., et al

Restructuring Charges

Restructuring Charges	9 Months Ended
	Sep. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring Charges	10. Restructuring Charges In June 2016, we announced a corporate restructuring plan, including an immediate reduction of approximately 33% of our workforce, including substantially all of our commercial personnel. In August 2016, we announced a second corporate restructuring plan, including an immediate reduction of approximately 44% of our remaining workforce. In aggregate, these restructuring plans resulted in a reduction to our workforce of more than 60% since May 1, 2016. As a result of the August reduction in force, we no longer required the research lab and additional office space of the Israel facility and we were able to early terminate the Israel lease in November 2016. Accordingly, during the year ended December 31, 2016, we recorded restructuring charges totaling $8.2 million which consisted of employee severance benefits and related costs of $2.2 million, manufacturing commitment-related suspension fees of $4.5 million, non-cash non-cash The components of our restructuring charges during the three and nine months ended September 30, 2016 are as follows: Three Months Nine Months ($ in thousands) Severance benefits and related costs $ 746 $ 2,211 Non-cash 291 670 Manufacturing suspension fees — 4,693 Total $ 1,037 $ 7,574 Activity related to accrued restructuring costs is as follows: For the Nine ($ in thousands) Balance at beginning of year $ 283 Plus: Current year restructuring costs — Less: Payment of employee severance costs 283 Payment of manufacturing suspension fees — Non-cash — Balance at end of period $ —

Description of Business and S17

Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Liquidity	Liquidity We have incurred significant losses from operations since our inception and expect losses to continue for at least the next several years. We are heavily dependent on the regulatory approval and subsequent commercial success of our product candidate, octreotide capsules for the treatment of acromegaly in the United States and Europe, both of which may never occur. We expect to continue with our ongoing international Phase 3 MPOWERED clinical trial of octreotide capsules in acromegaly to support potential regulatory approval in Europe and to continue enrollment in the international Phase 3 CHIASMA OPTIMAL clinical trial of octreotide capsules in acromegaly to support potential regulatory approval in the United States. In June and August 2016, we announced two separate corporate restructuring plans intended to focus our resources on the continued development of octreotide capsules for the maintenance treatment of adult acromegaly patients. We currently expect our existing cash, cash equivalents and marketable securities to fund our operations for at least one year after the date these condensed consolidated financial statements are issued. We expect to continue to incur significant operating losses for the foreseeable future. Successful transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support our cost structure. As a result of the CRL and our subsequent interactions with the FDA which resulted in a SPA with respect to our Phase 3 CHIASMA OPTIMAL trial design, our ability to generate product revenues has been delayed indefinitely. We plan to continue to fund our losses from operations and capital funding needs from existing balances of cash, cash equivalents and marketable securities and potentially through the issuance of debt and/or equity or through collaborations or license agreements with other companies. Debt or equity financing may not be available on a timely basis on terms acceptable to us, or at all. If we are not able to secure adequate additional funding, we may be forced to make further reductions in spending, extend payment terms with suppliers, liquidate assets where possible, or suspend or curtail our planned development of octreotide capsules. Any of these actions could materially harm our business, results of operations and future prospects. Failure to obtain regulatory marketing approval of octreotide capsules in acromegaly will prevent us from commercializing the product candidate, which could raise significant concerns about our continued viability as a business.
Basis of Presentation	Basis of Presentation We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, certain information and footnote disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”) for annual financial statements have been condensed or omitted. The information included in this quarterly report on Form 10-Q 10-K year-end
Cash Equivalents	Cash Equivalents Cash equivalents consist of highly liquid instruments purchased with an original maturity of three months or less at the date of purchase.
Marketable Securities	Marketable Securities Our investments primarily consist of commercial paper and corporate and government debt securities. These marketable securities are classified as available-for-sale, If a decline in the fair value of a marketable security below our cost basis is determined to be other than temporary, such marketable security is written down to its estimated fair value as a new cost basis and the amount of the write-down is included in earnings as an impairment charge. The cost of securities sold is based on the specific identification method.
Concentrations of credit risk	Concentrations of credit risk Financial instruments that potentially subject us to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable securities and long-term restricted deposits. We routinely maintain deposits in financial institutions in excess of government insured limits. Management believes that we are not exposed to significant credit risk as our deposits are held at financial institutions that management believes to be of high credit quality and we have not experienced any significant losses in these deposits. We regularly invest excess operating cash in deposits with major financial institutions and money market funds and in notes issued by the U.S. government, as well as in fixed income investments and U.S. bond funds, both of which can be readily purchased and sold using established markets. We believe that the market risk arising from our holdings of these financial instruments is mitigated based on the fact that many of these securities are either government backed or of high credit rating.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, and the disclosure of contingent assets and liabilities as of and during the reporting period. We base these estimates and assumptions on historical experience when available, and on various factors that we believe to be reasonable under the specific circumstances. Significant estimates relied upon in preparing the accompanying condensed consolidated financial statements include, but are not limited to, accounting for stock-based compensation, present value of long-term purchase obligation, income taxes, useful lives of long-lived assets, and accounting for certain accruals. We assess the above estimates on an ongoing basis; however, actual results could materially differ from those estimates.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board issued new guidance which establishes a right-of-use right-of-use

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2017
Investments Schedule [Abstract]
Schedule of Investments	Our investments consisted of the following as of September 30, 2017 and December 31, 2016: As of September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value ($ in thousands) Money market funds $ 11,497 $ — $ — $ 11,497 Corporate notes 34,364 1 (6 ) 34,359 Commercial paper 26,682 1 (4 ) 26,679 Total $ 72,543 $ 2 $ (10 ) $ 72,535 As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value ($ in thousands) Money market funds $ 35,218 $ — $ — $ 35,218 Corporate notes 22,347 — (7 ) 22,340 Commercial paper 33,633 7 (9 ) 33,631 Total $ 91,198 $ 7 $ (16 ) $ 91,189
Schedule of Fair Value of Investments	The fair values of our investments by classification in our condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016 were as follows: September 30, December 31, ($ in thousands) Cash and cash equivalents $ 11,497 $ 35,218 Marketable securities 61,038 55,971 Total $ 72,535 $ 91,189

Fair Value Measurements of Fi19

Fair Value Measurements of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements of Company's Financial Instruments	The fair value measurements of our financial instruments are summarized in the table below: Fair Value Measurements at September 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ($ in thousands) Cash equivalents: Money market funds $ 11,497 $ — $ — $ 11,497 Total cash equivalents $ 11,497 $ — $ — $ 11,497 Marketable securities: Corporate notes $ — $ 34,359 $ — $ 34,359 Commercial paper — 26,679 — 26,679 Total marketable securities — 61,038 — 61,038 Total $ 11,497 $ 61,038 $ — $ 72,535 Fair Value Measurements at December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total ($ in thousands) Cash equivalents: Money market funds $ 35,218 $ — $ — $ 35,218 Total cash equivalents $ 35,218 $ — $ — $ 35,218 Marketable securities: Corporate notes $ — $ 22,340 $ — $ 22,340 Commercial paper — 33,631 — 33,631 Total marketable securities — 55,971 — 55,971 Total $ 35,218 $ 55,971 $ — $ 91,189

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	As of September 30, 2017 and December 31, 2016, accrued expenses consisted of the following: September 30, December 31, ($ in thousands) Accrued general and administrative expenses $ 803 $ 547 Accrued research and development expenses 2,232 2,107 Accrued payroll and employee benefits 1,070 2,597 Accrued restructuring costs — 283 Total accrued expenses $ 4,105 $ 5,534

Stock Incentive Plans (Tables)

Stock Incentive Plans (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock-based Compensation	Stock-based compensation for the three and nine months ended September 30, 2017 and 2016 consisted of the following: Three Months Nine Months Ended 2017 2016 2017 2016 ($ in thousands) General and administrative $ 337 $ 384 $ 1,202 $ 1,619 Research and development 334 373 1,684 1,194 Total $ 671 $ 757 $ 2,886 $ 2,813
Schedule of Fair Value Calculation of Option Granted	The fair value of each stock option issued was estimated at the date of grant using the Black-Scholes option model with the following weighted-average assumptions: Nine Months 2017 2016 Expected volatility 74 % 75 % Expected term (years) 5.69 6.20 Risk-free interest rate 1.81 % 1.42 % Expected dividend yield 0 % 0 %

Restructuring Charges (Tables)

Restructuring Charges (Tables)	9 Months Ended
	Sep. 30, 2017
Restructuring and Related Activities [Abstract]
Components of Restructuring Charges	The components of our restructuring charges during the three and nine months ended September 30, 2016 are as follows: Three Months Nine Months ($ in thousands) Severance benefits and related costs $ 746 $ 2,211 Non-cash 291 670 Manufacturing suspension fees — 4,693 Total $ 1,037 $ 7,574
Activity Related to Accrued Restructuring Costs	Activity related to accrued restructuring costs is as follows: For the Nine ($ in thousands) Balance at beginning of year $ 283 Plus: Current year restructuring costs — Less: Payment of employee severance costs 283 Payment of manufacturing suspension fees — Non-cash — Balance at end of period $ —

Description of Business and S23

Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017SubsidiariesPatient
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Number of subsidiaries owned by the company | Subsidiaries	2
MPOWERED Trial [Member] | Maximum [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Number of adult acromegaly patients expected to enroll in trial	150
Trial period for adult acromegaly patients expected to enroll	15 months
CHIASMA OPTIMAL Trial [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Number of adult acromegaly patients expected to enroll in trial	50
Trial period for adult acromegaly patients expected to enroll	9 months

Investments - Schedule of Inves

Investments - Schedule of Investments (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Gain (Loss) on Investments [Line Items]
Amortized Cost	$ 72,543	$ 91,198
Gross Unrealized Gains	2	7
Gross Unrealized Losses	(10)	(16)
Estimated Fair Value	72,535	91,189
Money Market Funds [Member]
Gain (Loss) on Investments [Line Items]
Amortized Cost	11,497	35,218
Estimated Fair Value	11,497	35,218
Corporate Notes [Member]
Gain (Loss) on Investments [Line Items]
Amortized Cost	34,364	22,347
Gross Unrealized Gains	1
Gross Unrealized Losses	(6)	(7)
Estimated Fair Value	34,359	22,340
Commercial Paper [Member]
Gain (Loss) on Investments [Line Items]
Amortized Cost	26,682	33,633
Gross Unrealized Gains	1	7
Gross Unrealized Losses	(4)	(9)
Estimated Fair Value	$ 26,679	$ 33,631

Investments - Additional Inform

Investments - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Investments Schedule [Abstract]
Realized gains and losses on available-for-sale securities	$ 0	$ 0	$ 0	$ 0
Cash excluded from cash and cash equivalents	$ 600,000		$ 600,000		$ 1,800,000
Contractual maturity period of investments			1 year

Investments - Schedule of Fair

Investments - Schedule of Fair Value of Investments (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Net Investment Income [Line Items]
Total	$ 72,535	$ 91,189
Cash and Cash Equivalents [Member]
Net Investment Income [Line Items]
Total	11,497	35,218
Marketable Securities [Member]
Net Investment Income [Line Items]
Total	$ 61,038	$ 55,971

Fair Value Measurements of Fi27

Fair Value Measurements of Financial Instruments - Fair Value Measurements of Company's Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Cash equivalents:
Total cash equivalents	$ 11,497	$ 35,218
Marketable securities:
Total marketable securities	72,535	91,189
Total	72,535	91,189
Corporate Notes [Member]
Marketable securities:
Total marketable securities	34,359	22,340
Marketable Securities [Member]
Marketable securities:
Total marketable securities	61,038	55,971
Commercial Paper [Member]
Marketable securities:
Total marketable securities	26,679	33,631
Money Market Funds [Member]
Cash equivalents:
Total cash equivalents	11,497	35,218
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Cash equivalents:
Total cash equivalents	11,497	35,218
Marketable securities:
Total	11,497	35,218
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member]
Cash equivalents:
Total cash equivalents	11,497	35,218
Significant Other Observable Inputs (Level 2) [Member]
Marketable securities:
Total	61,038	55,971
Significant Other Observable Inputs (Level 2) [Member] | Corporate Notes [Member]
Marketable securities:
Total marketable securities	34,359	22,340
Significant Other Observable Inputs (Level 2) [Member] | Marketable Securities [Member]
Marketable securities:
Total marketable securities	61,038	55,971
Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member]
Marketable securities:
Total marketable securities	$ 26,679	$ 33,631

Fair Value Measurements of Fi28

Fair Value Measurements of Financial Instruments - Additional Information (Detail) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets fair value	$ 72,535,000	$ 91,189,000
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets fair value	$ 0	$ 0

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued general and administrative expenses	$ 803	$ 547
Accrued research and development expenses	2,232	2,107
Accrued payroll and employee benefits	1,070	2,597
Accrued restructuring costs		283
Total accrued expenses	$ 4,105	$ 5,534

License Agreement - Additional

License Agreement - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Abstract]
Aggregate amount of obligation			$ 5.1
Contractual obligation, installment to be paid in next 12 months (January 2016)			$ 1.7
Contractual obligation, first payment made		$ 1.7
Contractual obligation, second payment made	$ 1.7

Warrants - Additional Informati

Warrants - Additional Information (Detail) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Class of Warrant or Right [Line Items]
Warrants outstanding	3,567,015	3,567,015
Warrants exercised	0
Minimum [Member]
Class of Warrant or Right [Line Items]
Warrants exercise price per share		$ 0.09
Warrants expiration date		Oct. 31, 2022
Maximum [Member]
Class of Warrant or Right [Line Items]
Warrants exercise price per share		$ 9.13
Warrants expiration date		Feb. 28, 2025

Stock Incentive Plans - Additio

Stock Incentive Plans - Additional Information (Detail) - $ / shares	Jan. 01, 2017	Jan. 01, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock authorized for issuance			7,114,037
Shares of common stock available for grant			3,172,219
Number of stock option outstanding			3,632,340
Number of stock options forfeited				1,718,000
Stock issued on exercise of stock options			17,000	292,000
Number of stock options granted			117,000	1,164,000
Weighted average grant date fair value of stock options per share			$ 0.95	$ 6.69
2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock authorized for issuance			3,547,741
2008 Plan [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options expiration period			10 years
Stock options vesting period			4 years
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock authorized for issuance			3,566,296
Increase in number of shares reserved and available for issuance	0	960,504
Percentage of shares issued and outstanding under plan		4.00%

Stock Incentive Plans - Schedul

Stock Incentive Plans - Schedule of Stock-based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Stock-based compensation expense:
Stock-based compensation expenses	$ 671	$ 757	$ 2,886	$ 2,813
General and Administrative [Member]
Stock-based compensation expense:
Stock-based compensation expenses	337	384	1,202	1,619
Research and Development [Member]
Stock-based compensation expense:
Stock-based compensation expenses	$ 334	$ 373	$ 1,684	$ 1,194

Stock Incentive Plans - Sched34

Stock Incentive Plans - Schedule of Fair Value Calculation of Option Granted (Detail)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected volatility	74.00%	75.00%
Expected term (years)	5 years 8 months 9 days	6 years 2 months 12 days
Risk-free interest rate	1.81%	1.42%
Expected dividend yield	0.00%	0.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Commitments And Contingencies [Line Items]
Assets held under capital leases	$ 0	$ 0
Minimum rental commitments under non-cancelable operating lease	5,700,000
Other Assets [Member]
Commitments And Contingencies [Line Items]
Security deposit	$ 500,000

Restructuring Charges - Additio

Restructuring Charges - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	9 Months Ended		12 Months Ended
	Aug. 31, 2016	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]
Workforce reduction, percentage	44.00%	33.00%
Restructuring charges			$ 1,037		$ 7,574	$ 8,200
Employee severance benefits and related costs			746		2,211	2,200
Non-cash restructuring charges			$ 291	$ 0	$ 670
Impairment of leasehold improvements						1,700
Tenant allowances received under lease						900
Manufacturing Suspension Fees [Member]
Restructuring Cost and Reserve [Line Items]
Payment of restructuring fees						4,500
Leasehold Improvements [Member]
Restructuring Cost and Reserve [Line Items]
Non-cash restructuring charges						800
Commercial Software and Laboratory Equipment [Member]
Restructuring Cost and Reserve [Line Items]
Non-cash restructuring charges						$ 700
Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Workforce reduction, percentage						60.00%

Restructuring Charges - Compone

Restructuring Charges - Components of Restructuring Charges (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Restructuring and Related Activities [Abstract]
Severance benefits and related costs	$ 746		$ 2,211	$ 2,200
Non-cash restructuring charges	291	$ 0	670
Manufacturing suspension fees			4,693
Total	$ 1,037	$ 0	$ 7,574

Restructuring Charges - Activit

Restructuring Charges - Activity Related to Accrued Restructuring Costs (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Restructuring Cost and Reserve [Line Items]
Balance at beginning of year		$ 283
Current year restructuring costs	$ 1,037	0	$ 7,574
Non-cash restructuring charges	$ 291	0	$ 670
Balance at end of period
Employee Severance Costs [Member]
Restructuring Cost and Reserve [Line Items]
Payment of restructuring charges		$ 283