Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CCXI | ||
Entity Registrant Name | ChemoCentryx, Inc. | ||
Entity Central Index Key | 0001340652 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 52,569,256 | ||
Entity Public Float | $ 266.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 28,088 | $ 40,020 |
Short-term investments | 148,896 | 87,271 |
Accounts receivable from related party | 2,058 | 51,090 |
Prepaid expenses and other current assets | 2,342 | 1,449 |
Total current assets | 181,384 | 179,830 |
Property and equipment, net | 1,536 | 1,210 |
Long-term investments | 7,929 | |
Other assets | 390 | 359 |
Total assets | 183,310 | 189,328 |
Current liabilities: | ||
Accounts payable | 966 | 1,400 |
Accrued liabilities | 12,969 | 8,575 |
Deferred revenue from related party | 50,461 | 22,962 |
Total current liabilities | 64,396 | 32,937 |
Long-term debt, net | 19,689 | 4,676 |
Noncurrent deferred revenue from related party | 84,100 | 72,197 |
Other non-current liabilities | 387 | 251 |
Total liabilities | 168,572 | 110,061 |
Commitments (Note 8) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding | ||
Common stock, $0.001 par value, 200,000,000 shares authorized; 50,652,238 and 48,837,060 shares issued and outstanding at December 31, 2018 and 2017, respectively | 51 | 49 |
Additional paid-in capital | 389,398 | 368,553 |
Note receivable | (16) | (16) |
Accumulated other comprehensive loss | (198) | (119) |
Accumulated deficit | (374,497) | (289,200) |
Total stockholders' equity | 14,738 | 79,267 |
Total liabilities and stockholders' equity | $ 183,310 | $ 189,328 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 50,652,238 | 48,837,060 |
Common stock, shares outstanding | 50,652,238 | 48,837,060 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | |||
Collaboration and license revenue from related party | $ 42,875 | $ 82,497 | $ 11,435 |
Total revenue | 42,875 | 82,497 | 11,935 |
Operating expenses: | |||
Research and development | 62,736 | 49,495 | 37,945 |
General and administrative | 20,409 | 16,509 | 14,710 |
Total operating expenses | 83,145 | 66,004 | 52,655 |
Income (loss) from operations | (40,270) | 16,493 | (40,720) |
Other income (expense): | |||
Interest income | 3,528 | 1,370 | 757 |
Interest expense | (1,224) | (4) | |
Total other income, net | 2,304 | 1,366 | 757 |
Net income (loss) | $ (37,966) | $ 17,859 | $ (39,963) |
Net income (loss) per common share | |||
Basic | $ (0.76) | $ 0.37 | $ (0.86) |
Diluted | $ (0.76) | $ 0.36 | $ (0.86) |
Shares used to compute net income (loss) per common share | |||
Basic | 49,814 | 48,413 | 46,432 |
Diluted | 49,814 | 49,615 | 46,432 |
Grant Revenue [Member] | |||
Revenue: | |||
Total revenue | $ 500 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (37,966) | $ 17,859 | $ (39,963) |
Unrealized loss on available-for-sale securities | (79) | (69) | (10) |
Comprehensive income (loss) | $ (38,045) | $ 17,790 | $ (39,973) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Note Receivable [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2015 | $ 72,507 | $ 44 | $ 339,615 | $ (16) | $ (40) | $ (267,096) |
Beginning Balance, shares at Dec. 31, 2015 | 44,185,506 | |||||
Net income (loss) | (39,963) | (39,963) | ||||
Unrealized gain / (loss) on investments | (10) | (10) | ||||
Issuance of common stock pursuant to collaboration and licensing agreement | 7,000 | $ 3 | 6,997 | |||
Issuance of common stock pursuant to collaboration and licensing agreement, shares | 3,333,333 | |||||
Issuance of common stock under equity incentive and employee stock purchase plans | 1,820 | $ 1 | 1,819 | |||
Issuance of common stock under equity incentive and employee stock purchase plans, shares | 539,081 | |||||
Employee stock-based compensation | 8,222 | 8,222 | ||||
Compensation expense related to options granted to consultants | 313 | 313 | ||||
Ending Balance at Dec. 31, 2016 | 49,889 | $ 48 | 356,966 | (16) | (50) | (307,059) |
Ending Balance, shares at Dec. 31, 2016 | 48,057,920 | |||||
Net income (loss) | 17,859 | 17,859 | ||||
Unrealized gain / (loss) on investments | (69) | (69) | ||||
Issuance of common stock under equity incentive and employee stock purchase plans | 3,269 | $ 1 | 3,268 | |||
Issuance of common stock under equity incentive and employee stock purchase plans, shares | 838,107 | |||||
Repurchased shares upon vesting of restricted stock units for tax withholdings | (429) | (429) | ||||
Repurchased shares upon vesting of restricted stock units for tax withholdings, shares | (58,967) | |||||
Employee stock-based compensation | 8,119 | 8,119 | ||||
Compensation expense related to options granted to consultants | 629 | 629 | ||||
Ending Balance at Dec. 31, 2017 | $ 79,267 | $ 49 | 368,553 | (16) | (119) | (289,200) |
Ending Balance, shares at Dec. 31, 2017 | 48,837,060 | 48,837,060 | ||||
Net income (loss) | $ (37,966) | (37,966) | ||||
Adoption of accounting standards (Note 2) | (47,331) | (47,331) | ||||
Unrealized gain / (loss) on investments | (79) | (79) | ||||
Issuance of common stock under equity incentive and employee stock purchase plans | 10,692 | $ 2 | 10,690 | |||
Issuance of common stock under equity incentive and employee stock purchase plans, shares | 1,912,703 | |||||
Repurchased shares upon vesting of restricted stock units for tax withholdings | (678) | (678) | ||||
Repurchased shares upon vesting of restricted stock units for tax withholdings, shares | (97,525) | |||||
Employee stock-based compensation | 9,971 | 9,971 | ||||
Compensation expense related to options granted to consultants | 862 | 862 | ||||
Ending Balance at Dec. 31, 2018 | $ 14,738 | $ 51 | $ 389,398 | $ (16) | $ (198) | $ (374,497) |
Ending Balance, shares at Dec. 31, 2018 | 50,652,238 | 50,652,238 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income (loss) | $ (37,966) | $ 17,859 | $ (39,963) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation of property and equipment | 512 | 418 | 348 |
Stock-based compensation | 10,833 | 8,748 | 8,535 |
Noncash interest (income) expense, net | (1,071) | 143 | 179 |
Changes in assets and liabilities: | |||
Accounts receivable due from related party | 49,032 | (20,885) | (30,205) |
Prepaids and other current assets | (668) | (727) | 35 |
Other assets | (31) | (80) | (119) |
Accounts payable | (434) | 729 | (4) |
Other liabilities | 4,158 | 80 | 3,773 |
Deferred revenue from related party | (7,929) | (1,407) | 96,566 |
Net cash provided by operating activities | 16,436 | 4,878 | 39,145 |
Investing activities | |||
Purchases of property and equipment, net | (838) | (723) | (304) |
Purchases of investments | (192,480) | (133,845) | (136,234) |
Maturities of investments | 140,250 | 150,170 | 87,774 |
Net cash provided by (used in) investing activities | (53,068) | 15,602 | (48,764) |
Financing activities | |||
Proceeds from issuance of common stock | 7,000 | ||
Proceeds from exercise of stock options and employee stock purchase plan | 10,467 | 3,269 | 1,820 |
Employees' tax withheld and paid for restricted stock units | (678) | (429) | |
Borrowings under credit facility agreement, net of issuance costs | 14,911 | 4,676 | |
Net cash provided by financing activities | 24,700 | 7,516 | 8,820 |
Net increase (decrease) in cash and cash equivalents | (11,932) | 27,996 | (799) |
Cash and cash equivalents at beginning of period | 40,020 | 12,024 | 12,823 |
Cash and cash equivalents at end of period | 28,088 | $ 40,020 | $ 12,024 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | $ 748 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business ChemoCentryx, Inc. (the Company) commenced operations in 1997. The Company is a clinical-stage biopharmaceutical company focused on developing new medications targeted at inflammatory disorders, autoimmune diseases and cancer. The Company’s principal operations are in the United States and it operates in one segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Consolidation The consolidated financial statements include the Company’s accounts and those of its wholly owned subsidiaries, ChemoCentryx Ireland Limited and ChemoCentryx Limited. The operations of ChemoCentryx Ireland Limited and ChemoCentryx Limited have been immaterial to date. All intercompany amounts have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Basis of Presentation The financial statements are prepared in conformity with GAAP. The Company has made estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash Equivalents and Investments The Company considers all highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents. The Company limits its concentration of risk by diversifying its investments among a variety of issuers. All investments are classified as available for sale and are recorded at fair value based on quoted prices in active markets or based upon other observable inputs, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Realized gains and losses and unrealized declines in fair value that are deemed to be other than temporary are reflected in the statement of operations. The cost of securities sold is based on the specific-identification method. Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, short-term investments, accounts receivable and accounts payable, approximate their fair value due to their short maturities. Fair value is considered to be the price at which an asset could be exchanged or a liability transferred (an exit price) in an orderly transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on or derived from observable market prices or other observable inputs. Where observable prices or inputs are not available, valuation models are applied. The valuation techniques involve management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. Concentration of Credit Risk The Company invests in a variety of financial instruments and, by its policy, limits the amount of credit exposure with any one issuer, industry or geographic area. For the years ended December 31, 2018, 2017 and 2016, 100%, 100% and 96%, respectively, of the Company’s total revenue was derived from the Company’s collaboration with Vifor (International) Ltd., and/or its affiliates, or collectively, Vifor. Accounts receivable are typically unsecured and are concentrated in the pharmaceutical industry and government sector. Accordingly, the Company may be exposed to credit risk generally associated with pharmaceutical companies and government funded entities. The Company has not historically experienced any significant losses due to concentration of credit risk. Accounts receivable consists of the following (in thousands): December 31, 2018 2017 Vifor (1) $ 2,058 $ 51,090 (1) As of December 31, 2017, accounts receivable excluded the $10.0 million cash commitment received from Vifor in February 2018 in connection with the agreement that harmonized the geographic commercialization rights underlying the agreements for both avacopan and CCX140 drug candidates (the Avacopan Amendment). See “Note 9. Related-Party Transactions” for a detailed discussion. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which range from five to seven years. Tenant improvements are depreciated over the lesser of the estimated useful life or the remaining life of the lease at the time the asset is placed into service. Impairment of Long-Lived Assets The Company reviews long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its respective fair value. To date, the Company has not recorded any impairment losses. Revenue Recognition Effective January 1, 2018, the Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers The Company enters into corporate collaborations under which it may obtain upfront license fees, research and development funding and development and regulatory and commercial milestone payments and royalty payments. The Company’s performance obligations under these arrangements may include licenses of intellectual property, distribution rights, research and development services, delivery of manufactured product, and/or participation on joint steering committees. Licenses of intellectual property: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from upfront license fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgement to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring proportional performance for purposes of recognizing revenue from non-refundable, up-front Milestone payments: At the inception of each arrangement that includes development, regulatory or commercial milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price. There are two alternatives to use when estimating the amount of variable consideration: the expected value method and the most likely amount method. Under the expected value method, an entity considers the sum of probability-weighted amounts in a range of possible consideration amounts. Under the most likely amount method, an entity considers the single most likely amount in a range of possible consideration amounts. Whichever method is used, it should be consistently applied throughout the life of the contract; however, it is not necessary for the Company to use the same approach for all contracts. The Company expects to use the most likely amount method for development and regulatory milestone payments. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis. The Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates catch-up Commercial milestones and royalties: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and in which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue when the related sales occur. To date, the Company has not recognized any royalty revenue resulting from its collaboration arrangements. Up-front Upon adoption of ASC 606 under the modified retrospective transition method, the Company recognized the cumulative effect of initially applying the new revenue standard of $47.3 million as an adjustment to the opening balance of accumulated deficit and an increase in deferred revenue. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Before the adoption of ASC 606, the Company recognized upfront fees straight-line under ASC 605 over the estimated performance period and recognized milestones when earned under the milestone method of accounting. See “Note 2. Summary of Significant Accounting Policies – Revenue Recognition” in the Company’s Annual Report on Form 10-K The impact of adoption on the Company’s consolidated statement of operations and balance sheet was as follows (in thousands): For the Year Ended December 31, 2018 As Balances Without Effect of Statement of Operations Collaboration and license revenue from related party $ 42,875 $ 28,083 $ 14,792 Loss from operations (40,270 ) (55,062 ) 14,792 Net loss (37,966 ) (52,758 ) 14,792 December 31, 2018 As Balances Without Effect of Balance Sheet Liabilities: Deferred revenue from related party $ 50,461 $ 19,939 $ 30,522 Noncurrent deferred revenuefrom related party 84,100 82,083 2,017 Stockholders’ equity: Accumulated deficit (374,497 ) (341,958 ) (32,539 ) Revenue from government and private agency grants are recognized as the related research and development expenses are incurred and to the extent that funding is approved. Research and Development Expenses All research and development expenses are recognized as incurred. Research and development expenses include, but are not limited to, salaries and related benefits, including stock-based compensation, third-party contract costs relating to research, formulation, manufacturing, preclinical study and clinical trial activities, laboratory consumables and allocated facility costs. Clinical Trial Accruals Clinical trial costs are a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon estimates of the percentage of work completed over the life of the individual study in accordance with agreements established with clinical research organizations and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services. Nonrefundable advance payments for goods and services that will be used or rendered in future research and development activities, are deferred and recognized as expense in the period that the related goods are delivered or services are performed. Income Taxes The Company uses the liability method for income taxes, whereby deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Valuation allowances are provided when the expected realization for the deferred tax assets does not meet the more-likely-than-not The Company accounts for uncertain tax positions in the financial statements when it is not more likely than not that the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured at the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company’s policy is to recognize any interest and penalties related to unrecognized tax benefits in income tax expense. Comprehensive Income (loss) Comprehensive income (loss) comprises net income (loss) and other comprehensive income (loss). For the periods presented, other comprehensive loss consists of unrealized losses on the Company’s available-for-sale Stock-Based Compensation The Company accounts for employee stock-based compensation using a fair-value-based method, which measures stock-based compensation cost at the grant date based on the fair value of the award, and recognizes as an expense over the award’s vesting periods on a straight-line basis. Because stock compensation expense is based on awards ultimately expected to vest, it has been reduced by an estimate for future forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company accounts for stock-based compensation arrangements with nonemployees using a fair-value approach. For stock options granted to nonemployees, the fair value of the stock options is estimated using the Black-Scholes valuation model. This model utilizes the estimated fair value of common stock and requires that, at the date of grant, assumptions are made with respect to the remaining contractual term of the option, the volatility of the fair value of its common stock, the risk-free interest rates and the expected dividend yields of its common stock. The measurement of nonemployee stock-based compensation is subject to periodic adjustment as the underlying equity instruments vest. The Company accounts for restricted stock compensation arrangements with nonemployee directors using a fair-value approach. For restricted stock units (RSUs) and restricted stock awards (RSAs) granted to nonemployee directors, the fair value of a RSU or RSA is valued at the closing price of the Company’s common stock on the date of the grant. The Company recognizes stock-based compensation expense associated with these RSUs and RSAs over the requisite service period, with no adjustment in future periods based on the Company’s actual stock price over the vesting period. Net Income (Loss) Per Share Basic net income (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the sum of the weighted-average number of common shares outstanding and dilutive common stock equivalent shares outstanding for the period. The Company’s potentially dilutive common stock equivalent shares, which include incremental common shares issuable upon (i) the exercise of outstanding stock options and warrants, (ii) vesting of RSUs and RSAs, and (iii) the purchase from contributions to the 2012 Employee Stock Purchase Plan (the ESPP) (calculated based on the treasury stock method), are only included in the calculation of diluted net income (loss) per share when their effect is dilutive. The following table is a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per share: Year Ended December 31, 2018 2017 2016 (in thousands, except per share data) Numerator: Net income (loss) $ (37,966 ) $ 17,859 $ (39,963 ) Denominator: Weighted average shares outstanding - basic 49,814 48,413 46,432 Dilutive stock options, RSUs and RSAs — 1,202 — Weighted average shares outstanding - diluted 49,814 49,615 46,432 Net income (loss) per common share Basic $ (0.76 ) $ 0.37 $ (0.86 ) Diluted $ (0.76 ) $ 0.36 $ (0.86 ) The following potentially dilutive securities were excluded from the calculation of diluted net income (loss) per share due to their anti-dilutive effect: Year Ended December 31, 2018 2017 2016 Options to purchase common stock, including purchases from contributions to ESPP 10,731,164 6,320,038 9,358,389 Restricted stock units 440,354 — 440,344 Restricted stock awards 27,278 — 31,306 Warrants to purchase common stock 150,000 150,000 150,000 11,348,796 6,470,038 9,980,039 Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, On December 22, 2017, the Tax Cuts and Jobs Act (the Act) was enacted into law. ASC 740, Income Taxes, requires companies to recognize the effect of the tax law changes in the period of enactment. Shortly after the enactment of the Act, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. The Company has adjusted its deferred tax assets and liabilities based on the reduction of the U.S. federal corporate tax rate from 34% to 21% and assessed the realizability of its deferred tax assets based on its current understanding of the provisions of the new law. During 2018, the Company finalized its computation of the impact of the Act. See “Note 13. Income Taxes” for a detailed discussion. In June 2018, the Financial Accounting Standard Board issued ASU No. 2018-07, The Company has reviewed other recent accounting pronouncements and concluded they are either not applicable to the business or that no material effect is expected on the consolidated financial statements as a result of future adoption. In August 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, 10-Q. year-to-date |
Cash Equivalents and Investment
Cash Equivalents and Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and Investments | 3. Cash Equivalents and Investments The amortized cost and fair value of cash equivalents and investments at December 31, 2018 and 2017 were as follows (in thousands): December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value Money market fund $ 22,073 $ — $ — $ 22,073 U.S. treasury securities 23,013 — (13 ) 23,000 Commercial paper 45,683 — — 45,683 Asset-backed securities 29,127 — (34 ) 29,093 Corporate debt securities 55,228 — (151 ) 55,077 Total available-for-sale $ 175,124 $ — $ (198 ) $ 174,926 Classified as: Cash equivalents $ 26,030 Short-term investments 148,896 Long-term investments — Total available-for-sale $ 174,926 December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value Money market fund $ 29,848 $ — $ — $ 29,848 U.S. treasury securities 29,005 — (52 ) 28,953 Commercial paper 46,184 — — 46,184 Corporate debt securities 27,095 — (67 ) 27,028 Total available-for-sale $ 132,132 $ 0 $ (119 ) $ 132,013 Classified as: Cash equivalents $ 36,813 Short-term investments 87,271 Long-term investments 7,929 Total available-for-sale $ 132,013 Cash equivalents in the tables above exclude cash of $2.1 million and $3.2 million as of December 31, 2018 and 2017, respectively. All available-for-sale available-for-sale available-for-sale available-for-sale more-likely-than-not |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company determines the fair value of financial assets and liabilities using three levels of inputs as follows: Level 1—Inputs which include quoted prices in active markets for identical assets and liabilities. Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s financial assets subject to fair value measurements on a recurring basis and the level of inputs used in such measurements were as follows as of December 31, 2018 and 2017 (in thousands): December 31, 2018 Level 1 Level 2 Level 3 Total Description Money market fund $ 22,073 $ — $ — $ 22,073 U.S. treasury securities — 23,000 — 23,000 Commercial paper — 45,683 — 45,683 Asset-backed securities — 29,093 — 29,093 Corporate debt securities — 55,077 — 55,077 Total assets $ 22,073 $ 152,853 $ — $ 174,926 December 31, 2017 Level 1 Level 2 Level 3 Total Description Money market fund $ 29,848 $ — $ — $ 29,848 U.S. treasury securities — 28,953 — 28,953 Commercial paper — 46,184 — 46,184 Corporate debt securities — 27,028 — 27,028 Total assets $ 29,848 $ 102,165 $ — $ 132,013 During the year ended December 31, 2018 there were no transfers between Level 1 and Level 2 financial assets. When the Company uses observable market prices for identical securities that are traded in less active markets, the Company classifies its marketable debt instruments as Level 2. When observable market prices for identical securities are not available, the Company prices its marketable debt instruments using non-binding Non-binding non-binding non-binding Other Fair Value Measurements The carrying amount and estimated fair value of financial instruments not recorded at fair value at December 31, 2018 and 2017 were as follows (in thousands): December 31, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Long-term debt, net (1) $ 19,689 $ 19,847 $ 4,676 $ 4,812 (1) Carrying amounts of long-term debt were net of unamortized debt discounts of $311,000 and $324,000 as of December 31, 2018 and 2017, respectively. The fair value of the Company’s long-term debt is estimated using the net present value of future debt payments, discounted at an interest rate that is consistent with market interest rates, which is a Level 2 input. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consist of the following (in thousands): December 31, 2018 2017 Lab equipment $ 6,263 $ 5,897 Computer equipment and software 1,809 1,688 Furniture and fixtures 554 551 Tenant improvements 1,030 893 9,656 9,029 Less: accumulated depreciation (8,120 ) (7,819 ) $ 1,536 $ 1,210 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 6. Accrued Liabilities Accrued liabilities consist of the following (in thousands): December 31, 2018 2017 Research and development related $ 8,466 $ 4,962 Compensation related 2,767 2,345 Consulting and professional services 811 1,012 Other 925 256 $ 12,969 $ 8,575 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 7. Long-term Debt On December 28, 2017 (the Closing Date), the Company entered into a Loan and Security Agreement with Hercules Capital Inc. (Hercules) which the Company amended in December 2018, pursuant to which term loans in an aggregate principal amount of up to $50.0 million (the Credit Facility) are available to the Company in three tranches, subject to certain terms and conditions. As of December 31, 2018, the Company had borrowed $20.0 million under the Credit Facility with up to $25.0 million available for future borrowing, subject to Hercules’ approval through June 15, 2019. Advances under the Credit Facility will bear an interest rate equal to the greater of either (i) 8.05% plus the prime rate as reported from time to time in The Wall Street Journal minus 4.75%, and (ii) 8.05%. At December 31, 2018, interest rate on the outstanding borrowings under the Credit Facility was 8.80%. For advances under the first and second tranches, the Company will make interest-only payments through July 1, 2021, and will then repay the principal balance and interest on the advances in equal monthly installments after the interest-only period and continuing through December 1, 2022. For advances made under the third tranche, the Company will make interest-only payments for the first 30 months, and will then repay the principal balance and interest on the advances in equal monthly installments after the interest-only period with each advance repaid 48 months after it is drawn. The Company may prepay advances under the Credit Facility, in whole or in part, at any time, subject to a prepayment charge equal to: (a) 1.5% of the amount so prepaid, if such prepayment occurs during the second year following the Closing Date; and (b) 1.0% of the amount so prepaid, if such prepayment occurs after the second year following the Closing Date. The Credit Facility is secured by substantially all of the Company’s assets, excluding intellectual property. In addition, Hercules has the right to participate, in an amount up to $2.0 million in any subsequent equity financing broadly marketed to multiple investors in an amount greater than $20.0 million. The Credit Facility also includes customary affirmative restrictions on the payment of dividends and negative covenants, and events of default, the occurrence and continuance of which provide Hercules with the right to demand immediate repayment of all principal and unpaid interest under the Credit Facility, and to exercise remedies against the Company and the collateral securing the Credit Facility. The Company was in compliance with all loan covenants for all periods presented. The Company will pay an end-of-term In addition, the Company pays a commitment charge of 1% of the advances made under the Credit Facility, with a minimum charge of $162,500 paid on the Closing Date. Also, the Company reimbursed Hercules for costs incurred related to the Credit Facility. These charges were recorded as discounts to the carrying value of the loan and are amortized over the term of the loan using the effective interest method. As of December 31, 2018, the Company had outstanding borrowings under the Credit Facility of $19.7 million, net of discounts of $0.3 million. Future minimum principal payments, which exclude the end of term charge, related to the Credit Facility as of December 31, 2018 are as follows (in thousands): Amounts Year ending December 31: 2019 $ — 2020 — 2021 6,363 2022 13,637 Total minimum payments 20,000 Less: amount representing debt discount (311 ) Present value of remaining debt payments 19,689 Less: current portion — Noncurrent portion $ 19,689 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | 8. Commitments Operating Leases In May 2004, the Company entered into a noncancelable operating lease for its current office and primary research facility located in Mountain View, California. The Company received a discounted lease rate during the first year of the agreement. In August 2012, the Company entered into an amendment to the lease agreement for the same facility to extend the term through April 2019. In April 2017, the Company entered into a second amendment to the lease agreement for the same facility to extend the term of the lease through April 2020. The total rent obligation is being expensed ratably over the term of the agreement, as amended. Rental expenses for the years ended December 31, 2018, 2017 and 2016 were $1.4 million, $1.3 million and $1.2 million, respectively. Future minimum lease payments under all noncancelable operating leases as of December 31, 2018, are as follows (in thousands): Amounts Year ending December 31: 2019 $ 1,316 2020 500 Total minimum lease payments $ 1,816 |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 9. Related-Party Transactions Bio-Techne Bio-Techne Bio-Techne ten-year For the years ended December 31, 2018, 2017 and 2016, the Company paid Bio-Techne Bio-Techne. Bio-Techne Vifor In October 2018, Vifor acquired 7,343,492 shares of the Company’s common stock from Glaxo Group Limited, bringing their aggregate holdings of the Company’s common stock to 10,676,825 as of December 31, 2018. The Company has collaboration agreements with Vifor: the Avacopan Agreements and CCX140 Agreement. See “Note 2. Summary of Significant Accounting Policies – Concentration of Credit Risk” for additional information on accounts receivable balance due from Vifor. Avacopan Agreements In May 2016, the Company entered into an exclusive collaboration and license agreement with Vifor pursuant to which the Company granted Vifor exclusive rights to commercialize avacopan in Europe and certain other markets (the Avacopan Agreement). Avacopan is the Company’s lead drug candidate for the treatment of patients with anti-neutrophil cytoplasmic auto-antibody associated vasculitis (AAV) and other rare diseases. The Avacopan Agreement also provided Vifor with an exclusive option to negotiate during 2016 a worldwide license agreement for one of the Company’s other drug candidates, CCX140, an orally-administered inhibitor of the chemokine receptor known as CCR2. In connection with the Avacopan Agreement, the Company received a non-refundable In February 2017, Vifor and the Company expanded the Vifor territories under the Avacopan Agreement to include all markets outside the United States and China (the Avacopan Amendment). In connection with this February 2017 arrangement, the Company received a $20.0 million upfront payment for the expanded rights. In June 2018, Vifor and the Company further expanded the Vifor territories under the Avacopan Agreement to provide Vifor with exclusive commercialization rights in China (the Avacopan Letter Agreement). The Company retains control of ongoing and future development of avacopan (other than country-specific development in the licensed territories) and all commercialization rights to avacopan in the United States. In consideration for the Avacopan Letter Agreement, the Company received a $5.0 million payment for the expanded rights. Upon achievement of certain regulatory and commercial milestones with avacopan, the Company will receive additional payments of up to $460.0 million under the Avacopan Agreement. In addition, the Company will receive royalties, with rates ranging from the low teens to the mid-twenties, The Company identified the following material promises under the Avacopan Agreement, the Avacopan Amendment, and the Avacopan Letter Amendment: (1) the license related to avacopan; (2) the development and regulatory services for the submission of the marketing authorisation application (MAA); and (3) an exclusive option to negotiate a worldwide license agreement for CCX140, which expired in 2016. The Company considered that the license has standalone functionality and is capable of being distinct. However, the Company determined that the license is not distinct from the development and regulatory services within the context of the agreement because Vifor is dependent on the Company to execute the development and regulatory activities in order for Vifor to benefit from the license. As such, the license is combined with the development and regulatory services into a single performance obligation. The exclusive option related to CCX140 is a separate performance obligation and the Company determined that its transaction price is not material. As such, the transaction price under this arrangement is allocated to the license and the development and regulatory services. As of December 31, 2018, the transaction price of $153.0 million consists of the following: • $78.0 million upfront payment under the May 2016 Avacopan Agreement. Of the total $85.0 million upfront payment received under the May 2016 Avacopan Agreement, $7.0 million was allocated to the issuance of 3,333,333 shares of the Company’s common stock valued at $2.10 per share, the closing stock price on the effective date of the agreement, May 9, 2016. The remaining $78.0 million was allocated to the transaction price under this arrangement; • $20.0 million upfront payment under the February 2017 Avacopan Amendment; • $50.0 million regulatory milestone payment achieved upon the validation of the Company’s CMA application by the EMA, for avacopan for the treatment of AAV in December 2017; and • $5.0 million payment under the Avacopan Letter Agreement. The Company will re-evaluate The Company determined that the combined performance obligation will be performed over the duration of the contract, which began on the effective date of May 9, 2016 and ends upon completion of development and regulatory services. The Company uses a cost-based input method to measure proportional performance and to calculate the corresponding amount of revenue to recognize. The Company believes this is the best measure of progress because other measures do not reflect how the Company transfers its performance obligation to Vifor. In applying the cost-based input method of revenue recognition, the Company measures actual costs incurred relative to budgeted costs to fulfill the combined performance obligation. These costs consist primarily of third-party contract costs. Revenue is recognized based on actual costs incurred as a percentage of total budgeted costs as the Company completes its performance obligations. For the year ended December 31, 2018, the Company recognized $37.1 million of collaboration and license revenue under the Avacopan Agreement, the Avacopan Amendment and the Avacopan Letter Agreement. Prior to the adoption of ASC 606 on January 1, 2018, the Company accounted for its performance obligations under the Avacopan Agreement and Avacopan Amendment as one combined unit of accounting with the upfront fees being recognized over the estimated period of performance. See “Note 10. Collaboration and License Agreements – Avacopan Agreements” in the Company’s Annual Report on Form 10-K CCX140 Agreement In December 2016, the Company entered into a second collaboration and license agreement with Vifor pursuant to which the Company granted Vifor exclusive rights to commercialize CCX140 (the CCX140 Agreement) in markets outside the United States and China. CCX140 is an orally-administered inhibitor of the chemokine receptor known as CCR2. The Company retains marketing rights in the United States and China, while Vifor has commercialization rights in the rest of the world. Pursuant to the CCX140 Agreement, the Company is responsible for the clinical development of CCX140 in rare renal diseases and is reimbursed for Vifor’s equal share of such development cost. Vifor retains an option to solely develop and commercialize CCX140 in more prevalent forms of chronic kidney disease (CKD). Should Vifor later exercise the CKD option, the Company would receive co-promotion non-refundable In June 2018, the Company and Vifor entered into a letter agreement to expand Vifor’s rights to include the right to exclusively commercialize CCX140 in China (the CCX140 Letter Agreement). In connection with the CCX140 Letter Agreement, the Company received a non-refundable non-refundable Upon achievement of certain regulatory and commercial milestones with CCX140, the Company will receive additional payments of up to $625.0 million under the CCX140 Agreement. In addition, the Company will receive tiered royalties, with rates ranging from ten to the mid-twenties, The Company identified the following material promises under the CCX140 Agreement, the CCX140 Amendment, and CCX140 Letter Agreement: (1) the license related to CCX140; and (2) the development and regulatory services for the submission of the MAA. The Company considered that the license has standalone functionality and is capable of being distinct. However, the Company determined that the license is not distinct from the development and regulatory services within the context of the agreement because Vifor is dependent on the Company to execute the development and regulatory activities in order for Vifor to benefit from the license. As such, the license is combined with the development and regulatory services into a single performance obligation. As of December 31, 2018, the transaction price of $113.5 million consists of the following: • $50.0 million upfront payment under the CCX140 Agreement; • $58.5 million of CCX140 development funding by Vifor; and • $5.0 million upfront payment under the CCX140 Letter Agreement. The Company will re-evaluate The Company determined that the combined performance obligation will be performed over the duration of the contract, which began on the effective date of December 22, 2016 and ends upon completion of development and regulatory services. The Company uses a cost-based input method to measure proportional performance and to calculate the corresponding amount of revenue to recognize. The Company believes this is the best measure of progress because other measures do not reflect how the Company transfers its performance obligation to Vifor. In applying the cost-based input method of revenue recognition, the Company measures actual costs incurred relative to budgeted costs to fulfill the combined performance obligation. These costs consist primarily of third-party contract costs. Revenue is recognized based on actual costs incurred as a percentage of total budgeted costs as the Company completes its performance obligations. For the year ended December 31, 2018, the Company recognized $5.8 million of collaboration and license revenue under the CCX140 Agreement, the CCX140 Amendment and the CCX140 Letter Agreement. Prior to the adoption of ASC 606 on January 1, 2018, the Company accounted for its performance obligations under the CCX140 Agreement as one combined unit of accounting with the upfront fee of $50.0 million being recognized over the estimated period of performance. See “Note 10. Collaboration and License Agreements – CCX140 Agreement” in the Company’s Annual Report on Form 10-K The following table presents the contract assets and liabilities for all of the Company’s revenue contracts as of the following dates (in thousands): December 31, 2018 December 31, 2017 Contract asset: Accounts receivable $ 2,058 $ 51,090 Contract liability: Deferred revenue (1) (134,561 ) (95,159 ) (1) Upon adoption of ASC 606 under the modified retrospective transition method, the Company recognized the cumulative effect of initially applying the new revenue standard of $47.3 million as an adjustment to the opening balance of accumulated deficit and an increase in deferred revenue. See “Note 2. Summary of Significant Accounting Policies – Revenue Recognition” for a detailed discussion. During the year ended December 31, 2018, the Company recognized the following revenue as a result of changes in the contract asset and the contract liability balances (in thousands): Year Ended Revenue recognized in the period from: Amount included in contract liability at the beginning of the period $ 39,815 Performance obligations satisfied (or partially satisfied) in previous periods $ (3,357 ) |
Government Grant
Government Grant | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Government Grant | 10. Government Grant In April 2016, the Company was awarded an Orphan Products Development grant by the U.S. Food and Drug Administration to support the clinical development of avacopan in the amount of $500,000, which was fully recognized during the year ended December 31, 2016. The term of the grant expired in May 2017. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity Equity Incentive Plans In May 2002, the stockholders approved the Amended and Restated 1997 Stock Option/Stock Issuance Plan (the 1997 Plan) and in September 2002, the stockholders approved the 2002 Equity Incentive Plan (the 2002 Plan). In February 2012, the stockholders approved the 2012 Equity Incentive Award Plan (the 2012 Plan). As of December 31, 2018, a total of 13,440,000 shares of the Company’s common stock were reserved for issuance under the 2012 Plan. In addition, the number of shares available for issuance under the 2012 Plan will be annually increased by an amount equal to the lesser of: 2,000,000 shares; 4% of the outstanding shares of the Company’s common stock as of the last day of the Company’s immediately preceding fiscal year; or an amount determined by the Company’s Board of Directors. In November 2018,the Board of Directors approved an increase to the number of shares reserved forissuance under the 2012 Plan by 2,000,000 shares effective January 1, 2019. Collectively, the 1997 Plan, the 2002 Plan and the 2012 Plan are known as the Stock Plans. Restricted Stock Restricted Stock Awards (RSAs) and Restricted Stock Units (RSUs) are independent of stock option grants and are not transferrable, and are subject to forfeiture if recipients terminate their service to the Company prior to the release of the vesting restrictions. RSUs granted to employees generally vest over a period of three years. RSUs and RSAs granted to its nonemployee directors vest over a one-year Non-Employee The activity for restricted stock is summarized as follows: Shares Weighted-Average Balance at December 31, 2017 508,444 $ 5.79 Granted 228,860 11.32 Vested (269,672 ) 5.83 Canceled — — Unvested at December 31, 2018 467,632 $ 8.47 As of December 31, 2018, there was $2.0 million of unrecognized compensation expense associated with unvested restricted stock, which is expected to be recognized over a weighted-average period of 1.3 years. Stock Options Under the Stock Plans, incentive stock options may be granted by the Board of Directors to employees at exercise prices of not less than 100% of the fair value at the date of grant. Nonstatutory options may be granted by the Board of Directors to employees, officers, and directors of the Company or consultants at exercise prices of not less than 85% of the fair value of the common stock on the date of grant. The fair value at the date of grant is determined by the Board of Directors. Under the Stock Plans, options may be granted with different vesting terms from time to time, but not to exceed 10 years from the date of grant. Outstanding options generally vest over four years, with 25% of the total grant vesting on the first anniversary of the option grant date and 1/36th of the remaining grant vesting each month thereafter. The following table summarizes stock option activity and related information under the Company’s Stock Plans: Available Shares Weighted Weighted Aggregate Balance at December 31, 2017 2,028,880 10,203,571 $ 7.68 Shares authorized 1,940,000 — Granted (1) (2,565,372 ) 2,336,512 9.97 Exercised (2) 97,525 (1,612,400 ) 6.26 Forfeited and expired 207,483 (207,483 ) 7.92 Outstanding at December 31, 2018 1,708,516 10,720,200 $ 8.39 6.34 $ 33,230,822 Vested and expected to vest, net of estimated forfeiture at December 31, 2018 10,462,992 $ 8.38 6.27 $ 32,631,253 Exercisable at December 31, 2018 6,977,786 $ 8.40 5.05 $ 23,063,000 (1) The difference between shares granted in the number of shares available for grant and outstanding options represents the RSUs and RSAs granted for the period. (2) Shares presented as available for grant represents shares repurchased for tax withholding upon vesting of RSUs. The aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the period in excess of the weighted-average exercise price multiplied by the number of options outstanding or exercisable. Total intrinsic value of options exercised was $9.8 million, $1.3 million and $0.7 million during 2018, 2017 and 2016, respectively. As of December 31, 2018, there was $15.0 million of unrecognized compensation expense, net of estimated forfeitures, associated with outstanding stock options, which is expected to be recognized over an estimated weighted-average period of 2.5 years. As of December 31, 2018, stock options outstanding were as follows: Options Outstanding Exercise Price Range Shares Weighted-Average $2.10 - $3.57 1,258,034 7.18 $4.50 - $6.08 1,073,633 4.71 $6.19 - $6.30 1,092,556 5.78 $6.50 - $6.60 77,225 8.31 $6.62 1,099,056 8.11 $6.90 - $7.28 1,083,118 5.17 $7.42 - $8.19 1,272,523 6.41 $8.22 - $10.82 536,534 6.09 $10.86 1,119,200 9.18 $10.91 - $15.90 2,108,321 5.05 10,720,200 6.34 Employee Stock Purchase Plan In February 2012, the stockholders approved the ESPP. As of December 31, 2018, a total of 1,100,000 shares of the Company’s common stock were reserved for issuance under the ESPP. In addition, the number of shares available for issuance under the ESPP may be annually increased on the first day of each fiscal year during the term of the ESPP, beginning with the 2012 fiscal year, by an amount equal to the lesser of: 300,000 shares; 1% of outstanding shares of the Company’s common stock; or an amount determined by the Company’s Board of Directors. The ESPP provides for an aggregate limit of 3,000,000 shares of common stock that may be issued under the ESPP during the term of the ESPP. In November 2018, the Board of Directors approved an increase to the number of shares reserved for issuance under the ESPP by 300,000 shares effective January 1, 2019. The Company issued 88,784, 93,221 and 157,893 shares under the ESPP in 2018, 2017 and 2016, respectively. As of December 31, 2018, 394,551 shares were available for issuance under the ESPP. As of December 31, 2018, there was $0.1 million of unrecognized compensation expense, net of estimated forfeitures, associated with the ESPP, which is expected to be recognized over an estimated weighted-average period of 0.4 years. Stock Awards Granted to Employees Employee stock-based compensation expense recognized is calculated based on awards ultimately expected to vest and reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Total employee stock-based compensation expense recognized associated with restricted stock, stock options, and the ESPP, was as follows (in thousands): Year Ended December 31, 2018 2017 2016 Research and development $ 3,632 $ 3,154 $ 3,245 General and administrative 6,339 4,965 4,977 Total $ 9,971 $ 8,119 $ 8,222 Valuation Assumptions Fair value of options granted under the Stock Plans and purchases under the Company’s ESPP were estimated at grant or purchase dates using a Black-Scholes option valuation model. The Black-Scholes valuation model requires that assumptions are made with respect to various factors, including the expected volatility of the fair value of the Company’s common stock. The Company has based its expected volatility on the average historical volatilities of public entities having similar characteristics including: industry, stage of life cycle, size, and financial leverage. The weighted-average expected term of options was calculated using the simplified method as prescribed by accounting guidance for stock-based compensation. This decision was based on the lack of relevant historical data due to the Company’s limited historical experience. The fair values of the employee stock options granted under the Company’s Stock Plans and the option component of the shares purchased under the ESPP during 2018, 2017 and 2016 were estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: Employee Stock Options Employee Stock 2018 2017 2016 2018 2017 2016 Dividend yield 0 % 0 % 0 % 0 % 0 % 0 % Volatility 67.8 % 68.3 % 65.6 % 73.8 % 52.9 % 99.7 % Weighted-average expected life (in years) 6.0 6.0 6.0 0.5 0.5 0.5 Risk-free interest rate 2.66 % 2.04 % 1.58 % 2.33 % 1.22 % 0.47 % Weighted-average grant date fair value $ 6.22 $ 4.30 $ 2.43 $ 3.73 $ 2.16 $ 2.29 Stock Options Granted to Nonemployees During 2018, 2017 and 2016, the Company granted to consultants options to purchase 28,534, 239,266 and 15,000 shares of common stock, respectively. The stock-based compensation expense related to nonemployees will fluctuate as the fair value of the Company’s common stock fluctuates. In connection with grants of stock options to nonemployees, the Company recorded stock-based compensation expense as follows (in thousands): Year Ended December 31, 2018 2017 2016 Research and development $ 862 $ 629 $ 313 General and administrative — — — Total $ 862 $ 629 $ 313 Valuation Assumptions Stock-based compensation expense associated with stock options granted to nonemployees is recognized as the stock options vest. The estimated fair values of the stock options granted are calculated at each reporting date using the Black-Scholes option-pricing model, with the following assumptions: Year Ended December 31, 2018 2017 2016 Dividend yield 0 % 0 % 0 % Volatility 67-68 % 69-70 % 65-68 % Weighted-average expected life (in years) 5.7-9.9 5.5-10.0 6.1-9.9 Risk-free interest rate 2.7-3.0 % 1.9-2.5 % 1.3-2.4 % Equity Distribution Agreement In December 2018, the Company entered into an Equity Distribution Agreement (EDA), pursuant to which the Company may offer and sell, from time to time, shares of our common stock, par value $0.001 per share, having an aggregate offering price of up to $75.0 million. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2018 | |
Postemployment Benefits [Abstract] | |
401(k) Plan | 12. 401(k) Plan In October 1997, the Company established the ChemoCentryx 401(k) Plan and Trust (the 401(k) Plan). Employees may contribute, up to the percentage limit imposed by the Internal Revenue Code of 1986, as amended, an amount of their salary each calendar year until termination of their employment with the Company. The Company may elect to make matching contributions, as per the Plan; however, no matching contributions were made in the years ended December 31, 2018, 2017 and 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The Company’s loss before tax is only attributable to U.S. operations. The components of the income tax (benefit) expense are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current (benefit from) provision for income taxes: Federal $ — $ — $ — State — — — Total current (benefit from) provision for income taxes — — — Deferred (benefit from) provision for income taxes: — — — Federal — — — State — — — Total deferred tax (benefit from) provision for income taxes — — — (Benefit from) provision for income taxes $ — $ — $ — A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2018 2017 2016 Federal statutory income tax rate (21.0 %) 34.0 % (34.0 %) State income taxes, net of federal benefit — — (5.8 ) Permanent items 1.6 5.5 2.1 Excess tax benefit for stock-based compensation (2.8 ) (2.0 ) — Research and development credits (3.5 ) (7.2 ) (2.8 ) Change in valuation allowance 24.5 (224.1 ) 38.1 Change in tax rate — 193.8 — Other 1.2 — 2.4 (Benefit from) provisions for income taxes — % — % — % The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets consist of the following (in thousands): December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 62,405 $ 55,569 Research and development credit 11,794 10,470 Amortization of deferred stock compensation - non-qualified 6,569 6,385 Reserves and accruals 1,140 785 Deferred revenue 20,991 10,297 Depreciation and amortization — 231 Gross deferred tax assets 102,899 83,737 Less: valuation allowance (102,891 ) (83,737 ) Total deferred tax assets 8 — Deferred tax liabilities: Depreciation and amortization (8 ) — Total deferred tax liabilities (8 ) — Net deferred tax assets $ — $ — On December 22, 2017, the Act was enacted into law. The Act contains several key provisions including the reduction of the corporate income tax rate to 21%, effective January 1, 2018, as well as a variety of other changes including the limitation of the tax deductibility of interest expense, acceleration of expensing of certain business assets and reductions in the amount of executive pay that could qualify as a tax deduction. Additionally, the Act introduced a territorial-style system for taxing foreign source income of domestic multinational corporations. As a result of the Act and the federal rate reduction the federal deferred tax assets were reduced by $36.0 million with an offset to the Company’s valuation allowance which is reflected in the financial statements for the tax year ended December 31, 2017. ASC 740, Income Taxes, requires companies to recognize the effect of the tax law changes in the period of enactment. Shortly after the enactment of the Act, the SEC staff issued “SAB 118” which allows the Company to record provisional amounts during a measurement period not to extend beyond one year from the enactment date. The analysis and accounting for the tax effects of the Act were completed in the fourth quarter ended December 31, 2018, with no additional impact to the Company’s deferred tax assets. The Company concluded that it was more likely than not that its deferred tax assets would not be realized. Accordingly, the total deferred tax assets were fully offset by a valuation allowance. The Company’s valuation allowance increased by approximately $19.2 million in 2018 and decreased by approximately $40.0 million in 2017. At December 31, 2018, the Company had federal and state net operating loss carryforwards of approximately $225.4 million and $246.8 million, respectively. The federal net operating loss carryforwards will begin to expire in 2031. Due to tax reform, federal net operating loss carryforwards generated post-2017 no longer have an expiration date. The state net operating loss carryforwards begin to expire in 2019. The Company has federal and state research and development credit carryforwards of $12.7 million and $6.9 million, respectively. The federal research and development credits will begin to expire in 2019 if not utilized. California research and development credits can be carried forward indefinitely. Utilization of the net operating loss and credit carryforwards may be subject to annual limitation due to historical or future ownership percentage change rules provided by the Internal Revenue Code of 1986, and similar state provisions. The annual limitation may result in the expiration of certain net operating loss and credit carryforwards before their utilization. A reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2018, 2017 and 2016, is as follows (in thousands): Unrecognized Balance as of December 31, 2016 $ 5,430 Additions for current tax positions 603 Additions for prior tax positions 2,753 Balance as of December 31, 2017 $ 8,786 Additions for current tax positions 928 Balance as of December 31, 2018 $ 9,714 As of December 31, 2018 and 2017, the Company had approximately $9.7 million and $8.8 million, respectively, of unrecognized tax benefits, none of which would currently affect the Company’s effective tax rate if recognized due to the Company’s deferred tax assets being fully offset by a valuation allowance. In 2018, unrecognized tax benefits increased due to uncertainty associated with the Company’s research and development credits. The Company is not aware of any items that will significantly increase or decrease its unrecognized tax benefits in the next 12 months. For U.S. federal and California income tax purposes, the statute of limitations remains open for the years beginning 2015 and 2014, respectively, except for the carryforward of net operating losses and research and development credits generated in prior years. If applicable, the Company would classify interest and penalties related to uncertain tax positions in income tax expense. Through December 31, 2018, there has been no interest expense or penalties related to unrecognized tax benefits. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | 14. Selected Quarterly Financial Data (unaudited) Selected quarterly results from operations for the years ended December 31, 2018 and 2017 are as follows (in thousands except per share amounts): 2018 Quarter Ended March 31 June 30 September 30 December 31 Revenue $ 9,546 $ 15,022 $ 8,975 $ 9,332 Net loss $ (9,417 ) $ (6,874 ) $ (10,890 ) $ (10,785 ) Basic and diluted net loss per share $ (0.19 ) $ (0.14 ) $ (0.22 ) $ (0.21 ) 2017 Quarter Ended March 31 June 30 September 30 December 31 Revenue $ 8,230 $ 8,937 $ 9,029 $ 56,301 Net income (loss) $ (5,996 ) $ (9,240 ) $ (6,560 ) $ 39,655 Basic net income (loss) per share $ (0.12 ) $ (0.19 ) $ (0.13 ) $ 0.81 Diluted net income (loss) per share $ (0.12 ) $ (0.19 ) $ (0.13 ) $ 0.80 The four quarters of net earnings per share may not add to the total year because of differences in the weighted-average numbers of shares outstanding during the quarters and the year. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | 15. Subsequent Event In January 2019, the Company sold 1,666,367 shares of its common stock pursuant to its EDA at a price per share of $12.00, for net proceeds of $19.4 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The consolidated financial statements include the Company’s accounts and those of its wholly owned subsidiaries, ChemoCentryx Ireland Limited and ChemoCentryx Limited. The operations of ChemoCentryx Ireland Limited and ChemoCentryx Limited have been immaterial to date. All intercompany amounts have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. |
Basis of Presentation | Basis of Presentation The financial statements are prepared in conformity with GAAP. The Company has made estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash Equivalents and Investments | Cash Equivalents and Investments The Company considers all highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents. The Company limits its concentration of risk by diversifying its investments among a variety of issuers. All investments are classified as available for sale and are recorded at fair value based on quoted prices in active markets or based upon other observable inputs, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Realized gains and losses and unrealized declines in fair value that are deemed to be other than temporary are reflected in the statement of operations. The cost of securities sold is based on the specific-identification method. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, short-term investments, accounts receivable and accounts payable, approximate their fair value due to their short maturities. Fair value is considered to be the price at which an asset could be exchanged or a liability transferred (an exit price) in an orderly transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on or derived from observable market prices or other observable inputs. Where observable prices or inputs are not available, valuation models are applied. The valuation techniques involve management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. |
Concentration of Credit Risk | Concentration of Credit Risk The Company invests in a variety of financial instruments and, by its policy, limits the amount of credit exposure with any one issuer, industry or geographic area. For the years ended December 31, 2018, 2017 and 2016, 100%, 100% and 96%, respectively, of the Company’s total revenue was derived from the Company’s collaboration with Vifor (International) Ltd., and/or its affiliates, or collectively, Vifor. Accounts receivable are typically unsecured and are concentrated in the pharmaceutical industry and government sector. Accordingly, the Company may be exposed to credit risk generally associated with pharmaceutical companies and government funded entities. The Company has not historically experienced any significant losses due to concentration of credit risk. Accounts receivable consists of the following (in thousands): December 31, 2018 2017 Vifor (1) $ 2,058 $ 51,090 (1) As of December 31, 2017, accounts receivable excluded the $10.0 million cash commitment received from Vifor in February 2018 in connection with the agreement that harmonized the geographic commercialization rights underlying the agreements for both avacopan and CCX140 drug candidates (the Avacopan Amendment). See “Note 9. Related-Party Transactions” for a detailed discussion. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which range from five to seven years. Tenant improvements are depreciated over the lesser of the estimated useful life or the remaining life of the lease at the time the asset is placed into service. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its respective fair value. To date, the Company has not recorded any impairment losses. |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers The Company enters into corporate collaborations under which it may obtain upfront license fees, research and development funding and development and regulatory and commercial milestone payments and royalty payments. The Company’s performance obligations under these arrangements may include licenses of intellectual property, distribution rights, research and development services, delivery of manufactured product, and/or participation on joint steering committees. Licenses of intellectual property: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from upfront license fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgement to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring proportional performance for purposes of recognizing revenue from non-refundable, up-front Milestone payments: At the inception of each arrangement that includes development, regulatory or commercial milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price. There are two alternatives to use when estimating the amount of variable consideration: the expected value method and the most likely amount method. Under the expected value method, an entity considers the sum of probability-weighted amounts in a range of possible consideration amounts. Under the most likely amount method, an entity considers the single most likely amount in a range of possible consideration amounts. Whichever method is used, it should be consistently applied throughout the life of the contract; however, it is not necessary for the Company to use the same approach for all contracts. The Company expects to use the most likely amount method for development and regulatory milestone payments. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis. The Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates catch-up Commercial milestones and royalties: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and in which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue when the related sales occur. To date, the Company has not recognized any royalty revenue resulting from its collaboration arrangements. Up-front Upon adoption of ASC 606 under the modified retrospective transition method, the Company recognized the cumulative effect of initially applying the new revenue standard of $47.3 million as an adjustment to the opening balance of accumulated deficit and an increase in deferred revenue. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Before the adoption of ASC 606, the Company recognized upfront fees straight-line under ASC 605 over the estimated performance period and recognized milestones when earned under the milestone method of accounting. See “Note 2. Summary of Significant Accounting Policies – Revenue Recognition” in the Company’s Annual Report on Form 10-K The impact of adoption on the Company’s consolidated statement of operations and balance sheet was as follows (in thousands): For the Year Ended December 31, 2018 As Balances Without Effect of Statement of Operations Collaboration and license revenue from related party $ 42,875 $ 28,083 $ 14,792 Loss from operations (40,270 ) (55,062 ) 14,792 Net loss (37,966 ) (52,758 ) 14,792 December 31, 2018 As Balances Without Effect of Balance Sheet Liabilities: Deferred revenue from related party $ 50,461 $ 19,939 $ 30,522 Noncurrent deferred revenuefrom related party 84,100 82,083 2,017 Stockholders’ equity: Accumulated deficit (374,497 ) (341,958 ) (32,539 ) Revenue from government and private agency grants are recognized as the related research and development expenses are incurred and to the extent that funding is approved. |
Research and Development Expenses | Research and Development Expenses All research and development expenses are recognized as incurred. Research and development expenses include, but are not limited to, salaries and related benefits, including stock-based compensation, third-party contract costs relating to research, formulation, manufacturing, preclinical study and clinical trial activities, laboratory consumables and allocated facility costs. |
Clinical Trial Accruals | Clinical Trial Accruals Clinical trial costs are a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon estimates of the percentage of work completed over the life of the individual study in accordance with agreements established with clinical research organizations and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services. Nonrefundable advance payments for goods and services that will be used or rendered in future research and development activities, are deferred and recognized as expense in the period that the related goods are delivered or services are performed. |
Income Taxes | Income Taxes The Company uses the liability method for income taxes, whereby deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Valuation allowances are provided when the expected realization for the deferred tax assets does not meet the more-likely-than-not The Company accounts for uncertain tax positions in the financial statements when it is not more likely than not that the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured at the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company’s policy is to recognize any interest and penalties related to unrecognized tax benefits in income tax expense. Comprehensive Income (loss) Comprehensive income (loss) comprises net income (loss) and other comprehensive income (loss). For the periods presented, other comprehensive loss consists of unrealized losses on the Company’s available-for-sale |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for employee stock-based compensation using a fair-value-based method, which measures stock-based compensation cost at the grant date based on the fair value of the award, and recognizes as an expense over the award’s vesting periods on a straight-line basis. Because stock compensation expense is based on awards ultimately expected to vest, it has been reduced by an estimate for future forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company accounts for stock-based compensation arrangements with nonemployees using a fair-value approach. For stock options granted to nonemployees, the fair value of the stock options is estimated using the Black-Scholes valuation model. This model utilizes the estimated fair value of common stock and requires that, at the date of grant, assumptions are made with respect to the remaining contractual term of the option, the volatility of the fair value of its common stock, the risk-free interest rates and the expected dividend yields of its common stock. The measurement of nonemployee stock-based compensation is subject to periodic adjustment as the underlying equity instruments vest. The Company accounts for restricted stock compensation arrangements with nonemployee directors using a fair-value approach. For restricted stock units (RSUs) and restricted stock awards (RSAs) granted to nonemployee directors, the fair value of a RSU or RSA is valued at the closing price of the Company’s common stock on the date of the grant. The Company recognizes stock-based compensation expense associated with these RSUs and RSAs over the requisite service period, with no adjustment in future periods based on the Company’s actual stock price over the vesting period. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the sum of the weighted-average number of common shares outstanding and dilutive common stock equivalent shares outstanding for the period. The Company’s potentially dilutive common stock equivalent shares, which include incremental common shares issuable upon (i) the exercise of outstanding stock options and warrants, (ii) vesting of RSUs and RSAs, and (iii) the purchase from contributions to the 2012 Employee Stock Purchase Plan (the ESPP) (calculated based on the treasury stock method), are only included in the calculation of diluted net income (loss) per share when their effect is dilutive. The following table is a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per share: Year Ended December 31, 2018 2017 2016 (in thousands, except per share data) Numerator: Net income (loss) $ (37,966 ) $ 17,859 $ (39,963 ) Denominator: Weighted average shares outstanding - basic 49,814 48,413 46,432 Dilutive stock options, RSUs and RSAs — 1,202 — Weighted average shares outstanding - diluted 49,814 49,615 46,432 Net income (loss) per common share Basic $ (0.76 ) $ 0.37 $ (0.86 ) Diluted $ (0.76 ) $ 0.36 $ (0.86 ) The following potentially dilutive securities were excluded from the calculation of diluted net income (loss) per share due to their anti-dilutive effect: Year Ended December 31, 2018 2017 2016 Options to purchase common stock, including purchases from contributions to ESPP 10,731,164 6,320,038 9,358,389 Restricted stock units 440,354 — 440,344 Restricted stock awards 27,278 — 31,306 Warrants to purchase common stock 150,000 150,000 150,000 11,348,796 6,470,038 9,980,039 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, On December 22, 2017, the Tax Cuts and Jobs Act (the Act) was enacted into law. ASC 740, Income Taxes, requires companies to recognize the effect of the tax law changes in the period of enactment. Shortly after the enactment of the Act, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. The Company has adjusted its deferred tax assets and liabilities based on the reduction of the U.S. federal corporate tax rate from 34% to 21% and assessed the realizability of its deferred tax assets based on its current understanding of the provisions of the new law. During 2018, the Company finalized its computation of the impact of the Act. See “Note 13. Income Taxes” for a detailed discussion. In June 2018, the Financial Accounting Standard Board issued ASU No. 2018-07, The Company has reviewed other recent accounting pronouncements and concluded they are either not applicable to the business or that no material effect is expected on the consolidated financial statements as a result of future adoption. In August 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, 10-Q. year-to-date |
Fair Value of Financial Assets and Liabilities | The Company determines the fair value of financial assets and liabilities using three levels of inputs as follows: Level 1—Inputs which include quoted prices in active markets for identical assets and liabilities. Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Accounts Receivable | Accounts receivable consists of the following (in thousands): December 31, 2018 2017 Vifor (1) $ 2,058 $ 51,090 (1) As of December 31, 2017, accounts receivable excluded the $10.0 million cash commitment received from Vifor in February 2018 in connection with the agreement that harmonized the geographic commercialization rights underlying the agreements for both avacopan and CCX140 drug candidates (the Avacopan Amendment). See “Note 9. Related-Party Transactions” for a detailed discussion. |
Schedule of Impact of Adoption on Consolidated Statement of Operations and Balance Sheet | The impact of adoption on the Company’s consolidated statement of operations and balance sheet was as follows (in thousands): For the Year Ended December 31, 2018 As Balances Without Effect of Statement of Operations Collaboration and license revenue from related party $ 42,875 $ 28,083 $ 14,792 Loss from operations (40,270 ) (55,062 ) 14,792 Net loss (37,966 ) (52,758 ) 14,792 December 31, 2018 As Balances Without Effect of Balance Sheet Liabilities: Deferred revenue from related party $ 50,461 $ 19,939 $ 30,522 Noncurrent deferred revenuefrom related party 84,100 82,083 2,017 Stockholders’ equity: Accumulated deficit (374,497 ) (341,958 ) (32,539 ) |
Summary of Numerator and Denominator Used in Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table is a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per share: Year Ended December 31, 2018 2017 2016 (in thousands, except per share data) Numerator: Net income (loss) $ (37,966 ) $ 17,859 $ (39,963 ) Denominator: Weighted average shares outstanding - basic 49,814 48,413 46,432 Dilutive stock options, RSUs and RSAs — 1,202 — Weighted average shares outstanding - diluted 49,814 49,615 46,432 Net income (loss) per common share Basic $ (0.76 ) $ 0.37 $ (0.86 ) Diluted $ (0.76 ) $ 0.36 $ (0.86 ) |
Potentially Dilutive Securities Excluded from Calculation of Diluted Net Income (Loss) per Share Due to Anti-Dilutive Effect | The following potentially dilutive securities were excluded from the calculation of diluted net income (loss) per share due to their anti-dilutive effect: Year Ended December 31, 2018 2017 2016 Options to purchase common stock, including purchases from contributions to ESPP 10,731,164 6,320,038 9,358,389 Restricted stock units 440,354 — 440,344 Restricted stock awards 27,278 — 31,306 Warrants to purchase common stock 150,000 150,000 150,000 11,348,796 6,470,038 9,980,039 |
Cash Equivalents and Investme_2
Cash Equivalents and Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Value of Cash Equivalents and Investments | The amortized cost and fair value of cash equivalents and investments at December 31, 2018 and 2017 were as follows (in thousands): December 31, 2018 Amortized Gross Unrealized Fair Cost Gains Losses Value Money market fund $ 22,073 $ — $ — $ 22,073 U.S. treasury securities 23,013 — (13 ) 23,000 Commercial paper 45,683 — — 45,683 Asset-backed securities 29,127 — (34 ) 29,093 Corporate debt securities 55,228 — (151 ) 55,077 Total available-for-sale $ 175,124 $ — $ (198 ) $ 174,926 Classified as: Cash equivalents $ 26,030 Short-term investments 148,896 Long-term investments — Total available-for-sale $ 174,926 December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value Money market fund $ 29,848 $ — $ — $ 29,848 U.S. treasury securities 29,005 — (52 ) 28,953 Commercial paper 46,184 — — 46,184 Corporate debt securities 27,095 — (67 ) 27,028 Total available-for-sale $ 132,132 $ 0 $ (119 ) $ 132,013 Classified as: Cash equivalents $ 36,813 Short-term investments 87,271 Long-term investments 7,929 Total available-for-sale $ 132,013 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Company's Financial Assets | The Company’s financial assets subject to fair value measurements on a recurring basis and the level of inputs used in such measurements were as follows as of December 31, 2018 and 2017 (in thousands): December 31, 2018 Level 1 Level 2 Level 3 Total Description Money market fund $ 22,073 $ — $ — $ 22,073 U.S. treasury securities — 23,000 — 23,000 Commercial paper — 45,683 — 45,683 Asset-backed securities — 29,093 — 29,093 Corporate debt securities — 55,077 — 55,077 Total assets $ 22,073 $ 152,853 $ — $ 174,926 December 31, 2017 Level 1 Level 2 Level 3 Total Description Money market fund $ 29,848 $ — $ — $ 29,848 U.S. treasury securities — 28,953 — 28,953 Commercial paper — 46,184 — 46,184 Corporate debt securities — 27,028 — 27,028 Total assets $ 29,848 $ 102,165 $ — $ 132,013 |
Summary of Carrying Amount And Estimated Fair Value of Financial Instruments | The carrying amount and estimated fair value of financial instruments not recorded at fair value at December 31, 2018 and 2017 were as follows (in thousands): December 31, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Long-term debt, net (1) $ 19,689 $ 19,847 $ 4,676 $ 4,812 (1) Carrying amounts of long-term debt were net of unamortized debt discounts of $311,000 and $324,000 as of December 31, 2018 and 2017, respectively. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following (in thousands): December 31, 2018 2017 Lab equipment $ 6,263 $ 5,897 Computer equipment and software 1,809 1,688 Furniture and fixtures 554 551 Tenant improvements 1,030 893 9,656 9,029 Less: accumulated depreciation (8,120 ) (7,819 ) $ 1,536 $ 1,210 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of the following (in thousands): December 31, 2018 2017 Research and development related $ 8,466 $ 4,962 Compensation related 2,767 2,345 Consulting and professional services 811 1,012 Other 925 256 $ 12,969 $ 8,575 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Future Minimum Principal Payments Related to the Credit Facility | Future minimum principal payments, which exclude the end of term charge, related to the Credit Facility as of December 31, 2018 are as follows (in thousands): Amounts Year ending December 31: 2019 $ — 2020 — 2021 6,363 2022 13,637 Total minimum payments 20,000 Less: amount representing debt discount (311 ) Present value of remaining debt payments 19,689 Less: current portion — Noncurrent portion $ 19,689 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Noncancelable Operating Leases | Future minimum lease payments under all noncancelable operating leases as of December 31, 2018, are as follows (in thousands): Amounts Year ending December 31: 2019 $ 1,316 2020 500 Total minimum lease payments $ 1,816 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Contract Assets and Liabilities and Changes in Contract Balances | The following table presents the contract assets and liabilities for all of the Company’s revenue contracts as of the following dates (in thousands): December 31, 2018 December 31, 2017 Contract asset: Accounts receivable $ 2,058 $ 51,090 Contract liability: Deferred revenue (1) (134,561 ) (95,159 ) (1) Upon adoption of ASC 606 under the modified retrospective transition method, the Company recognized the cumulative effect of initially applying the new revenue standard of $47.3 million as an adjustment to the opening balance of accumulated deficit and an increase in deferred revenue. See “Note 2. Summary of Significant Accounting Policies – Revenue Recognition” for a detailed discussion. During the year ended December 31, 2018, the Company recognized the following revenue as a result of changes in the contract asset and the contract liability balances (in thousands): Year Ended Revenue recognized in the period from: Amount included in contract liability at the beginning of the period $ 39,815 Performance obligations satisfied (or partially satisfied) in previous periods $ (3,357 ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Stock Activity | The activity for restricted stock is summarized as follows: Shares Weighted-Average Balance at December 31, 2017 508,444 $ 5.79 Granted 228,860 11.32 Vested (269,672 ) 5.83 Canceled — — Unvested at December 31, 2018 467,632 $ 8.47 |
Summary of Stock Option Activity under its Stock Plans | The following table summarizes stock option activity and related information under the Company’s Stock Plans: Available Shares Weighted Weighted Aggregate Balance at December 31, 2017 2,028,880 10,203,571 $ 7.68 Shares authorized 1,940,000 — Granted (1) (2,565,372 ) 2,336,512 9.97 Exercised (2) 97,525 (1,612,400 ) 6.26 Forfeited and expired 207,483 (207,483 ) 7.92 Outstanding at December 31, 2018 1,708,516 10,720,200 $ 8.39 6.34 $ 33,230,822 Vested and expected to vest, net of estimated forfeiture at December 31, 2018 10,462,992 $ 8.38 6.27 $ 32,631,253 Exercisable at December 31, 2018 6,977,786 $ 8.40 5.05 $ 23,063,000 (1) The difference between shares granted in the number of shares available for grant and outstanding options represents the RSUs and RSAs granted for the period. (2) Shares presented as available for grant represents shares repurchased for tax withholding upon vesting of RSUs. |
Stock Options Outstanding | As of December 31, 2018, stock options outstanding were as follows: Options Outstanding Exercise Price Range Shares Weighted-Average $2.10 - $3.57 1,258,034 7.18 $4.50 - $6.08 1,073,633 4.71 $6.19 - $6.30 1,092,556 5.78 $6.50 - $6.60 77,225 8.31 $6.62 1,099,056 8.11 $6.90 - $7.28 1,083,118 5.17 $7.42 - $8.19 1,272,523 6.41 $8.22 - $10.82 536,534 6.09 $10.86 1,119,200 9.18 $10.91 - $15.90 2,108,321 5.05 10,720,200 6.34 |
Employee Stock-based Compensation Expense Recognized | Total employee stock-based compensation expense recognized associated with restricted stock, stock options, and the ESPP, was as follows (in thousands): Year Ended December 31, 2018 2017 2016 Research and development $ 3,632 $ 3,154 $ 3,245 General and administrative 6,339 4,965 4,977 Total $ 9,971 $ 8,119 $ 8,222 |
Assumptions for Fair Values of Employee Stock Options Granted under Company's Stock Plans | The fair values of the employee stock options granted under the Company’s Stock Plans and the option component of the shares purchased under the ESPP during 2018, 2017 and 2016 were estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions: Employee Stock Options Employee Stock 2018 2017 2016 2018 2017 2016 Dividend yield 0 % 0 % 0 % 0 % 0 % 0 % Volatility 67.8 % 68.3 % 65.6 % 73.8 % 52.9 % 99.7 % Weighted-average expected life (in years) 6.0 6.0 6.0 0.5 0.5 0.5 Risk-free interest rate 2.66 % 2.04 % 1.58 % 2.33 % 1.22 % 0.47 % Weighted-average grant date fair value $ 6.22 $ 4.30 $ 2.43 $ 3.73 $ 2.16 $ 2.29 |
Stock-based Compensation Expense in Connection with Grants of Stock Options to Nonemployees | In connection with grants of stock options to nonemployees, the Company recorded stock-based compensation expense as follows (in thousands): Year Ended December 31, 2018 2017 2016 Research and development $ 862 $ 629 $ 313 General and administrative — — — Total $ 862 $ 629 $ 313 |
Assumptions for Fair Values of Stock Options Granted are Calculated Related to Stock Options Granted to Nonemployees | The estimated fair values of the stock options granted are calculated at each reporting date using the Black-Scholes option-pricing model, with the following assumptions: Year Ended December 31, 2018 2017 2016 Dividend yield 0 % 0 % 0 % Volatility 67-68 % 69-70 % 65-68 % Weighted-average expected life (in years) 5.7-9.9 5.5-10.0 6.1-9.9 Risk-free interest rate 2.7-3.0 % 1.9-2.5 % 1.3-2.4 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax (Benefit) Expense | The Company’s loss before tax is only attributable to U.S. operations. The components of the income tax (benefit) expense are as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current (benefit from) provision for income taxes: Federal $ — $ — $ — State — — — Total current (benefit from) provision for income taxes — — — Deferred (benefit from) provision for income taxes: — — — Federal — — — State — — — Total deferred tax (benefit from) provision for income taxes — — — (Benefit from) provision for income taxes $ — $ — $ — |
Reconciliation of the Federal Statutory Income Tax Rate to the Company's Effective Income Tax Rate | A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2018 2017 2016 Federal statutory income tax rate (21.0 %) 34.0 % (34.0 %) State income taxes, net of federal benefit — — (5.8 ) Permanent items 1.6 5.5 2.1 Excess tax benefit for stock-based compensation (2.8 ) (2.0 ) — Research and development credits (3.5 ) (7.2 ) (2.8 ) Change in valuation allowance 24.5 (224.1 ) 38.1 Change in tax rate — 193.8 — Other 1.2 — 2.4 (Benefit from) provisions for income taxes — % — % — % |
Tax Effects of Temporary Differences and Carryforwards that Give Rise to Significant Portions of the Deferred Tax Assets | The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets consist of the following (in thousands): December 31, 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 62,405 $ 55,569 Research and development credit 11,794 10,470 Amortization of deferred stock compensation - non-qualified 6,569 6,385 Reserves and accruals 1,140 785 Deferred revenue 20,991 10,297 Depreciation and amortization — 231 Gross deferred tax assets 102,899 83,737 Less: valuation allowance (102,891 ) (83,737 ) Total deferred tax assets 8 — Deferred tax liabilities: Depreciation and amortization (8 ) — Total deferred tax liabilities (8 ) — Net deferred tax assets $ — $ — |
Reconciliation of the Company's Unrecognized Tax Benefits | A reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2018, 2017 and 2016, is as follows (in thousands): Unrecognized Balance as of December 31, 2016 $ 5,430 Additions for current tax positions 603 Additions for prior tax positions 2,753 Balance as of December 31, 2017 $ 8,786 Additions for current tax positions 928 Balance as of December 31, 2018 $ 9,714 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Results from Operations | Selected quarterly results from operations for the years ended December 31, 2018 and 2017 are as follows (in thousands except per share amounts): 2018 Quarter Ended March 31 June 30 September 30 December 31 Revenue $ 9,546 $ 15,022 $ 8,975 $ 9,332 Net loss $ (9,417 ) $ (6,874 ) $ (10,890 ) $ (10,785 ) Basic and diluted net loss per share $ (0.19 ) $ (0.14 ) $ (0.22 ) $ (0.21 ) 2017 Quarter Ended March 31 June 30 September 30 December 31 Revenue $ 8,230 $ 8,937 $ 9,029 $ 56,301 Net income (loss) $ (5,996 ) $ (9,240 ) $ (6,560 ) $ 39,655 Basic net income (loss) per share $ (0.12 ) $ (0.19 ) $ (0.13 ) $ 0.81 Diluted net income (loss) per share $ (0.12 ) $ (0.19 ) $ (0.13 ) $ 0.80 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segment | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Significant Accounting Policies [Line Items] | ||||
Percentage of contract revenue as total revenue | 100.00% | 100.00% | 96.00% | |
Impairment loss on long lived assets | $ 0 | |||
Royalty revenue | 0 | $ 0 | ||
Cumulative effect to opening balance of accumulated deficit on adoption of accounting standard | (47,331,000) | |||
Reclassification adjustment from accumulated other comprehensive income for unrealized gain (loss) realized upon the sale of available-for-sale securities | $ 0 | $ 0 | $ 0 | |
U.S. federal corporate tax rate | 21.00% | 34.00% | 34.00% | |
Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of assets | 5 years | |||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of assets | 7 years | |||
Accounting Standards Update 2014-09 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cumulative effect to opening balance of accumulated deficit on adoption of accounting standard | $ 47,300,000 | |||
Increase in deferred revenue | $ 47,300,000 | |||
Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Increase in the right of use asset | $ 1,300,000 | |||
Decrease of deferred rent | 400,000 | |||
Increase in lease liabilities | $ 1,700,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Vifor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 2,058 | $ 51,090 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Accounts Receivable (Parenthetical) (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Vifor [Member] | Avacopan and CCX140 Agreement [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cash commitment | $ 10 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Impact of Adoption on Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Collaboration and license revenue from related party | $ 42,875 | $ 82,497 | $ 11,435 | ||||||||
Loss from operations | (40,270) | 16,493 | (40,720) | ||||||||
Net income (loss) | $ (10,785) | $ (10,890) | $ (6,874) | $ (9,417) | $ 39,655 | $ (6,560) | $ (9,240) | $ (5,996) | (37,966) | $ 17,859 | $ (39,963) |
Accounting Standards Update 2014-09 [Member] | Balance without adoption of ASC606 [Member] | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Collaboration and license revenue from related party | 28,083 | ||||||||||
Loss from operations | (55,062) | ||||||||||
Net income (loss) | (52,758) | ||||||||||
Accounting Standards Update 2014-09 [Member] | Effect of change [Member] | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Collaboration and license revenue from related party | 14,792 | ||||||||||
Loss from operations | 14,792 | ||||||||||
Net income (loss) | $ 14,792 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Impact of Adoption on Consolidated Statement of Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Liabilities: | ||
Deferred revenue from related party | $ 50,461 | $ 22,962 |
Noncurrent deferred revenue from related party | 84,100 | 72,197 |
Stockholders' equity: | ||
Accumulated deficit | (374,497) | $ (289,200) |
Accounting Standards Update 2014-09 [Member] | Balance without adoption of ASC606 [Member] | ||
Liabilities: | ||
Deferred revenue from related party | 19,939 | |
Noncurrent deferred revenue from related party | 82,083 | |
Stockholders' equity: | ||
Accumulated deficit | (341,958) | |
Accounting Standards Update 2014-09 [Member] | Effect of change [Member] | ||
Liabilities: | ||
Deferred revenue from related party | 30,522 | |
Noncurrent deferred revenue from related party | 2,017 | |
Stockholders' equity: | ||
Accumulated deficit | $ (32,539) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Numerator and Denominator Used in Calculation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income (loss) | $ (10,785) | $ (10,890) | $ (6,874) | $ (9,417) | $ 39,655 | $ (6,560) | $ (9,240) | $ (5,996) | $ (37,966) | $ 17,859 | $ (39,963) |
Denominator: | |||||||||||
Weighted average shares outstanding - basic | 49,814 | 48,413 | 46,432 | ||||||||
Dilutive stock options, RSUs and RSAs | 1,202 | ||||||||||
Weighted average shares outstanding - diluted | 49,814 | 49,615 | 46,432 | ||||||||
Basic | $ 0.81 | $ (0.13) | $ (0.19) | $ (0.12) | $ (0.76) | $ 0.37 | $ (0.86) | ||||
Diluted | $ 0.80 | $ (0.13) | $ (0.19) | $ (0.12) | $ (0.76) | $ 0.36 | $ (0.86) |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Potentially Dilutive Securities Excluded from Calculation of Diluted Net Income (Loss) per Share Due to Anti-Dilutive Effect (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 11,348,796 | 6,470,038 | 9,980,039 |
Options to Purchase Common Stock, Including Purchases from Contributions to ESPP [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 10,731,164 | 6,320,038 | 9,358,389 |
Unvested Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 440,354 | 440,344 | |
Restricted Stock Awards [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 27,278 | 31,306 | |
Warrants to Purchase Common Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 150,000 | 150,000 | 150,000 |
Cash Equivalents and Investme_3
Cash Equivalents and Investments - Amortized Cost and Fair Value of Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 175,124 | $ 132,132 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (198) | (119) |
Available-for-sale Securities | 174,926 | 132,013 |
Money Market Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 22,073 | 29,848 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 22,073 | 29,848 |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 23,013 | 29,005 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (13) | (52) |
Available-for-sale Securities | 23,000 | 28,953 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 45,683 | 46,184 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 45,683 | 46,184 |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 29,127 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (34) | |
Available-for-sale Securities | 29,093 | |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 55,228 | 27,095 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (151) | (67) |
Available-for-sale Securities | $ 55,077 | $ 27,028 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments - Amortized Cost and Fair Value of Cash Equivalents and Investments 2 (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Abstract] | ||
Cash equivalents | $ 26,030 | $ 36,813 |
Short-term investments | 148,896 | 87,271 |
Long-term investments | 7,929 | |
Total available-for-sale securities | $ 174,926 | $ 132,013 |
Cash Equivalents and Investme_5
Cash Equivalents and Investments - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018USD ($)Investment | Dec. 31, 2017USD ($) | |
Cash and Cash Equivalents [Abstract] | ||
Maturity period available-for-sale securities | Less than two years | |
Significant realized gains or losses on available-for-sale securities | $ 0 | |
Cash | $ 2,100,000 | $ 3,200,000 |
Number of available-for-sale securities in a continuous unrealized loss position for more than 12 months | Investment | 0 | |
Number of available-for-sale securities in a continuous unrealized loss position for more than 12 months | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements of Company's Financial Assets (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 174,926 | $ 132,013 |
Money Market Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 22,073 | 29,848 |
U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 23,000 | 28,953 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 45,683 | 46,184 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 29,093 | |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 55,077 | 27,028 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 22,073 | 29,848 |
Level 1 [Member] | Money Market Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 22,073 | 29,848 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 152,853 | 102,165 |
Level 2 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 23,000 | 28,953 |
Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 45,683 | 46,184 |
Level 2 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 29,093 | |
Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 55,077 | $ 27,028 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Dec. 31, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Transfers from Level 1 to Level 2 financial assets | $ 0 |
Transfers from Level 2 to Level 1 financial assets | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amount and Estimated Fair Value of Financial Instruments (Detail) - Term Loan [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Amount | $ 19,689 | $ 4,676 |
Estimated Fair Value | $ 19,847 | $ 4,812 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Carrying Amount and Estimated Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Term Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unamortized debt discounts | $ 311 | $ 324 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 9,656 | $ 9,029 |
Less: accumulated depreciation | (8,120) | (7,819) |
Net Property and equipment | 1,536 | 1,210 |
Lab Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 6,263 | 5,897 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,809 | 1,688 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 554 | 551 |
Tenant Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,030 | $ 893 |
Accrued Liabilities - Accrued L
Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Research and development related | $ 8,466 | $ 4,962 |
Compensation related | 2,767 | 2,345 |
Consulting and professional services | 811 | 1,012 |
Other | 925 | 256 |
Accrued liabilities | $ 12,969 | $ 8,575 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) | Dec. 28, 2017USD ($)Tranche | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||
Line of credit facility, advance amount | $ 20,000,000 | |||
Right to participate in equity offering | $ 7,000,000 | |||
Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||
Number of tranches | Tranche | 3 | |||
Line of credit facility, current borrowing capacity | $ 25,000,000 | |||
Line of credit facility, interest rate | 8.05% | 8.80% | ||
Line of credit facility, interest rate description | Advances under the Credit Facility will bear an interest rate equal to the greater of either (i) 8.05% plus the prime rate as reported from time to time in The Wall Street Journal minus 4.75%, and (ii) 8.05%. At December 31, 2018, interest rate on the outstanding borrowings under the Credit Facility was 8.80%. For advances under the first and second tranches, the Company will make interest-only payments through July 1, 2021, and will then repay the principal balance and interest on the advances in equal monthly installments after the interest-only period and continuing through December 1, 2022. For advances made under the third tranche, the Company will make interest-only payments for the first 30 months, and will then repay the principal balance and interest on the advances in equal monthly installments after the interest-only period with each advance repaid 48 months after it is drawn. | |||
Line of credit facility, prepayment description | The Company may prepay advances under the Credit Facility, in whole or in part, at any time, subject to a prepayment charge equal to: (a) 1.5% of the amount so prepaid, if such prepayment occurs during the second year following the Closing Date; and (b) 1.0% of the amount so prepaid, if such prepayment occurs after the second year following the Closing Date. The Credit Facility is secured by substantially all of the Company’s assets, excluding intellectual property. | |||
Loan commitment charge, percentage | 1.00% | |||
Borrowings outstanding | $ 19,689,000 | $ 4,676,000 | ||
Discount on borrowings | $ 311,000 | $ 324,000 | ||
Term Loan [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate proceeds to be received from equity offering | $ 20,000,000 | |||
Loan commitment charge | 162,500 | |||
Hercules Capital Inc [Member] | Term Loan [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Right to participate in equity offering | 2,000,000 | |||
Tranche One [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
End of term charge amount for loan | $ 900,000 | |||
Tranche Two And Tranche Three [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
End of term charge for loan | The charge is 6.25% of the aggregate amount of the advances applicable to such tranche. | |||
End of term charge for loan, percentage | 6.25% | |||
Second Year [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, prepayment interest rate | 1.50% | |||
After Second Year [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, prepayment interest rate | 1.00% |
Long-term Debt - Schedule of Fu
Long-term Debt - Schedule of Future Minimum Principal Payments Related to the Credit Facility (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt, Non current portion | $ 19,689 | $ 4,676 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
2019 | 0 | |
2020 | 0 | |
2021 | 6,363 | |
2022 | 13,637 | |
Total minimum payments | 20,000 | |
Less: amount representing debt discount | (311) | (324) |
Long-term debt, net | 19,689 | $ 4,676 |
Less: current portion | 0 | |
Long-term debt, Non current portion | $ 19,689 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leased Assets [Line Items] | |||
Discounted lease | The Company received a discounted lease rate during the first year of the agreement. | ||
Total rental expenses | $ 1.4 | $ 1.3 | $ 1.2 |
First Amendment August 2012 [Member] | |||
Operating Leased Assets [Line Items] | |||
Expiration date | 2019-04 | ||
Second Amendment April 2017 [Member] | |||
Operating Leased Assets [Line Items] | |||
Expiration date | 2020-04 |
Commitments - Future Minimum Le
Commitments - Future Minimum Lease Payments under Noncancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 1,316 |
2020 | 500 |
Total minimum lease payments | $ 1,816 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Oct. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | May 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 29, 2012 |
Related Party Transaction [Line Items] | ||||||||||
Common stock, shares outstanding | 48,837,060 | 50,652,238 | 48,837,060 | |||||||
Accounts payable balance | $ 1,400,000 | $ 966,000 | $ 1,400,000 | |||||||
Research and development | 62,736,000 | 49,495,000 | $ 37,945,000 | |||||||
Collaboration and license revenue from related party | $ 42,875,000 | 82,497,000 | 11,435,000 | |||||||
Bio-Techne Corporation [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Warrant contractual term | 10 years | |||||||||
Purchase of warrant common stock | 150,000 | |||||||||
Warrants to purchase common stock, exercise price | $ 20 | |||||||||
Warrant common stock exercise price rate | 200.00% | |||||||||
Common stock, shares outstanding | 6,385,056 | |||||||||
Accounts payable balance | 6,000 | $ 0 | 6,000 | |||||||
Research and development | 70,000 | 96,000 | 114,000 | |||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Performance obligations satisfied (or partially satisfied) in previous periods | (3,357) | |||||||||
Balance without adoption of ASC606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Collaboration and license revenue from related party | $ 28,083,000 | |||||||||
Vifor [Member] | Glaxo Group Limited [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Purchase of Common stock, shares | 7,343,492 | 10,676,825 | ||||||||
Avacopan Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non refundable upfront payments received | $ 85,000,000 | $ 20,000,000 | ||||||||
Non refundable upfront payment received in cash | 60,000,000 | |||||||||
Non refundable upfront payment received in equity investment | $ 25,000,000 | |||||||||
Share price of common stock in equity investment | $ 7.50 | |||||||||
Non refundable upfront payment received in equity investment, shares | 3,333,333 | |||||||||
Performance obligations satisfied (or partially satisfied) in previous periods | $ 50,000,000 | |||||||||
Transaction price | 153,000,000 | |||||||||
Upfront payments received | $ 78,000,000 | |||||||||
Non refundable upfront payments allocated for issuance of common stock | $ 7,000,000 | |||||||||
Issuance of common stock, per share value | $ 2.10 | |||||||||
Collaboration and license revenue from related party | 37,100,000 | |||||||||
Avacopan Agreement [Member] | Balance without adoption of ASC606 [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Collaboration and license revenue from related party | 72,500,000 | $ 11,400,000 | ||||||||
Avacopan Amendment [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Upfront cash commitment | $ 20,000,000 | |||||||||
Avacopan Letter Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non refundable payment for expanded rights | $ 5,000,000 | $ 5,000,000 | ||||||||
CCX140 Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Transaction price | 113,500,000 | |||||||||
Upfront payments received | 50,000,000 | |||||||||
Collaboration and license revenue from related party | 5,800,000 | |||||||||
Non refundable upfront commitment | 50,000,000 | |||||||||
CCX140 Agreement [Member] | Balance without adoption of ASC606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Upfront payments received | $ 50,000,000 | |||||||||
Collaboration and license revenue from related party | $ 10,000,000 | |||||||||
CCX140 Agreement [Member] | Vifor [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Development funding | 58,500,000 | |||||||||
CCX140 Letter Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non refundable payment for expanded rights | $ 5,000,000 | |||||||||
CCX140 Amendment [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non refundable upfront commitment | 11,500,000 | |||||||||
Maximum [Member] | Avacopan Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Potential milestone payments receivable | 460,000,000 | |||||||||
Maximum [Member] | CCX140 Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Potential milestone payments receivable | $ 625,000,000 |
Related-Party Transactions - Sc
Related-Party Transactions - Schedule of Contract Assets and Liabilities and Changes in Contract Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Receivable Net [Member] | ||
Contract asset: | ||
Contract asset | $ 2,058 | $ 51,090 |
Deferred Revenue [Member] | ||
Contract liability: | ||
Contract liability | $ (134,561) | $ (95,159) |
Related-Party Transactions - _2
Related-Party Transactions - Schedule of Contract Assets and Liabilities and Changes in Contract Balances (Parenthetical) (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Accounting Standards Update 2014-09 [Member] | Accumulated Deficit [Member] | |
Contract with Customer Asset and Liability [Line Items] | |
Cumulative effect of adoption to opening balance of accumulated deficit | $ 47.3 |
Related-Party Transactions - _3
Related-Party Transactions - Schedule of Contract Assets and Liabilities Changes (Detail) - Accounting Standards Update 2014-09 [Member] | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Contract with Customer Asset and Liability [Line Items] | |
Amount included in contract liability at the beginning of the period | $ 39,815 |
Performance obligations satisfied (or partially satisfied) in previous periods | $ (3,357) |
Government Grant - Additional I
Government Grant - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Government Grants [Abstract] | |
Orphan products development grant | $ 500,000 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 29, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Company's incremental common stock shares reserved for issuance | 1,940,000 | ||||
Total intrinsic value of options exercised | $ 9.8 | $ 1.3 | $ 0.7 | ||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expenses | $ 15 | ||||
Unrecognized compensation expense, weighted-average period | 2 years 6 months | ||||
Restricted Stocks [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted Average Grant-Date Fair Value, Granted | $ 11.32 | $ 6.72 | $ 4.48 | ||
Total fair value of restricted stock vested | $ 2.4 | $ 1.7 | $ 0.2 | ||
Unrecognized compensation expenses | $ 2 | ||||
Unrecognized compensation expense, weighted-average period | 1 year 3 months 18 days | ||||
2012 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for future issuance | 13,440,000 | ||||
Shares available for issuance under plan annual increase rate | 4.00% | ||||
Company's incremental common stock shares reserved for issuance | 2,000,000 | ||||
2012 Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for issuance under Plan annual increase | 2,000,000 | ||||
Stock Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum vesting term | 10 years | ||||
Outstanding options vest | 4 years | ||||
Stock Plans [Member] | First Anniversary [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total grant vesting | 25.00% | ||||
Stock Plans [Member] | Monthly After First Anniversary [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total grant vesting | 2.77778% | ||||
Stock Plans [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercise prices date of grant fair value rate | 100.00% | ||||
Nonstatutory options granted exercise price | 85.00% |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Activity (Detail) - Restricted Stocks [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Unvested, Beginning Balance | 508,444 | ||
Shares, Granted | 228,860 | ||
Shares, Vested | (269,672) | ||
Shares, Canceled | 0 | ||
Shares, Unvested, Ending Balance | 467,632 | 508,444 | |
Weighted Average Grant-Date Fair Value, Unvested, Beginning Balance | $ 5.79 | ||
Weighted Average Grant-Date Fair Value, Granted | 11.32 | $ 6.72 | $ 4.48 |
Weighted Average Grant-Date Fair Value, Vested | 5.83 | ||
Weighted Average Grant-Date Fair Value, Canceled | 0 | ||
Weighted Average Grant-Date Fair Value, Unvested, Ending Balance | $ 8.47 | $ 5.79 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity under its Stock Plans (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares Available for Grant, Outstanding Beginning Balance | 2,028,880 |
Available for Grant, Shares authorized | 1,940,000 |
Shares Available for Grant, Granted | (2,565,372) |
Shares Available for Grant, Exercised | 97,525 |
Shares Available for Grant, Forfeited and expired | 207,483 |
Shares Available for Grant, Outstanding Ending Balance | 1,708,516 |
Shares, Options Outstanding, Beginning Balance | 10,203,571 |
Shares, Options Outstanding, authorized | 0 |
Shares, Options Outstanding, Granted | 2,336,512 |
Shares, Options Outstanding, Exercised | (1,612,400) |
Shares, Options Outstanding, Forfeited and expired | (207,483) |
Shares, Options Outstanding, Ending Balance | 10,720,200 |
Shares, Vested and expected to vest, net of estimated forfeiture at December 31, 2018 | 10,462,992 |
Shares, Exercisable at December 31, 2018 | 6,977,786 |
Weighted Average Exercise Price, Options Outstanding, Beginning Balance | $ / shares | $ 7.68 |
Weighted Average Exercise Price, Options Outstanding, Shares authorized | $ / shares | 0 |
Weighted Average Exercise Price, Options Outstanding, Granted | $ / shares | 9.97 |
Weighted Average Exercise Price, Options Outstanding, Exercised | $ / shares | 6.26 |
Weighted Average Exercise Price, Options Outstanding, Forfeited and expired | $ / shares | 7.92 |
Weighted Average Exercise Price, Options Outstanding, Ending Balance | $ / shares | 8.39 |
Weighted Average Exercise Price, Vested and expected to vest, net of estimated forfeiture at December 31, 2018 | $ / shares | 8.38 |
Weighted Average Exercise Price, Exercisable at December 31, 2018 | $ / shares | $ 8.40 |
Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 4 months 2 days |
Weighted Average Remaining Contractual Term, Vested and expected to vest, net of estimated forfeiture at December 31, 2018 | 6 years 3 months 7 days |
Weighted Average Remaining Contractual Term, Exercisable at December 31, 2018 | 5 years 18 days |
Aggregate Intrinsic Value, Outstanding, Ending Balance | $ | $ 33,230,822 |
Aggregate Intrinsic Value, Vested and expected to vest, net of estimated forfeiture at December 31, 2018 | $ | 32,631,253 |
Aggregate Intrinsic Value, Exercisable at December 31, 2018 | $ | $ 23,063,000 |
Stockholders' Equity - Stock _2
Stockholders' Equity - Stock Options Outstanding (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Weighted Average Contractual Term, Outstanding | 6 years 4 months 2 days | |
Options Outstanding and Exercisable, Shares | 10,720,200 | 10,203,571 |
Range 1 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower | $ 2.10 | |
Exercise Price Range, Upper | $ 3.57 | |
Weighted Average Contractual Term, Outstanding | 7 years 2 months 4 days | |
Options Outstanding and Exercisable, Shares | 1,258,034 | |
Range 2 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower | $ 4.50 | |
Exercise Price Range, Upper | $ 6.08 | |
Weighted Average Contractual Term, Outstanding | 4 years 8 months 15 days | |
Options Outstanding and Exercisable, Shares | 1,073,633 | |
Range 3 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower | $ 6.19 | |
Exercise Price Range, Upper | $ 6.30 | |
Weighted Average Contractual Term, Outstanding | 5 years 9 months 10 days | |
Options Outstanding and Exercisable, Shares | 1,092,556 | |
Range 4 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower | $ 6.50 | |
Exercise Price Range, Upper | $ 6.60 | |
Weighted Average Contractual Term, Outstanding | 8 years 3 months 21 days | |
Options Outstanding and Exercisable, Shares | 77,225 | |
Range 5 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower | $ 6.62 | |
Exercise Price Range, Upper | $ 6.62 | |
Weighted Average Contractual Term, Outstanding | 8 years 1 month 9 days | |
Options Outstanding and Exercisable, Shares | 1,099,056 | |
Range 6 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower | $ 6.90 | |
Exercise Price Range, Upper | $ 7.28 | |
Weighted Average Contractual Term, Outstanding | 5 years 2 months 1 day | |
Options Outstanding and Exercisable, Shares | 1,083,118 | |
Range 7 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower | $ 7.42 | |
Exercise Price Range, Upper | $ 8.19 | |
Weighted Average Contractual Term, Outstanding | 6 years 4 months 28 days | |
Options Outstanding and Exercisable, Shares | 1,272,523 | |
Range 8 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower | $ 8.22 | |
Exercise Price Range, Upper | $ 10.82 | |
Weighted Average Contractual Term, Outstanding | 6 years 1 month 2 days | |
Options Outstanding and Exercisable, Shares | 536,534 | |
Range 9 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower | $ 10.86 | |
Exercise Price Range, Upper | $ 10.86 | |
Weighted Average Contractual Term, Outstanding | 9 years 2 months 4 days | |
Options Outstanding and Exercisable, Shares | 1,119,200 | |
Range 10 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise Price Range, Lower | $ 10.91 | |
Exercise Price Range, Upper | $ 15.90 | |
Weighted Average Contractual Term, Outstanding | 5 years 18 days | |
Options Outstanding and Exercisable, Shares | 2,108,321 |
Stockholders' Equity - Employee
Stockholders' Equity - Employee Stock Purchase Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 29, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for issuance under Plan | 1,708,516 | 2,028,880 | |||
Aggregate limit of common stock | 200,000,000 | 200,000,000 | |||
Company's incremental common stock shares reserved for issuance | 1,940,000 | ||||
Stock options grant shares approved for issuance-Non Employee | 28,534 | 239,266 | 15,000 | ||
Common stock, par value | $ 0.001 | $ 0.001 | |||
Equity Distribution Agreement [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity distribution agreement offering price | $ 75 | ||||
ESPP [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for issuance under Plan | 394,551 | ||||
Common stock initially reserved for issuance | 300,000 | ||||
Shares available for issuance under plan annual increase rate | 1.00% | ||||
Company's incremental common stock shares reserved for issuance | 300,000 | ||||
Common stock issued to employees | 88,784 | 93,221 | 157,893 | ||
Unrecognized compensation expenses | $ 0.1 | ||||
Unrecognized compensation expense, weighted-average period | 4 months 24 days | ||||
ESPP [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for issuance under Plan | 1,100,000 | ||||
Aggregate limit of common stock | 3,000,000 |
Stockholders' Equity - Employ_2
Stockholders' Equity - Employee Stock- based Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total | $ 9,971 | $ 8,119 | $ 8,222 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total | 3,632 | 3,154 | 3,245 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total | $ 6,339 | $ 4,965 | $ 4,977 |
Stockholders' Equity - Assumpti
Stockholders' Equity - Assumptions for Fair Values of Employee Stock Options Granted under Company's Stock Plans (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 67.80% | 68.30% | 65.60% |
Weighted-average expected life (in years) | 6 years | 6 years | 6 years |
Risk-free interest rate | 2.66% | 2.04% | 1.58% |
Weighted average grant date fair value | $ 6.22 | $ 4.30 | $ 2.43 |
ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Volatility | 73.80% | 52.90% | 99.70% |
Weighted-average expected life (in years) | 6 months | 6 months | 6 months |
Risk-free interest rate | 2.33% | 1.22% | 0.47% |
Weighted average grant date fair value | $ 3.73 | $ 2.16 | $ 2.29 |
Stockholders' Equity - Stock-ba
Stockholders' Equity - Stock-based Compensation Expense in Connection with Grants of Stock Options to Nonemployees (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense associated with stock options granted to nonemployees | $ 862 | $ 629 | $ 313 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense associated with stock options granted to nonemployees | $ 862 | $ 629 | $ 313 |
Stockholders' Equity - Assump_2
Stockholders' Equity - Assumptions for Fair Values of Stock Options Granted are Calculated Related to Stock Options Granted to Nonemployees (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 67.00% | 69.00% | 65.00% |
Weighted-average expected life (in years) | 5 years 8 months 12 days | 5 years 6 months | 6 years 1 month 6 days |
Risk-free interest rate | 2.70% | 1.90% | 1.30% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 68.00% | 70.00% | 68.00% |
Weighted-average expected life (in years) | 9 years 10 months 24 days | 10 years | 9 years 10 months 24 days |
Risk-free interest rate | 3.00% | 2.50% | 2.40% |
401 (k) Plan - Additional Infor
401 (k) Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |||
Matching contributions by employer | $ 0 | $ 0 | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax (Benefit) Expense (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current (benefit from) provision for income taxes: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 0 | 0 | 0 |
Total current (benefit from) provision for income taxes | 0 | 0 | 0 |
Deferred (benefit from) provision for income taxes: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Total deferred tax (benefit from) provision for income taxes | 0 | 0 | 0 |
(Benefit from) provision for income taxes | $ 0 | $ 0 | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Federal Statutory Income Tax Rate to the Company's Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | (21.00%) | (34.00%) | (34.00%) |
State income taxes, net of federal benefit | (5.80%) | ||
Permanent items | 1.60% | 5.50% | 2.10% |
Excess tax benefit for stock-based compensation | (2.80%) | (2.00%) | |
Research and development credits | (3.50%) | (7.20%) | (2.80%) |
Change in valuation allowance | 24.50% | (224.10%) | 38.10% |
Change in tax rate | 193.80% | ||
Other | 1.20% | 2.40% | |
(Benefit from) provisions for income taxes | 0.00% | 0.00% | 0.00% |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences and Carryforwards that Give Rise to Significant Portions of the Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 62,405 | $ 55,569 |
Research and development credit | 11,794 | 10,470 |
Amortization of deferred stock compensation - non-qualified | 6,569 | 6,385 |
Reserves and accruals | 1,140 | 785 |
Deferred revenue | 20,991 | 10,297 |
Depreciation and amortization | 231 | |
Gross deferred tax assets | 102,899 | 83,737 |
Less: valuation allowance | (102,891) | (83,737) |
Total deferred tax assets | 8 | |
Deferred tax liabilities: | ||
Depreciation and amortization | (8) | |
Total deferred tax liabilities | (8) | |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Change in tax rate deferred tax assets valuation allowance | $ 36,000,000 | ||
Increase (decrease) in valuation allowance | $ 19,200,000 | (40,000,000) | |
Federal operating loss carryforwards net | 225,400,000 | ||
State operating loss carryforwards net | $ 246,800,000 | ||
Federal operating loss carryforwards expiry | 2031 | ||
State operating loss carryforwards expiry | 2019 | ||
Research and development credit | $ 11,794,000 | 10,470,000 | |
Federal research and development credits will begin to expire | 2019 | ||
Unrecognized tax benefits | $ 9,714,000 | 8,786,000 | $ 5,430,000 |
Unrecognized tax benefits that would affect the Company's effective tax rate | 0 | $ 0 | |
Income tax penalties and interest expense, unrecognized tax benefits | 0 | ||
Federal [Member] | |||
Income Taxes [Line Items] | |||
Research and development credit | 12,700,000 | ||
State and Local [Member] | |||
Income Taxes [Line Items] | |||
Research and development credit | $ 6,900,000 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of the Company's Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Beginning Balance | $ 8,786 | $ 5,430 |
Additions for current tax positions | 603 | |
Additions for prior tax positions | 928 | 2,753 |
Ending Balance | $ 9,714 | $ 8,786 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data - Selected Quarterly Results from Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 9,332 | $ 8,975 | $ 15,022 | $ 9,546 | $ 56,301 | $ 9,029 | $ 8,937 | $ 8,230 | $ 42,875 | $ 82,497 | $ 11,935 |
Net income (loss) | $ (10,785) | $ (10,890) | $ (6,874) | $ (9,417) | $ 39,655 | $ (6,560) | $ (9,240) | $ (5,996) | $ (37,966) | $ 17,859 | $ (39,963) |
Basic net income (loss) per share | $ 0.81 | $ (0.13) | $ (0.19) | $ (0.12) | $ (0.76) | $ 0.37 | $ (0.86) | ||||
Basic and diluted net loss per share | $ (0.21) | $ (0.22) | $ (0.14) | $ (0.19) | |||||||
Diluted net income (loss) per share | $ 0.80 | $ (0.13) | $ (0.19) | $ (0.12) | $ (0.76) | $ 0.36 | $ (0.86) |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||
Common stock , shares issued | 50,652,238 | 48,837,060 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Common stock , shares issued | 1,666,367 | ||
Common stock share price | $ 12 | ||
Common stock, net proceeds | $ 19.4 |