Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CCXI | |
Entity Registrant Name | ChemoCentryx, Inc. | |
Entity Central Index Key | 0001340652 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-35420 | |
Entity Tax Identification Number | 94-3254365 | |
Entity Address, Address Line One | 850 Maude Avenue | |
Entity Address, Address Line Two | Mountain View | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94043 | |
City Area Code | 650 | |
Local Phone Number | 210-2900 | |
Entity Incorporation, State or Country Code | DE | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Entity Common Stock, Shares Outstanding | 58,268,567 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 35,922 | $ 28,088 | |
Short-term investments | 135,011 | 148,896 | |
Accounts receivable from related party | 0 | 2,058 | |
Prepaid expenses and other current assets | 1,586 | 2,342 | |
Total current assets | 172,519 | 181,384 | |
Property and equipment, net | 1,588 | 1,536 | |
Long-term investments | 34,867 | 0 | |
Operating lease right-of-use assets | 1,993 | 0 | |
Other assets | 1,354 | 390 | |
Total assets | 212,321 | 183,310 | |
Current liabilities: | |||
Accounts payable | 937 | 966 | |
Accrued and other current liabilities | 17,597 | 12,969 | [1] |
Deferred revenue from related party | 36,819 | 50,461 | |
Total current liabilities | 55,353 | 64,396 | |
Long-term debt, net | 19,762 | 19,689 | |
Non-current deferred revenue from related party | 73,889 | 84,100 | |
Other non-current liabilities | 1,455 | 387 | [2] |
Total liabilities | 150,459 | 168,572 | |
Commitments (Note 7) | |||
Stockholders’ equity: | |||
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 | |
Common stock, $0.001 par value, 200,000,000 shares authorized; 58,253,140 and 50,652,238 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 58 | 51 | |
Additional paid-in capital | 475,869 | 389,398 | |
Note receivable | (16) | (16) | |
Accumulated other comprehensive income (loss) | 409 | (198) | |
Accumulated deficit | (414,458) | (374,497) | |
Total stockholders’ equity | 61,862 | 14,738 | |
Total liabilities and stockholders’ equity | $ 212,321 | $ 183,310 | |
[1] | Includes deferred rent and current portion of operating lease liabilities | ||
[2] | Includes deferred rent and non-current portion of operating lease liabilities |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
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 | 58,253,140 | 50,652,238 |
Common stock, shares outstanding | 58,253,140 | 50,652,238 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||||
Collaboration and license revenue from related party | $ 10,581 | $ 8,975 | $ 26,081 | $ 33,543 |
Total revenue | 10,581 | 8,975 | 26,081 | 33,543 |
Operating expenses: | ||||
Research and development | 18,096 | 15,135 | 51,074 | 47,636 |
General and administrative | 6,116 | 5,373 | 17,187 | 14,781 |
Total operating expenses | 24,212 | 20,508 | 68,261 | 62,417 |
Loss from operations | (13,631) | (11,533) | (42,180) | (28,874) |
Other income (expense): | ||||
Interest income | 1,311 | 1,066 | 3,850 | 2,471 |
Interest expense | (542) | (423) | (1,631) | (778) |
Total other income, net | 769 | 643 | 2,219 | 1,693 |
Net loss | $ (12,862) | $ (10,890) | $ (39,961) | $ (27,181) |
Basic and diluted net loss per common share | $ (0.22) | $ (0.22) | $ (0.71) | $ (0.55) |
Shares used to compute basic and diluted net loss per common share | 58,205 | 50,341 | 56,219 | 49,579 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (12,862) | $ (10,890) | $ (39,961) | $ (27,181) |
Unrealized gain (loss) on available-for-sale securities | 56 | 48 | 607 | (70) |
Comprehensive loss | $ (12,806) | $ (10,842) | $ (39,354) | $ (27,251) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Note Receivable [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2017 | $ 79,267 | $ 49 | $ 368,553 | $ (16) | $ (119) | $ (289,200) |
Beginning Balance, shares at Dec. 31, 2017 | 48,837,060 | |||||
Net loss | (27,181) | (27,181) | ||||
Adoption of ASC Topic 606, Revenue from Contracts with Customers | (47,331) | (47,331) | ||||
Unrealized gain / (loss) on investments | (70) | (70) | ||||
Issuance of common stock under equity incentive and employee stock purchase plans | 9,291 | $ 1 | 9,290 | |||
Issuance of common stock under equity incentive and employee stock purchase plans, shares | 1,671,032 | |||||
Repurchased shares upon vesting of restricted stock units for tax withholdings | (473) | (473) | ||||
Repurchased shares upon vesting of restricted stock units for tax withholdings, shares | (79,585) | |||||
Employee stock-based compensation | 7,246 | 7,246 | ||||
Compensation expense related to options granted to consultants | 723 | 723 | ||||
Ending Balance at Sep. 30, 2018 | 21,472 | $ 50 | 385,339 | (16) | (189) | (363,712) |
Ending Balance, shares at Sep. 30, 2018 | 50,428,507 | |||||
Beginning Balance at Jun. 30, 2018 | 28,898 | $ 50 | 381,923 | (16) | (237) | (352,822) |
Beginning Balance, shares at Jun. 30, 2018 | 50,309,988 | |||||
Net loss | (10,890) | (10,890) | ||||
Unrealized gain / (loss) on investments | 48 | 48 | ||||
Issuance of common stock under equity incentive and employee stock purchase plans | 614 | 614 | ||||
Issuance of common stock under equity incentive and employee stock purchase plans, shares | 118,519 | |||||
Employee stock-based compensation | 2,617 | 2,617 | ||||
Compensation expense related to options granted to consultants | 185 | 185 | ||||
Ending Balance at Sep. 30, 2018 | 21,472 | $ 50 | 385,339 | (16) | (189) | (363,712) |
Ending Balance, shares at Sep. 30, 2018 | 50,428,507 | |||||
Beginning Balance at Dec. 31, 2018 | $ 14,738 | $ 51 | 389,398 | (16) | (198) | (374,497) |
Beginning Balance, shares at Dec. 31, 2018 | 50,652,238 | 50,652,238 | ||||
Net loss | $ (39,961) | (39,961) | ||||
Unrealized gain / (loss) on investments | 607 | 607 | ||||
Issuance of common stock through Equity Distribution Agreement, net of issuance costs (Note 9) | $ 73,276 | $ 6 | 73,270 | |||
Issuance of common stock through Equity Distribution Agreement, net of issuance costs (Note 9), shares | 6,491,196 | 6,491,196 | ||||
Issuance of common stock under equity incentive and employee stock purchase plans | $ 5,837 | $ 1 | 5,836 | |||
Issuance of common stock under equity incentive and employee stock purchase plans, shares | 1,217,325 | |||||
Repurchased shares upon vesting of restricted stock units for tax withholdings | (1,174) | (1,174) | ||||
Repurchased shares upon vesting of restricted stock units for tax withholdings, shares | (107,619) | |||||
Employee stock-based compensation | 8,359 | 8,359 | ||||
Compensation expense related to options granted to consultants | 180 | 180 | ||||
Ending Balance at Sep. 30, 2019 | $ 61,862 | $ 58 | 475,869 | (16) | 409 | (414,458) |
Ending Balance, shares at Sep. 30, 2019 | 58,253,140 | 58,253,140 | ||||
Beginning Balance at Jun. 30, 2019 | $ 71,460 | $ 58 | 472,661 | (16) | 353 | (401,596) |
Beginning Balance, shares at Jun. 30, 2019 | 58,209,745 | |||||
Net loss | (12,862) | (12,862) | ||||
Unrealized gain / (loss) on investments | 56 | 56 | ||||
Issuance of common stock under equity incentive and employee stock purchase plans | 269 | 269 | ||||
Issuance of common stock under equity incentive and employee stock purchase plans, shares | 43,395 | |||||
Employee stock-based compensation | 2,856 | 2,856 | ||||
Compensation expense related to options granted to consultants | 83 | 83 | ||||
Ending Balance at Sep. 30, 2019 | $ 61,862 | $ 58 | $ 475,869 | $ (16) | $ 409 | $ (414,458) |
Ending Balance, shares at Sep. 30, 2019 | 58,253,140 | 58,253,140 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Operating activities | |||
Net loss | $ (39,961) | $ (27,181) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 8,539 | 7,969 | |
Depreciation of property and equipment | 413 | 371 | |
Amortization of right-of-use assets | 803 | 0 | |
Non-cash interest income, net | (1,394) | (714) | |
Changes in assets and liabilities: | |||
Accounts receivable due from related party | 2,058 | 50,754 | |
Prepaids and other current assets | 756 | (1,164) | |
Other assets | 116 | 137 | |
Accounts payable | (29) | (824) | |
Other liabilities | 2,659 | 3,053 | |
Deferred revenue from related party | (23,853) | (656) | |
Net cash provided by (used in) operating activities | (49,893) | 31,745 | |
Investing activities | |||
Purchases of property and equipment, net | (465) | (755) | |
Purchases of investments | (189,404) | (173,739) | |
Sales of investments | 4,967 | 0 | |
Maturities of investments | 165,770 | 108,050 | |
Net cash used in investing activities | (19,132) | (66,444) | |
Financing activities | |||
Proceeds from issuance of common stock | 73,276 | 0 | |
Proceeds from exercise of stock options and employee stock purchase plan | 5,837 | 9,291 | |
Employees' tax withheld and paid for restricted stock units | (1,174) | (473) | |
Borrowings under credit facility agreement, net of issuance costs | 0 | 9,975 | |
Net cash provided by financing activities | 77,939 | 18,793 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 8,914 | (15,906) | |
Cash, cash equivalents and restricted cash at beginning of period | 28,088 | 40,020 | |
Cash, cash equivalents and restricted cash at end of period | 37,002 | 24,114 | |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | 1,317 | 426 | |
Right-of-use assets obtained in exchange for lease obligations | [1] | $ 2,796 | $ 0 |
[1] | Amounts for the nine months ended September 30, 2019 include the transition adjustment of $1,301 for the adoption of Topic 842. |
Condensed ConsolidatedStatement
Condensed ConsolidatedStatements of Cash Flows (Parenthetical) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($) | ||
Right-of-use assets obtained in exchange for lease obligations | $ 2,796 | [1] |
Accounting Standards Update 2016-02 [Member] | ||
Right-of-use assets obtained in exchange for lease obligations | $ 1,301 | |
[1] | Amounts for the nine months ended September 30, 2019 include the transition adjustment of $1,301 for the adoption of Topic 842. |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2019 | |
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. Unaudited Interim Financial Information The financial information filed is unaudited. The Condensed Consolidated Financial Statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair statement of the results of operations for the interim periods covered and of the financial condition of the Company at the date of the interim balance sheet. The December 31, 2018 Condensed Consolidated Balance Sheet was derived from audited financial statements. The results for interim periods are not necessarily indicative of the results for the entire year or any other interim period. The Condensed Consolidated Financial Statements should be read in conjunction with the Company’s financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission on March 11, 2019. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies 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. 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. 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): September 30, December 31, 2019 2018 Vifor (International) Ltd., and/or its affiliates, or collectively, Vifor $ — $ 2,058 Net Loss Per Share Basic net loss per common share is computed by dividing net 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 loss per share is computed by dividing net 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 restricted stock units (RSUs) and restricted stock awards (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 loss per share when their effect is dilutive. For the nine months ended September 30, 2019 and 2018, the following potentially dilutive securities were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect: Nine Months Ended September 30, 2019 2018 Options to purchase common stock, including purchases from contributions to ESPP 11,059,464 10,816,005 Restricted stock units 402,261 473,687 Restricted stock awards 41,332 37,713 Warrants to purchase common stock 150,000 150,000 11,653,057 11,477,405 Comprehensive Loss Comprehensive loss comprises net loss and other comprehensive income (loss). For the periods presented, other comprehensive income (loss) consists of unrealized gains and losses on the Company’s available-for-sale securities. For the nine months ended September 30, 2019, amounts reclassified from accumulated other comprehensive income (loss) to net loss for unrealized gains (losses) on available-for-sale securities were not significant, and were recorded as part of other income, net in the Condensed Consolidated Statements of Operations. For the three months ended September 30, 2019 and three and nine months ended September 30, 2018, there were no sales of investments and therefore there were no reclassifications Leases The Company determines if an arrangement includes a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, accrued and other current liabilities and other non-current liabilities on the Company’s Condensed Consolidated Balance Sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company uses the incremental borrowing rate based on the information available at lease commencement date in determining the present value of future payments. The operating lease ROU asset also excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise any such options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to apply the recognition requirements for short-term leases. For lease agreements with lease and non-lease components, the Company generally accounts for them separately. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). The new standard requires the Company to recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. On January 1, 2019, the Company adopted this new standard using the modified retrospective approach in accordance with Leases – Targeted Improvements (ASU No. 2018-11). The Company elected the package of practical expedients permitted under the transition guidance within ASU No. 2018-11, which among other things, allowed the Company to carry forward the historical lease classification of those leases in place as of January 1, 2019. Results for the three and nine months ended September 30, 2019 are presented under Topic 842. Prior period amounts have not been adjusted and continue to be reported in accordance with the Company’s historical accounting under previous lease guidance, ASC Topic 840, Leases (Topic 840). The impact of the adoption of Topic 842 on the accompanying Condensed Consolidated Balance Sheet as of January 1, 2019 was as follows (in thousands): Adjustments December 31, 2018 Due to the Adoption of Topic 842 January 1, 2019 Balance Sheet Assets: Operating lease right-of-use assets $ — $ 1,301 $ 1,301 Liabilities: Operating lease liabilities: Accrued and other current liabilities (1) 12,969 955 13,924 Other non-current liabilities (2) 387 346 733 (1) Includes deferred rent and current portion of operating lease liabilities (2) Includes deferred rent and non-current portion of operating lease liabilities In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. The new standard replaces the incurred loss impairment methodology under the current standard with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company will be required to use a forward-looking expected credit loss model for accounts receivable and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The new standard will be effective for the Company on January 1, 2020, with early adoption permitted on January 1, 2019. The Company is currently evaluating the impact of the adoption of this standard on its financial statements and does not expect the adoption of this accounting guidance to have a material impact on the consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718). The new standard simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. The Company adopted this new standard on January 1, 2019. The adoption of this accounting guidance did not have a material impact on the consolidated financial statements. In August 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. These amendments eliminated, modified, or integrated into other SEC requirements certain disclosure rules. Among the amendments was the requirement to present an analysis of changes in stockholders’ equity in the interim financial statements included in quarterly reports on Form 10-Q. The analysis, which can be presented as a footnote or separate statement, is required for the current and comparative quarter and year-to-date interim periods. The amendments became effective for the Company in its interim financial statements for the quarter ended March 31, 2019. The adoption of these SEC amendments did not have a material effect on the Company’s financial position, results of operations, cash flows or stockholders’ equity. 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. |
Cash Equivalents and Investment
Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Cash Equivalents and Investments | 3. Cash Equivalents and Investments Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows (in thousands): September 30, December 31, 2019 2018 Cash and cash equivalents $ 35,922 $ 28,088 Restricted cash included in Other assets 1,080 — Total cash, cash equivalents and restricted cash $ 37,002 $ 28,088 Restricted cash as of September 30, 2019 was held as collateral for stand-by letters of credit issued by the Company to its landlord in connection with the lease of the Company’s facility in San Carlos, California. See “Note 7. Commitments” for additional information of this lease. Cash Equivalents and Investments The amortized cost and fair value of cash equivalents and investments at September 30, 2019 and December 31, 2018 were as follows (in thousands): September 30, 2019 Amortized Gross Unrealized Fair Cost Gains Losses Value Money market fund $ 32,547 $ — $ — $ 32,547 U.S. treasury securities 29,969 56 — 30,025 Commercial paper 18,408 — — 18,408 Asset-backed securities 28,439 52 — 28,491 Corporate debt securities 92,615 301 — 92,916 Total available-for-sale securities $ 201,978 $ 409 $ — $ 202,387 Classified as: Cash equivalents $ 32,509 Short-term investments 135,011 Long-term investments 34,867 Total available-for-sale securities $ 202,387 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 securities $ 175,124 $ — $ (198 ) $ 174,926 Classified as: Cash equivalents $ 26,030 Short-term investments 148,896 Total available-for-sale securities $ 174,926 Cash equivalents in the tables above exclude cash of $3.4 million and $2.1 million as of September 30, 2019 and December 31, 2018, respectively. All available-for-sale securities held as of September 30, 2019 had contractual maturities of less than two years. There have been no significant realized gains or losses on available-for-sale securities for the periods presented. The Company applies the specific identification method to determine the cost basis of the securities sold. No significant available-for-sale securities held as of September 30, 2019 have been in a continuous unrealized loss position for more than 12 months. As of September 30, 2019, unrealized losses on available-for-sale investments are not attributed to credit risk and are considered to be temporary. The Company believes that it is more-likely-than-not that investments in an unrealized loss position will be held until maturity or the recovery of the cost basis of the investment. The Company believes it has no other-than-temporary impairments on its securities because it does not intend to sell these securities and it believes it is not more likely than not that it will be required to sell these securities before the recovery of their amortized cost basis. To date, the Company has not recorded any impairment charges on marketable securities related to other-than-temporary declines in market value. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
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. Recurring Fair Value Measurements 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 September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Description Level 1 Level 2 Level 3 Total Money market fund $ 32,547 $ — $ — $ 32,547 U.S. treasury securities — 30,025 — 30,025 Commercial paper — 18,408 — 18,408 Asset-backed securities — 28,491 — 28,491 Corporate debt securities — 92,916 — 92,916 Total assets $ 32,547 $ 169,840 $ — $ 202,387 December 31, 2018 Description Level 1 Level 2 Level 3 Total 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 During the nine months ended September 30, 2019, 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 market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs. The Company corroborates non-binding market Other Fair Value Measurements The carrying amount and estimated fair value of financial instruments not recorded at fair value at September 30, 2019 and December 31, 2018 were as follows (in thousands): September 30, December 31, 2019 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt, net (1) $ 19,762 $ 20,149 $ 19,689 $ 19,847 (1) Carrying amounts of long-term debt were net of unamortized debt discounts of $238,000 and $311,000 as of September 30, 2019 and December 31, 2018, 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. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Payables And Accruals [Abstract] | |
Accrued and Other Current Liabilities | 5. Accrued and Other Current Liabilities Accrued and other current liabilities consist of the following (in thousands): September 30, December 31, 2019 2018 Research and development related $ 11,423 $ 8,466 Compensation related 2,706 2,767 Consulting and professional services 1,031 811 Current portion of operating lease liability 1,404 — Other 1,033 925 $ 17,597 $ 12,969 |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 6. 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) were available to the Company in three tranches, subject to certain terms and conditions. As of September 30, 2019, the Company had borrowed $20.0 million under the Credit Facility and the remaining available amount had expired. Advances under the Credit Facility 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 September 30, 2019, the interest rate on the outstanding borrowings under the Credit Facility was 8.30%. For advances made 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. 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 charge for each tranche it draws down, which will occur on the earliest of (i) the applicable tranche maturity date; (ii) the date that the Company prepays all of the outstanding principal under such tranche in full, or (iii) the date the loan payments are accelerated due to an event of default. For the first and second tranches, the end of term charge will be $0.9 million and $0.3 million, respectively. In addition, the Company paid 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 . 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 September 30, 2019, the Company had outstanding borrowings under the Credit Facility of $19.8 million, net of discounts of $0.2 million. Future minimum principal payments, which exclude the end of term charge, related to the Credit Facility as of September 30, 2019 are as follows (in thousands): Amounts Year ending December 31: Remaining of fiscal year 2019 $ — 2020 — 2021 6,381 2022 13,619 Total minimum payments 20,000 Less: amount representing debt discount (238 ) Present value of remaining debt payments 19,762 Less: current portion — Non-current portion $ 19,762 |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | 7. Commitments Operating Leases As described further in “Note 2. Summary of Significant Accounting Policies”, the Company adopted Topic 842 as of January 1, 2019. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. 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. In May 2019, the Company entered into a third amendment to the lease agreement for the same facility to extend the term of the lease through April 2021. The balance sheet classification of the Company’s operating lease liabilities was as follows (in thousands): September 30, December 31, 2019 2018 Accrued and other current liabilities (1) $ 1,404 $ 244 Other non-current liabilities (2) 978 143 Total lease liabilities $ 2,382 $ 387 (1) Includes current portion of operating lease liabilities as of September 30, 2019 and deferred rent as of December 31, 2018 (2) Includes non-current portion of operating lease liabilities as of September 30, 2019 and deferred rent as of December 31, 2018 The component of lease costs, which was included in operating expenses in the Company’s Condensed Consolidated Statements of Operations, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Operating lease cost $ 351 $ 268 $ 943 $ 804 Cash paid for amounts included in the measurement of lease liabilities for the nine months ended September 30, 2019 was $940,000 and was included in net cash used in operating activities in the Company’s Condensed Consolidated Statements of Cash Flows. Future minimum lease payments under all noncancelable operating leases as of September 30, 2019 are as follows (in thousands): Operating leases Year ending December 31: Remaining of fiscal year 2019 $ 376 2020 1,659 2021 579 Total minimum payments 2,614 Less: interest (232 ) Present value of lease liabilities $ 2,382 As of September 30, 2019, the weighted-average remaining lease term was 1.6 years and the weighted-average operating discount rate used to determine the operating lease liability was 11.0%. In July 2019, the Company entered into a ten-year operating lease for a 96,463 square foot facility in San Carlos, California to replace its current headquarters located in Mountain View, California, for which the lease expires in April 2021. Upon execution of the lease agreement, the Company provided the landlord an approximately $1.1 million security deposit in the form of a letter of credit. Subject to certain conditions pursuant to the lease, the Company anticipates the lease commencement date to occur in the third quarter of 2020 and monthly rent payments to begin in the second quarter of 2021. Following a six month period of discounted rent, the Company will pay an initial annual base rent at a rate of approximately $6.5 million, which is subject to scheduled 3% annual increases, plus certain operating expenses. The Company has been provided a tenant improvement allowance of $15.4 million plus an additional allowance of up to $4.8 million for the same. If the additional allowance is provided, such amount will be repaid by the Company as additional rent in equal monthly payments at a rate of 7% per annum through the initial term of the lease. The Company has the right to sublease the facility, subject to landlord consent. The Company also has the option to extend the lease for five years. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 8. Related-Party Transactions Vifor Vifor held 10,676,825 shares of the Company’s common stock as of September 30, 2019. The Company has collaboration agreements with Vifor: the Avacopan Agreements and the CCX140 Agreements (each as described below). 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 upfront payment of $85.0 million, comprising $60.0 million in cash and $25.0 million in the form of an equity investment to purchase 3,333,333 shares of the Company’s common stock at a price of $7.50 per share. 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, and together with the Avacopan Agreement and the Avacopan Amendment, the Avacopan Agreements). 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, on future potential net sales of avacopan by Vifor in the licensed territories. In December 2017, the Company achieved a $50.0 million regulatory milestone when the European Medicines Agency (EMA) validated the Company’s Conditional marketing authorisation (CMA) application for avacopan for the treatment of AAV. The Company identified the following material promises under the Avacopan Agreements: (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. As of September 30, 2019, 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 non-refundable upfront payment under the Avacopan Letter Agreement. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur. 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 three and nine months ended September 30, 2019, the Company recognized $8.8 million and $20.9 million CCX140 Agreements 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 rights for CKD in the United States. Under the terms of the CCX140 Agreement, the Company received a non-refundable upfront payment of $50.0 million in 2017. 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 payment of $5.0 million. The Company and Vifor also entered into an amendment to the CCX140 Agreement (the CCX140 Amendment, and together with the CCX140 Agreement and the CCX140 Letter Agreement, the CCX140 Agreements) to clarify the timing of certain payments with respect to development funding of the CCX140 program by Vifor, and the Company received a non-refundable payment of $11.5 million. The Company retains control of ongoing and future development of CCX140 (other than country-specific development in the licensed territories), and all commercialization rights to CCX140 in the United States. 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, on net sales of CCX140 in the licensed territories. The Company identified the following material promises under the CCX140 Agreements: (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 September 30, 2019, the transaction price of $113.6 million consists of the following: • $50.0 million upfront payment under the CCX140 Agreement; • $58.6 million of CCX140 development funding by Vifor; and • $5.0 million non-refundable upfront payment under the CCX140 Letter Agreement. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur. 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 three and nine months ended September 30, 2019, the Company recognized $1.8 million and $5.2 million of collaboration and license revenue under the CCX140 Agreements, respectively, as compared to $1.5 million and $4.8 million during the same respective periods in 2018. The following table presents the contract assets and liabilities for all of the Company’s revenue contracts as of the following dates (in thousands): September 30, December 31, 2019 2018 Contract asset: Accounts receivable $ — $ 2,058 Contract liability: Deferred revenue (110,708 ) (134,561 ) During the three and nine months ended September 30, 2019, the Company recognized the following revenue as a result of changes in the contract asset and the contract liability balances (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Revenue recognized in the period from: Amount included in contract liability at the beginning of the period $ 10,581 $ 25,910 Performance obligations satisfied (or partially satisfied) in previous periods $ 1,632 $ (2,155 ) |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Stock Options During the nine months ended September 30, 2019, the Company had the following activities under its equity incentive plans: Available for Grant Share s Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance at December 31, 2018 1,708,516 10,720,200 $ 8.39 Shares authorized 2,000,000 — Granted (1) (2,220,663 ) 1,990,842 11.20 Exercised (2) 107,619 (915,355 ) 6.01 Forfeited and expired (3) 767,863 (761,196 ) 7.60 Outstanding at September 30, 2019 2,363,335 11,034,491 $ 9.15 6.21 $ 4,735,997 Vested and expected to vest, net of estimated forfeiture at September 30, 2019 10,686,306 $ 9.10 6.12 $ 4,713,658 Exercisable at September 30, 2019 7,396,982 $ 8.65 4.91 $ 4,087,458 (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. (3) The difference between shares forfeited and expired in the number of shares available for grant and outstanding options represents the RSUs canceled during the period. Restricted Stock During the nine months ended September 30, 2019, the activity for restricted stock is summarized as follows: Share s Weighted Average Grant-Date Fair Value Balance at December 31, 2018 467,632 $ 8.47 Granted 229,821 11.54 Vested (247,193 ) 8.32 Canceled (6,667 ) 10.86 Unvested at September 30, 2019 443,593 $ 10.10 Stock-based Compensation Total stock-based compensation expense was $2.9 million and $8.5 million during the three and nine months ended September 30, 2019, respectively, and $2.8 million and $8.0 million during the same periods ended September 30, 2018, respectively. As of September 30, 2019, $18.4 million, $2.5 million and $31,000 of total unrecognized compensation expenses associated with outstanding employee stock options, unvested restricted stock, and the ESPP, net of estimated forfeitures, were expected to be recognized over a weighted-average period of 2.57, 1.33 and 0.12 years, respectively. 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 the Company’s common stock, par value $0.001 per share, having an aggregate offering price of up to $75.0 million. For the nine months ended September 30, 2019, the Company sold 6,491,196 shares of its common stock pursuant to its EDA for net proceeds of $73.3 million. These sales fully exhausted the amount available under the EDA. Accordingly, no further sales will be made under the EDA. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
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. |
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. 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): September 30, December 31, 2019 2018 Vifor (International) Ltd., and/or its affiliates, or collectively, Vifor $ — $ 2,058 |
Net Loss Per Share | Net Loss Per Share Basic net loss per common share is computed by dividing net 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 loss per share is computed by dividing net 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 restricted stock units (RSUs) and restricted stock awards (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 loss per share when their effect is dilutive. For the nine months ended September 30, 2019 and 2018, the following potentially dilutive securities were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect: Nine Months Ended September 30, 2019 2018 Options to purchase common stock, including purchases from contributions to ESPP 11,059,464 10,816,005 Restricted stock units 402,261 473,687 Restricted stock awards 41,332 37,713 Warrants to purchase common stock 150,000 150,000 11,653,057 11,477,405 |
Comprehensive Loss | Comprehensive Loss Comprehensive loss comprises net loss and other comprehensive income (loss). For the periods presented, other comprehensive income (loss) consists of unrealized gains and losses on the Company’s available-for-sale securities. For the nine months ended September 30, 2019, amounts reclassified from accumulated other comprehensive income (loss) to net loss for unrealized gains (losses) on available-for-sale securities were not significant, and were recorded as part of other income, net in the Condensed Consolidated Statements of Operations. For the three months ended September 30, 2019 and three and nine months ended September 30, 2018, there were no sales of investments and therefore there were no reclassifications |
Leases | Leases The Company determines if an arrangement includes a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, accrued and other current liabilities and other non-current liabilities on the Company’s Condensed Consolidated Balance Sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company uses the incremental borrowing rate based on the information available at lease commencement date in determining the present value of future payments. The operating lease ROU asset also excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise any such options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to apply the recognition requirements for short-term leases. For lease agreements with lease and non-lease components, the Company generally accounts for them separately. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). The new standard requires the Company to recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. On January 1, 2019, the Company adopted this new standard using the modified retrospective approach in accordance with Leases – Targeted Improvements (ASU No. 2018-11). The Company elected the package of practical expedients permitted under the transition guidance within ASU No. 2018-11, which among other things, allowed the Company to carry forward the historical lease classification of those leases in place as of January 1, 2019. Results for the three and nine months ended September 30, 2019 are presented under Topic 842. Prior period amounts have not been adjusted and continue to be reported in accordance with the Company’s historical accounting under previous lease guidance, ASC Topic 840, Leases (Topic 840). The impact of the adoption of Topic 842 on the accompanying Condensed Consolidated Balance Sheet as of January 1, 2019 was as follows (in thousands): Adjustments December 31, 2018 Due to the Adoption of Topic 842 January 1, 2019 Balance Sheet Assets: Operating lease right-of-use assets $ — $ 1,301 $ 1,301 Liabilities: Operating lease liabilities: Accrued and other current liabilities (1) 12,969 955 13,924 Other non-current liabilities (2) 387 346 733 (1) Includes deferred rent and current portion of operating lease liabilities (2) Includes deferred rent and non-current portion of operating lease liabilities In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. The new standard replaces the incurred loss impairment methodology under the current standard with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company will be required to use a forward-looking expected credit loss model for accounts receivable and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The new standard will be effective for the Company on January 1, 2020, with early adoption permitted on January 1, 2019. The Company is currently evaluating the impact of the adoption of this standard on its financial statements and does not expect the adoption of this accounting guidance to have a material impact on the consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718). The new standard simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees, with certain exceptions. The Company adopted this new standard on January 1, 2019. The adoption of this accounting guidance did not have a material impact on the consolidated financial statements. In August 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. These amendments eliminated, modified, or integrated into other SEC requirements certain disclosure rules. Among the amendments was the requirement to present an analysis of changes in stockholders’ equity in the interim financial statements included in quarterly reports on Form 10-Q. The analysis, which can be presented as a footnote or separate statement, is required for the current and comparative quarter and year-to-date interim periods. The amendments became effective for the Company in its interim financial statements for the quarter ended March 31, 2019. The adoption of these SEC amendments did not have a material effect on the Company’s financial position, results of operations, cash flows or stockholders’ equity. 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Accounts Receivable | Accounts receivable consists of the following (in thousands): September 30, December 31, 2019 2018 Vifor (International) Ltd., and/or its affiliates, or collectively, Vifor $ — $ 2,058 |
Potentially Dilutive Securities Excluded from Calculation of Diluted Net Income (Loss) per Share Due to Anti-Dilutive Effect | For the nine months ended September 30, 2019 and 2018, the following potentially dilutive securities were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect: Nine Months Ended September 30, 2019 2018 Options to purchase common stock, including purchases from contributions to ESPP 11,059,464 10,816,005 Restricted stock units 402,261 473,687 Restricted stock awards 41,332 37,713 Warrants to purchase common stock 150,000 150,000 11,653,057 11,477,405 |
Schedule of Impact of Adoption on Consolidated Statement of Operations and Balance Sheet | The impact of the adoption of Topic 842 on the accompanying Condensed Consolidated Balance Sheet as of January 1, 2019 was as follows (in thousands): Adjustments December 31, 2018 Due to the Adoption of Topic 842 January 1, 2019 Balance Sheet Assets: Operating lease right-of-use assets $ — $ 1,301 $ 1,301 Liabilities: Operating lease liabilities: Accrued and other current liabilities (1) 12,969 955 13,924 Other non-current liabilities (2) 387 346 733 (1) Includes deferred rent and current portion of operating lease liabilities (2) Includes deferred rent and non-current portion of operating lease liabilities |
Cash Equivalents and Investme_2
Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows (in thousands): September 30, December 31, 2019 2018 Cash and cash equivalents $ 35,922 $ 28,088 Restricted cash included in Other assets 1,080 — Total cash, cash equivalents and restricted cash $ 37,002 $ 28,088 |
Amortized Cost and Fair Value of Cash Equivalents and Investments | The amortized cost and fair value of cash equivalents and investments at September 30, 2019 and December 31, 2018 were as follows (in thousands): September 30, 2019 Amortized Gross Unrealized Fair Cost Gains Losses Value Money market fund $ 32,547 $ — $ — $ 32,547 U.S. treasury securities 29,969 56 — 30,025 Commercial paper 18,408 — — 18,408 Asset-backed securities 28,439 52 — 28,491 Corporate debt securities 92,615 301 — 92,916 Total available-for-sale securities $ 201,978 $ 409 $ — $ 202,387 Classified as: Cash equivalents $ 32,509 Short-term investments 135,011 Long-term investments 34,867 Total available-for-sale securities $ 202,387 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 securities $ 175,124 $ — $ (198 ) $ 174,926 Classified as: Cash equivalents $ 26,030 Short-term investments 148,896 Total available-for-sale securities $ 174,926 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Description Level 1 Level 2 Level 3 Total Money market fund $ 32,547 $ — $ — $ 32,547 U.S. treasury securities — 30,025 — 30,025 Commercial paper — 18,408 — 18,408 Asset-backed securities — 28,491 — 28,491 Corporate debt securities — 92,916 — 92,916 Total assets $ 32,547 $ 169,840 $ — $ 202,387 December 31, 2018 Description Level 1 Level 2 Level 3 Total 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 |
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 September 30, 2019 and December 31, 2018 were as follows (in thousands): September 30, December 31, 2019 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Long-term debt, net (1) $ 19,762 $ 20,149 $ 19,689 $ 19,847 (1) Carrying amounts of long-term debt were net of unamortized debt discounts of $238,000 and $311,000 as of September 30, 2019 and December 31, 2018, respectively. |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities consist of the following (in thousands): September 30, December 31, 2019 2018 Research and development related $ 11,423 $ 8,466 Compensation related 2,706 2,767 Consulting and professional services 1,031 811 Current portion of operating lease liability 1,404 — Other 1,033 925 $ 17,597 $ 12,969 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Future Minimum Principal Payments Related to Credit Facility | Future minimum principal payments, which exclude the end of term charge, related to the Credit Facility as of September 30, 2019 are as follows (in thousands): Amounts Year ending December 31: Remaining of fiscal year 2019 $ — 2020 — 2021 6,381 2022 13,619 Total minimum payments 20,000 Less: amount representing debt discount (238 ) Present value of remaining debt payments 19,762 Less: current portion — Non-current portion $ 19,762 |
Commitments (Tables)
Commitments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Balance Sheet Classification of the Company's Operating Lease Liabilities | The balance sheet classification of the Company’s operating lease liabilities was as follows (in thousands): September 30, December 31, 2019 2018 Accrued and other current liabilities (1) $ 1,404 $ 244 Other non-current liabilities (2) 978 143 Total lease liabilities $ 2,382 $ 387 (1) Includes current portion of operating lease liabilities as of September 30, 2019 and deferred rent as of December 31, 2018 (2) Includes non-current portion of operating lease liabilities as of September 30, 2019 and deferred rent as of December 31, 2018 |
Schedule of Operating Expenses in the Company's Condensed Consolidated Statements of Operations | The component of lease costs, which was included in operating expenses in the Company’s Condensed Consolidated Statements of Operations, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Operating lease cost $ 351 $ 268 $ 943 $ 804 |
Schedule of Future Minimum Lease Payments Under all Noncancelable Operating Leases | Future minimum lease payments under all noncancelable operating leases as of September 30, 2019 are as follows (in thousands): Operating leases Year ending December 31: Remaining of fiscal year 2019 $ 376 2020 1,659 2021 579 Total minimum payments 2,614 Less: interest (232 ) Present value of lease liabilities $ 2,382 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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): September 30, December 31, 2019 2018 Contract asset: Accounts receivable $ — $ 2,058 Contract liability: Deferred revenue (110,708 ) (134,561 ) During the three and nine months ended September 30, 2019, the Company recognized the following revenue as a result of changes in the contract asset and the contract liability balances (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Revenue recognized in the period from: Amount included in contract liability at the beginning of the period $ 10,581 $ 25,910 Performance obligations satisfied (or partially satisfied) in previous periods $ 1,632 $ (2,155 ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity under its Stock Plans | During the nine months ended September 30, 2019, the Company had the following activities under its equity incentive plans: Available for Grant Share s Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance at December 31, 2018 1,708,516 10,720,200 $ 8.39 Shares authorized 2,000,000 — Granted (1) (2,220,663 ) 1,990,842 11.20 Exercised (2) 107,619 (915,355 ) 6.01 Forfeited and expired (3) 767,863 (761,196 ) 7.60 Outstanding at September 30, 2019 2,363,335 11,034,491 $ 9.15 6.21 $ 4,735,997 Vested and expected to vest, net of estimated forfeiture at September 30, 2019 10,686,306 $ 9.10 6.12 $ 4,713,658 Exercisable at September 30, 2019 7,396,982 $ 8.65 4.91 $ 4,087,458 (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. (3) The difference between shares forfeited and expired in the number of shares available for grant and outstanding options represents the RSUs canceled during the period. |
Restricted Stock Activity | During the nine months ended September 30, 2019, the activity for restricted stock is summarized as follows: Share s Weighted Average Grant-Date Fair Value Balance at December 31, 2018 467,632 $ 8.47 Granted 229,821 11.54 Vested (247,193 ) 8.32 Canceled (6,667 ) 10.86 Unvested at September 30, 2019 443,593 $ 10.10 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of operating segment | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Vifor [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 0 | $ 2,058 |
Summary of Significant Accoun_5
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 | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 11,653,057 | 11,477,405 |
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 | 11,059,464 | 10,816,005 |
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 | 402,261 | 473,687 |
Restricted Stock Awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 41,332 | 37,713 |
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 |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies - Schedule Of Impact Of Accompanying Consolidated Statement of Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |||
Assets: | ||||||
Operating lease right-of-use assets | $ 1,993 | $ 1,301 | $ 0 | |||
Operating lease liabilities: | ||||||
Accrued and other current liabilities | 17,597 | 13,924 | [1] | 12,969 | [1] | |
Other non-current liabilities | $ 1,455 | 733 | [2] | $ 387 | [2] | |
Accounting Standards Update 2016-02 [Member] | ||||||
Assets: | ||||||
Operating lease right-of-use assets | 1,301 | |||||
Accounting Standards Update 2016-02 [Member] | Accrued and other current liabilities [Member] | ||||||
Operating lease liabilities: | ||||||
Accrued and other current liabilities | [1] | 955 | ||||
Accounting Standards Update 2016-02 [Member] | Other non-current liabilities [Member] | ||||||
Operating lease liabilities: | ||||||
Other non-current liabilities | [2] | $ 346 | ||||
[1] | Includes deferred rent and current portion of operating lease liabilities | |||||
[2] | Includes deferred rent and non-current portion of operating lease liabilities |
Cash Equivalents and Investme_3
Cash Equivalents and Investments - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | $ 35,922 | $ 28,088 | ||
Total cash, cash equivalents and restricted cash | 37,002 | $ 28,088 | $ 24,114 | $ 40,020 |
Other Assets [Member] | ||||
Restricted cash included in Other assets | $ 1,080 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments - Amortized Cost and Fair Value of Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 201,978 | $ 175,124 |
Gross Unrealized Gains | 409 | 0 |
Gross Unrealized Losses | 0 | (198) |
Available-for-sale Securities | 202,387 | 174,926 |
Money Market Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 32,547 | 22,073 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 32,547 | 22,073 |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 29,969 | 23,013 |
Gross Unrealized Gains | 56 | 0 |
Gross Unrealized Losses | 0 | (13) |
Available-for-sale Securities | 30,025 | 23,000 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 18,408 | 45,683 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 18,408 | 45,683 |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 28,439 | 29,127 |
Gross Unrealized Gains | 52 | 0 |
Gross Unrealized Losses | 0 | (34) |
Available-for-sale Securities | 28,491 | 29,093 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 92,615 | 55,228 |
Gross Unrealized Gains | 301 | 0 |
Gross Unrealized Losses | 0 | (151) |
Available-for-sale Securities | $ 92,916 | $ 55,077 |
Cash Equivalents and Investme_5
Cash Equivalents and Investments - Amortized Cost and Fair Value of Cash Equivalents and Investments 2 (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||
Cash equivalents | $ 32,509 | $ 26,030 |
Short-term investments | 135,011 | 148,896 |
Long-term investments | 34,867 | 0 |
Total available-for-sale securities | $ 202,387 | $ 174,926 |
Cash Equivalents and Investme_6
Cash Equivalents and Investments - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2019USD ($)Investment | Dec. 31, 2018USD ($) | |
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 | $ 3,400,000 | $ 2,100,000 |
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 202,387 | $ 174,926 |
Money Market Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 32,547 | 22,073 |
U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 30,025 | 23,000 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 18,408 | 45,683 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 28,491 | 29,093 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 92,916 | 55,077 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 32,547 | 22,073 |
Level 1 [Member] | Money Market Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 32,547 | 22,073 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 169,840 | 152,853 |
Level 2 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 30,025 | 23,000 |
Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 18,408 | 45,683 |
Level 2 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 28,491 | 29,093 |
Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 92,916 | $ 55,077 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Sep. 30, 2019USD ($) |
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) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Amount | $ 19,762 | |
Term Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Amount | 19,762 | $ 19,689 |
Estimated Fair Value | $ 20,149 | $ 19,847 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Carrying Amount and Estimated Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unamortized debt discounts | $ 238,000 | |
Term Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unamortized debt discounts | $ 238,000 | $ 311,000 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | [1] | Dec. 31, 2018 | |
Payables And Accruals [Abstract] | |||||
Research and development related | $ 11,423 | $ 8,466 | |||
Compensation related | 2,706 | 2,767 | |||
Consulting and professional services | 1,031 | 811 | |||
Current portion of operating lease liability | 1,404 | 0 | |||
Other | 1,033 | 925 | |||
Accrued liabilities | $ 17,597 | $ 13,924 | $ 12,969 | [1] | |
[1] | Includes deferred rent and current portion of operating lease liabilities |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) | Dec. 28, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Line of credit facility, advance amount | $ 20,000,000 | |||
Line of credit facility, interest rate | 8.05% | |||
Line of credit facility, interest rate description | Advances under the Credit Facility 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 September 30, 2019, the interest rate on the outstanding borrowings under the Credit Facility was 8.30%. For advances made 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. | |||
Proceeds from issuance of common stock | $ 73,276,000 | $ 0 | ||
Borrowings outstanding | 19,762,000 | |||
Discount on borrowings | $ 238,000 | |||
Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||
Line of credit facility, interest rate | 8.30% | |||
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 | $ 19,762,000 | $ 19,689,000 | ||
Discount on borrowings | $ 238,000 | $ 311,000 | ||
Term Loan [Member] | Tranche One [Member] | ||||
Debt Instrument [Line Items] | ||||
End of term charge amount for loan | $ 900,000 | |||
Term Loan [Member] | Tranche Two [Member] | ||||
Debt Instrument [Line Items] | ||||
End of term charge amount for loan | 300,000 | |||
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 | |||
Term Loan [Member] | Hercules Capital Inc [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from issuance of common stock | $ 2,000,000 |
Long-term Debt - Schedule of Fu
Long-term Debt - Schedule of Future Minimum Principal Payments Related to Credit Facility (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Remaining of fiscal year 2019 | $ 0 | |
2020 | 0 | |
2021 | 6,381 | |
2022 | 13,619 | |
Total minimum payments | 20,000 | |
Less: amount representing debt discount | (238) | |
Long-term debt, net | 19,762 | |
Less: current portion | 0 | |
Long-term debt, Non-current portion | $ 19,762 | $ 19,689 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019USD ($)ft² | |
Operating Leased Assets [Line Items] | |
Discounted lease | The Company received a discounted lease rate during the first year of the agreement. |
Expiration date | 2021-04 |
Operating Lease, Payments | $ 940,000 |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 7 months 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 11.00% |
Initial annual base rent expense | $ 6,500,000 |
Incremental percentage of annual lease rent | 3.00% |
Operating lease contract | 10 years |
Tenant improvement allowance | $ 15,400,000 |
Proceeds from Additional Tenant Allowance | $ 4,800,000 |
Operating lease, option to extend | The Company also has the option to extend the lease for five years. |
Additional tenant improvement allowance | 7.00% |
Operating lease new facility commence | 2021-05 |
Lessee, operating lease, lease not yet commenced, description | third quarter of 2020 |
Letter of Credit [Member] | |
Operating Leased Assets [Line Items] | |
Security deposit | $ 1,100,000 |
San Carlos California [Member] | |
Operating Leased Assets [Line Items] | |
Discounted lease | Following a six month period of discounted rent |
Area of Land | ft² | 96,463 |
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 |
Third Amendment May 2019 [Member] | |
Operating Leased Assets [Line Items] | |
Expiration date | 2021-04 |
Commitments - Schedule of Balan
Commitments - Schedule of Balance Sheet Classification of the Company's Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Total operating lease liabilities | $ 1,404 | $ 0 |
Total operating lease liabilities | 2,382 | |
Total operating lease liabilities | 387 | |
Accrued And Other Liabilities Current [Member] | ||
Total operating lease liabilities | 1,404 | |
Total operating lease liabilities | 244 | |
Other Noncurrent Liabilities [Member] | ||
Total operating lease liabilities | $ 978 | |
Total operating lease liabilities | $ 143 |
Commitments - Schedule of Opera
Commitments - Schedule of Operating Expenses in the Company's Condensed Consolidated Statements of Operations (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | ||||
Operating lease cost | $ 351 | $ 268 | $ 943 | $ 804 |
Commitments - Schedule of Futur
Commitments - Schedule of Future Minimum Lease Payments Under all Noncancelable Operating Leases (Details 2) $ in Thousands | Sep. 30, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remaining of fiscal year 2019 | $ 376 |
2020 | 1,659 |
2021 | 579 |
Total minimum payments | 2,614 |
Less: interest | (232) |
Present value of lease liabilities | $ 2,382 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) | Dec. 28, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | May 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||||||||||
Non refundable upfront payments received | $ 85,000,000 | |||||||||
Non refundable upfront payment received in equity investment, shares | 3,333,333 | |||||||||
Performance obligations satisfied (or partially satisfied) in previous periods | $ 1,632,000 | $ (2,155,000) | ||||||||
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 | 10,581,000 | $ 8,975,000 | 26,081,000 | $ 33,543,000 | ||||||
Avacopan Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non refundable upfront payments received | $ 85,000,000 | |||||||||
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 | 153,000,000 | ||||||||
Collaboration and license revenue from related party | 8,800,000 | 7,600,000 | 20,900,000 | 28,800,000 | ||||||
Avacopan Agreement [Member] | Maximum [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Potential milestone payments receivable | 460,000,000 | |||||||||
Avacopan Amendment [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non refundable upfront payments received | $ 20,000,000 | |||||||||
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] | ||||||||||
Non refundable payment for expanded rights | 5,000,000 | 5,000,000 | $ 50,000,000 | |||||||
Transaction price | 113,600,000 | 113,600,000 | ||||||||
Upfront payments received | 50,000,000 | |||||||||
Collaboration and license revenue from related party | $ 1,800,000 | $ 1,500,000 | 5,200,000 | $ 4,800,000 | ||||||
Non refundable upfront commitment | $ 11,500,000 | |||||||||
CCX140 Agreement [Member] | Maximum [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Potential milestone payments receivable | $ 625,000,000 | |||||||||
Vifor [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Purchase of Common stock, shares | 10,676,825 | |||||||||
Vifor [Member] | CCX140 Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Development funding | $ 58,600,000 |
Related-Party Transactions - Sc
Related-Party Transactions - Schedule of Contract Assets and Liabilities and Changes in Contract Balances (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts Receivable Net [Member] | ||
Contract asset: | ||
Contract asset | $ 2,058 | |
Deferred Revenue [Member] | ||
Contract liability: | ||
Contract liability | $ (110,708) | $ (134,561) |
Related-Party Transactions - _2
Related-Party Transactions - Schedule of Contract Assets and Liabilities Changes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Related Party Transactions [Abstract] | ||
Amount included in contract liability at the beginning of the period | $ 10,581 | $ 25,910 |
Performance obligations satisfied (or partially satisfied) in previous periods | $ 1,632 | $ (2,155) |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity under its Stock Plans (Detail) | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shares Available for Grant, Outstanding Beginning Balance | 1,708,516 |
Available for Grant, Shares authorized | 2,000,000 |
Shares Available for Grant, Granted | (2,220,663) |
Shares Available for Grant, Exercised | 107,619 |
Shares Available for Grant, Forfeited and expired | 767,863 |
Shares Available for Grant, Outstanding Ending Balance | 2,363,335 |
Shares, Options Outstanding, Beginning Balance | 10,720,200 |
Shares, Options Outstanding, authorized | 0 |
Shares, Options Outstanding, Granted | 1,990,842 |
Shares, Options Outstanding, Exercised | (915,355) |
Shares, Options Outstanding, Forfeited and expired | (761,196) |
Shares, Options Outstanding, Ending Balance | 11,034,491 |
Shares, Vested and expected to vest, net of estimated forfeiture at September 30, 2019 | 10,686,306 |
Shares, Exercisable at September 30, 2019 | 7,396,982 |
Weighted Average Exercise Price, Options Outstanding, Beginning Balance | $ / shares | $ 8.39 |
Weighted Average Exercise Price, Options Outstanding, Granted | $ / shares | 11.20 |
Weighted Average Exercise Price, Options Outstanding, Exercised | $ / shares | 6.01 |
Weighted Average Exercise Price, Options Outstanding, Forfeited and expired | $ / shares | 7.60 |
Weighted Average Exercise Price, Options Outstanding, Ending Balance | $ / shares | 9.15 |
Weighted Average Exercise Price, Vested and expected to vest, net of estimated forfeiture at September 30, 2019 | $ / shares | 9.10 |
Weighted Average Exercise Price, Exercisable at September 30, 2019 | $ / shares | $ 8.65 |
Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 2 months 15 days |
Weighted Average Remaining Contractual Term, Vested and expected to vest, net of estimated forfeiture at September 30, 2019 | 6 years 1 month 13 days |
Weighted Average Remaining Contractual Term, Exercisable at September 30, 2019 | 4 years 10 months 28 days |
Aggregate Intrinsic Value, Outstanding, Ending Balance | $ | $ 4,735,997 |
Aggregate Intrinsic Value, Vested and expected to vest, net of estimated forfeiture at September 30, 2019 | $ | 4,713,658 |
Aggregate Intrinsic Value, Exercisable at September 30, 2019 | $ | $ 4,087,458 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Activity (Detail) - Restricted Stocks [Member] | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares, Unvested, Beginning Balance | shares | 467,632 |
Shares, Granted | shares | 229,821 |
Shares, Vested | shares | (247,193) |
Shares, Canceled | shares | (6,667) |
Shares, Unvested, Ending Balance | shares | 443,593 |
Weighted Average Grant-Date Fair Value, Unvested, Beginning Balance | $ / shares | $ 8.47 |
Weighted Average Grant-Date Fair Value, Granted | $ / shares | 11.54 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | 8.32 |
Weighted Average Grant-Date Fair Value, Canceled | $ / shares | 10.86 |
Weighted Average Grant-Date Fair Value, Unvested, Ending Balance | $ / shares | $ 10.10 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | ||
Stock Issued During Period, Shares, New Issues | 6,491,196 | ||||
Proceeds from Issuance of Common Stock | $ 73,276 | $ 0 | |||
Equity Distribution Agreement [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Equity Distribution Agreement Aggregate Offering Price | $ 75,000 | 75,000 | |||
Employee Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Unrecognized compensation expenses | 31,000 | $ 31,000 | |||
Unrecognized compensation expense, weighted-average period | 1 month 13 days | ||||
Stock Options [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | 2,900 | $ 2,800 | $ 8,500 | $ 8,000 | |
Unrecognized compensation expenses | 18,400 | $ 18,400 | |||
Unrecognized compensation expense, weighted-average period | 2 years 6 months 25 days | ||||
Restricted Stocks [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Unrecognized compensation expenses | $ 2,500 | $ 2,500 | |||
Unrecognized compensation expense, weighted-average period | 1 year 3 months 29 days |