Reata Pharmaceuticals (RETA) 10-Q 7 Aug 23 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Aug. 01, 2023
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Trading Symbol	RETA
Entity Registrant Name	Reata Pharmaceuticals, Inc.
Entity Central Index Key	0001358762
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity File Number	001-37785
Entity Tax Identification Number	11-3651945
Entity Address, Address Line One	5320 Legacy Drive
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address Postal Zip Code	75024
City Area Code	972
Local Phone Number	865-2219
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Class A Common Stock, Par Value $0.001 Per Share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Common Stock A
Document Information [Line Items]
Entity Common Stock Shares Outstanding		33,499,825
Common Stock B
Document Information [Line Items]
Entity Common Stock Shares Outstanding		4,650,209

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 48,843	$ 42,312
Marketable debt securities	281,371	345,202
Accounts receivable, net	22,662	0
Prepaid expenses and other current assets	46,031	10,256
Inventory, current	2,942	0
Total current assets	401,849	397,770
Property and equipment, net	11,303	11,179
Operating lease right-of-use-assets	78,598	105,258
Inventory, noncurrent	10,338	0
Other assets	499	284
Total assets	502,587	514,491
Liabilities and stockholders' equity (deficit)
Accounts payable	19,860	18,706
Accrued direct research liabilities	25,135	13,836
Other current liabilities	71,991	24,267
Liability related to sale of future royalties, current	5,650	0
Operating lease liabilities, current	2,456	2,151
Total current liabilities	125,093	58,960
Opearting lease liabilities, noncurrent	90,417	117,313
Term Loan, net of debt issuance cost	73,130	0
Liability related to sale of future royalties, non-current	126,656	403,913
Total noncurrent liabilities	290,203	521,226
Commitments and contingencies
Stockholders' equity (deficit):
Additional paid-in capital	1,577,904	1,501,800
Accumulated deficit	(1,490,651)	(1,567,532)
Total stockholders' equity (deficit)	87,291	(65,695)
Total liabilities and stockholders' equity (deficit)	502,587	514,491
Common Stock A
Stockholders' equity (deficit):
Common stock value	33	32
Common Stock B
Stockholders' equity (deficit):
Common stock value	$ 5	$ 5

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Common Stock A
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	33,331,586	31,762,052
Common stock, shares outstanding	33,331,586	31,762,052
Common Stock B
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	4,515,246	4,913,348
Common stock, shares outstanding	4,515,246	4,913,348

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues
Total revenues	$ 22,746	$ 762	$ 22,941	$ 1,677
Operating cost and expenses
Cost of products sold	846	0	846	0
Research and development	57,120	39,331	112,597	79,136
Selling, general and administrative	45,690	25,143	100,575	49,984
Litigation settlement	11,000		11,000
Depreciation	293	273	581	581
Total operating cost and expenses	114,949	64,747	225,599	129,701
Other income (expense), net	285,201	(9,571)	279,539	(19,343)
Income (loss) from operations	192,998	(73,556)	76,881	(147,367)
Benefit from (provision for) taxes on income	0	1	0	(30)
Net income (loss)	$ 192,998	$ (73,555)	$ 76,881	$ (147,397)
Net income (loss) per share - basic	$ 5.12	$ (2.02)	$ 2.06	$ (4.04)
Net income (loss) per share - diluted	$ 4.65	$ (2.02)	$ 1.89	$ (4.04)
Weighted-average number of common shares used in net income (loss) per share - basic	37,671,678	36,467,802	37,311,872	36,440,364
Weighted-average number of common shares used in net income (loss) per share - diluted	41,506,900	36,467,802	40,758,929	36,440,364
Product revenues, net
Revenues
Total revenues	$ 20,038	$ 0	$ 20,038	$ 0
License and milestone
Revenues
Total revenues	0	754	0	1,648
Other revenue
Revenues
Total revenues	$ 2,708	$ 8	$ 2,903	$ 29

Unaudited Consolidated Statem_2

Unaudited Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock A	Common Stock B	Common Stock Common Stock A	Common Stock Common Stock B	Additional Paid-In Capital	Total Accumulated Deficit
Balance, value at Dec. 31, 2021	$ 185,989			$ 31	$ 5	$ 1,441,584	$ (1,255,631)
Balance, shares at Dec. 31, 2021				31,478,197	4,919,249
Net income (loss)	(147,397)						(147,397)
Compensation expense related to stock-based compensation	29,308					29,308
Exercise of options, value	735					735
Exercise of options, shares				2,336	30,024
Issuance of common stock upon vesting of restricted stock units, value	1			$ 1
Issuance of common stock upon vesting of restricted stock units, shares				52,070	4,366
Issuance of Common Stock, shares				40,291	(40,291)
Balance, value at Jun. 30, 2022	68,636			$ 32	$ 5	1,471,627	(1,403,028)
Balance, shares at Jun. 30, 2022				31,572,894	4,913,348
Balance, value at Mar. 31, 2022	127,785			$ 31	$ 5	1,457,222	(1,329,473)
Balance, shares at Mar. 31, 2022				31,525,514	4,919,249
Net income (loss)	(73,555)						(73,555)
Compensation expense related to stock-based compensation	13,864					13,864
Exercise of options, value	541					541
Exercise of options, shares				2,336	20,649
Issuance of common stock upon vesting of restricted stock units, value	1			$ 1
Issuance of common stock upon vesting of restricted stock units, shares				16,963	1,531
Conversion of common stock Class B to Class A, shares				28,081	(28,081)
Balance, value at Jun. 30, 2022	68,636			$ 32	$ 5	1,471,627	(1,403,028)
Balance, shares at Jun. 30, 2022				31,572,894	4,913,348
Balance, value at Dec. 31, 2022	(65,695)			$ 32	$ 5	1,501,800	(1,567,532)
Balance, shares at Dec. 31, 2022		31,762,052	4,913,348	31,762,052	4,913,348
Net income (loss)	76,881						76,881
Compensation expense related to stock-based compensation	58,420					58,420
Exercise of options, value	$ 16,888					16,888
Exercise of options, shares	655,595			228,110	427,485
Issuance of common stock upon vesting of restricted stock units, shares				439,801	53,388
Issuance of common stock under employee stock purchase plan, value	$ 796					796
Issuance of common stock under employee stock purchase plan, shares				22,648
Conversion of common stock Class B to Class A, value	1			$ 1
Conversion of common stock Class B to Class A, shares				878,975	(878,975)
Balance, value at Jun. 30, 2023	87,291			$ 33	$ 5	1,577,904	(1,490,651)
Balance, shares at Jun. 30, 2023		33,331,586	4,515,246	33,331,586	4,515,246
Balance, value at Mar. 31, 2023	(130,673)			$ 33	$ 5	1,552,938	(1,683,649)
Balance, shares at Mar. 31, 2023				33,010,817	4,516,934
Net income (loss)	192,998						192,998
Compensation expense related to stock-based compensation	20,363					20,363
Exercise of options, value	3,807					3,807
Exercise of options, shares				86,385	49,985
Issuance of common stock upon vesting of restricted stock units, shares				109,232	50,831
Issuance of common stock under employee stock purchase plan, value	796					796
Issuance of common stock under employee stock purchase plan, shares				22,648
Conversion of common stock Class B to Class A, shares				102,504	(102,504)
Balance, value at Jun. 30, 2023	$ 87,291			$ 33	$ 5	$ 1,577,904	$ (1,490,651)
Balance, shares at Jun. 30, 2023		33,331,586	4,515,246	33,331,586	4,515,246

Unaudited Consolidated Statem_3

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities
Net income (loss)	$ 76,881	$ (147,397)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation	581	581
Amortization of debt issuance costs	49	0
Non-cash interest expense on liability related to sale of future royalty	17,678	20,148
Non-cash gain on extinguishment of liability	(289,286)	0
Stock-based compensation expense	58,420	29,308
Amortization of discount (premium) on marketable debt securities	(4,633)	(347)
Changes in operating assets and liabilities:
Accounts receivables, net	(22,662)	0
Prepaid expenses, other current assets and other assets	(35,053)	(3,496)
Inventory	(13,280)	0
Accounts payable	1,009	(5,756)
Accrued expenses, other current and long-term liabilities	58,850	(5,133)
Operating lease obligations	69	6,433
Deferred revenue	0	(1,648)
Net cash used in operating activities	(151,377)	(107,307)
Investing activities
Purchases of property and equipment	(415)	(2,562)
Purchases of marketable securities	(303,956)	(333,970)
Maturity from marketable securities	372,420	0
Net cash provided by (used in) investing activities	68,049	(336,532)
Financing activities
Exercise of options	16,888	735
Employee stock purchase plan	796	0
Payment of debt issuance costs	(389)	0
Proceeds from long-term debt	72,564	0
Net cash provided by financing activities	89,859	735
Net increase (decrease) in cash and cash equivalents	6,531	(443,104)
Cash and cash equivalents at beginning of year	42,312	590,258
Cash and cash equivalents at end of period	48,843	147,154
Supplemental disclosures
Cash paid for interest	1,312	0
Non-cash activity:
Reduction of right-of-use assets and liability due to lease modification	23,357	4,885
Purchases of equipment in accounts payable, accrued expenses, other current, and long-term liabilities	368	55
Accrued for debt issuance costs	$ 210	$ 0

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	1. Description of Business Reata Pharmaceuticals, Inc.’s (Reata, the Company, we, us, or our) mission is to identify, develop, and commercialize innovative therapies that change patients’ lives for the better. The Company focuses on small-molecule therapeutics with novel mechanisms of action for the treatment of severe, life-threatening diseases with few or no approved therapies. Our first product, SKYCLARYS® (omaveloxolone), is the first and only drug approved by U.S. Food and Drug Administration (FDA) for the treatment of Friedreich's ataxia (FA) in adults and adolescents aged 16 years and older. We have submitted a Marketing Authorization Application (MAA) for omaveloxolone for the treatment of FA to the European Medicines Agency (EMA) in Europe and the application is under review. We are also developing cemdomespib (previously referred to as RTA 901), the lead product candidate from our Hsp90 modulator program, in neurological indications . Omaveloxolone activates the transcription factor Nrf2 to normalize mitochondrial function, restore redox balance, and resolve inflammation, in nonclinical models. Because mitochondrial dysfunction, oxidative stress, and inflammation are features of many diseases, we believe our Nrf2 activators have many potential clinical applications. We possess exclusive, worldwide rights to develop, manufacture, and commercialize omaveloxolone. We are the exclusive licensee of cemdomespib and have worldwide commercial rights. The Company’s consolidated financial statements include the accounts of all majority-owned subsidiaries. Accordingly, the Company’s share of net earnings and losses from these subsidiaries is included in the consolidated statements of operations. Intercompany profits, transactions, and balances have been eliminated in consolidation. Transaction with Biogen On July 28, the Company entered into an Agreement and Plan of Merger (the Merger Agreement), with Biogen Inc., a Delaware corporation (Biogen) and River Acquisition, Inc, a Delaware corporation and a wholly-owned subsidiary of Biogen (Merger Sub), pursuant which, and upon the terms and subject to the conditions set forth therein, Merger Sub will be merged with and into Reata (the Merger), with Reata surviving the Merger as a wholly-owned subsidiary of Biogen. The Merger Agreement provides that, subject to the terms and conditions of the Merger Agreement, Biogen would acquire the Company. If the transaction is completed, the Company's stockholders will receive $ 172.50 in cash, without interest, and subject to applicable withholding taxes for each share of the Company's common stock they hold as of the effective date. See Note 17, Subsequent Events , to our condensed consolidated financial statements for further details.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The consolidated balance sheet at December 31, 2022, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the annual consolidated financial statements and footnotes thereto of the Company. S ummary of Significant Accounting Policies The significant accounting policies used in the preparation of these condensed consolidated financial statements for the six months ended June 30, 2023 are consistent with those discussed in Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, with the exception of the following. Inventory We capitalize inventory costs related to products to be sold in the ordinary course of business. We make a determination of capitalizing inventory costs for a product based on, among other factors, status of regulatory approval, information regarding safety, efficacy and expectations relating to commercial sales and recoverability of costs. Pre-launch inventory is held as an asset when there is a high probability of regulatory approval for the product and when there are probable future economic profits. Inventory may consist of raw materials, work in process and finished goods. We began capitalizing inventory related to SKYCLARYS in the quarter ended March 31, 2023, as we received approval of SKYCLARYS in February 2023, and the related costs were expected to be recoverable through the commercialization of SKYCLARYS. Prior to the start of capitalizing inventory, costs for commercially saleable product and materials were incurred and included in research and development expenses, of which $ 38.6 million was remaining at June 30, 2023. As a result, cost of product revenues related to SKYCLARYS will initially reflect a lower average per unit cost of materials over the next 35-40 months as previously expensed inventory is utilized for commercial production and sold to customers. Inventories are valued under the specific identification method and are stated at the lower of cost or net realizable value. We measure inventory based on lot-based costing where inventory is valued at the purchase price for the specific lot. We assess recoverability of inventory each reporting period to determine any write down to net realizable value resulting from excess or obsolete inventories. Revenue Recognition We recognize revenue when control of promised goods or services is transferred to a customer at an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To determine revenue recognition, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step model to contracts when collectability of the consideration to which we are entitled in exchange for the goods or services we transfer to the customer is determined to be probable. At contract inception, once the contract is determined to be within the scope of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, or ASC 606, we assess whether the goods or services promised within each contract are distinct and, therefore, represent a separate performance obligation. Goods and services that are determined not to be distinct are combined with other promised goods and services until a distinct bundle is identified. We then allocate the transaction price (the amount of consideration we expect to be entitled to from a customer in exchange for the promised goods or services) to each performance obligation and recognize the associated revenue when (or as) each performance obligation is satisfied. Our estimate of the transaction price for each contract includes all variable consideration to which we expect to be entitled. Amounts are recorded as accounts receivable when our right to consideration is unconditional. We do not assess whether a contract has a significant financing component if the expectation at contract inception is that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. We expense incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that we would have recognized is one year or less or the amount is immaterial. Product Revenues, Net Our net product revenues are recognized, net of variable consideration related to certain allowances and accruals, at the time the customer obtains control of our product. We use the expected value method, which is the sum of probability-weighted amounts in a range of possible consideration amounts, or the most likely amount method, which is the single most likely amount in a range of possible considerations, to estimate variable consideration related to our product sales. We record reserves, based on contractual terms, for components related to product sold during the reporting period, as well as our estimate of product that remains in the distribution channel inventory at the end of the reporting period that we expect will be sold to qualified healthcare providers. On a quarterly basis, we update our estimates and record any needed adjustments in the period we identify the adjustments. The following are the components of variable consideration related to product revenues: Trade Discounts and Allowances . We provide customary invoice discounts on product sales to our customers for prompt payment and we pay fees for distribution services, such as fees for certain data that customers provide to us. We estimate our customers will earn these discounts and fees and deduct these discounts and fees in full from gross product revenues and accounts receivable at the time we recognize the related revenues. Product Returns. We provide for returns in accordance with our “Return Goods Policy” defined within each customer agreement. Chargebacks. We estimate obligations resulting from contractual commitments with the government and other entities to sell products to qualified healthcare providers at prices lower than the list prices charged to the customer who directly purchases from us. The customer charges us for the difference between what it pays to us for the product and the selling price to the qualified healthcare providers. Rebates. We are subject to discount obligations under government programs, including Medicaid in the United States and similar programs in certain other countries, including countries in which we are accruing for estimated rebates because final pricing has not yet been negotiated. We are also subject to potential rebates in connection with our value-based agreements with certain commercial payors. We record reserves for rebates in the same period the related product revenue is recognized, resulting in a reduction of product revenues and a current liability that is included in accrued expenses on our consolidated balance sheet. Our estimate for rebates is based on statutory discount rates, expected utilization or an estimated number of patients on treatment, as applicable. Co-payment Assistance. We offer co-payment assistance to patients with commercial insurance that have coverage and reside in states that allow co-payment assistance. We estimate the average co-payment assistance amounts for our products based on expected customer demographics and record any such amounts within accrued expenses on our consolidated balance sheet. Concentration of Credit Risk and Major Customers We sell our products through exclusive arrangements with a specialty distributor and specialty pharmacy, both of which are part of McKesson Corporation. As a result, for the three-month period ended June 30, 2023, one individual customer accounted for substantially all of our net product revenue.

Product Revenues, Net

Product Revenues, Net	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Product Revenues, Net	3. Product Revenues, Net Net product revenue is recognized when product is shipped and title passes to the customer, typically at time of delivery. At the time of sale, estimates for various revenue allowances are recorded based on historical trends and judgmental estimates. Trade discounts and allowances are recorded as a reduction of accounts receivables. chargebacks, co-payment assistance, Medicare, Medicaid and other rebates are reflected as a component of other current liabilities. To date, the Company’s only source of product revenue has been from the sales of SKYCLARYS, which it began shipping to customers in the United States in June of 2023. Net product revenues were $ 20.0 million for the three months ended June 30, 2023. The following table presents the balance of our receivables related to our net product revenues: Six Months Ended June 30 2023 (in thousands) Receivables included in "Accounts receivables, net" $ 22,662

Collaboration Agreements

Collaboration Agreements	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaboration Agreements	4. Collaboration Agreements Subsequent to the 2019 reacquisition of certain rights originally licensed to AbbVie Inc. (AbbVie) (see “ AbbVie ,” below), the Company’s collaboration revenue and deferred revenue have been generated primarily from licensing fees and reimbursements for expenses received under our exclusive license with Kyowa Kirin (the Kyowa Kirin Agreement). Kyowa Kirin In December 2009, the Company entered into an exclusive license with Kyowa Kirin to develop and commercialize bardoxolone in the licensed territory. The terms of the agreement include payment to the Company of a nonrefundable, up-front license fee of $ 35.0 million and additional development and commercial milestone payments. As of June 30, 2023, the Company has received $ 50.0 million related to regulatory development milestone payments from Kyowa Kirin. The Company regularly evaluates its remaining performance obligation under the Kyowa Kirin Agreement. Accordingly, revenue may fluctuate from period to period due to changes to its estimated performance obligation period and variable considerations. The Company began recognizing revenue related to the up-front payment upon execution of the Kyowa Kirin Agreement as the Company’s period of performance began. In March 2021, the Company’s performance obligation period under the Kyowa Kirin Agreement was extended to and completed in June 2022. On July 27, 2021, Kyowa Kirin submitted a New Drug Application (NDA) in Japan to the Ministry of Health, Labour and Welfare for bardoxolone for improvement of renal function in patients with Alport syndrome. Based on this submission, the Company earned a $ 5.0 million milestone payment, variable consideration previously considered constrained, under the Kyowa Kirin Agreement. As a result, the Company recorded $ 4.7 million in collaboration revenue, a cumulative catch-up for the portion of this milestone that was satisfied in prior periods, and $ 0.3 million in deferred revenue that was recognized over the remaining performance obligation period. Under the Kyowa Kirin Agreement, we will not recognize any deferred revenue subsequent to June 30, 2022. In May 2023, Kyowa Kirin reported results from the AYAME study, a Phase 3 trial which was conducted in Japan studying the safety and efficacy of bardoxolone in patients with diabetic kidney disease. Based on the results of AYAME and its potential regulatory impact, we and Kyowa Kirin have decided to discontinue our bardoxolone chronic kidney disease (CKD) programs, including the FALCON and EAGLE clinical trials. We expect to substantially complete site close-out activities related to FALCON and EAGLE by October 2023. AbbVie In September 2010, the Company entered into a license agreement with AbbVie (the AbbVie License Agreement) for an exclusive license to develop and commercialize bardoxolone in the Licensee Territory (as defined in the AbbVie License Agreement). In December 2011, the Company entered into a collaboration agreement with AbbVie (the Collaboration Agreement) to jointly research, develop, and commercialize the Company’s portfolio of second and later generation oral Nrf2 activators. In October 2019, the Company and AbbVie entered into an Amended and Restated License Agreement (the Reacquisition Agreement) pursuant to which the Company reacquired the development, manufacturing, and commercialization rights concerning its proprietary Nrf2 activator product platform originally licensed to AbbVie in the AbbVie License Agreement and the Collaboration Agreement . In exchange for such rights, the Company agreed to pay AbbVie $ 330.0 million, all of which was subsequently paid. Additionally, the Company will pay AbbVie an escalating, low single-digit royalty on worldwide net sales, on a product-by-product basis, of omaveloxolone and certain next-generation Nrf2 activators. The execution of the Reacquisition Agreement ended our performance obligations under the Collaboration Agreement. As of December 31, 2021, the Company has fully satisfied its payable to AbbVie, therefore no interest expense was recognized thereafter.

Term Loan

Term Loan	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Term Loan	8. Term Loan The Company entered into a loan agreement in May 2023 (the Loan Agreement) with BioPharma Credit, PLC, (as the Collateral Agent), BPCR Limited Partnership (as a Lender), and Biopharma Credit Investments V (Master) LP, acting by its general partner, BioPharma Credit Investments V GP LLC (as a Lender) that provides for a senior secured term loan facility of up to $ 275.0 million to be funded in four committed tranches: (i) Tranche A Loan in an aggregate principal amount of $ 75.0 million (the Tranche A Loan) that was funded on May 12, 2023 (the Tranche A Closing Date); (ii) a Tranche B Loan in an aggregate principal amount of $ 50.0 million (the Tranche B Loan) to be funded, subject to certain conditions including the first commercial sale in the US of our omaveloxolone product; (iii) a Tranche C Loan in an aggregate principal amount of $ 75.0 million (the Tranche C Loan) to be funded, subject to certain conditions including achieving a trailing twelve-month net product sales and royalty revenues milestone ranging from $ 40.0 million to $ 55.0 million based on the date of the first commercial sale of our omaveloxolone product; and (iv) a Tranche D Loan in an aggregate principal amount of $ 75.0 million (the Tranche D Loan and, together with the Tranche A Loan, the Tranche B Loan, and the Tranche C Loan, the Term Loans) to be funded at the Company’s option, subject to certain conditions including achieving a trailing twelve-month net product sales and royalty revenues milestone of $ 100.0 million for any trailing twelve month period ending on or prior to December 31, 2024. See Note 17, Subsequent Events , to our condensed consolidated financial statements for update on funding of Tranche B. The Term Loans mature on either (i) the 5th anniversary of the Tranche A Closing Date (the “Maturity Date”); or (ii) if we do not satisfy the Tranche B Loan borrowing conditions on or prior to December 31, 2023, the Maturity Date shall be December 31, 2023 . Repayment of outstanding principal of the Term Loans will be made in eight equal quarterly payments of principal commencing on June 30, 2026; provided however, that if we achieve a trailing twelve-month net product sales and royalty revenues milestone of $ 250.0 million as of March 31, 2027, at our option, repayment of outstanding principal of the Term Loans will be made in four equal quarterly payments of principal commencing on June 30, 2027. The Term Loans bear interest at 7.50 % plus three-month SOFR per annum with a SOFR floor of 2.50 %. Interest is due and payable quarterly with the first payment due on June 30, 2023. The Company adopted the prospective method to account for future cash payments. Under the prospective method, the effective interest rate is not constant, and any change in the expected cash flows is recognized prospectively as an adjustment to the effective yield. Our obligations under the Loan Agreement are guaranteed on a full and unconditional basis by the Guarantors, consisting of our U.S. and certain of our foreign subsidiaries, and are secured by substantially all of the respective Credit Parties assets, including intellectual property, subject to certain exceptions. Pursuant to the Loan Agreement, and subject to certain restrictions, proceeds of the Term Loans are being used to fund the Company’s general corporate and working capital requirements. The Loan Agreement contains certain customary representations and warranties. In addition, the Loan Agreement includes affirmative covenants, such as the requirement to maintain a minimum net revenue commencing with the fiscal quarter ending December 31, 2023 through the fiscal quarter ending December 31, 2028 . Further, the Loan Agreement includes certain other affirmative covenants and negative covenants, including, covenants and restrictions that, among other things, restrict the Company’s ability to incur liens, incur additional indebtedness, make investments, engage in certain mergers and acquisitions or asset sales, and declare dividends or redeem or repurchase capital stock. The Loan Agreement also contains customary events of default, including among other things, the Company’s failure to make any principal or interest payments when due, the occurrence of certain bankruptcy or insolvency events or its breach of the covenants under the Loan Agreement. Upon the occurrence of an event of default, the Lenders may, among other things, accelerate the Company’s obligations under the Loan Agreement. A change of control of the Company triggers a mandatory prepayment of the Term Loans within fifteen days. As of June 30, 2023, the Company was in full compliance with these covenants and there were no events of default under the Term Loans. The Company has determined that the risk of subjective acceleration under the material adverse events clause is not probable and therefore has classified the outstanding principal in non-current liabilities based on scheduled principal payments. In connection with the closing of Tranche A, the Company incurred $ 3.0 million in debt discounts and issuance costs of which $ 1.5 million related to all the tranches of the Term Loans and was thus allocated pro rata between the funded and unfunded tranches. The debt discount and issuance costs allocated to Tranche A have been presented as a deduction to the Term Loan balance and are amortized into interest expense using the effective interest method. Until the unfunded Tranche B, Tranche C and Tranche D have been drawn, the associated debt issuance costs of $ 1.1 million have been recognized as assets. As of June 30, 2023, the total remaining unamortized debt discount and debt offering costs related to Tranche A of $ 1.9 million will be amortized using the effective interest rate over the remaining term of 4.9 years. The overall effective interest rate for Tranches A was 13.4 % as of June 30, 2023.

Other Current Liabilities

Other Current Liabilities	6 Months Ended
	Jun. 30, 2023
Other Liabilities Disclosure [Abstract]
Other Current Liabilities	5. Other Current Liabilities The following tables summarize our other current liabilities (in thousands), as of June 30, 2023: Six Months Ended June 30 2023 2022 (in thousands) Paid Time Off Accrual $ 4,953 $ 4,022 Bonus Accrual 6,813 12,160 Accrued Expenses 1 47,634 2,919 Other 12,591 5,166 Total other current liabilities $ 71,991 $ 24,267 1) See Note 17, Subsequent Events, to our condensed consolidated financial statements for update on bardoxolone securities litigation.

Liability Related to Sale of Fu

Liability Related to Sale of Future Royalties	6 Months Ended
	Jun. 30, 2023
Liability Related To Sale Of Future Royalties [Abstract]
Liability Related to Sale of Future Royalties	6. Liability Related to Sale of Future Royalties On June 24, 2020, the Company closed on the Development and Commercialization Funding Agreement with an affiliate of Blackstone Life Sciences, LLC (BXLS), which provided funding for the development and commercialization of bardoxolone for the treatment of CKD caused by Alport syndrome, autosomal dominant polycystic kidney disease (ADPKD), and certain other rare CKD indications in return for future royalties (the Development Agreement). The Development Agreement included a $ 300.0 million payment by an affiliate of BXLS in return for various percentage royalty payments on worldwide net sales of bardoxolone, once approved in the United States or certain specified European countries, by Reata and its licensees, other than Kyowa Kirin. The royalty percentage was initially to be in the mid-single digits and, in future years, could have varied between higher-mid single digit percentages to low-single digit percentages depending on various milestones, including indication approval dates, cumulative royalty payments, and cumulative net sales. Pursuant to the Development Agreement, we had granted BXLS a security interest in substantially all of our assets. After a bardoxolone product approval would have been obtained by the Company, the Company would have been obligated to make certain minimum cumulative payment amounts in 2025 through 2033, but only until BXLS had achieved a certain internal rate of return target. In addition, concurrent with the Development Agreement, the Company had entered into a common stock purchase agreement (the Purchase Agreement) with affiliates of BXLS to sell an aggregate of 340,793 shares of the Company’s Class A common stock, par value $ 0.001 per share (the Class A common stock), at $ 146.72 per share for a total of $ 50.0 million. The Company had concluded that there were two units of accounting for the consideration received, comprised of the liability related to the sale of future royalties and the common shares. The Company historically had allocated the $ 300.0 million from the Development Agreement and $ 50.0 million from the Purchase Agreement between the two units of accounting on a relative fair value basis at the time of the transaction. The Company allocated $ 294.5 million, which included $ 0.8 million in transaction costs incurred, in transaction consideration to the liability, and $ 55.5 million to the common shares. The Company determined the fair value of the common shares based on the closing stock price on June 24, 2020, the closing date of the Development Agreement. At inception, the effective interest rate under the Development Agreement, including transaction costs, was approximately 13.8 %. During the first quarter of 2022, the Company reassessed the expected royalty payments and lowered our previous estimate of future sales for which royalties will be paid. Accordingly, we had prospectively adjusted and recognized lower non-cash interest expense using a 10.9 % effective interest rate, as of March 31, 2023. On May 4, 2023, with the Company's discontinuation of bardoxolone development, the Company entered into an Amended and Restated Development and Commercialization Funding Agreement (the Amended Funding Agreement) with BXLS. The Amended Funding Agreement provides that all covenants in the Development and Commercialization Funding Agreement regarding commercialization of bardoxolone, restricting the incurrence of indebtedness, and restricting license and licensing transactions are removed and all prior security interests granted to BXLS are released. In addition, the Amended Funding Agreement provides for a low, single digit royalty payment to BXLS on net sales of omaveloxolone for FA. Pursuant to the Amended Funding Agreement, to secure our payment obligations to BXLS, (i) we have granted BXLS a security interest in a segregated deposit account and (ii), subject to certain limitations as set forth in the Amended Funding Agreement, have agreed to maintain in such account an initial balance and thereafter an amount equal to the aggregate amount of omaveloxolone royalty payments made for the immediately preceding two calendar quarter period. The Amended Funding Agreement also provides that, with respect to any change of control of the Company prior to January 1, 2028, we will pay to BXLS a change of control payment in an amount equal to (x) if the date of such change of control is prior to June 10, 2023, $ 375 million or (y) if the date of such change of control is on or after June 10, 2023, $ 300.0 million, or, in each case, potentially a lesser amount based on the sum of certain payments to BXLS, including the Omav Licensing Payments (as defined below), prior to the change of control. The Amended Funding Agreement also provides that, in the event that prior to the earlier of a change of control of the Company or January 1, 2028, we or one of our affiliates enters into certain material transactions with respect to commercialization of our omaveloxolone product in France, Germany, Italy, Spain, the United Kingdom or the United States (collectively, Omav Licensing Transactions), then, with respect to any payment received in connection with an Omav Licensing Transaction, we shall pay to BXLS an amount equal to a certain percentage of each such payment (the Omav Licensing Payments) until such time as (i) BXLS has received $ 300 million, or potentially a lesser amount based on the sum of certain payments previously made to BXLS, or (ii) BXLS has received a change of control payment. In connection with the Amended Funding Agreement, the Company recognized a $ 289.3 million gain on extinguishment of the historical liability related to the sale of future royalties and the recognition of the expected royalty payments of the new liability related to the sale of future royalties as of May 4, 2023. We are using a 12.6 % effective interest rate as of May 4, 2023 through June 30, 2023. The following table shows the activity within the liability related to sale of future royalties for the six months ended June 30, 2023: Liability Related to Sale of Future Royalties (in thousands) Balance at December 31, 2022 $ 404,634 Plus: Non-cash interest expense recognized between December 31, 2022 and May 4, 2023 15,237 Balance at May 4, 2023 prior to the Amended Funding Agreement 419,871 Less: Unamortized transaction costs as of May 4, 2023 ( 699 ) Carrying value at May 4, 2023, prior to the Amended Funding Agreement $ 419,172 Less: Net Gain on extinguishment of liability related to the sale of future royalties ( 289,286 ) Fair value of new liability related to sale of future royalties $ 129,886 Plus: Non-cash interest expense recognized between May 4, 2023 and June 30, 2023 2,420 Carrying value at June 30, 2023 $ 132,306 Liability related to sale of future royalties, current $ 5,650 Liability related to sale of future royalties, non-current $ 126,656

Inventory

Inventory	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventory	7. Inventory All of the Company’s inventories relate to the manufacturing of SKYCLARYS. The following table sets forth the Company’s inventories as of June 30, 2023: Six Months Ended June 30 2023 (in thousands) Raw materials $ 3,903 Work-in-process 8,875 Finished goods 502 Total inventory $ 13,280 Inventory, current $ 2,942 Inventory, noncurrent $ 10,338

Marketable Debt Securities

Marketable Debt Securities	6 Months Ended
	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Marketable Debt Securities	9. Marketable Debt Securities During the quarter ended June 30, 2023, the Company invested its excess cash balances in marketable debt securities and, at each balance sheet date presented, the Company classified all of its investments in debt securities as held-to-maturity and as current assets as they mature within 12 months and represent the investment of funds available for current operations. The Company considers all available evidence to evaluate if an impairment loss exists, and if so, marks the investment to market through a charge to the Company’s consolidated statements of operations and comprehensive loss. The Company did not record any impairment charges related to our marketable debt securities during the six months ended June 30, 2023. The following tables summarize our marketable debt securities (in thousands), as of June 30, 2023: Amortized Gross Gross Fair Value (1) Marketable debt securities: U.S. treasury securities 281,371 37 ( 15 ) 281,393 Total $ 281,371 $ 37 $ ( 15 ) $ 281,393 (1) The fair value was determined using the three-tier fair value hierarchy for disclosure in accordance with Accounting Standards Codification 820-10. The Company’s investments in marketable securities are classified within Level 2 of the fair value hierarchy. The Company uses quoted prices for similar assets sourced from certain third-party pricing services. The third-party pricing services generally utilize industry standard valuation models for which all significant inputs are observable, either directly or indirectly, to estimate the price or fair value of the securities. The primary input generally includes reported trades of or quotes on the same or similar securities. The Company does not make additional judgments or assumptions made to the pricing data sourced from the third-party pricing services.

Other Income (Expense), Net

Other Income (Expense), Net	6 Months Ended
	Jun. 30, 2023
Other Income and Expenses [Abstract]
Other Income (Expense), Net	. Other Income (Expense), Net Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 (in thousands) Other income (expense), net Investment income $ 3,992 $ 786 $ 7,426 $ 918 Interest Expense ( 1,312 ) — ( 1,312 ) — Non-cash interest expense on liability ( 6,661 ) ( 10,277 ) ( 17,678 ) ( 20,148 ) Net gain on extinguishment of liability 289,286 — 289,286 — Other income (expense) ( 104 ) ( 80 ) 1,817 ( 113 ) Total other income (expense), net $ 285,201 $ ( 9,571 ) $ 279,539 $ ( 19,343 ) Investment Income Investment income consists primarily of interest generated from our cash and cash equivalents and marketable debt securities. Interest Expense Interest expense consists primarily of interest on our borrowings under our loan agreement. Non-Cash Interest Expense on Liability Related to Sale of Future Royalties Non-cash interest expense consists of recognition of interest expense based on the Company’s current estimate of future royalties expensed to be paid over the estimated term of the Development Agreement. Net Gain on Extinguishment of Liability Net gain on extinguishment of liability consists of the between the net carrying value of the old liability related to sale of future royalties and the fair value of the new liability related to sale of future royalties in the Income Statement. See Note 6, Liability Related to Sale of Future Royaltie s, to our condensed consolidated financial statements for detail on the gain on extinguishment of liability. Other Income (Expense) Other income (expense) consists primarily of gains and losses on foreign currency exchange, sales of assets, lease termination and employee retention credit. In the six months ended June 30, 2023, other income included $ 2.0 million, related to the employee retention credit (ERC) under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) .

Leases

Leases	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	11. Leases The Company headquarters is located in Plano, Texas, where it leases approximately 122,000 square feet of office space. The Company leases additional space located in Irving, Texas, where it leases approximately 34,890 square feet of office and laboratory space. On February 4, 2022, the Company extended the lease for the office and laboratory space in Irving, Texas, to October 31, 2024 , with an option to extend for a fixed twelve-month period. On March 8, 2022, the Company extended the lease for the Plano office to December 31, 2023 . The Company has an additional lease of a single-tenant, build-to-suit building of approximately 327,400 square feet of office and laboratory space located in Plano, Texas with an initial lease term of 16 years. The Company entered into the lease agreement on October 15, 2019 (the 2019 Lease Agreement), and at the Company’s option , it may renew the lease for two consecutive five-year renewal periods or one ten-year renewal period . On December 15, 2021, the Company obtained control of the space, and, accordingly, the Company recorded related right-of-use assets and the lease liabilities during the fourth quarter of 2021. The Company recorded the liability associated with the 2019 Lease Agreement at the present value of the lease payments not yet paid, using the discount rate as of the commencement date. As the discount rate implicit in the 2019 Lease Agreement was not readily determinable, the Company utilized its incremental borrowing rate at that time. The renewals are not assumed in the determination of the lease term, since they are not deemed to be reasonably assured at the inception of the lease. At inception, the Company recorded $ 124.5 million as a right-of-use asset, which represented a lease liability of $ 133.2 million, net of $ 8.7 million of lease incentives recognized. On June 19, 2023, the Company amended the 2019 Lease Agreement, which increases the tenant allowance (lease incentives) by up to $ 5.1 million. As consideration for the additional tenant improvement allowance and related payment terms, the Company agreed to an increase in the base rent than set forth in the original lease. As a result of the lease modification, the Company remeasured its lease liability from $ 113.3 million to $ 89.9 million in accordance with Accounting Standards Update 842, Lessors—Certain Leases with Variable Lease Payments, or ASC 842, a reduction of $ 23.4 million with a corresponding reduction to our right of use asset, using our incremental borrowing rate of 12.72 % at the time of the lease modification. For the six months ended June 30, 2023, the Company paid $ 7.7 million for amounts included in the measurement of lease liabilities. During the three and six months ended June 30, 2023, the Company recorded total rent expense of $ 4.4 million and $ 8.7 million, respectively. During the three and six months ended June 30, 2022, the Company recorded total rent expense of $ 4.3 million and $ 8.6 million, respectively. Supplemental balance sheet and other information related to the Company’s operating leases is as follows: As of June 30, 2023 2022 Weighted-average remaining lease term (in years) 14.8 15.6 Weighted-average discount rate 12.6 % 6.5 % Maturities of lease liabilities by fiscal year for the Company’s operating leases: As of June 30, 2023 (in thousands) 2023 (remaining six months) (1) $ 1,984 2024 7,696 2025 14,279 2026 14,558 2027 14,842 Thereafter 174,393 Total lease payments (1) 227,752 Less: Imputed interest ( 134,879 ) Present value of lease liabilities $ 92,873 (1) Above table includes one year rent abatement applied beginning in June 2023 following FDA approval of SKYCLARYS

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes The following table summarizes income tax benefit expense and effective income tax rate: Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 (in thousands, except for percentage data) Benefit from (provision for) taxes on income $ — $ 1 $ — $ ( 30 ) Effective income tax rate 0.0 % 0.0 % 0.0 % 0.0 % The Company’s effective tax rate for the three and six months ended June 30, 2023, varies with the statutory rate primarily due to changes in the valuation allowance related to certain deferred tax assets generated or utilized in the applicable period. Deferred tax assets are regularly reviewed for recoverability by jurisdiction and valuation allowances are established based on historical and projected future taxable losses and the expected timing of the reversals of existing temporary differences. The Company has recorded valuation allowances against the majority of its deferred tax assets as of June 30, 2023 , and the Company expects to maintain these valuation allowances until there is sufficient evidence that future earnings can be achieved, which is uncertain at this time.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	13 . Stock-Based Compensation In 2022, our stockholders approved the Reata Pharmaceuticals, Inc. 2022 Employee Stock Purchase Plan (ESPP), pursuant to which 500,000 shares of common stock were authorized for issuance. Under the ESPP, each offering period is twelve months, with two six-month purchase periods. At the end of each purchase period the employees may purchase shares of common stock through payroll deductions made over the term of the purchase period. The per-share purchase price at the end of each purchase period is equal to the lesser of 85 % of the closing price of the Company’s common stock at the beginning of the offering period or the purchase date. As of June 30, 2023 , the Company has issued 22,648 shares of Class A common stock in relation to the ESPP and received $ 0.8 million in cash related to the ESPP plan. The Company recorded approximatel y $ 0.3 million and $ 0.6 million, respectively in compensation expense related to the ESPP during the three and six months ended June 30, 2023. The following table summarizes time-based and performance-based stock compensation expense reflected in the consolidated statements of operations: Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 (in thousands) Research and development $ 8,530 $ 6,344 $ 22,800 $ 13,951 Selling, general and administrative 11,833 7,520 35,620 15,357 Total stock compensation expense $ 20,363 $ 13,864 $ 58,420 $ 29,308 Restricted Stock Units (RSUs) The following table summarizes RSUs as of June 30, 2023, and changes during the six months ended June 30, 2023, under the Second Amended and Restated Long Term Incentive Plan (LTIP Plan): Number of Weighted-Average Outstanding at January 1, 2023 1,151,656 $ 45.45 Granted 526,509 47.89 Vested ( 509,197 ) 38.23 Forfeited ( 27,421 ) 43.34 Outstanding at June 30, 2023 1,141,547 $ 49.84 As of June 30, 2023, total unrecognized compensation expense related to RSU and performance-based RSU awards that were deemed probable of vesting was approximately $ 41.7 million, which excludes 37,750 shares of unvested performance-based RSUs that were deemed not probable of vesting totaling unrecognized stock-based compensation expense of $ 4.6 million. Stock Options The following table summarizes stock option activity as of June 30, 2023, and changes during the six months ended June 30, 2023, under the LTIP Plan and standalone option agreements: Number of Weighted- Outstanding at January 1, 2023 6,009,199 $ 65.92 Granted 1,981,191 43.50 Exercised ( 655,595 ) 25.94 Forfeited ( 292,835 ) 166.36 Expired ( 72,848 ) 139.66 Outstanding at June 30, 2023 6,969,112 $ 58.32 Exercisable at June 30, 2023 3,696,610 $ 63.80 As of June 30, 2023, total unrecognized compensation expense related to stock options and performance-based stock options that were deemed probable of vesting was approximately $ 91.6 million, which excludes 172,500 shares of unvested performance-based stock options that were deemed not probable of vesting totaling unrecognized stock-based compensation expense of $ 13.2 million. The total intrinsic value of all outstanding options and exercisable options as of June 30, 2023 was $ 366.3 million and $ 186.8 million, respectively.

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Employee Benefit Plans	14. Employee Benefit Plans In 2010, we adopted an Employee Investment Plan, qualified under Section 401(k) of the Internal Revenue Code, which is a retirement savings plan covering substantially all of our U.S. employees (the Plan). The Plan is administered under the “safe harbor” provision of ERISA. Under the Plan, an eligible employee may elect to contribute a percentage of their salary on a pre-tax basis, subject to federal statutory limitations. Beginning in January 2019, the Company implemented a discretionary employer matching contribution of $ 1.00 for every $ 1.00 contributed by a participating employee up to $ 7,000 annually in 2023 and 2022, which such matching contributions become fully vested after four years of service. The Company recorded expense of $ 0.5 million and $ 0.3 million for the three months ended June 30, 2023 and 2022, respectively, and $ 1.9 million and $ 1.6 million for the six months ended June 30, 2023 and 2022, respectively, which includes the Company’s contributions and administrative costs.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	15. Commitments and Contingencies Litigation From time to time, the Company is a party to legal proceedings in the course of its business, including the matters described below. The outcome of any such legal proceedings, regardless of the merits, is inherently uncertain. In addition, litigation and related matters are costly and may divert the attention of our management and other resources that would otherwise be engaged in other activities. If the Company were unable to prevail in any such legal proceedings, its business, results of operations, liquidity and financial condition could be adversely affected. The Company recognizes accruals for litigations to the extent that it can conclude that a loss is both probable and reasonably estimable and recognizes legal expenses as incurred. Bardoxolone Securities Litigation In late 2021 and early 2022, certain putative stockholders of the Company filed complaints in the United States District Court for the Eastern District of Texas alleging violations of the federal securities laws against the Company and certain of its executives, including its Chief Executive Officer; its Chief Operating Officer, Chief Financial Officer, and President; and its Chief Innovation Officer (in one of the suits). On April 22, 2022, the suits were consolidated, and a lead plaintiff was appointed. On June 21, 2022, the lead plaintiff filed a complaint against the Company, the aforementioned executives, certain current and former member of the Company’s Board of Directors, and underwriters in connection with secondary offerings of Company stock in 2019 and 2020. The complaint alleges, among other things, that the Company made false and misleading statements regarding the sufficiency of the Phase 2 and Phase 3 CARDINAL studies to support an NDA for bardoxolone in the treatment of CKD caused by Alport syndrome, and the Company’s interactions with the FDA concerning potential approval for bardoxolone. The complaint asserts claims under the Securities Act of 1933 and the Securities Exchange Act of 1934 (Exchange Act). The plaintiffs seek, among other things, a class action designation, an award of damages, and costs and expenses, including attorney fees and expert fees. The Company believes that the allegations contained in the complaint are without merit and intends to defend the case. The Company cannot predict at this point the length of time that this action will be ongoing or the liability, if any, which may arise therefrom. Indemnifications Accounting Standards Codification 460, Guarantees , requires that, upon issuance of a guarantee, the guarantor must recognize a liability for the fair value of the obligations it assumes under that guarantee. As permitted under Delaware law and in accordance with the Company’s bylaws, officers and directors are indemnified for certain events or occurrences, subject to certain limits, while the officer or director is or was serving in such capacity. The maximum amount of potential future indemnification is unlimited; however, the Company has obtained director and officer insurance that limits its exposure and may enable recoverability of a portion of any future amounts paid. The Company believes the fair value for these indemnification obligations is minimal. Accordingly, the Company has no t recognized any liabilities relating to these obligations as of June 30, 2023 . The Company has certain agreements with licensors, licensees, collaborators, and vendors that contain indemnification provisions. In such provisions, the Company typically agrees to indemnify the licensor, licensee, collaborator, or vendor against certain types of third-party claims. The Company accrues for known indemnification issues when a loss is probable and can be reasonably estimated. There were no accruals for expenses related to indemnification issues for any period presented.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Net Income Per Share	16. Net Income Per Share The computation of basic and diluted net loss income per share attributable to stockholders of the Company is summarized in the following table (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 Numerator Net income (loss) $ 192,998 $ ( 73,555 ) $ 76,881 $ ( 147,397 ) Denominator Weighted-average number of common shares 37,671,678 36,467,802 37,311,872 36,440,364 Dilutive potential common shares: Employee stock options 3,435,527 — 2,953,652 — RSUs 370,262 — 457,086 — Employee stock purchase plan 29,433 — 36,319 — Weighted-average number of common shares 41,506,900 36,467,802 40,758,929 36,440,364 Net income (loss) per share — basic $ 5.12 $ ( 2.02 ) $ 2.06 $ ( 4.04 ) Net income (loss) per share — diluted $ 4.65 $ ( 2.02 ) $ 1.89 $ ( 4.04 ) The number of weighted average options and RSUs that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive represented 4,304,870 a nd 6,896,379 shares for the three months ended June 30, 2023 and 2022, respectively. The number of weighted average options and RSUs that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive represented 4,699,922 and 6,896,379 shares for the six months ended June 30, 2023 and 2022, respectively.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	17. Subsequent Events Term Loan On July 10, 2023, the Company closed the second Tranche (the Tranche B Loan) of $ 50.0 million under the Loan Agreement. Pursuant to the terms of the Loan Agreement, the closing and funding of the Tranche B Loan occurred after the FDA’s approval of the Company's Prior Approval Supplement (PAS) to update the drug substance specification for SKYCLARYS. Transaction with Biogen On July 28, 2023, the Company entered into the Merger Agreement with Biogen and Merger Sub, pursuant to which, and on the terms and subject to the conditions thereof, Merger Sub will merge with and into the Company, with the Company surviving as a wholly-owned subsidiary of Biogen. Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger (the Effective Time), each share of Class A common stock of the Company issued and outstanding immediately prior to the Effective Time and each share of Class B common stock, par value $ 0.001 per share, of the Company (the Class B common stock) issued and outstanding immediately prior to the Effective Time (in each case except for (i) shares of our Class A common stock and Class B common stock owned by Biogen, Merger Sub or the Company, or by any direct or indirect wholly-owned subsidiary of Biogen, Merger Sub or the Company, in each case, immediately prior to the Effective Time; and (ii) any shares of our Class A common stock and Class B common stock with respect to which statutory rights of appraisal have been properly and validly demanded) will be automatically canceled and converted into the right to receive $ 172.50 in cash, without interest and subject to any applicable withholding taxes (the Merger Consideration). In addition, effective as of immediately prior to the Effective Time, (i) each outstanding stock option of the Company, whether vested or unvested, will be automatically canceled and converted into the right to receive an amount in cash, without interest, equal to the product of (A) the number of shares of our Class A common stock and Class B common stock underlying such option immediately prior to the Effective Time multiplied by (B) the amount, if any, by which the Merger Consideration exceeds the exercise price per share of such option, and (ii) each outstanding RSU will be automatically canceled and converted into the right to receive an amount in cash, without interest, equal to the product of (A) the number of shares of our Class A common stock and Class B common stock underlying such RSU immediately prior to the Effective Time multiplied by (B) the Merger Consideration, in each case, subject to any applicable withholding taxes. Each of Biogen, Merger Sub and the Company have made customary representations, warranties and covenants in the Merger Agreement, including, among others, covenants to use their respective reasonable best efforts to take, or cause to be taken, all actions that are necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the Merger and each of the other transactions contemplated by the Merger Agreement, including using reasonable best efforts to cause each of the conditions to the Merger to be satisfied as promptly as practicable after the date of the Merger Agreement. The Merger Agreement also contains certain termination rights in favor of each of the Company and Biogen. If the Merger Agreement is terminated under specified circumstances, the Company will be required to pay Biogen a termination fee of $ 264.0 million. The Merger Agreement also provides that, in connection with the termination of the Merger Agreement under specified circumstances including antitrust related circumstances, Biogen will be required to pay the Company a termination fee of $ 301.0 million. Bardoxolone Securities Litigation On July 31, 2023, we reached an agreement in principle to resolve the claims in the securities lawsuit. Under the proposed sett lement, we agreed to make a one-time payment of $ 45.0 million. As a result, we recorded a legal settlement expense of $ 11.0 million within litigation settlement on our consolidated statements of operations in the second quarter of 2023 and an accrued liability of $ 45.0 million for this settlement on our consolidated balance sheets, along with an insurance receivable of $ 34.0 million for the portion that will be reimbursed under the Company's insurance policy, disclosed under Prepaid expenses and other current assets on our consolidated balance sheets. The proposed settlement is subject to the parties finalizing a stipulation of settlement and preliminary and the final approval of the United States District Court for the Eastern District of Texas.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The consolidated balance sheet at December 31, 2022, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the annual consolidated financial statements and footnotes thereto of the Company.
Summary of Significant Accounting Policies	ummary of Significant Accounting Policies The significant accounting policies used in the preparation of these condensed consolidated financial statements for the six months ended June 30, 2023 are consistent with those discussed in Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, with the exception of the following.
Inventory	Inventory We capitalize inventory costs related to products to be sold in the ordinary course of business. We make a determination of capitalizing inventory costs for a product based on, among other factors, status of regulatory approval, information regarding safety, efficacy and expectations relating to commercial sales and recoverability of costs. Pre-launch inventory is held as an asset when there is a high probability of regulatory approval for the product and when there are probable future economic profits. Inventory may consist of raw materials, work in process and finished goods. We began capitalizing inventory related to SKYCLARYS in the quarter ended March 31, 2023, as we received approval of SKYCLARYS in February 2023, and the related costs were expected to be recoverable through the commercialization of SKYCLARYS. Prior to the start of capitalizing inventory, costs for commercially saleable product and materials were incurred and included in research and development expenses, of which $ 38.6 million was remaining at June 30, 2023. As a result, cost of product revenues related to SKYCLARYS will initially reflect a lower average per unit cost of materials over the next 35-40 months as previously expensed inventory is utilized for commercial production and sold to customers. Inventories are valued under the specific identification method and are stated at the lower of cost or net realizable value. We measure inventory based on lot-based costing where inventory is valued at the purchase price for the specific lot. We assess recoverability of inventory each reporting period to determine any write down to net realizable value resulting from excess or obsolete inventories.
Revenue Recognition	Revenue Recognition We recognize revenue when control of promised goods or services is transferred to a customer at an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To determine revenue recognition, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step model to contracts when collectability of the consideration to which we are entitled in exchange for the goods or services we transfer to the customer is determined to be probable. At contract inception, once the contract is determined to be within the scope of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, or ASC 606, we assess whether the goods or services promised within each contract are distinct and, therefore, represent a separate performance obligation. Goods and services that are determined not to be distinct are combined with other promised goods and services until a distinct bundle is identified. We then allocate the transaction price (the amount of consideration we expect to be entitled to from a customer in exchange for the promised goods or services) to each performance obligation and recognize the associated revenue when (or as) each performance obligation is satisfied. Our estimate of the transaction price for each contract includes all variable consideration to which we expect to be entitled. Amounts are recorded as accounts receivable when our right to consideration is unconditional. We do not assess whether a contract has a significant financing component if the expectation at contract inception is that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. We expense incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that we would have recognized is one year or less or the amount is immaterial. Product Revenues, Net Our net product revenues are recognized, net of variable consideration related to certain allowances and accruals, at the time the customer obtains control of our product. We use the expected value method, which is the sum of probability-weighted amounts in a range of possible consideration amounts, or the most likely amount method, which is the single most likely amount in a range of possible considerations, to estimate variable consideration related to our product sales. We record reserves, based on contractual terms, for components related to product sold during the reporting period, as well as our estimate of product that remains in the distribution channel inventory at the end of the reporting period that we expect will be sold to qualified healthcare providers. On a quarterly basis, we update our estimates and record any needed adjustments in the period we identify the adjustments. The following are the components of variable consideration related to product revenues: Trade Discounts and Allowances . We provide customary invoice discounts on product sales to our customers for prompt payment and we pay fees for distribution services, such as fees for certain data that customers provide to us. We estimate our customers will earn these discounts and fees and deduct these discounts and fees in full from gross product revenues and accounts receivable at the time we recognize the related revenues. Product Returns. We provide for returns in accordance with our “Return Goods Policy” defined within each customer agreement. Chargebacks. We estimate obligations resulting from contractual commitments with the government and other entities to sell products to qualified healthcare providers at prices lower than the list prices charged to the customer who directly purchases from us. The customer charges us for the difference between what it pays to us for the product and the selling price to the qualified healthcare providers. Rebates. We are subject to discount obligations under government programs, including Medicaid in the United States and similar programs in certain other countries, including countries in which we are accruing for estimated rebates because final pricing has not yet been negotiated. We are also subject to potential rebates in connection with our value-based agreements with certain commercial payors. We record reserves for rebates in the same period the related product revenue is recognized, resulting in a reduction of product revenues and a current liability that is included in accrued expenses on our consolidated balance sheet. Our estimate for rebates is based on statutory discount rates, expected utilization or an estimated number of patients on treatment, as applicable. Co-payment Assistance. We offer co-payment assistance to patients with commercial insurance that have coverage and reside in states that allow co-payment assistance. We estimate the average co-payment assistance amounts for our products based on expected customer demographics and record any such amounts within accrued expenses on our consolidated balance sheet.
Concentration of Credit Risk and Major Customers	Concentration of Credit Risk and Major Customers We sell our products through exclusive arrangements with a specialty distributor and specialty pharmacy, both of which are part of McKesson Corporation. As a result, for the three-month period ended June 30, 2023, one individual customer accounted for substantially all of our net product revenue.

Product Revenues, Net (Tables)

Product Revenues, Net (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Receivables Related to Net Product Revenues	The following table presents the balance of our receivables related to our net product revenues: Six Months Ended June 30 2023 (in thousands) Receivables included in "Accounts receivables, net" $ 22,662

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Other Liabilities Disclosure [Abstract]
Summary of Other Current Liabilities	The following tables summarize our other current liabilities (in thousands), as of June 30, 2023: Six Months Ended June 30 2023 2022 (in thousands) Paid Time Off Accrual $ 4,953 $ 4,022 Bonus Accrual 6,813 12,160 Accrued Expenses 1 47,634 2,919 Other 12,591 5,166 Total other current liabilities $ 71,991 $ 24,267 1) See Note 17, Subsequent Events, to our condensed consolidated financial statements for update on bardoxolone securities litigation.

Liability Related to Sale of _2

Liability Related to Sale of Future Royalties (Tables)	6 Months Ended
	Jun. 30, 2023
Liability Related To Sale Of Future Royalties [Abstract]
Schedule of Activity Within Liability Related to Sale of Future Royalties	The following table shows the activity within the liability related to sale of future royalties for the six months ended June 30, 2023: Liability Related to Sale of Future Royalties (in thousands) Balance at December 31, 2022 $ 404,634 Plus: Non-cash interest expense recognized between December 31, 2022 and May 4, 2023 15,237 Balance at May 4, 2023 prior to the Amended Funding Agreement 419,871 Less: Unamortized transaction costs as of May 4, 2023 ( 699 ) Carrying value at May 4, 2023, prior to the Amended Funding Agreement $ 419,172 Less: Net Gain on extinguishment of liability related to the sale of future royalties ( 289,286 ) Fair value of new liability related to sale of future royalties $ 129,886 Plus: Non-cash interest expense recognized between May 4, 2023 and June 30, 2023 2,420 Carrying value at June 30, 2023 $ 132,306 Liability related to sale of future royalties, current $ 5,650 Liability related to sale of future royalties, non-current $ 126,656

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventories	All of the Company’s inventories relate to the manufacturing of SKYCLARYS. The following table sets forth the Company’s inventories as of June 30, 2023: Six Months Ended June 30 2023 (in thousands) Raw materials $ 3,903 Work-in-process 8,875 Finished goods 502 Total inventory $ 13,280 Inventory, current $ 2,942 Inventory, noncurrent $ 10,338

Marketable Debt Securities (Tab

Marketable Debt Securities (Tables)	6 Months Ended
	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Summary of Marketable Debt Securities	The following tables summarize our marketable debt securities (in thousands), as of June 30, 2023: Amortized Gross Gross Fair Value (1) Marketable debt securities: U.S. treasury securities 281,371 37 ( 15 ) 281,393 Total $ 281,371 $ 37 $ ( 15 ) $ 281,393 (1) The fair value was determined using the three-tier fair value hierarchy for disclosure in accordance with Accounting Standards Codification 820-10. The Company’s investments in marketable securities are classified within Level 2 of the fair value hierarchy. The Company uses quoted prices for similar assets sourced from certain third-party pricing services. The third-party pricing services generally utilize industry standard valuation models for which all significant inputs are observable, either directly or indirectly, to estimate the price or fair value of the securities. The primary input generally includes reported trades of or quotes on the same or similar securities. The Company does not make additional judgments or assumptions made to the pricing data sourced from the third-party pricing services.

Other Income (Expense), Net (Ta

Other Income (Expense), Net (Tables)	6 Months Ended
	Jun. 30, 2023
Other Income and Expenses [Abstract]
Summary of Other Income (Expense), Net	Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 (in thousands) Other income (expense), net Investment income $ 3,992 $ 786 $ 7,426 $ 918 Interest Expense ( 1,312 ) — ( 1,312 ) — Non-cash interest expense on liability ( 6,661 ) ( 10,277 ) ( 17,678 ) ( 20,148 ) Net gain on extinguishment of liability 289,286 — 289,286 — Other income (expense) ( 104 ) ( 80 ) 1,817 ( 113 ) Total other income (expense), net $ 285,201 $ ( 9,571 ) $ 279,539 $ ( 19,343 )

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Summary of Supplemental Balance Sheet and Other Information Related to Operating Leases	Supplemental balance sheet and other information related to the Company’s operating leases is as follows: As of June 30, 2023 2022 Weighted-average remaining lease term (in years) 14.8 15.6 Weighted-average discount rate 12.6 % 6.5 %
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities by fiscal year for the Company’s operating leases: As of June 30, 2023 (in thousands) 2023 (remaining six months) (1) $ 1,984 2024 7,696 2025 14,279 2026 14,558 2027 14,842 Thereafter 174,393 Total lease payments (1) 227,752 Less: Imputed interest ( 134,879 ) Present value of lease liabilities $ 92,873 (1) Above table includes one year rent abatement applied beginning in June 2023 following FDA approval of SKYCLARYS

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Schedule of Income Tax Benefit Expense and Effective Income Tax Rate	The following table summarizes income tax benefit expense and effective income tax rate: Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 (in thousands, except for percentage data) Benefit from (provision for) taxes on income $ — $ 1 $ — $ ( 30 ) Effective income tax rate 0.0 % 0.0 % 0.0 % 0.0 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Time Based and Performance-Based Stock Compensation Expense	The following table summarizes time-based and performance-based stock compensation expense reflected in the consolidated statements of operations: Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 (in thousands) Research and development $ 8,530 $ 6,344 $ 22,800 $ 13,951 Selling, general and administrative 11,833 7,520 35,620 15,357 Total stock compensation expense $ 20,363 $ 13,864 $ 58,420 $ 29,308
Summary of Restricted Stock Units	The following table summarizes RSUs as of June 30, 2023, and changes during the six months ended June 30, 2023, under the Second Amended and Restated Long Term Incentive Plan (LTIP Plan): Number of Weighted-Average Outstanding at January 1, 2023 1,151,656 $ 45.45 Granted 526,509 47.89 Vested ( 509,197 ) 38.23 Forfeited ( 27,421 ) 43.34 Outstanding at June 30, 2023 1,141,547 $ 49.84
Summary of Stock Option Activity	The following table summarizes stock option activity as of June 30, 2023, and changes during the six months ended June 30, 2023, under the LTIP Plan and standalone option agreements: Number of Weighted- Outstanding at January 1, 2023 6,009,199 $ 65.92 Granted 1,981,191 43.50 Exercised ( 655,595 ) 25.94 Forfeited ( 292,835 ) 166.36 Expired ( 72,848 ) 139.66 Outstanding at June 30, 2023 6,969,112 $ 58.32 Exercisable at June 30, 2023 3,696,610 $ 63.80

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Loss per Share	The computation of basic and diluted net loss income per share attributable to stockholders of the Company is summarized in the following table (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 Numerator Net income (loss) $ 192,998 $ ( 73,555 ) $ 76,881 $ ( 147,397 ) Denominator Weighted-average number of common shares 37,671,678 36,467,802 37,311,872 36,440,364 Dilutive potential common shares: Employee stock options 3,435,527 — 2,953,652 — RSUs 370,262 — 457,086 — Employee stock purchase plan 29,433 — 36,319 — Weighted-average number of common shares 41,506,900 36,467,802 40,758,929 36,440,364 Net income (loss) per share — basic $ 5.12 $ ( 2.02 ) $ 2.06 $ ( 4.04 ) Net income (loss) per share — diluted $ 4.65 $ ( 2.02 ) $ 1.89 $ ( 4.04 )

Description of Business (Additi

Description of Business (Additional Information) (Details)	Jul. 28, 2023 $ / shares
Biogen | Subsequent Event
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Shareholders to receive per share amount in cash without interest and subject to applicable tax withholding	$ 172.5

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023 Customer	Jun. 30, 2023 USD ($)
Significant Accounting Policies [Line Items]
Cost of commercially saleable product and materials, remaining amount | $		$ 38.6
Revenue | Product Concentration Risk
Significant Accounting Policies [Line Items]
Number of customers accounted for all product revenues, net | Customer	1
Concentration risk, percentage	100%

Product Revenues, Net - Additio

Product Revenues, Net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenues	$ 22,746	$ 762	$ 22,941	$ 1,677
Product revenues, net
Disaggregation of Revenue [Line Items]
Total revenues	$ 20,038	$ 0	$ 20,038	$ 0

Product Revenues, Net - Schedul

Product Revenues, Net - Schedule of Receivables Related to Net Product Revenues (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Receivables included in "Accounts receivables, net"	$ 22,662	$ 0
Product revenues, net
Disaggregation of Revenue [Line Items]
Receivables included in "Accounts receivables, net"	$ 22,662

Collaboration Agreements - Addi

Collaboration Agreements - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 27, 2021	Dec. 31, 2009	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Oct. 31, 2019
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Decrease in revenue recognition					$ 0	$ 1,648
Collaboration revenue			$ 22,746	$ 762	22,941	$ 1,677
Kyowa Kirin Agreement | License Agreement Terms
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Upfront license fee received		$ 35,000
Collaboration revenue, milestone payments received					$ 50,000
Collaboration agreement earned milestone payment	$ 5,000
Collaboration revenue	4,700
Deferred Revenue	$ 300
AbbVie
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Payable to collaborators							$ 330,000

Other Current Liabilities - Sum

Other Current Liabilities - Summary of Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Other Liabilities Disclosure [Abstract]
Paid Time Off Accrual	$ 4,953		$ 4,022
Bonus Accrual	6,813		12,160
Accrued Expenses	47,634		2,919
Other	12,591		5,166
Total other current liabilities	$ 71,991	$ 24,267	$ 24,267

Liability Related to Sale of _3

Liability Related to Sale of Future Royalties - Additional Information (Details) $ / shares in Units, $ in Thousands		2 Months Ended		6 Months Ended
	Jun. 24, 2020 USD ($) Account $ / shares shares	Jun. 30, 2023 USD ($) $ / shares	Jun. 30, 2023 $ / shares	Jun. 30, 2023 USD ($) $ / shares	Jan. 01, 2028 USD ($)	Mar. 31, 2023	Dec. 31, 2022 $ / shares
Liability Related To Sale Of Future Royalties [Line Items]
Number of units of accounting related to consideration received | Account	2
Liability related to sale of future royalties, net	$ 294,500
Transaction cost of liability related to sale of future royalties	800
Transaction consideration allocated to common shares	$ 55,500
Effective interest rate including transaction costs	13.80%
Non cash interest expense recognized percentage						10.90%
Net gains on extinguishment of liability related to sale of future royalties		$ 289,286		$ 289,300
Effective interest expense recognized percentage			12.60%
BXLS | Scenario Forecast
Liability Related To Sale Of Future Royalties [Line Items]
Change of control					$ 375,000
Change of control after date					$ 300,000
Common Stock A
Liability Related To Sale Of Future Royalties [Line Items]
Common stock, par value | $ / shares		$ 0.001	$ 0.001	$ 0.001			$ 0.001
Development Agreement
Liability Related To Sale Of Future Royalties [Line Items]
Proceeds from royalty agreement	$ 300,000
Purchase Agreement
Liability Related To Sale Of Future Royalties [Line Items]
Proceeds from issuance of common stock, net	50,000
Purchase Agreement | Common Stock A | BXLS
Liability Related To Sale Of Future Royalties [Line Items]
Proceeds from issuance of common stock, net	$ 50,000
Issuance of common stock | shares	340,793
Common stock, par value | $ / shares	$ 0.001
Shares issued, price per share | $ / shares	$ 146.72

Liability Related to Sale of _4

Liability Related to Sale of Future Royalties - Schedule of Activity Within Liability Related to Sale of Future Royalties (Details) - USD ($) $ in Thousands	2 Months Ended	4 Months Ended	6 Months Ended
	Jun. 30, 2023	May 04, 2023	Jun. 30, 2023	Dec. 31, 2022
Liability Related To Sale Of Future Royalties [Abstract]
Liability related to sale of future royalties, Balance	$ 419,871	$ 404,634	$ 404,634
Non-cash interest expense recognized	2,420	15,237
Liability related to sale of future royalties, Balance		419,871
Less: Unamortized transaction cost		(699)
Liability related to sale of future royalties, Carrying value	132,306	$ 419,172	132,306
Less: Net Gain on extinguishment of liability related to the sale of future royalities	(289,286)		(289,300)
Fair value of new liability related to sale of future royalties	129,886
Liability related to sale of future royalties, current	5,650		5,650	$ 0
Liability related to sale of future royalties, non-current	$ 126,656		$ 126,656	$ 403,913

Inventory - Schedule of Invento

Inventory - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 3,903
Work-in-process	8,875
Finished goods	502
Total inventory	13,280
Inventory, current	2,942	$ 0
Inventory, noncurrent	$ 10,338	$ 0

Term Loan - Additional Informat

Term Loan - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		6 Months Ended		24 Months Ended
	Mar. 31, 2027	May 31, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2024	May 12, 2023
Debt Instrument [Line Items]
Total revenues			$ 22,746	$ 762	$ 22,941	$ 1,677
Debt repayment terms					Repayment of outstanding principal of the Term Loans will be made in eight equal quarterly payments of principal commencing on June 30, 2026; provided however, that if we achieve a trailing twelve-month net product sales and royalty revenues milestone of $250.0 million as of March 31, 2027, at our option, repayment of outstanding principal of the Term Loans will be made in four equal quarterly payments of principal commencing on June 30, 2027.
Debt instrument, frequency of payment					quarterly
Debt instrument starting maturity date					Dec. 31, 2023
Debt instrument ending maturity date					Dec. 31, 2028
SOFR
Debt Instrument [Line Items]
Term loan interest rate			7.50%		7.50%
Interest Rate Floor
Debt Instrument [Line Items]
Term loan interest rate			2.50%		2.50%
Net Product Sales
Debt Instrument [Line Items]
Total revenues			$ 20,038	$ 0	$ 20,038	$ 0
Net Product Sales And Royalty Revenues | Scenario Forecast
Debt Instrument [Line Items]
Total revenues	$ 250,000						$ 100,000
Senior secured term loan facility | Maximum
Debt Instrument [Line Items]
Loan principal amount		$ 275,000
Tranche A Loan
Debt Instrument [Line Items]
Loan principal amount								$ 75,000
Debt discounts			3,000		3,000
Debt issuance costs			1,500		1,500
Debt instrument, unamortized debt discount and debt offering costs			$ 1,900		$ 1,900
Debt instrument, effective interest rate remaining term					4 years 10 months 24 days
Interest rate effective percentage			13.40%		13.40%
Tranche B Loan
Debt Instrument [Line Items]
Loan principal amount		50,000
Debt instrument maturity date					Dec. 31, 2023
Tranche C Loan
Debt Instrument [Line Items]
Loan principal amount		75,000
Tranche C Loan | Net Product Sales And Royalty Revenues | Minimum
Debt Instrument [Line Items]
Total revenues		40,000
Tranche C Loan | Net Product Sales And Royalty Revenues | Maximum
Debt Instrument [Line Items]
Total revenues		55,000
Tranche D Loan
Debt Instrument [Line Items]
Loan principal amount		$ 75,000
Tranche B Tranche C and Tranche D Loan
Debt Instrument [Line Items]
Debt issuance costs			$ 1,100		$ 1,100

Marketable Debt Securities - Su

Marketable Debt Securities - Summary of Marketable Debt Securities (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Marketable Securities [Line Items]
Marketable Debt Securities, Amortized Cost	$ 281,371
Marketable Debt Securities, Unrealized Gains	37
Marketable Debt Securities, Unrealized Loss	(15)
Marketable Debt Securities, Fair Value	281,393	[1]
U.S. Treasury Securities
Marketable Securities [Line Items]
Marketable Debt Securities, Amortized Cost	281,371
Marketable Debt Securities, Unrealized Gains	37
Marketable Debt Securities, Unrealized Loss	(15)
Marketable Debt Securities, Fair Value	$ 281,393	[1]
[1] The fair value was determined using the three-tier fair value hierarchy for disclosure in accordance with Accounting Standards Codification 820-10. The Company’s investments in marketable securities are classified within Level 2 of the fair value hierarchy. The Company uses quoted prices for similar assets sourced from certain third-party pricing services. The third-party pricing services generally utilize industry standard valuation models for which all significant inputs are observable, either directly or indirectly, to estimate the price or fair value of the securities. The primary input generally includes reported trades of or quotes on the same or similar securities. The Company does not make additional judgments or assumptions made to the pricing data sourced from the third-party pricing services.

Other Income (Expense), Net - S

Other Income (Expense), Net - Summary of Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Other income (expense), net
Investment income	$ 3,992	$ 786	$ 7,426	$ 918
Interest expense	(1,312)		(1,312)
Non-cash interest expense on liability related to sale of future royalty	(6,661)	(10,277)	(17,678)	(20,148)
Net gain on extinguishment of liability	289,286		289,286
Other income (expense)	(104)	(80)	1,817	(113)
Total other income (expense), net	$ 285,201	$ (9,571)	$ 279,539	$ (19,343)

Other Income (Expense), Net - A

Other Income (Expense), Net - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Other Income and Expenses [Abstract]
Other income related to employee retention credit	$ 2

Leases - Additional Information

Leases - Additional Information (Details) $ in Thousands				3 Months Ended		6 Months Ended
	Mar. 08, 2022	Feb. 04, 2022	Oct. 15, 2019 ft²	Jun. 30, 2023 USD ($) ft²	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) ft²	Jun. 30, 2022 USD ($)	Jun. 19, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 15, 2021 USD ($)
Lessee Lease Description [Line Items]
Cash paid for amounts included in the measurement of lease liabilities						$ 7,700
Operating lease, expense				$ 4,400	$ 4,300	8,700	$ 8,600
Operating lease right-of-use asset				78,598		78,598			$ 105,258
Operating lease liability				$ 92,873		$ 92,873
2019 Lease Agreement | Maximum
Lessee Lease Description [Line Items]
Lease Incentive, net								$ 5,100
2019 Lease Agreement | Accounting Standards Update 2016-02
Lessee Lease Description [Line Items]
Reduction of operating lease right of use asset								$ 23,400
Incremental borrowing rate								12.72%
2019 Lease Agreement | Accounting Standards Update 2016-02 | Minimum
Lessee Lease Description [Line Items]
Operating lease liability								$ 89,900
2019 Lease Agreement | Accounting Standards Update 2016-02 | Maximum
Lessee Lease Description [Line Items]
Operating lease liability								$ 113,300
Plano Texas
Lessee Lease Description [Line Items]
Operating lease, option to extend						extended the lease for the Plano office to December 31, 2023
Lease expiration date	Dec. 31, 2023
Plano Texas | Office Space
Lessee Lease Description [Line Items]
Area of real estate property | ft²				122,000		122,000
Plano Texas | Office And Laboratory Space | 2019 Lease Agreement
Lessee Lease Description [Line Items]
Area of real estate property | ft²			327,400
Operating lease, existence of option to extend			true
Renewal lease term, option one						two consecutive five-year renewal periods
Lease initial term			16 years
Renewal lease term, option two						one ten-year renewal period
Operating lease right-of-use asset										$ 124,500
Operating lease liability										133,200
Lease Incentive, net										$ 8,700
Irving Texas
Lessee Lease Description [Line Items]
Operating lease, existence of option to extend		true
Operating lease, option to extend						extended the lease for the office and laboratory space in Irving, Texas, to October 31, 2024
Operating lease, renewal Term		12 months
Lease expiration date		Oct. 31, 2024
Irving Texas | Office And Laboratory Space
Lessee Lease Description [Line Items]
Area of real estate property | ft²				34,890		34,890

Leases - Summary of Supplementa

Leases - Summary of Supplemental Balance Sheet and Other Information Related to Operating Leases (Details)	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Weighted-average remaining lease term (in years)	14 years 9 months 18 days	15 years 7 months 6 days
Weighted-average discount rate	12.60%	6.50%

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Leases [Abstract]
2023 (remaining six months)	$ 1,984	[1]
2024	7,696
2025	14,279
2026	14,558
2027	14,842
Thereafter	174,393
Total lease payments	227,752	[1]
Less: Imputed interest	(134,879)
Present value of lease liabilities	$ 92,873
[1] (1) Above table includes one year rent abatement applied beginning in June 2023 following FDA approval of SKYCLARYS

Income Taxes - Summary of Incom

Income Taxes - Summary of Income Tax Benefit Expense and Effective Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Benefit from (provision for) taxes on income	$ 0	$ 1	$ 0	$ (30)
Effective income tax rate	0%	0%	0%	0%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total intrinsic value of outstanding options	$ 366,300		$ 366,300
Total intrinsic value of exercisable options	186,800		186,800
Stock issued related to ESPP plan, cash received	796		796
Compensation expense	20,363	$ 13,864	$ 58,420	$ 29,308
2022 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
common stock, shares authorized issuance					500,000
Percentage of closing price of common stock					85%
Stock issued related to ESPP plan, shares			22,648
Stock issued related to ESPP plan, cash received			$ 800
Compensation expense	300		600
Restricted Stock Unit (RSUs) and Performance-based (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense	41,700		41,700
Performance-based RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense	$ 4,600		$ 4,600
Performance-based stock options deemed not probable of vesting	37,750		37,750
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense	$ 91,600		$ 91,600
Performance-based Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense	$ 13,200		$ 13,200
Performance-based stock options deemed not probable of vesting	172,500		172,500

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Time Based and Performance-Based Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock compensation expense	$ 20,363	$ 13,864	$ 58,420	$ 29,308
Research and Development Expenses
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock compensation expense	8,530	6,344	22,800	13,951
Selling, general and administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock compensation expense	$ 11,833	$ 7,520	$ 35,620	$ 15,357

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Restricted Stock Units Activity (Details) - Restricted Stock Unit (RSUs)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Number of RSUs
Number of RSUs - Beginning balance | shares	1,151,656
Number of RSUs, Granted | shares	526,509
Number of RSUs, Vested | shares	(509,197)
Number of RSUs, Forfeited | shares	(27,421)
Number of RSUs - Ending balance | shares	1,141,547
Weighted-Average Grant Date Fair Value
Weighted-Average Grant Date Fair Value - Beginning balance | $ / shares	$ 45.45
Weighted-Average Grant Date Fair Value, Granted | $ / shares	47.89
Weighted-Average Grant Date Fair Value, Vested | $ / shares	38.23
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares	43.34
Weighted-Average Grant Date Fair Value - Ending balance | $ / shares	$ 49.84

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2023
Number of Options, Abstract
Number of Options, Outstanding - Beginning balance	6,009,199
Number of Options, Granted	1,981,191
Number of Options, Exercised	(655,595)
Number of Options, Forfeited	(292,835)
Number of Options, Expired	(72,848)
Number of Options, Outstanding - Ending balance	6,969,112
Number of Options, Exercisable	3,696,610
Weighted Average Price, Abstract
Weighted-Average Price, Outstanding - Beginning balance	$ 65.92
Weighted-Average Price, Granted	43.5
Weighted-Average Price, Exercised	25.94
Weighted-Average Price, Forfeited	166.36
Weighted-Average Price, Expired	139.66
Weighted-Average Price, Outstanding - Ending balance	58.32
Weighted-Average Price, Exercisable	$ 63.8

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Retirement Benefits [Abstract]
Defined benefit plan, description			we adopted an Employee Investment Plan, qualified under Section 401(k) of the Internal Revenue Code, which is a retirement savings plan covering substantially all of our U.S. employees (the Plan).
Defined contribution plan employer discretionary contribution amount			$ 1,000
Maximum employee contributions to the plan annually			$ 7,000,000	$ 7,000,000
Period of matching contributions to vest			4 years	4 years
Defined contribution plan including contributions and administrative costs expenses	$ 500,000	$ 300,000	$ 1,900,000	$ 1,600,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Liabilities relating to indemnification, description	Accordingly, the Company has not recognized any liabilities relating to these obligations as of June 30, 2023.
Liabilities recognized related to indemnification	$ 0
Accrual expenses related to indemnification	$ 0

Net Income Per Share - Computat

Net Income Per Share - Computation of Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator
Net Income (Loss)	$ 192,998	$ (73,555)	$ 76,881	$ (147,397)
Denominator
Weighted-average number of common shares used in net income (loss) per share - basic	37,671,678	36,467,802	37,311,872	36,440,364
Dilutive potential common shares:
Employee stock options	3,435,527	0	2,953,652	0
RSUs	370,262	0	457,086	0
Employee stock purchase plan	29,433	0	36,319	0
Weighted-average number of common shares used in net loss per share - diluted	41,506,900	36,467,802	40,758,929	36,440,364
Net income (loss) per share - basic	$ 5.12	$ (2.02)	$ 2.06	$ (4.04)
Net income (loss) per share - diluted	$ 4.65	$ (2.02)	$ 1.89	$ (4.04)

Net Income Per Share - Addition

Net Income Per Share - Additional Information (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average anti-dilutive shares excludes from computation of earnings per share	4,304,870	6,896,379	4,699,922	6,896,379

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended	6 Months Ended
	Jul. 31, 2023	Jul. 28, 2023	Jun. 30, 2023	Jun. 30, 2023	Jul. 10, 2023	Dec. 31, 2022
Subsequent Event [Line Items]
Legal settlement expense			$ 11,000	$ 11,000
Debt repayment terms				Repayment of outstanding principal of the Term Loans will be made in eight equal quarterly payments of principal commencing on June 30, 2026; provided however, that if we achieve a trailing twelve-month net product sales and royalty revenues milestone of $250.0 million as of March 31, 2027, at our option, repayment of outstanding principal of the Term Loans will be made in four equal quarterly payments of principal commencing on June 30, 2027.
Common Stock B
Subsequent Event [Line Items]
Common stock, par value			$ 0.001	$ 0.001		$ 0.001
Subsequent Event | Biogen [Member]
Subsequent Event [Line Items]
Shareholders to receive per share amount in cash without interest and subject to applicable tax withholding		$ 172.5
Termination fees payable upon cancelation of merger agreement.		$ 264,000
Termination fees receviable upon cancelation of merger agreement		$ 301,000
Subsequent Event | Bardoxolone
Subsequent Event [Line Items]
Legal settlement expense	$ 11,000
Claims settled	45,000
Insurance receivable	34,000
Accrued liability	$ 45,000
Subsequent Event | Common Stock B | Biogen [Member]
Subsequent Event [Line Items]
Common stock, par value		$ 0.001
Subsequent Event | Term Loan | Tranche Two
Subsequent Event [Line Items]
Loan principal amount					$ 50,000