Reata Pharmaceuticals (RETA) 10-Q 9 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 04, 2020
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
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		28,836,422
Common Stock B
Document Information [Line Items]
Entity Common Stock Shares Outstanding		5,044,931

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 578,263	$ 664,324
Prepaid expenses and other current assets	6,566	4,952
Income tax receivable	22,203	0
Total current assets	607,032	669,276
Property and equipment, net	4,664	2,996
Other assets	1,301	10,148
Total assets	612,997	682,420
Liabilities and stockholders’ equity
Accounts payable	9,081	1,908
Accrued direct research liabilities	17,991	23,774
Other current liabilities	15,002	11,631
Current portion of payable to collaborators	0	150,000
Current portion of deferred revenue	4,688	4,701
Total current liabilities	46,762	192,014
Other long-term liabilities	2,820	6,982
Term loan, net of debt issuance costs	0	155,017
Liability related to sale of future royalties, net	304,663	0
Payable to collaborators, net of current portion	71,726	66,862
Deferred revenue, net of current portion	1,182	4,688
Total noncurrent liabilities	380,391	233,549
Commitments and contingencies
Stockholders’ equity:
Additional paid-in capital	1,078,279	967,317
Accumulated deficit	(892,469)	(710,493)
Total stockholders’ equity	185,844	256,857
Total liabilities and stockholders’ equity	612,997	682,420
Common Stock A
Stockholders’ equity:
Common stock value	29	28
Total stockholders’ equity	29	28
Common Stock B
Stockholders’ equity:
Common stock value	5	5
Total stockholders’ equity	$ 5	$ 5

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
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	28,833,595	27,878,550
Common stock, shares outstanding	28,833,595	27,878,550
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	5,045,092	5,318,157
Common stock, shares outstanding	5,045,092	5,318,157

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Collaboration revenue
Collaboration revenue	$ 1,401	$ 8,242	$ 5,827	$ 23,846
Expenses
Research and development	37,183	32,279	121,620	87,948
General and administrative	18,314	14,283	55,701	36,027
Depreciation	289	258	851	659
Total expenses	55,786	46,820	178,172	124,634
Other income (expense), net	(11,164)	(1,078)	(31,967)	(2,380)
Loss before taxes on income	(65,549)	(39,656)	(204,312)	(103,168)
Benefit from (provision for) taxes on income	93	(38)	22,336	(60)
Net loss	$ (65,456)	$ (39,694)	$ (181,976)	$ (103,228)
Net loss per share—basic and diluted	$ (1.94)	$ (1.32)	$ (5.45)	$ (3.44)
Weighted-average number of common shares used in net loss per share basic and diluted	33,713,507	30,110,391	33,401,599	30,004,211
License and milestone
Collaboration revenue
Collaboration revenue	$ 1,182	$ 7,898	$ 3,519	$ 23,437
Other revenue
Collaboration revenue
Collaboration revenue	$ 219	$ 344	$ 2,308	$ 409

Unaudited Consolidated Statem_2

Unaudited Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock A	Common Stock B	Additional Paid-In Capital	Total Accumulated Deficit
Balance, value at Dec. 31, 2018	$ 15,159	$ 24	$ 6	$ 435,452	$ (420,323)
Balance, shares at Dec. 31, 2018		24,000,683	5,728,175
Net loss	(103,228)				(103,228)
Compensation expense related to stock options	14,090			14,090
Exercise of options, value	6,448			6,448
Exercise of options, shares			395,641
Conversion of common stock Class B to Class A, value	1	$ 1
Conversion of common stock Class B to Class A, shares		525,085	(525,085)
Other shareholder transactions	107			107
Balance, value at Sep. 30, 2019	(67,423)	$ 25	$ 6	456,097	(523,551)
Balance, shares at Sep. 30, 2019		24,525,768	5,598,731
Balance, value at Jun. 30, 2019	(33,473)	$ 24	$ 6	450,354	(483,857)
Balance, shares at Jun. 30, 2019		24,466,407	5,631,527
Net loss	(39,694)				(39,694)
Compensation expense related to stock options	5,380			5,380
Exercise of options, value	363			363
Exercise of options, shares			26,565
Conversion of common stock Class B to Class A, value	1	$ 1
Conversion of common stock Class B to Class A, shares		59,361	(59,361)
Balance, value at Sep. 30, 2019	(67,423)	$ 25	$ 6	456,097	(523,551)
Balance, shares at Sep. 30, 2019		24,525,768	5,598,731
Balance, value at Dec. 31, 2019	256,857	$ 28	$ 5	967,317	(710,493)
Balance, shares at Dec. 31, 2019		27,878,550	5,318,157
Net loss	(181,976)				(181,976)
Compensation expense related to stock options	45,684			45,684
Exercise of options, value	$ 9,879			9,879
Exercise of options, shares	341,187		341,187
Conversion of common stock Class B to Class A, value	$ 1	$ 1
Conversion of common stock Class B to Class A, shares		614,252	(614,252)
Issuance of Common Stock, value	55,399			55,399
Issuance of Common Stock, shares		340,793
Balance, value at Sep. 30, 2020	185,844	$ 29	$ 5	1,078,279	(892,469)
Balance, shares at Sep. 30, 2020		28,833,595	5,045,092
Balance, value at Jun. 30, 2020	231,627	$ 29	$ 5	1,058,606	(827,013)
Balance, shares at Jun. 30, 2020		28,526,532	5,058,319
Net loss	(65,456)				(65,456)
Compensation expense related to stock options	11,580			11,580
Exercise of options, value	8,093			8,093
Exercise of options, shares			293,836
Conversion of common stock Class B to Class A, shares		307,063	(307,063)
Balance, value at Sep. 30, 2020	$ 185,844	$ 29	$ 5	$ 1,078,279	$ (892,469)
Balance, shares at Sep. 30, 2020		28,833,595	5,045,092

Unaudited Consolidated Statem_3

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating activities
Net loss	$ (181,976)	$ (103,228)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	851	659
Amortization of debt issuance costs and implied interest	5,850	1,017
Non-cash interest expense on liability related to sale of future royalty	11,077	0
Stock-based compensation expense	45,684	14,090
Loss on extinguishment of debt	11,183	0
Gain on lease termination	(816)	0
Changes in operating assets and liabilities:
Income tax receivable	(22,203)	0
Prepaid expenses and other current assets and other assets	150	(1,879)
Accounts payable	7,033	(440)
Accrued direct research, other current, and long-term liabilities	(514)	11,442
Payable to collaborators	(150,000)	0
Deferred revenue	(3,519)	(23,437)
Net cash used in operating activities	(277,200)	(101,776)
Investing activities
Purchases of property and equipment	(539)	(2,420)
Net cash used in investing activities	(539)	(2,420)
Financing activities
Proceeds from issuance of common stock, net	55,398	0
Payments on long-term debt	(167,170)	0
Exercise of options	9,879	6,448
Proceeds from sale of future royalties, net	293,571	107
Net cash provided by financing activities	191,678	6,555
Net decrease in cash and cash equivalents	(86,061)	(97,641)
Cash and cash equivalents at beginning of year	664,324	337,790
Cash and cash equivalents at end of period	578,263	240,149
Supplemental disclosures
Cash paid for interest	8,021	6,226
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	0	8,262
Purchases of equipment in accounts payable, accrued direct research, other current, and long-term liabilities	$ 2,282	$ 145

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business	1. Description of Business The Company’s 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. The Company’s lead programs are in rare forms of chronic kidney disease (CKD) and a rare neurological disease. The Company announced positive topline data from registrational trials for both of its lead product candidates, bardoxolone methyl (bardoxolone) in patients with CKD caused by Alport syndrome, and omaveloxolone in patients with a neurological disorder called Friedreich’s ataxia (FA). Both bardoxolone and omaveloxolone activate the transcription factor Nrf2 to normalize mitochondrial function, restore redox balance, and resolve inflammation. Because mitochondrial dysfunction, oxidative stress, and inflammation are features of many diseases, the Company believes bardoxolone and omaveloxolone have many potential clinical applications. Reata possesses exclusive, worldwide rights to develop, manufacture and commercialize bardoxolone, omaveloxolone, and our next-generation Nrf2 activators, excluding certain Asian markets for bardoxolone in certain indications, which are licensed to Kyowa Kirin Co., Ltd. (KKC). 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
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 of 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 nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The consolidated balance sheet at December 31, 2019, 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 The significant accounting policies used in the preparation of these condensed consolidated financial statements for the three and nine months ended September 30, 2020 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, 2019, except as noted below with respect to the Company’s liability related to the sale of future royalties and as noted within the “Recent Accounting Pronouncements – Recently Adopted Accounting Pronouncements” section. Liability Related to Sale of Future Royalties On June 10, 2020, the Company entered into a Development and Commercialization Funding Agreement with an affiliate of Blackstone Life Sciences, LLC (BXLS) that provides 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 (Development Agreement). The Company accounted for the Development Agreement as a sale of future revenues resulting in a debt classification, primarily because the Company has significant continuing involvement in generating the future revenue on which the royalties are based. The debt will be amortized under the effective interest rate method and, accordingly, the Company is recognizing non-cash interest expense over the estimated term of the Development Agreement. The liability related to sale of future royalties, and the debt amortization, are based on the Company ’ s current estimate of future royalties expected to be paid over the estimated term of the Development Agreement. The Company will periodically assess the expected royalty payments and, if materially different than its previous estimate, will prospectively adjust and recognize the related non-cash interest expense. The transaction costs associated with the liability will be amortized to non-cash interest expense over the estimated term of the Development Agreement . See Note 5 , Liability Related to Sale of Future Royalties , of Notes to Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q. Fair Value Measurements The Company categorizes its financial instruments measured at fair value into a three-level fair value hierarchy that prioritizes the inputs used in determining the fair value of the asset or liability. The three levels of the fair value hierarchy are as follows: • Level 1 - Financial instruments that have values based on unadjusted quoted prices for identical assets or liabilities in an active market which the Company has the ability to access at the measurement date. • Level 2 - Financial instruments that have values based on quoted market prices in markets where trading occurs infrequently or that have values based on quoted prices of instruments with similar attributes in active markets. • Level 3 - Financial instruments that have values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset. The Company has determined the fair value of the liability related to the sale of future royalties is based on the Company’s current estimates of future royalties expected to be paid to BXLS, over the life of the arrangement, which are considered Level 3. See Note 5, Liability Related to Sale of Future Royalties Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Topic 842, amended by ASU 2018-11, Leases In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements Revenue from Contracts with Customers In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes .

Collaboration Agreements

Collaboration Agreements	9 Months Ended
	Sep. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Collaboration Agreements	3. Collaboration Agreements AbbVie In September 2010, the Company entered into a license agreement with AbbVie Inc. (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 AbbVie Collaboration Agreement) to jointly research, develop, and commercialize the Company’s portfolio of second and later generation oral Nrf2 activators. On October 9, 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 AbbVie Collaboration Agreement. In exchange for such rights, the Company agreed to pay AbbVie $330.0 million, of which $100.0 million was paid as of December 31, 2019, $150.0 million was paid on June 30, 2020, and $80.0 million will be payable on November 30, 2021. 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 Company recognized interest expense related to the Reacquisition Agreement of approximately $1.7 million and $0 million, during the three months ended September 30, 2020 and 2019, respectively, and $4.9 million and $0 million, during the nine months ended September 30, 2020 and 2019, respectively. As of September 30, 2020, the Company’s payable to collaborators was $80.0 million, with a present value of $71.7 million . The execution of the Reacquisition Agreement ended our performance obligations under the AbbVie Collaboration Agreement and included the write off of the remaining related deferred revenue balance, after which no further revenue was recognized. Accordingly, there was no revenue recognized in 2020. The Company recognized revenue related to the AbbVie Collaboration Agreement totaling approximately $6.7 million and $19.9 million during the three and nine months ended September 30, 2019, respectively. The deferred revenue balance was $0 million as of September 30, 2020. KKC In December 2009, the Company entered into an exclusive license with KKC (the KKC Agreement) to develop and commercialize bardoxolone in the licensed territory. The Company received a nonrefundable, up-front license fee of $35.0 million in 2009 and regulatory milestones totaling $45.0 million in 2010, 2012, and 2018 and could receive additional regulatory milestones of $52.0 million and commercial milestones of $140.0 million, as well as tiered royalties ranging from the low teens to the low 20 percent range, depending on the country of sale and the amount of annual net sales, on net sales by KKC in the licensed territory. The up-front payment and regulatory milestones are accounted for as a single unit of accounting. Revenue is being recognized ratably through December 2021, which is the estimated minimum period that is needed to complete the deliverables under the terms of the KKC Agreement. The Company began recognizing revenue related to the up-front payment upon execution of the KKC Agreement. The Company recognized collaboration revenue totaling approximately $1.2 million during each of the three months ended September 30, 2020 and 2019 and $3.5 million during each of the nine months ended September 30, 2020 and 2019. As of September 30, 2020, the Company recorded deferred revenue totaling approximately $5.9 million of which approximately $4.7 million is reflected as the current portion of deferred revenue.

Term Loan

Term Loan	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Term Loan	4. Term Loan On October 9, 2019, the Company entered into the First Amendment to the Amended and Restated Loan and Security Agreement (the Amended Restated Loan Agreement). Under the Amended Restated Loan Agreement, the Term A Loan principal amount was $80.0 million, and the Term B Loan availability was increased from $45.0 million to $75.0 million (collectively with the Term A Loan, the Term Loans). On December 20, 2019, the Company borrowed $75.0 million under the Term B Loan resulting in a principal balance of the Term Loans of $155.0 million. On June 24, 2020, the Company paid off the total outstanding balance of the Term Loans prior to the maturity date. The payoff consisted of (i) the outstanding principal balance of $155.0 million, (ii) exit fees of $6.7 million, which has been partially accrued up to the date of repayment, (iii) prepayment fees of $5.4 million, and (iv) accrued and unpaid interest of $1.0 million. At the time of payoff, all liabilities and obligations under the Amended Restated Loan Agreement were terminated. In connection with the payoff of the Term Loans, the Company recorded a loss on extinguishment of debt of $11.2 million in the nine months ended September 30, 2020.

Liability Related to Sale of Fu

Liability Related to Sale of Future Royalties	9 Months Ended
	Sep. 30, 2020
Liability Related To Sale Of Future Royalties [Abstract]
Liability Related to Sale of Future Royalties	5. Liability Related to Sale of Future Royalties On June 24, 2020, the Company closed on the Development Agreement with BXLS. The Development Agreement includes 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 KKC. The royalty percentage will initially be in the mid-single digits and, in future years, can vary 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 have granted BXLS a security interest in substantially all of our assets. In addition, concurrent with the Development Agreement, the Company entered into a common stock purchase agreement (Purchase Agreement) with affiliates of BXLS to sell an aggregate of 340,793 shares of the Company’s Class A common stock at $146.72 per share for a total of $50.0 million. The Company 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 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 $294.2 million, which includes $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 the June 24, 2020, the closing date of the Development Agreement. The effective interest rate under the Development Agreement, including transaction costs, is approximately 13.8%. The following table shows the activity within the liability related to sale of future royalties for the nine months ended September 30, 2020: Liability Related to Sale of Future Royalties (in thousands) Transaction date balance $ 294,454 Non-cash interest expense recognized, net of transaction cost amortization 11,077 Balance at September 30, 2020 305,531 Less: Unamortized transaction cost (868 ) Carrying value at September 30, 2020 $ 304,663

Other Income (Expense), Net

Other Income (Expense), Net	9 Months Ended
	Sep. 30, 2020
Other Income And Expenses [Abstract]
Other Income (Expense), Net	6 . Other Income (Expense), Net Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019 Other income (expense), net Investment income $ 104 $ 1,311 $ 2,660 $ 4,812 Interest expense (1,671 ) (2,389 ) (13,183 ) (7,199 ) Non-cash interest expense on liability related to sale of future royalty (10,413 ) — (11,077 ) — Other income (expense) 816 — (10,367 ) 7 Total other income (expense), net $ (11,164 ) $ (1,078 ) $ (31,967 ) $ (2,380 ) Investment Income Interest income consists primarily of interest generated from our cash and cash equivalents. Interest Expense Interest expense consists primarily of interest on our borrowing activities under our loan agreements and the imputed interest from amount due to AbbVie under the Reacquisition 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. Other Income (Expense) Other income (expense) consists primarily of gains and losses on foreign currency exchange, sales of assets, extinguishment of debt, and lease termination. In June 2020, the Company paid off the Term Loans and recorded a loss on the extinguishment of debt of $11.2 million, which consisted primarily of prepayment fees, exit fees and unamortized debt issuance costs. In September 2020, the Company’s sublease agreement for its offices in Plano, Texas was terminated, resulting in recognition of a $0.8 million gain on lease termination. See Note 7, Leases

Leases

Leases	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Leases	7. Leases The Company’s headquarters are located in Plano, Texas, where it leases approximately 122,000 square feet of office space. On September 2, 2020, the Company’s sublease agreement for its offices in Plano, Texas (the Sublease Agreement), was terminated due to the bankruptcy filing of its lessor. In connection with the termination, the Company was relieved from its obligations under the Sublease Agreement and derecognized the right-of-use asset of approximately $5.7 million and operating lease liabilities of approximately $6.5 million as of September 30, 2020, which resulted in a gain on lease termination of $0.8 million recorded in the three and nine months ended September 30, 2020. On October 1, 2020, the Company entered into a lease agreement with the owner of its offices in Plano, Texas (the Plano Lease Agreement), with lease terms extending through June 30, 2022 with an option to renew up to three months. The Company will record approximately $4.8 million as a right-of-use asset and operating lease liabilities in October 2020. The Company leases additional office and laboratory space of approximately 34,890 square feet located in Irving, Texas, with lease terms extending through April 30, 2022 with an option to renew up to four successive three-month 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 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 . The Company does not have control of the space or the construction prior to completion of construction . Therefore, no right-of-use or lease liabilities were recorded in connection with the Lease Agreement as of September 30, 2020 . Under the First Amendment to the Lease Agreement executed in May 2020, the landlord will fund the Company’s leasehold improvements up to $ million, of which the Company has recorded a leasehold incentive obligation of approximately $ 2.1 million as other long-term liabilities as of September 30, 2020 . At September 30, 2020, the weighted average incremental borrowing rate and the weighted average remaining lease term for the operating leases held by the Company were 9.6% and 2.1 years, respectively. During the three and nine months ended September 30, 2020, cash paid for amounts included for the measurement of lease liabilities was $0.7 million and $2.7 million, respectively. During the three and nine months ended September 30, 2020, the Company recorded operating lease expense of $1.0 million and $2.8 million, respectively. The Company has elected to net the amortization of the right-of-use assets and the reduction of the lease liabilities principal in accrued direct research and other current and long-term liabilities in the consolidated statements of cash flows. Supplemental balance sheet information related to the Company’s operating leases is as follows: Balance Sheet Classification As of September 30, 2020 (in thousands) Non-current right-of-use assets Other assets $ 1,167 Current lease liabilities Other current liabilities 564 Non-current lease liabilities Other long-term liabilities 705 Maturities of lease liabilities by fiscal year for the Company’s operating leases: As of September 30, 2020 (in thousands) 2020 (remaining three months) $ 164 2021 667 2022 574 Total lease payments 1,405 Less: Imputed interest (136 ) Present value of lease liabilities $ 1,269

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). The CARES Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the U.S. economy and to provide assistance to individuals, families, and businesses affected by COVID-19. Accordingly, under its provisions, for the nine months ended September 30, 2020, the Company recognized a tax benefit and receivable of $22.1 million associated with the ability to carryback an applicable prior year’s net operating losses to a preceding year to generate a refund. For the three months ended September 30, 2020, the Company’s effective tax rate was a benefit of 0.1% compared to an expense of 0.1% for the three months ended September 30, 2019. The Company’s effective tax rate for the three months ended September 30, 2020 varies with the statutory rate primarily due to valuation allowances on deferred taxes. For the nine months ended September 30, 2020, the Company’s effective tax rate was a benefit of 10.9% compared to an expense of 0.1% for the nine months ended September 30, 2019. The Company’s effective tax rate for the nine months ended September 30, 2020 varies with the statutory rate primarily due to the favorable impact associated with the CARES Act and changes in the valuation allowance related to certain deferred tax assets generated or utilized in the applicable period. The Company’s deferred tax assets for the United States have been fully offset by a valuation allowance at September 30, 2020, and the Company expects to maintain this valuation allowance until there is sufficient evidence that future earnings can be achieved, which is uncertain at this time.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	9. Stock-Based Compensation The following table summarizes stock-based compensation expense reflected in the consolidated statements of operations: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 (in thousands) Research and development $ 4,279 $ 1,885 $ 23,322 $ 5,235 General and administrative 7,301 3,495 $ 22,362 8,855 $ 11,580 $ 5,380 $ 45,684 $ 14,090 Restricted Stock Units (RSUs) The following table summarizes RSUs as of September 30, 2020, under the Second Amended and Restated Long Term Incentive Plan (LTIP Plan) agreement: Number of RSUs Weighted-Average Grant Date Fair Value Outstanding at January 1, 2020 50,000 $ 72.70 Granted 41,776 $ 163.31 Vested — $ — Forfeited — $ — Outstanding at September 30, 2020 91,776 $ 113.94 As of September 30, 2020, the performance targets for the performance-based RSUs have not been met. Accordingly, the total unrecognized stock-based compensation expense related to these performance-based RSUs is approximately $4.2 million. As of September 30, 2020, the Company recognized $0.7 million in compensation expense related to time-based RSUs. Stock Options The following table summarizes stock option activity as of September 30, 2020, and changes during the nine months ended September 30, 2020, under the LTIP and standalone option agreements: Number of Options Weighted-Average Exercise Price Outstanding at January 1, 2020 4,038,949 $ 41.24 Granted 1,045,699 $ 199.49 Exercised (341,187 ) $ 29.67 Forfeited (183,209 ) $ 95.97 Expired (250 ) $ 207.20 Outstanding at September 30, 2020 4,560,002 $ 76.19 Exercisable at September 30, 2020 2,244,139 $ 38.84 Stock-based compensation expense for the three and nine months ended September 30, 2020, included accelerated recognition of expense due to modifications of outstanding stock options as a result of the death of an executive and employees who entered into consulting agreements at the termination of employment, which were considered to be non-substantive services. Accordingly, the Company recognized $0.0 million and $10.0 million for the three and nine months ended September 30, 2020, respectively. As of September 30, 2020, the Company has approximately 288,000 shares of performance-based stock options for which the performance targets have not been met. Accordingly, the total unrecognized stock-based compensation expense related to these performance-based stock options is approximately $34.1 million. The total intrinsic value of all outstanding options and exercisable options at September 30, 2020 was $203.6 million and $142.3 million, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. 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 claims and legal proceedings in which the Company could be involved include challenges to the scope, validity or enforceability of patents relating to its product candidates, and challenges by it to the scope, validity or enforceability of the patents held by others. These may include claims by third parties that the Company infringes their patents. 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. Patel Litigation On October 15, 2020, Toshif Patel filed a complaint for alleged violation of federal securities laws against the Company, its Chief Executive Officer and its Chief Financial Officer in the United States District Court for the Eastern District of Texas. The complaint purports to bring a federal securities class action on behalf of a class of persons who acquired the Company’s common stock between October 15, 2019 and August 7, 2020. The complaint alleges, among other things, that the defendants made false and misleading statements regarding the sufficiency of its MOXIe Part 2 study results to support a single study marketing approval of omaveloxolone for the treatment of FA in the United States. The plaintiff seeks, among other things, the designation of this action as a class action, an award of unspecified compensatory damages and interest, costs, and expenses, including counsel fees and expert fees. The Company believes that the allegations contained in the complaint are without merit and intends to defend the case vigorously. 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.

Net Loss per Share

Net Loss per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Net Loss per Share	11. Net Loss per Share The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 (in thousands, except share and per share data) Numerator Net loss $ (65,456 ) $ (39,694 ) $ (181,976 ) $ (103,228 ) Denominator Weighted-average number of common shares used in net loss per share – basic 33,713,507 30,110,391 33,401,599 30,004,211 Dilutive potential common shares — — — — Weighted-average number of common shares used in net loss per share – diluted 33,713,507 30,110,391 33,401,599 30,004,211 Net loss per share – basic $ (1.94 ) $ (1.32 ) $ (5.45 ) $ (3.44 ) Net loss per share – diluted $ (1.94 ) $ (1.32 ) $ (5.45 ) $ (3.44 ) The number of weighted average options that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive represented 4,560,002 and 4,272,757 shares as of September 30, 2020 and 2019, respectively.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events See Note 7, Leases

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
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 of 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 nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The consolidated balance sheet at December 31, 2019, 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	Summary of Significant Accounting Policies The significant accounting policies used in the preparation of these condensed consolidated financial statements for the three and nine months ended September 30, 2020 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, 2019, except as noted below with respect to the Company’s liability related to the sale of future royalties and as noted within the “Recent Accounting Pronouncements – Recently Adopted Accounting Pronouncements” section.
Liability Related to Sale of Future Royalties	Liability Related to Sale of Future Royalties On June 10, 2020, the Company entered into a Development and Commercialization Funding Agreement with an affiliate of Blackstone Life Sciences, LLC (BXLS) that provides 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 (Development Agreement). The Company accounted for the Development Agreement as a sale of future revenues resulting in a debt classification, primarily because the Company has significant continuing involvement in generating the future revenue on which the royalties are based. The debt will be amortized under the effective interest rate method and, accordingly, the Company is recognizing non-cash interest expense over the estimated term of the Development Agreement. The liability related to sale of future royalties, and the debt amortization, are based on the Company ’ s current estimate of future royalties expected to be paid over the estimated term of the Development Agreement. The Company will periodically assess the expected royalty payments and, if materially different than its previous estimate, will prospectively adjust and recognize the related non-cash interest expense. The transaction costs associated with the liability will be amortized to non-cash interest expense over the estimated term of the Development Agreement . See Note 5 , Liability Related to Sale of Future Royalties , of Notes to Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q.
Fair Value Measurements	Fair Value Measurements The Company categorizes its financial instruments measured at fair value into a three-level fair value hierarchy that prioritizes the inputs used in determining the fair value of the asset or liability. The three levels of the fair value hierarchy are as follows: • Level 1 - Financial instruments that have values based on unadjusted quoted prices for identical assets or liabilities in an active market which the Company has the ability to access at the measurement date. • Level 2 - Financial instruments that have values based on quoted market prices in markets where trading occurs infrequently or that have values based on quoted prices of instruments with similar attributes in active markets. • Level 3 - Financial instruments that have values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset. The Company has determined the fair value of the liability related to the sale of future royalties is based on the Company’s current estimates of future royalties expected to be paid to BXLS, over the life of the arrangement, which are considered Level 3. See Note 5, Liability Related to Sale of Future Royalties
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Topic 842, amended by ASU 2018-11, Leases In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements Revenue from Contracts with Customers In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes .

Liability Related to Sale of _2

Liability Related to Sale of Future Royalties (Tables)	9 Months Ended
	Sep. 30, 2020
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 nine months ended September 30, 2020: Liability Related to Sale of Future Royalties (in thousands) Transaction date balance $ 294,454 Non-cash interest expense recognized, net of transaction cost amortization 11,077 Balance at September 30, 2020 305,531 Less: Unamortized transaction cost (868 ) Carrying value at September 30, 2020 $ 304,663

Other Income (Expense), Net (Ta

Other Income (Expense), Net (Tables)	9 Months Ended
	Sep. 30, 2020
Other Income And Expenses [Abstract]
Summary of Other Income (Expense), Net	Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019 Other income (expense), net Investment income $ 104 $ 1,311 $ 2,660 $ 4,812 Interest expense (1,671 ) (2,389 ) (13,183 ) (7,199 ) Non-cash interest expense on liability related to sale of future royalty (10,413 ) — (11,077 ) — Other income (expense) 816 — (10,367 ) 7 Total other income (expense), net $ (11,164 ) $ (1,078 ) $ (31,967 ) $ (2,380 )

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Summary of Supplemental Balance Sheet Information Related to Operating Leases	Supplemental balance sheet information related to the Company’s operating leases is as follows: Balance Sheet Classification As of September 30, 2020 (in thousands) Non-current right-of-use assets Other assets $ 1,167 Current lease liabilities Other current liabilities 564 Non-current lease liabilities Other long-term liabilities 705
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities by fiscal year for the Company’s operating leases: As of September 30, 2020 (in thousands) 2020 (remaining three months) $ 164 2021 667 2022 574 Total lease payments 1,405 Less: Imputed interest (136 ) Present value of lease liabilities $ 1,269

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock Based Compensation Expense	The following table summarizes stock-based compensation expense reflected in the consolidated statements of operations: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 (in thousands) Research and development $ 4,279 $ 1,885 $ 23,322 $ 5,235 General and administrative 7,301 3,495 $ 22,362 8,855 $ 11,580 $ 5,380 $ 45,684 $ 14,090
Summary of Restricted Stock Units	The following table summarizes RSUs as of September 30, 2020, under the Second Amended and Restated Long Term Incentive Plan (LTIP Plan) agreement: Number of RSUs Weighted-Average Grant Date Fair Value Outstanding at January 1, 2020 50,000 $ 72.70 Granted 41,776 $ 163.31 Vested — $ — Forfeited — $ — Outstanding at September 30, 2020 91,776 $ 113.94
Summary of Stock Option Activity	The following table summarizes stock option activity as of September 30, 2020, and changes during the nine months ended September 30, 2020, under the LTIP and standalone option agreements: Number of Options Weighted-Average Exercise Price Outstanding at January 1, 2020 4,038,949 $ 41.24 Granted 1,045,699 $ 199.49 Exercised (341,187 ) $ 29.67 Forfeited (183,209 ) $ 95.97 Expired (250 ) $ 207.20 Outstanding at September 30, 2020 4,560,002 $ 76.19 Exercisable at September 30, 2020 2,244,139 $ 38.84

Net Loss per Share (Tables)

Net Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Loss per Share	The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 (in thousands, except share and per share data) Numerator Net loss $ (65,456 ) $ (39,694 ) $ (181,976 ) $ (103,228 ) Denominator Weighted-average number of common shares used in net loss per share – basic 33,713,507 30,110,391 33,401,599 30,004,211 Dilutive potential common shares — — — — Weighted-average number of common shares used in net loss per share – diluted 33,713,507 30,110,391 33,401,599 30,004,211 Net loss per share – basic $ (1.94 ) $ (1.32 ) $ (5.45 ) $ (3.44 ) Net loss per share – diluted $ (1.94 ) $ (1.32 ) $ (5.45 ) $ (3.44 )

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details)	9 Months Ended
	Sep. 30, 2020
ASU 2018-11 (Topic 842)
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jan. 1, 2019
New Accounting Pronouncement or Change in Accounting Principle, Prior Period Not Restated [true false]	true
ASU 2018-18 (Topic 606)
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jan. 1, 2020
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false]	true
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true
ASU 2018-15 (Subtopic 350-40)
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jan. 1, 2020
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true

Collaboration Agreements - Addi

Collaboration Agreements - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2009	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Nov. 30, 2021	Jun. 30, 2020	Dec. 31, 2019	Oct. 31, 2019
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Payable to collaborators, net of current portion		$ 71,726		$ 71,726				$ 66,862
Collaboration revenue		1,401	$ 8,242	5,827	$ 23,846
Current portion of deferred revenue		4,688		4,688				4,701
AbbVie
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Payable to collaborators		80,000		80,000			$ 150,000	$ 100,000	$ 330,000
Interest expense		1,700	0	4,900	0
Payable to collaborators, net of current portion		71,700		71,700
AbbVie | Collaborative Arrangement
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration revenue			6,700	0	19,900
Current portion of deferred revenue		0		0
AbbVie | Forecast
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Payable to collaborators						$ 80,000
KKC Agreement | License Agreement Terms
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration revenue		1,200	$ 1,200	3,500	$ 3,500
Current portion of deferred revenue		4,700		4,700
Upfront license fee received	$ 35,000
Collaboration revenue, total milestone payments received in 2010, 2012, 2018				45,000
Collaboration revenue, potential milestone payments		52,000		52,000
Collaboration revenue, additional potential commercial milestone payments		140,000		$ 140,000
Deferred revenue, expected timing of recognition				2021-12
Deferred Revenue		$ 5,900		$ 5,900

Term Loan - Additional Informat

Term Loan - Additional Information (Details) - USD ($)	Jun. 24, 2020	Dec. 20, 2019	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Oct. 09, 2019
Debt Instrument [Line Items]
Repayment of outstanding principal amount				$ 167,170,000	$ 0
Loss on extinguishment of debt			$ 11,200,000	11,183,000	$ 0
Amended and Restated Loan and Security Agreement | Term Loan A
Debt Instrument [Line Items]
Maximum borrowing capacity						$ 80,000,000
Amended and Restated Loan and Security Agreement | Term Loan B
Debt Instrument [Line Items]
Current borrowing capacity						45,000,000
Amended Restated Loan Agreement | Term Loan B
Debt Instrument [Line Items]
Maximum borrowing capacity						$ 75,000,000
Proceeds from long-term debt		$ 75,000,000
Amended Restated Loan Agreement | Term Loan
Debt Instrument [Line Items]
Loam principal amount		$ 155,000,000
Repayment of outstanding principal amount	$ 155,000,000
Debt instrument, exit fee	6,700,000
Debt instrument, prepayment fee	5,400,000
Debt instrument, accrued and unpaid interest	$ 1,000,000
Loss on extinguishment of debt				$ 11,200,000

Liability Related to Sale of _3

Liability Related to Sale of Future Royalties - Additional Information (Details) $ / shares in Units, $ in Thousands	Jun. 24, 2020USD ($)Account$ / sharesshares	Sep. 30, 2020USD ($)shares	Sep. 30, 2019USD ($)
Liability Related To Sale Of Future Royalties [Line Items]
Proceeds from issuance of common stock, net		$ 55,398	$ 0
Number of units of accounting related to consideration received | Account	2
Liability related to sale of future royalties, net	$ 294,200
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%
Common Stock A
Liability Related To Sale Of Future Royalties [Line Items]
Issuance of Common Stock, shares | shares		340,793
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 | shares	340,793
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) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Liability Related To Sale Of Future Royalties [Abstract]
Liability related to sale of future royalties, Transaction date balance	$ 294,454
Non-cash interest expense recognized, net of transaction cost amortization	11,077
Liability related to sale of future royalties, Balance at June 30, 2020	305,531
Less: Unamortized transaction cost	(868)
Liability related to sale of future royalties, Carrying value at June 30, 2020	$ 304,663

Other Income (Expense), Net - S

Other Income (Expense), Net - Summary of Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Other income (expense), net
Investment income	$ 104	$ 1,311	$ 2,660	$ 4,812
Interest expense	(1,671)	(2,389)	(13,183)	(7,199)
Non-cash interest expense on liability related to sale of future royalty	(10,413)	0	(11,077)	0
Other income (expense)	816	0	(10,367)	7
Total other income (expense), net	$ (11,164)	$ (1,078)	$ (31,967)	$ (2,380)

Other Income (Expense), Net - A

Other Income (Expense), Net - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended		9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Other Income And Expenses [Abstract]
Loss on extinguishment of debt		$ 11,200	$ 11,183	$ 0
Gain on lease termination	$ 800		$ 816	$ 0

Leases - Additional Information

Leases - Additional Information (Details)	Oct. 01, 2020	Oct. 15, 2019USD ($)ft²	Sep. 30, 2020USD ($)ft²	Sep. 30, 2020USD ($)ft²	Sep. 30, 2020USD ($)ft²	Sep. 30, 2019USD ($)	Oct. 31, 2020USD ($)
Lessee Lease Description [Line Items]
Gain on lease termination			$ 800,000		$ 816,000	$ 0
Operating lease right-of-use asset			1,167,000	$ 1,167,000	1,167,000
Operating lease liability			$ 1,269,000	$ 1,269,000	$ 1,269,000
Weighted-average remaining lease term			2 years 1 month 6 days	2 years 1 month 6 days	2 years 1 month 6 days
Weighted average incremental borrowing rate			9.60%	9.60%	9.60%
Cash paid for amounts included in the measurement of lease liabilities				$ 700,000	$ 2,700,000
Operating lease, expense				1,000,000	2,800,000
Plano Texas
Lessee Lease Description [Line Items]
Operating lease right of use asset, derecognized			$ 5,700,000	5,700,000	5,700,000
Operating lease liability, derecognized			$ 6,500,000	6,500,000	6,500,000
Gain on lease termination				$ 800,000	$ 800,000
Operating lease, existence of option to extend	true
Operating lease, option to extend					extending through June 30, 2022
Lease expiration date	Jun. 30, 2022
Operating lease, renewal Term	3 months
Operating lease right-of-use asset							$ 4,800
Operating lease liability							$ 4,800
Plano Texas | Office Space
Lessee Lease Description [Line Items]
Area of real estate property | ft²			122,000	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
Operating lease right-of-use asset			$ 0	$ 0	$ 0
Operating lease liability			0	0	0
Lease initial term		16 years
Renewal lease term, option two		one ten-year renewal period
Leasehold improvement maximum amount funded by landlord		$ 31,300
Leasehold incentive obligation included in other long-term liabilities			$ 2,100	$ 2,100	$ 2,100
Irving Texas
Lessee Lease Description [Line Items]
Operating lease, existence of option to extend					true
Operating lease, option to extend					extending through April 30, 2022
Lease expiration date					Apr. 30, 2022
Renewal lease term, option one					four successive three-month periods
Irving Texas | Maximum
Lessee Lease Description [Line Items]
Operating lease, renewal Term			3 months	3 months	3 months
Irving Texas | Office And Laboratory Space
Lessee Lease Description [Line Items]
Area of real estate property | ft²			34,890	34,890	34,890

Leases - Summary of Supplementa

Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Details) $ in Thousands	Sep. 30, 2020USD ($)
Leases [Abstract]
Non-current right-of-use assets	$ 1,167
Current lease liabilities	564
Non-current lease liabilities	$ 705

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands	Sep. 30, 2020USD ($)
Leases [Abstract]
2020 (remaining three months)	$ 164
2021	667
2022	574
Total lease payments	1,405
Less: Imputed interest	(136)
Present value of lease liabilities	$ 1,269

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income tax receivable as per CARES Act	$ 22.1		$ 22.1
Effective income tax rate	(0.10%)	0.10%	(10.90%)	0.10%

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 11,580	$ 5,380	$ 45,684	$ 14,090
Research and development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	4,279	1,885	23,322	5,235
General and administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 7,301	$ 3,495	$ 22,362	$ 8,855

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Restricted Stock Units (Details) - Restricted Stock Unit (RSUs)	9 Months Ended
	Sep. 30, 2020$ / sharesshares
Number of RSUs
Number of RSUs - Beginning balance | shares	50,000
Number of RSUs, Granted | shares	41,776
Number of RSUs, Vested | shares	0
Number of RSUs, Forfeited | shares	0
Number of RSUs - Ending balance | shares	91,776
Weighted-Average Grant Date Fair Value
Weighted-Average Grant Date Fair Value - Beginning balance | $ / shares	$ 72.70
Weighted-Average Grant Date Fair Value, Granted | $ / shares	163.31
Weighted-Average Grant Date Fair Value, Vested | $ / shares	0
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares	0
Weighted-Average Grant Date Fair Value - Ending balance | $ / shares	$ 113.94

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		$ 45,684	$ 14,090
Total intrinsic value of outstanding options	$ 203,600	203,600
Total intrinsic value of exercisable options	142,300	142,300
Performance-based Restricted Stock Unit (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense	4,200	4,200
Time-based Restricted Stock Unit (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		700
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	0	10,000
Performance-based Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 34,100	$ 34,100
Performance-based stock options which have not met performance targets	288,000	288,000

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2020
Number of Options, Abstract
Number of Options, Outstanding - Beginning balance	4,038,949
Number of Options, Granted	1,045,699
Number of Options, Exercised	(341,187)
Number of Options, Forfeited	(183,209)
Number of Options, Expired	(250)
Number of Options, Outstanding - Ending balance	4,560,002
Number of Options, Exercisable	2,244,139
Weighted Average Exercise Price, Abstract
Weighted-Average Exercise Price, Outstanding - Beginning balance	$ 41.24
Weighted-Average Exercise Price, Granted	199.49
Weighted-Average Exercise Price, Exercised	29.67
Weighted-Average Exercise Price, Forfeited	95.97
Weighted-Average Exercise Price, Expired	207.20
Weighted-Average Exercise Price, Outstanding - Ending balance	76.19
Weighted-Average Exercise Price, Exercisable	$ 38.84

Net Loss per Share - Computatio

Net Loss per Share - Computation of Basic and Diluted Net (Loss) Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator
Net loss	$ (65,456)	$ (39,694)	$ (181,976)	$ (103,228)
Denominator
Weighted-average number of common shares used in net loss per share – basic	33,713,507	30,110,391	33,401,599	30,004,211
Dilutive potential common shares	0	0	0	0
Weighted-average number of common shares used in net loss per share – diluted	33,713,507	30,110,391	33,401,599	30,004,211
Net loss per share – basic	$ (1.94)	$ (1.32)	$ (5.45)	$ (3.44)
Net loss per share – diluted	$ (1.94)	$ (1.32)	$ (5.45)	$ (3.44)

Net Loss per Share - Additional

Net Loss per Share - Additional Information (Details) - shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Weighted average anti-dilutive shares excludes from computation of earnings per share	4,560,002	4,272,757