Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-37985 | |
Entity Registrant Name | ANAPTYSBIO, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-3828755 | |
Entity Address, Address Line One | 10421 Pacific Center Court | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92121 | |
City Area Code | 858 | |
Local Phone Number | 362-6295 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | ANAB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,047,596 | |
Entity Central Index Key | 0001370053 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 146,552 | $ 113,596 |
Receivable from collaborative partners | 5,000 | 0 |
Australian tax incentive receivable | 0 | 174 |
Short-term investments | 275,664 | 313,486 |
Prepaid expenses and other current assets | 3,772 | 6,960 |
Total current assets | 430,988 | 434,216 |
Property and equipment, net | 1,481 | 1,445 |
Long-term investments | 45,707 | 73,128 |
Other long-term assets | 1,913 | 148 |
Restricted cash | 60 | 60 |
Total assets | 480,149 | 508,997 |
Current liabilities: | ||
Accounts payable | 10,921 | 5,443 |
Accrued expenses | 14,102 | 8,761 |
Notes payable, current portion | 4,781 | 7,574 |
Other current liabilities | 819 | 58 |
Total current liabilities | 30,623 | 21,836 |
Other long-term liabilities | 1,105 | 796 |
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 10,000 shares authorized and no shares, issued or outstanding at June 30, 2019 and December 31, 2018, respectively | 0 | 0 |
Common stock, $0.001 par value, 500,000 shares authorized, 27,045 shares and 26,922 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 27 | 27 |
Additional paid in capital | 640,550 | 633,251 |
Accumulated other comprehensive income (loss) | 574 | (223) |
Accumulated deficit | (192,730) | (146,690) |
Total stockholders’ equity | 448,421 | 486,365 |
Total liabilities and stockholders’ equity | $ 480,149 | $ 508,997 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 27,044,527 | 26,922,000 |
Common stock, shares outstanding (in shares) | 27,044,527 | 26,922,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Collaboration revenue | $ 5,000 | $ 0 | $ 5,000 | $ 0 |
Operating expenses: | ||||
Research and development | 27,350 | 10,583 | 47,981 | 22,393 |
General and administrative | 4,307 | 3,832 | 8,448 | 7,779 |
Total operating expenses | 31,657 | 14,415 | 56,429 | 30,172 |
Loss from operations | (26,657) | (14,415) | (51,429) | (30,172) |
Other income (expense), net: | ||||
Interest expense | (281) | (436) | (601) | (887) |
Interest income | 2,957 | 1,297 | 5,945 | 2,482 |
Other income (expense), net | (41) | (64) | (34) | (127) |
Total other income (expense), net | 2,635 | 797 | 5,310 | 1,468 |
Loss before income taxes | (24,022) | (13,618) | (46,119) | (28,704) |
Provision for income taxes | 60 | 0 | 79 | 0 |
Net loss | (23,962) | (13,618) | (46,040) | (28,704) |
Unrealized income (loss) on available for sale securities, net of tax of $99, $0, $214 and $0, respectively | 370 | 124 | 797 | (250) |
Comprehensive loss | $ (23,592) | $ (13,494) | $ (45,243) | $ (28,954) |
Net loss per common share: | ||||
Basic and diluted (in dollars per share) | $ (0.89) | $ (0.57) | $ (1.70) | $ (1.20) |
Weighted-average number of shares outstanding: | ||||
Basic and diluted (in shares) | 27,026 | 23,932 | 27,004 | 23,867 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Unrealized income (loss) on available for sale securities, tax | $ 99 | $ 0 | $ 214 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (46,040) | $ (28,704) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 239 | 118 |
Stock-based compensation | 6,510 | 4,808 |
Accretion/amortization of investments, net | (1,926) | (255) |
Non-cash interest expense | 332 | 317 |
Changes in operating assets and liabilities: | ||
Receivable from collaborative partners | 5,000 | 0 |
Australian tax incentive receivable | 174 | 1,449 |
Prepaid expenses and other assets | 1,435 | (1,186) |
Accounts payable and other liabilities | 12,660 | 2,097 |
Net cash used in operating activities | (31,616) | (21,356) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of investments | (132,313) | (90,411) |
Sales and maturities of investments | 200,267 | 90,031 |
Purchases of property and equipment | (421) | (536) |
Net provided by (used in) investing activities | 67,533 | (916) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock, upon the exercise of stock options | 789 | 1,469 |
Proceeds from issuance of common stock, upon the exercise of warrants | 0 | 76 |
Payments on notes payable | (3,750) | (3,125) |
Payments for offering costs, net | 0 | (280) |
Net cash used in financing activities | (2,961) | (1,860) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 32,956 | (24,132) |
Cash, cash equivalents and restricted cash, beginning of period | 113,656 | 81,249 |
Cash, cash equivalents and restricted cash, end of period | 146,612 | 57,117 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Interest paid | 301 | 585 |
Non-cash investing and financing activities: | ||
Amounts accrued for property and equipment | $ 14 | $ 194 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
Stockholders' Equity, Beginning Balance at Dec. 31, 2017 | $ 307,581 | $ 24 | $ 393,017 | $ (426) | $ (85,034) |
Stockholders' Equity, Beginning Balance (in shares) at Dec. 31, 2017 | 23,791,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under employee stock plans | 72 | 72 | |||
Shares issued under employee stock plans (in shares) | 9,000 | ||||
Warrants exercised | 75 | 75 | |||
Warrants exercised (in shares) | 17,000 | ||||
Stock-based compensation | 2,260 | 2,260 | |||
Comprehensive income (loss), net | (375) | (375) | |||
Net loss | (15,086) | (15,086) | |||
Stockholders' Equity, Ending Balance at Mar. 31, 2018 | 294,527 | $ 24 | 395,424 | (801) | (100,120) |
Stockholders' Equity, Ending Balance (in shares) at Mar. 31, 2018 | 23,817,000 | ||||
Stockholders' Equity, Beginning Balance at Dec. 31, 2017 | 307,581 | $ 24 | 393,017 | (426) | (85,034) |
Stockholders' Equity, Beginning Balance (in shares) at Dec. 31, 2017 | 23,791,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (28,704) | ||||
Stockholders' Equity, Ending Balance at Jun. 30, 2018 | 284,979 | $ 24 | 399,370 | (677) | (113,738) |
Stockholders' Equity, Ending Balance (in shares) at Jun. 30, 2018 | 24,029,000 | ||||
Stockholders' Equity, Beginning Balance at Mar. 31, 2018 | 294,527 | $ 24 | 395,424 | (801) | (100,120) |
Stockholders' Equity, Beginning Balance (in shares) at Mar. 31, 2018 | 23,817,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under employee stock plans | 1,397 | 1,397 | |||
Shares issued under employee stock plans (in shares) | 212,000 | ||||
Warrants exercised | 1 | 1 | |||
Stock-based compensation | 2,548 | 2,548 | |||
Comprehensive income (loss), net | 124 | 124 | |||
Net loss | (13,618) | (13,618) | |||
Stockholders' Equity, Ending Balance at Jun. 30, 2018 | 284,979 | $ 24 | 399,370 | (677) | (113,738) |
Stockholders' Equity, Ending Balance (in shares) at Jun. 30, 2018 | 24,029,000 | ||||
Stockholders' Equity, Beginning Balance at Dec. 31, 2018 | 486,365 | $ 27 | 633,251 | (223) | (146,690) |
Stockholders' Equity, Beginning Balance (in shares) at Dec. 31, 2018 | 26,922,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under employee stock plans | 574 | 574 | |||
Shares issued under employee stock plans (in shares) | 84,000 | ||||
Stock-based compensation | 2,867 | 2,867 | |||
Comprehensive income (loss), net | 427 | 427 | |||
Net loss | (22,078) | (22,078) | |||
Stockholders' Equity, Ending Balance at Mar. 31, 2019 | 468,155 | $ 27 | 636,692 | 204 | (168,768) |
Stockholders' Equity, Ending Balance (in shares) at Mar. 31, 2019 | 27,006,000 | ||||
Stockholders' Equity, Beginning Balance at Dec. 31, 2018 | $ 486,365 | $ 27 | 633,251 | (223) | (146,690) |
Stockholders' Equity, Beginning Balance (in shares) at Dec. 31, 2018 | 26,922,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under employee stock plans (in shares) | 122,705 | ||||
Net loss | $ (46,040) | ||||
Stockholders' Equity, Ending Balance at Jun. 30, 2019 | 448,421 | $ 27 | 640,550 | 574 | (192,730) |
Stockholders' Equity, Ending Balance (in shares) at Jun. 30, 2019 | 27,045,000 | ||||
Stockholders' Equity, Beginning Balance at Mar. 31, 2019 | 468,155 | $ 27 | 636,692 | 204 | (168,768) |
Stockholders' Equity, Beginning Balance (in shares) at Mar. 31, 2019 | 27,006,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under employee stock plans | 215 | 215 | |||
Shares issued under employee stock plans (in shares) | 39,000 | ||||
Stock-based compensation | 3,643 | 3,643 | |||
Comprehensive income (loss), net | 370 | 370 | |||
Net loss | (23,962) | (23,962) | |||
Stockholders' Equity, Ending Balance at Jun. 30, 2019 | $ 448,421 | $ 27 | $ 640,550 | $ 574 | $ (192,730) |
Stockholders' Equity, Ending Balance (in shares) at Jun. 30, 2019 | 27,045,000 |
Description of the Business
Description of the Business | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business AnaptysBio, Inc. (“we,” “us,” “our,” or the “Company”) was incorporated in the state of Delaware in November 2005. We are a biotechnology company developing first-in-class antibody product candidates focused on unmet medical needs in inflammation. We develop our product candidates using our proprietary, antibody discovery technology platform, which is designed to replicate, in vitro , the natural process of antibody generation. We currently generate revenue from milestones achieved under our collaborative research and development arrangements. Since our inception, we have devoted our primary effort to raising capital and research and development activities. Our financial support has been provided primarily from the sale of our common and preferred stock, as well as through funds received under our collaborative research and development agreements. Going forward, as we continue our expansion, we may seek additional financing and/or strategic investments. However, there can be no assurance that any additional financing or strategic investments will be available to us on acceptable terms, if at all. If events or circumstances occur such that we do not obtain additional funding, we will most likely be required to reduce our plans and/or certain discretionary spending, which could have a material adverse effect on our ability to achieve our intended business objectives. Management believes its currently available resources will provide sufficient funds to enable the Company to meet its operating plans for at least the next twelve months. The accompanying consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been omitted. The accompanying unaudited consolidated financial statements include all known adjustments necessary for a fair presentation of the results of interim periods as required by U.S. GAAP. These adjustments consist primarily of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Also, certain reclassifications have been made to 2018 financial information to conform to the current year presentation of long-term liabilities on the Consolidated Balance Sheets. Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The financial statements should be read in conjunction with our audited financial statements for the year ended December 31, 2018 , included in our Annual Form 10-K. Basis of Consolidation The accompanying consolidated financial statements include us and our wholly-owned Australian subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. We operate in one reportable segment and our functional and reporting currency is the U.S. dollar. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. We base our estimates and assumptions on historical experience when available and on various factors that we believe to be reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Our actual results could differ from these estimates under different assumptions or conditions. Leases Prior to January 1, 2019, we recorded our leases in accordance with Accounting Standard Codification (ASC) Topic 840, Leases, and all current leases were classified as operating leases. Rent expense was recognized on a straight-line basis over the terms of the leases and, accordingly, we recorded the cumulative difference between cash rent payments and the recognition of rent expense as a deferred rent liability. When an operating lease included lease incentives, such as a rent abatements or leasehold improvement allowances, or required fixed escalations of the minimum lease payments, the aggregate rental expense, including such incentives or increases, was recognized on a straight-line basis over the term of the lease. Effective January 1, 2019, we adopted Accounting Standard Update (ASU) 2016-02, ASC 842, Leases, under which all outstanding leases continued to be classified as operating leases. Rent expense is recognized on a straight-line basis. When an operating lease includes rent abatements or requires fixed escalations of the minimum lease payments, the aggregate rental expense is recognized on a straight-line basis over the term of the lease. When an operating lease includes lease incentives such as leasehold improvement allowances, the lease incentive is included in the right-of-use, or “ROU”, asset. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the date of adoption of ASC 842, or the lease commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. We account for fixed lease components separately from non-lease components. Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common equivalent shares outstanding for the period, as well as any dilutive effect from outstanding stock options and warrants using the treasury stock method. For each period presented, there is no difference in the number of shares used to calculate basic and diluted net loss per share. The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive (in common stock equivalent shares): Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Options to purchase common stock 2,525 2,542 2,443 2,572 Warrants to purchase common stock — — — 4 Total 2,525 2,542 2,443 2,576 Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, Leases (Topic 842) , which requires that lessees recognize a right-of-use, or “ROU”, asset and a related lease liability on the balance sheet for all leases with a term longer than 12 months. Topic 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ; ASU 2018-10, Codification Improvements to Topic 842, Leases ; ASU 2018-11, Targeted Improvements; and ASU 2019-01, Leases (Topic 842): Codification Improvements . ASU 2016-02 became effective for our annual reporting period beginning January 1, 2019, including interim periods thereafter. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (i) its effective date or (ii) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We adopted this standard on January 1, 2019 and used the effective date as our date of initial application. Upon adoption, we elected the package of transition practical expedients, which allowed us to carry forward prior conclusions related to whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases and initial direct costs for existing leases. We also made an accounting policy election to not recognize leases with an initial term of 12 months or less within our consolidated balance sheets and to recognize those lease payments on a straight-line basis in our consolidated statements of operations over the lease term. Adoption of the new standard resulted in the recording of operating lease ROU assets and lease liabilities of approximately $2.1 million and $2.3 million as of January 1, 2019, respectively related to our real estate leases. Adoption of this new standard did not have a material impact on our consolidated statements of operations or cash flows. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326), which changes the accounting treatment for recognizing the impairment of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also eliminates the other-than-temporary impairment model for available-for-sale (AFS) debt securities. Entities will begin to recognize credit losses on AFS debt securities as allowances rather than as reductions in the carrying value of the securities. Impairment that is not credit-related impairment will continue to be recognized in other comprehensive income and entities will no longer consider the length of time a security has been in an unrealized loss position when determining whether a credit loss exists. ASU 2016-13 becomes effective for annual and interim periods beginning after December 15, 2019; early adoption is permitted. We believe that the adoption of this standard will not have a material impact on our consolidated financial statements. |
Balance Sheet Accounts and Supp
Balance Sheet Accounts and Supplemental Disclosures | 6 Months Ended |
Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Accounts and Supplemental Disclosures | Balance Sheet Accounts and Supplemental Disclosures Property and Equipment Property and equipment consist of the following: (in thousands) June 30, 2019 December 31, 2018 Laboratory equipment $ 4,528 $ 4,287 Office furniture and equipment 807 780 Leasehold improvements 575 575 Property and equipment, gross 5,910 5,642 Less: accumulated depreciation and amortization (4,429 ) (4,197 ) Total property and equipment, net $ 1,481 $ 1,445 Accrued Expenses Accrued expenses consist of the following: (in thousands) June 30, 2019 December 31, 2018 Accrued compensation and related expenses $ 1,909 $ 2,421 Accrued professional fees 496 442 Accrued research, development and manufacturing expenses 11,360 5,577 Other 337 321 Total accrued expenses $ 14,102 $ 8,761 |
Collaborative Research and Deve
Collaborative Research and Development Agreements | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Collaborative Research and Development Agreements | Collaborative Research and Development Agreements TESARO Collaboration In March 2014, we entered into a Collaboration and Exclusive License Agreement, or the TESARO Agreement, with TESARO, Inc. and TESARO Development, Inc., or collectively, TESARO, an oncology-focused biopharmaceutical company now a part of GlaxoSmithKline. Under the terms of the agreement, we agreed to perform certain discovery and early preclinical development of therapeutic antibodies with the goal of generating immunotherapy antibodies for subsequent preclinical, clinical, regulatory and commercial development to be performed by TESARO. Under the terms of the agreement, TESARO paid an upfront license fee of $17.0 million in March 2014 and agreed to provide funding to us for research and development services related to antibody discovery programs for three specific targets. In November 2014, we and TESARO entered into Amendment No. 1 to the Agreement to add an antibody discovery program against an undisclosed four th target for an upfront license fee of $2.0 million . For each development program, we are eligible to receive milestone payments of up to $18.0 million if certain preclinical and clinical trial events are achieved by TESARO, up to an additional $90.0 million if certain U.S. and European regulatory submissions and approvals in multiple indications are achieved, and up to an additional $165.0 million upon the achievement of specified levels of annual worldwide net sales. We will also be eligible to receive tiered single-digit royalties related to worldwide net sales of products developed under the collaboration. Unless earlier terminated by either party upon specified circumstances, the agreement will terminate, with respect to each specific developed product, upon the latter of the 12 th anniversary of the first commercial sale of the product or the expiration of the last to expire of any patent. Prior to the adoption of ASC 606, Revenue from Contracts with Customers , we determined that the upfront license fees and research funding under the agreement, as amended, should be accounted for as a single unit of accounting and that the upfront license fees should be deferred and recognized as revenue over the same period that the research and development services are performed. In December 2015, we determined that the research and development services would be extended through December 31, 2016. As a result, the period over which the unrecognized license fees and milestones were recognized was extended through December 31, 2016, and have since been recognized in full. We assessed this arrangement in accordance with ASC 606 and concluded that the contract counterparty, TESARO, is a customer. We identified the following material promises under the TESARO Agreement: (1) the licenses under certain patent rights relating to six discovery programs (four targets) and transfer of certain development and regulatory information, (2) R&D services and (3) Joint Steering Committee meetings. We considered the research and discovery capabilities of TESARO for these specific programs, TESARO’s inability to sub-license, and the fact that the discovery and optimization of these antibodies is proprietary and could not, at the time of the contract inception, be provided by other vendors, to conclude that the license does not have stand-alone functionality and is therefore not distinct. Additionally, we determined that the steering committee participation would not have been provided without the R&D services and license agreement. Based on these assessments, we identified all services to be interrelated, and therefore concluded that the promises should be combined into a single performance obligation at the inception of the arrangement. As of June 30, 2019 , the transaction price includes the upfront payment, research reimbursement revenue, and milestones earned to date, which are allocated in their entirety to the single performance obligation. Future potential milestones are generally not included as they are subject to revenue constraint. As part of the constraint evaluation, we considered numerous factors including the fact that the receipt of milestones is outside of our control and contingent upon success in future clinical trials, an outcome that is difficult to predict, and the licensees’ efforts. Any consideration related to sales-based milestones, including royalties, will be recognized when the related sales occur as they were determined to relate predominantly to the IP license granted to TESARO and therefore have also been excluded from the transaction price. We will re-evaluate the variable transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur. During the three months ended June 30, 2019, we recognized one clinical milestone for $5.0 million which we expect to be achieved during the second half of 2019. This milestone was recognized upon the evaluation of recent actions, efforts, and public disclosures made by TESARO that led to the determination that a significant reversal of revenue would not be probable. No other future clinical or regulatory milestones have been included in the transaction price, as all other milestone amounts continued to be subject to the revenue constraint. Milestones recognized through June 30, 2019 under the TESARO Agreement are as follows: Anti-PD-1 Anti-TIM-3 Anti-LAG-3 Milestone Event Amount Quarter Recognized Amount Quarter Recognized Amount Quarter Recognized Initiated in vivo toxicology studies using good laboratory practices (GLPs) $1.0M Q2'15 $1.0M Q4'15 $1.0M Q3'16 IND clearance from the FDA $4.0M Q1'16 $4.0M Q2'16 $4.0M Q2'17 Phase 2 clinical trial initiation $3.0M Q2'17 $3.0M Q4'17 — — Phase 3 clinical trial initiation - first indication $5.0M Q3'18 — — — — Phase 3 clinical trial initiation - second indication $5.0M Q2'19 — — — — Milestones achieved during the discovery period were recognized as revenue pro-rata through December 31, 2016. Milestones achieved during fiscal 2017 were recognized as revenue in the period earned, while milestones after December 31, 2017 are recognized upon determination that a significant reversal of revenue would not be probable. Cash is generally received within 30 days of milestone achievement. We recognized $5.0 million in revenue under this agreement during the three and six months ended June 30, 2019 and no revenue during the three and six months ended June 30, 2018 . Antibody Generation Agreement with Celgene Corporation In December 2011, we entered into a license and collaboration agreement with Celgene, or the Celgene Agreement, to develop therapeutic antibodies against multiple targets. We granted Celgene the option to obtain worldwide commercial rights to antibodies generated against each of the targets under the agreement, which option was triggered on a target-by-target basis by our delivery of antibodies meeting certain pre-specified parameters pertaining to each target under the agreement. The agreement provided for an upfront payment of $6.0 million from Celgene, which we received in 2011 and recognized through 2014, milestone payments of up to $53.0 million per target, low single-digit royalties on net sales of antibodies against each target, and reimbursement of specified research and development costs. We assessed this arrangement in accordance with ASC 606 and concluded that the contract counterparty, Celgene, is a customer. We identified the following material promises under the Celgene Agreement: (1) the licenses under certain patent rights relating to four targets and transfer of certain development and regulatory information, (2) R&D services, (3) a written report documenting findings and (4) Steering Committee meetings. We considered the research and discovery capabilities of Celgene, Celgene’s inability to sub-license the four targets, and the fact that the discovery and optimization of these antibodies is proprietary and could not, at the time of the contract inception, be provided by other vendors, to conclude that the license does not have stand-alone functionality and is therefore not distinct. Additionally, we determined that the report of findings and steering committee participation would not have been provided without the R&D services and license agreement. Based on these assessments, we identified all services to be interrelated, and therefore concluded that the promises should be combined into a single performance obligation at the inception the arrangement. As of June 30, 2019 , the transaction price includes the upfront payment, success fees, expense reimbursement, and milestones earned to date, which are allocated in their entirety to the single performance obligation. None of the future clinical or regulatory milestones have been included in the transaction price, as all milestone amounts were subject to the revenue constraint. As part of the constraint evaluation, we considered numerous factors, including the fact that the receipt of milestones is outside of our control and contingent upon success in future clinical trials and the licensees’ efforts. Any consideration related to sales-based milestones, including royalties, will be recognized when the related sales occur as they were determined to relate predominantly to the IP license granted to Celgene and therefore have also been excluded from the transaction price. We will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur. Milestones achieved through June 30, 2019 under the Celgene Agreement are as follows: Anti-PD-1 Milestone Event Amount Quarter Recognized Completion of first in vivo toxicology studies using GLPs $0.5M Q2'16 Phase 1 clinical trial initiation $1.0M Q4'16 Revenue from future contingent milestone payments are recognized upon determination that a significant reversal of revenue would not be probable. Cash is generally received within 30 days of milestone achievement. There was no revenue recognized under this agreement during the three and six months ended June 30, 2019 and 2018. |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable On December 24, 2014, we entered into a Loan and Security Agreement, as amended from time to time, the Loan Agreement, with a bank and a financial institution whereby we may borrow up to $15.0 million in three separate draws of $5.0 million each. The Term A Loans, for an aggregate of $5.0 million , were drawn on December 24, 2014 with a fixed interest rate of 6.97% . In January 2016, the Loan Agreement was amended to combine Term B Loans and Term C Loans for a total of $10.0 million available for draw through December 31, 2016 and delay the beginning of our Term A Loans’ principal repayments from February 1, 2016 until February 1, 2017. The Term B Loans and Term C Loans became available for draw on July 1, 2016. In December 2016, we further amended the Loan Agreement to (i) allow for the Term B Loans and Term C Loans to be drawn on December 30, 2016, (ii) delay principal repayments of all Term Loans until February 1, 2018 and (iii) amend the interest rate for each Term Loan. The Term B Loans and the Term C Loans were drawn on December 30, 2016, and Term A, B and C Loans are now collectively referred to as the Term Loans. Principal repayments began in February 2018, and as of June 30, 2019 , there are 7 monthly principal and interest payments remaining on the Term Loans, with final maturity in January 2020. The Term Loans bear interest equal to the greater of 3-month U.S. LIBOR plus 6.37% or 7.3% . The interest rate was 8.87% as of June 30, 2019 . The costs incurred to issue the Term Loans were deferred and are included in the discount to the carrying value of the Term Loans in the accompanying balance sheet. The Term Loans also include a final payment fee of $0.8 million due at the earlier of prepayment or the maturity date of the Term Loans. The deferred costs and the final payment fee are being amortized to interest expense over the expected term of the Term A Loans using the effective interest method. As of June 30, 2019 , the carrying amount of the Term Loans was $4.8 million , which includes amortized final payment fees of $0.4 million and is classified as current liabilities as of June 30, 2019 . The effective interest rate on the Term Loans at June 30, 2019 was 13.27% . As of June 30, 2019 , future principal maturities of the Term Loans were $3.8 million and $0.6 million during the remainder of 2019 and 2020, respectively. The Term Loans are secured by a first priority interest in most of our assets, excluding intellectual property. As of June 30, 2019 |
Fair Value Measurements and Ava
Fair Value Measurements and Available for Sale Investments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Available for Sale Investments | Fair Value Measurements and Available for Sale Investments Fair Value Measurements Our financial instruments consist principally of cash, cash equivalents, restricted cash, short-term and long-term investments, receivables, accounts payable, and notes payable. Certain of our financial assets and liabilities have been recorded at fair value in the consolidated balance sheet in accordance with the accounting standards for fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 - Unobservable inputs that are supported by little or no market activities, therefore requiring an entity to develop its own assumptions. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes our assets and liabilities that require fair value measurements on a recurring basis and their respective input levels based on the fair value hierarchy: Fair Value Measurements at End of Period Using: (in thousands) Fair Quoted Market Significant Significant At June 30, 2019 Money market funds (1) $ 127,844 $ 127,844 $ — $ — Mutual funds (1) 8,170 8,170 — — U.S. Treasury securities (2) 112,676 112,676 — — Certificates of deposit (2) 6,155 — 6,155 — Agency securities (2) 61,684 — 61,684 — Commercial and corporate obligations (1)(2) 145,907 — 145,907 — At December 31, 2018 Money market funds (1) $ 87,213 $ 87,213 $ — $ — Mutual funds (1) 7,967 7,967 — — U.S. Treasury securities (2) 164,245 164,245 — — Certificates of deposit (2) 4,784 — 4,784 — Agency securities (1)(2) 81,296 — 81,296 — Commercial and corporate obligations (1)(2) 153,983 — 153,983 — (1) Included in cash and cash equivalents, and restricted cash in the accompanying consolidated balance sheets. (2) Included in short-term or long-term investments in the accompanying consolidated balance sheets depending on the respective maturity date. The following methods and assumptions were used to estimate the fair value of our financial instruments for which it is practicable to estimate that value: Marketable Securities. For fair values determined by Level 1 inputs, which utilize quoted prices in active markets for identical assets, the level of judgment required to estimate fair value is relatively low. For fair values determined by Level 2 inputs, which utilize quoted prices in less active markets for similar assets, the level of judgment required to estimate fair value is also considered relatively low. Fair Value of Other Financial Instruments The fair value of our other financial instruments estimated as of June 30, 2019 and December 31, 2018 are presented below: June 30, 2019 December 31, 2018 Carrying Fair Carrying Fair Notes payable $ 4,781 $ 5,084 $ 8,199 $ 8,806 The following methods and assumptions were used to estimate the fair value of our notes payable: Notes Payable —We use the income approach to value the aforementioned debt instrument. We use a present value calculation to discount principal and interest payments and the final maturity payment on these liabilities using a discounted cash flow model based on observable inputs. We discount these debt instruments based on what the current market rates would offer us as of the reporting date. Based on the assumptions used to value these liabilities at fair value, these debt instruments are categorized as Level 2 in the fair value hierarchy. The carrying amounts of certain of our financial instruments, including cash and cash equivalents, Australian tax incentive receivable, accounts payable, and accrued expenses approximate fair value due to their short-term nature. Available for Sale Investments We invest our excess cash in agency securities, debt instruments of financial institutions and corporations, commercial obligations, and U.S. Treasury securities, which we classify as available-for-sale investments. These investments are carried at fair value and are included in the tables above. The aggregate market value, cost basis, and gross unrealized gains and losses of available-for-sale investments by security type, classified in cash equivalents, short-term and long-term investments as of June 30, 2019 are as follows: (in thousands) Amortized Gross Gross Total Agency securities (1) $ 61,558 $ 133 $ (7 ) $ 61,684 Certificates of deposit (2) 6,111 44 — 6,155 Commercial and corporate obligations (3) 145,548 366 (7 ) 145,907 U.S. Treasury securities (4) 112,363 319 (6 ) 112,676 Total available-for-sale investments $ 325,580 $ 862 $ (20 ) $ 326,422 (1) Of our outstanding agency securities, $47.8 million have maturity dates of less than one year and $13.9 million have a maturity date of between one to two years as of June 30, 2019 . (2) Of our outstanding certificates of deposit, $1.0 million have a maturity date of less than one year and $5.2 million have a maturity date of between one to two years as of June 30, 2019 . (3) Of our outstanding commercial and corporate obligations, $131.9 million have maturity dates of less than one year and $14.0 million have a maturity date of between one to two years as of June 30, 2019 . (4) Of our outstanding U.S. Treasury securities $100.1 million have maturity dates of less than one year and $12.6 million have a maturity date of between one to two years as of June 30, 2019 . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock Of the 500,000,000 shares of common stock authorized, 27,044,527 shares were issued and outstanding as of June 30, 2019 . Common stock reserved for future issuance upon the exercise, issuance or conversion of the respective equity instruments at June 30, 2019 are as follows: Issued and Outstanding: Stock options 2,512,033 Shares Reserved For: 2017 Equity Incentive Plan 2,615,613 2017 Employee Stock Purchase Plan 725,132 Total 5,852,778 |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Equity Incentive Plans 2017 Equity Incentive Plan On January 12, 2017, our board of directors and stockholders approved and adopted the 2017 Equity Incentive Plan, or the 2017 Plan. The 2017 Plan became effective upon the execution and delivery of the underwriting agreement for our initial public offering on January 26, 2017, and replaced our existing 2006 Equity Incentive Plan, or the 2006 Plan. Under the 2017 Plan, we may grant stock options, stock appreciation rights, restricted stock, restricted stock units and other awards to individuals who are then our employees, officers, directors or consultants. In addition, the number of shares of stock available for issuance under the 2017 Plan will be automatically increased each January 1, beginning on January 1, 2018, by 4% of the aggregate number of outstanding shares of our common stock as of the immediately preceding December 31 or such lesser number as determined by our board of directors. The 2017 Plan automatically increased by 1,076,877 shares as of January 1, 2019. Employee Stock Purchase Plan On January 12, 2017, our board of directors and stockholders approved and adopted the 2017 Employee Stock Purchase Plan or the ESPP. The ESPP became effective upon the execution and delivery of the underwriting agreement for our initial public offering on January 26, 2017. In addition, the number shares of stock available for issuance under the ESPP will be automatically increased each January 1, beginning on January 1, 2018, by 1% of the aggregate number of outstanding shares of our common stock as of the immediately preceding December 31 or such lesser number as determined by our board of directors. The ESPP automatically increased by 269,219 shares as of January 1, 2019. Stock Options Stock options granted to employees generally vest over a four -year period while stock options granted to directors vest over a one year period. Each have a maximum term of ten years from the date of grant, subject to earlier cancellation prior to vesting upon cessation of service to us. A summary of the activity related to stock option awards during the six months ended June 30, 2019 is as follows: Shares Weighted-Average Weighted-Average Aggregate Outstanding at January 1, 2019 2,152,455 $ 27.55 Granted 539,400 $ 69.02 Exercises (122,705 ) $ 6.43 Forfeitures and cancellations (57,117 ) $ 69.45 Outstanding at June 30, 2019 2,512,033 $ 36.53 7.27 $ 70,414 Exercisable at June 30, 2019 1,398,990 $ 19.46 6.06 $ 57,308 Stock-Based Compensation Expense The estimated fair values of stock option awards granted to employees were determined on the date of grant using the Black-Scholes option valuation model with the following weighted average assumptions: Six Months Ended 2019 2018 Risk-free interest rate 2.5 % 2.6 % Expected volatility 68.5 % 68.5 % Expected dividend yield — % — % Expected term (in years) 6.25 6.25 Weighted average grant date fair value per share $ 44.02 $ 67.05 We determine the appropriate risk free interest rate, expected term for employee stock-based awards, contractual term for non-employee stock-based awards, and volatility assumptions. The weighted-average expected option term for employee and non-employee stock based awards reflects the application of the simplified method, which defines the life as the average of the contractual term of the options and the weighted average vesting period for all option tranches. Estimated volatility incorporates historical volatility of our stock price as well as similar entities whose share prices are publicly available. The risk free interest rate is based upon U.S. Treasury securities with remaining terms similar to the expected or contractual term of the stock-based payment awards. The assumed dividend yield is based on our expectation of not paying dividends in the foreseeable future. Total non-cash stock-based compensation expense for all stock awards that was recognized in the consolidated statements of operations and comprehensive loss is as follows: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Research and development $ 1,649 $ 899 $ 2,889 $ 1,655 General and administrative 1,994 1,649 3,621 3,153 Total $ 3,643 $ 2,548 $ 6,510 $ 4,808 At June 30, 2019 , there was $37.7 million of unrecognized compensation cost related to unvested stock option awards, which is expected to be recognized over a remaining weighted average vesting period of 2.69 years |
Australia Research and Developm
Australia Research and Development Tax Incentive | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Australia Research and Development Tax Incentive | Australia Research and Development Tax Incentive Our Australian subsidiary, which conducts core research and development activities on our behalf, is eligible to receive a 43.5% refundable tax incentive for qualified research and development activities during fiscal 2019 and fiscal 2018 . For the three and six months ended June 30, 2019 , there were no eligible expenditures incurred in Australia, therefore no tax incentive receivable was recorded. For the three and six months ended June 30, 2018 , we recorded a less than $0.1 million reduction to research and development expenses in the consolidated statements of operations and comprehensive loss for eligible expenses. We received $0.2 million and $1.5 million in cash during the six months ended June 30, 2019 and 2018 , respectively, related to the tax incentive. As of June 30, 2019 , we had no |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases We have two non-cancellable office leases with remaining lease terms of approximately 2.25 years, each of which are classified as operating leases. Only one of our leases has remaining renewal options, which includes three options to renew for one additional year. The exercise of lease renewal options is at our sole discretion, which we currently do not anticipate exercising and as such were not recognized as part of our ROU asset and lease liabilities. Our lease payments are fixed, and we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease ROU assets and lease liabilities are recorded based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, we used our incremental borrowing rate based on the information available at effective date of adoption in determining the present value of future payments. The weighted-average discount rate used was 8.59% . Our balance sheet includes our ROU assets and lease liabilities as follows (in thousands): Leases Classification on the Balance Sheet June 30, 2019 Operating ROU assets Other long-term assets $ 1,764 Operating lease liabilities Other current liabilities 819 Operating lease liabilities Other long-term liabilities 1,105 The following costs are included in our cash flow statement (in thousands): Leases Classification on the Cash Flow Six Months Ended Operating lease cost Operating $ 440 Cash paid for amounts included in the measurement of lease liabilities Operating 463 At June 30, 2019 , the future minimum annual obligations under non-cancellable operating lease commitments in excess of one year are as follows (in thousands): Years Ending December 31, 2019 $ 474 2020 968 2021 677 2022 — 2023 — Thereafter — Total minimum payments required 2,119 Less imputed interest (195 ) Total $ 1,924 As previously disclosed in our 2018 Annual Report on Form 10-K, and under the previous lease accounting standard, future minimum annual obligations under non-cancellable operating lease commitments in excess of one year would have been as follows: Years Ending December 31, 2019 $ 937 2020 969 2021 726 2022 — 2023 — Thereafter — Total minimum payments required $ 2,632 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been omitted. The accompanying unaudited consolidated financial statements include all known adjustments necessary for a fair presentation of the results of interim periods as required by U.S. GAAP. These adjustments consist primarily of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Also, certain reclassifications have been made to 2018 financial information to conform to the current year presentation of long-term liabilities on the Consolidated Balance Sheets. Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The financial statements should be read in conjunction with our audited financial statements for the year ended December 31, 2018 , included in our Annual Form 10-K. |
Basis of Consolidation | Basis of Consolidation The accompanying consolidated financial statements include us and our wholly-owned Australian subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. We operate in one |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. We base our estimates and assumptions on historical experience when available and on various factors that we believe to be reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Our actual results could differ from these estimates under different assumptions or conditions. |
Leases | Leases Prior to January 1, 2019, we recorded our leases in accordance with Accounting Standard Codification (ASC) Topic 840, Leases, and all current leases were classified as operating leases. Rent expense was recognized on a straight-line basis over the terms of the leases and, accordingly, we recorded the cumulative difference between cash rent payments and the recognition of rent expense as a deferred rent liability. When an operating lease included lease incentives, such as a rent abatements or leasehold improvement allowances, or required fixed escalations of the minimum lease payments, the aggregate rental expense, including such incentives or increases, was recognized on a straight-line basis over the term of the lease. Effective January 1, 2019, we adopted Accounting Standard Update (ASU) 2016-02, ASC 842, Leases, under which all outstanding leases continued to be classified as operating leases. Rent expense is recognized on a straight-line basis. When an operating lease includes rent abatements or requires fixed escalations of the minimum lease payments, the aggregate rental expense is recognized on a straight-line basis over the term of the lease. When an operating lease includes lease incentives such as leasehold improvement allowances, the lease incentive is included in the right-of-use, or “ROU”, asset. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the date of adoption of ASC 842, or the lease commencement date. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. We account for fixed lease components separately from non-lease components. |
Net Loss Per Common Share | Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common equivalent shares outstanding for the period, as well as any dilutive effect from outstanding stock options and warrants using the treasury stock method. For each period presented, there is no difference in the number of shares used to calculate basic and diluted net loss per share. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, Leases (Topic 842) , which requires that lessees recognize a right-of-use, or “ROU”, asset and a related lease liability on the balance sheet for all leases with a term longer than 12 months. Topic 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842 ; ASU 2018-10, Codification Improvements to Topic 842, Leases ; ASU 2018-11, Targeted Improvements; and ASU 2019-01, Leases (Topic 842): Codification Improvements . ASU 2016-02 became effective for our annual reporting period beginning January 1, 2019, including interim periods thereafter. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (i) its effective date or (ii) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We adopted this standard on January 1, 2019 and used the effective date as our date of initial application. Upon adoption, we elected the package of transition practical expedients, which allowed us to carry forward prior conclusions related to whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases and initial direct costs for existing leases. We also made an accounting policy election to not recognize leases with an initial term of 12 months or less within our consolidated balance sheets and to recognize those lease payments on a straight-line basis in our consolidated statements of operations over the lease term. Adoption of the new standard resulted in the recording of operating lease ROU assets and lease liabilities of approximately $2.1 million and $2.3 million as of January 1, 2019, respectively related to our real estate leases. Adoption of this new standard did not have a material impact on our consolidated statements of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Outstanding Potentially Dilutive Securities Excluded in the Calculation of Diluted Net Loss Per Share | The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive (in common stock equivalent shares): Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Options to purchase common stock 2,525 2,542 2,443 2,572 Warrants to purchase common stock — — — 4 Total 2,525 2,542 2,443 2,576 |
Balance Sheet Accounts and Su_2
Balance Sheet Accounts and Supplemental Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Property and Equipment | Property and equipment consist of the following: (in thousands) June 30, 2019 December 31, 2018 Laboratory equipment $ 4,528 $ 4,287 Office furniture and equipment 807 780 Leasehold improvements 575 575 Property and equipment, gross 5,910 5,642 Less: accumulated depreciation and amortization (4,429 ) (4,197 ) Total property and equipment, net $ 1,481 $ 1,445 |
Schedule of Accrued Expenses | Accrued expenses consist of the following: (in thousands) June 30, 2019 December 31, 2018 Accrued compensation and related expenses $ 1,909 $ 2,421 Accrued professional fees 496 442 Accrued research, development and manufacturing expenses 11,360 5,577 Other 337 321 Total accrued expenses $ 14,102 $ 8,761 |
Collaborative Research and De_2
Collaborative Research and Development Agreements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions | Milestones recognized through June 30, 2019 under the TESARO Agreement are as follows: Anti-PD-1 Anti-TIM-3 Anti-LAG-3 Milestone Event Amount Quarter Recognized Amount Quarter Recognized Amount Quarter Recognized Initiated in vivo toxicology studies using good laboratory practices (GLPs) $1.0M Q2'15 $1.0M Q4'15 $1.0M Q3'16 IND clearance from the FDA $4.0M Q1'16 $4.0M Q2'16 $4.0M Q2'17 Phase 2 clinical trial initiation $3.0M Q2'17 $3.0M Q4'17 — — Phase 3 clinical trial initiation - first indication $5.0M Q3'18 — — — — Phase 3 clinical trial initiation - second indication $5.0M Q2'19 — — — — Milestones achieved through June 30, 2019 under the Celgene Agreement are as follows: Anti-PD-1 Milestone Event Amount Quarter Recognized Completion of first in vivo toxicology studies using GLPs $0.5M Q2'16 Phase 1 clinical trial initiation $1.0M Q4'16 |
Fair Value Measurements and A_2
Fair Value Measurements and Available for Sale Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities that Require Fair Value Measurements on a Recurring Basis | The following table summarizes our assets and liabilities that require fair value measurements on a recurring basis and their respective input levels based on the fair value hierarchy: Fair Value Measurements at End of Period Using: (in thousands) Fair Quoted Market Significant Significant At June 30, 2019 Money market funds (1) $ 127,844 $ 127,844 $ — $ — Mutual funds (1) 8,170 8,170 — — U.S. Treasury securities (2) 112,676 112,676 — — Certificates of deposit (2) 6,155 — 6,155 — Agency securities (2) 61,684 — 61,684 — Commercial and corporate obligations (1)(2) 145,907 — 145,907 — At December 31, 2018 Money market funds (1) $ 87,213 $ 87,213 $ — $ — Mutual funds (1) 7,967 7,967 — — U.S. Treasury securities (2) 164,245 164,245 — — Certificates of deposit (2) 4,784 — 4,784 — Agency securities (1)(2) 81,296 — 81,296 — Commercial and corporate obligations (1)(2) 153,983 — 153,983 — (1) Included in cash and cash equivalents, and restricted cash in the accompanying consolidated balance sheets. (2) Included in short-term or long-term investments in the accompanying consolidated balance sheets depending on the respective maturity date. |
Fair Value of Other Financial Instruments | The fair value of our other financial instruments estimated as of June 30, 2019 and December 31, 2018 are presented below: June 30, 2019 December 31, 2018 Carrying Fair Carrying Fair Notes payable $ 4,781 $ 5,084 $ 8,199 $ 8,806 |
Available-for-sale Investments | The aggregate market value, cost basis, and gross unrealized gains and losses of available-for-sale investments by security type, classified in cash equivalents, short-term and long-term investments as of June 30, 2019 are as follows: (in thousands) Amortized Gross Gross Total Agency securities (1) $ 61,558 $ 133 $ (7 ) $ 61,684 Certificates of deposit (2) 6,111 44 — 6,155 Commercial and corporate obligations (3) 145,548 366 (7 ) 145,907 U.S. Treasury securities (4) 112,363 319 (6 ) 112,676 Total available-for-sale investments $ 325,580 $ 862 $ (20 ) $ 326,422 (1) Of our outstanding agency securities, $47.8 million have maturity dates of less than one year and $13.9 million have a maturity date of between one to two years as of June 30, 2019 . (2) Of our outstanding certificates of deposit, $1.0 million have a maturity date of less than one year and $5.2 million have a maturity date of between one to two years as of June 30, 2019 . (3) Of our outstanding commercial and corporate obligations, $131.9 million have maturity dates of less than one year and $14.0 million have a maturity date of between one to two years as of June 30, 2019 . (4) Of our outstanding U.S. Treasury securities $100.1 million have maturity dates of less than one year and $12.6 million have a maturity date of between one to two years as of June 30, 2019 . |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance upon the exercise, issuance or conversion of the respective equity instruments at June 30, 2019 are as follows: Issued and Outstanding: Stock options 2,512,033 Shares Reserved For: 2017 Equity Incentive Plan 2,615,613 2017 Employee Stock Purchase Plan 725,132 Total 5,852,778 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Activity Related to Stock Option Awards | A summary of the activity related to stock option awards during the six months ended June 30, 2019 is as follows: Shares Weighted-Average Weighted-Average Aggregate Outstanding at January 1, 2019 2,152,455 $ 27.55 Granted 539,400 $ 69.02 Exercises (122,705 ) $ 6.43 Forfeitures and cancellations (57,117 ) $ 69.45 Outstanding at June 30, 2019 2,512,033 $ 36.53 7.27 $ 70,414 Exercisable at June 30, 2019 1,398,990 $ 19.46 6.06 $ 57,308 |
Summary of Weighted Average Assumptions in Stock Option Valuations | The estimated fair values of stock option awards granted to employees were determined on the date of grant using the Black-Scholes option valuation model with the following weighted average assumptions: Six Months Ended 2019 2018 Risk-free interest rate 2.5 % 2.6 % Expected volatility 68.5 % 68.5 % Expected dividend yield — % — % Expected term (in years) 6.25 6.25 Weighted average grant date fair value per share $ 44.02 $ 67.05 |
Summary of Non-cash Stock-based Compensation Expense | Total non-cash stock-based compensation expense for all stock awards that was recognized in the consolidated statements of operations and comprehensive loss is as follows: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Research and development $ 1,649 $ 899 $ 2,889 $ 1,655 General and administrative 1,994 1,649 3,621 3,153 Total $ 3,643 $ 2,548 $ 6,510 $ 4,808 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Classification on the Balance Sheet | Our balance sheet includes our ROU assets and lease liabilities as follows (in thousands): Leases Classification on the Balance Sheet June 30, 2019 Operating ROU assets Other long-term assets $ 1,764 Operating lease liabilities Other current liabilities 819 Operating lease liabilities Other long-term liabilities 1,105 |
Costs Included in Cash Flow Statement | The following costs are included in our cash flow statement (in thousands): Leases Classification on the Cash Flow Six Months Ended Operating lease cost Operating $ 440 Cash paid for amounts included in the measurement of lease liabilities Operating 463 |
Schedule of Future Minimum Annual Obligations | At June 30, 2019 , the future minimum annual obligations under non-cancellable operating lease commitments in excess of one year are as follows (in thousands): Years Ending December 31, 2019 $ 474 2020 968 2021 677 2022 — 2023 — Thereafter — Total minimum payments required 2,119 Less imputed interest (195 ) Total $ 1,924 |
Schedule of Future Minimum Annual Obligations Under Previous Lease Accounting Standard | As previously disclosed in our 2018 Annual Report on Form 10-K, and under the previous lease accounting standard, future minimum annual obligations under non-cancellable operating lease commitments in excess of one year would have been as follows: Years Ending December 31, 2019 $ 937 2020 969 2021 726 2022 — 2023 — Thereafter — Total minimum payments required $ 2,632 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)segment | Jan. 01, 2019USD ($) | |
Accounting Policies [Abstract] | ||
Number of reportable segments | segment | 1 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
ROU assets | $ 1,764 | |
Lease liabilities | $ 1,924 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
ROU assets | $ 2,100 | |
Lease liabilities | $ 2,300 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Potentially Dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive securities excluded from computation of net loss per share (in shares) | 2,525 | 2,542 | 2,443 | 2,576 |
Options to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive securities excluded from computation of net loss per share (in shares) | 2,525 | 2,542 | 2,443 | 2,572 |
Warrants to purchase common stock | Common Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive securities excluded from computation of net loss per share (in shares) | 0 | 0 | 0 | 4 |
Balance Sheet Accounts and Su_3
Balance Sheet Accounts and Supplemental Disclosures - Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,910 | $ 5,642 |
Less: accumulated depreciation and amortization | (4,429) | (4,197) |
Total property and equipment, net | 1,481 | 1,445 |
Laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,528 | 4,287 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 807 | 780 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 575 | $ 575 |
Balance Sheet Accounts and Su_4
Balance Sheet Accounts and Supplemental Disclosures - Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation and related expenses | $ 1,909 | $ 2,421 |
Accrued professional fees | 496 | 442 |
Accrued research, development and manufacturing expenses | 11,360 | 5,577 |
Other | 337 | 321 |
Total accrued expenses | $ 14,102 | $ 8,761 |
Collaborative Research and De_3
Collaborative Research and Development Agreements (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Nov. 30, 2014USD ($)target | Mar. 31, 2014USD ($)target | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2011USD ($) | |
TESARO | Collaborative Research And Development Agreement | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Upfront license fee received | $ 2,000,000 | $ 17,000,000 | ||||||||||||||
Number of outstanding research and development targets | target | 4 | 3 | ||||||||||||||
Milestone payments, contingent upon preclinical and clinical trial events (up to) | $ 18,000,000 | |||||||||||||||
Milestone payments, contingent upon certain U.S. and European regulatory submissions and approvals (up to) | 90,000,000 | |||||||||||||||
Milestone payments, contingent upon achievement of specified levels of worldwide sales (up to) | $ 165,000,000 | |||||||||||||||
Agreement term following first commercial sale or expiration of the last to expire patent (in years) | 12 years | |||||||||||||||
Collaboration revenue | $ 5,000,000 | $ 0 | $ 5,000,000 | $ 0 | ||||||||||||
TESARO | Initiated in vivo toxicology studies using good laboratory practices (GLPs) | AnaptysBio-generated Anti-PD-1 Antagonist Antibody (TSR-042) | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Milestones achieved, amount | $ 1,000,000 | |||||||||||||||
TESARO | Initiated in vivo toxicology studies using good laboratory practices (GLPs) | AnaptysBio Generated Anti-TIM3 Antagonist Antibody (TSR-022) | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Milestones achieved, amount | $ 1,000,000 | |||||||||||||||
TESARO | Initiated in vivo toxicology studies using good laboratory practices (GLPs) | AnaptysBio Generated Anti-LAG3 Antagonist Antibody (TSR-033) | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Milestones achieved, amount | $ 1,000,000 | |||||||||||||||
TESARO | IND clearance from the FDA | AnaptysBio-generated Anti-PD-1 Antagonist Antibody (TSR-042) | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Milestones achieved, amount | $ 4,000,000 | |||||||||||||||
TESARO | IND clearance from the FDA | AnaptysBio Generated Anti-TIM3 Antagonist Antibody (TSR-022) | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Milestones achieved, amount | $ 4,000,000 | |||||||||||||||
TESARO | IND clearance from the FDA | AnaptysBio Generated Anti-LAG3 Antagonist Antibody (TSR-033) | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Milestones achieved, amount | $ 4,000,000 | |||||||||||||||
TESARO | Phase 2 clinical trial initiation | AnaptysBio-generated Anti-PD-1 Antagonist Antibody (TSR-042) | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Milestones achieved, amount | $ 3,000,000 | |||||||||||||||
TESARO | Phase 2 clinical trial initiation | AnaptysBio Generated Anti-TIM3 Antagonist Antibody (TSR-022) | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Milestones achieved, amount | $ 3,000,000 | |||||||||||||||
TESARO | Phase 3 clinical trial initiation - first indication | AnaptysBio-generated Anti-PD-1 Antagonist Antibody (TSR-042) | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Milestones achieved, amount | 5,000,000 | $ 5,000,000 | ||||||||||||||
Celgene Corporation | Collaborative Research And Development Agreement | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Upfront license fee received | $ 6,000,000 | |||||||||||||||
Collaboration revenue | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||
Maximum milestone payments per target | $ 53,000,000 | |||||||||||||||
Celgene Corporation | Initiated in vivo toxicology studies using good laboratory practices (GLPs) | AnaptysBio-Generated Anti-PD-1 Antagonist Antibody (CC-90006) | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Milestone payment earned | $ 500,000 | |||||||||||||||
Celgene Corporation | Phase 1 clinical trial initiation | AnaptysBio-Generated Anti-PD-1 Antagonist Antibody (CC-90006) | ||||||||||||||||
Deferred Revenue Arrangement [Line Items] | ||||||||||||||||
Milestone payment earned | $ 1,000,000 |
Notes Payable (Details)
Notes Payable (Details) - Notes Payable to Banks | Dec. 24, 2014USD ($)installment | Jan. 31, 2016USD ($) | Jun. 30, 2019USD ($)payment |
Debt Instrument [Line Items] | |||
Aggregate borrowing capacity | $ 5,000,000 | ||
Loan and Security Agreement (LSA) | |||
Debt Instrument [Line Items] | |||
Debt instrument, maximum borrowing capacity | $ 15,000,000 | ||
Number of loan installments (in installments) | installment | 3 | ||
Final payment fee | $ 800,000 | ||
Notes payable | $ 4,800,000 | ||
Debt instrument discounts | $ 400,000 | ||
Effective interest rate | 13.27% | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Debt maturities in remainder of year | $ 3,800,000 | ||
2020 | $ 600,000 | ||
Term Loans | |||
Debt Instrument [Line Items] | |||
Fixed interest rate (as a percent) | 7.30% | ||
Number of principal and interest payments (in payments) | payment | 7 | ||
Interest rate at period end (as a percent) | 8.87% | ||
Term Loans | 3-Month LIBOR interest rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate (as a percent) | 6.37% | ||
Term A Loans | |||
Debt Instrument [Line Items] | |||
Aggregate draw on term loan | $ 5,000,000 | ||
Fixed interest rate (as a percent) | 6.97% | ||
Term B and Term C Loans | |||
Debt Instrument [Line Items] | |||
Aggregate borrowing capacity | $ 10,000,000 |
Fair Value Measurements and A_3
Fair Value Measurements and Available for Sale Investments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | $ 326,422 | |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 112,676 | |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 6,155 | |
Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 61,684 | |
Commercial and corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 145,907 | |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 112,676 | $ 164,245 |
Fair Value, Measurements, Recurring | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 6,155 | 4,784 |
Fair Value, Measurements, Recurring | Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 61,684 | 81,296 |
Fair Value, Measurements, Recurring | Commercial and corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 145,907 | 153,983 |
Fair Value, Measurements, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 127,844 | 87,213 |
Fair Value, Measurements, Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 8,170 | 7,967 |
Fair Value, Measurements, Recurring | Quoted Market Prices for Identical Assets (Level 1) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 112,676 | 164,245 |
Fair Value, Measurements, Recurring | Quoted Market Prices for Identical Assets (Level 1) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Market Prices for Identical Assets (Level 1) | Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Market Prices for Identical Assets (Level 1) | Commercial and corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Market Prices for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 127,844 | 87,213 |
Fair Value, Measurements, Recurring | Quoted Market Prices for Identical Assets (Level 1) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 8,170 | 7,967 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 6,155 | 4,784 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 61,684 | 81,296 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial and corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 145,907 | 153,983 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commercial and corporate obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at fair value | $ 0 | $ 0 |
Fair Value Measurements and A_4
Fair Value Measurements and Available for Sale Investments - Fair Value of Other Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | $ 4,781 | $ 8,199 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | $ 5,084 | $ 8,806 |
Fair Value Measurements and A_5
Fair Value Measurements and Available for Sale Investments - Available-for-sale Investments (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 325,580 | |
Gross Unrealized Gains | 862 | |
Gross Unrealized Losses | (20) | |
Total Fair Value | 326,422 | |
Short-term investments | 275,664 | $ 313,486 |
Long-term investments | 45,707 | $ 73,128 |
Agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 61,558 | |
Gross Unrealized Gains | 133 | |
Gross Unrealized Losses | (7) | |
Total Fair Value | 61,684 | |
Short-term investments | 47,800 | |
Long-term investments | $ 13,900 | |
Agency securities | Minimum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments outstanding, maturity date range (in years) | 1 year | |
Agency securities | Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments outstanding, maturity date range (in years) | 2 years | |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 6,111 | |
Gross Unrealized Gains | 44 | |
Gross Unrealized Losses | 0 | |
Total Fair Value | 6,155 | |
Short-term investments | 1,000 | |
Long-term investments | $ 5,200 | |
Certificates of deposit | Minimum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments outstanding, maturity date range (in years) | 1 year | |
Certificates of deposit | Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments outstanding, maturity date range (in years) | 2 years | |
Commercial and corporate obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 145,548 | |
Gross Unrealized Gains | 366 | |
Gross Unrealized Losses | (7) | |
Total Fair Value | 145,907 | |
Short-term investments | 131,900 | |
Long-term investments | $ 14,000 | |
Commercial and corporate obligations | Minimum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments outstanding, maturity date range (in years) | 1 year | |
Commercial and corporate obligations | Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments outstanding, maturity date range (in years) | 2 years | |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 112,363 | |
Gross Unrealized Gains | 319 | |
Gross Unrealized Losses | (6) | |
Total Fair Value | 112,676 | |
Short-term investments | 100,100 | |
Long-term investments | $ 12,600 | |
U.S. Treasury securities | Minimum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments outstanding, maturity date range (in years) | 1 year | |
U.S. Treasury securities | Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments outstanding, maturity date range (in years) | 2 years |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - shares | Jun. 30, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 27,044,527 | 26,922,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Common Stock Reserved for Future Issuance (Details) - shares | Jun. 30, 2019 | Dec. 31, 2018 |
Issued and Outstanding: | ||
Stock options issued and outstanding (in shares) | 2,512,033 | 2,152,455 |
Common stock, shares reserved for issuance (in shares) | 5,852,778 | |
2017 Equity Incentive Plan | ||
Issued and Outstanding: | ||
Shares reserved for future award grants (in shares) | 2,615,613 | |
2017 Employee Stock Purchase Plan | ||
Issued and Outstanding: | ||
Shares reserved for future award grants (in shares) | 725,132 |
Equity Incentive Plans - Narrat
Equity Incentive Plans - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 26, 2017 | Jun. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ 37.7 | |||
Options to purchase common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 4 years | |||
Award expiration period (in years) | 10 years | |||
Options to purchase common stock | Director Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 1 year | |||
Award expiration period (in years) | 10 years | |||
Employee and nonemployee stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period remaining for amortization of unrecognized compensation cost (in years) | 2 years 8 months 8 days | |||
2017 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual increase in number of shares available for issuance | 4.00% | |||
Capital shares reserved for future issuance, increase (in shares) | 1,076,877 | |||
2017 Employee Stock Purchase Plan | Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual increase in number of shares available for issuance | 1.00% | |||
Capital shares reserved for future issuance, increase (in shares) | 269,219 |
Equity Incentive Plans - Option
Equity Incentive Plans - Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2019 | |
Shares Subject to Options | |
Stock options outstanding, beginning balance (in shares) | 2,152,455 |
Granted (in shares) | 539,400 |
Exercises (in shares) | (122,705) |
Forfeitures and cancellations (in shares) | (57,117) |
Stock options outstanding, ending balance (in shares) | 2,512,033 |
Stock options exercisable, ending balance (in shares) | 1,398,990 |
Weighted-Average Exercise Price per Share | |
Stock options outstanding, beginning balance (in dollars per share) | $ 27.55 |
Granted (in dollars per share) | 69.02 |
Exercises (in dollars per share) | 6.43 |
Forfeitures and cancellations (in dollars per share) | 69.45 |
Stock options outstanding, ending balance (in dollars per share) | 36.53 |
Stock options exercisable, ending balance (in dollars per share) | $ 19.46 |
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Weighted average remaining contractual term, options outstanding (in years) | 7 years 3 months 7 days |
Weighted average remaining contractual term, options exercisable (in years) | 6 years 21 days |
Aggregate intrinsic value, options outstanding | $ 70,414 |
Aggregate intrinsic value, options exercisable | $ 57,308 |
Equity Incentive Plans - Opti_2
Equity Incentive Plans - Option Fair Value Assumptions (Details) - Options to purchase common stock - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.50% | 2.60% |
Expected volatility | 68.50% | 68.50% |
Expected dividend yield | 0.00% | 0.00% |
Expected term (in years) | 6 years 3 months | 6 years 3 months |
Weighted average grant date fair value per share (in dollars per share) | $ 44.02 | $ 67.05 |
Equity Incentive Plans - Alloca
Equity Incentive Plans - Allocation of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 3,643 | $ 2,548 | $ 6,510 | $ 4,808 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1,649 | 899 | 2,889 | 1,655 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 1,994 | $ 1,649 | $ 3,621 | $ 3,153 |
Australia Research and Develo_2
Australia Research and Development Tax Incentive (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Tax Credit Carryforward [Line Items] | ||||
Australian tax incentive receivable | $ 0 | $ 174,000 | ||
Australian Taxation Office | ||||
Tax Credit Carryforward [Line Items] | ||||
Research and development tax incentive credit received during the period | 200,000 | $ 1,500,000 | ||
Australian tax incentive receivable | $ 0 | |||
Australian Taxation Office | Subsidiaries | ||||
Tax Credit Carryforward [Line Items] | ||||
Refundable tax incentive for qualified research and development activities (as a percent) | 43.50% | 43.50% | ||
Research and development | $ 100,000 | $ 0 | $ 100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019leaserenewal_option | |
Operating Leased Assets [Line Items] | |
Non-cancellable office leases | lease | 2 |
Operating lease, term of contract | 2 years 3 months |
Weighted-average discount rate | 8.59% |
One office lease | |
Operating Leased Assets [Line Items] | |
Number of one year renewal options | renewal_option | 3 |
Commitments and Contingencies_2
Commitments and Contingencies - Classification on the Balance Sheet (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating ROU assets, Other long-term assets | $ 1,764 |
Operating lease liabilities, Other current liabilities | 819 |
Operating lease liabilities, Other long-term liabilities | $ 1,105 |
Commitments and Contingencies_3
Commitments and Contingencies - Costs Included in Cash Flow Statement (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease cost | $ 440 |
Cash paid for amounts included in the measurement of lease liabilities | $ 463 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Future Minimum Annual Obligations (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 474 |
2020 | 968 |
2021 | 677 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total minimum payments required | 2,119 |
Less imputed interest | (195) |
Total | $ 1,924 |
Commitments and Contingencies_5
Commitments and Contingencies - Schedule of Future Minimum Annual Obligations Under Previous Lease Accounting Standard (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 937 |
2020 | 969 |
2021 | 726 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total minimum payments required | $ 2,632 |