Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ZFGN | |
Entity Registrant Name | ZAFGEN, INC. | |
Entity Central Index Key | 1,374,690 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 36,870,780 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 45,141 | $ 40,777 |
Marketable securities | 82,691 | 61,275 |
Tax incentive receivable | 1,245 | 946 |
Prepaid expenses and other current assets | 2,392 | 1,927 |
Total current assets | 131,469 | 104,925 |
Property and equipment, net | 419 | 528 |
Other assets | 57 | 57 |
Total assets | 131,945 | 105,510 |
Current liabilities: | ||
Accounts payable | 2,627 | 3,020 |
Accrued expenses | 4,901 | 4,273 |
Notes payable, current | 3,636 | |
Total current liabilities | 11,164 | 7,293 |
Notes payable, long-term | 16,844 | 20,000 |
Total liabilities | 28,008 | 27,293 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Preferred stock; $0.001 par value per share; 5,000,000 shares authorized as of September 30, 2018 and December 31, 2017; no shares issued and outstanding as of September 30, 2018 and December 31, 2017 | ||
Common stock, $0.001 par value per share; 115,000,000 shares authorized as of September 30, 2018 and December 31, 2017; 36,865,817 and 27,489,457 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 37 | 27 |
Additional paid-in capital | 440,303 | 367,825 |
Accumulated deficit | (336,375) | (289,577) |
Accumulated other comprehensive loss | (28) | (58) |
Total stockholders' equity | 103,937 | 78,217 |
Total liabilities and stockholders' equity | $ 131,945 | $ 105,510 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 115,000,000 | 115,000,000 |
Common stock, shares issued | 36,865,817 | 27,489,457 |
Common stock, shares outstanding | 36,865,817 | 27,489,457 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Operating expenses: | ||||
Research and development | 11,830 | 9,723 | 36,472 | 29,928 |
General and administrative | 3,339 | 3,117 | 9,959 | 9,713 |
Total operating expenses | 15,169 | 12,840 | 46,431 | 39,641 |
Loss from operations | (15,169) | (12,840) | (46,431) | (39,641) |
Other income (expense): | ||||
Interest income | 623 | 266 | 1,214 | 740 |
Interest expense | (475) | (31) | (1,399) | (157) |
Foreign currency transaction (losses) gains, net | (46) | 20 | (182) | 115 |
Total other income (expense), net | 102 | 255 | (367) | 698 |
Net loss | $ (15,067) | $ (12,585) | $ (46,798) | $ (38,943) |
Net loss per share, basic and diluted | $ (0.41) | $ (0.46) | $ (1.53) | $ (1.42) |
Weighted average common shares outstanding, basic and diluted | 36,619,575 | 27,483,550 | 30,608,664 | 27,414,314 |
Comprehensive loss: | ||||
Net loss | $ (15,067) | $ (12,585) | $ (46,798) | $ (38,943) |
Other comprehensive loss: | ||||
Unrealized (loss) gain on marketable securities | (22) | 13 | 30 | 52 |
Total other comprehensive (loss) income | (22) | 13 | 30 | 52 |
Total comprehensive loss | $ (15,089) | $ (12,572) | $ (46,768) | $ (38,891) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (46,798) | $ (38,943) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Stock-based compensation expense | 7,337 | 6,199 |
Non-cash interest expense | 13 | |
Depreciation expense | 209 | 138 |
Unrealized foreign currency transaction losses (gains) | 45 | (31) |
Premium on marketable securities, net | (3) | (297) |
Amortization of (discount) premium on marketable securities | (345) | 219 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (465) | (649) |
Tax incentive receivable | (344) | (91) |
Accounts payable | (397) | 104 |
Accrued expenses | 1,108 | (610) |
Net cash used in operating activities | (39,653) | (33,948) |
Cash flows from investing activities: | ||
Proceeds from sales and maturities of marketable securities | 84,938 | 112,164 |
Purchases of marketable securities | (105,976) | (89,179) |
Purchases of property and equipment | (96) | (28) |
Net cash (used in) provided by investing activities | (21,134) | 22,957 |
Cash flows from financing activities: | ||
Proceeds from public offering, net of issuance costs | 64,560 | |
Repayments of notes payable | (2,363) | |
Proceeds from exercise of common stock options and employee stock purchase plan | 591 | 195 |
Net cash provided by (used in) financing activities | 65,151 | (2,168) |
Net increase (decrease) in cash and cash equivalents | 4,364 | (13,159) |
Cash and cash equivalents at beginning of period | 40,777 | 32,352 |
Cash and cash equivalents at end of period | 45,141 | 19,193 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment included in accounts payable | 4 | |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 819 | $ 130 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Nature of the Business and Basis of Presentation | 1. Nature of the Business and Basis of Presentation Zafgen, Inc., or the Company, was incorporated on November 22, 2005 under the laws of the State of Delaware. The Company is a clinical-stage biopharmaceutical company leveraging its proprietary methionine aminopeptidase 2 (“MetAP2”) biology platform to develop novel therapies for patients affected by complex metabolic diseases. Zafgen has pioneered the study of MetAP2 inhibitors in both common and rare metabolic disorders, and is currently advancing programs for type 2 diabetes, Prader-Willi syndrome (“PWS”) and liver diseases. The Company’s lead product candidate, ZGN-1061, a MetAP2 inhibitor with unique properties that maximize impact on metabolic parameters relevant to the treatment of type 2 diabetes and other related metabolic disorders, is in Phase 2 clinical development. In the second quarter of 2018 the initial part of the ZGN-1061 Phase 2 clinical trial met all of its primary endpoints at the 0.9 mg dose and 12-week data demonstrated a favorable safety and tolerability profile, with no treatment-related serious adverse events and no cardiovascular safety signals observed. The Company has opted to explore the higher end of the therapeutic range of ZGN-1061 by adding a 1.8 mg dose arm to the trial, which began in the second quarter of 2018. In January 2018, the Company announced advancement of its highly optimized MetAP2 development candidate ZGN-1258, and in the first quarter of 2018, initiated investigational new drug (“IND”) application enabling nonclinical efforts for evaluation of ZGN-1258 in the treatment of people affected by PWS. The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, new technological innovations, protection of proprietary technology, dependence on key personnel, compliance with government regulations and the need to obtain additional financing. Product candidates currently under development will require significant additional research and development efforts, including extensive nonclinical and clinical testing and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure, and extensive compliance-reporting capabilities. The Company’s product candidates are all in the research and development stage. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained, that any product candidates developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees and consultants. The Company has incurred losses and negative cash flows from operations since its inception. As of September 30, 2018, the Company had an accumulated deficit of $336.4 million. From its inception through September 30, 2018, the Company received net proceeds of $397.9 million from the sales of redeemable convertible preferred stock, the issuance of convertible promissory notes, the proceeds from its initial public offering (“IPO”) in June 2014 and its follow-on offerings in January 2015 and July 2018. On July 2, 2018, the Company completed a public offering of its common stock, which resulted in the sale of 9,200,000 shares at a price of $7.50 per share, resulting in net proceeds of approximately $64.6 million after deducting underwriting discounts and commissions, as well as offering costs. As disclosed in Note 5 to the condensed consolidated financial statements, the Company has a term loan with an aggregate principal balance of $20.0 million as of September 30, 2018 (the “Term Loan”). The loan agreement requires that the Company maintain certain minimum liquidity at all times, which as of September 30, 2018, was approximately $21.0 million. If the minimum liquidity covenant is not met, the Company may be required to repay the loan prior to scheduled maturity dates. Until such time, if ever, as the Company can generate substantial product revenue, the Company expects to finance its cash needs through a combination of equity offerings, debt financings, collaborations, strategic alliances, licensing arrangements and other sources of funding. Based on its current operating plans, the Company believes its cash, cash equivalents and marketable securities of $127.8 million as of September 30, 2018 will be sufficient to fund its anticipated level of operations, capital expenditures and satisfy debt repayments and minimum liquidity requirements for a period of at least one year from the issuance date of this Quarterly Report. If the Company is unable to raise additional funds through equity or debt financings, the Company may be required to delay, limit, reduce or terminate product development or future commercialization efforts or grant rights to develop and market products or product candidates that the Company would otherwise prefer to develop and market itself. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Zafgen Securities Corporation, Zafgen Australia Pty Limited, and Zafgen Animal Health, LLC. All intercompany balances and transactions have been eliminated. Unaudited Interim Financial Information The condensed consolidated balance sheet as of December 31, 2017 was derived from the Company’s audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). The accompanying unaudited condensed consolidated financial statements as of September 30, 2018 and for the three and nine months ended September 30, 2018 and 2017, have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2017, included in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2017, on file with the SEC. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s condensed consolidated financial position as of September 30, 2018 and condensed consolidated results of operations and cash flows for the three and nine months ended September 30, 2018 and 2017 have been made. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2018. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the accrual of research and development expenses and the valuation of stock-based awards. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from the Company’s estimates. Marketable securities Marketable securities consist of investments with original maturities greater than ninety days. The Company has classified its investments with maturities beyond one year as short term, based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. The Company considers its investment portfolio of investments as available-for-sale. Accordingly, these investments are recorded at fair value, which is based on quoted market prices. Unrealized gains and losses are reported as a component of accumulated other comprehensive loss in stockholders’ equity. Realized gains and losses and declines in value judged to be other than temporary are included as a component of other income (expense), net based on the specific identification method. When determining whether a decline in value is other than temporary, the Company considers various factors, including whether the Company has the intent to sell the security, and whether it is more likely than not that the Company will be required to sell the security prior to recovery of its amortized cost basis. Fair value is determined based on quoted market prices. Net Loss Per Share Basic net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net loss per share attributable to common stockholders is computed by dividing the diluted net loss attributable to common stockholders by the weighted average number of common shares, including potential dilutive common shares assuming the dilutive effect of outstanding stock options and unvested restricted common shares, as determined using the treasury stock method. For periods in which the Company has reported net losses, diluted net loss per common share attributable to common stockholders is the same as basic net loss per common share attributable to common stockholders, since dilutive common shares are not assumed to have been issued if their effect is antidilutive. The Company excluded the following common stock equivalents, outstanding as of September 30, 2018 and 2017, from the computation of diluted net loss per share for the three and nine months ended September 30, 2018 and 2017 because they had an anti-dilutive impact due to the net loss incurred for the periods: As of September 30, 2018 2017 Options to purchase common stock 5,676,861 3,963,480 Unvested restricted common stock 4,465 5,533 5,681,326 3,969,013 Recently Issued and Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-02, Leases In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation: Scope of Modification Accounting In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting |
Fair Value Measurements and Mar
Fair Value Measurements and Marketable Securities | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Marketable Securities | 3. Fair Value Measurements and Marketable Securities Fair Value Measurements The following tables present information about the Company’s financial assets that have been measured at fair value as of September 30, 2018 and December 31, 2017 and indicate the fair value of the hierarchy of the valuation inputs utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair value determined by Level 2 inputs utilize observable inputs other than Level 1 prices, such as quoted prices, for similar assets or liabilities, quoted market prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. During the three and nine months ended September 30, 2018 and the year ended December 31, 2017, there were no transfers between Level 1 and Level 2 financial assets. The following tables summarize the Company’s cash equivalents and marketable securities as of September 30, 2018 and December 31, 2017: September 30, 2018 Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (in thousands) Cash equivalents: Money market funds $ 33,018 $ 33,018 $ — $ — Commercial paper 5,095 — 5,095 — Corporate bonds 2,554 — 2,554 — Total cash equivalents 40,667 33,018 7,649 — Marketable securities: Corporate bonds 24,885 — 24,885 — Commercial paper 47,862 — 47,862 — U.S. government securities 9,944 — 9,944 — Total marketable securities 82,691 — 82,691 — Total cash equivalents and marketable securities $ 123,358 $ 33,018 $ 90,340 $ — December 31, 2017 Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (in thousands) Cash equivalents: Money market funds $ 15,802 $ 15,802 $ — $ — Commercial paper 998 — 998 — Corporate bonds 549 — 549 — Total cash equivalents 17,349 15,802 1,547 — Marketable securities: Corporate bonds 50,844 — 50,844 — Commercial paper 9,951 — 9,951 — Certificates of deposit 480 — 480 — Total marketable securities 61,275 — 61,275 — Total cash equivalents and marketable securities $ 78,624 $ 15,802 $ 62,822 $ — The carrying amounts reflected in the condensed consolidated balance sheets for tax incentive receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. The carrying value of the Company’s outstanding notes payable approximates fair value (a Level 2 fair value measurement), reflecting interest rates currently available to the Company. Marketable Securities The following tables summarize the Company’s marketable securities as of September 30, 2018 and December 31, 2017: September 30, 2018 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) Assets: Corporate bonds (due within 1 year) $ 24,897 $ — $ (12 ) $ 24,885 Commercial paper (due within 1 year) 47,874 — (12 ) 47,862 U.S. government securities (due within 1 year) 9,948 — (4 ) 9,944 $ 82,719 $ — $ (28 ) $ 82,691 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) Assets: Corporate bonds (due within 1 year) $ 50,892 $ — $ (48 ) $ 50,844 Commercial paper (due within 1 year) 9,961 — (10 ) 9,951 Certificates of deposit (due within 1 year) 480 — — 480 $ 61,333 $ — $ (58 ) $ 61,275 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 4. Accrued Expenses Accrued expenses consisted of the following as of September 30, 2018 and December 31, 2017: September 30, December 31, 2018 2017 (in thousands) Accrued research and development expenses $ 2,780 $ 1,647 Accrued payroll and related expenses 1,651 2,229 Accrued professional fees 290 292 Accrued other 180 105 $ 4,901 $ 4,273 |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Notes Payable | 5. Notes Payable On December 29, 2017, the Company entered into a loan and security agreement with Silicon Valley Bank (the “Term Loan”). The Term Loan provided for borrowings of $20.0 million. On December 29, 2017, the Company received proceeds of $20.0 million from the issuance of a promissory note. The promissory note issued under the Term Loan is collateralized by substantially all of the Company’s personal property, other than its intellectual property. Upon entering into this Term Loan, the Company is obligated to make monthly, interest-only payments until March 29, 2019 and, thereafter, to pay 33 consecutive, equal monthly installments of principal and interest from April 1, 2019 through December 1, 2021. The outstanding Term Loan bears a variable interest at an annual rate of 1.25% above the prime rate, which at September 30, 2018 was 5.25%. In addition, a final payment equal to 8.0% of the Term Loan is due upon the earlier of the maturity date, acceleration of the Term Loan or prepayment of all or part of the Term Loan. The Company accrues the final payment amount of $1.6 million, to outstanding debt by charges to interest expense using the effective-interest method from the date of issuance through the maturity date. Additionally, the Company, as the borrower, is required to maintain a minimum cash, cash equivalents and marketable securities balance at Silicon Valley Bank of no less than 105% of the total outstanding principal balance of the Term Loan, which was $21.0 million as of September 30, 2018 and December 31, 2017. Further, as of 45 days after the Term Loan was entered in, the Company met its obligation to maintain a balance of unrestricted cash, cash equivalents and marketable securities at Silicon Valley Bank in an amount not less than the greater of (i) $55.0 million and (ii) sixty-five percent (65%) of all the Company’s cash, cash equivalents and marketable securities. If the Company does not meet this requirement it will not be considered an event of default provided it immediately secures 87.5% of the principal balance in a restricted cash account. There are negative covenants restricting the Company’s activities, including limitations on dispositions, mergers or acquisitions; encumbering or granting a security interest in its intellectual property; incurring indebtedness or liens; paying dividends; making certain investments; permit the aggregate value of cash maintained by its Australian subsidiary not to exceed $4.0 million and certain other business transactions. The Term Loan also includes events of default, the occurrence and continuation of any of which provides the lenders the right to exercise remedies against the Company and the collateral securing the amounts due under the Term Loan, including cash in the amount of the outstanding balance. These events of default include, among other things, failure to pay any amounts due under the Term Loan, insolvency, the occurrence of a material adverse event, the occurrence of any default under certain other indebtedness and a final judgment against the Company in an amount greater than $0.3 million. As of September 30, 2018 and December 31, 2017, notes payable was $20.5 million and $20.0 million, respectively. The September 30, 2018 balance consisted of $20.0 million of principal and $0.5 million of accrued interest associated with the final payment, whereas the December 31, 2017 balance consisted of $20.0 million of principal. As of September 30, 2018, the estimated future principal payments due are as follows: Year Ending December 31, (in thousands) 2018 $ — 2019 5,454 2020 7,273 2021 7,273 Total $ 20,000 During the three and nine months ended September 30, 2018, the Company recognized $0.5 million and $1.4 million, respectively, of interest expense related to the Term Loan. The effective annual interest rate as of September 30, 2018 on the outstanding debt under the Term Loan is approximately 9.7%. During both the three and nine months ended September 30, 2017, the Company recognized $0.1 million, of interest expense related to borrowings under the loan and security agreement with Oxford Finance LLC and Midcap Financial (the “2014 Credit Facility”), which was repaid in full in December 2017. The effective annual interest rate of the debt under the 2014 Credit Facility was approximately 10.8%. |
Stock-Based Awards
Stock-Based Awards | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Awards | 6. Stock-Based Awards The Company’s 2014 Stock Option and Incentive Plan, as amended (the “2014 Plan”) provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, unrestricted stock awards, performance-share awards, cash-based awards and dividend equivalent rights to employees, members of the board of directors and consultants of the Company. The Company has outstanding stock-based awards under its Amended and Restated 2006 Stock Option Plan but is no longer granting awards under this plan. The Company also issues common stock under its 2014 Employee Stock Purchase Plan (the “ESPP”). As of September 30, 2018, 2,263,902 shares are available for grant under the 2014 Plan, including 1,099,578 shares automatically added to the 2014 Plan on January 1, 2018, and 129,844 shares are available for issuance to participating employees under the ESPP. The Company recorded stock-based compensation expense related to stock options, restricted common stock and the ESPP in the following expense categories within its condensed consolidated statements of operations for the three and six months ended September 30, 2018 and 2017 as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Research and development $ 1,027 $ 896 $ 4,263 $ 2,629 General and administrative 1,173 1,200 3,074 3,570 $ 2,200 $ 2,096 $ 7,337 $ 6,199 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Leases The Company has a lease for office space in Boston, Massachusetts, effective as of July 28, 2014, with a term expiring July 31, 2020. In March 2015, the Company entered into an operating lease for additional office space in Boston, Massachusetts, effective as of April 15, 2015, with a term expiring on July 31, 2020, and an option to extend this lease for three additional years. In addition, with the landlord’s consent, the Company has subleased 2,976 square feet of office space in Boston, Massachusetts to an unrelated third party beginning on January 1, 2017 and expiring on June 30, 2019, and the Company expects to receive approximately $0.3 million in sublease rental income. In October 2015, the Company entered into an operating lease for office space in San Diego, California, effective as of October 1, 2015, with a term expiring on September 30, 2019, and an option to extend this lease for five additional years. Future minimum lease payments for its operating leases as of September 30, 2018 were as follows: Year Ending December 31, (in thousands) 2018 (October - December) $ 122 2019 464 2020 226 2021 — $ 812 During the three months ended September 30, 2018 and 2017, the Company recognized $0.1 million of rental expense related to office space. During the nine months ended September 30, 2018 and 2017, the Company recognized $0.3 million of rental expense related to office space. Intellectual Property Licenses The Company has acquired exclusive rights to develop patented compounds and related know-how for beloranib under two licensing agreements with two third parties in the course of its research and development activities. The licensing rights obligate the Company to make payments to the licensors for license fees, milestones, license maintenance fees and royalties. The Company is also responsible for patent prosecution costs. As of September 30, 2018, the Company is obligated to make additional milestone payments of up to $12.3 million upon reaching certain pre-commercialization milestones, such as clinical trials and government approvals (including the U.S. Food and Drug Administration, or FDA, approval of a New Drug application, or NDA), and up to $12.5 million upon reaching certain product commercialization milestones related to the development of beloranib. Under one of the license agreements, the Company is also obligated to pay up to $1.3 million with respect to each subsequent licensed product, if any, that is a new chemical entity. In addition, the Company will owe single-digit royalties on sales of commercial products developed using these licensed technologies, if any. There were no milestones achieved during the three and nine months ended September 30, 2018 and 2017 and the development related to this technology is no longer active. The Company is also obligated to pay to the licensors a percentage of fees received if and when the Company sublicenses the technology. As of September 30, 2018, the Company has not yet developed a commercial product using the licensed technologies and it has not entered into any sublicense agreements for the technologies. Indemnification Agreements In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its management team and its board of directors that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on its financial position, results of operations or cash flows, and it has not accrued any liabilities related to such obligations in its condensed consolidated financial statements as of September 30, 2018. Legal Proceedings The Company accrues a liability for legal contingencies when it believes that it is both probable that a liability has been incurred and that the Company can reasonably estimate the amount of the loss. The Company reviews these accruals and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel and other relevant information. To the extent new information is obtained and the views on the probable outcomes of claims, suits, assessments, investigations or legal proceedings change, changes in the Company’s accrued liabilities would be recorded in the period in which such determination is made. In addition, in accordance with the relevant authoritative guidance, for any matters in which the likelihood of material loss is at least reasonably possible, the Company will provide disclosure of the possible loss or range of loss. If a reasonable estimate cannot be made, however, the Company will provide disclosure to that effect. The Company expenses legal costs as they are incurred. The Company may periodically become subject to other legal proceedings and claims arising in connection with ongoing business activities, including claims or disputes related to patents that have been issued or that are pending in the field of research on which the Company is focused. The Company is not aware of any material claims as of September 30, 2018. |
Retirement Plan
Retirement Plan | 9 Months Ended |
Sep. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plan | 8. Retirement Plan Effective January 1, 2018, the Company adopted a 401(k) plan for its employees. Under the terms of the plan, the Company contributes 3% of an employee’s annual base salary, up to a maximum of the annual Internal Revenue Service compensation limits, for all full-time employees. The Company terminated its Savings Incentive Match Plan, or SIMPLE IRA as of December 31, 2017. During the three and nine months ended September 30, 2018, the Company recognized less than $0.1 million and $0.2 million, respectively, of expense related to its contributions to the 401(k) plan. During the three and nine months ended September 30, 2017, the Company recognized less than $0.1 million and $0.1 million, respectively, of expense related to its contributions to the SIMPLE IRA plan. |
Australia Research and Developm
Australia Research and Development Tax Incentive | 9 Months Ended |
Sep. 30, 2018 | |
Research And Development [Abstract] | |
Australia Research and Development Tax Incentive | 9. Australia Research and Development Tax Incentive The Company’s wholly owned subsidiary, Zafgen Australia Pty Limited, which conducts core research and development activities on behalf of the Company, is eligible to receive a 43.5% refundable tax incentive for qualified research and development activities. For the three months ended September 30, 2018 and 2017, $0.3 million and $0.2 million, respectively, were recorded as a reduction to research and development expenses in the condensed consolidated statements of operations. For the nine months ended September 30, 2018 and September 30, 2017, $1.3 million and $0.5 million, respectively, were recorded as a reduction to research and development expenses in the condensed consolidated statements of operations. These amounts represented 43.5% of the Company’s qualified research and development spending in Australia. The refund is denominated in Australian dollars and, therefore, the related receivable is re-measured into U.S. dollars as of each reporting date. For the three months ended September 30, 2018 and 2017, the Company recorded in its condensed consolidated statements of operations unrealized foreign currency exchange losses of less than $0.1 million and gains of less than $0.1, respectively, related to this tax incentive receivable. For the nine months ended September 30, 2018 and 2017, the Company recorded in its condensed consolidated statements of operations unrealized foreign currency exchange losses of $0.1 million and gains of less than $0.1 million, respectively, related to this tax incentive receivable. As of September 30, 2018 and December 31, 2017, the Company’s tax incentive receivable from the Australian government was $1.2 million and $0.9 million, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the accrual of research and development expenses and the valuation of stock-based awards. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from the Company’s estimates. |
Marketable securities | Marketable securities Marketable securities consist of investments with original maturities greater than ninety days. The Company has classified its investments with maturities beyond one year as short term, based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. The Company considers its investment portfolio of investments as available-for-sale. Accordingly, these investments are recorded at fair value, which is based on quoted market prices. Unrealized gains and losses are reported as a component of accumulated other comprehensive loss in stockholders’ equity. Realized gains and losses and declines in value judged to be other than temporary are included as a component of other income (expense), net based on the specific identification method. When determining whether a decline in value is other than temporary, the Company considers various factors, including whether the Company has the intent to sell the security, and whether it is more likely than not that the Company will be required to sell the security prior to recovery of its amortized cost basis. Fair value is determined based on quoted market prices. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net loss per share attributable to common stockholders is computed by dividing the diluted net loss attributable to common stockholders by the weighted average number of common shares, including potential dilutive common shares assuming the dilutive effect of outstanding stock options and unvested restricted common shares, as determined using the treasury stock method. For periods in which the Company has reported net losses, diluted net loss per common share attributable to common stockholders is the same as basic net loss per common share attributable to common stockholders, since dilutive common shares are not assumed to have been issued if their effect is antidilutive. The Company excluded the following common stock equivalents, outstanding as of September 30, 2018 and 2017, from the computation of diluted net loss per share for the three and nine months ended September 30, 2018 and 2017 because they had an anti-dilutive impact due to the net loss incurred for the periods: As of September 30, 2018 2017 Options to purchase common stock 5,676,861 3,963,480 Unvested restricted common stock 4,465 5,533 5,681,326 3,969,013 |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-02, Leases In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation: Scope of Modification Accounting In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Common Stock Equivalents Outstanding | The Company excluded the following common stock equivalents, outstanding as of September 30, 2018 and 2017, from the computation of diluted net loss per share for the three and nine months ended September 30, 2018 and 2017 because they had an anti-dilutive impact due to the net loss incurred for the periods: As of September 30, 2018 2017 Options to purchase common stock 5,676,861 3,963,480 Unvested restricted common stock 4,465 5,533 5,681,326 3,969,013 |
Fair Value Measurements and M_2
Fair Value Measurements and Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Cash Equivalents and Marketable Securities | The following tables summarize the Company’s cash equivalents and marketable securities as of September 30, 2018 and December 31, 2017: September 30, 2018 Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (in thousands) Cash equivalents: Money market funds $ 33,018 $ 33,018 $ — $ — Commercial paper 5,095 — 5,095 — Corporate bonds 2,554 — 2,554 — Total cash equivalents 40,667 33,018 7,649 — Marketable securities: Corporate bonds 24,885 — 24,885 — Commercial paper 47,862 — 47,862 — U.S. government securities 9,944 — 9,944 — Total marketable securities 82,691 — 82,691 — Total cash equivalents and marketable securities $ 123,358 $ 33,018 $ 90,340 $ — December 31, 2017 Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) (in thousands) Cash equivalents: Money market funds $ 15,802 $ 15,802 $ — $ — Commercial paper 998 — 998 — Corporate bonds 549 — 549 — Total cash equivalents 17,349 15,802 1,547 — Marketable securities: Corporate bonds 50,844 — 50,844 — Commercial paper 9,951 — 9,951 — Certificates of deposit 480 — 480 — Total marketable securities 61,275 — 61,275 — Total cash equivalents and marketable securities $ 78,624 $ 15,802 $ 62,822 $ — |
Summary of Marketable Securities | The following tables summarize the Company’s marketable securities as of September 30, 2018 and December 31, 2017: September 30, 2018 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) Assets: Corporate bonds (due within 1 year) $ 24,897 $ — $ (12 ) $ 24,885 Commercial paper (due within 1 year) 47,874 — (12 ) 47,862 U.S. government securities (due within 1 year) 9,948 — (4 ) 9,944 $ 82,719 $ — $ (28 ) $ 82,691 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) Assets: Corporate bonds (due within 1 year) $ 50,892 $ — $ (48 ) $ 50,844 Commercial paper (due within 1 year) 9,961 — (10 ) 9,951 Certificates of deposit (due within 1 year) 480 — — 480 $ 61,333 $ — $ (58 ) $ 61,275 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following as of September 30, 2018 and December 31, 2017: September 30, December 31, 2018 2017 (in thousands) Accrued research and development expenses $ 2,780 $ 1,647 Accrued payroll and related expenses 1,651 2,229 Accrued professional fees 290 292 Accrued other 180 105 $ 4,901 $ 4,273 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Estimated Future Principal Payments | As of September 30, 2018, the estimated future principal payments due are as follows: Year Ending December 31, (in thousands) 2018 $ — 2019 5,454 2020 7,273 2021 7,273 Total $ 20,000 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock-Based Compensation Expense Related to Stock Options, Restricted Common Stock and ESPP | The Company recorded stock-based compensation expense related to stock options, restricted common stock and the ESPP in the following expense categories within its condensed consolidated statements of operations for the three and six months ended September 30, 2018 and 2017 as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Research and development $ 1,027 $ 896 $ 4,263 $ 2,629 General and administrative 1,173 1,200 3,074 3,570 $ 2,200 $ 2,096 $ 7,337 $ 6,199 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments for its operating leases as of September 30, 2018 were as follows: Year Ending December 31, (in thousands) 2018 (October - December) $ 122 2019 464 2020 226 2021 — $ 812 |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 02, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 29, 2017 |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Entity incorporation date | Nov. 22, 2005 | ||||
Accumulated deficit | $ 336,375 | $ 336,375 | $ 289,577 | ||
Net proceeds from sale of securities | 397,900 | ||||
Net proceeds from public offering, after underwriting discount, commission and offering expenses | 64,560 | ||||
Total cash, cash equivalents and marketable securities | 127,800 | 127,800 | |||
Term Loan [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Aggregate principal balance | 20,000 | 20,000 | $ 20,000 | ||
Loan agreement minimum liquidity required | $ 21,000 | $ 21,000 | $ 21,000 | ||
Public Offering [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Issuance of common stock | 9,200,000 | ||||
Share price per share | $ 7.50 | ||||
Net proceeds from public offering, after underwriting discount, commission and offering expenses | $ 64,600 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Common Stock Equivalents Outstanding (Detail) - shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 5,681,326 | 3,969,013 |
Options to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 5,676,861 | 3,963,480 |
Unvested Restricted Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive shares | 4,465 | 5,533 |
Fair Value Measurements and M_3
Fair Value Measurements and Marketable Securities - Summary of Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 40,667 | $ 17,349 |
Marketable securities | 82,691 | 61,275 |
Total cash equivalents and marketable securities | 123,358 | 78,624 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 33,018 | 15,802 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,095 | 998 |
Marketable securities | 47,862 | 9,951 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,554 | 549 |
Marketable securities | 24,885 | 50,844 |
U.S. Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 9,944 | |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 480 | |
Quoted Prices in Active Markets, (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 33,018 | 15,802 |
Total cash equivalents and marketable securities | 33,018 | 15,802 |
Quoted Prices in Active Markets, (Level 1) [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 33,018 | 15,802 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 7,649 | 1,547 |
Marketable securities | 82,691 | 61,275 |
Total cash equivalents and marketable securities | 90,340 | 62,822 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,095 | 998 |
Marketable securities | 47,862 | 9,951 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,554 | 549 |
Marketable securities | 24,885 | 50,844 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 9,944 | |
Significant Other Observable Inputs (Level 2) [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 480 |
Fair Value Measurements and M_4
Fair Value Measurements and Marketable Securities - Summary of Marketable Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 82,719 | $ 61,333 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (28) | (58) |
Fair Value | 82,691 | 61,275 |
Corporate Bonds (Due within 1 Year) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 24,897 | 50,892 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (12) | (48) |
Fair Value | 24,885 | 50,844 |
Commercial Paper (Due within 1 Year) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 47,874 | 9,961 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (12) | (10) |
Fair Value | 47,862 | 9,951 |
U.S. Government Securities (Due within 1 Year) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,948 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (4) | |
Fair Value | $ 9,944 | |
Certificates of Deposit (Due Within 1 Year) [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 480 | |
Gross Unrealized Gains | 0 | |
Fair Value | $ 480 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | ||
Accrued research and development expenses | $ 2,780 | $ 1,647 |
Accrued payroll and related expenses | 1,651 | 2,229 |
Accrued professional fees | 290 | 292 |
Accrued other | 180 | 105 |
Total accrued expense | $ 4,901 | $ 4,273 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) - USD ($) | Sep. 30, 2018 | Dec. 29, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 29, 2017 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||||
Proceeds from issuance of notes payable | $ 20,000,000 | |||||||
Unrestricted cash, cash equivalents and marketable securties | $ 127,800,000 | $ 127,800,000 | $ 127,800,000 | |||||
Credit facility default amount | 300,000 | 300,000 | 300,000 | |||||
Notes payable | 20,500,000 | 20,500,000 | 20,500,000 | $ 20,000,000 | ||||
Principal amount of notes payable | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | ||||
Debt instrument, accrued interest | 500,000 | 500,000 | 500,000 | |||||
Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate value of cash maintained by Australian subsidiary, limit | 4,000,000 | |||||||
Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowings under term loan | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | |||
Debt facility description | Upon entering into this Term Loan, the Company is obligated to make monthly, interest-only payments until March 29, 2019 and, thereafter, to pay 33 consecutive, equal monthly installments of principal and interest from April 1, 2019 through December 1, 2021. The outstanding Term Loan bears a variable interest at an annual rate of 1.25% above the prime rate, which at September 30, 2018 was 5.25%. In addition, a final payment equal to 8.0% of the Term Loan is due upon the earlier of the maturity date, acceleration of the Term Loan or prepayment of all or part of the Term Loan. | |||||||
Debt maturity date | Dec. 1, 2021 | |||||||
Debt facility interest rate description | 1.25% above the prime rate | |||||||
Debt facility interest rate | 1.25% | |||||||
Debt facility effective interest rate | 5.25% | 5.25% | 5.25% | |||||
Debt facility fee percentage | 8.00% | |||||||
Charges to interest expense of debt outstanding | $ 1,600,000 | |||||||
Loan agreement minimum liquidity required | $ 21,000,000 | $ 21,000,000 | $ 21,000,000 | $ 21,000,000 | ||||
Debt facility covenant description | Further, as of 45 days after the Term Loan was entered in, the Company met its obligation to maintain a balance of unrestricted cash, cash equivalents and marketable securities at Silicon Valley Bank in an amount not less than the greater of (i) $55.0 million and (ii) sixty-five percent (65%) of all the Company’s cash, cash equivalents and marketable securities. If the Company does not meet this requirement it will not be considered an event of default provided it immediately secures 87.5% of the principal balance in a restricted cash account. | |||||||
Percentage of principal balance to be secured in restricted cash account for not to be considered an event of default | 87.50% | |||||||
Interest expense on term loan | 500,000 | $ 1,400,000 | ||||||
Debt facility effective interest rate | 9.70% | |||||||
Term Loan [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage equivalent of cash, cash equivalents and marketable securities balance | 105.00% | |||||||
Unrestricted cash, cash equivalents and marketable securties | $ 55,000,000 | $ 55,000,000 | $ 55,000,000 | |||||
Percentage of cash, cash equivalents and marketable securities | 65.00% | 65.00% | 65.00% | |||||
Secured Debt [Member] | 2014 Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt facility effective interest rate | 10.80% | 10.80% | ||||||
Interest expense on credit facility | $ 100,000 | $ 100,000 |
Notes Payable - Schedule of Est
Notes Payable - Schedule of Estimated Future Principal Payments (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instruments [Abstract] | ||
2,018 | $ 0 | |
2,019 | 5,454 | |
2,020 | 7,273 | |
2,021 | 7,273 | |
Total | $ 20,000 | $ 20,000 |
Stock-Based Awards - Additional
Stock-Based Awards - Additional Information (Detail) - shares | Jan. 01, 2018 | Sep. 30, 2018 |
2014 Stock Option and Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant | 2,263,902 | |
Shares added to plan | 1,099,578 | |
2014 Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant | 129,844 |
Stock-Based Awards - Summary of
Stock-Based Awards - Summary of Stock-Based Compensation Expense Related to Stock Options, Restricted Common Stock and ESPP (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 2,200 | $ 2,096 | $ 7,337 | $ 6,199 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 1,027 | 896 | 4,263 | 2,629 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 1,173 | $ 1,200 | $ 3,074 | $ 3,570 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jan. 01, 2017ft² | Oct. 01, 2015 | Apr. 15, 2015Option | Jul. 28, 2014 | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2019USD ($) |
Other Commitments [Line Items] | |||||||||
Operating lease, rental expense | $ 100,000 | $ 100,000 | $ 300,000 | $ 300,000 | |||||
Subsequent Licensed Product [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Licensing fees per product maximum | 1,300,000 | 1,300,000 | |||||||
Development Based Milestones [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Milestone payments due | 0 | $ 0 | 0 | $ 0 | |||||
Maximum [Member] | Pre Commercialization Milestones [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Milestone payments | 12,300,000 | 12,300,000 | |||||||
Maximum [Member] | Product Commercialization Milestones [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Milestone payments | $ 12,500,000 | $ 12,500,000 | |||||||
Boston Office Space [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Lease expiration date | Jul. 31, 2020 | Jul. 31, 2020 | |||||||
Boston Office Space [Member] | Unrelated Third Party Member | |||||||||
Other Commitments [Line Items] | |||||||||
Subleased area | ft² | 2,976 | ||||||||
Sublease expiration date | Jun. 30, 2019 | ||||||||
Boston Office Space [Member] | Unrelated Third Party Member | Scenario Forecast [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Sublease rental income | $ 300,000 | ||||||||
Additional Boston Office Space [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Lease expiration date | Jul. 31, 2020 | Jul. 31, 2020 | |||||||
Lease extension period | 3 years | ||||||||
Number of options to extend lease | Option | 1 | ||||||||
San Diego Office Space [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Lease expiration date | Sep. 30, 2019 | ||||||||
Lease extension period | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2018 (October - December) | $ 122 |
2,019 | 464 |
2,020 | 226 |
2,021 | 0 |
Total | $ 812 |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of employer's contribution on employee's base salary | 3.00% | |||
Retirement 401K Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Contribution expense | $ 0.2 | |||
Retirement 401K Plan [Member] | Maximum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Contribution expense | $ 0.1 | |||
SIMPLE IRA plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Contribution expense | $ 0.1 | |||
SIMPLE IRA plan [Member] | Maximum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Contribution expense | $ 0.1 |
Australia Research and Develo_2
Australia Research and Development Tax Incentive - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Research and Development Tax Incentive [Line Items] | |||||
Unrealized foreign currency transaction gains (losses) | $ (45,000) | $ 31,000 | |||
Zafgen Australia Pty Limited [Member] | |||||
Research and Development Tax Incentive [Line Items] | |||||
Unrealized foreign currency transaction gains (losses) | (100,000) | ||||
Zafgen Australia Pty Limited [Member] | Australia [Member] | |||||
Research and Development Tax Incentive [Line Items] | |||||
Tax incentive receivable | $ 1,200,000 | 1,200,000 | $ 900,000 | ||
Zafgen Australia Pty Limited [Member] | Maximum [Member] | |||||
Research and Development Tax Incentive [Line Items] | |||||
Unrealized foreign currency transaction gains (losses) | $ (100,000) | $ 100,000 | 100,000 | ||
Research and Development [Member] | Zafgen Australia Pty Limited [Member] | |||||
Research and Development Tax Incentive [Line Items] | |||||
Percentage of refundable tax incentive | 43.50% | ||||
Reduction to research and development expenses | $ 300,000 | $ 200,000 | $ 1,300,000 | $ 500,000 | |
Percentage of reduction in research and development costs | 43.50% |