Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38068 | |
Entity Registrant Name | ZYMEWORKS INC. | |
Entity Incorporation, State or Country Code | A1 | |
Entity Tax Identification Number | 98-1398788 | |
Entity Address, Address Line One | Suite 540—1385 West 8th Avenue | |
Entity Address, City or Town | Vancouver | |
Entity Address, State or Province | BC | |
Entity Address, Postal Zip Code | V6H 3V9 | |
City Area Code | 604 | |
Local Phone Number | 678-1388 | |
Title of 12(b) Security | Common Shares, no par value per share | |
Trading Symbol | ZYME | |
Security Exchange Name | NYSE | |
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 | 46,553,964 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001403752 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 253,439 | $ 242,036 |
Short-term investments (note 5) | 54,318 | 184,318 |
Accounts receivable | 4,927 | 15,293 |
Prepaid expenses and other current assets | 24,080 | 13,429 |
Total current assets | 336,764 | 455,076 |
Deferred financing fees | 962 | 805 |
Long-term investments (note 5) | 886 | 25,921 |
Long-term prepaid assets | 4,280 | 2,290 |
Deferred tax asset | 1,990 | 1,723 |
Property and equipment, net | 18,560 | 12,185 |
Operating lease right-of-use assets | 24,574 | 5,429 |
Intangible assets, net | 2,700 | 5,303 |
Acquired in-process research and development (note 6) | 17,628 | 17,628 |
Goodwill (note 6) | 12,016 | 12,016 |
Total assets | 420,360 | 538,376 |
Current liabilities: | ||
Accounts payable and accrued liabilities (note 7) | 56,068 | 43,655 |
Fair value of liability classified stock options (note 12) | 18,015 | 39,284 |
Current portion of operating lease liability (note 11) | 1,323 | 2,710 |
Other current liabilities | 22 | 17 |
Total current liabilities | 75,428 | 85,666 |
Long-term portion of operating lease liability (note 11) | 28,742 | 5,812 |
Deferred revenue (note 9) | 32,941 | 32,941 |
Other long-term liabilities (note 7) | 2,571 | 2,857 |
Deferred tax liability | 1,749 | 1,178 |
Total liabilities | 141,431 | 128,454 |
Shareholders’ equity: | ||
Common shares, no par value; unlimited authorized shares at September 30, 2021 and December 31, 2020, respectively; 46,553,660 and 46,035,389 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively (note 8b) | 739,560 | 724,219 |
Additional paid-in capital | 189,980 | 163,623 |
Accumulated other comprehensive loss | (6,659) | (6,659) |
Accumulated deficit | (643,952) | (471,261) |
Total shareholders’ equity | 278,929 | 409,922 |
Total liabilities and shareholders’ equity | 420,360 | 538,376 |
Commitments and contingencies (note 13) | ||
Common shares outstanding | 46,553,660 | 46,035,389 |
Common shares issued | 46,553,660 | 46,035,389 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common shares issued | 46,553,660 | 46,035,389 |
Common shares outstanding | 46,553,660 | 46,035,389 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Loss and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | ||||
Research and development collaborations (note 9) | $ 4,395 | $ 2,643 | $ 6,810 | $ 23,271 |
Operating expenses: | ||||
Research and development | 49,893 | 54,401 | 144,887 | 131,128 |
General and administrative | 15,466 | 21,936 | 36,707 | 42,066 |
Total operating expenses | 65,359 | 76,337 | 181,594 | 173,194 |
Loss from operations | (60,964) | (73,694) | (174,784) | (149,923) |
Other income (expense): | ||||
Interest income | 340 | 1,302 | 1,669 | 4,660 |
Other income (expense), net (note 10) | 809 | (213) | 1,279 | 2,872 |
Total other income, net | 1,149 | 1,089 | 2,948 | 7,532 |
Loss before income taxes | (59,815) | (72,605) | (171,836) | (142,391) |
Income tax recovery (expense) | (764) | 43 | (855) | (268) |
Net loss and comprehensive loss | (60,579) | (72,562) | (172,691) | (142,659) |
Net loss and comprehensive loss | $ (60,579) | $ (72,562) | $ (172,691) | $ (142,659) |
Net loss per common share (note 4): | ||||
Basic (in dollars per share) | $ (1.17) | $ (1.43) | $ (3.35) | $ (2.85) |
Diluted (in dollars per share) | $ (1.25) | $ (1.43) | $ (3.66) | $ (2.85) |
Weighted-average common shares outstanding (note 4): | ||||
Basic (in shares) | 51,657,371 | 50,903,633 | 51,483,428 | 50,129,181 |
Diluted (in shares) | 52,238,901 | 50,903,633 | 52,125,929 | 50,129,181 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common shares | Accumulated deficit | Accumulated other comprehensive loss | Additional paid-in capital |
Beginning balance (in shares) at Dec. 31, 2019 | 39,564,529 | ||||
Beginning balance at Dec. 31, 2019 | $ 245,681 | $ 450,210 | $ (290,709) | $ (6,659) | $ 92,839 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares on exercise of options | 122,492 | ||||
Issuance of common shares on exercise of options | 2,013 | $ 2,767 | (754) | ||
Issuance of common shares through employee stock purchase plan | 21,451 | ||||
Issuance of common shares through employee stock purchase plan | 615 | $ 615 | |||
Fair value adjustments upon reclassification of options to liabilities | (110) | (110) | |||
Stock-based compensation | 4,446 | 4,446 | |||
Issuance of common shares and pre-funded warrants in connection with public offering (Note 8) | 5,824,729 | ||||
Issuance of common shares and pre-funded warrants in connection with public offering (Note 8) | 300,910 | $ 254,018 | 46,892 | ||
Net loss | (31,136) | (31,136) | |||
Ending balance (in shares) at Mar. 31, 2020 | 45,533,201 | ||||
Ending balance at Mar. 31, 2020 | 522,419 | $ 707,610 | (321,845) | (6,659) | 143,313 |
Beginning balance (in shares) at Dec. 31, 2019 | 39,564,529 | ||||
Beginning balance at Dec. 31, 2019 | 245,681 | $ 450,210 | (290,709) | (6,659) | 92,839 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (142,659) | ||||
Ending balance (in shares) at Sep. 30, 2020 | 45,801,804 | ||||
Ending balance at Sep. 30, 2020 | 432,354 | $ 715,304 | (433,368) | (6,659) | 157,077 |
Beginning balance (in shares) at Mar. 31, 2020 | 45,533,201 | ||||
Beginning balance at Mar. 31, 2020 | 522,419 | $ 707,610 | (321,845) | (6,659) | 143,313 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares on exercise of options | 29,954 | ||||
Issuance of common shares on exercise of options | 557 | $ 709 | (152) | ||
Stock-based compensation | 7,238 | 7,238 | |||
Net loss | (38,961) | (38,961) | |||
Ending balance (in shares) at Jun. 30, 2020 | 45,563,155 | ||||
Ending balance at Jun. 30, 2020 | 491,253 | $ 708,319 | (360,806) | (6,659) | 150,399 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares on exercise of options | 216,127 | ||||
Issuance of common shares on exercise of options | 4,960 | $ 5,982 | (1,022) | ||
Issuance of common shares through employee stock purchase plan | 22,522 | ||||
Issuance of common shares through employee stock purchase plan | 1,003 | $ 1,003 | |||
Stock-based compensation | 7,700 | 7,700 | |||
Net loss | (72,562) | (72,562) | |||
Ending balance (in shares) at Sep. 30, 2020 | 45,801,804 | ||||
Ending balance at Sep. 30, 2020 | $ 432,354 | $ 715,304 | (433,368) | (6,659) | 157,077 |
Beginning balance (in shares) at Dec. 31, 2020 | 46,035,389 | 46,035,389 | |||
Beginning balance at Dec. 31, 2020 | $ 409,922 | $ 724,219 | (471,261) | (6,659) | 163,623 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares on exercise of options | 78,736 | ||||
Issuance of common shares on exercise of options | 1,962 | $ 2,624 | (662) | ||
Issuance of common shares through employee stock purchase plan | 26,807 | ||||
Issuance of common shares through employee stock purchase plan | 1,321 | $ 1,321 | |||
Issuance of common shares upon vesting of restricted stock units ("RSUs") | 23,956 | ||||
Issuance of common shares upon vesting of restricted stock units ("RSUs") | 0 | $ 843 | (843) | ||
Stock-based compensation | 8,530 | 8,530 | |||
Net loss | (44,590) | (44,590) | |||
Ending balance (in shares) at Mar. 31, 2021 | 46,164,888 | ||||
Ending balance at Mar. 31, 2021 | $ 377,145 | $ 729,007 | (515,851) | (6,659) | 170,648 |
Beginning balance (in shares) at Dec. 31, 2020 | 46,035,389 | 46,035,389 | |||
Beginning balance at Dec. 31, 2020 | $ 409,922 | $ 724,219 | (471,261) | (6,659) | 163,623 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | $ (172,691) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 46,553,660 | 46,553,660 | |||
Ending balance at Sep. 30, 2021 | $ 278,929 | $ 739,560 | (643,952) | (6,659) | 189,980 |
Beginning balance (in shares) at Mar. 31, 2021 | 46,164,888 | ||||
Beginning balance at Mar. 31, 2021 | 377,145 | $ 729,007 | (515,851) | (6,659) | 170,648 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares on exercise of options | 67,583 | ||||
Issuance of common shares on exercise of options | 763 | $ 1,218 | (455) | ||
Issuance of common shares upon vesting of restricted stock units ("RSUs") | 2,266 | ||||
Issuance of common shares upon vesting of restricted stock units ("RSUs") | $ 86 | (86) | |||
Stock-based compensation | 11,086 | 11,086 | |||
Net loss | (67,522) | (67,522) | |||
Ending balance (in shares) at Jun. 30, 2021 | 46,234,737 | ||||
Ending balance at Jun. 30, 2021 | 321,472 | $ 730,311 | (583,373) | (6,659) | 181,193 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares on exercise of options | 275,425 | ||||
Issuance of common shares on exercise of options | 5,943 | $ 7,449 | (1,506) | ||
Issuance of common shares through employee stock purchase plan | 42,157 | ||||
Issuance of common shares through employee stock purchase plan | 1,759 | $ 1,759 | |||
Issuance of common shares upon vesting of restricted stock units ("RSUs") | 1,341 | ||||
Issuance of common shares upon vesting of restricted stock units ("RSUs") | 0 | $ 41 | (41) | ||
Stock-based compensation | 10,334 | 10,334 | |||
Net loss | $ (60,579) | (60,579) | |||
Ending balance (in shares) at Sep. 30, 2021 | 46,553,660 | 46,553,660 | |||
Ending balance at Sep. 30, 2021 | $ 278,929 | $ 739,560 | $ (643,952) | $ (6,659) | $ 189,980 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (172,691) | $ (142,659) |
Items not involving cash: | ||
Depreciation and amortization of property and equipment | 2,894 | 2,436 |
Amortization of intangible assets | 2,643 | 3,066 |
Stock-based compensation expense | 12,446 | 22,828 |
Amortization and impairment of operating lease right-of-use assets | 2,604 | 2,253 |
Deferred income tax expense | 303 | 8 |
Non-cash consideration from licensing agreement | 0 | (218) |
Change in fair value of contingent consideration liability | 31 | 68 |
Change in fair value of investments in equity instruments | (167) | 0 |
Unrealized foreign exchange gain | (200) | (2,252) |
Changes in non-cash operating working capital: | ||
Accounts receivable | 10,421 | (1,506) |
Prepaid expenses and other current assets | (11,586) | (1,538) |
Accounts payable and accrued liabilities | 10,713 | 15,117 |
Operating lease liabilities | 647 | (1,103) |
Net cash used in operating activities | (141,942) | (103,500) |
Cash flows from financing activities: | ||
Proceeds from public offering, net of issuance costs (note 8a) | 0 | 300,910 |
Issuance of common shares on exercise of stock options (note 8e) | 5,436 | 4,393 |
Issuance of common shares through employee stock purchase plan | 2,070 | 1,111 |
Deferred financing fees | (172) | (93) |
Finance lease payments | (12) | (37) |
Net cash provided by financing activities | 7,322 | 306,284 |
Cash flows from investing activities: | ||
Net redemptions (purchases) of short-term and long-term investments | 154,114 | (81,600) |
Acquisition of property and equipment | (7,621) | (3,285) |
Acquisition of intangible assets | (40) | (1,955) |
Net cash provided by (used in) investing activities | 146,453 | (86,840) |
Effect of exchange rate changes on cash and cash equivalents | (430) | (275) |
Net change in cash and cash equivalents | 11,403 | 115,669 |
Cash and cash equivalents, beginning of period | 242,036 | 128,451 |
Cash and cash equivalents, end of period | 253,439 | 244,120 |
Supplemental disclosure of non-cash investing and financing items: | ||
Leased assets obtained in exchange for operating lease liabilities | 21,748 | 1,817 |
Acquisition of property and equipment in accounts payable and accrued liabilities | $ 1,649 | $ 568 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Zymeworks Inc. (the “Company” or “Zymeworks”) is a clinical-stage biopharmaceutical company dedicated to the development of next-generation multifunctional biotherapeutics. Zymeworks was incorporated on September 8, 2003 under the laws of the Canada Business Corporations Act. On October 22, 2003, the Company was registered as an extra-provincial company under the Company Act (British Columbia). On May 2, 2017, the Company continued under the Business Corporations Act (British Columbia). Since its inception, the Company has devoted substantially all of its resources to research and development activities, including developing its therapeutic platforms, and identifying and developing potential product candidates by undertaking preclinical studies and clinical trials. The Company supports these activities through general and administrative support, as well as by raising capital, conducting business planning and protecting its intellectual property. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying interim condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, these financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the audited consolidated financial statements of the Company and the accompanying notes thereto for the year ended December 31, 2020. These unaudited interim condensed consolidated financial statements reflect all adjustments, consisting solely of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three and nine months ended September 30, 2021 and 2020 are not necessarily indicative of results that can be expected for a full year. These unaudited interim condensed consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the year ended December 31, 2020. All amounts expressed in the interim condensed consolidated financial statements of the Company and the accompanying notes thereto are expressed in thousands of U.S. dollars, except for share and per share data and where otherwise indicated. References to “$” are to U.S. dollars and references to “C$” are to Canadian dollars. Certain prior period amounts have been reclassified from general and administrative expenses to research and development expenses to conform to the current period's presentation. These reclassifications had no effect on previously reported operating expenses, net loss, shareholders' equity, and cash flows from operating activities. Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires the Company to make estimates and judgments in certain circumstances that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, most notably those related to revenue recognition including estimated timing of completion of performance obligations required to meet revenue recognition criteria, accrual of expenses including clinical and preclinical study expense accruals, stock-based compensation, valuation allowance for deferred taxes, benefits under the Scientific Research and Experimental Development (“SR&ED”) program, and other contingencies. Management bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from these estimates. The full extent to which the COVID-19 pandemic may directly or indirectly impact the Company’s business, results of operations and financial condition, including revenues, expenses, clinical trials, research and development costs and employee-related amounts, will depend on future developments that are highly uncertain and cannot be predicted with confidence, such as the location, duration and severity of outbreaks, including potential future waves or cycles, and the effectiveness of actions taken to |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent accounting pronouncements not yet adopted The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to the business, or that no material effect is expected on the consolidated financial statements as a result of future adoption. |
Net loss per share
Net loss per share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net loss per share | Net loss per share Net loss per share for the three and nine months ended September 30, 2021 and 2020 was as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Numerator: Net loss attributable to common shareholders: Basic $ (60,579) $ (72,562) $ (172,691) $ (142,659) Adjustment for change in fair value of liability classified stock options (4,538) — (18,270) — Diluted $ (65,117) $ (72,562) $ (190,961) $ (142,659) Denominator: Weighted-average common shares outstanding: Basic 51,657,371 50,903,633 51,483,428 50,129,181 Adjustment for dilutive effect of liability classified stock options 581,530 — 642,501 — Diluted 52,238,901 50,903,633 52,125,929 50,129,181 Net loss per common share - basic $ (1.17) $ (1.43) $ (3.35) $ (2.85) Net loss per common share - diluted $ (1.25) $ (1.43) $ (3.66) $ (2.85) Weighted average number of common shares used in the basic and diluted earnings per share calculations include the pre-funded warrants issued in connection with the Company’s June 2019 and January 2020 public offerings as the warrants are exercisable at any time for nominal cash consideration. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments Short-term Investments Short-term investments are denominated in U.S. dollars or Canadian dollars and consist of guaranteed investment certificates (“GICs”), term deposits and commercial paper acquired from financial institutions in accordance with the Company’s cash investment policy. Short-term GICs, term deposits and commercial paper bear interest at rates of 0.3%-1.0% per annum, and are classified as held to maturity and are accounted for at amortized cost or available for sale. Long-term Investments |
IPR&D and Goodwill
IPR&D and Goodwill | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
IPR&D and Goodwill | IPR&D and Goodwill Acquired IPR&D In-process research and development assets (“IPR&D”) acquired in the 2016 Kairos Therapeutics Inc. (“Kairos”) business combination are classified as indefinite-lived intangible assets and are not currently being amortized. The carrying value of IPR&D, net of impairment was $17,628 at both September 30, 2021 and December 31, 2020. The Company concluded that there were no impairment indicators related to IPR&D as of September 30, 2021. Goodwill |
Liabilities
Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Liabilities | Liabilities Accounts payable and accrued expenses consisted of the following: September 30, December 31, Trade payables $ 5,046 $ 6,244 Accrued research and development expenses 36,768 25,962 Employee compensation and vacation accruals 10,320 9,439 Accrued legal and professional fees 1,665 859 Other 2,269 1,151 Total $ 56,068 $ 43,655 Other long-term liabilities consisted of the following: September 30, December 31, Liability for contingent consideration (note 12) $ 1,316 $ 1,285 Liability from in-licensing agreement 1,150 1,450 Finance lease liability (note 11) 105 122 Total $ 2,571 $ 2,857 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity a. Equity Offerings 2020 Public Offering On January 27, 2020, the Company closed a public offering pursuant to which the Company sold 5,824,729 common shares, including the sale of 900,000 common shares to the underwriters upon their full exercise of their over-allotment option, at $46.50 per common share and 1,075,271 Pre-Funded Warrants (note 8d) in lieu of common shares at $46.4999 per Pre-Funded Warrant. Net proceeds were $300,910, after underwriting discounts, commissions and offering expenses of $19,940. b. Authorized The Company has an unlimited authorized number of voting Common Shares and Preferred Shares without par value. c. Preferred Shares As of September 30, 2021 and December 31, 2020, no preferred shares were issued or outstanding, respectively. d. Pre-Funded Common Share Warrants In connection with a public offering completed on June 24, 2019, the Company issued 4,166,690 Pre-Funded Warrants at a price of $17.9999 per Pre-Funded Warrant which granted holders of warrants the right to purchase up to 4,166,690 common shares of the Company, at an exercise price of $0.0001 per share. In connection with a public offering completed on January 27, 2020 (note 8a), the Company issued 1,075,271 Pre-Funded Warrants at a price of $46.4999 per Pre-Funded Warrant which granted holders of warrants the right to purchase up to 1,075,271 common shares of the Company, at an exercise price of $0.0001 per share. The Pre-Funded Warrants are exercisable by the holders at any time on or after the original issue date. The Pre-Funded Warrants do not expire unless they are exercised or settled in accordance with the Pre-Funded Warrant agreement. As the Pre-Funded Warrants meet the condition for equity classification, proceeds from issuance of the Pre-Funded Warrants, net of any transaction costs, are recorded in additional paid-in capital. Upon exercise of the Pre-Funded Warrants, the historical costs recorded in additional paid-in capital along with exercise price collected from holders will be recorded in common shares. No Pre-Funded Warrants have been exercised to date. e. Stock-Based Compensation Original Stock Option Plan On July 14, 2006, the shareholders of the Company approved an employee stock option plan (the “Original Plan”). The Original Plan provides for the granting of options to directors, officers, employees and consultants. Options to purchase common shares may be granted at an exercise price of each option equal to the last private issuance of common shares immediately preceding the date of the grant. The total number of options outstanding is not to exceed 20% of the issued common shares of the Company. Options granted under the Original Plan are exercisable at various dates over their 10-year life. Common shares are issued from treasury when options are exercised. The exercise prices of the Company’s stock options under the Original Plan are denominated in Canadian dollars. The Canadian dollar amounts have been translated to U.S. dollars using the period end rate or the average foreign exchange rate for the period, as applicable, and have been provided for information purposes. Upon the effectiveness of the Company’s New Plan described below, no further options were issuable under the Original Plan. However, all outstanding options granted under the Original Plan remain outstanding, subject to the terms of the Original Plan and the applicable grant documents, until such outstanding options are exercised or they terminate or expire by their terms. New Stock Option and Equity Compensation Plan On April 10, 2017, the Company’s shareholders approved a new stock option plan, which became effective immediately prior to the consummation of the Company's IPO. This plan allows for the grant of options to directors, officers, employees and consultants in U.S. or Canadian dollars, and also permits the Company to grant incentive stock options (“ISOs”), within the meaning of Section 422 of the Internal Revenue Code, to its employees. On June 7, 2018, the Company’s shareholders approved an amendment and restatement of this plan (this plan, as amended and restated, the “New Plan”), which includes an article that allows the Company to grant restricted shares, restricted share units (“RSUs”) and other share-based awards, in addition to stock options. On March 4, 2020, the Board of Directors approved certain minor amendments to the New Plan that did not require shareholder approval. The original maximum number of common shares reserved for issuance under the New Plan as of June 7, 2018 was 5,686,097, which includes 3,686,097 shares issuable upon exercise of options outstanding as of March 31, 2018. Beginning in 2019 and ending in 2028, this maximum number may be increased on the first day of each calendar year by up to 4.0% of the number of outstanding shares on the last day of the immediately preceding calendar year. As of September 30, 2021, 1,152,206 common shares were available for future award grants under the New Plan (December 31, 2020: 1,242,038 common shares). ISOs may be granted with respect to a maximum fixed amount equal to 20% of the shares reserved for issuance under the New Plan as of June 7, 2018. Restricted Stock Units ( “ RSUs ” ) During the nine months ended September 30, 2021, the Company granted 128,905 RSUs to certain employees that vest over a period of three years, in the amount of one-third each year on the anniversary of the grant date. RSUs are equity-settled on each vesting date, subject to the grantee’s continued employment with the Company on the vesting date. The fair value of RSUs granted was calculated by using the closing stock price on the grant date. As of September 30, 2021, there was unamortized RSU expense of $3,517 that will be recognized over a weighted average period of 1.55 years. Number of RSUs Weighted- Outstanding, December 31, 2020 82,704 35.19 Granted 128,905 36.57 Vested and settled (27,563) 35.19 Forfeited (13,125) 34.96 Outstanding, September 30, 2021 170,921 36.25 Stock Options All options granted under the New Plan will have an exercise price determined and approved by the Board of Directors on the date of the grant, which shall not be less than the market price of the common shares at such time. For the purposes of the New Plan, the market price of a common share shall be the closing sale price of a share on the grant date reported by the stock exchange with the greatest trading volume or, if such day is not a trading day, the closing sale price reported for the immediately preceding trading day. The Company may convert a market price denominated in Canadian dollars into United States dollars and vice versa and such converted amount shall be the market price. An option shall be exercisable during a period established by the Board of Directors which shall commence on the date of the grant and shall terminate not later than ten years after the date of the granting of the option. The New Plan provides that the exercise period shall automatically be extended if the date on which it is scheduled to terminate shall fall during a black-out period. In such cases, the extended exercise period shall terminate on the tenth business day after the last day of the black-out period, provided that the exercise period shall in no case be extended beyond the tenth anniversary of the date the option was granted. All options shall vest in accordance with the terms of their grant agreements. The following table summarizes the Company’s stock options granted in Canadian dollars under the Original Plan and the New Plan: Number Weighted- Weighted- Weighted- Aggregate Aggregate Outstanding, December 31, 2020 2,285,569 22.00 17.27 6.46 87,545 68,664 Granted 466,117 43.20 34.41 Exercised (176,260) 14.23 11.23 Forfeited (47,845) 40.38 32.31 Outstanding, September 30, 2021 2,527,581 26.10 20.58 6.48 21,268 16,712 The following table summarizes the Company’s stock options granted in U.S. dollars under the New Plan: Number Weighted- Weighted- Aggregate Outstanding, December 31, 2020 3,790,326 22.85 8.20 92,705 Granted 1,506,778 35.36 Exercised (245,484) 14.11 Forfeited (109,583) 33.18 Outstanding, September 30, 2021 4,942,037 26.87 8.09 30,405 During the nine months ended September 30, 2021, the Company received cash proceeds of $5,436 from stock options exercised (nine months ended September 30, 2020: $4,393). The stock options outstanding at September 30, 2021 expire at various dates from January 1, 2022 to September 9, 2031. The estimated fair values of options granted to officers, directors, employees and consultants are amortized over the relevant vesting periods. Stock-based compensation expense for equity classified instruments, as well as the financial statement impact of the amortization and periodic revaluation of liability classified instruments (note 12), are recorded in research and development expenses, general and administration expenses and finance expense (income) as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development expense: Stock-based compensation for equity classified instruments $ 5,562 $ 3,389 $ 15,688 $ 8,680 Change in fair value of liability classified instruments (916) 2,379 (3,185) 479 $ 4,646 $ 5,768 $ 12,503 $ 9,159 General and administrative expense: Stock-based compensation for equity classified instruments $ 4,773 $ 4,311 $ 14,260 $ 10,703 Change in fair value of liability classified instruments (3,600) 8,195 (15,006) 2,395 $ 1,173 $ 12,506 $ (746) $ 13,098 Finance expense (income): Change in fair value of liability classified instruments (22) 49 (80) 13 $ (22) $ 49 $ (80) $ 13 Amounts for equity classified instruments above include stock-based compensation expense relating to RSUs of $856 and $2,180 for the three and nine months ended September 30, 2021, respectively (three and nine months ended September 30, 2020: $436 and $939, respectively). The estimated fair value of stock options granted in Canadian dollars under the Original Plan and the New Plan was determined using the Black-Scholes option pricing model with the following weighted-average assumptions: Nine Months Ended September 30, 2021 2020 Dividend yield 0 % 0 % Expected volatility 80.8 % 76.2 % Risk-free interest rate 1.01 % 0.61 % Expected average life of options 6.07 years 6.07 years The estimated fair value of stock options granted in U.S. dollars under the New Plan was determined using the Black-Scholes option pricing model with the following weighted-average assumptions: Nine Months Ended September 30, 2021 2020 Dividend yield 0 % 0 % Expected volatility 80.7 % 76.6 % Risk-free interest rate 0.97 % 0.69 % Expected average life of options 6.04 years 6.02 years Expected Volatility — Volatility is a measure of the amount by which a financial variable such as a share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. As the Company does not yet have sufficient history of its own volatility, the Company has identified several public entities of similar complexity and stage of development and calculates historical volatility using the volatility of these companies. Risk-Free Interest Rate — This rate is from the Government of Canada and U.S. Federal Reserve marketable bonds for the month prior to each option grant during the year, having a term that most closely resembles the expected life of the option. Expected Term — This is the period of time that the options granted are expected to remain unexercised. Options granted have a maximum term of ten years. The Company uses the simplified method to calculate the average expected term, which represents the average of the vesting period and the contractual term. Share Fair Value — Options granted after the Company’s IPO, are issued with exercise price equal to the fair market value of the Company’s common stock on the grant date. Before the IPO, the Company granted stock options at exercise prices not less than the fair value of its common shares as determined by the Board of Directors, with input from management. Management estimated the fair value of its common shares based on a number of objective and subjective factors, including the most recently available valuation of common shares prepared by independent valuation specialists, external market considerations affecting the biotechnology industry and the historic prices at which the Company sold common shares. The weighted-average Black-Scholes option pricing assumptions for liability classified stock options outstanding at September 30, 2021 and 2020 are as follows: September 30, September 30, Dividend yield 0 % 0 % Expected volatility 73.4 % 85.4 % Risk-free interest rate 0.62 % 0.27 % Expected average option term 2.38 years 2.95 years Number of liability classified stock options outstanding 911,400 1,158,677 At September 30, 2021, the unamortized compensation expense related to unvested options was $42,109 (C$53,591). The remaining unamortized compensation expense as of September 30, 2021 will be recognized over a weighted-average period of 1.93 years. f. Employee Stock Purchase Plan: On April 10, 2017, the Company’s shareholders approved an employee stock purchase plan (“ESPP”) which became effective immediately prior to the consummation of the Company’s IPO. On June 7, 2018, certain amendments to the ESPP were approved by shareholders. Prior to these amendments, the ESPP allowed eligible employees to acquire common shares at a discounted purchase price of 85% of the market value of the Company's common shares on the purchase date. The ESPP, as amended, allows eligible employees to acquire common shares at a discounted purchase price of the lesser of (i) 85% of the market price of a common share on the first day of the applicable purchase period and (ii) 85% of the market price of a common share on the purchase date. The ESPP qualifies as an “employee stock purchase plan” within the meaning of Section 423 of the Code for employees who are United States taxpayers. The Company currently holds offerings consisting of a single six-month purchase period commencing on January 1 and July 1 of each calendar year, with a single purchase date at the end of the purchase period on June 30 and December 31 of each calendar year. Eligible employees are able to contribute up to 15% of their gross base earnings for purchases under the ESPP through regular payroll deductions. Purchases of shares under the ESPP are limited for each employee at twenty-five thousand dollar worth of the Company’s common shares (determined using the lesser of (i) the market price of a common share on the first day of the applicable purchase period and (ii) the market price of a common share on the purchase date) for each year such purchase right is outstanding. As this plan is considered compensatory, the Company recognizes compensation expense on these awards based on their estimated grant date fair value using the Black-Scholes option pricing model. The Company recognizes compensation expense in the consolidated statements of loss and comprehensive loss on a straight-line basis over the requisite service period. For the nine months ended September 30, 2021, the Company recorded compensation expense of $767 (nine months ended September 30, 2020: $559) in research and development expense and general and administrative expense accounts. As of September 30, 2021, the total amount contributed by ESPP participants and not yet settled is $615 (December 31, 2020: $926). |
Research, Collaboration and Lic
Research, Collaboration and Licensing Agreements | 9 Months Ended |
Sep. 30, 2021 | |
License Agreements Research Collaborations And Development Agreements [Abstract] | |
Research, Collaboration and Licensing Agreements | Research, Collaboration and Licensing Agreements Revenue recognized from the Company’s strategic partnerships is summarized as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Janssen Biotech, Inc. ("Janssen"): Milestone revenue $ 4,000 $ — $ 4,000 $ — Celgene Corporation and Celgene Alpine Investment Co. LLC (formerly “Celgene” and now a Bristol-Myers Squibb company, “BMS”) Upfront fee relating to amendment — — — 12,000 BeiGene, Ltd ("BeiGene"): Milestone revenue — — — 5,000 Research support and other payments 395 2,643 2,810 6,271 $ 4,395 $ 2,643 $ 6,810 $ 23,271 Since December 31, 2020, there have not been any material changes to the key terms of the Company's collaboration and license agreements. For further information on the terms and conditions of the Company's existing collaboration and license agreements, please refer to the notes to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year-ended December 31, 2020. In July 2021, the Company recognized milestone revenue of $4,000 under a license agreement with Janssen upon Janssen's dosing of the first patient with a bispecific antibody developed using Zymeworks' Azymetric and EFECT platforms. The Company did not have any performance obligations in relation to this milestone on the date it was achieved. Accordingly, it was recognized as revenue during the nine months ended September 30, 2021. In June 2020, the Company's existing collaboration agreement with BMS was amended to expand the license grant to include the use of the Company's EFECT platform for the development of product candidates and to extend the research term. The amendment included an upfront fee of $12,000 and all other financial terms were unchanged. The Company's performance obligations in relation to the upfront fee were met on the date of amendment. Accordingly, the upfront payment was recognized as revenue during the nine months ended September 30, 2020. In March 2020, the Company recognized milestone revenue of $5,000 under a license and collaboration agreement with BeiGene upon BeiGene's dosing of zanidatamab in the first patient in a clinical study in its territory. The Company did not have any performance obligations in relation to this milestone on the date it was achieved. Accordingly, it was recognized as revenue during the nine months ended September 30, 2020. At September 30, 2021, contract assets from research, collaboration and licensing agreements were nil (December 31, 2020: nil) and contract liabilities were $32,941 (December 31, 2020: $32,941). Contract liabilities include deferred revenue relating to an upfront payment received in 2018 under the licensing and collaboration agreement with BeiGene referred to above. During the nine months ended September 30, 2021, the Company did not recognize any revenue from performance obligations satisfied in relation to the deferred revenue (nine months ended September 30, 2020: nil). Amounts not expected to be recognized as revenue in the next twelve months from September 30, 2021 have been classified as long-term deferred revenue. |
Other (expense) income, net
Other (expense) income, net | 9 Months Ended |
Sep. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other (expense) income, net | Other (expense) income, net Other (expense) income consist of the following: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Foreign exchange gain (loss) $ 813 $ (148) $ 1,185 $ 2,910 Other (4) (65) 94 (38) $ 809 $ (213) $ 1,279 $ 2,872 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company leases separate office and laboratory spaces in Vancouver, British Columbia, with terms of each lease expiring in February 2022. On January 25, 2019, the Company entered into a lease for a new building in Vancouver to serve as the Company’s future headquarters, including both office and laboratory space. This lease commenced for accounting purposes in May 2021 and construction of leasehold improvements is in progress. This lease has an initial term of ten years, with two five-year extension options. In addition, the Company leases office space in Seattle, Washington with lease terms expiring in February 2027. None of the optional extension periods have been included in the determination of the right-of-use assets or the lease liabilities for operating leases as the Company did not consider it reasonably certain that the Company would exercise any such options. The Company also leases office equipment under capital lease agreements. The balance sheet classification of the Company’s lease liabilities was as follows: September 30, December 31, Operating lease liabilities: Current portion $ 1,323 $ 2,710 Long-term portion 28,742 5,812 Total operating lease liabilities 30,065 $ 8,522 Finance lease liabilities: Current portion included in other current liabilities 22 17 Long-term portion included in other long-term liabilities 105 122 Total finance lease liabilities 127 139 Total lease liabilities $ 30,192 $ 8,661 Cash paid for amounts included in the measurement of operating lease liabilities for the nine months ended September 30, 2021 was $2,343 and was included in net cash used in operating activities in the consolidated statement of cash flows (nine months ended September 30, 2020: $1,871). As of September 30, 2021, the maturities of the Company’s operating lease liabilities were as follows: Operating Within 1 year $ 2,482 1 to 2 years 4,655 2 to 3 years 4,588 3 to 4 years 4,699 4 to 5 years 4,659 Thereafter 15,415 Total operating lease payments 36,498 Less: Imputed interest (6,433) Operating lease liabilities $ 30,065 As of September 30, 2021, the weighted average remaining lease term is 8.6 years and the discount rate used to determine the operating lease liability was 4.8% for leases in Canadian dollars and 2.2% for leases in U.S. dollars. During the nine months ended September 30, 2021, the Company incurred total operating lease expenses of $4,030, which included lease expenses associated with fixed lease payments of $3,756, and variable payments associated with common area maintenance and similar expenses of $274. In addition to the operating lease liabilities included in the table above, the Company has commitments for future operating lease payments of $3,900 under the terms of the lease for the Company’s additional lab space in Seattle, which is expected to commence in November 2021. |
Leases | Leases The Company leases separate office and laboratory spaces in Vancouver, British Columbia, with terms of each lease expiring in February 2022. On January 25, 2019, the Company entered into a lease for a new building in Vancouver to serve as the Company’s future headquarters, including both office and laboratory space. This lease commenced for accounting purposes in May 2021 and construction of leasehold improvements is in progress. This lease has an initial term of ten years, with two five-year extension options. In addition, the Company leases office space in Seattle, Washington with lease terms expiring in February 2027. None of the optional extension periods have been included in the determination of the right-of-use assets or the lease liabilities for operating leases as the Company did not consider it reasonably certain that the Company would exercise any such options. The Company also leases office equipment under capital lease agreements. The balance sheet classification of the Company’s lease liabilities was as follows: September 30, December 31, Operating lease liabilities: Current portion $ 1,323 $ 2,710 Long-term portion 28,742 5,812 Total operating lease liabilities 30,065 $ 8,522 Finance lease liabilities: Current portion included in other current liabilities 22 17 Long-term portion included in other long-term liabilities 105 122 Total finance lease liabilities 127 139 Total lease liabilities $ 30,192 $ 8,661 Cash paid for amounts included in the measurement of operating lease liabilities for the nine months ended September 30, 2021 was $2,343 and was included in net cash used in operating activities in the consolidated statement of cash flows (nine months ended September 30, 2020: $1,871). As of September 30, 2021, the maturities of the Company’s operating lease liabilities were as follows: Operating Within 1 year $ 2,482 1 to 2 years 4,655 2 to 3 years 4,588 3 to 4 years 4,699 4 to 5 years 4,659 Thereafter 15,415 Total operating lease payments 36,498 Less: Imputed interest (6,433) Operating lease liabilities $ 30,065 As of September 30, 2021, the weighted average remaining lease term is 8.6 years and the discount rate used to determine the operating lease liability was 4.8% for leases in Canadian dollars and 2.2% for leases in U.S. dollars. During the nine months ended September 30, 2021, the Company incurred total operating lease expenses of $4,030, which included lease expenses associated with fixed lease payments of $3,756, and variable payments associated with common area maintenance and similar expenses of $274. In addition to the operating lease liabilities included in the table above, the Company has commitments for future operating lease payments of $3,900 under the terms of the lease for the Company’s additional lab space in Seattle, which is expected to commence in November 2021. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The Company evaluates financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level of classification each reporting period. This determination requires the Company to make subjective judgments as to the significance of inputs used in determining fair value and where such inputs lie within the fair value hierarchy. Fair Value Measurements The Company measures certain financial instruments and other items at fair value. To determine fair value, the Company uses a fair value hierarchy that prioritizes the inputs, assumptions and valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows: • Level 1 inputs are unadjusted quoted market prices for identical instruments available in active markets. • Level 2 inputs are inputs other than Level 1 prices, such as prices for a similar asset or liability that are observable either directly or indirectly. If the asset or liability has a contractual term, the input must be observable for substantially the full term. An example includes quoted market prices for similar assets or liabilities in active markets. • Level 3 inputs are unobservable inputs for the asset or liability and will reflect management’s assessment about market assumptions that would be used to price the asset or liability. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s financial instruments consist of cash and cash equivalents, short-term and long-term investments in marketable and other securities, amounts receivable, accounts payable and accrued liabilities, finance and operating lease obligations, and other long-term liabilities. The carrying values of cash and cash equivalents, short-term investments in marketable securities, amounts receivable and accounts payable and accrued liabilities approximate their fair values due to the near-term maturities of these financial instruments. As at September 30, 2021, long-term investments in equity securities of private entities are accounted for as available for sale at their fair values. Other long-term liabilities for contingent consideration related to business acquisitions are recorded at fair value on the acquisition date and are adjusted quarterly for changes in fair value. Changes in the fair value of contingent consideration liabilities can result from changes in anticipated milestone payments and changes in assumed discount periods and rates. These inputs are unobservable in the market and therefore categorized as level 3 inputs as defined above. The following tables present information about the Company’s liabilities that are measured at fair value on a recurring basis, and indicate the fair value hierarchy of the valuation techniques used to determine such fair value: September 30, Level 1 Level 2 Level 3 Liabilities Liability for contingent consideration (note 13) $ 1,316 $ — $ — $ 1,316 Total $ 1,316 $ — $ — $ 1,316 December 31, Level 1 Level 2 Level 3 Liabilities Liability for contingent consideration (note 13) $ 1,285 $ — $ — $ 1,285 Total $ 1,285 $ — $ — $ 1,285 The following table presents the changes in fair value of the Company’s liability for contingent consideration: Liability at Increase Liability at end Three Months Ended September 30, 2021 $ 1,316 $ — $ 1,316 Nine Months Ended September 30, 2021 $ 1,285 $ 31 $ 1,316 Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, long-term investments and accounts receivable. Cash and cash equivalents and investments in marketable securities are invested in accordance with the Company’s cash investment policy with the primary objective being the preservation of capital and maintenance of liquidity. The cash investment policy includes guidelines on the quality of financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. The Company limits its exposure to credit loss by placing its cash and cash equivalents and short-term investments with high credit quality financial institutions. At September 30, 2021, the maximum exposure to credit risk for accounts receivable was $4,927 (December 31, 2020: $15,293) and all accounts receivable are due within the next 12 months. As at September 30, 2021, accounts receivable included $2,871 in lease incentive receivable in relation to the lease for the Company’s future headquarters (December 31, 2020: nil). As at September 30, 2021 and December 31, 2020, the Company has not recognized any provision for expected credit losses in relation to accounts receivable. Liquidity Risk Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s short-term cash requirements are primarily to settle its financial liabilities, which consist primarily of accounts payable and accrued liabilities falling due within 45 days and current portion of lease obligations falling due within the next 12 months, with medium-term requirements to invest in property and equipment and research and development. The Company’s principal sources of liquidity to settle its financial liabilities are cash, cash equivalents and short-term investments, collection of accounts receivable relating to research collaboration and license agreements and additional public equity offerings as required. The Company believes that these principal sources of liquidity are sufficient to fund its operations for at least the next 12 months. Foreign Currency Risk The Company incurs certain operating expenses in currencies other than the U.S. dollar and accordingly is subject to foreign exchange risk due to fluctuations in exchange rates. The Company does not use derivative instruments to hedge exposure to foreign exchange risk due to the low volume of transactions denominated in foreign currencies. At September 30, 2021, the Company’s net monetary assets denominated in Canadian dollars were $8,569 (C$10,908). |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has entered into research collaboration agreements with strategic partners in the ordinary course of operations that may include contractual milestone payments related to the achievement of pre-specified research, development, regulatory and commercialization events and indemnification provisions, which are common in such agreements. Pursuant to the agreements, the Company is obligated to make research and development and regulatory milestone payments upon the occurrence of certain events and royalty payments based on net sales. The maximum amount of potential future indemnification is unlimited, however, the Company currently holds commercial and product liability insurance that limits the Company’s liability and may enable it to recover a portion of any future amounts paid. Historically, the Company has not made any indemnification payments under such agreements and believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to indemnification obligations for any period presented in the consolidated financial statements. In connection with the Company's 2016 Kairos acquisition, the Company may be required to make future payments to CDRD Ventures Inc. (“CVI”) upon the direct achievement of certain development milestones for products incorporating certain Kairos intellectual property, as well as royalty payments on the net sales of such products. For out-licensed products and technologies incorporating certain Kairos intellectual property, the Company may be required to pay CVI a mid-single digit percentage of the future revenue as a result of a revenue sharing agreement. As of September 30, 2021, the contingent consideration had an estimated fair value of $1,316, which has been recorded within other long-term liabilities on the Company's consolidated balance sheet (December 31, 2020: $1,285). The contingent consideration was calculated using a probability weighted assessment of the likelihood of the milestones being met, a probability adjusted discount rate that reflects the stage of the development and time to complete the development. Contingent consideration is a financial liability and measured at its fair value at each reporting period, with any changes in fair value from the previous reporting period recorded in the statement of loss and comprehensive loss. Contingencies From time to time, the Company may be subject to various legal proceedings and claims related to matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, these financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the audited consolidated financial statements of the Company and the accompanying notes thereto for the year ended December 31, 2020. These unaudited interim condensed consolidated financial statements reflect all adjustments, consisting solely of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three and nine months ended September 30, 2021 and 2020 are not necessarily indicative of results that can be expected for a full year. These unaudited interim condensed consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the year ended December 31, 2020. All amounts expressed in the interim condensed consolidated financial statements of the Company and the accompanying notes thereto are expressed in thousands of U.S. dollars, except for share and per share data and where otherwise indicated. References to “$” are to U.S. dollars and references to “C$” are to Canadian dollars. Certain prior period amounts have been reclassified from general and administrative expenses to research and development expenses to conform to the current period's presentation. These reclassifications had no effect on previously reported operating expenses, net loss, shareholders' equity, and cash flows from operating activities. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires the Company to make estimates and judgments in certain circumstances that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, most notably those related to revenue recognition including estimated timing of completion of performance obligations required to meet revenue recognition criteria, accrual of expenses including clinical and preclinical study expense accruals, stock-based compensation, valuation allowance for deferred taxes, benefits under the Scientific Research and Experimental Development (“SR&ED”) program, and other contingencies. Management bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from these estimates. The full extent to which the COVID-19 pandemic may directly or indirectly impact the Company’s business, results of operations and financial condition, including revenues, expenses, clinical trials, research and development costs and employee-related amounts, will depend on future developments that are highly uncertain and cannot be predicted with confidence, such as the location, duration and severity of outbreaks, including potential future waves or cycles, and the effectiveness of actions taken to |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent accounting pronouncements not yet adopted The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to the business, or that no material effect is expected on the consolidated financial statements as a result of future adoption. |
Net loss per share (Tables)
Net loss per share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Diluted Loss Per Share | Net loss per share for the three and nine months ended September 30, 2021 and 2020 was as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Numerator: Net loss attributable to common shareholders: Basic $ (60,579) $ (72,562) $ (172,691) $ (142,659) Adjustment for change in fair value of liability classified stock options (4,538) — (18,270) — Diluted $ (65,117) $ (72,562) $ (190,961) $ (142,659) Denominator: Weighted-average common shares outstanding: Basic 51,657,371 50,903,633 51,483,428 50,129,181 Adjustment for dilutive effect of liability classified stock options 581,530 — 642,501 — Diluted 52,238,901 50,903,633 52,125,929 50,129,181 Net loss per common share - basic $ (1.17) $ (1.43) $ (3.35) $ (2.85) Net loss per common share - diluted $ (1.25) $ (1.43) $ (3.66) $ (2.85) |
Liabilities (Tables)
Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: September 30, December 31, Trade payables $ 5,046 $ 6,244 Accrued research and development expenses 36,768 25,962 Employee compensation and vacation accruals 10,320 9,439 Accrued legal and professional fees 1,665 859 Other 2,269 1,151 Total $ 56,068 $ 43,655 |
Schedule of Other Long-term Liabilities | Other long-term liabilities consisted of the following: September 30, December 31, Liability for contingent consideration (note 12) $ 1,316 $ 1,285 Liability from in-licensing agreement 1,150 1,450 Finance lease liability (note 11) 105 122 Total $ 2,571 $ 2,857 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | Number of RSUs Weighted- Outstanding, December 31, 2020 82,704 35.19 Granted 128,905 36.57 Vested and settled (27,563) 35.19 Forfeited (13,125) 34.96 Outstanding, September 30, 2021 170,921 36.25 |
Summary of Stock Options Granted | The following table summarizes the Company’s stock options granted in Canadian dollars under the Original Plan and the New Plan: Number Weighted- Weighted- Weighted- Aggregate Aggregate Outstanding, December 31, 2020 2,285,569 22.00 17.27 6.46 87,545 68,664 Granted 466,117 43.20 34.41 Exercised (176,260) 14.23 11.23 Forfeited (47,845) 40.38 32.31 Outstanding, September 30, 2021 2,527,581 26.10 20.58 6.48 21,268 16,712 The following table summarizes the Company’s stock options granted in U.S. dollars under the New Plan: Number Weighted- Weighted- Aggregate Outstanding, December 31, 2020 3,790,326 22.85 8.20 92,705 Granted 1,506,778 35.36 Exercised (245,484) 14.11 Forfeited (109,583) 33.18 Outstanding, September 30, 2021 4,942,037 26.87 8.09 30,405 |
Schedule of Stock-Based Compensation Expense | The estimated fair values of options granted to officers, directors, employees and consultants are amortized over the relevant vesting periods. Stock-based compensation expense for equity classified instruments, as well as the financial statement impact of the amortization and periodic revaluation of liability classified instruments (note 12), are recorded in research and development expenses, general and administration expenses and finance expense (income) as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Research and development expense: Stock-based compensation for equity classified instruments $ 5,562 $ 3,389 $ 15,688 $ 8,680 Change in fair value of liability classified instruments (916) 2,379 (3,185) 479 $ 4,646 $ 5,768 $ 12,503 $ 9,159 General and administrative expense: Stock-based compensation for equity classified instruments $ 4,773 $ 4,311 $ 14,260 $ 10,703 Change in fair value of liability classified instruments (3,600) 8,195 (15,006) 2,395 $ 1,173 $ 12,506 $ (746) $ 13,098 Finance expense (income): Change in fair value of liability classified instruments (22) 49 (80) 13 $ (22) $ 49 $ (80) $ 13 |
Schedule of Estimated Fair Value of Stock Options Assumptions | The estimated fair value of stock options granted in Canadian dollars under the Original Plan and the New Plan was determined using the Black-Scholes option pricing model with the following weighted-average assumptions: Nine Months Ended September 30, 2021 2020 Dividend yield 0 % 0 % Expected volatility 80.8 % 76.2 % Risk-free interest rate 1.01 % 0.61 % Expected average life of options 6.07 years 6.07 years The estimated fair value of stock options granted in U.S. dollars under the New Plan was determined using the Black-Scholes option pricing model with the following weighted-average assumptions: Nine Months Ended September 30, 2021 2020 Dividend yield 0 % 0 % Expected volatility 80.7 % 76.6 % Risk-free interest rate 0.97 % 0.69 % Expected average life of options 6.04 years 6.02 years The weighted-average Black-Scholes option pricing assumptions for liability classified stock options outstanding at September 30, 2021 and 2020 are as follows: September 30, September 30, Dividend yield 0 % 0 % Expected volatility 73.4 % 85.4 % Risk-free interest rate 0.62 % 0.27 % Expected average option term 2.38 years 2.95 years Number of liability classified stock options outstanding 911,400 1,158,677 |
Research, Collaboration and L_2
Research, Collaboration and Licensing Agreements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
License Agreements Research Collaborations And Development Agreements [Abstract] | |
Schedule of Revenue Recognized from Strategic Partnerships | Revenue recognized from the Company’s strategic partnerships is summarized as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Janssen Biotech, Inc. ("Janssen"): Milestone revenue $ 4,000 $ — $ 4,000 $ — Celgene Corporation and Celgene Alpine Investment Co. LLC (formerly “Celgene” and now a Bristol-Myers Squibb company, “BMS”) Upfront fee relating to amendment — — — 12,000 BeiGene, Ltd ("BeiGene"): Milestone revenue — — — 5,000 Research support and other payments 395 2,643 2,810 6,271 $ 4,395 $ 2,643 $ 6,810 $ 23,271 |
Other (expense) income, net (Ta
Other (expense) income, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Other (expense) income consist of the following: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Foreign exchange gain (loss) $ 813 $ (148) $ 1,185 $ 2,910 Other (4) (65) 94 (38) $ 809 $ (213) $ 1,279 $ 2,872 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Balance Sheet Classification of Lease Liabilities | The balance sheet classification of the Company’s lease liabilities was as follows: September 30, December 31, Operating lease liabilities: Current portion $ 1,323 $ 2,710 Long-term portion 28,742 5,812 Total operating lease liabilities 30,065 $ 8,522 Finance lease liabilities: Current portion included in other current liabilities 22 17 Long-term portion included in other long-term liabilities 105 122 Total finance lease liabilities 127 139 Total lease liabilities $ 30,192 $ 8,661 |
Schedule of Maturities of Operating Lease Liabilities | As of September 30, 2021, the maturities of the Company’s operating lease liabilities were as follows: Operating Within 1 year $ 2,482 1 to 2 years 4,655 2 to 3 years 4,588 3 to 4 years 4,699 4 to 5 years 4,659 Thereafter 15,415 Total operating lease payments 36,498 Less: Imputed interest (6,433) Operating lease liabilities $ 30,065 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis | The following tables present information about the Company’s liabilities that are measured at fair value on a recurring basis, and indicate the fair value hierarchy of the valuation techniques used to determine such fair value: September 30, Level 1 Level 2 Level 3 Liabilities Liability for contingent consideration (note 13) $ 1,316 $ — $ — $ 1,316 Total $ 1,316 $ — $ — $ 1,316 December 31, Level 1 Level 2 Level 3 Liabilities Liability for contingent consideration (note 13) $ 1,285 $ — $ — $ 1,285 Total $ 1,285 $ — $ — $ 1,285 |
Summary of Changes in Fair Value of the Company's Liability for Contingent Consideration | The following table presents the changes in fair value of the Company’s liability for contingent consideration: Liability at Increase Liability at end Three Months Ended September 30, 2021 $ 1,316 $ — $ 1,316 Nine Months Ended September 30, 2021 $ 1,285 $ 31 $ 1,316 |
Net loss per share - Summary of
Net loss per share - Summary of Calculation of Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net loss attributable to common shareholders: | ||||
Net loss attributable to common shareholders basic | $ (60,579) | $ (72,562) | $ (172,691) | $ (142,659) |
Adjustment for change in fair value of liability classified stock options | (4,538) | 0 | (18,270) | 0 |
Net loss attributable to common shareholders diluted | $ (65,117) | $ (72,562) | $ (190,961) | $ (142,659) |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 51,657,371 | 50,903,633 | 51,483,428 | 50,129,181 |
Adjustment for dilutive effect of liability classified stock options (in shares) | 581,530 | 0 | 642,501 | 0 |
Diluted (in shares) | 52,238,901 | 50,903,633 | 52,125,929 | 50,129,181 |
Net loss per common share-basic (in dollars per share) | $ (1.17) | $ (1.43) | $ (3.35) | $ (2.85) |
Net loss per common share-diluted (in dollars per share) | $ (1.25) | $ (1.43) | $ (3.66) | $ (2.85) |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Investments [Line Items] | ||
Long-term investments | $ 886 | $ 25,921 |
Minimum | Short-term GICs | ||
Investments [Line Items] | ||
Short term investments interest rate | 0.30% | |
Maximum | Short-term GICs | ||
Investments [Line Items] | ||
Short term investments interest rate | 1.00% |
IPR&D and Goodwill Intangible A
IPR&D and Goodwill Intangible Assets and Goodwill - Additional Information (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($)reportingUnit | |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
In-process research and development | $ 17,628,000 | $ 17,628,000 |
Number of reporting units | reportingUnit | 1 | |
Goodwill impairment loss | 0 | |
IPR&D | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
In-process research and development | 17,628,000 | $ 17,628,000 |
Impairment of intangible assets | $ 0 |
Liabilities - Schedule of Accou
Liabilities - Schedule of Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 5,046 | $ 6,244 |
Accrued research and development expenses | 36,768 | 25,962 |
Employee compensation and vacation accruals | 10,320 | 9,439 |
Accrued legal and professional fees | 1,665 | 859 |
Other | 2,269 | 1,151 |
Total | $ 56,068 | $ 43,655 |
Liabilities - Schedule of Other
Liabilities - Schedule of Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Liability for contingent consideration (note 12) | $ 1,316 | $ 1,285 |
Liability from in-licensing agreement | 1,150 | 1,450 |
Finance lease liability (note 11) | $ 105 | $ 122 |
Finance lease, liability, statement of financial position | Total | Total |
Total | $ 2,571 | $ 2,857 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands, $ in Thousands | Jan. 27, 2020USD ($)$ / sharesshares | Jun. 24, 2019$ / sharesshares | Jun. 07, 2018shares | Jul. 14, 2006 | Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)shares | Sep. 30, 2021CAD ($)shares | Sep. 30, 2020USD ($) | Dec. 31, 2028 | Dec. 31, 2020USD ($)shares | Mar. 31, 2018shares |
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||
Shares issue price (in dollars per share) | $ / shares | $ 46.50 | |||||||||||
Underwriting discounts, commissions and offering expenses | $ | $ 19,940 | |||||||||||
Preferred stock, shares issued | 0 | 0 | 0 | |||||||||
Preferred stock, shares outstanding | 0 | 0 | 0 | |||||||||
Shares granted with respect to maximum fixed amount equal, percentage | 20.00% | 20.00% | ||||||||||
Options granted under original plan exercisable period | 10 years | 10 years | ||||||||||
Maximum number of common shares reserved for issuance | 5,686,097 | |||||||||||
Shares issuable upon exercise of stock options | 3,686,097 | |||||||||||
Number of shares available for grant | 1,152,206 | 1,152,206 | 1,242,038 | |||||||||
Proceeds from stock options exercised | $ | $ 5,436 | $ 4,393 | ||||||||||
Unamortized compensation expense related to unvested options | $ 42,109 | $ 53,591 | ||||||||||
Remaining unamortized compensation expense, weighted-average period | 1 year 11 months 4 days | 1 year 11 months 4 days | ||||||||||
Total amount contributed by ESPP participants | $ | $ 615 | $ 615 | $ 926 | |||||||||
Maximum | ||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||
Award maximum term | 10 years | 10 years | ||||||||||
Restricted Share Units (RSUs) | ||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||
Shares available for issuance vesting period | 3 years | 3 years | ||||||||||
Granted (in shares) | 128,905 | 128,905 | ||||||||||
Nonvested award, cost not yet recognized, amount | $ | 3,517 | $ 3,517 | ||||||||||
Nonvested award, cost not yet recognized, period for recognition | 1 year 6 months 18 days | 1 year 6 months 18 days | ||||||||||
Compensation charge | $ | $ 856 | $ 436 | $ 2,180 | 939 | ||||||||
Employees Stock Purchase Plan | ||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||
Compensation charge | $ | $ 767 | $ 559 | ||||||||||
Maximum eligible employees contribution under ESPP | 15.00% | 15.00% | ||||||||||
Purchase of shares under ESPP, maximum limit for each employee | $ | $ 25 | |||||||||||
Forecast | ||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||
Maximum number of common shares reserved for issuance increase in percentage | 4.00% | |||||||||||
Offering | ||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||
Number of shares issued | 5,824,729 | |||||||||||
Pre funded warrants issued in lieu of common shares to underwriters | 1,075,271 | 4,166,690 | ||||||||||
Warrants issued price (in dollars per share) | $ / shares | $ 46.4999 | $ 17.9999 | ||||||||||
Net proceeds from issuance | $ | $ 300,910 | |||||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||
Over-Allotment Option | ||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||
Number of shares issued to underwriters | 900,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of RSUs Outstanding (Details) - Restricted Share Units (RSUs) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding, at beginning of period (in shares) | shares | 82,704 |
Granted (in shares) | shares | 128,905 |
Vested and settled (in shares) | shares | (27,563) |
Forfeited (in shares) | shares | (13,125) |
Outstanding, at end of period (in shares) | shares | 170,921 |
Weighted- average grant date fair value ($) | |
Outstanding, at beginning of period (in dollars per shares) | $ / shares | $ 35.19 |
Granted (in dollars per share) | $ / shares | 36.57 |
Vested and settled (in dollars per share) | $ / shares | 35.19 |
Forfeited (in dollars per share) | $ / shares | 34.96 |
Outstanding, at end of period (in dollars per shares) | $ / shares | $ 36.25 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Stock Options Granted (Detail) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021CAD ($)$ / sharesshares | Sep. 30, 2021CAD ($)$ / sharesshares | Dec. 31, 2020CAD ($)$ / sharesshares | Dec. 31, 2020CAD ($)$ / sharesshares | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Canadian Dollar Under the New Option Stock Plan | ||||||
Number of Options | ||||||
Beginning balance (in shares) | 2,285,569 | 2,285,569 | ||||
Granted (in shares) | 466,117 | 466,117 | ||||
Exercised (in shares) | (176,260) | (176,260) | ||||
Forfeited (in shares) | (47,845) | (47,845) | ||||
Ending balance (in shares) | 2,527,581 | 2,527,581 | 2,285,569 | 2,285,569 | ||
Weighted Average Exercise Price | ||||||
Beginning balance (in dollars per share) | (per share) | $ 22 | $ 17.27 | ||||
Granted (in dollars per share) | (per share) | 43.20 | 34.41 | ||||
Exercised (in dollars per share) | (per share) | 14.23 | 11.23 | ||||
Forfeited (in dollars per share) | (per share) | 40.38 | 32.31 | ||||
Ending balance (in dollars per share) | (per share) | $ 26.10 | $ 20.58 | $ 22 | $ 17.27 | ||
Weighted- Average Contractual Term (years) | 6 years 5 months 23 days | 6 years 5 months 23 days | 6 years 5 months 15 days | 6 years 5 months 15 days | ||
Aggregate intrinsic value Outstanding | $ 21,268 | $ 21,268 | $ 87,545 | $ 87,545 | $ 16,712 | $ 68,664 |
U.S Dollar Under the New Option Stock Plan | ||||||
Number of Options | ||||||
Beginning balance (in shares) | 3,790,326 | 3,790,326 | ||||
Granted (in shares) | 1,506,778 | 1,506,778 | ||||
Exercised (in shares) | (245,484) | (245,484) | ||||
Forfeited (in shares) | (109,583) | (109,583) | ||||
Ending balance (in shares) | 4,942,037 | 4,942,037 | 3,790,326 | 3,790,326 | ||
Weighted Average Exercise Price | ||||||
Beginning balance (in dollars per share) | $ / shares | $ 22.85 | |||||
Granted (in dollars per share) | $ / shares | 35.36 | |||||
Exercised (in dollars per share) | $ / shares | 14.11 | |||||
Forfeited (in dollars per share) | $ / shares | 33.18 | |||||
Ending balance (in dollars per share) | $ / shares | $ 26.87 | $ 22.85 | ||||
Weighted- Average Contractual Term (years) | 8 years 1 month 2 days | 8 years 1 month 2 days | 8 years 2 months 12 days | 8 years 2 months 12 days | ||
Aggregate intrinsic value Outstanding | $ | $ 30,405 | $ 92,705 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Stock-based Compensation Expense for Equity Classified Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Research and development expenses | $ 49,893 | $ 54,401 | $ 144,887 | $ 131,128 |
Research and development expense: | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation for equity classified instruments | 5,562 | 3,389 | 15,688 | 8,680 |
Change in fair value of liability classified instruments | (916) | 2,379 | (3,185) | 479 |
Research and development expenses | 4,646 | 5,768 | 12,503 | 9,159 |
General and administrative expense: | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation for equity classified instruments | 4,773 | 4,311 | 14,260 | 10,703 |
Change in fair value of liability classified instruments | (3,600) | 8,195 | (15,006) | 2,395 |
General and administrative expense (income) | 1,173 | 12,506 | (746) | 13,098 |
Finance expense (income): | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Change in fair value of liability classified instruments | (22) | 49 | (80) | 13 |
Finance expenses | $ (22) | $ 49 | $ (80) | $ 13 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Estimated Fair Value of Stock Options Assumptions (Detail) - shares | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Canadian Dollar Under the New Option Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | |
Expected volatility | 80.80% | 76.20% | |
Risk-free interest rate | 1.01% | 0.61% | |
Expected average life of options | 6 years 25 days | 6 years 25 days | |
Number of liability classified stock options outstanding (in shares) | 2,527,581 | 2,285,569 | |
U.S Dollar Under the New Option Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | |
Expected volatility | 80.70% | 76.60% | |
Risk-free interest rate | 0.97% | 0.69% | |
Expected average life of options | 6 years 14 days | 6 years 7 days | |
Number of liability classified stock options outstanding (in shares) | 4,942,037 | 3,790,326 | |
Liability Classified Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | |
Expected volatility | 73.40% | 85.40% | |
Risk-free interest rate | 0.62% | 0.27% | |
Expected average life of options | 2 years 4 months 17 days | 2 years 11 months 12 days | |
Number of liability classified stock options outstanding (in shares) | 911,400 | 1,158,677 |
Research, Collaboration and L_3
Research, Collaboration and Licensing Agreements - Schedule Of Collaborative Arrangements and Noncollaborative Arrangement Transactions (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Revenue | $ 4,395 | $ 2,643 | $ 6,810 | $ 23,271 | |||
Janssen | Milestone revenue | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Revenue | $ 4,000 | 4,000 | 0 | 4,000 | 0 | ||
Bristol-Myers Squibb | Upfront fee relating to amendment | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Revenue | $ 12,000 | 0 | 0 | 0 | 12,000 | ||
Bei Gene | Milestone revenue | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Revenue | $ 5,000 | 0 | 0 | 0 | 5,000 | ||
Other | Research support and other payments | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Revenue | $ 395 | $ 2,643 | $ 2,810 | $ 6,271 |
Research, Collaboration and L_4
Research, Collaboration and Licensing Agreements - Additional Information - Strategic Partnership Revenue (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Revenue | $ 4,395,000 | $ 2,643,000 | $ 6,810,000 | $ 23,271,000 | ||||
Contract assets | 0 | 0 | $ 0 | |||||
Performance obligation recognized | 0 | 0 | ||||||
Janssen | Milestone revenue | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Revenue | $ 4,000,000 | 4,000,000 | 0 | 4,000,000 | 0 | |||
Bristol-Myers Squibb | Upfront fee relating to amendment | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Revenue | $ 12,000,000 | 0 | 0 | 0 | 12,000,000 | |||
Bei Gene | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Deferred revenue | 32,941,000 | 32,941,000 | $ 32,941,000 | |||||
Bei Gene | Milestone revenue | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Revenue | $ 5,000,000 | $ 0 | $ 0 | $ 0 | $ 5,000,000 |
Other (expense) income, net (De
Other (expense) income, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange gain (loss) | $ 813 | $ (148) | $ 1,185 | $ 2,910 |
Other income (expense), net (note 10) | (4) | (65) | 94 | (38) |
Total other income, net | $ 809 | $ (213) | $ 1,279 | $ 2,872 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)renewalOption | Sep. 30, 2020USD ($) | |
Cash paid for measurement of operating lease liabilities | $ 2,343 | $ 1,871 |
Weighted average remaining lease term | 8 years 7 months 6 days | |
Operating lease expense | $ 4,030 | |
Fixed lease payment | 3,756 | |
Variable lease payment | 274 | |
Future lease payments | $ 3,900 | |
Canada, Dollars | ||
Discount rate | 4.80% | |
United States of America, Dollars | ||
Discount rate | 2.20% | |
BRITISH COLUMBIA | Building | ||
Term of contract | 10 years | |
Number of renewal options | renewalOption | 2 | |
Extension term | 5 years |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheet Classification of Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Current portion | $ 1,323 | $ 2,710 |
Long-term portion | 28,742 | 5,812 |
Total operating lease liabilities | $ 30,065 | $ 8,522 |
Finance lease, liability, statement of financial position | Other current liabilities | Other current liabilities |
Current portion included in other current liabilities | $ 22 | $ 17 |
Long-term portion included in other long-term liabilities | 105 | 122 |
Total finance lease liabilities | 127 | 139 |
Total lease liabilities | $ 30,192 | $ 8,661 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity [Abstract] | ||
Within 1 year | $ 2,482 | |
1 to 2 years | 4,655 | |
2 to 3 years | 4,588 | |
3 to 4 years | 4,699 | |
4 to 5 years | 4,659 | |
Thereafter | 15,415 | |
Total operating lease payments | 36,498 | |
Imputed interest | (6,433) | |
Operating lease liabilities | $ 30,065 | $ 8,522 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Liabilities | ||
Financial liabilities measured at fair value | $ 1,316 | $ 1,285 |
Liability for Contingent Consideration | ||
Liabilities | ||
Financial liabilities measured at fair value | 1,316 | 1,285 |
Level 3 | ||
Liabilities | ||
Financial liabilities measured at fair value | 1,316 | 1,285 |
Level 3 | Liability for Contingent Consideration | ||
Liabilities | ||
Financial liabilities measured at fair value | $ 1,316 | $ 1,285 |
Financial Instruments - Summary
Financial Instruments - Summary of Changes in Fair Value of the Company's Liability for Contingent Consideration (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Contingent Consideration Liability [Roll Forward] | |||
Liability at the beginning of the period | $ 1,316 | $ 1,285 | |
Change in fair value of contingent consideration liability | 0 | 31 | $ 68 |
Liability at end of the period | $ 1,316 | $ 1,316 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) $ in Thousands | Sep. 30, 2021USD ($) | Sep. 30, 2021CAD ($) | Dec. 31, 2020USD ($) |
Fair Value Disclosures [Abstract] | |||
Accounts receivable | $ 4,927,000 | $ 15,293,000 | |
Accounts receivable, after allowance for credit loss, lease incentive, current, total | 2,871,000 | 0 | |
Provision for expected credit losses in relation to accounts receivable | 0 | $ 0 | |
Net monetary assets | $ 8,569,000 | $ 10,908 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities measured at fair value | $ 1,316 | $ 1,285 |
Liability for Contingent Consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities measured at fair value | $ 1,316 | $ 1,285 |