Eledon Pharmaceuticals (ELDN) 10-Q 12 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	TKAI
Entity Registrant Name	TOKAI PHARMACEUTICALS INC
Entity Central Index Key	1,404,281
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		22,547,660

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 59,084,000	$ 105,256,000
Marketable securities	24,110,000	0
Prepaid expenses and other current assets	3,562,000	2,255,000
Total current assets	86,756,000	107,511,000
Property and equipment, net	339,000	33,000
Restricted cash	270,000	200,000
Other assets	45,000
Total assets	87,410,000	107,744,000
Current liabilities:
Accounts payable	1,704,000	765,000
Accrued expenses	2,943,000	3,478,000
Total current liabilities	4,647,000	4,243,000
Other long term liabilities	13,000
Total liabilities	$ 4,660,000	$ 4,243,000
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding
Common stock, $0.001 par value; 200,000,000 shares authorized; 22,486,944 and 22,382,340 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively	$ 22,000	$ 22,000
Additional paid-in capital	191,298,000	189,830,000
Accumulated other comprehensive loss	(2,000)
Accumulated deficit	(108,568,000)	(86,351,000)
Total stockholders' equity	82,750,000	103,501,000
Total liabilities and stockholders' equity	$ 87,410,000	$ 107,744,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 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	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	22,486,944	22,382,340
Common stock, shares outstanding	22,486,944	22,382,340

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Revenue	$ 0	$ 0	$ 0	$ 0
Operating expenses:
Research and development	5,855	4,392	16,414	7,948
General and administrative	3,127	1,493	5,868	2,829
Total operating expenses	8,982	5,885	22,282	10,777
Loss from operations	(8,982)	(5,885)	(22,282)	(10,777)
Interest and other income	25	34	65	79
Net loss	$ (8,957)	$ (5,851)	$ (22,217)	$ (10,698)
Net loss per share, basic and diluted	$ (0.40)	$ (11.68)	$ (0.99)	$ (21.48)
Weighted average common shares outstanding, basic and diluted	22,421,622	501,133	22,403,031	498,107
Comprehensive loss:
Net loss	$ (8,957)	$ (5,851)	$ (22,217)	$ (10,698)
Other comprehensive loss:
Unrealized loss on marketable securities	(2)		(2)
Total other comprehensive loss	(2)		(2)
Total comprehensive loss	$ (8,959)	$ (5,851)	$ (22,219)	$ (10,698)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (22,217)	$ (10,698)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	1,240	340
Depreciation expense	21	11
Release of reserve for loan to former advisor	(49)	(79)
Premium on purchase of marketable securities	(35)
Amortization of premium on marketable securities	1
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(1,307)	(164)
Accounts payable	905	507
Accrued expenses	(636)	(43)
Other assets	(45)	(71)
Other long-term liabilities	13
Net cash used in operating activities	(22,109)	(10,197)
Cash flows from investing activities:
Purchases of marketable securities	(24,078)
Purchases of property and equipment	(192)	(18)
Change in restricted cash	(70)
Net cash used in investing activities	(24,340)	(18)
Cash flows from financing activities:
Repayment of notes receivable	49	79
Proceeds from exercise of common stock options	228	12
Payments of initial public offering costs		(479)
Net cash provided by (used in) financing activities	277	(388)
Net decrease in cash and cash equivalents	(46,172)	(10,603)
Cash and cash equivalents at beginning of period	105,256	31,753
Cash and cash equivalents at end of period	59,084	21,150
Supplemental disclosure of non-cash investing and financing activities:
Deferred offering costs included in accounts payable and accrued expenses		$ 1,015
Purchases of property and equipment included in accounts payable and accrued expenses	$ 135

Nature of the Business and Basi

Nature of the Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Nature of the Business and Basis of Presentation	1. Nature of the Business and Basis of Presentation Tokai Pharmaceuticals, Inc. (the “Company”) was incorporated on March 26, 2004 under the laws of the State of Delaware. The Company is a biopharmaceutical company focused on developing and commercializing proprietary therapies for the treatment of prostate cancer and other hormonally-driven diseases. The Company’s lead drug candidate, galeterone, is a highly selective, multi-targeted, oral small molecule drug candidate. Since its inception, the Company has devoted substantially all of its efforts to research and development, recruiting management, in-licensing technology and raising capital. 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. Galeterone, which is currently under development, and any product candidates that the Company may seek to develop in the future will require significant additional research and development efforts, including extensive preclinical 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. 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 products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. Even if the Company’s drug 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. On September 22, 2014, the Company completed an initial public offering (“IPO”) of its common stock, and issued and sold 6,480,000 shares of common stock at a price to the public of $15.00 per share, resulting in net proceeds of $87,062 after deducting underwriting discounts and commissions and offering expenses. Upon the closing of the IPO, all outstanding shares of the Company’s redeemable convertible preferred stock automatically converted into 14,860,173 shares of the Company’s common stock. On October 9, 2014, the Company issued and sold an additional 540,000 shares of its common stock at the public offering price of $15.00 per share as a result of the partial exercise by the underwriters of their option to purchase additional shares of common stock, resulting in additional net proceeds to the Company of $7,533 after deducting underwriting discounts and commissions. The Company’s consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities in the ordinary course of business. The Company has incurred losses and negative cash flows from operations since inception. As of June 30, 2015, the Company had an accumulated deficit of $108,568. The Company believes its cash and investments balance of $83,194 as of June 30, 2015 will be sufficient to fund its anticipated level of operations for at least the next 12 months. The Company’s ability to generate product revenue and operating cash flow will depend heavily on the successful development and eventual commercialization of galeterone and other product candidates that it may develop in the future. If the Company is unable to generate positive cash flows from operations, it may have to seek other sources of capital. The accompanying consolidated financial statements and footnotes include Diotima Pharmaceuticals, Inc. (“Diotima”), a variable interest entity in which the Company had a variable financial interest and was the primary beneficiary but had no ownership interest. In 2010, the Company formed and incorporated Diotima. Diotima operated as a stand-alone company with limited activity through April 2014. In early 2014, the license agreements relating to the Diotima compounds were terminated. Additionally, in April 2014, the board of directors and stockholders of Diotima approved the dissolution of Diotima, and Diotima was dissolved. All significant intercompany balances and transactions between the Company and Diotima have been eliminated in consolidation. Expenses incurred by Diotima for the six months ended June 30, 2014 were $8. The consolidated balance sheet at December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“GAAP”). The accompanying unaudited consolidated financial statements as of June 30, 2015 and for the three and six months ended June 30, 2015 and 2014 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. The Company believes, however, that the disclosures are adequate to make the information presented not misleading. These 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, 2014 included in the Company’s Annual Report on Form 10-K that was filed with the SEC on March 26, 2015.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
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, assumptions and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of expenses during the reporting periods. Significant estimates, assumptions and judgments reflected in these 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 The Company’s marketable securities are classified as available-for-sale and are carried at fair value with the unrealized gains and losses 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 interest and other income (expense) based on the specific identification method. The Company has classified its marketable securities with maturities beyond one year as short-term, based on their highly liquid nature and because such marketable securities are available for current operations. At June 30, 2015, marketable securities by security type consisted of: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Certificates of Deposit (due within one year) $ 1,960 $ — $ — $ 1,960 Certificates of Deposit (due after one year through two years) 5,876 — — 5,876 United States Treasury Notes (due after one year through two years) 16,276 1 (3 ) 16,274 Total $ 24,112 $ 1 $ (3 ) $ 24,110 The Company did not have marketable securities at December 31, 2014. Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The following tables present the Company’s fair value hierarchy for its cash equivalents and marketable securities, which are measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014: Fair Value Measurements at June 30, 2015 Using Level 1 Level 2 Level 3 Total Financial Assets: Money Market Instruments $ — $ 54,202 $ — $ 54,202 Certificates of Deposit — 7,836 — 7,836 United States Treasury Notes — 16,274 — 16,274 Total $ — $ 78,312 $ — $ 78,312 Fair Value Measurements at December 31, 2014 Using Level 1 Level 2 Level 3 Total Financial Assets: Money Market Instruments $ — $ 91,316 $ — $ 91,316 Total $ — $ 91,316 $ — $ 91,316 The carrying values of accounts payable and accrued expenses approximate their fair value due to the short-term nature of these liabilities. Net Income (Loss) Per Share In September 2014, upon the closing of the IPO, all of the outstanding shares of the Company’s redeemable convertible preferred stock automatically converted into 14,860,173 shares of the Company’s common stock. Prior to this conversion, the Company followed the two-class method when computing net income (loss) per share as the Company had issued shares that met the definition of participating securities. The two-class method determines net income (loss) per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company’s redeemable convertible preferred stock contractually entitled the holders of such shares to participate in dividends, but did not contractually require the holders of such shares to participate in losses of the Company. Accordingly, the two-class method did not apply for periods in which the Company reported a net loss or a net loss attributable to common stockholders resulting from dividends or accretion related to its redeemable convertible preferred stock. Basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share attributable to common stockholders is computed by dividing the diluted net income (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 anti-dilutive. The Company reported a net loss attributable to common stockholders for the three and six months ended June 30, 2015 and 2014. The following common stock equivalents outstanding as of June 30, 2015 and 2014 were excluded from the computation of diluted net loss per share for the three and six months ended June 30, 2015 and 2014 because they had an anti-dilutive impact: June 30, 2015 2014 Stock options to purchase common stock 2,302,181 1,634,275 Restricted common stock units 47,779 — Redeemable convertible preferred stock (as converted to common stock) — 14,860,171 Total options, restricted stock units and redeemable convertible preferred stock exercisable or convertible into common stock 2,349,960 16,494,446 Recently Issued Accounting Pronouncements In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-15, Presentation of Financial Statements — Going Concern Subtopic 205-40).

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2015
Payables and Accruals [Abstract]
Accrued Expenses	3. Accrued Expenses Accrued expenses consisted of the following: June 30, 2015 December 31, 2014 Accrued research and development expenses $ 1,605 $ 1,853 Accrued payroll and related expenses 622 963 Accrued professional fees 572 497 Accrued other 144 165 $ 2,943 $ 3,478

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	4. Income Taxes The Company did not provide for any income taxes in the six months ended June 30, 2015 or 2014. The Company had gross deferred tax assets of $33,272 at December 31, 2014 which increased by approximately $8,000 at June 30, 2015. The Company has provided a valuation allowance for the full amount of its net deferred tax assets because, at June 30, 2015 and December 31, 2014, it was more likely than not that any future benefit from deductible temporary differences and net operating loss and tax credit carryforwards would not be realized. The Company has not recorded any amounts for unrecognized tax benefits as of June 30, 2015 or December 31, 2014. As of June 30, 2015 and December 31, 2014, the Company had no accrued interest or tax penalties recorded. The Company’s income tax return reporting periods since December 31, 2011 are open to income tax audit examination by the federal and state tax authorities. In addition, because the Company has net operating loss carryforwards, the Internal Revenue Service is permitted to audit earlier years and propose adjustments up to the amount of net operating losses generated in those years.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	5. Stock-Based Compensation The Company grants stock-based awards under its 2014 Stock Incentive Plan and is authorized to issue common stock under its 2014 Employee Stock Purchase Plan. The Company also has outstanding stock options under its 2007 Stock Incentive Plan but is no longer granting awards under this plan. As of June 30, 2015, 1,818,358 shares of common stock were available for issuance under the 2014 Stock Incentive Plan. As of June 30, 2015, 225,000 shares of common stock were available for issuance to participating employees under the 2014 Employee Stock Purchase Plan. The Company recorded stock-based compensation expense related to stock options and restricted common stock units in the following expense categories of its statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Research and development $ 140 $ 107 $ 308 $ 136 General and administrative 466 143 932 204 $ 606 $ 250 $ 1,240 $ 340

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies Leases In February 2015, the Company entered into a sublease with a Massachusetts limited liability company (the “sublandlord”) for 15,981 square feet of office space in Boston, Massachusetts. The sublease is subject and subordinate to a prime lease, dated October 5, 2010, between the sublandlord and the prime landlord. The term of the sublease commenced on April 1, 2015 and expires on December 31, 2016. If the term of the prime lease is terminated for any reason prior to the expiration or earlier termination of the sublease, the sublease will terminate immediately and the Company will have no recourse against the sublandlord for such termination. The Company is obligated to make monthly payments under the sublease totaling $408 and $555 for the years ending December 31, 2015 and 2016, respectively, aggregating $963 in total minimum lease payments. In June 2015, the Company entered into a lease for the existing space with the prime landlord (the “landlord”) which effectively extends the term of the lease of the existing space until July 2018. The Company is obligated to make monthly payments under the new lease totaling $839 and $489 for the years ending December 31, 2017 and 2018, respectively, aggregating $1,328 in total minimum lease payments. Total minimum lease payments under both of these operating leases aggregate $2,291 over their full term. Payment escalations specified in the lease agreements are accrued such that rent expense per square foot is recognized on a straight-line basis over the terms of occupancy. Prior to April 2015, the Company leased office space in Cambridge, Massachusetts, and obtained certain office-related services on a month-to-month basis under a 30-day cancelable operating service agreement. The Company recorded exit costs of $133 included in rent expense in the six months ended June 30, 2015 in connection with the termination of the Cambridge lease. During the three months ended June 30, 2015 and 2014, the Company recognized $181 and $103, respectively, of rental expense related to office space. During the six months ended June 30, 2015 and 2014, the Company recognized $487 and $209, respectively, of rental expense related to office space. Restricted Cash and Letters of Credit As of June 30, 2015 and December 31, 2014, the Company held a money market account to collateralize a credit card account with its bank of $200, which was classified as restricted cash. In addition, at June 30, 2015, the Company maintained a letter of credit totaling $70 for the benefit of the landlord of the new lease. The landlord can draw against the letter of credit in the event of default by the Company. The Company was required to maintain a money market account of at least $70 as of June 30, 2015 to secure the letter of credit. This amount was also classified as restricted cash in the balance sheet at June 30, 2015. Intellectual Property Licenses The Company has a master license agreement with the University of Maryland, Baltimore (“UMB”). Pursuant to the license agreement, UMB granted an exclusive, worldwide license, with the right to sublicense, under certain patents and patent applications to make, have made, use, sell, offer to sell and import certain anti-androgen steroids, including galeterone, for the prevention, diagnosis, treatment or control of any human or animal disease. In addition, UMB granted the Company a first option to receive an exclusive license to UMB’s rights in certain improvements to the licensed products. The Company has exercised its option and acquired exclusive rights to licensed improvements under three amendments to the license agreement. The Company is obligated to pay UMB an annual maintenance fee of $10 each year until the first commercial sale of a product developed using the licensed technology. The Company is also obligated to make an additional $50 milestone payment to UMB for each additional investigational new drug application filed for a licensed product and a $100 milestone payment upon the approval by the U.S. Food and Drug Administration of each new drug application (“NDA”) for a licensed product. Because none of these milestones has been achieved as of June 30, 2015, no liabilities for such milestone payments have been recorded in the Company’s consolidated financial statements. The Company must also pay UMB a low-single digit percentage royalty on aggregate worldwide net sales of licensed products, including sales by sublicensees, on a licensed product-by-licensed product and country-by-country basis until the later of the expiration of the last-to-expire applicable licensed patent or ten years after first commercial sale of the applicable licensed product, in each case in the applicable country. The royalty obligations are subject to specified reductions in the event that additional licenses need to be obtained from third parties or in the event of specified competition from third-party products licensed by UMB. Minimum annual royalty payments to UMB are $50 beginning in the year following the year in which the first commercial sale occurs. The Company must also pay UMB 10% of all non-royalty sublicense income received from sublicensees. Finally, the Company is responsible for all patent expenses related to the prosecution and maintenance of the licensed patents. As of June 30, 2015, the Company has not yet developed a commercial product using the licensed technologies, nor has it entered into any sublicense agreements for the technologies. In January 2015, the Company entered into an exclusive license agreement with The Johns Hopkins University (“Johns Hopkins”) pursuant to which Johns Hopkins granted the Company an exclusive, worldwide license under certain patent applications and a non-exclusive license under certain know-how, in each case with the right to sublicense, to make, have made, use, sell, offer to sell and import certain assays to identify androgen receptor variants for use as a companion diagnostic with galeterone. In addition, Johns Hopkins granted the Company an option to negotiate an exclusive license to Johns Hopkins’s rights in certain improvements to the licensed intellectual property. Under the terms of the license agreement, the Company is obligated to diligently develop, manufacture and sell licensed products. The Company is also obligated to use commercially reasonable efforts to achieve specified milestone events by specified dates. Unless the license agreement with Johns Hopkins is terminated earlier as provided below, the license from Johns Hopkins expires on a country-by-country basis as of the later of the expiration date of the last to expire of the claims of the patent rights licensed under the agreement in such country or ten years after the first commercial sale of a licensed product in such country. Johns Hopkins may terminate the agreement if the Company fails to achieve such milestone events and does not cure such failure within a specified termination notice period. Johns Hopkins may also terminate the agreement upon a material breach by the Company under the agreement if the Company does not cure such breach within a specified notice period or upon the Company’s bankruptcy or insolvency. The Company may terminate the agreement at any time upon 90 days’ notice. In consideration for the rights granted to the Company under the license agreement, the Company made an upfront payment to Johns Hopkins of $75 following the execution of the license agreement, which was recognized as research and development expense during the six months ended June 30, 2015. The Company is obligated to pay Johns Hopkins an annual minimum royalty of up to $30 and to make milestone payments to Johns Hopkins upon the achievement of specified technical and commercial milestones. If all such milestones were achieved, the total milestone payments owed to Johns Hopkins would equal $700 in the aggregate. During the six months ended June 30, 2015, the Company expensed $25 related to the achievement of one of these milestones. The Company has not achieved any other milestones and therefore no additional liabilities for such milestone payments have been recorded in the Company’s consolidated financial statements. The Company must also pay Johns Hopkins single digit percentage royalties on aggregate worldwide net sales of licensed products (and not galeterone), including sales by sublicensees, on a licensed product-by-licensed product and country-by-country basis until the later of the expiration of the last-to-expire applicable licensed patent or ten years after first commercial sale of the applicable licensed product, in each case in the applicable country. These royalty obligations are subject to specified reductions in the event that additional licenses from third parties are required. The Company must also pay Johns Hopkins 20% of all non-royalty sublicense income received from sublicensees and reimburse Johns Hopkins for patent costs. As of June 30, 2015, 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. Companion Diagnostic Development Agreement In March 2015, the Company entered into a project work plan with Qiagen Manchester Limited (“Qiagen”) under a Master Collaboration Agreement, dated January 12, 2015, between the Company and Qiagen (together with the project work plan, the “CDx Agreement”). Pursuant to the CDx Agreement, Qiagen has agreed to develop and commercialize an in vitro Under the CDx Agreement, Qiagen is responsible for developing, and obtaining and maintaining regulatory approvals for the in vitro in vitro in vitro in vitro in vitro in vitro in vitro in vitro Subject to the terms of the CDx Agreement, the Company paid Qiagen a fee for the exclusive right to have the circulating tumor cell enrichment technology used in the development of the in vitro in vitro in vitro The CDx Agreement expires on the later to occur of (i) the fifth anniversary of regulatory approval of the in vitro 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 each of its directors and executive officers, which provide, among other things, that the Company will indemnify such directors and executive officers to the fullest extent permitted by law for claims arising in his or her capacity as a director or officer. 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 the indemnification agreements described above. In addition, the Company maintains directors and officers insurance coverage. 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 consolidated financial statements as of June 30, 2015.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	7. Related Party Transactions The Company had an outstanding loan to a former advisor of the Company of $250 that accrued interest at 2.92% per annum that was due in 2007. In 2007, unpaid principal and interest in the amount of $220 was deemed uncollectable by the Company, and as a result, was fully reserved for by the Company. As of December 31, 2013, no payments had been received by the Company, and the unpaid principal and interest balance remained fully reserved. In 2014, the Company started to receive repayment of this note. The Company recorded payments received as other income. As a result, the Company recorded other income of $15 and $34 for the three months ended June 30, 2015 and 2014, respectively, and $49 and $79 for the six months ended June 30, 2015 and 2014, respectively, representing cash collected during those periods. As of June 30, 2015, this loan had been fully repaid.

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of expenses during the reporting periods. Significant estimates, assumptions and judgments reflected in these 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 The Company’s marketable securities are classified as available-for-sale and are carried at fair value with the unrealized gains and losses 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 interest and other income (expense) based on the specific identification method. The Company has classified its marketable securities with maturities beyond one year as short-term, based on their highly liquid nature and because such marketable securities are available for current operations. At June 30, 2015, marketable securities by security type consisted of: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Certificates of Deposit (due within one year) $ 1,960 $ — $ — $ 1,960 Certificates of Deposit (due after one year through two years) 5,876 — — 5,876 United States Treasury Notes (due after one year through two years) 16,276 1 (3 ) 16,274 Total $ 24,112 $ 1 $ (3 ) $ 24,110 The Company did not have marketable securities at December 31, 2014.
Fair Value Measurements	Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The following tables present the Company’s fair value hierarchy for its cash equivalents and marketable securities, which are measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014: Fair Value Measurements at June 30, 2015 Using Level 1 Level 2 Level 3 Total Financial Assets: Money Market Instruments $ — $ 54,202 $ — $ 54,202 Certificates of Deposit — 7,836 — 7,836 United States Treasury Notes — 16,274 — 16,274 Total $ — $ 78,312 $ — $ 78,312 Fair Value Measurements at December 31, 2014 Using Level 1 Level 2 Level 3 Total Financial Assets: Money Market Instruments $ — $ 91,316 $ — $ 91,316 Total $ — $ 91,316 $ — $ 91,316 The carrying values of accounts payable and accrued expenses approximate their fair value due to the short-term nature of these liabilities.
Net Income (Loss) Per Share	Net Income (Loss) Per Share In September 2014, upon the closing of the IPO, all of the outstanding shares of the Company’s redeemable convertible preferred stock automatically converted into 14,860,173 shares of the Company’s common stock. Prior to this conversion, the Company followed the two-class method when computing net income (loss) per share as the Company had issued shares that met the definition of participating securities. The two-class method determines net income (loss) per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company’s redeemable convertible preferred stock contractually entitled the holders of such shares to participate in dividends, but did not contractually require the holders of such shares to participate in losses of the Company. Accordingly, the two-class method did not apply for periods in which the Company reported a net loss or a net loss attributable to common stockholders resulting from dividends or accretion related to its redeemable convertible preferred stock. Basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share attributable to common stockholders is computed by dividing the diluted net income (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 anti-dilutive. The Company reported a net loss attributable to common stockholders for the three and six months ended June 30, 2015 and 2014. The following common stock equivalents outstanding as of June 30, 2015 and 2014 were excluded from the computation of diluted net loss per share for the three and six months ended June 30, 2015 and 2014 because they had an anti-dilutive impact: June 30, 2015 2014 Stock options to purchase common stock 2,302,181 1,634,275 Restricted common stock units 47,779 — Redeemable convertible preferred stock (as converted to common stock) — 14,860,171 Total options, restricted stock units and redeemable convertible preferred stock exercisable or convertible into common stock 2,349,960 16,494,446
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-15, Presentation of Financial Statements — Going Concern Subtopic 205-40).

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Schedule of Marketable Securities by Security Type	At June 30, 2015, marketable securities by security type consisted of: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Certificates of Deposit (due within one year) $ 1,960 $ — $ — $ 1,960 Certificates of Deposit (due after one year through two years) 5,876 — — 5,876 United States Treasury Notes (due after one year through two years) 16,276 1 (3 ) 16,274 Total $ 24,112 $ 1 $ (3 ) $ 24,110
Schedule of Fair Value Measured on Recurring Basis	The following tables present the Company’s fair value hierarchy for its cash equivalents and marketable securities, which are measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014: Fair Value Measurements at June 30, 2015 Using Level 1 Level 2 Level 3 Total Financial Assets: Money Market Instruments $ — $ 54,202 $ — $ 54,202 Certificates of Deposit — 7,836 — 7,836 United States Treasury Notes — 16,274 — 16,274 Total $ — $ 78,312 $ — $ 78,312 Fair Value Measurements at December 31, 2014 Using Level 1 Level 2 Level 3 Total Financial Assets: Money Market Instruments $ — $ 91,316 $ — $ 91,316 Total $ — $ 91,316 $ — $ 91,316
Schedule of Common Stock Equivalents, Excluded from Computation of Diluted Net Loss per Share	The following common stock equivalents outstanding as of June 30, 2015 and 2014 were excluded from the computation of diluted net loss per share for the three and six months ended June 30, 2015 and 2014 because they had an anti-dilutive impact: June 30, 2015 2014 Stock options to purchase common stock 2,302,181 1,634,275 Restricted common stock units 47,779 — Redeemable convertible preferred stock (as converted to common stock) — 14,860,171 Total options, restricted stock units and redeemable convertible preferred stock exercisable or convertible into common stock 2,349,960 16,494,446

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consisted of the following: June 30, 2015 December 31, 2014 Accrued research and development expenses $ 1,605 $ 1,853 Accrued payroll and related expenses 622 963 Accrued professional fees 572 497 Accrued other 144 165 $ 2,943 $ 3,478

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock-Based Compensation Expense Related to Stock Options and Restricted Common Stock	The Company recorded stock-based compensation expense related to stock options and restricted common stock units in the following expense categories of its statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Research and development $ 140 $ 107 $ 308 $ 136 General and administrative 466 143 932 204 $ 606 $ 250 $ 1,240 $ 340

Nature of the Business and Ba17

Nature of the Business and Basis of Presentation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Oct. 09, 2014	Sep. 22, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Number of common shares issued on conversion of redeemable convertible preferred stock		14,860,173
Accumulated deficit			$ (108,568)		$ (86,351)
Cash and investments			$ 83,194
Ownership interest			0.00%
Option to Purchase Additional Shares of Common Stock Granted to the Underwriters in Connection with the IPO [Member]
Common Stock, shares issued and sold	540,000
Common stock, public offering price per share	$ 15
Proceeds from initial public offering, net of underwriting discounts and commissions	$ 7,533
Common Stock [Member] | IPO [Member]
Common Stock, shares issued and sold		6,480,000
Common stock, public offering price per share		$ 15
Proceeds from initial public offering, net of underwriting discounts and commissions		$ 87,062
Diotima Pharmaceuticals Inc [Member]
Expenses incurred by Diotima				$ 8

Summary of Significant Accoun18

Summary of Significant Accounting Policies - Schedule of Marketable Securities by Security Type (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 24,112,000
Gross Unrealized Gains	1,000
Gross Unrealized Losses	(3,000)
Estimated Fair Value	24,110,000	$ 0
Certificates of Deposit Due within One Year [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,960,000
Estimated Fair Value	$ 1,960,000
Marketable securities, maturity period	1 year
Certificates of Deposit Due after One Year through Two Years [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 5,876,000
Estimated Fair Value	$ 5,876,000
Certificates of Deposit Due after One Year through Two Years [Member] | Minimum [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable securities, maturity period	1 year
Certificates of Deposit Due after One Year through Two Years [Member] | Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable securities, maturity period	2 years
United States Treasury Notes Due after One Year through Two Years [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 16,276,000
Gross Unrealized Gains	1,000
Gross Unrealized Losses	(3,000)
Estimated Fair Value	$ 16,274,000
United States Treasury Notes Due after One Year through Two Years [Member] | Minimum [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable securities, maturity period	1 year
United States Treasury Notes Due after One Year through Two Years [Member] | Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Marketable securities, maturity period	2 years

Summary of Significant Accoun19

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	Sep. 22, 2014	Jun. 30, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Marketable securities, fair value		$ 24,110,000	$ 0
Number of common shares issued on conversion of redeemable convertible preferred stock	14,860,173

Summary of Significant Accoun20

Summary of Significant Accounting Policies - Schedule of Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements, financial assets	$ 78,312	$ 91,316
Money Market Instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements, financial assets	54,202	91,316
Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements, financial assets	7,836
United States Treasury Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements, financial assets	16,274
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements, financial assets	78,312	91,316
Level 2 [Member] | Money Market Instruments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements, financial assets	54,202	$ 91,316
Level 2 [Member] | Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements, financial assets	7,836
Level 2 [Member] | United States Treasury Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value measurements, financial assets	$ 16,274

Summary of Significant Accoun21

Summary of Significant Accounting Policies - Schedule of Common Stock Equivalents, Excluded from Computation of Diluted Net Loss per Share (Detail) - shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total options, restricted stock units and redeemable convertible preferred stock exercisable or convertible into common stock	2,349,960	16,494,446
Stock Options to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total options, restricted stock units and redeemable convertible preferred stock exercisable or convertible into common stock	2,302,181	1,634,275
Restricted Common Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total options, restricted stock units and redeemable convertible preferred stock exercisable or convertible into common stock	47,779
Series A, B-1, B-2, C,D-1, D-2, D-3 and E Redeemable Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total options, restricted stock units and redeemable convertible preferred stock exercisable or convertible into common stock		14,860,171

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Accrued research and development expenses	$ 1,605	$ 1,853
Accrued payroll and related expenses	622	963
Accrued professional fees	572	497
Accrued other	144	165
Total	$ 2,943	$ 3,478

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income tax benefits	$ 0	$ 0
Deferred tax assets, gross			$ 33,272,000
Increase in gross deferred tax assets	8,000,000
Accrued interest or tax penalties	0		0
Unrecognized tax benefits	$ 0		$ 0
Income tax earliest examination year	2,011

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail)	Jun. 30, 2015shares
2014 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share of common stock available for issuance	1,818,358
2014 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share of common stock authorized for issuance	225,000

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-Based Compensation Expense Related to Stock Options and Restricted Common Stock (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 606	$ 250	$ 1,240	$ 340
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	140	107	308	136
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 466	$ 143	$ 932	$ 204

Commitments and Contingencies (

Commitments and Contingencies (Leases) - Additional Information (Detail) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2015ft²	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Other Commitments [Line Items]
Future minimum lease payments total		$ 2,291		$ 2,291
Rental expense		181	$ 103	$ 487	$ 209
Sublease [Member]
Other Commitments [Line Items]
Area of office space | ft²	15,981
Subleases expiration date				Dec. 31, 2016
Future minimum lease payments in 2015		408		$ 408
Future minimum lease payments in 2016		555		555
Future minimum lease payments total		963		963
Old Lease [Member]
Other Commitments [Line Items]
Exit cost				$ 133
Operating service agreement period				30 days
Extended Prime Lease [Member]
Other Commitments [Line Items]
Future minimum lease payments total		1,328		$ 1,328
Future minimum lease payments in 2017		839		839
Future minimum lease payments in 2018		$ 489		$ 489
Lease extended expiration date				2018-07

Commitments and Contingencies27

Commitments and Contingencies (Restricted Cash and Letters of Credit) - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Other Commitments [Line Items]
Restricted cash	$ 270	$ 200
Letter of Credit [Member]
Other Commitments [Line Items]
Restricted cash	70
Money Market Instruments [Member]
Other Commitments [Line Items]
Restricted cash	$ 200	$ 200

Commitments and Contingencies28

Commitments and Contingencies (Intellectual Property Licenses) - Additional Information (Detail) - USD ($)	1 Months Ended	6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015
Master License Agreement [Member] | UMB [Member]
Other Commitments [Line Items]
Annual maintenance fee		$ 10,000
Liabilities for milestone payments		$ 0
Percentage of non-royalty sub license income		10.00%
Master License Agreement [Member] | UMB [Member] | Minimum [Member]
Other Commitments [Line Items]
Annual royalty		$ 50,000
License Agreement [Member] | Johns Hopkins [Member]
Other Commitments [Line Items]
Percentage of non-royalty sub license income	20.00%
Period to pay low percentage royalties after first commercial sale of licensed product	10 years
Agreement termination notice period	90 days
Upfront payment	$ 75,000
Potential milestone payments under license agreement	700,000
Milestone payments expensed during period		25,000
Additional liabilities for milestone payments	0
License Agreement [Member] | Johns Hopkins [Member] | Minimum [Member]
Other Commitments [Line Items]
Annual royalty	$ 30,000
IND [Member] | Master License Agreement [Member] | UMB [Member]
Other Commitments [Line Items]
Milestone payment		50,000
NDA [Member] | Master License Agreement [Member] | UMB [Member]
Other Commitments [Line Items]
Milestone payment		$ 100,000

Commitments and Contingencies29

Commitments and Contingencies (Commercial Development Agreement) - Additional Information (Detail) - 6 months ended Jun. 30, 2015 - Master Collaboration Agreement [Member] - Qiagen [Member] - USD ($) $ in Thousands	Total
Other Commitments [Line Items]
Contingent milestone payment	$ 1,000
Agreement termination period by the company	180 days
Agreement termination period by both parties	60 days

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - Former Advisor [Member] - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2013	Dec. 31, 2007
Related Party Transaction [Line Items]
Outstanding loans from related party transaction						$ 250,000
Interest rate						2.92%
Balance due, fully reserved for						$ 220,000
Payments from loans receivable	$ 15,000	$ 34,000	$ 49,000	$ 79,000	$ 0