Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | KURA | ||
Entity Registrant Name | KURA ONCOLOGY, INC. | ||
Entity Central Index Key | 0001422143 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 877.9 | ||
Entity Common Stock, Shares Outstanding | 66,211,215 | ||
Entity File Number | 001-37620 | ||
Entity Tax Identification Number | 61-1547851 | ||
Entity Address, Address Line One | 12730 High Bluff Drive | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92130 | ||
City Area Code | 858 | ||
Local Phone Number | 500-8800 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 325,493 | $ 26,135 |
Short-term investments | 307,827 | 210,756 |
Prepaid expenses and other current assets | 3,972 | 2,712 |
Total current assets | 637,292 | 239,603 |
Property and equipment, net | 2,021 | 44 |
Restricted cash | 210 | |
Operating lease right-of-use assets | 6,334 | 234 |
Other long-term assets | 1,355 | 2,091 |
Total assets | 647,212 | 241,972 |
Current liabilities: | ||
Accounts payable and accrued expenses | 23,024 | 15,314 |
Current portion of long-term debt | 3,000 | 250 |
Total current liabilities | 26,024 | 15,564 |
Long-term debt | 4,250 | 7,250 |
Long-term operating lease liabilities | 5,638 | |
Other long-term liabilities | 395 | 377 |
Total liabilities | 36,307 | 23,191 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 10,000 shares authorized; no shares issued and outstanding | ||
Common stock, $0.0001 par value; 200,000 shares authorized; 66,194 and 45,384 shares issued and outstanding as of December 31, 2020 and 2019, respectively | 7 | 5 |
Additional paid-in capital | 913,354 | 431,322 |
Accumulated other comprehensive income | 46 | 331 |
Accumulated deficit | (302,502) | (212,877) |
Total stockholders' equity | 610,905 | 218,781 |
Total liabilities and stockholders' equity | $ 647,212 | $ 241,972 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 66,194,000 | 45,384,000 |
Common stock, shares outstanding | 66,194,000 | 45,384,000 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Expenses: | |||
Research and development (includes related party amounts of $196, $432 and $1,021 for the years ended December 31, 2020, 2019 and 2018, respectively) | $ 60,397 | $ 47,826 | $ 46,787 |
General and administrative (includes related party amounts of $188, $325 and $273 for the years ended December 31, 2020, 2019 and 2018, respectively) | 31,502 | 19,653 | 16,096 |
Total operating expenses | 91,899 | 67,479 | 62,883 |
Other Income (Expense): | |||
Management fee income, related party | 51 | 245 | 735 |
Interest income, net | 2,801 | 4,674 | 3,169 |
Interest expense | (578) | (580) | (970) |
Loss from extinguishment of debt | (498) | ||
Total other income | 2,274 | 4,339 | 2,436 |
Net Loss | $ (89,625) | $ (63,140) | $ (60,447) |
Net loss per share, basic and diluted | $ (1.69) | $ (1.51) | $ (1.72) |
Weighted average number of shares used in computing net loss per share, basic and diluted | 53,077 | 41,946 | 35,191 |
Comprehensive Loss: | |||
Net loss | $ (89,625) | $ (63,140) | $ (60,447) |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on marketable securities and foreign currency | (285) | 462 | (82) |
Comprehensive loss | $ (89,910) | $ (62,678) | $ (60,529) |
STATEMENTS OF OPERATIONS AND _2
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Research and development, related party | $ 196 | $ 432 | $ 1,021 |
General and administrative, related party | $ 188 | $ 325 | $ 273 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid- In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2017 | $ 79,865 | $ 3 | $ 169,201 | $ (49) | $ (89,290) |
Beginning balance (in shares) at Dec. 31, 2017 | 29,424 | ||||
Issuance of common stock, net of offering costs | 131,901 | $ 1 | 131,900 | ||
Issuance of common stock, net of offering costs, (in shares) | 7,737 | ||||
Share-based compensation expense | 8,654 | 8,654 | |||
Restricted stock awards vested | 2 | 2 | |||
Restricted stock awards vested (in shares) | 793 | ||||
Issuance of common stock from exercise of options and employee stock purchase plan | 1,092 | 1,092 | |||
Issuance of common stock from exercise of options and employee stock purchase plan (in shares) | 194 | ||||
Other comprehensive income (loss) | (82) | (82) | |||
Net loss | (60,447) | (60,447) | |||
Ending balance at Dec. 31, 2018 | 160,985 | $ 4 | 310,849 | (131) | (149,737) |
Ending balance (in shares) at Dec. 31, 2018 | 38,148 | ||||
Issuance of common stock, net of offering costs | 108,129 | $ 1 | 108,128 | ||
Issuance of common stock, net of offering costs, (in shares) | 6,785 | ||||
Share-based compensation expense | 9,409 | 9,409 | |||
Issuance of common stock from exercise of options and employee stock purchase plan | 2,936 | 2,936 | |||
Issuance of common stock from exercise of options and employee stock purchase plan (in shares) | 451 | ||||
Other comprehensive income (loss) | 462 | 462 | |||
Net loss | (63,140) | (63,140) | |||
Ending balance at Dec. 31, 2019 | 218,781 | $ 5 | 431,322 | 331 | (212,877) |
Ending balance (in shares) at Dec. 31, 2019 | 45,384 | ||||
Issuance of common stock, net of offering costs | 458,978 | $ 2 | 458,976 | ||
Issuance of common stock, net of offering costs, (in shares) | 19,792 | ||||
Share-based compensation expense | 12,807 | 12,807 | |||
Issuance of common stock from exercise of options and employee stock purchase plan | 10,249 | 10,249 | |||
Issuance of common stock from exercise of options and employee stock purchase plan (in shares) | 1,018 | ||||
Other comprehensive income (loss) | (285) | (285) | |||
Net loss | (89,625) | (89,625) | |||
Ending balance at Dec. 31, 2020 | $ 610,905 | $ 7 | $ 913,354 | $ 46 | $ (302,502) |
Ending balance (in shares) at Dec. 31, 2020 | 66,194 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities | |||
Net loss | $ (89,625) | $ (63,140) | $ (60,447) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Share-based compensation expense | 12,807 | 9,409 | 8,654 |
Depreciation expense | 194 | 0 | 10 |
Amortization of premium and accretion of discounts on marketable securities, net | 410 | (1,103) | (1,935) |
Non-cash interest expense | 184 | ||
Loss from extinguishment of debt | 498 | ||
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | (711) | (875) | (465) |
Other long-term assets | 1,205 | (117) | (504) |
Accounts payable and accrued expenses | 5,677 | 856 | 5,116 |
Other long-term liabilities | 213 | 210 | 234 |
Net cash used in operating activities | (69,830) | (54,760) | (48,655) |
Investing Activities | |||
Purchases of marketable securities | (320,963) | (227,571) | (237,443) |
Maturities and sales of marketable securities | 223,198 | 181,246 | 158,143 |
Purchases of property and equipment | (2,171) | ||
Net cash used in investing activities | (99,936) | (46,325) | (79,300) |
Financing Activities | |||
Proceeds from issuances of common stock, net | 459,335 | 108,165 | 132,172 |
Proceeds from exercises of stock options and purchases under employee stock purchase plan | 10,249 | 2,936 | 1,092 |
Repayment of long-term debt | (250) | (1,250) | |
Proceeds from issuance of long-term debt, net | 627 | ||
Net cash provided by financing activities | 469,334 | 111,101 | 132,641 |
Net increase in cash, cash equivalents and restricted cash | 299,568 | 10,016 | 4,686 |
Cash, cash equivalents and restricted cash at beginning of period | 26,135 | 16,119 | 11,433 |
Cash, cash equivalents and restricted cash at end of period | 325,703 | 26,135 | 16,119 |
Supplemental disclosure of cash flow information: | |||
Interest paid | $ 419 | $ 430 | $ 641 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business Kura Oncology, Inc., is a clinical-stage biopharmaceutical company committed to realizing the promise of precision medicines for the treatment of cancer. Our pipeline consists of small molecule product candidates that target cancer signaling pathways where there is a strong scientific and clinical rationale to improve outcomes, and we intend to pair them with molecular or cellular diagnostics to identify those patients most likely to respond to treatment. We plan to advance our product candidates through a combination of internal development and strategic partnerships while maintaining significant development and commercial rights. References in these Notes to Financial Statements to “Kura Oncology, Inc.,” “we,” “our” or “us,” refer to Kura Oncology, Inc. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Reclassifications Certain prior period balances have been reclassified to conform to the current period presentation. Use of Estimates Our financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Reported amounts and note disclosures reflect the overall economic conditions that are most likely to occur and anticipated measures management intends to take. Actual results could differ materially from those estimates. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. We operate in a single industry segment which is the discovery and development of precision medicines for the treatment of cancer. Our chief operating decision-maker reviews the operating results on an aggregate basis and manages the operations as a single operating segment in the United States. Cash and Cash Equivalents Cash and cash equivalents consist of checking, money market and highly liquid investments that are readily convertible to cash and that have an original maturity of three months or less from date of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments. Restricted Cash Under the terms of an office lease entered into in March 2020, we are required to maintain a standby letter of credit during the term of the lease. As of December 31, 2020, restricted cash of $0.2 million was pledged as collateral for the letter of credit. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the balance sheets that sum to the total of the amounts shown in the statements of cash flows, in thousands: December 31, 2020 2019 2018 Cash and cash equivalents $ 325,493 $ 26,135 $ 16,119 Restricted cash 210 — — Total $ 325,703 $ 26,135 $ 16,119 Short-Term Investments Short-term investments are marketable securities with maturities greater than three months from date of purchase that are specifically identified to fund current operations. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date, which reflects management’s intention to use the proceeds from sales of these securities to fund our operations, as necessary. The cost of short-term investments is adjusted for amortization of premiums or accretion of discounts to maturity, and such amortization or accretion is included in interest income. Dividend and interest income is recognized as interest income on the statements of operations and comprehensive loss when earned. Short-term investments are classified as available-for-sale securities and carried at fair value with unrealized gains and non-credit related losses recorded in other comprehensive income (loss) and included as a separate component of stockholders' equity. Realized gains and losses from the sale of available-for-sale securities are determined on a specific identification basis and included in interest income, net on the statements of operations and comprehensive loss. Allowance for Credit Losses For available-for-sale debt securities in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through earnings. For available-for-sale debt securities that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the severity of the impairment, any changes in interest rates, changes to the underlying credit ratings and forecasted recovery, among other factors. The credit-related portion of unrealized losses, and any subsequent improvements, are recorded in interest income through an allowance account. Any impairment that has not been recorded through an allowance for credit losses is included in other comprehensive income (loss) on the statements of operations and comprehensive loss. Fair Value Measurements Fair value is defined as the exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; • Level 3 - Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. Concentration of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash, cash equivalents and short-term investments. We maintain deposits in federally insured financial institutions in excess of federally insured limits. We have established guidelines to limit our exposure to credit risk by placing investments with high credit quality financial institutions, diversifying our investment portfolio and placing investments with maturities that maintain safety and liquidity. We periodically review and modify these guidelines to maximize trends in yields and interest rates without compromising safety and liquidity. Property and Equipment Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Computer software and equipment are depreciated over their estimated useful lives of three years. Laboratory equipment is depreciated over its estimated useful life of five years. Furniture and fixtures are depreciated over their estimated useful lives of five years. Leasehold improvements are depreciated over the lesser of the term of the related lease or the useful life of the asset. Impairment of Long-Lived Assets We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived asset, including its eventual residual value, is compared to the carrying value to determine whether impairment exists. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written-down to their estimated fair values. For the years ended December 31, 2020, 2019 and 2018, there were no impairments of the value of long-lived assets. Leases We determine if an arrangement is a lease or contains lease components at inception. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. For operating leases with an initial term greater than 12 months, we recognize operating lease right-of-use, or ROU, assets and operating lease liabilities based on the present value of lease payments over the lease term at commencement date. Operating lease ROU assets are comprised of the lease liability plus any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate when we are reasonably certain that the options will be exercised. For our operating leases, we generally cannot determine the interest rate implicit in the lease, in which case we use our incremental borrowing rate as the discount rate for the lease. We estimate our incremental borrowing rate for our operating leases based on what we would normally pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments. Operating lease expense is recognized on a straight-line basis over the lease term. If a lease is modified, the modified contract is evaluated to determine whether it is or contains a lease. If a lease continues to exist, the lease modification is determined to be a separate contract when the modification grants the lessee an additional ROU that is not included in the original lease and the lease payments increase commensurate with the standalone price for the additional ROU. A lease modification that results in a separate contract will be accounted for in the same manner as a new lease. For a modification that is not a separate contract, we reassess the lease classification using the modified terms and conditions and the facts and circumstances as of the effective date of the modification and recognize the amount of the remeasurement of the lease liability for the modified lease as an adjustment to the corresponding operating lease ROU asset. Research and Development Expenses Research and development expenses consist of costs associated with our research and development activities including salaries, benefits, share-based compensation and other personnel costs, clinical trial costs, manufacturing costs for non-commercial products, fees paid to external service providers and consultants, facilities costs and supplies, equipment and materials used in clinical and preclinical studies and research and development. licensed technology for a particular research and development project that have no alternative future uses, in other research and development projects or otherwise, and therefore no separate economic values are expensed as research and development costs at the time such costs are incurred. As of December 31, 2020 , we ha d no in-licensed technologies that have alternative future uses in research and development projects or otherwise. Clinical Trial Costs and Accruals A significant portion of our clinical trial costs relate to contracts with contract research organizations, or CROs. The financial terms of our CRO contracts may result in payment flows that do not match the periods over which materials or services are provided to us under such contracts. Our objective is to reflect the appropriate clinical trial expenses in our financial statements by matching those expenses with the period in which services and efforts are expended. As part of the process of preparing our financial statements, we rely on cost information provided by our CROs, concerning monthly expenses as well as reimbursement for pass through costs. We are also required to estimate certain of our expenses resulting from our obligations under our CRO contracts. Accordingly, our clinical trial expense accrual is dependent upon the timely and accurate reporting of CROs and other third-party vendors. If the contracted amounts are modified, for instance, as a result of changes in the clinical trial protocol or scope of work to be performed, we modify our accruals accordingly on a prospective basis. Revisions in the scope of a contract are charged to expense in the period in which the facts that give rise to the revision become reasonably certain. Historically, we have had no material changes in clinical trial expense that had a material impact on our results of operations or financial position. Patent Costs We expense all costs as incurred in connection with patent applications, including direct application fees, and the legal and consulting expenses related to making such applications, and such costs are included in general and administrative expenses on the statements of operations and comprehensive loss. Share-Based Payments Our share-based awards are measured at fair value on the date of grant based upon the estimated fair value of common stock. The fair value of awards expected to vest are recognized and amortized on a straight-line basis over the requisite service period of the award less actual forfeitures. The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model, or Black-Scholes model, that requires the use of subjective assumptions including volatility, expected term, risk-free rate and the fair value of the underlying common stock. Subsequent to the adoption of the Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, Improvements to Nonemployee Share-Based Payment Accounting (Topic 718), Income Taxes Income taxes are accounted for using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance against deferred tax assets is recorded if, based upon the weight of all available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. For uncertain tax positions that meet “a more likely than not” threshold, we recognize the benefit of uncertain tax positions in the financial statements. Comprehensive Loss Comprehensive loss is defined as the change in equity during the period from transactions and other events and non-owner sources. For the periods presented, accumulated other comprehensive income (loss) consisted of unrealized gains and losses on marketable securities and foreign currency. Net Loss per Share Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of common shares and common stock equivalents outstanding for the period determined using the treasury-stock method. Common stock equivalents outstanding are comprised of stock options, a warrant and employee stock purchase plan rights and are only included in the calculation of diluted earnings per common share when net income is reported and their effect is dilutive. Because of our net loss f 4,120,000 3,225,000 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements In June 2016, the FASB, issued ASU 2016-13, Financial Instruments−Credit Losses: Measurement of Credit Losses on Financial Instruments, in order to improve financial reporting of expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 requires that an entity measure and recognize expected credit losses for financial assets held at amortized cost and replaces the incurred loss impairment methodology in prior GAAP with a methodology that requires consideration of a broader range of information to estimate credit losses, and establishes additional disclosures related to credit risks. We adopted ASU 2016-13 on January 1, 2020. The |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments All Other Investments [Abstract] | |
Investments | 4. Investments We invest in available-for-sale securities consisting of money market funds, corporate debt securities, commercial paper and U.S. Treasury securities. Available-for-sale securities are classified as either cash and cash equivalents or short-term investments on the balance sheets. The following tables summarize, by major security type, our short-term investments that are measured at fair value on a recurring basis, in thousands: December 31, 2020 Maturities (years) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds 1 or less $ 311,239 $ — $ — $ 311,239 Commercial paper 1 or less 5,998 — — 5,998 Total cash equivalents 317,237 — — 317,237 Short-term investments: Corporate debt securities 2 or less 113,020 36 (36 ) 113,020 Commercial paper 1 or less 106,350 — — 106,350 U.S. Treasury securities 1 or less 88,409 50 (2 ) 88,457 Total short-term investments 307,779 86 (38 ) 307,827 Total $ 625,016 $ 86 $ (38 ) $ 625,064 December 31, 2019 Maturities (years) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds 1 or less $ 18,445 $ — $ — $ 18,445 Short-term investments: Corporate debt securities 2 or less 113,466 182 — 113,648 Commercial paper 1 or less 20,851 — — 20,851 U.S. Treasury securities 2 or less 76,108 149 — 76,257 Total short-term investments 210,425 331 — 210,756 Total $ 228,870 $ 331 $ — $ 229,201 Short-term investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date, which reflects management’s intention to use the proceeds from sales of these securities to fund our operations, as necessary. As of December 31, 2020 and 2019, short-term investments of $242.6 million and $196.1 million, respectively, had maturities less than one year, and short-term investments of $65.2 million and $14.7 million, respectively, had maturities between one to two years. Realized gains and losses were de minimis for the years ended December 31, 2020, 2019 and 2018. As of December 31, 2020, 10 available-for-sale debt securities with a fair market value of $85.2 million were in gross unrealized loss positions, none of which were in such position for greater than 12 months. We do not intend to sell these available-for-sale debt securities, and it is not more likely than not that we will be required to sell these securities prior to recovery of their amortized cost basis. Based on our review of these available-for-sale debt securities, none of the unrealized losses is the result of a credit loss. As such, we have no allowance for credit losses as of December 31, 2020. There were no available-for-sale debt securities in gross unrealized loss positions as of December 31, 2019. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements As of December 31, 2020 and 2019, we had cash equivalents and short-term investments measured at fair value on a recurring basis. Available-for-sale marketable securities consist of U.S. Treasury securities, which are measured at fair value using Level 1 inputs, and corporate debt securities and commercial paper, which are measured at fair value using Level 2 inputs. We determine the fair value of Level 2 related securities with the aid of valuations provided by third parties using proprietary valuation models and analytical tools. These valuation models and analytical tools use market pricing or prices for similar instruments that are both objective and publicly available, including matrix pricing or reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids and/or offers. We validate the fair values of Level 2 financial instruments by comparing these fair values to a third-party pricing source. The following tables summarize, by major security type, our cash equivalents and short-term investments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy, in thousands: December 31, 2020 Total Level 1 Level 2 Cash equivalents: Money market funds $ 311,239 $ 311,239 $ — Commercial paper 5,998 — 5,998 Total cash equivalents 317,237 311,239 5,998 Short-term investments: Corporate debt securities 113,020 — 113,020 Commercial paper 106,350 — 106,350 U.S. Treasury securities 88,457 88,457 — Total short-term investments 307,827 88,457 219,370 Total $ 625,064 $ 399,696 $ 225,368 December 31, 2019 Total Level 1 Level 2 Cash equivalents: Money market funds $ 18,445 $ 18,445 $ — Short-term investments: Corporate debt securities 113,648 — 113,648 Commercial paper 20,851 — 20,851 U.S. Treasury securities 76,257 76,257 — Total short-term investments 210,756 76,257 134,499 Total $ 229,201 $ 94,702 $ 134,499 We believe that our term loan facility bears interest at a rate that approximates prevailing market rates for instruments with similar characteristics and, accordingly, the carrying value of the term loan facility approximates fair value. The fair value of our term loan facility is determined using Level 2 inputs in the fair value hierarchy. See Note 7, Long-Term Debt, for further details of our term loan facility. |
Balance Sheet Detail
Balance Sheet Detail | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Detail | 6. Balance Sheet Detail Property and equipment consisted of the following, in thousands: December 31, 2020 2019 Leasehold improvements $ 1,169 $ — Furniture and fixtures 862 — Computer software and equipment and laboratory equipment 276 136 Property and equipment, gross 2,307 136 Less: accumulated depreciation (286 ) (92 ) Property and equipment, net $ 2,021 $ 44 Depreciation expense was $0.2 million for the year ended December 31, 2020 and de minimis for each of the years ended December 31, 2019 and 2018. Accounts payable and accrued expenses consisted of the following, in thousands: December 31, 2020 2019 Accounts payable $ 2,753 $ 3,526 Accrued clinical trial research and development expenses 4,080 4,139 Accrued other research and development expenses 5,581 2,831 Accrued compensation and benefits 7,016 3,694 Operating lease liability, current portion 2,089 252 Other accrued expenses 1,505 872 Total accounts payable and accrued expenses $ 23,024 $ 15,314 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7. Long-Term Debt In April 2016, we entered into a loan and security agreement with Oxford Finance LLC, or Oxford, and Silicon Valley Bank, or SVB, or the SVB-Oxford Term Loan, which was amended in May 2017 and October 2017, pursuant to which we borrowed $7.5 million As of December 31, 2020, the warrant issued to Oxford to purchase up to 33,988 shares of our common stock at an exercise price of $3.31 per share On November 1, 2018, we entered into a loan and security agreement, or the SVB Loan Agreement, with SVB, or the Lender, providing for up to $20.0 million in a series of term loans. Upon entering into the SVB Loan Agreement, we borrowed $7.5 million, or the Term Loan. We used approximately $6.9 million of the proceeds from the Term Loan to repay all amounts owed under the SVB-Oxford Term Loan SVB-Oxford Term Loan Extinguishment of Liabilities Debt Modifications and Extinguishments Under the terms of the SVB Loan Agreement, we could, at our sole discretion, borrow from the Lender up to an additional $12.5 million by a specified date. The draw period for the additional loan expired without us drawing down the additional loan. The Term Loan is due on the scheduled maturity date of May 1, 2023, or Maturity Date. Repayment of the Term Loan was interest only through November 30, 2020, followed by 30 equal monthly payments of principal plus accrued interest which commenced on December 1, 2020. The per annum interest rate for the outstanding Term Loan is the greater of (i) 5.50% and (ii) the sum of (a) the prime rate reported in The Wall Street Journal plus (b) 0.25%. If we elect to prepay the Term Loan, a prepayment fee equal to 1% of the then principal balance will also be due. We are subject to customary affirmative and restrictive covenants under the SVB Loan Agreement. Our obligations under the SVB Loan Agreement are secured by a first priority security interest in substantially all of our current and future assets, other than our intellectual property. We have also agreed not to encumber our intellectual property assets, except as permitted by the SVB Loan Agreement. The SVB Loan Agreement also contains customary indemnification obligations and customary events of default, including, among other things, our failure to fulfill certain obligations under the SVB Loan Agreement and the occurrence of a material adverse change in our business, operations, or condition (financial or otherwise), a material impairment of the prospect of repayment of any portion of the loan, or a material impairment in the perfection or priority of Lender’s lien in the collateral or in the value of such collateral. In the event of default by us under the SVB Loan Agreement, the Lender would be entitled to exercise their remedies thereunder, including the right to accelerate the debt, upon which we may be required to repay all amounts then outstanding under the SVB Loan Agreement. The conditional exercisable call option related to the event of default is considered to be an embedded derivative which is required to be bifurcated and accounted for as a separate financial instrument. In the periods presented, the value of the embedded derivative is not material, but could become material in future periods if an event of default became more probable than is currently estimated. As of December 31, 2020 and 2019 , we were in compliance with all financial covenants under the SVB Loan Agreement and there ha d been no material adverse change. The following table summarizes future minimum payments under the SVB Loan Agreement as of December 31, 2020, in thousands: Year Ending December 31, 2021 $ 3,328 2022 3,160 2023 1,849 Total future minimum payments 8,337 Less: interest payments (1,087 ) Principal amount of long-term debt 7,250 Current portion of long-term debt (3,000 ) Long-term debt, net $ 4,250 |
License Agreements
License Agreements | 12 Months Ended |
Dec. 31, 2020 | |
License Agreements [Abstract] | |
License Agreements | 8. License Agreements Janssen License Agreement In December 2014, we entered into a license agreement with Janssen Pharmaceutica NV, or Janssen, which was amended in June 2016, under which we received certain intellectual property rights related to tipifarnib in all indications other than In June 2018, Janssen declined to exercise this first right to negotiate. The agreement will terminate upon the last-to-expire patent rights or last-to-expire royalty term, or may be terminated by us with 180 days written notice of termination. Either party may terminate the agreement in the event of material breach of the agreement that is not cured within 45 days. Janssen may also terminate the agreement due to our lack of diligence that is not cured within a three-month period. The University of Michigan License Agreement In December 2014, we entered into a license agreement with the Regents of the University of Michigan, or the University of Michigan, which was amended in March 2015, July 2015, September 2016, February 2017, May 2017 and August 2017, under which we received certain license rights for a non-refundable upfront license, annual maintenance fees and payments upon achievement of certain development and sales-based milestones. The licensed asset consists of several compounds, including our development candidate KO-539. All future development, regulatory and commercial work on the asset will be completed fully and at our sole expense. The University of Michigan retains the right to use the asset for non-commercial research, internal and/or educational purposes, with the right to grant the same limited rights to other non-profit research institutions. The agreement will terminate upon the last-to-expire patent rights, or may be terminated by us at any time with 90 days written notice of termination or terminated by the University of Michigan upon a bankruptcy by us, payment failure by us that is not cured within 30 days or a material breach of the agreement by us that is not cured within 60 days. Future Milestone Payments under License Agreements Collectively, all of our license agreements provide for specified development, regulatory and sales-based milestone payments up to a total of $80.2 million payable upon occurrence of each stated event, of which $0.5 million relates to the initiation of certain development activities, $28.9 million relates to the achievement of specified regulatory approvals for the first indication and up to $50.8 million relates to the achievement of specified levels of product sales. Additional payments will be due for each subsequent indication if specified regulatory approvals are achieved. As of December 31, 2020, we have paid milestone payments totaling $0.1 million under the above-mentioned license agreements. Furthermore, if all the programs are successfully commercialized, we will be required to pay tiered royalties on annual net product sales ranging from the low single digits to the low teens, depending on the volume of sales and the respective agreement. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Operating Leases We adopted ASC 842, Leases a sublease with a related party for office space in San Diego, California Cambridge, Massachusetts that existed before January 1, 2019 operating leases June 2020 In January 2020, we entered into an office lease agreement for our corporate offices in San Diego, California. This agreement was originally scheduled to commence in May 2020 In March 2020, we entered into a lease agreement for office space in Boston, Massachusetts, or the Boston Lease, which commenced on April 1, 2020 and expires on July 31, 2024. The Boston Lease provides for a one-time option to extend the Boston Lease for a period of five additional years after the expiration of the initial lease term. Under the terms of the Boston Lease, monthly base rent is approximately $105,500 for the first year, subject to an annual fixed percentage increase of 2.0% on April 1 st We recorded an operating lease ROU asset and operating lease liability of approximately $5.1 million on our balance sheet on the lease commencement date during the quarter ended June 30, 2020. In May 2020, we entered into a two-year Maturities of our lease liabilities as of December 31, 2020 Year Ending December 31, 2021 $ 2,141 2022 2,098 2023 2,080 2024 1,558 2025 722 Total lease payments 8,599 Less: imputed interest (872 ) Total operating lease liabilities $ 7,727 As of December 31, 2020 As of December 31, 2020, $7.7 As of matured during the year ended December 31, 2020. As of December 31, 2020 and 2019 , the weighted-average discount rate was 5.5% and 6.5 %, respectively, and the weighted-average remaining lease term was 4. 1 years and 0.5 years , respectively. Total cash paid for amounts included in the measurement of operating lease liabilities, net of tenant improvement reimbursements, was $0.3 million and $0.5 million for the years ended December 31, 2020 2019 Total operating lease expense was approximately $1.7 million and $0.5 million for the years ended December 31, 2020 and 2019, respectively. We have entered into short-term operating leases that are not recorded on the balance sheet as of December 31, 2020 Litigation From time to time, we may be involved in disputes, including litigation, relating to claims arising out of operations in the normal course of our business. Any of these claims could subject us to costly legal expenses and, while we generally believe that we have adequate insurance to cover many different types of liabilities, our insurance carriers may deny coverage or our policy limits may be inadequate to fully satisfy any damage awards or settlements. If this were to happen, the payment of any such awards could have a material adverse effect on our results of operations and financial position. Additionally, any such claims, whether or not successful, could damage our reputation and business. We currently are not a party to any legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on our results of operations or financial position. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity In December 2020, we completed a public offering in which we sold an aggregate of 9,326,500 shares of common stock at a price of $37.00 per share. Net proceeds from the public offering, after deducting underwriting discounts, commissions and offering expenses, were approximately $324.1 million. In May 2020, we completed a public offering in which we sold an aggregate of 10,465,000 shares of common stock at a price of $13.75 per share. Net proceeds from the public offering, after deducting underwriting discounts, commissions and offering expenses, were approximately $134.9 million. In June 2019, we completed a public offering in which we sold an aggregate of 6,785,000 shares of common stock at a price of $17.00 per share. Net proceeds from the public offering, after deducting underwriting discounts, commissions and offering expenses, were approximately $108.1 million. In March 2019, we entered into an at-the-market issuance sales agreement with SVB Leerink LLC and Stifel, Nicolaus & Company, Incorporated, under which we may offer and sell, from time to time, at our sole discretion, shares of our common stock having an aggregate offering price of up to $75.0 million. We have not yet sold any shares of our common stock under the 2019 ATM facility. In July 2018, we completed a public offering in which we sold an aggregate of 4,600,000 shares of common stock at a price of $16.75 per share. Net proceeds from the public offering, after deducting underwriting discounts, commissions and offering expenses, were approximately $74.5 million. In January 2018, we sold an aggregate of 3,136,722 shares of our common stock at a weighted-average price per share of $18.85, for net proceeds of approximately $57.4 million, after deducting commissions and offering expenses, under an at-the-market issuance sales agreement, with Cowen and Company, LLC, which was amended in November 2017 and March 2018, or 2017 ATM facility. In July 2018, we terminated the 2017 ATM facility. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 11. Share-Based Compensation Equity Incentive Plan In March 2015, our board of directors adopted our Amended and Restated under the 2014 Plan will automatically increase on January 1 of each year through January 1, 2025 by 4% of the total number of shares of our common stock outstanding on December 31 of the preceding calendar year, subject to the ability of our board of directors to take action to reduce the size of the increase in any given year. On January 1, 2021, an automatic increase pursuant to the 2014 Plan occurred, resulting in 2,647,764 additional shares of common stock available for future grants under the 2014 Plan. As of December 31, 2020, 12,234,481 shares of common stock had been reserved for issuance under the 2014 Plan. As of December 31, 2020, 692,894 shares of common stock were available for future grants of equity awards under the 2014 Plan. Stock Options The exercise price of all stock options granted was equal to no less than the estimated fair market value of such stock on the date of grant. Stock options generally vest over a three to four-year Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2019 4,080 $ 13.98 Granted 2,549 $ 15.47 Exercised (982 ) $ 9.94 Canceled (626 ) $ 15.18 Outstanding at December 31, 2020 5,021 $ 15.37 8.3 $ 87,172 Vested and expected to vest at December 31, 2020 5,021 $ 15.37 8.3 $ 87,172 Exercisable at December 31, 2020 1,848 $ 13.73 7.1 $ 34,979 The aggregate intrinsic value in the above table is calculated as the difference between the closing price of our common stock at December 31, 2020 of $32.66 per share and the exercise price of stock options that had strike prices below the closing price. The following summarizes certain information regarding stock options, in thousands: Years Ended December 31, 2020 2019 2018 Cash received from options exercised during the period $ 9,766 $ 2,562 $ 1,035 Intrinsic value of options exercised during the period $ 13,348 $ 4,311 $ 1,822 The assumptions used to estimate the fair value of stock options granted to employees using the Black-Scholes model were as follows: Years Ended December 31, 2020 2019 2018 Weighted-average grant date fair value per share $ 10.15 $ 10.93 $ 12.95 Expected volatility 74.4% — 76.1% 73.1% — 77.2% 76.5% — 79.4% Expected term (in years) 5.50 — 6.08 5.50 — 6.08 5.50 — 6.08 Risk-free interest rate 0.4% — 2.0% 2.1% — 2.8% 2.1% — 2.8% Expected dividend yield — — — In estimating fair value for stock options issued under the 2014 Plan, expected volatility was based, in part, on our historical volatility and the historical volatility of comparable publicly-traded companies because our common stock has only been publicly traded since September 16, 2015. Due to the lack of historical option exercise data, we estimated the expected term using the simplified method. The risk-free interest rates are based on the U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. The expected dividend yield of zero reflects that we have not paid cash dividends since inception and do not intend to pay cash dividends in the foreseeable future. Actual forfeitures are applied as they occur, and any compensation cost previously recognized for awards for which the requisite service has not been completed is reversed in the period that the award is forfeited. As of December 31, 2020, unrecognized estimated compensation expense related to stock options was $30.9 million, which is expected to be recognized over the weighted-average remaining requisite service period of approximately 2.7 years. Restricted Stock Awards Restricted stock awards are granted at a price equal to the estimated fair market value on the date of grant. The restricted stock awards generally vest over four years from the original vesting date, with certain grants subject to one-year No restricted stock awards were granted during the years ended December 31, 2020 and 2019. All previously issued restricted stock awards were fully vested as of December 31, 2018. The total fair value of restricted stock awards vested during the year ended December 31, 2018 was approximately $14.8 million. Employee Stock Purchase Plan In March 2015, our board of directors adopted the 2015 Employee Stock Purchase Plan, or ESPP. The ESPP permits eligible employees to purchase our common stock at a discount through payroll deductions during defined offering periods. Eligible employees may elect to withhold up to 15% of their base earnings to purchase shares of our common stock at a price equal to 85% of the fair market value on the first day of the offering period or the purchase date, whichever is lower. Successive six-month offering periods under the ESPP began on May 21, 2018. The number of shares of our common stock reserved for issuance under the ESPP will automatically increase on January 1 of each calendar year through January 1, 2025 by the lesser of 1% of the total number of shares of our common stock outstanding on December 31 of the preceding calendar year and 2,000,000 shares of common stock, subject to the ability of our board of directors to take action to reduce the size of the increase in any given year. In December 2020, For the years ended December 31, 2020, 2019 and 2018, cash received from the exercise of purchase rights was approximately $0.5 million, $0.4 million and $0.1 million, respectively. As of December 31, 2020, we have issued 75,654 shares of common stock under the ESPP. As of December 31, 2020, 163,051 shares of common stock are reserved for future issuance under the ESPP. The assumptions used to estimate the fair value of ESPP stock purchase rights using the Black-Scholes model were as follows: Years Ended December 31, 2020 2019 2018 Weighted-average grant date fair value per share $ 8.59 $ 4.44 $ 3.87 Weighted-average exercise price per share $ 13.35 $ 11.01 $ 10.15 Expected volatility 55.3% — 91.9% 43.9% — 54.2% 53.8% — 54.4% Expected term (in years) 0.50 0.50 0.50 Risk free interest rate 0.1% — 0.9% 1.9% — 2.5% 1.8% — 2.3% Expected dividend yield — — — In estimating fair value for ESPP purchase rights issued, expected volatility was based on our historical volatility. The expected term is six months, which represents the length of each purchase period. The risk-free interest rates are based on the U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term. The expected dividend yield of zero reflects that we have not paid cash dividends since inception and do not intend to pay cash dividends in the foreseeable future. Total share-based compensation expense was comprised of the following, in thousands: Years Ended December 31, 2020 2019 2018 Research and development $ 3,960 $ 3,427 $ 4,623 General and administrative 8,847 5,982 4,031 Total share-based compensation expense $ 12,807 $ 9,409 $ 8,654 Stock options $ 12,561 $ 9,265 $ 5,889 Employee Stock Purchase Plan 246 144 43 Restricted stock awards — — 2,722 Total share-based compensation expense $ 12,807 $ 9,409 $ 8,654 For the year ended December 31, 2018, we recorded approximately $0.1 million and $2.6 million of share-based compensation expense related to restricted stock awards granted to employees and nonemployees, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. Related Party Transactions Our president and chief executive officer is also the sole managing member and a significant stockholder of Araxes Pharma LLC, or Araxes. The following is a summary of transactions with Araxes for the years ended December 31, 2020, 2019 and 2018: • Facility Sublease We subleased office space in San Diego, California from Araxes pursuant to the Sublease. The Sublease commenced in June 2017 with change to the amount of monthly rent. The Sublease was terminated in June 2020 • Management Fees We have a management services agreement with Araxes pursuant to which Araxes pays us monthly fees for management services calculated based on costs incurred by us in the provision of services to Araxes, plus a reasonable mark-up. For the years ended December 31, 2020, 2019 and 2018, we recorded approximately $0.1 million, $0.2 million and $0.7 million, respectively, of management fee income. In addition, the agreement allows for Araxes to reimburse us an amount equal to the number of full-time equivalents, or FTE, performing research and development services for Araxes, at an annual FTE rate of approximately $382,000, plus actual expenses as reasonably incurred. The initial term of this agreement expired on December 31, 2015 but, pursuant to the terms of the agreement, renewed automatically for additional consecutive one-year periods. The agreement may be terminated by either party with a notice of at least 30 days prior to the expiration of the then-renewal term. For the year ended December 31, 2020, we did not record any reimbursements for research and development expenses provided to Araxes. During the years ended December 31, 2019 and 2018, we recorded reimbursements of approximately $0.1 million and $0.2 million, respectively, for research and development services provided to Araxes, which was recorded as a reduction to research and development expenses on the statements of operations and comprehensive loss. • Services Agreements We have a services agreement with Wellspring Biosciences, Inc., or Wellspring, a wholly-owned subsidiary of Araxes, pursuant to which we pay Wellspring for research and development services provided to us in an amount equal to the number of FTE’s performing the services, at an annual FTE rate of $400,000, plus actual expenses as reasonably incurred. The initial term of this services agreement expired on December 31, 2015 but, pursuant to the terms of the agreement, renews automatically for additional consecutive one-year periods. The agreement may be terminated by either party with a notice of at least 30 days prior to the expiration of the then-renewal term. For the years ended December 31, 2020, 2019 and 2018 , we recognized approximately $ million, $ million and $ million, respectively, from research and development services provided to us under this agreement as research and development expense on the statements of operations and comprehensive loss. We had a services agreement with ALG Partners, Inc., or ALG Partners, a recruiting and temporary staffing agency. Our chief operating officer is an immediate family member of the president of ALG Partners. For the years ended December 31, 2020 and 2019, expenses recognized as related party transactions with ALG Partners were approximately $0.1 million in both years. There were no related party expenses with ALG Partners for the year ended December 31, 2018. • Araxes Asset Purchase Agreement In December 2014, we entered into an asset purchase agreement with Araxes which was amended and restated in February 2015, under which we purchased certain early-stage patent rights related to compounds in the field of oncology for a purchase price of $0.5 million payable under a convertible promissory note. All ongoing development, regulatory and commercial work will be completed fully and at our sole expense. The agreement allows for contingent milestone payments of $9.7 million throughout development and commercialization of the asset, of which $1.2 million relates to the initiation of certain development activities, and $8.5 million relates to the submission of certain regulatory filings and receipt of certain regulatory approvals. To date, we have paid Araxes $0.3 million in milestone payments. Additional payments will be due for each subsequent indication if specified regulatory approvals are achieved. Furthermore, if the program is successfully commercialized, we will be required to pay tiered royalties on annual net product sales ranging in the low single digits, depending on the volume of sales. All milestone payments under the agreement will be recognized upon completion of the required events because the triggering events will not be considered to be probable until they are achieved. There were no milestone payments to Araxes during the years ended December 31, 2020, 2019 and 2018. Additionally, during the year ended December 31, 2020, we announced the termination of our KO-947 ERK inhibitor program. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | 13. Employee Benefit Plan We have a defined contribution 401(k) plan for all employees. Under the terms of the plan, employees may make voluntary contributions as a percentage or defined amount of compensation. We provide a safe harbor contribution of 3.0% of the employee’s compensation, not to exceed eligible limits. For the years ended December 31, 2020, 2019 and 2018, we incurred approximately $0.6 million, $0.3 million and $0.2 million, respectively, in expenses related to the safe harbor contribution. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes For the years ended December 31, 2020, 2019 and 2018, we did not record a provision for income taxes due to a full valuation against our deferred taxes. Our effective income tax rate differs from the statutory federal rate of 21% Years Ended December 31, 2020 2019 2018 Income taxes at statutory federal rate $ (18,821 ) $ (13,259 ) $ (12,694 ) State income tax, net of federal benefit (7,684 ) (4,810 ) (4,447 ) Research and development tax credits (3,169 ) (1,664 ) (1,469 ) Share-based compensation (304 ) 708 870 Other (120 ) 199 (8 ) Valuation allowance 30,098 18,826 17,748 Income tax expense $ — $ — $ — Significant components of our deferred tax assets and liabilities are shown below, in thousands: December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 79,230 $ 53,590 Research and development tax credit carryforwards 7,944 4,748 Share-based compensation 2,638 2,134 Operating lease liabilities 2,278 73 Accruals 1,915 1,353 Other 641 692 Total gross deferred tax assets 94,646 62,590 Less valuation allowance (92,523 ) (62,425 ) Net deferred tax assets 2,123 165 Deferred tax liabilities: Operating lease right-of-use assets (1,868 ) (68 ) Other (255 ) (97 ) Total gross deferred tax liabilities (2,123 ) (165 ) Net deferred tax assets $ — $ — As of December 31, 2020, we had federal net operating loss, or NOL, carryforwa rds of $271.4 million, of which $196.0 million can be carried forward indefinitely. The remaining begin to expire in 2034, unless previously utilized. In addition, as of , we had state loss carryforwards of $324.0 million, of which $323.5 million will begin to expire in 2034 and $0.5 million will begin to expire in 2030, unless previously utilized. We also have federal and state research and development credit carryforwards of $8.0 million and $3.3 million, respectively, as of research and development expire in 2034, unless previously research and development We file tax returns as prescribed by the tax laws of the jurisdictions in which we operate. Our tax years since inception are subject to examination by the federal and state jurisdictions due to the carryforward of unutilized net operating losses and research and development credits. We have not been, nor are we currently, under examination by the federal or any state tax authority. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use existing deferred tax assets. Based on the weight of the evidence, including our limited existence and losses since inception, management has determined that it is more likely than not that the deferred tax assets will not be realized and therefore has recorded a full valuation allowance against the deferred taxes. The valuation allowance at of $92.5 million reflects an increase of $30.1 million from December 31, 2019 Pursuant to Sections 382 and 383 of the Internal Revenue Code, or IRC, annual use of our NOL or research and development credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period. We previously completed a study to assess whether an ownership change, as defined by IRC Section 382, had occurred from our formation through March 31, 2016. Based upon this study, we determined that an ownership change occurred but concluded the annual utilization limitation would be sufficient to utilize our pre-ownership change NOLs and research and development credits prior to expiration. We completed additional studies and concluded no further ownership changes occurred through December 31, 2018. We have not completed a study for 2020 or 2019, however, we do not expect any material limitations to the utilization of NOLs or research and development credits. Future ownership changes may limit our ability to utilize remaining tax attributes. Any carryforwards that will expire prior to utilization as a result of such additional limitations will be removed from deferred tax assets, with a corresponding reduction of the valuation allowance. In accordance with authoritative guidance, the impact of an uncertain income tax position is recognized at the largest amount that is “more likely than not” to be sustained upon audit by the relevant taxing authority. An uncertain tax position will not be recognized if it has less than a 50% likelihood of being sustained. The following table summarizes the activity related to our unrecognized tax benefits, in thousands: December 31, 2020 2019 2018 Gross unrecognized tax benefits at the beginning of the year $ 1,741 $ 1,063 $ 615 Increases related to prior year tax positions — — — Increases from tax positions taken in the current year 1,237 678 448 Gross unrecognized tax benefits at the end of the year $ 2,978 $ 1,741 $ 1,063 Our practice is to recognize interest and penalties related to income tax matters in income tax expense. There was no accrued interest or penalties included in the balance sheets as of December 31, 2020 and 2019, and we have not recognized interest and penalties in the statements of operations and comprehensive loss for the years ended December 31, 2020, We do not expect that there will be a significant change in the unrecognized tax benefits over the next 12 months. Due to the existence of the valuation allowance, future changes in our unrecognized tax benefits will not impact our effective tax rate. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain prior period balances have been reclassified to conform to the current period presentation. |
Use of Estimates | Use of Estimates Our financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Reported amounts and note disclosures reflect the overall economic conditions that are most likely to occur and anticipated measures management intends to take. Actual results could differ materially from those estimates. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. |
Segment Reporting | Segment Reporting Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. We operate in a single industry segment which is the discovery and development of precision medicines for the treatment of cancer. Our chief operating decision-maker reviews the operating results on an aggregate basis and manages the operations as a single operating segment in the United States. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of checking, money market and highly liquid investments that are readily convertible to cash and that have an original maturity of three months or less from date of purchase. The carrying amounts approximate fair value due to the short maturities of these instruments. |
Restricted Cash | Restricted Cash Under the terms of an office lease entered into in March 2020, we are required to maintain a standby letter of credit during the term of the lease. As of December 31, 2020, restricted cash of $0.2 million was pledged as collateral for the letter of credit. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the balance sheets that sum to the total of the amounts shown in the statements of cash flows, in thousands: December 31, 2020 2019 2018 Cash and cash equivalents $ 325,493 $ 26,135 $ 16,119 Restricted cash 210 — — Total $ 325,703 $ 26,135 $ 16,119 |
Short-Term Investments | Short-Term Investments Short-term investments are marketable securities with maturities greater than three months from date of purchase that are specifically identified to fund current operations. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date, which reflects management’s intention to use the proceeds from sales of these securities to fund our operations, as necessary. The cost of short-term investments is adjusted for amortization of premiums or accretion of discounts to maturity, and such amortization or accretion is included in interest income. Dividend and interest income is recognized as interest income on the statements of operations and comprehensive loss when earned. Short-term investments are classified as available-for-sale securities and carried at fair value with unrealized gains and non-credit related losses recorded in other comprehensive income (loss) and included as a separate component of stockholders' equity. Realized gains and losses from the sale of available-for-sale securities are determined on a specific identification basis and included in interest income, net on the statements of operations and comprehensive loss. |
Allowance For Credit Losses On Available-For-Sale Debt Securities | Allowance for Credit Losses For available-for-sale debt securities in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through earnings. For available-for-sale debt securities that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the severity of the impairment, any changes in interest rates, changes to the underlying credit ratings and forecasted recovery, among other factors. The credit-related portion of unrealized losses, and any subsequent improvements, are recorded in interest income through an allowance account. Any impairment that has not been recorded through an allowance for credit losses is included in other comprehensive income (loss) on the statements of operations and comprehensive loss. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; • Level 3 - Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash, cash equivalents and short-term investments. We maintain deposits in federally insured financial institutions in excess of federally insured limits. We have established guidelines to limit our exposure to credit risk by placing investments with high credit quality financial institutions, diversifying our investment portfolio and placing investments with maturities that maintain safety and liquidity. We periodically review and modify these guidelines to maximize trends in yields and interest rates without compromising safety and liquidity. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Computer software and equipment are depreciated over their estimated useful lives of three years. Laboratory equipment is depreciated over its estimated useful life of five years. Furniture and fixtures are depreciated over their estimated useful lives of five years. Leasehold improvements are depreciated over the lesser of the term of the related lease or the useful life of the asset. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived asset, including its eventual residual value, is compared to the carrying value to determine whether impairment exists. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written-down to their estimated fair values. For the years ended December 31, 2020, 2019 and 2018, there were no impairments of the value of long-lived assets. |
Leases | Leases We determine if an arrangement is a lease or contains lease components at inception. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. For operating leases with an initial term greater than 12 months, we recognize operating lease right-of-use, or ROU, assets and operating lease liabilities based on the present value of lease payments over the lease term at commencement date. Operating lease ROU assets are comprised of the lease liability plus any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate when we are reasonably certain that the options will be exercised. For our operating leases, we generally cannot determine the interest rate implicit in the lease, in which case we use our incremental borrowing rate as the discount rate for the lease. We estimate our incremental borrowing rate for our operating leases based on what we would normally pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments. Operating lease expense is recognized on a straight-line basis over the lease term. If a lease is modified, the modified contract is evaluated to determine whether it is or contains a lease. If a lease continues to exist, the lease modification is determined to be a separate contract when the modification grants the lessee an additional ROU that is not included in the original lease and the lease payments increase commensurate with the standalone price for the additional ROU. A lease modification that results in a separate contract will be accounted for in the same manner as a new lease. For a modification that is not a separate contract, we reassess the lease classification using the modified terms and conditions and the facts and circumstances as of the effective date of the modification and recognize the amount of the remeasurement of the lease liability for the modified lease as an adjustment to the corresponding operating lease ROU asset. |
Research and Development Expenses | Research and Development Expenses Research and development expenses consist of costs associated with our research and development activities including salaries, benefits, share-based compensation and other personnel costs, clinical trial costs, manufacturing costs for non-commercial products, fees paid to external service providers and consultants, facilities costs and supplies, equipment and materials used in clinical and preclinical studies and research and development. licensed technology for a particular research and development project that have no alternative future uses, in other research and development projects or otherwise, and therefore no separate economic values are expensed as research and development costs at the time such costs are incurred. As of December 31, 2020 , we ha d no in-licensed technologies that have alternative future uses in research and development projects or otherwise. |
Clinical Trial Costs and Accruals | Clinical Trial Costs and Accruals A significant portion of our clinical trial costs relate to contracts with contract research organizations, or CROs. The financial terms of our CRO contracts may result in payment flows that do not match the periods over which materials or services are provided to us under such contracts. Our objective is to reflect the appropriate clinical trial expenses in our financial statements by matching those expenses with the period in which services and efforts are expended. As part of the process of preparing our financial statements, we rely on cost information provided by our CROs, concerning monthly expenses as well as reimbursement for pass through costs. We are also required to estimate certain of our expenses resulting from our obligations under our CRO contracts. Accordingly, our clinical trial expense accrual is dependent upon the timely and accurate reporting of CROs and other third-party vendors. If the contracted amounts are modified, for instance, as a result of changes in the clinical trial protocol or scope of work to be performed, we modify our accruals accordingly on a prospective basis. Revisions in the scope of a contract are charged to expense in the period in which the facts that give rise to the revision become reasonably certain. Historically, we have had no material changes in clinical trial expense that had a material impact on our results of operations or financial position. |
Patent Costs | Patent Costs We expense all costs as incurred in connection with patent applications, including direct application fees, and the legal and consulting expenses related to making such applications, and such costs are included in general and administrative expenses on the statements of operations and comprehensive loss. |
Share-Based Payments | Share-Based Payments Our share-based awards are measured at fair value on the date of grant based upon the estimated fair value of common stock. The fair value of awards expected to vest are recognized and amortized on a straight-line basis over the requisite service period of the award less actual forfeitures. The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model, or Black-Scholes model, that requires the use of subjective assumptions including volatility, expected term, risk-free rate and the fair value of the underlying common stock. Subsequent to the adoption of the Financial Accounting Standards Board, or FASB, Accounting Standards Update, or ASU, Improvements to Nonemployee Share-Based Payment Accounting (Topic 718), |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance against deferred tax assets is recorded if, based upon the weight of all available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. For uncertain tax positions that meet “a more likely than not” threshold, we recognize the benefit of uncertain tax positions in the financial statements. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as the change in equity during the period from transactions and other events and non-owner sources. For the periods presented, accumulated other comprehensive income (loss) consisted of unrealized gains and losses on marketable securities and foreign currency. |
Net Loss per Share | Net Loss per Share Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of common shares and common stock equivalents outstanding for the period determined using the treasury-stock method. Common stock equivalents outstanding are comprised of stock options, a warrant and employee stock purchase plan rights and are only included in the calculation of diluted earnings per common share when net income is reported and their effect is dilutive. Because of our net loss f 4,120,000 3,225,000 |
Recent Accounting Pronouncements | In June 2016, the FASB, issued ASU 2016-13, Financial Instruments−Credit Losses: Measurement of Credit Losses on Financial Instruments, in order to improve financial reporting of expected credit losses on financial instruments and other commitments to extend credit. ASU 2016-13 requires that an entity measure and recognize expected credit losses for financial assets held at amortized cost and replaces the incurred loss impairment methodology in prior GAAP with a methodology that requires consideration of a broader range of information to estimate credit losses, and establishes additional disclosures related to credit risks. We adopted ASU 2016-13 on January 1, 2020. The |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the balance sheets that sum to the total of the amounts shown in the statements of cash flows, in thousands: December 31, 2020 2019 2018 Cash and cash equivalents $ 325,493 $ 26,135 $ 16,119 Restricted cash 210 — — Total $ 325,703 $ 26,135 $ 16,119 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments All Other Investments [Abstract] | |
Investments Measured at Fair Value on Recurring Basis | The following tables summarize, by major security type, our short-term investments that are measured at fair value on a recurring basis, in thousands: December 31, 2020 Maturities (years) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds 1 or less $ 311,239 $ — $ — $ 311,239 Commercial paper 1 or less 5,998 — — 5,998 Total cash equivalents 317,237 — — 317,237 Short-term investments: Corporate debt securities 2 or less 113,020 36 (36 ) 113,020 Commercial paper 1 or less 106,350 — — 106,350 U.S. Treasury securities 1 or less 88,409 50 (2 ) 88,457 Total short-term investments 307,779 86 (38 ) 307,827 Total $ 625,016 $ 86 $ (38 ) $ 625,064 December 31, 2019 Maturities (years) Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash equivalents: Money market funds 1 or less $ 18,445 $ — $ — $ 18,445 Short-term investments: Corporate debt securities 2 or less 113,466 182 — 113,648 Commercial paper 1 or less 20,851 — — 20,851 U.S. Treasury securities 2 or less 76,108 149 — 76,257 Total short-term investments 210,425 331 — 210,756 Total $ 228,870 $ 331 $ — $ 229,201 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Fair Value Measurements, By Major Security Type | The following tables summarize, by major security type, our cash equivalents and short-term investments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy, in thousands: December 31, 2020 Total Level 1 Level 2 Cash equivalents: Money market funds $ 311,239 $ 311,239 $ — Commercial paper 5,998 — 5,998 Total cash equivalents 317,237 311,239 5,998 Short-term investments: Corporate debt securities 113,020 — 113,020 Commercial paper 106,350 — 106,350 U.S. Treasury securities 88,457 88,457 — Total short-term investments 307,827 88,457 219,370 Total $ 625,064 $ 399,696 $ 225,368 December 31, 2019 Total Level 1 Level 2 Cash equivalents: Money market funds $ 18,445 $ 18,445 $ — Short-term investments: Corporate debt securities 113,648 — 113,648 Commercial paper 20,851 — 20,851 U.S. Treasury securities 76,257 76,257 — Total short-term investments 210,756 76,257 134,499 Total $ 229,201 $ 94,702 $ 134,499 |
Balance Sheet Detail (Tables)
Balance Sheet Detail (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of Property and Equipment | Property and equipment consisted of the following, in thousands: December 31, 2020 2019 Leasehold improvements $ 1,169 $ — Furniture and fixtures 862 — Computer software and equipment and laboratory equipment 276 136 Property and equipment, gross 2,307 136 Less: accumulated depreciation (286 ) (92 ) Property and equipment, net $ 2,021 $ 44 |
Summary of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following, in thousands: December 31, 2020 2019 Accounts payable $ 2,753 $ 3,526 Accrued clinical trial research and development expenses 4,080 4,139 Accrued other research and development expenses 5,581 2,831 Accrued compensation and benefits 7,016 3,694 Operating lease liability, current portion 2,089 252 Other accrued expenses 1,505 872 Total accounts payable and accrued expenses $ 23,024 $ 15,314 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Future Minimum Payments under the SVB Loan Agreement | The following table summarizes future minimum payments under the SVB Loan Agreement as of December 31, 2020, in thousands: Year Ending December 31, 2021 $ 3,328 2022 3,160 2023 1,849 Total future minimum payments 8,337 Less: interest payments (1,087 ) Principal amount of long-term debt 7,250 Current portion of long-term debt (3,000 ) Long-term debt, net $ 4,250 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Lease Liabilities | Maturities of our lease liabilities as of December 31, 2020 Year Ending December 31, 2021 $ 2,141 2022 2,098 2023 2,080 2024 1,558 2025 722 Total lease payments 8,599 Less: imputed interest (872 ) Total operating lease liabilities $ 7,727 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activities | The exercise price of all stock options granted was equal to no less than the estimated fair market value of such stock on the date of grant. Stock options generally vest over a three to four-year Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2019 4,080 $ 13.98 Granted 2,549 $ 15.47 Exercised (982 ) $ 9.94 Canceled (626 ) $ 15.18 Outstanding at December 31, 2020 5,021 $ 15.37 8.3 $ 87,172 Vested and expected to vest at December 31, 2020 5,021 $ 15.37 8.3 $ 87,172 Exercisable at December 31, 2020 1,848 $ 13.73 7.1 $ 34,979 |
Summary of Information Regarding Stock Options | The following summarizes certain information regarding stock options, in thousands: Years Ended December 31, 2020 2019 2018 Cash received from options exercised during the period $ 9,766 $ 2,562 $ 1,035 Intrinsic value of options exercised during the period $ 13,348 $ 4,311 $ 1,822 |
Summary of Assumptions Used in Black-Scholes Model | The assumptions used to estimate the fair value of stock options granted to employees using the Black-Scholes model were as follows: Years Ended December 31, 2020 2019 2018 Weighted-average grant date fair value per share $ 10.15 $ 10.93 $ 12.95 Expected volatility 74.4% — 76.1% 73.1% — 77.2% 76.5% — 79.4% Expected term (in years) 5.50 — 6.08 5.50 — 6.08 5.50 — 6.08 Risk-free interest rate 0.4% — 2.0% 2.1% — 2.8% 2.1% — 2.8% Expected dividend yield — — — |
Summary of Assumptions Used in Black-Scholes Model | The assumptions used to estimate the fair value of ESPP stock purchase rights using the Black-Scholes model were as follows: Years Ended December 31, 2020 2019 2018 Weighted-average grant date fair value per share $ 8.59 $ 4.44 $ 3.87 Weighted-average exercise price per share $ 13.35 $ 11.01 $ 10.15 Expected volatility 55.3% — 91.9% 43.9% — 54.2% 53.8% — 54.4% Expected term (in years) 0.50 0.50 0.50 Risk free interest rate 0.1% — 0.9% 1.9% — 2.5% 1.8% — 2.3% Expected dividend yield — — — |
Summary of Share-based Compensation Expense | Total share-based compensation expense was comprised of the following, in thousands: Years Ended December 31, 2020 2019 2018 Research and development $ 3,960 $ 3,427 $ 4,623 General and administrative 8,847 5,982 4,031 Total share-based compensation expense $ 12,807 $ 9,409 $ 8,654 Stock options $ 12,561 $ 9,265 $ 5,889 Employee Stock Purchase Plan 246 144 43 Restricted stock awards — — 2,722 Total share-based compensation expense $ 12,807 $ 9,409 $ 8,654 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Our effective income tax rate differs from the statutory federal rate of 21% Years Ended December 31, 2020 2019 2018 Income taxes at statutory federal rate $ (18,821 ) $ (13,259 ) $ (12,694 ) State income tax, net of federal benefit (7,684 ) (4,810 ) (4,447 ) Research and development tax credits (3,169 ) (1,664 ) (1,469 ) Share-based compensation (304 ) 708 870 Other (120 ) 199 (8 ) Valuation allowance 30,098 18,826 17,748 Income tax expense $ — $ — $ — |
Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are shown below, in thousands: December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 79,230 $ 53,590 Research and development tax credit carryforwards 7,944 4,748 Share-based compensation 2,638 2,134 Operating lease liabilities 2,278 73 Accruals 1,915 1,353 Other 641 692 Total gross deferred tax assets 94,646 62,590 Less valuation allowance (92,523 ) (62,425 ) Net deferred tax assets 2,123 165 Deferred tax liabilities: Operating lease right-of-use assets (1,868 ) (68 ) Other (255 ) (97 ) Total gross deferred tax liabilities (2,123 ) (165 ) Net deferred tax assets $ — $ — |
Schedule of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits, in thousands: December 31, 2020 2019 2018 Gross unrecognized tax benefits at the beginning of the year $ 1,741 $ 1,063 $ 615 Increases related to prior year tax positions — — — Increases from tax positions taken in the current year 1,237 678 448 Gross unrecognized tax benefits at the end of the year $ 2,978 $ 1,741 $ 1,063 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020USD ($)Segmentshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Restricted cash pledged as collateral | $ 210,000 | ||
Impairment losses on long-lived assets | $ 0 | $ 0 | $ 0 |
Operating lease, existence of option to extend | true | ||
Operating lease, existence of option to extend description | Lease terms may include options to extend or terminate when we are reasonably certain that the options will be exercised. | ||
Operating lease, existence of option to terminate | true | ||
Operating lease, option to terminate description | Lease terms may include options to extend or terminate when we are reasonably certain that the options will be exercised. | ||
Total potentially dilutive securities | shares | 5,059,000 | 4,120,000 | 3,225,000 |
Computer Software and Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 3 years | ||
Laboratory Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 5 years | ||
Furniture and Fixtures | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 5 years | ||
Collateral Pledged | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash pledged as collateral | $ 200,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 325,493 | $ 26,135 | $ 16,119 | |
Restricted cash | 210 | |||
Total | $ 325,703 | $ 26,135 | $ 16,119 | $ 11,433 |
Investments - Investments Measu
Investments - Investments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Short-term investments, Estimated Fair Value | $ 307,827 | $ 210,756 |
Fair Value Measurements on Recurring Basis | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cash equivalents, Amortized Cost | 317,237 | |
Cash equivalents, Estimated Fair Value | 317,237 | |
Short-term investments, Amortized Cost | 307,779 | 210,425 |
Short-term investments, Unrealized Gains | 86 | 331 |
Short-term investments, Unrealized Losses | (38) | |
Short-term investments, Estimated Fair Value | 307,827 | 210,756 |
Cash equivalents and Short-term investments, Amortized Cost | 625,016 | 228,870 |
Cash equivalents and Short-term investments, Unrealized Gains | 86 | 331 |
Cash equivalents and Short-term investments, Unrealized Losses | (38) | |
Cash equivalents and Short-term investments, Estimated Fair Value | $ 625,064 | $ 229,201 |
Fair Value Measurements on Recurring Basis | Money Market Funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Maturities (years) | 1 or less | 1 or less |
Cash equivalents, Amortized Cost | $ 311,239 | $ 18,445 |
Cash equivalents, Estimated Fair Value | $ 311,239 | $ 18,445 |
Fair Value Measurements on Recurring Basis | Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Maturities (years) | 1 or less | |
Cash equivalents, Amortized Cost | $ 5,998 | |
Cash equivalents, Estimated Fair Value | $ 5,998 | |
Maturities (years) | 1 or less | 1 or less |
Short-term investments, Amortized Cost | $ 106,350 | $ 20,851 |
Short-term investments, Estimated Fair Value | $ 106,350 | $ 20,851 |
Fair Value Measurements on Recurring Basis | Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Maturities (years) | 2 or less | 2 or less |
Short-term investments, Amortized Cost | $ 113,020 | $ 113,466 |
Short-term investments, Unrealized Gains | 36 | 182 |
Short-term investments, Unrealized Losses | (36) | |
Short-term investments, Estimated Fair Value | $ 113,020 | $ 113,648 |
Fair Value Measurements on Recurring Basis | U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Maturities (years) | 1 or less | 2 or less |
Short-term investments, Amortized Cost | $ 88,409 | $ 76,108 |
Short-term investments, Unrealized Gains | 50 | 149 |
Short-term investments, Unrealized Losses | (2) | |
Short-term investments, Estimated Fair Value | $ 88,457 | $ 76,257 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($) | |
Investments All Other Investments [Abstract] | ||
Short-term investments with maturities less than one year | $ 242,600 | $ 196,100 |
Short-term investments with maturities between one to two years | $ 65,200 | 14,700 |
Short-term investments maturities, description | As of December 31, 2020 and 2019, short-term investments of $242.6 million and $196.1 million, respectively, had maturities less than one year, and short-term investments of $65.2 million and $14.7 million, respectively, had maturities between one to two years. | |
Available for sale debt securities allowance for credit losses | $ 0 | |
Allowance for credit losses | 0 | |
Available for sale debt securities gross unrealized loss positions for less than twelve months | $ 85,200 | |
Available for sale debt securities gross unrealized loss positions | $ 0 | |
Number of available-for-sale securities | security | 10 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule Of Fair Value Measurements, By Major Security Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 307,827 | $ 210,756 |
Fair Value Measurements on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 317,237 | |
Short-term investments | 307,827 | 210,756 |
Cash equivalents and short-term investments | 625,064 | 229,201 |
Fair Value Measurements on Recurring Basis | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 311,239 | |
Short-term investments | 88,457 | 76,257 |
Cash equivalents and short-term investments | 399,696 | 94,702 |
Fair Value Measurements on Recurring Basis | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,998 | |
Short-term investments | 219,370 | 134,499 |
Cash equivalents and short-term investments | 225,368 | 134,499 |
Fair Value Measurements on Recurring Basis | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 311,239 | 18,445 |
Fair Value Measurements on Recurring Basis | Money Market Funds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 311,239 | 18,445 |
Fair Value Measurements on Recurring Basis | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 113,020 | 113,648 |
Fair Value Measurements on Recurring Basis | Corporate Debt Securities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 113,020 | 113,648 |
Fair Value Measurements on Recurring Basis | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,998 | |
Short-term investments | 106,350 | 20,851 |
Fair Value Measurements on Recurring Basis | Commercial Paper | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,998 | |
Short-term investments | 106,350 | 20,851 |
Fair Value Measurements on Recurring Basis | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | 88,457 | 76,257 |
Fair Value Measurements on Recurring Basis | U.S. Treasury Securities | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 88,457 | $ 76,257 |
Balance Sheet Detail - Summary
Balance Sheet Detail - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,307 | $ 136 |
Less: accumulated depreciation | (286) | (92) |
Property and equipment, net | 2,021 | 44 |
Computer Software and Equipment and Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 276 | $ 136 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 862 | |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 1,169 |
Balance Sheet Detail - Addition
Balance Sheet Detail - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation expense | $ 194 | $ 0 | $ 10 |
Balance Sheet Detail - Summar_2
Balance Sheet Detail - Summary of Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accounts payable | $ 2,753 | $ 3,526 |
Accrued clinical trial research and development expenses | 4,080 | 4,139 |
Accrued other research and development expenses | 5,581 | 2,831 |
Accrued compensation and benefits | $ 7,016 | $ 3,694 |
Operating Lease Liability Current Statement Of Financial Position Extensible List | kura:OperatingLeaseLiabilityCurrentMember | kura:OperatingLeaseLiabilityCurrentMember |
Operating lease liability, current portion | $ 2,089 | $ 252 |
Other accrued expenses | 1,505 | 872 |
Total accounts payable and accrued expenses | $ 23,024 | $ 15,314 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands | Nov. 01, 2018USD ($) | Dec. 31, 2020USD ($)MonthlyPayment$ / sharesshares | Dec. 31, 2018USD ($) | Apr. 30, 2016USD ($) |
Debt Instrument [Line Items] | ||||
Principal amount outstanding on loan | $ 7,250 | |||
Loss from extinguishment of debt | $ (498) | |||
Oxford Finance LLC and Silicon Valley Bank | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Principal amount outstanding on loan | $ 7,500 | |||
Warrants issued to purchase of common stock | shares | 33,988 | |||
Warrants exercisable exercise price | $ / shares | $ 3.31 | |||
Silicon Valley Bank | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Principal amount outstanding on loan | $ 7,500 | |||
Repayment of Oxford Finance LLC and Silicon Valley Bank debt | 6,900 | |||
Prepayment charge | 100 | |||
Maximum borrowing capacity under term loans | 20,000 | |||
Term loan unused facility | $ 12,500 | |||
Additional borrowing description | Under the terms of the SVB Loan Agreement, we could, at our sole discretion, borrow from the Lender up to an additional $12.5 million by a specified date. The draw period for the additional loan expired without us drawing down the additional loan. | |||
Loss from extinguishment of debt | $ (500) | |||
Term loan facility maturity date | May 1, 2023 | |||
Description of term loan payment terms | The Term Loan is due on the scheduled maturity date of May 1, 2023, or Maturity Date. Repayment of the Term Loan was interest only through November 30, 2020, followed by 30 equal monthly payments of principal plus accrued interest which commenced on December 1, 2020. | |||
Number of equal monthly payments of principal and accrued interest | MonthlyPayment | 30 | |||
Frequency of periodic payment | monthly | |||
Principal and interest payments commencement date | Dec. 1, 2020 | |||
Debt instrument, interest rate | 5.50% | |||
Final payment as a percentage of amounts borrowed | 7.75% | |||
Team loan interest rate description | The per annum interest rate for the outstanding Term Loan is the greater of (i) 5.50% and (ii) the sum of (a) the prime rate reported in The Wall Street Journal plus (b) 0.25%. | |||
Silicon Valley Bank | Term Loan | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Percentage of prime rate included in effective interest rate | 0.25% | |||
Silicon Valley Bank | Term Loan | Transaction Occurring Assumption One | ||||
Debt Instrument [Line Items] | ||||
Prepayment fee equal to outstanding principal amount | 1.00% | |||
Silicon Valley Bank | Term Loan | Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 5.50% |
Long-Term Debt - Future Minimum
Long-Term Debt - Future Minimum Payments under the SVB Loan Agreement (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 3,328 | |
2022 | 3,160 | |
2023 | 1,849 | |
Total future minimum payments | 8,337 | |
Less: interest payments | (1,087) | |
Principal amount of long-term debt | 7,250 | |
Current portion of long-term debt | (3,000) | $ (250) |
Long-term debt, net | $ 4,250 | $ 7,250 |
License Agreements - Additional
License Agreements - Additional Information (Detail) - USD ($) | Dec. 22, 2014 | Dec. 18, 2014 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
License Agreements [Line Items] | |||||
Total future milestone payments under license agreements with non-related parties | $ 80,200,000 | ||||
Milestone paid to date | $ 100,000 | ||||
Janssen License Agreement | |||||
License Agreements [Line Items] | |||||
License agreement date | Dec. 22, 2014 | ||||
Agreement termination written notice | 180 days | ||||
Agreement termination notice period in event of material breach | 45 days | ||||
Janssen License Agreement | Up front Payment Arrangement | |||||
License Agreements [Line Items] | |||||
Upfront license fee | $ 1,000,000 | ||||
Initiation of Certain Development Activities | |||||
License Agreements [Line Items] | |||||
Total future milestone payments under license agreements with non-related parties | 500,000 | ||||
Specified Regulatory Approvals | |||||
License Agreements [Line Items] | |||||
Total future milestone payments under license agreements with non-related parties | 28,900,000 | ||||
Specified Levels of Product Sales | |||||
License Agreements [Line Items] | |||||
Total future milestone payments under license agreements with non-related parties | $ 50,800,000 | ||||
The University of Michigan License Agreement | |||||
License Agreements [Line Items] | |||||
License agreement date | Dec. 22, 2014 | ||||
Agreement termination written notice | 90 days | ||||
Agreement termination notice period in event of material breach | 60 days | ||||
Agreement termination period due to payment failure | 30 days | ||||
Araxes Asset Purchase Agreement | |||||
License Agreements [Line Items] | |||||
Milestone paid to date | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Nov. 01, 2019USD ($) | Jun. 01, 2017 | May 31, 2020USD ($)Option | Apr. 30, 2020USD ($) | Mar. 31, 2020USD ($)Option | Jan. 31, 2020 | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2020USD ($) |
Loss Contingencies [Line Items] | |||||||||||
Operating lease, existence of option to extend | true | ||||||||||
Operating lease, existence of option to extend description | Lease terms may include options to extend or terminate when we are reasonably certain that the options will be exercised. | ||||||||||
Operating lease right-of-use assets | $ 6,334,000 | $ 234,000 | |||||||||
Operating leases, liability | 7,727,000 | $ 300,000 | |||||||||
Long-term operating lease liabilities | $ 5,638,000 | ||||||||||
Weighted-average discount rate | 5.50% | 6.50% | |||||||||
Weighted-average remaining lease term | 4 years 1 month 6 days | 6 months | |||||||||
Total cash paid for amounts included in the measurement of lease liabilities | $ 300,000 | $ 500,000 | |||||||||
ROU assets obtained in exchange for operating lease liabilities | 7,500,000 | 700,000 | |||||||||
Total operating lease rent expense | 2,000,000 | 600,000 | $ 500,000 | ||||||||
ASC 842 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Total operating lease rent expense | $ 1,700,000 | 500,000 | |||||||||
San Diego Lease | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Lease commencement date | May 31, 2020 | ||||||||||
Lease commencement amendment date | Aug. 1, 2020 | ||||||||||
Lease extended expiration date | Nov. 30, 2025 | ||||||||||
Operating lease, existence of option to extend | true | ||||||||||
Operating lease, existence of option to extend description | one-time option to extend for a period of five additional years. | ||||||||||
Number of options to extend lease | Option | 1 | ||||||||||
Lease agreement additional extended lease term | 5 years | ||||||||||
Lease, monthly minimum rent payable | $ 58,000 | ||||||||||
Operating lease rate of increase in annual rent | 3.00% | ||||||||||
Lease allowance | $ 1,000,000 | ||||||||||
Operating lease right-of-use assets | $ 2,200,000 | ||||||||||
Operating leases, liability | $ 2,200,000 | ||||||||||
Boston Lease | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Lease expiration date | Jul. 31, 2024 | ||||||||||
Lease commencement date | Apr. 1, 2020 | ||||||||||
Operating lease, existence of option to extend | true | ||||||||||
Operating lease, existence of option to extend description | one-time option to extend the Boston Lease for a period of five additional years after the expiration of the initial lease term. | ||||||||||
Number of options to extend lease | Option | 1 | ||||||||||
Lease agreement additional extended lease term | 5 years | ||||||||||
Lease, monthly minimum rent payable | $ 105,500 | ||||||||||
Operating lease rate of increase in annual rent | 2.00% | ||||||||||
Operating lease right-of-use assets | $ 5,100,000 | ||||||||||
Operating leases, liability | 5,100,000 | ||||||||||
Boston Lease | Letter of Credit | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Letter of Credit | $ 200,000 | ||||||||||
Sublease | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Operating lease rate of increase in annual rent | 5.00% | ||||||||||
Operating lease right-of-use assets | 300,000 | ||||||||||
Operating leases, liability | $ 300,000 | ||||||||||
Sublease commencement date | Jun. 9, 2020 | ||||||||||
Sublease term | 2 years | ||||||||||
Sublease | One Year | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Lease, monthly minimum rent payable | $ 12,500 | ||||||||||
Araxes Pharma LLC | San Diego, California | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Sublease expiration date | Oct. 31, 2019 | Oct. 31, 2019 | Jun. 30, 2020 | ||||||||
Sublease extended expiration date | Jun. 30, 2020 | Apr. 30, 2020 | |||||||||
Amended sublease effective date | Nov. 1, 2019 | ||||||||||
Sublease termination date | Jun. 30, 2020 | ||||||||||
Sublease commencement date | Jun. 30, 2017 | ||||||||||
Araxes Pharma LLC | San Diego, California | Monthly | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Rent expense | $ 24,000 | $ 16,000 | |||||||||
Amended change in amount of rent expense | $ 0 | ||||||||||
Araxes Pharma LLC | San Diego, California | Sublease | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Total operating lease rent expense | $ 200,000 | $ 400,000 | $ 300,000 | ||||||||
Cambridge, MA Lease | Cambridge, Massachusetts | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Lease expiration date | Jul. 31, 2020 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingency [Abstract] | ||
2021 | $ 2,141 | |
2022 | 2,098 | |
2023 | 2,080 | |
2024 | 1,558 | |
2025 | 722 | |
Total lease payments | 8,599 | |
Less: imputed interest | (872) | |
Total operating lease liabilities | $ 7,727 | $ 300 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2020 | May 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jul. 31, 2018 | Jan. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |||||||||
Common stock, shares issued | 9,326,500 | 10,465,000 | 6,785,000 | 4,600,000 | 3,136,722 | ||||
Common stock, issued price per share | $ 37 | $ 13.75 | $ 17 | $ 16.75 | $ 37 | ||||
Proceeds from issuance of common stock, net | $ 324,100,000 | $ 134,900,000 | $ 108,100,000 | $ 74,500,000 | $ 57,400,000 | $ 459,335,000 | $ 108,165,000 | $ 132,172,000 | |
Common stock weighted-average per share | $ 18.85 | ||||||||
SVB Leerink LLC and Stifel, Nicolaus & Company, Incorporated | 2019 ATM Facility | |||||||||
Stockholders' Equity Note [Abstract] | |||||||||
Common stock, shares issued | 0 | ||||||||
SVB Leerink LLC and Stifel, Nicolaus & Company, Incorporated | 2019 ATM Facility | Maximum | |||||||||
Stockholders' Equity Note [Abstract] | |||||||||
Aggregate offering price | $ 75,000,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | Jan. 01, 2021 | Mar. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, subject to repurchase | 0 | ||||
Restricted stock awards granted | $ 0 | $ 0 | |||
Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Closing price of common stock | $ 32.66 | ||||
Unrecognized estimated stock option compensation expenses | $ 30,900,000 | ||||
Weighted average service period | 2 years 8 months 12 days | ||||
Restricted Stock Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Fair value of awards vested | 14,800,000 | ||||
Employees restricted stock awards | 100,000 | ||||
Non employees restricted stock awards | 2,600,000 | ||||
Minimum | Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Maximum | Employee Stock Option | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Term of options to be granted under the Plan | 10 years | ||||
2014 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of increase in common shares reserved for future issuance pursuant to future option grants | 4.00% | ||||
Common shares available for future issuance pursuant to future option grants | 692,894 | ||||
2014 Plan | Restricted Stock Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
2014 Plan | Restricted Stock With Cliff Vesting | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
2014 Plan | Common Stock | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares reserved for issuance | 12,234,481 | ||||
2014 Plan | Subsequent Event | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Additional common shares reserved for future issuance pursuant to future grants | 2,647,764 | ||||
2015 Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Additional common shares reserved for future issuance pursuant to future grants | 2,000,000 | ||||
Common shares available for future issuance pursuant to future option grants | 163,051 | ||||
Percentage of maximum earnings withhold by employee to purchase shares | 15.00% | ||||
Percentage of common stock purchase | 85.00% | ||||
Cash received from exercise of ESPP purchase rights | $ 500,000 | $ 400,000 | $ 100,000 | ||
Shares issued under ESPP | 75,654 | ||||
2015 Employee Stock Purchase Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Percentage of increase in common shares reserved for future issuance pursuant to future option grants | 1.00% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activities (Detail) - Stock Option $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock Options Outstanding, Beginning Balance, Number of Shares | shares | 4,080 |
Granted, Number of Shares | shares | 2,549 |
Exercised, Number of Shares | shares | (982) |
Canceled, Number of Shares | shares | (626) |
Stock Options Outstanding, Ending Balance, Number of Shares | shares | 5,021 |
Vested and expected to vest, Number of Shares | shares | 5,021 |
Exercisable, Number of Shares | shares | 1,848 |
Outstanding, Beginning Balance, Weighted-Average Exercise Price per Share | $ / shares | $ 13.98 |
Granted, Weighted-Average Exercise Price per Share | $ / shares | 15.47 |
Exercised, Weighted-Average Exercise Price per Share | $ / shares | 9.94 |
Canceled, Weighted-Average Exercise Price per Share | $ / shares | 15.18 |
Outstanding, Ending Balance, Weighted-Average Exercise Price per Share | $ / shares | 15.37 |
Vested and expected to vest, Weighted-Average Exercise Price per Share | $ / shares | 15.37 |
Exercisable, Weighted-Average Exercise Price per Share | $ / shares | $ 13.73 |
Outstanding, Weighted-Average Remaining Contractual Term (years) | 8 years 3 months 18 days |
Vested and expected to vest, Weighted-Average Remaining Contractual Term (years) | 8 years 3 months 18 days |
Exercisable, Weighted-Average Remaining Contractual Term (years) | 7 years 1 month 6 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 87,172 |
Vested and expected to vest, Aggregate Intrinsic Value | $ | 87,172 |
Exercisable, Aggregate Intrinsic Value | $ | $ 34,979 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Information Regarding Stock Options (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Cash received from options exercised during the period | $ 9,766 | $ 2,562 | $ 1,035 |
Intrinsic value of options exercised during the period | $ 13,348 | $ 4,311 | $ 1,822 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Assumptions Used in Black-Scholes Model (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share | $ 10.15 | $ 10.93 | $ 12.95 |
Expected volatility, Minimum | 74.40% | 73.10% | 76.50% |
Expected volatility, Maximum | 76.10% | 77.20% | 79.40% |
Risk free interest rate, Minimum | 0.40% | 2.10% | 2.10% |
Risk free interest rate, Maximum | 2.00% | 2.80% | 2.80% |
Employee Stock Option | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Employee Stock Option | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 29 days | 6 years 29 days | 6 years 29 days |
2015 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average grant date fair value per share | $ 8.59 | $ 4.44 | $ 3.87 |
Expected volatility, Minimum | 55.30% | 43.90% | 53.80% |
Expected volatility, Maximum | 91.90% | 54.20% | 54.40% |
Expected term (in years) | 6 months | 6 months | 6 months |
Risk free interest rate, Minimum | 0.10% | 1.90% | 1.80% |
Risk free interest rate, Maximum | 0.90% | 2.50% | 2.30% |
Weighted-average exercise price per share | $ 13.35 | $ 11.01 | $ 10.15 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Share-based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | $ 12,807 | $ 9,409 | $ 8,654 |
Research and development | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | 3,960 | 3,427 | 4,623 |
General and administrative | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | 8,847 | 5,982 | 4,031 |
Stock options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | 12,561 | 9,265 | 5,889 |
Restricted Stock Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | 2,722 | ||
Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | $ 246 | $ 144 | $ 43 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Jan. 01, 2020 | Jun. 01, 2017 | Oct. 01, 2014 | May 31, 2020 | Apr. 30, 2020 | Mar. 31, 2019 | Dec. 31, 2014 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 23, 2014 |
Related Party Transaction [Line Items] | |||||||||||
Rent expense related to office space sublease | $ 2,000,000 | $ 600,000 | $ 500,000 | ||||||||
Management fee income, related party | 51,000 | 245,000 | 735,000 | ||||||||
Research and development, related party | 196,000 | 432,000 | 1,021,000 | ||||||||
Milestone paid to date | $ 100,000 | ||||||||||
Sublease | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Sublease commencement date | Jun. 9, 2020 | ||||||||||
Araxes Pharma LLC | Management Fees | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Research and development services reimbursement, description | In addition, the agreement allows for Araxes to reimburse us an amount equal to the number of full-time equivalents, or FTE, performing research and development services for Araxes, at an annual FTE rate of approximately $382,000, plus actual expenses as reasonably incurred. The initial term of this agreement expired on December 31, 2015 but, pursuant to the terms of the agreement, renewed automatically for additional consecutive one-year periods. The agreement may be terminated by either party with a notice of at least 30 days prior to the expiration of the then-renewal term. | ||||||||||
Management fee income, related party | $ 100,000 | 200,000 | 700,000 | ||||||||
Service Agreement for research and development | $ 382,000 | ||||||||||
Agreement expiration date | Dec. 31, 2015 | ||||||||||
Agreement termination notice period | 30 days | ||||||||||
Reimbursements of research and development services | $ 0 | 100,000 | 200,000 | ||||||||
Araxes Pharma LLC | San Diego, California | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Sublease commencement date | Jun. 30, 2017 | ||||||||||
Sublease expiration date | Oct. 31, 2019 | Oct. 31, 2019 | Jun. 30, 2020 | ||||||||
Sublease extended expiration date | Jun. 30, 2020 | Apr. 30, 2020 | |||||||||
Amended sublease effective date | Nov. 1, 2019 | ||||||||||
Araxes Pharma LLC | San Diego, California | Sublease | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Rent expense related to office space sublease | $ 200,000 | 400,000 | 300,000 | ||||||||
Araxes Pharma LLC | San Diego, California | Monthly | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amended change in amount of rent expense | $ 0 | ||||||||||
Rent expense, amended sublease | $ 24,000 | ||||||||||
Wellspring Biosciences Inc | Service Agreements | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Agreement expiration date | Dec. 31, 2015 | ||||||||||
Agreement termination notice period | 30 days | ||||||||||
Research and development services expense at full time equivalents rate | $ 400,000 | ||||||||||
Research and development expense payment, description | We have a services agreement with Wellspring Biosciences, Inc., or Wellspring, a wholly-owned subsidiary of Araxes, pursuant to which we pay Wellspring for research and development services provided to us in an amount equal to the number of FTE’s performing the services, at an annual FTE rate of $400,000, plus actual expenses as reasonably incurred. The initial term of this services agreement expired on December 31, 2015 but, pursuant to the terms of the agreement, renews automatically for additional consecutive one-year periods. The agreement may be terminated by either party with a notice of at least 30 days prior to the expiration of the then-renewal term. | ||||||||||
Research and development, related party | $ 100,000 | 200,000 | 1,000,000 | ||||||||
ALG Partners, LLC | Service Agreements | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Research and development expense payment, description | We had a services agreement with ALG Partners, Inc., or ALG Partners, a recruiting and temporary staffing agency. Our chief operating officer is an immediate family member of the president of ALG Partners. | ||||||||||
Research and development, related party | $ 100,000 | 100,000 | 0 | ||||||||
Araxes Asset Purchase Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Convertible notes payable | $ 500,000 | ||||||||||
Contingent Milestone Payables | $ 9,700,000 | ||||||||||
Milestone payments paid to date | 300,000 | ||||||||||
Milestone paid to date | $ 0 | $ 0 | $ 0 | ||||||||
Araxes Asset Purchase Agreement | Certain Regulatory Filings and Approvals | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Contingent milestone payments | $ 8,500,000 | ||||||||||
Araxes Asset Purchase Agreement | Initiation of Certain Development Activities | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Contingent milestone payments | $ 1,200,000 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - Safe Harbor 401(k) Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Expenses related to contribution plan | $ 600 | $ 300 | $ 200 |
Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Percent of employees compensation | 3.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Components Of Deferred Tax Assets And Liabilities [Line Items] | |||
Provision for income taxes | $ 0 | $ 0 | $ 0 |
Effective federal statutory income tax rate, percent | 21.00% | 21.00% | 21.00% |
Increase in valuation allowance | $ 30,100,000 | ||
Deferred tax assets, valuation allowance | $ 92,523,000 | $ 62,425,000 | |
Income tax examination, likelihood of unfavorable settlement | An uncertain tax position will not be recognized if it has less than a 50% likelihood of being sustained. | ||
Unrecognized interest and penalties | $ 0 | $ 0 | $ 0 |
Domestic Tax Authority | |||
Significant Components Of Deferred Tax Assets And Liabilities [Line Items] | |||
Net operating loss carryforrwards | $ 271,400,000 | ||
Loss carryforwards begin to expire | 2034 | ||
Research and development credit carryforwards | $ 8,000,000 | ||
Credit carry forward begin to expire | 2034 | ||
Domestic Tax Authority | Not Subject to Expiration | |||
Significant Components Of Deferred Tax Assets And Liabilities [Line Items] | |||
Net operating loss carryforrwards | $ 196,000,000 | ||
Domestic Tax Authority | Expire in 2034 | |||
Significant Components Of Deferred Tax Assets And Liabilities [Line Items] | |||
Net operating loss carryforrwards | 75,400,000 | ||
State and Local Jurisdiction | |||
Significant Components Of Deferred Tax Assets And Liabilities [Line Items] | |||
Net operating loss carryforrwards | 324,000,000 | ||
Research and development credit carryforwards | 3,300,000 | ||
State and Local Jurisdiction | Research and Development Credits | |||
Significant Components Of Deferred Tax Assets And Liabilities [Line Items] | |||
Credit carryforwards not subject to expiration | 2,000,000 | ||
State and Local Jurisdiction | Expire in 2034 | |||
Significant Components Of Deferred Tax Assets And Liabilities [Line Items] | |||
Net operating loss carryforrwards | $ 323,500,000 | ||
Loss carryforwards begin to expire | 2034 | ||
State and Local Jurisdiction | Expire in 2030 | |||
Significant Components Of Deferred Tax Assets And Liabilities [Line Items] | |||
Net operating loss carryforrwards | $ 500,000 | ||
Loss carryforwards begin to expire | 2030 | ||
State and Local Jurisdiction | Expire in 2031 | Research and Development Credits | |||
Significant Components Of Deferred Tax Assets And Liabilities [Line Items] | |||
Credit carry forward begin to expire | 2031 | ||
Credit carryforwards subject to expiration | $ 1,300,000 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at statutory federal rate | $ (18,821) | $ (13,259) | $ (12,694) |
State income tax, net of federal benefit | (7,684) | (4,810) | (4,447) |
Research and development tax credits | (3,169) | (1,664) | (1,469) |
Share-based compensation | (304) | 708 | 870 |
Other | (120) | 199 | (8) |
Valuation allowance | 30,098 | 18,826 | 17,748 |
Income tax expense | $ 0 | $ 0 | $ 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 79,230 | $ 53,590 |
Research and development tax credit carryforwards | 7,944 | 4,748 |
Share-based compensation | 2,638 | 2,134 |
Operating lease liabilities | 2,278 | 73 |
Accruals | 1,915 | 1,353 |
Other | 641 | 692 |
Total gross deferred tax assets | 94,646 | 62,590 |
Less valuation allowance | (92,523) | (62,425) |
Net deferred tax assets | 2,123 | 165 |
Deferred tax liabilities: | ||
Operating lease right-of-use assets | (1,868) | (68) |
Other | (255) | (97) |
Total gross deferred tax liabilities | (2,123) | (165) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Schedule of Acti
Income Taxes - Schedule of Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Gross unrecognized tax benefits at the beginning of the year | $ 1,741 | $ 1,063 | $ 615 |
Increases related to prior year tax positions | |||
Increases from tax positions taken in the current year | 1,237 | 678 | 448 |
Gross unrecognized tax benefits at the end of the year | $ 2,978 | $ 1,741 | $ 1,063 |