Assembly Biosciences (ASMB) 10-Q 1 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 27, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Registrant Name	ASSEMBLY BIOSCIENCES, INC.
Entity Central Index Key	1,426,800
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	ASMB
Entity Common Stock, Shares Outstanding		17,397,731

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 27,247,232	$ 28,575,085
Marketable securities, at fair value	39,052,821	24,388,403
Accounts receivable from collaboration	1,400,374	0
Prepaid expenses and other current assets	951,334	611,176
Total current assets	68,651,761	53,574,664
Long-term assets
Marketable securities, at fair value	1,004,310	2,435,753
Property, plant and equipment, net	593,126	214,687
Security deposits	425,789	255,366
Intangible assets	29,000,000	29,000,000
Goodwill	12,638,136	12,638,136
Total long-term assets	43,661,361	44,543,942
Total assets	112,313,122	98,118,606
Current liabilities
Accounts payable	870,607	2,368,131
Accrued expenses	6,352,512	4,752,823
Deferred revenue - short-term	4,995,894	0
Total current liabilities	12,219,013	7,120,954
Long-term liabilities
Deferred tax liabilities	11,146,312	11,119,651
Deferred revenue - long-term	41,814,946	0
Total long-term liabilities	52,961,258	11,119,651
Total liabilities	65,180,271	18,240,605
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding	0	0
Common stock, $0.001 par value; 50,000,000 shares authorized; 17,385,773 and 17,246,754 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	17,386	17,247
Additional paid-in capital	295,532,797	288,688,990
Accumulated other comprehensive loss	(388,389)	(600,769)
Accumulated deficit	(248,028,943)	(208,227,467)
Total stockholders' equity	47,132,851	79,878,001
Total liabilities and stockholders' equity	$ 112,313,122	$ 98,118,606

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	17,385,773	17,246,754
Common stock, shares outstanding	17,385,773	17,246,754

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Collaboration revenue	$ 2,659,613	$ 0	$ 5,703,293	$ 0
Operating expenses:
Research and development	10,929,436	8,833,027	33,628,196	24,470,634
General and administrative	4,180,357	2,845,898	12,022,357	8,939,573
Total operating expenses	15,109,793	11,678,925	45,650,553	33,410,207
Loss from operations	(12,450,180)	(11,678,925)	(39,947,260)	(33,410,207)
Other income (expenses)
Interest and other income	241,326	378,381	617,668	1,313,407
Realized loss from marketable securities	(99,068)	(273,573)	(577,300)	(618,075)
Total other income	142,258	104,808	40,368	695,332
Loss before income taxes	(12,307,922)	(11,574,117)	(39,906,892)	(32,714,875)
Income tax benefit	35,903	0	105,416	0
Net loss	(12,272,019)	(11,574,117)	(39,801,476)	(32,714,875)
Other comprehensive (loss) income
Unrealized loss recognized in accumulated other comprehensive loss before reclassification, net of tax benefit of $31,844, $0, $89,281 and $0, respectively	(51,203)	(270,779)	(143,562)	(633,058)
Reclassification adjustment of unrealized loss included in net loss, net of tax expense of $37,987, $0, $221,358 and $0, respectively	61,081	273,573	355,942	618,075
Comprehensive loss	$ (12,262,141)	$ (11,571,323)	$ (39,589,096)	$ (32,729,858)
Net loss per share, basic and diluted	$ (0.71)	$ (0.67)	$ (2.3)	$ (1.9)
Weighted average common shares outstanding, basic and diluted	17,367,523	17,225,554	17,326,506	17,225,625

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Unrealized loss recognized in accumulated other comprehensive loss before reclassification, net of tax benefit	$ 31,844	$ 0	$ 89,281	$ 0
Reclassification adjustment of unrealized loss included in net loss, net of tax expense	$ 37,987	$ 0	$ 221,358	$ 0

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net loss	$ (39,801,476)	$ (32,714,875)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	124,676	55,250
Stock-based compensation	5,833,010	4,033,036
Realized loss from marketable securities	577,300	618,075
Deferred income tax benefit	(105,416)	0
Changes in operating assets and liabilities:
Accounts receivable from collaboration	(1,400,374)	0
Prepaid expenses and other current assets	(340,158)	94,936
Accounts payable	(1,497,524)	2,474,266
Accrued expenses	1,599,689	1,605,078
Deferred revenue	46,810,840	0
Security deposits	(170,423)	(8,186)
Net cash provided by (used in) operating activities	11,630,144	(23,842,420)
Cash flows from investing activities
Purchases of fixed assets and construction in progress	(503,115)	(35,094)
Purchases of marketable securities	(40,022,384)	(7,951,256)
Redemptions of marketable securities	26,556,566	28,515,332
Net cash (used in) provided by investing activities	(13,968,933)	20,528,982
Cash flows from financing activities
Proceeds from the exercise of stock options	1,010,936	0
Net cash provided by financing activities	1,010,936	0
Net decrease in cash and cash equivalents	(1,327,853)	(3,313,438)
Cash and cash equivalents at the beginning of the period	28,575,085	27,107,526
Cash and cash equivalents at the end of the period	27,247,232	23,794,088
Supplemental disclosure of cash flow information:
Shares issued for option exercise - receivable	8	0
Change in unrealized gain (loss) on marketable securities available-for-sale, before tax expense	$ 344,457	$ (14,983)

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2017 - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2016	$ 79,878,001	$ 17,247	$ 288,688,990	$ (600,769)	$ (208,227,467)
Balance (in Shares) at Dec. 31, 2016		17,246,754
Proceeds from the exercise of stock options	$ 1,010,936	$ 131	1,010,805	0	0
Proceeds from the exercise of stock options (in shares)	139,019	131,519
Shares issued for option exercise - receivable	$ 0	$ 8	(8)	0	0
Shares issued for option exercise - receivable (in shares)		7,500
Change in unrealized gain on marketable securities, net of income tax expense of $132,077	212,380	$ 0	0	212,380	0
Stock-based compensation	5,833,010	0	5,833,010	0	0
Net loss	(39,801,476)	0	0	0	(39,801,476)
Balance at Sep. 30, 2017	$ 47,132,851	$ 17,386	$ 295,532,797	$ (388,389)	$ (248,028,943)
Balance (in Shares) at Sep. 30, 2017		17,385,773

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical)	9 Months Ended
	Sep. 30, 2017USD ($)
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	$ 132,077

Nature of Business

Nature of Business	9 Months Ended
	Sep. 30, 2017
Organization, Business and Basis Of Presentation [Abstract]
Nature of Business	Overview Assembly Biosciences, Inc. (Assembly or the Company) is a clinical stage biotechnology company advancing two innovative platform programs: a new class of oral therapeutic candidates for the treatment of hepatitis B virus (HBV) infection and a novel class of oral synthetic live biotherapeutic candidates, which are designed to treat disorders associated with the microbiome. Over 250 million people worldwide are chronically infected with HBV. The Company’s HBV-cure program is aimed at pursuing multiple product candidates that inhibit the HBV lifecycle and increasing the current low cure rate for patients with HBV. Assembly has discovered several novel Core protein Allosteric Modifiers (CpAMs), which are small molecules that directly target and allosterically modulate the HBV core (HBc) protein. The lead product candidate from this program, ABI-H0731, has completed the Phase 1a portion of a Phase 1a/1b human clinical trial in New Zealand, and commenced the Phase 1b portion of the clinical trial in the second quarter of 2017 in New Zealand and other countries outside the United States. We have also filed an investigational new drug application, or IND, under which an additional Phase 1a pharmacokinetic, safety and tolerability study of ABI-H0731 in the United States has been initiated. The second product candidate from this program, ABI-H2158, is currently undergoing IND enabling studies and is expected to begin a Phase 1a human clinical trial in the second half of 2018. The Company’s Microbiome program consists of a fully integrated platform that includes a disease targeted strain identification and selection process, methods for strain isolation and growth under current Good Manufacturing Practice (cGMP) conditions, and a patent pending delivery system that the Company calls GEMICEL®, which is designed to allow for targeted oral delivery of live biologic and conventional therapies to the lower gastrointestinal (GI) tract. Using its microbiome platform, the Company is developing product candidates for various disease indications, including ulcerative colitis, Crohn’s disease, irritable bowel syndrome, non-alcoholic steatohepatitis (NASH), immune-oncology and Clostridium difficile On January 6, 2017, the Company entered into a Research, Development, Collaboration and License Agreement (the Collaboration Agreement) with Allergan Pharmaceuticals International Limited (Allergan) to develop and commercialize select microbiome gastrointestinal programs. Pursuant to the terms of the Collaboration Agreement, in connection with the closing of the transaction on February 10, 2017, Allergan paid the Company an upfront payment of $ 50 the Company is eligible to receive up to approximately $630 million in payments related to seven development milestones and up to approximately $2.15 billion in payments related to 12 commercial development and sales milestones in connection with the successful development and commercialization of licensed compounds for up to six different indications 75 Liquidity The Company has not derived any revenue from product sales to date and currently has no approved products. Once a product has been developed, it will need to be approved for sale by the U.S. Food and Drug Administration (FDA) or an applicable foreign regulatory agency. Since inception, the Company’s operations have been financed primarily through the sale of equity securities, the proceeds from the exercise of warrants and stock options, the issuance of debt and an up-front payment related to the Collaboration Agreement. The Company has incurred losses from operations and negative cash flows from operating activities since inception and expects to continue to incur substantial losses for the next several years as it continues its product development efforts. Management believes the Company currently has sufficient funds to meet its operating requirements for at least the next twelve months. If the Company cannot generate significant cash from its operations, it intends to obtain any additional funding it requires through strategic relationships, public or private equity or debt financings, grants or other arrangements. The Company cannot assure such funding will be available on reasonable terms, if at all. If the Company is unable to generate enough revenue from the Collaboration Agreement when needed or to secure additional sources of funding and receive related full and timely collections of amounts due, it may be necessary to significantly reduce the current rate of spending through reductions in staff and delaying, scaling back, or stopping certain research and development programs, including more costly clinical trials.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies and Recent Accounting Pronouncements	Note 2 - Summary of Significant Accounting Policies and Recent Accounting Pronouncements The accompanying condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission (SEC) and on the same basis as the Company prepares its annual audited consolidated financial statements. The condensed consolidated balance sheet at September 30, 2017, condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2017 and 2016, condensed consolidated statements of cash flows for the nine months ended September 30, 2017 and 2016, and condensed consolidated statement of changes in stockholders’ equity for the nine months ended September 30, 2017 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, that the Company considers necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The results for the three and nine months ended September 30, 2017 are not necessarily indicative of results to be expected for the year ending December 31, 2017 or for any future interim period. The consolidated balance sheet at December 31, 2016 has been derived from audited financial statements; however, it does not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2016, and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 2, 2017 (the 2016 Annual Report). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates inherent in the preparation of the accompanying financial statements include recoverability and useful lives (indefinite or finite) of intangible assets, assessment of impairment of goodwill, and the fair value of stock options and warrants granted to employees, consultants, directors, investors, licensors, placement agents and underwriters. In addition, with the Company entering into the Collaboration Agreement, the Company believes its condensed consolidated financial statements are also impacted by the following accounting estimates and judgments: (i) identifying deliverables under collaboration agreements involving multiple elements and determining whether such deliverables are separable from other aspects of the contractual relationship; (ii) estimating the selling price of deliverables for the purpose of allocating arrangement consideration for revenue recognition; and (iii) estimating the periods over which the allocated consideration for deliverables is recognized. The Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates and assumptions. There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the 2016 Annual Report other than the adoption of the following revenue recognition policy. The Company recognizes revenue when each of the following four criteria is met: (i) persuasive evidence of an arrangement exists; (ii) products are delivered or services are rendered; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. The Company recognizes revenue under the Collaboration Agreement based on the relevant accounting literature. Under this guidance, multiple elements or deliverables may include (i) grants of licenses, or options to obtain licenses, to intellectual property, (ii) research and development services, (iii) participation on joint research and/or joint development committees, and/or (iv) manufacturing or supply of services. The payments entities may receive under these arrangements typically include one or more of the following: non-refundable, upfront license fees; option exercise fees; funding of research and/or development efforts; amounts due upon the achievement of specified objectives; and/or royalties on future product sales. Multiple-element arrangements require the separability of deliverables included in an arrangement into different units of accounting and the allocation of arrangement consideration to the units of accounting. The evaluation of multiple-element arrangements requires management to make judgments about (i) the identification of deliverables, (ii) whether such deliverables are separable from the other aspects of the contractual relationship, (iii) the estimated selling price of each deliverable, and (iv) the expected period of performance for each deliverable. To determine the units of accounting under a multiple-element arrangement, management evaluates certain separation criteria, including whether the deliverables have stand-alone value, based on the relevant facts and circumstances for each arrangement. Management then estimates the selling price for each unit of accounting and allocates the arrangement consideration to each unit using the relative selling price method. The relative selling price for each deliverable is determined using vendor specific objective evidence (VSOE), of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists, we use our best estimate of the selling price for the deliverable. The allocated consideration for each unit of accounting is recognized based on the method most appropriate for that unit of account and in accordance with the revenue recognition criteria detailed above. If there are deliverables in an arrangement that are not separable from other aspects of the contractual relationship, they are treated as a combined unit of accounting, with the allocated revenue for the combined unit recognized in a manner consistent with the revenue recognition applicable to the final deliverable in the combined unit. Payments received prior to satisfying the relevant revenue recognition criteria are recorded as deferred revenue in the accompanying balance sheets and recognized as revenue when the related revenue recognition criteria are met. The Collaboration Agreement provides for non-refundable milestone payments. The Company recognizes revenue that is contingent upon the achievement of a substantive milestone in its entirety in the period in which the milestone is achieved. A milestone is considered substantive when the consideration payable to the Company for such milestone (i) is consistent with the Company’s performance necessary to achieve the milestone or the increase in value to the collaboration resulting from the Company’s performance, (ii) relates solely to the Company’s past performance and (iii) is reasonable relative to all of the other deliverables and payments within the arrangement. In making this assessment, the Company considers all facts and circumstances relevant to the arrangement, including factors such as the scientific, regulatory, commercial and other risks that must be overcome to achieve the milestone, the level of effort and investment required to achieve the milestone and whether any portion of the milestone consideration is related to future performance or deliverables. The Collaboration Agreement provides Allergan with options to license additional intellectual property rights, or purchase additional research, development, or supply services. The Company concluded that these were "substantive options" under the multiple-element arrangement guidance, and accordingly, associated fees have not been considered in allocating contract consideration among deliverables with stand-alone value. If Allergan exercises one or more of these options, the associated revenue would be recognized using the method most appropriate for the particular deliverable. The Company will periodically review the estimated performance periods under the Collaboration Agreement, which provides for non-refundable upfront payments and fees. The Company will adjust the periods over which revenue should be recognized when appropriate to reflect changes in assumptions relating to the estimated performance periods. The Company could accelerate revenue recognition in the event of early termination of programs or if the Company’s expectations change. Alternatively, the Company could decelerate revenue recognition if programs are extended or delayed. While such changes to the Company’s estimates have no impact on the Company’s reported cash flows, the amount of revenue recorded in future periods could be materially impacted. The Company records revenues related to the reimbursement of costs incurred under the Collaboration Agreement where the Company acts as a principal, controls the research and development activities and bears credit risk. Under the Collaboration Agreement, the Company is reimbursed for associated out-of-pocket costs. The gross amount of these pass-through reimbursed costs is reported as revenue in the accompanying statements of operations, while the actual expenses for which the Company is reimbursed are reflected as research and development costs. The Company has also accounted for the milestone payments under ASC 605 Revenue Recognition - Milestone Method Basic net loss per share of common stock excludes dilution and is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share of common stock reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity unless inclusion of such shares would be anti-dilutive. Since the Company has only incurred losses, basic and diluted net loss per share is the same. September 30, 2017 2016 Warrants to purchase common stock 16,909 16,909 Options to purchase common stock 4,859,680 4,377,201 Total 4,876,589 4,394,110 In March 2016, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers: (Topic 606) Identifying Performance Obligations and Licensing In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases (Topic 840) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments, In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting

Marketable Securities

Marketable Securities	9 Months Ended
	Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Note 3 - Marketable Securities September 30, 2017 Gross Unrealized Gross Unrealized Amortized Cost Gain (1) Loss (1) Fair Value Short-term available-for-sale securities Corporate bonds $ 39,170,010 $ 10,689 $ (127,878) $ 39,052,821 Long-term available-for-sale securities Corporate bonds $ 1,006,110 $ - $ (1,800) $ 1,004,310 Total $ 40,176,120 $ 10,689 $ (129,678) $ 40,057,131 December 31, 2016 Gross Unrealized Gross Unrealized Amortized Cost Gain (1) Loss (1) Fair Value Short-term available-for-sale securities Corporate bonds $ 22,032,191 $ 3,190 $ (473,056) $ 21,562,325 Government and agency obligations 1,225,000 661 - 1,225,661 Municipal bonds 1,596,160 4,257 - 1,600,417 24,853,351 8,108 (473,056) 24,388,403 Long-term available-for-sale securities Corporate bonds 2,434,251 1,502 - 2,435,753 2,434,251 1,502 - 2,435,753 Total $ 27,287,602 $ 9,610 $ (473,056) $ 26,824,156 (1) Gross unrealized gain (loss) is pre-tax. The contractual term to maturity of short-term marketable securities held by the Company as of September 30, 2017 is less than one year 1.1 years September 30, December 31, 2017 2016 Quoted prices in active markets for identical assets (Level 1) $ - $ - Quoted prices for similar assets observable in the marketplace (Level 2) 40,057,131 26,824,156 Significant unobservable inputs (Level 3) - - Total $ 40,057,131 $ 26,824,156 The fair values of marketable securities are determined using quoted market prices from daily exchange traded markets based on the closing prices as of September 30, 2017 and December 31, 2016. There were no transfers of marketable securities between Levels 1, 2 or 3 for the nine months ended September 30, 2017 and 2016. Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 4,504,310 $ (3,130) $ 28,616,806 $ (126,548) $ 33,121,116 $ (129,678) Total $ 4,504,310 $ (3,130) $ 28,616,806 $ (126,548) $ 33,121,116 $ (129,678) The Company has determined that the unrealized losses are deemed to be temporary as of September 30, 2017. The Company believes that the unrealized losses generally are caused by increases in the risk premiums required by market participants rather than an adverse change in cash flows or a fundamental weakness in the credit quality of the issuer or underlying assets. Because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, it does not consider the investment in corporate bonds to be other-than-temporarily impaired at September 30, 2017.

Property, Plant and Equipment,

Property, Plant and Equipment, Net	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Net	Note 4 - Property, Plant and Equipment, Net September 30, December 31, Useful life (Years) 2017 2016 Computer hardware and software 3 $ 86,228 $ 86,228 Lab equipment 3 to 5 282,101 253,735 Office equipment 3 to 5 1,109 1,109 Leasehold improvement 1 68,213 68,213 Construction in progress (1) N/A 474,749 - Total property, plant and equipment 912,400 409,285 Less: Accumulated depreciation and amortization (319,274) (194,598) Property, plant and equipment, net $ 593,126 $ 214,687 (1) Construction in progress include the buildout and completion of the manufacturing facility for microbiome platform. Depreciation expense for the three months ended September 30, 2017 and 2016 was approximately $ 42,000 18,000 Depreciation expense for the nine months ended September 30, 2017 and 2016 was approximately $ 125,000 55,000

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Accrued Expenses	Note 5 - Accrued Expenses September 30, December 31, 2017 2016 Accrued expenses: Salaries, bonuses and employee benefits $ 3,588,019 $ 2,884,000 Accrued severance expenses - 241,737 Research and development expenses 2,166,699 916,674 General and administrative expenses 597,794 710,412 Total accrued expenses $ 6,352,512 $ 4,752,823

Stockholders_ Equity

Stockholders’ Equity	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Stockholders' Equity	Note 6 - Stockholders’ Equity Common Stock For the nine months ended September 30, 2017, the Company issued an aggregate of 139,019 1.0 Options In July 2010, the Company’s stockholders approved the 2010 Equity Incentive Plan (the 2010 Plan). As of September 30, 2017, there were outstanding options to purchase an aggregate of 609,334 In July 2014, the Company’s stockholders approved the 2014 Stock Incentive Plan (the 2014 Plan). On June 2, 2016, at the 2016 Annual Meeting of Stockholders, the Company’s stockholders approved the amendment and restatement of the 2014 Plan (the Amended and Restated 2014 Plan). Pursuant to the terms of the Amended and Restated 2014 Plan, the maximum number of shares reserved for issuance thereunder is 4,160,000 1,600,000 3,506,157 495,305 73,876 On April 3, 2017, the Company’s Board of Directors adopted the Assembly Biosciences, Inc. 2017 Inducement Award Plan (the Inducement Plan) pursuant to which the Company reserved 800,000 147,950 652,050 Pursuant to the terms of the merger of Assembly Pharmaceuticals, Inc. with a wholly-owned subsidiary of the Company in 2014, the options to purchase shares of Assembly Pharmaceuticals’ common stock issued and outstanding immediately prior to the merger were assumed by the Company and became exercisable for an aggregate of 621,651 596,239 Number of Shares Weighted Average Exercise Price Total Intrinsic Value Outstanding as of December 31, 2016 4,457,251 $ 7.14 $ 23,258,604 Granted 645,750 22.77 7,844,114 Exercised (142,911) 8.15 - Forfeited (100,410) 10.74 - Outstanding as of September 30, 2017 4,859,680 $ 9.12 $ 125,399,870 Options vested and exercisable 3,273,721 $ 6.71 $ 92,348,773 Nine Months Ended September 30, 2017 2016 Exercise price $12.81 - $25.96 $5.84 - $8.14 Expected stock price volatility 83.3% - 87.0% 86.5% - 91.8% Risk-free rate of interest 2.02% - 2.23% 1.36% - 1.94% Term (years) 5.5 - 7.0 5.4 - 7.0 Future Stock Option Compensation Expenses Three Months Ended December 31, 2017 $ 2,345,132 Year Ended December 31, 2018 5,134,745 Year Ended December 31, 2019 1,507,901 Year Ended December 31, 2020 511,557 Year Ended December 31, 2021 27,595 Total $ 9,526,930 Unamortized stock-based compensation expense amounted to approximately $ 9.5 1.4 0 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Research and development $ 1,557,298 $ 772,835 $ 3,735,494 $ 2,341,842 General and administrative 1,039,803 282,208 2,097,516 1,691,194 Total stock-based compensation expense $ 2,597,101 $ 1,055,043 $ 5,833,010 $ 4,033,036 Warrants There was no warrant activity for the nine months ended September 30, 2017. The weighted average remaining contractual life of outstanding warrants to purchase 16,909 2.7

Collaboration Agreement

Collaboration Agreement	9 Months Ended
	Sep. 30, 2017
Organization, Business and Basis Of Presentation [Abstract]
Collaboration Agreement	Note 7 - Collaboration Agreement On January 6, 2017, the Company entered into the Collaboration Agreement with Allergan to develop and commercialize select microbiome gastrointestinal programs. Pursuant to the Collaboration Agreement, the Company granted Allergan an exclusive worldwide license to certain of its intellectual property, including its intellectual property arising under the Collaboration Agreement, to develop and commercialize licensed compounds for ulcerative colitis (UC), Crohn’s disease, and irritable bowel syndrome (IBS). Under the Collaboration Agreement, Allergan and the Company will collaborate on research and development activities with respect to the licensed compounds in accordance with a mutually agreed upon research and development plan. Pursuant to the terms of the Collaboration Agreement, in connection with the closing of the transaction on February 10, 2017, Allergan paid the Company an upfront payment of $ 50 the Company is eligible to receive up to approximately $630 million in payments related to seven development milestones and up to approximately $2.15 billion in payments related to 12 commercial development and sales milestones in connection with the successful development and commercialization of licensed compounds for up to six different indications. 75 In the event any pre-POC development costs exceed $75 million in the aggregate, the Company may elect either (a) to fund ⅓ of such costs in excess of $75 million or (b) to allow Allergan to deduct from future development milestone payments ⅓ of the development costs funded by Allergan in excess of $75 million plus a premium of 25%. Allergan may terminate the Collaboration Agreement for convenience at any time upon either 90 days’ (prior to the initiation of the first POC trial of a licensed product) or 120 days’ (after the initiation of the first POC trial of a licensed product), as applicable, advance written notice to the Company. The Collaboration Agreement also contains customary provisions for termination by either party, including in the event of breach of the Collaboration Agreement, subject to cure. The Collaboration Agreement meets the definition of a collaborative arrangement and a multiple-element arrangement. The Company concluded that there were two significant deliverables under the Collaboration Agreement for each of four indicators—the licenses and the research and development services—but that the license does not have stand-alone value as Allergan cannot obtain value from the license without the research and development services, which the Company is uniquely able to perform. The deferred revenue will be amortized over a 10 50.0 5.0 45.0 12.5 1.3 3.2 1.4 2.5

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8 - Commitments and Contingencies Real Property Leases The Company leases office space for corporate functions in Carmel, Indiana under a lease agreement that expires in August 2023. The leased location in Carmel, Indiana supports both the HBV-cure and Microbiome programs. The Company leases office and laboratory space in San Francisco, California under a sublease that was to expire December 31, 2017. The Company exercised its right to extend the term of the sublease until June 30, 2018. The Company will document the terms of the extension in the fourth quarter of 2017 and anticipates that the lease will be extended until December 31, 2018. The Company also conducted research activities for the HBV-cure program at laboratory space leased from Indiana University at Bloomington, Indiana until May 2017. The Company transferred the activities that it performed at Indiana University to its Carmel, Indiana and San Francisco, California locations. The Company also conducts research activities for the Microbiome program at office and laboratory space in Groton, Connecticut under a lease that expires in March 2018. The Company ceased leasing office and laboratory space from the University of Florida Research Foundation in Alachua, Florida in May 2017. The total leasing expenses for the three months ended September 30, 2017 and 2016 were approximately $ 0.4 0.3 1.1 1.1 Equipment Lease Pursuant to a Master Lease agreement dated November 25, 2014, the Company leases certain equipment. The equipment lease expense for the three months ended September 30, 2017 and 2016 amounted to approximately $200,000 and $ 227,000 560 483,000 2020 1.9 Litigation The Company is not a party to any material legal proceedings and is not aware of any claims or actions pending or threatened against it. From time to time, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities.

Summary of Significant Accoun17

Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of presentation	Basis of Presentation The accompanying condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the U.S. Securities and Exchange Commission (SEC) and on the same basis as the Company prepares its annual audited consolidated financial statements. The condensed consolidated balance sheet at September 30, 2017, condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2017 and 2016, condensed consolidated statements of cash flows for the nine months ended September 30, 2017 and 2016, and condensed consolidated statement of changes in stockholders’ equity for the nine months ended September 30, 2017 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, that the Company considers necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The results for the three and nine months ended September 30, 2017 are not necessarily indicative of results to be expected for the year ending December 31, 2017 or for any future interim period. The consolidated balance sheet at December 31, 2016 has been derived from audited financial statements; however, it does not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2016, and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 2, 2017 (the 2016 Annual Report).
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates inherent in the preparation of the accompanying financial statements include recoverability and useful lives (indefinite or finite) of intangible assets, assessment of impairment of goodwill, and the fair value of stock options and warrants granted to employees, consultants, directors, investors, licensors, placement agents and underwriters. In addition, with the Company entering into the Collaboration Agreement, the Company believes its condensed consolidated financial statements are also impacted by the following accounting estimates and judgments: (i) identifying deliverables under collaboration agreements involving multiple elements and determining whether such deliverables are separable from other aspects of the contractual relationship; (ii) estimating the selling price of deliverables for the purpose of allocating arrangement consideration for revenue recognition; and (iii) estimating the periods over which the allocated consideration for deliverables is recognized. The Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates and assumptions.
Significant Accounting Policies	Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the 2016 Annual Report other than the adoption of the following revenue recognition policy.
Revenue Recognition	Revenue Recognition The Company recognizes revenue when each of the following four criteria is met: (i) persuasive evidence of an arrangement exists; (ii) products are delivered or services are rendered; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. The Company recognizes revenue under the Collaboration Agreement based on the relevant accounting literature. Under this guidance, multiple elements or deliverables may include (i) grants of licenses, or options to obtain licenses, to intellectual property, (ii) research and development services, (iii) participation on joint research and/or joint development committees, and/or (iv) manufacturing or supply of services. The payments entities may receive under these arrangements typically include one or more of the following: non-refundable, upfront license fees; option exercise fees; funding of research and/or development efforts; amounts due upon the achievement of specified objectives; and/or royalties on future product sales. Multiple-element arrangements require the separability of deliverables included in an arrangement into different units of accounting and the allocation of arrangement consideration to the units of accounting. The evaluation of multiple-element arrangements requires management to make judgments about (i) the identification of deliverables, (ii) whether such deliverables are separable from the other aspects of the contractual relationship, (iii) the estimated selling price of each deliverable, and (iv) the expected period of performance for each deliverable. To determine the units of accounting under a multiple-element arrangement, management evaluates certain separation criteria, including whether the deliverables have stand-alone value, based on the relevant facts and circumstances for each arrangement. Management then estimates the selling price for each unit of accounting and allocates the arrangement consideration to each unit using the relative selling price method. The relative selling price for each deliverable is determined using vendor specific objective evidence (VSOE), of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists, we use our best estimate of the selling price for the deliverable. The allocated consideration for each unit of accounting is recognized based on the method most appropriate for that unit of account and in accordance with the revenue recognition criteria detailed above. If there are deliverables in an arrangement that are not separable from other aspects of the contractual relationship, they are treated as a combined unit of accounting, with the allocated revenue for the combined unit recognized in a manner consistent with the revenue recognition applicable to the final deliverable in the combined unit. Payments received prior to satisfying the relevant revenue recognition criteria are recorded as deferred revenue in the accompanying balance sheets and recognized as revenue when the related revenue recognition criteria are met. The Collaboration Agreement provides for non-refundable milestone payments. The Company recognizes revenue that is contingent upon the achievement of a substantive milestone in its entirety in the period in which the milestone is achieved. A milestone is considered substantive when the consideration payable to the Company for such milestone (i) is consistent with the Company’s performance necessary to achieve the milestone or the increase in value to the collaboration resulting from the Company’s performance, (ii) relates solely to the Company’s past performance and (iii) is reasonable relative to all of the other deliverables and payments within the arrangement. In making this assessment, the Company considers all facts and circumstances relevant to the arrangement, including factors such as the scientific, regulatory, commercial and other risks that must be overcome to achieve the milestone, the level of effort and investment required to achieve the milestone and whether any portion of the milestone consideration is related to future performance or deliverables. The Collaboration Agreement provides Allergan with options to license additional intellectual property rights, or purchase additional research, development, or supply services. The Company concluded that these were "substantive options" under the multiple-element arrangement guidance, and accordingly, associated fees have not been considered in allocating contract consideration among deliverables with stand-alone value. If Allergan exercises one or more of these options, the associated revenue would be recognized using the method most appropriate for the particular deliverable. The Company will periodically review the estimated performance periods under the Collaboration Agreement, which provides for non-refundable upfront payments and fees. The Company will adjust the periods over which revenue should be recognized when appropriate to reflect changes in assumptions relating to the estimated performance periods. The Company could accelerate revenue recognition in the event of early termination of programs or if the Company’s expectations change. Alternatively, the Company could decelerate revenue recognition if programs are extended or delayed. While such changes to the Company’s estimates have no impact on the Company’s reported cash flows, the amount of revenue recorded in future periods could be materially impacted. The Company records revenues related to the reimbursement of costs incurred under the Collaboration Agreement where the Company acts as a principal, controls the research and development activities and bears credit risk. Under the Collaboration Agreement, the Company is reimbursed for associated out-of-pocket costs. The gross amount of these pass-through reimbursed costs is reported as revenue in the accompanying statements of operations, while the actual expenses for which the Company is reimbursed are reflected as research and development costs. The Company has also accounted for the milestone payments under ASC 605 Revenue Recognition - Milestone Method
Loss per Share of Common Stock	Loss per Share of Common Stock Basic net loss per share of common stock excludes dilution and is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share of common stock reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity unless inclusion of such shares would be anti-dilutive. Since the Company has only incurred losses, basic and diluted net loss per share is the same. September 30, 2017 2016 Warrants to purchase common stock 16,909 16,909 Options to purchase common stock 4,859,680 4,377,201 Total 4,876,589 4,394,110
Recent Accounting Pronouncements	In March 2016, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers: (Topic 606) Identifying Performance Obligations and Licensing In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases (Topic 840) In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments, In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting

Summary of Significant Accoun18

Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Tables)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Securities that could potentially result in diluted loss per share in the future that were not included in the computation of diluted loss per share at September 30, 2017 and 2016 are as follows: September 30, 2017 2016 Warrants to purchase common stock 16,909 16,909 Options to purchase common stock 4,859,680 4,377,201 Total 4,876,589 4,394,110

Marketable Securities (Tables)

Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-sale Securities Reconciliation	Marketable securities consist of the following as of September 30, 2017 and December 31, 2016: September 30, 2017 Gross Unrealized Gross Unrealized Amortized Cost Gain (1) Loss (1) Fair Value Short-term available-for-sale securities Corporate bonds $ 39,170,010 $ 10,689 $ (127,878) $ 39,052,821 Long-term available-for-sale securities Corporate bonds $ 1,006,110 $ - $ (1,800) $ 1,004,310 Total $ 40,176,120 $ 10,689 $ (129,678) $ 40,057,131 December 31, 2016 Gross Unrealized Gross Unrealized Amortized Cost Gain (1) Loss (1) Fair Value Short-term available-for-sale securities Corporate bonds $ 22,032,191 $ 3,190 $ (473,056) $ 21,562,325 Government and agency obligations 1,225,000 661 - 1,225,661 Municipal bonds 1,596,160 4,257 - 1,600,417 24,853,351 8,108 (473,056) 24,388,403 Long-term available-for-sale securities Corporate bonds 2,434,251 1,502 - 2,435,753 2,434,251 1,502 - 2,435,753 Total $ 27,287,602 $ 9,610 $ (473,056) $ 26,824,156 (1) Gross unrealized gain (loss) is pre-tax.
Schedule Of Available For Sale Securities Fair Value Measurement Categories	The fair value of marketable securities was classified into fair value measurement categories as of September 30, 2017 and December 31, 2016 as follows: September 30, December 31, 2017 2016 Quoted prices in active markets for identical assets (Level 1) $ - $ - Quoted prices for similar assets observable in the marketplace (Level 2) 40,057,131 26,824,156 Significant unobservable inputs (Level 3) - - Total $ 40,057,131 $ 26,824,156
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	The following table shows the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2017. Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate bonds $ 4,504,310 $ (3,130) $ 28,616,806 $ (126,548) $ 33,121,116 $ (129,678) Total $ 4,504,310 $ (3,130) $ 28,616,806 $ (126,548) $ 33,121,116 $ (129,678)

Property, Plant and Equipment20

Property, Plant and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	September 30, December 31, Useful life (Years) 2017 2016 Computer hardware and software 3 $ 86,228 $ 86,228 Lab equipment 3 to 5 282,101 253,735 Office equipment 3 to 5 1,109 1,109 Leasehold improvement 1 68,213 68,213 Construction in progress (1) N/A 474,749 - Total property, plant and equipment 912,400 409,285 Less: Accumulated depreciation and amortization (319,274) (194,598) Property, plant and equipment, net $ 593,126 $ 214,687 (1) Construction in progress include the buildout and completion of the manufacturing facility for microbiome platform.

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Schedule Accrued Expenses	Accrued expenses consist of the following: September 30, December 31, 2017 2016 Accrued expenses: Salaries, bonuses and employee benefits $ 3,588,019 $ 2,884,000 Accrued severance expenses - 241,737 Research and development expenses 2,166,699 916,674 General and administrative expenses 597,794 710,412 Total accrued expenses $ 6,352,512 $ 4,752,823

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Stockholders' Transactions [Abstract]
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award	A summary of the Company’s option activity and related information for the nine-month period ended September 30, 2017 is as follows: Number of Shares Weighted Average Exercise Price Total Intrinsic Value Outstanding as of December 31, 2016 4,457,251 $ 7.14 $ 23,258,604 Granted 645,750 22.77 7,844,114 Exercised (142,911) 8.15 - Forfeited (100,410) 10.74 - Outstanding as of September 30, 2017 4,859,680 $ 9.12 $ 125,399,870 Options vested and exercisable 3,273,721 $ 6.71 $ 92,348,773
Assumptions for Weighted Average Fair Value of Options Granted	The fair value of the options granted for the nine months ended September 30, 2017 and 2016, were based on the following assumptions: Nine Months Ended September 30, 2017 2016 Exercise price $12.81 - $25.96 $5.84 - $8.14 Expected stock price volatility 83.3% - 87.0% 86.5% - 91.8% Risk-free rate of interest 2.02% - 2.23% 1.36% - 1.94% Term (years) 5.5 - 7.0 5.4 - 7.0
Estimated Future Stock Based Expenses Relating to Unvested Stock Options	Estimated future stock-based compensation expense relating to unvested stock options is as follows: Future Stock Option Compensation Expenses Three Months Ended December 31, 2017 $ 2,345,132 Year Ended December 31, 2018 5,134,745 Year Ended December 31, 2019 1,507,901 Year Ended December 31, 2020 511,557 Year Ended December 31, 2021 27,595 Total $ 9,526,930
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	Stock-based compensation expense for the three and nine months ended September 30, 2017 and 2016 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Research and development $ 1,557,298 $ 772,835 $ 3,735,494 $ 2,341,842 General and administrative 1,039,803 282,208 2,097,516 1,691,194 Total stock-based compensation expense $ 2,597,101 $ 1,055,043 $ 5,833,010 $ 4,033,036

Nature of Business - Additional

Nature of Business - Additional Information (Details) - USD ($) $ in Millions	Feb. 10, 2017	Sep. 30, 2017
Overview [Line Items]
Licenses Revenue	$ 50
Revenue Recognition, Milestone Method, Description		the Company is eligible to receive up to approximately $630 million in payments related to seven development milestones and up to approximately $2.15 billion in payments related to 12 commercial development and sales milestones in connection with the successful development and commercialization of licensed compounds for up to six different indications
Allergan Pharmaceuticals International Limited [Member]
Overview [Line Items]
Agreed To Share Maximum Amount Development Cost	$ 75
Revenue Recognition, Milestone Method, Description	the Company is eligible to receive up to approximately $630 million in payments related to seven development milestones and up to approximately $2.15 billion in payments related to 12 commercial development and sales milestones in connection with the successful development and commercialization of licensed compounds for up to six different indications

Summary of Significant Accoun24

Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Details) - shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,876,589	4,394,110
Warrants To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	16,909	16,909
Options To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,859,680	4,377,201

Marketable Securities (Details)

Marketable Securities (Details) - USD ($)		Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		$ 40,176,120	$ 27,287,602
Gross Unrealized Gain	[1]	10,689	9,610
Gross Unrealized Loss	[1]	(129,678)	(473,056)
Fair Value		40,057,131	26,824,156
Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost			24,853,351
Gross Unrealized Gain	[1]		8,108
Gross Unrealized Loss	[1]		(473,056)
Fair Value			24,388,403
Short-term Investments [Member] | Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		39,170,010	22,032,191
Gross Unrealized Gain	[1]	10,689	3,190
Gross Unrealized Loss	[1]	(127,878)	(473,056)
Fair Value		39,052,821	21,562,325
Short-term Investments [Member] | US Government Agencies Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost			1,225,000
Gross Unrealized Gain	[1]		661
Gross Unrealized Loss	[1]		0
Fair Value			1,225,661
Short-term Investments [Member] | Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost			1,596,160
Gross Unrealized Gain	[1]		4,257
Gross Unrealized Loss	[1]		0
Fair Value			1,600,417
Long-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost			2,434,251
Gross Unrealized Gain	[1]		1,502
Gross Unrealized Loss	[1]		0
Fair Value			2,435,753
Long-term Investments [Member] | Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,006,110	2,434,251
Gross Unrealized Gain	[1]	0	1,502
Gross Unrealized Loss	[1]	(1,800)	0
Fair Value		$ 1,004,310	$ 2,435,753
[1]	Gross unrealized gain (loss) is pre-tax.

Marketable Securities (Details

Marketable Securities (Details 1) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities	$ 40,057,131	$ 26,824,156
Fair Value, Inputs, Level 1 [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities	0	0
Fair Value, Inputs, Level 2 [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities	40,057,131	26,824,156
Fair Value, Inputs, Level 3 [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities	$ 0	$ 0

Marketable Securities (Detail27

Marketable Securities (Details 2)	Sep. 30, 2017USD ($)
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	$ 4,504,310
Unrealized Losses, Less than 12 Months	(3,130)
Fair Value, 12 Months or More	28,616,806
Unrealized Losses,12 Months or More	(126,548)
Fair Value, Total	33,121,116
Unrealized Losses, Total	(129,678)
Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value, Less than 12 Months	4,504,310
Unrealized Losses, Less than 12 Months	(3,130)
Fair Value, 12 Months or More	28,616,806
Unrealized Losses,12 Months or More	(126,548)
Fair Value, Total	33,121,116
Unrealized Losses, Total	$ (129,678)

Marketable Securities - Additio

Marketable Securities - Additional Information (Details)	9 Months Ended
	Sep. 30, 2017
Short-term Investments [Member]
Available For Sale Securities Maturity Term	less than one year
Other Long-term Investments [Member]
Available For Sale Securities Maturity Term	1.1 years

Property, Plant and Equipment29

Property, Plant and Equipment, Net (Details) - USD ($)		9 Months Ended
		Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Total property, plant and equipment		$ 912,400	$ 409,285
Less: Accumulated depreciation and amortization		(319,274)	(194,598)
Property, plant and equipment, net		593,126	214,687
Computer hardware and software [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment		$ 86,228	86,228
Property, Plant and Equipment, Useful Life		3 years
Lab equipment [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment		$ 282,101	253,735
Lab equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life		3 years
Lab equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life		5 years
Office equipment [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment		$ 1,109	1,109
Office equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life		3 years
Office equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life		5 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment		$ 68,213	68,213
Property, Plant and Equipment, Useful Life		1 year
Construction in progress [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment	[1]	$ 474,749	$ 0
[1]	Construction in progress include the buildout and completion of the manufacturing facility for microbiome platform.

Property, Plant and Equipment30

Property, Plant and Equipment, Net - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Line Items]
Depreciation	$ 42,000	$ 18,000	$ 124,676	$ 55,250

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Accrued expenses:
Salaries, bonuses and employee benefits	$ 3,588,019	$ 2,884,000
Accrued severance expenses	0	241,737
Research and development expenses	2,166,699	916,674
General and administrative expenses	597,794	710,412
Total accrued expenses	$ 6,352,512	$ 4,752,823

Stockholders' Equity (Details)

Stockholders' Equity (Details)	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Number of Shares
Option, Exercised	(139,019)
Stock Option [Member]
Number of Shares
Option, Outstanding at beginning of period	4,457,251
Option, Granted	645,750
Option, Exercised	(142,911)
Option, Forfeited	(100,410)
Option, Outstanding at end of period	4,859,680
Options vested and exercisable	3,273,721
Weighted Average Exercise Price
Option, Outstanding at beginning of period | $ / shares	$ 7.14
Option, Granted | $ / shares	22.77
Option, Exercised | $ / shares	8.15
Option, Forfeited | $ / shares	10.74
Option, Outstanding at end of period | $ / shares	9.12
Options vested and exercisable | $ / shares	$ 6.71
Total Intrinsic Value
Option, Outstanding at beginning of period | $	$ 23,258,604
Option, Granted | $	7,844,114
Option, Exercised | $	0
Option, Forfeited | $	0
Option, Outstanding at end of period | $	125,399,870
Options vested and exercisable | $	$ 92,348,773

Stockholders' Equity (Details 1

Stockholders' Equity (Details 1) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Maximum [Member]
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Exercise price	$ 25.96	$ 8.14
Expected stock price volatility	87.00%	91.80%
Risk-free rate of interest	2.23%	1.94%
Term (years)	7 years	7 years
Minimum [Member]
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Exercise price	$ 12.81	$ 5.84
Expected stock price volatility	83.30%	86.50%
Risk-free rate of interest	2.02%	1.36%
Term (years)	5 years 6 months	5 years 4 months 24 days

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2)	Sep. 30, 2017USD ($)
Stockholders Equity Note [Line Items]
Three Months Ended December 31, 2017	$ 2,345,132
Year ended December 31, 2018	5,134,745
Year ended December 31, 2019	1,507,901
Year ended December 31, 2020	511,557
Year Ended December 31, 2021	27,595
Total	$ 9,526,930

Stockholders' Equity (Details 3

Stockholders' Equity (Details 3) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 2,597,101	$ 1,055,043	$ 5,833,010	$ 4,033,036
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	1,557,298	772,835	3,735,494	2,341,842
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 1,039,803	$ 282,208	$ 2,097,516	$ 1,691,194

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ in Millions	Jun. 02, 2016	Sep. 30, 2017	Apr. 03, 2017	Jul. 31, 2014
Stockholders Equity Note [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance			800,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		139,019
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 4 months 24 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 9.5
Proceeds from Stock Options Exercised		$ 1
Class of Warrant or Right, Outstanding		16,909
Share-based Compensation Arrangement by Share-based Payment Award, Forfeiture Rate		0.00%
Warrant [Member]
Stockholders Equity Note [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term		2 years 8 months 12 days
Amended And Restated 2014 Plan [Member]
Stockholders Equity Note [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized		73,876
Common Stock [Member]
Stockholders Equity Note [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number				621,651
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number		596,239
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		131,519
2010 Stock Incentive Plan [Member]
Stockholders Equity Note [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number		609,334
2014 Stock Incentive Plan [Member]
Stockholders Equity Note [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number		3,506,157
Common Stock, Capital Shares Reserved for Future Issuance	4,160,000
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross		495,305
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	1,600,000
2017 Stock Incentive Plan [Member]
Stockholders Equity Note [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number		147,950
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		652,050

Collaboration Agreement - Addit

Collaboration Agreement - Additional Information (Details) - USD ($)	Feb. 10, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration revenue		$ 2,659,613	$ 0	$ 5,703,293	$ 0
Deferred Revenue,Amortization Period Over Service Tenure				10 years
Licenses Revenue	$ 50,000,000
Deferred Revenue, Current		4,995,894		$ 4,995,894		$ 0
Deferred Revenue, Noncurrent		41,814,946		$ 41,814,946		0
Revenue Recognition, Milestone Method, Description				the Company is eligible to receive up to approximately $630 million in payments related to seven development milestones and up to approximately $2.15 billion in payments related to 12 commercial development and sales milestones in connection with the successful development and commercialization of licensed compounds for up to six different indications
Cost of Reimbursable Expense		1,400,000		$ 2,500,000
Accounts receivable from collaboration		1,400,374		1,400,374		$ 0
Collaborative Arrangement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration revenue		1,300,000		3,200,000
Deferred Revenue, Current		5,000,000		5,000,000
Deferred Revenue, Noncurrent		$ 45,000,000		45,000,000
Revenue Recognition, Multiple-deliverable Arrangements, Determination of Selling Price, Amount				$ 12,500,000
Allergan Pharmaceuticals International Limited [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue Recognition, Milestone Method, Description	the Company is eligible to receive up to approximately $630 million in payments related to seven development milestones and up to approximately $2.15 billion in payments related to 12 commercial development and sales milestones in connection with the successful development and commercialization of licensed compounds for up to six different indications
Description Of Agree To Share Development Cost	In the event any pre-POC development costs exceed $75 million in the aggregate, the Company may elect either (a) to fund of such costs in excess of $75 million or (b) to allow Allergan to deduct from future development milestone payments of the development costs funded by Allergan in excess of $75 million plus a premium of 25%.
Proceeds From Upfront Payment	$ 50,000,000
Agreed To Share Maximum Amount Development Cost	$ 75,000,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Commitments and Contingencies Disclosure [Line Items]
Operating Leases, Rent Expense	$ 400,000	$ 300,000	$ 1,100,000	$ 1,100,000
Equipment Lease [Member]
Commitments and Contingencies Disclosure [Line Items]
Operating Leases, Rent Expense	200,000	$ 227,000	560,000	$ 483,000
Operating Leases, Future Minimum Payments Due	$ 1,900,000		$ 1,900,000
Operating Lease Expiration Year			2,020