Ardelyx (ARDX) 10-Q 12 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 09, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	ARDX
Entity Registrant Name	Ardelyx, Inc.
Entity Central Index Key	1,437,402
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		25,956,941

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 129,047	$ 107,286
Accounts receivable		2,584
Prepaid expenses and other current assets	4,424	1,209
Total current assets	133,471	111,079
Property and equipment, net	4,391	2,131
Other assets	104	104
Restricted cash	100	100
Total assets	138,066	113,414
Current liabilities:
Accounts payable	2,714	3,129
Accrued compensation and benefits	1,697	1,648
Accrued and other liabilities	8,173	780
Deferred revenue, current portion		15,979
Total current liabilities	12,584	21,536
Other long-term liabilities	352	122
Deferred revenue, non-current		31,074
Total liabilities	$ 12,936	$ 52,732
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value; 5,000,000 shares authorized as of September 30, 2015 and December 31, 2014, respectively; no shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively
Common stock, $0.0001 par value; 300,000,000 shares authorized as of September 30, 2015 and December 31, 2014, respectively; 25,954,941 and 18,589,245 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively.	$ 3	$ 2
Additional paid-in capital	209,615	132,547
Accumulated deficit	(84,488)	(71,867)
Total stockholders' equity	125,130	60,682
Total liabilities and stockholders' equity	$ 138,066	$ 113,414

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	25,954,941	18,589,245
Common stock, shares outstanding	25,954,941	18,589,245

Condensed Statements of Operati

Condensed Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Licensing revenue		$ 4,767	$ 21,611	$ 14,509
Collaborative development revenue		2,831	2,415	10,775
Total revenue		7,598	24,026	25,284
Operating expenses:
Research and development	$ 14,705	5,694	27,101	18,514
General and administrative	3,374	1,823	9,438	4,401
Total operating expenses	18,079	7,517	36,539	22,915
Income from operations	(18,079)	81	(12,513)	2,369
Other expense, net	(77)	(7)	(138)	(19)
Change in fair value of preferred stock warrant liability			0	(1,593)
(Loss) income before provision for income taxes	(18,156)	74	(12,651)	757
Benefit from income taxes	30		30
Net (loss) income and comprehensive (loss) income	$ (18,126)	$ 74	$ (12,621)	$ 757
Basic net (loss) income per share attributable to common stockholders	$ (0.70)	$ 0	$ (0.58)	$ 0
Diluted net (loss) income per share attributable to common stockholders	$ (0.70)	$ 0	$ (0.58)	$ 0
Shares used in computing basic net (loss) income per share attributable to common stockholders	25,930,928	18,374,277	21,859,383	7,476,642
Shares used in computing diluted net (loss) income per share attributable to common stockholders	25,930,928	19,133,217	21,859,383	7,476,642

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net (loss) income	$ (12,621)	$ 757
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation expense	540	202
Amortization of deferred financing costs	88	0
Stock-based compensation	1,877	484
Change in fair value of preferred stock warrant liability	0	1,593
Loss from disposal of fixed assets	64	0
Changes in operating assets and liabilities:
Accounts receivable	2,584	3,776
Prepaid expenses and other assets	(3,107)	(370)
Accounts payable	(281)	(1,262)
Accrued compensation and benefits	48	179
Accrued and other liabilities	7,624	689
Deferred revenue	(47,053)	11,141
Net cash (used in) provided by operating activities	(50,237)	17,189
Investing activities
Purchases of property and equipment	(3,000)	(824)
Net cash used in investing activities	(3,000)	(824)
Financing activities
Proceeds from issuance of common stock, net of issuance costs	74,322	61,241
Proceeds from exercise of stock options	646	3
Other	30	0
Net cash provided by financing activities	74,998	61,244
Net increase in cash and cash equivalents	21,761	77,609
Cash and cash equivalents at beginning of period	107,286	34,435
Cash and cash equivalents at end of period	129,047	112,044
Supplemental cash flow disclosure:
Cash paid during the period for income taxes	$ 69	$ 0

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Organization and Basis of Presentation	NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Ardelyx, Inc., or the Company, is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of innovative, minimally-systemic therapeutic drugs that work exclusively in the gastrointestinal, or GI, tract to treat cardio-renal and GI diseases. The Company has developed a proprietary drug discovery and design platform enabling it, in a rapid and cost-efficient manner, to discover and design novel drug candidates. Utilizing its platform, the Company discovered and designed its lead product candidate, tenapanor, which in a Phase 2b clinical study has demonstrated the ability to improve the symptoms of constipation-predominant irritable bowel syndrome, or IBS-C. In a separate Phase 2b clinical trial, tenapanor demonstrated the ability to treat hyperphosphatemia, or elevated serum phosphorus, in chronic kidney disease, or CKD, patients on dialysis. The Company is developing another drug candidate, RDX022, for the treatment of hyperkalemia, or elevated serum potassium, in patients with CKD, and in patients with heart failure, or HF. The Company has several other drug candidates in earlier stages of research and development focused in cardio-renal and GI diseases including RDX009, a secretagogue of glucagon-like peptide-1, or GLP-1, and glucagon-like peptide-2, or GLP-2, and RDX013, a potassium secretagogue. Basis of Presentation These unaudited condensed financial statements and the related footnote information of the Company have been prepared pursuant to the requirements of the Securities and Exchange Commission, or the SEC, for interim reporting. As permitted under those rules and regulations, certain footnotes or other financial information that are normally required by U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of the Company’s management, the accompanying interim unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the information for the periods presented. The results for the three and nine months ended September 30, 2015 are not necessarily indicative of results to be expected for the entire year ending December 31, 2015 or future operating periods. The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2014, included in the Company’s Annual Report on Form 10-K filed with the SEC (the “2014 Form 10-K”). The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date, as filed with the 2014 Form 10-K.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although management believes these estimates are based upon reasonable assumptions within the bounds of its knowledge of the Company’s business and operations, actual results could differ materially from those estimates. Revenue Recognition Revenue from research activities made under collaboration partnership agreements are recognized as the services are provided and when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable, and collectability is reasonably assured. Revenue generated from research and licensing agreements typically includes up-front signing or license fees, cost reimbursements, research services, minimum sublicense fees, milestone payments, and royalties on future licensees’ product sales. For revenue agreements with multiple-element arrangements, such as license and development agreements, the Company allocates revenue to each deliverable based on the relative selling price of each deliverable. When applying the relative selling price method, the Company determines the selling price for each deliverable using vendor-specific objective evidence or third-party evidence. If neither exists, the Company uses its best estimate of selling price for that deliverable. Revenue allocated is then recognized when the four basic revenue recognition criteria are met for each deliverable. The Company recognizes revenue from upfront payments ratably over the term of its estimated period of performance under the agreement which is recorded as licensing revenue. Reimbursements for development costs incurred under the Company’s license agreement with AstraZeneca were classified as collaborative development revenue. The Company recognizes cost reimbursement revenue under collaboration partnership agreements as the related research and development costs for services are rendered. Deferred revenue represents the portion of research or license payments received which has not been earned. Revenues from milestones, if they are nonrefundable and deemed substantive, are recognized upon successful accomplishment of the milestones. To the extent that non-substantive milestones are achieved and the Company has remaining performance obligations, milestones are deferred and recognized as revenue over the estimated remaining period of performance. The Company will recognize revenue associated with the non-substantive milestones upon achievement of the milestone if there are no undelivered elements and it has no remaining performance obligations. The Company will account for sales-based milestones as royalties that will be recognized as revenue upon achievement of the milestone. Recent Accounting Pronouncements In May, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The Company has reviewed all other significant newly-issued accounting pronouncements and concluded that they either are not applicable to the Company’s operations or that no material effect is expected on its condensed financial statements as a result of future adoption.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	NOTE 3. FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows: Level 1 – Valuations are based on quoted prices in active markets for identical assets or liabilities and readily accessible by us at the reporting date. Examples of assets and liabilities utilizing Level 1 inputs are certain money market funds, U.S. Treasuries and trading securities with quoted prices on active markets. Level 2 – Valuations based on inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Examples of assets and liabilities utilizing Level 2 inputs are U.S. government agency bonds, corporate bonds, commercial paper, certificates of deposit and over-the-counter derivatives. Level 3 – Valuations based on unobservable inputs in which there is little or no market data, which require us to develop our own assumptions. The following table sets forth the fair value of the Company’s financial assets measured on a recurring basis by level within the fair value hierarchy (in thousands): September 30, 2015 Total Level 1 Level 2 Level 3 Assets: Money market funds $ 125,730 $ 125,730 $ — $ — Certificates of deposit 100 — 100 — Total $ 125,830 $ 125,730 $ 100 $ — December 31, 2014 Total Level 1 Level 2 Level 3 Assets: Money market funds $ 105,410 $ 105,410 $ — $ — Certificates of deposit 100 — 100 — Total $ 105,510 $ 105,410 $ 100 $ — Where quoted prices are available in an active market, securities are classified as Level 1. The Company classifies money market funds as Level 1. When quoted market prices are not available for the specific security, then the Company estimates fair value by using benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. The Company classifies certificates of deposit as Level 2. In certain cases where there is limited activity or less transparency around inputs to valuation, securities are classified as Level 3. There were no transfers between Level 1 and Level 2 during the periods presented. The carrying amounts reflected in the condensed balance sheets for cash, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses approximate their fair values at September 30, 2015 and December 31, 2014, due to their short-term nature.

Collaboration and Licensing Agr

Collaboration and Licensing Agreements	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaboration and Licensing Agreements	NOTE 4. COLLABORATION AND LICENSING AGREEMENTS AstraZeneca AB (“AstraZeneca”) In October 2012, the Company entered into a collaboration partnership with AstraZeneca for the worldwide development and commercialization of tenapanor. Under the terms of the AstraZeneca collaboration partnership agreement, or the AstraZeneca Agreement, the Company received an up-front license fee of $35.0 million in October 2012, a $15.0 million payment in December 2013 and a $25.0 million payment in May 2014. The amounts were recorded as deferred revenue when received and were recognized as revenue on a straight-line basis over the remaining estimated period of performance under the AstraZeneca Agreement, which during the three months ended March 31, 2015, we estimated to be December 2017. In June 2015, the Company entered into a termination agreement with AstraZeneca (the “Termination Agreement”) pursuant to which all licenses granted to AstraZeneca to the Company’s portfolio of NHE3 inhibitors, including the Company’s lead product candidate, tenapanor, were terminated, except for the limited purpose of allowing AstraZeneca to satisfy its obligations under the Termination Agreement. Under the terms of the Termination Agreement, the Company agreed to pay AstraZeneca certain amounts for the return of the licenses granted to it, including (a) an upfront fee of $15.0 million, (b) future royalties at a royalty rate of 10% of net sales of tenapanor or other NHE3 products by the Company or its licensees, and (c) 20% of non-royalty revenue received from a new collaboration partner should the Company elect to license, or otherwise provide rights to develop and commercialize tenapanor, or another NHE3 inhibitor. The amounts payable by the Company as described in (a)-(c) are capped at the aggregate amount of $90.0 million. The Company also paid AstraZeneca $10.0 million as reimbursement for certain research and development expenses incurred by AstraZeneca under the collaboration agreement during 2015 and in consideration of the acceleration of the transfer of information and materials to the Company. In addition, AstraZeneca is obligated to supply the Company with clinical trial materials, drug substance and drug product. The maximum amount that the Company is obligated to pay for such materials was set at $10 million in the Termination Agreement, which maximum amount was subsequently reduced to $8.0 million pursuant to an amendment to the Termination Agreement (“Amendment Number One”). As the AstraZeneca Agreement was terminated in June 2015, the Company recognized the remaining deferred revenue balance of $43.1 million during the three months ended June 30, 2015. Also in the three months ended June 30, 2015, the Company recorded the $15.0 million upfront payment for the return of the licenses as well as the $10.0 million payment for reimbursement of research and development expenses and the acceleration of the transfer of information and materials as a reduction in licensing revenue in the condensed statements of operations and comprehensive loss. The Company recorded $7.3 million in expenses incurred for the tenapanor clinical trial material from AstraZeneca during the three months ended September 30, 2015. Sanofi SA (“Sanofi”) In February 2014, the Company entered into a license option and license agreement with Sanofi (the“Sanofi Agreement”) for its phosphate transport NaP2b inhibitor program. Under the terms of the Sanofi Agreement, the Company granted Sanofi an exclusive worldwide license to conduct research utilizing the Company’s small molecule NaP2b inhibitors. In addition, Sanofi had the option to obtain an exclusive license to develop, manufacture and commercialize potential products under the agreement. Under the Sanofi Agreement, the Company received a payment of $1.25 million in March 2014, which was fully recognized as licensing revenue in May 2014 after the Company completed its obligation to provide to Sanofi the background know-how, listed patents, and materials described in the Sanofi Agreement. The Sanofi Agreement was terminated effective September 30, 2015 and all rights were returned to the Company. There was no payment associated with termination and the return of rights to the Company.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	NOTE 5. STOCK-BASED COMPENSATION The following table presents stock-based compensation expense recognized for stock options and the Company’s employee stock purchase program, the ESPP, in the Company’s statements of operations (in thousands): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Research and development $ 333 $ 240 $ 965 $ 314 General and administrative 379 82 912 170 Total $ 712 $ 322 $ 1,877 $ 484 At September 30, 2015, the Company had $5.6 million and $0.1 million of total unrecognized compensation expense, net of estimated forfeitures, related to stock option grants and purchase rights, respectively, that will be recognized over an average vesting period of 2.7 years and 0.4 years, respectively.

Net (Loss) Income Per Share Att

Net (Loss) Income Per Share Attributable to Common Stockholders	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Net (Loss) Income Per Share Attributable to Common Stockholders	NOTE 6. NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Basic net (loss) income per share attributable to common stockholders is calculated by dividing the net (loss) income by the weighted-average number of shares of common stock outstanding during the period, except as discussed in the following paragraph. Diluted net income per share attributable to common stockholders is calculated by dividing the net (loss) income by the weighted-average number of shares of common stock outstanding during the period, plus potentially dilutive common shares, consisting of stock options. The Company uses the treasury-stock method to compute diluted earnings per share with respect to its stock options and equivalents. For purposes of this calculation, options to purchase stock are considered to be potential common shares and are only included in the calculation of diluted net (loss) income per share when their effect is dilutive. Prior to the Company’s IPO of its common stock in June 2014, the Company’s Series A and Series B convertible preferred stock was entitled to receive dividends of up to $0.8181 and $0.2781 per share, respectively, prior and in preference to any declaration or payment of any dividend on common stock and thereafter participate pro rata on an as converted basis with the common stock holders on any distributions to common stockholders. The convertible preferred shares were therefore considered to be participating securities as were the unvested early exercised shares. As a result, the Company calculated the net income (loss) per share attributable to common stockholders using the two-class method. The convertible preferred stock and warrants were included in the calculation for the period of time they were outstanding during the nine months ended September 30, 2014. They were not reflected in the calculation of net income per share for the three months ended September 30, 2014 since they were converted in the second quarter. Accordingly, the net income (loss) attributable to common stockholders in 2014 is derived from the net income for the period and, in periods in which the Company has net income attributable to common stockholders, an adjustment is made for the noncumulative dividends and allocations of earnings to participating securities based on their outstanding shareholder rights. Under the two-class method, the net loss attributable to common stockholders is not allocated to the convertible preferred stock as the convertible preferred stock did not have a contractual obligation to share in the Company’s losses. Basic and diluted earnings per share attributable to common stockholders are calculated as follows (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Numerator: Net (loss) income $ (18,126 ) $ 74 $ (12,621 ) $ 757 Noncumulative dividends on convertible preferred stock — — — $ (757 ) Net (loss) income attributable to common stockholders, basic and diluted $ (18,126 ) $ 74 $ (12,621 ) $ — Denominator: Basic shares: Weighted average common shares outstanding 25,930,928 18,374,277 21,859,383 7,476,642 Dilutive shares: Weighted average effect of dilutive stock options — 758,940 — — 25,930,928 19,133,217 21,859,383 7,476,642 Net income per share attributable to common stockholders: Basic $ (0.70 ) $ — $ (0.58 ) $ — Diluted $ (0.70 ) $ — $ (0.58 ) $ — For the three and nine months ended September 30, 2015, the total number of anti-dilutive outstanding common stock options and private placement warrants excluded from the diluted net loss per share attributable to common stockholders computation was 1.8 million and 1.4 million, respectively. For the three and nine months ended September 30, 2014, the total number of anti-dilutive outstanding common stock options excluded from the diluted net income per share attributable to common stockholders computation was 0.1 million and 1.1 million, respectively.

Accrued and Other Liabilities

Accrued and Other Liabilities	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Accrued and Other Liabilities	NOTE 7. ACCRUED AND OTHER LIABILITIES Accrued liabilities and other liabilities consist of the following (in thousands): September 30, December 31, 2015 2014 AZ clinical trial material accrual $ 7,328 $ — Other 845 780 $ 8,173 $ 780

Stockholders Equity

Stockholders Equity	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Stockholders Equity	NOTE 8. STOCKHOLDERS EQUITY Option Exercises For the three and nine months ended September 30, 2015 employees and consultants exercised options to purchase 21,438 and 67,839 shares of the Company’s common stock, respectively, with net proceeds to the Company of insignificant and $0.1 million, respectively. For the three and nine months ended September 30, 2014 employees exercised options to purchase 64,133 and 156,914 shares of the Company’s common stock, respectively, with insignificant and approximately $0.1 million net proceeds to the Company, respectively. Employee Stock Purchase Plan In February 2015, the Company sold 19,614 shares under the ESPP. The shares were purchased at a purchase price of $12.43 per share with proceeds to the Company of approximately $0.2 million. In August 2015, the Company sold 21, 966 shares under the ESPP. The shares were purchased at a purchase price of $13.99 per share with proceeds to the Company of approximately $0.3 million. Offering of Common Stock and Warrants In June 2015, the Company sold and issued an aggregate of 7,242,992 shares of its common stock and warrants to purchase 2,172,899 shares of common stock for aggregate gross proceeds of approximately $77.8 million or net proceeds, after deducting issuance costs, of approximately $74.3 million. The purchase price for the common stock was $10.70 per share and the purchase price for the warrants was $0.125 per warrant. The warrants are exercisable for an exercise price of $13.91 per share at any time prior to the earlier of (i) 5 years from the date of issuance or (ii) certain changes in control of the Company. The Company has determined that the warrants should be classified as equity. In July 2015, the Company filed a registration statement with the SEC with respect to the common stock and warrants. Other than with respect to warrants issued to holders affiliated with New Enterprise Associates, the warrants contain limitations that prevent each holder of warrants from acquiring shares upon exercise of the warrants that would cause the number of shares beneficially owned by it and its affiliates to exceed 9.99% of the total number of shares of the Company’s common stock then issued and outstanding. In addition, upon certain changes in control of the Company, each holder of a warrant can elect to receive, subject to certain limitations and assumptions, securities in a successor entity. None of the warrants issued in June 2015 have been exercised during the three and nine months ended September 30, 2015.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	NOTE 9. SUBSEQUENT EVENTS In November 2015, the Company entered into Amendment Number One with AstraZeneca. Amendment Number One further amended sections 1(a) – (d) of Exhibit A attached to the Termination Agreement, which Exhibit A had been previously amended by a manufacturing and supply agreement entered into between AstraZeneca and the Company; relieved AstraZeneca of certain obligations with respect to the deliverables described on Exhibit A to the Termination Agreement; and reduced the aggregate maximum amount that the Company is obligated to pay for certain materials set forth in Exhibit A, as amended, from $10.0 million to $8.0 million.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although management believes these estimates are based upon reasonable assumptions within the bounds of its knowledge of the Company’s business and operations, actual results could differ materially from those estimates.
Revenue Recognition	Revenue Recognition Revenue from research activities made under collaboration partnership agreements are recognized as the services are provided and when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable, and collectability is reasonably assured. Revenue generated from research and licensing agreements typically includes up-front signing or license fees, cost reimbursements, research services, minimum sublicense fees, milestone payments, and royalties on future licensees’ product sales. For revenue agreements with multiple-element arrangements, such as license and development agreements, the Company allocates revenue to each deliverable based on the relative selling price of each deliverable. When applying the relative selling price method, the Company determines the selling price for each deliverable using vendor-specific objective evidence or third-party evidence. If neither exists, the Company uses its best estimate of selling price for that deliverable. Revenue allocated is then recognized when the four basic revenue recognition criteria are met for each deliverable. The Company recognizes revenue from upfront payments ratably over the term of its estimated period of performance under the agreement which is recorded as licensing revenue. Reimbursements for development costs incurred under the Company’s license agreement with AstraZeneca were classified as collaborative development revenue. The Company recognizes cost reimbursement revenue under collaboration partnership agreements as the related research and development costs for services are rendered. Deferred revenue represents the portion of research or license payments received which has not been earned. Revenues from milestones, if they are nonrefundable and deemed substantive, are recognized upon successful accomplishment of the milestones. To the extent that non-substantive milestones are achieved and the Company has remaining performance obligations, milestones are deferred and recognized as revenue over the estimated remaining period of performance. The Company will recognize revenue associated with the non-substantive milestones upon achievement of the milestone if there are no undelivered elements and it has no remaining performance obligations. The Company will account for sales-based milestones as royalties that will be recognized as revenue upon achievement of the milestone.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The Company has reviewed all other significant newly-issued accounting pronouncements and concluded that they either are not applicable to the Company’s operations or that no material effect is expected on its condensed financial statements as a result of future adoption.
Fair Value Measurements	Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows: Level 1 – Valuations are based on quoted prices in active markets for identical assets or liabilities and readily accessible by us at the reporting date. Examples of assets and liabilities utilizing Level 1 inputs are certain money market funds, U.S. Treasuries and trading securities with quoted prices on active markets. Level 2 – Valuations based on inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Examples of assets and liabilities utilizing Level 2 inputs are U.S. government agency bonds, corporate bonds, commercial paper, certificates of deposit and over-the-counter derivatives. Level 3 – Valuations based on unobservable inputs in which there is little or no market data, which require us to develop our own assumptions.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Summary of Fair Value Measurements of Company's Financial Assets	The following table sets forth the fair value of the Company’s financial assets measured on a recurring basis by level within the fair value hierarchy (in thousands): September 30, 2015 Total Level 1 Level 2 Level 3 Assets: Money market funds $ 125,730 $ 125,730 $ — $ — Certificates of deposit 100 — 100 — Total $ 125,830 $ 125,730 $ 100 $ — December 31, 2014 Total Level 1 Level 2 Level 3 Assets: Money market funds $ 105,410 $ 105,410 $ — $ — Certificates of deposit 100 — 100 — Total $ 105,510 $ 105,410 $ 100 $ —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock-Based Compensation Expense Recognized for Stock Options and Employee Stock Purchase Plan (ESPP)	The following table presents stock-based compensation expense recognized for stock options and the Company’s employee stock purchase program, the ESPP, in the Company’s statements of operations (in thousands): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Research and development $ 333 $ 240 $ 965 $ 314 General and administrative 379 82 912 170 Total $ 712 $ 322 $ 1,877 $ 484

Net (Loss) Income Per Share A18

Net (Loss) Income Per Share Attributable to Common Stockholders (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Share Attributable to Common Stockholders	Basic and diluted earnings per share attributable to common stockholders are calculated as follows (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Numerator: Net (loss) income $ (18,126 ) $ 74 $ (12,621 ) $ 757 Noncumulative dividends on convertible preferred stock — — — $ (757 ) Net (loss) income attributable to common stockholders, basic and diluted $ (18,126 ) $ 74 $ (12,621 ) $ — Denominator: Basic shares: Weighted average common shares outstanding 25,930,928 18,374,277 21,859,383 7,476,642 Dilutive shares: Weighted average effect of dilutive stock options — 758,940 — — 25,930,928 19,133,217 21,859,383 7,476,642 Net income per share attributable to common stockholders: Basic $ (0.70 ) $ — $ (0.58 ) $ — Diluted $ (0.70 ) $ — $ (0.58 ) $ —

Accrued and Other Liabilities (

Accrued and Other Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities and Other Liabilities	Accrued liabilities and other liabilities consist of the following (in thousands): September 30, December 31, 2015 2014 AZ clinical trial material accrual $ 7,328 $ — Other 845 780 $ 8,173 $ 780

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Fair Value Measurements of Company's Financial Assets (Detail) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets:
Assets at fair value	$ 125,830	$ 105,510
Level 1 [Member]
Assets:
Assets at fair value	125,730	105,410
Level 2 [Member]
Assets:
Assets at fair value	100	100
Money Market Funds [Member]
Assets:
Assets at fair value	125,730	105,410
Money Market Funds [Member] | Level 1 [Member]
Assets:
Assets at fair value	125,730	105,410
Certificates of Deposit [Member]
Assets:
Assets at fair value	100	100
Certificates of Deposit [Member] | Level 2 [Member]
Assets:
Assets at fair value	$ 100	$ 100

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail)	Sep. 30, 2015USD ($)
Fair Value Disclosures [Abstract]
Transfer of assets from Level 1 to Level 2	$ 0
Transfer of assets from Level 2 to Level 1	$ 0

Collaboration and Licensing A22

Collaboration and Licensing Agreements - Additional Information (Detail) - USD ($)	1 Months Ended					3 Months Ended	12 Months Ended
	Nov. 30, 2015	Sep. 30, 2015	Jun. 30, 2015	May. 31, 2014	Oct. 31, 2012	Jun. 30, 2015	Dec. 31, 2013
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Payment received on termination and return of rights		$ 0
AstraZeneca [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Upfront payment received				$ 25,000,000	$ 35,000,000		$ 15,000,000
Amount of upfront payment for return of licenses			$ 15,000,000			$ 15,000,000
Percentage of royalty on net sales required to pay under the agreement			10.00%
Percentage of non-royalty revenue received			20.00%
Aggregate amount payable under termination agreement			$ 90,000,000			90,000,000
Amount of reimbursement paid for certain research and development expenses in consideration of acceleration of transfer of information and materials			10,000,000			10,000,000
Recognized deferred revenue						$ 43,100,000
Clinical trial material expenses		$ 7,328,000
AstraZeneca [Member] | Maximum [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Maximum amount of obligation to supply clinical trial materials, drug substance and drug product			$ 10,000,000
AstraZeneca [Member] | Subsequent Event [Member] | Maximum [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Maximum amount of obligation to supply clinical trial materials, drug substance and drug product	$ 8,000,000
Sanofi [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Revenue recognized				$ 1,250,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-Based Compensation Expense Recognized for Stock Options and Employee Stock Purchase Plan (ESPP) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 712	$ 322	$ 1,877	$ 484
Research and Development [Member] | Employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	333	240	965	314
General and Administrative [Member] | Employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 379	$ 82	$ 912	$ 170

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2015USD ($)
Employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock based compensation expense	$ 5.6
Unrecognized stock based compensation expense, weighted-average remaining recognition period	2 years 8 months 12 days
Purchase Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock based compensation expense	$ 0.1
Unrecognized stock based compensation expense, weighted-average remaining recognition period	4 months 24 days

Net (Loss) Income Per Share A25

Net (Loss) Income Per Share Attributable to Common Stockholders - Additional Information (Detail) - $ / shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of diluted net loss per share attributable to common stockholders	1.8	0.1	1.4	1.1
Prior to Initial Public Offering [Member] | Series A Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred stock dividend per share			$ 0.8181
Prior to Initial Public Offering [Member] | Series B Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred stock dividend per share			$ 0.2781

Net (Loss) Income Per Share A26

Net (Loss) Income Per Share Attributable to Common Stockholders - Computation of Basic and Diluted Earnings Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Net (loss) income	$ (18,126)	$ 74	$ (12,621)	$ 757
Noncumulative dividends on convertible preferred stock	0	0	0	(757)
Net (loss) income attributable to common stockholders, basic and diluted	$ (18,126)	$ 74	$ (12,621)	$ 0
Basic shares:
Weighted average common shares outstanding	25,930,928	18,374,277	21,859,383	7,476,642
Dilutive shares:
Weighted average effect of dilutive stock options	0	758,940	0	0
Weighted average number of shares outstanding, diluted	25,930,928	19,133,217	21,859,383	7,476,642
Net income per share attributable to common stockholders:
Basic	$ (0.70)	$ 0	$ (0.58)	$ 0
Diluted	$ (0.70)	$ 0	$ (0.58)	$ 0

Accrued and Other Liabilities -

Accrued and Other Liabilities - Schedule of Accrued Liabilities and Other Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accrued Liabilities And Other Liabilities [Line Items]
Other	$ 845	$ 780
Accrued liabilities and other liabilities	8,173	$ 780
AstraZeneca [Member]
Accrued Liabilities And Other Liabilities [Line Items]
Clinical trial material accrual	$ 7,328

Stockholders Equity - Additiona

Stockholders Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended		9 Months Ended
	Aug. 31, 2015	Jun. 30, 2015	Feb. 28, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from exercise of stock options						$ 646	$ 3
Purchase price of common shares		$ 10.70
Gross proceeds from issuance of common stock		$ 77,800
Proceeds from issuance of common stock, net of issuance costs		$ 74,300				$ 74,322	$ 61,241
Common stock sold and issued		7,242,992
Warrants issued to purchase common stock		2,172,899
Purchase price for warrants		$ 0.125
Warrants exercise price per share		$ 13.91
Warrants expiration term		5 years
Warrants description						The warrants are exercisable for an exercise price of $13.91 per share at any time prior to the earlier of (i) 5 years from the date of issuance or (ii) certain changes in control of the Company.
Maximum warrants ownership percentage by each holder of warrants		9.99%
Number of warrants exercised				0		0
Employees and Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased by employees on exercise of options				21,438		67,839
Proceeds from exercise of stock options						$ 100
Employee Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased by employees on exercise of options					64,133		156,914
Proceeds from exercise of stock options							$ 100
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from exercise of stock options	$ 300		$ 200
Shares sold under ESPP	21,966		19,614
Purchase price of common shares	$ 13.99		$ 12.43

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - AstraZeneca [Member] - Maximum [Member] - USD ($)	1 Months Ended
	Nov. 30, 2015	Jun. 30, 2015
Subsequent Event [Line Items]
Maximum amount of obligation to supply clinical trial materials, drug substance and drug product		$ 10,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Maximum amount of obligation to supply clinical trial materials, drug substance and drug product	$ 8,000,000