Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Entity Registrant Name | Arbutus Biopharma Corp | |
Entity Central Index Key | 0001447028 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 56,850,172 | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 83,969 | $ 36,942 |
Short-term investments | 26,621 | 87,675 |
Accounts receivable | 923 | 1,431 |
Investment tax credits receivable | 291 | 389 |
Prepaid expenses and other assets | 682 | 2,792 |
Total current assets | 112,486 | 129,229 |
Investment in Genevant | 17,675 | 22,224 |
Property and equipment, net of accumulated depreciation ($7,405) (2018-($6,896)) | 9,667 | 10,145 |
Right of use asset (note 8) | 3,081 | 0 |
Intangible assets | 43,836 | 43,836 |
Goodwill | 22,471 | 22,471 |
Total assets | 209,216 | 227,905 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 6,828 | 9,429 |
Site consolidation accrual | 982 | 1,331 |
Liability-classified options | 414 | 479 |
Lease liability, current | 599 | 0 |
Total current liabilities | 8,823 | 11,239 |
Deferred rent and inducements, non-current | 0 | 645 |
Contingent consideration | 3,251 | 3,126 |
Lease liability, non-current | 3,272 | 0 |
Deferred tax liability | 12,661 | 12,661 |
Total liabilities | 28,007 | 27,671 |
Stockholders’ equity: | ||
Preferred shares, Authorized - 1,164,000 with no par value, Issued and outstanding: 1,164,000 (December 31, 2018 - 1,164,000) | 128,851 | 126,136 |
Common shares, Authorized - unlimited number with no par value, Issued and outstanding: 56,255,816 (December 31, 2018 - 55,518,800) | 882,143 | 879,405 |
Additional paid-in capital | 49,594 | 48,084 |
Deficit | (831,187) | (805,221) |
Accumulated other comprehensive loss | (48,192) | (48,170) |
Total stockholders' equity | 181,209 | 200,234 |
Total liabilities and stockholders' equity | $ 209,216 | $ 227,905 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accumulated of property, plant, and equipment | $ 7,405 | $ 6,896 |
Preferred stock, no par value (in USD per share) | ||
Preferred stock, shares authorized (in shares) | 1,164,000 | 1,164,000 |
Preferred stock, shares issued (in shares) | 1,164,000 | 1,164,000 |
Preferred stock, shares outstanding (in shares) | 1,164,000 | 1,164,000 |
Common shares, no par value (in USD per share) | ||
Common shares, shares issued (in shares) | 56,255,816 | 55,518,800 |
Common shares, shares outstanding (in shares) | 56,255,816 | 55,518,800 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue | ||
Revenue | $ 679 | $ 1,436 |
Expenses | ||
Research, development, collaborations and contracts | 14,712 | 13,949 |
General and administrative | 4,412 | 3,669 |
Depreciation | 509 | 602 |
Total site consolidation expense | 117 | 1,621 |
Total expenses | 19,750 | 19,841 |
Loss from operations | (19,071) | (18,405) |
Other income (loss) | ||
Interest income | 600 | 758 |
Interest expense | (12) | (104) |
Foreign exchange gain (loss) | 8 | (526) |
Equity investment loss | (4,651) | 0 |
Decrease (increase) in fair value of contingent consideration | (125) | 848 |
Total other income (loss) | (4,180) | 976 |
Net loss | (23,251) | (17,429) |
Items applicable to preferred shares: | ||
Accrual of coupon on convertible preferred shares | (2,715) | (2,336) |
Net loss attributable to common shares | $ (25,966) | $ (19,765) |
Net loss attributable to common shareholders, per share | ||
Basic and diluted (in USD per share) | $ (0.47) | $ (0.36) |
Weighted average number of common shares | ||
Weighted average number of common shares basic and diluted (in shares) | 55,740,121 | 55,071,964 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss Statement - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (23,251) | $ (17,429) |
Other comprehensive loss: | ||
Share of other comprehensive loss of equity method investment (note 4) | (22) | 0 |
Comprehensive loss | $ (23,273) | $ (17,429) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Convertible Preferred Shares | Common Shares | Additional paid-in capital | Deficit | Accumulated other comprehen- sive loss |
Beginning balance (in shares) at Dec. 31, 2017 | 500,000 | 55,060,650 | ||||
Beginning balance at Dec. 31, 2017 | $ 182,473 | $ 49,780 | $ 876,108 | $ 42,840 | $ (738,070) | $ (48,185) |
Accretion of coupon on Preferred Shares | $ 2,336 | (2,336) | ||||
Stock-based compensation | 1,510 | 1,510 | ||||
Certain fair value adjustments to liability stock option awards | (504) | (504) | ||||
Issuance of common shares pursuant to the Sale Agreement (shares) | 664,000 | |||||
Issuance of common shares pursuant to the Sale Agreement | 66,265 | $ 66,265 | ||||
Issuance of common shares pursuant to exercise of options (in shares) | 26,541 | |||||
Issuance of common shares pursuant to exercise of options | 103 | $ 180 | (77) | |||
Net loss | (17,429) | (17,429) | ||||
Ending balance (in shares) at Mar. 31, 2018 | 1,164,000 | 55,087,191 | ||||
Ending balance at Mar. 31, 2018 | 232,418 | $ 118,381 | $ 876,288 | 43,769 | (757,835) | (48,185) |
Beginning balance (in shares) at Dec. 31, 2018 | 1,164,000 | 55,518,800 | ||||
Beginning balance at Dec. 31, 2018 | 200,234 | $ 126,136 | $ 879,405 | 48,084 | (805,221) | (48,170) |
Accretion of coupon on Preferred Shares | $ 2,715 | (2,715) | ||||
Stock-based compensation | 1,665 | 1,665 | ||||
Certain fair value adjustments to liability stock option awards | 47 | 47 | ||||
Issuance of common shares pursuant to the Sale Agreement (shares) | 614,401 | |||||
Issuance of common shares pursuant to the Sale Agreement | 2,248 | $ 2,248 | ||||
Issuance of common shares pursuant to exercise of options (in shares) | 122,603 | |||||
Issuance of common shares pursuant to exercise of options | 288 | $ 490 | (202) | |||
Other comprehensive loss - currency translation adjustment | (22) | (22) | ||||
Net loss | (23,251) | (23,251) | ||||
Ending balance (in shares) at Mar. 31, 2019 | 1,164,000 | 56,255,804 | ||||
Ending balance at Mar. 31, 2019 | $ 181,209 | $ 128,851 | $ 882,143 | $ 49,594 | $ (831,187) | $ (48,192) |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance costs on preferred stock issued | $ 135 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net loss for the period | $ (23,251) | $ (17,429) |
Items not involving cash: | ||
Depreciation of property and equipment | 509 | 602 |
Gain on sale of property and equipment | (9) | 0 |
Stock-based compensation expense | 1,522 | 955 |
Unrealized foreign exchange (gains) losses | (38) | 565 |
Change in fair value of contingent consideration | 125 | (848) |
Equity investment loss | 4,651 | 0 |
Net change in non-cash operating items: | ||
Accounts receivable | 508 | (317) |
Investment tax credits receivable | 98 | (2) |
Prepaid expenses and other assets | 2,110 | 687 |
Other assets | 167 | 0 |
Accounts payable and accrued liabilities | (2,746) | (4,187) |
Deferred revenue | 0 | (1,022) |
Site consolidation accrual | (139) | 1,029 |
Other liabilities | (87) | 0 |
Net cash used in operating activities | (16,580) | (19,967) |
INVESTING ACTIVITIES | ||
Acquisition of short-term investments | 0 | (75,418) |
Disposition of short-term investments | 61,055 | 0 |
Proceeds from sale of property and equipment | 9 | 0 |
Acquisition of property and equipment | (31) | (248) |
Net cash provided by (used) in investing activities | 61,033 | (75,666) |
FINANCING ACTIVITIES | ||
Promissory note repayment | 0 | (12,001) |
Issuance of common shares pursuant to the Open Market Sale Agreement | 2,248 | 66,265 |
Issuance of common shares pursuant to exercise of options | 288 | 103 |
Net cash provided by financing activities | 2,536 | 54,367 |
Effect of foreign exchange rate changes on cash and cash equivalents | 38 | (565) |
Increase (Decrease) in cash, cash equivalents, and restricted investment | 47,027 | (41,831) |
Cash, cash equivalents, and restricted investment, beginning of period | 36,942 | 54,292 |
Cash, cash equivalents, and restricted investment, end of period | 83,969 | 12,461 |
Non-cash transactions: | ||
Preferred shares dividends accrued | $ 2,715 | $ 2,336 |
Nature of Business and Future O
Nature of Business and Future Operations | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of business and future operations | Nature of business and future operations Arbutus Biopharma Corporation (the “Company” or “Arbutus”) is a biopharmaceutical business dedicated to discovering, developing, and commercializing a cure for patients suffering from chronic hepatitis B infection, a disease of the liver caused by the hepatitis B virus (“HBV”). To pursue its strategy of developing a curative combination regimen, the Company has assembled a pipeline of multiple drug candidates with differing and complementary mechanisms of action targeting HBV. These include AB-506, the Company's oral capsid inhibitor currently in a Phase 1a/1b clinical trial, AB-729, the Company's second generation RNA interface ("RNAi") therapeutic candidate, and AB-452, the Company's lead oral RNA destabilizer candidate. The success of the Company is dependent on obtaining the necessary regulatory approvals to bring its products to market and achieving profitable operations. The Company's research and development activities and commercialization of its products are dependent on its ability to successfully complete these activities and to obtain adequate financing through a combination of financing activities and operations. It is not possible to predict either the outcome of the Company's existing or future research and development programs or the Company’s ability to continue to fund these programs in the future. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies Basis of presentation These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements and accordingly, do not include all disclosures required for annual financial statements. These statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . These unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments and reclassifications necessary to fairly present the Company's financial position as of March 31, 2019 and the Company's results of operations and cash flows for the three months ended March 31, 2019 and 2018. The results of operations for the three months ended March 31, 2019 and 2018, respectively, are not necessarily indicative of the results for the full year. These unaudited condensed consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the year ended December 31, 2018 , except as described below under Recent Accounting Pronouncements. Principles of consolidation These unaudited condensed consolidated financial statements include the accounts of the Company and its two wholly-owned subsidiaries, Arbutus Biopharma Inc. ("Arbutus Inc.") and Arbutus Biopharma US Holdings, Inc. All intercompany transactions and balances have been eliminated in consolidation. Income or loss per share The Company follows the two-class method when computing net loss attributable to common shareholders per share as the Company has issued Series A participating convertible preferred shares (the "Preferred Shares"), as further described in note 9, that meet the definition of participating securities. The Preferred Shares entitle the holders to participate in dividends but do not require the holders to participate in losses of the Company. Accordingly, if the Company reports a net loss attributable to holders of the Company's common shares, net losses are not allocated to holders of the Preferred Shares. Net loss attributable to common shareholders per share is calculated based on the weighted average number of common shares outstanding. Diluted net loss attributable to common shareholders per share does not differ from basic net loss attributable to common shareholders per share since the effect of the Company’s stock options was anti-dilutive. During the three months ended March 31, 2019 , potential common shares of approximately 26 million ( three months ended March 31, 2018 – approximately 22 million), consisting of the as-if converted number of Preferred Shares and outstanding stock options, were excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive. The following table sets out the computation of basic and diluted net income (loss) attributable to shareholders per share: (Expressed in thousands of U.S. dollars, except share and per share amounts) Three months ended March 31, Three months ended March 31, 2019 2018 Numerator: Common Shares Preferred Shares Common Shares Preferred Shares Allocation of distributable earnings $ — $ 2,715 $ — $ 2,336 Allocation of undistributed loss (25,966 ) — (19,765 ) — Allocation of income (loss) attributed to shareholders $ (25,966 ) $ 2,715 $ (19,765 ) $ 2,336 Denominator: Weighted average number of shares - basic and diluted 55,740,121 1,164,000 55,071,964 1,075,467 Basic and diluted net income (loss) attributable to shareholders per share $ (0.47 ) $ 2.33 $ (0.36 ) $ 2.17 Equity method investment The Company accounts for its investment in associated companies in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 323, Investments - Equity Method and Joint Ventures ("ASC 323"). In accordance with ASC 323, associated companies are accounted for as equity method investments. Results of associated companies are presented on a one-line basis. Investments in, and advances to, associated companies are presented on a one-line basis in the caption “Investment in Genevant” in the Company's Condensed Consolidated Balance Sheets, net of allowance for losses, which represents the Company's best estimate of probable losses inherent in such assets. The Company's proportionate share of any associated companies' net income or loss is presented on a one-line basis in the caption "Equity investment (loss)" in the Company's Condensed Consolidated Statement of Operations. Transactions between the Company and any associated companies are eliminated on a basis proportional to the Company's ownership interest. Financial results of Genevant Sciences Ltd. ("Genevant") are recorded on a one-quarter lag basis. Revenue recognition The Company recognizes the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers under a five-step model: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when or as a performance obligation is satisfied. The Company generates revenue primarily through collaboration agreements and license agreements. Such agreements may require the Company to deliver various rights and/or services, including intellectual property rights or licenses and research and development services. Under such agreements, the Company is generally eligible to receive non-refundable upfront payments, funding for research and development services, milestone payments, and royalties. In contracts where the Company has more than one performance obligation to provide its customer with goods or services, each performance obligation is evaluated to determine whether it is distinct based on whether (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available and (ii) the good or service is separately identifiable from other promises in the contract. The consideration under the contract is then allocated between the distinct performance obligations based on their respective relative stand-alone selling prices. The estimated stand-alone selling price of each deliverable reflects the Company's best estimate of what the selling price would be if the deliverable was regularly sold on a stand-alone basis and is determined by reference to market rates for the good or service when sold to others or by using an adjusted market assessment approach if the selling price on a stand-alone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control is transferred to the customer for the related goods or services. Consideration associated with at-risk substantive performance milestones, including sales-based milestones, is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur. Sales-based royalties received in connection with licenses of intellectual property are subject to a specific exception in the revenue standards, whereby the consideration is not included in the transaction price and recognized in revenue until the customer’s subsequent sales or usages occur. Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company's financial position or results of operations upon adoption. The Company adopted ASU No. 2016-02, Leases (Topic 842), as of January 1, 2019, using the modified retrospective approach with the effective date transition method (note 8). Accordingly, all periods prior to adoption are presented in accordance with legacy accounting and the Company recorded no retrospective adjustments to the comparative periods presented. In addition, the Company elected the package of practical expedients permitted under the transition guidance within ASC 842, which among other things, allowed the Company to carry forward its historical lease classification. In addition, the Company elected the short term exemption, which allows entities to not capitalize their leases with a term of 12 months or less. Adoption of the new standard resulted in the recording of operating lease right-of-use assets (“ROU assets”) and lease liabilities of approximately $3.2 million and $4.1 million , respectively, as of January 1, 2019. The standard did not materially impact the Company’s consolidated statements of operations and statements of cash flow. In November 2018, the FASB issued targeted amendments to ASU No. 2018-18, Collaborative Arrangements (Topic 808), and ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606), to clarify that certain transactions between parties to collaborative arrangements should be accounted for in accordance with FASB revenue guidance when the counterparty is a customer. This guidance also prohibits the presentation of collaborative arrangements as revenues from contracts with customers if the counterparty is not a customer. This guidance, which is required to be applied retrospectively and is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted, is not expected to have a material impact on the Company’s consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments The Company measures certain financial instruments and other items at fair value. To determine the fair value, the Company uses the fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use to value an asset or liability and are developed based on market data obtained from independent sources. Unobservable inputs are inputs based on assumptions about the factors market participants would use to value an asset or liability. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 inputs are quoted market prices for identical instruments available in active markets. • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly. If the asset or liability has a contractual term, the input must be observable for substantially the full term. An example includes quoted market prices for similar assets or liabilities in active markets. • Level 3 inputs are unobservable inputs for the asset or liability and will reflect management’s assumptions about market assumptions that would be used to price the asset or liability. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques used to determine such fair value: Level 1 Level 2 Level 3 March 31, 2019 Assets Cash and cash equivalents $ 83,969 — — $ 83,969 Short-term investments 26,621 — — 26,621 Total $ 110,590 $ — $ — $ 110,590 Liabilities Liability-classified options — — $ 414 $ 414 Contingent consideration — — 3,251 3,251 Total $ — $ — $ 3,665 $ 3,665 Level 1 Level 2 Level 3 December 31, 2018 Assets Cash and cash equivalents $ 36,942 — — $ 36,942 Short-term investments 87,675 — — 87,675 Total $ 124,617 $ — $ — $ 124,617 Liabilities Liability-classified options — — $ 479 $ 479 Contingent consideration — — 3,126 3,126 Total $ — $ — $ 3,605 $ 3,605 The following table presents the changes in fair value of the Company’s liability-classified stock option awards: Liability at beginning of the period Fair value of liability-classified options exercised in the period Decrease in fair value of liability Liability at end of the period Three months ended March 31, 2018 $ 1,239 $ — $ (51 ) $ 1,188 Three months ended March 31, 2019 $ 479 $ — $ (65 ) $ 414 The following table presents the changes in fair value of the Company’s contingent consideration: Liability at beginning of the period Increase (decrease) in fair value of Contingent Consideration Liability at end of the period Three months ended March 31, 2018 $ 10,424 $ (848 ) $ 9,576 Three months ended March 31, 2019 $ 3,126 $ 125 $ 3,251 |
Equity Method Investment
Equity Method Investment | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investment | Equity method investment In April 2018, the Company entered into an agreement with Roivant Sciences Ltd. (“Roivant”), its largest shareholder, to launch Genevant, a company focused on the discovery, development, and commercialization of a broad range of RNA-based therapeutics enabled by the Company's lipid nanoparticle ("LNP") and ligand conjugate delivery technologies. The Company licensed exclusive rights to its LNP and ligand conjugate delivery platforms to Genevant for RNA-based applications outside of HBV. Genevant plans to develop products in-house and pursue industry partnerships to build a diverse pipeline of therapeutics across multiple modalities, including RNAi, mRNA, and gene editing. Under the terms of the agreement, Roivant contributed $ 37.5 million in seed capital to Genevant. The Company retained all rights to its LNP and conjugate delivery platforms for HBV, and is entitled to a tiered low single-digit royalty from Genevant on future sales of products enabled by the delivery platforms licensed to Genevant. The Company also retained the entirety of its royalty entitlement on the commercialization of Alnylam Pharmaceuticals Inc.'s ("Alnylam") Onpattro ™ (Patisiran/ALN-TTR02) . As of March 31, 2019, the Company held an equity interest of approximately 40% of the common equity of Genevant and accounts for its interest in Genevant using the equity method. The carrying value of the Company's interest in Genevant as of March 31, 2019 was $17.7 million . The basis difference between the Company’s carrying value in Genevant and the Company’s share of Genevant's net assets is attributed primarily to indefinite-lived in-process research and development ("IPR&D") (the delivery technology transferred to Genevant). For the three months ended March 31, 2019, the Company recorded equity investment losses of $4.7 million for its proportionate share of Genevant’s net loss, recorded on a one-quarter lag basis. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets and goodwill | Intangible assets and goodwill All acquired IPR&D relates to our covalently closed circular DNA ("cccDNA") program and is currently classified as indefinite-lived and is not currently being amortized. IPR&D becomes definite-lived upon the completion or abandonment of the associated research and development efforts, and will be amortized from that time over an estimated useful life based on respective patent terms. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of Arbutus Inc. The Company evaluates the recoverable amount of intangible assets on an annual basis and performs an annual evaluation of goodwill as of December 31 of each year, unless there is an event or change in the business that could indicate impairment, in which case earlier testing is performed. During the three months ended March 31, 2019 , the Company did not identify any new indicators of impairment. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities Accounts payable and accrued liabilities are comprised of the following, in thousands: March 31, 2019 December 31, 2018 Trade accounts payable $ 2,344 $ 3,192 Research and development accruals 3,220 2,716 Professional fee accruals 491 871 Payroll accruals 773 2,341 Other accrued liabilities — 309 Total accounts payable and accrued liabilities $ 6,828 $ 9,429 |
Site Consolidation
Site Consolidation | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Site consolidation | Site consolidation In 2018, the Company substantially completed a site consolidation and organizational restructuring to align its HBV business in Warminster, PA, including a reduction of its global workforce by approximately 35% and closure of its Burnaby facility. The Company estimates that the total expenses to complete the site consolidation will be approximately $5.3 million, of which $4.9 million has been incurred as of March 31, 2019. Included in the site consolidation plan was the payment of one-time employee termination benefits, employee relocation costs, and site closure costs. The Company ceased using its Burnaby facility as of June 30, 2018 and recognized the remaining committed cost, less sublease income under contract, in site consolidation expenses in 2018. Site consolidation expenses were as follows, in thousands: Three months ended March 31, 2019 2018 Employee severance and relocation $ 77 $ 1,621 Facility and other expenses 40 — Total site consolidation expenses $ 117 $ 1,621 Site consolidation activity was as follows, in thousands: Employee severance and relocation Facility and other expenses Total Site consolidation accrual as of December 31, 2018 $ 697 $ 634 $ 1,331 Additional accruals 77 40 117 Payments and adjustments (205 ) (261 ) (466 ) Site consolidation accrual as of March 31, 2019 $ 569 $ 413 $ 982 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has three operating leases for office and laboratory space. The Company's corporate headquarters is located at 701 Veterans Circle, Warminster, Pennsylvania. The lease expires on April 30, 2027, and the Company has the option of extending the lease for two further five -year terms. The Company also leases office space located at 626 Jacksonville Rd, Warminster, Pennsylvania under a lease that expires on December 31, 2021, and the Company has an option to extend the lease term to April 30, 2027. In connection with the Company's site consolidation in 2018, the Company ceased using its office and laboratory space located in Burnaby, British Columbia, Canada on June 30, 2018. The lease term expires on July 31, 2019 and the Company has subleases with various tenants, including Genevant, for a portion of the Burnaby facility. The Company recognized the remaining lease payments for the Burnaby facility, less sublease income under contract, in site consolidation expenses in 2018. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company adopted the new lease standard (Topic 842) on January 1, 2019 using the modified retrospective basis applied at the effective date of the new standard and elected to utilize a package of practical expedients. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company determines if an arrangement is a lease at inception. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease right-of-use assets and lease liabilities are recognized based on the present value of lease payments over the lease term. The leases do not provide an implicit rate so, in determining the present value of lease payments, the Company utilized its incremental borrowing rate, which was 9.0% for the 701 Veterans Circle lease, 7.6% for the 626 Jacksonville Rd. lease and 5.0% for the Burnaby lease. The Company recognizes lease expense on a straight-line basis over the remaining lease term. During the three months ended March 31, 2019, the Company incurred total operating lease expenses of $0.4 million , which included lease expenses associated with fixed lease payments of $0.3 million , and variable payments associated with common area maintenance and similar expenses of $0.1 million . For the period ended March 31, 2018, the straight-line fixed expense for leases was $0.3 million . Sublease income for the three months ended March 31, 2019 was $0.1 million ( nil in 2018). Weighted average remaining lease term and discount rate were as follows: As of March 31, 2019 Weighted average remaining lease term 7.2 Weighted average discount rate 8.7% The Company did not include options to extend its lease terms as part of its ROU asset and lease liabilities. Supplemental cash flow information related to the Company's operating leases was as follows, in thousands: Three months ended March 31, 2019 2018 Cash paid for amounts included in the measurement of lease liabilities $ 312 $ — Right-of-use assets obtained in exchange for lease obligations $ 3,248 $ — Maturities of lease liabilities were as follows, in thousands: As of March 31, 2019 April through December 2019 $ 745 2020 657 2021 677 2022 581 2023 598 Thereafter 2,038 Total Lease Payments $ 5,296 Less: interest (1,425 ) Present value of lease payments $ 3,871 |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' equity and stock-based compensation | Stockholders' equity and stock-based compensation Open Market Sale Agreement In December 2018, the Company entered into an Open Market Sale Agreement (“Sale Agreement”) with Jefferies LLC, under which it may issue and sell common shares, from time to time, for an aggregate sales price of up to $50.0 million . The Company did no t sell any shares under the Sale Agreement during 2018. For the three months ended March 31, 2019, the Company issued 614,401 common shares pursuant to the Sale Agreement, resulting in gross proceeds of approximately $2.7 million . Series A participating convertible preferred shares In October 2017, the Company entered into a subscription agreement with Roivant for the sale of 1,164,000 Preferred Shares to Roivant for gross proceeds of $116.4 million. The Preferred Shares are non-voting and are convertible into common shares at an initial conversion price of $7.13 per share. The purchase price for the Preferred Shares plus an amount equal to 8.75% per annum, compounded annually, will be subject to mandatory conversion into approximately 23 million common shares on October 16, 2021 (subject to limited exceptions in the event of certain fundamental corporate transactions relating to Arbutus’ capital structure or assets, which would permit earlier conversion at Roivant’s option). After conversion of the Preferred Shares into common shares, based on the number of common shares outstanding on March 31, 2019, Roivant would hold approximately 49% of the Company's common shares. Roivant agreed to a four year lock-up period for this investment and its existing holdings in the Company. Roivant also agreed to a four year standstill whereby Roivant will not acquire greater than 49.99% of the Company's common shares or securities convertible into common shares. The initial investment of $50.0 million closed in October 2017, and the remaining amount of $66.4 million closed in January 2018 following regulatory and shareholder approvals. The Company records the Preferred Shares wholly as equity under ASC 480, Distinguishing Liabilities From Equity, with no bifurcation of conversion feature from the host contract, given that the Preferred Shares cannot be cash settled and the redemption features are within the Company's control, which include a fixed conversion ratio with predetermined timing and proceeds. The Company accrues for the 8.75% per annum compounding coupon at each reporting period end date as an increase to preferred share capital, and an increase to deficit (see Condensed Consolidated Statement of Stockholders' Equity). |
Collaborations, Contracts and L
Collaborations, Contracts and Licensing Agreements | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Collaborations, contracts and licensing agreements | Collaborations, contracts and licensing agreements Revenue contracts are described in detail in the Overview section of Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 2018 Form 10-K. In 2012, the Company entered into a license agreement with Alnylam that entitles Alnylam to develop and commercialize products with the Company's LNP technology. Alnylam's Onpattro TM program, which represents the most clinically advanced application of LNP technology, was approved by the U.S. Food and Drug Administration ("FDA") and the European Medicines Agency ("EMA") during the third quarter of 2018 and was launched immediately upon approval in the US. The Company is entitled to tiered low to mid single-digit royalty payments on net sales of Onpattro TM and received its first royalty payment in the fourth quarter of 2018. Revenue for the three months ended March 31, 2019 consists primarily of royalties on net sales of Alnylam's Onpattro TM , as well as royalties on net sales of Spectrum Pharmaceuticals, Inc.'s ("Spectrum") Marqibo ® and services provided to Gritstone Oncology, Inc. ("Gritstone"). Revenue for the three months ended March 31, 2018 consisted primarily of revenue earned under our license agreement with Gritsone, including the earned portion of an upfront license fee and services provided to Gritstone. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and commitments | Contingencies and commitments Product development partnership with the Canadian Government The Company entered into a Technology Partnerships Canada ("TPC") agreement with the Canadian Federal Government on November 12, 1999. Under this agreement, TPC agreed to fund 27% of the costs incurred by the Company, prior to March 31, 2004, in the development of certain oligonucleotide product candidates up to a maximum contribution from TPC of $7,179,000 ( C$9,256,000 ). As at March 31, 2019 , a cumulative contribution of $2,773,000 ( C$3,668,000 ) had been received and the Company does not expect any further funding under this agreement. In return for the funding provided by TPC, the Company agreed to pay royalties on the share of future licensing and product revenue, if any, that is received by the Company on certain non-siRNA oligonucleotide product candidates covered by the funding under the agreement. These royalties are payable until a certain cumulative payment amount is achieved or until a pre-specified date. In addition, until a cumulative amount equal to the funding actually received under the agreement has been paid to TPC, the Company agreed to pay 2.5% royalties on any royalties the Company receives from Spectrum for licensing Marqibo®. For the three months ended March 31, 2019 , the Company earned royalties on Marqibo® sales in the amount of $31,000 (three months ended March 31, 2018 – $22,000 ) resulting in $1,000 being recorded by the Company as royalty payable to TPC ( March 31, 2018 - $1,000 ). The cumulative amount paid or accrued as of March 31, 2019 was $26,000 , therefore the remaining contingent amount due to TPC is $2,747,000 ( C$3,668,000 ). Arbitration with the University of British Columbia Certain early work on LNP delivery systems and related inventions was undertaken by the Company and assigned to the University of British Columbia ("UBC"). These inventions were subsequently licensed back to the Company by UBC under a license agreement, initially entered into in 1998 and subsequently amended in 2001, 2006 and 2007. The Company has granted sublicenses under the UBC license to Alnylam. Alnylam has in turn sublicensed back to the Company under the licensed UBC patents for discovery, development and commercialization of siRNA products. Certain sublicenses were also granted to other parties. On November 10, 2014, UBC filed a notice of arbitration against the Company and on January 16, 2015, filed a Statement of Claim, which alleges entitlement to $3,500,000 in allegedly unpaid royalties based on publicly available information, and an unspecified amount based on non-public information. UBC also seeks interest and costs, including legal fees. The Company filed its Statement of Defense to UBC's Statement of Claims, as well as a Counterclaim involving a patent application that the Company alleges UBC wrongly licensed to a third party. The proceedings have been divided into three phases, with the first hearing taking place in June 2017. In the first phase, the arbitrator determined which agreements are sublicense agreements within UBC's claim. Also in the first phase, UBC updated its alleged entitlement from $3,500,000 originally claimed to seek $10,900,000 in alleged unpaid royalties, plus interest arising from payments as early as 2008. No finding was made as to whether any licensing fees are due to UBC under these agreements; this was the subject of the second phase of arbitration that took place from April 10, 2019 to April 16, 2019. The decision for this phase of the arbitration is expected in the second half of 2019. The arbitrator also held in the first phase of the arbitration that the patent application that is the subject of the Counterclaim was not required to be licensed to Arbutus. A schedule for the third phase of the arbitration has not yet been set. Arbitration and related matters are costly and may divert the attention of the Company's management and other resources that would otherwise be engaged in other activities. The Company continues to dispute UBC's allegations, and is seeking license payments for wrongfully licensed patent application, and an exclusive worldwide license to said application. However, arbitration is subject to inherent uncertainty and an arbitrator could rule against the Company. The Company has not recorded an estimate of the possible loss associated with this arbitration, due to the uncertainties related to both the likelihood and amount of any possible loss or range of loss. Costs related to the arbitration are recorded by the Company as incurred. License Agreements between Enantigen and Blumberg and Drexel In October 2014, Arbutus Inc. acquired all of the outstanding shares of Enantigen Therapeutics, Inc. (“Enantigen”) pursuant to a stock purchase agreement. Through this transaction, Arbutus Inc. acquired a HBV surface antigen secretion inhibitor program and a capsid assembly inhibitor program. Under the stock purchase agreement, Arbutus Inc. agreed to pay up to a total of $21,000,000 to Enantigen’s selling shareholders upon the achievement of specified development and regulatory milestones for (a) the first two products that contain either a capsid compound or an HBV surface antigen compound that is covered by a patent acquired under this agreement, or (b) a capsid compound from an agreed upon list of compounds. The amount paid could be up to an additional $102.5 million in sales performance milestones in connection with the sale of the first commercialized product by Arbutus Inc. for the treatment of HBV, regardless of whether such product is based upon assets acquired under this agreement, and a low single-digit royalty on net sales of such first commercialized HBV product, up to a maximum royalty payment of $1.0 million that, if paid, would be offset against Arbutus Inc.'s milestone payment obligations. The contingent consideration for this acquisition is a financial liability and measured at its fair value at each reporting period, with any changes in fair value from the previous reporting period recorded in the statement of operations and comprehensive loss (see note 2). Under the stock purchase agreement, Enantigen must also fulfill its obligations as they relate to the three patent license agreements with The Baruch S. Blumberg Institute ("Blumberg") and Drexel University ("Drexel"). Pursuant to each patent license agreement, Enantigen is obligated to pay Blumberg and Drexel up to approximately $500,000 in development and regulatory milestones per licensed product, royalties in the low single-digits, and a percentage of revenue it receives from its sub-licensees. The Baruch S. Blumberg Institute and Drexel University In February 2014, Arbutus Inc. entered into a license agreement with Blumberg and Drexel that granted an exclusive (except as to certain know-how and subject to retained non-commercial research rights), worldwide, sub-licensable license to three different compound series: cccDNA formation inhibitors, capsid assembly inhibitors and hepatocellular carcinoma inhibitors. During 2018, the Company returned rights to the cccDNA formation inhibitors and hepatocellular carcinoma inhibitors to Blumberg. In partial consideration for this license, Arbutus Inc. paid a license initiation fee of $150,000 and issued warrants to Blumberg and Drexel. The warrants were subsequently exercised in 2014. Under this license agreement, Arbutus Inc. also agreed to pay up to $3,500,000 in development and regulatory milestones per licensed compound series, up to $92,500,000 in sales performance milestones per licensed product, and royalties in the mid-single digits based upon the proportionate net sales of licensed products in any commercialized combination. The Company is obligated to pay Blumberg and Drexel a double-digit percentage of all amounts received from the sub-licensees, subject to customary exclusions. In November 2014, Arbutus Inc. entered into an additional license agreement with Blumberg and Drexel pursuant to which it received an exclusive (subject to retained non-commercial research rights), worldwide, sub-licensable license under specified patents and know-how controlled by Blumberg and Drexel covering epigenetic modifiers of cccDNA and stimulator of interferon genes (“STING”) agonists. During 2018, the Company returned rights to the epigenetic modifiers of cccDNA and STING agonists to Blumberg. In consideration for these exclusive licenses, Arbutus Inc. made an upfront payment of $50,000 . Research Collaboration and Funding Agreement with Blumberg In October 2014, Arbutus Inc. acquired all of the outstanding shares of Enantigen pursuant to a stock purchase agreement. Through this transaction, Arbutus Inc. acquired a HBV surface antigen secretion inhibitor program and a capsid assembly inhibitor program. Under the stock purchase agreement, the Company agreed to pay up to a total of $1,000,000 per year of research funding for three years, renewable at the Company’s option for an additional three years, for Blumberg to conduct research projects in HBV and liver cancer. Blumberg has exclusivity obligations to the Company with respect to HBV research funded under the agreement. In addition, the Company has the right to match any third party offer to fund HBV research that falls outside the scope of the research being funded under the agreement. Blumberg has granted the Company the right to obtain an exclusive, royalty-bearing, worldwide license to any intellectual property generated by any funded research project. If the Company elects to exercise the right to obtain such a license, it will have a specified period of time to negotiate and enter into a mutually agreeable license agreement with Blumberg. This license agreement will include the following pre-negotiated upfront, milestone, and royalty payments: an upfront payment in the amount of $100,000 ; up to $8,100,000 upon the achievement of specified development and regulatory milestones; up to $92,500,000 upon the achievement of specified commercialization milestones; and royalties at a low-single to mid-single digit rates based upon the proportionate net sales of licensed products from any commercialized combination. In June 2016, the Company entered into an amended and restated research collaboration and funding agreement with Blumberg, primarily to: (i) increase the annual funding amount to Blumberg from $1,000,000 to $1,100,000 ; (ii) extend the initial term through to October 29, 2018; (iii) provide an option for the Company to extend the term past October 29, 2018 for two additional one year terms; and (iv) expand our exclusive license under the agreement to include the sole and exclusive right to obtain and exclusive, royalty-bearing, worldwide, and all-fields license under Blumberg's rights in certain other inventions described in the agreement. The amended agreement expired in October 2018, at the end of its initial term. In November 2018, the Company entered into a new two -year master services agreement with Blumberg that expires in November 2020. The new agreement replaces all rights and obligations of the prior research collaboration and funding agreements, as amended. Under the new agreement, Blumberg will perform specific research activities based upon statements of work and the Company will no longer provide a fixed amount of funding to Blumberg. As of March 31, 2019, the Company has executed statements of work with Blumberg for an aggregate cost of $750,000 under this new agreement. Intellectual property that is generated during the research activities is the Company's exclusive property and all financial obligations for it to utilize the intellectual property are satisfied in the upfront cost of the research activities. Under the terms of the new agreement, the Company retains all rights to any inventions arising from performance of the agreement and no license is granted to Blumberg and Drexel, nor are milestones for said inventions due to Blumberg and Drexel. |
Related Party Transaction
Related Party Transaction | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related Party Transactions During the three months ended March 31, 2019, the Company purchased certain research and development services from Genevant. These services are billed at agreed hourly rates and reflective of market rates for such services. The total cost of these services was $33,000 and $0 for the three months ended March 31, 2019 and 2018, respectively, and are included in the Condensed Consolidated Statements of Operations under research, development, collaborations and contracts expenses. Conversely, Genevant purchased certain administrative and transitional services from the Company during the three months ended March 31, 2019 totaling $164,000 , which was netted against research and development expenses in the Condensed Consolidated Statements of Operations. In addition, Genevant has a sublease for 17,900 square feet in the Company's Burnaby facility. Sublease income from Genevant for the three months ended March 31, 2019 of $62,000 was netted against site consolidation costs and lease liability (see notes 7 and 8). |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements and accordingly, do not include all disclosures required for annual financial statements. These statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . These unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments and reclassifications necessary to fairly present the Company's financial position as of March 31, 2019 and the Company's results of operations and cash flows for the three months ended March 31, 2019 and 2018. The results of operations for the three months ended March 31, 2019 and 2018, respectively, are not necessarily indicative of the results for the full year. These unaudited condensed consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the year ended December 31, 2018 , except as described below under Recent Accounting Pronouncements. |
Principles of consolidation | Principles of consolidation These unaudited condensed consolidated financial statements include the accounts of the Company and its two wholly-owned subsidiaries, Arbutus Biopharma Inc. ("Arbutus Inc.") and Arbutus Biopharma US Holdings, Inc. All intercompany transactions and balances have been eliminated in consolidation. |
Income or loss per share | Income or loss per share The Company follows the two-class method when computing net loss attributable to common shareholders per share as the Company has issued Series A participating convertible preferred shares (the "Preferred Shares"), as further described in note 9, that meet the definition of participating securities. The Preferred Shares entitle the holders to participate in dividends but do not require the holders to participate in losses of the Company. Accordingly, if the Company reports a net loss attributable to holders of the Company's common shares, net losses are not allocated to holders of the Preferred Shares. Net loss attributable to common shareholders per share is calculated based on the weighted average number of common shares outstanding. Diluted net loss attributable to common shareholders per share does not differ from basic net loss attributable to common shareholders per share since the effect of the Company’s stock options was anti-dilutive. During the three months ended March 31, 2019 , potential common shares of approximately 26 million ( three months ended March 31, 2018 – approximately 22 million), consisting of the as-if converted number of Preferred Shares and outstanding stock options, were excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive. |
Equity method investment | Equity method investment The Company accounts for its investment in associated companies in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 323, Investments - Equity Method and Joint Ventures ("ASC 323"). In accordance with ASC 323, associated companies are accounted for as equity method investments. Results of associated companies are presented on a one-line basis. Investments in, and advances to, associated companies are presented on a one-line basis in the caption “Investment in Genevant” in the Company's Condensed Consolidated Balance Sheets, net of allowance for losses, which represents the Company's best estimate of probable losses inherent in such assets. The Company's proportionate share of any associated companies' net income or loss is presented on a one-line basis in the caption "Equity investment (loss)" in the Company's Condensed Consolidated Statement of Operations. Transactions between the Company and any associated companies are eliminated on a basis proportional to the Company's ownership interest. Financial results of Genevant Sciences Ltd. ("Genevant") are recorded on a one-quarter lag basis. |
Revenue recognition | Revenue recognition The Company recognizes the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers under a five-step model: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when or as a performance obligation is satisfied. The Company generates revenue primarily through collaboration agreements and license agreements. Such agreements may require the Company to deliver various rights and/or services, including intellectual property rights or licenses and research and development services. Under such agreements, the Company is generally eligible to receive non-refundable upfront payments, funding for research and development services, milestone payments, and royalties. In contracts where the Company has more than one performance obligation to provide its customer with goods or services, each performance obligation is evaluated to determine whether it is distinct based on whether (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available and (ii) the good or service is separately identifiable from other promises in the contract. The consideration under the contract is then allocated between the distinct performance obligations based on their respective relative stand-alone selling prices. The estimated stand-alone selling price of each deliverable reflects the Company's best estimate of what the selling price would be if the deliverable was regularly sold on a stand-alone basis and is determined by reference to market rates for the good or service when sold to others or by using an adjusted market assessment approach if the selling price on a stand-alone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control is transferred to the customer for the related goods or services. Consideration associated with at-risk substantive performance milestones, including sales-based milestones, is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur. Sales-based royalties received in connection with licenses of intellectual property are subject to a specific exception in the revenue standards, whereby the consideration is not included in the transaction price and recognized in revenue until the customer’s subsequent sales or usages occur. |
Recent accounting pronouncements | Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company's financial position or results of operations upon adoption. The Company adopted ASU No. 2016-02, Leases (Topic 842), as of January 1, 2019, using the modified retrospective approach with the effective date transition method (note 8). Accordingly, all periods prior to adoption are presented in accordance with legacy accounting and the Company recorded no retrospective adjustments to the comparative periods presented. In addition, the Company elected the package of practical expedients permitted under the transition guidance within ASC 842, which among other things, allowed the Company to carry forward its historical lease classification. In addition, the Company elected the short term exemption, which allows entities to not capitalize their leases with a term of 12 months or less. Adoption of the new standard resulted in the recording of operating lease right-of-use assets (“ROU assets”) and lease liabilities of approximately $3.2 million and $4.1 million , respectively, as of January 1, 2019. The standard did not materially impact the Company’s consolidated statements of operations and statements of cash flow. In November 2018, the FASB issued targeted amendments to ASU No. 2018-18, Collaborative Arrangements (Topic 808), and ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606), to clarify that certain transactions between parties to collaborative arrangements should be accounted for in accordance with FASB revenue guidance when the counterparty is a customer. This guidance also prohibits the presentation of collaborative arrangements as revenues from contracts with customers if the counterparty is not a customer. This guidance, which is required to be applied retrospectively and is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted, is not expected to have a material impact on the Company’s consolidated financial statements. |
Fair value of financial instruments | Fair value of financial instruments The Company measures certain financial instruments and other items at fair value. To determine the fair value, the Company uses the fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use to value an asset or liability and are developed based on market data obtained from independent sources. Unobservable inputs are inputs based on assumptions about the factors market participants would use to value an asset or liability. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 inputs are quoted market prices for identical instruments available in active markets. • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly. If the asset or liability has a contractual term, the input must be observable for substantially the full term. An example includes quoted market prices for similar assets or liabilities in active markets. • Level 3 inputs are unobservable inputs for the asset or liability and will reflect management’s assumptions about market assumptions that would be used to price the asset or liability. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of basic and diluted net income (loss) per common share | The following table sets out the computation of basic and diluted net income (loss) attributable to shareholders per share: (Expressed in thousands of U.S. dollars, except share and per share amounts) Three months ended March 31, Three months ended March 31, 2019 2018 Numerator: Common Shares Preferred Shares Common Shares Preferred Shares Allocation of distributable earnings $ — $ 2,715 $ — $ 2,336 Allocation of undistributed loss (25,966 ) — (19,765 ) — Allocation of income (loss) attributed to shareholders $ (25,966 ) $ 2,715 $ (19,765 ) $ 2,336 Denominator: Weighted average number of shares - basic and diluted 55,740,121 1,164,000 55,071,964 1,075,467 Basic and diluted net income (loss) attributable to shareholders per share $ (0.47 ) $ 2.33 $ (0.36 ) $ 2.17 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques used to determine such fair value: Level 1 Level 2 Level 3 March 31, 2019 Assets Cash and cash equivalents $ 83,969 — — $ 83,969 Short-term investments 26,621 — — 26,621 Total $ 110,590 $ — $ — $ 110,590 Liabilities Liability-classified options — — $ 414 $ 414 Contingent consideration — — 3,251 3,251 Total $ — $ — $ 3,665 $ 3,665 Level 1 Level 2 Level 3 December 31, 2018 Assets Cash and cash equivalents $ 36,942 — — $ 36,942 Short-term investments 87,675 — — 87,675 Total $ 124,617 $ — $ — $ 124,617 Liabilities Liability-classified options — — $ 479 $ 479 Contingent consideration — — 3,126 3,126 Total $ — $ — $ 3,605 $ 3,605 |
Changes in fair value of liability option | The following table presents the changes in fair value of the Company’s liability-classified stock option awards: Liability at beginning of the period Fair value of liability-classified options exercised in the period Decrease in fair value of liability Liability at end of the period Three months ended March 31, 2018 $ 1,239 $ — $ (51 ) $ 1,188 Three months ended March 31, 2019 $ 479 $ — $ (65 ) $ 414 |
Schedule of changes in fair value of contingent consideration | The following table presents the changes in fair value of the Company’s contingent consideration: Liability at beginning of the period Increase (decrease) in fair value of Contingent Consideration Liability at end of the period Three months ended March 31, 2018 $ 10,424 $ (848 ) $ 9,576 Three months ended March 31, 2019 $ 3,126 $ 125 $ 3,251 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued liabilities | Accounts payable and accrued liabilities are comprised of the following, in thousands: March 31, 2019 December 31, 2018 Trade accounts payable $ 2,344 $ 3,192 Research and development accruals 3,220 2,716 Professional fee accruals 491 871 Payroll accruals 773 2,341 Other accrued liabilities — 309 Total accounts payable and accrued liabilities $ 6,828 $ 9,429 |
Site Consolidation (Tables)
Site Consolidation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of expenses and reserve recorded for site consolidation | Site consolidation expenses were as follows, in thousands: Three months ended March 31, 2019 2018 Employee severance and relocation $ 77 $ 1,621 Facility and other expenses 40 — Total site consolidation expenses $ 117 $ 1,621 Site consolidation activity was as follows, in thousands: Employee severance and relocation Facility and other expenses Total Site consolidation accrual as of December 31, 2018 $ 697 $ 634 $ 1,331 Additional accruals 77 40 117 Payments and adjustments (205 ) (261 ) (466 ) Site consolidation accrual as of March 31, 2019 $ 569 $ 413 $ 982 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Terms, Discount Rate and Supplemental Cash Flow Information | Weighted average remaining lease term and discount rate were as follows: As of March 31, 2019 Weighted average remaining lease term 7.2 Weighted average discount rate 8.7% The Company did not include options to extend its lease terms as part of its ROU asset and lease liabilities. Supplemental cash flow information related to the Company's operating leases was as follows, in thousands: Three months ended March 31, 2019 2018 Cash paid for amounts included in the measurement of lease liabilities $ 312 $ — Right-of-use assets obtained in exchange for lease obligations $ 3,248 $ — |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities were as follows, in thousands: As of March 31, 2019 April through December 2019 $ 745 2020 657 2021 677 2022 581 2023 598 Thereafter 2,038 Total Lease Payments $ 5,296 Less: interest (1,425 ) Present value of lease payments $ 3,871 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019USD ($)subsidiaryshares | Mar. 31, 2018shares | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accounting Policies [Abstract] | ||||
Wholly-owed subsidiaries | subsidiary | 2 | |||
Anti-dilutive common shares excluded from calculation of loss per common share (in shares) | shares | 26,029,535 | 22,095,109 | ||
ROU assets | $ 3,081 | $ 3,200 | $ 0 | |
Lease liabilities | $ 3,272 | $ 4,100 | $ 0 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Computation of Basic and Diluted Income (Loss) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Allocation of distributable earnings | $ 2,715 | $ 2,336 |
Allocation of income (loss) attributed to shareholders | $ (25,966) | $ (19,765) |
Weighted average number of shares - basic and diluted | 55,740,121 | 55,071,964 |
Basic and diluted net income (loss) attributable to shareholders per share | $ (0.47) | $ (0.36) |
Common Shares | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Allocation of undistributed loss | $ (25,966) | $ (19,765) |
Allocation of income (loss) attributed to shareholders | $ (25,966) | $ (19,765) |
Weighted average number of shares - basic and diluted | 55,740,121 | 55,071,964 |
Basic and diluted net income (loss) attributable to shareholders per share | $ (0.47) | $ (0.36) |
Preferred Shares | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Allocation of distributable earnings | $ 2,715 | $ 2,336 |
Allocation of income (loss) attributed to shareholders | $ 2,715 | $ 2,336 |
Weighted average number of shares - basic and diluted | 1,164,000 | 1,075,467 |
Basic and diluted net income (loss) attributable to shareholders per share | $ 2.33 | $ 2.17 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Liabilities | ||||
Contingent consideration | $ 3,251 | $ 3,126 | $ 9,576 | $ 10,424 |
Recurring | ||||
Assets | ||||
Cash and cash equivalents | 83,969 | 36,942 | ||
Short-term investments | 26,621 | 87,675 | ||
Total Assets | 110,590 | 124,617 | ||
Liabilities | ||||
Liability-classified options | 414 | 479 | ||
Contingent consideration | 3,251 | 3,126 | ||
Total Liabilities | 3,665 | 3,605 | ||
Recurring | Level 1 | ||||
Assets | ||||
Cash and cash equivalents | 83,969 | 36,942 | ||
Short-term investments | 26,621 | 87,675 | ||
Total Assets | 110,590 | 124,617 | ||
Liabilities | ||||
Liability-classified options | 0 | 0 | ||
Contingent consideration | 0 | 0 | ||
Total Liabilities | 0 | 0 | ||
Recurring | Level 2 | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Total Assets | 0 | 0 | ||
Liabilities | ||||
Liability-classified options | 0 | 0 | ||
Contingent consideration | 0 | 0 | ||
Total Liabilities | 0 | 0 | ||
Recurring | Level 3 | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Total Assets | 0 | 0 | ||
Liabilities | ||||
Liability-classified options | 414 | 479 | ||
Contingent consideration | 3,251 | 3,126 | ||
Total Liabilities | $ 3,665 | $ 3,605 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Changes in Fair Value of Liabilities-Classified as Stock Option (Details) - Liability classified stock options - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis [Roll Forward] | ||
Liability at beginning of the period | $ 479 | $ 1,239 |
Fair value of liability-classified options exercised in the period | 0 | 0 |
Increase in fair value of liability | (65) | (51) |
Liability at end of the period | $ 414 | $ 1,188 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Changes in Fair Value of Contingent Consideration (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis [Roll Forward] | ||
Liability at beginning of the period | $ 3,126 | $ 10,424 |
Increase (decrease) in fair value of Contingent Consideration | 125 | (848) |
Liability at end of the period | $ 3,251 | $ 9,576 |
Equity Method Investment (Detai
Equity Method Investment (Details) - USD ($) $ in Thousands | Apr. 11, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||||
Investment in Genevant | $ 17,675 | $ 22,224 | ||
Loss on equity method investments | $ 4,651 | $ 0 | ||
Genevant Sciences Corporation | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest in equity method investment | 40.00% | |||
Investment in Genevant | $ 17,700 | |||
Loss on equity method investments | $ 4,700 | |||
Roivant Sciences Ltd | Genevant Sciences Corporation | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Property contribution to investment in Genevant | $ 37,500 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 2,344 | $ 3,192 |
Research and development accruals | 3,220 | 2,716 |
Professional fee accruals | 491 | 871 |
Payroll accruals | 773 | 2,341 |
Other accrued liabilities | 0 | 309 |
Accounts payable and accrued liabilities | $ 6,828 | $ 9,429 |
Site Consolidation - Narrative
Site Consolidation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 14 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Feb. 08, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Site consolidation expense | $ 117 | $ 1,621 | $ 4,900 | |
Facility closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percentage of workforce reduction | 35.00% | |||
Expected total cost of site consolidation | 5,300 | $ 5,300 | ||
Site consolidation expense | $ 40 | $ 0 |
Site Consolidation - Consolidat
Site Consolidation - Consolidation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 14 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Total site consolidation expense | $ 117 | $ 1,621 | $ 4,900 |
Employee severance and relocation | |||
Restructuring Cost and Reserve [Line Items] | |||
Total site consolidation expense | 77 | 1,621 | |
Facility and other expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total site consolidation expense | $ 40 | $ 0 |
Site Consolidation - Reserve Ac
Site Consolidation - Reserve Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 14 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Site consolidation accrual as of December 31, 2018 | $ 1,331 | ||
Additional accruals | 117 | $ 1,621 | $ 4,900 |
Payments and adjustments | (466) | ||
Site consolidation accrual as of March 31, 2019 | 982 | 982 | |
Employee severance and relocation | |||
Restructuring Reserve [Roll Forward] | |||
Site consolidation accrual as of December 31, 2018 | 697 | ||
Additional accruals | 77 | 1,621 | |
Payments and adjustments | (205) | ||
Site consolidation accrual as of March 31, 2019 | 569 | 569 | |
Facility and other expenses | |||
Restructuring Reserve [Roll Forward] | |||
Site consolidation accrual as of December 31, 2018 | 634 | ||
Additional accruals | 40 | $ 0 | |
Payments and adjustments | (261) | ||
Site consolidation accrual as of March 31, 2019 | $ 413 | $ 413 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($)leaserenewal_option | Mar. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Number of leases | lease | 3 | |
Total operating lease expense | $ 400,000 | |
Fixed lease payments | 300,000 | |
Variable lease costs | 100,000 | |
Straight-line fixed expenses leases | 300,000 | |
Sublease income | $ 100,000 | $ 0 |
Corporate Headquarters Located 701 Veterans Circle, Warminster, Pennsylvania | ||
Lessee, Lease, Description [Line Items] | ||
Number of renewal options | renewal_option | 2 | |
Lease renewal term | 5 years | |
Incremental borrowing rate | 9.00% | |
Offices Located at 626 Jacksonville Rd., Warminster, Pennsylvania [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Incremental borrowing rate | 7.60% | |
Sublease, Burnaby Facility | Genevant Sciences Corporation | ||
Lessee, Lease, Description [Line Items] | ||
Incremental borrowing rate | 5.00% |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rate (Details) | Mar. 31, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term | 7 years 2 months 12 days |
Weighted average discount rate | 8.70% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 312 | $ 0 |
Right-of-use assets obtained in exchange for lease obligations | $ 3,248 | $ 0 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
April through December 2019 | $ 745 |
2020 | 657 |
2021 | 677 |
2022 | 581 |
2023 | 598 |
Thereafter | 2,038 |
Total Lease Payments | 5,296 |
Less: interest | (1,425) |
Present value of lease payments | $ 3,871 |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-based Compensation (Details) - USD ($) | Jan. 12, 2018 | Oct. 16, 2017 | Oct. 02, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||
Proceeds from issuance of shares under the agreement | $ 2,248,000 | $ 66,265,000 | ||||
Issuance of common shares pursuant to the agreement | $ 2,248,000 | $ 66,265,000 | ||||
Preferred Shares | ||||||
Class of Stock [Line Items] | ||||||
Shares issued (in shares) | 1,164,000 | |||||
Roivant Sciences Ltd | ||||||
Class of Stock [Line Items] | ||||||
Ownership percentage by noncontrolling owners after conversion | 49.00% | |||||
Maximum ownership percentage by noncontrolling owners | 49.99% | |||||
Proceeds from sale of stock | $ 66,400,000 | $ 50,000,000 | ||||
Roivant Sciences Ltd | Convertible Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Issuance of common shares pursuant to the agreement | $ 116,400,000 | |||||
Preferred stated value (in dollars per share) | $ 7.13 | |||||
Preferred stock dividend rate as a percent | 8.75% | 8.75% | ||||
Number of common shares to be issued upon conversion of convertible preferred stock | 23,000,000 | |||||
Investment commitment period | 4 years | |||||
Open Market Sale Agreement | Jefferies LLC | Common Shares | ||||||
Class of Stock [Line Items] | ||||||
Aggregate sale price of common shares under agreement | $ 50,000,000 | |||||
Number of shares issued under agreement (in sales) | 614,401 | 0 | ||||
Proceeds from issuance of shares under the agreement | $ 2,700,000 |
Contingencies and Commitments (
Contingencies and Commitments (Details) $ in Thousands | Jun. 05, 2016USD ($)research_funding_period_extensions | Jan. 16, 2015USD ($) | Nov. 30, 2018USD ($) | Jun. 30, 2017Legal_proceedings | Nov. 30, 2014USD ($) | Oct. 31, 2014USD ($) | Feb. 28, 2014USD ($)compound_series | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2004USD ($) | Mar. 31, 2004CAD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018CAD ($) | Mar. 31, 2019CAD ($) |
Contingencies and Commitments [Line Items] | |||||||||||||||
Percent of costs funded by TPC | 27.00% | 27.00% | |||||||||||||
Maximum contribution for product | $ 7,179,000 | $ 9,256 | |||||||||||||
Cumulative contribution for product | $ 2,773,000 | $ 3,668 | |||||||||||||
Royalty guarantees commitments percentage | 2.50% | ||||||||||||||
Arbitration with the University of British Columbia | |||||||||||||||
Contingencies and Commitments [Line Items] | |||||||||||||||
Loss contingency, damages sought for allegedly unpaid royalties | $ 3,500,000 | ||||||||||||||
Number of legal proceedings | Legal_proceedings | 3 | ||||||||||||||
Arbutus Inc. | Enantigen | |||||||||||||||
Contingencies and Commitments [Line Items] | |||||||||||||||
Business combination, high end of payment upon achievement of certain triggering events | $ 21,000,000 | ||||||||||||||
Development and regulatory milestones payment per licensed compound series, maximum | 500,000 | ||||||||||||||
Scenario, Forecast | Arbitration with the University of British Columbia | |||||||||||||||
Contingencies and Commitments [Line Items] | |||||||||||||||
Loss contingency, damages sought for allegedly unpaid royalties | $ 10,900,000 | ||||||||||||||
Blumberg and Drexel | Arbutus Inc. | |||||||||||||||
Contingencies and Commitments [Line Items] | |||||||||||||||
Development and regulatory milestones payment per licensed compound series, maximum | $ 1,000,000 | 102,500,000 | $ 3,500,000 | ||||||||||||
Development and regulatory milestones payment per royalty, maximum | 1,000,000 | ||||||||||||||
Sales performance milestones payment per licensed product, maximum | $ 92,500,000 | ||||||||||||||
Number of series of compounds | compound_series | 3 | ||||||||||||||
Blumberg | Arbutus Inc. | |||||||||||||||
Contingencies and Commitments [Line Items] | |||||||||||||||
Research funding per year under research collaboration and funding agreement | $ 1,100,000 | $ 750,000 | $ 1,000,000 | ||||||||||||
Research funding period | 2 years | 3 years | |||||||||||||
Research funding period, renewable option | 1 year | 3 years | |||||||||||||
Research funding agreement exclusive license upfront payment | $ 100,000 | ||||||||||||||
Research funding agreement exclusive license maximum development and regulatory milestone payments | 8,100,000 | ||||||||||||||
Research funding agreement license maximum commercialization milestone payments | $ 92,500,000 | ||||||||||||||
Research funding period, number of renewable options | research_funding_period_extensions | 2 | ||||||||||||||
Royalty | |||||||||||||||
Contingencies and Commitments [Line Items] | |||||||||||||||
Royalty revenue | $ 31,000 | $ 22,000 | |||||||||||||
Marqibo | |||||||||||||||
Contingencies and Commitments [Line Items] | |||||||||||||||
Royalty payable | 1,000 | $ 1,000 | |||||||||||||
Royalties paid or accrued | 26,000 | ||||||||||||||
Contractual obligation | $ 2,747,000 | $ 3,668 | |||||||||||||
License | Blumberg and Drexel | Arbutus Inc. | |||||||||||||||
Contingencies and Commitments [Line Items] | |||||||||||||||
License fee | $ 50,000 | $ 150,000 |
Related Party Transaction (Deta
Related Party Transaction (Details) - Genevant Sciences Corporation - Equity Method Investee $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)ft² | Mar. 31, 2018USD ($) | |
Research and development services | ||
Related Party Transaction [Line Items] | ||
Expenses from transactions with related party | $ 33 | $ 0 |
Administrative And Transitional Services | ||
Related Party Transaction [Line Items] | ||
Income from related party | 164 | |
Sublease, Burnaby Facility | ||
Related Party Transaction [Line Items] | ||
Income from related party | $ 62 | |
Area of sublease facility | ft² | 17,900 |