Kodiak Sciences (KOD) 10-Q 14 Nov 23 2023 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Trading Symbol	KOD
Entity Registrant Name	KODIAK SCIENCES INC.
Entity Central Index Key	0001468748
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		52,472,291
Entity File Number	001-38682
Entity Tax Identification Number	27-0476525
Entity Address, Address Line One	1200 Page Mill Road
Entity Address, City or Town	Palo Alto
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94304
City Area Code	650
Local Phone Number	281-0850
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common stock, par value $0.0001
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 345,668	$ 190,433
Marketable securities	0	288,500
Prepaid expenses and other current assets	5,259	7,072
Total current assets	350,927	486,005
Restricted cash	6,324	6,324
Property and equipment, net	125,190	56,384
Operating lease right-of-use asset	56,479	59,369
Other assets	8,732	58,546
Total assets	547,652	666,628
Current liabilities:
Accounts payable	38,589	9,130
Accrued and other current liabilities	23,170	33,440
Operating lease liability	9,015	9,926
Total current liabilities	70,774	52,496
Operating lease liability, net of current portion	74,461	77,807
Liability related to sale of future royalties	100,000	99,996
Other liabilities	0	162
Total liabilities	245,235	230,461
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock, $0.0001 par value, 10,000,000 shares authorized: 0 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	0	0
Common stock, $0.0001 par value, 490,000,000 shares authorized at September 30, 2023 and December 31, 2022; 52,467,291 and 52,333,850 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	5	5
Additional paid-in capital	1,395,427	1,329,509
Accumulated other comprehensive income (loss)	0	(1,307)
Accumulated deficit	(1,093,015)	(892,040)
Total stockholders’ equity	302,417	436,167
Total liabilities and stockholders’ equity	$ 547,652	$ 666,628

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) (unaudited) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	490,000,000	490,000,000
Common stock, shares issued	52,467,291	52,333,850
Common stock, shares outstanding	52,467,291	52,333,850

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating expenses
Research and development	$ 36,188	$ 61,676	$ 159,669	$ 211,597
General and administrative	18,312	17,802	54,278	55,716
Total operating expenses	54,500	79,478	213,947	267,313
Loss from operations	(54,500)	(79,478)	(213,947)	(267,313)
Interest income	4,536	2,484	12,836	4,054
Interest expense	(5)	(4)	(13)	(14)
Other income (expense), net	(38)	(40)	149	(102)
Net loss	$ (50,007)	$ (77,038)	$ (200,975)	$ (263,375)
Net loss per common share, basic	$ (0.95)	$ (1.47)	$ (3.84)	$ (5.04)
Net loss per common share, diluted	$ (0.95)	$ (1.47)	$ (3.84)	$ (5.04)
Weighted-average shares of common stock outstanding used in computing net loss per common share, Basic	52,455,620	52,288,257	52,391,083	52,227,072
Weighted-average shares of common stock outstanding used in computing net loss per common share, Diluted	52,455,620	52,288,257	52,391,083	52,227,072
Other comprehensive income (loss)
Change in unrealized gains (losses) related to available-for-sale debt securities, net of tax	$ 0	$ (636)	$ 1,307	$ (2,505)
Total other comprehensive income (loss)	0	(636)	1,307	(2,505)
Comprehensive loss	$ (50,007)	$ (77,674)	$ (199,668)	$ (265,880)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning Balance at Dec. 31, 2021	$ 663,320	$ 5	$ 1,221,532	$ 0	$ (558,217)
Beginning balance, shares at Dec. 31, 2021		51,826,257
Issuance of common stock upon exercise of stock options	1,678		1,678
Issuance of common stock upon exercise of stock options, shares		110,043
Issuance of common stock upon vesting of restricted stock units, shares		3,581
Stock-based compensation expense	28,095		28,095
Net loss	(95,709)				(95,709)
Ending Balance at Mar. 31, 2022	597,384	$ 5	1,251,305	0	(653,926)
Ending balance, shares at Mar. 31, 2022		51,939,881
Beginning Balance at Dec. 31, 2021	663,320	$ 5	1,221,532	0	(558,217)
Beginning balance, shares at Dec. 31, 2021		51,826,257
Other comprehensive income	(2,505)
Net loss	(263,375)
Ending Balance at Sep. 30, 2022	479,529	$ 5	1,303,621	(2,505)	(821,592)
Ending balance, shares at Sep. 30, 2022		52,304,154
Beginning Balance at Mar. 31, 2022	597,384	$ 5	1,251,305	0	(653,926)
Beginning balance, shares at Mar. 31, 2022		51,939,881
Issuance of common stock upon exercise of stock options	2		2
Issuance of common stock upon exercise of stock options, shares		320
Issuance of common stock upon vesting of restricted stock units, shares		74,148
Issuance of common stock pursuant to employee stock purchase plan	64		64
Issuance of common stock pursuant to employee stock purchase plan, shares		10,272
Other comprehensive income	(1,869)			(1,869)
Stock-based compensation expense	25,978		25,978
Net loss	(90,628)				(90,628)
Ending Balance at Jun. 30, 2022	530,931	$ 5	1,277,349	(1,869)	(744,554)
Ending balance, shares at Jun. 30, 2022		52,024,621
Issuance of common stock upon exercise of stock options	90		90
Issuance of common stock upon exercise of stock options, shares		16,636
Issuance of common stock upon vesting of restricted stock units, shares		13,198
Issuance of common stock upon exercise of common stock warrants, shares		249,699
Other comprehensive income	(636)			636
Stock-based compensation expense	26,182		26,182
Net loss	(77,038)				(77,038)
Ending Balance at Sep. 30, 2022	479,529	$ 5	1,303,621	(2,505)	(821,592)
Ending balance, shares at Sep. 30, 2022		52,304,154
Beginning Balance at Dec. 31, 2022	436,167	$ 5	1,329,509	(1,307)	(892,040)
Beginning balance, shares at Dec. 31, 2022		52,333,850
Issuance of common stock upon exercise of stock options	9		9
Issuance of common stock upon exercise of stock options, shares		1,098
Issuance of common stock upon vesting of restricted stock units, shares		9,793
Other comprehensive income	1,211			1,211
Stock-based compensation expense	25,980		25,980
Net loss	(70,780)				(70,780)
Ending Balance at Mar. 31, 2023	392,587	$ 5	1,355,498	(96)	(962,820)
Ending balance, shares at Mar. 31, 2023		52,344,741
Beginning Balance at Dec. 31, 2022	436,167	$ 5	1,329,509	(1,307)	(892,040)
Beginning balance, shares at Dec. 31, 2022		52,333,850
Other comprehensive income	1,307
Net loss	(200,975)
Ending Balance at Sep. 30, 2023	302,417	$ 5	1,395,427	0	(1,093,015)
Ending balance, shares at Sep. 30, 2023		52,467,291
Beginning Balance at Mar. 31, 2023	392,587	$ 5	1,355,498	(96)	(962,820)
Beginning balance, shares at Mar. 31, 2023		52,344,741
Issuance of common stock upon exercise of stock options	51		51
Issuance of common stock upon exercise of stock options, shares		6,430
Issuance of common stock upon vesting of restricted stock units, shares		76,152
Issuance of common stock pursuant to employee stock purchase plan	131		131
Issuance of common stock pursuant to employee stock purchase plan, shares		25,840
Other comprehensive income	96			96
Stock-based compensation expense	25,801		25,801
Net loss	(80,188)				(80,188)
Ending Balance at Jun. 30, 2023	338,478	$ 5	1,381,481	0	(1,043,008)
Ending balance, shares at Jun. 30, 2023		52,453,163
Issuance of common stock upon vesting of restricted stock units, shares		14,128
Other comprehensive income	0
Stock-based compensation expense	13,946		13,946
Net loss	(50,007)				(50,007)
Ending Balance at Sep. 30, 2023	$ 302,417	$ 5	$ 1,395,427	$ 0	$ (1,093,015)
Ending balance, shares at Sep. 30, 2023		52,467,291

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities
Net loss	$ (200,975)	$ (263,375)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	13,572	2,234
Stock-based compensation	65,727	80,255
Net amortization (accretion) of premium (discount) on marketable securities	(846)	(748)
Settlement of derivative contracts	(314)	0
Amortization of operating lease right-of-use asset	5,711	5,458
Amortization of issuance costs	4	39
Changes in assets and liabilities:
Prepaid expenses and other current assets	6,994	(2,939)
Other assets	410	7,198
Accounts payable	3,114	7,089
Accrued and other current liabilities	(8,263)	5,401
Operating lease liability	(7,078)	8,004
Net cash provided by (used in) operating activities	(121,944)	(151,384)
Cash flows from investing activities
Purchase of property and equipment	(13,866)	(33,958)
Deposits on property and equipment	(77)	(7,787)
Purchase of marketable securities	(49,347)	(427,766)
Maturities of marketable securities	340,000	66,000
Proceeds from derivative activity	314	0
Net cash provided by (used in) investing activities	277,024	(403,511)
Net cash provided by (used in) financing activities
Proceeds from issuance of common stock upon options exercise	60	1,770
Proceeds from issuance of common stock pursuant to employee stock purchase plans	131	64
Principal payments of tenant improvement allowance payable	(36)	(36)
Net cash provided by financing activities	155	1,798
Net increase (decrease) in cash, cash equivalents and restricted cash	155,235	(553,097)
Cash, cash equivalents and restricted cash, at beginning of period	196,757	737,834
Cash, cash equivalents and restricted cash, at end of period	351,992	184,737
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets
Cash and cash equivalents	345,668	178,413
Restricted cash	6,324	6,324
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations, Total	351,992	184,737
Supplemental disclosures of non-cash investing and financing information:
Operating lease right-of-use asset obtained in exchange for operating lease liability	2,668	(170)
Purchase of property and equipment under accounts payable and accruals	$ 27,465	$ 4,320

The Company

The Company	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	1. The Company Kodiak Sciences Inc. (the “Company”) is a clinical stage biopharmaceutical company committed to researching, developing and commercializing transformative therapeutics to treat high prevalence retinal diseases. The Company devotes substantially all of its resources to the research and development of its product platforms and product candidates including activities to conduct clinical studies of its product candidates, manufacture product candidates and provide general and administrative support for these operations. Liquidity As of September 30, 2023, the Company had cash and cash equivalents of $ 345.7 million. Although the Company has incurred significant operating losses since inception and expects to continue to incur operating losses and negative operating cash flows for the foreseeable future, the Company believes that the cash and cash equivalents will be sufficient to meet the anticipated operating and capital expenditure requirements for the 12 months following the date of this Quarterly Report on Form 10-Q.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to interim periods. The condensed consolidated financial statements, in the opinion of management, include all normal and recurring adjustments necessary to state fairly the Company's financial position and results of operations for the reported periods. These condensed consolidated financial statements have been prepared on a basis substantially consistent with, and should be read in conjunction with the audited financial statements for the year ended December 31, 2022 and notes thereto, the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 28, 2023. Certain information and note disclosures normally included in the audited financial statements prepared in accordance with GAAP have been condensed or omitted from this report. The results of operations for any interim period are not necessarily indicative of the results for the year ending December 31, 2023, or for any future period. The accompanying condensed consolidated financial statements reflect the operations of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. Reclassification Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and expenses during the reporting period. Such estimates include, but are not limited to, accrued research and development and stock-based compensation. Actual results could differ from those estimates . Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. Recoverability is measured by comparison of the carrying amount of the assets to the estimated undiscounted net cash flows which the assets are expected to generate. If such assets are deemed not recoverable, an impairment loss is recognized in the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. For the three months ended September 30, 2023, the Company assessed the recoverability of its long-lived assets based on the Company’s decision to wind-down the tarcocimab program following the topline results from the Phase 3 GLEAM and GLIMMER studies. The Company determined that the estimated undiscounted net cash flows which the assets are forecasted to generate exceeded the carrying amount of the assets. Therefore, no impairment loss was recognized in the period. Risks and Uncertainties Global economic and business activities continue to face widespread macroeconomic uncertainties, including health epidemics, labor shortages, bank failures, inflation and monetary supply shifts, recession risks and potential disruptions from the geopolitical conflicts. The Company continues to actively monitor the impact of these macroeconomic factors on its financial condition, liquidity, operations, and workforce. The extent of the impact of these factors on the Company’s operational and financial performance, including its ability to execute its business strategies and initiatives in the expected timeframe, will depend on future developments, which are uncertain and cannot be predicted; however, any continued or renewed disruption resulting from these factors could negatively impact the Company’s business. The Company’s future results of operations involve a number of risks and uncertainties common to clinical stage companies in the biotechnology industry. The Company’s product candidates are in development and the Company operates in an environment of rapid change in technology and substantial competition from other pharmaceutical and biotechnology companies. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s potential drug candidates, uncertainty of market acceptance of any of the Company’s product candidates that receive regulatory approval, competition from new technological innovations, substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals, contract manufacturer and research organizations, and other suppliers. Products developed by the Company require approvals from the U.S. Food and Drug Administration (“FDA”) or other international regulatory agencies prior to commercial sales. There can be no assurance that any of the Company’s product candidates will receive the necessary approvals. If the Company is denied approval, approval is delayed or the Company is unable to maintain approvals, it could have a materially adverse impact on the Company. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to complete clinical trials, launch and commercialize any product candidates for which it receives regulatory approval. There can be no assurance that such financing will be available or will be on terms acceptable by the Company. Summary of Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements for the three and nine months ended September 30, 2023, are consistent with those discussed in Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 , except as noted below within the “Recent Accounting Pronouncements” section. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB"), under its Accounting Standards Codification ("ASC") or other standard setting bodies and adopted by the Company as of the specified effective date. There have been no new accounting pronouncements issued nor adopted during the three and nine months ended September 30, 2023 that are of significance to the Company.

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	9 Months Ended
	Sep. 30, 2023
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued and Other Current Liabilities	3. Accrued and Other Current Liabilities Accrued and other current liabilities consist of the following (in thousands): September 30, December 31, Accrued clinical trial and related costs $ 9,791 $ 18,334 Accrued manufacturing and research & development costs 6,306 5,978 Accrued salaries and benefits 5,405 6,033 Accrued legal fees and professional fees 176 283 Accrued property and equipment — 1,893 Accrued other liabilities 1,492 919 Total accrued and other current liabilities $ 23,170 $ 33,440

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements The following tables present the Company’s fair value hierarchy for assets measured at fair value on a recurring basis (in thousands): Fair Value Measurements at September 30, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 331,478 $ — $ — $ 331,478 Marketable securities: U.S. treasury securities — — — — Total $ 331,478 $ — $ — $ 331,478 Fair Value Measurements at December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 173,617 $ — $ — $ 173,617 Marketable securities: U.S. treasury securities — 288,500 — 288,500 Total $ 173,617 $ 288,500 $ — $ 462,117 As of September 30, 2023 , the fair value of the liability related to sale of future royalties is based on the Company's current estimates of future royalties expected to be paid to Baker Bros. Advisors, LP (“BBA”), which are considered Level 3 inputs.

Marketable Securities

Marketable Securities	9 Months Ended
	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	5. Marketable Securities Marketable securities are classified as available-for-sale. The Company obtains fair value measurement data from third party pricing services and understands the valuation methods and data sources to validate this information. The following table presents the Company's marketable securities by major security type (in thousands): As of December 31, 2022 Amortized Unrealized Unrealized Fair U.S. treasury securities $ 289,807 $ — $ ( 1,307 ) $ 288,500 Total $ 289,807 $ — $ ( 1,307 ) $ 288,500 As of September 30, 2023, there were no marketable securities. There were no reclassifications out of accumulated other comprehensive income (loss), impairment charges or recoveries and no allowance for credit losses recorded during the nine months ended September 30, 2023 .

Derivatives

Derivatives	9 Months Ended
	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	6. Derivatives The Company uses certain derivative instruments, that are not designated as hedges for accounting purposes, which include foreign currency forward contracts. As of September 30, 2023 , the Company did not have any outstanding derivative instruments.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Ursus Facility In August 2020, the Company and its wholly owned subsidiary Kodiak Sciences GmbH entered into a manufacturing agreement with Lonza Ltd (“Lonza”) for the clinical and commercial supply of the Company’s antibody biopolymer conjugate drug substance which included a custom-built manufacturing facility. The manufacturing agreement has an initial term of eight years , and the Company has the right to extend the term up to a total of 16 years. The Company and Lonza each have the ability to terminate this agreement upon the occurrence of certain events. In April 2021, the agreement was amended to provide for greater manufacturing flexibility, to define a comprehensive mandate as an antibody biopolymer conjugates manufacturing facility to be used for the Company’s antibody biopolymer conjugates pipeline, at clinical as well as commercial scales, across a broad capacity range under the tight quality controls required for ophthalmology and retinal medicines, and to allow for future process and equipment changes as needed. The Company expanded and finalized the design and scope of the antibody biopolymer conjugates manufacturing facility with a revised estimated capital contribution of approximately 75.0 million Swiss Francs. Over the period from 2022 through 2030, manufacturing payments totaling approximately 150.0 million Swiss Francs may be incurred for the potential clinical and commercial supply of tarcocimab and other antibody biopolymer conjugates medicines based on the amended agreement. The Company concluded that this agreement contained an embedded lease as the custom-built manufacturing suite would be dedicated for the Company’s use. On January 31, 2023, the custom-built manufacturing suite was commissioned as a cGMP facility. The consideration was allocated to lease and non-lease components as this agreement contained a significant service component (manufacturing services). The Company recognized an operating lease right-of-use asset and corresponding liability based on the present value of remaining lease payments discounted at the Company’s estimated incremental borrowing rate of 6.3 % over the remaining lease term of 7.2 years. The Company determined that the renewal options were not reasonably certain at lease inception. The Company recognized $ 0.1 million and $ 0.4 million as part of operating lease costs during the three and nine months ended September 30, 2023, respectively. Fixed assets of approximately 75.0 million Swiss Francs, equivalent to $ 81.7 million, in leasehold improvements and machinery and equipment, were placed in service and capitalized as of January 31, 2023. As of September 30, 2023 , $ 26.8 million of these fixed assets were unpaid and recorded under accounts payable on the condensed consolidated balance sheet. Manufacturing Agreements The Company has entered into service and equipment purchase agreements in the normal course of business with various providers, pursuant to which such providers agreed to perform activities in connection with the manufacturing process of certain materials. These agreements, and any related amendments, state that planned activities and purchases that are included in the signed work orders are, in some cases, binding and, hence, obligate the Company to pay the full price of the work order upon satisfactory delivery of products and services or obligate the Company to the binding amount regardless of whether such planned activities are in fact performed. Per the terms of the agreements, the Company has the option to cancel signed orders at any time upon written notice, which may or may not be subject to payment of a cancellation fee. The level of cancellation fees may be dependent on the timing of the written notice in relation to the commencement date of the work, with the maximum cancellation amount dependent on the agreement or the work order. Other Funding Commitments In the normal course of business, the Company enters into agreements with third-parties for services to be provided to the Company. Generally, these agreements provide for termination upon notice, with specified amounts due upon termination based on the timing of termination and the terms of the agreement. The actual amounts and timing of payments under these agreements are uncertain and contingent upon the initiation and completion of services to be provided to the Company. The Company has also entered into various cancellable license agreements for certain technology. The Company may be obligated to make payments on future sales of specified products associated with such license agreements. Such payments are dependent on future product sales and are not estimable. Legal Proceedings From time to time, the Company may become involved in legal proceedings arising from the ordinary course of its business. Management is currently not aware of any matters that could have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company records a legal liability when it believes that it is both probable that a liability may be imputed, and the amount of the liability can be reasonably estimated. Significant judgment by the Company is required to determine both probability and the estimated amount. Indemnification To the extent permitted under Delaware law, the Company has agreed to indemnify its directors and officers for certain events or occurrences while the director or officer is, or was serving, at the Company’s request in such capacity. The indemnification period covers all pertinent events and occurrences during the director’s or officer’s service. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is not specified in the agreements; however, the Company has director and officer insurance coverage that reduces its exposure and enables the Company to recover a portion of any future amounts paid. The Company believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	8. Stock-Based Compensation In January 2023 and 2022 , the number of shares of common stock available for issuance under the 2018 Equity Incentive Plan (the "2018 Plan") was increased by approximately 2.1 million shares in each period, as a result of the automatic increase provision in the 2018 Plan. Stock Options Stock option activity, including stock options and performance-based stock options under the 2021 Long-Term Performance Incentive Plan (“2021 LTPIP”), 2018 Plan and 2015 Plan is summarized as follows : Number Weighted Weighted Aggregate Outstanding at December 31, 2022 16,542,107 $ 51.48 7.91 $ 5,410 Granted 3,285,000 $ 7.12 Exercised ( 7,528 ) $ 7.96 Forfeited or canceled ( 1,190,462 ) $ 54.95 Outstanding at September 30, 2023 18,629,117 $ 43.45 7.28 $ 342 Restricted Shares Restricted share activity, including restricted stock awards, restricted stock units, and performance-based restricted stock units, under the 2018 Plan is summarized as follows: Number of Weighted Unvested at December 31, 2022 280,522 $ 60.17 Granted 27,250 $ 6.09 Vested ( 100,073 ) $ 63.59 Canceled ( 21,432 ) $ 62.27 Unvested at September 30, 2023 186,267 $ 50.18 Stock-Based Compensation Expense Stock-based compensation is classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Research and development $ 2,733 $ 14,947 $ 32,093 $ 45,031 General and administrative 11,213 11,235 33,634 35,224 Total stock-based compensation $ 13,946 $ 26,182 $ 65,727 $ 80,255

Net Loss per Common Share

Net Loss per Common Share	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Net Loss per Common Share	9. Net Loss per Common Share The following common share equivalents were excluded from the computation of diluted net loss per common share for the periods presented because their inclusion would have been antidilutive: As of September 30, 2023 2022 Outstanding stock options 18,629,117 16,621,343 Unvested restricted shares 186,267 283,877 Total 18,815,384 16,905,220

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Basis Of Presentation And Principles Of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to interim periods. The condensed consolidated financial statements, in the opinion of management, include all normal and recurring adjustments necessary to state fairly the Company's financial position and results of operations for the reported periods. These condensed consolidated financial statements have been prepared on a basis substantially consistent with, and should be read in conjunction with the audited financial statements for the year ended December 31, 2022 and notes thereto, the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 28, 2023. Certain information and note disclosures normally included in the audited financial statements prepared in accordance with GAAP have been condensed or omitted from this report. The results of operations for any interim period are not necessarily indicative of the results for the year ending December 31, 2023, or for any future period. The accompanying condensed consolidated financial statements reflect the operations of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated.
Reclassification	Reclassification Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and expenses during the reporting period. Such estimates include, but are not limited to, accrued research and development and stock-based compensation. Actual results could differ from those estimates .
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. Recoverability is measured by comparison of the carrying amount of the assets to the estimated undiscounted net cash flows which the assets are expected to generate. If such assets are deemed not recoverable, an impairment loss is recognized in the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. For the three months ended September 30, 2023, the Company assessed the recoverability of its long-lived assets based on the Company’s decision to wind-down the tarcocimab program following the topline results from the Phase 3 GLEAM and GLIMMER studies. The Company determined that the estimated undiscounted net cash flows which the assets are forecasted to generate exceeded the carrying amount of the assets. Therefore, no impairment loss was recognized in the period.
Risk and Uncertainties	Risks and Uncertainties Global economic and business activities continue to face widespread macroeconomic uncertainties, including health epidemics, labor shortages, bank failures, inflation and monetary supply shifts, recession risks and potential disruptions from the geopolitical conflicts. The Company continues to actively monitor the impact of these macroeconomic factors on its financial condition, liquidity, operations, and workforce. The extent of the impact of these factors on the Company’s operational and financial performance, including its ability to execute its business strategies and initiatives in the expected timeframe, will depend on future developments, which are uncertain and cannot be predicted; however, any continued or renewed disruption resulting from these factors could negatively impact the Company’s business. The Company’s future results of operations involve a number of risks and uncertainties common to clinical stage companies in the biotechnology industry. The Company’s product candidates are in development and the Company operates in an environment of rapid change in technology and substantial competition from other pharmaceutical and biotechnology companies. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s potential drug candidates, uncertainty of market acceptance of any of the Company’s product candidates that receive regulatory approval, competition from new technological innovations, substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals, contract manufacturer and research organizations, and other suppliers. Products developed by the Company require approvals from the U.S. Food and Drug Administration (“FDA”) or other international regulatory agencies prior to commercial sales. There can be no assurance that any of the Company’s product candidates will receive the necessary approvals. If the Company is denied approval, approval is delayed or the Company is unable to maintain approvals, it could have a materially adverse impact on the Company. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to complete clinical trials, launch and commercialize any product candidates for which it receives regulatory approval. There can be no assurance that such financing will be available or will be on terms acceptable by the Company.
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements for the three and nine months ended September 30, 2023, are consistent with those discussed in Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 , except as noted below within the “Recent Accounting Pronouncements” section.
Recent accounting pronouncements	Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB"), under its Accounting Standards Codification ("ASC") or other standard setting bodies and adopted by the Company as of the specified effective date. There have been no new accounting pronouncements issued nor adopted during the three and nine months ended September 30, 2023 that are of significance to the Company.

Accrued and Other Current Lia_2

Accrued and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2023
Accounts Payable and Accrued Liabilities, Current [Abstract]
Schedule of Accrued and Other Current Liabilities	Accrued and other current liabilities consist of the following (in thousands): September 30, December 31, Accrued clinical trial and related costs $ 9,791 $ 18,334 Accrued manufacturing and research & development costs 6,306 5,978 Accrued salaries and benefits 5,405 6,033 Accrued legal fees and professional fees 176 283 Accrued property and equipment — 1,893 Accrued other liabilities 1,492 919 Total accrued and other current liabilities $ 23,170 $ 33,440

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Summary of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present the Company’s fair value hierarchy for assets measured at fair value on a recurring basis (in thousands): Fair Value Measurements at September 30, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 331,478 $ — $ — $ 331,478 Marketable securities: U.S. treasury securities — — — — Total $ 331,478 $ — $ — $ 331,478 Fair Value Measurements at December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 173,617 $ — $ — $ 173,617 Marketable securities: U.S. treasury securities — 288,500 — 288,500 Total $ 173,617 $ 288,500 $ — $ 462,117

Marketable Securities (Tables)

Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Summary of Marketable Securities	The following table presents the Company's marketable securities by major security type (in thousands): As of December 31, 2022 Amortized Unrealized Unrealized Fair U.S. treasury securities $ 289,807 $ — $ ( 1,307 ) $ 288,500 Total $ 289,807 $ — $ ( 1,307 ) $ 288,500

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of stock options and performance-based stock options under 2021 LTPIP, 2018 Plan and 2015 Plan.	Stock option activity, including stock options and performance-based stock options under the 2021 Long-Term Performance Incentive Plan (“2021 LTPIP”), 2018 Plan and 2015 Plan is summarized as follows : Number Weighted Weighted Aggregate Outstanding at December 31, 2022 16,542,107 $ 51.48 7.91 $ 5,410 Granted 3,285,000 $ 7.12 Exercised ( 7,528 ) $ 7.96 Forfeited or canceled ( 1,190,462 ) $ 54.95 Outstanding at September 30, 2023 18,629,117 $ 43.45 7.28 $ 342
Summary of Restricted Shares	Restricted share activity, including restricted stock awards, restricted stock units, and performance-based restricted stock units, under the 2018 Plan is summarized as follows: Number of Weighted Unvested at December 31, 2022 280,522 $ 60.17 Granted 27,250 $ 6.09 Vested ( 100,073 ) $ 63.59 Canceled ( 21,432 ) $ 62.27 Unvested at September 30, 2023 186,267 $ 50.18
Summary of Stock-based Compensation for Options and Restricted Shares Classified in Condensed Consolidated Statements of Operations and Comprehensive Loss	Stock-based compensation is classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Research and development $ 2,733 $ 14,947 $ 32,093 $ 45,031 General and administrative 11,213 11,235 33,634 35,224 Total stock-based compensation $ 13,946 $ 26,182 $ 65,727 $ 80,255

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Summary of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss per Common Share	The following common share equivalents were excluded from the computation of diluted net loss per common share for the periods presented because their inclusion would have been antidilutive: As of September 30, 2023 2022 Outstanding stock options 18,629,117 16,621,343 Unvested restricted shares 186,267 283,877 Total 18,815,384 16,905,220

The Company - Additional Inform

The Company - Additional Information (Details) $ in Millions	Sep. 30, 2023 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash, cash equivalents and marketable securities	$ 345.7

Accrued and Other Current Lia_3

Accrued and Other Current Liabilities - Schedule of Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued clinical trial and related costs	$ 9,791	$ 18,334
Accrued manufacturing and research & development costs	6,306	5,978
Accrued salaries and benefits	5,405	6,033
Accrued legal fees and professional fees	176	283
Accrued property and equipment	0	1,893
Accrued other liabilities	1,492	919
Total accrued and other current liabilities	$ 23,170	$ 33,440

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Fair Value Hierarchy for Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	$ 331,478	$ 462,117
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	331,478	173,617
U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	0	288,500
Quoted Price in Active Markets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	331,478	173,617
Quoted Price in Active Markets (Level 1) | Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	331,478	173,617
Quoted Price in Active Markets (Level 1) | U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	0	0
Significant Observable Inputs (Level 2)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	0	288,500
Significant Observable Inputs (Level 2) | Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Significant Observable Inputs (Level 2) | U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	0	288,500
Significant Unobservable Inputs (Level 3)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	0	0
Significant Unobservable Inputs (Level 3) | Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Significant Unobservable Inputs (Level 3) | U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	$ 0	$ 0

Marketable Securities - Summary

Marketable Securities - Summary of Marketable Securities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Marketable Securities [Line Items]
Amortized Cost, current	$ 289,807
Unrealized Gains, Current	0
Unrealized Losses, Current	(1,307)
Fair Value, current	288,500
U.S. Treasury Securities
Marketable Securities [Line Items]
Amortized Cost, current	289,807
Unrealized Gains, Current	0
Unrealized Losses, Current	(1,307)
Fair Value, current	$ 288,500

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Aug. 31, 2020	Sep. 30, 2023	Sep. 30, 2023
Commitments And Contingencies Disclosure [Line Items]
Operating lease cost		$ 0.1	$ 0.4
Subordinated borrowing, interest rate			6.30%
Manufacturing agreement capital contributions fixed assets		75	$ 75
Manufacturing agreement expense			$ 150
Manufacturing agreement, initial term			7 years 2 months 12 days
Lease liabilities		26.8	$ 26.8
Lonza
Commitments And Contingencies Disclosure [Line Items]
Manufacturing agreement capital contributions fixed assets		75	75
Leasehold improvements and machinery and equipment		$ 81.7	$ 81.7
Manufacturing Agreement | Clinical and Commercial Supply of Drug Substance | Maximum | Lonza
Commitments And Contingencies Disclosure [Line Items]
Manufacturing agreement, initial term	8 years
Manufacturing agreement, extended term	16 years

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details)	1 Months Ended
	Jan. 31, 2023 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock available for issuance increased	2,100,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Options Activity Under 2018 Plan and 2015 Equity Incentive Plan (Details) - 2018 Plan, 2015 Equity Incentive Plan and 2021 LTPIP - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Number of Options
Beginning balance	16,542,107
Granted	3,285,000
Exercised	(7,528)
Forfeited or canceled	(1,190,462)
Ending balance	18,629,117	16,542,107
Weighted Average Exercise Price
Beginning balance	$ 51.48
Granted	7.12
Exercised	7.96
Forfeited or canceled	54.95
Ending balance	$ 43.45	$ 51.48
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value
Weighted Average Remaining Contractual Term (in years)	7 years 3 months 10 days	7 years 10 months 28 days
Aggregate Intrinsic Value	$ 342	$ 5,410

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Restricted Shares (Details) - Restricted Shares	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, beginning balance | shares	280,522
Granted | shares	27,250
Vested | shares	(100,073)
Canceled | shares	(21,432)
Unvested, ending balance | shares	186,267
Weighted Average Grant Date Fair Value
Unvested, beginning balance | $ / shares	$ 60.17
Granted | $ / shares	6.09
Vested | $ / shares	63.59
Canceled | $ / shares	62.27
Unvested, ending balance | $ / shares	$ 50.18

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Stock-based Compensation for Options and Restricted Shares Classified in Condensed Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 13,946	$ 26,182	$ 65,727	$ 80,255
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	2,733	14,947	32,093	45,031
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 11,213	$ 11,235	$ 33,634	$ 35,224

Net Loss per Common Share - Sum

Net Loss per Common Share - Summary of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss per Common Share (Details) - shares	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per common share	18,815,384	16,905,220
Outstanding Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per common share	18,629,117	16,621,343
Unvested Restricted Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per common share	186,267	283,877