Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 03, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36579 | |
Entity Registrant Name | Adverum Biotechnologies, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-5258327 | |
Entity Address, Address Line One | 800 Saginaw Drive, | |
Entity Address, City or Town | Redwood City | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94063 | |
City Area Code | 650 | |
Local Phone Number | 656-9323 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Trading Symbol | ADVM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 80,656,651 | |
Entity Central Index Key | 0001501756 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 27,359 | $ 65,897 |
Short-term investments | 252,780 | 100,138 |
Prepaid expenses and other current assets | 2,542 | 9,835 |
Total current assets | 282,681 | 175,870 |
Operating lease right-of-use assets | 20,011 | 20,963 |
Property and equipment, net | 27,466 | 24,884 |
Restricted cash | 999 | 999 |
Deposit and other long-term assets | 19 | 11 |
Total assets | 331,176 | 222,727 |
Current liabilities: | ||
Accounts payable | 10,367 | 4,103 |
Accrued expenses and other current liabilities | 6,666 | 11,271 |
Lease liability, current portion | 4,221 | 4,034 |
Total current liabilities | 21,254 | 19,408 |
Lease liability, net of current portion | 27,258 | 28,214 |
Other non-current liabilities | 101 | 148 |
Total liabilities | 48,613 | 47,770 |
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 8 | 7 |
Additional paid-in capital | 720,288 | 560,704 |
Accumulated other comprehensive loss | (598) | (725) |
Accumulated deficit | (437,135) | (385,029) |
Total stockholders’ equity | 282,563 | 174,957 |
Total liabilities and stockholders' equity | $ 331,176 | $ 222,727 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating expenses: | ||||
Research and development | $ 19,177 | $ 8,970 | $ 33,928 | $ 19,101 |
General and administrative | 10,598 | 7,132 | 19,638 | 12,708 |
Total operating expenses | 29,775 | 16,102 | 53,566 | 31,809 |
Operating loss | (29,775) | (16,102) | (53,566) | (31,809) |
Other income, net | 575 | 1,148 | 1,460 | 2,366 |
Net loss | (29,200) | (14,954) | (52,106) | (29,443) |
Other comprehensive loss: | ||||
Net unrealized gain on marketable securities | 194 | 20 | 140 | 23 |
Foreign currency translation adjustment | 41 | (4) | (13) | 38 |
Comprehensive loss | $ (28,965) | $ (14,938) | $ (51,979) | $ (29,382) |
Net loss per share — basic and diluted (in USD per share) | $ (0.36) | $ (0.23) | $ (0.68) | $ (0.46) |
Weighted-average common shares used to compute net loss per share - basic and diluted (in shares) | 80,229 | 63,740 | 77,010 | 63,429 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss)/Income | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2018 | 62,965,000 | ||||
Beginning balance at Dec. 31, 2018 | $ 201,167 | $ 6 | $ 522,503 | $ (799) | $ (320,543) |
Stock-based compensation expense | 1,762 | 1,762 | |||
Common stock issued upon exercise of stock options (in shares) | 119,000 | ||||
Common stock issued upon exercise of stock options | 162 | 162 | |||
Common stock issued upon release of restricted stock units (in shares) | 397,000 | ||||
Restricted stock surrendered for taxes (in shares) | (145,000) | ||||
Restricted stock surrendered for taxes | (504) | (504) | |||
Foreign currency translation adjustments | 42 | 42 | |||
Unrealized gain (loss) on marketable securities, net | 3 | 3 | |||
Net loss | (14,489) | (14,489) | |||
Ending balance (in shares) at Mar. 31, 2019 | 63,336,000 | ||||
Ending balance at Mar. 31, 2019 | 188,143 | $ 6 | 523,923 | (754) | (335,032) |
Beginning balance (in shares) at Dec. 31, 2018 | 62,965,000 | ||||
Beginning balance at Dec. 31, 2018 | 201,167 | $ 6 | 522,503 | (799) | (320,543) |
Foreign currency translation adjustments | 38 | ||||
Unrealized gain (loss) on marketable securities, net | 23 | ||||
Net loss | (29,443) | ||||
Ending balance (in shares) at Jun. 30, 2019 | 64,377,000 | ||||
Ending balance at Jun. 30, 2019 | 177,740 | $ 6 | 528,458 | (738) | (349,986) |
Beginning balance (in shares) at Mar. 31, 2019 | 63,336,000 | ||||
Beginning balance at Mar. 31, 2019 | 188,143 | $ 6 | 523,923 | (754) | (335,032) |
Stock-based compensation expense | 2,626 | 2,626 | |||
Issuance of common stock, net of issuance costs (in shares) | 20,000 | ||||
Issuance of common stock, net of issuance costs | 134 | 134 | |||
Common stock issued upon exercise of stock options (in shares) | 823,000 | ||||
Common stock issued upon exercise of stock options | 2,312 | 2,312 | |||
Common stock issued under employee stock purchase plan (in shares) | 51,000 | ||||
Common stock issued under employee stock purchase plan | 163 | 163 | |||
Common stock issued upon release of restricted stock units (in shares) | 220,000 | ||||
Restricted stock surrendered for taxes (in shares) | (73,000) | ||||
Restricted stock surrendered for taxes | (700) | (700) | |||
Foreign currency translation adjustments | (4) | (4) | |||
Unrealized gain (loss) on marketable securities, net | 20 | 20 | |||
Net loss | (14,954) | (14,954) | |||
Ending balance (in shares) at Jun. 30, 2019 | 64,377,000 | ||||
Ending balance at Jun. 30, 2019 | 177,740 | $ 6 | 528,458 | (738) | (349,986) |
Beginning balance (in shares) at Dec. 31, 2019 | 67,329,000 | ||||
Beginning balance at Dec. 31, 2019 | 174,957 | $ 7 | 560,704 | (725) | (385,029) |
Stock-based compensation expense | 3,409 | 3,409 | |||
Issuance of common stock, net of issuance costs (in shares) | 10,925,000 | ||||
Issuance of common stock, net of issuance costs | 140,873 | $ 1 | 140,872 | ||
Common stock issued upon exercise of stock options (in shares) | 1,310,000 | ||||
Common stock issued upon exercise of stock options | $ 9,650 | 9,650 | |||
Common stock issued upon exercise of warrants (in shares) | 7,000 | ||||
Common stock issued upon release of restricted stock units (in shares) | 462,000 | ||||
Restricted stock surrendered for taxes (in shares) | (155,000) | ||||
Restricted stock surrendered for taxes | $ (1,922) | (1,922) | |||
Foreign currency translation adjustments | (54) | (54) | |||
Unrealized gain (loss) on marketable securities, net | (54) | (54) | |||
Net loss | (22,906) | (22,906) | |||
Ending balance (in shares) at Mar. 31, 2020 | 79,878,000 | ||||
Ending balance at Mar. 31, 2020 | 303,953 | $ 8 | 712,713 | (833) | (407,935) |
Beginning balance (in shares) at Dec. 31, 2019 | 67,329,000 | ||||
Beginning balance at Dec. 31, 2019 | $ 174,957 | $ 7 | 560,704 | (725) | (385,029) |
Common stock issued upon exercise of stock options (in shares) | 1,953,000 | ||||
Foreign currency translation adjustments | $ (13) | ||||
Unrealized gain (loss) on marketable securities, net | 140 | ||||
Net loss | (52,106) | ||||
Ending balance (in shares) at Jun. 30, 2020 | 80,639,000 | ||||
Ending balance at Jun. 30, 2020 | 282,563 | $ 8 | 720,288 | (598) | (437,135) |
Beginning balance (in shares) at Mar. 31, 2020 | 79,878,000 | ||||
Beginning balance at Mar. 31, 2020 | 303,953 | $ 8 | 712,713 | (833) | (407,935) |
Stock-based compensation expense | 4,785 | 4,785 | |||
Issuance of common stock, additional issuance costs | (51) | (51) | |||
Common stock issued upon exercise of stock options (in shares) | 643,000 | ||||
Common stock issued upon exercise of stock options | 2,487 | 2,487 | |||
Common stock issued under employee stock purchase plan (in shares) | 57,000 | ||||
Common stock issued under employee stock purchase plan | 475 | 475 | |||
Common stock issued upon release of restricted stock units (in shares) | 66,000 | ||||
Restricted stock surrendered for taxes (in shares) | (5,000) | ||||
Restricted stock surrendered for taxes | (121) | (121) | |||
Foreign currency translation adjustments | 41 | 41 | |||
Unrealized gain (loss) on marketable securities, net | 194 | 194 | |||
Net loss | (29,200) | (29,200) | |||
Ending balance (in shares) at Jun. 30, 2020 | 80,639,000 | ||||
Ending balance at Jun. 30, 2020 | $ 282,563 | $ 8 | $ 720,288 | $ (598) | $ (437,135) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Stock issuance costs | $ 332 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (52,106) | $ (29,443) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,896 | 846 |
Stock-based compensation expense | 8,194 | 4,388 |
Amortization of premium and accrued interest on marketable securities | (429) | (414) |
Other | (6) | 38 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 7,298 | 589 |
Other assets | (8) | (18) |
Operating lease right-of-use asset | 952 | 1,078 |
Accounts payable | 6,962 | (924) |
Accrued expenses and other current liabilities | (2,507) | (2,029) |
Lease liability | (769) | 1,084 |
Net cash used in operating activities | (30,523) | (24,805) |
Cash flows from investing activities: | ||
Purchases of marketable securities | (319,690) | (70,549) |
Maturities of marketable securities | 160,900 | 41,385 |
Sales of marketable securities | 6,748 | 0 |
Purchases of property and equipment | (7,328) | (4,683) |
Net cash used in investing activities | (159,370) | (33,847) |
Cash flows from financing activities: | ||
Proceeds from offerings of common stock, net of issuance costs | 140,822 | 0 |
Proceeds from issuance of common stock | 0 | 134 |
Proceeds from issuance of common stock pursuant to option exercises | 12,101 | 2,474 |
Taxes paid related to net share settlement of restricted stock units | (2,043) | (1,204) |
Proceeds from employee stock purchase plan | 475 | 163 |
Repayment of loan | 0 | (56) |
Net cash provided by financing activities | 151,355 | 1,511 |
Net decrease in cash and cash equivalents and restricted cash | (38,538) | (57,141) |
Cash and cash equivalents and restricted cash at beginning of period | 66,896 | 155,948 |
Cash and cash equivalents and restricted cash at end of period | 28,358 | 98,807 |
Supplemental schedule of noncash investing and financing information | ||
Fixed assets in accounts payable, accrued expenses and other current liabilities | $ 2,391 | $ 291 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Adverum Biotechnologies, Inc. (the “Company” or "Adverum") is a clinical-stage gene therapy company targeting unmet medical needs in ocular and rare diseases. The Company develops gene therapy product candidates intended to provide durable efficacy by inducing sustained expression of a therapeutic protein. The Company’s core capabilities include clinical development, novel vector discovery, and in-house manufacturing expertise, specifically in scalable process development, assay development, and current Good Manufacturing Practices (“cGMP”) quality control. Since the Company’s inception, it has devoted its efforts to performing research and development activities, filing patent applications, hiring personnel and raising capital to support these activities. The Company has not generated any revenue from the sale of products since its inception. The Company has experienced net losses since its inception and had an accumulated deficit of $437.1 million as of June 30, 2020. The Company expects to incur losses and have negative net cash flows from operating activities as it engages in further research and development activities. The Company believes that it has sufficient funds to continue operations into 2022. Basis of Presentation —The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and follow the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the Company’s consolidated financial information. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year or any other future period. The balance sheet as of December 31, 2019 is derived from the audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete consolidated financial statements. The full extent to which the novel coronavirus disease ("COVID-19") pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including expenses and manufacturing, clinical trials and research and development costs, is dependent upon future developments that are highly uncertain at this time. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities and the reported amounts of expenses in the condensed consolidated financial statements and the accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to clinical trial accruals, fair value of assets and liabilities, income taxes, and stock-based compensation. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results could differ from those estimates. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“ Topic 326 ”) and also issued subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04, ASU 2019-05, and ASU 2019-11. The standard requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The measurement of expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts that affect collectability. Topic 326 also eliminates the concept of “other-than-temporary” impairment when evaluating available-for-sale debt securities and instead focuses on determining whether any impairment is a result of a credit loss or other factors. An entity will recognize an allowance for credit losses on available-for-sale debt securities rather than an other-than-temporary impairment that reduces the cost basis of the investment. Topic 326 will become effective for the Company beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting Topic 326, but does not expect the effect of adoption to be material. |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Fair Value of Financial Instruments | Fair Value Measurements and Fair Value of Financial Instruments The authoritative guidance on the fair value hierarchy for disclosure of fair value measurements is as follows: Level 1 : Quoted prices in active markets for identical assets or liabilities. Level 2 : Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 : Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value of Level 1 securities is determined using quoted prices in active markets for identical assets. Level 1 securities consist of highly liquid money market funds. Financial assets and liabilities are considered Level 2 when their fair values are determined using inputs that are observable in the market or can be derived principally from or corroborated by observable market data such as pricing for similar securities, recently executed transactions, cash flow models with yield curves, and benchmark securities. In addition, Level 2 financial instruments are valued using comparisons to like-kind financial instruments and models that use readily observable market data as their basis. U.S. government and agency securities, commercial paper, corporate bond and certificates of deposit are valued primarily using market prices of comparable securities, bid/ask quotes, interest rate yields and prepayment spreads and are included in Level 2. In certain cases, where there is limited activity or less transparency around inputs to valuation, securities are classified as Level 3 within the valuation hierarchy. The following is a summary of the Company’s cash equivalents and short-term investments: June 30, 2020 Amortized Cost Basis Unrealized Gains Unrealized Estimated Fair Value (In thousands) Level 1: Money market funds $ 5,952 $ — $ — $ 5,952 Level 2: U.S. government and agency securities 222,151 129 (31) 222,249 Commercial paper 46,817 60 — 46,877 Total cash equivalents and short-term investments 274,920 189 (31) 275,078 Less: cash equivalents (22,298) — — (22,298) Total short-term investments $ 252,622 $ 189 $ (31) $ 252,780 December 31, 2019 Amortized Cost Basis Unrealized Gains Unrealized Estimated Fair Value (In thousands) Level 1: Money market funds $ 15,056 $ — $ — $ 15,056 Level 2: U.S. government and agency securities 37,974 14 (2) 37,986 Commercial paper 87,983 8 (8) 87,983 Corporate bonds 10,495 6 — 10,501 Total cash equivalents and short-term investments 151,508 28 (10) 151,526 Less: cash equivalents (51,391) — 3 (51,388) Total short-term investments $ 100,117 $ 28 $ (7) $ 100,138 As of June 30, 2020, $55.7 million of marketable securities had remaining maturities between one |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment, Net Property and equipment, net consists of the following: June 30, 2020 December 31, 2019 (In thousands) Computer equipment and software $ 824 $ 752 Laboratory equipment 8,382 6,291 Furniture and fixtures 1,263 678 Leasehold improvements 25,282 1,602 Construction in progress — 23,553 Total property and equipment 35,751 32,876 Less accumulated depreciation and amortization (8,285) (7,992) Property and equipment, net $ 27,466 $ 24,884 Depreciation and amortization expense related to property and equipment for the three months ended June 30, 2020 and 2019 was $1.3 million, and $0.4 million, respectively, and for the six months ended June 30, 2020 and 2019 was $1.9 million and $0.8 million, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: June 30, 2020 December 31, 2019 (In thousands) Employee compensation $ 3,248 $ 4,055 Accrued preclinical, clinical and process development costs 1,656 1,973 Accrued professional services 1,197 2,607 Other 565 2,636 Total accrued expenses and other current liabilities $ 6,666 $ 11,271 |
Equity Incentive Awards
Equity Incentive Awards | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Awards | Equity Incentive Awards Stock Options The following table summarizes the Company’s option activity and related information: Number of Weighted- Balance at December 31, 2019 8,995 $ 7.19 Options granted 3,501 19.35 Options exercised (1,953) 6.20 Options forfeited (576) 10.11 Balance at June 30, 2020 9,967 $ 11.49 Exercisable as of June 30, 2020 3,115 $ 7.89 Restricted Stock Units (“RSUs”) The following table summarizes the Company’s RSUs activity and related information: Number of Units Weighted- Outstanding at December 31, 2019 1,121 $ 4.59 Granted 104 15.75 Vested and released (529) 4.59 Forfeited (94) 7.10 Outstanding at June 30, 2020 602 $ 6.13 Stock-Based Compensation Expense The following table presents, by operating expense, the Company’s stock-based compensation expense: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In thousands) Research and development $ 1,668 $ 845 $ 2,916 $ 1,477 General and administrative 3,117 1,781 5,278 2,911 Total stock-based compensation expense $ 4,785 $ 2,626 $ 8,194 $ 4,388 |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per ShareBasic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. Diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period using the treasury stock method. Outstanding stock options, RSUs, rights under the employee stock purchase plan (“ESPP”) and warrants are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. The following common stock equivalents outstanding at the end of the periods presented were excluded from the calculation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: June 30, 2020 June 30, 2019 (In thousands) Stock options 9,967 7,888 Restricted stock units 602 1,280 ESPP 11 8 Warrants to purchase common stock 80 90 10,660 9,266 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionIn our February 2020 underwritten public offering of common stock, James Scopa, a member of our Board, and Anne Kenner, as Trustees for the James P. Scopa and Anne E. Kenner Family Trust (the “Trust”) purchased on behalf of the Trust 10,000 shares of our common stock at a price of $13.75 per share, the public offering price in our February 2020 underwritten public offering of common stock, for an aggregate purchase price of $0.1 million, payable in cash. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation —The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and follow the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the Company’s consolidated financial information. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year or any other future period. The balance sheet as of December 31, 2019 is derived from the audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete consolidated financial statements. The full extent to which the novel coronavirus disease ("COVID-19") pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including expenses and manufacturing, clinical trials and research and development costs, is dependent upon future developments that are highly uncertain at this time. |
Use of Estimates | Use of Estimates The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities and the reported amounts of expenses in the condensed consolidated financial statements and the accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to clinical trial accruals, fair value of assets and liabilities, income taxes, and stock-based compensation. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“ Topic 326 ”) and also issued subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04, ASU 2019-05, and ASU 2019-11. The standard requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The measurement of expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts that affect collectability. Topic 326 also eliminates the concept of “other-than-temporary” impairment when evaluating available-for-sale debt securities and instead focuses on determining whether any impairment is a result of a credit loss or other factors. An entity will recognize an allowance for credit losses on available-for-sale debt securities rather than an other-than-temporary impairment that reduces the cost basis of the investment. Topic 326 will become effective for the Company beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting Topic 326, but does not expect the effect of adoption to be material. |
Fair Value Measurements and F_2
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Cash Equivalents and Short-term Investments | The following is a summary of the Company’s cash equivalents and short-term investments: June 30, 2020 Amortized Cost Basis Unrealized Gains Unrealized Estimated Fair Value (In thousands) Level 1: Money market funds $ 5,952 $ — $ — $ 5,952 Level 2: U.S. government and agency securities 222,151 129 (31) 222,249 Commercial paper 46,817 60 — 46,877 Total cash equivalents and short-term investments 274,920 189 (31) 275,078 Less: cash equivalents (22,298) — — (22,298) Total short-term investments $ 252,622 $ 189 $ (31) $ 252,780 December 31, 2019 Amortized Cost Basis Unrealized Gains Unrealized Estimated Fair Value (In thousands) Level 1: Money market funds $ 15,056 $ — $ — $ 15,056 Level 2: U.S. government and agency securities 37,974 14 (2) 37,986 Commercial paper 87,983 8 (8) 87,983 Corporate bonds 10,495 6 — 10,501 Total cash equivalents and short-term investments 151,508 28 (10) 151,526 Less: cash equivalents (51,391) — 3 (51,388) Total short-term investments $ 100,117 $ 28 $ (7) $ 100,138 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following: June 30, 2020 December 31, 2019 (In thousands) Computer equipment and software $ 824 $ 752 Laboratory equipment 8,382 6,291 Furniture and fixtures 1,263 678 Leasehold improvements 25,282 1,602 Construction in progress — 23,553 Total property and equipment 35,751 32,876 Less accumulated depreciation and amortization (8,285) (7,992) Property and equipment, net $ 27,466 $ 24,884 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: June 30, 2020 December 31, 2019 (In thousands) Employee compensation $ 3,248 $ 4,055 Accrued preclinical, clinical and process development costs 1,656 1,973 Accrued professional services 1,197 2,607 Other 565 2,636 Total accrued expenses and other current liabilities $ 6,666 $ 11,271 |
Equity Incentive Awards (Tables
Equity Incentive Awards (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Options Activity | The following table summarizes the Company’s option activity and related information: Number of Weighted- Balance at December 31, 2019 8,995 $ 7.19 Options granted 3,501 19.35 Options exercised (1,953) 6.20 Options forfeited (576) 10.11 Balance at June 30, 2020 9,967 $ 11.49 Exercisable as of June 30, 2020 3,115 $ 7.89 |
Summary of Restricted Stock Units Activity | The following table summarizes the Company’s RSUs activity and related information: Number of Units Weighted- Outstanding at December 31, 2019 1,121 $ 4.59 Granted 104 15.75 Vested and released (529) 4.59 Forfeited (94) 7.10 Outstanding at June 30, 2020 602 $ 6.13 |
Stock-Based Compensation Expense | The following table presents, by operating expense, the Company’s stock-based compensation expense: Three Months Ended Six Months Ended 2020 2019 2020 2019 (In thousands) Research and development $ 1,668 $ 845 $ 2,916 $ 1,477 General and administrative 3,117 1,781 5,278 2,911 Total stock-based compensation expense $ 4,785 $ 2,626 $ 8,194 $ 4,388 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following common stock equivalents outstanding at the end of the periods presented were excluded from the calculation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: June 30, 2020 June 30, 2019 (In thousands) Stock options 9,967 7,888 Restricted stock units 602 1,280 ESPP 11 8 Warrants to purchase common stock 80 90 10,660 9,266 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ 437,135 | $ 385,029 |
Fair Value Measurements and F_3
Fair Value Measurements and Fair Value of Financial Instruments - Summary of Cash Equivalents and Short-term Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 252,622 | $ 100,117 |
Unrealized Gains | 189 | 28 |
Unrealized Losses | (31) | (7) |
Estimated Fair Value | 252,780 | 100,138 |
Less: Cash Equivalents, Amortized Cost Basis | (22,298) | (51,391) |
Less: Cash equivalents, unrealized gains | 0 | 0 |
Less: Cash equivalents, unrealized losses | 0 | (3) |
Less: Cash Equivalents, Estimated Fair Value | (22,298) | (51,388) |
Money market funds | Quoted Prices in Active Markets (Level 1) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 5,952 | 15,056 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 5,952 | 15,056 |
U.S. government and agency securities | Significant Other Observable Inputs (Level 2) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 222,151 | 37,974 |
Unrealized Gains | 129 | 14 |
Unrealized Losses | (31) | (2) |
Estimated Fair Value | 222,249 | 37,986 |
Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 46,817 | 87,983 |
Unrealized Gains | 60 | 8 |
Unrealized Losses | 0 | (8) |
Estimated Fair Value | 46,877 | 87,983 |
Corporate Bonds | Significant Other Observable Inputs (Level 2) | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 10,495 | |
Unrealized Gains | 6 | |
Unrealized Losses | 0 | |
Estimated Fair Value | 10,501 | |
Total Cash Equivalents and Short-term Investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 274,920 | 151,508 |
Unrealized Gains | 189 | 28 |
Unrealized Losses | (31) | (10) |
Estimated Fair Value | $ 275,078 | $ 151,526 |
Fair Value Measurements and F_4
Fair Value Measurements and Fair Value of Financial Instruments - Additional Information (Detail) | Jun. 30, 2020USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities | $ 55,700,000 |
Other than temporary impaired investments | $ 0 |
Minimum | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities term | 1 year |
Maximum | |
Debt Securities, Available-for-sale [Line Items] | |
Marketable securities term | 2 years |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 35,751 | $ 32,876 |
Less accumulated depreciation and amortization | (8,285) | (7,992) |
Property and equipment, net | 27,466 | 24,884 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 824 | 752 |
Laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 8,382 | 6,291 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,263 | 678 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 25,282 | 1,602 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 0 | $ 23,553 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Depreciation and amortization expense | $ 1,300 | $ 400 | $ 1,896 | $ 846 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Employee compensation | $ 3,248 | $ 4,055 |
Accrued preclinical, clinical and process development costs | 1,656 | 1,973 |
Accrued professional services | 1,197 | 2,607 |
Other | 565 | 2,636 |
Total accrued expenses and other current liabilities | $ 6,666 | $ 11,271 |
Equity Incentive Awards - Summa
Equity Incentive Awards - Summary of Stock Options Activity (Detail) - $ / shares shares in Thousands | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Options Outstanding [Roll Forward] | |
Beginning balance (in shares) | 8,995 |
Options granted (in shares) | 3,501 |
Options exercised (in shares) | (1,953) |
Options forfeited (in shares) | (576) |
Ending balance (in shares) | 9,967 |
Exercisable (in shares) | 3,115 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning balance (in USD per share) | $ 7.19 |
Options granted (in USD per share) | 19.35 |
Options exercised (in USD per share) | 6.20 |
Options forfeited (in USD per share) | 10.11 |
Ending balance (in USD per share) | 11.49 |
Exercisable (in USD per share) | $ 7.89 |
Equity Incentive Awards - Sum_2
Equity Incentive Awards - Summary of Restricted Stock Units Activity (Detail) - Restricted stock units shares in Thousands | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance (in shares) | shares | 1,121 |
Granted (in shares) | shares | 104 |
Vested and released (in shares) | shares | (529) |
Forfeited (in shares) | shares | (94) |
Ending balance (in shares) | shares | 602 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning balance (in USD per share) | $ / shares | $ 4.59 |
Granted (in USD per share) | $ / shares | 15.75 |
Vested and released (in USD per share) | $ / shares | 4.59 |
Forfeited (in USD per share) | $ / shares | 7.10 |
Ending balance (in USD per share) | $ / shares | $ 6.13 |
Equity Incentive Awards - Stock
Equity Incentive Awards - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 4,785 | $ 2,626 | $ 8,194 | $ 4,388 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 1,668 | 845 | 2,916 | 1,477 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 3,117 | $ 1,781 | $ 5,278 | $ 2,911 |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Detail) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from net loss per share (in shares) | 10,660 | 9,266 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from net loss per share (in shares) | 9,967 | 7,888 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from net loss per share (in shares) | 602 | 1,280 |
ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from net loss per share (in shares) | 11 | 8 |
Warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from net loss per share (in shares) | 80 | 90 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Related Party Transaction [Line Items] | |||||
Cash purchase price | $ 0 | $ 134 | |||
Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Issuance of common stock (in shares) | 10,925,000 | 20,000 | |||
Common Stock | Trust | |||||
Related Party Transaction [Line Items] | |||||
Issuance of common stock (in shares) | 10,000 | ||||
Share price (in USD per share) | $ 13.75 | ||||
Cash purchase price | $ 100 |