Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ARAV | |
Entity Registrant Name | Aravive, Inc. | |
Entity Central Index Key | 1,513,818 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 11,182,025 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 62,605 | $ 81,146 |
Prepaid expenses and other current assets | 464 | 562 |
Total current assets | 63,069 | 81,708 |
Restricted cash | 2,392 | 2,383 |
Property and equipment, net | 798 | |
Build-to-suit lease asset | 8,710 | 8,888 |
Total assets | 74,171 | 93,777 |
Current liabilities | ||
Accounts payable | 335 | 1,500 |
Accrued liabilities | 2,794 | 4,093 |
Total current liabilities | 3,129 | 5,593 |
Build-to-suit lease obligation | 7,324 | 5,428 |
Total liabilities | 10,453 | 11,021 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized at September 30, 2018 and December 31, 2017; 6,040,112 and 5,989,688 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 4 | 4 |
Additional paid-in capital | 463,325 | 456,984 |
Accumulated deficit | (399,611) | (374,232) |
Total stockholders' equity | 63,718 | 82,756 |
Total liabilities and stockholders’ equity | $ 74,171 | $ 93,777 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 6,040,112 | 5,989,688 |
Common stock, shares outstanding | 6,040,112 | 5,989,688 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating expenses | ||||
Research and development | $ 1,027 | $ 42,673 | $ 8,065 | $ 93,295 |
General and administrative | 5,191 | 7,073 | 16,111 | 22,301 |
Total operating expenses | 6,218 | 49,746 | 24,176 | 115,596 |
Loss from operations | (6,218) | (49,746) | (24,176) | (115,596) |
Interest income | 261 | 220 | 703 | 661 |
Other income (expense), net | (593) | (262) | (1,906) | (1,044) |
Net loss before provision for income taxes | (6,550) | (49,788) | (25,379) | (115,979) |
Provision for income taxes | 128 | |||
Net loss | $ (6,550) | $ (49,788) | $ (25,379) | $ (116,107) |
Net loss per share - basic and diluted | $ (1.08) | $ (8.37) | $ (4.23) | $ (19.72) |
Weighted-average common shares used to compute basic and diluted net loss per share | 6,040 | 5,945 | 5,998 | 5,889 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Operations (Unaudited) (Parenthetical) | Oct. 16, 2018 |
Subsequent Event [Member] | |
Reverse stock split ratio | 0.1667 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (25,379) | $ (116,107) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 975 | 190 |
Stock-based compensation expense | 6,289 | 11,101 |
Changes in assets and liabilities | ||
Prepaid expenses and other assets | 98 | (93) |
Accounts payable | (1,163) | 2,876 |
Accrued and other liabilities | (1,300) | 22,995 |
Income taxes payable | (247) | |
Net cash used in operating activities | (20,480) | (79,285) |
Cash flows from investing activities | ||
Purchase of property and equipment | (3,532) | |
Inducement on build-to-suit lease obligation | 1,896 | |
Net cash provided by and (used in) investing activities | 1,896 | (3,532) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock in connection with employee benefit plans | 52 | 2,829 |
Net cash provided by financing activities | 52 | 2,829 |
Net change in cash, cash equivalents, and restricted cash | (18,532) | (79,988) |
Cash, cash equivalents, and restricted cash at beginning of period | 83,529 | 201,153 |
Cash, cash equivalents, and restricted cash at end of period | $ 64,997 | 121,165 |
Supplemental disclosure | ||
Income taxes paid | 375 | |
Supplemental disclosure of noncash items | ||
Build-to-suit leasehold improvements | $ 5,428 |
Formation and Business of the C
Formation and Business of the Company | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Formation and Business of the Company | 1. Formation and Business of the Company Aravive, Inc. (“Aravive” or the “Company”) was incorporated on December 10, 2008 in the State of Delaware. Aravive is a clinical stage biopharmaceutical company focused on developing innovative therapies that target important survival pathways for cancer. Prior to the Merger, as described in Note 9, “Subsequent Events,” Aravive (then known as Versartis, Inc.) was an endocrine-focused biopharmaceutical company that was developing a long-acting recombinant human growth hormone for the treatment of growth hormone deficiency. The “Company” refers to Aravive as a standalone company following the completion of the Merger. The Merger became effective on October 12, 2018 and on October 15, 2018, Versartis, Inc. changed its name to Aravive, Inc. The Company has been primarily performing research and development activities, including clinical trials, filing patent applications, hiring personnel, and raising capital to support and expand these activities. Its headquarters and principal operations are located in Houston, Texas. Unaudited Interim Financial Information In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2018 and, its results of operations and cash flows for the three- and nine- months period ended September 30, 2018, and 2017. The December 31, 2017 condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States of America, or GAAP. The results for interim periods are not necessarily indicative of the results for the entire year or any other interim period. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2017 included in the Company’s annual report on Form 10-K filed by Versartis, Inc. on March 6, 2018 with the U.S. Securities and Exchange Commission, or the SEC. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of the accompanying condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. The accompanying unaudited condensed consolidated financial position as of September 30, 2018 and as of December 31, 2017, and the results of operations and cash flows for the three- and nine-months period ended September 30, 2018 and 2017 include the accounts of Versartis, Inc. and its wholly-owned subsidiaries, Versartis Cayman Holdings Company and Versartis GmbH. All intercompany accounts and transactions have been eliminated. The U.S. dollar is the functional currency for all the Company's consolidated operations. As of September 30, 2018, the Company had a cash and cash equivalents balance of $62.6 million consisting of cash and cash equivalents in highly liquid U.S. money market funds. As a result of the Merger with Aravive Biologics, the merged company has acquired additional capital including cash and cash equivalents of approximately $5.7 million from Aravive Biologics. Cash and cash equivalents as of September 30, 2018 for both the Company and Aravive Biologics do not reflect estimated remaining merger transaction related costs. The Company believes that its existing cash and cash equivalents will be sufficient to sustain operations for at least the next 12 months from the issuance of these financial statements, based on its current business plan. The merged company’s expected primary use of cash will be to fund the merged company’s clinical development programs, specifically for its product candidate AVB-S6-500. Since inception, the Company has incurred net losses and negative cash flows from operations supporting the Company’s clinical development programs and related general and administrative expenses. At September 30, 2018, the Company had an accumulated deficit of $399.6 million and working capital of $59.9 million. The merged company expects to continue to incur losses supporting its clinical development program as a result of the Merger and related administrative expenses. The merged company anticipates it may need additional financing to support its business plan as it moves forward as a merged company. Although management has been successful in raising capital in the past, there can be no assurance that the merged company will be successful or that any needed financing will be available in the future at terms acceptable to the merged company. As described in Note 9, “Subsequent Events,” the Company effected a 1-for-6 reverse stock split. Accordingly, all share and per share amounts for all periods presented in these condensed consolidated financial statements and notes have been adjusted retroactively to reflect this reverse stock split. Except as described in Note 9, “Subsequent Events,” the accompanying unaudited condensed consolidated financial statements do not give effect to the Merger. Segments The Company operates in one segment. Management uses one measurement of performance and does not segregate its business for internal reporting. All long-lived assets are maintained in the United States of America. Concentration of credit risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. All of the Company’s cash and cash equivalents are held at several financial institutions that management believes are of high credit quality. Such deposits may exceed federally insured limits. The Company entered into forward foreign currency contracts that exposed it to credit risk to the extent that the counterparties potentially were unable to meet the terms of the agreement. The Company did, however, seek to mitigate such risks by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored. Management did not expect material losses as a result of defaults by counterparties. Risk and Uncertainties The Company’s future results of operations involve a number of risks and uncertainties. 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 the Company’s products, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships or a strategic transaction and dependence on key individuals and sole source suppliers. Products developed by the Company require clearances from the U.S. Food and Drug Administration, or the FDA, the Pharmaceuticals Medicines and Devices Agency, or the PMDA, or other international regulatory agencies prior to commercial sales. There can be no assurance that the products will receive the necessary clearances. If the Company was denied clearance, clearance was delayed, or the Company was unable to maintain clearance, it could have a materially adverse impact on the Company. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to develop, launch and commercialize any product candidates for which it receives regulatory approval. Cash and c e The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At September 30, 2018 and December 31, 2017, the Company’s cash and cash equivalents were held in multiple institutions in the United States and Europe and included deposits in money market funds which were unrestricted as to withdrawal or use. Restricted Cash Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or the Company’s intention to use the cash for a specific purpose. The Company’s restricted cash primarily relates to the letter of credit provided to its Landlord for the Company’s facilities in Menlo Park, California (as described in Note 5) to secure its obligations under the lease. Property and e Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally between three and five years. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful life or the term of the lease. Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected in operations in the period realized. Build-to-Suit Lease In the Company’s recent lease arrangement (as described in Note 5), the Company was involved in the construction of the building. To the extent the Company is involved with the structural improvements of the construction project or takes construction risk prior to the commencement of a lease, accounting guidance requires the Company to be considered the owner for accounting purposes of these types of projects during the construction period. Therefore, the Company records an asset in property and equipment on the condensed consolidated balance sheet for the replacement cost of the Company’s leased portion of the pre-existing building. The Company records a corresponding build-to-suit lease obligation on its condensed consolidated balance sheets representing the amounts paid by the lessor. Upon completion of construction, the Company considered the requirements for sale-leaseback accounting treatment, including evaluating whether all risks of ownership have been transferred back to the landlord, as evidenced by a lack of continuing involvement in the leased property where construction has been completed. The Company’s assessment of the arrangement determined that they did not qualify for sale-leaseback accounting treatment; therefore, the building asset remains on the Company’s condensed consolidated balance sheets at its historical cost, and such asset is depreciated over its estimated useful life. The initial recording of these assets and liabilities is classified as non-cash investing and financing items, respectively, for purposes of the consolidated statements of cash flows. Impairment of Long-Lived Assets The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by the comparison of the carrying amount to the future net cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value (i.e. determined through estimating projected discounted future net cash flows or other acceptable methods of determining fair value) arising from the asset. There have been no such impairments of long-lived assets as of September 30, 2018 or December 31, 2017. Fair Value of Financial Instruments The carrying value of the Company’s cash and cash equivalents, prepaid expenses, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these items. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level I Unadjusted quoted prices in active markets for identical assets or liabilities; Level II Inputs other than quoted prices included within Level I that are observable, unadjusted 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 related assets or liabilities; and Level III Unobservable inputs that are supported by little or no market activity for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of Level I assets as of September 30, 2018. Level I securities are comprised of highly liquid money market funds. The Company’s foreign currency derivative contracts have maturities over a 12-month time horizon and is with a counterparty that has a minimum credit rating of A- or equivalent by Standard & Poor's, Moody's Investors Service, Inc. or Fitch, Inc. These contracts are reported as Level II assets, however there were none outstanding as of September 30, 2018. Preclinical and Clinical Trial Accruals The Company’s clinical trial accruals are based on estimates of patient enrollment and related costs at clinical investigator sites as well as estimates for the services received and efforts expended pursuant to contracts with multiple research institutions and clinical research organizations, or CROs, that conduct and manage clinical trials on the Company’s behalf. The Company estimates preclinical and clinical trial expenses based on the services performed, pursuant to contracts with research institutions and clinical research organizations that conduct and manage preclinical studies and clinical trials on its behalf. In accruing service fees, the Company estimates the time period over which services will be performed and the level of patient enrollment and activity expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered. In September 2017, the Company announced that the VELOCITY Phase 3 clinical trial of somavaratan in pediatric growth hormone deficiency (GHD) failed to meet its primary endpoint of non-inferiority. All ongoing clinical trials of somavaratan have concluded and as such, there were no material preclinical and clinical trial accruals as of September 30, 2018. Research and d Research and development costs are charged to operations as incurred. Research and development costs include, but are not limited to, payroll and personnel expenses, laboratory supplies, consulting costs, external research and development expenses and allocated overhead, including rent, equipment depreciation, and utilities. Costs to acquire technologies to be used in research and development that have not reached technological feasibility and have no alternative future use are expensed to research and development costs when incurred. Income t The Company accounts for income taxes under the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available. Stock-Based c For stock options granted to employees, the Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The fair value of stock options is determined using the Black-Scholes option pricing model. The determination of fair value for stock-based awards on the date of grant using an option pricing model requires management to make certain assumptions regarding a number of complex and subjective variables. Stock-based compensation expense related to stock options granted to nonemployees is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the time period the Company expects to receive services from the nonemployee. Stock-based compensation expense, net of estimated forfeitures, is reflected in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Operating Expenses Research and development $ 95 $ 1,419 $ 1,855 $ 4,400 General and administrative 1,218 2,160 4,434 6,701 Total $ 1,313 $ 3,579 $ 6,289 $ 11,101 Comprehensive Loss Comprehensive loss is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources. Specifically, the Company includes cumulative foreign currency translation adjustments and net unrealized gains and losses on effective cash flow hedges. There was no difference between net loss and comprehensive loss for all periods presented. Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, stock options, restricted stock units and shares issued under the Company’s Employee Stock Purchase Plan are considered to be potentially dilutive securities. Because the Company has reported a net loss for all of the periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective is not expected to have a material impact on the Company’s financial position or results of operations upon adoption. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718)-- Improvements to Nonemployee Share-Based Payment Accounting. This amendment provides additional guidance related to share-based payment transactions for acquiring goods or services from nonemployees. The guidance will be effective for the Company for fiscal years beginning after December 15, 2018, including the interim periods within that fiscal year. The Company has not yet adopted this new guidance and does not expect it to have a material impact on the Company’s consolidated financial statements when the new standard is implemented. In May 2017, the FASB issued, ASU-2017-09, Compensation—Stock Compensation (Topic 718). This guidance clarifies when changes to the terms and conditions of share-based awards must be accounted for as modifications. The guidance does not change the accounting treatment for modifications. The guidance, which became effective on January 1, 2018, has not had a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued, ASU-2017-01, Business Combinations (Topic 805)- Definition of a Business. This guidance clarifies changes to the definition of a business for accounting purposes. Under the new guidance, an entity first determines whether substantially all of the fair value of a set of assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, also known as the screen test. If this threshold is met under the screen test, the set of assets is not deemed to be a business. If the threshold is not met, the entity then evaluates whether the set of assets meets the requirement to be deemed a business, which at a minimum, requires there to be an input and a substantive process that together significantly contribute to the ability to create outputs. In October 2018, Versartis, Inc. completed a merger whereby Aravive Biologics merged with a wholly owned subsidiary of Versartis, Inc. in an all-stock transaction and Aravive Biologics was the surviving corporation of such merger as a wholly owned subsidiary of Versartis, Inc. (now named Aravive, Inc.). The Merger is expected to be accounted for as an acquisition by Versartis, Inc. of Aravive Biologics’ net assets in an asset acquisition. Substantially all of the fair value of the net acquired assets is concentrated in a single identifiable asset or a group of similar identifiable assets, and as such the set of net assets acquired is not deemed to be a business. The guidance, which has become effective for the Company on January 1, 2018, has a material impact on the Company’s consolidated financial statements upon close of the Merger, as the application of the screen test under the new guidance results in the transaction to be accounted for as an asset acquisition. In November 2016, the FASB issued, ASU-2016-18, guidance requires that a statement of cash flows present the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total cash amounts shown on the statement of cash flows. The guidance has become effective on a retrospective basis for the Company on January 1, 2018. The Company The following is a reconciliation of the captions in the consolidated balance sheet to the consolidated statements of cash flows (in thousands): As of September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Consolidated Balance Sheets Cash and cash equivalents $ 62,605 $ 81,146 $ 118,783 $ 201,153 Restricted cash (included in other current assets) 2,392 2,383 2,382 — Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows $ 64,997 $ 83,529 $ 121,165 $ 201,153 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU is a comprehensive new leases standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. The new standard requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842)-- Targeted Improvements, that allows entities to apply the provisions of the new standard at the effective date (e.g. January 1, 2019), as opposed to the earliest period presented under the modified retrospective transition approach (January 1, 2017) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The modified retrospective approach includes a number of optional practical expedients primarily focused on leases that commenced before the effective date of Topic 842, including continuing to account for leases that commence before the effective date in accordance with previous guidance, unless the lease is modified. The Company currently expects that its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon its adoption of Topic 842, which will increase the total assets and total liabilities that the Company reports relative to such amounts prior to adoption. In addition, the Company plans to adopt ASC Topic 842 using the modified retrospective approach with the cumulative effect of adoption recognized to retained earnings on January 1, 2019. In May 2014, the FASB issued a new accounting standard that amends the guidance for the recognition of revenue from contracts with customers to transfer goods and services. The FASB has subsequently issued additional, clarifying standards to address issues arising from implementation of the new revenue recognition standard. The new revenue recognition standard and clarifying standards are effective for interim and annual periods beginning on January 1, 2018, and may be adopted earlier, but not before January 1, 2017. The revenue standards are required to be adopted by taking either a full retrospective approach or a modified retrospective approach. The Company has adopted the new revenue standard as of January 1, 2018 using a modified retrospective application to each prior reporting period presented. Through September 30, 2018 the Company had no open contracts and previously recorded a total of $40.0 million of contract revenues at December 31, 2017 received from Teijin Limited under an exclusive license and supply agreement which was considered substantially complete as of December 31, 2017. The adoption did not have an effect on the Company’s consolidated financial statements on the adoption date and no adjustment to retained earnings as of January 1, 2018 was required. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 3. Balance Sheet Components Prepaid expenses and other current assets (in thousands) September 30, December 31, 2018 2017 Preclinical and clinical (1) $ 31 $ 261 Other 433 301 Total $ 464 $ 562 (1) These prepayments consist primarily of advances to the Company’s contract manufacturers and contract research organizations Accrued Liabilities (in thousands) September 30, December 31, 2018 2017 Payroll and related $ 1,946 $ 2,058 Preclinical and clinical 91 1,694 Professional services 11 204 Other 746 137 Total $ 2,794 $ 4,093 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company’s financial instruments consist principally of cash and cash equivalents, prepaid expenses, accounts payable and accrued liabilities. The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): Fair Value Measurements at September 30, 2018 (unaudited) Total Level 1 Level 2 Level 3 Assets Money market funds $ 56,117 $ 56,117 $ — $ — $ 56,117 $ 56,117 $ — $ — Fair Value Measurements at December 31, 2017 Total Level 1 Level 2 Level 3 Assets Money market funds $ 62,428 $ 62,428 $ — $ — $ 62,428 $ 62,428 $ — $ — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies Facility Leases In March 2017, the Company entered into an operating facility lease agreement for approximately 34,500 rentable square feet located at 1020 Marsh Road, Menlo Park, California (“1020 Space”) and for approximately 17,400 rentable square feet located on the second floor of the building located at 1060 Marsh Road. In September 2017, the Company terminated its lease specific to 1060 Marsh Road. The 1020 space served as the Company’s corporate headquarters until the completion of the Merger. The delivery of the 1020 Space to the Company occurred in April 2017. The 1020 Space lease commenced on August 8, 2017 for a period of 86 months, with one renewal option for a five-year term. The total obligation under this lease for the Company is approximately $17.7 million as of September 30, 2018. As an inducement to enter the lease, the Landlord provided the Company with an approximately $1.9 million tenant improvement allowance for the 1020 Space. In January 2018, the Company received approximately $1.5 million, or 80% of the tenant improvement allowance. The remaining 20% of $0.4 million was received in May 2018. The Company has provided the Landlord with a letter of credit to secure its obligations under the lease in the initial amount of approximately $2.4 million, reported as restricted cash on the balance sheet, which is subject to reductions in future years if certain financial hurdles are met. In August 2018, the Company entered into an operating sublease agreement with EVA Automation, Inc. (“EVA”) for the 1020 Space referenced above. The 1020 Space Sublease commenced on October 1, 2018 for 72 months. The total base rent and additional rent EVA shall pay to the Company over the sublease term is approximately $14.7 million as of September 30, 2018. EVA is entitled to an abatement of base rent of approximately $0.9 million for the first five full calendar months of the term of the sublease. Future minimum lease payments under all of the Company’s noncancelable operating and facility leases, as of September 30, 2018, were as follows (in thousands): Year Ending December 31, 2018 $ 690 2019 2,780 2020 2,854 2021 2,930 2022 3,009 Thereafter 5,449 Total $ 17,712 Build-to-Suit In March 2017, the Company entered into an operating facility lease agreement, as described above, to lease office space located in Menlo Park, California in a building to be constructed by the landlord. The company began occupying the 1020 Space in August 2017. The lease has a term of 86 months from the commencement date as defined in the lease agreement with the Company’s option to extend the term of the lease for an additional five years. The Company is obligated to make lease payments totaling approximately $20.0 million over the initial term of the lease. The obligation under this lease is approximately $17.7 million as of September 30, 2018. In connection with this lease, the landlord provided a tenant improvement allowance of approximately $1.9 million for the 1020 Space, for As of September 30, 2018, the Company received all of the tenant improvement allowance. The $1.9 million inducement payment received increased the build-to-suit lease obligation to $7.3 million as of September 30, 2018. Under the terms of the lease agreement, the Company has indemnified the landlord during the construction period. Accordingly, for accounting purposes, the Company has concluded that they were deemed the owner of the building during the construction period and the Company capitalized approximately $8.7 million within property and equipment and recognized a $7.3 million corresponding build-to-suit obligation in non-current liabilities in the condensed consolidated balance sheet as of September 30, 2018. Of the $8.7 million, approximately $3.5 million has been recorded as a build-to-suit asset related to construction costs incurred as of September 30, 2018. Contingencies In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. As of September 30, 2018 the Company is contingently committed to make development and sales-related milestone payments of up to $30.0 million under certain circumstances, and other payments of $10.0 million, as well as royalties relating to potential future product sales under the License Agreement with Amunix. The amount, timing and likelihood of these payments are unknown as they are dependent on the occurrence of future events that may or may not occur, including approval by the FDA of potential drug candidates. |
Stockholder's Equity
Stockholder's Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 6. Stockholders’ Equity Equity Incentive Plans The Company’s Board of Directors, or Board, and stockholders previously approved the 2014 Equity Incentive Plan, or the 2014 Plan, which became effective on March 21, 2014. As of September 30, 2018, the total number of shares of common stock available for issuance under the 2014 Plan was approximately 445,000. Unless the Board provides otherwise, beginning on January 1, 2015, and continuing until the expiration of the 2014 Plan, the total number of shares of common stock available for issuance under the 2014 Plan will automatically increase annually on January 1 by 4.5% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year. As of September 30, 2018, approximately 660,100 shares of common stock were subject to outstanding awards under the 2014 Plan. In March 2014, the Board and stockholders approved the 2014 Employee Stock Purchase Plan, or the ESPP, which became effective as of March 5, 2014. The Company initially reserved a total of 150,000 shares of common stock for issuance under the ESPP. Unless the Board provides otherwise, beginning on January 1, 2015, and continuing until the expiration of the ESPP, the total number of shares of common stock available for issuance under the ESPP will automatically increase annually on January 1 by the lesser of (i) 1% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year, or (ii) 300,000 shares of common stock. As of September 30, 2018, the Company has issued approximately 37,300 shares of common stock under the ESPP. |
Net Loss per Share of Common St
Net Loss per Share of Common Stock | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share of Common Stock | 7. Net loss per share of Common Stock The following table summarizes the computation of basic and diluted net loss per share of the Company (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net loss $ (6,550 ) $ (49,788 ) $ (25,379 ) $ (116,107 ) Weighted-average shares used to compute basic and diluted net loss per share (1) 6,040 5,945 5,998 5,889 Basic and diluted net loss per common share (1) $ (1.08 ) $ (8.37 ) $ (4.23 ) $ (19.72 ) (1) Net loss per share and the number of shares used in the per share calculations for all periods presented reflect the one-for-six reverse stock split effective on October 16, 2018. Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss per common share by the weighted-average number of common shares and dilutive common stock equivalents outstanding for the period, determined using the treasury-stock method and the as-if converted method, for convertible securities, if inclusion of these is dilutive. Because the Company has reported a net loss for all periods presented, diluted net loss per share is the same as basic net loss per common share for those periods. |
Restructuring Plan
Restructuring Plan | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Plan | 8. Restructuring Plan In October 2017, the Board of Directors of the Company approved a plan of termination to eliminate a number of positions effective October 20, 2017 (the “ Restructuring Plan” “ Plan ”) As part of the Company’s commitment to reduce operating expenses and preserve cash, the Company eliminated additional positions effective May, June, and July 2018. The reduction included a total of 14 employees, which represented approximately 59% of its workforce as of June 26, 2018, the date affected employees were notified. Pursuant to the Plan, affected employees received certain severance benefits. The Company incurred a one-time severance-related charge totaling approximately $3.5 million for the period ended June 30, 2018 and $0.2 million for the period ended September 30, 2018, total severance payment of $3.7 million was paid out as of September 30, 2018. Of the $3.7 million severance-related charge, $1.2 million is included within general and administrative expenses and $2.5 million is included within research and development expenses. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | 9. Subsequent Event Merger with Aravive Biologics, Inc. On October 12, 2018, pursuant to the terms of the Agreement and Plan of Merger and Reorganization, dated as of June 3, 2018, by and between Versartis, Inc., Velo Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Versartis (“Merger Sub”), and Aravive Biologics, Merger Sub was merged with and into Aravive Biologics (the “Merger”), with Aravive Biologics surviving the Merger as a wholly-owned subsidiary of Versartis, Inc. Pursuant to the terms of the Merger Agreement, at the Effective Time, each outstanding share of capital stock of Aravive Biologics (other than any shares held as treasury stock) was converted into the right to receive 2.2801 shares of Versartis’ common stock, par value $0.0001 per share (the “Company Common Stock”), without giving effect to any adjustment for the reverse stock split described below, and (b) each outstanding Aravive Biologics stock option, all of which were in-the-money, whether vested or unvested, that had not previously been exercised prior to the Effective Time was converted into an option to purchase 2.2801 shares of the Company Common Stock for each share of Aravive common stock covered by such option. The aggregate consideration issuable in the Merger to the former security holders of Aravive Biologics, without giving effect to any adjustment for the reverse stock split described below, was approximately 30,851,600 shares of Company Common Stock and options to purchase approximately 7,103,859 shares of Company Common Stock. The Merger is expected to be accounted for as an asset acquisition by Versartis, Inc. To determine the accounting for this transaction under GAAP, Versartis, Inc. assessed whether an integrated set of assets and activities were accounted for as an acquisition of a business or an asset acquisition. The guidance requires an initial screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If that screen is met, the set is not a business. In connection with the acquisition of Aravive Biologics, the Company expects substantially all the fair value is included in in-process research and development of Aravive Biologics’ lead asset, AVB-S6-500 and, as such, the acquisition will be treated as an asset acquisition. Management of Versartis, Inc. and Aravive Biologics have made a preliminary estimate of the purchase price of approximately $54.2 million for the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed as of June 30, 2018. The net tangible and intangible assets acquired and liabilities assumed in connection with the transaction will be recorded based on their relative fair values allocation as of October 12, 2018 and the value associated with in-process research and development will be expensed Corporate Name Change On October 15, 2018, Versartis, Inc. changed its name to “Aravive, Inc.” (“Aravive, Inc.”). Shares of Company Common Stock were previously listed on the Nasdaq Global Select Market under the symbol “VSAR.” Versartis filed with The Nasdaq Stock Market, LLC (“Nasdaq”) a notification form for the listing of additional shares with respect to the shares of Company Common Stock to be issued to the holders of Aravive Biologics capital stock in the Merger so that these shares are listed on Nasdaq. The Company Common Stock began trading on the Nasdaq Global Select Market under the symbol “ARAV” on October 16, 2018. Reverse Stock Split One-for-Six In connection with the completion of the Merger, on October 15, 2018, the amended and restated certificate of incorporation of Versartis was amended to effect, at 12:01 a.m. Eastern Time on October 16, 2018, a reverse split of Company Common Stock at a ratio of 1-for-6 (the “Amended Certificate”). The accompanying financial statements and notes to financial statements give retroactive effect to the reverse stock split for all periods presented. 2479 E. Bayshore Blvd Sublease In October 2018, the Company executed a sublease agreement in Palo Alto, California for approximately 4,240 square feet for office space. The rental term of the sublease commences on October 30, 2018 and expires August 31, 2020. The total obligation for the Company under this lease is approximately $0.3M. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. The preparation of the accompanying condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. The accompanying unaudited condensed consolidated financial position as of September 30, 2018 and as of December 31, 2017, and the results of operations and cash flows for the three- and nine-months period ended September 30, 2018 and 2017 include the accounts of Versartis, Inc. and its wholly-owned subsidiaries, Versartis Cayman Holdings Company and Versartis GmbH. All intercompany accounts and transactions have been eliminated. The U.S. dollar is the functional currency for all the Company's consolidated operations. As of September 30, 2018, the Company had a cash and cash equivalents balance of $62.6 million consisting of cash and cash equivalents in highly liquid U.S. money market funds. As a result of the Merger with Aravive Biologics, the merged company has acquired additional capital including cash and cash equivalents of approximately $5.7 million from Aravive Biologics. Cash and cash equivalents as of September 30, 2018 for both the Company and Aravive Biologics do not reflect estimated remaining merger transaction related costs. The Company believes that its existing cash and cash equivalents will be sufficient to sustain operations for at least the next 12 months from the issuance of these financial statements, based on its current business plan. The merged company’s expected primary use of cash will be to fund the merged company’s clinical development programs, specifically for its product candidate AVB-S6-500. Since inception, the Company has incurred net losses and negative cash flows from operations supporting the Company’s clinical development programs and related general and administrative expenses. At September 30, 2018, the Company had an accumulated deficit of $399.6 million and working capital of $59.9 million. The merged company expects to continue to incur losses supporting its clinical development program as a result of the Merger and related administrative expenses. The merged company anticipates it may need additional financing to support its business plan as it moves forward as a merged company. Although management has been successful in raising capital in the past, there can be no assurance that the merged company will be successful or that any needed financing will be available in the future at terms acceptable to the merged company. As described in Note 9, “Subsequent Events,” the Company effected a 1-for-6 reverse stock split. Accordingly, all share and per share amounts for all periods presented in these condensed consolidated financial statements and notes have been adjusted retroactively to reflect this reverse stock split. Except as described in Note 9, “Subsequent Events,” the accompanying unaudited condensed consolidated financial statements do not give effect to the Merger. |
Segments | Segments The Company operates in one segment. Management uses one measurement of performance and does not segregate its business for internal reporting. All long-lived assets are maintained in the United States of America. |
Concentration of Credit Risk | Concentration of credit risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. All of the Company’s cash and cash equivalents are held at several financial institutions that management believes are of high credit quality. Such deposits may exceed federally insured limits. The Company entered into forward foreign currency contracts that exposed it to credit risk to the extent that the counterparties potentially were unable to meet the terms of the agreement. The Company did, however, seek to mitigate such risks by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored. Management did not expect material losses as a result of defaults by counterparties. |
Risk and Uncertainties | Risk and Uncertainties The Company’s future results of operations involve a number of risks and uncertainties. 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 the Company’s products, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships or a strategic transaction and dependence on key individuals and sole source suppliers. Products developed by the Company require clearances from the U.S. Food and Drug Administration, or the FDA, the Pharmaceuticals Medicines and Devices Agency, or the PMDA, or other international regulatory agencies prior to commercial sales. There can be no assurance that the products will receive the necessary clearances. If the Company was denied clearance, clearance was delayed, or the Company was unable to maintain clearance, it could have a materially adverse impact on the Company. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to develop, launch and commercialize any product candidates for which it receives regulatory approval. |
Cash and Cash Equivalents | Cash and c e The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At September 30, 2018 and December 31, 2017, the Company’s cash and cash equivalents were held in multiple institutions in the United States and Europe and included deposits in money market funds which were unrestricted as to withdrawal or use. |
Restricted Cash | Restricted Cash Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or the Company’s intention to use the cash for a specific purpose. The Company’s restricted cash primarily relates to the letter of credit provided to its Landlord for the Company’s facilities in Menlo Park, California (as described in Note 5) to secure its obligations under the lease. |
Property and Equipment, Net | Property and e Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally between three and five years. Leasehold improvements are amortized on a straight-line basis over the lesser of their useful life or the term of the lease. Maintenance and repairs are charged to expense as incurred, and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected in operations in the period realized. |
Build-to-Suit Lease | Build-to-Suit Lease In the Company’s recent lease arrangement (as described in Note 5), the Company was involved in the construction of the building. To the extent the Company is involved with the structural improvements of the construction project or takes construction risk prior to the commencement of a lease, accounting guidance requires the Company to be considered the owner for accounting purposes of these types of projects during the construction period. Therefore, the Company records an asset in property and equipment on the condensed consolidated balance sheet for the replacement cost of the Company’s leased portion of the pre-existing building. The Company records a corresponding build-to-suit lease obligation on its condensed consolidated balance sheets representing the amounts paid by the lessor. Upon completion of construction, the Company considered the requirements for sale-leaseback accounting treatment, including evaluating whether all risks of ownership have been transferred back to the landlord, as evidenced by a lack of continuing involvement in the leased property where construction has been completed. The Company’s assessment of the arrangement determined that they did not qualify for sale-leaseback accounting treatment; therefore, the building asset remains on the Company’s condensed consolidated balance sheets at its historical cost, and such asset is depreciated over its estimated useful life. The initial recording of these assets and liabilities is classified as non-cash investing and financing items, respectively, for purposes of the consolidated statements of cash flows. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by the comparison of the carrying amount to the future net cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value (i.e. determined through estimating projected discounted future net cash flows or other acceptable methods of determining fair value) arising from the asset. There have been no such impairments of long-lived assets as of September 30, 2018 or December 31, 2017. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of the Company’s cash and cash equivalents, prepaid expenses, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these items. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: Level I Unadjusted quoted prices in active markets for identical assets or liabilities; Level II Inputs other than quoted prices included within Level I that are observable, unadjusted 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 related assets or liabilities; and Level III Unobservable inputs that are supported by little or no market activity for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of Level I assets as of September 30, 2018. Level I securities are comprised of highly liquid money market funds. The Company’s foreign currency derivative contracts have maturities over a 12-month time horizon and is with a counterparty that has a minimum credit rating of A- or equivalent by Standard & Poor's, Moody's Investors Service, Inc. or Fitch, Inc. These contracts are reported as Level II assets, however there were none outstanding as of September 30, 2018. |
Preclinical and Clinical Trial Accruals | Preclinical and Clinical Trial Accruals The Company’s clinical trial accruals are based on estimates of patient enrollment and related costs at clinical investigator sites as well as estimates for the services received and efforts expended pursuant to contracts with multiple research institutions and clinical research organizations, or CROs, that conduct and manage clinical trials on the Company’s behalf. The Company estimates preclinical and clinical trial expenses based on the services performed, pursuant to contracts with research institutions and clinical research organizations that conduct and manage preclinical studies and clinical trials on its behalf. In accruing service fees, the Company estimates the time period over which services will be performed and the level of patient enrollment and activity expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered. In September 2017, the Company announced that the VELOCITY Phase 3 clinical trial of somavaratan in pediatric growth hormone deficiency (GHD) failed to meet its primary endpoint of non-inferiority. All ongoing clinical trials of somavaratan have concluded and as such, there were no material preclinical and clinical trial accruals as of September 30, 2018. |
Research and Development | Research and d Research and development costs are charged to operations as incurred. Research and development costs include, but are not limited to, payroll and personnel expenses, laboratory supplies, consulting costs, external research and development expenses and allocated overhead, including rent, equipment depreciation, and utilities. Costs to acquire technologies to be used in research and development that have not reached technological feasibility and have no alternative future use are expensed to research and development costs when incurred. |
Income Taxes | Income t The Company accounts for income taxes under the asset and liability approach. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company assesses all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and the Company will determine whether (i) the factors underlying the sustainability assertion have changed and (ii) the amount of the recognized tax benefit is still appropriate. The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available. |
Stock-Based Compensation | Stock-Based c For stock options granted to employees, the Company recognizes compensation expense for all stock-based awards based on the grant-date estimated fair value. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service period. The fair value of stock options is determined using the Black-Scholes option pricing model. The determination of fair value for stock-based awards on the date of grant using an option pricing model requires management to make certain assumptions regarding a number of complex and subjective variables. Stock-based compensation expense related to stock options granted to nonemployees is recognized based on the fair value of the stock options, determined using the Black-Scholes option pricing model, as they are earned. The awards generally vest over the time period the Company expects to receive services from the nonemployee. Stock-based compensation expense, net of estimated forfeitures, is reflected in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Operating Expenses Research and development $ 95 $ 1,419 $ 1,855 $ 4,400 General and administrative 1,218 2,160 4,434 6,701 Total $ 1,313 $ 3,579 $ 6,289 $ 11,101 |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as a change in equity of a business enterprise during a period, resulting from transactions from non-owner sources. Specifically, the Company includes cumulative foreign currency translation adjustments and net unrealized gains and losses on effective cash flow hedges. There was no difference between net loss and comprehensive loss for all periods presented. |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, stock options, restricted stock units and shares issued under the Company’s Employee Stock Purchase Plan are considered to be potentially dilutive securities. Because the Company has reported a net loss for all of the periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by us as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective is not expected to have a material impact on the Company’s financial position or results of operations upon adoption. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718)-- Improvements to Nonemployee Share-Based Payment Accounting. This amendment provides additional guidance related to share-based payment transactions for acquiring goods or services from nonemployees. The guidance will be effective for the Company for fiscal years beginning after December 15, 2018, including the interim periods within that fiscal year. The Company has not yet adopted this new guidance and does not expect it to have a material impact on the Company’s consolidated financial statements when the new standard is implemented. In May 2017, the FASB issued, ASU-2017-09, Compensation—Stock Compensation (Topic 718). This guidance clarifies when changes to the terms and conditions of share-based awards must be accounted for as modifications. The guidance does not change the accounting treatment for modifications. The guidance, which became effective on January 1, 2018, has not had a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued, ASU-2017-01, Business Combinations (Topic 805)- Definition of a Business. This guidance clarifies changes to the definition of a business for accounting purposes. Under the new guidance, an entity first determines whether substantially all of the fair value of a set of assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, also known as the screen test. If this threshold is met under the screen test, the set of assets is not deemed to be a business. If the threshold is not met, the entity then evaluates whether the set of assets meets the requirement to be deemed a business, which at a minimum, requires there to be an input and a substantive process that together significantly contribute to the ability to create outputs. In October 2018, Versartis, Inc. completed a merger whereby Aravive Biologics merged with a wholly owned subsidiary of Versartis, Inc. in an all-stock transaction and Aravive Biologics was the surviving corporation of such merger as a wholly owned subsidiary of Versartis, Inc. (now named Aravive, Inc.). The Merger is expected to be accounted for as an acquisition by Versartis, Inc. of Aravive Biologics’ net assets in an asset acquisition. Substantially all of the fair value of the net acquired assets is concentrated in a single identifiable asset or a group of similar identifiable assets, and as such the set of net assets acquired is not deemed to be a business. The guidance, which has become effective for the Company on January 1, 2018, has a material impact on the Company’s consolidated financial statements upon close of the Merger, as the application of the screen test under the new guidance results in the transaction to be accounted for as an asset acquisition. In November 2016, the FASB issued, ASU-2016-18, guidance requires that a statement of cash flows present the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total cash amounts shown on the statement of cash flows. The guidance has become effective on a retrospective basis for the Company on January 1, 2018. The Company The following is a reconciliation of the captions in the consolidated balance sheet to the consolidated statements of cash flows (in thousands): As of September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Consolidated Balance Sheets Cash and cash equivalents $ 62,605 $ 81,146 $ 118,783 $ 201,153 Restricted cash (included in other current assets) 2,392 2,383 2,382 — Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows $ 64,997 $ 83,529 $ 121,165 $ 201,153 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU is a comprehensive new leases standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. The new standard requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous lease guidance. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842)-- Targeted Improvements, that allows entities to apply the provisions of the new standard at the effective date (e.g. January 1, 2019), as opposed to the earliest period presented under the modified retrospective transition approach (January 1, 2017) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The modified retrospective approach includes a number of optional practical expedients primarily focused on leases that commenced before the effective date of Topic 842, including continuing to account for leases that commence before the effective date in accordance with previous guidance, unless the lease is modified. The Company currently expects that its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon its adoption of Topic 842, which will increase the total assets and total liabilities that the Company reports relative to such amounts prior to adoption. In addition, the Company plans to adopt ASC Topic 842 using the modified retrospective approach with the cumulative effect of adoption recognized to retained earnings on January 1, 2019. In May 2014, the FASB issued a new accounting standard that amends the guidance for the recognition of revenue from contracts with customers to transfer goods and services. The FASB has subsequently issued additional, clarifying standards to address issues arising from implementation of the new revenue recognition standard. The new revenue recognition standard and clarifying standards are effective for interim and annual periods beginning on January 1, 2018, and may be adopted earlier, but not before January 1, 2017. The revenue standards are required to be adopted by taking either a full retrospective approach or a modified retrospective approach. The Company has adopted the new revenue standard as of January 1, 2018 using a modified retrospective application to each prior reporting period presented. Through September 30, 2018 the Company had no open contracts and previously recorded a total of $40.0 million of contract revenues at December 31, 2017 received from Teijin Limited under an exclusive license and supply agreement which was considered substantially complete as of December 31, 2017. The adoption did not have an effect on the Company’s consolidated financial statements on the adoption date and no adjustment to retained earnings as of January 1, 2018 was required. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Stock-Based Compensation Expense | Stock-based compensation expense, net of estimated forfeitures, is reflected in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Operating Expenses Research and development $ 95 $ 1,419 $ 1,855 $ 4,400 General and administrative 1,218 2,160 4,434 6,701 Total $ 1,313 $ 3,579 $ 6,289 $ 11,101 |
Reconciliation of Captions in Consolidated Balance Sheet to Consolidated Statements of Cash Flows | The following is a reconciliation of the captions in the consolidated balance sheet to the consolidated statements of cash flows (in thousands): As of September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Consolidated Balance Sheets Cash and cash equivalents $ 62,605 $ 81,146 $ 118,783 $ 201,153 Restricted cash (included in other current assets) 2,392 2,383 2,382 — Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows $ 64,997 $ 83,529 $ 121,165 $ 201,153 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets (in thousands) September 30, December 31, 2018 2017 Preclinical and clinical (1) $ 31 $ 261 Other 433 301 Total $ 464 $ 562 (1) These prepayments consist primarily of advances to the Company’s contract manufacturers and contract research organizations |
Accrued Liabilities | Accrued Liabilities (in thousands) September 30, December 31, 2018 2017 Payroll and related $ 1,946 $ 2,058 Preclinical and clinical 91 1,694 Professional services 11 204 Other 746 137 Total $ 2,794 $ 4,093 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): Fair Value Measurements at September 30, 2018 (unaudited) Total Level 1 Level 2 Level 3 Assets Money market funds $ 56,117 $ 56,117 $ — $ — $ 56,117 $ 56,117 $ — $ — Fair Value Measurements at December 31, 2017 Total Level 1 Level 2 Level 3 Assets Money market funds $ 62,428 $ 62,428 $ — $ — $ 62,428 $ 62,428 $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Lease Payments Under All of our Non-Cancellable Operating and Facility Leases | Future minimum lease payments under all of the Company’s noncancelable operating and facility leases, as of September 30, 2018, were as follows (in thousands): Year Ending December 31, 2018 $ 690 2019 2,780 2020 2,854 2021 2,930 2022 3,009 Thereafter 5,449 Total $ 17,712 |
Net Loss per Share of Common _2
Net Loss per Share of Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Loss Per Share | The following table summarizes the computation of basic and diluted net loss per share of the Company (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net loss $ (6,550 ) $ (49,788 ) $ (25,379 ) $ (116,107 ) Weighted-average shares used to compute basic and diluted net loss per share (1) 6,040 5,945 5,998 5,889 Basic and diluted net loss per common share (1) $ (1.08 ) $ (8.37 ) $ (4.23 ) $ (19.72 ) (1) Net loss per share and the number of shares used in the per share calculations for all periods presented reflect the one-for-six reverse stock split effective on October 16, 2018. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)SegmentDerivativeContract | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents | $ 62,605,000 | $ 81,146,000 | $ 118,783,000 | $ 201,153,000 |
Accumulated deficit | (399,611,000) | (374,232,000) | ||
Working capital | $ 59,900,000 | |||
Number of operating segment | Segment | 1 | |||
Cash and cash equivalents maturity period | Three months or less | |||
Impairments of long-lived assets | $ 0 | $ 0 | ||
Teijin Limited [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Contract revenues received | 40,000,000 | |||
Reclassification of Restricted Cash to Cash and Cash Equivalents [Member] | ASU-2016-18 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Reclassification of restricted cash | $ 2,400,000 | |||
Level II Assets [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of foreign currency derivative contracts outstanding | DerivativeContract | 0 | |||
Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property and equipment estimated useful lives | 3 years | |||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Property and equipment estimated useful lives | 5 years | |||
Percentage for the amount of benefit realized upon ultimate settlement | 50.00% | |||
Aravive Biologics [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cash and cash equivalents acquired | $ 5,700,000 | |||
Common Stock [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Reverse stock split ratio | 1-for-6 | |||
Reverse stock split conversion ratio | 0.16 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,313 | $ 3,579 | $ 6,289 | $ 11,101 |
Research and development [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 95 | 1,419 | 1,855 | 4,400 |
General and administrative [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,218 | $ 2,160 | $ 4,434 | $ 6,701 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Reconciliation of the Captions in the Consolidated Balance Sheet to the Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 62,605 | $ 81,146 | $ 118,783 | $ 201,153 |
Restricted cash (included in other current assets) | 2,392 | 2,383 | 2,382 | |
Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows | $ 64,997 | $ 83,529 | $ 121,165 | $ 201,153 |
Balance Sheet Components - Prep
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Prepaid Expense And Other Assets [Abstract] | ||
Preclinical and clinical | $ 31 | $ 261 |
Other | 433 | 301 |
Total | $ 464 | $ 562 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Payables And Accruals [Abstract] | ||
Payroll and related | $ 1,946 | $ 2,058 |
Preclinical and clinical | 91 | 1,694 |
Professional services | 11 | 204 |
Other | 746 | 137 |
Total | $ 2,794 | $ 4,093 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 56,117 | $ 62,428 |
Money market funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 56,117 | 62,428 |
Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 56,117 | 62,428 |
Level 1 [Member] | Money market funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 56,117 | $ 62,428 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
Aug. 01, 2018USD ($) | May 31, 2018USD ($) | Jan. 31, 2018USD ($) | Mar. 31, 2017USD ($)ft²Lease | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | ||||||
Number of lease renewal option | Lease | 1 | |||||
Operating lease payments | $ 17,712 | |||||
Inducement payment received | 1,896 | |||||
Build-to-suit obligation | 7,324 | $ 5,428 | ||||
Property and equipment, net | $ 798 | |||||
Build-to-suit related to construction costs incurred | 3,500 | |||||
Other potential commitments | 10,000 | |||||
Maximum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitment to make development and sales-related milestone payments | 30,000 | |||||
Assets Held under Operating Leases [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Property and equipment, net | 8,700 | |||||
1020 Marsh Road, Menlo Park, California [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Operating facility lease area | ft² | 34,500 | |||||
Lease facility delivery date | 2017-04 | |||||
Lease commencement date | August 8, 2017 | |||||
Operating facility lease term | 86 months | |||||
Lease agreement, one renewal option term | 5 years | |||||
Operating lease payments | $ 20,000 | $ 17,700 | ||||
Tenant improvement allowance | 1,900 | |||||
Letter of credit to secure lease obligations | $ 2,400 | |||||
Tenant improvement allowance received | $ 400 | $ 1,500 | ||||
Percentage of tenant improvement allowance received | 20.00% | 80.00% | ||||
Lease facility began occupying date | 2017-08 | |||||
Lease agreement, additional extended lease term | 5 years | |||||
1020 Marsh Road, Menlo Park, California [Member] | Sublease Agreement [Member] | EVA Automation, Inc [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Lease commencement date | October 1, 2018 | |||||
Operating facility lease term | 72 months | |||||
Operating lease payments receivable | $ 14,700 | |||||
Abatement of base rent lease payment | $ 900 | |||||
Operating lease abatement term | 5 months | |||||
1060 Marsh Road [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Operating facility lease area | ft² | 17,400 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Future Minimum Lease Payments Under All of our Non-Cancellable Operating and Facility Leases (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Leases [Abstract] | |
2,018 | $ 690 |
2,019 | 2,780 |
2,020 | 2,854 |
2,021 | 2,930 |
2,022 | 3,009 |
Thereafter | 5,449 |
Total | $ 17,712 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - shares | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock, shares issued | 6,040,112 | 5,989,688 |
2014 Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 445,000 | |
Percentage of common stock issued and outstanding increase annually | 4.50% | |
Number of common stock shares subject to outstanding awards | 660,100 | |
Employee Stock Purchase Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Percentage of common stock issued and outstanding increase annually | 1.00% | |
Number of shares reserved | 150,000 | |
Additional shares issued | 300,000 | |
Common stock, shares issued | 37,300 |
Net Loss per Share of Common _3
Net Loss per Share of Common Stock - Summary of Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (6,550) | $ (49,788) | $ (25,379) | $ (116,107) |
Weighted-average shares used to compute basic and diluted net loss per share | 6,040 | 5,945 | 5,998 | 5,889 |
Basic and diluted net loss per common share | $ (1.08) | $ (8.37) | $ (4.23) | $ (19.72) |
Net Loss per Share of Common _4
Net Loss per Share of Common Stock - Summary of Computation of Basic and Diluted Net Loss Per Share (Parenthetical) (Detail) | Oct. 16, 2018 |
Subsequent Event [Member] | |
Reverse stock split ratio | 0.1667 |
Restructuring Plan - Additional
Restructuring Plan - Additional Information (Detail) - Restructuring Plan [Member] $ in Millions | Jun. 26, 2018Employee | Oct. 31, 2017 | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) |
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring plan effective date | Oct. 20, 2017 | ||||
Total number of employees reduced | Employee | 14 | ||||
Approximate reduction as a percent of workforce | 59.00% | ||||
Restructuring plan notification date to affected employees | Jun. 26, 2018 | ||||
One-time severance-related charge | $ 0.2 | $ 3.5 | $ 3.7 | ||
Payment of one-time severance-related charge | 3.7 | ||||
General and administrative [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
One-time severance-related charge | 1.2 | ||||
Research and development [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
One-time severance-related charge | $ 2.5 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) $ / shares in Units, $ in Millions | Oct. 16, 2018 | Oct. 12, 2018USD ($)$ / sharesshares | Oct. 31, 2018USD ($)ft² | Sep. 30, 2018$ / shares | Dec. 31, 2017$ / shares |
Subsequent Event [Line Items] | |||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||
Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Reverse stock split ratio | 1-for-6 | ||||
Subsequent Event [Member] | 2479 E. Bayshore Blvd, Palo Alto, California [Member] | Sublease Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Lease commencement date | October 30, 2018 | ||||
Office space lease area | ft² | 4,240 | ||||
Lease expires date | Aug. 31, 2020 | ||||
Sublease payment receivable | $ | $ 0.3 | ||||
Subsequent Event [Member] | Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Reverse stock split ratio | 1-for-6 | ||||
Subsequent Event [Member] | Versartis [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock, par value | $ / shares | $ 0.0001 | ||||
Preliminary estimate of purchase price | $ | $ 54.2 | ||||
Subsequent Event [Member] | Versartis [Member] | Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Shares issued upon conversion of stock | 2.2801 | ||||
Aggregate consideration issuable in merger, shares | 30,851,600 | ||||
Subsequent Event [Member] | Versartis [Member] | Options to Purchase Common Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Aggregate consideration issuable in merger, shares | 7,103,859 |