Verastem (VSTM) 10-Q 11 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	6-May-15
Document and Entity Information
Entity Registrant Name	Verastem, Inc.
Entity Central Index Key	1526119
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		36,536,742
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$30,125	$33,901
Short-term investments	101,946	58,774
Prepaid expenses and other current assets	2,801	2,641
Total current assets	134,872	95,316
Property and equipment, net	2,645	2,825
Long-term investments	4,001
Restricted cash	203	203
Other assets	282	305
Total assets	142,003	98,649
Current liabilities:
Accounts payable	3,951	3,216
Accrued expenses	5,254	5,519
Liability classified stock-based compensation awards	256	469
Total current liabilities	9,461	9,204
Other liabilities	637	677
Liability for shares subject to repurchase		2
Stockholders' equity
Convertible Preferred stock, $0.0001 par value; 5,000 shares authorized; none issued and outstanding
Common stock, $0.0001 par value; 100,000 shares authorized; 36,152 and 27,259 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively	4	3
Additional paid-in capital	288,060	229,770
Accumulated other comprehensive income	39	11
Accumulated deficit	-156,198	-141,018
Total stockholders' equity	131,905	88,766
Total liabilities and stockholders' equity	$142,003	$98,649

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Per Share data, unless otherwise specified
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	36,152	27,259
Common stock, shares outstanding	36,152	27,259

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Operating expenses:
Research and development	$10,528	$8,411
General and administrative	4,714	4,723
Total operating expenses	15,242	13,134
Loss from operations	-15,242	-13,134
Interest income	62	72
Net loss	-15,180	-13,062
Net loss per share -basic and diluted	($0.46)	($0.51)
Weighted-average number of common shares used in net loss per share-basic and diluted	33,323	25,478
Net loss	-15,180	-13,062
Unrealized gains (losses) on available-for-sale securities	28	-6
Comprehensive loss	($15,152)	($13,068)

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Operating activities
Net loss	($15,180)	($13,062)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	188	64
Stock-based compensation expense	3,134	3,985
Amortization of premiums and discounts on available-for-sale marketable securities	58
Non-cash expense related to purchase of technology rights		1,197
Changes in operating assets and liabilities:
Prepaid expenses, other current assets and other assets	-250	-298
Accounts payable	891	-245
Accrued expenses and other liabilities	-355	-492
Liability classified stock-based compensation awards	-213	-425
Net cash used in operating activities	-11,727	-9,276
Investing activities
Purchases of property and equipment	-196	-10
Purchases of investments	-78,326	-9,172
Maturities of investments	31,123	13,300
Net cash (used in) provided by investing activities	-47,399	4,118
Financing activities
Proceeds from the exercise of stock options	7	11
Net proceeds from the issuance of common stock	55,566
Cash used to settle restricted stock liability awards	-223	-498
Net cash provided by (used in) financing activities	55,350	-487
Decrease in cash and cash equivalents	-3,776	-5,645
Cash and cash equivalents at beginning of period	33,901	18,889
Cash and cash equivalents at end of period	30,125	13,244
Supplemental disclosure of non-cash financing and investing activities
Proceeds from the issuance of common stock included in prepaid expenses and other current assets	1,972
Public offering costs in accounts payable and accrued expenses and other liabilities	55
Purchases of property and equipment in accounts payable	$8

Summary_of_significant_account

Summary of significant accounting policies	3 Months Ended
	Mar. 31, 2015
Summary of significant accounting policies
Summary of significant accounting policies	1. Summary of significant accounting policies
	Basis of presentation
	The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial reporting and as required by Regulation S-X, Rule 10-01. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including those which are normal and recurring) considered necessary for a fair presentation of the interim financial information have been included. When preparing financial statements in conformity with GAAP, the Company must make estimates and assumptions that affect the reported amounts of and related disclosures at the date of the financial statements. Actual results could differ from those estimates. Additionally, operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2015. For further information, refer to the financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 as filed with the SEC on March 10, 2015.
	Recent Accounting Pronouncements
	Revenue Recognition
	In May 2014, the FASB issued ASU No. 2014-09, which amends the guidance for accounting for revenue from contracts with customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition, and creates a new Topic 606, Revenue from Contracts with Customers. This guidance is effective for fiscal years beginning after December 15, 2016, with early adoption not permitted. On April 1, 2015, the FASB voted to propose to defer the effective date of the ASU by one year. If the FASB’s proposed decision is adopted, the Company would be required to apply the new revenue standard to annual reporting periods beginning after December 15, 2017, and would be permitted to adopt the ASU early, but not before the original public organization effective date (annual periods beginning after December 15, 2016). Two adoption methods are permitted: retrospectively to all prior reporting periods presented, with certain practical expedients permitted; or retrospectively with the cumulative effect of initially adopting the ASU recognized at the date of initial application. The Company has not yet determined which adoption method it will utilize or the effect that the adoption of this guidance will have on its consolidated financial statements.
	There have been no changes to the Company’s significant accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 as filed with the SEC on March 10, 2015.

Fair_value_of_financial_instru

Fair value of financial instruments	3 Months Ended
	Mar. 31, 2015
Fair value of financial instruments
Fair value of financial instruments	2. Fair value of financial instruments
	The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. A fair value hierarchy has been established that prioritizes valuation inputs based on the observable nature of those inputs. The fair value hierarchy applies only to the valuation inputs used in determining the reported fair value of the investments and is not a measure of the investment credit quality. The hierarchy defines three levels of valuation inputs:
	Level 1 inputs	Quoted prices in active markets for identical assets or liabilities
	Level 2 inputs	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
	Level 3 inputs	Unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability
	The following table presents information about the Company’s financial assets and liabilities that have been measured at fair value at March 31, 2015 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands):
	Description		Total		Quoted prices		Significant		Significant
					in active		other		unobservable
					markets		observable		inputs
					(Level 1)		inputs		(Level 3)
							(Level 2)
	Financial assets
	Cash equivalents		$	28,250	$	26,247	$	2,003	$	—
	Short-term investments		101,946		—		101,946		—
	Long-term investments		4,001		—		4,001		—
	Total financial assets		$	134,197	$	26,247	$	107,950	$	—
	Financial liabilities
	Liability classified stock-based compensation awards		$	256	$	256	$	—	$	—
	Total financial liabilities		$	256	$	256	$	—	$	—
	The following table presents information about the Company’s financial assets that have been measured at fair value at December 31, 2014 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands).
	Description		Total		Quoted prices		Significant		Significant
					in active		other		unobservable
					markets		observable		inputs
					(Level 1)		inputs		(Level 3)
							(Level 2)
	Financial assets
	Cash equivalents		$	32,140	$	32,140	$	—	$	—
	Short-term investments		58,774		—		58,774		—
	Total financial assets		$	90,914	$	32,140	$	58,774	$	—
	Financial liabilities
	Liability classified stock-based compensation awards		$	469	$	469	$	—	$	—
	Total financial liabilities		$	469	$	469	$	—	$	—
	The Company’s cash equivalents and investments are comprised of money market accounts, government-sponsored enterprise securities and corporate bonds and commercial paper of publicly traded companies. These investments have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing third party pricing services or other market observable data. The pricing services utilize industry standard valuation models, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. The Company validates the prices provided by third party pricing services by reviewing their pricing methods and matrices, obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming that the relevant markets are active. After completing its validation procedures, the Company did not adjust or override any fair value measurements provided by the pricing services as of March 31, 2015.
	The Company’s liability classified stock-based compensation awards are comprised of restricted stock units (RSUs) that allow for greater than minimum statutory tax withholdings. These awards are valued based on the fair value of the Company’s common stock underlying the awards, which is traded on an active market. During the first quarter of 2013, the Company amended the terms of certain RSUs to allow for tax withholdings greater than the minimum required statutory withholding amount. As a result of this change in the terms of the awards, the outstanding RSUs are considered to be liability instruments. As a result of this modification, the Company records a liability for the fair value of the awards as of each reporting date with the change in fair value recorded through the statement of operations. The Company will record stock-based compensation expense equal to the greater of the original grant date fair value of the awards or the settlement date fair value. During the quarters ended March 31, 2015 and 2014, the Company paid approximately $223,000 and approximately $498,000 to settle the tax liability for these awards, respectively.

Investments

Investments	3 Months Ended
	Mar. 31, 2015
Investments
Investments	3. Investments
	The Company’s investments are classified as available-for-sale pursuant to the accounting standards for investments in debt and equity securities. The Company classifies investments available to fund current operations as current assets on its balance sheets. Investments are classified as long-term assets on the balance sheets if (i) the Company has the intent and ability to hold the investments for a period of at least one year and (ii) the contractual maturity date of the investments is greater than one year.
	Investments are carried at fair value with unrealized gains and losses included as a component of accumulated other comprehensive income, until such gains and losses are realized. If a decline in the fair value is considered other-than-temporary, based on available evidence, the unrealized loss is transferred from other comprehensive loss to the statement of operations. There were no charges taken for other-than-temporary declines in fair value of investments during the three months ended March 31, 2015 and 2014. The Company recorded approximate unrealized gains of $28,000 and approximate unrealized losses of $6,000 during the three months ended March 31, 2015 and 2014, respectively. Realized gains and losses are included in interest income in the statement of operations. There were no realized gains or losses recognized during the three months ended March 31, 2015 or 2014. The Company utilizes the specific identification method as a basis to determine the cost of securities sold.
	The Company reviews investments for other-than-temporary impairment whenever the fair value of an investment is less than the amortized cost and evidence indicates that an investment’s carrying amount is not recoverable within a reasonable period of time. To determine whether an impairment is other-than-temporary, the Company considers the intent to sell, or whether it is more likely than not that the Company will be required to sell, the investment before recovery of the investment’s amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, compliance with the Company’s investment policy, the severity and the duration of the impairment and changes in value subsequent to year end. As of March 31, 2015, there were no investments with a fair value that was significantly lower than the amortized cost basis or any investments that had been in an unrealized loss position for a significant period.
	Cash, cash equivalents and investments at March 31, 2015 and December 31, 2014 consist of the following (in thousands):
		Amortized		Gross		Gross			Fair
		Cost		Unrealized		Unrealized			Value
				Gains		Losses
	March 31, 2015
	Cash and cash equivalents:
	Cash and money market accounts	$	28,122	$	—	$	—		$	28,122
	Corporate bonds	2,003		—		—			2,003
	Total cash and cash equivalents	$	30,125	$	—	$	—		$	30,125
	Investments:
	Government-sponsored enterprise securities (due within 1-2 years)	$	3,999	$	2	$	—		$	4,001
	Corporate bonds and commercial paper (due within 1 year)	101,909		51		(14		)	101,946
	Total investments	$	105,908	$	53	$	(14	)	$	105,947
	Total cash, cash equivalents, and investments	$	136,033	$	53	$	(14	)	$	136,072
		Amortized		Gross		Gross			Fair
		Cost		Unrealized		Unrealized			Value
				Gains		Losses
	December 31, 2014
	Cash and cash equivalents:
	Cash and money market accounts	$	33,901	$	—	$	—		$	33,901
	Total cash and cash equivalents	$	33,901	$	—	$	—		$	33,901
	Investments:
	Government-sponsored enterprise securities (due within 1 year)	$	3,700	$	—	$	—		$	3,700
	Corporate bonds and commercial paper (due within 1 year)	55,063		18		(7		)	55,074
	Total investments	$	58,763	$	18	$	(7	)	$	58,774
	Total cash, cash equivalents, and investments	$	92,664	$	18	$	(7	)	$	92,675

Accrued_expenses

Accrued expenses	3 Months Ended
	Mar. 31, 2015
Accrued expenses
Accrued expenses	4. Accrued expenses
	Accrued expenses consist of the following (in thousands):
		March 31,		December 31,
		2015		2014
	Contract research organization costs	$	3,652	$	3,049
	Compensation and related benefits	1,091		1,990
	Professional fees	263		233
	Deferred rent	148		144
	Other	100		103
		$	5,254	$	5,519

Net_loss_per_share

Net loss per share	3 Months Ended
	Mar. 31, 2015
Net loss per share
Net loss per share	5. Net loss per share
	Basic and diluted net loss per common share is calculated by dividing net loss applicable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. The Company’s potentially dilutive shares, which include outstanding stock options, restricted stock units, unvested restricted stock and the warrant issued in 2014 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 potentially dilutive securities, which represents all outstanding potentially dilutive securities, were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:
		Three months ended
		March 31,
		2015	2014
	Outstanding stock options	5,370,567	3,719,831
	Unvested restricted stock units	191,527	409,537
	Outstanding warrants	142,857	142,857
	Unvested restricted stock	—	224,852

Stockbased_compensation

Stock-based compensation	3 Months Ended
	Mar. 31, 2015
Stock-based compensation
Stock-based compensation	6. Stock-based compensation
	In December 2011, the Company adopted the 2012 Incentive Plan (the 2012 Plan). The 2012 Plan became effective upon the closing of the Company’s IPO in February 2012. The 2012 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units and other stock-based and cash awards. Upon effectiveness, the number of shares of common stock that are reserved under the 2012 Plan is the sum of 3,428,571 shares plus the number of shares available under the 2010 Plan. The number of shares reserved under the 2012 Plan is increased by the number of shares of common stock (up to a maximum of 571,242 shares) subject to outstanding awards under the 2010 Plan that expire, terminate or are otherwise surrendered, cancelled, forfeited or repurchased. The 2012 Plan includes an “evergreen provision” that allows for an annual increase in the number of shares of common stock available for issuance under the 2012 Plan. The annual increase will be added on the first day of each year beginning in 2013 and each subsequent anniversary until the expiration of the 2012 Plan, equal to the lowest of 1,285,714 shares of common stock, 4.0% of the number of shares of common stock outstanding and an amount determined by the board of directors. On January 1, 2015 and 2014, the shares available under the 2012 Plan increased by 1,081,045 and 1,026,309 shares of common stock, respectively.
	In December 2014, the Company established an inducement award program (in accordance with NASDAQ Listing Rule 5635(c)(4)) under which it may grant non-statutory stock options to purchase up to an aggregate of 750,000 shares of common stock to new or prospective employees as inducement to enter into employment with the Company. The program is governed by the terms of the 2012 Plan but the shares are not issued pursuant to the 2012 Plan.  The Company has granted 210,000 shares under this program as of March 31, 2015.
	Restricted common stock
	A summary of the Company’s restricted stock activity for the three months ended March 31, 2015 and related information is as follows:
		Shares		Weighted-
				average
				purchase price
				per share
	Unvested at December 31, 2014	7,995		$	0.28
	Vested	(7,995	)	0.28
	Unvested at March 31, 2015	—		$	0
	No restricted stock was granted during the three months ended March 31, 2015 and 2014. The total fair value of shares vested during the three months ended March 31, 2015 and 2014 was an approximate $59,000 and $1.1 million respectively. As of March 31, 2015, there was no unrecognized stock-based compensation expense related to unvested restricted stock.
	Restricted stock units
	A summary of the Company’s restricted stock units (RSUs) activity and related information is as follows:
		Shares		Weighted-
				average
				grant date
				fair value
	Outstanding at December 31, 2014	293,747		$	10.54
	Vested	(81,560	)	10.71
	Forfeited	(20,660	)	9.68
	Outstanding at March 31, 2015	191,527		$	10.56
	No RSUs were granted during the three months ended March 31, 2015 and 2014. The total fair value of RSUs vested during the three months ended March 31, 2015 and 2014 was approximately $873,000 and $1.2 million respectively. As of March 31, 2015, there was $1.2 million of total unrecognized stock based compensation expense related to unvested RSUs granted under the 2012 Plan. The Company expects to recognize this expense over a weighted-average period of 0.8 years.
	During the first quarter of 2013, the Company amended the terms of certain RSUs related to a total of 697,060 shares of common stock to allow for tax withholdings greater than the minimum required statutory withholding amount, of which 154,211 remain outstanding as of March 31, 2015. As a result of this change in the terms of the awards, the outstanding RSUs are considered to be liability instruments. As a result of this modification, the Company records a liability for the fair value of the awards as of each reporting date with the change in fair value recorded through the statement of operations. The Company will record stock-based compensation expense equal to the greater of the original grant date fair value of the awards or the settlement date fair value. During the quarters ended March 31, 2015 and 2014, the Company deposited with taxing authorities approximately $223,000 and $498,000, respectively, in respect of the tax liability for these awards.
	Stock options
	A summary of the Company’s stock option activity and related information follows:
		Shares		Weighted-		Weighted-	Aggregate
				average		average	intrinsic
				exercise price		remaining	value
				per share		contractual
						term (years)
	Outstanding at December 31, 2014	4,206,440		$	10.38
	Granted	1,228,507		8.84
	Exercised	(24,286	)	0.28
	Canceled	(40,094	)	10.72
	Outstanding at March 31, 2015	5,370,567		$	10.07	8.5	$	5,541,580
	Exercisable at March 31, 2015	2,237,197		$	9.7	7.8	$	2,965,351
	Vested and expected to vest at March 31, 2015	5,029,700		$	10.07	8.5	$	5,267,067
	The fair value of each stock option is estimated on the grant date using the Black-Scholes option-pricing model using the following assumptions:
		Three months ended
		March 31,
		2015		2014
	Risk-free interest rate	1.6	%	2.1	%
	Dividend yield	—		—
	Volatility	72	%	81	%
	Expected term (years)	6.1		6.2

Equity_Offerings

Equity Offerings	3 Months Ended
	Mar. 31, 2015
Equity Offerings
Equity Offerings	7. Equity Offerings
	In January 2015, the Company closed a public offering in which it sold 8,337,500 shares of its common stock to the public at a price of $6.50 per share, including 1,087,500 shares issued pursuant to the exercise of the underwriters’ option to purchase additional shares. The offering was completed under the shelf registration statement that was filed on Form S-3 and declared effective by the SEC on January 8, 2014. The net proceeds from this offering were approximately $50.9 million, after deducting underwriting discounts and commissions.
	In December 2013, the Company established an at-the-market equity offering program pursuant to which it is able to offer and sell up to $35 million of its common stock at then current market prices from time to time through Cantor Fitzgerald & Co., as sales agent. In November 2014, the Company commenced sales under this program.  Through December 31, 2014, the Company sold 1,346,676 shares under this program for net proceeds of approximately $11.6 million (after deducting commissions and other offering expenses) and the Company sold an additional 470,309 shares in the three months ended March 31, 2015 for net proceeds of approximately $4.4 million (after deducting commissions and other offering expenses).  Of the cumulative net proceeds through March 31, 2015, $9.5 million was received in 2014, $4.6 million was received in the 2015 Quarter and $1.9 million was received subsequent to March 31, 2015.
	As of May 8, 2015, the Company has sold an additional 382,471 shares of common stock under the at-the-market equity offering program with net proceeds of $3.8 million, after deducting commissions and other offering expenses, during the second quarter of 2015.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2015
Subsequent Events.
Subsequent Events	8. Subsequent Events
	There were no material subsequent events other than those disclosed in these footnotes.

Summary_of_significant_account1

Summary of significant accounting policies (Policies)	3 Months Ended
	Mar. 31, 2015
Summary of significant accounting policies
Basis of presentation	Basis of presentation
	The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial reporting and as required by Regulation S-X, Rule 10-01. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including those which are normal and recurring) considered necessary for a fair presentation of the interim financial information have been included. When preparing financial statements in conformity with GAAP, the Company must make estimates and assumptions that affect the reported amounts of and related disclosures at the date of the financial statements. Actual results could differ from those estimates. Additionally, operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2015. For further information, refer to the financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 as filed with the SEC on March 10, 2015.
Recent Accounting Pronouncements	Recent Accounting Pronouncements
	Revenue Recognition
	In May 2014, the FASB issued ASU No. 2014-09, which amends the guidance for accounting for revenue from contracts with customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition, and creates a new Topic 606, Revenue from Contracts with Customers. This guidance is effective for fiscal years beginning after December 15, 2016, with early adoption not permitted. On April 1, 2015, the FASB voted to propose to defer the effective date of the ASU by one year. If the FASB’s proposed decision is adopted, the Company would be required to apply the new revenue standard to annual reporting periods beginning after December 15, 2017, and would be permitted to adopt the ASU early, but not before the original public organization effective date (annual periods beginning after December 15, 2016). Two adoption methods are permitted: retrospectively to all prior reporting periods presented, with certain practical expedients permitted; or retrospectively with the cumulative effect of initially adopting the ASU recognized at the date of initial application. The Company has not yet determined which adoption method it will utilize or the effect that the adoption of this guidance will have on its consolidated financial statements.
	There have been no changes to the Company’s significant accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 as filed with the SEC on March 10, 2015.

Fair_value_of_financial_instru1

Fair value of financial instruments (Tables)	3 Months Ended
	Mar. 31, 2015
Fair value of financial instruments
Schedule of information about financial assets and liabilities measured at fair value	The following table presents information about the Company’s financial assets and liabilities that have been measured at fair value at March 31, 2015 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands):
	Description	Total		Quoted prices		Significant		Significant
				in active		other		unobservable
				markets		observable		inputs
				(Level 1)		inputs		(Level 3)
						(Level 2)
	Financial assets
	Cash equivalents	$	28,250	$	26,247	$	2,003	$	—
	Short-term investments	101,946		—		101,946		—
	Long-term investments	4,001		—		4,001		—
	Total financial assets	$	134,197	$	26,247	$	107,950	$	—
	Financial liabilities
	Liability classified stock-based compensation awards	$	256	$	256	$	—	$	—
	Total financial liabilities	$	256	$	256	$	—	$	—
	The following table presents information about the Company’s financial assets that have been measured at fair value at December 31, 2014 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands).
	Description	Total		Quoted prices		Significant		Significant
				in active		other		unobservable
				markets		observable		inputs
				(Level 1)		inputs		(Level 3)
						(Level 2)
	Financial assets
	Cash equivalents	$	32,140	$	32,140	$	—	$	—
	Short-term investments	58,774		—		58,774		—
	Total financial assets	$	90,914	$	32,140	$	58,774	$	—
	Financial liabilities
	Liability classified stock-based compensation awards	$	469	$	469	$	—	$	—
	Total financial liabilities	$	469	$	469	$	—	$	—

Investments_Tables

Investments (Tables)	3 Months Ended
	Mar. 31, 2015
Investments
Schedule of cash, cash equivalents and investments	Cash, cash equivalents and investments at March 31, 2015 and December 31, 2014 consist of the following (in thousands):
		Amortized		Gross		Gross			Fair
		Cost		Unrealized		Unrealized			Value
				Gains		Losses
	March 31, 2015
	Cash and cash equivalents:
	Cash and money market accounts	$	28,122	$	—	$	—		$	28,122
	Corporate bonds	2,003		—		—			2,003
	Total cash and cash equivalents	$	30,125	$	—	$	—		$	30,125
	Investments:
	Government-sponsored enterprise securities (due within 1-2 years)	$	3,999	$	2	$	—		$	4,001
	Corporate bonds and commercial paper (due within 1 year)	101,909		51		(14		)	101,946
	Total investments	$	105,908	$	53	$	(14	)	$	105,947
	Total cash, cash equivalents, and investments	$	136,033	$	53	$	(14	)	$	136,072
		Amortized		Gross		Gross			Fair
		Cost		Unrealized		Unrealized			Value
				Gains		Losses
	December 31, 2014
	Cash and cash equivalents:
	Cash and money market accounts	$	33,901	$	—	$	—		$	33,901
	Total cash and cash equivalents	$	33,901	$	—	$	—		$	33,901
	Investments:
	Government-sponsored enterprise securities (due within 1 year)	$	3,700	$	—	$	—		$	3,700
	Corporate bonds and commercial paper (due within 1 year)	55,063		18		(7		)	55,074
	Total investments	$	58,763	$	18	$	(7	)	$	58,774
	Total cash, cash equivalents, and investments	$	92,664	$	18	$	(7	)	$	92,675

Accrued_expenses_Tables

Accrued expenses (Tables)	3 Months Ended
	Mar. 31, 2015
Accrued expenses
Schedule of accrued expenses	Accrued expenses consist of the following (in thousands):
		March 31,		December 31,
		2015		2014
	Contract research organization costs	$	3,652	$	3,049
	Compensation and related benefits	1,091		1,990
	Professional fees	263		233
	Deferred rent	148		144
	Other	100		103
		$	5,254	$	5,519

Net_loss_per_share_Tables

Net loss per share (Tables)	3 Months Ended
	Mar. 31, 2015
Net loss per share
Schedule of potentially anti-dilutive securities excluded from calculation of diluted net loss per share
		Three months ended
		March 31,
		2015	2014
	Outstanding stock options	5,370,567	3,719,831
	Unvested restricted stock units	191,527	409,537
	Outstanding warrants	142,857	142,857
	Unvested restricted stock	—	224,852

Stockbased_compensation_Tables

Stock-based compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Stock-based compensation
Summary of restricted common stock activity and related information
		Shares		Weighted-
				average
				purchase price
				per share
	Unvested at December 31, 2014	7,995		$	0.28
	Vested	(7,995	)	0.28
	Unvested at March 31, 2015	—		$	0
Summary of restricted stock units (RSUs) activity and related information
		Shares		Weighted-
				average
				grant date
				fair value
	Outstanding at December 31, 2014	293,747		$	10.54
	Vested	(81,560	)	10.71
	Forfeited	(20,660	)	9.68
	Outstanding at March 31, 2015	191,527		$	10.56
Summary of stock option activity and related information
		Shares		Weighted-		Weighted-	Aggregate
				average		average	intrinsic
				exercise price		remaining	value
				per share		contractual
						term (years)
	Outstanding at December 31, 2014	4,206,440		$	10.38
	Granted	1,228,507		8.84
	Exercised	(24,286	)	0.28
	Canceled	(40,094	)	10.72
	Outstanding at March 31, 2015	5,370,567		$	10.07	8.5	$	5,541,580
	Exercisable at March 31, 2015	2,237,197		$	9.7	7.8	$	2,965,351
	Vested and expected to vest at March 31, 2015	5,029,700		$	10.07	8.5	$	5,267,067
Schedule of assumptions used to estimate fair value of each stock option on grant date
		Three months ended
		March 31,
		2015		2014
	Risk-free interest rate	1.6	%	2.1	%
	Dividend yield	—		—
	Volatility	72	%	81	%
	Expected term (years)	6.1		6.2

Fair_value_of_financial_instru2

Fair value of financial instruments (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Financial assets
Cash and cash equivalents	$30,125,000		$33,901,000
Short-term investments	101,946,000		58,774,000
Financial liabilities
Cash paid to settle restricted stock liability awards	223,000	498,000
RSUs
Financial liabilities
Cash paid to settle restricted stock liability awards	223,000	498,000
Total
Financial assets
Cash and cash equivalents	28,250,000		32,140,000
Short-term investments	101,946,000		58,774,000
Long-term investments	4,001,000
Total financial assets	134,197,000		90,914,000
Financial liabilities
Liability classified stock-based compensation awards	256,000		469,000
Total financial liabilities	256,000		469,000
Quoted prices in active markets (Level 1)
Financial assets
Cash and cash equivalents	26,247,000		32,140,000
Total financial assets	26,247,000		32,140,000
Financial liabilities
Liability classified stock-based compensation awards	256,000		469,000
Total financial liabilities	256,000		469,000
Significant other observable inputs (Level 2)
Financial assets
Cash and cash equivalents	2,003,000
Short-term investments	101,946,000		58,774,000
Long-term investments	4,001,000
Total financial assets	$107,950,000		$58,774,000

Investments_Details

Investments (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013
Investments
Cash and cash equivalents, Amortized cost	$30,125,000	$13,244,000	$33,901,000	$18,889,000
Cash and cash equivalents, Fair value	30,125,000		33,901,000
Charges for other-than-temporary declines in fair value of short-term or long-term investments	0	0
Unrealized gains (losses) on investments	28,000	-6,000
Realized gains or losses on investments	0	0
Investments that had been in an unrealized loss position for a significant period	0
Amortized cost
Investments, Amortized Cost	105,908,000		58,763,000
Total cash, cash equivalents, and investments, Amortized Cost	136,033,000		92,664,000
Investments, Gross unrealized gains
Total cash, cash equivalents, and investments, Gross Unrealized Gains	53,000		18,000
Investments, Gross unrealized losses
Investments, Gross Unrealized Losses	-14,000		-7,000
Fair value
Investments, Fair Value	105,947,000		58,774,000
Total cash, cash equivalents, and investments, Fair Value	136,072,000		92,675,000
Government-sponsored enterprise securities
Amortized cost
Due within 1 - 2 years	3,999,000
Due within 1 year			3,700,000
Investments, Gross unrealized gains
Due within 1 - 2 years	2,000
Fair value
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value			3,700,000
Available For Sale Securities, Debt Maturities Second Year Following Current Year Fair Value	4,001,000
Corporate bonds and commercial paper
Amortized cost
Due within 1 year	101,909,000		55,063,000
Investments, Gross unrealized gains
Due within 1 year	51,000		18,000
Investments, Gross unrealized losses
Due within 1 year	-14,000		-7,000
Fair value
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value	101,946,000		55,074,000
Cash and cash equivalents
Investments
Cash and cash equivalents, Amortized cost	28,122,000		33,901,000
Cash and cash equivalents, Fair value	28,122,000		33,901,000
Corporate bonds and commercial paper
Investments
Cash and cash equivalents, Amortized cost	2,003,000
Cash and cash equivalents, Fair value	$2,003,000

Accrued_expenses_Details

Accrued expenses (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Accrued expenses
Contract research organization costs	$3,652	$3,049
Compensation and related benefits	1,091	1,990
Professional fees	263	233
Deferred rent	148	144
Other	100	103
Accrued expenses	$5,254	$5,519

Net_loss_per_share_Details

Net loss per share (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Outstanding stock options
Net loss per share
Potentially anti-dilutive securities excluded from calculation of diluted net loss per share (in shares)	5,370,567	3,719,831
Unvested restricted stock units
Net loss per share
Potentially anti-dilutive securities excluded from calculation of diluted net loss per share (in shares)	191,527	409,537
Outstanding warrants
Net loss per share
Potentially anti-dilutive securities excluded from calculation of diluted net loss per share (in shares)	142,857	142,857
RSUs
Net loss per share
Potentially anti-dilutive securities excluded from calculation of diluted net loss per share (in shares)		224,852

Stockbased_compensation_Detail

Stock-based compensation (Details) (USD $)	3 Months Ended		0 Months Ended		1 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Jan. 01, 2015	Jan. 01, 2014	Feb. 29, 2012	Dec. 31, 2014	Mar. 31, 2013
Additional disclosures
Cash used to settle restricted stock liability awards	$223,000	$498,000
2012 Plan
Stock-based compensation
Initial number of shares reserved					3,428,571
Annual increase in number of shares reserved	1,285,714
Percentage of outstanding shares of common stock used to compute annual increase in number of shares reserved	4.00%
Increase in number of shares reserved			1,081,045	1,026,309
Shares
Maximum incremental number of shares reserved					571,242
Inducement Award Program
Shares
Maximum incremental number of shares reserved						750,000
Awards granted (in shares)	210,000
Unvested restricted stock units
Shares
Unvested at the beginning of the period (in shares)	7,995		7,995
Vested (in shares)	-7,995
Awards granted (in shares)	0	0
Weighted-average grant date fair value
Unvested at the beginning of the period (in dollars per share)	$0.28		0.28
Vested (in dollars per share)	$0.28
Unvested at the end of the period (in dollars per share)	$0
Additional disclosures
Total unrecognized stock-based compensation expense (in dollars)	0
Fair value of shares vested	59,000	1,100,000
RSUs
Shares
Unvested at the beginning of the period (in shares)	293,747		293,747
Vested (in shares)	-81,560
Forfeited (in shares)	-20,660
Unvested at the end of the period (in shares)	191,527
Awards granted (in shares)	0	0
Modified restricted stock units authorized							697,060
Modified restricted stock units outstanding	154,211
Weighted-average grant date fair value
Unvested at the beginning of the period (in dollars per share)	$10.54		10.54
Vested (in dollars per share)	$10.71
Forfeited (in dollars per share)	$9.68
Unvested at the end of the period (in dollars per share)	$10.56
Additional disclosures
Fair value of shares vested	873,000	1,200,000
Cash used to settle restricted stock liability awards	223,000	498,000
RSUs | 2012 Plan
Additional disclosures
Total unrecognized stock-based compensation expense (in dollars)	$1,200,000
Weighted average period over which total unrecognized stock based compensation expense is expected to be recognized	9 months 18 days

Stockbased_compensation_Detail1

Stock-based compensation (Details 2) (Outstanding stock options, USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Outstanding stock options
Shares
Outstanding at the beginning of the period (in shares)	4,206,440
Granted (in shares)	1,228,507
Exercised (in shares)	-24,286
Canceled (in shares)	-40,094
Outstanding at the end of the period (in shares)	5,370,567
Exercisable at the end of the period (in shares)	2,237,197
Vested and expected to vest at end of period (in shares)	5,029,700
Weighted-average exercise price per share
Outstanding at the beginning of the period (in dollars per share)	$10.38
Granted (in dollars per share)	$8.84
Exercised (in dollars per share)	$0.28
Canceled (in dollars per share)	$10.72
Outstanding at the end of the period (in dollars per share)	$10.07
Exercisable at the end of the period (in dollars per share)	$9.70
Vested and expected to vest at end of the period (in dollars per share)	$10.07
Weighted-average remaining contractual term
Outstanding at the beginning of the period	8 years 6 months
Outstanding at the end of the period	8 years 6 months
Exercisable at the end of the period	7 years 9 months 18 days
Vested and expected to vest at the end of the period	8 years 6 months
Aggregate intrinsic value
Outstanding at the end of the period (in dollars)	$5,541,580
Exercisable at the end of the period (in dollars)	2,965,351
Vested and expected to vest at end of the period (in dollars)	$5,267,067
Assumptions used to estimate fair value of each stock-based award on the grant date
Risk-free interest rate (as a percent)	1.60%	2.10%
Volatility (as a percent)	72.00%	81.00%
Expected term	6 years 1 month 6 days	6 years 2 months 12 days

Equity_Offerings_Details

Equity Offerings (Details) (USD $)	1 Months Ended		3 Months Ended	12 Months Ended	1 Months Ended	0 Months Ended
In Millions, except Share data, unless otherwise specified	5-May-15	Dec. 31, 2013	Mar. 31, 2015	Dec. 31, 2014	Jan. 31, 2015	8-May-15
Number of shares of common stock issued in initial public offering			470,309	1,346,676
Issuance of common stock		$35
Net proceeds from issuance of common stock in public offering			4.4	11.6
Cash proceeds from the issuance of stock	1.9		4.6	9.5
Underwriting agreement
Number of shares of common stock issued in initial public offering					8,337,500
Share price for underwriting agreement					$6.50
Shares offering through underwriting agreement					1,087,500
Net proceeds from issuance of common stock in public offering					50.9
Subsequent events
Number of shares of common stock issued in initial public offering						382,471
Net proceeds from issuance of common stock in public offering						$3.80