Verastem (VSTM) 10-Q 9 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 29, 2015
Document and Entity Information
Entity Registrant Name	Verastem, Inc.
Entity Central Index Key	1,526,119
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		36,934,804
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 19,831	$ 33,901
Short-term investments	100,636	58,774
Prepaid expenses and other current assets	714	2,641
Total current assets	121,181	95,316
Property and equipment, net	2,282	2,825
Restricted cash	203	203
Other assets		305
Total assets	123,666	98,649
Current liabilities:
Accounts payable	3,646	3,216
Accrued expenses	7,171	5,519
Liability classified stock-based compensation awards	47	469
Total current liabilities	10,864	9,204
Other liabilities	$ 559	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; 36,935 and 27,259 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 4	$ 3
Additional paid-in capital	299,215	229,770
Accumulated other comprehensive income	44	11
Accumulated deficit	(187,020)	(141,018)
Total stockholders' equity	112,243	88,766
Total liabilities and stockholders' equity	$ 123,666	$ 98,649

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	36,935,000	27,259,000
Common stock, shares outstanding	36,935,000	27,259,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Operating expenses:
Research and development	$ 11,304	$ 9,047	$ 32,877	$ 25,763
General and administrative	4,230	4,341	13,361	13,846
Total operating expenses	15,534	13,388	46,238	39,609
Loss from operations	(15,534)	(13,388)	(46,238)	(39,609)
Interest income	89	56	236	193
Net loss	$ (15,445)	$ (13,332)	$ (46,002)	$ (39,416)
Net loss per share -basic and diluted	$ (0.42)	$ (0.52)	$ (1.29)	$ (1.54)
Weighted-average number of common shares used in net loss per share-basic and diluted	36,898	25,811	35,594	25,654
Net loss	$ (15,445)	$ (13,332)	$ (46,002)	$ (39,416)
Unrealized gains (losses) on available-for-sale securities	12	(3)	33	(2)
Comprehensive loss	$ (15,433)	$ (13,335)	$ (45,969)	$ (39,418)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net loss	$ (46,002)	$ (39,416)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	566	242
Amortization of premiums and discounts on available for sale marketable securities	214	230
Share-based Compensation	8,046	10,074
Common stock issued to purchase technology rights		1,197
Loss on disposal of fixed assets		4
Changes in operating assets and liabilities:
Prepaid expenses, other current assets and other assets	148	(454)
Accounts payable	560	47
Accrued expenses and other liabilities	1,534	1,321
Liability classified stock-based compensation awards	(422)	(492)
Net cash used in operating activities	(35,356)	(27,247)
Investing activities
Purchases of property and equipment	(204)	(1,862)
Purchases of investments	(151,501)	(32,570)
Maturities of investments	109,457	64,295
Increase in restricted cash		(203)
Net cash (used in) provided by investing activities	(42,248)	29,660
Financing activities
Proceeds from the exercise of stock options	13	12
Net proceeds from the sale of common stock	63,938
Cash used to settle restricted stock liability awards	(417)	(757)
Net cash provided by (used in) financing activities	63,534	(745)
Increase in cash and cash equivalents	(14,070)	1,668
Cash and cash equivalents at beginning of period	33,901	18,889
Cash and cash equivalents at end of period	$ 19,831	$ 20,557

Summary of significant accounti

Summary of significant accounting policies	9 Months Ended
	Sep. 30, 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 and related disclosures at the date of the financial statements. Actual results could differ from those estimates. Additionally, operating results for the three and nine months ended September 30, 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 Securities and Exchange Commission (“SEC”) on March 10, 2015. 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 instrum

Fair value of financial instruments	9 Months Ended
	Sep. 30, 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. The fair value hierarchy 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 September 30, 2015 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Description Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash equivalents $ $ $ $ — Short-term investments — — Total financial assets $ $ $ $ — Financial liabilities Liability classified stock-based compensation awards $ $ $ — $ — Total financial liabilities $ $ $ — $ — The following table presents information about the Company’s financial assets and liabilities 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 in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash equivalents $ $ $ — $ — Short-term investments — — Total financial assets $ $ $ $ — Financial liabilities Liability classified stock-based compensation awards $ $ $ — $ — Total financial liabilities $ $ $ — $ — The Company’s cash equivalents and investments are comprised of money market accounts, government-sponsored enterprise securities, corporate bonds and commercial paper. 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 September 30, 2015 and December 31, 2014. 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 cash 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 three and the nine months ended September 30, 2015 and 2014, the Company made approximate payments of $164,000, $417,000, $200,000 and $757,000, respectively, to settle the tax liability for awards that settled during such periods.

Investments

Investments	9 Months Ended
	Sep. 30, 2015
Investments
Investments	3. Investments The Company’s investments are classified as available-for-sale pursuant to the accounting standards for i nvestments 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 (loss) 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 short-term or long-term investments during the three and nine months ended September 30, 2015 and 2014. The Company recorded approximate unrealized gains and (losses) of $12,000, $33,000, $(3,000) and $(2,000) during the three and nine months ended September 30, 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 and nine months ended September 30, 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 September 30, 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 September 30, 2015 and December 31, 2014 consist of the following (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Fair value September 30, 2015 Cash and cash equivalents: Cash and money market accounts $ $ — $ — $ Corporate bonds and commercial paper (original maturities within 90 days) — — Total cash and cash equivalents $ $ — $ — $ Investments: Corporate bonds and commercial paper (due within 1 year) $ $ $ ) $ Total investments $ $ $ ) $ Total cash, cash equivalents, and investments $ $ $ ) $ Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2014 Cash and cash equivalents: Cash and money market accounts $ $ — $ — $ Total cash and cash equivalents $ $ — $ — $ Investments: Government-sponsored enterprise securities (due within 1 year) $ $ — $ — $ Corporate bonds and commercial paper (due within 1 year) ) Total investments $ $ $ ) $ Total cash, cash equivalents and investments $ $ $ ) $

Accrued expenses

Accrued expenses	9 Months Ended
	Sep. 30, 2015
Accrued expenses
Accrued expenses	4. Accrued expenses Accrued expenses consist of the following (in thousands): September 30, 2015 December 31, 2014 Contract research organization costs $ $ Compensation and related benefits Professional fees Deferred rent Other $ $

Net loss per share

Net loss per share	9 Months Ended
	Sep. 30, 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 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 and 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 were excluded from the calculation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: Three months ended September 30 Nine months ended September 30 2015 2014 2015 2014 Outstanding stock options Outstanding warrants — — Unvested restricted stock units Unvested restricted stock — —

Stock-based compensation

Stock-based compensation	9 Months Ended
	Sep. 30, 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 Company’s prior 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 employees as inducement for prospective employees 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 options to purchase shares under this program as of September 30, 2015. Restricted common stock A summary of the Company’s restricted common stock activity and related information is as follows: Shares Weighted- average purchase price per share Unvested at December 31, 2014 $ Vested ) Unvested at September 30, 2015 — $ No restricted common stock was granted during the three and nine months ended September 30, 2015 and 2014. The total fair value of shares vested during the three and nine months ended September 30, 2015 and 2014 was an approximate $0, $59,000, $605,000 and $2.2 million, respectively. As of September 30, 2015, there was no unrecognized stock-based compensation expense related to unvested restricted common stock. 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 $ Settled ) Forfeited ) Outstanding at September 30, 2015 $ No RSUs were granted during the three and nine months ended September 30, 2015 and 2014. The approximate total fair value of RSUs vested during the three and nine months ended September 30, 2015 and 2014 was $761,000, $1.7 million, $790,000 and $2.2 million, respectively. As of September 30, 2015, there was approximately $472,000 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 0.3 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 83,565 remain outstanding as of September 30, 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 three and nine months ended September 30, 2015 and 2014, the Company made approximate deposits with the taxing authorities of $164,000, $417,000, $200,000 and $757,000, respectively, in respect of the tax liability for awards that settled during such periods. Stock options A summary of the Company’s stock option activity and related information follows: Shares Weighted- average price per share Weighted- average remaining contractual term (years) Aggregate intrinsic value Outstanding at December 31, 2014 $ Granted Exercised ) Forfeited ) Outstanding at September 30, 2015 $ $ Exercisable at September 30, 2015 $ $ Vested and expected to vest at September 30, 2015 $ $ The fair value of each stock option is estimated on the grant date using the Black-Scholes option-pricing model using the following weighted average assumptions: Nine months ended September 30, 2015 2014 Risk-free interest rate % % Dividend yield — — Volatility % % Expected term (years)

Equity Offerings

Equity Offerings	9 Months Ended
	Sep. 30, 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 $35.0 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 28,800 and 1,189,479 shares in the three and nine months ended September 30, 2015, respectively, for net proceeds of approximately $199,000 and $10.9 million (after deducting commissions and other offering expenses). Of the cumulative net proceeds through September 30, 2015, $9.6 million was received in 2014 and $12.9 million was received in 2015.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events.
Subsequent Events	8. Subsequent Events The Company reviews all activity subsequent to quarter end but prior to issuance of the condensed consolidated financial statements for events that could require disclosure or that could impact the carrying value of assets or liabilities as of the balance sheet date. On October 7, 2015, the Company committed to a restructuring plan that will result in a reduction of approximately 50% of the Company’s workforce at its Needham, Massachusetts location. The restructuring is a result of a strategic realignment of the Company. Employees received notification on October 7, 2015 and will be provided with severance payments and outplacement assistance. The Company expects to complete the restructuring during the first quarter of 2016. As a result of the restructuring plan, the Company estimates one-time severance and related costs of $1.1 million. Approximately $ 950 ,000 is expected to be paid over the fourth quarter of 2015 and the first quarter of 2016, with the remainder to be paid later in 2016.

Summary of significant accoun14

Summary of significant accounting policies (Policies)	9 Months Ended
	Sep. 30, 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 and related disclosures at the date of the financial statements. Actual results could differ from those estimates. Additionally, operating results for the three and nine months ended September 30, 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 Securities and Exchange Commission (“SEC”) on March 10, 2015. 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 instr15

Fair value of financial instruments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2015 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Description Total Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash equivalents $ $ $ $ — Short-term investments — — Total financial assets $ $ $ $ — Financial liabilities Liability classified stock-based compensation awards $ $ $ — $ — Total financial liabilities $ $ $ — $ — The following table presents information about the Company’s financial assets and liabilities 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 in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash equivalents $ $ $ — $ — Short-term investments — — Total financial assets $ $ $ $ — Financial liabilities Liability classified stock-based compensation awards $ $ $ — $ — Total financial liabilities $ $ $ — $ —

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2015
Investments
Schedule of cash, cash equivalents and investments	Cash, cash equivalents and investments at September 30, 2015 and December 31, 2014 consist of the following (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Fair value September 30, 2015 Cash and cash equivalents: Cash and money market accounts $ $ — $ — $ Corporate bonds and commercial paper (original maturities within 90 days) — — Total cash and cash equivalents $ $ — $ — $ Investments: Corporate bonds and commercial paper (due within 1 year) $ $ $ ) $ Total investments $ $ $ ) $ Total cash, cash equivalents, and investments $ $ $ ) $ Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2014 Cash and cash equivalents: Cash and money market accounts $ $ — $ — $ Total cash and cash equivalents $ $ — $ — $ Investments: Government-sponsored enterprise securities (due within 1 year) $ $ — $ — $ Corporate bonds and commercial paper (due within 1 year) ) Total investments $ $ $ ) $ Total cash, cash equivalents and investments $ $ $ ) $

Accrued expenses (Tables)

Accrued expenses (Tables)	9 Months Ended
	Sep. 30, 2015
Accrued expenses
Schedule of accrued expenses	Accrued expenses consist of the following (in thousands): September 30, 2015 December 31, 2014 Contract research organization costs $ $ Compensation and related benefits Professional fees Deferred rent Other $ $

Net loss per share (Tables)

Net loss per share (Tables)	9 Months Ended
	Sep. 30, 2015
Net loss per share
Schedule of potentially anti-dilutive securities excluded from calculation of diluted net loss per share	Three months ended September 30 Nine months ended September 30 2015 2014 2015 2014 Outstanding stock options Outstanding warrants — — Unvested restricted stock units Unvested restricted stock — —

Stock-based compensation (Table

Stock-based compensation (Tables)	9 Months Ended
	Sep. 30, 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 $ Vested ) Unvested at September 30, 2015 — $
Summary of restricted stock units (RSUs) activity and related information	Shares Weighted- average grant date fair value Outstanding at December 31, 2014 $ Settled ) Forfeited ) Outstanding at September 30, 2015 $
Summary of stock option activity and related information	Shares Weighted- average price per share Weighted- average remaining contractual term (years) Aggregate intrinsic value Outstanding at December 31, 2014 $ Granted Exercised ) Forfeited ) Outstanding at September 30, 2015 $ $ Exercisable at September 30, 2015 $ $ Vested and expected to vest at September 30, 2015 $ $
Schedule of assumptions used to estimate fair value of each stock option on grant date	Nine months ended September 30, 2015 2014 Risk-free interest rate % % Dividend yield — — Volatility % % Expected term (years)

Fair value of financial instr20

Fair value of financial instruments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Financial assets
Cash and cash equivalents	$ 19,831,000		$ 19,831,000		$ 33,901,000
Short-term investments	100,636,000		100,636,000		58,774,000
Financial liabilities
Cash used to settle restricted stock liability awards			(417,000)	$ (757,000)
Unvested restricted stock units
Financial liabilities
Cash used to settle restricted stock liability awards	(164,000)	$ (200,000)	(417,000)	$ (757,000)
Total
Financial assets
Cash and cash equivalents	17,900,000		17,900,000		32,140,000
Short-term investments	100,636,000		100,636,000		58,774,000
Total financial assets	118,536,000		118,536,000		90,914,000
Financial liabilities
Liability classified stock-based compensation awards	47,000		47,000		469,000
Total financial liabilities	47,000		47,000		469,000
Quoted prices in active markets (Level 1)
Financial assets
Cash and cash equivalents	6,869,000		6,869,000		32,140,000
Total financial assets	6,869,000		6,869,000		32,140,000
Financial liabilities
Liability classified stock-based compensation awards	47,000		47,000		469,000
Total financial liabilities	47,000		47,000		469,000
Significant other observable inputs (Level 2)
Financial assets
Cash and cash equivalents	11,031,000		11,031,000
Short-term investments	100,636,000		100,636,000		58,774,000
Total financial assets	$ 111,667,000		$ 111,667,000		$ 58,774,000

Investments (Details)

Investments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Investments
Cash and cash equivalents, Amortized cost	$ 19,831,000	$ 20,557,000	$ 19,831,000	$ 20,557,000	$ 33,901,000	$ 18,889,000
Cash and cash equivalents, Fair value	19,831,000		19,831,000		33,901,000
Charges for other-than-temporary declines in fair value of short-term or long-term investments	0	0	0	0
Unrealized gains (losses) on investments	12,000	(3,000)	33,000	(2,000)
Realized gains or losses on investments	0	$ 0	0	$ 0
Investments that had been in an unrealized loss position for a significant period	0		0
Amortized cost
Investments, Amortized Cost	100,592,000		100,592,000		58,763,000
Total cash, cash equivalents, and investments, Amortized Cost	120,423,000		120,423,000		92,664,000
Investments, Gross unrealized gains
Total cash, cash equivalents, and investments, Gross Unrealized Gains	54,000		54,000		18,000
Investments, Gross unrealized losses
Available For Sale Security Accumulated Gross Unrealized Loss Before Tax	(10,000)		(10,000)		(7,000)
Fair value
Investments, Fair Value	100,636,000		100,636,000		58,774,000
Total cash, cash equivalents, and investments, Fair Value	120,467,000		120,467,000		92,675,000
Government-sponsored enterprise securities
Amortized cost
Due within 1 year					3,700,000
Fair value
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value					3,700,000
Corporate bonds and commercial paper
Amortized cost
Due within 1 year	100,592,000		100,592,000		55,063,000
Investments, Gross unrealized gains
Due within 1 year	54,000		54,000		18,000
Investments, Gross unrealized losses
Due within 1 year	(10,000)		(10,000)		(7,000)
Fair value
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value	100,636,000		100,636,000		55,074,000
Cash and cash equivalents
Investments
Cash and cash equivalents, Amortized cost	8,800,000		8,800,000		33,901,000
Cash and cash equivalents, Fair value	8,800,000		8,800,000		$ 33,901,000
Corporate bonds and commercial paper
Investments
Cash and cash equivalents, Amortized cost	11,031,000		11,031,000
Cash and cash equivalents, Fair value	$ 11,031,000		$ 11,031,000

Accrued expenses (Details)

Accrued expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accrued expenses
Contract research organization costs	$ 4,521	$ 3,049
Compensation and related benefits	2,105	1,990
Professional fees	325	233
Deferred rent	156	144
Other	64	103
Accrued expenses	$ 7,171	$ 5,519

Net loss per share (Details)

Net loss per share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Outstanding stock options
Net loss per share
Potentially anti-dilutive securities excluded from calculation of diluted net loss per share (in shares)	5,275,490	4,224,858	5,275,490	4,224,858
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
Unvested restricted stock units
Net loss per share
Potentially anti-dilutive securities excluded from calculation of diluted net loss per share (in shares)	101,151	314,694	101,151	314,694
Unvested restricted stock
Net loss per share
Potentially anti-dilutive securities excluded from calculation of diluted net loss per share (in shares)		15,992		15,992

Stock-based compensation (Detai

Stock-based compensation (Details) - USD ($)	Jan. 01, 2015	Jan. 01, 2014	Feb. 29, 2012	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Mar. 31, 2013
Additional disclosures
Cash used to settle restricted stock liability awards						$ 417,000	$ 757,000
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
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	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)						0.280
Unvested at the end of the period (in dollars per share)				$ 0		$ 0
Additional disclosures
Total unrecognized stock-based compensation expense (in dollars)				$ 0		$ 0
Fair value of shares vested				$ 0	$ 605,000	$ 59,000	$ 2,200,000
Unvested restricted stock units
Shares
Unvested at the beginning of the period (in shares)	293,747					293,747
Vested (in shares)						(157,953)
Forfeited (in shares)						(34,643)
Unvested at the end of the period (in shares)				101,151		101,151
Awards granted (in shares)				0	0	0	0
Modified restricted stock units authorized									697,060
Modified restricted stock units outstanding				83,565		83,565
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)						10.74
Forfeited (in dollars per share)						9.72
Unvested at the end of the period (in dollars per share)				$ 10.51		$ 10.51
Additional disclosures
Fair value of shares vested				$ 761,000	$ 790,000	$ 1,700,000	$ 2,200,000
Cash used to settle restricted stock liability awards				164,000	$ 200,000	417,000	$ 757,000
Unvested restricted stock units | 2012 Plan
Additional disclosures
Total unrecognized stock-based compensation expense (in dollars)				$ 472,000		$ 472,000
Weighted average period over which total unrecognized stock based compensation expense is expected to be recognized						3 months 18 days

Stock-based compensation (Det25

Stock-based compensation (Details 2) - Outstanding stock options - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Shares
Outstanding at the beginning of the period (in shares)	4,206,440
Granted (in shares)	1,426,444
Exercised (in shares)	(33,638)
Forfeited (in shares)	(323,756)
Outstanding at the end of the period (in shares)	5,275,490
Exercisable at the end of the period (in shares)	2,793,883
Vested and expected to vest at end of period (in shares)	5,027,877
Weighted-average exercise price per share
Outstanding at the beginning of the period (in dollars per share)	$ 10.38
Granted (in dollars per share)	8.68
Exercised (in dollars per share)	0.38
Forfeited (in dollars per share)	9.82
Outstanding at the end of the period (in dollars per share)	10.02
Exercisable at the end of the period (in dollars per share)	9.84
Vested and expected to vest at end of the period (in dollars per share)	$ 10.02
Weighted-average remaining contractual term
Outstanding at the end of the period	8 years 1 month 6 days
Exercisable at the end of the period	7 years 6 months
Vested and expected to vest at the end of the period	8 years 1 month 6 days
Aggregate intrinsic value
Outstanding at the end of the period (in dollars)	$ 166,799
Exercisable at the end of the period (in dollars)	166,799
Vested and expected to vest at end of the period (in dollars)	$ 166,799
Assumptions used to estimate fair value of each stock-based award on the grant date
Risk-free interest rate (as a percent)	1.60%	2.00%
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	9 Months Ended	12 Months Ended
	Jan. 31, 2015	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Number of shares of common stock issued in initial public offering			28,800	1,189,479	1,346,676
Issuance of common stock		$ 35,000,000		$ 63,938,000
Net proceeds from issuance of common stock in public offering			$ 199,000	10,900,000	$ 11,600,000
Cash proceeds from the issuance of stock				$ 12,900,000	$ 9,600,000
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	$ 50,900,000

Subsequent events (Details)

Subsequent events (Details) - Employee Severance - USD ($)	Oct. 07, 2015	Mar. 31, 2016
Scenario, Forecast
Subsequent events
Estimated one- time severance and related costs	$ 1,100,000
Severance and related costs		$ 950,000
Subsequent events
Subsequent events
Reduction of Workforce	50.00%