Kindred Biosciences (KIN) 10-Q 13 Aug 14 2014 Q2 Quarterly report Financial data

DEI_Document

DEI Document	6 Months Ended
	Jun. 30, 2014	Aug. 05, 2014
Entity [Abstract]	'	'
Entity Registrant Name	'Kindred Biosciences, Inc.	'
Entity Central Index Key	'0001561743	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Non-accelerated Filer	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	19,711,149

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current Assets	'	'
Cash and cash equivalents	$9,338	$65,329
Short-term investments	103,100	0
Prepaid expenses and other	532	148
Total current assets	112,970	65,477
Property and equipment, net	109	12
Total assets	113,079	65,489
Current Liabilities	'	'
Accounts payable	1,711	689
Accrued liabilities	1,684	1,521
Total liabilities	3,395	2,210
Commitments and contingencies (Note 6)	'	'
Stockholders Equity	'	'
Common stock, $0.0001 par value; 100,000,000 shares authorized; 19,710,732 and 16,214,620 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	2	2
Additional paid-in capital	128,307	67,610
Accumulated other comprehensive loss	-14	0
Accumulated deficit	-18,611	-4,333
Total stockholders' equity	109,684	63,279
Total liabilities and stockholders' equity	$113,079	$65,489

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Common Stock, Par or Stated Value Per Share	$0.00	$0.00
Preferred Stock, Shares Authorized	100,000,000	100,000,000
Shares, Issued	19,710,732	16,214,620
Shares, Outstanding	19,710,732	16,214,620

Condensed_Statements_of_Operat

Condensed Statements of Operations and Comprehensive Loss (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Operating Expenses [Abstract]	'	'	'	'
Research and development	$5,639	$300	$10,137	$441
General and administrative	2,499	96	4,178	179
Total operating expenses	8,138	396	14,315	620
Loss from operations	-8,138	-396	-14,315	-620
Interest income	28	0	37	0
Net loss	-8,110	-396	-14,278	-620
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Portion Attributable to Parent	-14	0	-14	0
Comprehensive loss	($8,124)	($396)	($14,292)	($620)
Net loss per common share, basic and diluted, in dollars per share	($0.42)	($0.13)	($0.80)	($0.21)
Weighted-average common shares outstanding, basic and diluted (shares)	19,426	3,000	17,833	3,000

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (USD $)	3 Months Ended	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2013
Cash Flows from Operating Activities	'	'	'
Net loss	($8,110)	($14,278)	($620)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'	'
Stock-based compensation expense	'	2,253	98
Depreciation expense	'	13	0
Changes in operating assets and liabilities:	'	'	'
Prepaid expenses and other	'	-373	-33
Accounts payable	'	1,022	29
Due to related party	'	0	23
Accrued liabilities	'	460	143
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	'	-10,903	-360
Net cash used in operating activities	'	-10,903	-360
Cash Flows from Investing Activities	'	'	'
Purchase of short-term investments	'	-106,125	0
Proceeds from maturities of short-term investments	'	3,000	0
Purchase of property and equipment	'	-110	-1
Net cash used in investing activities	-103,235	-103,235	-1
Cash Flows from Financing Activities	'	'	'
Exercise of stock options	'	82	0
Net proceeds from issuance of Series A-1 convertible preferred stock	'	0	2,535
Net proceeds from sale of common stock in public offering	'	58,065	0
Net cash provided by financing activities	58,147	58,147	2,535
Net increase (decrease) in cash and cash equivalents	'	-55,991	2,174
Cash and cash equivalents at beginning of period	'	65,329	938
Cash and cash equivalents at end of period	9,338	9,338	3,112
Series AA Convertible Preferred Stock	'	'	'
Supplemental disclosure of non-cash financing activities:	'	'	'
Offering costs in connection with Series AA convertible preferred stock recorded in accrued expenses	0	'	2
Common Stock	'	'	'
Supplemental disclosure of non-cash financing activities:	'	'	'
Issuance of common stock and stock options for accrued consulting expenses	$303	'	$11

Description_of_Business_Basis_

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies	'
	Description of Business, Basis of Presentation and Summary of Significant Accounting Policies
	Kindred Biosciences, Inc. ("we", "us" or "our") was incorporated on September 25, 2012 (inception) in the State of Delaware. We are a biopharmaceutical company focused on saving and improving the lives of pets. Our activities since inception have consisted principally of raising capital, establishing facilities, recruiting management and technical staff and performing research and development and advancing our product candidates seeking regulatory approval. Our headquarters are in Burlingame, California.
	We are subject to risks common to companies in the biotechnology and pharmaceutical industries. There can be no assurance that our research and development will be successfully completed, that adequate patent or other intellectual property protection for our technology will be obtained, that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. We operate in an environment of substantial competition from other animal health companies. In addition, we are dependent upon the services of our employees and consultants, as well as third-party contract research organizations and manufacturers.
	The accompanying unaudited interim condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2013 included in our annual report on Form 10-K as filed with the SEC on March 14, 2014, as amended. In the opinion of management, all adjustments, consisting of a normal and recurring nature, considered necessary for a fair presentation, have been included in these unaudited interim condensed financial statements.
	Liquidity
	We have incurred losses and negative cash flows from operations and have not generated any revenue since our inception. We expect to continue to incur losses and negative cash flows, which will increase significantly from historical levels as we expand our product development activities, seek regulatory approvals for our product candidates, establish a biologics manufacturing capability, and begin to commercialize any approved products. To date, we have been funded primarily through sales of our former convertible preferred stock, the sale of our common stock in our initial public offering in December 2013 and the sale of our common stock in our April 8, 2014, public offering. We believe that our cash, cash equivalents and short-term investments totaling $112,438,000 as of June 30, 2014, are sufficient to fund our planned operations for at least the next 24 months.
	If we require additional funding for operations, we may seek such funding through public or private equity or debt financings or other sources, such as corporate collaborations and licensing arrangements. We may not be able to obtain financing on acceptable terms, or at all, and we may not be able to enter into corporate collaborations or licensing arrangements. The terms of any financing may result in dilution or otherwise adversely affect the holding or the rights of our stockholders.
	Use of Estimates
	The preparation of financial statements and related disclosures in conformity with U.S. 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 financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed financial statements include, but are not limited to, the valuation of stock-based awards, the realization of deferred tax assets and the accrual of research and development expenses. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from those estimates.
	Comprehensive Loss
	Our comprehensive loss includes the change in unrealized gains or losses on available-for-sale securities. The cumulative amount of gains or losses are reflected as a separate component of stockholders' equity in the condensed balance sheets as accumulated other comprehensive loss.
	Recently Issued Accounting Pronouncements
	On June 10, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-10, Development Stage Entities (Topic 915) - Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, which eliminates the concept of a development stage entity (DSE) in its entirety from current accounting guidance. A DSE is an entity devoting substantially all of its efforts to establishing a new business and for which either planned principal operations have not yet commenced or have commenced but there has been no significant revenues generated from that business. Under current guidance, DSEs are required to present inception-to-date financial information in their annual statements. We determined we were a DSE and had therefore presented inception-to-date financial information financial statements. As permitted by ASU 2014-10, we have elected to early adopt this standard, and therefore, we have not presented any inception to date financial information and we have removed all references to development stage in these condensed financial statements.
	We do not believe there are any other recently issued standards not yet effective that will have a material impact on our financial statements when the standards become effective.

Fair_Value_Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2014
Fair Value Disclosures [Abstract]	'
Fair Value Measurements	'
	Fair Value Measurements
	Certain assets and liabilities are carried at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) 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. A fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last is considered unobservable, is used to measure fair value:
	Level 1: Quoted prices in active markets for identical assets or liabilities.
	Level 2: Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.
	Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.
	The carrying amount of financial instruments, including cash and cash equivalents, accounts payable and accrued liabilities approximate fair value due to the short maturities of these financial instruments.
	Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis and are summarized as follows (in thousands):
		Fair Value Measurements as of June 30, 2014
	Description	Total		Quoted Prices in		Significant Other		Unobservable Inputs
				Active Markets (Level 1)		Observable Inputs		(Level 3)
						(Level 2)
	Cash equivalents:
	Money market funds	$	8,827	$	8,827	$	—	$	—
	Short-term investments:
	U.S. Treasury bills	25,993		—		25,993		—
	U.S. government agency notes	3,000		—		3,000		—
	U.S. treasury bonds and notes	74,107		—		74,107		—
		$	111,927	$	8,827	$	103,100	$	—
		Fair Value Measurements as of December 31, 2013
	Description	Total		Quoted Prices in		Significant Other		Unobservable Inputs
				Active Markets (Level 1)		Observable Inputs		(Level 3)
						(Level 2)
	Cash equivalents:
	Money market funds	$	65,310	$	65,310	$	—	$	—
		$	65,310	$	65,310	$	—	$	—
	There were no transfers of assets between Level 1, Level 2 or Level 3 of the fair value hierarchy at June 30, 2014, or December 31, 2013.
	At June 30, 2014 and December 31, 2013, we did not have any financial liabilities which were measured at fair value on a recurring basis.

ShortTerm_Investments

Short-Term Investments	6 Months Ended
	Jun. 30, 2014
Investments, Debt and Equity Securities [Abstract]	'
Short-Term Investments	'
	Short-Term Investments
	We classify all highly-liquid investments with stated maturities of greater than three months from the date of purchase and remaining maturities of less than one year as short-term investments. Investments with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such investments are viewed as being available to support current operations. We classify and account for short-term investments as available-for-sale and reflect realized gains and losses using the specific identification method. Changes in market value if any, excluding other-than-temporary impairments, are reflected in other comprehensive income (loss).
	The fair value of available-for-sale short-term investments by type of security at June 30, 2014 were as follows (in thousands):
		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	U.S. treasury bills	$	25,989	$	4	$	—		$	25,993
	U.S. government agency notes	2,999		1		—			3,000
	U.S. treasury bonds and notes	74,126		—		(19		)	74,107
		$	103,114	$	5	$	(19	)	$	103,100
	At June 30, 2014, short-term investments with maturities beyond one year consisted of U.S. treasury bonds with carrying values of $8,008,000 and $8,020,000 that mature on August 15, 2015 and August 31, 2015, respectively. These investments are classified as current assets since they are viewed as available to support current operations. We held no short-term investments at December 31, 2013.

Accrued_Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2014
Payables and Accruals [Abstract]	'
Accrued Liabilities	'
	Accrued Liabilities
	Accrued liabilities consisted of the following (in thousands):
		30-Jun-14		31-Dec-13
	Payroll and related expenses	$	664	$	635
	Consulting expenses	6		304
	Research and development costs	730		159
	Offering costs	—		381
	Other expenses	284		42
		$	1,684	$	1,521

StockBased_Awards_and_Common_S

Stock-Based Awards and Common Stock	6 Months Ended
	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Stock-Based Awards and Common Stock	'
	Stock-Based Awards and Common Stock
	The table below shows the number of shares of common stock underlying options granted to employees and directors, the assumptions used in the Black-Scholes option pricing model used to value those options and the resulting weighted-average grant date fair value per share:
		Three months ended June 30,			Six months ended June 30,
		2014		2013	2014		2013
	Shares underlying options granted	182,500		—	914,000		540,000
	Weighted-average exercise price	$19.65		n/a	$16.68		$0.35
	Risk- free interest rate	1.9%-2.0%		n/a	1.4%-2.0.%		0.6%-0.9%
	Expected term (years)	6.1		n/a	5.3 - 6.1		5
	Expected volatility	90%		n/a	90%		90%
	Expected dividend yield	—		n/a	—		—
	Weighted-average grant date fair value per share	$14.71		n/a	$12.33		$0.22
	The table below shows the number of shares of common stock underlying options granted to consultants, the assumptions used in the Black-Scholes option pricing model used to value those options and the resulting weighted-average grant date fair value per share:
		Three months ended June 30,			Six months ended June 30,
		2014		2013	2014		2013
	Shares underlying options granted	250		154,793	32,963		191,318
	Weighted-average exercise price	$15.38		$0.32	$15.41		$0.32
	Risk- free interest rate	2.70%		0.7%-0.8%	2.6%-2.7%		0.6%-0.8%
	Expected term (years)	10		10	10		10
	Expected volatility	90%		90%	90%		90%
	Expected dividend yield	—		—	—		—
	Weighted-average grant date fair value per share	$13.31		$0.27	$13.32		$0.27
	We recorded stock-based compensation expense as follows (in thousands):
		Three months ended June 30,						Six months ended June 30,
		2014			2013			2014		2013
	Research and development	$	361		$	48		$	689	$	81
	General and administrative	815			11			1,564		17
		$	1,176		$	59		$	2,253	$	98
	We had an aggregate of approximately $10,376,000 of unrecognized stock-based compensation expense for options outstanding as of June 30, 2014 which is expected to be recognized over a weighted-average period of 3.3 years.
	During the six months ended June 30, 2014, we issued 43,612 shares of common stock with an intrinsic value of $678,000 upon exercise of stock options, for proceeds of $82,000. During the six months ended June 30, 2014, we issued 2,500 shares upon release of restricted stock awards.
	On April 8, 2014, we completed a public offering of 3,450,000 shares of common stock at a price of $18.00 per share, for net proceeds of $58,065,000, after deducting underwriting discounts, commissions and offering expenses.

Commitments_and_Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	Commitments and Contingencies
	In March 2014, we entered into a license agreement under which we made an up-front payment and are obligated to make annual payments and, subject to certain terms and conditions, milestone payments upon achievement of development milestones and a royalty based on sales of products developed under the agreement.
	In April 2014, we entered into new noncancelable operating leases for laboratory space and office space. As of June 30, 2014 we are obligated to make minimum lease payments under noncancelable operating leases as follows (in thousands):
	Year ending December 31,	Lease Payments
	2014 (remainder of year)	$	59
	2015	247
	2016	255
	2017	209
	Total	$	770

Net_Loss_Per_Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Net Loss Per Share	'
	Net Loss Per Share
	Basic and diluted net loss per share was calculated as follows (in thousands, except per share amounts):
		Three months ended June 30,						Six months ended June 30,
		2014			2013			2014			2013
	Basic and diluted net loss per share:
	Numerator:
	Net loss	$	(8,110	)	$	(396	)	$	(14,278	)	$	(620	)
	Denominator:
	Weighted-average common shares outstanding, basic and diluted	19,426			3,000			17,833			3,000
	Net loss per common share, basic and diluted	$	(0.42	)	$	(0.13	)	$	(0.80	)	$	(0.21	)
	There was no difference between the Company’s net loss and the net loss attributable to common stockholders for all periods presented.
	Stock options and unvested restricted stock awards to purchase 2,287,590 shares of common stock as of June 30, 2014, were excluded from the computation of diluted net loss per share attributable to common stockholders for the three and six months ended June 30, 2014, because their effect was anti-dilutive.
	Stock options to purchase 731,318 shares of common stock and 1,819,581 shares of common stock issuable upon the conversion of preferred stock as of June 30, 2013, were excluded from the computation of diluted net loss per share for the three and six months ended June 30, 2013, because their effect was anti-dilutive.

Description_of_Business_Basis_1

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Liquidity Disclosure	'
	Liquidity
	We have incurred losses and negative cash flows from operations and have not generated any revenue since our inception. We expect to continue to incur losses and negative cash flows, which will increase significantly from historical levels as we expand our product development activities, seek regulatory approvals for our product candidates, establish a biologics manufacturing capability, and begin to commercialize any approved products. To date, we have been funded primarily through sales of our former convertible preferred stock, the sale of our common stock in our initial public offering in December 2013 and the sale of our common stock in our April 8, 2014, public offering. We believe that our cash, cash equivalents and short-term investments totaling $112,438,000 as of June 30, 2014, are sufficient to fund our planned operations for at least the next 24 months.
	If we require additional funding for operations, we may seek such funding through public or private equity or debt financings or other sources, such as corporate collaborations and licensing arrangements. We may not be able to obtain financing on acceptable terms, or at all, and we may not be able to enter into corporate collaborations or licensing arrangements. The terms of any financing may result in dilution or otherwise adversely affect the holding or the rights of our stockholders.
Use of Estimates, Policy	'
	Use of Estimates
	The preparation of financial statements and related disclosures in conformity with U.S. 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 financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed financial statements include, but are not limited to, the valuation of stock-based awards, the realization of deferred tax assets and the accrual of research and development expenses. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from those estimates.
Comprehensive Income, Policy	'
	Comprehensive Loss
	Our comprehensive loss includes the change in unrealized gains or losses on available-for-sale securities. The cumulative amount of gains or losses are reflected as a separate component of stockholders' equity in the condensed balance sheets as accumulated other comprehensive loss.
New Accounting Pronouncements, Policy	'
	Recently Issued Accounting Pronouncements
	On June 10, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-10, Development Stage Entities (Topic 915) - Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, which eliminates the concept of a development stage entity (DSE) in its entirety from current accounting guidance. A DSE is an entity devoting substantially all of its efforts to establishing a new business and for which either planned principal operations have not yet commenced or have commenced but there has been no significant revenues generated from that business. Under current guidance, DSEs are required to present inception-to-date financial information in their annual statements. We determined we were a DSE and had therefore presented inception-to-date financial information financial statements. As permitted by ASU 2014-10, we have elected to early adopt this standard, and therefore, we have not presented any inception to date financial information and we have removed all references to development stage in these condensed financial statements.

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2014
Fair Value Disclosures [Abstract]	'
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	'
	Financial assets, which consist of money market funds and available-for-sale securities, are measured at fair value on a recurring basis and are summarized as follows (in thousands):
		Fair Value Measurements as of June 30, 2014
	Description	Total		Quoted Prices in		Significant Other		Unobservable Inputs
				Active Markets (Level 1)		Observable Inputs		(Level 3)
						(Level 2)
	Cash equivalents:
	Money market funds	$	8,827	$	8,827	$	—	$	—
	Short-term investments:
	U.S. Treasury bills	25,993		—		25,993		—
	U.S. government agency notes	3,000		—		3,000		—
	U.S. treasury bonds and notes	74,107		—		74,107		—
		$	111,927	$	8,827	$	103,100	$	—
		Fair Value Measurements as of December 31, 2013
	Description	Total		Quoted Prices in		Significant Other		Unobservable Inputs
				Active Markets (Level 1)		Observable Inputs		(Level 3)
						(Level 2)
	Cash equivalents:
	Money market funds	$	65,310	$	65,310	$	—	$	—
		$	65,310	$	65,310	$	—	$	—

ShortTerm_Investments_Tables

Short-Term Investments (Tables)	6 Months Ended
	Jun. 30, 2014
Investments, Debt and Equity Securities [Abstract]	'
Fair Value to Amortized Cost Basis Reconciliation	'
	The fair value of available-for-sale short-term investments by type of security at June 30, 2014 were as follows (in thousands):
		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	U.S. treasury bills	$	25,989	$	4	$	—		$	25,993
	U.S. government agency notes	2,999		1		—			3,000
	U.S. treasury bonds and notes	74,126		—		(19		)	74,107
		$	103,114	$	5	$	(19	)	$	103,100

Accrued_Liabilities_Tables

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2014
Payables and Accruals [Abstract]	'
Schedule of Accounts Payable and Accrued Liabilities	'
	Accrued liabilities consisted of the following (in thousands):
		30-Jun-14		31-Dec-13
	Payroll and related expenses	$	664	$	635
	Consulting expenses	6		304
	Research and development costs	730		159
	Offering costs	—		381
	Other expenses	284		42
		$	1,684	$	1,521

StockBased_Awards_and_Common_S1

Stock-Based Awards and Common Stock (Tables)	6 Months Ended
	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Schedule of Share-based Compensation Information	'
	The table below shows the number of shares of common stock underlying options granted to employees and directors, the assumptions used in the Black-Scholes option pricing model used to value those options and the resulting weighted-average grant date fair value per share:
		Three months ended June 30,			Six months ended June 30,
		2014		2013	2014		2013
	Shares underlying options granted	182,500		—	914,000		540,000
	Weighted-average exercise price	$19.65		n/a	$16.68		$0.35
	Risk- free interest rate	1.9%-2.0%		n/a	1.4%-2.0.%		0.6%-0.9%
	Expected term (years)	6.1		n/a	5.3 - 6.1		5
	Expected volatility	90%		n/a	90%		90%
	Expected dividend yield	—		n/a	—		—
	Weighted-average grant date fair value per share	$14.71		n/a	$12.33		$0.22
	The table below shows the number of shares of common stock underlying options granted to consultants, the assumptions used in the Black-Scholes option pricing model used to value those options and the resulting weighted-average grant date fair value per share:
		Three months ended June 30,			Six months ended June 30,
		2014		2013	2014		2013
	Shares underlying options granted	250		154,793	32,963		191,318
	Weighted-average exercise price	$15.38		$0.32	$15.41		$0.32
	Risk- free interest rate	2.70%		0.7%-0.8%	2.6%-2.7%		0.6%-0.8%
	Expected term (years)	10		10	10		10
	Expected volatility	90%		90%	90%		90%
	Expected dividend yield	—		—	—		—
	Weighted-average grant date fair value per share	$13.31		$0.27	$13.32		$0.27
Schedule of Allocated Share-based Compensation Expense	'
	We recorded stock-based compensation expense as follows (in thousands):
		Three months ended June 30,						Six months ended June 30,
		2014			2013			2014		2013
	Research and development	$	361		$	48		$	689	$	81
	General and administrative	815			11			1,564		17
		$	1,176		$	59		$	2,253	$	98

Commitments_and_Contingencies_

Commitments and Contingencies Details (Tables)	6 Months Ended
	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Schedule of Future Minimum Lease Payments for Capital Leases	'
	In April 2014, we entered into new noncancelable operating leases for laboratory space and office space. As of June 30, 2014 we are obligated to make minimum lease payments under noncancelable operating leases as follows (in thousands):
	Year ending December 31,	Lease Payments
	2014 (remainder of year)	$	59
	2015	247
	2016	255
	2017	209
	Total	$	770

Net_Loss_Per_Share_Tables

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2014
Earnings Per Share [Abstract]	'
Basic and Diluted Earnings Per Share Reconciliation	'
	Basic and diluted net loss per share was calculated as follows (in thousands, except per share amounts):
		Three months ended June 30,						Six months ended June 30,
		2014			2013			2014			2013
	Basic and diluted net loss per share:
	Numerator:
	Net loss	$	(8,110	)	$	(396	)	$	(14,278	)	$	(620	)
	Denominator:
	Weighted-average common shares outstanding, basic and diluted	19,426			3,000			17,833			3,000
	Net loss per common share, basic and diluted	$	(0.42	)	$	(0.13	)	$	(0.80	)	$	(0.21	)

Description_of_Business_Basis_2

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies Accounting policies (Details) (USD $)	Jun. 30, 2014
In Thousands, unless otherwise specified
Accounting Policies [Abstract]	'
Cash, Cash Equivalents, and Short-term Investments	$112,438

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (Recurring basis, USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Total	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash equivalents, fair value measurements as of June 30, 2014	'	$65,310
Financial assets, fair value measurements as of June 30, 2014	111,927	'
Quoted Prices in Active Markets (Level 1)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash equivalents, fair value measurements as of June 30, 2014	'	65,310
Financial assets, fair value measurements as of June 30, 2014	8,827	'
Significant Observable Inputs (Level 2)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash equivalents, fair value measurements as of June 30, 2014	'	0
Financial assets, fair value measurements as of June 30, 2014	103,100	'
Unobservable Inputs (Level 3)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash equivalents, fair value measurements as of June 30, 2014	'	0
Financial assets, fair value measurements as of June 30, 2014	0	'
U.S. Treasury bills | Total	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Short-term investments, fair value measurements as of June 30, 2014	25,993	'
U.S. Treasury bills | Quoted Prices in Active Markets (Level 1)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Short-term investments, fair value measurements as of June 30, 2014	0	'
U.S. Treasury bills | Significant Observable Inputs (Level 2)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Short-term investments, fair value measurements as of June 30, 2014	25,993	'
U.S. Treasury bills | Unobservable Inputs (Level 3)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Short-term investments, fair value measurements as of June 30, 2014	0	'
U.S. government agency notes | Total	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Short-term investments, fair value measurements as of June 30, 2014	3,000	'
U.S. government agency notes | Quoted Prices in Active Markets (Level 1)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Short-term investments, fair value measurements as of June 30, 2014	0	'
U.S. government agency notes | Significant Observable Inputs (Level 2)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Short-term investments, fair value measurements as of June 30, 2014	3,000	'
U.S. government agency notes | Unobservable Inputs (Level 3)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Short-term investments, fair value measurements as of June 30, 2014	0	'
U.S. treasury bonds and notes | Total	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Short-term investments, fair value measurements as of June 30, 2014	74,107	'
U.S. treasury bonds and notes | Quoted Prices in Active Markets (Level 1)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Short-term investments, fair value measurements as of June 30, 2014	0	'
U.S. treasury bonds and notes | Significant Observable Inputs (Level 2)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Short-term investments, fair value measurements as of June 30, 2014	74,107	'
U.S. treasury bonds and notes | Unobservable Inputs (Level 3)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Short-term investments, fair value measurements as of June 30, 2014	0	'
Money Market Funds | Total	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash equivalents, fair value measurements as of June 30, 2014	8,827	65,310
Money Market Funds | Quoted Prices in Active Markets (Level 1)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash equivalents, fair value measurements as of June 30, 2014	8,827	65,310
Money Market Funds | Significant Observable Inputs (Level 2)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash equivalents, fair value measurements as of June 30, 2014	0	0
Money Market Funds | Unobservable Inputs (Level 3)	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash equivalents, fair value measurements as of June 30, 2014	$0	$0

ShortTerm_Investments_Details

Short-Term Investments (Details) (USD $)	Jun. 30, 2014
In Thousands, unless otherwise specified
Gain (Loss) on Investments [Line Items]	'
Amortized Cost	$103,114
Gross Unrealized Gains	5
Gross Unrealized Losses	-19
Fair value	103,100
US Government Bonds | Fixed Income Investment, Maturing August 15, 2015	'
Gain (Loss) on Investments [Line Items]	'
U.S government bonds, Carrying value	8,008
US Government Bonds | Fixed Income Investment, Maturing August 31, 2015	'
Gain (Loss) on Investments [Line Items]	'
U.S government bonds, Carrying value	8,020
U.S. treasury bills	'
Gain (Loss) on Investments [Line Items]	'
Amortized Cost	25,989
Gross Unrealized Gains	4
Gross Unrealized Losses	0
Fair value	25,993
U.S. government agency notes	'
Gain (Loss) on Investments [Line Items]	'
Amortized Cost	2,999
Gross Unrealized Gains	1
Gross Unrealized Losses	0
Fair value	3,000
U.S. treasury bonds and notes	'
Gain (Loss) on Investments [Line Items]	'
Amortized Cost	74,126
Gross Unrealized Gains	0
Gross Unrealized Losses	-19
Fair value	$74,107

Accrued_Liabilities_Details

Accrued Liabilities (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Payables and Accruals [Abstract]	'	'
Payroll and related expenses	$664	$635
Consulting expenses	6	304
Research and development costs	730	159
Offering costs	0	381
Other expenses	284	42
Accrued liabilities	$1,684	$1,521

StockBased_Awards_and_Common_S2

Stock-Based Awards and Common Stock (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Employees and Directors	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Shares underlying options granted	182,500	0	914,000	540,000
Weighted-average exercise price, in dollars per share	$19.65	'	$16.68	$0.35
Expected volatility	90.00%	'	90.00%	90.00%
Expected dividend yield	0.00%	'	0.00%	0.00%
Weighted-average grant date fair value per share, in dollars per share	$14.71	'	$12.33	$0.22
Employees and Directors | Minimum	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Risk Free Interest Rate	1.90%	'	1.40%	0.60%
Expected term (years)	'6 years 1 month 6 days	'	'5 years 3 months 18 days	'5 years
Employees and Directors | Maximum	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Risk Free Interest Rate	2.00%	'	2.00%	0.90%
Expected term (years)	'6 years 1 month 6 days	'	'6 years 1 month 6 days	'5 years
Consultants	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Shares underlying options granted	250	154,793	32,963	191,318
Weighted-average exercise price, in dollars per share	$15.38	0.32	$15.41	$0.32
Expected volatility	90.00%	90.00%	90.00%	90.00%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Weighted-average grant date fair value per share, in dollars per share	$13.31	0.27	$13.32	$0.27
Consultants | Minimum	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Risk Free Interest Rate	2.70%	0.70%	2.60%	0.60%
Expected term (years)	'10 years	'10 years	'10 years	'10 years
Consultants | Maximum	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Risk Free Interest Rate	2.70%	0.80%	2.70%	0.80%
Expected term (years)	'10 years	'10 years	'10 years	'10 years

StockBased_Awards_and_Common_S3

Stock-Based Awards and Common Stock (Details 2) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Allocated Share-based Compensation Expense	$1,176	$59	$2,253	$98
Research and Development Expense	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Allocated Share-based Compensation Expense	361	48	689	81
General and Administrative Expense	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Allocated Share-based Compensation Expense	$815	$11	$1,564	$17

StockBased_Awards_and_Common_S4

Stock-Based Awards and Common Stock Narrative (Details) (USD $)	0 Months Ended	6 Months Ended		0 Months Ended
In Thousands, except Share data, unless otherwise specified	Apr. 08, 2014	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2014
				Stock Option	Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'
Unrecognized stock-based compensation	'	'	'	'	$10,376
Weighted- average period for recognition	'	'	'	'3 years 3 months 18 days	'
Shares issued under option exercises	'	43,612	'	'	'
Option exercises in period, intrinsic value	'	678	'	'	'
Proceeds from Stock Options Exercised	'	82	0	'	'
Stock Issued upon release of restricted stock awards	'	2,500	'	'	'
Public offering stock issued	3,450,000	'	'	'	'
Share Price	$18	'	'	'	'
Proceeds from public offering	$58,065	$58,065	$0	'	'

Commitments_and_Contingencies_1

Commitments and Contingencies Details 1 (Details) (USD $)	Jun. 30, 2014
In Thousands, unless otherwise specified
Commitments and Contingencies Disclosure [Abstract]	'
2014 (remainder of year)	$59
2015	247
2016	255
2017	209
Total	$770

Net_Loss_Per_Share_Details

Net Loss Per Share (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Numerator [Abstract]	'	'	'	'
Net loss	($8,110)	($396)	($14,278)	($620)
Denominator [Abstract]	'	'	'	'
Weighted-average common shares outstanding, basic and diluted (shares)	19,426,000	3,000,000	17,833,000	3,000,000
Net loss per common share, basic and diluted, in dollars per share	($0.42)	($0.13)	($0.80)	($0.21)
Stock Options and Unvested Restricted Stock Awards	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive securities excluded from EPS computation	2,287,590	'	2,287,590	'
Stock Options	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive securities excluded from EPS computation	'	731,318	'	731,318
Convertible Preferred Stock	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive securities excluded from EPS computation	'	1,819,581	'	1,819,581