Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 05, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'SPHS | ' |
Entity Registrant Name | 'SOPHIRIS BIO INC. | ' |
Entity Central Index Key | '0001563855 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 16,149,871 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $54,739 | $9,721 |
Other receivables | 30 | 71 |
Deferred financing costs | ' | 937 |
Prepaid expenses | 3,212 | 593 |
Total current assets | 57,981 | 11,322 |
Property and equipment, net | 102 | 163 |
Other long-term assets | 19 | 44 |
Total assets | 58,102 | 11,529 |
Current liabilities: | ' | ' |
Accounts payable | 1,600 | 1,774 |
Accrued expenses | 1,233 | 2,839 |
Current portion of promissory notes | 6,724 | 5,895 |
Total current liabilities | 9,557 | 10,508 |
Long-term promissory notes, less current portion | 1,693 | 6,126 |
Warrant liability | 1,376 | ' |
Total liabilities | 12,626 | 16,634 |
Commitments and contingencies (Note 14) | ' | ' |
Stockholders' equity (deficit): | ' | ' |
Common stock, unlimited authorized shares, no par value; 16,149,871 and 3,149,871 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 111,218 | 54,215 |
Common share purchase warrants | ' | 6,045 |
Contributed surplus | 13,567 | 8,379 |
Accumulated other comprehensive (loss) gain | 99 | -46 |
Deficit accumulated during development stage | -79,408 | -73,698 |
Total stockholders' equity (deficit) | 45,476 | -5,105 |
Total liabilities and stockholders' equity (deficit) | $58,102 | $11,529 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, shares authorized | 'unlimited | 'unlimited |
Common stock, par value | ' | ' |
Common stock, shares issued | 16,149,871 | 3,149,871 |
Common stock, shares outstanding | 16,149,871 | 3,149,871 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | 141 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' | ' |
License revenue | ' | ' | $5,000 | ' | $8,000 |
Operating expenses: | ' | ' | ' | ' | ' |
Research and development | 2,117 | 3,411 | 6,143 | 10,193 | 55,788 |
General and administrative | 883 | 1,980 | 3,009 | 4,342 | 27,487 |
Total operating expenses | 3,000 | 5,391 | 9,152 | 14,535 | 83,275 |
Other income (expense): | ' | ' | ' | ' | ' |
Interest income (expense), net | -313 | -445 | -1,064 | -1,450 | -2,977 |
Other income (expense), net | 361 | 206 | 5 | 122 | -341 |
Total other income (expense) | 48 | -239 | -1,059 | -1,328 | -3,318 |
Net loss before income taxes | -2,952 | -5,630 | -5,211 | -15,863 | -78,593 |
Income tax expense | ' | ' | -500 | ' | -815 |
Net loss | -2,952 | -5,630 | -5,711 | -15,863 | -79,408 |
Basic and diluted loss per share | ($0.31) | ($1.79) | ($1.08) | ($5.25) | ' |
Weighted average number of outstanding shares - basic and diluted | 9,509 | 3,150 | 5,293 | 3,021 | ' |
Other comprehensive income (loss) Currency translation adjustment | -154 | 211 | 146 | 108 | 99 |
Total comprehensive loss | ($3,106) | ($5,419) | ($5,565) | ($15,755) | ($79,309) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | 141 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Cash flows used in operating activities | ' | ' | ' |
Net loss for the period | ($5,711) | ($15,863) | ($79,408) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' | ' |
Stock-based compensation | 715 | 488 | 5,052 |
Accretion of debt discount | 299 | 391 | 1,029 |
Depreciation of property and equipment | 63 | 61 | 586 |
Amortization of intangible assets | ' | 149 | 1,205 |
Amortization of promissory note issuance costs | 86 | 119 | 310 |
Impairment loss | ' | 176 | 176 |
Change in fair value warrant liability | -195 | ' | -195 |
Foreign exchange (gain) loss | 216 | -109 | -1,453 |
Loss on disposal of assets | ' | ' | 25 |
Other | ' | ' | 182 |
Changes in operating assets and liabilities: | ' | ' | ' |
Other receivables | 36 | 142 | 21 |
Prepaid expenses | -2,680 | 81 | -3,483 |
Deferred financing costs | ' | ' | -936 |
Other long-term assets | 6 | -15 | -38 |
Accounts payable and accrued expenses | -1,657 | -637 | 2,675 |
Net cash used in operating activities | -8,822 | -15,017 | -74,252 |
Cash flows used in investing activities | ' | ' | ' |
Purchases of property and equipment | -3 | -26 | -725 |
Proceeds from the disposal of property and equipment | ' | ' | 11 |
Acquisition of intangible assets | ' | ' | -1,372 |
Maturity of marketable securities | ' | ' | 1,112 |
Purchases of marketable securities | ' | ' | -1,112 |
Net cash flows used in investing activities | -3 | -26 | -2,086 |
Cash flows from financing activities | ' | ' | ' |
Issuance of common shares from private placement, net of issuance cost | ' | 8,285 | 50,179 |
Issuance of common shares from public offering, net of issuance cost | 57,816 | ' | 60,844 |
Issuance of preferred shares, net of issuance cost | ' | ' | 465 |
Cash acquired on reverse acquisition | ' | ' | 818 |
Issuance of common shares on exercise of warrants | ' | ' | 8,702 |
Issuance of common shares on exercise of stock options | ' | ' | 514 |
Cash received from the issuance of promissory notes | ' | ' | 15,000 |
Principal payments on notes payable | -3,903 | -1,801 | -7,092 |
Increase in lease obligations | ' | ' | 120 |
Capital lease payments | ' | ' | -120 |
Deferred financing costs | ' | ' | ' |
Other | ' | ' | 4 |
Net cash provided by financing activities | 53,913 | 6,484 | 129,433 |
Effect of exchange rate changes on cash and cash equivalents | -70 | 375 | 1,644 |
Net increase (decrease) in cash and cash equivalents | 45,018 | -8,184 | 54,739 |
Cash and cash equivalents at beginning of period | 9,721 | 23,410 | ' |
Cash and cash equivalents at end of period | $54,739 | $15,226 | $54,739 |
Nature_of_the_business_liquidi
Nature of the business, liquidity risk and going concern | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Nature of the business, liquidity risk and going concern | ' |
1. Nature of the business, liquidity risk and going concern | |
Company | |
Sophiris Bio Inc. (the “Company” or “Sophiris”) is a clinical-stage biopharmaceutical development stage company. The Company is currently developing PRX302 for treatment of the symptoms of benign prostatic hyperplasia (“BPH” or enlarged prostate). The Company is incorporated under the Company Act of British Columbia. The Company began operations on January 11, 2002. The Company’s operations were initially located in Vancouver, British Columbia. In April 2011, the Company relocated its core activities and headquarters from Vancouver, British Columbia to San Diego, California. Effective April 2, 2012, the Company changed its name from Protox Therapeutics Inc. to Sophiris Bio Inc. | |
Since its inception, the Company has devoted substantially all of its efforts to research and development, recruiting management and technical staff, acquiring assets and raising capital. In addition, the Company has not begun to commercialize or generate revenues from any product candidate. Accordingly, the Company is considered to be in the development stage, as defined in Accounting Standards Codification (“ASC”) 915-10. | |
The condensed consolidated financial statements include the accounts of Sophiris Bio Inc. and its wholly-owned subsidiaries, Sophiris Bio Corp. and Sophiris Bio Holding Corp., both of which are incorporated in the state of Delaware. | |
Share Consolidation | |
On August 9, 2013, the Company’s board of directors approved a 52-for-1 share consolidation of the Company’s issued and outstanding common shares. Accordingly, all share and per share amounts for all periods presented in these financial statements and notes thereto have been adjusted retroactively to reflect the share consolidation. The Company’s stock option plan and outstanding warrants provide for a pro-rata adjustment to the number of shares issuable upon the exercise of outstanding stock options and warrants in the event of a share consolidation. The effects of the share consolidation have been given retroactive effect to the related disclosures of outstanding stock options and warrants. |
Summary_of_significant_account
Summary of significant accounting policies | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Summary of significant accounting policies | ' | |||
2. Summary of significant accounting policies | ||||
Significant accounting policies followed by the Company in the preparation of its consolidated financial statements are as follows: | ||||
Basis of consolidation | ||||
The consolidated financial statements include the accounts of the Company, Sophiris Bio Corp. and Sophiris Bio Holding Corp. All intercompany balances and transactions have been eliminated for purposes of consolidation. | ||||
Basis of presentation and use of estimates | ||||
The accompanying condensed consolidated interim financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”) related to quarterly reports on Form 10-Q. Accordingly, they do not include all of the information and disclosures required by GAAP for annual audited financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Amendment No. 8 to the Company’s Form S-1 for the year ended December 31, 2012, filed with the SEC on August 15, 2013 (“Form S-1”). The condensed consolidated balance sheet as of December 31, 2012 included in this report has been derived from the audited consolidated financial statements included in the Form S-1. In the opinion of management, these condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for any future period, including the full year. | ||||
GAAP requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. The Company bases estimates and judgments on historical experience and on various other factors that it believes to be reasonable under the circumstances. The significant estimates in these condensed consolidated interim financial statements include revenue recognition, stock-based compensation expense, functional currency, and accrued research and development expenses, including accruals related to the Company’s ongoing clinical trial. The Company’s actual results may differ from these estimates under different assumptions or conditions. The Company evaluates its estimates on an ongoing basis. Changes in estimates are reflected in reported results in the period in which they become known by the Company’s management. | ||||
Foreign currency | ||||
Functional currency | ||||
Historically, the functional currency of Sophiris Bio Inc. has been the Canadian dollar and the functional currency of Sophiris Bio Corp. and Sophiris Bio Holding Corp. has been the U.S. dollar. Subsequent to the completion of the Company’s initial public offering on the NASDAQ Global Market the Company reviewed the underlying indicators of the primary economic environment in which Sophiris Bio Inc. operates. Based upon this review, the Company determined that the functional currency of Sophiris Bio Inc. changed from the Canadian dollar to the U.S. dollar effective August 16, 2013, the date of the Company’s U.S. initial public offering. | ||||
Reclassification of Warrants | ||||
Historically, the Company issued common stock warrants in connection with the issuance of common stock through private placements with exercise prices denominated in Canadian dollars. Upon the issuance of these warrants, the Company allocated the net proceeds to common stock and warrants based on their relative fair values, and calculated the fair value of the issued common stock warrants utilizing the Black-Scholes option-pricing model. The allocated fair value was then recorded as Common Share Purchase Warrants within stockholders’ equity on the consolidated balance sheet. The fair value was not remeasured in periods subsequent to the date of issuance. | ||||
The change in the functional currency of Sophiris Bio Inc. to the U.S. dollar effective August 16, 2013 effects how the Company accounts for its warrants which have exercise prices denominated in Canadian dollars, a currency that is not the Company’s functional currency. Upon the change in functional currency, the Company calculated the fair value of its warrants with exercise prices in Canadian dollars as $1.6 million utilizing the Black Scholes pricing model and classified this fair value as a long term liability in accordance with Accounting Standards Codification, or ASC, 815, “Derivatives and Hedging”. The fair value of $1.6 million was deducted from the original fair value calculated on the issuance date of the warrants. The issuance date fair value in excess of the $1.6 million was reclassified to Contributed Surplus. At each reporting period subsequent to August 16, 2013, the Company will adjust the fair value of the warrant liability and any corresponding increase or decrease to the warrant liability will be recorded as a component of other income (expense) on the consolidated statement of operations and comprehensive loss. The estimated fair value is determined using the Black-Scholes option-pricing model based on the estimated value of the underlying common stock at the valuation measurement date, the remaining contractual term of the warrants, risk-free interest rates, expected dividends and expected volatility of the price of the underlying common stock. The fair value of the warrant liability was $1.4 million at September 30, 2013 and the Company recorded a gain of $0.2 million for the three and nine months ended September 30, 2013 which is included in other income (expense) in the consolidated statement of operations and comprehensive loss. | ||||
Reporting currency | ||||
Prior to the change in the functional currency of Sophiris Bio Inc., as discussed above, the consolidated financial statements had been presented in a currency other than the parent’s functional currency as management had determined that the U.S. dollar was the common currency in which the Company’s peers, being international drug and pharmaceutical companies, present their financial statements. For presentation purposes, the assets and liabilities of the Company were translated to U.S. dollars at exchange rates at the reporting date. The historical equity transactions had been translated using historical rates in effect on the date that each transaction occurred. The income and expenses were translated to U.S. dollars at the average exchange rate for the period in which the transaction arose. Exchange differences arising were recognized in a separate component of equity titled accumulated other comprehensive income (loss). | ||||
Transactions and balances | ||||
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the remeasurement of monetary assets and liabilities denominated in currencies other than an entities’ functional currency are recognized as a component of other income (expense), net. | ||||
Cash and cash equivalents | ||||
Cash equivalents are short-term, highly liquid investments with an original maturity of three months or less at the date of purchase. | ||||
Concentration of credit risk | ||||
Financial instruments that subject the Company to credit risk consist primarily of cash and cash equivalents. The Company places its cash and cash equivalents in accredited financial institutions and therefore the Company’s management believes these funds are subject to minimal credit risk. The Company has no significant off-balance sheet concentrations of credit risk such as foreign currency exchange contracts, option contracts or other hedging arrangements. | ||||
Property and equipment | ||||
Property and equipment are recorded at cost and depreciated using the straight-line method, based on their estimated useful lives as follows: | ||||
Asset classification | Estimated useful life (in years) | |||
Equipment | 5-Mar | |||
Computer hardware | 3 | |||
Software | 5-Mar | |||
Leasehold improvements | Lesser of useful life or lease term | |||
Furniture and fixtures | 5 | |||
Repairs and maintenance costs are expensed as incurred. | ||||
The Company reviews its long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flow to the recorded value of the asset. If impairment is indicated, the asset will be written down to its estimated fair value on a discounted cash flow basis. The Company has not recognized any impairment losses through September 30, 2013. | ||||
Promissory notes | ||||
Promissory notes are recognized initially at fair value. Promissory notes are subsequently carried at amortized cost; any difference between the proceeds and the redemption value is recognized in the statement of operations and comprehensive loss over the period of the notes payable using the effective interest method. | ||||
The fair value of the promissory notes when issued with equity is recognized initially at the fair value of similar promissory notes issued on a standalone basis. The equity that is issued with borrowings is valued at fair value using the Black-Scholes valuation model. | ||||
Revenue recognition | ||||
The Company may enter into product development agreements with collaborative partners for the research and development of products for the treatment of urological diseases. The terms of the agreements may include nonrefundable signing and licensing fees, milestone payments and royalties on any product sales derived from collaborations. These multiple element arrangements are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. License fees are recognized as revenue when persuasive evidence of an arrangement exists, the fee is fixed or determinable, delivery or performance has substantially completed and collection is reasonably assured. | ||||
The Company recognizes up front license payments as revenue upon delivery of the license only if the license has stand-alone value to the customer and if the agreement includes a general right of return, the delivery or performance of undelivered items is considered probable and within the control of the Company. The payment is generally allocated to the separate units of accounting based on their relative selling prices. The selling price of each deliverable is determined using vendor specific objective evidence of selling prices, if it exists; otherwise, third-party evidence of selling prices. If neither vendor specific objective evidence or third-party evidence exists, the Company uses its’ best estimate of the selling price for each deliverable. The payment allocated is limited to the amount that is not contingent on the delivery of additional items or fulfillment of other performance conditions. | ||||
Whenever the Company determines that an arrangement should be accounted for as a single unit of accounting, it must determine the period over which the performance obligations will be performed and revenue will be recognized. If the Company cannot reasonably estimate the timing and the level of effort to complete its performance obligations under the arrangement, then revenue under the arrangement is recognized on a straight-line basis over the period the Company is expected to complete its performance obligations. | ||||
The Company evaluates milestone payments on an individual basis and recognizes revenue from non-refundable milestone payments when the earnings process is complete and the payment is reasonably assured. Non-refundable milestone payments related to arrangements under which the Company has continuing performance obligations are recognized as revenue upon achievement of the associated milestone, provided that (i) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement and (ii) the amount of the milestone payment is reasonable in relation to the effort expended or the risk associated with the milestone event. Any amounts received under agreements in advance of performance, if deemed substantive, are recorded as deferred revenue and recognized as revenue as the Company completes its performance obligations. A milestone event is considered substantive if (i) the milestone is commensurate with either (a) the Company’s performance to achieve the milestone or (b) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the Company’s performance to achieve the milestone; (ii) it relates solely to past performance and (iii) it is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. If any portion of the milestone payment does not relate to the Company’s performance, does not relate solely to past performance or is refundable or adjustable based on future performance, the milestone is not considered to be substantive. Milestone payments are not bifurcated into substantive and non-substantive components. Payments related to the achievement of non-substantive milestones is deferred and recognized over the Company’s remaining performance period. | ||||
Royalty revenue will be recognized upon the sale of the related products provided the Company has no remaining performance obligations under the arrangement. | ||||
Research and development expenses | ||||
Research and development expenses are charged to expense as incurred. Research and development expenses comprise costs incurred in performing research and development activities, including personnel-related costs, stock-based compensation, facilities, research-related overhead, clinical trial costs, contracted services, manufacturing, license fees and other external costs. The Company accounts for nonrefundable advance payments for goods and services that will be used in future research and development activities as expenses when the service has been performed or when the goods have been consumed rather than when the payment is made. | ||||
Accrued research and development expenses | ||||
Clinical trial costs are recorded as a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon estimates of the percentage of work completed over the life of the individual study in accordance with agreements established with clinical research organizations and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services based on facts and circumstances known to the Company as of each balance sheet date. However, actual costs and timing of clinical trials are highly uncertain, subject to risks and may change depending upon a number of factors, including the Company’s clinical development plan. The process of estimating clinical trial costs may become more complex as the Company’s planned Phase 3 clinical trials will involve larger numbers of patients and clinical sites. | ||||
If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Adjustments to prior period estimates have not been material for the three and nine months ended September 30, 2013. | ||||
Examples of estimated accrued research and development expenses include: | ||||
• | fees paid to clinical research organizations in connection with clinical studies; | |||
• | fees paid to investigative sites in connection with clinical studies; | |||
• | fees paid to vendors in connection with preclinical development activities; | |||
• | fees paid to vendors associated with the development of companion diagnostics; and | |||
• | fees paid to vendors related to product manufacturing, development and distribution of clinical supplies. | |||
Nonrefundable advance payments for goods and services that will be used or rendered in future research and development activities, are recorded as a prepaid expense and recognized as expense in the period that the related goods are consumed or services are performed. | ||||
Stock-based compensation | ||||
The Company expenses the fair value of employee stock options over the vesting period. Compensation expense is measured using the fair value of the award at the grant date, net of estimated forfeitures, and is adjusted annually to reflect actual forfeitures. The fair value of each stock-based award is estimated using the Black-Scholes valuation model and is expensed using graded amortization over the vesting period. | ||||
Compensation expense for performance-based awards is estimated using the Black-Scholes valuation model and is expensed using the accelerated method. Compensation expense for performance-based awards reflects the estimated probability that the performance condition will be met. | ||||
The Company accounts for stock options granted to non-employees, which primarily consist of members of the Company’s scientific advisory board and consultants, using the fair value approach. Stock options granted to non-employees are subject to revaluation each reporting period over their vesting terms. | ||||
Income taxes | ||||
The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates in effect for the year in which these temporary differences are expected to be recovered or settled. Valuation allowances are provided if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | ||||
The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. Reserves are based on a determination of whether and how much of a tax benefit taken by the Company in its tax filing is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. Potential interest and penalties associated with such uncertain tax positions are recorded as components of income tax expense. To date, the Company has not taken any uncertain tax positions or recorded any reserves, interest or penalties. | ||||
Segment reporting | ||||
Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, or CODM. The Company’s Chief Executive Officer serves as its CODM. The Company views its operations and manages its business as one segment operating primarily in the United States. As of September 30, 2013, all of the Company’s assets were located in the United States of America with the exception of $0.6 million of cash and cash equivalents and $42 thousand of other assets which were located in Canada. All of the Company’s property and equipment was located within the United States as of September 30, 2013. | ||||
Fair value of financial instruments | ||||
The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid for 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. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, and accounts payable and accrued expenses, approximate fair value due to their short maturities. | ||||
The Company follows ASC 820-10, “Fair Value Measurements and Disclosures,” which among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: | ||||
Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | ||||
Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | ||||
Level 3 – Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. | ||||
Recent accounting pronouncements | ||||
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU No. 2013-11”), which concludes that, under most circumstances, an unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU No. 2013-11 will be effective for the Company beginning January 1, 2014. The Company does not anticipate that the adoption of this standard will have a material impact on the Company’s financial position or results of operations. |
Net_loss_per_common_share
Net loss per common share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net loss per common share | ' | ||||||||||||||||
3. Net loss per common share | |||||||||||||||||
Basic net loss per share is calculated by dividing the net loss attributable to common shareholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, stock options and warrants are considered to be common share equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. | |||||||||||||||||
The following table presents the computation of basic and diluted net loss per share (in thousands, except per share amounts): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net loss per share: | |||||||||||||||||
Net loss | $ | (2,952 | ) | $ | (5,630 | ) | $ | (5,711 | ) | $ | (15,863 | ) | |||||
Weighted-average common shares – basic and diluted | 9,509 | 3,150 | 5,293 | 3,021 | |||||||||||||
Net loss per share – basic and diluted per share | $ | (0.31 | ) | $ | (1.79 | ) | $ | (1.08 | ) | $ | (5.25 | ) | |||||
The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding as of the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2013 and 2012 as the Company recorded a net loss in all periods and, therefore, they would be anti-dilutive (in thousands): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Options to purchase common shares | 270 | 160 | 290 | 169 | |||||||||||||
Common share purchase warrants | 919 | 919 | 919 | 842 |
Fair_value_measurement_and_fin
Fair value measurement and financial instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair value measurement and financial instruments | ' | ||||||||||||||||
4. Fair value measurement and financial instruments | |||||||||||||||||
The following tables present information about the Company’s warrant liability which is measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value (in thousands): | |||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Liabilities: | |||||||||||||||||
Warrant liability | $ | 1,376 | $ | — | $ | — | $ | 1,376 | |||||||||
The Company did not have any assets or liabilities at December 31, 2012 which were measured at fair value on a recurring basis. | |||||||||||||||||
The Company calculates the fair value of the common stock warrants at each reporting date utilizing a Black-Scholes pricing model. The following inputs were utilized in the Black-Scholes pricing model at the initial recognition date of the warrant liability, the date of the Company’s U.S. IPO, and September 30, 2013. | |||||||||||||||||
Initial | September 30, 2013 | ||||||||||||||||
Recognition | |||||||||||||||||
Risk-free interest rate | 0.72 | % | 0.59 | % | |||||||||||||
Volatility | 111.86 | % | 113.21 | % | |||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Expected life in years | 2.89 | 2.77 | |||||||||||||||
There were no transfers of assets or liabilities between the fair value measurement classifications. | |||||||||||||||||
The following table presents a reconciliation of the warrant liability measured at fair value using significant unobservable inputs (Level 3) from its initial recognition date to September 30, 2013 (in thousands): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
Sep-13 | Sep-13 | ||||||||||||||||
Liabilities: | |||||||||||||||||
Balance at beginning of period: | $ | — | $ | — | |||||||||||||
Calculation of initial warrant liability fair value | 1,571 | 1,571 | |||||||||||||||
Change in fair value of warrant liability included in other (expense)/income | (195 | ) | (195 | ) | |||||||||||||
Balance at end of period: | $ | 1,376 | $ | 1,376 | |||||||||||||
Intangible_assets
Intangible assets | 9 Months Ended |
Sep. 30, 2013 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
Intangible assets | ' |
5. Intangible assets | |
The Company held intangible assets that consist of patents and technology rights relating to the HUMxin and INxin platforms. | |
In 2012 the Company decided to focus its future development efforts solely on PRX302 for the treatment of BPH and has provided written notice to U.S. Public Health Services (“PHS”) of the Company’s intention to terminate its license agreements with PHS which were being utilized to develop the Company’s HUMxin and INxin technology platforms. Due to the change in the development focus and the termination of the license agreements the Company determined there is no longer any economic value of the intangible assets associated with the HUMxin and INxin platforms. Accordingly, included in research and development expense for the three and nine month ended September 30, 2012 is a $0.2 million write-off associated with the impairment of these intangible assets. | |
Amortization expense for the Company’s intangible assets was $50 thousand and $0.1 million for the three and nine months ended September 30, 2012, respectively. |
Prepaid_expenses
Prepaid expenses | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Prepaid expenses | ' | ||||||||
6. Prepaid expenses | |||||||||
Prepaid expenses as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Prepaid insurance | $ | 400 | $ | 90 | |||||
Prepaid research and development expenses | 2,686 | 326 | |||||||
Other prepaid expenses | 126 | 177 | |||||||
$ | 3,212 | $ | 593 | ||||||
Property_and_equipment
Property and equipment | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and equipment | ' | ||||||||
7. Property and equipment | |||||||||
Property and equipment consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Equipment | $ | 7 | $ | 7 | |||||
Computer hardware and software | 44 | 42 | |||||||
Leasehold improvements | 155 | 155 | |||||||
Furniture and fixtures | 76 | 76 | |||||||
282 | 280 | ||||||||
Less: accumulated depreciation | (180 | ) | (117 | ) | |||||
$ | 102 | $ | 163 | ||||||
Depreciation expense was $21 thousand for both the three months ended September 30, 2013 and September 30, 2012. Depreciation expense was $63 thousand and $61 thousand for the nine months ended September 30, 2013 and 2012, respectively. |
Accrued_expenses
Accrued expenses | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued expenses | ' | ||||||||
8. Accrued expenses | |||||||||
Accrued expenses as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued personnel related costs | $ | 204 | $ | 753 | |||||
Accrued interest | 63 | 93 | |||||||
Accrued research and development expenses | 599 | 1,066 | |||||||
Other accrued expenses | 367 | 927 | |||||||
$ | 1,233 | $ | 2,839 | ||||||
Promissory_notes
Promissory notes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Promissory notes | ' | ||||||||||||||||
9. Promissory notes | |||||||||||||||||
On July 15, 2011, the Company entered into a $15 million Loan and Security Agreement, as amended (the “Oxford Loan”) with Oxford Finance LLC (“Oxford”). Under the terms of the Oxford Loan, the Company made interest only payments for nine months at a fixed rate of 9.5%. Beginning in June 2012, the note began to amortize with principal and interest payments due through the remaining term of the loan. On July 31, 2013, the Company and Oxford entered into a second amendment to the Oxford Loan which authorized the Company to make an interest only payment on August 1, 2013 on the outstanding balance. The Company resumed making principal and interest payments on September 1, 2013 in accordance with the terms of the second amendment. The maturity date and the interest rate remain unchanged. In addition, no principal was extinguished in connection with the second amendment. The loan term, including interest only period, is 39 months; however, it can be prepaid subject to certain provisions and prepayment fees. Upon final repayment of the Oxford Loan on the maturity date, by prepayment, or upon acceleration of the Oxford Loan, the Company also must make an additional final payment of $0.8 million, which is being accreted over the term of the loan. | |||||||||||||||||
If the loan is prepaid, the following amounts are due: all outstanding principal plus all accrued interest and unpaid interest, the final payment of $0.8 million, a prepayment fee and any other sums due under the Oxford Loan, including certain of Oxford’s expenses, as well as interest at the default rate for any past due amounts. The prepayment fee is set at one percent of the outstanding principal being prepaid if the loan is prepaid after July 2013. | |||||||||||||||||
The Company’s Oxford Loan contains certain affirmative and negative covenants. The Company was in compliance with the covenants included in the Oxford Loan at September 30, 2013. | |||||||||||||||||
To secure the Company’s repayment obligations under the Oxford Loan, Oxford obtained a first priority security interest in all of the Company’s assets, including intellectual property and all of the Company’s equity interest in Sophiris Bio Corp. | |||||||||||||||||
The roll forward of the secured promissory note is calculated as follows (in thousands): | |||||||||||||||||
Balance at December 31, 2012 | $ | 12,021 | |||||||||||||||
Accretion of debt discount | 299 | ||||||||||||||||
Principal paid | (3,903 | ) | |||||||||||||||
Balance at September 30, 2013 | $ | 8,417 | |||||||||||||||
The Oxford loan has an interest rate of 9.50% per annum. The following table shows actual interest expensed and amortization of the debt discount that was charged to interest expense (in thousands): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Simple interest | $ | 196 | $ | 324 | $ | 678 | $ | 1,033 | |||||||||
Accretion of debt discount | 91 | 127 | 299 | 391 | |||||||||||||
Amortization of promissory notes issuance costs | 25 | 39 | 86 | 119 | |||||||||||||
$ | 312 | $ | 490 | $ | 1,063 | $ | 1,543 | ||||||||||
The following is a schedule of future maturities of the Company’s debt as of September 30, 2013, including the final payment of $0.8 million due upon repayment of the loan (in thousands): | |||||||||||||||||
Payments | |||||||||||||||||
2013 | $ | 1,797 | |||||||||||||||
2014 | 7,345 | ||||||||||||||||
$ | 9,142 | ||||||||||||||||
The Company calculated the fair value of the secured promissory notes as $7.5 million (Level 3) as of September 30, 2013. The fair value of long-term debt is based on the net present value of calculated interest and principal payments, using an updated interest rate of 11%, provided by the Company’s lender, which takes into consideration the financial position of the Company, the assessed credit rating of the Company by the lender and the interest rate environment at September 30, 2013. As part of this fair value assessment the Company also confirmed with its lender an appropriate warrant coverage of 6% associated with the promissory notes. The fair value of this equity component was derived using the Black-Scholes valuation model. The Company calculated the promissory notes’ fair value by allocating to equity and the debt based on their respective fair values. |
Shareholders_equity
Shareholders' equity | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Equity [Abstract] | ' | ||||||||
Shareholders' equity | ' | ||||||||
10. Shareholders’ equity | |||||||||
Authorized | |||||||||
As of September 30, 2013 and December 31, 2012, the Company had unlimited shares of no par common shares authorized. There were 16.1 million and 3.1 million common shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively. | |||||||||
Initial Public Offering | |||||||||
On August 23, 2013, the Company completed a U.S. public offering whereby the Company issued 13,000,000 common shares at a price of U.S. $5.00 per share. The Company received $57.0 million, net of underwriters discounts commissions and offering cost. | |||||||||
Shares reserved for future issuance | |||||||||
The shares reserved for future issuance as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Common share purchase warrants | 919 | 919 | |||||||
Stock options | |||||||||
Granted and outstanding | 254 | 241 | |||||||
Reserved for future issuance | 1,361 | 74 | |||||||
2,534 | 1,234 | ||||||||
Common_share_purchase_warrants
Common share purchase warrants | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Equity [Abstract] | ' | ||||||||
Common share purchase warrants | ' | ||||||||
11. Common share purchase warrants | |||||||||
The common share purchase warrant activity is as follows (in thousands, except exercise price data): | |||||||||
Number | Weighted | ||||||||
outstanding | average | ||||||||
exercise price | |||||||||
CND$ | |||||||||
Balance outstanding – December 31, 2012 | 919 | $ | 27.07 | ||||||
No changes | — | — | |||||||
Balance outstanding – September 30, 2013 | 919 | $ | 27.07 | ||||||
The following table summarizes the expiration dates for the Company’s outstanding common share purchase warrants as of September 30, 2013 (in thousands): | |||||||||
Number of | Expiration date | ||||||||
warrants | |||||||||
outstanding | |||||||||
289 | November 19, 2015 | ||||||||
123 | March 16, 2015 | ||||||||
27 | July 15, 2018 | ||||||||
240 | December 28, 2016 | ||||||||
240 | March 28, 2017 | ||||||||
919 | |||||||||
Stockbased_compensation_plan
Stock-based compensation plan | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Stock-based compensation plan | ' | ||||||||||||||||
12. Stock-based compensation plan | |||||||||||||||||
The Company’s Amended and Restated 2011 Stock Option Plan (the “Plan”) provides for the granting of options for the purchase of common shares of the Company at the fair market value of the Company’s common shares on the date of the option grant. Options are granted to employees, directors and non-employees. The board of directors or a committee appointed by the board of directors administers the Plan and has discretion as to the number, vesting period and expiry date of each option award. Historically the Company granted options to residents of the United States with an exercise price denominated in Canadian dollars, the functional currency of Sophiris Bio Inc. prior to the Company’s U.S. initial public offering. Following the Company’s U.S. initial public offering the Company will grant options to residents of the United States with an exercise price denominated in U.S. dollars. All options are classified as equity as of September 30, 2013. | |||||||||||||||||
The Plan is based on a cumulative percentage of options issuable up to 10% of the Company’s outstanding common shares. As of September 30, 2013 and December 31, 2012, there were 1,360,979 and 74,000 shares, respectively, available to be issued under the Plan. | |||||||||||||||||
During the nine months ended September 30, 2013, the Company issued options to purchase 42,862 common shares, respectively, to its directors and employees. These options generally vest over a three year period for employees and over a one year period for directors. The maximum contractual period for the granted options is five years. | |||||||||||||||||
No options to purchase common shares were granted to non-employees during the year ended December 31, 2012. During the nine months ended September 30, 2013 the Company issued options to purchase 28,346 common shares to non-employees. In connection with options granted to non-employees, the Company recognized expense of $40 thousand and $0.1 million for the three months and nine ended September 30, 2013, respectively. The Company accounts for stock options granted to non-employees using the fair value approach. Stock options granted to non-employees are subject to revaluation at each reporting period over their vesting terms. | |||||||||||||||||
The Company recognized stock-based compensation expense as follows (in thousands): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Research and development | $ | 28 | $ | 29 | $ | 152 | $ | 120 | |||||||||
General and administrative | 162 | 115 | 563 | 368 | |||||||||||||
$ | 190 | $ | 144 | $ | 715 | $ | 488 | ||||||||||
As of September 30, 2013 and December 31, 2012, there was $0.6 million and $0.8 million, respectively, of total unrecognized compensation costs related to non-vested stock awards. As of September 30, 2013 and December 31, 2012, the Company expects to recognize those costs over weighted average periods of approximately 1.4 years and 1.5 years, respectively. | |||||||||||||||||
The Company did not grant any stock options during the three months ended September 30, 2013 nor the three months ended September 30, 2012. The fair values of options granted during the nine months ended September 30, 2013 and 2012 were estimated at the date of grant using the following weighted-average assumptions: | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected Life of the Option Term (years) | 4.2 | 4 | |||||||||||||||
Risk-free interest rate | 1.38 | % | 1.44 | % | |||||||||||||
Dividend rate | 0 | % | 0 | % | |||||||||||||
Volatility | 69.1 | % | 75.5 | % | |||||||||||||
Forfeiture rate | 8.79 | % | 7.81 | % | |||||||||||||
Expected Life of the Option Term – This is the period of time that the options granted are expected to remain unexercised. Options granted have a maximum contractual term of five years. The Company estimates the expected life of the option term based on actual past behavior for similar options. | |||||||||||||||||
Risk-Free Interest Rate – This is the Canadian Treasury rate for the week of each option grant during the quarter having a term that most closely resembles the expected life of the option. | |||||||||||||||||
Dividend Rate – The Company has never declared or paid dividends on common shares and has no plans to do so in the foreseeable future. | |||||||||||||||||
Volatility – Volatility is a measure of the amount by which a financial variable such as a share price has fluctuated or is expected to fluctuate during a period. The Company considered the historical volatility from its IPO through the dates of grants. | |||||||||||||||||
Forfeiture Rate – Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company assesses the forfeiture rate on an annual basis and revises the rate when deemed necessary. | |||||||||||||||||
The following table summarizes stock option activity, including options issued to employees, directors and non-employees (in thousands, except per share and contractual term data): | |||||||||||||||||
Options | Weighted | Weighted average | Aggregate | ||||||||||||||
outstanding | average | remaining | intrinsic | ||||||||||||||
exercise | contractual term | value | |||||||||||||||
price in | (in years) | ||||||||||||||||
CND$ | |||||||||||||||||
Outstanding at December 31, 2012 | 241 | $ | 23.92 | 3.5 | $ | — | |||||||||||
Options granted | 71 | 13 | |||||||||||||||
Options expired | (13 | ) | 41.02 | ||||||||||||||
Options forfeited | (45 | ) | 28 | ||||||||||||||
Outstanding at September 30, 2013 | 254 | $ | 19.26 | 3.6 | $ | — | |||||||||||
Vested or expected to vest at September 30, 2013 | 237 | $ | 19.55 | 3.5 | $ | — | |||||||||||
Exercisable at September 30, 2013 | 99 | $ | 24.75 | 2.9 | $ | — | |||||||||||
The aggregate intrinsic value was calculated as the difference between the exercise price of the stock options and the fair value of the underlying common shares as of the respective balance sheet date. No stock options were exercised during the nine months ended September 30, 2013. | |||||||||||||||||
The Company settles employee stock option exercises with newly issued common shares. |
License_agreements
License agreements | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||
License agreements | ' | ||||||||
13. License agreements | |||||||||
Kissei Agreement | |||||||||
In April 2010, the Company entered into an exclusive license agreement for the development and commercialization of PRX302 (and other products covered by the licensed patent). The agreement with Kissei Pharmaceuticals Co., Ltd., a Japanese pharmaceutical company, (“Kissei”) covers the development and commercialization of PRX302 in Japan for the treatment of the symptoms of BPH, prostate cancer, prostatitis or other diseases of the prostate. Pursuant to the agreement in 2010, the Company received an upfront license payment of $3.0 million. The Company has determined that the deliverables under this agreement included the license, the transfer of relevant technical information and participation in a periodic development meeting. The Company recognized the entire upfront license payment upon receipt as the license was deemed to have stand-alone value and no significant undelivered performance obligations were identified in connection with the license. | |||||||||
The agreement also notes that the Company shall supply Kissei with bulk material under a separate supply agreement for use in future clinical studies and, if approved, for commercial sales. The license agreement also notes that if the Company is unwilling or unable to supply Kissei with the necessary bulk material that Kissei will have the option to manufacture the bulk material themselves or they can outsource the manufacturing to a third party. To date the Company and Kissei have not signed a supply agreement. | |||||||||
The agreement also provides that the Company shall have full responsibility, including financial responsibility, for filing, prosecuting and maintaining all of the patents in Japan during the term of the agreement. The filing of patents is an administrative and perfunctory deliverable. The associated costs are immaterial. The prosecution and maintenance of patents is not considered an undelivered performance obligation. | |||||||||
During the nine months ended September 30, 2013, the Company recorded as revenue a $5.0 million non-refundable substantive milestone payment due from Kissei upon the achievement of certain development activities during the nine months ended September 30, 2013, as such milestone had been achieved during this period. In accordance with the Company’s revenue recognition policy, the Company recognizes the receipt of milestone payments in accordance with the milestone method in the period in which the underlying triggering event occurs. The Company received payment for the milestone in April 2013. | |||||||||
In addition to the upfront license payment and the $5.0 million milestone payment recognized as revenue during the nine months ended September 30, 2013, the Company is entitled to receive up to $67.0 million of non-refundable milestone payments as follows: a total of $12.0 million for the BPH indication, of which $7.0 million relates to the completion of regulatory approvals and $5.0 million relates to the achievement of certain product sale goals; a total of $21.0 million for the prostate cancer indication, of which $7.0 million relates to the completion of certain development activities, $7.0 million relates to the completion of regulatory approvals and $7.0 million relates to the achievement of certain product sale goals; and a total of $21.0 million for prostatitis or other diseases of the prostate, of which $7.0 million relates to the completion of certain development activities, $7.0 million relates to the completion of regulatory approvals and $7.0 million relates to the achievement of certain product sale goals. An additional $13.0 million of aggregate milestone payments are not indication specific, of which $5.0 million relates to the completion of regulatory approvals and $8.0 million relates to the achievement of certain product sale goals. | |||||||||
Management evaluated the nature of the events triggering these additional milestone payments, and concluded that these events fall into two categories: (a) events which involve the performance of the Company’s obligations under the Kissei license agreement, and (b) events which do not involve the performance of the Company’s obligations under the Kissei license agreement. | |||||||||
Milestone payments which involve the performance of the Company’s obligations include activities related to the completion of development activities and regulatory approvals in the United States. Management concluded that each of these payments constitutes a substantive milestone. This conclusion was based primarily on the facts that (i) each triggering event represents a specific outcome that can be achieved only through successful performance by the Company of one or more of its deliverables, (ii) achievement of each triggering event was subject to inherent risk and was not reasonably assured at the inception of the agreement, (iii) each of these milestones is non-refundable, (iv) substantial effort is required to complete each milestone, (v) the amount of each milestone payment is reasonable in relation to the value created in achieving the milestone, (vi) a substantial amount of time is expected to pass between the up-front payment and the potential milestone payments, and (vii) the milestone payments relate solely to past performance. Based on the foregoing, the Company recognizes any revenue from these milestone payments under the milestone method in the period in which the underlying triggering event occurs. | |||||||||
Milestone payments which do not involve the performance of the Company’s obligations include the completion of development activities, regulatory approvals and certain product sale goals in Japan, all of which are areas in which the Company has no pertinent contractual responsibilities under the agreement. Management concluded that these milestones are not substantive and will be recognized in accordance with the Company’s accounting policy for revenue recognition. | |||||||||
The following table breaks down the remaining unpaid milestone payments by indication or, in the case of milestones not associated with a specific indication, by triggering events and by involvement of the Company: | |||||||||
Milestone Payments | Milestone Payments | ||||||||
Involving Performance | Not | ||||||||
of Company | Involving Performance | ||||||||
Obligations | of Company | ||||||||
Obligations | |||||||||
Milestones by Indication | |||||||||
BPH | — | $ | 12 million | ||||||
Prostate cancer | — | $ | 21 million | ||||||
Prostatitis and other diseases of the prostate | — | $ | 21 million | ||||||
Milestones Not Associated with an Indication | |||||||||
Gross sale targets | — | $ | 8 million | ||||||
Regulatory approvals | $ | 5 million | — | ||||||
The Company may also receive a drug supply fee, assuming the Company supplies material to Kissei, and royalty payments in the 20-29% range as a percentage of future net sales of licensed products sold under the agreement. | |||||||||
Kissei is not currently studying PRX302 for the treatment of prostate cancer, prostatitis or other diseases of the prostate. In addition, Kissei has the option to sublicense the development and commercialization for PRX302 in their territory. | |||||||||
PRX302 license agreement for Benign Prostate Hyperplasia | |||||||||
In 2009, the Company signed an exclusive license agreement with UVIC Industry Partnerships Inc. (“UVIC”) and The Johns Hopkins University (“Johns Hopkins”) with respect to the use of PRX302 for the treatment of the symptoms of benign prostate hyperplasia and other non-cancer diseases and conditions of the prostate. The license agreement requires the Company to make payments of CND$1.3 million in the aggregate on the achievement of certain clinical and regulatory milestones and to pay royalties on commercial sales of resulting products. To the extent the Company receives any milestone payments relating to the development of therapeutics for the treatment of the symptoms of BPH under its exclusive license agreement with Kissei, the Company is obligated to pay a percentage of such consideration, which percentage is in the 10-19% range, to UVIC and Johns Hopkins; however, pursuant to a separate agreement which the Company entered into in 2003 with Dr. J. Thomas Buckley, one of the Company’s founders, the aggregate amount of such consideration payable by the Company to UVIC and Johns Hopkins is reduced by 25% . | |||||||||
During the nine months ended September 30, 2013, the Company expensed a $0.1 million milestone payment due under the agreement upon the completion of the Company’s last Phase 2b clinical trial prior to commencing a Phase 3 clinical trial. The Company anticipates paying this milestone upon the enrollment of the Company’s first patient in a Phase 3 clinical trial for the treatment of the symptoms of BPH. The Company anticipates initiating its Phase 3 clinical trial in the fourth quarter of 2013. This amount was expensed to research and development expense. In addition, the Company accrued a sub-license royalty of $0.4 million payable under the agreement associated with the Company’s $5.0 million milestone payment from Kissei. The Company paid this amount during April 2013. This amount was recorded as a component of research and development expense. | |||||||||
From the inception of the agreement, the Company has incurred sub-license fees of $0.6 million and milestone payments of $0.1 million under this agreement. |
Commitments_and_contingencies
Commitments and contingencies | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and contingencies | ' | ||||
14. Commitments and contingencies | |||||
Operating leases | |||||
The Company leases a facility, comprising the Company’s headquarters, located in San Diego, California under a non-cancelable lease. During September 2013, the Company exercised the first of two 3-year lease extensions on its headquarters in San Diego, California. As a result of this extension, the expiration date for the Company’s headquarters was extended from May 2014 to May 2017. The rent on the Company’s headquarters is currently $12,740 per month. | |||||
The Company rents a second facility in Vancouver, British Columbia under a non-cancelable office service agreement. This office service agreement expires in December 2013 and the rent is CND$3,744 per month, or $3,634 per month, as translated into U.S. dollars, subject to annual cost of living increases. During June 2012 the Company vacated the Vancouver facility. As such the Company recorded $0.1 million of expense during the nine months ended September 30, 2012 which represented all of the future rent payments due under this lease as the Company does not expect to receive any future economic value from this agreement. | |||||
Total rent expense under these operating leases was $0.1 million and $0.2 million for the nine months ended September 30, 2013 and 2012, respectively. As noted above, included as a component of the rent expense for the nine months ended September 30, 2012 is $0.1 million of future rent payments due on the Vancouver facility. | |||||
Future minimum lease payments under non-cancelable operating leases at September 30, 2013 are as follows (in thousands): | |||||
Future rent | |||||
payments | |||||
2013 | $ | 56 | |||
2014 | 141 | ||||
2015 | 117 | ||||
2016 | 117 | ||||
2017 | 49 | ||||
Total | $ | 480 | |||
License agreements | |||||
The Company has license agreements with third parties that require the Company to make annual license maintenance payments and contingent future payments upon the success of licensed products that include milestone and/or royalties. Minimum future payments over the next five years are not material. | |||||
Purchase commitments | |||||
The Company is required to schedule its manufacturing activities in advance. If the Company cancels any of these scheduled activities without proper notice the Company would be required to pay penalties equal to the cost of the originally scheduled activity. The Company estimates that the cost of these penalties would be approximately $3.0 million at September 30, 2013 if the Company’s scheduled activities are cancelled. |
Subsequent_events
Subsequent events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent events | ' |
15. Subsequent events | |
On October 30, 2013 the Company’s Board of Directors approved the corporate goals and the associated weighting of each goal to be utilized in the calculation of the Company’s annual performance-based cash bonuses for the year ended December 31, 2013. The payment of any performance-based cash bonus is subject to the approval of the Company’s Board of Directors. The Company estimates that the total potential performance-based cash bonus payment will be approximately $0.8 million assuming the Company achieves 100% of its corporate goals, which will be recognized as expense in the fourth quarter of 2013. |
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Basis of consolidation | ' | |||
Basis of consolidation | ||||
The consolidated financial statements include the accounts of the Company, Sophiris Bio Corp. and Sophiris Bio Holding Corp. All intercompany balances and transactions have been eliminated for purposes of consolidation. | ||||
Basis of presentation and use of estimates | ' | |||
Basis of presentation and use of estimates | ||||
The accompanying condensed consolidated interim financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”) related to quarterly reports on Form 10-Q. Accordingly, they do not include all of the information and disclosures required by GAAP for annual audited financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Amendment No. 8 to the Company’s Form S-1 for the year ended December 31, 2012, filed with the SEC on August 15, 2013 (“Form S-1”). The condensed consolidated balance sheet as of December 31, 2012 included in this report has been derived from the audited consolidated financial statements included in the Form S-1. In the opinion of management, these condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods shown in this report are not necessarily indicative of the results that may be expected for any future period, including the full year. | ||||
GAAP requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. The Company bases estimates and judgments on historical experience and on various other factors that it believes to be reasonable under the circumstances. The significant estimates in these condensed consolidated interim financial statements include revenue recognition, stock-based compensation expense, functional currency, and accrued research and development expenses, including accruals related to the Company’s ongoing clinical trial. The Company’s actual results may differ from these estimates under different assumptions or conditions. The Company evaluates its estimates on an ongoing basis. Changes in estimates are reflected in reported results in the period in which they become known by the Company’s management. | ||||
Foreign currency | ' | |||
Foreign currency | ||||
Functional currency | ||||
Historically, the functional currency of Sophiris Bio Inc. has been the Canadian dollar and the functional currency of Sophiris Bio Corp. and Sophiris Bio Holding Corp. has been the U.S. dollar. Subsequent to the completion of the Company’s initial public offering on the NASDAQ Global Market the Company reviewed the underlying indicators of the primary economic environment in which Sophiris Bio Inc. operates. Based upon this review, the Company determined that the functional currency of Sophiris Bio Inc. changed from the Canadian dollar to the U.S. dollar effective August 16, 2013, the date of the Company’s U.S. initial public offering. | ||||
Reclassification of Warrants | ||||
Historically, the Company issued common stock warrants in connection with the issuance of common stock through private placements with exercise prices denominated in Canadian dollars. Upon the issuance of these warrants, the Company allocated the net proceeds to common stock and warrants based on their relative fair values, and calculated the fair value of the issued common stock warrants utilizing the Black-Scholes option-pricing model. The allocated fair value was then recorded as Common Share Purchase Warrants within stockholders’ equity on the consolidated balance sheet. The fair value was not remeasured in periods subsequent to the date of issuance. | ||||
The change in the functional currency of Sophiris Bio Inc. to the U.S. dollar effective August 16, 2013 effects how the Company accounts for its warrants which have exercise prices denominated in Canadian dollars, a currency that is not the Company’s functional currency. Upon the change in functional currency, the Company calculated the fair value of its warrants with exercise prices in Canadian dollars as $1.6 million utilizing the Black Scholes pricing model and classified this fair value as a long term liability in accordance with Accounting Standards Codification, or ASC, 815, “Derivatives and Hedging”. The fair value of $1.6 million was deducted from the original fair value calculated on the issuance date of the warrants. The issuance date fair value in excess of the $1.6 million was reclassified to Contributed Surplus. At each reporting period subsequent to August 16, 2013, the Company will adjust the fair value of the warrant liability and any corresponding increase or decrease to the warrant liability will be recorded as a component of other income (expense) on the consolidated statement of operations and comprehensive loss. The estimated fair value is determined using the Black-Scholes option-pricing model based on the estimated value of the underlying common stock at the valuation measurement date, the remaining contractual term of the warrants, risk-free interest rates, expected dividends and expected volatility of the price of the underlying common stock. The fair value of the warrant liability was $1.4 million at September 30, 2013 and the Company recorded a gain of $0.2 million for the three and nine months ended September 30, 2013 which is included in other income (expense) in the consolidated statement of operations and comprehensive loss. | ||||
Reporting currency | ||||
Prior to the change in the functional currency of Sophiris Bio Inc., as discussed above, the consolidated financial statements had been presented in a currency other than the parent’s functional currency as management had determined that the U.S. dollar was the common currency in which the Company’s peers, being international drug and pharmaceutical companies, present their financial statements. For presentation purposes, the assets and liabilities of the Company were translated to U.S. dollars at exchange rates at the reporting date. The historical equity transactions had been translated using historical rates in effect on the date that each transaction occurred. The income and expenses were translated to U.S. dollars at the average exchange rate for the period in which the transaction arose. Exchange differences arising were recognized in a separate component of equity titled accumulated other comprehensive income (loss). | ||||
Transactions and balances | ||||
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the remeasurement of monetary assets and liabilities denominated in currencies other than an entities’ functional currency are recognized as a component of other income (expense), net. | ||||
Cash and cash equivalents | ' | |||
Cash and cash equivalents | ||||
Cash equivalents are short-term, highly liquid investments with an original maturity of three months or less at the date of purchase. | ||||
Concentration of credit risk | ' | |||
Concentration of credit risk | ||||
Financial instruments that subject the Company to credit risk consist primarily of cash and cash equivalents. The Company places its cash and cash equivalents in accredited financial institutions and therefore the Company’s management believes these funds are subject to minimal credit risk. The Company has no significant off-balance sheet concentrations of credit risk such as foreign currency exchange contracts, option contracts or other hedging arrangements. | ||||
Property and equipment | ' | |||
Property and equipment | ||||
Property and equipment are recorded at cost and depreciated using the straight-line method, based on their estimated useful lives as follows: | ||||
Asset classification | Estimated useful life (in years) | |||
Equipment | 5-Mar | |||
Computer hardware | 3 | |||
Software | 5-Mar | |||
Leasehold improvements | Lesser of useful life or lease term | |||
Furniture and fixtures | 5 | |||
Repairs and maintenance costs are expensed as incurred. | ||||
The Company reviews its long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flow to the recorded value of the asset. If impairment is indicated, the asset will be written down to its estimated fair value on a discounted cash flow basis. The Company has not recognized any impairment losses through September 30, 2013. | ||||
Promissory notes | ' | |||
Promissory notes | ||||
Promissory notes are recognized initially at fair value. Promissory notes are subsequently carried at amortized cost; any difference between the proceeds and the redemption value is recognized in the statement of operations and comprehensive loss over the period of the notes payable using the effective interest method. | ||||
The fair value of the promissory notes when issued with equity is recognized initially at the fair value of similar promissory notes issued on a standalone basis. The equity that is issued with borrowings is valued at fair value using the Black-Scholes valuation model. | ||||
Revenue recognition | ' | |||
Revenue recognition | ||||
The Company may enter into product development agreements with collaborative partners for the research and development of products for the treatment of urological diseases. The terms of the agreements may include nonrefundable signing and licensing fees, milestone payments and royalties on any product sales derived from collaborations. These multiple element arrangements are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. License fees are recognized as revenue when persuasive evidence of an arrangement exists, the fee is fixed or determinable, delivery or performance has substantially completed and collection is reasonably assured. | ||||
The Company recognizes up front license payments as revenue upon delivery of the license only if the license has stand-alone value to the customer and if the agreement includes a general right of return, the delivery or performance of undelivered items is considered probable and within the control of the Company. The payment is generally allocated to the separate units of accounting based on their relative selling prices. The selling price of each deliverable is determined using vendor specific objective evidence of selling prices, if it exists; otherwise, third-party evidence of selling prices. If neither vendor specific objective evidence or third-party evidence exists, the Company uses its’ best estimate of the selling price for each deliverable. The payment allocated is limited to the amount that is not contingent on the delivery of additional items or fulfillment of other performance conditions. | ||||
Whenever the Company determines that an arrangement should be accounted for as a single unit of accounting, it must determine the period over which the performance obligations will be performed and revenue will be recognized. If the Company cannot reasonably estimate the timing and the level of effort to complete its performance obligations under the arrangement, then revenue under the arrangement is recognized on a straight-line basis over the period the Company is expected to complete its performance obligations. | ||||
The Company evaluates milestone payments on an individual basis and recognizes revenue from non-refundable milestone payments when the earnings process is complete and the payment is reasonably assured. Non-refundable milestone payments related to arrangements under which the Company has continuing performance obligations are recognized as revenue upon achievement of the associated milestone, provided that (i) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement and (ii) the amount of the milestone payment is reasonable in relation to the effort expended or the risk associated with the milestone event. Any amounts received under agreements in advance of performance, if deemed substantive, are recorded as deferred revenue and recognized as revenue as the Company completes its performance obligations. A milestone event is considered substantive if (i) the milestone is commensurate with either (a) the Company’s performance to achieve the milestone or (b) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the Company’s performance to achieve the milestone; (ii) it relates solely to past performance and (iii) it is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. If any portion of the milestone payment does not relate to the Company’s performance, does not relate solely to past performance or is refundable or adjustable based on future performance, the milestone is not considered to be substantive. Milestone payments are not bifurcated into substantive and non-substantive components. Payments related to the achievement of non-substantive milestones is deferred and recognized over the Company’s remaining performance period. | ||||
Royalty revenue will be recognized upon the sale of the related products provided the Company has no remaining performance obligations under the arrangement. | ||||
Research and development expenses | ' | |||
Research and development expenses | ||||
Research and development expenses are charged to expense as incurred. Research and development expenses comprise costs incurred in performing research and development activities, including personnel-related costs, stock-based compensation, facilities, research-related overhead, clinical trial costs, contracted services, manufacturing, license fees and other external costs. The Company accounts for nonrefundable advance payments for goods and services that will be used in future research and development activities as expenses when the service has been performed or when the goods have been consumed rather than when the payment is made. | ||||
Accrued research and development expenses | ' | |||
Accrued research and development expenses | ||||
Clinical trial costs are recorded as a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon estimates of the percentage of work completed over the life of the individual study in accordance with agreements established with clinical research organizations and clinical trial sites. The Company determines the estimates through discussions with internal clinical personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services based on facts and circumstances known to the Company as of each balance sheet date. However, actual costs and timing of clinical trials are highly uncertain, subject to risks and may change depending upon a number of factors, including the Company’s clinical development plan. The process of estimating clinical trial costs may become more complex as the Company’s planned Phase 3 clinical trials will involve larger numbers of patients and clinical sites. | ||||
If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Adjustments to prior period estimates have not been material for the three and nine months ended September 30, 2013. | ||||
Examples of estimated accrued research and development expenses include: | ||||
• | fees paid to clinical research organizations in connection with clinical studies; | |||
• | fees paid to investigative sites in connection with clinical studies; | |||
• | fees paid to vendors in connection with preclinical development activities; | |||
• | fees paid to vendors associated with the development of companion diagnostics; and | |||
• | fees paid to vendors related to product manufacturing, development and distribution of clinical supplies. | |||
Nonrefundable advance payments for goods and services that will be used or rendered in future research and development activities, are recorded as a prepaid expense and recognized as expense in the period that the related goods are consumed or services are performed. | ||||
Stock-based compensation | ' | |||
Stock-based compensation | ||||
The Company expenses the fair value of employee stock options over the vesting period. Compensation expense is measured using the fair value of the award at the grant date, net of estimated forfeitures, and is adjusted annually to reflect actual forfeitures. The fair value of each stock-based award is estimated using the Black-Scholes valuation model and is expensed using graded amortization over the vesting period. | ||||
Compensation expense for performance-based awards is estimated using the Black-Scholes valuation model and is expensed using the accelerated method. Compensation expense for performance-based awards reflects the estimated probability that the performance condition will be met. | ||||
The Company accounts for stock options granted to non-employees, which primarily consist of members of the Company’s scientific advisory board and consultants, using the fair value approach. Stock options granted to non-employees are subject to revaluation each reporting period over their vesting terms. | ||||
Income taxes | ' | |||
Income taxes | ||||
The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates in effect for the year in which these temporary differences are expected to be recovered or settled. Valuation allowances are provided if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | ||||
The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. Reserves are based on a determination of whether and how much of a tax benefit taken by the Company in its tax filing is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. Potential interest and penalties associated with such uncertain tax positions are recorded as components of income tax expense. To date, the Company has not taken any uncertain tax positions or recorded any reserves, interest or penalties. | ||||
Segment reporting | ' | |||
Segment reporting | ||||
Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, or CODM. The Company’s Chief Executive Officer serves as its CODM. The Company views its operations and manages its business as one segment operating primarily in the United States. As of September 30, 2013, all of the Company’s assets were located in the United States of America with the exception of $0.6 million of cash and cash equivalents and $42 thousand of other assets which were located in Canada. All of the Company’s property and equipment was located within the United States as of September 30, 2013. | ||||
Fair value of financial instruments | ' | |||
Fair value of financial instruments | ||||
The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid for 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. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, and accounts payable and accrued expenses, approximate fair value due to their short maturities. | ||||
The Company follows ASC 820-10, “Fair Value Measurements and Disclosures,” which among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: | ||||
Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | ||||
Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | ||||
Level 3 – Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. | ||||
Recent accounting pronouncements | ' | |||
Recent accounting pronouncements | ||||
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU No. 2013-11”), which concludes that, under most circumstances, an unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU No. 2013-11 will be effective for the Company beginning January 1, 2014. The Company does not anticipate that the adoption of this standard will have a material impact on the Company’s financial position or results of operations. |
Summary_of_significant_account2
Summary of significant accounting policies (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Property and Equipment Estimated Useful Lives | ' | ||
Property and equipment are recorded at cost and depreciated using the straight-line method, based on their estimated useful lives as follows: | |||
Asset classification | Estimated useful life (in years) | ||
Equipment | 5-Mar | ||
Computer hardware | 3 | ||
Software | 5-Mar | ||
Leasehold improvements | Lesser of useful life or lease term | ||
Furniture and fixtures | 5 |
Net_loss_per_common_share_Tabl
Net loss per common share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Computation of Basic and Diluted Net Loss per Share | ' | ||||||||||||||||
The following table presents the computation of basic and diluted net loss per share (in thousands, except per share amounts): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net loss per share: | |||||||||||||||||
Net loss | $ | (2,952 | ) | $ | (5,630 | ) | $ | (5,711 | ) | $ | (15,863 | ) | |||||
Weighted-average common shares – basic and diluted | 9,509 | 3,150 | 5,293 | 3,021 | |||||||||||||
Net loss per share – basic and diluted per share | $ | (0.31 | ) | $ | (1.79 | ) | $ | (1.08 | ) | $ | (5.25 | ) | |||||
Potentially Dilutive Securities Excluded from Computation of Weighted-Average Shares Outstanding | ' | ||||||||||||||||
The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding as of the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2013 and 2012 as the Company recorded a net loss in all periods and, therefore, they would be anti-dilutive (in thousands): | |||||||||||||||||
Three months ended September 30, | Nine months ended | ||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Options to purchase common shares | 270 | 160 | 290 | 169 | |||||||||||||
Common share purchase warrants | 919 | 919 | 919 | 842 |
Fair_value_measurement_and_fin1
Fair value measurement and financial instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value Liabilities Measured on Recurring Basis | ' | ||||||||||||||||
The following tables present information about the Company’s warrant liability which is measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value (in thousands): | |||||||||||||||||
September 30, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Liabilities: | |||||||||||||||||
Warrant liability | $ | 1,376 | $ | — | $ | — | $ | 1,376 | |||||||||
Fair Value of Warrant Liability Calculated Utilizing Black-Scholes Option-Pricing Model | ' | ||||||||||||||||
The following inputs were utilized in the Black-Scholes pricing model at the initial recognition date of the warrant liability, the date of the Company’s U.S. IPO, and September 30, 2013. | |||||||||||||||||
Initial | September 30, 2013 | ||||||||||||||||
Recognition | |||||||||||||||||
Risk-free interest rate | 0.72 | % | 0.59 | % | |||||||||||||
Volatility | 111.86 | % | 113.21 | % | |||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Expected life in years | 2.89 | 2.77 | |||||||||||||||
Reconciliation of Warrant Liability Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||||
The following table presents a reconciliation of the warrant liability measured at fair value using significant unobservable inputs (Level 3) from its initial recognition date to September 30, 2013 (in thousands): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
Sep-13 | Sep-13 | ||||||||||||||||
Liabilities: | |||||||||||||||||
Balance at beginning of period: | $ | — | $ | — | |||||||||||||
Calculation of initial warrant liability fair value | 1,571 | 1,571 | |||||||||||||||
Change in fair value of warrant liability included in other (expense)/income | (195 | ) | (195 | ) | |||||||||||||
Balance at end of period: | $ | 1,376 | $ | 1,376 | |||||||||||||
Components_of_Prepaid_Expenses
Components of Prepaid Expenses (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Components of Prepaid Expenses | ' | ||||||||
Prepaid expenses as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Prepaid insurance | $ | 400 | $ | 90 | |||||
Prepaid research and development expenses | 2,686 | 326 | |||||||
Other prepaid expenses | 126 | 177 | |||||||
$ | 3,212 | $ | 593 | ||||||
Property_and_equipment_Tables
Property and equipment (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Components of Property and Equipment | ' | ||||||||
Property and equipment consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Equipment | $ | 7 | $ | 7 | |||||
Computer hardware and software | 44 | 42 | |||||||
Leasehold improvements | 155 | 155 | |||||||
Furniture and fixtures | 76 | 76 | |||||||
282 | 280 | ||||||||
Less: accumulated depreciation | (180 | ) | (117 | ) | |||||
$ | 102 | $ | 163 | ||||||
Accrued_expenses_Tables
Accrued expenses (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Components of Accrued Expenses | ' | ||||||||
Accrued expenses as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Accrued personnel related costs | $ | 204 | $ | 753 | |||||
Accrued interest | 63 | 93 | |||||||
Accrued research and development expenses | 599 | 1,066 | |||||||
Other accrued expenses | 367 | 927 | |||||||
$ | 1,233 | $ | 2,839 | ||||||
Promissory_notes_Tables
Promissory notes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Secured Promissory Note | ' | ||||||||||||||||
The roll forward of the secured promissory note is calculated as follows (in thousands): | |||||||||||||||||
Balance at December 31, 2012 | $ | 12,021 | |||||||||||||||
Accretion of debt discount | 299 | ||||||||||||||||
Principal paid | (3,903 | ) | |||||||||||||||
Balance at September 30, 2013 | $ | 8,417 | |||||||||||||||
Actual Interest Expenses and Amortization of Debt Discount | ' | ||||||||||||||||
The following table shows actual interest expensed and amortization of the debt discount that was charged to interest expense (in thousands): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Simple interest | $ | 196 | $ | 324 | $ | 678 | $ | 1,033 | |||||||||
Accretion of debt discount | 91 | 127 | 299 | 391 | |||||||||||||
Amortization of promissory notes issuance costs | 25 | 39 | 86 | 119 | |||||||||||||
$ | 312 | $ | 490 | $ | 1,063 | $ | 1,543 | ||||||||||
Schedule of Future Maturities of Debt | ' | ||||||||||||||||
The following is a schedule of future maturities of the Company’s debt as of September 30, 2013, including the final payment of $0.8 million due upon repayment of the loan (in thousands): | |||||||||||||||||
Payments | |||||||||||||||||
2013 | $ | 1,797 | |||||||||||||||
2014 | 7,345 | ||||||||||||||||
$ | 9,142 | ||||||||||||||||
Shareholders_equity_Tables
Shareholders' equity (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Equity [Abstract] | ' | ||||||||
Schedule of Shares Reserved for Future Issuance | ' | ||||||||
The shares reserved for future issuance as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Common share purchase warrants | 919 | 919 | |||||||
Stock options | |||||||||
Granted and outstanding | 254 | 241 | |||||||
Reserved for future issuance | 1,361 | 74 | |||||||
2,534 | 1,234 | ||||||||
Common_share_purchase_warrants1
Common share purchase warrants (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Equity [Abstract] | ' | ||||||||
Schedule of Common Share Purchase Warrants | ' | ||||||||
The common share purchase warrant activity is as follows (in thousands, except exercise price data): | |||||||||
Number | Weighted | ||||||||
outstanding | average | ||||||||
exercise price | |||||||||
CND$ | |||||||||
Balance outstanding – December 31, 2012 | 919 | $ | 27.07 | ||||||
No changes | — | — | |||||||
Balance outstanding – September 30, 2013 | 919 | $ | 27.07 | ||||||
The following table summarizes the expiration dates for the Company’s outstanding common share purchase warrants as of September 30, 2013 (in thousands): | |||||||||
Number of | Expiration date | ||||||||
warrants | |||||||||
outstanding | |||||||||
289 | November 19, 2015 | ||||||||
123 | March 16, 2015 | ||||||||
27 | July 15, 2018 | ||||||||
240 | December 28, 2016 | ||||||||
240 | March 28, 2017 | ||||||||
919 | |||||||||
Stockbased_compensation_plan_T
Stock-based compensation plan (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Schedule of Recognized Stock-Based Compensation Expense | ' | ||||||||||||||||
The Company recognized stock-based compensation expense as follows (in thousands): | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Research and development | $ | 28 | $ | 29 | $ | 152 | $ | 120 | |||||||||
General and administrative | 162 | 115 | 563 | 368 | |||||||||||||
$ | 190 | $ | 144 | $ | 715 | $ | 488 | ||||||||||
Schedule of Weighted-Average Assumptions | ' | ||||||||||||||||
The fair values of options granted during the nine months ended September 30, 2013 and 2012 were estimated at the date of grant using the following weighted-average assumptions: | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected Life of the Option Term (years) | 4.2 | 4 | |||||||||||||||
Risk-free interest rate | 1.38 | % | 1.44 | % | |||||||||||||
Dividend rate | 0 | % | 0 | % | |||||||||||||
Volatility | 69.1 | % | 75.5 | % | |||||||||||||
Forfeiture rate | 8.79 | % | 7.81 | % | |||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
The following table summarizes stock option activity, including options issued to employees, directors and non-employees (in thousands, except per share and contractual term data): | |||||||||||||||||
Options | Weighted | Weighted average | Aggregate | ||||||||||||||
outstanding | average | remaining | intrinsic | ||||||||||||||
exercise | contractual term | value | |||||||||||||||
price in | (in years) | ||||||||||||||||
CND$ | |||||||||||||||||
Outstanding at December 31, 2012 | 241 | $ | 23.92 | 3.5 | $ | — | |||||||||||
Options granted | 71 | 13 | |||||||||||||||
Options expired | (13 | ) | 41.02 | ||||||||||||||
Options forfeited | (45 | ) | 28 | ||||||||||||||
Outstanding at September 30, 2013 | 254 | $ | 19.26 | 3.6 | $ | — | |||||||||||
Vested or expected to vest at September 30, 2013 | 237 | $ | 19.55 | 3.5 | $ | — | |||||||||||
Exercisable at September 30, 2013 | 99 | $ | 24.75 | 2.9 | $ | — | |||||||||||
License_agreements_Tables
License agreements (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||
Summary of Remaining Unpaid Milestone Payments by Indication | ' | ||||||||
The following table breaks down the remaining unpaid milestone payments by indication or, in the case of milestones not associated with a specific indication, by triggering events and by involvement of the Company: | |||||||||
Milestone Payments | Milestone Payments | ||||||||
Involving Performance | Not | ||||||||
of Company | Involving Performance | ||||||||
Obligations | of Company | ||||||||
Obligations | |||||||||
Milestones by Indication | |||||||||
BPH | — | $ | 12 million | ||||||
Prostate cancer | — | $ | 21 million | ||||||
Prostatitis and other diseases of the prostate | — | $ | 21 million | ||||||
Milestones Not Associated with an Indication | |||||||||
Gross sale targets | — | $ | 8 million | ||||||
Regulatory approvals | $ | 5 million | — |
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases | ' | ||||
Future minimum lease payments under non-cancelable operating leases at September 30, 2013 are as follows (in thousands): | |||||
Future rent | |||||
payments | |||||
2013 | $ | 56 | |||
2014 | 141 | ||||
2015 | 117 | ||||
2016 | 117 | ||||
2017 | 49 | ||||
Total | $ | 480 | |||
Nature_of_business_liquidity_r
Nature of business, liquidity risk and going concern - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
Stock split conversion ratio | 52 |
Summary_of_significant_account3
Summary of significant accounting policies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 141 Months Ended | 9 Months Ended | 1 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Common share purchase warrants [Member] | Common share purchase warrants [Member] | United States [Member] | Canada [Member] | |
USD ($) | CAD | Segment | USD ($) | |||||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of warrant liability | $1,376,000 | $1,376,000 | $1,376,000 | ' | ' | ' | $1,400,000 | 1,600,000 | ' | ' |
Fair value deducted of warrants | 200,000 | -195,000 | -195,000 | ' | ' | ' | 1,600,000 | ' | ' | ' |
Fair value Common Share Purchase warrants | ' | ' | ' | ' | ' | ' | 1,600,000 | ' | ' | ' |
Maturity for highly liquid investments | ' | 'Maturity of three months or less | ' | ' | ' | ' | ' | ' | ' | ' |
Significant off-balance sheet concentrations of credit risk | ' | 'The Company has no significant off-balance sheet concentrations of credit risk such as foreign currency exchange contracts, option contracts or other hedging arrangements. | ' | ' | ' | ' | ' | ' | ' | ' |
Significant off-balance sheet concentrations of credit risk, value | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of business operating segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Cash and cash equivalents | 54,739,000 | 54,739,000 | 54,739,000 | 9,721,000 | 15,226,000 | 23,410,000 | ' | ' | ' | 600,000 |
Other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | $42,000 |
Summary_of_significant_account4
Summary of significant accounting policies - Property and Equipment Estimated Useful Lives (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Computer hardware [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful lives | '3 years |
Leasehold improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful lives | 'Lesser of useful life or lease term |
Furniture and fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful lives | '5 years |
Minimum [Member] | Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful lives | '3 years |
Minimum [Member] | Software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful lives | '3 years |
Maximum [Member] | Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful lives | '5 years |
Maximum [Member] | Software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful lives | '5 years |
Net_loss_per_common_share_Comp
Net loss per common share - Computation of Basic and Diluted Net Loss per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 141 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Net loss per share: | ' | ' | ' | ' | ' |
Net loss | ($2,952) | ($5,630) | ($5,711) | ($15,863) | ($79,408) |
Weighted-average common shares - basic and diluted | 9,509 | 3,150 | 5,293 | 3,021 | ' |
Net loss per share - basic and diluted per share | ($0.31) | ($1.79) | ($1.08) | ($5.25) | ' |
Net_loss_per_common_share_Pote
Net loss per common share - Potentially Dilutive Securities Excluded from Computation of Weighted-Average Shares Outstanding (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Options to purchase common shares [Member] | ' | ' | ' | ' |
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti dilutive securities excluded from computation of weighted-average shares outstanding | 270 | 160 | 290 | 169 |
Common share purchase warrants [Member] | ' | ' | ' | ' |
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti dilutive securities excluded from computation of weighted-average shares outstanding | 919 | 919 | 919 | 842 |
Fair_value_measurement_and_fin2
Fair value measurement and financial instruments - Schedule of Fair Value Liabilities Measured on Recurring Basis (Detail) (Warrant liability [Member], USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Liabilities: | ' |
Liability fair value | $1,376 |
Level 1 [Member] | ' |
Liabilities: | ' |
Liability fair value | ' |
Level 2 [Member] | ' |
Liabilities: | ' |
Liability fair value | ' |
Level 3 [Member] | ' |
Liabilities: | ' |
Liability fair value | $1,376 |
Fair_value_measurement_and_fin3
Fair value measurement and financial instruments - Fair Value of Warrant Liability Calculated Utilizing Black-Scholes Option-Pricing Model (Detail) | 1 Months Ended | 9 Months Ended |
Aug. 16, 2013 | Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' | ' |
Risk-free interest rate | 0.72% | 0.59% |
Volatility | 111.86% | 113.21% |
Dividend yield | 0.00% | 0.00% |
Expected life in years | '2 years 10 months 21 days | '2 years 9 months 7 days |
Fair_value_measurement_and_fin4
Fair value measurement and financial instruments - Reconciliation of Warrant Liability Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Liabilities: | ' | ' |
Balance at beginning of period: | ' | ' |
Calculation of initial warrant liability fair value | 1,571 | 1,571 |
Change in fair value of warrant liability included in other (expense)/income | -195 | -195 |
Balance at end of period: | $1,376 | $1,376 |
Intangible_assets_Additional_I
Intangible assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 141 Months Ended |
Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Impairment of intangible assets included in research and development expense | $200,000 | $200,000 | ' |
Amortization expense of intangible assets | $50,000 | $149,000 | $1,205,000 |
Prepaid_expenses_Components_of
Prepaid expenses- Components of Prepaid Expenses (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Prepaid Expense Current [Abstract] | ' | ' |
Prepaid insurance | $400 | $90 |
Prepaid research and development expenses | 2,686 | 326 |
Other prepaid expenses | 126 | 177 |
Prepaid expenses | $3,212 | $593 |
Property_and_equipment_Compone
Property and equipment - Components of Property and Equipment (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $282 | $280 |
Less: accumulated depreciation | -180 | -117 |
Property and equipment, net | 102 | 163 |
Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 7 | 7 |
Computer hardware and software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 44 | 42 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 155 | 155 |
Furniture and fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $76 | $76 |
Property_and_equipment_Additio
Property and equipment - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 141 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' | ' | ' | ' |
Depreciation expense | $21 | $21 | $63 | $61 | $586 |
Accrued_expenses_Components_of
Accrued expenses - Components of Accrued Expenses (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Accrued personnel related costs | $204 | $753 |
Accrued interest | 63 | 93 |
Accrued research and development expenses | 599 | 1,066 |
Other accrued expenses | 367 | 927 |
Accrued expenses, Total | $1,233 | $2,839 |
Promissory_notes_Additional_In
Promissory notes - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Jul. 15, 2011 |
Debt Instrument [Line Items] | ' | ' |
Amount of loan under Oxford Loan | ' | $15 |
Fixed interest rate | ' | 9.50% |
Loan term, including interest payment period | '39 months | ' |
Additional final payment | 0.8 | ' |
Rate of interest on promissory notes | 11.00% | ' |
Percentage of warrant coverage | 6.00% | ' |
After July 2013 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Percentage of prepayment fee outstanding principal | 1.00% | ' |
Promissory notes [Member] | Level 3 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fair value of secured promissory notes | $7.50 | ' |
Promissory_notes_Summary_of_Se
Promissory notes - Summary of Secured Promissory Note (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 141 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Debt Disclosure [Abstract] | ' | ' | ' | ' | ' |
Balance at December 31, 2012 | ' | ' | $12,021 | ' | ' |
Accretion of debt discount | 91 | 127 | 299 | 391 | 1,029 |
Principal paid | ' | ' | -3,903 | ' | ' |
Balance at September 30, 2013 | $8,417 | ' | $8,417 | ' | $8,417 |
Promissory_notes_Actual_Intere
Promissory notes - Actual Interest Expenses and Amortization of Debt Discount (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 141 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Debt Disclosure [Abstract] | ' | ' | ' | ' | ' |
Simple interest | $196 | $324 | $678 | $1,033 | ' |
Accretion of debt discount | 91 | 127 | 299 | 391 | 1,029 |
Amortization of promissory notes issuance costs | 25 | 39 | 86 | 119 | 310 |
Interest expensed and amortization of debt discount | $312 | $490 | $1,063 | $1,543 | ' |
Promissory_notes_Schedule_of_F
Promissory notes - Schedule of Future Maturities of Debt (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2013 | $1,797 | ' |
2014 | 7,345 | ' |
Long-term debt | $8,417 | $12,021 |
Shareholders_equity_Additional
Shareholders' equity - Additional Information (Detail) (USD $) | 1 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Aug. 23, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Equity [Abstract] | ' | ' | ' |
Common shares, issued | 13,000,000 | 16,149,871 | 3,149,871 |
Common shares, outstanding | ' | 16,149,871 | 3,149,871 |
Common shares, price | $5 | ' | ' |
Proceeds from initial public offering | $57 | ' | ' |
Shareholders_equity_Schedule_o
Shareholders' equity - Schedule of Shares Reserved for Future Issuance (Detail) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Equity [Abstract] | ' | ' |
Common share purchase warrants | 919 | 919 |
Stock options | ' | ' |
Granted and outstanding | 254 | 241 |
Reserved for future issuance | 1,361 | 74 |
Total shares reserved for future issuance | 2,534 | 1,234 |
Common_share_purchase_warrants2
Common share purchase warrants - Schedule of Common Share Purchase Warrant Activity (Detail) (CAD) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Equity [Abstract] | ' |
Number of warrants outstanding, beginning balance | 919 |
Number of warrants outstanding, No changes | ' |
Number of warrants outstanding, ending balance | 919 |
Weighted average exercise price, beginning balance | 27.07 |
Weighted average exercise price, No changes | ' |
Weighted average exercise price, ending balance | 27.07 |
Common_share_purchase_warrants3
Common share purchase warrants - Summary of Expiration Dates of Outstanding Common Share Purchase Warrants (Detail) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | November 19, 2015 [Member] | March 16, 2015 [Member] | July 15, 2018 [Member] | December 28, 2016 [Member] | March 28, 2017 [Member] | ||
Common Shares [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Warrants Expiration date | ' | ' | 19-Nov-15 | 16-Mar-15 | 15-Jul-18 | 28-Dec-16 | 28-Mar-17 |
Number of warrants outstanding | 919 | 919 | 289 | 123 | 27 | 240 | 240 |
Stockbased_compensation_plan_A
Stock-based compensation plan - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Cumulative percentage of options issuable | ' | 10.00% | ' |
Stock options available to be issued under the plan | 1,361,000 | 1,361,000 | 74,000 |
Options issued under the plan | ' | 28,346 | ' |
Expense recognized from issuing options | $40,000 | $100,000 | ' |
Unrecognized compensation costs related to non-vested stock awards | $600,000 | $600,000 | $800,000 |
Unrecognized compensation costs, weighted average recognized period | ' | '1 year 4 months 24 days | '1 year 6 months |
Contractual term of share based compensation award | ' | '5 years | ' |
Directors and employees [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options issued under the plan | ' | 42,862 | ' |
Maximum contractual period for granted options | ' | '5 years | ' |
Employees [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options vesting period | ' | '3 years | ' |
Directors [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options vesting period | ' | '1 year | ' |
Stockbased_compensation_plan_S
Stock-based compensation plan - Schedule of Recognized Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 141 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' |
Stock-based compensation expense | $190 | $144 | $715 | $488 | $5,052 |
Research and development [Member] | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' |
Stock-based compensation expense | 28 | 29 | 152 | 120 | ' |
General and administrative [Member] | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' |
Stock-based compensation expense | $162 | $115 | $563 | $368 | ' |
Stockbased_compensation_plan_S1
Stock-based compensation plan - Schedule of Weighted-Average Assumptions (Detail) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Expected Life of the Option Term (years) | '4 years 2 months 12 days | '4 years |
Risk-free interest rate | 1.38% | 1.44% |
Dividend rate | 0.00% | 0.00% |
Volatility | 69.10% | 75.50% |
Forfeiture rate | 8.79% | 7.81% |
Stockbased_compensation_plan_S2
Stock-based compensation plan - Summary of Stock Option Activity (Detail) | 9 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
USD ($) | CAD | USD ($) | CAD | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding [Roll Forward] | ' | ' | ' | ' |
Options outstanding, Beginning balance | 241 | 241 | ' | ' |
Options outstanding, Options granted | 71 | 71 | ' | ' |
Options outstanding, Options expired | -13 | -13 | ' | ' |
Options outstanding, Options forfeited | -45 | -45 | ' | ' |
Options outstanding, Ending balance | 254 | 254 | 241 | 241 |
Options outstanding, Vested or expected to vest at September 30, 2013 | 237 | 237 | ' | ' |
Options outstanding, Exercisable at September 30, 2013 | 99 | 99 | ' | ' |
Weighted average exercise price, Options outstanding, beginning balance | ' | 23.92 | ' | ' |
Weighted average exercise price, Options granted | ' | 13 | ' | ' |
Weighted average exercise price, Options expired | ' | 41.02 | ' | ' |
Weighted average exercise price, Options forfeited | ' | 28 | ' | ' |
Weighted average exercise price, Options outstanding, ending balance | ' | 19.26 | ' | 23.92 |
Weighted average exercise price, Vested or expected to vest at September 30, 2013 | ' | 19.55 | ' | ' |
Weighted average exercise price, Exercisable at September 30, 2013 | ' | 24.75 | ' | ' |
Weighted average remaining contractual term (in years), Outstanding | '3 years 7 months 6 days | '3 years 7 months 6 days | '3 years 6 months | '3 years 6 months |
Weighted average remaining contractual term (in years), Vested or expected to vest at September 30, 2013 | '3 years 6 months | '3 years 6 months | ' | ' |
Weighted average remaining contractual term (in years), Exercisable at September 30, 2013 | '2 years 10 months 24 days | '2 years 10 months 24 days | ' | ' |
Aggregate intrinsic value Outstanding, Beginning balance | ' | ' | ' | ' |
Aggregate intrinsic value Outstanding, Ending balance | ' | ' | ' | ' |
Aggregate intrinsic value, Vested or expected to vest at September 30, 2013 | ' | ' | ' | ' |
Aggregate intrinsic value, Exercisable at September 30, 2013 | ' | ' | ' | ' |
License_agreements_Additional_
License agreements - Additional Information (Detail) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Apr. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | Kissei Pharmaceuticals Co., Ltd [Member] | Kissei Pharmaceuticals Co., Ltd [Member] | Kissei Pharmaceuticals Co., Ltd [Member] | Kissei Pharmaceuticals Co., Ltd [Member] | BPH [Member] | BPH [Member] | BPH [Member] | BPH [Member] | Prostate cancer [Member] | Prostatitis and other diseases of the prostate [Member] | Milestones Not Associated with an Indication [Member] | Regulatory approvals [Member] | Regulatory approvals [Member] | Regulatory approvals [Member] | Regulatory approvals [Member] | Gross sale targets [Member] | Gross sale targets [Member] | Gross sale targets [Member] | Gross sale targets [Member] | Development activities [Member] | Development activities [Member] | |
USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | USD ($) | CAD | Minimum [Member] | Maximum [Member] | USD ($) | USD ($) | USD ($) | BPH [Member] | Prostate cancer [Member] | Prostatitis and other diseases of the prostate [Member] | Milestones Not Associated with an Indication [Member] | BPH [Member] | Prostate cancer [Member] | Prostatitis and other diseases of the prostate [Member] | Milestones Not Associated with an Indication [Member] | Prostate cancer [Member] | Prostatitis and other diseases of the prostate [Member] | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||
Revenue Recognition, Milestone Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Upfront license payment | ' | $3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Milestone payment | 5 | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential future milestone payments | 67 | ' | ' | ' | ' | 12 | ' | ' | ' | 21 | 21 | 13 | 7 | 7 | 7 | 5 | 5 | 7 | 7 | 8 | 7 | 7 |
Percentage of royalty payments under agreement | ' | ' | ' | 20.00% | 29.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License agreement payments | ' | ' | ' | ' | ' | ' | 1.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of milestone payments to be paid as consideration | ' | ' | ' | ' | ' | ' | ' | 10.00% | 19.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of aggregate consideration payable reduced due to separate agreement | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Milestone payments paid and expensed | ' | ' | ' | ' | ' | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of accrued sub-license royalty | 0.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sub-license fees | $0.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License_agreements_Summary_of_
License agreements - Summary of Remaining Unpaid Milestone Payments by Indication (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Milestones by Indication [Member] | Milestone Payments Involving Performance of Company Obligations [Member] | BPH [Member] | ' |
Revenue Recognition, Milestone Method [Line Items] | ' |
Remaining unpaid milestone payments | ' |
Milestones by Indication [Member] | Milestone Payments Involving Performance of Company Obligations [Member] | Prostate cancer [Member] | ' |
Revenue Recognition, Milestone Method [Line Items] | ' |
Remaining unpaid milestone payments | ' |
Milestones by Indication [Member] | Milestone Payments Involving Performance of Company Obligations [Member] | Prostatitis and other diseases of the prostate [Member] | ' |
Revenue Recognition, Milestone Method [Line Items] | ' |
Remaining unpaid milestone payments | ' |
Milestones by Indication [Member] | Milestone Payments Not Involving Performance of Company Obligations [Member] | BPH [Member] | ' |
Revenue Recognition, Milestone Method [Line Items] | ' |
Remaining unpaid milestone payments | 12 |
Milestones by Indication [Member] | Milestone Payments Not Involving Performance of Company Obligations [Member] | Prostate cancer [Member] | ' |
Revenue Recognition, Milestone Method [Line Items] | ' |
Remaining unpaid milestone payments | 21 |
Milestones by Indication [Member] | Milestone Payments Not Involving Performance of Company Obligations [Member] | Prostatitis and other diseases of the prostate [Member] | ' |
Revenue Recognition, Milestone Method [Line Items] | ' |
Remaining unpaid milestone payments | 21 |
Milestones Not Associated with an Indication [Member] | Milestone Payments Involving Performance of Company Obligations [Member] | Gross sale targets [Member] | ' |
Revenue Recognition, Milestone Method [Line Items] | ' |
Remaining unpaid milestone payments | ' |
Milestones Not Associated with an Indication [Member] | Milestone Payments Involving Performance of Company Obligations [Member] | Regulatory approvals [Member] | ' |
Revenue Recognition, Milestone Method [Line Items] | ' |
Remaining unpaid milestone payments | 5 |
Milestones Not Associated with an Indication [Member] | Milestone Payments Not Involving Performance of Company Obligations [Member] | Gross sale targets [Member] | ' |
Revenue Recognition, Milestone Method [Line Items] | ' |
Remaining unpaid milestone payments | 8 |
Milestones Not Associated with an Indication [Member] | Milestone Payments Not Involving Performance of Company Obligations [Member] | Regulatory approvals [Member] | ' |
Revenue Recognition, Milestone Method [Line Items] | ' |
Remaining unpaid milestone payments | ' |
Commitments_and_contingencies_1
Commitments and contingencies - Additional Information (Detail) | 9 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
USD ($) | USD ($) | British Columbia [Member] | British Columbia [Member] | British Columbia [Member] | California [Member] | |
USD ($) | CAD | USD ($) | USD ($) | |||
Operating Leased Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Operating lease, expiry date | ' | ' | 31-Dec-13 | 31-Dec-13 | ' | 31-May-17 |
Operating lease, expiry date extension description | ' | ' | ' | ' | ' | 'The expiration date for the Company's headquarters was extended from May 2014 to May 2017. |
Operating lease, rent expense per month | ' | ' | $3,634 | 3,744 | ' | $12,740 |
Operating lease, future rent payment | 480,000 | ' | ' | ' | 100,000 | ' |
Operating lease, write off | ' | 100,000 | ' | ' | ' | ' |
Operating lease, rent expense | 100,000 | 200,000 | ' | ' | ' | ' |
Purchase commitment penalty | $3,000,000 | ' | ' | ' | ' | ' |
Commitments_and_contingencies_2
Commitments and contingencies - Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Future rent payments, 2013 | $56 |
Future rent payments, 2014 | 141 |
Future rent payments, 2015 | 117 |
Future rent payments, 2016 | 117 |
Future rent payments, 2017 | 49 |
Future rent payments, Total | $480 |
Subsequent_events_Additional_I
Subsequent events - Additional Information (Detail) (Subsequent Event [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Estimates that the total potential performance-based cash bonus | $0.80 |
Percentage of corporate goals | 100.00% |