Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ALLK | |
Entity Registrant Name | Allakos Inc. | |
Entity Central Index Key | 0001564824 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 88,850,713 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38582 | |
Entity Tax Identification Number | 45-4798831 | |
Entity Address, Address Line One | 825 Industrial Road | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | San Carlos | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94070 | |
City Area Code | 650 | |
Local Phone Number | 597-5002 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.001 | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE |
BALANCE SHEETS (Unaudited)
BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 26,496 | $ 66,440 |
Investments | 96,625 | 104,354 |
Prepaid expenses and other current assets | 4,805 | 9,095 |
Total current assets | 127,926 | 179,889 |
Property and equipment, net | 16,590 | 33,369 |
Operating lease right-of-use assets | 10,228 | 24,136 |
Other long-term assets | 1,714 | 6,216 |
Total assets | 156,458 | 243,610 |
Current liabilities: | ||
Accounts payable | 16,119 | 1,764 |
Accrued expenses and other current liabilities | 19,761 | 34,814 |
Total current liabilities | 35,880 | 36,578 |
Operating lease liabilities, net of current portion | 36,579 | 38,215 |
Total liabilities | 72,459 | 74,793 |
Contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value per share; 20,000 shares authorized as of June 30, 2024 and December 31, 2023; no shares issued and outstanding as of June 30, 2024 and December 31, 2023 | 0 | 0 |
Common stock, $0.001 par value per share; 200,000 shares authorized as of June 30, 2024 and December 31, 2023; 88,851 and 87,750 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 89 | 88 |
Additional paid-in capital | 1,300,200 | 1,287,156 |
Accumulated other comprehensive gain (loss) | 9 | 50 |
Accumulated deficit | (1,216,299) | (1,118,477) |
Total stockholders’ equity | 83,999 | 168,817 |
Total liabilities and stockholders’ equity | $ 156,458 | $ 243,610 |
BALANCE SHEETS (Unaudited) (Par
BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 88,851,000 | 87,750,000 |
Common stock, shares outstanding | 88,851,000 | 87,750,000 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating expenses | ||||
Research and development | $ 19,422 | $ 27,280 | $ 54,246 | $ 60,358 |
General and administrative | 9,211 | 10,537 | 20,109 | 22,505 |
Impairment of long-lived assets | 0 | 0 | 27,347 | 0 |
Total operating expenses | 28,633 | 37,817 | 101,702 | 82,863 |
Loss from operations | (28,633) | (37,817) | (101,702) | (82,863) |
Interest income | 1,959 | 2,697 | 3,954 | 5,375 |
Other expense, net | (2) | 0 | (74) | (36) |
Net loss | (26,676) | (35,120) | (97,822) | (77,524) |
Unrealized gain (loss) on investments | (11) | (171) | (41) | 125 |
Comprehensive loss | $ (26,687) | $ (35,291) | $ (97,863) | $ (77,399) |
Net loss per common share: | ||||
Net loss per common share, basic | $ (0.3) | $ (0.41) | $ (1.11) | $ (0.9) |
Net loss per common share, diluted | $ (0.3) | $ (0.41) | $ (1.11) | $ (0.9) |
Weighted-average number of common shares outstanding: | ||||
Weighted-average shares of common stock outstanding, basic | 88,644 | 86,646 | 88,342 | 86,246 |
Weighted-average shares of common stock outstanding, diluted | 88,644 | 86,646 | 88,342 | 86,246 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | ATM Offering [Member] | Common Stock | Common Stock ATM Offering [Member] | Additional Paid-In Capital | Additional Paid-In Capital ATM Offering [Member] | Accumulated Other Comprehensive Gain (Loss) | Accumulated Other Comprehensive Gain (Loss) ATM Offering [Member] | Accumulated Deficit | Accumulated Deficit ATM Offering [Member] |
Balance at Dec. 31, 2022 | $ 310,433 | $ 85 | $ 1,243,408 | $ (284) | $ (932,776) | |||||
Balance, Shares at Dec. 31, 2022 | 85,387 | |||||||||
Stock-based compensation expense | 10,665 | $ 0 | 10,665 | 0 | 0 | |||||
Issuance of common stock upon exercise of stock options | 26 | $ 0 | 26 | 0 | 0 | |||||
Issuance of common stock upon exercise of stock options, Shares | 6 | |||||||||
Issuance of common stock upon 2018 ESPP purchase | 442 | $ 0 | 442 | 0 | 0 | |||||
Issuance of common stock upon 2018 ESPP purchase, Shares | 144 | |||||||||
Issuance of common stock upon vesting of restricted stock units | 0 | $ 1 | (1) | 0 | 0 | |||||
Issuance of common stock upon vesting of restricted stock units, Shares | 881 | |||||||||
Issuance of common stock under the ATM / registered direct Offering net of issuance costs | $ 990 | $ 0 | $ 990 | $ 0 | $ 0 | |||||
Issuance of common stock under the ATM /registered direct Offering net of issuance costs, Shares | 142 | |||||||||
Unrealized gain (loss) on investments | 296 | $ 0 | 0 | 296 | 0 | |||||
Net Income (Loss) | (42,404) | 0 | 0 | 0 | (42,404) | |||||
Balance at Mar. 31, 2023 | 280,448 | $ 86 | 1,255,530 | 12 | (975,180) | |||||
Balance, Shares at Mar. 31, 2023 | 86,560 | |||||||||
Balance at Dec. 31, 2022 | 310,433 | $ 85 | 1,243,408 | (284) | (932,776) | |||||
Balance, Shares at Dec. 31, 2022 | 85,387 | |||||||||
Unrealized gain (loss) on investments | 125 | |||||||||
Net Income (Loss) | (77,524) | |||||||||
Balance at Jun. 30, 2023 | 254,978 | $ 87 | 1,265,350 | (159) | (1,010,300) | |||||
Balance, Shares at Jun. 30, 2023 | 86,823 | |||||||||
Balance at Mar. 31, 2023 | 280,448 | $ 86 | 1,255,530 | 12 | (975,180) | |||||
Balance, Shares at Mar. 31, 2023 | 86,560 | |||||||||
Stock-based compensation expense | 9,821 | $ 0 | 9,821 | 0 | 0 | |||||
Issuance of common stock upon vesting of restricted stock units | 0 | $ 1 | (1) | 0 | 0 | |||||
Issuance of common stock upon vesting of restricted stock units, Shares | 263 | |||||||||
Unrealized gain (loss) on investments | (171) | $ 0 | 0 | (171) | 0 | |||||
Net Income (Loss) | (35,120) | 0 | 0 | 0 | (35,120) | |||||
Balance at Jun. 30, 2023 | 254,978 | $ 87 | 1,265,350 | (159) | (1,010,300) | |||||
Balance, Shares at Jun. 30, 2023 | 86,823 | |||||||||
Balance at Dec. 31, 2023 | 168,817 | $ 88 | 1,287,156 | 50 | (1,118,477) | |||||
Balance, Shares at Dec. 31, 2023 | 87,750 | |||||||||
Stock-based compensation expense | 6,210 | $ 0 | 6,210 | 0 | 0 | |||||
Issuance of common stock upon exercise of stock options | 26 | $ 0 | 26 | 0 | 0 | |||||
Issuance of common stock upon exercise of stock options, Shares | 26 | |||||||||
Issuance of common stock upon 2018 ESPP purchase | 106 | $ 0 | 106 | 0 | 0 | |||||
Issuance of common stock upon 2018 ESPP purchase, Shares | 98 | |||||||||
Issuance of common stock upon vesting of restricted stock units | 0 | $ 1 | (1) | 0 | 0 | |||||
Issuance of common stock upon vesting of restricted stock units, Shares | 670 | |||||||||
Unrealized gain (loss) on investments | (30) | $ 0 | 0 | (30) | 0 | |||||
Net Income (Loss) | (71,146) | 0 | 0 | 0 | (71,146) | |||||
Balance at Mar. 31, 2024 | 103,983 | $ 89 | 1,293,497 | 20 | (1,189,623) | |||||
Balance, Shares at Mar. 31, 2024 | 88,544 | |||||||||
Balance at Dec. 31, 2023 | $ 168,817 | $ 88 | 1,287,156 | 50 | (1,118,477) | |||||
Balance, Shares at Dec. 31, 2023 | 87,750 | |||||||||
Issuance of common stock upon exercise of stock options, Shares | 26 | |||||||||
Unrealized gain (loss) on investments | $ (41) | |||||||||
Net Income (Loss) | (97,822) | |||||||||
Balance at Jun. 30, 2024 | 83,999 | $ 89 | 1,300,200 | 9 | (1,216,299) | |||||
Balance, Shares at Jun. 30, 2024 | 88,851 | |||||||||
Balance at Mar. 31, 2024 | 103,983 | $ 89 | 1,293,497 | 20 | (1,189,623) | |||||
Balance, Shares at Mar. 31, 2024 | 88,544 | |||||||||
Stock-based compensation expense | 6,703 | $ 0 | 6,703 | 0 | 0 | |||||
Issuance of common stock upon vesting of restricted stock units | 0 | $ 0 | 0 | 0 | 0 | |||||
Issuance of common stock upon vesting of restricted stock units, Shares | 307 | |||||||||
Unrealized gain (loss) on investments | (11) | $ 0 | 0 | (11) | 0 | |||||
Net Income (Loss) | (26,676) | 0 | 0 | 0 | (26,676) | |||||
Balance at Jun. 30, 2024 | $ 83,999 | $ 89 | $ 1,300,200 | $ 9 | $ (1,216,299) | |||||
Balance, Shares at Jun. 30, 2024 | 88,851 |
STATEMENTS OF CASH FLOWS (unaud
STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net loss | $ (97,822) | $ (77,524) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Impairment of long-lived assets | 27,347 | 0 |
Depreciation and amortization | 1,945 | 3,045 |
Stock-based compensation | 12,913 | 20,486 |
Net amortization (accretion) of premiums and discounts on investments | (1,644) | (3,187) |
Noncash lease expense | 1,498 | 784 |
Loss on disposal of property and equipment | 0 | 3 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 4,190 | (1,201) |
Other long-term assets | 4,502 | 1,509 |
Accounts payable | 14,297 | (357) |
Accrued expenses and other current liabilities | (15,052) | (4,729) |
Operating lease liabilities, net of current portion | (1,636) | (1,562) |
Net cash used in operating activities | (49,462) | (62,733) |
Cash flows from investing activities | ||
Purchases of investments | (80,988) | (113,042) |
Proceeds from maturities of investments | 90,420 | 155,000 |
Purchases of property and equipment | (46) | (519) |
Net cash provided by investing activities | 9,386 | 41,439 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock, net of issuance costs | 0 | 990 |
Proceeds from exercise of stock options | 26 | 26 |
Proceeds from issuance of common stock under the 2018 ESPP | 106 | 442 |
Net cash provided by financing activities | 132 | 1,458 |
Net decrease in cash, cash equivalents and restricted cash | (39,944) | (19,836) |
Cash, cash equivalents and restricted cash, beginning of period | 67,912 | 88,689 |
Cash, cash equivalents and restricted cash, end of period | 27,968 | 68,853 |
Noncash investing and financing items: | ||
Noncash adjustments to right-of-use assets | $ 0 | $ (5,617) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ (26,676) | $ (71,146) | $ (35,120) | $ (42,404) | $ (97,822) | $ (77,524) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Business
Organization and Business | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | 1. Organization and Business Allakos Inc. (“Allakos” or the “Company”) was incorporated in the State of Delaware in March 2012. Allakos is a clinical stage biopharmaceutical company focused on developing therapeutics which target immunomodulatory receptors present on immune effector cells involved in allergic, inflammatory and proliferative diseases. Our most advanced product candidate is AK006 which targets mast cells. Inappropriately activated mast cells have been identified as key drivers in a number of severe diseases affecting the gastrointestinal tract, eyes, skin, lungs and other organs. The Company’s primary activities to date have included establishing its facilities, recruiting personnel, conducting research and development of its product candidates and raising capital. The Company’s operations are located in San Carlos, California. The Company operates in one reportable segment. Liquidity Matters Since inception, the Company has incurred net losses and negative cash flows from operations. During the six months ended June 30, 2024, the Company incurred a net loss of $ 97.8 million . At June 30, 2024, the Company had an accumulated deficit of $ 1,216.3 million and does not expect to experience positive cash flows from operating activities in the foreseeable future. The Company has financed its operations to date primarily through the sale of common stock. Management expects to incur additional operating losses in the future as the Company continues to further develop, seek regulatory approval for and, if approved, commence commercialization of its product candidates. On January 16, 2024, the Company announced that due to unfavorable clinical trial results associated with the use of lirentelimab in its Phase 2 atopic dermatitis and Phase 2b chronic spontaneous urticaria trials, that the Company would halt lirentelimab-related activities across clinical, manufacturing, research and administrative functions. Accordingly, the Company’ s Board of Directors approved a reorganization plan to reduce operating costs and better align our workforce with our current clinical development plans of our business (the “2024 Reorganization Plan”). Under the 2024 Reorganization Plan, the Company’s workforce was reduced by approximately 50 % primarily during the first quarter of 2024. The Company had $ 123.1 million of cash, cash equivalents and marketable securities at June 30, 2024 . Management believes that this amount is sufficient to fund the Company’s operations for at least the next 12 months from the issuance date of these financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The unaudited interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. The interim balance sheet as of June 30, 2024, the statements of operations and comprehensive loss, statements of stockholders’ equity for the three and six months ended June 30, 2024 and 2023 and statements of cash flows for the six months ended June 30, 2024 and 2023 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s financial position as of June 30, 2024 and its results of operations and comprehensive loss for the three and six months ended June 30, 2024 and 2023 and its cash flows for the six months ended June 30, 2024 and 2023. Certain information and note disclosures normally included in annual audited financial statements prepared in accordance with U.S. GAAP have been omitted. The financial data and the other financial information disclosed in these notes to the interim financial statements are also unaudited. The results of operations for any interim period are not necessarily indicative of the results to be expected for the entire year or for any other future annual or interim period. These interim financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission (“SEC”) on March 14, 2024. Use of Estimates Management uses significant judgment when making estimates related to common stock valuation and related stock-based compensation expense, accrued research and development expense, valuation of long-lived assets and lease-related assets and liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions or conditions, and those differences could be material to the financial position and results of operations. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to credit risk principally consist of cash, cash equivalents and investments. These financial instruments are currently held in accounts in varying amounts at four separate financial institutions that management believes possess high credit quality. Amounts on deposit with these financial institutions have and will continue to exceed federally-insured limits. The Company has not experienced any losses on its cash deposits. Additionally, the Company’s investment policy limits its investments to certain types of securities issued by or backed by the U.S. government and its agencies. The Company is subject to a number of risks similar to that of other early stage biopharmaceutical companies, including, but not limited to, the need to obtain adequate additional funding, possible failure of current or future clinical trials, its reliance on third-parties to conduct its clinical trials, the need to obtain regulatory and marketing approvals for its product candidates, competitive developments, the need to successfully commercialize and gain market acceptance of the Company’s product candidates, protection of proprietary technology, and the need to secure and maintain adequate manufacturing arrangements with third-parties. If the Company does not successfully commercialize or partner its product candidates, it will be unable to generate product revenue or achieve profitability. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s balance sheets and which, in aggregate, represent the amounts reported in the accompanying statements of cash flows (in thousands): June 30, December 31, 2024 2023 Cash and cash equivalents $ 26,496 $ 66,440 Restricted cash in other long-term assets 1,472 1,472 Total $ 27,968 $ 67,912 June 30, December 31, 2023 2022 Cash and cash equivalents $ 67,381 $ 87,217 Restricted cash in other long-term assets 1,472 1,472 Total $ 68,853 $ 88,689 Restricted cash at June 30, 2024 represents $ 1.5 million in security deposits for the lease of the Company’s facility in San Carlos, California. The security deposit is in the form of a letter of credit secured by restricted cash and is recorded in other long-term assets on the Company’s balance sheets . Investments The Company invests in marketable securities, primarily securities issued by the U.S. government and its agencies. The Company’s investments are considered available-for-sale and are classified as current assets even when the stated maturities of the underlying securities exceed one year from the date of the current balance sheet being reported. This classification reflects management’s ability and intent to utilize proceeds from the sale of such investments to fund ongoing operations. Unrealized gains and losses are excluded from earnings and are reported as a component of accumulated other comprehensive gain (loss) unless the decline in fair value of the investments is attributable to expected credit losses and if it is more likely than not that the Company will be required or will intend to sell the investment before recovery of its amortized cost basis. The cost of securities sold is determined using the specific-identification method. Interest earned and adjustments for the amortization of premiums and discounts on investments are included in interest income on the statements of operations and comprehensive loss. Realized gains and losses on the sale of investments are included in other expense, net, on the statements of operations and comprehensive loss. Valuation of Long-lived Assets Long-lived assets, including property and equipment and finite-lived intangible assets, are reviewed for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate from the use and eventual disposition. If such review indicates that the carrying amount of the long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. We have recorded impairment charges during the six months ended June 30, 2024. For a further description of the impairment, see Note 5 – Impairment of Long-Lived Assets in the accompanying notes. Operating Leases The Company accounts for its leases in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 842, “Leases” (“ASC 842”). Right-of-use assets represent the Company’s right to use an underlying asset over the lease term and include any lease payments made prior to the lease commencement date and are reduced by lease incentives. Lease liabilities represent the present value of the total lease payments over the lease term, calculated using the Company’s incremental borrowing rate. In determining the Company’s incremental borrowing rate, consideration is given to the term of the lease and the Company’s credit risk. The Company recognizes options to extend a lease when it is reasonably certain that it will exercise such extension. The Company does not recognize options to terminate a lease when it is reasonably certain that it will not exercise such early termination options. Lease expense is recognized on a straight-line basis over the expected lease term. Accrued Research and Development Expense Service agreements with contract development and manufacturing organizations (“CDMOs”), clinical contract research organizations (“CROs”) and clinical investigative sites comprise a significant component of the Company’s research and development activities. External costs for these vendors are recognized as the services are incurred. The Company accrues for expenses resulting from obligations under agreements with its third-parties for which the timing of payments does not match the periods over which the materials or services are provided to the Company. Accruals are recorded based on estimates of services received and efforts expended pursuant to agreements established with CDMOs, clinical CROs, clinical investigative sites and other outside service providers. These estimates are typically based on contracted amounts applied to the proportion of work performed and determined through analysis with internal personnel and external service providers as to the progress or stage of completion of the services. The Company makes judgements and estimates in determining the accrual balance in each reporting period. In the event advance payments are made to a CDMO, clinical CRO, clinical investigative site or other outside service provider, the payments are recorded within prepaid expenses and other current assets or other long-term assets, as appropriate, and subsequently recognized as research and development expense when the associated services have been performed. As actual costs become known, the Company adjusts its liabilities and assets. Inputs, such as the extent of services received and the duration of services to be performed, may vary from the Company’s estimates, which will result in adjustments to research and development expense in future periods. Changes in these estimates that result in material changes to the Company’s accruals could materially affect the Company’s results of operations. The Company’s historical estimates have not been materially different from actual amounts recorded. Research and Development Expense Research and development costs are expensed as incurred. Research and development costs include, among others, consulting costs, salaries, benefits, travel, stock-based compensation, laboratory supplies and other non-capital equipment utilized for in-house research, allocation of facilities and overhead costs and external costs paid to third-parties that conduct research and development activities on the Company’s behalf. Costs to terminate commitments with third-party suppliers performing research and development activities and amounts incurred in connection with license agreements, including milestone payments, are also included in research and development expense. Advance payments for goods or services to be rendered in the future for use in research and development activities are deferred and included in prepaid expenses and other current assets or other long-term assets, as appropriate. The deferred amounts are expensed as the related goods are delivered or the services are performed. Comprehensive Loss Comprehensive loss is defined as the change in stockholders’ equity during a period from transactions and other events and circumstances from non-owner sources. The differences between net loss and comprehensive loss for the three and six months ended June 30, 2024 and 2023 are a result of unrealized gains and losses on the Company’s investments in marketable securities included in current assets on the Company’s balance sheets. Net Loss per Share The Company calculates basic net loss per share by dividing the net loss attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. The Company calculates diluted net loss per share after giving consideration to all potentially dilutive securities outstanding during the period using the treasury-stock and if-converted methods, except where the effect of including such securities would be anti-dilutive. Because the Company has reported net losses since inception, the effect from potentially dilutive securities would have been anti-dilutive and therefore has been excluded from the calculation of diluted net loss per share. Basic and diluted net loss per share was calculated as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Numerator: Net loss $ ( 26,676 ) $ ( 35,120 ) $ ( 97,822 ) $ ( 77,524 ) Denominator: Weighted-average shares of common stock outstanding, 88,644 86,646 88,342 86,246 Net loss per share, basic and diluted $ ( 0.30 ) $ ( 0.41 ) $ ( 1.11 ) $ ( 0.90 ) The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect for the periods indicated (in thousands): Six Months Ended June 30, 2024 2023 Options to purchase common stock 13,309 7,216 Unvested restricted stock units 6,252 5,598 Unvested performance stock units — 2,868 Shares issuable under employee stock purchase plans 76 123 Total 19,637 15,805 Recently Issued and Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires entities to expand their existing income tax disclosures, specifically related to the rate reconciliation and income taxes paid. This authoritative guidance will be effective for us in fiscal year 2025, with early adoption permitted. The Company is currently evaluating the impact of the ASU, but does not expect any material impact upon adoption . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The Company’s financial assets measured at fair value on a recurring basis were as follows (in thousands): June 30, 2024 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 26,837 $ — $ — $ 26,837 Total cash equivalents 26,837 — — 26,837 Short-term marketable securities U.S. treasuries 76,822 — — 76,822 U.S. government agency bonds 19,803 — — 19,803 Total short-term marketable securities 96,625 — — 96,625 Total cash equivalents and short-term $ 123,462 $ — $ — $ 123,462 December 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 67,070 $ — $ — $ 67,070 Total cash equivalents 67,070 — — 67,070 Short-term marketable securities: U.S. treasuries 96,705 — — 96,705 U.S. government agency bonds 7,649 — — 7,649 Total short-term marketable securities 104,354 — — 104,354 Total cash equivalents and short-term $ 171,424 $ — $ — $ 171,424 The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of assets or liabilities between levels during the three and six months ended June 30, 2024 and 2023. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 4. Investments All investments were considered available-for-sale at June 30, 2024. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s investments by major security type at June 30, 2024 and December 31, 2023 are summarized in the table below (in thousands): June 30, 2024 Amortized Unrealized Unrealized Fair Available-for-sale securities: U.S. treasuries classified as investments $ 76,837 $ 2 $ ( 17 ) $ 76,822 U.S. government agency bonds 19,814 — ( 11 ) 19,803 Total available-for-sale securities $ 96,651 $ 2 $ ( 28 ) $ 96,625 December 31, 2023 Amortized Unrealized Unrealized Fair Available-for-sale securities: U.S. treasuries classified as investments $ 96,688 $ 39 $ ( 22 ) $ 96,705 U.S. government agency bonds 7,652 — ( 3 ) 7,649 Total available-for-sale securities $ 104,340 $ 39 $ ( 25 ) $ 104,354 The amortized cost of available-for-sale securities is adjusted for amortization of premiums and accretion of discounts to maturity. As of June 30, 2024 and December 31, 2023, the aggregate fair value of securities held by the Company in an unrealized loss position for less than twelve months was $ 76.3 million and $ 53.7 million , respectively. These securities had remaining maturities of less than one year . The Company has the intent and ability to hold such securities until recovery and has determined that there has been no material change to their credit risk. As a result, the Company determined it did not hold any investments with a credit loss at June 30, 2024 and December 31, 2023. There were no material realized gains or losses recognized on the sale or maturity of available-for-sale securities during the three and six months ended June 30, 2024 and 2023, and as a result, there were no material reclassifications out of accumulated other comprehensive gain (loss) for the same periods. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 6 Months Ended |
Jun. 30, 2024 | |
Asset Impairment Charges [Abstract] | |
Impairment of Long-Lived Assets | 5. Impairment of Long-Lived Assets During the first quarter of 2024, as a result of the significant sustained decline observed in the Company’s stock price and related market capitalization following our decision to halt the development of lirentelimab, the Company performed an impairment assessment of long-lived assets. The Company determined that the long-lived assets held and used did not have identifiable cash flows that were largely independent of the cash flows of other assets and liabilities. Therefore, the Company evaluated its long-lived assets for impairment on an entity-wide level. The Company concluded that the carrying value of the entity-wide asset group was not recoverable as it exceeded the future net undiscounted cash flows. To measure, allocate and recognize the impairment loss, the Company determined individual fair values of its long-lived assets. The Company utilized the income approach for estimating the fair value of right of use assets and related leasehold improvements by estimating the potential cash flows from a hypothetical fully-furnished sublease and applying a discount rate. The cost replacement method was used to estimate the fair value of laboratory and office equipment, capitalized software, and assets to be placed into service or in the process of construction. These represented Level 3 nonrecurring fair value measurements. Based on this analysis, the Company recorded a $ 27.3 million charge to Impairment of long-lived assets in the Statement of Operations and Comprehensive Loss during the six months ended June 30, 2024, of which $ 12.4 million was attributed to right-of-use assets, $ 13.9 million to leasehold improvements, and $ 1.0 million to furniture. No impairment was recognized on the remaining long-lived assets as their carrying values were not in excess of their fair values. |
Balance Sheet Components and Su
Balance Sheet Components and Supplemental Disclosures | 6 Months Ended |
Jun. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components and Supplemental Disclosures | 6. Balance Sheet Components and Supplemental Disclosures Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): June 30, December 31, 2024 2023 Laboratory equipment $ 7,005 $ 6,993 Furniture and office equipment 1,467 3,947 Leasehold improvements 12,135 32,386 Capitalized software 4,437 4,382 Construction-in-progress 72 69 25,116 47,777 Less accumulated depreciation ( 8,526 ) ( 14,408 ) Property and equipment, net $ 16,590 $ 33,369 Depreciation and amortization expense for the three months ended June 30, 2024 and 2023 was $ 0.9 million and $ 1.5 million , respectively. Depreciation and amortization expense for the six months ended June 30, 2024 and 2023 was $ 1.9 million and $ 3.0 million , respectively. As discussed in Note 5 – Impairment of Long-Lived Assets , the Company recognized long-lived asset impairment charges of $ 13.9 million for its leasehold improvements and $ 1.0 million on furniture during the six months ended June 30, 2024. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, 2024 2023 Accrued contract research and development expense $ 12,704 $ 22,262 Accrued compensation and benefits expense 3,560 8,674 Current portion of operating lease liabilities 3,155 3,250 Other current liabilities 342 628 Total $ 19,761 $ 34,814 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | 7. Leases Operating Leases The Company’s lease obligations primarily relate to leased office and laboratory space under a noncancelable operating lease. In accordance with ASC 842, the Company has performed an evaluation of its other contracts with vendors and has determined that, except for the leases described below, none of its other contracts contain a material lease. 2019 San Carlos Lease In December 2019 , the Company entered into an operating lease agreement for office and laboratory space in San Carlos, California (the “2019 San Carlos Lease”). The contractual term of the 2019 San Carlos Lease is 10.25 years from August 2021 until October 2031 . The 2019 San Carlos Lease provides rent abatements and includes a one-time option to extend the lease term for five years . This option to extend the lease term was not determined to be reasonably certain and therefore has not been included in the Company’s calculation of the associated operating lease liability under ASC 842. The 2019 San Carlos Lease includes monthly base rent amounts escalating over the term of the lease. In addition, the lessor provided for a tenant improvement allowance of up to $ 14.4 million, which was fully utilized and is recorded in lease obligations. On March 27, 2023, the Company entered into an amendment for the 2019 San Carlos Lease, whereby rentable square feet was adjusted to 95,692 square feet and lease payments were reduced by approximately 2.5 % per month, effective from January 1, 2022 through the end of the lease term. The Company accounted for these changes as a modification under ASC 842 and the operating right-of-use asset and lease liability were remeasured during the first quarter of 2023 utilizing an estimated incremental borrowing rate of 10.5 %. Our estimated incremental borrowing rate was based on our estimated rate of interest for a fully collateralized borrowing over a similar term as the remaining lease payments while incorporating our credit risk. As a result of the modification, the right-of-use asset and lease liability decreased by approximately $ 5.6 million. No gain or loss was recognized upon the modification. As discussed in Note 5 – Impairment of Long-Lived Assets , the Company recognized long-lived asset impairment charges of $ 12.4 million on the right-of-use assets relating to the 2019 San Carlos Lease during the six months ended June 30, 2024. Classification of Operating Leases The 2019 San Carlos Lease required a security deposit of $ 1.5 million, which the Company satisfied by establishing a letter of credit secured by restricted cash. As of June 30, 2024 and December 31, 2023, a security deposit of $ 1.5 million for the 2019 San Carlos Lease was recorded as restricted cash in other long-term assets on the Company’s balance sheets. Classification of the Company’s operating lease liabilities included on the Company’s balance sheets at June 30, 2024 and December 31, 2023 was as follows (in thousands): June 30, December 31, 2024 2023 Operating lease liabilities Current portion included in accrued expenses and $ 3,155 $ 3,250 Operating lease liabilities, net of current portion 36,579 38,215 Total operating lease liabilities $ 39,734 $ 41,465 The components of lease costs included in operating expenses in the Company’s statements of operations and comprehensive loss were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Operating lease costs $ 1,404 $ 1,407 $ 2,872 $ 2,876 Variable costs 993 900 1,790 1,839 Total lease costs $ 2,397 $ 2,307 $ 4,662 $ 4,715 Variable costs included in the table above represent amounts the Company pays related to property taxes, insurance, maintenance and repair costs. Cash paid for amounts included in the measurement of the Company’s operating lease liabilities and presented within cash used in operating activities in the statements of cash flows was $ 3.9 million and $ 3.2 million for the six months ended June 30, 2024 and 2023, respectively. Cash received for amounts related to tenant improvements from lessors was $ 0.0 million and $ 0.3 million for the six months ended June 30, 2024 and 2023, respectively. Operating Lease Obligations Future lease payments required under operating leases included on the Company’s balance sheet at June 30, 2024 are as follows (in thousands): Fiscal Year Ending December 31, 2024 (remaining 6 months) $ 3,572 2025 7,287 2026 7,506 2027 7,731 2028 7,963 Thereafter 23,871 Total future lease payments 57,930 Less: Present value adjustment 18,196 Operating lease liabilities $ 39,734 Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used its incremental borrowing rate based on the information available at the lease commencement date. As of June 30, 2024, the weighted-average remaining lease term of the Company’s leases was 7.3 years and the weighted-average discount rate used to determine the operating lease liabilities included on the balance sheet was 10.5 % . As of June 30, 2024 , the Company was not party to any lease agreements containing material residual value guarantees or material restrictive covenants. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 8. Contingencies Indemnification Agreements The Company has entered into indemnification agreements with certain directors and officers that require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. To date, no such matters have arisen and the Company does not believe that the outcome of any claims under indemnification arrangements will have a material adverse effect on its financial positions, results of operations or cash flows. Accordingly, the Company has no t recorded a liability related to such indemnifications as of June 30, 2024 . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 9. Stockholders ’ Equity “At-the-Market” Equity Offering On August 4, 2022, the Company entered into a sales agreement (the “2022 Sales Agreement”) with Cowen and Company, LLC (“Cowen”). Pursuant to the 2022 Sales Agreement, the Company may sell, from time to time, up to an aggregate of $ 75.0 million in gross sales proceeds of its common stock through an “at-the-market” offering (“ATM Offering”) as defined under the Securities Act. The Company will pay a commission equal to 3 % of the gross proceeds from the sale of shares of its common stock under the 2022 Sales Agreement. The $ 75.0 million of common stock that may be offered, issued and sold in the ATM Offering is included in the $ 250.0 million of securities that may be offered, issued and sold by the Company under its registration statement on Form S-3 (File No. 333-265085). The Company expects to use the net proceeds from sales under the 2022 Sales Agreement for general corporate purposes. No shares were sold during the six months ended June 30, 2024 through the Company's ATM Offering. During the six months ended June 30, 2023, the Company sold 0.1 million shares of its common stock at an average price of $ 7.20 per share through its ATM Offering, resulting in proceeds of $ 1.0 million net of commissions. Under the ATM Offering, $ 74.0 million of common stock remain available for future sales as of June 30, 2024 ; however, the Company is not obligated to make any sales under this program. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation Total stock-based compensation expense recognized is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Research and development $ 2,177 $ 4,088 $ 3,450 $ 8,763 General and administrative 4,526 5,733 9,463 11,723 Total $ 6,703 $ 9,821 $ 12,913 $ 20,486 Stock Options The Company’s stock option activity during the six months ended June 30, 2024, is summarized as follows (number of shares in thousands): Weighted- Average Options Exercise Outstanding Price Balance at December 31, 2023 7,968 $ 10.85 Granted 5,933 $ 1.26 Exercised ( 26 ) $ 0.97 Expired ( 218 ) $ 42.04 Forfeited ( 348 ) $ 14.57 Balance at June 30, 2024 13,309 $ 5.99 Options exercisable 5,181 $ 11.07 Options vested and expected to vest 12,704 $ 6.16 Time-based RSUs RSU activity under the 2018 Plan during the six months ended June 30, 2024, is summarized as follows (in thousands, except per share data): Weighted- Average Grant Date Shares Fair Value Balance at December 31, 2023 5,621 $ 10.16 Granted 4,118 $ 1.23 Vested ( 977 ) $ 12.63 Forfeited ( 2,510 ) $ 7.63 Balance at June 30, 2024 6,252 $ 4.91 Performance-based Restricted Stock Units (“PSUs”) As of June 30, 2024, there were no outstanding PSUs. Determining Fair Value We estimate the fair value of share options granted using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of certain assumptions that involve judgment, for which changes can materially affect the resulting estimates of fair value. Starting January 1, 2024, we estimated the expected term based on historical exercise patterns and our expectation of the time that it will take for employees to exercise options still outstanding. Prior to 2024, due to limited trading history, we did not believe that our historical employee exercise data provided reasonable data for estimating our expected term for use in determining the fair value of options. Therefore, for the period prior to 2024, the expected term of options was estimated based on the “simplified method” described by SEC Staff Accounting Bulletin No. 107, Share-Based Payment. There were no other changes to the assumptions and estimates related to determining the fair value of share options disclosed in our 2023 Annual Report on Form 10-K. Employee Stock Purchase Plan In July 2018, the Company’s Board of Directors and stockholders approved the 2018 Employee Stock Purchase Plan (the “2018 ESPP”). As of June 30, 2024, the number of shares available for issuance under the 2018 ESPP was 3,561,225 . During the three and six months ended June 30, 2024, stock-based compensation expense related to the 2018 ESPP was immaterial. During the three and six months ended June 30, 2023 , stock-based compensation expense related to the 2018 ESPP was $ 0.1 million and $ 0.4 million, respectively. |
Defined Contribution Plans
Defined Contribution Plans | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plans | 11. Defined Contribution Plans In January 2018, the Company established a defined contribution plan under Section 401(k) of the Internal Revenue Code (the “401(k) plan”). The 401(k) plan covers all employees who meet defined minimum age and service requirements. Employee contributions are voluntary and are determined on an individual basis, limited to the maximum amount allowable under U.S. federal tax regulations. The Company makes matching contributions of up to 4 % of the eligible employees’ compensation to the 401(k) plan. During the three and six months ended June 30, 2024, the Company made contributions to the 401(k) plan of $ 0.1 million and $ 0.6 million , respectively. During the three and six months ended June 30, 2023 , the Company made contributions to the 401(k) plan of $ 0.2 million and $ 0.6 million, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. The interim balance sheet as of June 30, 2024, the statements of operations and comprehensive loss, statements of stockholders’ equity for the three and six months ended June 30, 2024 and 2023 and statements of cash flows for the six months ended June 30, 2024 and 2023 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s financial position as of June 30, 2024 and its results of operations and comprehensive loss for the three and six months ended June 30, 2024 and 2023 and its cash flows for the six months ended June 30, 2024 and 2023. Certain information and note disclosures normally included in annual audited financial statements prepared in accordance with U.S. GAAP have been omitted. The financial data and the other financial information disclosed in these notes to the interim financial statements are also unaudited. The results of operations for any interim period are not necessarily indicative of the results to be expected for the entire year or for any other future annual or interim period. These interim financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission (“SEC”) on March 14, 2024. |
Use of Estimates | Use of Estimates Management uses significant judgment when making estimates related to common stock valuation and related stock-based compensation expense, accrued research and development expense, valuation of long-lived assets and lease-related assets and liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions or conditions, and those differences could be material to the financial position and results of operations. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to credit risk principally consist of cash, cash equivalents and investments. These financial instruments are currently held in accounts in varying amounts at four separate financial institutions that management believes possess high credit quality. Amounts on deposit with these financial institutions have and will continue to exceed federally-insured limits. The Company has not experienced any losses on its cash deposits. Additionally, the Company’s investment policy limits its investments to certain types of securities issued by or backed by the U.S. government and its agencies. The Company is subject to a number of risks similar to that of other early stage biopharmaceutical companies, including, but not limited to, the need to obtain adequate additional funding, possible failure of current or future clinical trials, its reliance on third-parties to conduct its clinical trials, the need to obtain regulatory and marketing approvals for its product candidates, competitive developments, the need to successfully commercialize and gain market acceptance of the Company’s product candidates, protection of proprietary technology, and the need to secure and maintain adequate manufacturing arrangements with third-parties. If the Company does not successfully commercialize or partner its product candidates, it will be unable to generate product revenue or achieve profitability. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s balance sheets and which, in aggregate, represent the amounts reported in the accompanying statements of cash flows (in thousands): June 30, December 31, 2024 2023 Cash and cash equivalents $ 26,496 $ 66,440 Restricted cash in other long-term assets 1,472 1,472 Total $ 27,968 $ 67,912 June 30, December 31, 2023 2022 Cash and cash equivalents $ 67,381 $ 87,217 Restricted cash in other long-term assets 1,472 1,472 Total $ 68,853 $ 88,689 Restricted cash at June 30, 2024 represents $ 1.5 million in security deposits for the lease of the Company’s facility in San Carlos, California. The security deposit is in the form of a letter of credit secured by restricted cash and is recorded in other long-term assets on the Company’s balance sheets |
Investments | Investments The Company invests in marketable securities, primarily securities issued by the U.S. government and its agencies. The Company’s investments are considered available-for-sale and are classified as current assets even when the stated maturities of the underlying securities exceed one year from the date of the current balance sheet being reported. This classification reflects management’s ability and intent to utilize proceeds from the sale of such investments to fund ongoing operations. Unrealized gains and losses are excluded from earnings and are reported as a component of accumulated other comprehensive gain (loss) unless the decline in fair value of the investments is attributable to expected credit losses and if it is more likely than not that the Company will be required or will intend to sell the investment before recovery of its amortized cost basis. The cost of securities sold is determined using the specific-identification method. Interest earned and adjustments for the amortization of premiums and discounts on investments are included in interest income on the statements of operations and comprehensive loss. Realized gains and losses on the sale of investments are included in other expense, net, on the statements of operations and comprehensive loss. |
Valuation of Long-lived Assets | Valuation of Long-lived Assets Long-lived assets, including property and equipment and finite-lived intangible assets, are reviewed for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate from the use and eventual disposition. If such review indicates that the carrying amount of the long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. We have recorded impairment charges during the six months ended June 30, 2024. For a further description of the impairment, see Note 5 – Impairment of Long-Lived Assets in the accompanying notes. |
Operating Leases | Operating Leases The Company accounts for its leases in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 842, “Leases” (“ASC 842”). Right-of-use assets represent the Company’s right to use an underlying asset over the lease term and include any lease payments made prior to the lease commencement date and are reduced by lease incentives. Lease liabilities represent the present value of the total lease payments over the lease term, calculated using the Company’s incremental borrowing rate. In determining the Company’s incremental borrowing rate, consideration is given to the term of the lease and the Company’s credit risk. The Company recognizes options to extend a lease when it is reasonably certain that it will exercise such extension. The Company does not recognize options to terminate a lease when it is reasonably certain that it will not exercise such early termination options. Lease expense is recognized on a straight-line basis over the expected lease term. |
Accrued Research and Development Expense | Accrued Research and Development Expense Service agreements with contract development and manufacturing organizations (“CDMOs”), clinical contract research organizations (“CROs”) and clinical investigative sites comprise a significant component of the Company’s research and development activities. External costs for these vendors are recognized as the services are incurred. The Company accrues for expenses resulting from obligations under agreements with its third-parties for which the timing of payments does not match the periods over which the materials or services are provided to the Company. Accruals are recorded based on estimates of services received and efforts expended pursuant to agreements established with CDMOs, clinical CROs, clinical investigative sites and other outside service providers. These estimates are typically based on contracted amounts applied to the proportion of work performed and determined through analysis with internal personnel and external service providers as to the progress or stage of completion of the services. The Company makes judgements and estimates in determining the accrual balance in each reporting period. In the event advance payments are made to a CDMO, clinical CRO, clinical investigative site or other outside service provider, the payments are recorded within prepaid expenses and other current assets or other long-term assets, as appropriate, and subsequently recognized as research and development expense when the associated services have been performed. As actual costs become known, the Company adjusts its liabilities and assets. Inputs, such as the extent of services received and the duration of services to be performed, may vary from the Company’s estimates, which will result in adjustments to research and development expense in future periods. Changes in these estimates that result in material changes to the Company’s accruals could materially affect the Company’s results of operations. The Company’s historical estimates have not been materially different from actual amounts recorded. |
Research and Development Expense | Research and Development Expense Research and development costs are expensed as incurred. Research and development costs include, among others, consulting costs, salaries, benefits, travel, stock-based compensation, laboratory supplies and other non-capital equipment utilized for in-house research, allocation of facilities and overhead costs and external costs paid to third-parties that conduct research and development activities on the Company’s behalf. Costs to terminate commitments with third-party suppliers performing research and development activities and amounts incurred in connection with license agreements, including milestone payments, are also included in research and development expense. Advance payments for goods or services to be rendered in the future for use in research and development activities are deferred and included in prepaid expenses and other current assets or other long-term assets, as appropriate. The deferred amounts are expensed as the related goods are delivered or the services are performed. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as the change in stockholders’ equity during a period from transactions and other events and circumstances from non-owner sources. The differences between net loss and comprehensive loss for the three and six months ended June 30, 2024 and 2023 are a result of unrealized gains and losses on the Company’s investments in marketable securities included in current assets on the Company’s balance sheets. |
Net Loss per Share | Net Loss per Share The Company calculates basic net loss per share by dividing the net loss attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. The Company calculates diluted net loss per share after giving consideration to all potentially dilutive securities outstanding during the period using the treasury-stock and if-converted methods, except where the effect of including such securities would be anti-dilutive. Because the Company has reported net losses since inception, the effect from potentially dilutive securities would have been anti-dilutive and therefore has been excluded from the calculation of diluted net loss per share. Basic and diluted net loss per share was calculated as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Numerator: Net loss $ ( 26,676 ) $ ( 35,120 ) $ ( 97,822 ) $ ( 77,524 ) Denominator: Weighted-average shares of common stock outstanding, 88,644 86,646 88,342 86,246 Net loss per share, basic and diluted $ ( 0.30 ) $ ( 0.41 ) $ ( 1.11 ) $ ( 0.90 ) The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect for the periods indicated (in thousands): Six Months Ended June 30, 2024 2023 Options to purchase common stock 13,309 7,216 Unvested restricted stock units 6,252 5,598 Unvested performance stock units — 2,868 Shares issuable under employee stock purchase plans 76 123 Total 19,637 15,805 |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires entities to expand their existing income tax disclosures, specifically related to the rate reconciliation and income taxes paid. This authoritative guidance will be effective for us in fiscal year 2025, with early adoption permitted. The Company is currently evaluating the impact of the ASU, but does not expect any material impact upon adoption . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s balance sheets and which, in aggregate, represent the amounts reported in the accompanying statements of cash flows (in thousands): June 30, December 31, 2024 2023 Cash and cash equivalents $ 26,496 $ 66,440 Restricted cash in other long-term assets 1,472 1,472 Total $ 27,968 $ 67,912 June 30, December 31, 2023 2022 Cash and cash equivalents $ 67,381 $ 87,217 Restricted cash in other long-term assets 1,472 1,472 Total $ 68,853 $ 88,689 |
Calculation of Basic and Diluted Net Loss Per Share | Basic and diluted net loss per share was calculated as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Numerator: Net loss $ ( 26,676 ) $ ( 35,120 ) $ ( 97,822 ) $ ( 77,524 ) Denominator: Weighted-average shares of common stock outstanding, 88,644 86,646 88,342 86,246 Net loss per share, basic and diluted $ ( 0.30 ) $ ( 0.41 ) $ ( 1.11 ) $ ( 0.90 ) |
Summary of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share | The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect for the periods indicated (in thousands): Six Months Ended June 30, 2024 2023 Options to purchase common stock 13,309 7,216 Unvested restricted stock units 6,252 5,598 Unvested performance stock units — 2,868 Shares issuable under employee stock purchase plans 76 123 Total 19,637 15,805 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The Company’s financial assets measured at fair value on a recurring basis were as follows (in thousands): June 30, 2024 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 26,837 $ — $ — $ 26,837 Total cash equivalents 26,837 — — 26,837 Short-term marketable securities U.S. treasuries 76,822 — — 76,822 U.S. government agency bonds 19,803 — — 19,803 Total short-term marketable securities 96,625 — — 96,625 Total cash equivalents and short-term $ 123,462 $ — $ — $ 123,462 December 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 67,070 $ — $ — $ 67,070 Total cash equivalents 67,070 — — 67,070 Short-term marketable securities: U.S. treasuries 96,705 — — 96,705 U.S. government agency bonds 7,649 — — 7,649 Total short-term marketable securities 104,354 — — 104,354 Total cash equivalents and short-term $ 171,424 $ — $ — $ 171,424 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost, Gross Unrealized Holding Gains or Losses, and Fair Value of Investments | All investments were considered available-for-sale at June 30, 2024. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s investments by major security type at June 30, 2024 and December 31, 2023 are summarized in the table below (in thousands): June 30, 2024 Amortized Unrealized Unrealized Fair Available-for-sale securities: U.S. treasuries classified as investments $ 76,837 $ 2 $ ( 17 ) $ 76,822 U.S. government agency bonds 19,814 — ( 11 ) 19,803 Total available-for-sale securities $ 96,651 $ 2 $ ( 28 ) $ 96,625 December 31, 2023 Amortized Unrealized Unrealized Fair Available-for-sale securities: U.S. treasuries classified as investments $ 96,688 $ 39 $ ( 22 ) $ 96,705 U.S. government agency bonds 7,652 — ( 3 ) 7,649 Total available-for-sale securities $ 104,340 $ 39 $ ( 25 ) $ 104,354 |
Balance Sheet Components and _2
Balance Sheet Components and Supplemental Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): June 30, December 31, 2024 2023 Laboratory equipment $ 7,005 $ 6,993 Furniture and office equipment 1,467 3,947 Leasehold improvements 12,135 32,386 Capitalized software 4,437 4,382 Construction-in-progress 72 69 25,116 47,777 Less accumulated depreciation ( 8,526 ) ( 14,408 ) Property and equipment, net $ 16,590 $ 33,369 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, 2024 2023 Accrued contract research and development expense $ 12,704 $ 22,262 Accrued compensation and benefits expense 3,560 8,674 Current portion of operating lease liabilities 3,155 3,250 Other current liabilities 342 628 Total $ 19,761 $ 34,814 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Summary of Classification of Company's Operating Lease Liabilities | Classification of the Company’s operating lease liabilities included on the Company’s balance sheets at June 30, 2024 and December 31, 2023 was as follows (in thousands): June 30, December 31, 2024 2023 Operating lease liabilities Current portion included in accrued expenses and $ 3,155 $ 3,250 Operating lease liabilities, net of current portion 36,579 38,215 Total operating lease liabilities $ 39,734 $ 41,465 |
Summary of Components of Lease Costs | The components of lease costs included in operating expenses in the Company’s statements of operations and comprehensive loss were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Operating lease costs $ 1,404 $ 1,407 $ 2,872 $ 2,876 Variable costs 993 900 1,790 1,839 Total lease costs $ 2,397 $ 2,307 $ 4,662 $ 4,715 |
Summary of Future Lease Payments Required Under Operating Leases | Future lease payments required under operating leases included on the Company’s balance sheet at June 30, 2024 are as follows (in thousands): Fiscal Year Ending December 31, 2024 (remaining 6 months) $ 3,572 2025 7,287 2026 7,506 2027 7,731 2028 7,963 Thereafter 23,871 Total future lease payments 57,930 Less: Present value adjustment 18,196 Operating lease liabilities $ 39,734 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Total Stock-Based Compensation Expense Recognized | Total stock-based compensation expense recognized is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Research and development $ 2,177 $ 4,088 $ 3,450 $ 8,763 General and administrative 4,526 5,733 9,463 11,723 Total $ 6,703 $ 9,821 $ 12,913 $ 20,486 |
Summary of Stock Option Activity | The Company’s stock option activity during the six months ended June 30, 2024, is summarized as follows (number of shares in thousands): Weighted- Average Options Exercise Outstanding Price Balance at December 31, 2023 7,968 $ 10.85 Granted 5,933 $ 1.26 Exercised ( 26 ) $ 0.97 Expired ( 218 ) $ 42.04 Forfeited ( 348 ) $ 14.57 Balance at June 30, 2024 13,309 $ 5.99 Options exercisable 5,181 $ 11.07 Options vested and expected to vest 12,704 $ 6.16 |
Time-based Restricted Stock Units | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Restricted Stock Units | RSU activity under the 2018 Plan during the six months ended June 30, 2024, is summarized as follows (in thousands, except per share data): Weighted- Average Grant Date Shares Fair Value Balance at December 31, 2023 5,621 $ 10.16 Granted 4,118 $ 1.23 Vested ( 977 ) $ 12.63 Forfeited ( 2,510 ) $ 7.63 Balance at June 30, 2024 6,252 $ 4.91 |
Organization and Business - Add
Organization and Business - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) Segment | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||
Number of reportable segments | Segment | 1 | ||||||
Net loss | $ 26,676 | $ 71,146 | $ 35,120 | $ 42,404 | $ 97,822 | $ 77,524 | |
Reduction in company's workforce | 50% | ||||||
Accumulated deficit | 1,216,299 | $ 1,216,299 | $ 1,118,477 | ||||
Cash, cash equivalents and marketable securities | $ 123,100 | $ 123,100 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 26,496 | $ 66,440 | $ 67,381 | $ 87,217 |
Restricted cash in other long-term assets | 1,472 | 1,472 | 1,472 | 1,472 |
Total | $ 27,968 | $ 67,912 | $ 68,853 | $ 88,689 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Restricted cash in other long term assets, deposit for lease facility | $ 1,472 | $ 1,472 | $ 1,472 | $ 1,472 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||||
Net Income (Loss) | $ (26,676) | $ (71,146) | $ (35,120) | $ (42,404) | $ (97,822) | $ (77,524) |
Denominator: | ||||||
Weighted-average shares of common stock outstanding, basic | 88,644 | 86,646 | 88,342 | 86,246 | ||
Weighted-average shares of common stock outstanding, diluted | 88,644 | 86,646 | 88,342 | 86,246 | ||
Net loss per share, basic | $ (0.3) | $ (0.41) | $ (1.11) | $ (0.9) | ||
Net loss per share, diluted | $ (0.3) | $ (0.41) | $ (1.11) | $ (0.9) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss per Share (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 19,637 | 15,805 |
Employee Stock Option | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 13,309 | 7,216 |
Unvested Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 6,252 | 5,598 |
Unvested Performance Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 0 | 2,868 |
Shares Issuable under Employee Stock Purchase Plans | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 76 | 123 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | $ 96,625 | $ 104,354 |
Fair Value, Measurements, Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 26,837 | 67,070 |
Short-term marketable securities | 96,625 | 104,354 |
Total cash equivalents and short-term marketable securities | 123,462 | 171,424 |
Fair Value, Measurements, Recurring Basis | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 26,837 | 67,070 |
Short-term marketable securities | 96,625 | 104,354 |
Total cash equivalents and short-term marketable securities | 123,462 | 171,424 |
Fair Value, Measurements, Recurring Basis | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term marketable securities | 0 | 0 |
Total cash equivalents and short-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term marketable securities | 0 | 0 |
Total cash equivalents and short-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 26,837 | 67,070 |
Fair Value, Measurements, Recurring Basis | Money Market Funds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 26,837 | 67,070 |
Fair Value, Measurements, Recurring Basis | Money Market Funds | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Money Market Funds | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring Basis | U.S. treasuries | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 76,822 | 96,705 |
Fair Value, Measurements, Recurring Basis | U.S. treasuries | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 76,822 | 96,705 |
Fair Value, Measurements, Recurring Basis | U.S. treasuries | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | U.S. treasuries | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | U.S. government agency bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 19,803 | 7,649 |
Fair Value, Measurements, Recurring Basis | U.S. government agency bonds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 19,803 | 7,649 |
Fair Value, Measurements, Recurring Basis | U.S. government agency bonds | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | U.S. government agency bonds | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term marketable securities | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | ||||
Transfers of assets between level 1 to level 2 | $ 0 | $ 0 | $ 0 | $ 0 |
Transfers of assets between level 2 to level 1 | 0 | 0 | 0 | 0 |
Transfers of liabilities between level 1 to level 2 | 0 | 0 | 0 | 0 |
Transfers of liabilities between level 2 to level 1 | 0 | 0 | 0 | 0 |
Transfers of assets into level 3 | 0 | 0 | 0 | 0 |
Transfers of assets out of level 3 | 0 | 0 | 0 | 0 |
Transfers of liabilities into level 3 | 0 | 0 | 0 | 0 |
Transfers of liabilities out of level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
Investments - ummary of Amortiz
Investments - ummary of Amortized Cost, Gross Unrealized Holding Gains or Losses, and Fair Value of Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost Basis | $ 96,651 | $ 104,340 |
Unrealized Gains | 2 | 39 |
Unrealized Losses | (28) | (25) |
Fair Value | 96,625 | 104,354 |
Investments | U.S. treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost Basis | 76,837 | 96,688 |
Unrealized Gains | 2 | 39 |
Unrealized Losses | (17) | (22) |
Fair Value | 76,822 | 96,705 |
Investments | U.S. government agency bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost Basis | 19,814 | 7,652 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (11) | (3) |
Fair Value | $ 19,803 | $ 7,649 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Schedule Of Available For Sale Securities [Line Items] | |||||
Available-for-sale securities in an unrealized loss position, fair value | $ 76.3 | $ 76.3 | $ 53.7 | ||
Available for sale securities gross realized gains or losses on sale or maturity | $ 0 | $ 0 | $ 0 | $ 0 | |
Maximum | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Available-for-sale securities, remaining maturity period | 1 year | 1 year |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Line Items] | ||||
Long-lived asset impairment charges | $ 0 | $ 0 | $ 27,347 | $ 0 |
Leasehold Improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Long-lived asset impairment charges | 13,900 | |||
Right Of Use Asset | ||||
Property, Plant and Equipment [Line Items] | ||||
Long-lived asset impairment charges | 12,400 | |||
Furniture And Office Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Long-lived asset impairment charges | $ 1,000 |
Balance Sheet Components and _3
Balance Sheet Components and Supplemental Disclosures - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 25,116 | $ 47,777 |
Less accumulated depreciation | (8,526) | (14,408) |
Property and equipment, net | 16,590 | 33,369 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 7,005 | 6,993 |
Furniture And Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,467 | 3,947 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 12,135 | 32,386 |
Capitalized Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,437 | 4,382 |
Construction In Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 72 | $ 69 |
Balance Sheet Components and _4
Balance Sheet Components and Supplemental Disclosures - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Balance Sheet Related Disclosures [Line Items] | ||||
Depreciation and amortization | $ 900 | $ 1,500 | $ 1,945 | $ 3,045 |
Long-lived asset impairment charges | $ 0 | $ 0 | 27,347 | $ 0 |
Leasehold Improvements | ||||
Balance Sheet Related Disclosures [Line Items] | ||||
Long-lived asset impairment charges | 13,900 | |||
Furniture And Office Equipment | ||||
Balance Sheet Related Disclosures [Line Items] | ||||
Long-lived asset impairment charges | $ 1,000 |
Balance Sheet Components and _5
Balance Sheet Components and Supplemental Disclosures - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued contract research and development expense | $ 12,704 | $ 22,262 |
Accrued compensation and benefits expense | 3,560 | 8,674 |
Current portion of operating lease liabilities | 3,155 | 3,250 |
Other current liabilities | 342 | 628 |
Total | $ 19,761 | $ 34,814 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 1 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Mar. 27, 2023 USD ($) ft² | |
Lessee, Lease, Description [Line Items] | |||||
Cash paid for amounts included in measurement of operating lease liabilities | $ 3.9 | $ 3.2 | |||
Cash received for amounts related to tenant improvement allowances from lessors | $ 0 | $ 0.3 | |||
Operating lease, weighted-average remaining lease term | 7 years 3 months 18 days | ||||
Operating lease, weighted-average discount rate | 10.50% | ||||
2019 San Carlos Lease Agreement | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease agreement initiation period | 2019-12 | ||||
Base term of lease | 10 years 3 months | ||||
Lessee operating lease expected termination Period | 2031-10 | ||||
Lease term extension period | 5 years | ||||
Area of lease | ft² | 95,692 | ||||
Percentage of lease payments reduced | 2.50% | ||||
Incremental borrowing rate | 10.50% | ||||
Right of use asset and lease liability decreased | $ 5.6 | ||||
Long-lived asset impairment charges | $ 12.4 | ||||
Security deposit in the form of letter of credit secured by restricted cash | $ 1.5 | $ 1.5 | |||
2019 San Carlos Lease Agreement | Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Tenant improvement allowance | $ 14.4 |
Leases - Summary of Classificat
Leases - Summary of Classification of Company's Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Operating lease liabilities | ||
Current portion included in accrued expenses and other current liabilities | $ 3,155 | $ 3,250 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Operating lease liabilities, net of current portion | $ 36,579 | $ 38,215 |
Total operating lease liabilities | $ 39,734 | $ 41,465 |
Leases - Summary of Components
Leases - Summary of Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease costs | $ 1,404 | $ 1,407 | $ 2,872 | $ 2,876 |
Variable costs | 993 | 900 | 1,790 | 1,839 |
Total lease costs | $ 2,397 | $ 2,307 | $ 4,662 | $ 4,715 |
Leases - Summary of Future Leas
Leases - Summary of Future Lease Payments Required Under Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | ||
2024 (remaining 6 months) | $ 3,572 | |
2025 | 7,287 | |
2026 | 7,506 | |
2027 | 7,731 | |
2028 | 7,963 | |
Thereafter | 23,871 | |
Total future lease payments | 57,930 | |
Present value adjustment | 18,196 | |
Operating lease liabilities | $ 39,734 | $ 41,465 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) - USD ($) shares in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Loss Contingencies [Line Items] | ||
Common stock, shares issued | 88,851 | 87,750 |
Indemnification Agreements [Member] | ||
Loss Contingencies [Line Items] | ||
Liability related to indemnifications | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Aug. 04, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | |
Class of Stock [Line Items] | |||
Proceeds from sale of common stock, net of commission | $ 0 | $ 990 | |
At-the-Market Equity Offering | |||
Class of Stock [Line Items] | |||
Sale of stock, average price per share | $ 7.2 | ||
Aggregate amount available to be sold under sales agreement | $ 75,000 | ||
Commission rate | 3% | ||
Amount of securities offered under S-3 registartion statement | $ 250,000 | ||
Proceeds from sale of common stock, net of commission | $ 1,000 | ||
Common stock sold (in Shares) | 0 | 100,000 | |
Common stock available for sale | $ 74,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Total Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 6,703 | $ 9,821 | $ 12,913 | $ 20,486 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 2,177 | 4,088 | 3,450 | 8,763 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 4,526 | $ 5,733 | $ 9,463 | $ 11,723 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Options Outstanding, Beginning balance | shares | 7,968 |
Options Outstanding, Granted | shares | 5,933 |
Options Outstanding, Exercised | shares | (26) |
Options outstanding, Expired | shares | (218) |
Options Outstanding, forfeited | shares | (348) |
Options Outstanding, Ending balance | shares | 13,309 |
Options Outstanding, Options exercisable | shares | 5,181 |
Options Outstanding, Options vested and expected to vest | shares | 12,704 |
Weighted Average Exercise Price, Beginning balance | $ / shares | $ 10.85 |
Weighted Average Exercise Price, Granted | $ / shares | 1.26 |
Weighted Average Exercise Price, Exercised | $ / shares | 0.97 |
Weighted Average Exercise Price, Expired | $ / shares | 42.04 |
Weighted Average Exercise Price, Forfeited | $ / shares | 14.57 |
Weighted Average Exercise Price, Ending balance | $ / shares | 5.99 |
Weighted Average Exercise Price, Options exercisable | $ / shares | 11.07 |
Weighted Average Exercise Price, Options vested and expected to vest | $ / shares | $ 6.16 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of RSU Activity Under 2018 Plan (Details) - Time-based Restricted Stock Units shares in Thousands | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Number of Shares | |
Balance at December 31, 2023 | shares | 5,621 |
Granted | shares | 4,118 |
Vested | shares | (977) |
Forfeited/cancelled | shares | (2,510) |
Balance at June 30, 2024 | shares | 6,252 |
Weighted-Average Grant Date Fair Value | |
Balance at December 31, 2023 | $ / shares | $ 10.16 |
Granted | $ / shares | 1.23 |
Vested | $ / shares | 12.63 |
Forfeited/cancelled | $ / shares | 7.63 |
Balance at June 30, 2024 | $ / shares | $ 4.91 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 6,703 | $ 9,821 | $ 12,913 | $ 20,486 |
2018 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares available for issuance | 3,561,225 | 3,561,225 | ||
Total stock-based compensation expense | $ 0 | $ 100 | $ 0 | $ 400 |
Defined Contribution Plans - Ad
Defined Contribution Plans - Additional Information (Details) - 401(K) Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Contributions made by employer | $ 0.1 | $ 0.2 | $ 0.6 | $ 0.6 |
Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer contribution matching percentage | 4% | 4% | 4% | 4% |