DEI Document
DEI Document - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 16, 2018 | |
Entity [Abstract] | ||
Entity Registrant Name | Menlo Therapeutics Inc. | |
Entity Central Index Key | 1,566,044 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 22,977,998 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 73,584 | $ 10,206 |
Short-term investments | 80,171 | 49,295 |
Accounts receivable | 93 | 786 |
Prepaid expenses and other current assets | 2,315 | 3,574 |
Total current assets | 156,163 | 63,861 |
Long-term investments | 10,425 | 2,978 |
Property and equipment, net | 22 | 28 |
Other long-term assets | 306 | |
Total assets | 166,916 | 66,867 |
Current liabilities: | ||
Accounts payable | 5,089 | 2,462 |
Accrued expenses and other current liabilities | 3,560 | 3,559 |
Deferred revenue, current | 1,796 | |
Total current liabilities | 8,649 | 7,817 |
Deferred revenue, long-term | 6,735 | |
Other non-current liabilities | 78 | 22 |
Total liabilities | 8,727 | 14,574 |
Commitments and contingencies (see Note 7) | ||
Stockholders’ equity (deficit): | ||
Preferred stock: $0.0001 par value; 20,000,000 shares and no shares authorized at June 30, 2018 and December 2017, respectively; no shares issued and outstanding at June 30, 2018 and December 31, 2017 | 0 | 0 |
Common stock: $0.0001 par value; 300,000,000 shares and 55,000,000 shares authorized at June 30, 2018 and December 31, 2017, respectively; 22,977,998 and 5,298,593 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 3 | 1 |
Additional paid-in capital | 238,530 | 2,207 |
Accumulated other comprehensive loss | (150) | (51) |
Accumulated deficit | (80,194) | (59,191) |
Total stockholders’ equity (deficit) | 158,189 | (57,034) |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | 166,916 | 66,867 |
Series A Convertible Preferred Stock | ||
Current liabilities: | ||
Convertible preferred stock | 0 | 14,183 |
Series B Convertible Preferred Stock | ||
Current liabilities: | ||
Convertible preferred stock | 0 | 44,820 |
Series C Convertible Preferred Stock | ||
Current liabilities: | ||
Convertible preferred stock | $ 0 | $ 50,324 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Preferred stock, par value per share (in USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (shares) | 20,000,000 | 0 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value per share (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (shares) | 300,000,000 | 55,000,000 |
Common stock issued (shares) | 22,977,998 | 5,298,593 |
Common stock outstanding (shares) | 22,977,998 | 5,298,593 |
Series A Convertible Preferred Stock | ||
Convertible preferred stock, par value per share (in USD per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock authorized (shares) | 0 | 14,300 |
Convertible preferred stock issued (shares) | 0 | 14,300 |
Convertible preferred stock outstanding (shares) | 0 | 14,300 |
Convertible preferred stock, liquidation value | $ 0 | $ 14,300 |
Series B Convertible Preferred Stock | ||
Convertible preferred stock, par value per share (in USD per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock authorized (shares) | 0 | 14,106,583 |
Convertible preferred stock issued (shares) | 0 | 14,106,583 |
Convertible preferred stock outstanding (shares) | 0 | 14,106,583 |
Convertible preferred stock, liquidation value | $ 0 | $ 45,000 |
Series C Convertible Preferred Stock | ||
Convertible preferred stock, par value per share (in USD per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock authorized (shares) | 0 | 14,201,878 |
Convertible preferred stock issued (shares) | 0 | 11,854,463 |
Convertible preferred stock outstanding (shares) | 0 | 11,854,463 |
Convertible preferred stock, liquidation value | $ 0 | $ 50,500 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Collaboration and license revenue | $ 10,143 | $ 449 | $ 10,640 | $ 898 |
Type of Revenue [Extensible List] | us-gaap:LicenseAndServiceMember | us-gaap:LicenseAndServiceMember | us-gaap:LicenseAndServiceMember | us-gaap:LicenseAndServiceMember |
Operating expenses: | ||||
Research and development | $ 16,226 | $ 5,460 | $ 27,246 | $ 10,452 |
General and administrative | 3,090 | 1,214 | 5,787 | 2,226 |
Total operating expenses | 19,316 | 6,674 | 33,033 | 12,678 |
Loss from operations | (9,173) | (6,225) | (22,393) | (11,780) |
Interest income and other expense, net | 826 | 72 | 1,388 | 153 |
Net loss attributable to common stockholders | (8,347) | (6,153) | (21,005) | (11,627) |
Other comprehensive loss: | ||||
Unrealized gain (loss) on available-for-sale securities | 53 | 8 | (98) | 4 |
Comprehensive loss | $ (8,294) | $ (6,145) | $ (21,103) | $ (11,623) |
Net loss attributable to common stockholders per share, basic and diluted | $ (0.36) | $ (1.21) | $ (1.04) | $ (2.29) |
Weighted-average number of common shares used to compute basic and diluted net loss per share | 22,872,196 | 5,092,331 | 20,242,341 | 5,082,026 |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net loss | $ (21,005) | $ (11,627) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 6 | 4 |
Amortization of premium on investment securities | (320) | 87 |
Stock-based compensation expense | 1,569 | 628 |
Change in operating assets and liabilities: | ||
Accounts receivable | 693 | |
Prepaid expenses and other current assets | 1,259 | (207) |
Other long-term assets | (306) | 66 |
Accounts payable | 2,628 | 477 |
Accrued expenses and other current liabilities | 7 | 5,939 |
Deferred revenue | (8,531) | (898) |
Other non-current liabilities | 56 | (16) |
Net cash used in operating activities | (23,944) | (5,547) |
Investing activities | ||
Purchase of investments | (83,371) | (9,225) |
Proceeds from sales of investments | 5,100 | 2,701 |
Proceeds from maturities of investments | 40,170 | 21,460 |
Net cash (used in) provided by investing activities | (38,101) | 14,936 |
Financing activities | ||
Proceeds from issuance of common stock, net of issuance costs | 125,423 | |
Net cash provided by financing activities | 125,423 | |
Net increase in cash and cash equivalents | 63,378 | 9,389 |
Cash and cash equivalents at beginning of period | 10,206 | 4,027 |
Cash and cash equivalents at end of period | 73,584 | $ 13,416 |
Non-cash financing activities | ||
Conversion of preferred stock to common stock | $ 109,327 |
Formation and Business of the C
Formation and Business of the Company | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Formation and Business of the Company | 1. Formation and Business of the Company Menlo Therapeutics Inc., or the “Company”, is a late‑stage biopharmaceutical company focused on the development and commercialization of serlopitant for the treatment of pruritus, or itch, associated with various conditions such as prurigo nodularis, psoriasis and chronic pruritus of unknown origin, as well as for the treatment of refractory chronic cough, a cough that persists for at least eight weeks despite treatment of any identified underlying cause. The Company believes that its product candidate, serlopitant, a highly selective once‑daily, oral small molecule inhibitor of the neurokinin 1, or NK 1 The Company was incorporated in Delaware in October 2011. Since commencing operations, the Company has devoted substantially all of its resources to developing its product candidate, serlopitant, including conducting clinical trials and providing general and administrative support for these operations. Initial Public Offering In January 2018, the Company completed its initial public offering (“IPO”) of shares of its common stock, pursuant to which the Company issued 8,050,000 shares of common stock, which includes 1,050,000 shares issued pursuant to the underwriter’s option to purchase additional shares, and received net proceeds of approximately $125.4 million, after deducting underwriting discounts, commissions and offering expenses. In connection with the completion of the Company's IPO, all shares of convertible preferred stock converted into 9,629,405 shares of common stock. Liquidity and Capital Resources The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The financial statements do not reflect any adjustments relating to the recoverability and reclassification of assets and liabilities that might be necessary if the Company is unable to continue as a going concern. Since inception, the Company has incurred losses and negative cash flows from operations. For the six months ended June 30, 2018, the Company incurred a net loss of $21.0 million and used Management expects to continue to incur additional substantial losses in the foreseeable future as a result of the Company’s research and development activities. Management plans to finance operations through equity or debt financings or other capital sources, including potential collaborations or other strategic transactions. There can be no assurances that, in the event that the Company requires additional financing, such financing will be available on terms which are favorable to the Company, or at all. If the Company is unable to raise additional funding to meet its working capital needs in the future, it will be forced to delay or reduce the scope of its research programs and/or limit or cease its operations. The Company believes that its existing cash, cash equivalents and investments |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The accompanying financial information for the three and six months ended June 30, 2018 and 2017 is unaudited. These unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In management’s opinion, the unaudited interim condensed financial statements have been prepared on the same basis as the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, and include all adjustments, which include only normal and recurring adjustments necessary for the fair presentation of the Company’s statement of financial position as of June 30, 2018, its statements of operations and comprehensive loss for the three and six months ended June 30, 2018 and 2017 and its statements of cash flows for the six months ended June 30, 2018 and 2017. The results for the three and six months ended June 30, 2018 are not necessarily indicative of the results expected for the full fiscal year or any other period(s). The financial statements and related disclosures have been prepared with the presumption that users of the interim financial statements have read or have access to the audited financial statements for the preceding fiscal year. Accordingly, these financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K for the year ended December 31, 2017, as filed with the SEC on March 28, 2018. Reverse Stock Split On January 8, 2018, the Company effected a reverse split of shares of the Company’s common stock at a ratio of 1-for-2.6975 pursuant to an amendment to the amended and restated certificate of incorporation approved by the Company’s board of directors and stockholders. The par value and the authorized shares of the common stock were not adjusted as a result of the reverse split. All issued and outstanding common stock share and per share amounts contained in the financial statements have been retroactively adjusted to reflect this reverse split for all periods presented, and the conversion ratio of the preferred stock was adjusted accordingly. Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. All long‑lived assets are maintained in the United States of America. Use of Estimates Preparation of financial statements in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting periods covered by the financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, stock‑based compensation expense, the resolution of uncertain tax positions and valuation allowance and accruals for research and development costs. Management bases its estimates on historical experience on various 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 materially from those estimates. Research and Development Expenses Research and development costs are expensed as incurred. Substantially all of the Company’s research and development expenses consist of expenses incurred in connection with the development of serlopitant. These expenses include certain payroll and personnel expenses including stock‑based compensation expense, consulting costs, contract manufacturing costs and fees paid to clinical research organizations, or CROs, to conduct research and development. Non-refundable advance payments for goods or services that will be used or rendered for future research and development activities are deferred and capitalized and recognized as an expense as the goods are delivered or the related services are performed. The Company estimates non‑clinical study and clinical trial expenses based on the services performed pursuant to contracts with research institutions and clinical research organizations that conduct and manage non‑clinical studies and clinical trials on its behalf. In accruing service fees, the Company estimates the time period over which services will be performed and the level of effort to be expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered. Stock-Based Compensation The Company measures and recognizes compensation expense for all stock‑based awards made to employees, directors and non‑employees, based on estimated fair values recognized using the straight‑line method over the requisite service period. The fair value of options to purchase common stock granted to employees is estimated on the grant date using the Black‑Scholes option valuation model. The calculation of stock‑based compensation expense requires that the Company make certain assumptions and judgments about a number of complex and subjective variables used in the Black‑Scholes model, including the expected term, expected volatility of the underlying common stock, and risk‑free interest rate. The Company accounts for options issued to non‑employees using the Black‑Scholes option valuation model and is measured and recognized as the stock options are earned. Revenue Recognition The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"). For the Company’s collaboration agreement, which is discussed further under Note 5, the Company identifies the performance obligations, determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) the performance obligation is satisfied. The Company identifies the performance obligations included within the agreement and evaluates which performance obligations are distinct. Upfront payments for licenses are evaluated to determine if the license is capable of being distinct from the obligations of the Company to participate on certain development and/or commercialization committees with the collaboration partners and supply manufactured drug product for clinical trials. For performance obligations that the Company satisfies over time, the Company utilizes the input method and revenue is recognized by consistently applying a method of measuring progress toward complete satisfaction of that performance obligation. The Company periodically reviews its estimated periods of performance based on the progress under each arrangement and accounts for the impact of any changes in estimated periods of performance on a prospective basis. Milestone payments are a form of variable consideration as the payments are contingent upon achievement of a substantive event. Milestone payments are estimated and included in the transaction price when the Company determines that it is probable that there will not be a significant reversal of cumulative revenue recognized in future periods. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such milestones and any related constraint, and if necessary, adjusts the estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license, collaboration or other revenues and earnings in the period of adjustment. Research and development revenues and cost reimbursements are based upon negotiated rates for the Company’s full-time employee equivalents (“FTE”) and actual out-of-pocket costs. FTE rates are set based upon the Company’s costs, and which the Company believes approximate fair value. None of the revenues recognized to date are refundable if the relevant research effort is not successful. In accordance with ASC 606, the Company is required to adjust the transaction price for the effects of the time value of money if the timing of payments agreed to by the parties to the contract, explicitly or implicitly, provides the Company or its customer with a significant benefit of financing the transfer of goods or services. The Company concluded that its collaboration agreement did not contain a significant financing component because the payment structure of its agreements arise from reasons other than providing a significant benefit of financing. Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted‑average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted‑average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, convertible preferred stock and common stock options are considered to be potentially dilutive securities. Because the Company has reported a net loss for the three and six months ended June 30, 2018 and 2017, diluted net loss per common share is the same as basic net loss per common share for those periods. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (unaudited) (unaudited) Numerator: Net loss attributable to common stockholders, basic and diluted $ (8,347 ) $ (6,153 ) $ (21,005 ) $ (11,627 ) Denominator: Weighted-average common shares outstanding 22,977,998 5,280,058 20,358,191 5,280,058 Less: weighted-average common shares subject to repurchase (105,802 ) (187,727 ) (115,850 ) (198,032 ) Weighted-average common shares used to compute basic and diluted net loss per share 22,872,196 5,092,331 20,242,341 5,082,026 Net loss per share attributable to common stockholders Basic and diluted $ (0.36 ) $ (1.21 ) $ (1.04 ) $ (2.29 ) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: June 30, 2018 2017 (unaudited) Stock options available for issuance 2,221,926 822,709 Stock options outstanding 3,278,228 1,595,499 Outstanding common stock subject to repurchase 99,189 180,856 Convertible preferred stock issuable upon conversion to common stock — 5,234,800 Total 5,599,343 7,833,864 Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑02, Leases Leases In May 2014, the FASB issued ASU No. 2014‑09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses — Measurement of Credit Losses on Financial Instruments In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In June 2018, the FASB issued ASU 2018-07 (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting |
Cash Equivalents and Investment
Cash Equivalents and Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Cash Equivalents and Investments | 3. Cash Equivalents and Investments At June 30, 2018 and December 31, 2017, the balance in the Company’s accumulated other comprehensive income was comprised solely of activity related to the Company’s available‑for‑sale securities. There were no realized gains or losses recognized on the sale or maturity of available‑for‑sale securities during the three and six months ended June 30, 2018 and 2017 and as a result, the Company did not reclassify any amounts out of accumulated other comprehensive income for the same periods. As of June 30, 2018, the Company’s long-term investments in corporate notes have maturity dates less than 1.5 years. All of the Company’s available-for-sale securities are subject to a periodic impairment review. The Company considers an investment security to be impaired when its fair value is less than its carrying cost, in which case the Company would further review the investment to determine whether it is other-than-temporarily impaired. When the Company evaluates an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, intent to sell, and whether it is more likely than not the Company will be required to sell the investment before the recovery of its cost basis. If an investment is other-than-temporarily impaired, the Company writes it down through earnings to its impaired value and establishes that as a new cost basis for the investment. The Company did not identify any of its available-for-sale securities as other-than-temporarily impaired in any of the periods presented. As of June 30, 2018, no investment was in a continuous unrealized loss position for more than one year, the unrealized losses were not due to change in credit risk, and the Company believes that it is more likely than not the investments will be held until maturity. The following table summarizes the available‑for‑sale securities (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30, 2018 (unaudited) Money market funds $ 12,221 $ — $ — $ 12,221 Corporate notes 38,307 — (96 ) 38,211 Commercial paper 90,537 — — 90,537 Asset backed securities 11,970 — (37 ) 11,933 Government notes 7,955 — (17 ) 7,938 Total $ 160,990 $ — $ (150 ) $ 160,840 Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2017: Money market funds $ 8,685 $ — $ — $ 8,685 Corporate notes 46,133 — (35 ) 46,098 Government notes 6,191 — (16 ) 6,175 Total $ 61,009 $ — $ (51 ) $ 60,958 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The fair value of the Company’s financial instruments reflects the amounts that the Company estimates it would receive in connection with the sale of an asset or pay in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). The Company discloses and recognizes the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows: Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; Level 2 – Inputs other than quoted prices that are observable for the assets or liability either directly or indirectly, including inputs in markets that are not considered to be active; Level 3 – Inputs that are unobservable. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. During the periods presented, the Company has not changed the manner in which it values assets and liabilities that are measured at fair value using Level 3 inputs. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy during the periods presented. A summary of the assets and liabilities carried at fair value in accordance with the hierarchy defined above is as follows (in thousands): Fair Value Measurements Using Level 1 Level 2 Level 3 Total June 30, 2018 (unaudited) Assets: Money market funds $ 12,221 $ — $ — $ 12,221 Corporate notes — 38,211 — 38,211 Commercial paper — 90,537 — 90,537 Asset backed securities — 11,933 — 11,933 Government notes — 7,938 — 7,938 Total assets $ 12,221 $ 148,619 — $ 160,840 Fair Value Measurements Using Level 1 Level 2 Level 3 Total December 31, 2017: Assets: Money market funds $ 8,685 $ — $ — $ 8,685 Corporate notes 5,103 40,995 — 46,098 Government notes 6,175 — — 6,175 Total assets $ 19,963 $ 40,995 $ — $ 60,958 The Company uses a market approach for determining the fair value of all its Level 1 and Level 2 money market funds and marketable securities. To value its money market funds, the Company values the funds at $1 stable net asset value, which is the market pricing convention for identical assets that the Company has the ability to access. |
License Agreements
License Agreements | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
License Agreements | 5. License Agreements Merck License In December 2012, the Company entered into an exclusive worldwide royalty free license agreement with Merck Sharp & Dohme Corp., or “Merck” for exclusive worldwide rights for the development and commercialization of serlopitant and two other NK 1 In May 2018, the Company paid a $3.0 million milestone payment associated with the initiation of the Company’s Phase 3 clinical program for pruritus associated with prurigo nodularis. Future milestone payments are considered a form of variable consideration and accrued for when the Company determines that it is probable that there will not be a significant reversal of the accrual in future periods. JT Torii Collaboration Agreement In August 2016, the Company entered into a license and collaboration agreement with Japan Tobacco Inc. and Torii Pharmaceutical Co. Ltd., together referred to as “JT Torii”, which is referred to as the “Collaboration Agreement”. Under the Collaboration Agreement, the Company granted to JT Torii the rights to develop and commercialize products containing serlopitant in Japan, for the treatment of diseases and conditions other than nausea or vomiting. In exchange, JT Torii paid the Company an upfront, non‑refundable payment of $11.0 million. In addition, the Company was entitled to receive aggregate payments of up to $28.0 million upon the achievement of specified development and regulatory milestones, and $15.0 million upon the achievement of a commercial milestone, as well as tiered royalties from the mid-single digits up to the mid‑teens on sales of licensed products in Japan. The Company’s performance obligations under the license agreement included the transfer of intellectual property rights in the form of licenses, obligations to participate on certain development and/or commercialization committees with the collaboration partners and supply manufactured drug product for clinical trials. In the second quarter of 2018, JT Torii informed the Company that they decided to halt the Japanese Phase 2 clinical trial of serlopitant, following which the Company and JT Torii agreed to terminate the Collaboration Agreement. As a result, the Company has reacquired full ownership of the development and commercialization rights to serlopitant in Japan and Under the Collaboration Agreement, the Company was reimbursed by JT Torii for the non-commercial supplies of serlopitant at the same rate it was charged by the third-party manufacturer for such supplies, which price did not include a significant or incremental discount for JT Torii. The assessment of performance obligations required judgment in order to determine the allocation of revenue to each deliverable and the appropriate period of time over which the revenue should be recognized. Under the Collaboration Agreement, the Company determined that the license was not distinct from the research and development services because JT Torii could not use the license with its available resources to obtain any economic value without the Company’s participation. The license and the services were combined as one unit of accounting and upfront payments were recorded initially as deferred revenue in the balance sheet. Revenue was then recognized over an estimated performance period as performance of services was being completed. The Company recognized the upfront fee based on performance of the obligation using input method over the period of performance, which represented the estimated development period in the territories based on the initial development plan managed by the joint steering committee. The original term of the agreement was through the expiration of the patents associated with serlopitant. Under the Collaboration Agreement, the Company was entitled to receive aggregate payments of up to $28.0 million upon the achievement of specified development and regulatory milestones, and $15.0 million upon the achievement of a commercial milestone. Two of the milestones, which amount to $2.0 million each, related to the preparation of an IND for submission to regulatory authorities in the territory were considered substantive given that they are triggered by the Company’s performance relative to the achievement of pre-specified, “at risk” milestone events, including the submission of all completed trials clinical data packages and the validation of the manufacturing process. On September 1, 2017, the Company entered into a new services agreement with JT Torii to provide research and development services, including regulatory, chemistry and manufacturing support and related materials that is distinct from the original Collaboration Agreement. The Company evaluated the new services agreement and determined that the research and materials delivered to JT Torii represented another contract that provides distinct goods and services to JT Torii. The fees received under the services agreement were recognized as and when such services were performed by the Company and JT Torii consumed the benefits of those services. During the three months and six months ended June 30, 2018, the Company recognized revenue of $0.1 million and $0.1 million, respectively in the statement of operations related to the services agreement. The services agreement terminated upon the termination of the Collaboration Agreement. |
Balance Sheets Components
Balance Sheets Components | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheets Components | 6. Balance Sheets Components Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, 2018 December 31, 2017 (unaudited) Accrued personnel expenses $ 1,093 $ 1,108 Accrued clinical and development expenses 2,254 2,250 Other 213 201 Total $ 3,560 $ 3,559 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Legal Matters The Company’s industry is characterized by frequent claims and litigation, including claims regarding intellectual property. As a result, the Company may be subject to various legal proceedings from time to time. The results of any future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. Management is not aware of any material pending or threatened litigation. Leases The Company conducts its operations using leased office facilities. In April 2016, the Company entered into a lease agreement for its prior location. The twenty-six month lease, began in May 2016, and provided 4,000 square feet of office space in Menlo Park, California. Base annual rent was initially approximately $20,000 per month, with annual increases. In September 2017, the Company entered into a lease agreement for its current location. The thirty-month lease, began on October 1, 2017 and provides approximately 14,000 square feet of office space in Redwood City, California. Base annual rent is approximately $55,000 per month with annual increases. The Company recognizes rent expense on a straight‑line basis over the respective lease period. Rent expense was $0.2 million and $0.5 million, respectively, for the three and six months ended June 30, 2018 and $0.1 million and $0.1 million, respectively, for the three and six months ended June 30, 2017. 2018 $ 330 2019 675 2020 173 Total future minimum lease payments $ 1,178 Indemnification As permitted under Delaware law and in accordance with the Company’s bylaws, the Company is required to indemnify its officers and directors for certain events or occurrences while the officer or director is or was serving in such capacity. The Company is also party to indemnification agreements with its directors. The Company believes the fair value of the indemnification rights and agreements is minimal. Accordingly, the Company has not recorded any liabilities for these indemnification rights and agreements as of June 30, 2018. Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated. Management is not currently aware of any matters that could have a material adverse effect on the financial position, results of operations, or cash flows of the Company. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity (Deficit) | 8. Stockholders’ Equity (Deficit) Equity incentive plan Under the Company’s 2011 Stock Incentive Plan (the “2011 Plan”), the Company may grant options to purchase common stock, restricted stock awards, or directly issue shares of common stock to employees, directors and consultants of the Company. Under the 2011 Plan, options granted are exercisable over a maximum term of 10 years from the date of grant and generally vest over a period of four years. The Company adopted a 2018 Omnibus Incentive Plan (the “2018 Plan”), effective January 2018. The 2018 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights and other stock and cash-based awards (including annual cash incentives and long-term cash incentives). The Company has reserved 3,000,000 shares of common stock for issuance pursuant to awards under the 2018 Plan. The Company adopted a 2018 Employee Stock Purchase Plan (“ESPP”) in January 2018. The ESPP enables eligible employees of the Company and designated affiliates to purchase shares of common stock at a discount of 15%. Six month offer periods under the ESPP will commence September 1, 2018. The Company has reserved 325,000 shares of common stock for issuance under the ESPP. Total stock-based compensation expense for employees and non-employees recognized in the statements of operations was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (unaudited) (unaudited) Research and development $ 316 $ 177 $ 742 $ 354 General and administrative 430 135 827 274 Total stock-based compensation expense $ 746 $ 312 $ 1,569 $ 628 The table below summarizes stock option and restricted award activity under the 2011 and 2018 Plan: Number of Shares Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Balances at December 31, 2017 2,506,926 $ 3.50 8.79 $ 24,033 Forfeited (6,772 ) $ 7.01 Granted 778,074 $ 9.94 Balances at June 30, 2018 3,278,228 $ 5.03 8.64 $ 10,138 |
Significant Accounting Polici14
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial information for the three and six months ended June 30, 2018 and 2017 is unaudited. These unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In management’s opinion, the unaudited interim condensed financial statements have been prepared on the same basis as the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, and include all adjustments, which include only normal and recurring adjustments necessary for the fair presentation of the Company’s statement of financial position as of June 30, 2018, its statements of operations and comprehensive loss for the three and six months ended June 30, 2018 and 2017 and its statements of cash flows for the six months ended June 30, 2018 and 2017. The results for the three and six months ended June 30, 2018 are not necessarily indicative of the results expected for the full fiscal year or any other period(s). The financial statements and related disclosures have been prepared with the presumption that users of the interim financial statements have read or have access to the audited financial statements for the preceding fiscal year. Accordingly, these financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K for the year ended December 31, 2017, as filed with the SEC on March 28, 2018. |
Reverse Stock Split | Reverse Stock Split On January 8, 2018, the Company effected a reverse split of shares of the Company’s common stock at a ratio of 1-for-2.6975 pursuant to an amendment to the amended and restated certificate of incorporation approved by the Company’s board of directors and stockholders. The par value and the authorized shares of the common stock were not adjusted as a result of the reverse split. All issued and outstanding common stock share and per share amounts contained in the financial statements have been retroactively adjusted to reflect this reverse split for all periods presented, and the conversion ratio of the preferred stock was adjusted accordingly. Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. All long‑lived assets are maintained in the United States of America. |
Use of Estimates | Use of Estimates Preparation of financial statements in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting periods covered by the financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, stock‑based compensation expense, the resolution of uncertain tax positions and valuation allowance and accruals for research and development costs. Management bases its estimates on historical experience on various 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 materially from those estimates. |
Research and Development Expenses | Research and Development Expenses Research and development costs are expensed as incurred. Substantially all of the Company’s research and development expenses consist of expenses incurred in connection with the development of serlopitant. These expenses include certain payroll and personnel expenses including stock‑based compensation expense, consulting costs, contract manufacturing costs and fees paid to clinical research organizations, or CROs, to conduct research and development. Non-refundable advance payments for goods or services that will be used or rendered for future research and development activities are deferred and capitalized and recognized as an expense as the goods are delivered or the related services are performed. The Company estimates non‑clinical study and clinical trial expenses based on the services performed pursuant to contracts with research institutions and clinical research organizations that conduct and manage non‑clinical studies and clinical trials on its behalf. In accruing service fees, the Company estimates the time period over which services will be performed and the level of effort to be expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered. |
Stock-Based Compensation | Stock-Based Compensation The Company measures and recognizes compensation expense for all stock‑based awards made to employees, directors and non‑employees, based on estimated fair values recognized using the straight‑line method over the requisite service period. The fair value of options to purchase common stock granted to employees is estimated on the grant date using the Black‑Scholes option valuation model. The calculation of stock‑based compensation expense requires that the Company make certain assumptions and judgments about a number of complex and subjective variables used in the Black‑Scholes model, including the expected term, expected volatility of the underlying common stock, and risk‑free interest rate. The Company accounts for options issued to non‑employees using the Black‑Scholes option valuation model and is measured and recognized as the stock options are earned. |
Revenue Recognition | Revenue Recognition The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"). For the Company’s collaboration agreement, which is discussed further under Note 5, the Company identifies the performance obligations, determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) the performance obligation is satisfied. The Company identifies the performance obligations included within the agreement and evaluates which performance obligations are distinct. Upfront payments for licenses are evaluated to determine if the license is capable of being distinct from the obligations of the Company to participate on certain development and/or commercialization committees with the collaboration partners and supply manufactured drug product for clinical trials. For performance obligations that the Company satisfies over time, the Company utilizes the input method and revenue is recognized by consistently applying a method of measuring progress toward complete satisfaction of that performance obligation. The Company periodically reviews its estimated periods of performance based on the progress under each arrangement and accounts for the impact of any changes in estimated periods of performance on a prospective basis. Milestone payments are a form of variable consideration as the payments are contingent upon achievement of a substantive event. Milestone payments are estimated and included in the transaction price when the Company determines that it is probable that there will not be a significant reversal of cumulative revenue recognized in future periods. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such milestones and any related constraint, and if necessary, adjusts the estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license, collaboration or other revenues and earnings in the period of adjustment. Research and development revenues and cost reimbursements are based upon negotiated rates for the Company’s full-time employee equivalents (“FTE”) and actual out-of-pocket costs. FTE rates are set based upon the Company’s costs, and which the Company believes approximate fair value. None of the revenues recognized to date are refundable if the relevant research effort is not successful. In accordance with ASC 606, the Company is required to adjust the transaction price for the effects of the time value of money if the timing of payments agreed to by the parties to the contract, explicitly or implicitly, provides the Company or its customer with a significant benefit of financing the transfer of goods or services. The Company concluded that its collaboration agreement did not contain a significant financing component because the payment structure of its agreements arise from reasons other than providing a significant benefit of financing. |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted‑average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted‑average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, convertible preferred stock and common stock options are considered to be potentially dilutive securities. Because the Company has reported a net loss for the three and six months ended June 30, 2018 and 2017, diluted net loss per common share is the same as basic net loss per common share for those periods. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑02, Leases Leases In May 2014, the FASB issued ASU No. 2014‑09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses — Measurement of Credit Losses on Financial Instruments In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In June 2018, the FASB issued ASU 2018-07 (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting |
Significant Accounting Polici15
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (unaudited) (unaudited) Numerator: Net loss attributable to common stockholders, basic and diluted $ (8,347 ) $ (6,153 ) $ (21,005 ) $ (11,627 ) Denominator: Weighted-average common shares outstanding 22,977,998 5,280,058 20,358,191 5,280,058 Less: weighted-average common shares subject to repurchase (105,802 ) (187,727 ) (115,850 ) (198,032 ) Weighted-average common shares used to compute basic and diluted net loss per share 22,872,196 5,092,331 20,242,341 5,082,026 Net loss per share attributable to common stockholders Basic and diluted $ (0.36 ) $ (1.21 ) $ (1.04 ) $ (2.29 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: June 30, 2018 2017 (unaudited) Stock options available for issuance 2,221,926 822,709 Stock options outstanding 3,278,228 1,595,499 Outstanding common stock subject to repurchase 99,189 180,856 Convertible preferred stock issuable upon conversion to common stock — 5,234,800 Total 5,599,343 7,833,864 |
Cash Equivalents and Investme16
Cash Equivalents and Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Available-for-sale Securities | The following table summarizes the available‑for‑sale securities (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30, 2018 (unaudited) Money market funds $ 12,221 $ — $ — $ 12,221 Corporate notes 38,307 — (96 ) 38,211 Commercial paper 90,537 — — 90,537 Asset backed securities 11,970 — (37 ) 11,933 Government notes 7,955 — (17 ) 7,938 Total $ 160,990 $ — $ (150 ) $ 160,840 Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2017: Money market funds $ 8,685 $ — $ — $ 8,685 Corporate notes 46,133 — (35 ) 46,098 Government notes 6,191 — (16 ) 6,175 Total $ 61,009 $ — $ (51 ) $ 60,958 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Carried at Fair Value | A summary of the assets and liabilities carried at fair value in accordance with the hierarchy defined above is as follows (in thousands): Fair Value Measurements Using Level 1 Level 2 Level 3 Total June 30, 2018 (unaudited) Assets: Money market funds $ 12,221 $ — $ — $ 12,221 Corporate notes — 38,211 — 38,211 Commercial paper — 90,537 — 90,537 Asset backed securities — 11,933 — 11,933 Government notes — 7,938 — 7,938 Total assets $ 12,221 $ 148,619 — $ 160,840 Fair Value Measurements Using Level 1 Level 2 Level 3 Total December 31, 2017: Assets: Money market funds $ 8,685 $ — $ — $ 8,685 Corporate notes 5,103 40,995 — 46,098 Government notes 6,175 — — 6,175 Total assets $ 19,963 $ 40,995 $ — $ 60,958 |
Balance Sheets Components (Tabl
Balance Sheets Components (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, 2018 December 31, 2017 (unaudited) Accrued personnel expenses $ 1,093 $ 1,108 Accrued clinical and development expenses 2,254 2,250 Other 213 201 Total $ 3,560 $ 3,559 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Operating Lease Payments | As of June 30, 2018, total future minimum lease payments under its operating leases are as follows (in thousands): 2018 $ 330 2019 675 2020 173 Total future minimum lease payments $ 1,178 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-based Compensation, Allocation of Recognized Period Costs | Total stock-based compensation expense for employees and non-employees recognized in the statements of operations was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (unaudited) (unaudited) Research and development $ 316 $ 177 $ 742 $ 354 General and administrative 430 135 827 274 Total stock-based compensation expense $ 746 $ 312 $ 1,569 $ 628 |
Schedule of Stock Option and Restricted Stock Activity | The table below summarizes stock option and restricted award activity under the 2011 and 2018 Plan: Number of Shares Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Balances at December 31, 2017 2,506,926 $ 3.50 8.79 $ 24,033 Forfeited (6,772 ) $ 7.01 Granted 778,074 $ 9.94 Balances at June 30, 2018 3,278,228 $ 5.03 8.64 $ 10,138 |
Formation and Business of the21
Formation and Business of the Company (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Schedule of Capitalization, Equity [Line Items] | ||||||
Net loss | $ (8,347) | $ (6,153) | $ (21,005) | $ (11,627) | ||
Net cash used in operating activities | (23,944) | $ (5,547) | ||||
Cash, cash equivalents and investments | 164,200 | 164,200 | ||||
Accumulated deficit | $ (80,194) | $ (80,194) | $ (59,191) | |||
IPO | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Shares issued (shares) | 8,050,000 | |||||
Proceeds from issuance initial public offering, net | $ 125,400 | |||||
Over-Allotment Option | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Shares issued (shares) | 1,050,000 | |||||
Convertible Stock Converted into Shares of Common Stock | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Common shares issued upon conversion of convertible stock (shares) | 9,629,405 |
Significant Accounting Polici22
Significant Accounting Policies - Reverse Stock Split (Details) | Jan. 08, 2018 |
Common Stock | |
Class of Stock [Line Items] | |
Number of shares issued for every share converted in reverse stock split | 0.3707 |
Significant Accounting Polici23
Significant Accounting Policies - Segments (Details) | 6 Months Ended |
Jun. 30, 2018Segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Significant Accounting Polici24
Significant Accounting Policies - Revenue Recognition (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Accounting Policies [Abstract] | |
Revenues recognized refundable | $ 0 |
Significant Accounting Polici25
Significant Accounting Policies - Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounting Policies [Abstract] | ||||
Net loss attributable to common stockholders, basic | $ (8,347) | $ (6,153) | $ (21,005) | $ (11,627) |
Weighted-average common shares outstanding | 22,977,998 | 5,280,058 | 20,358,191 | 5,280,058 |
Less: weighted-average common shares subject to repurchase | (105,802) | (187,727) | (115,850) | (198,032) |
Weighted-average common shares used to compute basic and diluted net loss per share | 22,872,196 | 5,092,331 | 20,242,341 | 5,082,026 |
Net loss attributable to common stockholders per share, basic and diluted | $ (0.36) | $ (1.21) | $ (1.04) | $ (2.29) |
Significant Accounting Polici26
Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the calculation of EPS | 5,599,343 | 7,833,864 |
Stock options available for issuance | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the calculation of EPS | 2,221,926 | 822,709 |
Stock options outstanding | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the calculation of EPS | 3,278,228 | 1,595,499 |
Outstanding common stock subject to repurchase | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the calculation of EPS | 99,189 | 180,856 |
Convertible preferred stock issuable upon conversion to common stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from the calculation of EPS | 0 | 5,234,800 |
Cash Equivalents and Investme27
Cash Equivalents and Investments (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)investment | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)investment | Jun. 30, 2017USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Realized gains (losses) recognized on the sale or maturity of available-for-sale securities | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Securities in continuous unrealized loss position for more than one year | investment | 0 | 0 | ||
Corporate notes | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investments, remaining maturity | 1 year 6 months |
Cash Equivalents and Investme28
Cash Equivalents and Investments - Available for Sale securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 160,990 | $ 61,009 |
Available-for-sale securities, unrealized gains | 0 | 0 |
Available-for-sale securities, unrealized losses | (150) | (51) |
Available-for-sale securities, fair value | 160,840 | 60,958 |
Corporate notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 38,307 | 46,133 |
Available-for-sale securities, unrealized gains | 0 | 0 |
Available-for-sale securities, unrealized losses | (96) | (35) |
Available-for-sale securities, fair value | 38,211 | 46,098 |
Government notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 7,955 | 6,191 |
Available-for-sale securities, unrealized gains | 0 | 0 |
Available-for-sale securities, unrealized losses | (17) | (16) |
Available-for-sale securities, fair value | 7,938 | 6,175 |
Asset backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 11,970 | |
Available-for-sale securities, unrealized gains | 0 | |
Available-for-sale securities, unrealized losses | (37) | |
Available-for-sale securities, fair value | 11,933 | |
Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 12,221 | 8,685 |
Available-for-sale securities, unrealized gains | 0 | 0 |
Available-for-sale securities, unrealized losses | 0 | 0 |
Available-for-sale securities, fair value | 12,221 | $ 8,685 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 90,537 | |
Available-for-sale securities, unrealized gains | 0 | |
Available-for-sale securities, unrealized losses | 0 | |
Available-for-sale securities, fair value | $ 90,537 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 160,840 | $ 60,958 |
Corporate notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 38,211 | 46,098 |
Asset backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 11,933 | |
Government notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 7,938 | 6,175 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 12,221 | 19,963 |
Level 1 | Corporate notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 5,103 | |
Level 1 | Government notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 6,175 | |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 148,619 | 40,995 |
Level 2 | Corporate notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 38,211 | 40,995 |
Level 2 | Asset backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 11,933 | |
Level 2 | Government notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 7,938 | |
Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Money market funds | $ 12,221 | 8,685 |
Net asset value | $ 1 | |
Money market funds | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Money market funds | $ 12,221 | $ 8,685 |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | 90,537 | |
Commercial paper | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments | $ 90,537 |
License Agreements (Details)
License Agreements (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2018USD ($) | Aug. 31, 2016USD ($)Milestone | Dec. 31, 2012USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Number of milestones | Milestone | 2 | ||||
Merck | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Collaborative agreement, milestone payments paid | $ 3 | ||||
Merck | License | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Licensing fee | $ 1 | ||||
Merck | Development and Regulatory Milestones | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Collaborative arrangements, potential milestone payments | $ 25 | ||||
JT Torii | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Accelerated recognition of deferred revenue, amount of revenue recognized | $ 8.1 | ||||
Research and development arrangement, contract to perform for others, compensation earned | 2 | ||||
JT Torii | Research and Development Arrangement | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Research and development arrangement, contract to perform for others, compensation earned | $ 0.1 | $ 0.1 | |||
JT Torii | Development and Regulatory Milestones | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Collaborative arrangements, potential milestone proceeds | $ 28 | ||||
JT Torii | Collaboration Agreement | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Collaborative agreement, upfront payment received | 11 | ||||
JT Torii | Commercial Milestone | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Collaborative arrangements, potential milestone proceeds | 15 | ||||
JT Torii | Development and Regulatory Milestone, Preparation of Investigational New Drug Submission, Milestone One [Member] | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Collaborative arrangements, potential milestone proceeds | $ 2 |
Balance Sheets Components (Deta
Balance Sheets Components (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Accrued personnel expenses | $ 1,093 | $ 1,108 |
Accrued clinical and development expenses | 2,254 | 2,250 |
Other | 213 | 201 |
Total | $ 3,560 | $ 3,559 |
Commitments and Contingencies32
Commitments and Contingencies (Details) $ in Thousands | Oct. 01, 2017USD ($)ft² | May 31, 2016USD ($)ft² | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Operating lease, rent expense | $ 200 | $ 100 | $ 500 | $ 100 | ||
Menlo Park, California | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Operating lease, term of contract | 26 months | |||||
Leased office space, square footage | ft² | 4,000 | |||||
Operating lease, monthly expense | $ 20,000 | |||||
Redwood City, California | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Operating lease, term of contract | 30 months | |||||
Leased office space, square footage | ft² | 14,000 | |||||
Operating lease, monthly expense | $ 55,000 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Operating Lease Payments (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Year ending December 31: | |
2,018 | $ 330 |
2,019 | 675 |
2,020 | 173 |
Total future minimum lease payments | $ 1,178 |
Stockholders' Equity (Deficit34
Stockholders' Equity (Deficit) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 23, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total stock-based compensation expense | $ 746 | $ 312 | $ 1,569 | $ 628 | ||
Research and development | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total stock-based compensation expense | 316 | 177 | 742 | 354 | ||
General and administrative | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total stock-based compensation expense | $ 430 | $ 135 | $ 827 | $ 274 | ||
2011 Stock Incentive Plan | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Option expiration period | 10 years | |||||
Option vesting period | 4 years | |||||
2018 Omnibus Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available under the Plan (shares) | 3,000,000 | |||||
2018 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available under the Plan (shares) | 325,000 | |||||
Purchase of common stock offer period under the plan | 6 months | |||||
Discount rate from price of common stock on purchase date | 15.00% | |||||
Commencement date to purchase common stock under the ESPP | Sep. 1, 2018 |
Stockholders' Equity (Deficit35
Stockholders' Equity (Deficit) - Stock Option and Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Balances, beginning (shares) | 2,506,926 | |
Forfeited (shares) | (6,772) | |
Granted (shares) | 778,074 | |
Balances, ending (shares) | 3,278,228 | 2,506,926 |
Outstanding, exercise price per share (in USD per share) | $ 5.03 | $ 3.50 |
Forfeited, exercise price per share (in USD per share) | 7.01 | |
Granted, exercise price per share (in USD per share) | $ 9.94 | |
Options outstanding, weighted average remaining contractual term | 8 years 7 months 20 days | 8 years 9 months 14 days |
Options outstanding, aggregate intrinsic value | $ 10,138 | $ 24,033 |