Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 11, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Loxo Oncology, Inc. | ' |
Entity Central Index Key | '0001581720 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 16,634,063 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $118,621 | $14,994 |
Prepaid expenses with related party and other current assets | 1,415 | 17 |
Total current assets | 120,036 | 15,011 |
Property and equipment | 13 | ' |
Security deposit | 23 | 11 |
Total assets | 120,072 | 15,022 |
Current liabilities: | ' | ' |
Accounts payable | 207 | 221 |
Accrued expenses | 520 | 189 |
Total liabilities | 727 | 410 |
Commitments and contingencies | ' | ' |
Redeemable convertible preferred stock | ' | 24,843 |
Stockholders' (deficit) equity: | ' | ' |
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding at December 31, 2013 and September 30, 2014 | ' | ' |
Common stock, $0.0001 par value; 9,375,000 and 125,000,000 shares authorized at December 31, 2013 and September 30, 2014, respectively; 452,896 and 16,644,229 shares issued and 452,896 and 16,634,063 outstanding at December 31, 2013 and September 30, 2014, respectively | 2 | ' |
Additional paid-in capital | 143,183 | 59 |
Accumulated deficit | -23,840 | -10,290 |
Total stockholders' (deficit) equity | 119,345 | -10,231 |
Total liabilities, redeemable convertible preferred stock and stockholders' (deficit) equity | 120,072 | 15,022 |
Redeemable convertible Series A preferred stock | ' | ' |
Current liabilities: | ' | ' |
Redeemable convertible preferred stock | ' | 17,799 |
Redeemable convertible Series A-1 preferred stock | ' | ' |
Current liabilities: | ' | ' |
Redeemable convertible preferred stock | ' | $7,044 |
Condensed_Balance_Sheets_Paren
Condensed Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 125,000,000 | 9,375,000 |
Common stock, shares issued | 16,644,229 | 452,896 |
Common stock, shares outstanding | 16,634,063 | 452,896 |
Redeemable convertible Series A preferred stock | ' | ' |
Redeemable convertible preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Redeemable convertible preferred stock, shares authorized | 0 | 5,156,250 |
Redeemable convertible preferred stock, shares issued | 0 | 2,812,497 |
Redeemable convertible preferred stock, shares outstanding | 0 | 2,812,497 |
Redeemable convertible preferred stock, liquidation preference (in dollars) | $0 | $18,000 |
Redeemable convertible Series A-1 preferred stock | ' | ' |
Redeemable convertible preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Redeemable convertible preferred stock, shares authorized | 0 | 500,704 |
Redeemable convertible preferred stock, shares issued | 0 | 500,704 |
Redeemable convertible preferred stock, shares outstanding | 0 | 500,704 |
Redeemable convertible preferred stock, liquidation preference (in dollars) | $0 | $12,000 |
Redeemable convertible Series B preferred stock | ' | ' |
Redeemable convertible preferred stock, shares outstanding | 0 | ' |
Condensed_Statements_of_Operat
Condensed Statements of Operations (USD $) | 3 Months Ended | 5 Months Ended | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 |
Operating expenses: | ' | ' | ' | ' |
Research and development with related party | $2,413 | $8,149 | $8,202 | $5,405 |
Research and development | 2,623 | 37 | 43 | 4,412 |
General and administrative | 1,707 | 159 | 190 | 3,733 |
Total operating expenses and net loss | -6,743 | -8,345 | -8,435 | -13,550 |
Accretion of redeemable convertible preferred stock | -6 | ' | ' | -34 |
Net loss attributable to common stockholders | ($6,749) | ($8,345) | ($8,435) | ($13,584) |
Per share information | ' | ' | ' | ' |
Net loss per share of common stock, basic and diluted (in dollars per share) | ($0.68) | ($45.20) | ($71.52) | ($3.87) |
Weighted average shares outstanding, basic and diluted | 9,947,321 | 184,605 | 117,942 | 3,510,170 |
Condensed_Statements_of_Redeem
Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders' (Deficit) Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Redeemable convertible Series A preferred stock | Redeemable convertible Series A-1 preferred stock | Redeemable convertible Series B preferred stock | Series A shares | Series B shares |
In Thousands, except Share data, unless otherwise specified | |||||||||
Balance at Dec. 31, 2013 | ($10,231) | ' | $59 | ($10,290) | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 24,843 | ' | ' | ' | 17,799 | 7,044 | ' | ' | ' |
Balance (in shares) at Dec. 31, 2013 | ' | 452,896 | ' | ' | ' | ' | ' | ' | ' |
Balance (in shares) at Dec. 31, 2013 | ' | ' | ' | ' | 2,812,497 | 500,704 | ' | ' | ' |
Changes in Redeemable Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of redeemable convertible preferred stock | ' | ' | ' | ' | ' | ' | ' | 15,000 | 28,178 |
Issuance of redeemable convertible preferred stock (in shares) | ' | 6,134,307 | ' | ' | ' | ' | ' | 2,343,753 | 3,166,233 |
Accretion of redeemable convertible preferred stock to redemption value | 34 | ' | ' | ' | 26 | ' | 8 | ' | ' |
Conversion of redeemable convertible preferred stock into common stock | -68,055 | -1 | -68,054 | ' | -32,825 | -7,044 | -28,186 | ' | ' |
Conversion of redeemable convertible preferred stock into common stock (in shares) | ' | 9,932,042 | ' | ' | -5,156,250 | -500,704 | -3,166,233 | ' | ' |
Changes Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock due to exercise of vested options | 167 | ' | 167 | ' | ' | ' | ' | ' | ' |
Issuance of common stock due to exercise of vested options (in shares) | ' | 114,818 | ' | ' | ' | ' | ' | ' | ' |
Accretion of redeemable convertible preferred stock to redemption value | -34 | ' | -34 | ' | ' | ' | ' | ' | ' |
Conversion of redeemable convertible preferred stock into common stock | 68,055 | 1 | 68,054 | ' | 32,825 | 7,044 | 28,186 | ' | ' |
Issuance of common stock in connection with initial public offering and private placement, net of offering costs | 72,366 | 1 | 72,365 | ' | ' | ' | ' | ' | ' |
Issuance of common stock in connection with initial public offering and private placement, net of offering costs (in shares) | ' | 6,134,307 | ' | ' | ' | ' | ' | 2,343,753 | 3,166,233 |
Stock-based compensation expense | 2,572 | ' | 2,572 | ' | ' | ' | ' | ' | ' |
Net loss | -13,550 | ' | ' | -13,550 | ' | ' | ' | ' | ' |
Balance at Sep. 30, 2014 | $119,345 | $2 | $143,183 | ($23,840) | ' | ' | ' | ' | ' |
Balance (in shares) at Sep. 30, 2014 | ' | 16,634,063 | ' | ' | ' | ' | ' | ' | ' |
Balance (in shares) at Sep. 30, 2014 | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' |
Condensed_Statements_of_Redeem1
Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders' (Deficit) Equity (Parenthetical) (USD $) | Mar. 31, 2014 | Jun. 30, 2014 | Apr. 30, 2014 |
Redeemable convertible Series A preferred stock | Redeemable convertible Series B preferred stock | Redeemable convertible Series B preferred stock | |
Issuance of redeemable convertible preferred stock, issue price (in dollars per share) | $6.40 | $8.97 | $8.97 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (USD $) | 5 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 |
Operating activities: | ' | ' |
Net loss | ($8,435) | ($13,550) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation expense | 0 | 1 |
Issuance of redeemable convertible preferred stock in connection with collaboration agreement | 7,044 | ' |
Stock-based compensation | ' | 2,572 |
Changes in operating assets and liabilities: | ' | ' |
Prepaid expenses and other assets | -375 | -1,230 |
Security deposits | ' | -12 |
Accounts payable | 66 | -14 |
Accrued expenses | 203 | 163 |
Net cash used in operating activities | -1,497 | -12,070 |
Investing activities: | ' | ' |
Purchase of property | ' | -14 |
Net cash used in investing activities | 0 | -14 |
Financing activities: | ' | ' |
Proceeds from issuance of redeemable convertible preferred stock, net | 17,787 | 43,178 |
Proceeds from the issuance of common stock | 1 | 74,331 |
Payment of deferred financing fees | ' | -1,798 |
Net cash provided by financing activities | 17,788 | 115,711 |
Net increase in cash and cash equivalents | 16,291 | 103,627 |
Cash and cash equivalents-beginning of period | ' | 14,994 |
Cash and cash equivalents-end of period | 16,291 | 118,621 |
Supplemental schedule of noncash activities: | ' | ' |
Prepayments of non-refundable fees to contract service organizations | ' | 168 |
Noncash financing activities: | ' | ' |
Conversion of redeemable convertible preferred stock into common stock | ' | $68,055 |
Organization_and_Description_o
Organization and Description of the Business | 9 Months Ended |
Sep. 30, 2014 | |
Organization and Description of the Business | ' |
Organization and Description of the Business | ' |
1. Organization and Description of the Business | |
Loxo Oncology, Inc. (the “Company”) was incorporated on May 9, 2013 in the State of Delaware. The Company develops targeted small molecule therapeutics for the treatment of cancer in genetically defined patient populations. The Company’s development approach translates key scientific insights relating to the oncogenic drivers of cancer into drugs that are potent and highly selective for their intended targets. Such drugs typically achieve high target engagement, which has been correlated with improved tumor response. The Company is also building a pipeline of additional product candidates targeting cancers driven by genetic alterations. The Company operates in one segment and has its principal office in Stamford, Connecticut. | |
Initial Public Offering | |
On July 31, 2014, the Company’s registration statements on Form S-1 (File Nos. 333-197123 and 333-197779) relating to its initial public offering of its common stock were declared effective by the Securities and Exchange Commission (“SEC”). The shares began trading on The NASDAQ Global Select Market on August 1, 2014. The initial public offering closed on August 6, 2014, and 5,261,538 shares of common stock were sold at an initial public offering price of $13.00 per share, for aggregate gross proceeds to the Company of $68.4 million. Concurrent with the close of the offering, New Enterprise Associates 14, L.P., or NEA, an existing stockholder, purchased 230,769 shares of common stock at the initial public offering price in a private placement and the Company received gross proceeds of $3.0 million. In addition, upon the closing of the initial public offering, all of the Company’s outstanding convertible preferred stock was converted into an aggregate total of 9,932,042 shares of common stock. | |
On August 29, 2014, the underwriters of the Company’s initial public offering gave notification that they would partially exercise the over-allotment option granted to them and on September 4, 2014, 642,000 additional shares of common stock were sold on the Company’s behalf at the initial public offering price of $13.00 per share, for aggregate gross proceeds of approximately $8.3 million. | |
The Company paid to the underwriters underwriting discounts and commissions of approximately $5.6 million in connection with the offering, including the private placement and over-allotment. In addition, the Company incurred expenses of approximately $1.7 million in connection with the offering. Thus, the net offering proceeds to the Company, after deducting underwriting discounts and commissions and offering expenses, were approximately $72.4 million. | |
Stock Splits | |
In July 2013, the Company’s Board of Directors (the “Board”) and stockholders approved a 2.07 to 1 reverse stock split of the Company’s common stock. The reverse stock split became effective on July 2, 2013. Subsequently, in July 2014, the Board and stockholders approved a 1.5625-for-1 forward stock split of the Company’s common stock. The forward stock split became effective on July 21, 2014. All share and per share amounts in the financial statements and notes thereto have been adjusted to give effect to this reverse stock split. | |
Liquidity | |
At September 30, 2014, the Company had working capital of $119.3 million, an accumulated deficit of $23.8 million, and cash and cash equivalents of $118.6 million. Upon consummation of its initial public offering and the concurrent private placement on August 6, 2014, and the over-allotment exercise on September 5, 2014, the Company received cash proceeds, net of underwriting discounts and commissions, and initial public offering costs of approximately $72.4 million. The Company has not generated any product revenues and has not achieved profitable operations. There is no assurance that profitable operations will ever be achieved, and, if achieved, could be sustained on a continuing basis. In addition, development activities, clinical and pre-clinical testing, and commercialization of the Company’s products will require significant additional financing. | |
The Company believes that its existing cash and cash equivalents, in conjunction with the proceeds received in connection with its initial public offering and concurrent private placement in August 2014, will be sufficient to enable the Company to continue as a going concern for a reasonable period of time beyond September 30, 2014. However, the Company will need to secure additional funding in the future, from one or more equity or debt financings, collaborations, or other sources, in order to carry out all of its planned research and development activities. If the Company is unable to obtain additional financing or generate license or product revenue, the lack of liquidity could have a material adverse effect on the Company’s future prospects. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
Basis of Presentation | |
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). | |
Unaudited Interim Financial Information | |
The accompanying balance sheet as of December 31, 2013, was derived from the Company’s audited financial statements included in Form S-1 filed on July 30, 2014 with the SEC that was declared effective on July 31, 2014. | |
The accompanying balance sheet as of September 30, 2014, the statements of operations for the three and nine months ended September 30, 2014, the three months ended September 30, 2013 and the period from May 9, 2013 (Date of Inception) to September 30, 2013, the statements of redeemable convertible preferred stock and stockholders’ (deficit) equity for the nine months ended September 30, 2014 and the statements of cash flows for the nine months ended September 30, 2014 and the period from May 9, 2013 (Date of Inception) to September 30, 2013 are unaudited. The interim unaudited financial statements have been prepared on the same basis as the annual audited financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2014 and the results of its operations for the three and nine months ended September 30, 2014, the three months ended September 30, 2013 and the period from May 9, 2013 (Date of inception) to September 30, 2013, and its cash flows for the nine months ended September 30, 2014 and the period from May 9, 2013 (Date of inception) to September 30, 2013. The financial data and other information disclosed in these notes related to the three and nine months ended September 30, 2014, the three months ended September 30, 2013 and for the period from May 9, 2013 (Date of inception) to September 30, 2013 are unaudited. The results for the nine months ended September 30, 2014 are not necessarily indicative of results to be expected for the year ending December 31, 2014, any other interim periods or any future year or period. These unaudited financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended December 31, 2013 included in the Company’s Form S-1 filed July 30, 2014 with the SEC. | |
Significant Accounting Policies | |
The Company’s significant accounting policies are disclosed in the audited financial statements for the period ended December 31, 2013 included in the Company’s Form S-1 filed on July 30, 2014 with the SEC. Since the date of such financial statements, there have been no changes to the Company’s significant accounting policies, other than those detailed below. | |
Property and Equipment | |
Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, which are generally three to five years. Maintenance and repairs are expensed as incurred. Upon disposal, retirement, or sale, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is included in the results of operations. The Company recognized depreciation expense of $1,000 during the three and nine months ended September 30, 2014. There was no depreciation during the three months ended September 30, 2013 and during the period from May 9, 2013 (Date of Inception) to September 30, 2013. | |
Research and Development Expenses | |
Research and development costs are charged to expense as incurred. These costs include, but are not limited to, employee-related expenses, including salaries, benefits, stock-based compensation and travel as well as expenses related to third-party collaborations and contract research agreements; expenses incurred under agreements with contract research organizations and investigative sites that conduct preclinical studies; the cost of acquiring, developing and manufacturing clinical trial materials; facilities, depreciation and other expenses, which include direct and allocated expenses for rent and maintenance of facilities, insurance and other supplies; and costs associated with preclinical activities and regulatory operations. | |
Costs for certain development activities, such as preclinical studies, are recognized based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment, preclinical site activations, or information provided to the Company by its vendors with respect to their actual costs incurred. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the consolidated financial statements as prepaid or accrued research and development expense, as the case may be. | |
Recent Accounting Pronouncements | |
On August 27, 2014, the FASB issued ASU 2014-15 Presentation of Financial Statement-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern.” The FASB believes that requiring management to perform the assessment will enhance the timeliness, clarity, and consistency of related disclosures and improve convergence with IFRSs (which emphasize management’s responsibility for performing the going-concern assessment). However, the time horizon for the assessment (look-forward period) and the disclosure thresholds under U.S. GAAP and IFRSs will continue to differ. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements. | |
On June 10, 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The guidance is intended to reduce the overall cost and complexity associated with financial reporting for development stage entities without reducing the availability of relevant information. The Board also believes the changes will simplify the consolidation accounting guidance by removing the differential accounting requirements for development stage entities. As a result of these changes, there no longer will be any accounting or reporting differences in GAAP between development stage entities and other operating entities. For organizations defined as public business entities the presentation and disclosure requirements in Topic 915 will no longer be required starting with the first annual period beginning after December 15, 2014, including interim periods therein. Early application is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). The Company early adopted this guidance during the three months ended June 30, 2014 and, as a result, the Company no longer presents inception-to-date information about the statements of operations, cash flows, and stockholders’ (deficit) equity. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period, (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements. | |
Reclassifications | |
Certain reclassifications were made to prior period amounts to correct the previous presentation. During the nine months ended September 30, 2014, certain expenses that had been previously classified as general and administrative were reclassified into research and development. The Company reclassified $56 and $167 of expenses related to the three months ended March 31, 2014 and June 30, 2014, respectively. |
Net_Loss_Per_Common_Share
Net Loss Per Common Share | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Net Loss Per Common Share | ' | |||||||||||||
Net Loss Per Common Share | ' | |||||||||||||
3. Net Loss Per Common Share | ||||||||||||||
The following table sets forth the computation of basic and diluted net loss per share for the periods indicated (in thousands, except share and per share data): | ||||||||||||||
Period From | ||||||||||||||
Three Months | Three Months | May 9, 2013 | Nine Months | |||||||||||
Ended | Ended | (Date of Inception) | Ended | |||||||||||
September 30, | September 30, | to September 30, | September 30, | |||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
Basic and diluted net loss per common share calculation: | ||||||||||||||
Net loss | $ | (8,345 | ) | $ | (6,743 | ) | $ | (8,435 | ) | $ | (13,550 | ) | ||
Accretion of redeemable convertible preferred stock | — | (6 | ) | — | (34 | ) | ||||||||
Net loss attributable to common stockholders | $ | (8,345 | ) | $ | (6,749 | ) | $ | (8,435 | ) | $ | (13,584 | ) | ||
Weighted average common shares outstanding | 184,605 | 9,947,321 | 117,942 | 3,510,170 | ||||||||||
Net loss per share of common stock—basic and diluted | $ | (45.20 | ) | $ | (0.68 | ) | $ | (71.52 | ) | $ | (3.87 | ) | ||
The following outstanding securities at September 30, 2013 and 2014 have been excluded from the computation of diluted weighted average shares outstanding, as they would have been anti-dilutive: | ||||||||||||||
2013 | 2014 | |||||||||||||
Redeemable convertible preferred stock | 3,313,201 | — | ||||||||||||
Unvested restricted stock | 264,190 | 187,134 | ||||||||||||
Stock options | — | 1,507,905 | ||||||||||||
3,577,391 | 1,695,039 |
Accrued_Expenses
Accrued Expenses | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accrued Expenses | ' | |||||||
Accrued Expenses | ' | |||||||
4. Accrued Expenses | ||||||||
Accrued expenses consisted of the following (in thousands): | ||||||||
December 31, | September 30, | |||||||
2013 | 2014 | |||||||
Research and development expenses | $ | 81 | $ | 239 | ||||
General and administrative expenses | 108 | 244 | ||||||
Share repurchase obligation | — | 37 | ||||||
$ | 189 | $ | 520 |
Capital_Stock_Redeemable_Conve
Capital Stock, Redeemable Convertible Preferred Stock, and Stockholders' (Deficit) Equity | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Capital Stock, Redeemable Convertible Preferred Stock, and Stockholders' (Deficit) Equity | ' | ||||||||||||
Capital Stock, Redeemable Convertible Preferred Stock, and Stockholders' (Deficit) Equity | ' | ||||||||||||
5. Capital Stock, Redeemable Convertible Preferred Stock, and Stockholders’ (Deficit) Equity | |||||||||||||
Capitalization | |||||||||||||
As of December 31, 2013, the Company’s amended and restated certificate of incorporation reflected the following authorized shares: 15,031,954 shares of capital stock, consisting of 9,375,000 shares of common stock, par value of $0.0001 per share, and 5,656,954 shares of preferred stock, par value of $0.0001 per share of which (i) 5,156,250 shares are designated Series A Redeemable Convertible Preferred Stock (“Series A”) and (ii) 500,704 shares are designated Series A-1 Redeemable Convertible Preferred Stock (“Series A-1”). | |||||||||||||
On July 21, 2014, the Company amended and restated its certificate of incorporation to reflect the following authorized share increases: 31,010,691 shares of capital stock, consisting of 22,187,500 shares of common stock, par value of $0.0001 per share, and 8,823,191 shares of preferred stock, par value of $0.0001 per share of which (i) 5,156,250 shares are designated Series A Redeemable Convertible Preferred Stock, (ii) 500,704 shares are designated Series A-1 Redeemable Convertible Preferred Stock and (iii) 3,166,237 shares are designated Series B Redeemable Convertible Preferred Stock. | |||||||||||||
On August 7, 2014, in connection with its initial public offering, the Company amended and restated its certificate of incorporation to reflect the following authorized share increases: 130,000,000 shares of capital stock, consisting of 125,000,000 shares of common stock, par value $0.0001 per share and 5,000,000 shares of preferred stock, par value $0.0001 per share. | |||||||||||||
On June 28, 2013 and July 3, 2013, the Company issued 452,896 shares of common stock to its co-founders. The shares of common stock issued to two of these co-founders, aggregating 264,190 shares, were subject to vesting pursuant to restricted stock agreements, with 25% of such shares vesting on July 3, 2014 and the remaining 75% vesting in equal monthly installments over a three-year period thereafter. The estimated grant-date fair value of these restricted shares was de minimis. | |||||||||||||
On July 3, 2013, the Company entered into a stock purchase agreement, which was subsequently amended on September 19, 2013, pursuant to which the Company agreed to sell to certain investors, upon the satisfaction of certain conditions, up to 2,812,497 shares of Series A. The initial closing occurred on July 3, 2013 and 1,562,500 shares of Series A were issued. The remaining 1,249,997 shares were issued on September 19, 2013. Upon completing the July and September closings, the Company received net proceeds of approximately $17.8 million. Additionally on July 3, 2013, the Company issued 500,704 shares, with an estimated fair value of approximately $7.0 million, of Series A-1 to Array in connection with entering into a collaboration agreement (see Note 6). The estimated fair value of these shares has been recognized as research and development expense-related party in the accompanying unaudited condensed statements of operations. | |||||||||||||
On February 28, 2014, the Company filed with the United States Food and Drug Administration an Investigational New Drug Application for a tyrosine kinase inhibitor targeted to the TRK family of receptors. As a result and in accordance with the provisions of the stock purchase agreement entered into on July 3, 2013, the Company issued 2,343,753 shares of Series A at a price of $6.40 per share and received net proceeds of $15.0 million on March 18, 2014. | |||||||||||||
On April 24, 2014 and June 24, 2014, the Company entered into stock purchase agreements pursuant to which the Company agreed to sell 2,664,343 and 501,890 shares, respectively, of Series B, $0.0001 par value, at a purchase price of $8.9661 per share. Upon completing the April and June offerings, the Company received gross proceeds of approximately $28.4 million. | |||||||||||||
As previously discussed in Note 1, the Company completed its initial public offering in August 2014. As part of that offering, all of the Company’s outstanding convertible preferred stock was converted into an aggregate total of 9,932,042 shares of common stock. | |||||||||||||
2013 Equity Incentive Plan | |||||||||||||
Effective July 2, 2013, the Company adopted the 2013 Equity Incentive Plan, which was amended in November 2013 (the 2013 “Plan”). The 2013 Plan provides for the granting of incentive stock options, non-statutory stock options and the issuance of restricted stock awards. As of December 31, 2013 and September 30, 2014, there were 905,796 and 1,544,615 shares, respectively, of common stock authorized for issuance in connection with the Plan, of which there were 224,734 and 0 shares available for future issuance, respectively. | |||||||||||||
Incentive options may be granted to employees, including members of the Board. Non-statutory stock options and purchase rights are granted to employees and consultants of the Company, including members of the Board and advisory board members. The terms of the stock option agreements, including the purchase price per share payable upon exercise of the non-statutory options, are determined by the Board. The exercise price of the incentive options shall not be less than the fair market value per share of common stock on the date of grant. The maximum term of the options granted is ten years, unless an employee owns more than 10% of the total combined voting power of all classes of stock of the Company. | |||||||||||||
Certain options are eligible for exercise prior to vesting. Exercised but unvested shares are subject to repurchase by the Company at the initial exercise price. The proceeds from the shares subject to repurchase are classified as a liability and reclassified to equity as the shares vest. Under the 2013 Plan’s early exercise feature, the Company could be required to repurchase 10,166 shares at $3.65 per share as of September 30, 2014. The Company records cash received from early exercised shares as a liability. As of September 30, 2014, $37,000 has been recorded as a liability and included in accrued expenses. In connection with the Company’s initial public offering, no further grants will be made under this plan and all remaining shares available for grant were transferred to the 2014 Incentive Plan. | |||||||||||||
2014 Equity Incentive Plan | |||||||||||||
The Company adopted a 2014 Equity Incentive Plan that became effective on July 30, 2014 and serves as the successor to the 2013 Equity Incentive Plan. The 2014 Equity Incentive Plan provides for the grant of awards to employees, directors, consultants, independent contractors and advisors, provided the consultants, independent contractors, directors and advisors are natural persons that render services not in connection with the offer and sale of securities in a capital-raising transaction. The exercise price of stock options must be at least equal to the fair market value of our common stock on the date of grant. | |||||||||||||
The Company has reserved 1,092,085 shares of its common stock to be issued under the 2014 Equity Incentive Plan of which 1,013,960 shares were available for future issuance as of September 30, 2014. Shares will increase automatically on January 1 of each year from 2015 through 2024 by the number of shares equal to 3.0% of the aggregate number of outstanding shares of our common stock as of the immediately preceding December 31. The Company’s Board may reduce the amount of the increase in any particular year. | |||||||||||||
The 2014 Equity Incentive Plan authorizes the award of stock options, restricted stock awards, or RSAs, stock appreciation rights, or SARs, restricted stock units, or RSUs, performance awards and stock bonuses. | |||||||||||||
The following table summarizes stock option activity under the 2013 and 2014 Plans for the period from December 31, 2013 through September 30, 2014: | |||||||||||||
Average | |||||||||||||
Weighted- | Remaining | Aggregate | |||||||||||
Number | Average | Contractual | Intrinsic value | ||||||||||
of Shares | Exercise Price | Term (in years) | (in thousands) | ||||||||||
Outstanding at December 31, 2013 | 681,056 | $ | 1.18 | 9.92 | |||||||||
Granted | 941,667 | 5 | |||||||||||
Exercised | (114,818 | ) | 1.45 | ||||||||||
Cancelled | — | — | |||||||||||
Forfeited | — | — | |||||||||||
Outstanding at September 30, 2014 | 1,507,905 | $ | 3.54 | 9.51 | $ | 14,358 | |||||||
Vested and expected to vest at September 30, 2014 | 1,507,905 | $ | 3.54 | 9.51 | $ | 14,358 | |||||||
Exercisable at September 30, 2014 | 187,835 | $ | 2.07 | 9.38 | $ | 2,077 | |||||||
Weighted-average grant date fair value of options granted during the nine months ended September 30, 2014 | $ | 9.54 | |||||||||||
As of September 30, 2014, there was $10.4 million of total unrecognized compensation expense related to options granted but not yet vested. This amount will be recognized as expense over a weighted-average period of 3.44 years. | |||||||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of option awards with the following weighted-average assumptions, which are based on industry comparative information, for the period indicated: | |||||||||||||
Nine Months | |||||||||||||
Ended | |||||||||||||
September 30, 2014 | |||||||||||||
Risk-free interest rate | 2.02 | % | |||||||||||
Expected dividend yield | 0 | % | |||||||||||
Expected stock price volatility | 89.28 | % | |||||||||||
Expected term of options (in years) | 6.66 | ||||||||||||
Expected forfeiture rate | 0 | % | |||||||||||
The weighted-average valuation assumptions were determined as follows: | |||||||||||||
· Risk-free interest rate: The Company bases the risk-free interest rate on the interest rate payable on U.S. Treasury securities in effect at the time of grant for a period that is commensurate with the assumed expected option term. | |||||||||||||
· Expected annual dividends: The estimate for annual dividends is 0%, because the Company has not historically paid, and does not expect for the foreseeable future to pay, a dividend. | |||||||||||||
· Expected stock price volatility: The expected volatility used is based on historical volatilities of similar entities within the Company’s industry which were commensurate with the Company’s expected term assumption. | |||||||||||||
· Expected term of options: The expected term of options represents the period of time options are expected to be outstanding. The expected term of the options granted to employees is derived from the “simplified” method as described in SAB 107 relating to stock-based compensation. The expected term for options granted to non-employees is equal to the contractual term of the awards. | |||||||||||||
· Expected forfeiture rate: The Company’s estimated annual forfeiture rate was 0%, based on historical forfeiture experience of various employee groups. | |||||||||||||
· The estimated fair value of the Company’s stock-based awards is amortized on a straight-line basis over the awards’ service period for those awards with graded vesting and which contain only a service condition. For awards with graded vesting and a performance and service condition, when achievement of the performance condition is deemed probable, the Company recognizes compensation cost using the accelerated recognition method over the awards’ service period. | |||||||||||||
Share-based compensation expense recognized was as follows (in thousands): | |||||||||||||
Three Months | Nine Months | ||||||||||||
Ended September 30, | Ended September | ||||||||||||
2014 | 30, 2014 | ||||||||||||
Research and development | $ | 1,712 | $ | 2,037 | |||||||||
General and administrative | 323 | 535 | |||||||||||
$ | 2,035 | $ | 2,572 | ||||||||||
2014 Employee Stock Purchase Plan | |||||||||||||
The Company adopted a 2014 Employee Stock Purchase Plan (“ESPP”) that became effective on July 31, 2014, which was the effective date of the Company’s registration statement. The ESPP provides employees of the Company, including any parent or subsidiary companies that the Board designates from time to time as a corporation that shall participate in the plan, with a means of acquiring an equity interest in the Company and to provide an incentive for continued employment. | |||||||||||||
There are 149,600 shares of common stock reserved for future issuances under the ESPP. Any employee regularly employed by the Company for six months or more on a full-time or part-time basis (20 hours or more per week on a regular schedule) will be eligible to participate in the plan. The ESPP will operate in successive six month offering periods. Each eligible employee who has elected to participate may purchase up to 1,000 shares or $25,000 during each offering period. The purchase price will be the lower of (i) 85% of the fair market value of a share of common stock on the first trading day of the offering period or (ii) 85% of the fair market value of a share of common stock on the last trading day of the offering period. The ESPP will continue for a period of ten years from the first purchase date under the plan unless otherwise terminated by the Board. As of November 14, 2014, no commencement date for the first offering period has been approved by the Board or compensation committee and no shares have been issued under the ESPP. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies. | ' |
Commitments and Contingencies | ' |
6. Commitments and Contingencies | |
Array Collaboration Agreement | |
On July 3, 2013, the Company signed a multi-year strategic collaboration agreement with Array, and this agreement was subsequently amended on November 26, 2013, April 10, 2014 and October 13, 2014. Under the terms of the collaboration agreement, the Company obtained certain rights to Array’s TRK inhibitor program, as well as additional novel oncology targets. The Company has worldwide commercial rights to each product candidate from the collaboration and Array participates in any potential successes through milestones, royalties, and an equity ownership in the Company. | |
With respect to the discovery and preclinical program, the collaboration agreement runs through July 3, 2016, and the Company has the option to extend the term for up to two additional one-year renewal periods by providing written notice to Array at least three months before the end of the initial discovery and preclinical development programs or the renewal period, if applicable. In addition to LOXO-101, the parties designated 12 discovery targets, of which seven are to be selected for additional study on or before January 2015, which will be reduced to four on or before January 2016. The Company has the option to increase the total candidate selection number to five for a modest additional payment. | |
As part of the agreement the Company agreed to pay Array a fixed amount per month, based on Array’s commitment to provide full-time equivalents and other support relating to the conduct of the discovery and preclinical development programs. The Company recorded related-party research and development expenses of $8.1 million and $2.4 million for the three months ended September 30, 2013 and 2014, respectively and $8.2 million and $5.4 million for the period from May 9, 2013 (Date of Inception) to September 30, 2013 and the nine months ended September 30, 2014, respectively. The related-party research and development expenses were related to the conduct of the discovery preclinical development programs by Array. | |
Milestones | |
With respect to product candidates directed to TRK, including LOXO-101 and its back-up compounds, the Company could be required to pay Array up to $222 million in milestone payments, the substantial majority of which are due upon the achievement of commercial milestones. With respect to product candidates directed to targets other than TRK, the Company could be required to pay Array up to $213 million in milestone payments, the substantial majority of which are due upon the achievement of commercial milestones. | |
Royalties | |
The Company is required to pay Array mid-single digit royalties on worldwide net sales of products directed to TRK and directed to targets. With respect to the royalty on products directed to targets, the Company has the right to credit certain milestone payments against royalties on sales of products directed to such target. | |
Convertible preferred stock issuance | |
In connection with this agreement, the Company issued Array 500,704 shares of Series A-1 convertible preferred stock, par value $0.0001. The Company recognized, as a component of research and development expense with related party approximately $7.0 million related to the estimated fair value of the shares issued during the period from May 9, 2013 (date of inception) to December 31, 2013. As previously discussed in Note 1, the Company completed its initial public offering in August 2014. As part of that offering, all of the convertible preferred stock was converted into shares of common stock. | |
Research and Development Arrangements | |
In the course of normal business operations, the Company enters into agreements with contract service organizations, or CROs, to assist in the performance of research and development and preclinical activities. Expenditures to CROs may represent a significant cost in preclinical development for the Company in future periods. The Company can elect to discontinue the work under these agreements at any time. The Company could also enter into additional collaborative research, contract research, manufacturing, and supplier agreements in the future, which may require upfront payments and even long-term commitments of cash. | |
Legal Proceedings | |
The Company is not involved in any legal proceeding that it expects to have a material effect on its business, financial condition, results of operations and cash flows. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
7. Related Party Transactions | |
The Company recorded related-party research and development expenses of $8.1 million and $2.4 million for the three months ended September 30, 2013 and 2014, respectively and $8.2 million and $5.4 million for the period from May 9, 2013 (Date of Inception) to September 30, 2013 and the nine months ended September 30, 2014, respectively, as a component of research and development with a related party for services provided by Array under the collaboration agreement as described in further detail above in Note 6. As of September 30, 2014, the Company had $0.6 million in prepaid expenses to Array under the collaboration agreement for services that will be provided in subsequent periods. | |
In October 2014, Dr. Lori Kunkel was appointed a member of the Company’s board of directors as discussed in Note 8 Subsequent Events. Dr. Kunkel has a consulting agreement with the Company to assist in the Company’s drug development process. Dr. Kunkel is eligible to receive a maximum of $15,000 monthly for her consulting work. Payments are expensed as incurred and recorded as a component of research and development expenses. During the three and nine months ended September 30, 2014, the Company recognized expenses of $30,000 and $51,000, respectively, in accordance with the terms of the consulting agreement. As of September 30, 2014, there was $15,000 included in accounts payable to Dr. Kunkel. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
8. Subsequent Events | |
On October 13, 2014, the Company and Array entered into the third amendment to the collaboration agreement. Pursuant to the amendment, the parties agreed to change the number of targets that were discontinued, and the timing of such discontinuation, as described in Note 6. | |
On October 23, 2014, the board of directors appointed Dr. Lori Kunkel as a Class II director. Pursuant to that certain Consulting Letter Agreement entered into by and between Loxo and Dr. Kunkel on June 23, 2014, Dr. Kunkel currently holds 26,840 shares of common stock of Loxo and options representing the right to purchase 109,374 shares of common stock of Loxo, together representing approximately $1.7 million and she receives up to a maximum of $15,000 monthly for her consulting work. She will receive no additional compensation as a director. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Summary of Significant Accounting Policies | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). | |
Unaudited Interim Financial Information | ' |
Unaudited Interim Financial Information | |
The accompanying balance sheet as of December 31, 2013, was derived from the Company’s audited financial statements included in Form S-1 filed on July 30, 2014 with the SEC that was declared effective on July 31, 2014. | |
The accompanying balance sheet as of September 30, 2014, the statements of operations for the three and nine months ended September 30, 2014, the three months ended September 30, 2013 and the period from May 9, 2013 (Date of Inception) to September 30, 2013, the statements of redeemable convertible preferred stock and stockholders’ (deficit) equity for the nine months ended September 30, 2014 and the statements of cash flows for the nine months ended September 30, 2014 and the period from May 9, 2013 (Date of Inception) to September 30, 2013 are unaudited. The interim unaudited financial statements have been prepared on the same basis as the annual audited financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2014 and the results of its operations for the three and nine months ended September 30, 2014, the three months ended September 30, 2013 and the period from May 9, 2013 (Date of inception) to September 30, 2013, and its cash flows for the nine months ended September 30, 2014 and the period from May 9, 2013 (Date of inception) to September 30, 2013. The financial data and other information disclosed in these notes related to the three and nine months ended September 30, 2014, the three months ended September 30, 2013 and for the period from May 9, 2013 (Date of inception) to September 30, 2013 are unaudited. The results for the nine months ended September 30, 2014 are not necessarily indicative of results to be expected for the year ending December 31, 2014, any other interim periods or any future year or period. These unaudited financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended December 31, 2013 included in the Company’s Form S-1 filed July 30, 2014 with the SEC. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, which are generally three to five years. Maintenance and repairs are expensed as incurred. Upon disposal, retirement, or sale, the related cost and accumulated depreciation is removed from the accounts and any resulting gain or loss is included in the results of operations. The Company recognized depreciation expense of $1,000 during the three and nine months ended September 30, 2014. There was no depreciation during the three months ended September 30, 2013 and during the period from May 9, 2013 (Date of Inception) to September 30, 2013. | |
Research and Development Expenses | ' |
Research and Development Expenses | |
Research and development costs are charged to expense as incurred. These costs include, but are not limited to, employee-related expenses, including salaries, benefits, stock-based compensation and travel as well as expenses related to third-party collaborations and contract research agreements; expenses incurred under agreements with contract research organizations and investigative sites that conduct preclinical studies; the cost of acquiring, developing and manufacturing clinical trial materials; facilities, depreciation and other expenses, which include direct and allocated expenses for rent and maintenance of facilities, insurance and other supplies; and costs associated with preclinical activities and regulatory operations. | |
Costs for certain development activities, such as preclinical studies, are recognized based on an evaluation of the progress to completion of specific tasks using data such as patient enrollment, preclinical site activations, or information provided to the Company by its vendors with respect to their actual costs incurred. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the consolidated financial statements as prepaid or accrued research and development expense, as the case may be. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
On August 27, 2014, the FASB issued ASU 2014-15 Presentation of Financial Statement-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern.” The FASB believes that requiring management to perform the assessment will enhance the timeliness, clarity, and consistency of related disclosures and improve convergence with IFRSs (which emphasize management’s responsibility for performing the going-concern assessment). However, the time horizon for the assessment (look-forward period) and the disclosure thresholds under U.S. GAAP and IFRSs will continue to differ. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements. | |
On June 10, 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The guidance is intended to reduce the overall cost and complexity associated with financial reporting for development stage entities without reducing the availability of relevant information. The Board also believes the changes will simplify the consolidation accounting guidance by removing the differential accounting requirements for development stage entities. As a result of these changes, there no longer will be any accounting or reporting differences in GAAP between development stage entities and other operating entities. For organizations defined as public business entities the presentation and disclosure requirements in Topic 915 will no longer be required starting with the first annual period beginning after December 15, 2014, including interim periods therein. Early application is permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued (public business entities) or made available for issuance (other entities). The Company early adopted this guidance during the three months ended June 30, 2014 and, as a result, the Company no longer presents inception-to-date information about the statements of operations, cash flows, and stockholders’ (deficit) equity. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period, (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements. | |
Reclassifications | ' |
Reclassifications | |
Certain reclassifications were made to prior period amounts to correct the previous presentation. During the nine months ended September 30, 2014, certain expenses that had been previously classified as general and administrative were reclassified into research and development. The Company reclassified $56 and $167 of expenses related to the three months ended March 31, 2014 and June 30, 2014, respectively. |
Net_Loss_Per_Common_Share_Tabl
Net Loss Per Common Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Net Loss Per Common Share | ' | |||||||||||||
Schedule of computation of basic and diluted net loss per share | ' | |||||||||||||
The following table sets forth the computation of basic and diluted net loss per share for the periods indicated (in thousands, except share and per share data): | ||||||||||||||
Period From | ||||||||||||||
Three Months | Three Months | May 9, 2013 | Nine Months | |||||||||||
Ended | Ended | (Date of Inception) | Ended | |||||||||||
September 30, | September 30, | to September 30, | September 30, | |||||||||||
2013 | 2014 | 2013 | 2014 | |||||||||||
Basic and diluted net loss per common share calculation: | ||||||||||||||
Net loss | $ | (8,345 | ) | $ | (6,743 | ) | $ | (8,435 | ) | $ | (13,550 | ) | ||
Accretion of redeemable convertible preferred stock | — | (6 | ) | — | (34 | ) | ||||||||
Net loss attributable to common stockholders | $ | (8,345 | ) | $ | (6,749 | ) | $ | (8,435 | ) | $ | (13,584 | ) | ||
Weighted average common shares outstanding | 184,605 | 9,947,321 | 117,942 | 3,510,170 | ||||||||||
Net loss per share of common stock—basic and diluted | $ | (45.20 | ) | $ | (0.68 | ) | $ | (71.52 | ) | $ | (3.87 | ) | ||
Schedule of outstanding securities excluded from the computation of diluted weighted average shares outstanding, as they would have been anti-dilutive | ' | |||||||||||||
2013 | 2014 | |||||||||||||
Redeemable convertible preferred stock | 3,313,201 | — | ||||||||||||
Unvested restricted stock | 264,190 | 187,134 | ||||||||||||
Stock options | — | 1,507,905 | ||||||||||||
3,577,391 | 1,695,039 |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accrued Expenses | ' | |||||||
Schedule of accrued expenses | ' | |||||||
Accrued expenses consisted of the following (in thousands): | ||||||||
December 31, | September 30, | |||||||
2013 | 2014 | |||||||
Research and development expenses | $ | 81 | $ | 239 | ||||
General and administrative expenses | 108 | 244 | ||||||
Share repurchase obligation | — | 37 | ||||||
$ | 189 | $ | 520 |
Capital_Stock_Redeemable_Conve1
Capital Stock, Redeemable Convertible Preferred Stock, and Stockholders' (Deficit) Equity (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Capital Stock, Redeemable Convertible Preferred Stock, and Stockholders' (Deficit) Equity | ' | ||||||||||||
Summary of stock option activity under the 2013 and 2014 Plan | ' | ||||||||||||
Average | |||||||||||||
Weighted- | Remaining | Aggregate | |||||||||||
Number | Average | Contractual | Intrinsic value | ||||||||||
of Shares | Exercise Price | Term (in years) | (in thousands) | ||||||||||
Outstanding at December 31, 2013 | 681,056 | $ | 1.18 | 9.92 | |||||||||
Granted | 941,667 | 5 | |||||||||||
Exercised | (114,818 | ) | 1.45 | ||||||||||
Cancelled | — | — | |||||||||||
Forfeited | — | — | |||||||||||
Outstanding at September 30, 2014 | 1,507,905 | $ | 3.54 | 9.51 | $ | 14,358 | |||||||
Vested and expected to vest at September 30, 2014 | 1,507,905 | $ | 3.54 | 9.51 | $ | 14,358 | |||||||
Exercisable at September 30, 2014 | 187,835 | $ | 2.07 | 9.38 | $ | 2,077 | |||||||
Weighted-average grant date fair value of options granted during the nine months ended September 30, 2014 | $ | 9.54 | |||||||||||
Schedule of weighted-average assumptions under the Black-Scholes option pricing model estimate the fair value of option awards | ' | ||||||||||||
Nine Months | |||||||||||||
Ended | |||||||||||||
September 30, 2014 | |||||||||||||
Risk-free interest rate | 2.02 | % | |||||||||||
Expected dividend yield | 0 | % | |||||||||||
Expected stock price volatility | 89.28 | % | |||||||||||
Expected term of options (in years) | 6.66 | ||||||||||||
Expected forfeiture rate | 0 | % | |||||||||||
Schedule of Share-based compensation expense recognized | ' | ||||||||||||
Share-based compensation expense recognized was as follows (in thousands): | |||||||||||||
Three Months | Nine Months | ||||||||||||
Ended September 30, | Ended September | ||||||||||||
2014 | 30, 2014 | ||||||||||||
Research and development | $ | 1,712 | $ | 2,037 | |||||||||
General and administrative | 323 | 535 | |||||||||||
$ | 2,035 | $ | 2,572 |
Organization_and_Description_o1
Organization and Description of the Business (Details) (USD $) | 0 Months Ended | 1 Months Ended | 5 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
Jul. 03, 2013 | Aug. 31, 2014 | Jul. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 06, 2014 | Aug. 06, 2014 | Aug. 06, 2014 | Sep. 04, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | |
item | Convertible Preferred Stock [Member] | Initial public offering | Private placement | Over-allotment option | Net offering proceeds | Offering expenses | ||||||
Organization and Description of the Business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Organization and description of the business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock split ratio of the common stock | 0.48309 | ' | 1.5625 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock sold | ' | ' | ' | ' | ' | ' | ' | 5,261,538 | 230,769 | 642,000 | ' | ' |
Initial public offering price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $13 | ' | $13 | ' | ' |
Aggregate gross proceeds from shares sold | ' | ' | ' | ' | ' | ' | ' | $68,400,000 | ' | ' | $72,400,000 | ' |
Aggregate gross proceeds from shares sold | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' |
Aggregate shares of common stock issued upon conversion of all outstanding convertible preferred stock | ' | ' | ' | ' | ' | ' | 9,932,042 | ' | ' | ' | ' | ' |
Underwriters underwriting discounts and commissions paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,600,000 |
Offering expense | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate gross proceeds from shares sold | ' | ' | ' | 1,000 | 74,331,000 | ' | ' | ' | ' | 8,300,000 | ' | ' |
Working capital | ' | ' | ' | ' | 119,300,000 | ' | ' | ' | ' | ' | ' | ' |
Accumulated deficit | ' | ' | ' | ' | 23,840,000 | 10,290,000 | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | $16,291,000 | $118,621,000 | $14,994,000 | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 5 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Research and development expenses | Research and development expenses | Minimum | Maximum | |||||
Property and equipment | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful lives of the assets | ' | ' | ' | ' | ' | ' | '3 years | '5 years |
Depreciation expense | $1 | $0 | $0 | $1 | ' | ' | ' | ' |
General and administrative expenses reclassified into research and development | ' | ' | ' | ' | $167 | $56 | ' | ' |
Net_Loss_Per_Common_Share_Deta
Net Loss Per Common Share (Details) (USD $) | 3 Months Ended | 5 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Basic and diluted net loss per common share calculation: | ' | ' | ' | ' | ' |
Net loss | ($6,743) | ($8,345) | ($8,435) | ($13,550) | ' |
Accretion of redeemable convertible preferred stock | -6 | ' | ' | -34 | ' |
Net loss attributable to common stockholders | ($6,749) | ($8,345) | ($8,435) | ($13,584) | ' |
Weighted average common shares outstanding | 9,947,321 | 184,605 | 117,942 | 3,510,170 | ' |
Net loss per share of common stock-basic and diluted (in dollars per share) | ($0.68) | ($45.20) | ($71.52) | ($3.87) | ' |
Outstanding securities excluded from computation of diluted weighted average shares outstanding, as they would have been anti-dilutive | ' | ' | ' | ' | ' |
Total (in shares) | ' | ' | ' | 1,695,039 | 3,577,391 |
Redeemable convertible preferred stock | ' | ' | ' | ' | ' |
Outstanding securities excluded from computation of diluted weighted average shares outstanding, as they would have been anti-dilutive | ' | ' | ' | ' | ' |
Total (in shares) | ' | ' | ' | ' | 3,313,201 |
Unvested restricted stock | ' | ' | ' | ' | ' |
Outstanding securities excluded from computation of diluted weighted average shares outstanding, as they would have been anti-dilutive | ' | ' | ' | ' | ' |
Total (in shares) | ' | ' | ' | 187,134 | 264,190 |
Stock options | ' | ' | ' | ' | ' |
Outstanding securities excluded from computation of diluted weighted average shares outstanding, as they would have been anti-dilutive | ' | ' | ' | ' | ' |
Total (in shares) | ' | ' | ' | 1,507,905 | ' |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Expenses | ' | ' |
Accrued expenses | $520 | $189 |
Research and development expenses | ' | ' |
Accrued Expenses | ' | ' |
Accrued expenses | 239 | 81 |
General and administrative expenses | ' | ' |
Accrued Expenses | ' | ' |
Accrued expenses | 244 | 108 |
Shares repurchase obligation | ' | ' |
Accrued Expenses | ' | ' |
Accrued expenses | $37 | ' |
Capital_Stock_Redeemable_Conve2
Capital Stock, Redeemable Convertible Preferred Stock, and Stockholders' (Deficit) Equity (Details) (USD $) | 0 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 2 Months Ended | |||||||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Aug. 06, 2014 | Sep. 30, 2014 | Jul. 21, 2014 | Dec. 31, 2013 | Aug. 06, 2014 | Aug. 07, 2014 | Jul. 21, 2014 | Aug. 07, 2014 | Jul. 03, 2013 | Jun. 28, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 21, 2014 | Dec. 31, 2013 | Aug. 07, 2014 | Sep. 30, 2014 | Jul. 21, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 18, 2014 | Sep. 19, 2013 | Feb. 28, 2014 | Jul. 03, 2013 | Sep. 30, 2014 | Jul. 21, 2014 | Dec. 31, 2013 | Jul. 03, 2013 | Jul. 21, 2014 | Jun. 30, 2014 | Apr. 30, 2014 | Jun. 24, 2014 | Apr. 24, 2014 | Jun. 24, 2014 |
Initial public offering | Initial public offering | Common stock | Common stock | Common stock | Common stock | Common stock | Common stock | Common stock | Common stock | Common stock | Preferred stock | Preferred stock | Preferred stock | Series A preferred stock | Series A preferred stock | Series A preferred stock | Series A preferred stock | Series A preferred stock | Series A preferred stock | Series A preferred stock | Series A preferred stock | Series A-1 preferred stock | Series A-1 preferred stock | Series A-1 preferred stock | Series A-1 preferred stock | Series B preferred stock | Series B preferred stock | Series B preferred stock | Series B preferred stock | Series B preferred stock | Series B preferred stock | |||||
Initial public offering | Co-founders | Co-founders | Two co-founders | Two co-founders | Two co-founders | Two co-founders | Two co-founders | Initial public offering | Investors | Investors | Investors | Investors | Collaboration agreement | Stock purchase agreement | Stock purchase agreement | Stock purchase agreement | ||||||||||||||||||||
item | Vesting on July 3, 2014 | Vesting in equal monthly installments over a specific period thereafter | Vesting in equal monthly installments over a specific period thereafter | Stock purchase agreement | Stock purchase agreement | Stock purchase agreement | Stock purchase agreement | Array | ||||||||||||||||||||||||||||
Maximum | ||||||||||||||||||||||||||||||||||||
Capitalization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital stock, shares authorized | ' | ' | 31,010,691 | 15,031,954 | ' | 130,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | 125,000,000 | ' | 9,375,000 | ' | ' | 22,187,500 | 125,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | ' | $0.00 | ' | $0.00 | ' | ' | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,823,191 | 5,656,954 | 5,000,000 | 0 | 5,156,250 | ' | 5,156,250 | ' | ' | ' | 2,812,497 | 0 | 500,704 | 500,704 | ' | 3,166,237 | ' | ' | ' | ' | ' |
Preferred stock, par value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 | $0.00 | $0.00 | ' | ' | $0.00 | ' | ' | ' | ' | $0.00 | ' | $0.00 | $0.00 | ' | ' | ' | $0.00 | $0.00 | $0.00 |
Shares issued | ' | ' | ' | ' | 5,261,538 | ' | ' | ' | 452,896 | 452,896 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 501,890 | 2,664,343 | ' |
Number of co-founders to whom stock is issued and is subject to vesting pursuant to the restricted stock agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued that are subject to vesting pursuant to the restricted stock agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 264,190 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 2,812,497 | ' | 1,249,997 | 2,343,753 | 1,562,500 | 0 | ' | 500,704 | 500,704 | ' | ' | ' | ' | ' | ' |
Net proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15 | $17.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $28.40 |
Estimated fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7 | ' | ' | ' | ' | ' | ' |
Share purchase price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.40 | ' | ' | ' | $6.40 | ' | ' | ' | ' | ' | ' | $8.97 | $8.97 | $8.97 | $8.97 | $8.97 |
Number of shares of common stock into which outstanding convertible preferred stock are converted | 9,932,042 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital_Stock_Redeemable_Conve3
Capital Stock, Redeemable Convertible Preferred Stock, and Stockholders' (Deficit) Equity (Details 2) (USD $) | Aug. 06, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 02, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 |
Initial public offering | 2013 and 2014 Equity Incentive Plans | 2013 and 2014 Equity Incentive Plans | 2013 Equity Incentive Plan | 2013 Equity Incentive Plan | 2013 Equity Incentive Plan | 2013 Equity Incentive Plan | 2013 Equity Incentive Plan | 2014 Equity Incentive Plan | 2014 Equity Incentive Plan | 2014 Employee Stock Purchase Plan | 2014 Employee Stock Purchase Plan | 2014 Employee Stock Purchase Plan | 2014 Employee Stock Purchase Plan | |
Stock option | Stock option | Minimum | Stock option | Stock option | First day of trading | Last day of trading in offering period | Minimum | |||||||
Maximum | ||||||||||||||
2013 and 2014 Equity Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for issuance | ' | ' | ' | 1,544,615 | 905,796 | ' | ' | ' | ' | 1,092,085 | ' | ' | ' | ' |
Shares available for future issuance | ' | ' | ' | 0 | 224,734 | ' | ' | ' | ' | 1,013,960 | ' | ' | ' | ' |
Term of award | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Combined voting power of all classes of stock owned used to determine term of award (as a percent) | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Shares that could be required to be repurchased | ' | ' | ' | 10,166 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price of shares that could be required to be repurchased | ' | ' | ' | $3.65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares subject to repurchase liability, amount recorded in accrued expenses | ' | ' | ' | $37,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in common stock reserved for issuance as percentage of the aggregate number of outstanding shares of common stock | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | 681,056 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | 941,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | -114,818 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | ' | 1,507,905 | 681,056 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period (in shares) | ' | 1,507,905 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in shares) | ' | 187,835 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value of options granted (in dollars per share) | ' | $9.54 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | $1.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | $5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | $1.45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | $3.54 | $1.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period (in dollars per share) | ' | $3.54 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | ' | $2.07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period | ' | '9 years 6 months 4 days | '9 years 11 months 1 day | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | '9 years 6 months 4 days | '9 years 11 months 1 day | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period | ' | '9 years 6 months 4 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | '9 years 4 months 17 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | 14,358,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period | ' | 14,358,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | 2,077,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | ' | 10,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period for recognition | ' | '3 years 5 months 8 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average assumptions used to estimate fair value of option awards using Black Scholes option pricing model | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate | ' | ' | ' | ' | ' | ' | 2.02% | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' |
Expected stock price volatility | ' | ' | ' | ' | ' | ' | 89.28% | ' | ' | ' | ' | ' | ' | ' |
Expected term of options (in years) | ' | ' | ' | ' | ' | ' | '6 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' |
Expected forfeiture rate | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' |
Fair value of common stock (in dollars per share) | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock reserved for issuance under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 149,600 | ' | ' | ' |
Employment period required to participate in the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months |
Period per week on a regular schedule required to participate in the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 hours |
Maximum shares which may be purchased by eligible employee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' |
Maximum value of shares which may be purchased by eligible employee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,000 | ' | ' | ' |
Purchase price as percentage of fair market value of a share of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | 85.00% | ' |
Award term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'P10Y | ' | ' | ' |
Shares issued under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' |
Capital_Stock_Redeemable_Conve4
Capital Stock, Redeemable Convertible Preferred Stock, and Stockholders' (Deficit) Equity (Details 3) (Plan, USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Stock based compensation expense | ' | ' |
Share-based compensation expense | $2,035 | $2,572 |
Research and development | ' | ' |
Stock based compensation expense | ' | ' |
Share-based compensation expense | 1,712 | 2,037 |
General and administrative | ' | ' |
Stock based compensation expense | ' | ' |
Share-based compensation expense | $323 | $535 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 5 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 5 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended | 8 Months Ended | |||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 13, 2014 | Sep. 30, 2014 | Jul. 03, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
Series A-1 preferred stock | Series A-1 preferred stock | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | |||||
Array | Array | Array | Maximum | Series A-1 preferred stock | Product candidates directed to TRK | Product candidates directed to targets other than TRK | Related party | Related party | Related party | Related party | Related party | Related party | Related party | |||||||
Subsequent event | Array | Array | Array | Array | Research and development | Research and development | Array | Array | Array | Array | Product candidates directed to targets other than TRK | |||||||||
item | item | Research and development | Research and development | Research and development | Research and development | Array | ||||||||||||||
Commitments and contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional renewal periods options available to the entity to extend agreement term | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of additional renewal periods options available to the entity to extend agreement term | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of discovery targets designated by the parties | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of discovery targets which are to be selected for additional study on or before January 2015 | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of discovery targets which are to be selected for additional study on or before October 2015 | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of candidates which can be selected by the entity for modest additional payment | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party research and development expenses | ' | ' | ' | ' | ' | ' | $2,400,000 | $5,400,000 | ' | ' | ' | ' | ' | $8,100,000 | $8,200,000 | $2,400,000 | $8,100,000 | $8,200,000 | $5,400,000 | ' |
Maximum milestone payments which the entity could be required to pay | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 222,000,000 | 213,000,000 | ' | ' | ' | ' | ' | ' | ' |
Research and development | $2,623,000 | $37,000 | $43,000 | $4,412,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,000,000 |
Shares issued | ' | ' | ' | ' | 0 | 500,704 | ' | ' | ' | ' | 500,704 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redeemable convertible preferred stock, par value (in dollars per share) | ' | ' | ' | ' | $0.00 | $0.00 | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 5 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2014 | Oct. 23, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | |
Dr. Lori Kunkel | Dr. Lori Kunkel | Dr. Lori Kunkel | Dr. Lori Kunkel | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | Collaboration agreement | ||
Accounts payable | Subsequent event | Research and development | Research and development | Array | Array | Related party | Related party | Related party | Related party | Related party | Related party | ||
Research and development | Research and development | Array | Array | Array | Array | ||||||||
Research and development | Research and development | Research and development | Research and development | ||||||||||
Related party transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party research and development expenses | ' | ' | ' | ' | ' | $2,400,000 | $5,400,000 | $8,100,000 | $8,200,000 | $2,400,000 | $8,100,000 | $8,200,000 | $5,400,000 |
Prepaid expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | 600,000 |
Maximum monthly fees for consulting work | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses recognized for consulting work | 168,000 | ' | ' | 30,000 | 51,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount payable to related parties | ' | $15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 23, 2014 |
Dr. Lori Kunkel | |||
Subsequent event | |||
Subsequent events | ' | ' | ' |
Common stock held (in shares) | 16,634,063 | 452,896 | 26,840 |
Right to purchase common stock (in shares) | ' | ' | 109,374 |
Total common stock held | ' | ' | $1,700,000 |
Maximum monthly fees for consulting work | ' | ' | 15,000 |
Additional compensation | ' | ' | $0 |