Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | Loxo Oncology, Inc. | |
Entity Central Index Key | 1,581,720 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,678,051 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 51,929 | $ 68,177 |
Short-term investments | 103,608 | 85,715 |
Prepaid expenses with related party | 922 | |
Other prepaid expenses and current assets | 4,094 | 1,830 |
Total current assets | 159,631 | 156,644 |
Long-term investments | 1,002 | |
Property and equipment, net | 269 | 88 |
Other assets | 566 | 726 |
Total assets | 161,468 | 157,458 |
Current liabilities: | ||
Accounts payable | 1,021 | 269 |
Accrued expenses and other current liabilities | 5,633 | 2,584 |
Total liabilities | 6,654 | 2,853 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.0001 par value; 125,000,000 shares authorized; 21,678,051 and 19,577,707 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 2 | 2 |
Additional paid-in capital | 266,798 | 221,457 |
Accumulated deficit | (112,042) | (66,838) |
Accumulated other comprehensive income (loss) | 56 | (16) |
Total stockholders' equity | 154,814 | 154,605 |
Total liabilities and stockholders' equity | $ 161,468 | $ 157,458 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Condensed Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 21,678,051 | 19,577,707 |
Common stock, shares outstanding | 21,654,688 | 19,577,707 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating expenses: | ||||
Research and development with related party | $ 2,874 | $ 7,711 | ||
Research and development | $ 14,230 | 3,387 | $ 34,917 | 8,095 |
General and administrative | 3,679 | 2,552 | 10,859 | 7,331 |
Total operating expenses and loss from operations | (17,909) | (8,813) | (45,776) | (23,137) |
Interest income, net | 218 | 42 | 572 | 128 |
Net loss | $ (17,691) | $ (8,771) | $ (45,204) | $ (23,009) |
Per share information: | ||||
Net loss per share of common stock, basic and diluted (in dollars per share) | $ (0.82) | $ (0.53) | $ (2.19) | $ (1.39) |
Weighted average shares outstanding, basic and diluted (in shares) | 21,609,424 | 16,560,610 | 20,659,829 | 16,525,530 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Statements of Comprehensive Loss | ||||
Net loss | $ (17,691) | $ (8,771) | $ (45,204) | $ (23,009) |
Other comprehensive income: | ||||
Unrealized gain on available for sale securities | (38) | 4 | 72 | 35 |
Comprehensive loss | $ (17,729) | $ (8,767) | $ (45,132) | $ (22,974) |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2015 | $ 2 | $ 221,457 | $ (66,838) | $ (16) | $ 154,605 |
Balance (in shares) at Dec. 31, 2015 | 19,577,707 | ||||
Changes in Stockholders' Equity | |||||
Stock-based compensation expense | 5,394 | 5,394 | |||
Stock options exercises | 1,214 | 1,214 | |||
Stock option exercises (in shares) | 174,094 | ||||
Issuance of common stock, net of issuance costs | 38,733 | 38,733 | |||
Issuance of common stock, net of issuance costs (in shares) | 1,926,250 | ||||
Other comprehensive income | 72 | 72 | |||
Net loss | (45,204) | (45,204) | |||
Balance at Sep. 30, 2016 | $ 2 | 266,798 | $ (112,042) | $ 56 | 154,814 |
Balance (in shares) at Sep. 30, 2016 | 21,678,051 | ||||
Changes in Stockholders' Equity | |||||
Issuance of common stock in connection with initial public offering and private placement, net of offering costs | $ 38,733 | $ 38,733 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities: | ||
Net loss | $ (45,204) | $ (23,009) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of premium and discounts on investments | 408 | 285 |
Depreciation of property and equipment | 44 | 11 |
Stock-based compensation | 5,394 | 3,849 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (1,182) | (1,699) |
Accounts payable | 752 | 492 |
Accrued expenses and other current liabilities | 3,049 | 597 |
Net cash used in operating activities | (36,739) | (19,474) |
Investing activities: | ||
Purchases of available-for-sale securities | (121,592) | (65,573) |
Proceeds from maturing available-for-sale securities | 102,361 | 75,320 |
Purchase of property and equipment | (225) | (73) |
Net cash (used in) provided by investing activities | (19,456) | 9,674 |
Financing activities: | ||
Proceeds from issuance of common stock, net | 38,733 | |
Proceeds from the exercise of stock options | 1,214 | 279 |
Net cash provided by financing activities | 39,947 | 279 |
Net decrease in cash and cash equivalents | (16,248) | (9,521) |
Cash and cash equivalents-beginning of period | 68,177 | 43,930 |
Cash and cash equivalents-end of period | $ 51,929 | 34,409 |
Unrealized gain on available for sale securities | 35 | |
Supplemental schedule of noncash financing activities: | ||
Reclassification of share repurchase obligation | $ 37 |
Organization and Description of
Organization and Description of the Business | 9 Months Ended |
Sep. 30, 2016 | |
Organization and Description of the Business | |
Organization and Description of the Business | 1. Loxo Oncology, Inc. (the “Company”) was incorporated on May 9, 2013 in the State of Delaware. The Company is a biopharmaceutical company innovating the development of highly selective medicines for patients with genetically defined cancers. Its pipeline focuses on cancers that are uniquely dependent on single gene abnormalities, such that a single drug has the potential to treat the cancer with dramatic effect. The Company operates in one segment and has its principal office in Stamford, Connecticut. Liquidity At September 30, 2016, the Company had working capital of $153.0 million, an accumulated deficit of $112.0 million and cash, cash equivalents and investments of $156.5 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 preclinical testing, and commercialization of the Company’s products will require significant additional capital. The Company believes that its existing cash, cash equivalents, and investments will be sufficient to enable the Company to continue as a going concern for a reasonable period of time beyond September 30, 2017. 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 Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
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, 2015, was derived from the Company’s audited financial statements included in Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 15, 2016. It is suggested that the interim unaudited condensed financial statements be read in conjunction with the annual financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K. The accompanying balance sheet as of September 30, 2016, the statements of operations for the three and nine months ended September 30, 2016 and 2015, the statements of comprehensive loss for the three and nine months ended September 30, 2016 and 2015, the statement of stockholders’ equity for the period from January 1, 2016 to September 30, 2016 and the statements of cash flows for the nine months ended September 30, 2016 and 2015 are unaudited. The interim unaudited condensed 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, 2016, the results of its operations for the three and nine months ended September 30, 2016 and 2015 and its cash flows for the nine months ended September 30, 2016 and 2015. The interim unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. Significant Accounting Policies The Company’s significant accounting policies are disclosed in the audited financial statements for the year ended December 31, 2015 included in the Company’s Form 10-K filed with the SEC on March 15, 2016. Since the date of such financial statements, there have been no changes to the Company’s significant accounting policies. Recent Accounting Pronouncements In August 2016, the FASB issued ASU No. 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which amended the existing accounting standards for the statement of cash flows by providing guidance on eight classification issues related to the statement of cash flows. ASU 2016-15 will be effective in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The amendments should be applied retrospectively to all periods presented. For issues that are impracticable to apply retrospectively, the amendments may be applied prospectively as of the earliest date practicable. The Company is currently in the process of assessing the impact of ASU 2016-15 on the Company’s financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which provides for simplification of certain aspects of employee share-based payment accounting including income taxes, classification of awards as either equity or liabilities, accounting for forfeitures and classification on the statement of cash flows. ASU 2016-09 will be effective for the Company in the first quarter of 2017 and will be applied either prospectively, retrospectively or using a modified retrospective transition approach depending on the area covered in this update. The Company is currently in the process of assessing the impact of ASU 2016-09 on the Company’s financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) , which requires lessees to recognize assets and liabilities for the rights and obligations created by most leases on their balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. ASU 2016-02 requires modified retrospective adoption for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact the standard may have on the Company’s financial statements and related disclosures. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 will be effective for annual periods and interim periods within those annual periods beginning after December 15, 2017 and early adoption is not permitted. The Company is currently evaluating the impact that the standard will have on the Company’s financial statements and related disclosures. |
Net Loss Per Common Share
Net Loss Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
Net Loss Per Common Share | |
Net Loss Per Common Share | 3. The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated (in thousands, except share and per share data): Three Months Ended Nine months Ended 2016 2015 2016 2015 Basic and diluted net loss per common share calculation: Net loss $ ) $ ) $ ) $ ) Weighted average common shares outstanding — basic and diluted Net loss per share of common stock — basic and diluted $ ) $ ) $ ) $ ) The following outstanding securities at September 30, 2016 and 2015 have been excluded from the computation of diluted weighted average shares outstanding, as they would have been anti-dilutive: 2016 2015 Unvested restricted stock Stock options |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | 4. Financial Instruments The financial instruments recorded in the Company’s balance sheets include cash and cash equivalents, investments, and accounts payable. Included in cash and cash equivalents are money market funds representing a type of mutual fund required by law to invest in low-risk securities (for example, U.S. government bonds, U.S. treasury bills and commercial paper) and overnight repurchase agreements. Money market funds are structured to maintain the fund’s net asset value at $1.00 per unit, which assists in providing adequate liquidity upon demand by the holder. Money market funds pay dividends that generally reflect short-term interest rates. Thus, only the dividend yield fluctuates. Also included in cash and cash equivalents are U.S. government sponsored enterprise debt securities that have a maturity of three months or less from their original acquisition date. Due to their short-term maturity, the carrying amounts of cash and cash equivalents (including money market funds), and accounts payable approximate their fair values. The Company classifies its remaining investments as available-for-sale. Gains or losses on securities sold are based on the specific identification method. For investments classified as available-for-sale, the Company records unrealized gains or losses resulting from changes in fair value between measurement dates as a component of other comprehensive income (loss). (amounts in thousands) Amortized Gross Gross Fair Value September 30, 2016 Overnight repurchase agreements $ $ $ — $ Money market funds — Government enterprise debt securities — — — Total included in cash and cash equivalents — Government enterprise debt securities — U.S. Government debt securities — Short-term available-for-sale securities — Government enterprise debt securities — — Long-term available-for-sale securities — — Total fair value financial instruments $ $ $ — $ December 31, 2015 Overnight repurchase agreements $ $ — $ — $ Money market funds — — Government enterprise debt securities ) Total included in cash and cash equivalents ) Government enterprise debt securities ) U.S. Government debt securities — ) Short-term available-for-sale securities ) Total fair value financial instruments $ $ $ ) $ Fair value guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: · Level 1—Quoted prices in active markets for identical assets or liabilities. · Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s financial assets measured at fair value on a recurring basis at September 30, 2016 were as follows (in thousands): Fair Value Measurements at Measurement Date: Quoted Prices in Active Significant Other Significant Unobservable Total As Of Assets: Government enterprise debt securities $ — $ $ — $ Overnight repurchase agreements — — Money market funds — — U.S. Government debt securities — — Totals $ $ $ — $ The Company’s financial assets measured at fair value on a recurring basis at December 31, 2015 were as follows (in thousands): Fair Value Measurements at Measurement Date: Quoted Prices in Active Significant Other Significant Unobservable Total As Of Assets: Government enterprise debt securities $ — $ $ — $ Overnight repurchase agreements — — Money market funds — — U.S. Government debt securities — — Totals $ $ $ — $ There were no items that were accounted for at fair value on a non-recurring basis for the nine months ended September 30, 2016 and 2015. Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. At September 30, 2016 and December 31, 2015, the Company’s cash and cash equivalents were held by two financial institutions and the amounts on deposit were in excess of Federal Deposit Insurance Company insurance limits. The Company mitigates this risk by depositing its uninsured cash in major well capitalized financial institutions, and by investing excess operating cash in overnight repurchase agreements which are 100% collateralized by U.S. government backed securities with the Company’s bank. The Company has not recognized any losses on its cash and cash equivalents. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Accrued Expenses and Other Current Liabilities | |
Accrued Expenses and Other Current Liabilities | 5. Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, Research and development expenses $ $ General and administrative expenses $ $ Included in the above amounts is $0.8 million and $1.1 million of accrued bonuses at September 30, 2016 and December 31, 2015, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Stock-Based Compensation | |
Stock-Based Compensation | 6. Effective July 2013, the Company adopted the 2013 Equity Incentive Plan, which was amended in November 2013 (the “2013 Plan”). The 2013 Plan provided for the granting of incentive stock options, non-statutory stock options and the issuance of restricted stock awards. As of September 30, 2016, the Company reserved 1,544,615 shares of common stock authorized for issuance in connection with the 2013 Plan. 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. 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 Equity Incentive Plan. The Company adopted the 2014 Equity Incentive Plan (the “2014 Plan”) that became effective on July 30, 2014 and serves as the successor to the 2013 Plan. The 2014 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 other than 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 the Company’s common stock on the date of grant. The Company has reserved 2,178,437 shares of its common stock to be issued under the 2014 Plan of which 1,067,984 shares were available for future issuance as of September 30, 2016. Shares authorized will increase automatically on January 1 of each of 2015 through 2024 by the number of shares equal to 3.0% of the aggregate number of outstanding shares of the Company’s common stock as of the immediately preceding December 31. The Company’s Board of Directors may reduce the amount of the increase in any particular year. The 2014 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 2014 Plan for the period from January 1, 2016 through September 30, 2016: Average Weighted- Remaining Aggregate Number Average Contractual Intrinsic Value of Shares Exercise Price Term (in years) (in thousands) Outstanding at January 1, 2016 $ $ Granted Exercised ) Forfeited, cancelled and expired ) Outstanding at September 30, 2016 $ $ Vested and expected to vest at September 30, 2016 $ $ Exercisable at September 30, 2016 $ $ Weighted-average grant date fair value of options granted during the nine months ended September 30, 2016 $ As of September 30, 2016, there was $16.4 million of total unrecognized compensation expense related to options granted but not yet vested of which $2.7 million is attributable to non-employee awards and subject to re-measurement until vested. The total unrecognized compensation expense of $16.4 million will be recognized as expense over a weighted-average period of 2.6 years. The Company uses the Black-Scholes option pricing model to estimate the fair value of option awards with the following weighted-average assumptions, certain of which are based on industry comparative information, for the period indicated: Nine Months Risk-free interest rate % Expected dividend yield — Expected stock price volatility % Expected term of options (in years) Expected forfeiture rate % 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 Staff Accounting Bulletin 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 is based on historical forfeiture experience of its various employee groups. · Estimated fair value of the Company’s stock-based awards: 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. Stock-based compensation expense recognized was as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Research and development $ $ $ $ General and administrative $ $ $ $ |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 7. Operating Leases The Company leases office space under operating leases for its locations in South San Francisco, California and in Stamford, Connecticut. The Company’s lease agreements contain escalation clauses, accordingly, the Company straight-lines the rent expense over the lease term. In July 2016, the Company subleased its original office space in Stamford, CT that it had vacated during December 2015. The sublease ends in May 2018, which is the end of the Company’s lease term for that space. As of September 30, 2016, the Company expects to receive $65,269 in sublease income over the lease term that will be recorded as an offset to rent expense. Rent expense under operating leases for the three months ended September 30, 2016 and 2015 was $166,236 and $19,382, respectively. Rent expense under operating leases for the nine months ended September 30, 2016 and 2015 was $520,882 and $101,220, respectively. Future minimum lease payments as of September 30, 2016 are as follows (in thousands): Operating 2016 $ 2017 2018 2019 2020 Thereafter $ The Company has the option to extend the term of its existing Stamford, Connecticut lease for one additional five-year period, and it has an option to terminate the lease after 5.5 years subject to payment of an early termination fee both of which are excluded from the table above. Array Bio Pharma (“Array”) Collaboration 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, October 13, 2014, March 31, 2015 and February 18, 2016. Under the terms of the collaboration agreement, the Company obtained certain rights to Array’s tropomyosin receptor kinase (TRK) inhibitor program, as well as additional novel oncology targets, including LOXO-195, rearranged during transfection (RET), and fibroblast growth factor receptor (FGFR). The Company has worldwide commercial rights to each product candidate from the collaboration and Array participates in any potential successes through milestones and royalties. With respect to the discovery and preclinical program, the collaboration agreement, as amended, runs through September 30, 2017, and the Company has the option to extend the term for up to one additional one-year renewal period by providing written notice to Array at least three months before the end of the initial discovery and preclinical development programs term. Before the February 2016 amendment, in addition to LOXO-101, the parties designated 12 discovery targets, of which seven were selected for additional study in January 2015, which was to be reduced to four on or before January 2016. The Company had the option to maintain the total target number at five for an additional payment, and the Company exercised this option to maintain five discovery programs in January 2016. In the February 2016 amendment, the parties designated a total of six discovery targets. An additional payment was due at contract signing, satisfying a prior obligation of the April 2014 amendment. 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. See Note 8 for amounts the Company recorded in related party research and development expenses for the three and nine months ended September 30, 2015. The Company incurred $2.9 million and $9.2 million of research and development expenses under the Array Agreement for the three and nine months ended September 30, 2016, respectively. 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 $223 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. The Company has made or accrued $1.3 million in milestone payments from inception through September 30, 2016. Royalties The Company is required to pay Array mid-single digit royalties on worldwide net sales of products. With respect to the royalty on products directed to targets other than TRK, the Company has the right to credit certain milestone payments against royalties on sales of products directed to such target. Research and Development Arrangements In the course of normal business operations, the Company enters into agreements with clinical research 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 and clinical 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, 2016 | |
Related Party Transactions | |
Related Party Transactions | 8. As of December 31, 2015, Array had indicated that it is no longer a holder of more than 5% of the Company’s common stock; therefore, the Company is not reporting expenses with Array as related party research and development expense for the three and nine months ended September 30, 2016. The Company recorded related party research and development expenses for services provided by Array under a collaboration agreement of $2.9 million and $7.7 million for the three and nine months ended September 30, 2015, respectively. Dr. Lori Kunkel, a board member, had a consulting agreement with the Company to assist in the Company’s drug development process which was modified effective as of October 31, 2015, to provide that she receives only the standard director compensation for her services. Dr. Kunkel was eligible to receive a maximum of $15,000 monthly for her consulting work. Payments were expensed as incurred and recorded as a component of research and development expenses. During the three and nine months ended September 30, 2015, the Company recognized expenses of $45,000 and $135,000, respectively, and no expense in 2016, in accordance with the terms of the consulting agreement. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2015, was derived from the Company’s audited financial statements included in Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 15, 2016. It is suggested that the interim unaudited condensed financial statements be read in conjunction with the annual financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K. The accompanying balance sheet as of September 30, 2016, the statements of operations for the three and nine months ended September 30, 2016 and 2015, the statements of comprehensive loss for the three and nine months ended September 30, 2016 and 2015, the statement of stockholders’ equity for the period from January 1, 2016 to September 30, 2016 and the statements of cash flows for the nine months ended September 30, 2016 and 2015 are unaudited. The interim unaudited condensed 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, 2016, the results of its operations for the three and nine months ended September 30, 2016 and 2015 and its cash flows for the nine months ended September 30, 2016 and 2015. The interim unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. |
Significant Accounting Policies | Significant Accounting Policies The Company’s significant accounting policies are disclosed in the audited financial statements for the year ended December 31, 2015 included in the Company’s Form 10-K filed with the SEC on March 15, 2016. Since the date of such financial statements, there have been no changes to the Company’s significant accounting policies. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2016, the FASB issued ASU No. 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which amended the existing accounting standards for the statement of cash flows by providing guidance on eight classification issues related to the statement of cash flows. ASU 2016-15 will be effective in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The amendments should be applied retrospectively to all periods presented. For issues that are impracticable to apply retrospectively, the amendments may be applied prospectively as of the earliest date practicable. The Company is currently in the process of assessing the impact of ASU 2016-15 on the Company’s financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which provides for simplification of certain aspects of employee share-based payment accounting including income taxes, classification of awards as either equity or liabilities, accounting for forfeitures and classification on the statement of cash flows. ASU 2016-09 will be effective for the Company in the first quarter of 2017 and will be applied either prospectively, retrospectively or using a modified retrospective transition approach depending on the area covered in this update. The Company is currently in the process of assessing the impact of ASU 2016-09 on the Company’s financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) , which requires lessees to recognize assets and liabilities for the rights and obligations created by most leases on their balance sheet. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. ASU 2016-02 requires modified retrospective adoption for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact the standard may have on the Company’s financial statements and related disclosures. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 will be effective for annual periods and interim periods within those annual periods beginning after December 15, 2017 and early adoption is not permitted. The Company is currently evaluating the impact that the standard will have on the Company’s financial statements and related disclosures. |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Net Loss Per Common Share | |
Schedule of computation of basic and diluted net loss per common share | The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated (in thousands, except share and per share data): Three Months Ended Nine months Ended 2016 2015 2016 2015 Basic and diluted net loss per common share calculation: Net loss $ ) $ ) $ ) $ ) Weighted average common shares outstanding — basic and diluted Net loss per share of common stock — basic and diluted $ ) $ ) $ ) $ ) |
Schedule of outstanding securities excluded from the computation of diluted weighted average shares outstanding, as they would have been anti-dilutive | 2016 2015 Unvested restricted stock Stock options |
Fair Value Measurements (Table)
Fair Value Measurements (Table) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements | |
Schedule of available-for-sale securities unrealized gains and losses from changes in fair value | (amounts in thousands) Amortized Gross Gross Fair Value September 30, 2016 Overnight repurchase agreements $ $ $ — $ Money market funds — Government enterprise debt securities — — — Total included in cash and cash equivalents — Government enterprise debt securities — U.S. Government debt securities — Short-term available-for-sale securities — Government enterprise debt securities — — Long-term available-for-sale securities — — Total fair value financial instruments $ $ $ — $ December 31, 2015 Overnight repurchase agreements $ $ — $ — $ Money market funds — — Government enterprise debt securities ) Total included in cash and cash equivalents ) Government enterprise debt securities ) U.S. Government debt securities — ) Short-term available-for-sale securities ) Total fair value financial instruments $ $ $ ) $ |
Schedule of financial assets measured at fair value on a recurring basis | The Company’s financial assets measured at fair value on a recurring basis at September 30, 2016 were as follows (in thousands): Fair Value Measurements at Measurement Date: Quoted Prices in Active Significant Other Significant Unobservable Total As Of Assets: Government enterprise debt securities $ — $ $ — $ Overnight repurchase agreements — — Money market funds — — U.S. Government debt securities — — Totals $ $ $ — $ The Company’s financial assets measured at fair value on a recurring basis at December 31, 2015 were as follows (in thousands): Fair Value Measurements at Measurement Date: Quoted Prices in Active Significant Other Significant Unobservable Total As Of Assets: Government enterprise debt securities $ — $ $ — $ Overnight repurchase agreements — — Money market funds — — U.S. Government debt securities — — Totals $ $ $ — $ |
Accrued Expenses and Other Cu19
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accrued Expenses and Other Current Liabilities | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, Research and development expenses $ $ General and administrative expenses $ $ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stock-Based Compensation | |
Summary of stock option activity under the 2014 Plan | Average Weighted- Remaining Aggregate Number Average Contractual Intrinsic Value of Shares Exercise Price Term (in years) (in thousands) Outstanding at January 1, 2016 $ $ Granted Exercised ) Forfeited, cancelled and expired ) Outstanding at September 30, 2016 $ $ Vested and expected to vest at September 30, 2016 $ $ Exercisable at September 30, 2016 $ $ Weighted-average grant date fair value of options granted during the nine months ended September 30, 2016 $ |
Schedule of weighted-average assumptions under the Black-Scholes option pricing model estimate the fair value of option awards | Nine Months Risk-free interest rate % Expected dividend yield — Expected stock price volatility % Expected term of options (in years) Expected forfeiture rate % |
Schedule of Share-based compensation expense recognized | Stock-based compensation expense recognized was as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Research and development $ $ $ $ General and administrative $ $ $ $ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies. | |
Schedule of future minimum lease payments | Future minimum lease payments as of September 30, 2016 are as follows (in thousands): Operating 2016 $ 2017 2018 2019 2020 Thereafter $ |
Organization and Description 22
Organization and Description of the Business (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Organization and Description of the Business | ||
Number of operating segments | item | 1 | |
Proceeds from issuance of common stock, net | $ 38,733 | |
Working capital | 153,000 | |
Accumulated deficit | 112,042 | $ 66,838 |
Cash, cash equivalents and investments | 156,500 | |
Revenues | $ 0 |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total (in shares) | 2,352,532 | 2,212,168 | |||
Basic and diluted net loss per common share calculation: | |||||
Net loss | $ (17,691) | $ (8,771) | $ (8,771) | $ (45,204) | $ (23,009) |
Weighted average common shares outstanding-basic and diluted (in shares) | 21,609,424 | 16,560,610 | 20,659,829 | 16,525,530 | |
Net loss per share of common stock-basic and diluted (in dollars per share) | $ (0.82) | $ (0.53) | $ (2.19) | $ (1.39) | |
Unvested restricted stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total (in shares) | 55,038 | 121,086 | |||
Stock options | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Total (in shares) | 2,297,494 | 2,091,082 |
Fair Value Measurements - Amort
Fair Value Measurements - Amortized Costs and Fair Values (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Net asset value for money market funds (in dollars per unit) | $ 1 | |
Overnight repurchase agreements | ||
Amortized Cost | $ 29,250 | $ 16,750 |
Fair Value | 29,250 | 16,750 |
US Government-sponsored Enterprises Debt Securities | ||
Amortized Cost | 1,002 | 33,207 |
Gross Unrealized Gains | 1 | |
Gross Unrealized (Losses) | (2) | |
Fair Value | 1,002 | 33,206 |
Money Market Funds | ||
Amortized Cost | 15,505 | 10,270 |
Fair Value | 15,505 | 10,270 |
Cash and cash equivalents | ||
Amortized Cost | 44,755 | 60,227 |
Gross Unrealized Gains | 1 | |
Gross Unrealized (Losses) | (2) | |
Fair Value | 44,755 | 60,226 |
Government enterprise Short-term available-for-sale securities | ||
Amortized Cost | 103,552 | 85,730 |
Gross Unrealized Gains | 56 | 10 |
Gross Unrealized (Losses) | (25) | |
Fair Value | 103,608 | 85,715 |
Government enterprise Long-term available-for-sale securities | ||
Amortized Cost | 1,002 | |
Fair Value | 1,002 | |
Government enterprise AFS securities | ||
Amortized Cost | 86,760 | 73,193 |
Gross Unrealized Gains | 44 | 10 |
Gross Unrealized (Losses) | (20) | |
Fair Value | 86,804 | 73,183 |
U.S. Government Debt Securities | ||
Amortized Cost | 16,792 | 12,537 |
Gross Unrealized Gains | 12 | |
Gross Unrealized (Losses) | (5) | |
Fair Value | 16,804 | 12,532 |
Available-for-sale securities. | ||
Amortized Cost | 149,309 | 145,957 |
Gross Unrealized Gains | 56 | 11 |
Gross Unrealized (Losses) | (27) | |
Fair Value | $ 149,365 | $ 145,941 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis of Measurement (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($)Institution | Dec. 31, 2015USD ($)Institution | Sep. 30, 2015USD ($) | |
Number of financial institutions that hold cash and cash equivalents for the Company | Institution | 2 | 2 | |
Percentage of repurchase agreements collateralized by US Government backed securities (as a percent) | 100.00% | 100.00% | |
Recurring | |||
Available-for-sale | $ 149,365 | $ 145,941 | |
Non-recurring | |||
Investments | 0 | $ 0 | |
Fair Value, Inputs, Level 1 | Recurring | |||
Available-for-sale | 61,559 | 39,552 | |
Fair Value, Inputs, Level 2 | Recurring | |||
Available-for-sale | 87,806 | 106,389 | |
US Government-sponsored Enterprises Debt Securities | Recurring | |||
Available-for-sale | 87,806 | 106,389 | |
US Government-sponsored Enterprises Debt Securities | Fair Value, Inputs, Level 2 | Recurring | |||
Available-for-sale | 87,806 | 106,389 | |
Overnight repurchase agreements | Recurring | |||
Available-for-sale | 29,250 | 16,750 | |
Overnight repurchase agreements | Fair Value, Inputs, Level 1 | Recurring | |||
Available-for-sale | 29,250 | 16,750 | |
Money Market Funds | Recurring | |||
Available-for-sale | 15,505 | 10,270 | |
Money Market Funds | Fair Value, Inputs, Level 1 | Recurring | |||
Available-for-sale | 15,505 | 10,270 | |
U.S. Government Debt Securities | Recurring | |||
Available-for-sale | 16,804 | 12,532 | |
U.S. Government Debt Securities | Fair Value, Inputs, Level 1 | Recurring | |||
Available-for-sale | $ 16,804 | $ 12,532 |
Accrued Expenses and Other Cu26
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accrued Expenses and Other Current Liabilities | ||
Accrued Expenses | $ 5,633 | $ 2,584 |
Accrued bonuses | 800 | 1,100 |
Research and development | ||
Accrued Expenses and Other Current Liabilities | ||
Accrued Expenses | 4,166 | 1,512 |
General and administrative | ||
Accrued Expenses and Other Current Liabilities | ||
Accrued Expenses | $ 1,467 | $ 1,072 |
Stock-Based Compensation - Ince
Stock-Based Compensation - Incentive Plans (Details) | 9 Months Ended |
Sep. 30, 2016shares | |
2013 Plan | |
2013 and 2014 Equity Incentive Plan | |
Shares authorized for issuance | 1,544,615 |
Shares available for future issuance (in shares) | 0 |
2014 Plan | |
2013 and 2014 Equity Incentive Plan | |
Shares authorized for issuance | 2,178,437 |
Shares available for future issuance (in shares) | 1,067,984 |
Increase in common stock reserved for issuance as percentage of the aggregate number of outstanding shares of common stock (as a percent) | 3.00% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Weighted average assumptions used to estimate fair value of option awards using Black Scholes option pricing model | ||
Unrecognized compensation expense | $ 16,400 | |
2013 and 2014 Equity Incentive Plans | Stock option | ||
Weighted average assumptions used to estimate fair value of option awards using Black Scholes option pricing model | ||
Unrecognized compensation expense | $ 16,400 | |
2014 Plan | Stock option | ||
Number of Shares | ||
Outstanding at the beginning of the period (in shares) | 2,240,955 | |
Granted (in shares) | 285,684 | |
Exercised (in shares) | (174,094) | |
Forfeited and expired (in shares) | (55,051) | |
Outstanding at the end of the period (in shares) | 2,297,494 | 2,240,955 |
Vested and expected to vest at the end of the period (in shares) | 2,188,410 | |
Exercisable at the end of the period (in shares) | 1,114,057 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 11.05 | |
Granted (in dollars per share) | 24.42 | |
Exercised (in dollars per share) | 7.04 | |
Forfeited and expired (in dollars per share) | 14.25 | |
Outstanding at the end of the period (in dollars per share) | 12.94 | $ 11.05 |
Vested and expected to vest at the end of the period (in dollars per share) | 12.61 | |
Exercisable at the end of the period (in dollars per share) | $ 8.07 | |
Average Remaining Contractual Term | ||
Outstanding at the beginning of the period | 8 years 2 months 23 days | 8 years 5 months 23 days |
Outstanding at the end of the period | 8 years 2 months 23 days | 8 years 5 months 23 days |
Vested and expected to vest at the end of the period | 8 years 2 months 12 days | |
Exercisable at the end of the period | 7 years 9 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding at the beginning of the period | $ 32,225 | $ 40,021 |
Outstanding at the end of the period | 32,225 | $ 40,021 |
Vested and expected to vest at the end of the period | 31,331 | |
Exercisable at the end of the period | $ 18,423 | |
Weighted average assumptions used to estimate fair value of option awards using Black Scholes option pricing model | ||
Risk-free interest rate | 1.35% | |
Expected stock price volatility | 77.23% | |
Expected term of options (in years) | 6 years 5 months 5 days | |
Expected forfeiture rate | 13.86% | |
Weighted-average period for recognition | 2 years 7 months 6 days | |
Weighted average grant date fair value of options granted (in dollars per share) | $ 16.57 | |
Non-employees | ||
Weighted average assumptions used to estimate fair value of option awards using Black Scholes option pricing model | ||
Unrecognized compensation expense | $ 2,700 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Information (Details) - 2013 and 2014 Equity Incentive Plans - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock based compensation expense | ||||
Share-based compensation expense | $ 2,765 | $ 1,165 | $ 5,394 | $ 3,849 |
Research and development | ||||
Stock based compensation expense | ||||
Share-based compensation expense | 1,595 | 463 | 2,102 | 1,807 |
General and administrative | ||||
Stock based compensation expense | ||||
Share-based compensation expense | $ 1,170 | $ 702 | $ 3,292 | $ 2,042 |
Commitments and Contingencies30
Commitments and Contingencies (Details) | Sep. 30, 2016USD ($) | Feb. 29, 2016item | Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($) |
Commitments and contingencies | ||||||
Expected sublease income | $ 65,269 | |||||
Rent expense under operating leases | $ 166,236 | $ 19,382 | $ 520,882 | $ 101,220 | ||
2,016 | 156,000 | 156,000 | 156,000 | |||
2,017 | 675,000 | 675,000 | 675,000 | |||
2,018 | 683,000 | 683,000 | 683,000 | |||
2,019 | 670,000 | 670,000 | 670,000 | |||
2,020 | 684,000 | 684,000 | 684,000 | |||
Thereafter | 1,380,000 | 1,380,000 | 1,380,000 | |||
Total | 4,248,000 | 4,248,000 | $ 4,248,000 | |||
Number of additional renewal periods options available to the entity to extend agreement term (in periods) | item | 1 | |||||
Term of additional renewal periods options available to the entity to extend agreement term (in options) | 5 years | |||||
Minimum term before lease termination option can be exercised | 5 years 6 months | |||||
Related party research and development expenses | 2,874,000 | 7,711,000 | ||||
Research and development | 14,230,000 | 3,387,000 | $ 34,917,000 | 8,095,000 | ||
Array | ||||||
Commitments and contingencies | ||||||
Related party research and development expenses | 9,200,000 | |||||
Milestone payments made or accrued from inception through June 30, 2016 | 1,300,000 | $ 1,300,000 | $ 1,300,000 | |||
Array | Collaboration agreement | ||||||
Commitments and contingencies | ||||||
Term of additional renewal periods options available to the entity to extend agreement term (in options) | 1 year | |||||
Number of discovery targets designated by the parties (in targets) | item | 6 | 5 | 12 | |||
Number of discovery targets which are to be selected for additional study on or before January 2015 (in targets) | item | 7 | |||||
Number of discovery targets which are to be selected for additional study after reduction on or before January 2016 (in targets) | item | 4 | |||||
Maximum number of candidates which can be selected by the entity for modest additional payment (in candidates) | item | 5 | |||||
Related party research and development expenses | $ 2,900,000 | $ 2,900,000 | $ 7,700,000 | |||
Array | Collaboration agreement | Maximum | ||||||
Commitments and contingencies | ||||||
Number of additional renewal periods options available to the entity to extend agreement term (in periods) | item | 1 | |||||
Array | Collaboration agreement | Product candidates directed to TRK | ||||||
Commitments and contingencies | ||||||
Maximum milestone payments which the entity could be required to pay | 223,000,000 | 223,000,000 | $ 223,000,000 | |||
Array | Collaboration agreement | Product candidates directed to targets other than TRK | ||||||
Commitments and contingencies | ||||||
Maximum milestone payments which the entity could be required to pay | $ 213,000,000 | $ 213,000,000 | $ 213,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Oct. 23, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 |
Related party transactions | ||||||
Related party research and development expenses | $ 2,874,000 | $ 7,711,000 | ||||
Expenses recognized for consulting work | $ 0 | $ 0 | ||||
Array | ||||||
Related party transactions | ||||||
Related party research and development expenses | $ 9,200,000 | |||||
Collaboration agreement | Array | ||||||
Related party transactions | ||||||
Related party research and development expenses | $ 2,900,000 | $ 2,900,000 | 7,700,000 | |||
Consulting Letter Agreement | Dr. Lori Kunkel | ||||||
Related party transactions | ||||||
Maximum monthly fees for consulting work | $ 15,000 | |||||
Expenses recognized for consulting work | $ 135,000 | $ 45,000 |