Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 24, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Entity Registrant Name | XENON PHARMACEUTICALS INC. | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 63,037,991 | ||
Entity Public Float | $ 1,881.1 | ||
Amendment Flag | false | ||
Trading Symbol | XENE | ||
Entity Central Index Key | 0001582313 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common Shares, without par value | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity Tax Identification Number | 98-0661854 | ||
Entity Address, Address Line One | 200-3650 Gilmore Way | ||
Entity Address, City or Town | Burnaby | ||
Entity Address, State or Province | BC | ||
City Area Code | 604 | ||
Local Phone Number | 484-3300 | ||
Entity File Number | 001-36687 | ||
Entity Address, Postal Zip Code | V5G 4W8 | ||
Entity Incorporation, State or Country Code | Z4 | ||
Entity Address, Country | CA | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | KPMG LLP | ||
Auditor Firm ID | 85 | ||
Auditor Location | Vancouver, BC, Canada | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to the 2023 Annual Meeting of Shareholders, which will be filed with the Securities and Exchange Commission subsequent to the date hereof, are incorporated by reference into Part III of this Report. Such Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days following the end of the Registrant’s fiscal year ended December 31, 2022 . |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 57,242 | $ 175,688 |
Marketable securities (note 7) | 534,845 | 376,086 |
Accounts receivable | 986 | 2,765 |
Prepaid expenses and other current assets | 7,225 | 4,481 |
Total current assets | 600,298 | 559,020 |
Marketable securities, long-term (note 7) | 128,682 | 0 |
Operating lease right-of-use asset, net (note 9) | 10,406 | 8,056 |
Property, plant and equipment, net (note 8) | 6,500 | 4,466 |
Deferred tax assets (note 15) | 509 | 465 |
Prepaid expenses, long-term | 7,751 | 0 |
Total assets | 754,146 | 572,007 |
Current liabilities: | ||
Accounts payable and accrued expenses (note 10) | 22,214 | 13,717 |
Operating lease liability (note 9) | 488 | 605 |
Total current liabilities | 22,702 | 14,322 |
Operating lease liability, long-term (note 9) | 9,947 | 7,652 |
Total liabilities | 32,649 | 21,974 |
Shareholders’ equity: | ||
Preferred shares, without par value; unlimited shares authorized; issued and outstanding: nil (December 31, 2021 - 1,016,000) (note 12) | 7,732 | |
Common shares, without par value; unlimited shares authorized; issued and outstanding: 62,587,701 (December 31, 2021 - 51,634,752) (note 12) | 1,065,136 | 783,170 |
Additional paid-in capital | 142,108 | 117,495 |
Accumulated deficit | (482,747) | (357,374) |
Accumulated other comprehensive loss | (3,000) | (990) |
Total shareholders' equity | 721,497 | 550,033 |
Total liabilities and shareholders’ equity | 754,146 | 572,007 |
Commitments and contingencies (note 14) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Financial Position [Abstract] | ||
Preferred shares, without par value | ||
Preferred shares, shares authorized | Unlimited | Unlimited |
Preferred shares, issued | 0 | 1,016,000 |
Preferred shares, outstanding | 0 | 1,016,000 |
Common shares, without par value | ||
Common shares, shares authorized | Unlimited | Unlimited |
Common shares, Issued | 62,587,701 | 51,634,752 |
Common shares, Outstanding | 62,587,701 | 51,634,752 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenue (note 13) | $ 9,434 | $ 18,437 | $ 32,166 |
Operating expenses: | |||
Research and development | 105,767 | 75,463 | 50,523 |
General and administrative | 32,810 | 21,967 | 12,944 |
Total operating expenses | 138,577 | 97,430 | 63,467 |
Loss from operations | (129,143) | (78,993) | (31,301) |
Other income (expense): | |||
Interest income | 8,713 | 466 | 2,279 |
Unrealized fair value (loss) gain on trading securities | (2,934) | (719) | 4 |
Interest expense | (484) | ||
Foreign exchange (loss) gain | (1,891) | 358 | 1,396 |
Loss on repayment of term loan (note 11) | 0 | 0 | (988) |
Other income (expense) | 3,888 | 105 | 2,207 |
Loss before income taxes | (125,255) | (78,888) | (29,094) |
Income tax (expense) recovery (note 15) | (118) | 6 | 257 |
Net loss | (125,373) | (78,882) | (28,837) |
Net loss attributable to preferred shareholders | (437) | (1,795) | (824) |
Net loss attributable to common shareholders | (124,936) | (77,087) | (28,013) |
Other comprehensive loss: | |||
Unrealized loss on available-for-sale securities (note 7) | (2,010) | ||
Comprehensive loss | $ (127,383) | $ (78,882) | $ (28,837) |
Net loss per common share (note 5): | |||
Basic | $ (2.06) | $ (1.77) | $ (0.81) |
Diluted | $ (2.06) | $ (1.77) | $ (0.81) |
Weighted-average common shares outstanding (note 5): | |||
Basic | 60,542,142 | 43,627,452 | 34,542,213 |
Diluted | 60,542,142 | 43,627,452 | 34,542,213 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Convertible Preferred Shares [Member] | Common Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2019 | $ 91,977 | $ 7,732 | $ 294,244 | $ 40,646 | $ (249,655) | $ (990) |
Balance (in Shares) at Dec. 31, 2019 | 1,016,000 | 28,139,228 | ||||
Net loss | (28,837) | (28,837) | ||||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 12a and note 12e) | 102,456 | $ 102,456 | ||||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 12a and note 12e) (in shares) | 6,759,187 | |||||
Stock-based compensation expense (note 12c) | 5,677 | 5,677 | ||||
Issued pursuant to exercise of stock options | $ 82 | $ 1,048 | (966) | |||
Issued pursuant to exercise of stock options (in Shares) | 171,812 | 113,710 | ||||
Balance at Dec. 31, 2020 | $ 171,355 | $ 7,732 | $ 397,748 | 45,357 | (278,492) | (990) |
Balance (in Shares) at Dec. 31, 2020 | 1,016,000 | 35,012,125 | ||||
Net loss | (78,882) | (78,882) | ||||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 12a and note 12e) | 447,283 | $ 381,567 | 65,716 | |||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 12a and note 12e) (in shares) | 16,143,472 | |||||
Stock-based compensation expense (note 12c) | 10,017 | 10,017 | ||||
Issued pursuant to exercise of stock options | $ 260 | $ 3,855 | (3,595) | |||
Issued pursuant to exercise of stock options (in Shares) | 690,284 | 479,155 | ||||
Balance at Dec. 31, 2021 | $ 550,033 | $ 7,732 | $ 783,170 | 117,495 | (357,374) | (990) |
Balance (in Shares) at Dec. 31, 2021 | 1,016,000 | 51,634,752 | ||||
Net loss | (125,373) | (125,373) | ||||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 12a and note 12e) | 277,766 | $ 268,379 | 9,387 | |||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 12a and note 12e) (in shares) | 9,357,348 | |||||
Conversion of preferred share to common shares (note 12d) | $ (7,732) | $ 7,732 | ||||
Conversion of preferred shares to common shares (note 12d) (in shares) | (1,016,000) | 1,016,000 | ||||
Stock-based compensation expense (note 12c) | 20,376 | 20,376 | ||||
Issued pursuant to exercise of stock options | $ 705 | $ 5,855 | (5,150) | |||
Issued pursuant to exercise of stock options (in Shares) | 780,725 | 579,601 | ||||
Other comprehensive loss (note 7) | $ (2,010) | (2,010) | ||||
Balance at Dec. 31, 2022 | $ 721,497 | $ 1,065,136 | $ 142,108 | $ (482,747) | $ (3,000) | |
Balance (in Shares) at Dec. 31, 2022 | 62,587,701 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Net loss | $ (125,373) | $ (78,882) | $ (28,837) |
Items not involving cash: | |||
Depreciation | 1,624 | 906 | 644 |
Amortization of discount on term loan | 0 | 0 | 216 |
Deferred income tax (recovery) expense | (44) | 58 | (285) |
Stock-based compensation | 20,376 | 10,017 | 5,677 |
Unrealized foreign exchange loss (gain) | 2,729 | 327 | (434) |
Unrealized fair value loss (gain) on trading securities | 2,934 | 719 | (4) |
Loss on repayment of term loan (note 11) | 0 | 0 | 988 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,757 | (459) | (1,032) |
Prepaid expenses and other current assets | (10,495) | (1,517) | (269) |
Accounts payable and accrued expenses | 8,062 | 2,971 | 2,022 |
Deferred revenue | 0 | (3,642) | (26,810) |
Net cash used in operating activities | (98,430) | (69,502) | (48,124) |
Investing activities: | |||
Purchases of property, plant and equipment | (2,894) | (2,050) | (2,637) |
Purchase of marketable securities | (551,137) | (389,474) | (228,897) |
Proceeds from marketable securities | 258,028 | 144,754 | 214,710 |
Net cash used in investing activities | (296,003) | (246,770) | (16,824) |
Financing activities: | |||
Repayment of term loan and repayment fees (note 11) | 0 | 0 | (16,743) |
Issuance of common shares and pre-funded warrants, net of issuance costs (note 12a and note 12e) | 277,766 | 447,283 | 102,456 |
Issuance of common shares pursuant to exercise of stock options | 705 | 260 | 82 |
Net cash provided by financing activities | 278,471 | 447,543 | 85,795 |
Effect of exchange rate changes on cash and cash equivalents | (2,484) | (592) | (593) |
Increase in cash and cash equivalents | (118,446) | 130,679 | 20,254 |
Cash and cash equivalents, beginning of year | 175,688 | 45,009 | 24,755 |
Cash and cash equivalents, end of year | 57,242 | 175,688 | 45,009 |
Supplemental disclosures: | |||
Interest paid | 0 | 0 | 339 |
Interest received | 8,694 | 3,517 | 4,115 |
Cash paid for operating lease | 919 | 824 | 634 |
Supplemental disclosures of non-cash transactions: | |||
Fair value of stock options exercised on a cashless basis | 4,491 | 3,349 | 887 |
Purchases of property, plant and equipment included in accounts payable and accrued expenses | 391 | 0 | 0 |
Right-of-use asset obtained in exchange for new operating lease liability (note 9) | 3,019 | 0 | 0 |
Increase in operating lease liability and accounts receivable related to lease incentives claimed in the period (note 9) | 0 | 493 | 0 |
Increase in operating lease right-of-use asset and operating lease liability related to lease amendments (note 9) | $ 0 | $ 5,248 | $ 2,907 |
Nature of the Business
Nature of the Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the business | 1. Nature of the business: Xenon Pharmaceuticals Inc. (the “Company”), incorporated in 1996 under the predecessor to the Business Corporations Act (British Columbia) and continued federally in 2000 under the Canada Business Corporations Act, is a clinical stage biopharmaceutical company focused on developing innovative therapeutics to improve the lives of patients with neurological disorders, with a focus on epilepsy. The Company has incurred significant operating losses since inception. As of December 31, 2022, the Company had an accumulated deficit of $ 482,747 and a net loss of $ 125,373 for the year ended December 31, 2022. Management expects to continue to incur significant expenses in excess of revenue and to incur operating losses for the foreseeable future. To date, the Company has financed its operations primarily through the sale of equity securities, funding received from collaboration and license agreements, and debt financings. Until such time as the Company can generate substantial product revenue, if ever, management expects to finance the Company’s cash needs through a combination of collaboration agreements, equity and debt financings. The continuation of research and development activities and the future commercialization of its products are dependent on the Company’s ability to successfully raise additional funds when needed. It is not possible to predict either the outcome of future research and development programs or the Company’s ability to continue to fund these programs in the future. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 2. Basis of presentation: These consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Certain information has been reclassified to conform with the financial statement presentation adopted for the current year. The Company has one wholly-owned subsidiary as of December 31, 2022 , Xenon Pharmaceuticals USA Inc., which was incorporated in Delaware on December 2, 2016 . These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany transactions and balances have been eliminated on consolidation. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant accounting policies | 3. Significant accounting policies: (a) Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant areas of estimates include, but are not limited to, revenue recognition including estimated timing of completion of performance obligations and the determination of stock-based compensation. These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable. Estimates and assumptions are reviewed quarterly. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. (b) Cash and cash equivalents: Cash equivalents are highly liquid investments that are readily convertible into cash with terms to maturity of three months or less when acquired. Cash equivalents are recorded at cost plus accrued interest. (c) Marketable securities: Marketable securities are debt securities with original maturities exceeding three months and accrue interest based on a fixed interest rate for the term. Effective July 1, 2022, the Company classifies its marketable securities as either trading securities or available-for-sale securities. Marketable securities are carried at fair value. Fair value gains and losses for marketable securities classified as trading securities are recorded through the consolidated statement of operations. These securities are classified as current assets as the Company has the intent and ability to convert these securities into cash without penalty within the next 12 months. Unrealized fair value gains and losses for marketable securities classified as available-for-sale are recorded through other comprehensive income (loss) in shareholders' equity. When the fair value of an available-for-sale security falls below the amortized cost basis it is evaluated to determine if any of the decline in value is attributable to credit loss. Decreases in fair value attributable to credit loss are recorded directly to the consolidated statement of operations with a corresponding allowance for credit losses, limited to the amount that the fair value is less than the amortized cost basis. If the credit quality subsequently improves the allowance is reversed up to a maximum of the previously recorded credit losses. When the Company intends to sell an impaired available-for-sale security, or if it is more likely than not that the Company will be required to sell the security prior to recovering the amortized cost basis, the entire fair value adjustment will immediately be recognized in the consolidated statement of operations with no corresponding allowance for credit losses. Realized gains and losses and credit losses, if any, on available-for-sale securities are included in interest income (expense), based on the specific identification method. Available-for-sale securities are also adjusted for amortization of premiums and accretion of discounts to maturity, with such amortization and accretion included within interest income. Available-for-sale securities with a remaining maturity date greater than one year are classified as non-current assets . (d) Intellectual property: The costs incurred in establishing and maintaining patents for intellectual property developed internally are expensed in the period incurred. (e) Property, plant and equipment: Property, plant and equipment are stated at cost less accumulated depreciation and/or accumulated impairment losses, if any. Repairs and maintenance costs are expensed in the period incurred. Property, plant and equipment are amortized over their estimated useful lives using the straight-line method based on the following rates: Asset Rate Research equipment 5 years Office furniture and equipment 5 years Computer equipment 3 years Leasehold improvements Over the lesser of lease term or (f) Impairment of long-lived assets: The Company monitors its long-lived assets for indicators of impairment. If such indicators are present, the Company assesses the recoverability of affected assets by determining whether the carrying value of such assets is less than the sum of the undiscounted future cash flows of the assets. If such assets are found not to be recoverable, the Company measures the amount of such impairment by comparing the carrying value of the assets to the fair value of the assets, with the fair value generally determined based on the present value of the expected future cash flows associated with the assets. No impairment of long-lived assets was noted during the years ended December 31, 2022, 2021 and 2020. (g) Leases: Leases classified as operating leases are recorded as lease liabilities based on the present value of minimum lease payments over the lease term, discounted using the lessor’s rate implicit in the lease or the Company’s incremental borrowing rate, if the lessor’s implicit rate is not readily determinable. The lease term includes all periods covered by renewal and termination options where the Company is reasonably certain to exercise the renewal options or not to exercise the termination options. Corresponding right-of-use assets are recognized consisting of the lease liabilities, initial direct costs and any lease incentive payments. Lease liabilities are drawn down as lease payments are made and right-of-use assets are depreciated over the term of the lease. Operating lease expenses are recognized on a straight-line basis over the term of the lease, consisting of interest accrued on the lease liability and depreciation of the right-of-use asset, adjusted for changes in index-based variable lease payments in the period of change. Lease payments on short-term operating leases with lease terms twelve months or less are expensed on a straight-line basis over the lease term. The Company has elected to not separate non-lease elements embedded in its lease agreements. (h) Concentration of credit risk and of significant customers: Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and marketable securities. The Company's investments are limited to investment-grade securities with strong credit ratings with the objective of maintaining safety and liquidity. Cash and cash equivalents were held at major financial institutions in Canada and the United States. Such deposits may be in excess of insured limits in the event of non-performance by the institutions; however, the Company does not anticipate non-performance. Neurocrine Biosciences, Inc. ("Neurocrine Biosciences") accounted for 100 % of revenue recognized for the year ended December 31, 2022 and December 31, 2020. Neurocrine Biosciences and Pacira BioSciences, Inc. (“Pacira BioSciences”) accounted for 84 % and 16 % of revenue recognized for the year ended December 31, 2021, respectively. (i) Financial instruments and fair value: The Company measures certain financial instruments and other items at fair value. To determine the fair value, the Company uses the fair value hierarchy for inputs used to measure fair value of financial assets and liabilities. This hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels: Level 1 (highest priority), Level 2, and Level 3 (lowest priority). • Level 1 - Unadjusted quoted prices in active markets for identical instruments. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). • Level 3 - Inputs are unobservable and reflect the Company’s assumptions as to what market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The carrying amount of accounts receivable, accounts payable and accrued expenses approximates fair value due to the nature and short-term of those instruments. The Company’s cash and cash equivalents and marketable securities are measured at fair value on a recurring basis and the level of fair value hierarchy utilized is described in note 6. (j) Revenue recognition: The Company recognizes the amount of revenue to which it expects to be entitled, for the transfer of promised goods or services to customers under a five-step model: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when or as a performance obligation is satisfied. Collaboration agreements may require the Company to deliver various rights and/or services, including intellectual property rights or licenses and research and development services. Under such collaboration agreements, the Company is generally eligible to receive non-refundable upfront payments, funding for research and development services, milestone payments, and royalties. In contracts where the Company has more than one performance obligation to provide its customer with goods or services, each performance obligation is evaluated to determine whether it is distinct based on whether (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available and (ii) the good or service is separately identifiable from other promises in the contract. The consideration under the contract is then allocated between the distinct performance obligations based on their respective relative standalone selling prices. The estimated standalone selling price of each deliverable reflects the Company’s best estimate of what the selling price would be if the deliverable was regularly sold on a standalone basis and is determined by reference to market rates for the good or service when sold to others or by using an adjusted market assessment approach if selling price on a standalone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control is transferred to the customer for the related goods or services. Consideration in exchange for research and development services performed by the Company on behalf of the licensee is recognized upon performance of such activities at rates consistent with prevailing market rates. Consideration associated with at-risk substantive performance milestones, including sales-based milestones, is recognized as revenue using the most likely amount method when it is probable that a significant reversal of the cumulative revenue recognized will not occur. Sales-based royalties received in connection with licenses of intellectual property are subject to a specific exception in the revenue standards, whereby the consideration is not included in the transaction price and recognized in revenue until the customer’s subsequent sales or usages occur. (k) Research and development costs: Research and development costs are expensed in the period incurred. Research and development expenses consist of costs incurred in performing research and development activities, including personnel-related expenses, consisting of salaries, benefits and stock-based compensation for employees engaged in scientific research and development, third-party expenses incurred in connection with the pre-clinical and clinical development of product candidates, third-party expenses relating to formulation, process development and manufacture of drug substance and drug product for use in pre-clinical testing and clinical trials, third-party acquisition, license and collaboration fees, laboratory consumables and certain indirect costs incurred in support of overall research and development activities, including facilities, depreciation and information technology costs. The amount of expenses recognized in a period related to service agreements is based on the work performed using the accrual basis of accounting. Third-party service providers generally provide estimates of proportionate performance to allow the Company to determine an appropriate accrual. When determining the adequacy of an accrual, the Company analyzes progress based on the level of services performed, progress of the studies, including the phase or completion of events, and contracted costs. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered. Prepaid expenses are recorded as current or non-current assets based on the expected timing of services. (l) Stock-based compensation: The Company grants stock options to employees, consultants, directors and officers pursuant to stock option plans described in note 12c. Employee stock-based compensation expense is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense, net of actual forfeitures, over the requisite service period with a corresponding increase in additional paid-in capital. Stock-based compensation expense is amortized on a straight-line basis over the requisite service period for the entire award, which is generally the vesting period of the award. Any consideration received on exercise of stock options is credited to share capital. (m) Foreign currency translation: The functional and reporting currency of the Company and its subsidiary is the U.S. dollar. Monetary assets and liabilities denominated in a currency other than the U.S. dollar are re-measured into U.S. dollars at the exchange rate prevailing as of the balance sheet date. Non-monetary assets and liabilities acquired in a currency other than U.S. dollars are translated at historical exchange rates prevailing at each transaction date. Revenue and expense transactions are translated at the exchange rates prevailing at each transaction date. Exchange gains and losses on translation are included in the consolidated statements of operations and comprehensive income (loss) as foreign exchange (loss) gain. (n) Income taxes: Deferred income taxes are recognized for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities and their respective tax bases and net operating loss and credit carryforwards. Deferred income tax assets and liabilities are measured at enacted rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations and comprehensive income (loss) in the period that includes the enactment date. A valuation allowance is provided when realization of deferred income tax assets does not meet the more-likely-than-not criterion for recognition. (o) Segment and geographic information: Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment. |
Changes in Significant Accounti
Changes in Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Changes in Significant Accounting Policies | 4. Changes in significant accounting policies: Effective July 1, 2022, the Company classifies its marketable securities as either trading securities or available-for-sale securities. In addition, the Company elected to early adopt Accounting Standards Update ("ASU") 2016-13 , Financial Instruments – Credit Losses (Topic 326) issued by the Financial Accounting Standards Board. The standard adjusts the accounting for assets measured at amortized cost basis, including marketable securities accounted for as available-for-sale. Investors are required to determine whether a decline in the fair value below the amortized cost basis of the investment is due to credit-related factors. Credit-related impairment is recognized as an allowance for credit loss on the balance sheet with a corresponding adjustment to the consolidated statement of operations. Credit losses are limited to the amount by which the investment’s amortized cost basis exceeds its fair value and may be subsequently reversed if conditions change. Any impairment that is not credit related is recognized in other comprehensive income (loss), as applicable, net of applicable taxes. The ASU is effective for public business entities for fiscal years beginning after December 15, 2019. For all other entities, including smaller reporting companies as defined by the Securities and Exchange Commission, the standard is effective for fiscal years beginning after December 15, 2022. As the Company was a smaller reporting company on the date of assessment per the ASU and related amendments, adoption of this standard can be deferred to fiscal years beginning after December 15, 2022; however, the Company has elected to early adopt this ASU effective July 1, 2022 . The adoption did not have a material impact on the Company’s consolidated financial statements. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | 5. Net income (loss) per common share: Basic net income (loss) per common share is calculated using the two-class method required for participating securities which includes the Series 1 Preferred Shares as a separate class. The convertible preferred shares entitle the holders to participate in dividends and in earnings and losses of the Company on an equivalent basis as common shares. Accordingly, undistributed earnings (losses) are allocated to common shares and participating preferred shares based on the weighted-average shares of each class outstanding during the period. In March 2022, the outstanding 1,016,000 Series 1 Preferred Shares were converted and exchanged for an equal number of common shares of the Company (note 12d). The weighted average number of common shares used in the basic and diluted net income (loss) per common share calculations includes the weighted-average pre-funded warrants outstanding during the period as they are exercisable at any time for nominal cash consideration. The treasury stock method is used to compute the dilutive effect of the Company’s stock options and warrants. Under this method, the incremental number of common shares used in computing diluted net income (loss) per common share is the difference between the number of common shares assumed issued and purchased using assumed proceeds. The if-converted method is used to compute the dilutive effect of the Company’s convertible preferred shares. Under the if-converted method, dividends on the preferred shares, if applicable, are added back to earnings attributable to common shareholders, and the preferred shares and paid-in kind dividends are assumed to have been converted at the share price applicable at the end of the period. The if-converted method is applied only if the effect is dilutive. For the years ended December 31, 2022, 2021 and 2020, diluted net loss per share attributable to common shareholders is the same as basic net loss per share attributable to common shareholders, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 6. Fair value of financial instruments: The level of the fair value hierarchy utilized to determine the fair va lue of cash and cash equivalents and marketable securities consisted of the following: December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents Cash and money market fund $ 57,242 $ — $ — $ 57,242 $ 175,688 $ — $ — $ 175,688 Marketable securities Guaranteed investment certificates 14,953 — — 14,953 — — — — U.S. treasuries 322,851 — — 322,851 239,057 — — 239,057 U.S. government securities — 32,479 — 32,479 — — — — Commercial paper — 150,560 — 150,560 — — — — Corporate debt securities — 142,684 — 142,684 — 137,029 — 137,029 Total $ 395,046 $ 325,723 $ — $ 720,769 $ 414,745 $ 137,029 $ — $ 551,774 The fair values of the Company’s U.S. government securities, commercial paper and corporate debt securities are based on prices obtained from independent pricing sources. Securities with validated quotes from pricing services are reflected within Level 2, as they are primarily based on observable pricing for similar assets or other market observable inputs. Typical inputs used by these pricing services include, but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers or estimates of cash flow, prepayment spreads and default rates. As of December 31, 2022 and December 31, 2021, the Company does not hold any securities classified as Level 3, which are securities valued using unobservable inputs. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 7. Marketable securities; As of December 31, 2022, the Company had $ 276,642 of trading securities and $ 386,885 of available-for-sale securities (December 31, 2021 – $ 376,086 and nil, respectively). Amortized cost, unrealized losses recognized in accumulated other comprehensive loss and fair value of available-for-sale securities consisted of the following: December 31, 2022 Amortized Unrealized Fair Contractual maturity of 0 to 1 years: Guaranteed investment certificates $ 14,953 $ — $ 14,953 U.S. treasuries 78,880 ( 837 ) 78,043 U.S. government securities 5,793 ( 20 ) 5,773 Commercial paper 150,560 — 150,560 Corporate debt securities 8,942 ( 68 ) 8,874 Contractual maturity of 1 to 3 years: U.S. treasuries 60,354 ( 958 ) 59,396 U.S. government securities 26,741 ( 35 ) 26,706 Corporate debt securities 42,672 ( 92 ) 42,580 Total $ 388,895 $ ( 2,010 ) $ 386,885 Allowance for credit losses or impairment on these marketable securities have not been recognized as these securities are high credit quality, investment grade securities that the Company does not intend to sell and will not be required to sell prior to their anticipated recovery, and the decline in fair value is primarily due to changes in interest rates. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 8. Property, plant and equipment: Property, plant and equipment consisted of the following: December 31, 2022 2021 Research equipment $ 8,921 $ 8,424 Office furniture and equipment 868 832 Computer equipment 1,213 1,539 Leasehold improvements 4,203 7,021 Less: accumulated depreciation and amortization ( 8,705 ) ( 13,350 ) Net book value $ 6,500 $ 4,466 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 9. Leases: The Company has an operating lease for research laboratories and office space in Burnaby, British Columbia. In October 2020, the Company entered into a lease amendment for a 21-month committed term from October 1, 2020 to June 30, 2022 and a renewal option for a portion of the facility for a 5-year term that was reasonably certain of exercise was included in the determination of the right-of-use asset and lease liability. In November 2021, the Company entered into an agreement to extend the lease for an additional 10-year term to June 30, 2032 . In July 2022, the Company entered into an additional operating lease agreement for office space in Needham, Massachusetts, which commenced on October 1, 2022. The lease is for a 62-month term and an option to terminate one year prior to the expiry date , which was not considered in the determination of the right-of-use asset and lease liability. The cost components of the operating leases were as follows for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Lease Cost Operating lease expense $ 1,126 $ 591 $ 536 Variable lease expense (1) 774 751 549 Lease Term and Discount Rate Weighted average remaining lease term (years) 8.07 10.50 6.50 Weighted average discount rate 3.97 % 3.42 % 2.45 % (1) Variable lease costs are payments that vary because of changes in facts or circumstances and include common area maintenance and property taxes related to the premises. Variable lease costs are excluded from the calculation of minimum lease payments. Future minimum lease payments as of December 31, 2022 were as follows: Year ending December 31: 2023 $ 1,622 2024 1,677 2025 1,745 2026 1,813 2027 1,800 2028 and thereafter 5,286 Total future minimum lease payments $ 13,943 Less: imputed interest ( 2,037 ) Less: future lease incentives reasonably certain of use (1) ( 1,471 ) Present value of lease liabilities $ 10,435 (1) Lease incentives are expected to be utilized within 12 months. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 10. Accounts payable and accrued expenses: Accounts payable and accrued expenses consisted of the following: December 31, 2022 2021 Trade payables $ 8,491 $ 3,824 Employee compensation, benefits, and related accruals 5,823 5,940 Consulting and contracted research 7,148 3,550 Professional fees 411 285 Other 341 118 Total $ 22,214 $ 13,717 |
Term Loan
Term Loan | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Term Loan | In August 2018 , the Company entered into an Amended and Restated Loan and Security Agreement (the “Amended and Restated Loan Agreement”) with Silicon Valley Bank (the “Bank”), pursuant to which the Bank agreed to extend a term loan to the Company with a principal amount of $ 15,500 (the “Term Loan”). The Term Loan accrued interest at a floating per annum rate of 0.5 % above the prime rate. The Term Loan was interest-only until March 31, 2020 , followed by 30 equal monthly installments of principal plus interest, originally maturing on September 1, 2022 . In addition, the Company was required to pay a final payment fee of 6.5 % of the Term Loan on the date on which the term loan was prepaid, paid or became due and payable in full. In May 2020, the Company repaid the total outstanding Term Loan balance ahead of the maturity date. The repayment consisted of (i) the outstanding principal balance, (ii) a final payment fee of $ 1,008 , which was partially accrued up to the date of repayment, and (iii) a prepayment fee of $ 225 . At the time of repayment, all liabilities and obligations under the Amended and Restated Loan Agreement terminated automatically. The Company recorded a loss on repayment of the Term Loan of $ 988 , which represents the difference between the carrying value of the Term Loan on the repayment date and the amount paid to extinguish the Term Loan. The repayment did not affect the Bank’s rights in connection with the warrant to the Bank to purchase 40,000 common shares at a price per common share of $ 9.79 which will remain outstanding until exercised or expired in August 2028. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Share Capital | 12. Share capital: (a) Financing: In November 2019, the Company entered into an "at-the-market" equity offering sales agreement with Jefferies LLC (“Jefferies”) and Stifel, Nicolaus & Company, Incorporated (“Stifel”) to sell common shares of the Company having aggregate gross proceeds of up to $ 50,000 from time to time. As of December 31, 2019, the Company had sold 805,643 common shares under the sales agreement for proceeds of $ 10,729 , net of commissions and transaction expenses. In January 2020, the Company sold an additional 2,446,687 common shares for proceeds of $ 37,796 , net of commissions and transaction expenses. In January 2020, the Company entered into an underwriting agreement with Jefferies, Stifel and Guggenheim Securities, LLC, relating to an underwritten public offering of 3,750,000 common shares, including 562,500 common shares sold upon the full exercise of the underwriters’ over-allotment option, at a public offering price of $ 16.00 per common share. The public offering was completed in January 2020, and the underwriters exercised their option in full in February 2020. The Company received proceeds of $ 64,660 , net of underwriting discounts, commissions and offering expenses. In August 2020, the Company entered into an “at-the-market” equity offering sales agreement, amended as of March 2022, with Jefferies and Stifel pursuant to which the Company may sell common shares from time to time. In January 2021, the Company sold an aggregate of 733,000 common shares for proceeds of $ 10,693 , net of commissions and transaction expenses pursuant to a prospectus supplement filed in August 2020 (“August 2020 ATM”). The Company may sell common shares having gross proceeds of up to $ 250,000 , from time to time, pursuant to a new prospectus supplement filed in March 2022 (“March 2022 ATM”), replacing the August 2020 ATM. As of December 31, 2022, no common shares have been sold under the March 2022 ATM. In March 2021, the Company entered into an underwriting agreement with Jefferies and Stifel, relating to an underwritten public offering of 5,135,135 common shares, including 810,810 common shares sold upon the full exercise of the underwriters’ over-allotment option, at a public offering price of $ 18.50 per common share and pre-funded warrants to purchase 1,081,081 common shares at $ 18.4999 per pre-funded warrant (note 12e) , with each pre-funded warrant having an exercise price of $ 0.0001 . The public offering was completed in March 2021, and the Company received proceeds of $ 107,922 , net of underwriting discounts, commissions and offering expenses. In September 2021, in connection with the License and Collaboration Agreement with Neurocrine Biosciences entered in December 2019 and amended in January 2021 (the “Neurocrine Collaboration Agreement”), the Company executed a Share Purchase Agreement (“SPA”) pursuant to which the Company issued 275,337 common shares for an aggregate purchase price of $ 5,500 , or $ 19.9755 per common share, which represents a premium of $ 770 when measured at fair value on the date of issuance. In addition, in January 2022, the Company executed a SPA pursuant to which the Company issued 258,986 common shares for an aggregate purchase price of $ 8,250 , or $ 31.855 per common share, which represents a premium of $ 374 when compared to the fair value of common shares on the date of issuance. The SPAs contain certain other customary terms and conditions, including mutual representations, warranties and covenants. For additional information regarding the Neurocrine Collaboration Agreement, refer to note 13a. In October 2021, the Company entered into an underwriting agreement with Jefferies, SVB Leerink LLC (“SVB”) and Stifel, relating to an underwritten public offering of 10,000,000 common shares, including 1,525,423 common shares sold upon the full exercise of the underwriters’ over-allotment option, at a public offering price of $ 29.50 per common share and pre-funded warrants to purchase 1,694,915 common shares at $ 29.4999 per pre-funded warrant (note 12e), with each pre-funded warrant having an exercise price of $ 0.0001 . The public offering was completed in October 2021, and the Company received proceeds of $ 323,938 , net of underwriting discounts, commissions and offering expenses. In June 2022, the Company entered into an underwriting agreement with Jefferies, J.P. Morgan Securities LLC, Stifel and SVB, relating to an underwritten public offering of 9,098,362 common shares, including 1,229,508 shares sold upon the full exercise of the underwriters’ over-allotment option, at a public offering price of $ 30.50 per common share and pre-funded warrants to purchase 327,868 common shares at $ 30.4999 per pre-funded warrant (note 12e), with each pre-funded warrant having an exercise price of $ 0.0001 . The public offering was completed in June 2022, and the Company received proceeds of $ 269,890 , net of underwriting discounts, commissions and offering expenses. (b) Authorized share capital: The Company’s authorized share capital consists of an unlimited number of common and preferred shares without par value. (c) Stock-based compensation: The Company has three equity incentive plans: (i) a pre-existing stock option plan (the “Amended and Restated Stock Option Plan”), (ii) the 2014 Equity Incentive Plan (the “2014 Plan”) which was amended and restated in June 2020 and June 2022, and (iii) the 2019 Inducement Equity Incentive Plan (the “2019 Inducement Plan”). The Amended and Restated Stock Option Plan provided for the grant of stock options for the purchase of common shares to directors, officers, employees and consultants prior to the Company’s initial public offering. The stock options granted under the Amended and Restated Stock Option Plan vest on a graduated basis over a four-year period or less and each option’s maximum term is ten years . The 2014 Plan replaced the Amended and Restated Stock Option Plan. No further options will be granted under the Company’s Amended and Restated Stock Option Plan. The Amended and Restated Stock Option Plan will continue to govern the stock options granted thereunder. In June 2014, the shareholders of the Company approved the 2014 Plan, which was amended and replaced in June 2020 and June 2022 by the Amended and Restated 2014 Equity Incentive Plan (the “Amended and Restated 2014 Plan”). The Amended and Restated 2014 Plan governs all options granted under the 2014 Plan. In September 2019, the board of directors of the Company adopted the 2019 Inducement Plan and, subject to the adjustment provisions of the 2019 Inducement Plan, reserved 400,000 of the Company’s common shares for issuance pursuant to equity awards granted under the 2019 Inducement Plan. The 2019 Inducement Plan was adopted without shareholder approval in accordance with the applicable Nasdaq Listing Rules. The 2019 Inducement Plan provided for the grant of equity-based awards, including share options, share appreciation rights, restricted share awards, restricted share unit awards and performance share awards, and its terms are substantially similar to the Company’s Amended and Restated 2014 Plan, including with respect to treatment of equity awards in the event of a “merger” or “change of control” as defined under the 2019 Inducement Plan, but with such other terms and conditions intended to comply with the Nasdaq inducement award exception or to comply with the Nasdaq acquisition and merger exception. The 2019 Inducement Plan was terminated in June 2020. No further options will be granted under the 2019 Inducement Plan, and the 2019 Inducement Plan will continue to govern the options granted thereunder. The shareholders of the Company approved the Amended and Restated 2014 Plan amended in June 2020 and June 2022, amending certain provisions of the Company’s 2014 Plan. The Amended and Restated 2014 Plan continues to permit the grant of stock-based compensation awards to directors, officers, employees and consultants of the Company and the issuance of restricted shares, restricted share units, share appreciation rights and performance shares. Under the Amended and Restated 2014 Plan, options granted generally vest on a graduated basis over a four-year period or less. The exercise price of the options is determined by the board of directors but must at least be equal to the fair market value of the common shares on the date of grant. Options may be exercised over a maximum term of ten years . The annual share increase provision of the 2014 Plan was eliminated and the number of common shares available for issuance was increased by 9,300,000 over the existing share reserve under the 2014 Plan. The number of common shares that can be issued through restricted share awards, restricted share unit awards, or performance share awards was amended to be limited to 1,000,000 common shares, in the aggregate. Other amendments were made to terms of the 2014 Plan with respect to repricing, change of control and payment of dividends and other distributions. As of December 31, 2022, a total of 5,646,490 common shares remain available for issuance pursuant to the Amended and Restated 2014 Plan. The following table presents the summary of stock option activity for the period : Number of Weighted Aggregate Options Price ($) (1) Intrinsic Value Outstanding, December 31, 2019 3,534,236 7.90 19,618 Granted 1,482,250 11.75 Exercised (2) ( 171,812 ) 5.76 1,535 Forfeited, cancelled or expired ( 85,677 ) 13.04 Outstanding, December 31, 2020 4,758,997 9.10 30,464 Granted 1,775,450 19.82 Exercised (2) ( 690,284 ) 7.34 11,306 Forfeited, cancelled or expired ( 205,931 ) 13.01 Outstanding, December 31, 2021 5,638,232 12.55 105,405 Granted 2,315,645 30.90 Exercised (2) ( 780,725 ) 9.47 19,651 Forfeited, cancelled or expired ( 55,370 ) 24.50 Outstanding, December 31, 2022 7,117,782 18.75 147,214 Exercisable, December 31, 2022 3,530,408 11.40 98,944 (1) Canadian dollar denominated stock options have been translated into U.S. dollars at a foreign exchange rate of 0.74 as of December 31, 2022. (2) During the year ended December 31, 2022, 68,930 (2021 – 66,215 and 2020 – 26,513 ) stock options were exercised for the same number of common shares in exchange for cash. In the same period, the Company issued 510,671 (2021 – 412,940 and 2020 – 87,197 ) common shares for the cashless exercise of 711,795 (2021 – 624,069 and 2020 – 145,299 ) stock options. At December 31, 2022 , stock options outstanding and exercisable had a weighted average remaining contractual life of 7.4 years and 5.9 years, respectively. A summary of the Company’s non-vested stock option activity and related information for the year ended December 31, 2022 is as follows: Number of Weighted Average Non-vested, January 1, 2022 2,671,589 10.56 Granted 2,315,645 19.78 Vested ( 1,344,490 ) 10.23 Forfeited or cancelled ( 55,370 ) 14.43 Non-vested, December 31, 2022 3,587,374 16.60 The aggregate fair value of options vested during the year ended December 31, 2022 was $ 13,752 ( 2021 – $ 8,271 and 2020 – $ 3,698 ). The fair value of stock options at the date of grant is estimated using the Black-Scholes option-pricing model which requires multiple subjective inputs. The risk-free interest rate of the options is based on the U.S. Treasury yield curve in effect at the date of grant for a term similar to the expected term of the option. The expected volatility is based on the historical volatility of the Company’s common shares calculated based on a period of time commensurate with the expected term assumption. Expected life assumptions are based on the Company’s historical data. The dividend yield is based on the fact that the Company has never paid cash dividends and has no present intention to pay cash dividends. Forfeitures are recognized as they occur. The weighted-average option pricing assumptions are as follows: Year Ended December 31, 2022 2021 2020 Average risk-free interest rate 2.39 % 1.16 % 0.72 % Expected volatility 70 % 68 % 68 % Average expected term (in years) 6.16 6.66 6.79 Expected dividend yield 0.00 % 0.00 % 0.00 % Weighted average fair value of options granted $ 19.78 $ 12.54 $ 7.46 Stock-based compensation expense is classified in the consolidated statements of operations and comprehensive income (loss) as follows: Year Ended December 31, 2022 2021 2020 Research and development expenses $ 7,766 $ 3,734 $ 1,936 General and administrative expenses 12,610 6,283 3,741 $ 20,376 $ 10,017 $ 5,677 As of December 31, 2022 , the unrecognized stock-based compensation expense related to the non-vested stock options was $ 49,105 , which is expected to be recognized over a weighted-average period of 2.78 years. (d) Exchange agreement with certain funds affiliated with BVF Partners L.P. (collectively, “BVF”): In March 2018, the Company and BVF entered into an exchange agreement pursuant to which the Company issued to BVF 2,868,000 Series 1 Preferred Shares in exchange for 2,868,000 common shares which were subsequently cancelled by the Company. The Series 1 Preferred Shares were convertible into common shares on a one-for-one basis, subject to certain restrictions. The Series 1 Preferred Shares ranked equally to the common shares in the event of liquidation, dissolution or winding up or other distribution of the assets of the Company among its shareholders and the holders of the Series 1 Preferred Shares were entitled to vote together with the common shares on an as-converted basis and as a single class, subject to certain restrictions. The Series 1 Preferred Shares were recorded wholly as equity under ASC 480, with no bifurcation of conversion feature from the host contract, given that the Series 1 Preferred Shares cannot be cash settled and have no redemption features. During the year ended December 31, 2018, BVF converted 1,852,000 Series 1 Preferred Shares in exchange for an equal number of common shares. In March 2022, the remaining outstanding 1,016,000 Series 1 Preferred Shares were exchanged for an equal number of common shares. (e) Pre-funded warrants: The following table summarizes the pre-funded warrants outstanding as of December 31, 2022: Date of Issuance Pre-Funded Warrants to Purchase Common Shares Price per Pre-Funded Warrant Exercise Price March 2021 1,081,081 $ 18.4999 $ 0.0001 October 2021 1,694,915 $ 29.4999 $ 0.0001 June 2022 327,868 $ 30.4999 $ 0.0001 Total 3,103,864 The pre-funded warrants are exercisable at the holder’s discretion from the date of issuance until the date the pre-funded warrant is exercised in full. The Company may not affect the exercise of any pre-funded warrant, and a holder will not be entitled to exercise any portion of any pre-funded warrant that, upon giving effect to such exercise, would cause: (i) the aggregate number of common shares beneficially owned by such holder, together with its affiliates, to exceed 4.99% of the total number of common shares outstanding immediately after giving effect to the exercise; or (ii) the combined voting power of the Company’s securities beneficially owned by such holder, together with its affiliates, to exceed 4.99% of the combined voting power of all of the Company’s securities immediately outstanding after giving effect to the exercise, which percentage may be changed at the holder’s election to a higher or lower percentage not in excess of 19.99% upon at least 61 days’ notice to the Company. Since the pre-funded warrants meet the condition for equity classification, proceeds from issuances of the pre-funded warrants of $ 75,103 , net of underwriting discounts, commissions and offering expenses, are recorded in additional paid-in capital. Upon exercise of the pre-funded warrants, the historical costs recorded in additional paid-in capital along with the exercise price collected from the holder will be recorded in common shares. As of December 31, 2022, no pre-funded warrants were exercised. Pre-funded warrants to purchase 3,103,864 common shares (2021 – 2,775,996 ) are not included in the number of issued and outstanding common shares as of December 31, 2022. |
Collaboration Agreements
Collaboration Agreements | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaboration Agreements | 13. Collaboration agreements: The Company has assessed each collaboration agreement in accordance with ASC 606 under the five-step model as described in note 3j, including recognition of non-refundable upfront payments. The Company generally recognizes revenue from non-refundable upfront payments over the estimated term of the performance obligation or period in which the underlying benefit is transferred to the customer. If non-refundable license fees have value to the customer on a standalone basis, separate from the undelivered performance obligations, they are recognized upon delivery. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Research and development milestones in the Company’s collaboration agreements may include the following types of events: • completion of pre-clinical research and development work leading to selection of product candidates; • initiation of Phase 1, Phase 2 or Phase 3 clinical trials; and • achievement of certain other scientific, clinical data or development events. Regulatory milestone payments may include the following types of events: • filing of regulatory applications for marketing approval in the U.S., Europe or Asia, including investigational new drug applications (“IND”) and new drug applications; and • marketing approval in a major market, such as the U.S., Europe or Asia. Commercialization milestone payments may include payments triggered by annual product sales that achieve pre-specified thresholds. The Company evaluates each arrangement that includes research and development and sales-based milestone payments to determine whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. Milestone payments that are not within the control of the Company are not considered probable of being achieved. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. The transaction price is then allocated to each performance obligation on a relative standalone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such milestones, and if necessary, adjusts its estimate of the overall transaction price. Revenue was as follows for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Neurocrine Biosciences: Recognition of the transaction price $ 372 $ 3,715 $ 26,810 Research and development services 1,938 6,452 5,356 Milestone payments 7,124 5,270 — Pacira BioSciences: Milestone payments — 3,000 — Total revenue $ 9,434 $ 18,437 $ 32,166 (a) Neurocrine Biosciences license and collaboration agreement: In December 2019, the Company entered into the Neurocrine Collaboration Agreement with Neurocrine Biosciences. Pursuant to this agreement, the Company granted an exclusive license to XEN901, now known as NBI-921352, and an exclusive license to pre-clinical compounds for development, XEN393, XPC’535 and XPC’391 (collectively, the “DTCs”). The agreement also includes a two-year research collaboration to discover, identify and develop additional novel Nav1.6 and Nav1.2/1.6 inhibitors (“Research Compounds”) which was extended to June 2022. At execution of the agreement, Neurocrine Biosciences paid the Company an upfront fee of $ 50,000 , which included a $ 30,000 payment in cash and a $ 20,000 equity investment in the Company. The Company is eligible to receive pre-commercial and commercial milestone payments with respect to the licensed products totaling up to an additional $ 1,667,500 , comprised of up to $ 1,067,500 in additional development and regulatory milestone payments related to NBI-921352 and other licensed Nav1.6 or Nav1.2/1.6 inhibitor products, and up to $ 600,000 in additional sales-based milestone payments for multiple products. In addition, the Company is eligible to receive royalties on net sales in and outside the U.S., ranging from (a) for NBI-921352, a low double-digit percentage to a mid-teen percentage and a high-single digit percentage to low double-digit percentage, respectively; (b) for DTCs, a high-single digit percentage to a low double-digit percentage and a mid-single digit percentage to a high-single digit percentage, respectively; and (c) for Research Compounds, a mid-single digit percentage to a high-single digit percentage and a tiered mid-single digit percentage, respectively. Royalty rates are subject to customary reductions. The Company has an option to co-fund 50 % of the development costs of NBI-921352 or another product candidate in the U.S., exercisable upon achievement of certain milestones, in exchange for increased U.S. royalties. The Company has not exercised this option as of December 31, 2022. The Company and Neurocrine Biosciences collaborated on the conduct of two collaboration programs: (a) a joint research collaboration to discover, identify and preclinically develop Research Compounds (the “Research Program”), which was completed in June 2022, and (b) a collaborative development program for NBI-921352 and two DTCs selected by the joint steering committee (the “Initial Development Program”). During the term of the Research Program and Initial Development Program, Neurocrine Biosciences will fund the Company for certain full-time employees and out-of-pocket expenses incurred by the Company. The agreement includes the following performance obligations: (i) an exclusive license to NBI-921352 with associated technology and know-how transfer, (ii) an exclusive license to the DTCs with associated know-how transfer, (iii) a license to Research Compounds and research services under the Research Program, (iv) development services under the Initial Development Program for NBI-921352, and (v) development services under the Initial Development Program for the DTCs. The license to the Research Compounds and the research services under the Research Program were considered a single performance obligation as Neurocrine Biosciences cannot benefit from such a license on its own or from other resources commonly available in the industry, without the corresponding research services due to the unique and specialized expertise of the Company that is not readily available in the marketplace. Given the early development phase of the Research Compounds, the performance obligation and related revenue was linked entirely to the performance of research services. At execution of the agreement, the transaction price consisted of the $ 30,000 upfront consideration received in cash and a premium of $ 3,333 on the $ 20,000 equity investment in the Company measured at fair value on the date of issuance. The Company also considered the following elements in determining the overall transaction price: • Under the arrangement, the Company was entitled to funding for certain full-time equivalent and external costs incurred by the Company under performance obligations (iii) and (iv). The arrangement consideration related to the services under performance obligations (iii) and (iv) to be performed on behalf of Neurocrine Biosciences were excluded from the initial transaction price allocation because the consideration and performance were contingent upon Neurocrine Biosciences requesting performance of the services and these services were priced at estimated fair value. • None of the at-risk substantive performance milestones, including development, regulatory and sales-based milestones, were included in the transaction price, as all milestone amounts are outside the control of the Company and contingent upon Neurocrine Biosciences’ efforts and success in future clinical trials. Any consideration related to sales-based royalties will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to Neurocrine Biosciences and therefore were also excluded from the transaction price. The total transaction price of $ 33,333 was allocated to performance obligation (v) based on its estimated standalone selling price determined based on internal development plans and budget, with the balance allocated to performance obligations (i) and (ii) by the residual approach. The residual approach was used as standalone selling prices, including market data, for equivalent performance obligations were not available. The allocation of the transaction price requires significant management judgment. The Company allocated the transaction price as follows: $ 28,807 to performance obligations (i) and (ii) which were delivered and transferred concurrently and completed as of December 2020, and $ 5,025 , which includes $ 499 of variable consideration, to performance obligation (v), which was completed as of March 2022. The Company measured proportional performance over time using an input method based on cost incurred relative to the total estimated costs for each of the identified obligations at each reporting period. Any changes to estimates were recognized in the period in which they changed as a cumulative catch up. In September 2021, based on the regulatory approval of a clinical trial application in Europe for NBI-921352 for focal-onset seizures in adults, the Company received an aggregate milestone payment of $ 10,000 in the form of $ 4,500 in cash and a $ 5,500 equity investment in the Company (note 12a). The equity investment was measured at fair value of $ 4,730 on the date of issuance and the resulting premium of $ 770 , with the cash payment of $ 4,500 , was recognized as revenue in the period as the Company did no t have any remaining performance obligations in relation to this milestone on the date it was achieved. In January 2022, based on the receipt of the U.S. Food and Drug Administration’s (“FDA”) full IND acceptance for NBI-921352, the Company received an aggregate milestone payment of $ 15,000 in the form of $ 6,750 in cash and a $ 8,250 equity investment in the Company (note 12a). The equity investment was measured at fair value of $ 7,876 on the date of issuance and the resulting premium of $ 374 , with the cash payment of $ 6,750 , was recognized as revenue in the period as the Company did no t have any remaining performance obligations in relation to this milestone on the date it was achieved. During the year ended December 31, 2022, the Company recognized $ 2,310 of revenue (2021 – $ 10,167 and 2020 – $ 32,166 ) which comprised of $ 1,938 (2021 – $ 6,452 and 2020 – $ 5,356 ) for the research and development services under (iii) the Research Program and (iv) the Initial Development Program for NBI-921352, and $ 372 (2021 – $ 3,715 and 2020 – $ 884 ) for (v) development services under the Initial Development Program for the DTCs. For the year ended December 31, 2020, the Company also recognized $ 25,926 associated with (i) the exclusive license to NBI-921352 and (ii) the exclusive license to the DTCs. (b) Asset Purchase Agreement with Flexion Therapeutics, Inc., subsequently acquired by Pacira BioSciences: In September 2019, the Company entered into an agreement with Flexion Therapeutics Inc. (“Flexion”), which was acquired by Pacira BioSciences in November 2021, pursuant to which Flexion acquired all rights with respect to XEN402, and a related compound (collectively “XEN402”), including certain regulatory documentation, intellectual property rights, reports, data and all quantities of XEN402, known as PCRX-301, owned or controlled by the Company. During the year ended December 31, 2021, the FDA cleared the first investigational new drug application for PCRX-301 and a Phase 1b clinical trial was initiated, resulting in milestone payments of $ 1,000 and $ 2,000 paid to the Company, respectively. In November 2022, Pacira BioSciences made the strategic decision to no longer pursue the clinical development of PCRX-301. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and contingencies: (a) Asset purchase agreement with 1st Order Pharmaceuticals, Inc. (“1st Order”): In April 2017, the Company acquired XEN1101 (previously known as 1OP2198) from 1st Order pursuant to an asset purchase agreement. In August 2020, the Company and 1st Order amended the asset purchase agreement to amend certain definitions in the agreement and to modify the payment schedule for certain milestones. Through December 31, 2022, the Company has paid $ 600 based on progress against these milestones. In February 2023, an additional $ 1,400 was paid for the achievement of clinical and other milestones. Future potential payments to 1st Order related to the XEN1101 program include up to $ 6,000 in regulatory milestones. There are no royalty obligations to 1st Order. (b) Guarantees and indemnifications: The Company has entered into license and research agreements with third parties that include indemnification provisions that are customary in the industry. These indemnification provisions generally require the Company to compensate the other party for certain damages and costs incurred as a result of third-party claims or damages arising from these transactions. The maximum amount of potential future indemnification is unlimited; however, the Company currently holds commercial and product liability insurance. This insurance limits the Company’s exposure and may enable it to recover a portion of any future amounts paid. Historically, the Company has not made any indemnification payments under such agreements and the Company believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations for any period presented. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income taxes: Income tax recovery varies from the amounts that would be computed by applying the expected Canadian federal and provincial statutory income tax rate of 27 % ( 2021 and 2020 – 27 %) to loss before income taxes as shown in the following table: Year Ended December 31, 2022 2021 2020 Computed recoveries at Canadian federal and $ ( 33,819 ) $ ( 21,300 ) $ ( 7,856 ) Change in valuation allowance 30,732 21,354 7,821 Tax credits earned ( 3,086 ) ( 2,279 ) ( 1,689 ) Tax attributes expired/utilized 1,564 692 764 Non-deductible expenditures 4,463 2,033 1,135 Other 264 ( 506 ) ( 432 ) Income tax expense (recovery) $ 118 $ ( 6 ) $ ( 257 ) Income tax expense (recovery) for the years ended December 31, 2022, 2021 and 2020 arose from the operations of Xenon Pharmaceuticals USA Inc., the Company’s wholly-owned subsidiary in the United States. Deferred income tax assets and liabilities result from the temporary differences between the amount of assets and liabilities recognized for financial statement and income tax purposes. The significant components of the Company’s net deferred income tax assets are as follows: December 31, 2022 2021 2020 Scientific research and experimental development pool $ 34,891 $ 32,505 $ 29,580 Tax credits 28,835 27,365 25,440 Non-capital losses 80,547 53,453 35,803 Depreciable assets 8,912 7,667 6,635 Deferred financing fees 8,928 7,252 1,689 Deferred revenue - - 983 Stock based compensation 1,492 585 334 Other 1,569 732 170 Less - valuation allowance ( 164,665 ) ( 129,094 ) ( 100,111 ) Net deferred income tax assets $ 509 $ 465 $ 523 The realization of deferred income tax assets is dependent upon the generation of sufficient taxable income during future periods in which the temporary differences are expected to reverse. The valuation allowance is reviewed on a quarterly basis and if the assessment of the “more likely than not” criteria changes, the valuation allowance is adjusted accordingly. A full valuation allowance continues to be applied against deferred income tax assets in Canada as the Company has assessed that the realization of such assets does not meet the “more likely than not” criteria. Deferred income tax assets recorded on the consolidated balance sheets as of December 31, 2022 and 2021, result from the temporary differences between the amounts of assets and liabilities recognized for financial statement and income tax purposes, net of valuation allowance, related to the operations of Xenon Pharmaceuticals USA Inc. At December 31, 2022 , the Company has unclaimed tax deductions for scientific research and experimental development expenditures of $ 129,226 ( 2021 – $ 120,388 ) with no expiry. At December 31, 2022 , the Company has $ 27,323 ( 2021 – $ 26,298 ) of investment tax credits available to offset federal taxes payable and $ 8,418 ( 2021 – $ 8,168 ) of provincial tax credits available to offset provincial taxes payable in the future. At December 31, 2022 , the Company has non-capital losses, net of uncertain tax positions, carried forward for tax purposes, which are available to reduce taxable income of future years of approximately $ 295,828 ( 2021 – $ 197,976 ). The investment tax credits and loss carry forwards expire over various years to 2042 . At December 31, 2022 , the total amount of the Company’s unrecognized tax benefits of uncertain tax positions were $ 10,850 ( 2021 – $ 10,850 ). If recognized in future periods, the unrecognized tax benefits would not affect the Company’s effective tax rate. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within the income tax provision. Interest and penalties have not been accrued at December 31, 2022 and 2021 as none would be owing on the unrecognized tax benefits due to the availability of non-capital losses to shelter any potential taxable income arising thereon. The Company does not currently expect any significant increases or decreases to these unrecognized tax benefits within 12 months of the reporting date. The Company files income tax returns in Canada and the United States, the jurisdictions in which the Company believes that it is subject to tax. In jurisdictions in which the Company does not believe it is subject to tax and therefore does not file income tax returns, the Company can provide no certainty that tax authorities in those jurisdictions will not subject one or more tax years (since the inception of the Company) to examination. Further, while the statute of limitations in each jurisdiction where an income tax return has been filed generally limits the examination period, as a result of loss carry-forwards, the limitation period for examination generally does not expire until several years after the loss carry-forwards are utilized. Other than routine audits by tax authorities for tax credits and tax refunds that the Company claims, the Company is not aware of any other material income tax examination currently in progress by any taxing jurisdiction. Tax years ranging from 2002 to 2021 remain subject to examinations in Canada and the United States. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of estimates | (a) Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant areas of estimates include, but are not limited to, revenue recognition including estimated timing of completion of performance obligations and the determination of stock-based compensation. These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable. Estimates and assumptions are reviewed quarterly. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. |
Cash and cash equivalents | (b) Cash and cash equivalents: Cash equivalents are highly liquid investments that are readily convertible into cash with terms to maturity of three months or less when acquired. Cash equivalents are recorded at cost plus accrued interest. |
Marketable Securities | (c) Marketable securities: Marketable securities are debt securities with original maturities exceeding three months and accrue interest based on a fixed interest rate for the term. Effective July 1, 2022, the Company classifies its marketable securities as either trading securities or available-for-sale securities. Marketable securities are carried at fair value. Fair value gains and losses for marketable securities classified as trading securities are recorded through the consolidated statement of operations. These securities are classified as current assets as the Company has the intent and ability to convert these securities into cash without penalty within the next 12 months. Unrealized fair value gains and losses for marketable securities classified as available-for-sale are recorded through other comprehensive income (loss) in shareholders' equity. When the fair value of an available-for-sale security falls below the amortized cost basis it is evaluated to determine if any of the decline in value is attributable to credit loss. Decreases in fair value attributable to credit loss are recorded directly to the consolidated statement of operations with a corresponding allowance for credit losses, limited to the amount that the fair value is less than the amortized cost basis. If the credit quality subsequently improves the allowance is reversed up to a maximum of the previously recorded credit losses. When the Company intends to sell an impaired available-for-sale security, or if it is more likely than not that the Company will be required to sell the security prior to recovering the amortized cost basis, the entire fair value adjustment will immediately be recognized in the consolidated statement of operations with no corresponding allowance for credit losses. Realized gains and losses and credit losses, if any, on available-for-sale securities are included in interest income (expense), based on the specific identification method. Available-for-sale securities are also adjusted for amortization of premiums and accretion of discounts to maturity, with such amortization and accretion included within interest income. Available-for-sale securities with a remaining maturity date greater than one year are classified as non-current assets . |
Intellectual property | (d) Intellectual property: The costs incurred in establishing and maintaining patents for intellectual property developed internally are expensed in the period incurred. |
Property, plant and equipment | (e) Property, plant and equipment: Property, plant and equipment are stated at cost less accumulated depreciation and/or accumulated impairment losses, if any. Repairs and maintenance costs are expensed in the period incurred. Property, plant and equipment are amortized over their estimated useful lives using the straight-line method based on the following rates: Asset Rate Research equipment 5 years Office furniture and equipment 5 years Computer equipment 3 years Leasehold improvements Over the lesser of lease term or |
Impairment of long-lived assets | (f) Impairment of long-lived assets: The Company monitors its long-lived assets for indicators of impairment. If such indicators are present, the Company assesses the recoverability of affected assets by determining whether the carrying value of such assets is less than the sum of the undiscounted future cash flows of the assets. If such assets are found not to be recoverable, the Company measures the amount of such impairment by comparing the carrying value of the assets to the fair value of the assets, with the fair value generally determined based on the present value of the expected future cash flows associated with the assets. No impairment of long-lived assets was noted during the years ended December 31, 2022, 2021 and 2020. |
Leases | (g) Leases: Leases classified as operating leases are recorded as lease liabilities based on the present value of minimum lease payments over the lease term, discounted using the lessor’s rate implicit in the lease or the Company’s incremental borrowing rate, if the lessor’s implicit rate is not readily determinable. The lease term includes all periods covered by renewal and termination options where the Company is reasonably certain to exercise the renewal options or not to exercise the termination options. Corresponding right-of-use assets are recognized consisting of the lease liabilities, initial direct costs and any lease incentive payments. Lease liabilities are drawn down as lease payments are made and right-of-use assets are depreciated over the term of the lease. Operating lease expenses are recognized on a straight-line basis over the term of the lease, consisting of interest accrued on the lease liability and depreciation of the right-of-use asset, adjusted for changes in index-based variable lease payments in the period of change. Lease payments on short-term operating leases with lease terms twelve months or less are expensed on a straight-line basis over the lease term. The Company has elected to not separate non-lease elements embedded in its lease agreements. |
Concentration of credit risk and of significant customers | (h) Concentration of credit risk and of significant customers: Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and marketable securities. The Company's investments are limited to investment-grade securities with strong credit ratings with the objective of maintaining safety and liquidity. Cash and cash equivalents were held at major financial institutions in Canada and the United States. Such deposits may be in excess of insured limits in the event of non-performance by the institutions; however, the Company does not anticipate non-performance. Neurocrine Biosciences, Inc. ("Neurocrine Biosciences") accounted for 100 % of revenue recognized for the year ended December 31, 2022 and December 31, 2020. Neurocrine Biosciences and Pacira BioSciences, Inc. (“Pacira BioSciences”) accounted for 84 % and 16 % of revenue recognized for the year ended December 31, 2021, respectively. |
Financial instruments and fair value | (i) Financial instruments and fair value: The Company measures certain financial instruments and other items at fair value. To determine the fair value, the Company uses the fair value hierarchy for inputs used to measure fair value of financial assets and liabilities. This hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels: Level 1 (highest priority), Level 2, and Level 3 (lowest priority). • Level 1 - Unadjusted quoted prices in active markets for identical instruments. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). • Level 3 - Inputs are unobservable and reflect the Company’s assumptions as to what market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The carrying amount of accounts receivable, accounts payable and accrued expenses approximates fair value due to the nature and short-term of those instruments. The Company’s cash and cash equivalents and marketable securities are measured at fair value on a recurring basis and the level of fair value hierarchy utilized is described in note 6. |
Revenue recognition | (j) Revenue recognition: The Company recognizes the amount of revenue to which it expects to be entitled, for the transfer of promised goods or services to customers under a five-step model: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when or as a performance obligation is satisfied. Collaboration agreements may require the Company to deliver various rights and/or services, including intellectual property rights or licenses and research and development services. Under such collaboration agreements, the Company is generally eligible to receive non-refundable upfront payments, funding for research and development services, milestone payments, and royalties. In contracts where the Company has more than one performance obligation to provide its customer with goods or services, each performance obligation is evaluated to determine whether it is distinct based on whether (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available and (ii) the good or service is separately identifiable from other promises in the contract. The consideration under the contract is then allocated between the distinct performance obligations based on their respective relative standalone selling prices. The estimated standalone selling price of each deliverable reflects the Company’s best estimate of what the selling price would be if the deliverable was regularly sold on a standalone basis and is determined by reference to market rates for the good or service when sold to others or by using an adjusted market assessment approach if selling price on a standalone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control is transferred to the customer for the related goods or services. Consideration in exchange for research and development services performed by the Company on behalf of the licensee is recognized upon performance of such activities at rates consistent with prevailing market rates. Consideration associated with at-risk substantive performance milestones, including sales-based milestones, is recognized as revenue using the most likely amount method when it is probable that a significant reversal of the cumulative revenue recognized will not occur. Sales-based royalties received in connection with licenses of intellectual property are subject to a specific exception in the revenue standards, whereby the consideration is not included in the transaction price and recognized in revenue until the customer’s subsequent sales or usages occur. |
Research and development costs | (k) Research and development costs: Research and development costs are expensed in the period incurred. Research and development expenses consist of costs incurred in performing research and development activities, including personnel-related expenses, consisting of salaries, benefits and stock-based compensation for employees engaged in scientific research and development, third-party expenses incurred in connection with the pre-clinical and clinical development of product candidates, third-party expenses relating to formulation, process development and manufacture of drug substance and drug product for use in pre-clinical testing and clinical trials, third-party acquisition, license and collaboration fees, laboratory consumables and certain indirect costs incurred in support of overall research and development activities, including facilities, depreciation and information technology costs. The amount of expenses recognized in a period related to service agreements is based on the work performed using the accrual basis of accounting. Third-party service providers generally provide estimates of proportionate performance to allow the Company to determine an appropriate accrual. When determining the adequacy of an accrual, the Company analyzes progress based on the level of services performed, progress of the studies, including the phase or completion of events, and contracted costs. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered. |
Stock-based compensation | (l) Stock-based compensation: The Company grants stock options to employees, consultants, directors and officers pursuant to stock option plans described in note 12c. Employee stock-based compensation expense is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense, net of actual forfeitures, over the requisite service period with a corresponding increase in additional paid-in capital. Stock-based compensation expense is amortized on a straight-line basis over the requisite service period for the entire award, which is generally the vesting period of the award. Any consideration received on exercise of stock options is credited to share capital. |
Foreign currency translation | (m) Foreign currency translation: The functional and reporting currency of the Company and its subsidiary is the U.S. dollar. Monetary assets and liabilities denominated in a currency other than the U.S. dollar are re-measured into U.S. dollars at the exchange rate prevailing as of the balance sheet date. Non-monetary assets and liabilities acquired in a currency other than U.S. dollars are translated at historical exchange rates prevailing at each transaction date. Revenue and expense transactions are translated at the exchange rates prevailing at each transaction date. Exchange gains and losses on translation are included in the consolidated statements of operations and comprehensive income (loss) as foreign exchange (loss) gain. |
Income taxes | (n) Income taxes: Deferred income taxes are recognized for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities and their respective tax bases and net operating loss and credit carryforwards. Deferred income tax assets and liabilities are measured at enacted rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in the consolidated statement of operations and comprehensive income (loss) in the period that includes the enactment date. A valuation allowance is provided when realization of deferred income tax assets does not meet the more-likely-than-not criterion for recognition. |
Segment and geographic information | (o) Segment and geographic information: Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Property Plant and Equipment Estimated Useful Lives | Property, plant and equipment are amortized over their estimated useful lives using the straight-line method based on the following rates: Asset Rate Research equipment 5 years Office furniture and equipment 5 years Computer equipment 3 years Leasehold improvements Over the lesser of lease term or |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | The level of the fair value hierarchy utilized to determine the fair va lue of cash and cash equivalents and marketable securities consisted of the following: December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents Cash and money market fund $ 57,242 $ — $ — $ 57,242 $ 175,688 $ — $ — $ 175,688 Marketable securities Guaranteed investment certificates 14,953 — — 14,953 — — — — U.S. treasuries 322,851 — — 322,851 239,057 — — 239,057 U.S. government securities — 32,479 — 32,479 — — — — Commercial paper — 150,560 — 150,560 — — — — Corporate debt securities — 142,684 — 142,684 — 137,029 — 137,029 Total $ 395,046 $ 325,723 $ — $ 720,769 $ 414,745 $ 137,029 $ — $ 551,774 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost, Unrealized Losses Recognized in AOCI and Fair Value of Available-for-Sale Securities | Amortized cost, unrealized losses recognized in accumulated other comprehensive loss and fair value of available-for-sale securities consisted of the following: December 31, 2022 Amortized Unrealized Fair Contractual maturity of 0 to 1 years: Guaranteed investment certificates $ 14,953 $ — $ 14,953 U.S. treasuries 78,880 ( 837 ) 78,043 U.S. government securities 5,793 ( 20 ) 5,773 Commercial paper 150,560 — 150,560 Corporate debt securities 8,942 ( 68 ) 8,874 Contractual maturity of 1 to 3 years: U.S. treasuries 60,354 ( 958 ) 59,396 U.S. government securities 26,741 ( 35 ) 26,706 Corporate debt securities 42,672 ( 92 ) 42,580 Total $ 388,895 $ ( 2,010 ) $ 386,885 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following: December 31, 2022 2021 Research equipment $ 8,921 $ 8,424 Office furniture and equipment 868 832 Computer equipment 1,213 1,539 Leasehold improvements 4,203 7,021 Less: accumulated depreciation and amortization ( 8,705 ) ( 13,350 ) Net book value $ 6,500 $ 4,466 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Cost Components of Operating Lease | The cost components of the operating leases were as follows for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Lease Cost Operating lease expense $ 1,126 $ 591 $ 536 Variable lease expense (1) 774 751 549 Lease Term and Discount Rate Weighted average remaining lease term (years) 8.07 10.50 6.50 Weighted average discount rate 3.97 % 3.42 % 2.45 % (1) Variable lease costs are payments that vary because of changes in facts or circumstances and include common area maintenance and property taxes related to the premises. Variable lease costs are excluded from the calculation of minimum lease payments. |
Future Minimum Lease Payments | Future minimum lease payments as of December 31, 2022 were as follows: Year ending December 31: 2023 $ 1,622 2024 1,677 2025 1,745 2026 1,813 2027 1,800 2028 and thereafter 5,286 Total future minimum lease payments $ 13,943 Less: imputed interest ( 2,037 ) Less: future lease incentives reasonably certain of use (1) ( 1,471 ) Present value of lease liabilities $ 10,435 (1) Lease incentives are expected to be utilized within 12 months. |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: December 31, 2022 2021 Trade payables $ 8,491 $ 3,824 Employee compensation, benefits, and related accruals 5,823 5,940 Consulting and contracted research 7,148 3,550 Professional fees 411 285 Other 341 118 Total $ 22,214 $ 13,717 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Activity | : Number of Weighted Aggregate Options Price ($) (1) Intrinsic Value Outstanding, December 31, 2019 3,534,236 7.90 19,618 Granted 1,482,250 11.75 Exercised (2) ( 171,812 ) 5.76 1,535 Forfeited, cancelled or expired ( 85,677 ) 13.04 Outstanding, December 31, 2020 4,758,997 9.10 30,464 Granted 1,775,450 19.82 Exercised (2) ( 690,284 ) 7.34 11,306 Forfeited, cancelled or expired ( 205,931 ) 13.01 Outstanding, December 31, 2021 5,638,232 12.55 105,405 Granted 2,315,645 30.90 Exercised (2) ( 780,725 ) 9.47 19,651 Forfeited, cancelled or expired ( 55,370 ) 24.50 Outstanding, December 31, 2022 7,117,782 18.75 147,214 Exercisable, December 31, 2022 3,530,408 11.40 98,944 (1) Canadian dollar denominated stock options have been translated into U.S. dollars at a foreign exchange rate of 0.74 as of December 31, 2022. (2) During the year ended December 31, 2022, 68,930 (2021 – 66,215 and 2020 – 26,513 ) stock options were exercised for the same number of common shares in exchange for cash. In the same period, the Company issued 510,671 (2021 – 412,940 and 2020 – 87,197 ) common shares for the cashless exercise of 711,795 (2021 – 624,069 and 2020 – 145,299 ) stock options. |
Schedule of Nonvested Stock Option Activity | A summary of the Company’s non-vested stock option activity and related information for the year ended December 31, 2022 is as follows: Number of Weighted Average Non-vested, January 1, 2022 2,671,589 10.56 Granted 2,315,645 19.78 Vested ( 1,344,490 ) 10.23 Forfeited or cancelled ( 55,370 ) 14.43 Non-vested, December 31, 2022 3,587,374 16.60 |
Fair Value Assumptions for Stock Options | The weighted-average option pricing assumptions are as follows: Year Ended December 31, 2022 2021 2020 Average risk-free interest rate 2.39 % 1.16 % 0.72 % Expected volatility 70 % 68 % 68 % Average expected term (in years) 6.16 6.66 6.79 Expected dividend yield 0.00 % 0.00 % 0.00 % Weighted average fair value of options granted $ 19.78 $ 12.54 $ 7.46 |
Stock Based Compensation Expenses | Stock-based compensation expense is classified in the consolidated statements of operations and comprehensive income (loss) as follows: Year Ended December 31, 2022 2021 2020 Research and development expenses $ 7,766 $ 3,734 $ 1,936 General and administrative expenses 12,610 6,283 3,741 $ 20,376 $ 10,017 $ 5,677 |
Pre-Funded Warrants Outstanding | The following table summarizes the pre-funded warrants outstanding as of December 31, 2022: Date of Issuance Pre-Funded Warrants to Purchase Common Shares Price per Pre-Funded Warrant Exercise Price March 2021 1,081,081 $ 18.4999 $ 0.0001 October 2021 1,694,915 $ 29.4999 $ 0.0001 June 2022 327,868 $ 30.4999 $ 0.0001 Total 3,103,864 |
Collaboration Agreements (Table
Collaboration Agreements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule Of Collaboration Revenue | Revenue was as follows for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Neurocrine Biosciences: Recognition of the transaction price $ 372 $ 3,715 $ 26,810 Research and development services 1,938 6,452 5,356 Milestone payments 7,124 5,270 — Pacira BioSciences: Milestone payments — 3,000 — Total revenue $ 9,434 $ 18,437 $ 32,166 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Recovery | Income tax recovery varies from the amounts that would be computed by applying the expected Canadian federal and provincial statutory income tax rate of 27 % ( 2021 and 2020 – 27 %) to loss before income taxes as shown in the following table: Year Ended December 31, 2022 2021 2020 Computed recoveries at Canadian federal and $ ( 33,819 ) $ ( 21,300 ) $ ( 7,856 ) Change in valuation allowance 30,732 21,354 7,821 Tax credits earned ( 3,086 ) ( 2,279 ) ( 1,689 ) Tax attributes expired/utilized 1,564 692 764 Non-deductible expenditures 4,463 2,033 1,135 Other 264 ( 506 ) ( 432 ) Income tax expense (recovery) $ 118 $ ( 6 ) $ ( 257 ) |
Schedule of Net Deferred Income Tax Assets | December 31, 2022 2021 2020 Scientific research and experimental development pool $ 34,891 $ 32,505 $ 29,580 Tax credits 28,835 27,365 25,440 Non-capital losses 80,547 53,453 35,803 Depreciable assets 8,912 7,667 6,635 Deferred financing fees 8,928 7,252 1,689 Deferred revenue - - 983 Stock based compensation 1,492 585 334 Other 1,569 732 170 Less - valuation allowance ( 164,665 ) ( 129,094 ) ( 100,111 ) Net deferred income tax assets $ 509 $ 465 $ 523 |
Nature of the business (Details
Nature of the business (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ 482,747 | $ 357,374 | |
Net loss | $ 125,373 | $ 78,882 | $ 28,837 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Xenon Pharmaceuticals USA Inc. [Member] | |
Basis of Presentation [Line Items] | |
Date of incorporation | Dec. 02, 2016 |
Significant Accounting Polici_4
Significant Accounting Policies - Property Plant and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Research Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office Furniture and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Over the lesser of lease term or estimated useful life |
Significant Accounting Polici_5
Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Significant Accounting Policies [Line Items] | |||
Impairment of Long-Lived Assets | $ | $ 0 | $ 0 | $ 0 |
Number of operating segment | Segment | 1 | ||
Total Revenues [Member] | Neurocrine Biosciences [Member] | Product Concentration Risk [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 100% | 84% | 100% |
Total Revenues [Member] | Pacira BioSciences [Member] | Product Concentration Risk [Member] | |||
Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 16% |
Changes in Significant Accoun_2
Changes in Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Change in accounting principle, early adoption | true |
Change in accounting principle, adoption date | Jul. 01, 2022 |
Change in accounting principle, material impact | true |
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected [Extensible Enumeration] | us-gaap:AccountingStandardsUpdate201613Member |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Details) | 1 Months Ended |
Mar. 31, 2022 shares | |
Series1 Preferred Shares | |
Class Of Stock [Line Items] | |
Preferred shares, converted | 1,016,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - Recurring Basis [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | $ 720,769 | $ 551,774 |
Level 1 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 395,046 | 414,745 |
Level 2 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 325,723 | 137,029 |
Cash and Money Market Fund [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 57,242 | 175,688 |
Cash and Money Market Fund [Member] | Level 1 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 57,242 | 175,688 |
Commercial Paper [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 150,560 | |
Commercial Paper [Member] | Level 2 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 150,560 | |
U.S. Treasuries [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 322,851 | 239,057 |
U.S. Treasuries [Member] | Level 1 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 322,851 | 239,057 |
Guaranteed Investment Certificates [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 14,953 | |
Guaranteed Investment Certificates [Member] | Level 1 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 14,953 | |
U.S. Government Securities [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 32,479 | |
U.S. Government Securities [Member] | Level 2 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 32,479 | |
Corporate Debt Securities [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 142,684 | 137,029 |
Corporate Debt Securities [Member] | Level 2 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | $ 142,684 | $ 137,029 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Trading marketable securities | $ 276,642 | $ 376,086 |
Trading securities available-for-sale | $ 386,885 |
Marketable Securities - Summary
Marketable Securities - Summary of Amortized Cost, Unrealized Losses Recognized in AOCI and Fair Value of Available-for-Sale Securities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Amortized Cost | $ 388,895 |
Unrealized Loss | (2,010) |
Fair Value | 386,885 |
Guaranteed Investment Certificates [Member] | |
Schedule Of Available For Sale Securities [Line Items] | |
Contractual maturity of 0 to 1 years, Amortized Cost | 14,953 |
Contractual maturity of 0 to 1 years, Fair Value | 14,953 |
U.S. Treasuries [Member] | |
Schedule Of Available For Sale Securities [Line Items] | |
Contractual maturity of 0 to 1 years, Amortized Cost | 78,880 |
Contractual maturity of 0 to 1 years, Unrealized Loss | (837) |
Contractual maturity of 0 to 1 years, Fair Value | 78,043 |
Contractual maturity of 1 to 3 years, Amortized Cost | 60,354 |
Contractual maturity of 1 to 3 years, Unrealized Loss | (958) |
Contractual maturity of 1 to 3 years, Fair Value | 59,396 |
U.S. Government Securities [Member] | |
Schedule Of Available For Sale Securities [Line Items] | |
Contractual maturity of 0 to 1 years, Amortized Cost | 5,793 |
Contractual maturity of 0 to 1 years, Unrealized Loss | (20) |
Contractual maturity of 0 to 1 years, Fair Value | 5,773 |
Contractual maturity of 1 to 3 years, Amortized Cost | 26,741 |
Contractual maturity of 1 to 3 years, Unrealized Loss | (35) |
Contractual maturity of 1 to 3 years, Fair Value | 26,706 |
Commercial Paper [Member] | |
Schedule Of Available For Sale Securities [Line Items] | |
Contractual maturity of 0 to 1 years, Amortized Cost | 150,560 |
Contractual maturity of 0 to 1 years, Fair Value | 150,560 |
Corporate Debt Securities [Member] | |
Schedule Of Available For Sale Securities [Line Items] | |
Contractual maturity of 0 to 1 years, Amortized Cost | 8,942 |
Contractual maturity of 0 to 1 years, Unrealized Loss | (68) |
Contractual maturity of 0 to 1 years, Fair Value | 8,874 |
Contractual maturity of 1 to 3 years, Amortized Cost | 42,672 |
Contractual maturity of 1 to 3 years, Unrealized Loss | (92) |
Contractual maturity of 1 to 3 years, Fair Value | $ 42,580 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Less: accumulated depreciation and amortization | $ (8,705) | $ (13,350) |
Net book value | 6,500 | 4,466 |
Research Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | 8,921 | 8,424 |
Office Furniture and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | 868 | 832 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | 1,213 | 1,539 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | $ 4,203 | $ 7,021 |
Leases (Details)
Leases (Details) - Lease | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 | Oct. 31, 2020 | Dec. 31, 2022 | Jul. 31, 2022 | |
Burnaby, British Columbia [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Number of operating leases | 1 | |||
Operating lease term | 21 months | |||
Operating lease extension term | 10 years | 5 years | ||
Operating lease expiration date | Jun. 30, 2032 | Jun. 30, 2022 | ||
Operating lease, description | The Company has an operating lease for research laboratories and office space in Burnaby, British Columbia. In October 2020, the Company entered into a lease amendment for a 21-month committed term from October 1, 2020 to June 30, 2022 and a renewal option for a portion of the facility for a 5-year term that was reasonably certain of exercise was included in the determination of the right-of-use asset and lease liability. In November 2021, the Company entered into an agreement to extend the lease for an additional 10-year term to June 30, 2032. | |||
Needham Massachusetts [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease term | 62 months | |||
Operating lease, description | In July 2022, the Company entered into an additional operating lease agreement for office space in Needham, Massachusetts, which commenced on October 1, 2022. The lease is for a 62-month term and an option to terminate one year prior to the expiry date, which was not considered in the determination of the right-of-use asset and lease liability. | |||
Operating lease, option to terminate | option to terminate one year prior to the expiry date |
Leases - Schedule of Cost Compo
Leases - Schedule of Cost Components of Operating Lease (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease expense | $ 1,126 | $ 591 | $ 536 |
Variable lease expense | $ 774 | $ 751 | $ 549 |
Weighted average remaining lease term (years) | 8 years 25 days | 10 years 6 months | 6 years 6 months |
Weighted average discount rate | 3.97% | 3.42% | 2.45% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 1,622 |
2024 | 1,677 |
2025 | 1,745 |
2026 | 1,813 |
2027 | 1,800 |
2028 and thereafter | 5,286 |
Total future minimum lease payments | 13,943 |
Less: imputed interest | (2,037) |
Less: future lease incentives reasonably certain of use | (1,471) |
Present value of lease liabilities | $ 10,435 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 8,491 | $ 3,824 |
Employee compensation, benefits, and related accruals | 5,823 | 5,940 |
Consulting and contracted research | 7,148 | 3,550 |
Professional fees | 411 | 285 |
Other | 341 | 118 |
Total | $ 22,214 | $ 13,717 |
Term Loan (Details)
Term Loan (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 31, 2020 | Aug. 31, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Loss on repayment of term loan (note 11) | $ 0 | $ 0 | $ (988) | ||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, final payment fee | $ 1,008 | ||||
Debt instrument prepayment fee | 225 | ||||
Loss on repayment of term loan (note 11) | $ (988) | $ (988) | |||
Warrants outstanding to purchase common stock | 40,000 | ||||
Warrants exercise price per common share | $ 9.79 | ||||
Term Loan [Member] | Loan Agreement [Member] | Silicon Valley Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of debt instrument | $ 15,500 | ||||
Debt instrument, commencing period | 2018-08 | ||||
Debt instrument, interest only payment end date | Mar. 31, 2020 | ||||
Debt instrument principal repayment period | 30 months | ||||
Debt instrument, maturity date | Sep. 01, 2022 | ||||
Debt instrument, final payment fee percentage | 6.50% | ||||
Term Loan [Member] | Loan Agreement [Member] | Silicon Valley Bank [Member] | Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, floating interest rate | 0.50% |
Share Capital (Details)
Share Capital (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2022 | Mar. 31, 2022 | Jan. 31, 2022 | Oct. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Jan. 31, 2021 | Jun. 30, 2020 | Feb. 29, 2020 | Jan. 31, 2020 | Nov. 30, 2019 | Sep. 30, 2019 | Mar. 31, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Capital [Line Items] | ||||||||||||||||||
Warrants outstanding to purchase common stock | 3,103,864 | 2,775,996 | ||||||||||||||||
Options granted | 2,315,645 | 1,775,450 | 1,482,250 | |||||||||||||||
Options Outstanding Weighted Average Remaining Contractual Life in Years | 7 years 4 months 24 days | |||||||||||||||||
Options Exercisable Weighted Average Remaining Contractual Life in Years | 5 years 10 months 24 days | |||||||||||||||||
Aggregate fair value of options vested | $ 13,752 | $ 8,271 | $ 3,698 | |||||||||||||||
Unrecognized stock-based compensation cost | $ 49,105 | |||||||||||||||||
Unrecognized stock-based compensation expected to be recognized over a period | 2 years 9 months 10 days | |||||||||||||||||
Warrants exercise description | The Company may not affect the exercise of any pre-funded warrant, and a holder will not be entitled to exercise any portion of any pre-funded warrant that, upon giving effect to such exercise, would cause: (i) the aggregate number of common shares beneficially owned by such holder, together with its affiliates, to exceed 4.99% of the total number of common shares outstanding immediately after giving effect to the exercise; or (ii) the combined voting power of the Company’s securities beneficially owned by such holder, together with its affiliates, to exceed 4.99% of the combined voting power of all of the Company’s securities immediately outstanding after giving effect to the exercise, which percentage may be changed at the holder’s election to a higher or lower percentage not in excess of 19.99% upon at least 61 days’ notice to the Company. | |||||||||||||||||
Amended and Restated Stock Option Plan [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Vesting period | 4 years | |||||||||||||||||
Maximum term of each option exercised | 10 years | |||||||||||||||||
Options granted | 0 | |||||||||||||||||
2019 Inducement Plan [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Options granted | 0 | |||||||||||||||||
Common shares reserved for issuance | 400,000 | |||||||||||||||||
Amended and Restated 2014 Plan [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Vesting period | 4 years | |||||||||||||||||
Maximum term of each option exercised | 10 years | |||||||||||||||||
Common shares reserved for issuance | 9,300,000 | 5,646,490 | ||||||||||||||||
Number of restricted share awards, restricted share unit awards or performance awards available for issue | 1,000,000 | |||||||||||||||||
Common Shares [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Shares issued | 9,357,348 | 16,143,472 | 6,759,187 | |||||||||||||||
Conversion of shares | 1,016,000 | 1,016,000 | 1,852,000 | |||||||||||||||
Jefferies and Stifel [Member] | ATM [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Sale proceeds of common shares | $ 10,693 | $ 37,796 | $ 10,729 | |||||||||||||||
Jefferies and Stifel [Member] | ATM [Member] | Maximum [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Gross proceeds from issuable of common stock | $ 50,000 | $ 250,000 | ||||||||||||||||
Jefferies and Stifel [Member] | ATM [Member] | Common Shares [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Shares issued | 733,000 | 2,446,687 | 0 | 805,643 | ||||||||||||||
Jefferies and Stifel [Member] | Underwritten Public Offering [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Sale proceeds of common shares | $ 107,922 | |||||||||||||||||
Shares issued | 5,135,135 | |||||||||||||||||
Shares price | $ 18.50 | |||||||||||||||||
Warrants outstanding to purchase common stock | 1,081,081 | |||||||||||||||||
Warrants issued price per pre funded warrant | $ 18.4999 | |||||||||||||||||
Warrants exercise price per common share | $ 0.0001 | |||||||||||||||||
Sale proceeds from issuance of pre funded warrants | $ 75,103 | |||||||||||||||||
Number of warrants exercised | 0 | |||||||||||||||||
Jefferies and Stifel [Member] | Over Allotment [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Shares issued | 810,810 | 562,500 | ||||||||||||||||
Jefferies, Stifel and Guggenheim Securities, LLC [Member] | Underwritten Public Offering [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Sale proceeds of common shares | $ 64,660 | |||||||||||||||||
Jefferies, Stifel and Guggenheim Securities, LLC [Member] | Underwritten Public Offering [Member] | Common Shares [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Shares issued | 3,750,000 | |||||||||||||||||
Shares price | $ 16 | |||||||||||||||||
Jefferies LLC SVB Leerink LLC and Stifel Nicolaus Company Incorporated [Member] | Underwritten Public Offering [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Sale proceeds of common shares | $ 323,938 | |||||||||||||||||
Shares issued | 10,000,000 | |||||||||||||||||
Shares price | $ 29.50 | |||||||||||||||||
Warrants outstanding to purchase common stock | 1,694,915 | |||||||||||||||||
Warrants issued price per pre funded warrant | $ 29.4999 | |||||||||||||||||
Warrants exercise price per common share | $ 0.0001 | |||||||||||||||||
Jefferies LLC SVB Leerink LLC and Stifel Nicolaus Company Incorporated [Member] | Over Allotment [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Shares issued | 1,525,423 | |||||||||||||||||
Neurocrine Biosciences [Member] | License and Collaboration Agreement [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Sale proceeds of common shares | $ 8,250 | $ 5,500 | ||||||||||||||||
Shares issued | 258,986 | 275,337 | ||||||||||||||||
Aggregate purchase price per share | $ 31.855 | $ 19.9755 | ||||||||||||||||
Premium | $ 374 | $ 770 | ||||||||||||||||
Jefferies, Stifel, J.P. Morgan Securities LLC and SVB Securities LLC [Member] | Underwritten Public Offering [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Sale proceeds of common shares | $ 269,890 | |||||||||||||||||
Shares issued | 9,098,362 | |||||||||||||||||
Shares price | $ 30.50 | |||||||||||||||||
Warrants outstanding to purchase common stock | 327,868 | |||||||||||||||||
Warrants issued price per pre funded warrant | $ 30.4999 | |||||||||||||||||
Warrants exercise price per common share | $ 0.0001 | |||||||||||||||||
Jefferies, Stifel, J.P. Morgan Securities LLC and SVB Securities LLC [Member] | Over Allotment [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Shares issued | 1,229,508 | |||||||||||||||||
Series1 Preferred Shares | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Conversion of shares | 1,016,000 | 1,852,000 | ||||||||||||||||
BVF Partners L.P [Member] | Exchange Agreement [Member] | Common Shares [Member] | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Shares cancelled | 2,868,000 | |||||||||||||||||
BVF Partners L.P [Member] | Exchange Agreement [Member] | Series1 Preferred Shares | ||||||||||||||||||
Share Capital [Line Items] | ||||||||||||||||||
Preferred shares convertible into common shares | one-for-one | |||||||||||||||||
Shares issued | 2,868,000 |
Share Capital - Stock Option Ac
Share Capital - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-Based Payment Arrangement [Abstract] | ||||
Number of Options Outstanding, Beginning balance | 5,638,232 | 4,758,997 | 3,534,236 | |
Number of Options, Granted | 2,315,645 | 1,775,450 | 1,482,250 | |
Number of Options, Exercised | (780,725) | (690,284) | (171,812) | |
Number of Options, Forfeited, cancelled or expired | (55,370) | (205,931) | (85,677) | |
Number of Options Outstanding, Ending balance | 7,117,782 | 5,638,232 | 4,758,997 | |
Number of Options Exercisable, End of period | 3,530,408 | |||
Weighted Average Exercise Price Outstanding, Beginning balance | $ 12.55 | $ 9.10 | $ 7.90 | |
Weighted Average Exercise Price, Granted | 30.90 | 19.82 | 11.75 | |
Weighted Average Exercise Price, Exercised | 9.47 | 7.34 | 5.76 | |
Weighted Average Exercise Price, Forfeited, cancelled and expired | 24.50 | 13.01 | 13.04 | |
Weighted Average Exercise Price Outstanding, Ending balance | 18.75 | $ 12.55 | $ 9.10 | |
Weighted Average Exercise Price, Exercisable Ending balance | $ 11.40 | |||
Aggregate Intrinsic Value, Outstanding | $ 147,214 | $ 105,405 | $ 30,464 | $ 19,618 |
Aggregate Intrinsic Value, Exercised | 19,651 | $ 11,306 | $ 1,535 | |
Aggregate Intrinsic Value, Exercisable, Ending balance | $ 98,944 |
Share Capital - Stock Option _2
Share Capital - Stock Option Activity (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2022 shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | |
Share-Based Payment Arrangement [Abstract] | |||
Foreign exchange rate translation | 0.74 | ||
Stock Options exercised for Number of Common Shares for cash | 68,930 | 66,215 | 26,513 |
Common stock issued for cashless exercise | 510,671 | 412,940 | 87,197 |
Cashless exercise of stock options | 711,795 | 624,069 | 145,299 |
Share Capital - Summary of Non-
Share Capital - Summary of Non-Vested Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of Options, Non-vested, Beginning balance | 2,671,589 | ||
Number of Options, Granted | 2,315,645 | 1,775,450 | 1,482,250 |
Number of Options, Vested | (1,344,490) | ||
Number of Options, Forfeited or cancelled | (55,370) | ||
Number of Options, Non-vested, Ending balance | 3,587,374 | 2,671,589 | |
Weighted Average Grant Date Fair Value, Non-vested, Beginning balance | $ 10.56 | ||
Weighted Average Grant Date Fair Value, Granted | 19.78 | $ 12.54 | $ 7.46 |
Weighted Average Grant Date Fair Value, Vested | 10.23 | ||
Weighted Average Grant Date Fair Value, Forfeited or cancelled | 14.43 | ||
Weighted Average Grant Date Fair Value, Non-vested, Ending balance | $ 16.60 | $ 10.56 |
Share Capital - Fair Value Assu
Share Capital - Fair Value Assumptions for Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Assumptions For Stock Options [Abstract] | |||
Average risk-free interest rate | 2.39% | 1.16% | 0.72% |
Expected volatility | 70% | 68% | 68% |
Average expected term (in years) | 6 years 1 month 28 days | 6 years 7 months 28 days | 6 years 9 months 14 days |
Expected dividend yield | 0% | 0% | 0% |
Weighted average fair value of options granted | $ 19.78 | $ 12.54 | $ 7.46 |
Share Capital - Stock Based Com
Share Capital - Stock Based Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | $ 20,376 | $ 10,017 | $ 5,677 |
Research and development [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | 7,766 | 3,734 | 1,936 |
General and administrative [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation | $ 12,610 | $ 6,283 | $ 3,741 |
Share Capital - Schedule of Pre
Share Capital - Schedule of Pre-Funded Warrants (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Share Capital [Line Items] | ||
Pre-Funded Warrants to Purchase Common Shares | 3,103,864 | 2,775,996 |
March 2021 | ||
Share Capital [Line Items] | ||
Pre-Funded Warrants to Purchase Common Shares | 1,081,081 | 1,081,081 |
Price per Pre-Funded Warrant | $ 18.4999 | $ 18.4999 |
Exercise Price | $ 0.0001 | $ 0.0001 |
October 2021 | ||
Share Capital [Line Items] | ||
Pre-Funded Warrants to Purchase Common Shares | 1,694,915 | 1,694,915 |
Price per Pre-Funded Warrant | $ 29.4999 | $ 29.4999 |
Exercise Price | $ 0.0001 | $ 0.0001 |
June 2022 | ||
Share Capital [Line Items] | ||
Pre-Funded Warrants to Purchase Common Shares | 327,868 | |
Price per Pre-Funded Warrant | $ 30.4999 | |
Exercise Price | $ 0.0001 |
Collaboration Agreements - Sche
Collaboration Agreements - Schedule of Collaboration Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Total revenue | $ 9,434 | $ 18,437 | $ 32,166 |
Collaboration Revenue [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Total revenue | 9,434 | 18,437 | 32,166 |
Neurocrine Biosciences [Member] | Collaboration Revenue [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Recognition of the transaction price | 372 | 3,715 | 26,810 |
Research and development services | 1,938 | 6,452 | 5,356 |
Milestone payments | 7,124 | 5,270 | |
Total revenue | $ 2,310 | 10,167 | $ 32,166 |
Pacira BioSciences [Member] | Collaboration Revenue [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Milestone payments | $ 3,000 |
Collaboration Agreements (Detai
Collaboration Agreements (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2022 | Sep. 30, 2021 | Dec. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Revenue | $ 9,434,000 | $ 18,437,000 | $ 32,166,000 | ||||
Collaboration Revenue [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Revenue | 9,434,000 | 18,437,000 | 32,166,000 | ||||
Neurocrine Biosciences [Member] | Collaboration Revenue [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Revenue | 2,310,000 | 10,167,000 | 32,166,000 | ||||
Research and development services | 1,938,000 | 6,452,000 | 5,356,000 | ||||
Milestone payments | 7,124,000 | 5,270,000 | |||||
Neurocrine Biosciences [Member] | Exclusive License to XEN901 and Exclusive License to DTCs [Member] | Collaboration Revenue [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Revenue | 25,926,000 | ||||||
Neurocrine Biosciences [Member] | Development Services Under the Initial Development Program for the DTCs [Member] | Collaboration Revenue [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Revenue | 372,000 | 3,715,000 | 884,000 | ||||
Neurocrine Biosciences [Member] | Research And Development Funding | Collaboration Revenue [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Research and development services | 1,938,000 | 6,452,000 | $ 5,356,000 | ||||
Neurocrine Biosciences [Member] | License and Collaboration Agreement [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Proceeds from upfront fee | $ 50,000,000 | ||||||
Upfront payment received in cash | 30,000,000 | $ 30,000,000 | |||||
Upfront payment received in equity investment | $ 20,000,000 | 20,000,000 | |||||
Potential milestone payments receivable | $ 1,667,500,000 | ||||||
Percentage of option to co-fund development costs upon achievement of certain milestones | 50% | ||||||
Collaborate agreement premium related to equity investment | 3,333,000 | ||||||
Transaction price allocated to performance obligations | 33,333,000 | ||||||
Milestone Payment Received | $ 15,000,000 | $ 10,000,000 | |||||
Milestone Payment Received in Cash | 6,750,000 | 4,500,000 | |||||
Milestone Payment Received in Equity Investment | 8,250,000 | 5,500,000 | |||||
Equity investment measure at fair value | 7,876,000 | 4,730,000 | |||||
Premium | 374,000 | 770,000 | |||||
Performance obligation related to milestone | 0 | 0 | |||||
Revenue | $ 6,750,000 | $ 4,500,000 | |||||
Neurocrine Biosciences [Member] | License and Collaboration Agreement [Member] | Exclusive License to XEN901 and Exclusive License to DTCs [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Transaction price allocated to performance obligations | $ 28,807,000 | ||||||
Neurocrine Biosciences [Member] | License and Collaboration Agreement [Member] | Development Services Under the Initial Development Program for the DTCs [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Transaction price allocated to performance obligations | $ 5,025,000 | ||||||
Variable consideration allocated to performance obligation | 499,000 | ||||||
Neurocrine Biosciences [Member] | License and Collaboration Agreement [Member] | Regulatory Milestone [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Potential milestone payments receivable | 1,067,500,000 | ||||||
Neurocrine Biosciences [Member] | License and Collaboration Agreement [Member] | Sales Based Milestone [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Potential milestone payments receivable | $ 600,000,000 | ||||||
Pacira BioSciences [Member] | Collaboration Revenue [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Milestone payments | 3,000,000 | ||||||
Pacira BioSciences [Member] | Asset Purchase Agreement [Member] | XEN402 [Member] | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||
Milestone payments | 1,000,000 | ||||||
Milestone payment due on initiation of Phase 1b clinical trial | $ 2,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Asset Purchase Agreement [Member] - 1st Order Pharmaceuticals, Inc. [Member] - USD ($) | 1 Months Ended | 12 Months Ended |
Feb. 28, 2023 | Dec. 31, 2022 | |
Commitments And Contingencies [Line Items] | ||
Milestone payment paid | $ 600,000 | |
Royalty obligations | 0 | |
Regulatory Milestone [Member] | Maximum [Member] | ||
Commitments And Contingencies [Line Items] | ||
Future potential payments | $ 6,000,000 | |
Clinical Developement And Other Milestone [Member] | Subsequent Event [Member] | ||
Commitments And Contingencies [Line Items] | ||
Milestone payment paid | $ 1,400,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax Credit Carryforward [Line Items] | |||
Unclaimed Tax Deductions Related To Scientific Research And Experimental Development Expenditures | $ 129,226 | $ 120,388 | |
Non-capital losses carried forward for tax purposes | $ 295,828 | 197,976 | |
Tax Credit Carry forward, Expiration Date | Dec. 31, 2042 | ||
Unrecognized tax benefits of uncertain tax positions | $ 10,850 | $ 10,850 | |
Canadian federal and provincial tax rates | 27% | 27% | 27% |
Canada and United States Revenue Agency [Member] | Latest Tax Year [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax year open for income tax examination | 2021 | ||
Canada and United States Revenue Agency [Member] | Earliest Tax Year [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax year open for income tax examination | 2002 | ||
Investment Tax credit [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit available to offset taxes payable | $ 27,323 | $ 26,298 | |
Provincial Tax Credit [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit available to offset taxes payable | $ 8,418 | $ 8,168 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Recovery (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Computed recoveries at Canadian federal and provincial tax rates | $ (33,819) | $ (21,300) | $ (7,856) |
Change in valuation allowance | 30,732 | 21,354 | 7,821 |
Tax credits earned | (3,086) | (2,279) | (1,689) |
Tax attributes expired/utilized | 1,564 | 692 | 764 |
Non-deductible expenditures | 4,463 | 2,033 | 1,135 |
Other | 264 | (506) | (432) |
Income tax expense (recovery) | $ 118 | $ (6) | $ (257) |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | |||
Scientific research and experimental development pool | $ 34,891 | $ 32,505 | $ 29,580 |
Tax credits | 28,835 | 27,365 | 25,440 |
Non-capital losses | 80,547 | 53,453 | 35,803 |
Depreciable assets | 8,912 | 7,667 | 6,635 |
Deferred financing fees | 8,928 | 7,252 | 1,689 |
Deferred revenue | 983 | ||
Stock based compensation | 1,492 | 585 | 334 |
Other | 1,569 | 732 | 170 |
Less - valuation allowance | (164,665) | (129,094) | (100,111) |
Net deferred income tax assets | $ 509 | $ 465 | $ 523 |