Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | XENON PHARMACEUTICALS INC. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 64,145,523 | |
Entity Central Index Key | 0001582313 | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-36687 | |
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 | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | V5G 4W8 | |
City Area Code | 604 | |
Local Phone Number | 484-3300 | |
Title of 12(b) Security | Common Shares, without par value | |
Trading Symbol | XENE | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | Z4 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 64,552 | $ 57,242 |
Marketable securities (note 5) | 475,048 | 534,845 |
Accounts receivable | 2,123 | 986 |
Prepaid expenses and other current assets | 2,893 | 7,225 |
Total current assets | 544,616 | 600,298 |
Marketable securities, long-term (note 5) | 112,592 | 128,682 |
Operating lease right-of-use asset, net (note 6) | 9,799 | 10,406 |
Property, plant and equipment, net | 9,563 | 6,500 |
Deferred tax assets | 445 | 509 |
Prepaid expenses, long-term | 7,884 | 7,751 |
Total assets | 684,899 | 754,146 |
Current liabilities: | ||
Accounts payable and accrued expenses (note 7) | 26,936 | 22,214 |
Operating lease liability (note 6) | 1,223 | 488 |
Total current liabilities | 28,159 | 22,702 |
Operating lease liability, long-term (note 6) | 10,283 | 9,947 |
Total liabilities | 38,442 | 32,649 |
Shareholders’ equity: | ||
Common shares, without par value; unlimited shares authorized; issued and outstanding: 63,718,350 (December 31, 2022 - 62,587,701) (note 8) | 1,083,008 | 1,065,136 |
Additional paid-in capital | 138,683 | 142,108 |
Accumulated deficit | (571,935) | (482,747) |
Accumulated other comprehensive loss | (3,299) | (3,000) |
Total shareholders' equity | 646,457 | 721,497 |
Total liabilities and shareholders’ equity | 684,899 | 754,146 |
Commitments and contingencies (note 10) |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Statement of Financial Position [Abstract] | ||
Common shares, without par value | ||
Common shares, shares authorized | Unlimited | Unlimited |
Common shares, Issued | 63,718,350 | 62,587,701 |
Common shares, Outstanding | 63,718,350 | 62,587,701 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue (note 9) | $ 536 | $ 9,302 | ||
Operating expenses: | ||||
Research and development | $ 44,040 | 22,146 | $ 83,556 | 41,506 |
General and administrative | 11,584 | 8,705 | 21,119 | 15,480 |
Total operating expenses | 55,624 | 30,851 | 104,675 | 56,986 |
Loss from operations | (55,624) | (30,315) | (104,675) | (47,684) |
Other income (expense): | ||||
Interest income | 6,524 | 816 | 11,947 | 1,184 |
Unrealized fair value gain (loss) on trading securities | 1,036 | (1,288) | 2,914 | (4,650) |
Foreign exchange gain (loss) | 383 | (411) | 696 | (112) |
Other income (expense) | 7,943 | (883) | 15,557 | (3,578) |
Loss before income taxes | (47,681) | (31,198) | (89,118) | (51,262) |
Income tax recovery (expense) | 220 | 40 | (70) | 434 |
Net loss | (47,461) | (31,158) | (89,188) | (50,828) |
Net loss attributable to preferred shareholders | (385) | |||
Net loss attributable to common shareholders | (47,461) | (31,158) | (89,188) | (50,443) |
Other comprehensive loss: | ||||
Unrealized loss on available-for-sale securities (note 5) | (1,479) | (299) | ||
Comprehensive loss | $ (48,940) | $ (31,158) | $ (89,487) | $ (50,443) |
Net loss per common share (note 3): | ||||
Basic | $ (0.72) | $ (0.55) | $ (1.36) | $ (0.91) |
Diluted | $ (0.72) | $ (0.55) | $ (1.36) | $ (0.91) |
Weighted-average common shares outstanding (note 3): | ||||
Basic | 65,861,138 | 56,192,922 | 65,792,910 | 55,522,857 |
Diluted | 65,861,138 | 56,192,922 | 65,792,910 | 55,522,857 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - 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, 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 for the period | (19,670) | (19,670) | ||||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 8a and note 8c) | 7,876 | $ 7,876 | ||||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 8a and note 8c) (in shares) | 258,986 | |||||
Conversion of preferred shares to common shares (note 8b) | $ (7,732) | $ 7,732 | ||||
Conversion of preferred shares to common shares (note 8b) (in shares) | (1,016,000) | 1,016,000 | ||||
Stock-based compensation expense | 3,614 | 3,614 | ||||
Issued pursuant to exercise of stock options | $ 1,529 | (1,529) | ||||
Issued pursuant to exercise of stock options (in Shares) | 149,311 | |||||
Balance at Mar. 31, 2022 | 541,853 | $ 800,307 | 119,580 | (377,044) | (990) | |
Balance (in Shares) at Mar. 31, 2022 | 53,059,049 | |||||
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 for the period | $ (50,828) | |||||
Issued pursuant to exercise of stock options (in Shares) | 349,138 | |||||
Balance at Jun. 30, 2022 | $ 785,793 | $ 1,061,690 | 133,295 | (408,202) | (990) | |
Balance (in Shares) at Jun. 30, 2022 | 62,242,883 | |||||
Balance at Mar. 31, 2022 | 541,853 | $ 800,307 | 119,580 | (377,044) | (990) | |
Balance (in Shares) at Mar. 31, 2022 | 53,059,049 | |||||
Net loss for the period | (31,158) | (31,158) | ||||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 8a and note 8c) | 269,890 | $ 260,503 | 9,387 | |||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 8a and note 8c) (in shares) | 9,098,362 | |||||
Stock-based compensation expense | $ 5,208 | 5,208 | ||||
Issued pursuant to exercise of stock options | $ 880 | (880) | ||||
Issued pursuant to exercise of stock options (in Shares) | 130,031 | 85,472 | ||||
Balance at Jun. 30, 2022 | $ 785,793 | $ 1,061,690 | 133,295 | (408,202) | (990) | |
Balance (in Shares) at Jun. 30, 2022 | 62,242,883 | |||||
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 | |||||
Net loss for the period | (41,727) | (41,727) | ||||
Conversion of pre-funded warrants to common shares (note 8c) | $ 7,379 | (7,379) | ||||
Conversion of pre-funded warrants to common shares (note 8c) (in shares) | 425,000 | |||||
Stock-based compensation expense | 5,994 | 5,994 | ||||
Issued pursuant to exercise of stock options | $ 635 | (635) | ||||
Issued pursuant to exercise of stock options (in Shares) | 94,319 | |||||
Other comprehensive income (loss) (note 5) | 1,180 | 1,180 | ||||
Balance at Mar. 31, 2023 | 686,944 | $ 1,073,150 | 140,088 | (524,474) | (1,820) | |
Balance (in Shares) at Mar. 31, 2023 | 63,107,020 | |||||
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 | |||||
Net loss for the period | $ (89,188) | |||||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 8a and note 8c) (in shares) | 850,000 | |||||
Issued pursuant to exercise of stock options (in Shares) | 391,746 | |||||
Balance at Jun. 30, 2023 | $ 646,457 | $ 1,083,008 | 138,683 | (571,935) | (3,299) | |
Balance (in Shares) at Jun. 30, 2023 | 63,718,350 | |||||
Balance at Mar. 31, 2023 | 686,944 | $ 1,073,150 | 140,088 | (524,474) | (1,820) | |
Balance (in Shares) at Mar. 31, 2023 | 63,107,020 | |||||
Net loss for the period | (47,461) | (47,461) | ||||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 8a and note 8c) (in shares) | 425,000 | |||||
Conversion of pre-funded warrants to common shares (note 8c) | $ 7,379 | (7,379) | ||||
Conversion of pre-funded warrants to common shares (note 8c) (in shares) | 425,000 | |||||
Stock-based compensation expense | $ 8,453 | 8,453 | ||||
Issued pursuant to exercise of stock options | $ 2,479 | (2,479) | ||||
Issued pursuant to exercise of stock options (in Shares) | 278,069 | 186,330 | ||||
Other comprehensive income (loss) (note 5) | $ (1,479) | (1,479) | ||||
Balance at Jun. 30, 2023 | $ 646,457 | $ 1,083,008 | $ 138,683 | $ (571,935) | $ (3,299) | |
Balance (in Shares) at Jun. 30, 2023 | 63,718,350 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities: | ||
Net loss | $ (89,188) | $ (50,828) |
Items not involving cash: | ||
Depreciation | 956 | 751 |
Deferred income tax expense | 64 | 154 |
Stock-based compensation | 14,447 | 8,822 |
Unrealized foreign exchange (gain) loss | (452) | 492 |
Unrealized fair value (gain) loss on trading securities | (2,914) | 4,650 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 269 | 235 |
Prepaid expenses and other current assets | 4,199 | 439 |
Accounts payable and accrued expenses | 4,987 | (11) |
Net cash used in operating activities | (67,632) | (35,296) |
Investing activities: | ||
Purchases of property, plant and equipment | (4,339) | (756) |
Purchases of marketable securities | (270,554) | (141,638) |
Proceeds from marketable securities | 349,417 | 94,823 |
Net cash provided by (used in) investing activities | 74,524 | (47,571) |
Financing activities: | ||
Issuance of common shares and pre-funded warrants, net of issuance costs (note 8a and note 8c) | 277,766 | |
Net cash provided by financing activities | 277,766 | |
Effect of exchange rate changes on cash and cash equivalents | 418 | (600) |
Increase in cash and cash equivalents | 7,310 | 194,299 |
Cash and cash equivalents, beginning of period | 57,242 | 175,688 |
Cash and cash equivalents, end of period | 64,552 | 369,987 |
Supplemental disclosures: | ||
Interest received | 6,366 | 3,509 |
Cash paid for operating lease | 709 | 410 |
Supplemental disclosures of non-cash transactions: | ||
Fair value of stock options exercised on a cashless basis | 3,114 | $ 2,409 |
Fair value of pre-funded warrants exercised | 14,758 | |
Increase in operating lease liability and accounts receivable related to lease incentives claimed in the period | $ 1,380 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ (47,461) | $ (41,727) | $ (31,158) | $ (19,670) | $ (89,188) | $ (50,828) |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of the Business
Nature of the Business | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 , the Company had an accumulated deficit of $ 571,935 and a net loss of $ 89,188 for the six months ended June 30, 2023. 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 | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 2. Basis of presentation: These unaudited interim consolidated financial statements are presented in U.S. dollars and include the accounts of the Company and its wholly-owned subsidiary, Xenon Pharmaceuticals USA Inc., a Delaware corporation. All intercompany transactions and balances have been eliminated on consolidation. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these consolidated financial statements do not include all of the information and footnotes required for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2022 included in the Company’s 2022 Annual Report on Form 10-K filed with the SEC and with the securities commissions in British Columbia, Alberta and Ontario on March 1, 2023. These unaudited interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three and six month periods ended June 30, 2023 and 2022 are not necessarily indicative of results that can be expected for a full year. These unaudited interim consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company included in the Company’s 2022 Annual Report on Form 10-K for the year ended December 31, 2022 . |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | 3. 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 for the six months ended June 30, 2022. 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 8b). 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 three and six months ended June 30, 2023 and 2022, 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 | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 4. Fair value of financial instrument s: The fair value hierarchy consists of the following three levels: • 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. The Company’s cash and cash equivalents and marketable securities are measured at fair value on a recurring basis. The level of the fair value hierarchy utilized to determine such fair values consisted of the following: June 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents Cash and money market fund $ 64,552 $ — $ — $ 64,552 $ 57,242 $ — $ — $ 57,242 Marketable securities Guaranteed investment certificates 15,648 — — 15,648 14,953 — — 14,953 U.S. treasuries 299,069 — — 299,069 322,851 — — 322,851 U.S. government securities — 102,357 — 102,357 — 32,479 — 32,479 Commercial paper — 90,948 — 90,948 — 150,560 — 150,560 Corporate debt securities — 79,618 — 79,618 — 142,684 — 142,684 Total $ 379,269 $ 272,923 $ — $ 652,192 $ 395,046 $ 325,723 $ — $ 720,769 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 June 30, 2023 and December 31, 2022, the Company does not hold any securities classified as Level 3, which are securities valued using unobservable inputs. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 5. Marketable securities As of June 30, 2023, the Company had $ 93,768 of trading securities and $ 493,872 of available-for-sale securities (December 31, 2022 – $ 276,642 and $ 386,885 , respectively). Amortized cost, unrealized losses recognized in accumulated other comprehensive loss and fair value of available-for-sale securities consisted of the following: June 30, 2023 December 31, 2022 Amortized Unrealized Fair Amortized Unrealized Fair Contractual maturity of 0 to 1 years: Guaranteed investment certificates $ 15,648 $ — $ 15,648 $ 14,953 $ — $ 14,953 U.S. treasuries 202,358 ( 1,300 ) 201,058 78,880 ( 837 ) 78,043 U.S. government securities 50,207 ( 144 ) 50,063 5,793 ( 20 ) 5,773 Commercial paper 90,948 — 90,948 150,560 — 150,560 Corporate debt securities 23,607 ( 44 ) 23,563 8,942 ( 68 ) 8,874 Contractual maturity of 1 to 3 years: U.S. treasuries 31,151 ( 220 ) 30,931 60,354 ( 958 ) 59,396 U.S. government securities 52,800 ( 506 ) 52,294 26,741 ( 35 ) 26,706 Corporate debt securities 29,462 ( 95 ) 29,367 42,672 ( 92 ) 42,580 Total $ 496,181 $ ( 2,309 ) $ 493,872 $ 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. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | 6. Leases: The Company has an operating lease for research laboratories and office space in Burnaby, British Columbia which expires on June 30, 2032 . In July 2022, the Company entered into an additional operating lease agreement for office space in Needham, Massachusetts ("Needham Lease"), which commenced on October 1, 2022. The Needham 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 three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Lease Cost Operating lease expense $ 411 $ 238 $ 823 $ 476 Variable lease expense (1) 198 191 395 383 Lease Term and Discount Rate Weighted average remaining lease term (years) 7.77 10.00 7.77 10.00 Weighted average discount rate 3.90 % 3.42 % 3.90 % 3.42 % (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 June 30, 2023 were as follows: Year ending December 31: 2023 $ 822 2024 1,699 2025 1,768 2026 1,837 2027 1,824 2028 and thereafter 5,410 Total future minimum lease payments $ 13,360 Less: imputed interest ( 1,854 ) Present value of lease liabilities $ 11,506 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 7. Accounts payable and accrued expenses: Accounts payable and accrued expenses consisted of the following: June 30, December 31, 2023 2022 Trade payables $ 12,026 $ 8,491 Employee compensation, benefits, and related accruals 4,925 5,823 Consulting and contracted research 9,000 7,148 Professional fees 894 411 Other 91 341 Total $ 26,936 $ 22,214 |
Share Capital
Share Capital | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Share Capital | 8. Share capital: (a) Financing: In August 2020, the Company entered into an “at-the-market” equity offering sales agreement, amended as of March 2022, with Jefferies LLC ("Jefferies") and Stifel, Nicolaus & Company, Incorporated ("Stifel") and a new prospectus supplement was filed in March 2022 (“the March 2022 ATM") under which the Company may sell common shares having gross proceeds of up to $ 250,000 , from time to time. As of June 30, 2023, no common shares have been sold under the March 2022 ATM. In January 2022, in connection with the License and Collaboration Agreement with Neurocrine Biosciences Inc. (“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 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 SPA contains certain other customary terms and conditions, including mutual representations, warranties and covenants. For additional information regarding the Neurocrine Collaboration Agreement, refer to note 9. In June 2022, the Company entered into an underwriting agreement with Jefferies, J.P. Morgan Securities LLC, Stifel and SVB Securities LLC, 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 8c), 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) 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. (c) Pre-funded warrants: The following table summarizes the pre-funded warrants activity for the three and six months ended June 30, 2023 and 2022: Date of issuance March 2021 October 2021 June 2022 Total Outstanding, December 31, 2021 1,081,081 1,694,915 — 2,775,996 Exercised — — — — Outstanding, March 31, 2022 1,081,081 1,694,915 — 2,775,996 Issued — — 327,868 327,868 Exercised — — — — Outstanding, June 30, 2022 1,081,081 1,694,915 327,868 3,103,864 Outstanding, December 31, 2022 1,081,081 1,694,915 327,868 3,103,864 Exercised ( 425,003 ) — — ( 425,003 ) Outstanding, March 31, 2023 656,078 1,694,915 327,868 2,678,861 Exercised ( 425,003 ) — — ( 425,003 ) Outstanding, June 30, 2023 231,075 1,694,915 327,868 2,253,858 In connection with underwritten public offerings completed in March 2021, October 2021 and June 2022, the Company issued pre-funded warrants to purchase the equivalent number of common shares at $ 18.4999 , $ 29.4999 and $ 30.4999 , per pre-funded warrant, respectively, with each pre-funded warrant having an exercise price of $ 0.0001 . 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, net proceeds from issuances of the pre-funded warrants 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 holder is recorded in common shares. During the three and six months ended June 30, 2023, the Company issued 425,000 and 850,000 common shares, respectively, upon the exercise of pre-funded warrants pursuant to a net exercise mechanism under the warrants. Pre-funded warrants to purchase 2,253,858 (June 30, 2022 – 3,103,864 ) common shares are not included in the number of issued and outstanding common shares as of June 30, 2023. (d) Stock-based compensation: The following table presents stock option activity for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Outstanding, beginning of period 8,797,253 7,075,073 7,117,782 5,638,232 Granted 227,425 318,000 2,093,973 1,977,845 Exercised (1) ( 278,069 ) ( 130,031 ) ( 391,746 ) ( 349,138 ) Forfeited, cancelled or expired ( 64,801 ) ( 28,582 ) ( 138,201 ) ( 32,479 ) Outstanding, end of period 8,681,808 7,234,460 8,681,808 7,234,460 Exercisable, end of period 4,316,058 3,464,081 4,316,058 3,464,081 (1) During the six months ended June 30, 2023, the Company issued 280,649 ( 2022 – 234,783 ) common shares for the cashless exercise of 391,746 ( 2022 – 349,138 ) stock options. The fair value of each stock option granted is estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Average risk-free interest rate 3.69 % 3.17 % 3.85 % 2.14 % Expected volatility 69 % 70 % 69 % 70 % Average expected term (in years) 6.14 5.87 6.13 6.21 Expected dividend yield 0 % 0 % 0 % 0 % Weighted average fair value of stock options granted $ 25.42 $ 19.60 $ 22.54 $ 19.29 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 9. Revenue: Revenue was as follows for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Neurocrine Biosciences: Recognition of the transaction price $ — $ — $ — $ 372 Research and development services — 536 — 1,806 Milestone payments — — — 7,124 Total revenue $ — $ 536 $ — $ 9,302 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”). The Company and Neurocrine Biosciences are collaborating on the conduct of two collaboration programs: (a) a joint research collaboration to discover, identify and preclinically develop Research Compounds (the “Research Program”), which 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”). At execution of the agreement, Neurocrine Biosciences paid the Company an upfront cash payment of $ 30,000 and a $ 20,000 equity investment in the Company. The equity investment was measured at fair value of $ 16,667 on the date of issuance and the resulting premium of $ 3,333 , together with the upfront cash payment totaling $ 33,333 , was the transaction price of the arrangement for allocation to certain performance obligations under the agreement. None of the at-risk substantive performance milestones, including development, regulatory and sales-based milestones, were included in the transaction price at the inception of the agreement, as all milestone amounts are outside the control of the Company and contingent upon Neurocrine Biosciences’s efforts and success in future clinical trials. The overall transaction price of the arrangement was measured and allocated to certain performance obligations and revenue was recognized as those performance obligations were performed; all such performance obligations were completed as of March 2022. The Neurocrine Collaboration Agreement also includes research and development services for the Research Program and Initial Development Program to be performed on behalf of Neurocrine Biosciences. These services 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 an estimated fair value. During the three and six months ended June 30, 2022 , the Company recognized $ 536 and $ 1,806 of revenue, respectively, for research and development services provided. In January 2022, based on the receipt of the U.S. Food and Drug Administration’s 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 8a) . 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. 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. These additional amounts will be recognized as determinable. 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 June 30, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. 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 June 30, 2023, the Company has paid $ 2,000 based on progress against these 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. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 such fair values consisted of the following: June 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents Cash and money market fund $ 64,552 $ — $ — $ 64,552 $ 57,242 $ — $ — $ 57,242 Marketable securities Guaranteed investment certificates 15,648 — — 15,648 14,953 — — 14,953 U.S. treasuries 299,069 — — 299,069 322,851 — — 322,851 U.S. government securities — 102,357 — 102,357 — 32,479 — 32,479 Commercial paper — 90,948 — 90,948 — 150,560 — 150,560 Corporate debt securities — 79,618 — 79,618 — 142,684 — 142,684 Total $ 379,269 $ 272,923 $ — $ 652,192 $ 395,046 $ 325,723 $ — $ 720,769 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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: June 30, 2023 December 31, 2022 Amortized Unrealized Fair Amortized Unrealized Fair Contractual maturity of 0 to 1 years: Guaranteed investment certificates $ 15,648 $ — $ 15,648 $ 14,953 $ — $ 14,953 U.S. treasuries 202,358 ( 1,300 ) 201,058 78,880 ( 837 ) 78,043 U.S. government securities 50,207 ( 144 ) 50,063 5,793 ( 20 ) 5,773 Commercial paper 90,948 — 90,948 150,560 — 150,560 Corporate debt securities 23,607 ( 44 ) 23,563 8,942 ( 68 ) 8,874 Contractual maturity of 1 to 3 years: U.S. treasuries 31,151 ( 220 ) 30,931 60,354 ( 958 ) 59,396 U.S. government securities 52,800 ( 506 ) 52,294 26,741 ( 35 ) 26,706 Corporate debt securities 29,462 ( 95 ) 29,367 42,672 ( 92 ) 42,580 Total $ 496,181 $ ( 2,309 ) $ 493,872 $ 388,895 $ ( 2,010 ) $ 386,885 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Cost Components of Operating Lease | The cost components of the operating leases were as follows for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Lease Cost Operating lease expense $ 411 $ 238 $ 823 $ 476 Variable lease expense (1) 198 191 395 383 Lease Term and Discount Rate Weighted average remaining lease term (years) 7.77 10.00 7.77 10.00 Weighted average discount rate 3.90 % 3.42 % 3.90 % 3.42 % (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 June 30, 2023 were as follows: Year ending December 31: 2023 $ 822 2024 1,699 2025 1,768 2026 1,837 2027 1,824 2028 and thereafter 5,410 Total future minimum lease payments $ 13,360 Less: imputed interest ( 1,854 ) Present value of lease liabilities $ 11,506 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: June 30, December 31, 2023 2022 Trade payables $ 12,026 $ 8,491 Employee compensation, benefits, and related accruals 4,925 5,823 Consulting and contracted research 9,000 7,148 Professional fees 894 411 Other 91 341 Total $ 26,936 $ 22,214 |
Share Capital (Tables)
Share Capital (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule Of Pre-Funded Warrants Activity | The following table summarizes the pre-funded warrants activity for the three and six months ended June 30, 2023 and 2022: Date of issuance March 2021 October 2021 June 2022 Total Outstanding, December 31, 2021 1,081,081 1,694,915 — 2,775,996 Exercised — — — — Outstanding, March 31, 2022 1,081,081 1,694,915 — 2,775,996 Issued — — 327,868 327,868 Exercised — — — — Outstanding, June 30, 2022 1,081,081 1,694,915 327,868 3,103,864 Outstanding, December 31, 2022 1,081,081 1,694,915 327,868 3,103,864 Exercised ( 425,003 ) — — ( 425,003 ) Outstanding, March 31, 2023 656,078 1,694,915 327,868 2,678,861 Exercised ( 425,003 ) — — ( 425,003 ) Outstanding, June 30, 2023 231,075 1,694,915 327,868 2,253,858 |
Stock Option Activity | The following table presents stock option activity for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Outstanding, beginning of period 8,797,253 7,075,073 7,117,782 5,638,232 Granted 227,425 318,000 2,093,973 1,977,845 Exercised (1) ( 278,069 ) ( 130,031 ) ( 391,746 ) ( 349,138 ) Forfeited, cancelled or expired ( 64,801 ) ( 28,582 ) ( 138,201 ) ( 32,479 ) Outstanding, end of period 8,681,808 7,234,460 8,681,808 7,234,460 Exercisable, end of period 4,316,058 3,464,081 4,316,058 3,464,081 (1) During the six months ended June 30, 2023, the Company issued 280,649 ( 2022 – 234,783 ) common shares for the cashless exercise of 391,746 ( 2022 – 349,138 ) stock options. |
Fair Value Assumptions for Stock Options | The fair value of each stock option granted is estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Average risk-free interest rate 3.69 % 3.17 % 3.85 % 2.14 % Expected volatility 69 % 70 % 69 % 70 % Average expected term (in years) 6.14 5.87 6.13 6.21 Expected dividend yield 0 % 0 % 0 % 0 % Weighted average fair value of stock options granted $ 25.42 $ 19.60 $ 22.54 $ 19.29 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule Of Collaboration Revenue | Revenue was as follows for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Neurocrine Biosciences: Recognition of the transaction price $ — $ — $ — $ 372 Research and development services — 536 — 1,806 Milestone payments — — — 7,124 Total revenue $ — $ 536 $ — $ 9,302 |
Nature of the Business (Details
Nature of the Business (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||
Accumulated deficit | $ 571,935 | $ 571,935 | $ 482,747 | ||||
Net loss | $ 47,461 | $ 41,727 | $ 31,158 | $ 19,670 | $ 89,188 | $ 50,828 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Details) | 1 Months Ended |
Mar. 31, 2022 shares | |
Series 1 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 | Jun. 30, 2023 | Dec. 31, 2022 |
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | $ 652,192 | $ 720,769 |
Level 1 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 379,269 | 395,046 |
Level 2 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 272,923 | 325,723 |
Cash and Money Market Fund [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 64,552 | 57,242 |
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 | 64,552 | 57,242 |
Commercial Paper [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 90,948 | 150,560 |
Commercial Paper [Member] | Level 2 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 90,948 | 150,560 |
Guaranteed Investment Certificates [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 15,648 | 14,953 |
Guaranteed Investment Certificates [Member] | Level 1 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 15,648 | 14,953 |
U.S. Treasuries [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 299,069 | 322,851 |
U.S. Treasuries [Member] | Level 1 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 299,069 | 322,851 |
U.S. Government Securities [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 102,357 | 32,479 |
U.S. Government Securities [Member] | Level 2 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 102,357 | 32,479 |
Corporate Debt Securities [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 79,618 | 142,684 |
Corporate Debt Securities [Member] | Level 2 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | $ 79,618 | $ 142,684 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Trading marketable securities | $ 93,768 | $ 276,642 |
Trading securities available-for-sale | $ 493,872 | $ 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) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 496,181 | $ 388,895 |
Unrealized Gain/(Loss) | (2,309) | (2,010) |
Fair Value | 493,872 | 386,885 |
Guaranteed Investment Certificates [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Contractual maturity of 0 to 1 years, Amortized Cost | 15,648 | 14,953 |
Contractual maturity of 0 to 1 years, Fair Value | 15,648 | 14,953 |
U.S. Treasuries [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Contractual maturity of 0 to 1 years, Amortized Cost | 202,358 | 78,880 |
Contractual maturity of 0 to 1 years, Unrealized Gain/(Loss) | (1,300) | (837) |
Contractual maturity of 0 to 1 years, Fair Value | 201,058 | 78,043 |
Contractual maturity of 1 to 3 years, Amortized Cost | 31,151 | 60,354 |
Contractual maturity of 1 to 3 years, Unrealized Gain/(Loss) | (220) | (958) |
Contractual maturity of 1 to 3 years, Fair Value | 30,931 | 59,396 |
U.S. Government Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Contractual maturity of 0 to 1 years, Amortized Cost | 50,207 | 5,793 |
Contractual maturity of 0 to 1 years, Unrealized Gain/(Loss) | (144) | (20) |
Contractual maturity of 0 to 1 years, Fair Value | 50,063 | 5,773 |
Contractual maturity of 1 to 3 years, Amortized Cost | 52,800 | 26,741 |
Contractual maturity of 1 to 3 years, Unrealized Gain/(Loss) | (506) | (35) |
Contractual maturity of 1 to 3 years, Fair Value | 52,294 | 26,706 |
Commercial Paper [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Contractual maturity of 0 to 1 years, Amortized Cost | 90,948 | 150,560 |
Contractual maturity of 0 to 1 years, Fair Value | 90,948 | 150,560 |
Corporate Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Contractual maturity of 0 to 1 years, Amortized Cost | 23,607 | 8,942 |
Contractual maturity of 0 to 1 years, Unrealized Gain/(Loss) | (44) | (68) |
Contractual maturity of 0 to 1 years, Fair Value | 23,563 | 8,874 |
Contractual maturity of 1 to 3 years, Amortized Cost | 29,462 | 42,672 |
Contractual maturity of 1 to 3 years, Unrealized Gain/(Loss) | (95) | (92) |
Contractual maturity of 1 to 3 years, Fair Value | $ 29,367 | $ 42,580 |
Leases (Details)
Leases (Details) - Lease | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2022 | |
Burnaby, British Columbia [Member] | ||
Lessee Lease Description [Line Items] | ||
Number of operating leases | 1 | |
Operating lease expiration date | Jun. 30, 2032 | |
Operating lease, description | The Company has an operating lease for research laboratories and office space in Burnaby, British Columbia which expires on June 30, 2032. | |
Needham Massachusetts [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease term | 62 months | |
Operating lease, option to terminate | option to terminate one year prior to the expiry date | |
Operating lease, description | In July 2022, the Company entered into an additional operating lease agreement for office space in Needham, Massachusetts ("Needham Lease"), which commenced on October 1, 2022. The Needham 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. |
Leases - Schedule of Cost Compo
Leases - Schedule of Cost Components of Operating Lease (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease expense | $ 411 | $ 238 | $ 823 | $ 476 |
Variable lease expense | $ 198 | $ 191 | $ 395 | $ 383 |
Weighted average remaining lease term (years) | 7 years 9 months 7 days | 10 years | 7 years 9 months 7 days | 10 years |
Weighted average discount rate | 3.90% | 3.42% | 3.90% | 3.42% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2023 | $ 822 |
2024 | 1,699 |
2025 | 1,768 |
2026 | 1,837 |
2027 | 1,824 |
2028 and thereafter | 5,410 |
Total future minimum lease payments | 13,360 |
Less: imputed interest | (1,854) |
Present value of lease liabilities | $ 11,506 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 12,026 | $ 8,491 |
Employee compensation, benefits, and related accruals | 4,925 | 5,823 |
Consulting and contracted research | 9,000 | 7,148 |
Professional fees | 894 | 411 |
Other | 91 | 341 |
Total | $ 26,936 | $ 22,214 |
Share Capital (Details)
Share Capital (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Jan. 31, 2022 | Mar. 31, 2018 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Dec. 31, 2018 | |
Share Capital [Line Items] | |||||||||
Warrants outstanding to purchase common stock | 3,103,864 | 2,253,858 | 3,103,864 | 2,253,858 | |||||
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. | ||||||||
Common Shares [Member] | |||||||||
Share Capital [Line Items] | |||||||||
Shares issued | 425,000 | 9,098,362 | 258,986 | 850,000 | |||||
Conversion of shares | 1,016,000 | 1,016,000 | 1,852,000 | ||||||
March 2021 | |||||||||
Share Capital [Line Items] | |||||||||
Warrants issued price per pre funded warrant | $ 18.4999 | $ 18.4999 | |||||||
Warrants exercise price per common share | 0.0001 | 0.0001 | |||||||
October 2021 | |||||||||
Share Capital [Line Items] | |||||||||
Warrants issued price per pre funded warrant | 29.4999 | 29.4999 | |||||||
Warrants exercise price per common share | 0.0001 | 0.0001 | |||||||
June 2022 | |||||||||
Share Capital [Line Items] | |||||||||
Warrants issued price per pre funded warrant | 30.4999 | 30.4999 | |||||||
Warrants exercise price per common share | $ 0.0001 | $ 0.0001 | |||||||
Jefferies L L C And Stifel Nicolaus Company Incorporated | At Market Equity Offering | Maximum [Member] | |||||||||
Share Capital [Line Items] | |||||||||
Gross proceeds from issuable of common stock | $ 250,000 | ||||||||
Jefferies L L C And Stifel Nicolaus Company Incorporated | At Market Equity Offering | Common Shares [Member] | |||||||||
Share Capital [Line Items] | |||||||||
Shares issued | 0 | ||||||||
Jefferies, Stifel, J.P. Morgan Securities LLC and SVB Securities LLC [Member] | Underwritten Public Offering [Member] | |||||||||
Share Capital [Line Items] | |||||||||
Shares issued | 9,098,362 | ||||||||
Shares price | $ 30.5 | $ 30.5 | |||||||
Warrants outstanding to purchase common stock | 327,868 | 327,868 | |||||||
Warrants issued price per pre funded warrant | $ 30.4999 | $ 30.4999 | |||||||
Sale proceeds of common shares | $ 269,890 | ||||||||
Warrants exercise price per common share | $ 0.0001 | $ 0.0001 | |||||||
Jefferies, Stifel, J.P. Morgan Securities LLC and SVB Securities LLC [Member] | Over-Allotment Option [Member] | |||||||||
Share Capital [Line Items] | |||||||||
Shares issued | 1,229,508 | ||||||||
Neurocrine Biosciences [Member] | Common Shares [Member] | |||||||||
Share Capital [Line Items] | |||||||||
Shares issued | 258,986 | ||||||||
Sale proceeds of common shares | $ 8,250 | ||||||||
Aggregate purchase price per share | $ 31.855 | ||||||||
Premium | $ 374 | ||||||||
Series 1 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] | Series 1 Preferred Shares | |||||||||
Share Capital [Line Items] | |||||||||
Shares issued | 2,868,000 | ||||||||
Preferred shares convertible into common shares | one-for-one |
Share Capital - Schedule of Pre
Share Capital - Schedule of Pre-Funded Warrants (Details) - shares | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Share Capital [Line Items] | ||||
Outstanding, beginning | 2,678,861 | 3,103,864 | 2,775,996 | 2,775,996 |
Exercised | (425,003) | (425,003) | 0 | |
Issued | 327,868 | |||
Outstanding, ending | 2,253,858 | 2,678,861 | 3,103,864 | 2,775,996 |
March 2021 | ||||
Share Capital [Line Items] | ||||
Outstanding, beginning | 656,078 | 1,081,081 | 1,081,081 | 1,081,081 |
Exercised | (425,003) | (425,003) | ||
Outstanding, ending | 231,075 | 656,078 | 1,081,081 | 1,081,081 |
October 2021 | ||||
Share Capital [Line Items] | ||||
Outstanding, beginning | 1,694,915 | 1,694,915 | 1,694,915 | 1,694,915 |
Outstanding, ending | 1,694,915 | 1,694,915 | 1,694,915 | 1,694,915 |
June 2022 | ||||
Share Capital [Line Items] | ||||
Outstanding, beginning | 327,868 | 327,868 | ||
Issued | 327,868 | |||
Outstanding, ending | 327,868 | 327,868 | 327,868 |
Share Capital - Stock Option Ac
Share Capital - Stock Option Activity (Details) - shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||||
Number of Options Outstanding, Beginning balance | 8,797,253 | 7,117,782 | 7,075,073 | 5,638,232 | 7,117,782 | 5,638,232 |
Number of Options, Granted | 227,425 | 318,000 | 2,093,973 | 1,977,845 | ||
Number of Options, Exercised | (278,069) | (130,031) | (391,746) | (349,138) | ||
Number of Options, Forfeited, cancelled or expired | (64,801) | (28,582) | (138,201) | (32,479) | ||
Number of Options Outstanding, Ending balance | 8,681,808 | 8,797,253 | 7,234,460 | 7,075,073 | 8,681,808 | 7,234,460 |
Number of Options Exercisable, End of period | 4,316,058 | 3,464,081 | 4,316,058 | 3,464,081 |
Share Capital - Stock Option _2
Share Capital - Stock Option Activity (Parenthetical) (Details) - shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Common stock issued for cashless exercise | 280,649 | 234,783 |
Cashless exercise of stock options | 391,746 | 349,138 |
Share Capital - Fair Value Assu
Share Capital - Fair Value Assumptions for Stock Options (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value Assumptions For Stock Options [Abstract] | ||||
Average risk-free interest rate | 3.69% | 3.17% | 3.85% | 2.14% |
Expected volatility | 69% | 70% | 69% | 70% |
Average expected term (in years) | 6 years 1 month 20 days | 5 years 10 months 13 days | 6 years 1 month 17 days | 6 years 2 months 15 days |
Expected dividend yield | 0% | 0% | 0% | 0% |
Weighted average fair value of stock options granted | $ 25.42 | $ 19.6 | $ 22.54 | $ 19.29 |
Revenue - Schedule of Collabora
Revenue - Schedule of Collaboration Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 536 | $ 9,302 |
Collaboration Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 536 | 9,302 |
Neurocrine Biosciences [Member] | Collaboration Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Recognition of the transaction price | 372 | |
Research and development services | $ 536 | 1,806 |
Milestone payments | $ 7,124 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jan. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||||
Revenue | $ 536,000 | $ 9,302,000 | |||
License and Service [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenue | 536,000 | 9,302,000 | |||
Neurocrine Biosciences [Member] | License and Service [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Research and development services | $ 536,000 | $ 1,806,000 | |||
License and Collaboration Agreement [Member] | Neurocrine Biosciences [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Upfront payment received in cash | $ 30,000,000 | ||||
Upfront payment received in equity investment | 20,000,000 | ||||
Equity investment measured at fair value | 16,667,000 | ||||
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 | ||||
Milestone Payment Received in Cash | 6,750,000 | ||||
Milestone Payment Received in Equity Investment | 8,250,000 | ||||
Equity investment measure at fair value | 7,876,000 | ||||
Premium | 374,000 | ||||
Performance obligation related to milestone | 0 | ||||
Revenue | $ 6,750,000 | ||||
Potential milestone payments receivable | $ 1,667,500,000 | ||||
Percentage of option to co-fund development costs upon achievement of certain milestones | 50% | ||||
License and Collaboration Agreement [Member] | Neurocrine Biosciences [Member] | Regulatory Milestone [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Potential milestone payments receivable | $ 1,067,500,000 | ||||
License and Collaboration Agreement [Member] | Neurocrine Biosciences [Member] | Sales Based Milestone [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Potential milestone payments receivable | $ 600,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Asset Purchase Agreement [Member] - 1st Order Pharmaceuticals, Inc. [Member] | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Commitments And Contingencies [Line Items] | |
Milestone payment paid | $ 2,000,000 |
Royalty obligations | 0 |
Regulatory Milestone [Member] | Maximum [Member] | |
Commitments And Contingencies [Line Items] | |
Future potential payments | $ 6,000,000 |