Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 06, 2024 | |
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 | 75,468,883 | |
Entity Central Index Key | 0001582313 | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
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 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||||
Cash and cash equivalents | $ 58,896 | $ 148,643 | ||
Marketable securities (note 6) | 640,706 | 489,439 | ||
Accounts receivable | 833 | 874 | ||
Prepaid expenses and other current assets | 6,769 | 6,006 | ||
Total current assets | 707,204 | 644,962 | ||
Marketable securities, long-term (note 6) | 185,836 | 292,792 | ||
Operating lease right-of-use asset, net (note 7) | 8,884 | 9,193 | ||
Property, plant and equipment, net | 9,393 | 9,653 | ||
Deferred tax assets | 400 | 802 | ||
Prepaid expenses, long-term | 7,306 | 7,396 | ||
Total assets | 919,023 | 964,798 | ||
Current liabilities: | ||||
Accounts payable and accrued expenses (note 8) | 20,900 | 25,974 | ||
Operating lease liability (note 7) | 1,323 | 1,299 | ||
Total current liabilities | 22,223 | 27,273 | ||
Operating lease liability, long-term (note 7) | 9,102 | 9,604 | ||
Total liabilities | 31,325 | 36,877 | ||
Shareholders’ equity: | ||||
Common shares, without par value; unlimited shares authorized; issued and outstanding: 75,549,681 (December 31, 2023 - 75,370,977) (note 9) | 1,438,961 | 1,436,374 | ||
Additional paid-in capital | 163,577 | 156,764 | ||
Accumulated deficit | (713,071) | (665,140) | ||
Accumulated other comprehensive loss | (1,769) | (77) | ||
Total shareholders' equity | 887,698 | 927,921 | $ 721,497 | |
Total liabilities and shareholders’ equity | $ 919,023 | $ 964,798 | ||
Commitments and contingencies (note 10) |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Statement of Financial Position [Abstract] | ||
Common shares, without par value | ||
Common shares, shares authorized | Unlimited | Unlimited |
Common shares, Issued | 75,459,681 | 75,370,977 |
Common shares, Outstanding | 75,459,681 | 75,370,977 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating expenses: | ||
Research and development | $ 44,250 | $ 39,516 |
General and administrative | 14,791 | 9,535 |
Total operating expenses | 59,041 | 49,051 |
Loss from operations | (59,041) | (49,051) |
Other income: | ||
Interest income | 11,355 | 5,423 |
Unrealized fair value gain on trading securities | 1,878 | |
Foreign exchange gain | 167 | 313 |
Other income | 11,522 | 7,614 |
Loss before income taxes | (47,519) | (41,437) |
Income tax expense | (412) | (290) |
Net loss | (47,931) | (41,727) |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on available-for-sale securities (note 6) | (1,692) | 1,180 |
Comprehensive loss | $ (49,623) | $ (40,547) |
Net loss per common share (note 4): | ||
Basic | $ (0.62) | $ (0.63) |
Diluted | $ (0.62) | $ (0.63) |
Weighted-average common shares outstanding (note 4): | ||
Basic | 77,594,599 | 65,724,681 |
Diluted | 77,594,599 | 65,724,681 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
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 9b) | $ 7,379 | (7,379) | |||
Conversion of pre-funded warrants to common shares (note 9b) (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) | 113,677 | 94,319 | |||
Other comprehensive income (loss) (note 6) | $ 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, 2023 | 927,921 | $ 1,436,374 | 156,764 | (665,140) | (77) |
Balance (in Shares) at Dec. 31, 2023 | 75,370,977 | ||||
Net loss for the period | (47,931) | (47,931) | |||
Stock-based compensation expense | $ 9,400 | 9,400 | |||
Issued pursuant to exercise of stock options | $ 2,587 | (2,587) | |||
Issued pursuant to exercise of stock options (in Shares) | 180,424 | 88,704 | |||
Other comprehensive income (loss) (note 6) | $ (1,692) | (1,692) | |||
Balance at Mar. 31, 2024 | $ 887,698 | $ 1,438,961 | $ 163,577 | $ (713,071) | $ (1,769) |
Balance (in Shares) at Mar. 31, 2024 | 75,459,681 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities: | ||
Net loss | $ (47,931) | $ (41,727) |
Items not involving cash: | ||
Depreciation | 599 | 354 |
Deferred income tax expense | 403 | 288 |
Stock-based compensation | 9,400 | 5,994 |
Unrealized foreign exchange (gain) loss | 4 | (5) |
Unrealized fair value gain on trading securities | (1,878) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 38 | 226 |
Prepaid expenses and other current assets | (673) | 2,931 |
Accounts payable and accrued expenses | (5,018) | (594) |
Net cash used in operating activities | (43,178) | (34,411) |
Investing activities: | ||
Purchases of property, plant and equipment | (188) | (2,206) |
Purchases of marketable securities | (176,848) | (108,282) |
Proceeds from marketable securities | 130,834 | 157,110 |
Net cash provided by (used in) investing activities | (46,202) | 46,622 |
Financing activities: | ||
Effect of exchange rate changes on cash and cash equivalents | (367) | 59 |
Increase (decrease) in cash and cash equivalents | (89,747) | 12,270 |
Cash and cash equivalents, beginning of period | 148,643 | 57,242 |
Cash and cash equivalents, end of period | 58,896 | 69,512 |
Supplemental disclosures: | ||
Cash paid for operating lease | 411 | 406 |
Supplemental disclosures of non-cash transactions: | ||
Fair value of stock options exercised on a cashless basis | $ 2,587 | 635 |
Fair value of pre-funded warrants exercised | 7,379 | |
Increase in operating lease liability and accounts receivable related to lease incentives claimed in the period | $ 1,482 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (47,931) | $ (41,727) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
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 | 3 Months Ended |
Mar. 31, 2024 | |
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 neuroscience-focused biopharmaceutical company committed to improving the lives of people living with neurological and psychiatric disorders. The Company has incurred significant operating losses since inception. As of March 31, 2024 , the Company had an accumulated deficit of $ 713,071 and a net loss of $ 47,931 for the three months ended March 31, 2024. 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 | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 included in the Company’s 2023 Annual Report on Form 10-K filed with the SEC and with the securities commissions in British Columbia, Alberta and Ontario on February 29, 2024. 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 months ended March 31, 2024 and 2023 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 2023 Annual Report on Form 10-K for the year ended December 31, 2023, with the exception of the policy described in note 3 below. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 3. Significant accounting policies: (a) Stock based compensation: The Company grants performance share unit awards (“PSUs”) to certain employees and officers. PSUs vest upon the achievement of certain predefined company-specific performance-based criteria. PSUs are measured at the closing market price of the Company’s common shares on the date of grant. Stock-based compensation expense for PSUs is amortized on a straight-line basis over the requisite service period of each separately vesting tranche of the award once it is probable that the performance condition will be achieved. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | 4. Net income (loss) per common share: 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, performance share units 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. For the three months ended March 31, 2024 and 2023, 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 | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 5. 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: March 31, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents Cash and money market fund $ 58,896 $ — $ — $ 58,896 $ 148,643 $ — $ — $ 148,643 Marketable securities Guaranteed investment certificates 15,068 — — 15,068 7,684 — — 7,684 U.S. treasuries 283,764 — — 283,764 252,982 — — 252,982 U.S. government securities — 63,036 — 63,036 — 97,912 — 97,912 Commercial paper — 183,130 — 183,130 — 119,108 — 119,108 Corporate debt securities — 281,544 — 281,544 — 304,545 — 304,545 Total $ 357,728 $ 527,710 $ — $ 885,438 $ 409,309 $ 521,565 $ — $ 930,874 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 March 31, 2024 and December 31, 2023, the Company does not hold any securities classified as Level 3. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 6. Marketable securities As of March 31, 2024, the Company had $ 826,542 of available-for-sale securities (December 31, 2023 – trading securities of $ 13,867 and available-for-sale-securities of $ 768,364 ). Amortized cost, unrealized gain (loss) recognized in accumulated other comprehensive income (loss) and fair value of available-for-sale securities consisted of the following: March 31, 2024 December 31, 2023 Amortized Unrealized Fair Amortized Unrealized Fair Contractual maturity of 0 to 1 years: Guaranteed investment certificates $ 15,151 $ ( 83 ) $ 15,068 $ 7,549 $ 135 $ 7,684 U.S. treasuries 235,677 ( 235 ) 235,442 192,193 ( 249 ) 191,944 U.S. government securities 63,258 ( 222 ) 63,036 98,092 ( 180 ) 97,912 Commercial paper 183,218 ( 88 ) 183,130 119,041 67 119,108 Corporate debt securities 143,924 106 144,030 58,824 100 58,924 Contractual maturity of 1 to 3 years: U.S. treasuries 48,507 ( 185 ) 48,322 53,294 243 53,537 Corporate debt securities 137,586 ( 72 ) 137,514 238,458 797 239,255 Total $ 827,321 $ ( 779 ) $ 826,542 $ 767,451 $ 913 $ 768,364 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 | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | 7. Leases: The Company has an operating lease for research laboratories and office space in Burnaby, British Columbia which expires on June 30, 2032 , and two renewal options for 5 -years each which were not considered in the determination of the right-of-use asset and lease liability. The Company has an additional operating lease for office space in Needham, Massachusetts ("Needham Lease"), which commenced in October 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 months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Lease Cost Operating lease expense $ 412 $ 412 Variable lease expense (1) 208 197 Lease Term and Discount Rate Weighted average remaining lease term (years) 7.09 7.98 Weighted average discount rate 3.87 % 3.92 % (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 March 31, 2024 were as follows: Year ending December 31: 2024 $ 1,269 2025 1,747 2026 1,815 2027 1,802 2028 1,102 2029 and thereafter 4,193 Total future minimum lease payments $ 11,928 Less: imputed interest ( 1,503 ) Present value of lease liabilities $ 10,425 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 8. Accounts payable and accrued expenses: Accounts payable and accrued expenses consisted of the following: March 31, December 31, 2024 2023 Trade payables $ 6,430 $ 8,598 Employee compensation, benefits, and related accruals 3,819 7,425 Consulting and contracted research 8,942 8,824 Professional fees 1,603 780 Other 106 347 Total $ 20,900 $ 25,974 |
Share Capital
Share Capital | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Share Capital | 9. 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 and Stifel, Nicolaus & Company, Incorporated 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 March 31, 2024, the Company has sold an aggregate of 855,685 common shares for proceeds of $ 29,508 , net of commissions and transaction expenses under the March 2022 ATM. (b) Pre-funded warrants: The following table summarizes the pre-funded warrants activity for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Outstanding, beginning of period 2,173,081 3,103,864 Exercised — ( 425,003 ) Outstanding, end of period 2,173,081 2,678,861 Each pre-funded warrant is exercisable for the purchase of a common share at the holder's discretion at an exercise price of $ 0.0001 , subject to certain post-exercise beneficial ownership limitations as provided under the terms of the pre-funded warrant. In January 2023, the Company issued 425,000 common shares upon the exercise of 425,003 pre-funded warrants pursuant to a net exercise mechanism under the warrants. Pre-funded warrants to purchase 2,173,081 (March 31, 2023 – 2,678,861 ) common shares are not included in the number of issued and outstanding common shares as of March 31, 2024. (c) Stock-based compensation: Stock Options The following table presents stock option activity for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 Weighted Average 2023 Weighted Average Outstanding, beginning of period 8,894,502 23.56 7,117,782 18.75 Granted 1,983,525 44.53 1,866,548 34.29 Exercised (1) ( 180,424 ) 23.42 ( 113,677 ) 6.49 Forfeited, cancelled or expired ( 18,911 ) 30.87 ( 73,400 ) 28.49 Outstanding, end of period 10,678,692 27.45 8,797,253 22.12 Exercisable, end of period 5,419,295 18.27 4,104,317 14.04 (1) During the three months ended March 31, 2024, the Company issued 88,704 ( 2023 – 94,319 ) common shares for the cashless exercise of 180,424 ( 2023 – 113,677 ) 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 March 31, 2024 2023 Average risk-free interest rate 4.05 % 3.87 % Expected volatility 67 % 69 % Average expected term (in years) 5.92 6.13 Expected dividend yield 0 % 0 % Weighted average fair value of stock options granted $ 27.89 $ 22.19 Performance Share Units In March 2024, 192,000 PSUs were granted to officers and certain employees. The vesting conditions, vesting period and expiry of the PSUs are determined by the board of directors, subject to the terms of the Amended and Restated 2014 Equity Incentive Plan. PSUs vest upon the achievement of certain predefined company-specific performance-based criteria on or before December 31, 2027, subject to continued employment to each performance objective achievement date. No PSUs vested during the three months ended March 31, 2024. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 azetukalner (XEN1101) 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 March 31, 2024, the Company has paid $ 2,000 based on progress against these milestones. Future potential payments to 1st Order 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. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Stock based compensation | (a) Stock based compensation: The Company grants performance share unit awards (“PSUs”) to certain employees and officers. PSUs vest upon the achievement of certain predefined company-specific performance-based criteria. PSUs are measured at the closing market price of the Company’s common shares on the date of grant. Stock-based compensation expense for PSUs is amortized on a straight-line basis over the requisite service period of each separately vesting tranche of the award once it is probable that the performance condition will be achieved. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: March 31, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents Cash and money market fund $ 58,896 $ — $ — $ 58,896 $ 148,643 $ — $ — $ 148,643 Marketable securities Guaranteed investment certificates 15,068 — — 15,068 7,684 — — 7,684 U.S. treasuries 283,764 — — 283,764 252,982 — — 252,982 U.S. government securities — 63,036 — 63,036 — 97,912 — 97,912 Commercial paper — 183,130 — 183,130 — 119,108 — 119,108 Corporate debt securities — 281,544 — 281,544 — 304,545 — 304,545 Total $ 357,728 $ 527,710 $ — $ 885,438 $ 409,309 $ 521,565 $ — $ 930,874 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost, Unrealized Gain (Loss) Recognized in AOCI and Fair Value of Available-for-Sale Securities | Amortized cost, unrealized gain (loss) recognized in accumulated other comprehensive income (loss) and fair value of available-for-sale securities consisted of the following: March 31, 2024 December 31, 2023 Amortized Unrealized Fair Amortized Unrealized Fair Contractual maturity of 0 to 1 years: Guaranteed investment certificates $ 15,151 $ ( 83 ) $ 15,068 $ 7,549 $ 135 $ 7,684 U.S. treasuries 235,677 ( 235 ) 235,442 192,193 ( 249 ) 191,944 U.S. government securities 63,258 ( 222 ) 63,036 98,092 ( 180 ) 97,912 Commercial paper 183,218 ( 88 ) 183,130 119,041 67 119,108 Corporate debt securities 143,924 106 144,030 58,824 100 58,924 Contractual maturity of 1 to 3 years: U.S. treasuries 48,507 ( 185 ) 48,322 53,294 243 53,537 Corporate debt securities 137,586 ( 72 ) 137,514 238,458 797 239,255 Total $ 827,321 $ ( 779 ) $ 826,542 $ 767,451 $ 913 $ 768,364 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Cost Components of Operating Lease | The cost components of the operating leases were as follows for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Lease Cost Operating lease expense $ 412 $ 412 Variable lease expense (1) 208 197 Lease Term and Discount Rate Weighted average remaining lease term (years) 7.09 7.98 Weighted average discount rate 3.87 % 3.92 % (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 March 31, 2024 were as follows: Year ending December 31: 2024 $ 1,269 2025 1,747 2026 1,815 2027 1,802 2028 1,102 2029 and thereafter 4,193 Total future minimum lease payments $ 11,928 Less: imputed interest ( 1,503 ) Present value of lease liabilities $ 10,425 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: March 31, December 31, 2024 2023 Trade payables $ 6,430 $ 8,598 Employee compensation, benefits, and related accruals 3,819 7,425 Consulting and contracted research 8,942 8,824 Professional fees 1,603 780 Other 106 347 Total $ 20,900 $ 25,974 |
Share Capital (Tables)
Share Capital (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule Of Pre-Funded Warrants Activity | The following table summarizes the pre-funded warrants activity for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Outstanding, beginning of period 2,173,081 3,103,864 Exercised — ( 425,003 ) Outstanding, end of period 2,173,081 2,678,861 |
Stock Option Activity | The following table presents stock option activity for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 Weighted Average 2023 Weighted Average Outstanding, beginning of period 8,894,502 23.56 7,117,782 18.75 Granted 1,983,525 44.53 1,866,548 34.29 Exercised (1) ( 180,424 ) 23.42 ( 113,677 ) 6.49 Forfeited, cancelled or expired ( 18,911 ) 30.87 ( 73,400 ) 28.49 Outstanding, end of period 10,678,692 27.45 8,797,253 22.12 Exercisable, end of period 5,419,295 18.27 4,104,317 14.04 (1) During the three months ended March 31, 2024, the Company issued 88,704 ( 2023 – 94,319 ) common shares for the cashless exercise of 180,424 ( 2023 – 113,677 ) 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 March 31, 2024 2023 Average risk-free interest rate 4.05 % 3.87 % Expected volatility 67 % 69 % Average expected term (in years) 5.92 6.13 Expected dividend yield 0 % 0 % Weighted average fair value of stock options granted $ 27.89 $ 22.19 |
Nature of the Business (Details
Nature of the Business (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ 713,071 | $ 665,140 | |
Net loss | $ 47,931 | $ 41,727 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | $ 885,438 | $ 930,874 |
Level 1 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 357,728 | 409,309 |
Level 2 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 527,710 | 521,565 |
Cash and Money Market Fund [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 58,896 | 148,643 |
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 | 58,896 | 148,643 |
Guaranteed Investment Certificates [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 15,068 | 7,684 |
Guaranteed Investment Certificates [Member] | Level 1 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 15,068 | 7,684 |
U.S. Treasuries [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 283,764 | 252,982 |
U.S. Treasuries [Member] | Level 1 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 283,764 | 252,982 |
U.S. Government Securities [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 63,036 | 97,912 |
U.S. Government Securities [Member] | Level 2 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 63,036 | 97,912 |
Commercial Paper [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 183,130 | 119,108 |
Commercial Paper [Member] | Level 2 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 183,130 | 119,108 |
Corporate Debt Securities [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | 281,544 | 304,545 |
Corporate Debt Securities [Member] | Level 2 [Member] | ||
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Financial assets | $ 281,544 | $ 304,545 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Trading marketable securities | $ 13,867 | |
Trading securities available-for-sale | $ 826,542 | $ 768,364 |
Marketable Securities - Summary
Marketable Securities - Summary of Amortized Cost, Unrealized Gain (Loss) Recognized in AOCI and Fair Value of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 827,321 | $ 767,451 |
Unrealized Gain (Loss) | (779) | 913 |
Fair Value | 826,542 | 768,364 |
Guaranteed Investment Certificates [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Contractual maturity of 0 to 1 years, Amortized Cost | 15,151 | 7,549 |
Contractual maturity of 0 to 1 years, Unrealized Gain (Loss) | (83) | 135 |
Contractual maturity of 0 to 1 years, Fair Value | 15,068 | 7,684 |
U.S. Treasuries [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Contractual maturity of 0 to 1 years, Amortized Cost | 235,677 | 192,193 |
Contractual maturity of 0 to 1 years, Unrealized Gain (Loss) | (235) | (249) |
Contractual maturity of 0 to 1 years, Fair Value | 235,442 | 191,944 |
Contractual maturity of 1 to 3 years, Amortized Cost | 48,507 | 53,294 |
Contractual maturity of 1 to 3 years, Unrealized Gain (Loss) | (185) | 243 |
Contractual maturity of 1 to 3 years, Fair Value | 48,322 | 53,537 |
U.S. Government Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Contractual maturity of 0 to 1 years, Amortized Cost | 63,258 | 98,092 |
Contractual maturity of 0 to 1 years, Unrealized Gain (Loss) | (222) | (180) |
Contractual maturity of 0 to 1 years, Fair Value | 63,036 | 97,912 |
Commercial Paper [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Contractual maturity of 0 to 1 years, Amortized Cost | 183,218 | 119,041 |
Contractual maturity of 0 to 1 years, Unrealized Gain (Loss) | (88) | 67 |
Contractual maturity of 0 to 1 years, Fair Value | 183,130 | 119,108 |
Corporate Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Contractual maturity of 0 to 1 years, Amortized Cost | 143,924 | 58,824 |
Contractual maturity of 0 to 1 years, Unrealized Gain (Loss) | 106 | 100 |
Contractual maturity of 0 to 1 years, Fair Value | 144,030 | 58,924 |
Contractual maturity of 1 to 3 years, Amortized Cost | 137,586 | 238,458 |
Contractual maturity of 1 to 3 years, Unrealized Gain (Loss) | (72) | 797 |
Contractual maturity of 1 to 3 years, Fair Value | $ 137,514 | $ 239,255 |
Leases (Details)
Leases (Details) | 3 Months Ended | |
Mar. 31, 2024 Lease Option | Oct. 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, number of renewal options | Option | 2 | |
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, and two renewal options for 5-years each which were not considered in the determination of the right-of-use asset and lease liability. | |
Burnaby, British Columbia [Member] | First Renewal Option [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease extension term | 5 years | |
Burnaby, British Columbia [Member] | Second Renewal Option [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease extension term | 5 years | |
Needham Massachusetts [Member] | ||
Lessee Lease Description [Line Items] | ||
Number of operating leases | 1 | |
Operating lease term | 62 months | |
Operating lease, option to terminate | option to terminate one year prior to the expiry date | |
Operating lease, description | The Company has an additional operating lease for office space in Needham, Massachusetts ("Needham Lease"), which commenced in October 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease expense | $ 412 | $ 412 |
Variable lease expense | $ 208 | $ 197 |
Weighted average remaining lease term (years) | 7 years 1 month 2 days | 7 years 11 months 23 days |
Weighted average discount rate | 3.87% | 3.92% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2024 | $ 1,269 |
2025 | 1,747 |
2026 | 1,815 |
2027 | 1,802 |
2028 | 1,102 |
2029 and thereafter | 4,193 |
Total future minimum lease payments | 11,928 |
Less: imputed interest | (1,503) |
Present value of lease liabilities | $ 10,425 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Trade payables | $ 6,430 | $ 8,598 |
Employee compensation, benefits, and related accruals | 3,819 | 7,425 |
Consulting and contracted research | 8,942 | 8,824 |
Professional fees | 1,603 | 780 |
Other | 106 | 347 |
Total | $ 20,900 | $ 25,974 |
Share Capital (Details)
Share Capital (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 25 Months Ended | |||
Mar. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Share Capital [Line Items] | ||||||
Warrants outstanding to purchase common stock | 2,173,081 | 2,173,081 | 2,173,081 | 2,678,861 | ||
Warrants exercise price per common share | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Performance Share Units [Member] | ||||||
Share Capital [Line Items] | ||||||
Shares granted | 192,000 | |||||
Shares vested | 0 | |||||
Common Shares [Member] | ||||||
Share Capital [Line Items] | ||||||
Pre-funded warrants exercised | 425,003 | |||||
Common stock issued upon conversion of pre-funded warrants | 425,000 | |||||
Jefferies and Stifel [Member] | ATM [Member] | ||||||
Share Capital [Line Items] | ||||||
Sale proceeds of common shares | $ 10,693 | $ 29,508 | ||||
Jefferies and Stifel [Member] | ATM [Member] | Maximum [Member] | ||||||
Share Capital [Line Items] | ||||||
Gross proceeds from issuable of common stock | $ 250,000 | |||||
Jefferies and Stifel [Member] | ATM [Member] | Common Shares [Member] | ||||||
Share Capital [Line Items] | ||||||
Shares issued | 733,000 | 855,685 |
Share Capital - Schedule of Pre
Share Capital - Schedule of Pre-Funded Warrants (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Outstanding, beginning | 2,173,081 | 3,103,864 |
Exercised | 0 | (425,003) |
Outstanding, ending | 2,173,081 | 2,678,861 |
Share Capital - Stock Option Ac
Share Capital - Stock Option Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Number of Options Outstanding, Beginning balance | 8,894,502 | 7,117,782 |
Number of Options, Granted | 1,983,525 | 1,866,548 |
Number of Options, Exercised | (180,424) | (113,677) |
Number of Options, Forfeited, cancelled or expired | (18,911) | (73,400) |
Number of Options Outstanding, Ending balance | 10,678,692 | 8,797,253 |
Number of Options Exercisable, End of period | 5,419,295 | 4,104,317 |
Weighted Average Exercise Price Outstanding, Beginning of period | $ 23.56 | $ 18.75 |
Weighted Average Exercise Price, Granted | 44.53 | 34.29 |
Weighted Average Exercise Price, Exercised | 23.42 | 6.49 |
Weighted Average Exercise Price, Forfeited, cancelled and expired | 30.87 | 28.49 |
Weighted Average Exercise Price Outstanding, End of period | 27.45 | 22.12 |
Weighted Average Exercise Price, Exercisable, End of period | $ 18.27 | $ 14.04 |
Share Capital - Stock Option _2
Share Capital - Stock Option Activity (Parenthetical) (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Common stock issued for cashless exercise | 88,704 | 94,319 |
Cashless exercise of stock options | 180,424 | 113,677 |
Share Capital - Fair Value Assu
Share Capital - Fair Value Assumptions for Stock Options (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value Assumptions For Stock Options [Abstract] | ||
Average risk-free interest rate | 4.05% | 3.87% |
Expected volatility | 67% | 69% |
Average expected term (in years) | 5 years 11 months 1 day | 6 years 1 month 17 days |
Expected dividend yield | 0% | 0% |
Weighted average fair value of stock options granted | $ 27.89 | $ 22.19 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Asset Purchase Agreement [Member] - 1st Order Pharmaceuticals, Inc. [Member] | 3 Months Ended |
Mar. 31, 2024 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 |