Xenon Pharmaceuticals (XENE) 10-Q 9 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 05, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	Xenon Pharmaceuticals Inc.
Document Type	10-Q
Trading Symbol	XENE
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		17,996,680
Amendment Flag	false
Entity Central Index Key	1,582,313
Entity Filer Category	Accelerated Filer
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 20,160	$ 17,095
Marketable securities	37,867	47,051
Accounts receivable	189	200
Prepaid expenses and other current assets	925	1,329
Total current assets	59,141	65,675
Prepaid expenses, long term	269	408
Property, plant and equipment, net	1,376	1,404
Total assets	60,786	67,487
Current liabilities:
Accounts payable and accrued expenses (note 6)	3,591	3,586
Total liabilities	3,591	3,586
Shareholders’ equity:
Common shares, without par value; unlimited shares authorized; issued and outstanding: 17,996,680 (December 31, 2016 - 17,930,590) (note 7a)	173,829	173,246
Additional paid-in capital	34,557	34,326
Accumulated deficit	(150,201)	(142,681)
Accumulated other comprehensive loss	(990)	(990)
Shareholders' equity	57,195	63,901
Total liabilities and shareholders’ equity	60,786	67,487
Commitments and contingencies (note 9)

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Common shares, without par value
Common shares, shares authorized	Unlimited	Unlimited
Common shares, Issued	17,996,680	17,930,590
Common shares, Outstanding	17,996,680	17,930,590

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Collaboration revenue (note 8)	$ 15	$ 569
Royalties	1	32
Revenues	16	601
Operating expenses:
Research and development	5,903	4,364
General and administrative	2,100	1,895
Total operating expenses	8,003	6,259
Loss from operations	(7,987)	(5,658)
Other income:
Interest income	149	99
Foreign exchange gain	321	2,296
Net loss and comprehensive loss	$ (7,517)	$ (3,263)
Net loss per common share (note 4):
Basic	$ (0.42)	$ (0.23)
Diluted	$ (0.43)	$ (0.23)
Weighted-average common shares outstanding (note 4):
Basic	17,946,209	14,394,000
Diluted	17,974,469	14,394,000

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total		Common Shares [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	[1]
Balance at Dec. 31, 2015	$ 61,034		$ 148,634	$ 33,083	$ (119,693)	$ (990)
Balance (in Shares) at Dec. 31, 2015			14,385,336
Net loss	(22,997)				(22,997)
Issuance of common shares, net of issuance costs	23,832		$ 23,832
Issuance of common shares, net of issuance costs (in Shares)			3,450,000
Stock option compensation expense	2,186			2,186
Issued pursuant to exercise of stock options	132		$ 780	(657)	9
Issued pursuant to exercise of stock options (in Shares)			95,254
Fair value adjustment upon reclassification of stock options	(286)			(286)
Balance at Dec. 31, 2016	63,901		$ 173,246	34,326	(142,681)	(990)
Balance (in Shares) at Dec. 31, 2016			17,930,590
Net loss	(7,517)				(7,517)
Stock option compensation expense	637			637
Issued pursuant to exercise of stock options	$ 174		$ 583	(406)	(3)
Issued pursuant to exercise of stock options (in Shares)	67,921	[2]	66,090
Balance at Mar. 31, 2017	$ 57,195		$ 173,829	$ 34,557	$ (150,201)	$ (990)
Balance (in Shares) at Mar. 31, 2017			17,996,680
[1]	Our accumulated other comprehensive loss is entirely related to historical cumulative translation adjustments from the application of U.S. dollar reporting when the functional currency of the Company was the Canadian dollar.
[2]	During the three months ended March 31, 2017, 62,397 stock options were exercised for the same number of common shares for cash (three months ended March 31, 2016 – 16,246). In the same period, the Company issued 3,693 common shares (three months ended March 31, 2016 – nil) for the cashless exercise of 5,524 stock options (three months ended March 31, 2016 – nil).

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net loss	$ (7,517)	$ (3,263)
Items not involving cash:
Depreciation and amortization	165	282
Stock-based compensation	478	592
Unrealized foreign exchange gain	(326)	(2,260)
Changes in operating assets and liabilities:
Accounts receivable	11	(60)
Prepaid expenses, and other current assets	404	82
Prepaid expenses, long term	139
Accounts payable and accrued expenses	186	(160)
Deferred revenue		(157)
Net cash used in operating activities	(6,460)	(4,944)
Investing activities:
Purchases of property, plant and equipment	(137)	(83)
Proceeds from marketable securities	9,384
Net cash provided by (used in) investing activities	9,247	(83)
Financing activities:
Issuance of common shares pursuant to exercise of stock options	174	44
Net cash provided by financing activities	174	44
Effect of exchange rate changes on cash and cash equivalents	104	2,396
Increase (decrease) in cash and cash equivalents	3,065	(2,587)
Cash and cash equivalents, beginning of period	17,095	58,651
Cash and cash equivalents, end of period	20,160	56,064
Supplemental disclosures:
Interest received	55	$ 112
Supplemental disclosures of non-cash transactions:
Fair value of options exercised on a cashless basis	$ 19

Nature of the Business

Nature of the Business	3 Months Ended
	Mar. 31, 2017
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 British Columbia Business Corporations Act and continued federally in 2000 under the Canada Business Corporation Act, is a clinical-stage biopharmaceutical company discovering and developing a pipeline of differentiated therapeutics for orphan indications that it intends to commercialize on its own, and for larger market indications that it intends to partner with global pharmaceutical companies.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of presentation	2. Basis of presentation: These consolidated financial statements are presented in U.S. dollars. The Company has one wholly-owned subsidiary as at March 31, 2017, Xenon Pharmaceuticals USA Inc. which was incorporated in Delaware on December 2, 2016. These unaudited interim consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. 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, 2016 and included in the Company’s 2016 Annual Report on Form 10-K filed with the SEC and with the securities commissions in British Columbia, Alberta and Ontario on March 8, 2017. 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 month periods ended March 31, 2017 and 2016 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 2016 Annual Report on Form 10-K for the year ended December 31, 2016. Certain comparative figures have been reclassified to conform to the consolidated financial statement presentation adopted for the current period.

Future Changes in Accounting Po

Future Changes in Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Changes And Error Corrections [Abstract]
Future changes in accounting policies	3. Future changes in accounting policies: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (ASC 606) to clarify the principles of recognizing revenue and to develop a common revenue standard that would remove inconsistencies in revenue requirements, leading to improved comparability of revenue recognition practices across entities and industries. The standard, as subsequently amended, stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance will be effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2017. The Company has begun its evaluation and identified two significant collaboration agreements with respect to revenue, the collaborative development and license agreements with Teva Pharmaceutical Industries, Ltd. Genentech, a member of the Roche Group, In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Recognition and Measurement of Financial Assets and Financial Liabilities. The update requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. The new guidance retains a distinction between finance leases and operating leases, with cash payments from operating leases classified within operating activities in the statement of cash flows. These amendments will be effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the new guidance to determine the impact it will have on the Company’s consolidated financial statements.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income (loss) per common share	4. Net income (loss) per common share: Basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per common share is computed by adjusting the numerator and denominator of the basic net income (loss) per share calculation for the potential impact of dilutive securities. For the three months ended March 31, 2017, 1,943,508 stock options were excluded from the calculation of diluted net income per common share as their inclusion would be anti-dilutive. For the three months ended March 31, 2016, all stock options were anti-dilutive and were excluded from the diluted weighted average common shares outstanding for the period. The following is a reconciliation of the numerators and denominators of basic and diluted net loss per common share: Three Months Ended March 31, 2017 2016 Numerator: Net loss used to compute net loss per common share: Basic $ (7,517 ) $ (3,263 ) Adjustment for change in fair value of liability classified stock options (133 ) — Diluted $ (7,650 ) $ (3,263 ) Denominator: Weighted average number of common shares: Basic 17,946,209 14,394,000 Adjustment for dilutive effect of stock options 28,260 — Diluted 17,974,469 14,394,000 Net loss per common share - basic $ (0.42 ) $ (0.23 ) Net loss per common share - diluted $ (0.43 ) $ (0.23 )

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair value of financial instruments	5. Fair value of financial instruments: We measure certain financial instruments and other items at fair value. To determine the fair value, we use the fair value hierarchy for inputs used to measure fair value of financial assets and liabilities. This hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels: Level 1 (highest priority), Level 2, and Level 3 (lowest priority). • Level 1 - Unadjusted quoted prices in active markets for identical instruments. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). • Level 3 - Inputs are unobservable and reflect the Company’s assumptions as to what market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company’s Level 1 assets include cash and cash equivalents and marketable securities with quoted prices in active markets. The carrying amount of accounts receivables, accounts payable and accrued expenses approximates fair value due to the nature and short-term of those instruments. As quoted prices for the liability classified stock options, included in the consolidated balance sheet as accounts payable and accrued expenses, are not readily available, the Company has used a Black-Scholes pricing model to estimate fair value using Level 3 inputs as defined above.

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	3 Months Ended
	Mar. 31, 2017
Payables And Accruals [Abstract]
Accounts Payable and Accrued Expenses	6. Accounts payable and accrued expenses: Accounts payable and accrued expenses consisted of the following: March 31, December 31, 2017 2016 Trade payables $ 1,165 $ 1,463 Employee compensation, benefits, and related accruals 530 872 Consulting and contracted research 1,495 1,029 Professional fees 305 93 Other 96 129 Total $ 3,591 $ 3,586

Share Capital

Share Capital	3 Months Ended
	Mar. 31, 2017
Stockholders Equity Note [Abstract]
Share Capital	7. Share Capital (a) Financing: On September 13, 2016, the Company completed an underwritten public offering of 3,450,000 of its common shares at a public offering price of $7.50 per common share. The Company received approximately $24.3 million of proceeds, net of underwriting discounts and commissions but before offering expenses. (b) Stock-based compensation: The following table presents stock option activity for the period: Three 2017 2016 Outstanding, beginning of period 1,910,823 1,721,472 Granted 416,750 233,950 Exercised (1) (67,921 ) (16,246 ) Forfeited and expired (1,415 ) (4,442 ) Outstanding, end of period 2,258,237 1,934,734 Exercisable, end of period 1,293,367 1,151,853 (1) The fair value of each option granted to employees and non-employees is estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended March 31, 2017 2016 Average risk-free interest rate 2.44 % 1.64 % Expected volatility 81 % 75 % Average expected term (in years) 7.47 6.25 Expected dividend yield 0.00 % 0.00 % The weighted-average fair value of options granted during the three months ended March 31, 2017 was $6.34 (three months ended March 31, 2016 – $4.95) per option .

Collaboration Agreements

Collaboration Agreements	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Collaboration agreements	8. Collaboration agreements: The Company has entered into a number of collaboration agreements with multiple deliverables under which it may have received non-refundable upfront payments. The Company generally recognizes revenue from non-refundable upfront payments ratably over the term of its estimated period of performance of research under its collaboration agreements in the event that such arrangements represent a single unit of accounting. The collaborations may also include contractual milestone payments, which relate to the achievement of pre-specified research, development, regulatory and commercialization events. The milestone events coincide with the progression of product candidates from research and development, to regulatory approval and through to commercialization. The process of successfully discovering a new product candidate, having it selected by the collaborator for development and having it approved and ultimately sold for a profit is highly uncertain. As such, the milestone payments that the Company may earn from its collaborators involve a significant degree of risk to achieve. The following table is a summary of the revenue recognized from the Company’s collaborations for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 Teva: Research funding $ 15 $ 29 Genentech: Recognition of upfront payment — 157 Research funding — 383 Total collaboration revenue $ 15 $ 569

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and contingencies: (a) Priority access agreement with Medpace Inc. (“Medpace”): In August 2015, the Company entered into a priority access agreement with Medpace for the provision of certain clinical development services. Under the terms of the agreement, the Company has committed to using Medpace non-exclusively for clinical development services over the five year term of the agreement. In consideration for priority access to Medpace resources and preferred service rates, the Company has committed to $7,000 of services over the term of the agreement, $3,000 of which was paid in the year ended December 31, 2015. Of the amounts paid by the Company in 2015 in connection with the priority access agreement, $2,608 has been recorded as expenses to date for services rendered, $123 has been recorded as current prepaid expenses (December 31, 2016 – $392) and $269 as long-term prepaid expenses (December 31, 2016 – $408) for the provision of future services as at March 31, 2017. (b) License, manufacture and supply agreement: In March 2017, the Company entered into a license, manufacture and supply agreement with a pharmaceutical contract manufacturing organization for the access and use of certain regulatory documents as well as for the manufacture and supply of clinical and commercial drug product. Under the terms of the agreement, the Company was required to pay an upfront payment of $500 CAD and will be required to pay a low single-digit percentage royalty on net sales of any products developed and commercialized under the agreement. (c) 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.

Related Parties

Related Parties	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Parties	10. Related Parties: Dr. August J. Troendle, an officer and director of Medpace, which provides clinical development services to the Company, was a beneficial owner of more than 5% of the Company’s common shares during 2016. The Company incurred $432 of clinical development service fees under its priority access agreement and a master services agreement with Medpace for the three months ended March 31, 2017 (three months ended March 31, 2016 – $373).

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Event	11. Subsequent Event: In April 2017, the Company acquired XEN1101 (previously known as 1OP2198) from 1st Order Pharmaceuticals, Inc. (“1st Order”) pursuant to an asset purchase agreement. 1st Order previously acquired 1OP2198 from an affiliate of Valeant Pharmaceuticals International, Inc. (“Valeant”), and the Company will assume certain financial responsibilities under that agreement. Near term upfront and milestone consideration to be paid in 2017 is expected to total approximately $1,100. Future potential payments to both 1st Order and Valeant include $1,000 in clinical development milestones, up to $13,000 in regulatory milestones, and up to approximately $33,600 in sales-based and other milestones, which includes a $1,500 milestone that may be payable pre-commercially, plus a mid-to-high single digit percentage royalty on commercial sales.

Net Income (Loss) Per Common 18

Net Income (Loss) Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Reconciliation of the Numerators and Denominators of Basic and Diluted Net Loss Per Common Share	The following is a reconciliation of the numerators and denominators of basic and diluted net loss per common share: Three Months Ended March 31, 2017 2016 Numerator: Net loss used to compute net loss per common share: Basic $ (7,517 ) $ (3,263 ) Adjustment for change in fair value of liability classified stock options (133 ) — Diluted $ (7,650 ) $ (3,263 ) Denominator: Weighted average number of common shares: Basic 17,946,209 14,394,000 Adjustment for dilutive effect of stock options 28,260 — Diluted 17,974,469 14,394,000 Net loss per common share - basic $ (0.42 ) $ (0.23 ) Net loss per common share - diluted $ (0.43 ) $ (0.23 )

Accounts Payable and Accrued 19

Accounts Payable and Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2017
Payables And Accruals [Abstract]
Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consisted of the following: March 31, December 31, 2017 2016 Trade payables $ 1,165 $ 1,463 Employee compensation, benefits, and related accruals 530 872 Consulting and contracted research 1,495 1,029 Professional fees 305 93 Other 96 129 Total $ 3,591 $ 3,586

Share Capital (Tables)

Share Capital (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Option Activity	The following table presents stock option activity for the period: Three 2017 2016 Outstanding, beginning of period 1,910,823 1,721,472 Granted 416,750 233,950 Exercised (1) (67,921 ) (16,246 ) Forfeited and expired (1,415 ) (4,442 ) Outstanding, end of period 2,258,237 1,934,734 Exercisable, end of period 1,293,367 1,151,853 (1)
Fair Value Assumptions for Stock Options	The fair value of each option granted to employees and non-employees is estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended March 31, 2017 2016 Average risk-free interest rate 2.44 % 1.64 % Expected volatility 81 % 75 % Average expected term (in years) 7.47 6.25 Expected dividend yield 0.00 % 0.00 %

Collaboration Agreements (Table

Collaboration Agreements (Tables)	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Schedule of Revenues from Collaborations	The following table is a summary of the revenue recognized from the Company’s collaborations for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 Teva: Research funding $ 15 $ 29 Genentech: Recognition of upfront payment — 157 Research funding — 383 Total collaboration revenue $ 15 $ 569

Basis of presentation (Details)

Basis of presentation (Details)	3 Months Ended
	Mar. 31, 2017
Xenon Pharmaceuticals USA Inc. [Member]
Basis of Presentation [Line Items]
Date of incorporation	Dec. 2, 2016

Net Income (Loss) Per Common 23

Net Income (Loss) Per Common Share (Details)	3 Months Ended
	Mar. 31, 2017shares
Earnings Per Share [Abstract]
Anti-dilutive shares excluded from the calculation of income per common share	1,943,508

Net Income (Loss) Per Common 24

Net Income (Loss) Per Common Share - Reconciliation of the Numerators and Denominators of Basic and Diluted Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net loss used to compute net loss per common share:
Basic	$ (7,517)	$ (3,263)
Adjustment for change in fair value of liability classified stock options	(133)
Diluted	$ (7,650)	$ (3,263)
Weighted average number of common shares:
Basic	17,946,209	14,394,000
Adjustment for dilutive effect of stock options	28,260
Diluted	17,974,469	14,394,000
Net loss per common share - basic	$ (0.42)	$ (0.23)
Net loss per common share - diluted	$ (0.43)	$ (0.23)

Accounts Payable and Accrued 25

Accounts Payable and Accrued Expenses - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables And Accruals [Abstract]
Trade payables	$ 1,165	$ 1,463
Employee compensation, benefits, and related accruals	530	872
Consulting and contracted research	1,495	1,029
Professional fees	305	93
Other	96	129
Total	$ 3,591	$ 3,586

Share Capital (Details)

Share Capital (Details) - USD ($) $ / shares in Units, $ in Millions	Sep. 13, 2016	Mar. 31, 2017	Mar. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average fair value of options granted		$ 6.34	$ 4.95
Underwritten Public Offering [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common shares, net of issuance costs (in Shares)	3,450,000
Common share price (in Dollars per share)	$ 7.50
Proceeds from net of underwriting discounts and commissions Before offering expenses	$ 24.3

Share Capital - Stock Option Ac

Share Capital - Stock Option Activity (Details) - shares		3 Months Ended		12 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Outstanding, beginning of period		1,910,823	1,721,472	1,721,472
Granted		416,750	233,950
Exercised	[1]	(67,921)	(16,246)
Forfeited and expired		(1,415)	(4,442)
Outstanding, end of period		2,258,237	1,934,734	1,910,823
Exercisable, end of period		1,293,367	1,151,853
[1]	During the three months ended March 31, 2017, 62,397 stock options were exercised for the same number of common shares for cash (three months ended March 31, 2016 – 16,246). In the same period, the Company issued 3,693 common shares (three months ended March 31, 2016 – nil) for the cashless exercise of 5,524 stock options (three months ended March 31, 2016 – nil).

Share Capital - Stock Option 28

Share Capital - Stock Option Activity (Parenthetical) (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Options exercised for Number of Common Shares for cash	62,397	16,246
Common stock issued for cashless exercise	3,693
Cashless exercise of stock options	5,524

Share Capital - Fair Value Assu

Share Capital - Fair Value Assumptions for Stock Options (Details)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Fair Value Assumptions For Stock Options [Abstract]
Average risk-free interest rate	2.44%	1.64%
Expected volatility	81.00%	75.00%
Average expected term (in years)	7 years 5 months 19 days	6 years 3 months
Expected dividend yield	0.00%	0.00%

Collaboration Agreements - Reve

Collaboration Agreements - Revenue Recognized from Collaborations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration revenue	$ 15	$ 569
Teva [Member] | Research Funding [Member] | Collaborative Arrangement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration revenue	$ 15	29
Genentech [Member] | Research Funding [Member] | Collaborative Arrangement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration revenue		383
Genentech [Member] | Recognition of Upfront Payment [Member] | Collaborative Arrangement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaboration revenue		$ 157

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended	5 Months Ended
	Mar. 31, 2017USD ($)	Dec. 31, 2015USD ($)	Mar. 31, 2017CAD	Dec. 31, 2016USD ($)	Aug. 31, 2015USD ($)
Commitments and Contingencies [Line Items]
Prepaid expenses, long term	$ 269			$ 408
Medpace Clinical Development Service Agreement [Member]
Commitments and Contingencies [Line Items]
Service agreement, term	5 years
Committed service obligation					$ 7,000
Contractual obligation paid		$ 3,000
Expenses for services rendered	$ 2,608
Current prepaid expenses	123			392
Prepaid expenses, long term	$ 269			$ 408
License, Manufacture and Supply Agreement [Member]
Commitments and Contingencies [Line Items]
Upfront payment payable | CAD			CAD 500

Related Parties (Details)

Related Parties (Details) - Medpace Clinical Development Service Agreement [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Clinical development service fees to related parties	$ 432	$ 373
Dr. August J. Troendle, Officer and Director [Member] | Minimum [Member]
Related Party Transaction [Line Items]
Percentage of ownership			5.00%

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event [Member] - Asset Purchase Agreement [Member] $ in Thousands	Apr. 30, 2017USD ($)
1st Order Pharmaceuticals, Inc. [Member]
Subsequent Event [Line Items]
Near term upfront and milestone consideration	$ 1,100
1st Order Pharmaceuticals, Inc. and Valeant Pharmaceuticals International, Inc. [Member] | Clinical Development Milestones [Member]
Subsequent Event [Line Items]
Future potential payments	1,000
1st Order Pharmaceuticals, Inc. and Valeant Pharmaceuticals International, Inc. [Member] | Regulatory Milestone [Member]
Subsequent Event [Line Items]
Future potential payments	13,000
1st Order Pharmaceuticals, Inc. and Valeant Pharmaceuticals International, Inc. [Member] | Sales-based and Other Milestones [Member]
Subsequent Event [Line Items]
Future potential payments	33,600
1st Order Pharmaceuticals, Inc. and Valeant Pharmaceuticals International, Inc. [Member] | Pre-commercial and Single Digit Percentage Royalty on Commercial Sales Milestone [Member]
Subsequent Event [Line Items]
Future potential payments	$ 1,500