Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Entity Registrant Name | XENON PHARMACEUTICALS INC. | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 35,809,247 | ||
Entity Public Float | $ 382.9 | ||
Amendment Flag | false | ||
Trading Symbol | XENE | ||
Entity Central Index Key | 0001582313 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common Shares, without par value | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity Tax Identification Number | 98-0661854 | ||
Entity Address, Address Line One | 200-3650 Gilmore Way | ||
Entity Address, City or Town | Burnaby | ||
Entity Address, State or Province | BC | ||
City Area Code | 604 | ||
Local Phone Number | 484-3300 | ||
Entity File Number | 001-36687 | ||
Entity Address, Postal Zip Code | V5G 4W8 | ||
Entity Incorporation, State or Country Code | Z4 | ||
Entity Address, Country | CA | ||
ICFR Auditor Attestation Flag | false | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to the 2021 Annual Meeting of Shareholders, which will be filed with the Securities and Exchange Commission subsequent to the date hereof, are incorporated by reference into Part III of this Report. Such Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days following the end of the Registrant’s fiscal year ended December 31, 2020 . |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 45,009 | $ 24,755 |
Marketable securities | 131,988 | 116,603 |
Accounts receivable | 1,822 | 813 |
Prepaid expenses and other current assets | 2,964 | 2,695 |
Total current assets | 181,783 | 144,866 |
Operating lease right-of-use asset, net (note 8) | 3,326 | 933 |
Property, plant and equipment, net (note 7) | 3,554 | 1,660 |
Deferred tax assets (note 15) | 523 | 238 |
Total assets | 189,186 | 147,697 |
Current liabilities: | ||
Accounts payable and accrued expenses (note 9) | 10,874 | 8,818 |
Deferred revenue (note 13) | 3,642 | 29,743 |
Operating lease liability (note 8) | 265 | 168 |
Term loan (note 10) | 4,650 | |
Total current liabilities | 14,781 | 43,379 |
Deferred revenue, long-term (note 13) | 709 | |
Operating lease liability, long-term (note 8) | 3,050 | 743 |
Term loan, long-term (note 10) | 10,889 | |
Total liabilities | 17,831 | 55,720 |
Shareholders’ equity: | ||
Preferred shares, without par value; unlimited shares authorized; issued and outstanding: 1,016,000 (December 31, 2019 - 1,016,000) (note 11) | 7,732 | 7,732 |
Common shares, without par value; unlimited shares authorized; issued and outstanding: 35,012,125 (December 31, 2019 - 28,139,228) (note 11) | 397,748 | 294,244 |
Additional paid-in capital | 45,357 | 40,646 |
Accumulated deficit | (278,492) | (249,655) |
Accumulated other comprehensive loss | (990) | (990) |
Shareholders' equity | 171,355 | 91,977 |
Total liabilities and shareholders’ equity | 189,186 | 147,697 |
Commitments and contingencies (note 14) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Financial Position [Abstract] | ||
Preferred shares, without par value | ||
Preferred shares, shares authorized | Unlimited | Unlimited |
Preferred shares, issued | 1,016,000 | 1,016,000 |
Preferred shares, outstanding | 1,016,000 | 1,016,000 |
Common shares, without par value | ||
Common shares, shares authorized | Unlimited | Unlimited |
Common shares, Issued | 35,012,125 | 28,139,228 |
Common shares, Outstanding | 35,012,125 | 28,139,228 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue (note 13): | $ 32,166 | $ 6,829 |
Operating expenses: | ||
Research and development | 50,523 | 38,845 |
General and administrative | 12,944 | 10,803 |
Total operating expenses | 63,467 | 49,648 |
Loss from operations | (31,301) | (42,819) |
Other income (expense): | ||
Interest income | 2,283 | 2,353 |
Interest expense | (484) | (1,434) |
Foreign exchange gain | 1,396 | 282 |
Loss on repayment of term loan (note 10) | (988) | |
Loss before income taxes | (29,094) | (41,618) |
Income tax recovery (note 15) | (257) | (23) |
Net loss and comprehensive loss | (28,837) | (41,595) |
Net loss attributable to preferred shareholders | (824) | (1,568) |
Net loss attributable to common shareholders | $ (28,013) | $ (40,027) |
Net loss per common share (note 6): | ||
Basic and diluted | $ (0.81) | $ (1.54) |
Weighted-average common shares outstanding (note 6): | ||
Basic and diluted | 34,542,213 | 25,939,405 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Convertible Preferred Shares [Member] | Common Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss [Member] | [1] | |
Balance at Dec. 31, 2018 | $ 103,295 | $ 7,732 | $ 265,923 | $ 38,515 | $ (207,885) | $ (990) | ||||
Balance (in Shares) at Dec. 31, 2018 | 1,016,000 | 25,750,721 | ||||||||
Cumulative effect of accounting change at Dec. 31, 2019 | $ (175) | $ (175) | ||||||||
Net loss | (41,595) | (41,595) | ||||||||
Issuance of common shares, net of issuance costs (note 11a) | 27,396 | $ 27,396 | ||||||||
Issuance of common shares, net of issuance costs (note 11a) (in shares) | 2,214,490 | |||||||||
Stock-based compensation expense | 2,934 | 2,934 | ||||||||
Issued pursuant to exercise of stock options | $ 122 | $ 925 | (803) | |||||||
Issued pursuant to exercise of stock options (in Shares) | 266,157 | [2] | 174,017 | |||||||
Balance at Dec. 31, 2019 | $ 91,977 | $ 7,732 | $ 294,244 | 40,646 | (249,655) | (990) | ||||
Balance (in Shares) at Dec. 31, 2019 | 1,016,000 | 28,139,228 | ||||||||
Net loss | (28,837) | (28,837) | ||||||||
Issuance of common shares, net of issuance costs (note 11a) | 102,456 | $ 102,456 | ||||||||
Issuance of common shares, net of issuance costs (note 11a) (in shares) | 6,759,187 | |||||||||
Stock-based compensation expense | 5,677 | 5,677 | ||||||||
Issued pursuant to exercise of stock options | $ 82 | $ 1,048 | (966) | |||||||
Issued pursuant to exercise of stock options (in Shares) | 171,812 | [2] | 113,710 | |||||||
Balance at Dec. 31, 2020 | $ 171,355 | $ 7,732 | $ 397,748 | $ 45,357 | $ (278,492) | $ (990) | ||||
Balance (in Shares) at Dec. 31, 2020 | 1,016,000 | 35,012,125 | ||||||||
[1] | The 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 year ended December 31, 2020, 26,513 (2019 – 36,174) stock options were exercised for the same number of common shares in exchange for cash. In the same period, the Company issued 87,197 (2019 – 137,843) common shares for the cashless exercise of 145,299 (2019 – 229,983) stock options. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities: | ||
Net loss | $ (28,837) | $ (41,595) |
Items not involving cash: | ||
Depreciation | 644 | 429 |
Amortization of discount on term loan | 216 | 525 |
Deferred income tax recovery | (285) | (133) |
Stock-based compensation | 5,677 | 2,924 |
Unrealized foreign exchange gain | (434) | (302) |
Unrealized gain on marketable securities | (4) | (82) |
Loss on repayment of term loan (note 10) | 988 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,032) | (653) |
Prepaid expenses and other current assets | (269) | (820) |
Accounts payable and accrued expenses | 2,022 | 4,541 |
Deferred revenue | (26,810) | 30,452 |
Net cash used in operating activities | (48,124) | (4,714) |
Investing activities: | ||
Purchases of property, plant and equipment | (2,637) | (1,240) |
Purchase of marketable securities | (228,897) | (140,494) |
Proceeds from marketable securities | 214,710 | 75,525 |
Net cash used in investing activities | (16,824) | (66,209) |
Financing activities: | ||
Repayment of term loan and repayment fees (note 10) | (16,743) | |
Issuance of common shares, net of issuance costs (note 11a) | 102,456 | 27,396 |
Issuance of common shares pursuant to exercise of stock options | 82 | 122 |
Net cash provided by financing activities | 85,795 | 27,518 |
Effect of exchange rate changes on cash and cash equivalents | (593) | 406 |
Increase (decrease) in cash and cash equivalents | 20,254 | (42,999) |
Cash and cash equivalents, beginning of year | 24,755 | 67,754 |
Cash and cash equivalents, end of year | 45,009 | 24,755 |
Supplemental disclosures: | ||
Interest paid | 339 | 917 |
Interest received | 4,115 | 2,216 |
Cash paid for operating lease | 634 | 634 |
Supplemental disclosures of non-cash transactions: | ||
Fair value of stock options exercised on a cashless basis | 887 | $ 719 |
Increase in operating lease right-of-use asset and operating lease liability related to lease amendment (note 8) | $ 2,907 |
Nature of the Business
Nature of the Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of the business | 1. Nature of the business: Xenon Pharmaceuticals Inc. (the “Company”), incorporated in 1996 under the predecessor to the Business Corporations Act (British Columbia) and continued federally in 2000 under the Canada Business Corporations Act, is a clinical stage biopharmaceutical company focused on developing innovative therapeutics to improve the lives of patients with neurological disorders, with a focus on epilepsy. The Company has incurred significant operating losses since inception. As of December 31, 2020, the Company had an accumulated deficit of $278,492 and a $28,837 net loss for the year ended December 31, 2020. 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 funding received from collaboration and license agreements, private placements of common and preferred shares, public offerings of common shares, debt financing, and government funding. Until such time as the Company can generate substantial product revenue, if ever, management expects to finance the Company’s cash needs through a combination of collaboration agreements, equity and debt financings. The continuation of research and development activities and the future commercialization of its products are dependent on the Company’s ability to successfully raise additional funds when needed. It is not possible to predict either the outcome of future research and development programs or the Company’s ability to continue to fund these programs in the future. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | 2. Basis of presentation: These consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Certain information has been reclassified to conform with the financial statement presentation adopted for the current year. The Company has one wholly-owned subsidiary as of December 31, 2020, Xenon Pharmaceuticals USA Inc., which was incorporated in Delaware on December 2, 2016. These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany transactions and balances have been eliminated on consolidation. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant accounting policies | 3. Significant accounting policies: (a) Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant areas of estimates include, but are not limited to, revenue recognition including estimated timing of completion of performance obligations and the determination of stock-based compensation. These estimates and assumptions take into account historical and forward looking factors that the Company believes are reasonable, including but not limited to the potential impacts arising from the novel coronavirus (“COVID-19”) and pandemic public and private sector policies and initiatives aimed at reducing its transmission. The full extent to which the pandemic may have a direct or indirect impact on our business, results of operations and financial condition, including revenue, expenses, research and clinical development plans and timelines, depends on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19, as well as the economic impact on local, regional, national and global markets. Actual results could differ materially from these estimates. Estimates and assumptions are reviewed quarterly. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. (b) Cash and cash equivalents: Cash equivalents are highly liquid investments that are readily convertible into cash with terms to maturity of three months or less when acquired. Cash equivalents are recorded at cost plus accrued interest. The carrying value of these cash equivalents approximates their fair value. (c) Marketable securities: Marketable securities are investments with original maturities exceeding three months, and the Company classified these securities as current assets as the Company has the intent and ability to convert these securities into cash without penalty within the next 12 months. Marketable securities accrue interest based on a fixed interest rate for the term. The carrying value of marketable securities is recorded at quoted prices in active markets, which approximates their fair value. (d) Intellectual property: The costs incurred in establishing and maintaining patents for intellectual property developed internally are expensed in the period incurred. (e) Property, plant and equipment: Property, plant and equipment are stated at cost less accumulated depreciation and/or accumulated impairment losses, if any. Repairs and maintenance costs are expensed in the period incurred. Property, plant and equipment are amortized over their estimated useful lives using the straight-line method based on the following rates: Asset Rate Research equipment 5 years Office furniture and equipment 5 years Computer equipment 3 years Leasehold improvements Over the lesser of lease term or estimated useful life (f) Impairment of long-lived assets: The Company monitors its long-lived assets for indicators of impairment. If such indicators are present, the Company assesses the recoverability of affected assets by determining whether the carrying value of such assets is less than the sum of the undiscounted future cash flows of the assets. If such assets are found not to be recoverable, the Company measures the amount of such impairment by comparing the carrying value of the assets to the fair value of the assets, with the fair value generally determined based on the present value of the expected future cash flows associated with the assets. No impairment of long-lived assets was noted during the years ended December 31, 2020 and 2019. (g) Leases: Leases classified as operating leases are recorded as lease liabilities based on the present value of minimum lease payments over the lease term, discounted using the lessor’s rate implicit in the lease or the Company’s incremental borrowing rate, if the lessor’s implicit rate is not readily determinable. The lease term includes all periods covered by renewal and termination options where the Company is reasonably certain to exercise the renewal options or not to exercise the termination options. Corresponding right-of-use assets are recognized consisting of the lease liabilities, initial direct costs and any lease incentive payments. Lease liabilities are drawn down as lease payments are made and right-of-use assets are depreciated over the term of the lease. Operating lease expenses are recognized on a straight-line basis over the term of the lease, consisting of interest accrued on the lease liability and depreciation of the right-of-use asset, adjusted for changes in index-based variable lease payments in the period of change. Lease payments on short-term operating leases with lease terms twelve months or less are expensed as incurred. (h) Concentration of credit risk and of significant customers: Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents were held at major financial institutions in Canada and the United States. Such deposits may be in excess of insured limits in the event of non-performance by the institutions; however, the Company does not anticipate non-performance. Neurocrine Biosciences, Inc. ("Neurocrine Biosciences") accounted for 100% of revenue recognized for the year ended December 31, 2020. Neurocrine Biosciences and Flexion Therapeutics, Inc. (“Flexion”) accounted for 48% and 51% of revenue recognized for the year ended December 31, 2019, respectively. (i) Financial instruments and fair value: We measure certain financial instruments and other items at fair value. To determine the fair value, the Company use s 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. (j) Revenue recognition: The Company recognizes the amount of revenue to which it expects to be entitled, for the transfer of promised goods or services to customers under a five-step model: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when or as a performance obligation is satisfied. The Company generates revenue primarily through collaboration agreements. Such agreements may require the Company to deliver various rights and/or services, including intellectual property rights or licenses and research and development services. Under such collaboration agreements, the Company is generally eligible to receive non-refundable upfront payments, funding for research and development services, milestone payments, and royalties. In contracts where the Company has more than one performance obligation to provide its customer with goods or services, each performance obligation is evaluated to determine whether it is distinct based on whether (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available and (ii) the good or service is separately identifiable from other promises in the contract. The consideration under the contract is then allocated between the distinct performance obligations based on their respective relative standalone selling prices. The estimated standalone selling price of each deliverable reflects the Company’s best estimate of what the selling price would be if the deliverable was regularly sold on a standalone basis and is determined by reference to market rates for the good or service when sold to others or by using an adjusted market assessment approach if selling price on a standalone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control is transferred to the customer for the related goods or services. Consideration in exchange for research and development services performed by the Company on behalf of the licensee is recognized upon performance of such activities at rates consistent with prevailing market rates. Consideration associated with at-risk substantive performance milestones, including sales-based milestones, is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur. Sales-based royalties received in connection with licenses of intellectual property are subject to a specific exception in the revenue standards, whereby the consideration is not included in the transaction price and recognized in revenue until the customer’s subsequent sales or usages occur. (k) Research and development costs: Research and development costs are expensed in the period incurred. Certain development activity costs, such as pre-clinical costs, manufacturing costs and clinical trial costs, are a component of research and development costs and include fees paid to contract research organizations, contract development and manufacturing organizations, investigators and other vendors who conduct certain product development activities on behalf of the Company. The amount of expenses recognized in a period related to service agreements is based on the work performed using the accrual basis of accounting. Vendors generally provide estimates of proportionate performance to allow the Company to determine an appropriate accrual. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered. (l) Stock-based compensation: The Company grants stock options to employees, directors and officers pursuant to stock option plans described in note 11c. Employee stock-based compensation expense is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense, net of actual forfeitures, over the requisite service period with a corresponding increase in additional paid-in capital. Stock-based compensation expense is amortized on a straight-line basis over the requisite service period for the entire award, which is generally the vesting period of the award. Any consideration received on exercise of stock options is credited to share capital. (m) Foreign currency translation: The functional and reporting currency of the Company and its subsidiary is the U.S. dollar. Monetary assets and liabilities denominated in a currency other than the U.S. dollar are re-measured into U.S. dollars at the exchange rate prevailing as of the balance sheet date. Non-monetary assets and liabilities acquired in a currency other than U.S. dollars are translated at historical exchange rates prevailing at each transaction date. Revenue and expense transactions are translated at the exchange rates prevailing at each transaction date. Exchange gains and losses on translation are included in the consolidated statements of operations and comprehensive income (loss) as foreign exchange gain (loss). (n) Income taxes: Deferred income taxes are recognized for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities and their respective tax bases and net operating loss and credit carryforwards. Deferred income tax assets and liabilities are measured at enacted rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are (o) Segment and geographic information: Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment. |
Changes in Significant Accounti
Changes in Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Changes in Significant Accounting Policies | 4. Changes in significant accounting policies: In November 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-08, Compensation—Stock Compensation ( Topic |
Future Changes in Accounting Po
Future Changes in Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Future changes in accounting policies | 5. Future changes in accounting policies: In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. These amendments simplify accounting for income taxes, change the accounting for certain income tax transactions and make certain improvements to the codification. These amendments will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020 with early adoption permitted. The Company has evaluated the new guidance and determined it will not have a material impact on the Company’s consolidated financial statements. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net income (loss) per common share | 6. 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 1,016,000 Series 1 Preferred Shares as a separate class for the year ended December 31, 2020 (2019 – 1,016,000). 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. The treasury stock method is used to compute the dilutive effect of the Company’s stock options and warrants. Under this method, the incremental number of common shares used in computing diluted net income (loss) per common share is the difference between the number of common shares assumed issued and purchased using assumed proceeds. The if-converted method is used to compute the dilutive effect of the Company’s convertible preferred shares. Under the if-converted method, dividends on the preferred shares, if applicable, are added back to earnings attributable to common shareholders, and the preferred shares and paid-in kind dividends are assumed to have been converted at the share price applicable at the end of the period. The if-converted method is applied only if the effect is dilutive. For the years ended December 31, 2020 and 2019, all stock options, warrants and convertible preferred shares were anti-dilutive and were excluded from the diluted weighted average common shares outstanding for the period. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 7. Property, plant and equipment: Property, plant and equipment consisted of the following: December 31, 2020 2019 Research equipment $ 8,683 $ 6,522 Office furniture and equipment 994 985 Computer equipment 2,641 2,473 Leasehold improvements 6,390 6,370 Less: accumulated depreciation and amortization (15,154 ) (14,690 ) Net book value $ 3,554 $ 1,660 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 8. Leases: The Company has one operating lease for research laboratories and office space in Burnaby, British Columbia. In October 2020, the Company entered into a lease amendment for a 21–month committed term from October 1, 2020 to June 30, 2022. A renewal option for a portion of the facility for a 5-year term that is reasonably certain of exercise has been included in the determination of the right-of-use asset and lease liability as of December 31, 2020. The cost components of the operating lease were as follows for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Lease Cost Operating lease expense $ 536 $ 436 Variable lease expense (1) 549 542 Lease Term and Discount Rate Remaining lease term (years) 6.50 2.25 Discount rate 2.45 % 3.75 % (1) Variable lease costs are payments that vary because of changes in facts or circumstances and include common area maintenance and property taxes related to the premises. Variable lease costs are excluded from the calculation of minimum lease payments. Future minimum lease payments as of December 31, 2020 were as follows: Year ending December 31: 2021 $ 811 2022 694 2023 569 2024 569 2025 and thereafter 1,423 Total future minimum lease payments $ 4,066 Less: imputed interest (284 ) Less: future lease incentives reasonably certain of use (467 ) Present value of lease liabilities $ 3,315 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 9. Accounts payable and accrued expenses: Accounts payable and accrued expenses consisted of the following: December 31, 2020 2019 Trade payables $ 3,041 $ 2,473 Employee compensation, benefits, and related accruals 2,859 2,892 Consulting and contracted research 4,738 3,104 Professional fees 167 154 Other 69 195 Total $ 10,874 $ 8,818 |
Term Loan
Term Loan | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Term Loan | 10. Term Loan: In August 2018, the Company entered into an Amended and Restated Loan and Security Agreement (the “Amended and Restated Loan Agreement”) with Silicon Valley Bank (the “Bank”), pursuant to which the Bank agreed to extend a term loan to the Company with a principal amount of $15,500 (the “Term Loan”) he Term Loan accrued interest at a floating per annum rate of 0.5% above the prime rate. The Term Loan was interest-only until March 31, 2020, followed by 30 equal monthly installments of principal plus interest, originally maturing on September 1, 2022. In addition, the Company was required to pay a final payment fee of 6.5% of the Term Loan on the date on which the term loan was prepaid, paid or became due and payable in full. In May 2020, the Company repaid the total outstanding Term Loan balance ahead of the maturity date. The repayment consisted of (i) the outstanding principal balance, (ii) a final payment fee of $1,008 , $225. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders Equity Note [Abstract] | |
Share Capital | 11. Share capital: (a) Financing: In November 2019, the Company entered into an at-the-market equity offering sales agreement with Jefferies LLC (“Jefferies”) and Stifel, Nicolaus & Company, Incorporated (“Stifel”) to sell common shares of the Company having aggregate gross proceeds of up to $50,000 from time to time, through an “at-the-market” equity offering program under which Jefferies and Stifel would act as sales agents. As of December 31, 2019, the Company had sold 805,643 common shares under the sales agreement for proceeds of approximately $10,771, net of commissions paid, but excluding transaction expenses. In January 2020, the Company sold an additional 2,446,687 common shares for proceeds of approximately $37,979, net of commissions paid, but excluding transaction expenses. In December 2019, in connection with the License and Collaboration Agreement with Neurocrine Biosciences (the "Neurocrine Collaboration Agreement"), the Company executed a Share Purchase Agreement ("SPA") pursuant to which the Company issued 1,408,847 common shares for an aggregate purchase price of $ 20,000 , or $ 14.196 per common share, which represents a premium of $ 3,333 when measured at fair value on the date of issuance. These common shares are subject to lock-up restrictions and standstill agreement for a period of two years . 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 13a. In January 2020, the Company entered into an underwriting agreement with Jefferies, Stifel and Guggenheim Securities, LLC, relating to an underwritten public offering of 3,750,000 common shares sold by the Company at a public offering price of $16.00 per common share, and granted the underwriters an option for a period of 30 days to purchase up to an additional 562,500 common shares. The public offering was completed on January 27, 2020, and the Company received net proceeds of $56,700, net of underwriting discounts and commissions, but before offering expenses. The underwriters exercised their option in full in February 2020 and the Company received additional net proceeds of $8,460, net of underwriting discounts and commissions, but before offering expenses. In August 2020, the Company entered into an at-the-market equity offering sales agreement with Jefferies and Stifel to sell common shares of the Company having aggregate gross proceeds of up to $ , from time to time, through an “at-the-market” equity offering program under which Jefferies and Stifel would act as sales agents. As of December 31, 2020, common shares have been sold under the sales agreement. As of March 1, 2021, the Company sold 733,000 common shares for proceeds of approximately $10,720, net of commissions paid, but excluding estimated transaction expenses. (b) Authorized share capital: The Company’s authorized share capital consists of an unlimited number of common and preferred shares without par value. (c) Stock-based compensation: The Company has three equity incentive plans: (i) a pre-existing stock option plan (the “Amended and Restated Stock Option Plan”), (ii) the 2014 Equity Incentive Plan (the “2014 Plan”) which was amended and restated in June 2020, and (iii) the 2019 Inducement Equity Incentive Plan (the “2019 Inducement Plan”). The Amended and Restated Stock Option Plan provided for the grant of stock options for the purchase of common shares to directors, officers, employees and consultants prior to the Company’s initial public offering. The stock options granted under the Amended and Restated Stock Option Plan vest on a graduated basis over a four-year period or less and each option’s maximum term is ten years. The 2014 Plan replaced the Amended and Restated Stock Option Plan. No further options will be granted under the Company’s Amended and Restated Stock Option Plan. The Amended and Restated Stock Option Plan will continue to govern the stock options granted thereunder. In June 2014, the shareholders of the Company approved the 2014 Plan, which was replaced in June 2020 by the Amended and Restated 2014 Equity Incentive Plan (the “Amended and Restated 2014 Plan”). The Amended and Restated 2014 Plan governs all options granted under the 2014 Plan. In September 2019, the board of directors of the Company adopted the 2019 Inducement Plan and, subject to the adjustment provisions of the 2019 Inducement Plan, reserved 400,000 of the Company’s common shares for issuance pursuant to equity awards granted under the 2019 Inducement Plan. The 2019 Inducement Plan was adopted without shareholder approval in accordance with the applicable Nasdaq Listing Rules. The 2019 Inducement Plan provided for the grant of equity-based awards, including share options, share appreciation rights, restricted share awards, restricted share unit awards and performance share awards, and its terms are substantially similar to the Company’s Amended and Restated 2014 Plan, including with respect to treatment of equity awards in the event of a “merger” or “change of control” as defined under the 2019 Inducement Plan, but with such other terms and conditions intended to comply with the Nasdaq inducement award exception or to comply with the Nasdaq acquisition and merger exception. The 2019 Inducement Plan was terminated in connection with the shareholder approval of the Amended and Restated 2014 Plan. No further options will be granted under the 2019 Inducement Plan, and the 2019 Inducement Plan will continue to govern the options granted thereunder. In June 2020, the shareholders of the Company approved the Amended and Restated 2014 Plan, amending certain provisions of the Company’s 2014 Plan. The Amended and Restated 2014 Plan continues to permit the grant of stock-based compensation awards to directors, officers, employees and consultants of the Company and the issuance of restricted shares, restricted share units, share appreciation rights and performance shares. Under the Amended and Restated 2014 Plan, options granted generally vest on a graduated basis over a four-year period or less. The exercise price of the options is determined by the board of directors but must at least be equal to the fair market value of the common shares on the date of grant. Options may be exercised over a maximum term of ten years. The annual share increase provision of the 2014 Plan was eliminated and the number of common shares available for issuance was increased by 4,000,000 over the existing share reserve under the 2014 Plan. The number of common shares that can be issued through restricted share awards, restricted share unit awards, or performance share awards was amended to be limited to 1,000,000 common shares, in the aggregate. Other amendments were made to terms of the 2014 Plan with respect to repricing, change of control and payment of dividends and other distributions. As of December 31, 2020, a total of 3,841,942 common shares remain available for issuance pursuant to the Amended and Restated 2014 Plan. Summary of stock option activity is as follows: Number of Weighted Average Exercise Price Aggregate Options CAD $ U.S. $ Intrinsic Outstanding, December 31, 2018 2,671,906 9.49 6.96 3,483 Granted 1,225,575 12.49 9.43 Exercised (1) (266,157 ) 5.56 4.24 1,594 Forfeited, cancelled or expired (97,088 ) 16.36 12.41 Outstanding, December 31, 2019 3,534,236 10.29 7.90 19,618 Granted 1,482,250 16.10 11.75 Exercised (1) (171,812 ) 7.60 5.76 1,535 Forfeited, cancelled or expired (85,677 ) 16.87 13.04 Outstanding, December 31, 2020 4,758,997 11.59 9.10 30,464 Exercisable, December 31, 2020 2,422,560 9.84 7.73 19,060 (1) During the year ended December 31, 2020, 26,513 (2019 – 36,174) stock options were exercised for the same number of common shares in exchange for cash. In the same period, the Company issued 87,197 (2019 – 137,843) common shares for the cashless exercise of 145,299 (2019 – 229,983) stock options. The following table summarizes the stock options outstanding and exercisable at December 31, 2020: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number of Options Exercisable Weighted Exercise Price U.S. $ (years) CAD $ U.S. $ CAD $ U.S. $ $2.10 - $5.35 970,895 5.20 4.81 3.78 813,220 4.64 3.65 $5.36 - $9.18 954,108 5.50 10.00 7.85 896,370 10.07 7.91 $9.19 - $9.52 1,097,873 8.71 12.02 9.44 461,065 12.02 9.44 $9.53 - $11.72 1,302,419 9.26 14.65 11.50 3,488 12.63 9.92 $11.73 - $18.70 433,702 6.47 19.92 15.64 248,417 21.95 17.24 4,758,997 7.30 11.59 9.10 2,422,560 9.84 7.73 At December 31, 2020, stock options outstanding and exercisable had a weighted average remaining contractual life of 7.30 years and 5.71 years, respectively. A summary of the Company’s non-vested stock option activity and related information for the year ended December 31, 2020 is as follows: Number of Options Weighted Average Grant Date Fair CAD $ USD $ Non-vested, January 1, 2020 1,588,210 7.17 5.51 Granted 1,482,250 9.50 7.46 Vested (688,590 ) 6.84 5.37 Forfeited or cancelled (45,433 ) 7.43 5.83 Non-vested, December 31, 2020 2,336,437 8.64 6.78 The aggregate fair value of options vested during the year ended December 31, 2020 was $3,698 (2019 – $3,255). The fair value of stock options at the date of grant is estimated using the Black-Scholes option-pricing model which requires multiple subjective inputs. The risk-free interest rate of the options is based on the U.S. Treasury yield curve in effect at the date of grant for a term similar to the expected term of the option. The expected volatility is based on the historical volatility of the Company’s common shares calculated based on a period of time commensurate with the expected term assumption. Expected life assumptions are based on the Company’s historical data. The dividend yield is based on the fact that the Company has never paid cash dividends and has no present intention to pay cash dividends. Forfeitures are recognized as they occur. The weighted-average option pricing assumptions are as follows: Year Ended December 31, 2020 2019 Average risk-free interest rate 0.72 % 1.77 % Expected volatility 68 % 69 % Average expected term (in years) 6.79 6.86 Expected dividend yield 0.00 % 0.00 % Weighted average fair value of options granted $ 7.46 $ 6.23 Stock-based compensation expense is classified in the consolidated statements of operations and comprehensive loss as follows: Year Ended December 31, 2020 2019 Research and development expenses $ 1,936 $ 1,283 General and administrative expenses 3,741 1,661 $ 5,677 $ 2,944 As of December 31, 2020, the unrecognized stock-based compensation expense related to the non-vested stock options was $13,571, which is expected to be recognized over a weighted-average period of 2.59 years. (d) Exchange agreement with certain funds affiliated with BVF Partners L.P. (collectively, “BVF”): In March 2018, the Company and BVF entered into an exchange agreement pursuant to which the Company issued to BVF 2,868,000 Series 1 Preferred Shares in exchange for 2,868,000 common shares which were subsequently cancelled by the Company. The Company filed articles of amendment creating an unlimited number of Series 1 Preferred Shares. The Series 1 Preferred Shares are convertible into common shares on a one-for-one basis subject to the holder, together with its affiliates, beneficially owning no more than 9.99% of the total number of common shares issued and outstanding immediately after giving effect to such conversion (the “Beneficial Ownership Limitation”). The holder may reset the Beneficial Ownership Limitation to a higher or lower number, not to exceed 19.99% of the total number of common shares issued and outstanding immediately after giving effect to such conversion, upon providing written notice to the Company which will be effective 61 days after delivery of such notice. Each Series 1 Preferred Share is also convertible into one common share at any time at the Company’s option without payment of additional consideration, provided that prior to any such conversion, the holder, together with its affiliates, beneficially owns less than 5.00% of the total number of common shares issued and outstanding and such conversion will not result in the holder, together with its affiliates, beneficially holding more than 5.00% of the total number of common shares issued and outstanding immediately after giving effect to such conversion. In the event of a change of control, holders of Series 1 Preferred Shares shall be issued one common share for each outstanding Series 1 Preferred Share held immediately prior to the change of control (without regard to the Beneficial Ownership Limitation), and following such conversion, will be entitled to receive the same kind and amount of securities, cash or property that a holder of common shares is entitled to receive in connection with such change of control. The Series 1 Preferred Shares rank 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 are entitled to vote together with the common shares on an as-converted basis and as a single class, subject in the case of each holder of the Series 1 Preferred Shares to the Beneficial Ownership Limitation. Any Series 1 Preferred Shares that are ineligible to be converted into common shares due to the Beneficial Ownership Limitation, measured as of a given record date that applies for a shareholder meeting or ability to act by written consent, shall be deemed to be non-voting securities of the Company. Holders of Series 1 Preferred Shares are entitled to receive dividends (without regard to the Beneficial Ownership Limitation) on the same basis as the holders of common shares. The Company may not redeem the Series 1 Preferred Shares. The Company recorded the issuance of Series 1 Preferred Shares and corresponding cancellation of common shares at $7.61 per share, the estimated weighted average cost at which BVF acquired the common shares. The Series 1 Preferred Shares are 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 of the Company. BVF was a related party of the Company prior to the closing of the exchange agreement, and continues to be a related party as of December 31, 2020 and thereafter. |
Concentrations of Market Risk
Concentrations of Market Risk | 12 Months Ended |
Dec. 31, 2020 | |
Risks And Uncertainties [Abstract] | |
Concentration of market risk | 12. Concentrations of market risk: (a) Foreign currency risk: At December 31, 2020, the Company had U.S. dollar denominated cash and cash equivalents and marketable securities of $161,847 (2019 – $129,838) and Canadian denominated cash and cash equivalents and marketable securities of CAD$19,282 (2019 – The Company faces foreign currency exchange rate risk in part, as a result of entering into transactions denominated in currencies other than U.S. dollars, particularly those denominated in Canadian dollars. The Company also holds non-U.S. dollar denominated cash and cash equivalents, marketable securities, accounts receivable and accounts payable, which are denominated in Canadian dollars Changes in foreign currency exchange rates can create significant foreign exchange gains or losses to the Company. The Company’s current foreign currency risk is with the Canadian dollar, as a majority of non-U.S. dollar denominated expenses are denominated in Canadian dollars and a portion of cash and cash equivalents and marketable securities are held in Canadian dollars. The Company does not currently hedge its exposure and thus assumes the risk of future gains or losses on the amounts of Canadian dollars held . (b) Interest Rate Risk : At December 31, 2020, the Company had cash and cash equivalents and marketable securities of $176,997. The Company’s interest rate risk is primarily attributable to its cash and cash equivalents and marketable securities. The Company believes that it does not have any material exposure to changes in the fair value of these assets as a result of changes in interest rates due to the short term nature of cash and cash equivalents and marketable securities. The Company does not enter into investments for trading or speculative purposes and has not used any derivative financial instruments to manage interest rate exposure. |
Collaboration Agreements
Collaboration Agreements | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaboration agreements | 13. Collaboration agreements: The Company has entered into a number of collaboration agreements under which it may have received non-refundable upfront payments. Each arrangement is assessed in accordance with ASC 606 under the five-step model as described in note 3j. The Company generally recognizes revenue from non-refundable upfront payments over the estimated term of the performance obligation or period in which the underlying benefit is transferred to the customer. If non-refundable license fees have value to the customer on a standalone basis, separate from the undelivered performance obligations, they are recognized upon delivery. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Research and development milestones in the Company’s collaboration agreements may include the following types of events: • completion of pre-clinical research and development work leading to selection of product candidates; • initiation of Phase 1, Phase 2 or Phase 3 clinical trials; and • achievement of certain other scientific, clinical data or development events. Regulatory milestone payments may include the following types of events: • filing of regulatory applications for marketing approval in the U.S., Europe or Japan, including investigational new drug applications and new drug applications; and • marketing approval in a major market, such as the U.S., Europe or Japan. Commercialization milestone payments may include payments triggered by annual product sales that achieve pre-specified thresholds. The Company evaluates each arrangement that includes research and development and sales-based milestone payments to determine whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. Milestone payments that are not within the control of the Company are not considered probable of being achieved. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. The transaction price is then allocated to each performance obligation on a relative standalone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such milestones, and if necessary, adjusts its estimate of the overall transaction price. Revenue was as follows for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Neurocrine Biosciences: Recognition of the transaction price $ 26,810 $ 2,881 Research and development services 5,356 448 Flexion: Recognition of the transaction price — 3,000 Milestone payment — 500 Total collaboration revenue $ 32,166 $ 6,829 (a) Neurocrine Biosciences license and collaboration agreement: In December 2019, the Company entered into the Neurocrine Collaboration Agreement with Neurocrine Biosciences to establish a collaboration under which the parties will identify, research and develop sodium channel inhibitors. At execution of the agreement, Neurocrine Biosciences paid the Company an upfront fee of $50,000, which included a $30,000 payment in cash and a $20,000 equity investment in the Company. For additional information regarding the equity investment, refer to note 11a. The Company is eligible to receive pre-commercial and commercial milestone payments with respect to the licensed products totaling up to an additional $1,692,500, comprised of (a) up to $25,000 upon the achievement of milestones related to Investigational New Drug (“IND”) or IND equivalent acceptance for NBI-921352, with 55% of the amount in the form of an equity investment in the Company at a 15% premium to the Company's 30-day volume weighted average price at that time, subject to Neurocrine Biosciences’ common share ownership of the Company being below 19.9%, (b) 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 (c) up to $600,000 in additional sales-based milestone payments for multiple products. In addition, the Company is eligible to receive royalties on net sales in and outside the U.S., ranging from (a) for NBI-921352, a low double-digit percentage to a mid-teen percentage and a high-single digit percentage to low double-digit percentage, respectively; (b) for DTCs, a high-single digit percentage to a low double-digit percentage and a mid-single digit percentage to a high-single digit percentage, respectively; and (c) for Research Compounds, a mid-single digit percentage to a high-single digit percentage and a tiered mid-single digit percentage, respectively. Royalty rates are subject to customary reductions. The Company has an option to co-fund 50% of the development costs of NBI-921352 or another product candidate in the U.S., exercisable upon achievement of certain milestones, in exchange for increased U.S. royalties. The Company has not exercised this option as of December 31, 2020. The Company and Neurocrine Biosciences will collaborate on the conduct of two collaboration programs: (a) a joint research collaboration to discover, identify and preclinically develop Research Compounds (the “Research Program”) and (b) a collaborative development program for NBI-921352 and two DTCs selected by the joint steering committee The agreement includes the following performance obligations: (i) an exclusive license to NBI-921352 with associated technology and know-how transfer, (ii) an exclusive license to the DTCs with associated know-how transfer, (iii) a license to Research Compounds and research services under the Research Program, (iv) development services under the Initial Development Program for NBI-921352, and (v) development services under the Initial Development Program for the DTCs. The license to the Research Compounds and the research services under the Research Program are considered a single performance obligation as Neurocrine Biosciences cannot benefit from such a license on its own or from other resources commonly available in the industry, without the corresponding research services due to the unique and specialized expertise of the Company that is not readily available in the marketplace. Given the current development phase of the Research Compounds, the performance obligation and related revenue has been linked entirely to the performance of research services. At execution of the agreement, the transaction price consisted of the $30,000 upfront consideration received in cash and a premium of $3,333 on the $20,000 equity investment in the Company measured at fair value on the date of issuance. The Company also considered the following elements in determining the overall transaction price: • Under the arrangement, the Company is entitled to funding for certain full-time equivalent and external costs incurred by the Company under performance obligations (iii) and (iv). The arrangement consideration related to the services under performance obligations (iii) and (iv) to be performed on behalf of Neurocrine Biosciences were excluded from the initial transaction price allocation because the consideration and performance are contingent upon Neurocrine Biosciences requesting performance of the services and these services are priced at an estimated fair value. • None of the at-risk substantive performance milestones, including development, regulatory and sales-based milestones, were included in the transaction price, as all milestone amounts are outside the control of the Company and contingent upon Neurocrine Biosciences’ efforts and success in future clinical trials. Any consideration related to sales-based royalties will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to Neurocrine Biosciences and therefore have also been excluded from the transaction price. The Company will re-evaluate the transaction price at each reporting period and as uncertain events are resolved or other changes in circumstances occur. The total transaction price of $33,333 was allocated to performance obligation (v) based on its estimated standalone selling price determined based on internal development plans and budget, with the balance allocated to performance obligations (i) and (ii) by the residual approach. The residual approach was used as standalone selling prices, including market data, for equivalent performance obligations were not available. The allocation of the transaction price requires significant management judgment. The Company allocated the transaction price as follows: $28,807 to performance obligations (i) and (ii) which were delivered and transferred concurrently and eight quarter Any changes to estimates will be recognized in the period in which they change as a cumulative catch up. During the year ended December 31, 2020, the Company recognized $32,166 of revenue NBI-921352 NBI-921352 (b) Flexion definitive agreement: In September 2019, the Company entered into an agreement with Flexion pursuant to which Flexion acquired all rights with respect to XEN402, and a related compound (collectively “XEN402”), including certain regulatory documentation, intellectual property rights, reports, data and all quantities of XEN402, now known as FX301, owned or controlled by the Company. ( c ) Genentech collaborative research and license agreement: In December 2011, the Company entered into a collaborative research and license agreement with Genentech and its affiliate, F. Hoffman-La Roche Ltd. to discover and develop selective oral inhibitors of Nav1.7 for the treatment of pain. Pursuant to this agreement, the Company granted Genentech a worldwide exclusive license to develop and commercialize compounds directed to Nav1.7 and products incorporating such compounds for all uses. The Company also granted Genentech a worldwide non-exclusive license to diagnostic products for the purpose of developing or commercializing such compounds. Under the terms of the agreement, Genentech paid the Company an upfront fee of $10,000. Genentech also provided funding to the Company for certain of the Company’s full-time equivalents performing the research collaboration plan, which concluded in December 2016. The Company received and recorded a $5,000 milestone payment in 2013 for the selection of a compound for development and an $8,000 payment in 2014 upon the approval by Health Canada of the clinical trial application. No additional milestone payments or royalties have been received to date. The Company is eligible to receive pre-commercial and commercial milestone payments with respect to the licensed products totaling up to an additional $613,000, comprised of up to $45,500 in pre-clinical and clinical milestone payments, up to $387,500 in regulatory milestone payments, and up to $180,000 in sales-based milestone payments for multiple products and indications. In addition, the Company is eligible to receive royalties based on net sales of the licensed products, which range from a mid single-digit percentage to ten percent for small-molecule inhibitors for the timeframe that such products are covered by the licensed patents and a low single-digit percentage thereafter until the date that is ten years after first commercial sale on a country-by-country basis for a period of ten years from first commercial sale on a country-by-country basis At execution of the collaborative research and license agreement with Genentech, the transaction price included only the $10,000 upfront consideration received. None of the at-risk substantive performance milestones, including research and development and sales-based milestones, were included in the transaction price, as all milestone amounts are outside the control of the Company and contingent upon Genentech’s efforts and success in future clinical trials. Any consideration related to sales-based royalties will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to Genentech and therefore have also been excluded from the transaction price. The Company will continue to re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur. The collaborative research and license agreement with Genentech was amended multiple times, in May 2015, November 2015, March 2016, May 2017, July 2018 and September 2018, to either extend the term of the research program or to provide the Company with greater flexibility in developing compounds that target Nav1.6. Pursuant to the current amendment, the Company obtained a non-exclusive, irrevocable, perpetual, world-wide, sublicensable license under the know-how forming part of the Genentech intellectual property developed under the Nav1.7 collaboration that is necessary or useful to make, use, sell, offer for sale, and import compounds from the Company’s Nav1.6 program that are above a certain potency on Nav1.7 and were conceived prior to a certain date and products containing those compounds. The Company’s license from Genentech includes commercialization rights but the Company is restricted from developing or commercializing the Company’s Nav1.6 compounds below a certain potency on Nav1.7 and conceived prior to a certain date in the field of epilepsy and any of the Company’s Nav1.6 compounds conceived prior to a certain date, regardless of their potency on Nav1.7, in the field of pain. In exchange for the rights granted to the Company under this amendment, Genentech is eligible to receive a low single-digit percentage, tiered royalty on net sales of the Company’s Nav1.6 compounds conceived prior to a certain date, including XEN901, now known as NBI-921352, for a period of ten years from first commercial sale on a country-by-country basis. In accordance with the Neurocrine Collaboration Agreement, the Company remains solely responsible for all payments to Genentech with respect to certain Nav1.6 compounds, including NBI-921352, licensed to Neurocrine Biosciences. Pursuant to the amendment, Genentech was granted a royalty-free, non-exclusive, world-wide license under the Company’s Nav1.6 intellectual property to make, use, sell, offer for sale and import compounds below a certain potency on Nav1.7 and products containing those compounds for all uses and indications except epilepsy. In March 2014, the Company entered into a new agreement with Genentech for pain genetics, which focused on identifying genetic targets associated with rare phenotypes where individuals have an inability to perceive pain or where individuals have non-precipitated spontaneous severe pain. Pursuant to the terms of this agreement, any intellectual property arising out of the collaboration is jointly owned by the Company and Genentech. The Company also granted Genentech a time-limited, exclusive right of first negotiation on a target-by-target basis to form joint drug discovery collaborations. Under the terms of this agreement, Genentech paid an upfront payment of $1,500 and two $250 Pursuant to the terms of the Company’s agreement with the Memorial University of Newfoundland, the Company must pay to the Memorial University of Newfoundland certain milestone payments, a single-digit percentage of net sales for pain products the Company sells directly and a single-digit percentage of royalties received for sales of pain products by Genentech or Flexion. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. 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 which the Company had committed to using Medpace non-exclusively for clinical development services over the five year term of the agreement which ended in August 2020. The Company committed to $7,000 of services over the term of the agreement of which $3,349 of services have been received and $3,651 remains committed as of December 31, 2020. As the Company did not meet the commitment to retain Medpace for $7,000 of services prior to August 2020, the Company is required to provide Medpace the exclusive right to perform all subsequent outsourced clinical development work until such $7,000 commitment has been satisfied, subject to the availability of appropriate Medpace resources and reasonable service rates. If the Company decides not to retain Medpace for the provision of clinical development services, the Company may satisfy its obligations under the priority access agreement by paying Medpace an amount equal to half of the unsatisfied portion. The Company intends to continue to utilize Medpace for clinical development work where appropriate in order to fulfill the remaining commitment; therefore, no liability has been recognized as of December 31, 2020 with respect to the unsatisfied portion under the priority access agreement. (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 to support the development of XEN007 (c) 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. Future potential payments to 1st Order related to the XEN1101 program include up to $1,200 in clinical development milestones, up to $ in regulatory milestones, and $500 in other milestones. To date, the Company has paid $300 based on progress against these milestones. There are no royalty obligations to 1st Order. (d) License agreement: In July 2017, the Company entered into a license agreement with a pharmaceutical company for the access and use of certain regulatory documents to support the development of XEN007. Future potential payments include $2,000 in clinical development milestones, up to $7,000 in regulatory milestones, plus a low-to-mid single-digit percentage royalty on net sales of any products developed and commercialized under the agreement. No (e) Guarantees and indemnifications: The Company has entered into license and research agreements with third parties that include indemnification provisions that are customary in the industry. These indemnification provisions generally require the Company to compensate the other party for certain damages and costs incurred as a result of third party claims or damages arising from these transactions. The maximum amount of potential future indemnification is unlimited; however, the Company currently holds commercial and product liability insurance. This insurance limits the Company’s exposure and may enable it to recover a portion of any future amounts paid. Historically, the Company has not made any indemnification payments under such agreements and the Company believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations for any period presented. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income taxes: Income tax recovery varies from the amounts that would be computed by applying the expected Canadian federal and provincial statutory income tax rate of 27% (2019 – 27%) to loss before income taxes as shown in the following table: Year Ended December 31, 2020 2019 Computed recoveries at Canadian federal and provincial tax rates $ (7,856 ) $ (11,237 ) Change in valuation allowance 7,821 11,148 Investment tax credits earned (1,689 ) (1,522 ) Tax attributes expired/utilized 764 678 Non-deductible expenditures 1,135 477 Other (432 ) 433 Income tax recovery $ (257 ) $ (23 ) Income tax recovery for the years ended December 31, 2020 and 2019 arose from the operations of Xenon Pharmaceuticals USA Deferred income tax assets and liabilities result from the temporary differences between the amount of assets and liabilities recognized for financial statement and income tax purposes. The significant components of the Company’s net deferred income tax assets are as follows: December 31, 2020 2019 Scientific research and experimental development pool $ 29,580 $ 27,531 Investment tax credits 25,411 24,384 Non-capital losses 35,803 23,603 Depreciable assets 6,635 5,983 Deferred financing fees 1,689 972 Deferred revenue 983 8,223 Other 533 347 Less - valuation allowance (100,111 ) (90,805 ) Net deferred income tax assets $ 523 $ 238 The realization of deferred income tax assets is dependent upon the generation of sufficient taxable income during future periods in which the temporary differences are expected to reverse. The valuation allowance is reviewed on a quarterly basis and if the assessment of the “more likely than not” criteria changes, the valuation allowance is adjusted accordingly. A full valuation allowance continues to be applied against deferred income tax assets in Canada as the Company has assessed that the realization of such assets does not meet the “more likely than not” criteria. Deferred income tax assets recorded on the consolidated balance sheets as of December 31, 2020 and 2019 result from the temporary differences between the amounts of assets and liabilities recognized for financial statement and income tax purposes related to the operations of Xenon Pharmaceuticals USA Inc. At December 31, 2020, the Company has unclaimed tax deductions for scientific research and experimental development expenditures of $109,556 (2019 – $101,965) with no expiry. At December 31, 2020, the Company has $24,311 (2019 – $22,992) of investment tax credits available to offset federal taxes payable and $7,738 (2019 – $7,675) of provincial tax credits available to offset provincial taxes payable in the future. At December 31, 2020, the Company has non-capital losses, net of uncertain tax positions, carried forward for tax purposes, which are available to reduce taxable income of future years of approximately $132,604 (2019 – $87,417). The investment tax credits and loss carry forwards expire over various years to 2040. As of December 31, 2020, the total amount of the Company’s unrecognized tax benefits of uncertain tax positions were $10,850 (2019 – $10,850). If recognized in future periods, the unrecognized tax benefits would not affect the Company’s effective tax rate. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits within the income tax provision. Interest and penalties have not been accrued at December 31, 2020 as none would be owing on the unrecognized tax benefits due to the availability of non-capital losses to shelter any potential taxable income arising thereon. The Company does not currently expect any significant increases or decreases to these unrecognized tax benefits within 12 months of the reporting date. The Company files income tax returns in Canada and the United States, the jurisdictions in which the Company believes that it is subject to tax. In jurisdictions in which the Company does not believe it is subject to tax and therefore does not file income tax returns, the Company can provide no certainty that tax authorities in those jurisdictions will not subject one or more tax years (since the inception of the Company) to examination. Further, while the statute of limitations in each jurisdiction where an income tax return has been filed generally limits the examination period, as a result of loss carry-forwards, the limitation period for examination generally does not expire until several years after the loss carry-forwards are utilized. Other than routine audits by tax authorities for tax credits and tax refunds that the Company claims, the Company is not aware of any other material income tax examination currently in progress by any taxing jurisdiction. Tax years ranging from 2002 to 2019 remain subject to examinations in Canada and the United States. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of estimates | (a) Use of estimates: The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant areas of estimates include, but are not limited to, revenue recognition including estimated timing of completion of performance obligations and the determination of stock-based compensation. These estimates and assumptions take into account historical and forward looking factors that the Company believes are reasonable, including but not limited to the potential impacts arising from the novel coronavirus (“COVID-19”) and pandemic public and private sector policies and initiatives aimed at reducing its transmission. The full extent to which the pandemic may have a direct or indirect impact on our business, results of operations and financial condition, including revenue, expenses, research and clinical development plans and timelines, depends on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19, as well as the economic impact on local, regional, national and global markets. Actual results could differ materially from these estimates. Estimates and assumptions are reviewed quarterly. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. |
Cash and cash equivalents | (b) Cash and cash equivalents: Cash equivalents are highly liquid investments that are readily convertible into cash with terms to maturity of three months or less when acquired. Cash equivalents are recorded at cost plus accrued interest. The carrying value of these cash equivalents approximates their fair value. |
Marketable Securities | (c) Marketable securities: Marketable securities are investments with original maturities exceeding three months, and the Company classified these securities as current assets as the Company has the intent and ability to convert these securities into cash without penalty within the next 12 months. Marketable securities accrue interest based on a fixed interest rate for the term. The carrying value of marketable securities is recorded at quoted prices in active markets, which approximates their fair value. |
Intellectual property | (d) Intellectual property: The costs incurred in establishing and maintaining patents for intellectual property developed internally are expensed in the period incurred. |
Property, plant and equipment | (e) Property, plant and equipment: Property, plant and equipment are stated at cost less accumulated depreciation and/or accumulated impairment losses, if any. Repairs and maintenance costs are expensed in the period incurred. Property, plant and equipment are amortized over their estimated useful lives using the straight-line method based on the following rates: Asset Rate Research equipment 5 years Office furniture and equipment 5 years Computer equipment 3 years Leasehold improvements Over the lesser of lease term or estimated useful life |
Impairment of long-lived assets | (f) Impairment of long-lived assets: The Company monitors its long-lived assets for indicators of impairment. If such indicators are present, the Company assesses the recoverability of affected assets by determining whether the carrying value of such assets is less than the sum of the undiscounted future cash flows of the assets. If such assets are found not to be recoverable, the Company measures the amount of such impairment by comparing the carrying value of the assets to the fair value of the assets, with the fair value generally determined based on the present value of the expected future cash flows associated with the assets. No impairment of long-lived assets was noted during the years ended December 31, 2020 and 2019. |
Leases | (g) Leases: Leases classified as operating leases are recorded as lease liabilities based on the present value of minimum lease payments over the lease term, discounted using the lessor’s rate implicit in the lease or the Company’s incremental borrowing rate, if the lessor’s implicit rate is not readily determinable. The lease term includes all periods covered by renewal and termination options where the Company is reasonably certain to exercise the renewal options or not to exercise the termination options. Corresponding right-of-use assets are recognized consisting of the lease liabilities, initial direct costs and any lease incentive payments. Lease liabilities are drawn down as lease payments are made and right-of-use assets are depreciated over the term of the lease. Operating lease expenses are recognized on a straight-line basis over the term of the lease, consisting of interest accrued on the lease liability and depreciation of the right-of-use asset, adjusted for changes in index-based variable lease payments in the period of change. Lease payments on short-term operating leases with lease terms twelve months or less are expensed as incurred. |
Concentration of credit risk and of significant customers | (h) Concentration of credit risk and of significant customers: Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents were held at major financial institutions in Canada and the United States. Such deposits may be in excess of insured limits in the event of non-performance by the institutions; however, the Company does not anticipate non-performance. Neurocrine Biosciences, Inc. ("Neurocrine Biosciences") accounted for 100% of revenue recognized for the year ended December 31, 2020. Neurocrine Biosciences and Flexion Therapeutics, Inc. (“Flexion”) accounted for 48% and 51% of revenue recognized for the year ended December 31, 2019, respectively. |
Financial instruments and fair value | (i) Financial instruments and fair value: We measure certain financial instruments and other items at fair value. To determine the fair value, the Company use s 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. |
Revenue recognition | (j) Revenue recognition: The Company recognizes the amount of revenue to which it expects to be entitled, for the transfer of promised goods or services to customers under a five-step model: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when or as a performance obligation is satisfied. The Company generates revenue primarily through collaboration agreements. Such agreements may require the Company to deliver various rights and/or services, including intellectual property rights or licenses and research and development services. Under such collaboration agreements, the Company is generally eligible to receive non-refundable upfront payments, funding for research and development services, milestone payments, and royalties. In contracts where the Company has more than one performance obligation to provide its customer with goods or services, each performance obligation is evaluated to determine whether it is distinct based on whether (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available and (ii) the good or service is separately identifiable from other promises in the contract. The consideration under the contract is then allocated between the distinct performance obligations based on their respective relative standalone selling prices. The estimated standalone selling price of each deliverable reflects the Company’s best estimate of what the selling price would be if the deliverable was regularly sold on a standalone basis and is determined by reference to market rates for the good or service when sold to others or by using an adjusted market assessment approach if selling price on a standalone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control is transferred to the customer for the related goods or services. Consideration in exchange for research and development services performed by the Company on behalf of the licensee is recognized upon performance of such activities at rates consistent with prevailing market rates. Consideration associated with at-risk substantive performance milestones, including sales-based milestones, is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur. Sales-based royalties received in connection with licenses of intellectual property are subject to a specific exception in the revenue standards, whereby the consideration is not included in the transaction price and recognized in revenue until the customer’s subsequent sales or usages occur. |
Research and development costs | (k) Research and development costs: Research and development costs are expensed in the period incurred. Certain development activity costs, such as pre-clinical costs, manufacturing costs and clinical trial costs, are a component of research and development costs and include fees paid to contract research organizations, contract development and manufacturing organizations, investigators and other vendors who conduct certain product development activities on behalf of the Company. The amount of expenses recognized in a period related to service agreements is based on the work performed using the accrual basis of accounting. Vendors generally provide estimates of proportionate performance to allow the Company to determine an appropriate accrual. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered. |
Stock-based compensation | (l) Stock-based compensation: The Company grants stock options to employees, directors and officers pursuant to stock option plans described in note 11c. Employee stock-based compensation expense is measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense, net of actual forfeitures, over the requisite service period with a corresponding increase in additional paid-in capital. Stock-based compensation expense is amortized on a straight-line basis over the requisite service period for the entire award, which is generally the vesting period of the award. Any consideration received on exercise of stock options is credited to share capital. |
Foreign currency translation | (m) Foreign currency translation: The functional and reporting currency of the Company and its subsidiary is the U.S. dollar. Monetary assets and liabilities denominated in a currency other than the U.S. dollar are re-measured into U.S. dollars at the exchange rate prevailing as of the balance sheet date. Non-monetary assets and liabilities acquired in a currency other than U.S. dollars are translated at historical exchange rates prevailing at each transaction date. Revenue and expense transactions are translated at the exchange rates prevailing at each transaction date. Exchange gains and losses on translation are included in the consolidated statements of operations and comprehensive income (loss) as foreign exchange gain (loss). |
Income taxes | (n) Income taxes: Deferred income taxes are recognized for the future tax consequences attributable to differences between the carrying amounts of assets and liabilities and their respective tax bases and net operating loss and credit carryforwards. Deferred income tax assets and liabilities are measured at enacted rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are |
Segment and geographic information | (o) Segment and geographic information: Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Property Plant and Equipment Estimated Useful Lives | Property, plant and equipment are amortized over their estimated useful lives using the straight-line method based on the following rates: Asset Rate Research equipment 5 years Office furniture and equipment 5 years Computer equipment 3 years Leasehold improvements Over the lesser of lease term or estimated useful life |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following: December 31, 2020 2019 Research equipment $ 8,683 $ 6,522 Office furniture and equipment 994 985 Computer equipment 2,641 2,473 Leasehold improvements 6,390 6,370 Less: accumulated depreciation and amortization (15,154 ) (14,690 ) Net book value $ 3,554 $ 1,660 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Cost Components of Operating Lease | The cost components of the operating lease were as follows for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Lease Cost Operating lease expense $ 536 $ 436 Variable lease expense (1) 549 542 Lease Term and Discount Rate Remaining lease term (years) 6.50 2.25 Discount rate 2.45 % 3.75 % (1) Variable lease costs are payments that vary because of changes in facts or circumstances and include common area maintenance and property taxes related to the premises. Variable lease costs are excluded from the calculation of minimum lease payments. |
Future Minimum Lease Payments | Future minimum lease payments as of December 31, 2020 were as follows: Year ending December 31: 2021 $ 811 2022 694 2023 569 2024 569 2025 and thereafter 1,423 Total future minimum lease payments $ 4,066 Less: imputed interest (284 ) Less: future lease incentives reasonably certain of use (467 ) Present value of lease liabilities $ 3,315 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: December 31, 2020 2019 Trade payables $ 3,041 $ 2,473 Employee compensation, benefits, and related accruals 2,859 2,892 Consulting and contracted research 4,738 3,104 Professional fees 167 154 Other 69 195 Total $ 10,874 $ 8,818 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Activity | Summary of stock option activity is as follows: Number of Weighted Average Exercise Price Aggregate Options CAD $ U.S. $ Intrinsic Outstanding, December 31, 2018 2,671,906 9.49 6.96 3,483 Granted 1,225,575 12.49 9.43 Exercised (1) (266,157 ) 5.56 4.24 1,594 Forfeited, cancelled or expired (97,088 ) 16.36 12.41 Outstanding, December 31, 2019 3,534,236 10.29 7.90 19,618 Granted 1,482,250 16.10 11.75 Exercised (1) (171,812 ) 7.60 5.76 1,535 Forfeited, cancelled or expired (85,677 ) 16.87 13.04 Outstanding, December 31, 2020 4,758,997 11.59 9.10 30,464 Exercisable, December 31, 2020 2,422,560 9.84 7.73 19,060 (1) During the year ended December 31, 2020, 26,513 (2019 – 36,174) stock options were exercised for the same number of common shares in exchange for cash. In the same period, the Company issued 87,197 (2019 – 137,843) common shares for the cashless exercise of 145,299 (2019 – 229,983) stock options. |
Summary of Stock Option Outstanding and Exercisable | The following table summarizes the stock options outstanding and exercisable at December 31, 2020: Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number of Options Exercisable Weighted Exercise Price U.S. $ (years) CAD $ U.S. $ CAD $ U.S. $ $2.10 - $5.35 970,895 5.20 4.81 3.78 813,220 4.64 3.65 $5.36 - $9.18 954,108 5.50 10.00 7.85 896,370 10.07 7.91 $9.19 - $9.52 1,097,873 8.71 12.02 9.44 461,065 12.02 9.44 $9.53 - $11.72 1,302,419 9.26 14.65 11.50 3,488 12.63 9.92 $11.73 - $18.70 433,702 6.47 19.92 15.64 248,417 21.95 17.24 4,758,997 7.30 11.59 9.10 2,422,560 9.84 7.73 |
Schedule of Nonvested Stock Option Activity | A summary of the Company’s non-vested stock option activity and related information for the year ended December 31, 2020 is as follows: Number of Options Weighted Average Grant Date Fair CAD $ USD $ Non-vested, January 1, 2020 1,588,210 7.17 5.51 Granted 1,482,250 9.50 7.46 Vested (688,590 ) 6.84 5.37 Forfeited or cancelled (45,433 ) 7.43 5.83 Non-vested, December 31, 2020 2,336,437 8.64 6.78 |
Fair Value Assumptions for Stock Options | The weighted-average option pricing assumptions are as follows: Year Ended December 31, 2020 2019 Average risk-free interest rate 0.72 % 1.77 % Expected volatility 68 % 69 % Average expected term (in years) 6.79 6.86 Expected dividend yield 0.00 % 0.00 % Weighted average fair value of options granted $ 7.46 $ 6.23 |
Stock Based Compensation Expenses | Stock-based compensation expense is classified in the consolidated statements of operations and comprehensive loss as follows: Year Ended December 31, 2020 2019 Research and development expenses $ 1,936 $ 1,283 General and administrative expenses 3,741 1,661 $ 5,677 $ 2,944 |
Collaboration Agreements (Table
Collaboration Agreements (Table) | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule Of Collaboration Revenue | Revenue was as follows for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Neurocrine Biosciences: Recognition of the transaction price $ 26,810 $ 2,881 Research and development services 5,356 448 Flexion: Recognition of the transaction price — 3,000 Milestone payment — 500 Total collaboration revenue $ 32,166 $ 6,829 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Recovery | Income tax recovery varies from the amounts that would be computed by applying the expected Canadian federal and provincial statutory income tax rate of 27% (2019 – 27%) to loss before income taxes as shown in the following table: Year Ended December 31, 2020 2019 Computed recoveries at Canadian federal and provincial tax rates $ (7,856 ) $ (11,237 ) Change in valuation allowance 7,821 11,148 Investment tax credits earned (1,689 ) (1,522 ) Tax attributes expired/utilized 764 678 Non-deductible expenditures 1,135 477 Other (432 ) 433 Income tax recovery $ (257 ) $ (23 ) |
Schedule of Net Deferred Income Tax Assets | The significant components of the Company’s net deferred income tax assets are as follows: December 31, 2020 2019 Scientific research and experimental development pool $ 29,580 $ 27,531 Investment tax credits 25,411 24,384 Non-capital losses 35,803 23,603 Depreciable assets 6,635 5,983 Deferred financing fees 1,689 972 Deferred revenue 983 8,223 Other 533 347 Less - valuation allowance (100,111 ) (90,805 ) Net deferred income tax assets $ 523 $ 238 |
Nature of the business (Details
Nature of the business (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Accumulated deficit | $ 278,492 | $ 249,655 |
Net loss | $ 28,837 | $ 41,595 |
Basis of presentation (Details)
Basis of presentation (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Xenon Pharmaceuticals USA Inc. [Member] | |
Basis of Presentation [Line Items] | |
Date of incorporation | Dec. 2, 2016 |
Significant Accounting Polici_4
Significant Accounting Policies - Property Plant and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Research Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office Furniture and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Leasehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Over the lesser of lease term or estimated useful life |
Significant Accounting Polici_5
Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | |
Significant Accounting Policies [Line Items] | ||
Impairment of Long-Lived Assets | $ | $ 0 | $ 0 |
Number of operating segment | Segment | 1 | |
Total Revenues [Member] | Neurocrine Biosciences [Member] | Product Concentration Risk [Member] | ||
Significant Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 48.00% |
Total Revenues [Member] | Flexion [Member] | Product Concentration Risk [Member] | ||
Significant Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 51.00% |
Net Income (Loss) Per Common (D
Net Income (Loss) Per Common (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Preferred shares, issued | 1,016,000 | 1,016,000 |
Series1 Preferred Shares | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Preferred shares, issued | 1,016,000 | 1,016,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Less: accumulated depreciation and amortization | $ (15,154) | $ (14,690) |
Property, plant and equipment, net (note 7) | 3,554 | 1,660 |
Research Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | 8,683 | 6,522 |
Office Furniture and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | 994 | 985 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | 2,641 | 2,473 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | $ 6,390 | $ 6,370 |
Leases (Details)
Leases (Details) - Burnaby, British Columbia [Member] | 12 Months Ended |
Dec. 31, 2020Lease | |
Lessee Lease Description [Line Items] | |
Number of operating leases | 1 |
Operating lease term | 21 months |
Operating lease extension term | 5 years |
Operating lease expiration date | Jun. 30, 2022 |
Operating lease, description | The Company has one operating lease for research laboratories and office space in Burnaby, British Columbia. In October 2020, the Company entered into a lease amendment for a 21–month committed term from October 1, 2020 to June 30, 2022. A renewal option for a portion of the facility for a 5-year term that is reasonably certain of exercise has been included in the determination of the right-of-use asset and lease liability as of December 31, 2020. |
Leases - Schedule of Cost Compo
Leases - Schedule of Cost Components of Operating Lease (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Leases [Abstract] | |||
Operating lease expense | $ 536 | $ 436 | |
Variable lease expense | [1] | $ 549 | $ 542 |
Remaining lease term (years) | 6 years 6 months | 2 years 3 months | |
Discount rate | 2.45% | 3.75% | |
[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 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 | $ 811 |
2022 | 694 |
2023 | 569 |
2024 | 569 |
2025 and thereafter | 1,423 |
Total future minimum lease payments | 4,066 |
Less: imputed interest | (284) |
Less: future lease incentives reasonably certain of use | (467) |
Present value of lease liabilities | $ 3,315 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 3,041 | $ 2,473 |
Employee compensation, benefits, and related accruals | 2,859 | 2,892 |
Consulting and contracted research | 4,738 | 3,104 |
Professional fees | 167 | 154 |
Other | 69 | 195 |
Total | $ 10,874 | $ 8,818 |
Term Loan (Details)
Term Loan (Details) - USD ($) $ / shares in Units, $ in Thousands | May 31, 2020 | Aug. 31, 2018 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Loss on repayment of term loan (note 10) | $ (988) | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, final payment fee | $ 1,008 | ||
Debt instrument prepayment fee | $ 225 | ||
Loss on repayment of term loan (note 10) | $ 988 | ||
Warrants outstanding to purchase common stock | 40,000 | ||
Warrants exercise price per common share | $ 9.79 | ||
Term Loan [Member] | Loan Agreement [Member] | Silicon Valley Bank [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount of debt instrument | $ 15,500 | ||
Debt instrument, payment commencing period | 2018-08 | ||
Debt instrument, interest only payment end date | Mar. 31, 2020 | ||
Debt instrument principal repayment period | 30 months | ||
Debt instrument, maturity date | Sep. 1, 2022 | ||
Debt instrument, final payment fee percentage | 6.50% | ||
Term Loan [Member] | Loan Agreement [Member] | Silicon Valley Bank [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, floating interest rate | 0.50% |
Share Capital (Details)
Share Capital (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 01, 2021 | Aug. 31, 2020 | Jun. 30, 2020 | Feb. 29, 2020 | Jan. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2019 | Sep. 30, 2019 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share Capital [Line Items] | ||||||||||||
Sale proceeds of common shares | $ 102,456 | $ 27,396 | ||||||||||
Amount offered for issuance of common stock | $ 102,456 | 27,396 | ||||||||||
Options Outstanding Weighted Average Remaining Contractual Life in Years | 7 years 3 months 18 days | |||||||||||
Options Exercisable Weighted Average Remaining Contractual Life in Years | 5 years 8 months 15 days | |||||||||||
Aggregate fair value of options vested | $ 3,698 | $ 3,255 | ||||||||||
Unrecognized stock-based compensation cost | $ 13,571 | |||||||||||
Unrecognized stock-based compensation expected to be recognized over a period | 2 years 7 months 2 days | |||||||||||
Series1 Preferred Shares | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Conversion of shares | 1,852,000 | |||||||||||
Common Shares [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Conversion of shares | 1,852,000 | |||||||||||
BVF Partners L.P [Member] | Exchange Agreement [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Estimated weighted average cancellation price per share of common stock | $ 7.61 | |||||||||||
BVF Partners L.P [Member] | Exchange Agreement [Member] | Series1 Preferred Shares | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Shares issued | 2,868,000 | |||||||||||
Preferred shares convertible into common shares | one-for-one | |||||||||||
Common shares issued on conversion of preferred stock | 1 | |||||||||||
Maximum beneficial ownership limitation percentage for conversion of common stock issued and outstanding | 9.99% | |||||||||||
Maximum beneficial ownership limitation upon notice, percentage for conversion of common stock issued and outstanding | 19.99% | |||||||||||
Maximum beneficial percentage hold for conversion of number Of common stock issued and outstanding | 5.00% | |||||||||||
Minimum beneficial percentage hold for conversion of number Of common stock issued and outstanding. | 5.00% | |||||||||||
BVF Partners L.P [Member] | Exchange Agreement [Member] | Common Shares [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Shares cancelled | 2,868,000 | |||||||||||
2019 Inducement Plan [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Common shares reserved for issuance | 400,000 | |||||||||||
Amended and Restated 2014 Plan [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Common shares reserved for issuance | 4,000,000 | 3,841,942 | ||||||||||
Number of restricted share awards, restricted share unit awards or performance awards available for issue | 1,000,000 | |||||||||||
Common Shares [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Shares issued | 6,759,187 | 2,214,490 | ||||||||||
Amount offered for issuance of common stock | $ 102,456 | $ 27,396 | ||||||||||
Common Shares [Member] | Neurocrine Collaboration Agreement [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Sale proceeds of common shares | $ 20,000 | |||||||||||
Shares issued | 1,408,847 | |||||||||||
Aggregate purchase price per share | $ 14.196 | $ 14.196 | ||||||||||
Common stock purchase price premium at fair value | $ 3,333 | |||||||||||
Lock-up restrictions and standstill agreement period | 2 years | |||||||||||
Jefferies and Stifel [Member] | At-The-Market Equity Offering [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Sale proceeds of common shares | $ 37,979 | $ 10,771 | ||||||||||
Jefferies and Stifel [Member] | At-The-Market Equity Offering [Member] | Subsequent Event [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Sale proceeds of common shares | $ 10,720 | |||||||||||
Jefferies and Stifel [Member] | At-The-Market Equity Offering [Member] | Maximum [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Sale proceeds of common shares | $ 50,000 | |||||||||||
Amount offered for issuance of common stock | $ 100,000 | |||||||||||
Jefferies and Stifel [Member] | At-The-Market Equity Offering [Member] | Common Shares [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Shares issued | 0 | 2,446,687 | 805,643 | |||||||||
Jefferies and Stifel [Member] | At-The-Market Equity Offering [Member] | Common Shares [Member] | Subsequent Event [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Shares issued | 733,000 | |||||||||||
Jefferies L L C Stifel Nicolaus Company Incorporated And Guggenheim Securities L L C | Underwritten Public Offering | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Sale proceeds of common shares | $ 8,460 | $ 56,700 | ||||||||||
Jefferies L L C Stifel Nicolaus Company Incorporated And Guggenheim Securities L L C | Underwritten Public Offering | Common Shares [Member] | ||||||||||||
Share Capital [Line Items] | ||||||||||||
Shares issued | 562,500 | 3,750,000 | ||||||||||
Shares price | $ 16 |
Share Capital - Stock Option Ac
Share Capital - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / shares$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2018USD ($) | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||
Number of Options Outstanding, Beginning balance | 3,534,236 | 2,671,906 | |||||
Number of Options, Granted | 1,482,250 | 1,225,575 | |||||
Number of Options, Exercised | [1] | (171,812) | (266,157) | ||||
Number of Options, Forfeited, cancelled or expired | (85,677) | (97,088) | |||||
Number of Options Outstanding, Ending balance | 4,758,997 | 3,534,236 | |||||
Number of Options Exercisable, End of period | 2,422,560 | 2,422,560 | |||||
Weighted Average Exercise Price Outstanding, Beginning balance | (per share) | $ 7.90 | $ 10.29 | $ 6.96 | $ 9.49 | |||
Weighted Average Exercise Price, Granted | (per share) | 11.75 | 16.10 | 9.43 | 12.49 | |||
Weighted Average Exercise Price, Exercised | (per share) | [1] | 5.76 | 7.60 | 4.24 | 5.56 | ||
Weighted Average Exercise Price, Forfeited, cancelled and expired | (per share) | 13.04 | 16.87 | 12.41 | 16.36 | |||
Weighted Average Exercise Price Outstanding, Ending balance | (per share) | 9.10 | $ 11.59 | $ 7.90 | $ 10.29 | |||
Weighted Average Exercise Price, Exercisable Ending balance | (per share) | $ 7.73 | $ 7.73 | $ 9.84 | ||||
Aggregate Intrinsic Value, Outstanding | $ | $ 30,464 | $ 30,464 | $ 19,618 | $ 19,618 | $ 3,483 | ||
Aggregate Intrinsic Value, Exercised | $ | [1] | 1,535 | $ 1,594 | ||||
Aggregate Intrinsic Value, Exercisable, Ending balance | $ | $ 19,060 | $ 19,060 | |||||
[1] | During the year ended December 31, 2020, 26,513 (2019 – 36,174) stock options were exercised for the same number of common shares in exchange for cash. In the same period, the Company issued 87,197 (2019 – 137,843) common shares for the cashless exercise of 145,299 (2019 – 229,983) stock options. |
Share Capital - Stock Option _2
Share Capital - Stock Option Activity (Parenthetical) (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Stock Options exercised for Number of Common Shares for cash | 26,513 | 36,174 |
Common stock issued for cashless exercise | 87,197 | 137,843 |
Cashless exercise of stock options | 145,299 | 229,983 |
Share Capital - Summary of Stoc
Share Capital - Summary of Stock Option Outstanding and Exercisable (Details) | 12 Months Ended | |||||
Dec. 31, 2020$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2018$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of Options Outstanding | 4,758,997 | 4,758,997 | 3,534,236 | 3,534,236 | 2,671,906 | 2,671,906 |
Options Outstanding Weighted Average Remaining Contractual Life in Years | 7 years 3 months 18 days | |||||
Options Outstanding, Weighted Average Exercise Price | (per share) | $ 9.10 | $ 11.59 | $ 7.90 | $ 10.29 | $ 6.96 | $ 9.49 |
Number of Options Exercisable | 2,422,560 | 2,422,560 | ||||
Options exercisable, Weighted Average Exercise Price | (per share) | $ 7.73 | $ 9.84 | ||||
Range of Exercise Prices - $2.10 - $5.35 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exercise price range, lower range limit | $ / shares | 2.10 | |||||
Exercise price range, upper range limit | $ / shares | $ 5.35 | |||||
Number of Options Outstanding | 970,895 | 970,895 | ||||
Options Outstanding Weighted Average Remaining Contractual Life in Years | 5 years 2 months 12 days | |||||
Options Outstanding, Weighted Average Exercise Price | (per share) | $ 3.78 | $ 4.81 | ||||
Number of Options Exercisable | 813,220 | 813,220 | ||||
Options exercisable, Weighted Average Exercise Price | (per share) | $ 3.65 | $ 4.64 | ||||
Range of Exercise Prices - $5.36 - $9.18 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exercise price range, lower range limit | $ / shares | 5.36 | |||||
Exercise price range, upper range limit | $ / shares | $ 9.18 | |||||
Number of Options Outstanding | 954,108 | 954,108 | ||||
Options Outstanding Weighted Average Remaining Contractual Life in Years | 5 years 6 months | |||||
Options Outstanding, Weighted Average Exercise Price | (per share) | $ 7.85 | $ 10 | ||||
Number of Options Exercisable | 896,370 | 896,370 | ||||
Options exercisable, Weighted Average Exercise Price | (per share) | $ 7.91 | $ 10.07 | ||||
Range of Exercise Prices - $9.19 - $9.52 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exercise price range, lower range limit | $ / shares | 9.19 | |||||
Exercise price range, upper range limit | $ / shares | $ 9.52 | |||||
Number of Options Outstanding | 1,097,873 | 1,097,873 | ||||
Options Outstanding Weighted Average Remaining Contractual Life in Years | 8 years 8 months 15 days | |||||
Options Outstanding, Weighted Average Exercise Price | (per share) | $ 9.44 | $ 12.02 | ||||
Number of Options Exercisable | 461,065 | 461,065 | ||||
Options exercisable, Weighted Average Exercise Price | (per share) | $ 9.44 | $ 12.02 | ||||
Range of Exercise Prices - $9.53 - $11.72 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exercise price range, lower range limit | $ / shares | 9.53 | |||||
Exercise price range, upper range limit | $ / shares | $ 11.72 | |||||
Number of Options Outstanding | 1,302,419 | 1,302,419 | ||||
Options Outstanding Weighted Average Remaining Contractual Life in Years | 9 years 3 months 3 days | |||||
Options Outstanding, Weighted Average Exercise Price | (per share) | $ 11.50 | $ 14.65 | ||||
Number of Options Exercisable | 3,488 | 3,488 | ||||
Options exercisable, Weighted Average Exercise Price | (per share) | $ 9.92 | $ 12.63 | ||||
Range of Exercise Prices - $11.73 - $18.70 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Exercise price range, lower range limit | $ / shares | 11.73 | |||||
Exercise price range, upper range limit | $ / shares | $ 18.70 | |||||
Number of Options Outstanding | 433,702 | 433,702 | ||||
Options Outstanding Weighted Average Remaining Contractual Life in Years | 6 years 5 months 19 days | |||||
Options Outstanding, Weighted Average Exercise Price | (per share) | $ 15.64 | $ 19.92 | ||||
Number of Options Exercisable | 248,417 | 248,417 | ||||
Options exercisable, Weighted Average Exercise Price | (per share) | $ 17.24 | $ 21.95 |
Share Capital - Summary of Non-
Share Capital - Summary of Non-Vested Stock Option Activity (Details) | 12 Months Ended | |||
Dec. 31, 2020$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2019$ / sharesshares | |
Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares Roll Forward | ||||
Number of Options, Non-vested, Beginning balance | 1,588,210 | 1,588,210 | ||
Number of Options, Granted | 1,482,250 | 1,482,250 | 1,225,575 | 1,225,575 |
Number of Options, Vested | (688,590) | (688,590) | ||
Number of Options, Forfeited or cancelled | (45,433) | (45,433) | ||
Number of Options, Non-vested, Ending balance | 2,336,437 | 2,336,437 | 1,588,210 | 1,588,210 |
Weighted Average Grant Date Fair Value, Non-vested, Beginning balance | (per share) | $ 5.51 | $ 7.17 | ||
Weighted Average Grant Date Fair Value, Granted | (per share) | 7.46 | 9.50 | $ 6.23 | |
Weighted Average Grant Date Fair Value, Vested | (per share) | 5.37 | 6.84 | ||
Weighted Average Grant Date Fair Value, Forfeited or cancelled | (per share) | 5.83 | 7.43 | ||
Weighted Average Grant Date Fair Value, Non-vested, Ending balance | (per share) | $ 6.78 | $ 8.64 | $ 5.51 | $ 7.17 |
Share Capital - Fair Value Assu
Share Capital - Fair Value Assumptions for Stock Options (Details) | 12 Months Ended | ||
Dec. 31, 2020$ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2019$ / shares | |
Fair Value Assumptions For Stock Options [Abstract] | |||
Average risk-free interest rate | 0.72% | 0.72% | 1.77% |
Expected volatility | 68.00% | 68.00% | 69.00% |
Average expected term (in years) | 6 years 9 months 14 days | 6 years 9 months 14 days | 6 years 10 months 9 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Weighted average fair value of options granted | (per share) | $ 7.46 | $ 9.50 | $ 6.23 |
Share Capital - Stock Based Com
Share Capital - Stock Based Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation | $ 5,677 | $ 2,944 |
Research and development [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation | 1,936 | 1,283 |
General and administrative [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation | $ 3,741 | $ 1,661 |
Concentrations of Market Risk (
Concentrations of Market Risk (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) | |
Interest Rate Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Cash and cash equivalents and marketable securities | $ 176,997 | |||
Interest rate risk, description | The Company does not enter into investments for trading or speculative purposes and has not used any derivative financial instruments to manage interest rate exposure. A 10% change in interest rates during any of the periods presented would not have had a material impact on the Company's consolidated financial statements. | |||
Foreign Currency Exchange Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Cash and cash equivalents and marketable securities | $ 161,847 | $ 19,282 | $ 129,838 | $ 14,962 |
Collaboration Agreements - Sche
Collaboration Agreements - Schedule Of Collaboration Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Total collaboration revenue | $ 32,166 | $ 6,829 |
Neurocrine Biosciences [Member] | Collaboration Revenue [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Recognition of the transaction price | 26,810 | 2,881 |
Research and development services | 5,356 | 448 |
Total collaboration revenue | $ 32,166 | |
Flexion [Member] | Collaboration Revenue [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Recognition of the transaction price | 3,000 | |
Milestone payment | 500 | |
Neurocrine Biosciences And Flexion [Member] | Collaboration Revenue [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Total collaboration revenue | $ 6,829 |
Collaboration Agreements (Detai
Collaboration Agreements (Details) - USD ($) | Feb. 28, 2021 | Dec. 31, 2019 | Sep. 30, 2019 | Jul. 31, 2017 | Sep. 30, 2015 | Mar. 31, 2014 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Revenue | $ 32,166,000 | $ 6,829,000 | |||||||||
Accounts receivable | $ 813,000 | 1,822,000 | 813,000 | ||||||||
Neurocrine Biosciences [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Accounts receivable | 1,346,000 | ||||||||||
Deferred revenue | 3,642,000 | ||||||||||
Neurocrine Biosciences [Member] | Collaboration Revenue [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Revenue | 32,166,000 | ||||||||||
Neurocrine Biosciences [Member] | License and Collaboration Agreement [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Proceeds from upfront fee | 50,000,000 | ||||||||||
Upfront payment received in cash | 30,000,000 | 30,000,000 | |||||||||
Upfront payment received in equity investment | 20,000,000 | 20,000,000 | |||||||||
Potential Milestone Payments Receivable | $ 1,692,500,000 | $ 1,692,500,000 | |||||||||
Percentage of option to co-fund development costs upon achievement of certain milestones | 50.00% | ||||||||||
Collaborate agreement premium related to equity investment | $ 3,333,000 | ||||||||||
Revenue | 33,333,000 | ||||||||||
Neurocrine Biosciences [Member] | License and Collaboration Agreement [Member] | Exclusive License to NBI921352 and Exclusive License to the DTCs [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Transaction price allocated to performance obligations | 28,807,000 | ||||||||||
Neurocrine Biosciences [Member] | License and Collaboration Agreement [Member] | Development Services Under the Initial Development Program for the DTCs [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Transaction price allocated to performance obligations | 4,526,000 | ||||||||||
Neurocrine Biosciences [Member] | License and Collaboration Agreement [Member] | Common Shares [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Maximum ownership limitation percentage for equity issuable | 19.90% | 19.90% | |||||||||
Neurocrine Biosciences [Member] | License and Collaboration Agreement [Member] | Regulatory Milestone [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Potential Milestone Payments Receivable | $ 1,067,500,000 | $ 1,067,500,000 | |||||||||
Neurocrine Biosciences [Member] | License and Collaboration Agreement [Member] | Sales Based Milestone [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Potential Milestone Payments Receivable | 600,000,000 | 600,000,000 | |||||||||
Neurocrine Biosciences [Member] | IND Milestone [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Potential Milestone Payments Receivable | $ 25,000,000 | $ 25,000,000 | |||||||||
Percentage of milestone payment in the form of equity | 55.00% | ||||||||||
Percentage of premium on weighted average price | 15.00% | ||||||||||
License and Collaboration Agreement [Member] | Collaboration Revenue [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Revenue | 32,166,000 | ||||||||||
License and Collaboration Agreement [Member] | Exclusive License to NBI921352 and Exclusive License to the DTCs [Member] | Collaboration Revenue [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Revenue | 25,926,000 | ||||||||||
License and Collaboration Agreement [Member] | Development Services Under the Initial Development Program for the DTCs [Member] | Collaboration Revenue [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Revenue | 884,000 | ||||||||||
License and Collaboration Agreement [Member] | Research And Development Funding | Collaboration Revenue [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Revenue | 5,356,000 | ||||||||||
Flexion [Member] | Asset Purchase Agreement [Member] | XEN402 [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Proceeds from upfront fee | $ 3,000,000 | ||||||||||
Proceeds from initiation of first GLP toxicology study | 500,000 | ||||||||||
Flexion [Member] | Asset Purchase Agreement [Member] | XEN402 [Member] | Subsequent Event [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Food and drug administration milestone payment accepted | $ 1,000,000 | ||||||||||
Flexion [Member] | Asset Purchase Agreement [Member] | Eligible to Receive CMC Development and Regulatory Milestone Payments [Member] | XEN402 [Member] | Maximum [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Potential Milestone Payments Receivable | 7,000,000 | ||||||||||
Flexion [Member] | Asset Purchase Agreement [Member] | Future Clinical Development And Global Regulatory Approval Milestone Payments [Member] | XEN402 [Member] | Maximum [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Potential Milestone Payments Receivable | 40,750,000 | ||||||||||
Flexion [Member] | Asset Purchase Agreement [Member] | Commercial Milestone Payments [Member] | XEN402 [Member] | Maximum [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Potential Milestone Payments Receivable | $ 75,000,000 | ||||||||||
Genentech [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Proceeds from upfront fee | $ 1,500,000 | ||||||||||
Potential Milestone Payments Receivable | $ 1,500,000 | $ 613,000,000 | |||||||||
Food and drug administration milestone payment accepted | $ 250,000 | $ 250,000 | |||||||||
Additional milestone payments or royalties received | $ 0 | ||||||||||
Genentech [Member] | GDC-0276 [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Proceeds from upfront fee | 10,000,000 | ||||||||||
Genentech [Member] | Regulatory Milestone [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Potential Milestone Payments Receivable | 387,500,000 | ||||||||||
Genentech [Member] | Sales Based Milestone [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Potential Milestone Payments Receivable | 180,000,000 | ||||||||||
Genentech [Member] | Development [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Food and drug administration milestone payment accepted | $ 5,000,000 | ||||||||||
Genentech [Member] | Health Canada [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Food and drug administration milestone payment accepted | $ 8,000,000 | ||||||||||
Genentech [Member] | Pre-clinical And Clinical Milestone [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Potential Milestone Payments Receivable | 45,500,000 | ||||||||||
Genentech [Member] | Licensing Agreements [Member] | |||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||||||||
Proceeds from upfront fee | $ 10,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2020 | Jul. 31, 2017 | Aug. 31, 2015 | Mar. 31, 2017 | Dec. 31, 2020 | |
License, Manufacture and Supply Agreement [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Royalty obligation description | Under the terms of the agreement, the Company will be required to pay a low single-digit percentage royalty on net sales of any products developed and commercialized under the agreement | ||||
Asset Purchase Agreement [Member] | 1st Order Pharmaceuticals, Inc. [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Milestone payment paid | $ 300,000 | ||||
Royalty obligations | 0 | ||||
Asset Purchase Agreement [Member] | 1st Order Pharmaceuticals, Inc. [Member] | Clinical Development Milestones [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Future potential payments | 1,200,000 | ||||
Asset Purchase Agreement [Member] | 1st Order Pharmaceuticals, Inc. [Member] | Regulatory Milestone [Member] | Maximum [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Future potential payments | 6,000,000 | ||||
Asset Purchase Agreement [Member] | 1st Order Pharmaceuticals, Inc. [Member] | Other Milestones [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Future potential payments | $ 500,000 | ||||
License Agreement [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Royalty obligation description | low-to-mid single-digit percentage royalty on net sales of any products developed and commercialized under the agreement | ||||
Amount accrued to date based on progress against milestones | $ 0 | ||||
License Agreement [Member] | Clinical Development Milestones [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Future potential payments | $ 2,000,000 | ||||
License Agreement [Member] | Regulatory Milestone [Member] | Maximum [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Future potential payments | $ 7,000,000 | ||||
Priority Access Agreement with Medpace Inc. [Member] | |||||
Commitments and Contingencies [Line Items] | |||||
Service agreement, term | 5 years | ||||
Committed service obligation | $ 7,000,000 | 3,651,000 | |||
Contractual obligation paid | $ 3,349,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Tax Credit Carryforward [Line Items] | ||
Canadian federal and provincial tax rates | 27.00% | 27.00% |
Unclaimed Tax Deductions Related To Scientific Research And Experimental Development Expenditures | $ 109,556 | $ 101,965 |
Non-capital losses carried forward for tax purposes | $ 132,604 | 87,417 |
Tax Credit Carry forward, Expiration Date | Dec. 31, 2040 | |
Unrecognized tax benefits of uncertain tax positions | $ 10,850 | 10,850 |
Canada and United States Revenue Agency [Member] | Latest Tax Year [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax year open for income tax examination | 2019 | |
Canada and United States Revenue Agency [Member] | Earliest Tax Year [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax year open for income tax examination | 2002 | |
Investment Tax credit [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit available to offset taxes payable | $ 24,311 | 22,992 |
Provincial Tax Credit [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit available to offset taxes payable | $ 7,738 | $ 7,675 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Recovery (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Computed recoveries at Canadian federal and provincial tax rates | $ (7,856) | $ (11,237) |
Change in valuation allowance | 7,821 | 11,148 |
Investment tax credits earned | (1,689) | (1,522) |
Tax attributes expired/utilized | 764 | 678 |
Non-deductible expenditures | 1,135 | 477 |
Other | (432) | 433 |
Income tax recovery | $ (257) | $ (23) |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Scientific research and experimental development pool | $ 29,580 | $ 27,531 |
Investment tax credits | 25,411 | 24,384 |
Non-capital losses | 35,803 | 23,603 |
Depreciable assets | 6,635 | 5,983 |
Deferred financing fees | 1,689 | 972 |
Deferred revenue | 983 | 8,223 |
Other | 533 | 347 |
Less - valuation allowance | (100,111) | (90,805) |
Net deferred income tax assets | $ 523 | $ 238 |