Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 05, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | AVIR | |
Entity Registrant Name | ATEA PHARMACEUTICALS, INC. | |
Entity Central Index Key | 0001593899 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 83,257,591 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-39661 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-0574869 | |
Entity Address, Address Line One | 225 Franklin Street | |
Entity Address, Address Line Two | Suite 2100 | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02110 | |
City Area Code | 857 | |
Local Phone Number | 284-8891 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Former Address | ||
Document Information [Line Items] | ||
Entity Address, Address Line One | 125 Summer Street | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02110 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 705,545 | $ 764,375 |
Prepaid expenses and other current assets | 7,687 | 8,028 |
Total current assets | 713,232 | 772,403 |
Property and equipment, net | 762 | 23 |
Restricted cash | 305 | 305 |
Operating lease right-of-use assets, net | 2,890 | 161 |
Total assets | 717,189 | 772,892 |
Current liabilities | ||
Accounts payable | 3,657 | 4,534 |
Accrued expenses and other current liabilities | 24,840 | 52,152 |
Current portion of operating lease liabilities | 113 | 197 |
Total current liabilities | 28,610 | 56,883 |
Operating lease liabilities | 2,763 | |
Income taxes payable | 5,932 | 5,932 |
Total liabilities | 37,305 | 62,815 |
Commitments and contingencies (see Note 11) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value per share; 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2022, and December 31, 2021 | ||
Common stock, $0.001 par value; 300,000,000 shares authorized as of March 31, 2022 and December 31, 2021; 83,257,591 and 83,102,730 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 83 | 83 |
Additional paid-in capital | 665,848 | 653,964 |
Retained earnings | 13,953 | 56,030 |
Total stockholders’ equity | 679,884 | 710,077 |
Total liabilities and stockholders’ equity | $ 717,189 | $ 772,892 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 83,257,591 | 83,102,730 |
Common stock, shares outstanding | 83,257,591 | 83,102,730 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Collaboration revenue | $ 65,985 | |
Operating expenses | ||
Research and development | $ 29,633 | 26,571 |
General and administrative | 12,542 | 8,759 |
Total operating expenses | 42,175 | 35,330 |
Income (loss) from operations | (42,175) | 30,655 |
Interest income and other, net | 98 | 58 |
Income (loss) before income taxes | (42,077) | 30,713 |
Net income (loss) and comprehensive income (loss) | $ (42,077) | $ 30,713 |
Net income (loss) per share attributable to common stockholders | ||
Basic | $ (0.51) | $ 0.37 |
Diluted | $ (0.51) | $ 0.34 |
Weighted-average common shares outstanding | ||
Basic | 83,176,408 | 82,577,836 |
Diluted | 83,176,408 | 89,099,075 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earning/ (Accumulated Deficit) |
Balance at Dec. 31, 2020 | $ 547,801 | $ 82 | $ 612,879 | $ (65,160) |
Balance, shares at Dec. 31, 2020 | 82,436,937 | |||
Issuance of common stock upon exercise of stock options | 471 | $ 1 | 470 | |
Issuance of common stock upon exercise of stock options, shares | 300,000 | |||
Stock-based compensation expense | 7,273 | 7,273 | ||
Net income (loss) | 30,713 | 30,713 | ||
Balance at Mar. 31, 2021 | 586,258 | $ 83 | 620,622 | (34,447) |
Balance, shares at Mar. 31, 2021 | 82,736,937 | |||
Balance at Dec. 31, 2021 | 710,077 | $ 83 | 653,964 | 56,030 |
Balance, shares at Dec. 31, 2021 | 83,102,730 | |||
Issuance of common stock upon exercise of stock options | 223 | 223 | ||
Issuance of common stock upon exercise of stock options, shares | 154,861 | |||
Stock-based compensation expense | 11,661 | 11,661 | ||
Net income (loss) | (42,077) | (42,077) | ||
Balance at Mar. 31, 2022 | $ 679,884 | $ 83 | $ 665,848 | $ 13,953 |
Balance, shares at Mar. 31, 2022 | 83,257,591 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income (loss) | $ (42,077) | $ 30,713 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Stock-based compensation expense | 11,661 | 7,273 |
Non-cash lease expense | 16 | |
Depreciation and amortization expense | 7 | 7 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 275 | 1,151 |
Other assets | (356) | |
Accounts payable | (877) | 3,732 |
Accrued expenses and other liabilities | (28,014) | 6,628 |
Deferred revenue | (65,985) | |
Net cash used in operating activities | (59,009) | (16,837) |
Cash flows from investing activities | ||
Additions to property and equipment | (44) | |
Net cash used in investing activities | (44) | |
Cash flows from financing activities | ||
Proceeds from issuance of common stock for exercise of stock options | 223 | 471 |
Net cash provided by financing activities | 223 | 471 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (58,830) | (16,366) |
Cash, cash equivalents and restricted cash at the beginning of period | 764,680 | 850,224 |
Cash, cash equivalents and restricted cash at the end of period | 705,850 | 833,858 |
Cash, cash equivalents and restricted cash at the end of period: | ||
Cash and cash equivalents | 705,545 | 833,751 |
Restricted cash | 305 | 107 |
Cash, cash equivalents and restricted cash at the end of period | 705,850 | $ 833,858 |
Supplemental disclosure of noncash financing activities | ||
Property and equipment purchases unpaid at period end | 702 | |
Right of use assets obtained in exchange for operating lease liabilities | $ 2,938 |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business | 1. Nature of Business Background Atea Pharmaceuticals, Inc., together with its subsidiary Atea Pharmaceuticals Securities Corporation, is referred to on a consolidated basis as “the Company”. The Company is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing antiviral therapeutics to improve the lives of patients suffering from severe viral infections. Risks and Uncertainties The Company is subject to risks and uncertainties common to clinical-stage biopharmaceutical companies. These risks include, but are not limited to, potential failure of preclinical and clinical studies, uncertainties associated with research and development activities generally, competition from technical innovations of others, dependence upon key personnel, compliance with governmental regulations, the need to obtain marketing approval for any product candidate that the Company may discover and develop, the need to gain broad acceptance among patients, payers and health care providers to successfully commercialize any product for which marketing approval is obtained and the need to secure and maintain adequate intellectual property protection for the Company’s proprietary technology and products. Further, the Company is currently dependent on third-party service providers for much of its preclinical research, clinical development and manufacturing activities. Product candidates currently under development will require significant amounts of additional capital, additional research and development efforts, including extensive preclinical and clinical testing and regulatory approval, prior to commercialization. Even if the Company is able to generate revenues from the sale of its product candidates, if approved, it may not become profitable or be able to sustain profitability. If the Company fails to become profitable or is unable to sustain profitability on a continuing basis, then it may be unable to continue its operations at planned levels and be forced to reduce its operations. The Company is also subject to risks associated with the COVID-19 global pandemic, including actual and potential delays associated with certain of its ongoing and anticipated trials, and potential negative impacts on the Company’s business operations and its ability to raise additional capital to finance its operations. The Company may seek additional capital through one or more of a combination of financing through the sale of additional equity securities, debt financing, or funding in connection with any new collaborative relationships it may enter into or other arrangements. There can be no assurance that the Company will be able to obtain such additional funding, on terms acceptable to the Company, on a timely basis or at all. The terms of any financing may adversely affect the holdings or the rights of the Company’s existing stockholders. The Company believes that its cash and cash equivalents of $ 705,545 as of March 31, 2022 will be sufficient to fund its operations as currently planned through at least twelve months from the issuance of this Quarterly Report on Form 10-Q. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The unaudited interim condensed consolidated financial statements of the Company included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) as found in the Accounting Standards Codification (“ASC”), Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such SEC rules and regulations. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2022. Unaudited Interim Financial Information The accompanying condensed consolidated balance sheet as of March 31, 2022, the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2022 and 2021, the condensed consolidated statements of stockholders’ equity for the three months ended March 31, 2022 and 2021, and the condensed consolidated statements of cash flows for the three months ended March 31, 2022 and 2021 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2022, the results of its operations for the three months ended March 31, 2022 and 2021 and its cash flows for the three months ended March 31, 2022 and 2021 . The results for the three months ended March 31, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022, or any other interim period. Use of Estimates The preparation of unaudited financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in these accompanying notes. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors and assumptions that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, which include but are not limited to estimates of accrued research and development expenses, valuation of stock-based awards, valuation of operating lease right-of-use assets and lease liabilities and income taxes. Changes in estimates are recorded in the period in which they become known. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Atea Pharmaceuticals, Inc. and its wholly owned subsidiary, Atea Pharmaceuticals Securities Corporation. All intercompany amounts have been eliminated in consolidation. Significant Accounting Policies There were no changes in the Company’s significant accounting policies as described in the Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022. Reclassification Certain items in the prior year’s condensed consolidated financial statements have been reclassified to conform to the current presentation. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies that the Company adopts as of the specified effective date. The Company does not believe that the adoption of recently issued standards have or may have a material impact on its consolidated financial statements and disclosures. |
Collaboration Revenue
Collaboration Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Collaboration Revenue | 3. Collaboration Revenue Background In October 2020, the Company entered into a License Agreement (the “Roche License Agreement”) with F. Hoffmann-LaRoche Ltd. and Genentech, Inc. (together, “Roche”) under which the Company granted an exclusive license for certain development and commercialization rights related to bemnifosbuvir outside of the United States (other than for certain HCV uses) to Roche. On November 12, 2021, Roche provided the Company with a notice of termination of the Roche License Agreement. Under the terms of the Roche License Agreement, the termination was effective in February 2022. Upon termination, the rights and licenses granted by the Company to Roche under the Roche License Agreement were returned to the Company, resulting in the Company having all rights to continue the clinical development and future commercialization of bemnifosbuvir worldwide. Global development plan activities and related cost sharing between the parties continued through the effective date of the termination. The Company concluded that the notice of termination represented a contract modification for accounting purposes. The Company further concluded that upon receipt of the notice of termination, all of the Company's performance obligations had been completely satisfied. As a result, the Company recognized all remaining deferred revenue as collaboration revenue within the consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2021. The Company classified all revenues recognized under the Roche License Agreement as collaboration revenue within the accompanying consolidated statements of operations and comprehensive income (loss). For the three months ended March 31, 2021, the Company recognized collaboration revenue of $ 65,985 related to the Roche License Agreement. The activities to complete the global development plan were accounted for under ASC 808. Expenses incurred and reimbursements made or received from Roche were accounted for pursuant to ASC 730, Research and Development . As such, the Company was expensing costs as incurred, including any reimbursements made to Roche, and recognizing reimbursement received from Roche as a reduction of research and development expense through the effective date of the termination. For the three months ended March 31, 2022 and 2021, costs reimbursable by Roche, which are reflected as a reduction to operating expenses were $ 845 and $ 3,419 , respectively. The Company recorded research and development expense of $ 9,578 and $ 14,517 during the three months ended March 31, 2022 and 2021, respectively, related to its share of costs incurred by Roche. As of March 31, 2022 and December 31, 2021, the Company recorded accrued expenses of $ 8,733 and $ 10,417 , respectively, related to amounts payable to Roche pursuant to the cost share agreement. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 656,853 $ — $ — $ 656,853 Total cash equivalents $ 656,853 $ — $ — $ 656,853 Fair Value Measurements as of Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 731,767 $ — $ — $ 731,767 Total cash equivalents $ 731,767 $ — $ — $ 731,767 The Company’s assets with fair value categorized as Level 1 within the fair value hierarchy include money market funds. Money market funds are publicly traded mutual funds and are presented as cash equivalents on the unaudited condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021. There were no transfers among Level 1, Level 2 or Level 3 categories in the three months ended March 31, 2022 and 2021. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 5. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: March 31, December 31, Research and development, including manufacturing and clinical expenditures $ 17,280 $ 18,080 License fee - 25,000 Income taxes 2,572 2,572 Payroll and payroll related 1,914 4,209 Professional fees and other 3,074 2,291 Total accrued expenses and other current liabilities $ 24,840 $ 52,152 |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Common Stock | 6. Common Stock At March 31, 2022, the authorized capital of the Company included 300,000,000 shares of common stock, of which 83,257,591 shares of common stock were issued and outstanding. On all matters to be voted upon by the holders of common stock, holders of common stock are entitled to one vote per share. The holders of common stock have no preemptive, redemption or conversion rights. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 7. Stock-based Compensation In October 2020, the Company’s stockholders approved the Company’s 2020 Incentive Award Plan (the “2020 Plan”). The 2020 Plan provided for the initial issuance of up to 7,924,000 shares of common stock and for grant of incentive stock options or other incentive awards to employees, officers, directors and consultants of the Company. The number of shares of common stock that may be issued under the 2020 Plan is also subject to increase on the first day of each calendar year equal to the lesser of i) 5 % of the aggregate number of shares of common stock outstanding on the final day of the immediately preceding calendar year or ii) such smaller number of shares of common stock as is determined by the board of directors. In January 2022 and 2021, the shares of common stock available for issuance under the 2020 Plan were increased by 4,155,136 and 4,130,847 shares, respectively. The 2020 Plan replaced and is the successor of the 2013 Equity Incentive Plan, as amended (the “2013 Plan”). Any cancellation of outstanding option awards to purchase up to 5,982,266 shares of common stock under the 2013 Plan will be made available for grant under 2020 Plan. As of March 31, 2022 there were 8,373,712 shares of common stock remaining available for future issuance under the 2020 Plan. Stock Options During the three months ended March 31, 2022 and 2021, the Company granted 2,900,833 and 2,212,250 options, respectively, to employees with an aggregate grant date fair market value of $ 14,811 and $ 112,471 , respectively. Restricted Stock Units During the three months ended March 31, 2022 , the Company granted 182,350 restricted stock units, to employees with an aggregate grant date fair market value of $ 1,302 . No restricted units were granted during the three months ended March 31, 2021. The restricted stock unit awards vest in three annual installments, the first of which will occur on January 31, 2023. Performance-based Restricted Stock Units During the three months ended March 31, 2022 , the Company granted 742,070 performance-based restricted stock units, to employees with an aggregate grant date fair market value of $ 5,298 . No performance-based restricted stock units were granted during the three months ended March 31, 2021. The performance stock unit awards provide for a performance period from February 1, 2022 through January 31, 2025 to complete up to six defined performance metrics. The percentage of awards eligible to vest will be determined based on the number of metrics achieved during the performance period and may range from 0 % to 200 %. The vesting of any eligible awards will occur in equal installments on January 31, 2025 and January 31, 2026. Stock-based Compensation Expense Stock-based compensation expense by award type included within the unaudited condensed consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Ended 2022 2021 Stock options $ 11,591 $ 7,273 Restricted stock units 70 — Performance-based stock units — — Total stock-based compensation expense $ 11,661 $ 7,273 Stock-based compensation expense is classified as follows: Three Months Ended 2022 2021 Research and development expense $ 5,428 $ 3,198 General and administrative 6,233 4,075 Total stock-based compensation expense $ 11,661 $ 7,273 |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Common Stockholders | 8. Net Income (Loss) Per Share Attributable to Common Stockholders Basic and diluted earnings per share are calculated as follows: Three Months Ended 2022 2021 Net income (loss) $ ( 42,077 ) $ 30,713 Weighted average common shares outstanding, basic 83,176,408 82,577,836 Dilutive effect of outstanding stock options — 6,521,239 Weighted average common shares outstanding, diluted 83,176,408 89,099,075 Net income (loss) per share, basic $ ( 0.51 ) $ 0.37 Net income (loss) per share, diluted $ ( 0.51 ) $ 0.34 Stock options for the purchase of 13,182,944 weighted average shares were excluded from the computation of the net loss per share attributable to common stockholders for the three months ended March 31, 2022 due to net loss during the period as their effect is anti-dilutive . Stock options for the purchase of 1,532,944 weighted average shares were excluded from the computation of diluted net income per share attributable to common stockholders for the three months ended March 31, 2021 because those options had an anti-dilutive impact due to the assumed proceeds per share using the treasury stock method being greater than the average fair value of the Company’s common shares for the period. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | 9. Leases The Company’s building leases are comprised of office space under non-cancelable operating leases. As of March 31, 2022, the Company’s principal office was located at 125 Summer Street in Boston, Massachusetts pursuant to a lease that expires in July 2022 . In July 2021, the Company entered into a lease agreement pursuant to which the Company leased additional office space in Boston, Massachusetts at 225 Franklin Street (the "225 Lease"). The 225 Lease commencement date was January 1, 2022 and the 225 Lease runs through December 31, 2026 . The leases do no t contain any options for renewal or extension. The Company began to occupy the additional space in April 2022. In connection with the 225 Lease commencement, the Company recorded a right-of-use asset and operating lease liability of $ 2,938 and $ 2,873 as of January 1, 2022. Future minimum payments under the Company’s operating leases as of March 31, 2022 were as follows: As of March 31, 2022 2022 $ 706 2023 805 2024 821 2025 838 2026 855 Total lease payments 4,025 Less amount representing implied interest ( 272 ) Less amount representing tenant improvement allowance ( 877 ) Total lease liability $ 2,876 Current portion of operating lease liabilities $ 113 Noncurrent portion of operating lease liabilities $ 2,763 For the three months ended March 31, 2022 and 2021, the Company recorded operating lease costs of $ 232 and $ 76 , respectively relating to its operating lease agreements. The 225 Lease includes a leasehold improvement allowance of $ 877 for certain improvements the Company is constructing in the space. The Company has not received or recorded any amounts related to the improvement allowance as of March 31, 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company recorded no provision for federal or state income taxes for the three months ended March 31, 2022 and 2021, respectively. The Company maintained a full valuation allowance for the three months ended March 31 , 2022 an d 2021 due to uncertainty regarding ability to utilize deferred tax assets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies The Company has an agreement with a consultant that requires payment of a success fee calculated as a percentage of certain product sales, subject to a cumulative maximum payout of $ 5.0 million. This success payment is contingent upon the occurrence of future events and the timing and likelihood of such payment is neither probable nor estimable. Indemnification The Company enters into certain types of contracts that contingently require the Company to indemnify various parties against claims from third parties. These contracts primarily relate to (i) the Company’s bylaws, under which the Company must indemnify directors and executive officers, and may indemnify other officers and employees, for liabilities arising out of their relationship, (ii) contracts under which the Company must indemnify directors and certain officers and consultants for liabilities arising out of their relationship, and (iii) procurement, service or license agreements under which the Company may be required to indemnify vendors, service providers or licensees for certain claims, including claims that may be brought against them arising from the Company’s acts or omissions with respect to the Company’s products, technology, intellectual property or services. From time to time, the Company may receive indemnification claims under these contracts in the normal course of business. In the event that one or more of these matters were to result in a claim against the Company, an adverse outcome, including a judgment or settlement, may cause a material adverse effect on the Company’s future business, operating results or financial condition. It is not possible to determine the maximum potential amount potentially payable under these contracts since the Company has no history of prior indemnification claims and the unique facts and circumstances involved in each particular claim will be determinative. |
Benefit Plan
Benefit Plan | 3 Months Ended |
Mar. 31, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plan | 12. Benefit Plan During the year ended December 31, 2021, the Company implemented a defined contribution plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”). The 401(k) Plan covers substantially all employees who meet minimum age and service requirements. Under the terms of the 401(k) Plan, the Company records matching contributions up to 4 % of each participant’s eligible compensation. During the three months ended March 31, 2022 and 2021 the Company recognized expense of $ 240 and $ 0 relating to matching contributions to the 401(k) Plan. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions During the year ended December 31, 2021, the Company entered into a consulting agreement with an entity controlled by one of its directors. The agreement provides for an annual retainer of $ 110 ; the Company recognized expense in connection with the consulting agreement in the amount of $ 27 and $ 0 , respectively, for the three months ended March 31, 2022 and 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements of the Company included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) as found in the Accounting Standards Codification (“ASC”), Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such SEC rules and regulations. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2022. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying condensed consolidated balance sheet as of March 31, 2022, the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2022 and 2021, the condensed consolidated statements of stockholders’ equity for the three months ended March 31, 2022 and 2021, and the condensed consolidated statements of cash flows for the three months ended March 31, 2022 and 2021 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2022, the results of its operations for the three months ended March 31, 2022 and 2021 and its cash flows for the three months ended March 31, 2022 and 2021 . The results for the three months ended March 31, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022, or any other interim period. |
Use of Estimates | Use of Estimates The preparation of unaudited financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in these accompanying notes. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors and assumptions that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, which include but are not limited to estimates of accrued research and development expenses, valuation of stock-based awards, valuation of operating lease right-of-use assets and lease liabilities and income taxes. Changes in estimates are recorded in the period in which they become known. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Atea Pharmaceuticals, Inc. and its wholly owned subsidiary, Atea Pharmaceuticals Securities Corporation. All intercompany amounts have been eliminated in consolidation. |
Significant Accounting Policies | Significant Accounting Policies There were no changes in the Company’s significant accounting policies as described in the Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022. |
Reclassification | Reclassification Certain items in the prior year’s condensed consolidated financial statements have been reclassified to conform to the current presentation. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies that the Company adopts as of the specified effective date. The Company does not believe that the adoption of recently issued standards have or may have a material impact on its consolidated financial statements and disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on Recurring Basis | The following tables present information about the Company’s financial assets measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 656,853 $ — $ — $ 656,853 Total cash equivalents $ 656,853 $ — $ — $ 656,853 Fair Value Measurements as of Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 731,767 $ — $ — $ 731,767 Total cash equivalents $ 731,767 $ — $ — $ 731,767 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: March 31, December 31, Research and development, including manufacturing and clinical expenditures $ 17,280 $ 18,080 License fee - 25,000 Income taxes 2,572 2,572 Payroll and payroll related 1,914 4,209 Professional fees and other 3,074 2,291 Total accrued expenses and other current liabilities $ 24,840 $ 52,152 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock-based Compensation Expense by Award Type | Stock-based compensation expense by award type included within the unaudited condensed consolidated statements of operations and comprehensive income (loss) was as follows: Three Months Ended 2022 2021 Stock options $ 11,591 $ 7,273 Restricted stock units 70 — Performance-based stock units — — Total stock-based compensation expense $ 11,661 $ 7,273 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense is classified as follows: Three Months Ended 2022 2021 Research and development expense $ 5,428 $ 3,198 General and administrative 6,233 4,075 Total stock-based compensation expense $ 11,661 $ 7,273 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share are calculated as follows: Three Months Ended 2022 2021 Net income (loss) $ ( 42,077 ) $ 30,713 Weighted average common shares outstanding, basic 83,176,408 82,577,836 Dilutive effect of outstanding stock options — 6,521,239 Weighted average common shares outstanding, diluted 83,176,408 89,099,075 Net income (loss) per share, basic $ ( 0.51 ) $ 0.37 Net income (loss) per share, diluted $ ( 0.51 ) $ 0.34 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Summary of Future Minimum Payments under Operating Leases | Future minimum payments under the Company’s operating leases as of March 31, 2022 were as follows: As of March 31, 2022 2022 $ 706 2023 805 2024 821 2025 838 2026 855 Total lease payments 4,025 Less amount representing implied interest ( 272 ) Less amount representing tenant improvement allowance ( 877 ) Total lease liability $ 2,876 Current portion of operating lease liabilities $ 113 Noncurrent portion of operating lease liabilities $ 2,763 |
Nature of Business - Additional
Nature of Business - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Nature Of Business [Abstract] | |||
Cash and cash equivalents | $ 705,545 | $ 764,375 | $ 833,751 |
Collaboration Revenue - Additio
Collaboration Revenue - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Collaboration revenue | $ 65,985 | ||
Research and development | $ 29,633 | 26,571 | |
Accrued expenses and other current liabilities | 24,840 | $ 52,152 | |
Roche License Agreement | |||
Disaggregation Of Revenue [Line Items] | |||
Collaboration revenue | 65,985 | ||
Costs reimbursed amount | 845 | 3,419 | |
Research and development | 9,578 | $ 14,517 | |
Accrued expenses and other current liabilities | $ 8,733 | $ 10,417 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Cash equivalents | ||
Total cash equivalents | $ 656,853 | $ 731,767 |
Level 1 | ||
Cash equivalents | ||
Total cash equivalents | 656,853 | 731,767 |
Money Market Funds | ||
Cash equivalents | ||
Total cash equivalents | 656,853 | 731,767 |
Money Market Funds | Level 1 | ||
Cash equivalents | ||
Total cash equivalents | $ 656,853 | $ 731,767 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Payables And Accruals [Abstract] | ||
Research and development, including manufacturing and clinical expenditures | $ 17,280 | $ 18,080 |
License fee | 0 | 25,000 |
Income taxes | 2,572 | 2,572 |
Payroll and payroll related | 1,914 | 4,209 |
Professional fees and other | 3,074 | 2,291 |
Total accrued expenses and other current liabilities | $ 24,840 | $ 52,152 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 83,257,591 | 83,102,730 |
Common stock, shares outstanding | 83,257,591 | 83,102,730 |
Common stock voting rights per share | On all matters to be voted upon by the holders of common stock, holders of common stock are entitled to one vote per share. |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2022shares | Jan. 31, 2021shares | Oct. 31, 2020shares | Mar. 31, 2022USD ($)Installmentshares | Mar. 31, 2021USD ($)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options granted | 2,900,833 | 2,212,250 | |||
Aggregate grant date fair market value | $ | $ 14,811 | $ 112,471 | |||
Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of units granted | 182,350 | 0 | |||
Aggregate grant date fair market value of restricted stock units granted | $ | $ 1,302 | ||||
Number of installments | Installment | 3 | ||||
Performance-based Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of units granted | 742,070 | 0 | |||
Aggregate grant date fair market value of restricted stock units granted | $ | $ 5,298 | ||||
Performance based restricted stock units terms of award | The performance stock unit awards provide for a performance period from February 1, 2022 through January 31, 2025 to complete up to six defined performance metrics. The percentage of awards eligible to vest will be determined based on the number of metrics achieved during the performance period and may range from 0% to 200%. The vesting of any eligible awards will occur in equal installments on January 31, 2025 and January 31, 2026. | ||||
2020 Incentive Award Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of additional shares authorized | 4,155,136 | 4,130,847 | |||
Percentage of annual increase in shares that may be issued | 5.00% | ||||
Number of shares available for future issuance | 8,373,712 | ||||
Minimum | Performance-based Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting percentage | 0.00% | ||||
Maximum | Performance-based Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting percentage | 200.00% | ||||
Maximum | 2020 Incentive Award Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares authorized | 7,924,000 | ||||
Maximum | 2020 Incentive Award Plan | From 2013 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares authorized | 5,982,266 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock-based Compensation Expense by Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 11,661 | $ 7,273 |
Stock Options | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 11,591 | $ 7,273 |
Restricted Stock Units | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 70 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 11,661 | $ 7,273 |
Research and Development Expense | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 5,428 | 3,198 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 6,233 | $ 4,075 |
Net Income (Loss) Per Share A_3
Net Income (Loss) Per Share Attributable to Common Stockholders - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (42,077) | $ 30,713 |
Weighted average common shares outstanding, basic | 83,176,408 | 82,577,836 |
Dilutive effect of outstanding stock options | 6,521,239 | |
Weighted average common shares outstanding, diluted | 83,176,408 | 89,099,075 |
Net income (loss) per share, basic | $ (0.51) | $ 0.37 |
Net income (loss) per share, diluted | $ (0.51) | $ 0.34 |
Net Income (Loss) Per Share A_4
Net Income (Loss) Per Share Attributable to Common Stockholders - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Number of shares excluded from computation of diluted net income per share | 13,182,944 | 1,532,944 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Jul. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jan. 01, 2022 | Dec. 31, 2021 | |
Lessor, Lease, Description [Line Items] | |||||
Right-of-use asset | $ 2,890 | $ 161 | |||
Operating lease liability | 2,876 | ||||
Operating lease costs | $ 232 | $ 76 | |||
Office Space | |||||
Lessor, Lease, Description [Line Items] | |||||
Location of office space | Boston, Massachusetts | ||||
Lease expiration month and year | 2022-07 | ||||
Lessor, Operating Lease, Existence of Option to Extend [true false] | false | ||||
Additional Office Space | |||||
Lessor, Lease, Description [Line Items] | |||||
Location of the additional office space | Boston, Massachusetts at 225 Franklin Street | ||||
Lease commencement date | Jan. 1, 2022 | ||||
Lease expiration date | Dec. 31, 2026 | ||||
Lessor, Operating Lease, Existence of Option to Extend [true false] | false | ||||
Right-of-use asset | $ 2,938 | ||||
Operating lease liability | $ 2,873 | ||||
Leasehold improvement allowance | $ 877 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments under Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 706 | |
2023 | 805 | |
2024 | 821 | |
2025 | 838 | |
2026 | 855 | |
Total lease payments | 4,025 | |
Less amount representing implied interest | (272) | |
Less amount representing tenant improvement allowance | (877) | |
Total lease liability | 2,876 | |
Current portion of operating lease liabilities | 113 | $ 197 |
Noncurrent portion of operating lease liabilities | $ 2,763 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal income taxes | $ 0 | $ 0 |
State income taxes | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Business Development Consulting Agreements | Maximum | |
Loss Contingencies [Line Items] | |
Success fee | $ 5,000,000 |
Benefit Plan - Additional Infor
Benefit Plan - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined contribution plan recognized expense related to matching contributions | $ 240 | $ 0 |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined contribution plan, employer matching contribution, percentage | 4.00% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Consulting Agreement - Director - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Number of company directors in control of related party entity | one | ||
Annual retainer | $ 110 | ||
Related party transaction expense | $ 27 | $ 0 |