Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 04, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
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 | 83,287,639 | |
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, $0.001 par value per share | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 176,410 | $ 764,375 |
Marketable securities | 488,565 | |
Accounts receivable | 4,514 | |
Prepaid expenses and other current assets | 12,446 | 8,028 |
Total current assets | 681,935 | 772,403 |
Property and equipment, net | 1,810 | 23 |
Restricted cash | 305 | 305 |
Operating lease right-of-use assets, net | 2,526 | 161 |
Total assets | 686,576 | 772,892 |
Current liabilities | ||
Accounts payable | 1,118 | 4,534 |
Accrued expenses and other current liabilities | 13,805 | 52,152 |
Current portion of operating lease liabilities | 711 | 197 |
Total current liabilities | 15,634 | 56,883 |
Operating lease liabilities | 2,585 | |
Income taxes payable | 5,170 | 5,932 |
Total liabilities | 23,389 | 62,815 |
Commitments and contingencies (see Note 12) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value per share; 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2022, and December 31, 2021 | ||
Common stock, $0.001 par value; 300,000,000 shares authorized as of September 30, 2022 and December 31, 2021; 83,287,639 and 83,102,730 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 83 | 83 |
Additional paid-in capital | 689,407 | 653,964 |
Accumulated other comprehensive loss | (855) | |
Retained earnings (accumulated deficit) | (25,448) | 56,030 |
Total stockholders’ equity | 663,187 | 710,077 |
Total liabilities and stockholders’ equity | $ 686,576 | $ 772,892 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 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 | 83,287,639 | 83,102,730 |
Common stock, shares outstanding | 83,287,639 | 83,102,730 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Collaboration revenue | $ 32,811 | $ 159,187 | ||
Operating expenses | ||||
Research and development | $ 4,905 | 43,019 | $ 54,396 | 109,394 |
General and administrative | 11,376 | 11,939 | 36,355 | 32,597 |
Total operating expenses | 16,281 | 54,958 | 90,751 | 141,991 |
Income (loss) from operations | (16,281) | (22,147) | (90,751) | 17,196 |
Interest income and other, net | 4,382 | 53 | 5,560 | 162 |
Income (loss) before income taxes | (11,899) | (22,094) | (85,191) | 17,358 |
Income tax benefit (expense) | 3,833 | (6,100) | 3,713 | (13,300) |
Net income (loss) | (8,066) | (28,194) | (81,478) | 4,058 |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) on available-for-sale investments | (855) | (855) | ||
Comprehensive income (loss) | $ (8,921) | $ (28,194) | $ (82,333) | $ 4,058 |
Net income (loss) per share attributable to common stockholders | ||||
Basic | $ (0.10) | $ (0.34) | $ (0.98) | $ 0.05 |
Diluted | $ (0.10) | $ (0.34) | $ (0.98) | $ 0.05 |
Weighted-average common shares outstanding | ||||
Basic | 83,258,537 | 82,815,636 | 83,231,146 | 82,727,268 |
Diluted | 83,258,537 | 82,815,636 | 83,231,146 | 88,462,074 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Other Comprehensive Loss | 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, 2020 | 547,801 | $ 82 | 612,879 | (65,160) | |
Balance, shares at Dec. 31, 2020 | 82,436,937 | ||||
Net income (loss) | 4,058 | ||||
Balance at Sep. 30, 2021 | 581,452 | $ 83 | 642,471 | (61,102) | |
Balance, shares at Sep. 30, 2021 | 83,047,079 | ||||
Balance at Mar. 31, 2021 | 586,258 | $ 83 | 620,622 | (34,447) | |
Balance, shares at Mar. 31, 2021 | 82,736,937 | ||||
Issuance of common stock upon exercise of stock options | 57 | 57 | |||
Issuance of common stock upon exercise of stock options, shares | 40,000 | ||||
Stock-based compensation expense | 10,007 | 10,007 | |||
Net income (loss) | 1,539 | 1,539 | |||
Balance at Jun. 30, 2021 | 597,861 | $ 83 | 630,686 | (32,908) | |
Balance, shares at Jun. 30, 2021 | 82,776,937 | ||||
Issuance of common stock upon exercise of stock options | 795 | 795 | |||
Issuance of common stock upon exercise of stock options, shares | 270,142 | ||||
Stock-based compensation expense | 10,990 | 10,990 | |||
Net income (loss) | (28,194) | (28,194) | |||
Balance at Sep. 30, 2021 | 581,452 | $ 83 | 642,471 | (61,102) | |
Balance, shares at Sep. 30, 2021 | 83,047,079 | ||||
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 | ||||
Balance at Dec. 31, 2021 | 710,077 | $ 83 | 653,964 | 56,030 | |
Balance, shares at Dec. 31, 2021 | 83,102,730 | ||||
Net income (loss) | (81,478) | ||||
Balance at Sep. 30, 2022 | 663,187 | $ 83 | 689,407 | $ (855) | (25,448) |
Balance, shares at Sep. 30, 2022 | 83,287,639 | ||||
Balance at Mar. 31, 2022 | 679,884 | $ 83 | 665,848 | 13,953 | |
Balance, shares at Mar. 31, 2022 | 83,257,591 | ||||
Stock-based compensation expense | 11,908 | 11,908 | |||
Net income (loss) | (31,335) | (31,335) | |||
Balance at Jun. 30, 2022 | 660,457 | $ 83 | 677,756 | (17,382) | |
Balance, shares at Jun. 30, 2022 | 83,257,591 | ||||
Issuance of common stock upon exercise of stock options | 7 | 7 | |||
Issuance of common stock upon exercise of stock options, shares | 1,012 | ||||
Issuance of common stock under ESPP | 140 | 140 | |||
Issuance of common stock under ESPP, shares | 29,036 | ||||
Stock-based compensation expense | 11,504 | 11,504 | |||
Other comprehensive loss | (855) | (855) | |||
Net income (loss) | (8,066) | (8,066) | |||
Balance at Sep. 30, 2022 | $ 663,187 | $ 83 | $ 689,407 | $ (855) | $ (25,448) |
Balance, shares at Sep. 30, 2022 | 83,287,639 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net income (loss) | $ (81,478) | $ 4,058 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Stock-based compensation expense | 35,073 | 28,270 |
Depreciation and amortization expense | 156 | 22 |
Accretion of premium and discounts on marketable securities | (2,465) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,514) | |
Prepaid expenses and other current assets | (4,484) | 4,259 |
Other assets | (227) | |
Accounts payable | (3,416) | 27,945 |
Accrued expenses and other liabilities | (39,109) | 33,278 |
Deferred revenue | (109,187) | |
Operating lease liabilities | 800 | |
Net cash used in operating activities | (99,437) | (11,582) |
Cash flows from investing activities | ||
Additions to property and equipment | (1,943) | |
Purchases of marketable securities | (486,955) | |
Net cash used in investing activities | (488,898) | |
Cash flows from financing activities | ||
Proceeds from issuance of common stock for exercise of stock options | 230 | 1,323 |
Proceeds from issuance of common stock under ESPP | 140 | |
Net cash provided by financing activities | 370 | 1,323 |
Net decrease in cash, cash equivalents and restricted cash | (587,965) | (10,259) |
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 | 176,715 | 839,965 |
Cash, cash equivalents and restricted cash at the end of period: | ||
Cash and cash equivalents | 176,410 | 839,660 |
Restricted cash | 305 | 305 |
Cash, cash equivalents and restricted cash at the end of period | 176,715 | $ 839,965 |
Supplemental disclosure of noncash financing activities | ||
Right of use assets obtained in exchange for operating lease liabilities | $ 2,938 |
Nature of Business
Nature of Business | 9 Months Ended |
Sep. 30, 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 and marketable securities of $ 664,975 as of September 30, 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. In November 2021, the Company entered into an open market sales agreement (the “Sales Agreement”) with Jeffries LLC (“Jeffries”), under which the Company may from time to time offer and sell shares of its common stock for an aggregate offering price of up to $ 200.0 million, through or to Jeffries, acting as sales agent or principal. The shares will be offered and sold under the Company’s shelf registration statement on Form S-3 and a related prospectus filed with the Securities and Exchange Commission (the “SEC”) on November 24, 2021, as amended. The Company has agreed to pay Jeffries a commission of up to 3.0 % of the aggregate gross proceeds from each sale of shares, reimburse legal fees and disbursements and provide Jeffries with customary indemnification and contribution rights. As of September 30, 2022, no shares have been issued under the Sales Agreement. The COVID-19 pandemic, including the rapid emergence of new variants of COVID-19, and geopolitical events, including civil or political unrest (such as the ongoing war between Ukraine and Russia), have resulted in a significant disruption of global business and financial markets. In addition, recent or future market volatility, increased inflation and higher interest rates, if sustained, may increase our cost of financing and may restrict our access to potential sources of future liquidity. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 September 30, 2022, the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2022 and 2021, the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2022 and 2021, and the condensed consolidated statements of cash flows for the nine months ended September 30, 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 September 30, 2022, the results of its operations for the three and nine months ended September 30, 2022 and 2021 and its cash flows for the nine months ended September 30, 2022 and 2021. The results for the nine months ended September 30, 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 marketable securities, 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, except for as noted below. Cash and Cash Equivalents The Company considers all highly-liquid investments with an original maturity, or a remaining maturity at the time of purchase, of three months or less to be cash equivalents. The Company’s cash equivalents include money market funds and commercial paper, which are highly liquid and have strong credit ratings. These investments are subject to minimal credit and market risks. Cash and cash equivalents are stated at cost, which approximates market value. Marketable Securities The Company’s investment strategy is focused on capital preservation. The Company invests in instruments that meet the credit quality standards outlined in the Company’s investment policy. Marketable securities consist of investments with maturities greater than three months. Marketable securities include U.S. treasury obligations, U.S. agency obligations, corporate debt, commercial paper and asset-backed securities. The Company classifies all of its marketable securities as available-for-sale. Accordingly, these investments are recorded at fair value. Unrealized gains and losses are recorded as a component of other comprehensive income within stockholders’ equity. Amortization and accretion of discounts and premiums are recorded as interest income. Fair Value Measurements Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability between market participants at measurement dates. ASC 820, Fair Value Measurement, establishes a three-level valuation hierarchy for instruments measured at fair value. The hierarchy is based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Concentration of Credit Risk and Off-balance Sheet Risk Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash equivalents and marketable securities. Under its investment policy, the Company limits amounts invested in such securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the U.S. government. The Company does not believe that it is subject to any significant concentrations of credit risk from these financial instruments. The Company has no financial instruments with off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. R eclassification 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 | 9 Months Ended |
Sep. 30, 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 which became 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. Prior to receipt of the termination notice, 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 and nine months ended September 30, 2021, the Company recognized collaboration revenue of $ 32,811 and $ 159,187 , respectively, 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 and nine months ended September 30, 2022, costs reimbursable by Roche, which are reflected as a reduction to research and development expenses were $ 0 and $ 845 , respectively. For the three and nine months ended September 30, 2021, costs reimbursable by Roche, which are reflected as a reduction to operating expenses, were $ 1,726 and $ 7,623 respectively. The Company recorded a credit to research and development expense of $ 14,572 and $ 4,994 during the three and nine months ended September 30, 2022, respectively, related to its share of costs incurred by Roche. The credit recorded during the three months ended September 30, 2022 represents a change in estimate as a result of close out activities and related reporting of amounts incurred by Roche associated with the global development plan. The Company recorded research and development expense of $ 25,257 and $ 62,986 during the three and nine months ended September 30, 2021, respectively, related to its share of costs incurred by Roche. Arising as a result of the credit recorded for the cost share agreement, a s of September 30, 2022 the Company recorded accounts receivable of $ 4,514 related to a net refund due from Roche. As of December 31, 2021, the Company recorded accrued expenses of $ 10,417 , related to amounts payable to Roche pursuant to the cost share agreement. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2022 | |
Debt Securities, Available-for-Sale [Abstract] | |
Marketable Securities | 4. Marketable Securities As of Amortized Cost Unrealized Gain Unrealized Losses Fair Value Marketable Securities U.S. Treasury obligations $ 69,035 $ — $ ( 301 ) $ 68,734 U.S. Government agency securities 15,000 — ( 119 ) 14,881 Commercial paper 331,064 — — 331,064 Corporate bonds 51,838 — ( 347 ) 51,491 Asset-backed securities 22,483 — ( 88 ) 22,395 Total $ 489,420 $ — $ ( 855 ) $ 488,565 As of September 30, 2022, the Company held securities that were in an unrealized loss position of $ 855 with an aggregate fair value of $ 157,501 . The Company has the intent and ability to hold such securities until recovery. As a result, the Company did no t record any charges for credit-related impairments for its marketable debt securities for the three months ended September 30, 2022. The Company had no marketable securities prior to July 2022. As of September 30, 2022, none of the securities had remaining maturities longer than one year. The Company did no t hold any marketable securities as of December 31, 2021. The Company did no t receive any proceeds from sales or maturities of marketable securities during the three months ended September 30, 2022. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. 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 $ 141,480 $ — $ — $ 141,480 Commercial paper — 30,766 — 30,766 Marketable Securities U.S. Treasury obligations — 68,734 — 68,734 U.S. Government agency securities — 14,881 — 14,881 Commercial paper — 331,064 — 331,064 Corporate bonds — 51,491 — 51,491 Asset-backed securities — 22,395 — 22,395 Total $ 141,480 $ 519,331 $ — $ 660,811 Fair Value Measurements as of Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 731,767 $ — $ — $ 731,767 Total $ 731,767 $ — $ — $ 731,767 T he 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 September 30, 2022 and December 31, 2021. The Company's assets with fair value categorized as Level 2 within the fair value hierarchy include commercial paper, governmental and corporate bonds and asset-backed securities with fair values determined by utilizing information from third party pricing sources for identical or similar assets and liabilities in active market. There were no transfers among Level 1, Level 2 or Level 3 categories in the three months ended September 30, 2022. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | . Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: September 30, December 31, Research and development, including manufacturing and clinical expenditures $ 7,669 $ 18,080 License fee — 25,000 Income taxes 708 2,572 Payroll and payroll related 4,395 4,209 Professional fees and other 1,033 2,291 Total accrued expenses and other current liabilities $ 13,805 $ 52,152 |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Common Stock | . Common Stock At September 30, 2022, the authorized capital of the Company included 300,000,000 shares of common stock, of which 83,287,639 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 | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | 8. 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 September 30, 2022 , there were 8,102,653 shares of common stock remaining available for future issuance under the 2020 Plan. Stock Options During the three and nine months ended September 30, 2022, the Company granted 358,500 and 3,740,917 options, respectively, to employees with an aggregate grant date fair market value of $ 2,188 and $ 19,217 , respectively. During the three and nine months ended September 30, 2022, 127,212 and 611,325 options were cancelled due to terminations. During the three and nine months ended September 30, 2021, the Company granted 206,000 and 3,440,295 options, respectively, to employees with an aggregate grant date fair market value of $ 3,933 and $ 136,216 , respectively. During the three and nine months ended September 30, 2021, 159,183 and 292,517 options were cancelled due to terminations. Restricted Stock Units During the three and nine months ended September 30, 2022, the Company granted 0 and 182,350 restricted stock units, respectively, to employees with an aggregate grant date fair market value of $ 0 and $ 1,302 , respectively. The restricted stock unit awards vest in three annual installments, the first of which will occur on January 31, 2023. No restricted stock units were granted during the three and nine months ended September 30, 2021. During the three and nine months ended September 30, 2022, 600 and 20,600 restricted stock units, respectively, were cancelled due to terminations. Performance-based Restricted Stock Units During the three and nine months ended September 30, 2022, the Company granted 0 and 742,070 performance-based restricted stock units, respectively, to employees with an aggregate grant date fair market value of $ 0 and $ 5,298 , respectively. No performance-based restricted stock units were granted during the three and nine months ended September 30, 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 Company has not recognized any compensation expense through September 30, 2022, as the minimum performance criteria had not been achieved. The vesting of any eligible awards will occur in equal installments on January 31, 2025 and January 31, 2026. During the three and nine months ended September 30, 2022, 0 and 17,100 restricted stock units, respectively, were cancelled due to terminations. Employee Stock Purchase Plan In October 2020, the Company’s shareholders approved the 2020 Employee Stock Purchase Plan (the "ESPP"), which became effective upon the closing of the Company’s initial public offering in November 2020. The Company initially reserved a total of 1,187,000 shares of common stock for issuance under the ESPP. The ESPP provides that the number of shares reserved and available for issuance under the ESPP will be increased on January 1 of each calendar year by 1 % of the number of shares of common stock issued and outstanding on the immediately preceding December 31 or such lesser amount as specified by the compensation committee of the board of directors. To date, there has been no increase in the number of shares reserved for issuance under the ESPP. In April 2022, the Company initiated its first offering period under the ESPP. Each offering period is six months in duration with the purchase date being the last day of the offering period. On September 30, 2022, the first offering period concluded and the Company issued 29,036 shares of its common stock for proceeds of $ 140 . 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 Nine Months Ended 2022 2021 2022 2021 Stock options $ 11,362 $ 10,990 $ 34,727 $ 28,270 Restricted stock units 97 — 256 — Performance-based stock units — — — — Employee stock purchase plan 45 — 90 — Total stock-based compensation expense $ 11,504 $ 10,990 $ 35,073 $ 28,270 Stock-based compensation expense is classified as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Research and development expense $ 5,370 $ 5,022 $ 16,390 $ 12,793 General and administrative 6,134 5,968 18,683 15,477 Total stock-based compensation expense $ 11,504 $ 10,990 $ 35,073 $ 28,270 |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Common Stockholders | . Net Income (Loss) Per Share Attributable to Common Stockholders Basic and diluted earnings per share are calculated as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Net income (loss) $ ( 8,066 ) $ ( 28,194 ) $ ( 81,478 ) $ 4,058 Weighted average common shares outstanding, basic 83,258,537 82,815,636 83,231,146 82,727,268 Dilutive effect of outstanding stock options — — — 5,734,806 Weighted average common shares outstanding, diluted 83,258,537 82,815,636 83,231,146 88,462,074 Net income (loss) per share, basic $ ( 0.10 ) $ ( 0.34 ) $ ( 0.98 ) $ 0.05 Net income (loss) per share, diluted $ ( 0.10 ) $ ( 0.34 ) $ ( 0.98 ) $ 0.05 Stock options for the purchase of 13,490,691 shares, restricted stock units of 161,750 and performance-based restricted stock units of 724,970 were excluded from the computation of the net loss per share attributable to common stockholders for both the three and nine months ended September 30, 2022, due to net loss during the periods. Stock options for the purchase of 5,119,092 weighted average shares were excluded from the computation of the net loss per share attributable to common stockholders for the three months ended September 30, 2021 due to net loss during the period as their effect is anti-dilutive. Stock options for the purchase of 2,466,086 weighted average shares were excluded from the computation of diluted net income per share attributable to common stockholders for the nine months ended September 30, 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 | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | . Leases In July 2021, the Company entered into a non-cancelable operating lease agreement pursuant to which the Company leased 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 225 Lease does no t contain any options for renewal or extension. The Company began to occupy the space during the three months ended June 30, 2022. Previously, the Company’s principal office was located at 125 Summer Street in Boston, Massachusetts pursuant to a lease that expired in July 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 225 Lease, currently the Company’s only operating lease as of September 30, 2022 were as follows: As of September 30, 2022 2022 $ 198 2023 805 2024 821 2025 838 2026 855 Total lease payments 3,517 Less amount representing implied interest ( 221 ) Total lease liability $ 3,296 Current portion of operating lease liabilities 711 Noncurrent portion of operating lease liabilities $ 2,585 For the three and nine months ended September 30, 2022, the Company recorded operating lease costs of $ 185 and $ 649 , respectively relating to its operating lease agreements. For the three and nine months ended September 30, 2021, the Company recorded operating lease costs of $ 71 and $ 211 , respectively relating to its operating lease agreements. The 225 Lease includes a leasehold improvement allowance of $ 877 . As of September 30, 2022, all amounts related to the improvement allowance have been received. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The Company recorded a net benefit for income taxes of $ 3,833 and $ 3,713 for the three and nine months ended September 30, 2022. The benefit for income taxes was primarily the result of changes in estimates between the Company's initial provision for 2021 income taxes and the actual amounts reflected in income tax returns as filed. The Company recorded a provision for income taxes of $ 6,100 and $ 13,300 for the three and nine months ended September 30, 2021. The tax expense recorded in the three and nine months ended September 30, 2021 is due to the application of a year-to-date effective tax rate rather than an annual effective rate estimated for the entire year as the Company determined that using a year-to-date approach resulted in a better estimate of its income tax expense/benefit. The Company used a year-to-date effective tax rate during the three and nine months ended September 30, 2021 due to a change in forecast resulting in the Company anticipating federal and state taxable income for the year, while maintaining a full valuation allowance on its net deferred tax assets, as it is more likely than not that any future benefit beyond 2021 will not be realized. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. 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 | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plan | 13. 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 and nine months ended September 30, 2022, the Company recognized expense of $ 97 and $ 463 relating to matching contributions under the 401(k) Plan. During the three and nine months ended September 30, 2021 the Company recognized expense of $ 102 and $ 178 , respectively, relating to matching contributions to the 401(k) Plan. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related Party Transactions The Company is a party to a consulting agreement with an entity controlled by one of its directors. This agreement, which was entered into in May 2021, provides for an annual retainer of $ 110 . The Company recognized expense in connection with this consulting agreement in the amount of $ 27 and $ 81 , respectively, for the three and nine months ended September 30, 2022. The Company recognized expense in connection with this consulting agreement in the amount of $ 27 and $ 41 , respectively, for the three and nine months ended September 30, 2021. In May 2022, the Company entered into a consulting agreement with one of its directors. The Company recognized expense of zero and $ 1 in connection with this consulting agreement for the three and nine months ended September 30, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 September 30, 2022, the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2022 and 2021, the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2022 and 2021, and the condensed consolidated statements of cash flows for the nine months ended September 30, 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 September 30, 2022, the results of its operations for the three and nine months ended September 30, 2022 and 2021 and its cash flows for the nine months ended September 30, 2022 and 2021. The results for the nine months ended September 30, 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 marketable securities, 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, except for as noted below. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly-liquid investments with an original maturity, or a remaining maturity at the time of purchase, of three months or less to be cash equivalents. The Company’s cash equivalents include money market funds and commercial paper, which are highly liquid and have strong credit ratings. These investments are subject to minimal credit and market risks. Cash and cash equivalents are stated at cost, which approximates market value. |
Marketable Securities | Marketable Securities The Company’s investment strategy is focused on capital preservation. The Company invests in instruments that meet the credit quality standards outlined in the Company’s investment policy. Marketable securities consist of investments with maturities greater than three months. Marketable securities include U.S. treasury obligations, U.S. agency obligations, corporate debt, commercial paper and asset-backed securities. The Company classifies all of its marketable securities as available-for-sale. Accordingly, these investments are recorded at fair value. Unrealized gains and losses are recorded as a component of other comprehensive income within stockholders’ equity. Amortization and accretion of discounts and premiums are recorded as interest income. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability between market participants at measurement dates. ASC 820, Fair Value Measurement, establishes a three-level valuation hierarchy for instruments measured at fair value. The hierarchy is based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
Concentration of Credit Risk and Off-balance Sheet Risk | Concentration of Credit Risk and Off-balance Sheet Risk Financial instruments that potentially subject the Company to concentrations of credit risk primarily consist of cash equivalents and marketable securities. Under its investment policy, the Company limits amounts invested in such securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the U.S. government. The Company does not believe that it is subject to any significant concentrations of credit risk from these financial instruments. The Company has no financial instruments with off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. |
Reclassification | eclassification 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. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Securities, Available-for-Sale [Abstract] | |
Schedule of Marketable Securities | As of Amortized Cost Unrealized Gain Unrealized Losses Fair Value Marketable Securities U.S. Treasury obligations $ 69,035 $ — $ ( 301 ) $ 68,734 U.S. Government agency securities 15,000 — ( 119 ) 14,881 Commercial paper 331,064 — — 331,064 Corporate bonds 51,838 — ( 347 ) 51,491 Asset-backed securities 22,483 — ( 88 ) 22,395 Total $ 489,420 $ — $ ( 855 ) $ 488,565 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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 $ 141,480 $ — $ — $ 141,480 Commercial paper — 30,766 — 30,766 Marketable Securities U.S. Treasury obligations — 68,734 — 68,734 U.S. Government agency securities — 14,881 — 14,881 Commercial paper — 331,064 — 331,064 Corporate bonds — 51,491 — 51,491 Asset-backed securities — 22,395 — 22,395 Total $ 141,480 $ 519,331 $ — $ 660,811 Fair Value Measurements as of Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 731,767 $ — $ — $ 731,767 Total $ 731,767 $ — $ — $ 731,767 T |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: September 30, December 31, Research and development, including manufacturing and clinical expenditures $ 7,669 $ 18,080 License fee — 25,000 Income taxes 708 2,572 Payroll and payroll related 4,395 4,209 Professional fees and other 1,033 2,291 Total accrued expenses and other current liabilities $ 13,805 $ 52,152 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [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 Nine Months Ended 2022 2021 2022 2021 Stock options $ 11,362 $ 10,990 $ 34,727 $ 28,270 Restricted stock units 97 — 256 — Performance-based stock units — — — — Employee stock purchase plan 45 — 90 — Total stock-based compensation expense $ 11,504 $ 10,990 $ 35,073 $ 28,270 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense is classified as follows: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Research and development expense $ 5,370 $ 5,022 $ 16,390 $ 12,793 General and administrative 6,134 5,968 18,683 15,477 Total stock-based compensation expense $ 11,504 $ 10,990 $ 35,073 $ 28,270 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended 2022 2021 2022 2021 Net income (loss) $ ( 8,066 ) $ ( 28,194 ) $ ( 81,478 ) $ 4,058 Weighted average common shares outstanding, basic 83,258,537 82,815,636 83,231,146 82,727,268 Dilutive effect of outstanding stock options — — — 5,734,806 Weighted average common shares outstanding, diluted 83,258,537 82,815,636 83,231,146 88,462,074 Net income (loss) per share, basic $ ( 0.10 ) $ ( 0.34 ) $ ( 0.98 ) $ 0.05 Net income (loss) per share, diluted $ ( 0.10 ) $ ( 0.34 ) $ ( 0.98 ) $ 0.05 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Summary of Future Minimum Payments under Operating Leases | Future minimum payments under the 225 Lease, currently the Company’s only operating lease as of September 30, 2022 were as follows: As of September 30, 2022 2022 $ 198 2023 805 2024 821 2025 838 2026 855 Total lease payments 3,517 Less amount representing implied interest ( 221 ) Total lease liability $ 3,296 Current portion of operating lease liabilities 711 Noncurrent portion of operating lease liabilities $ 2,585 |
Nature of Business - Additional
Nature of Business - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2021 | Nov. 30, 2021 | Sep. 30, 2021 | |
Nature of Business [Line Items] | ||||
Cash and cash equivalents | $ 176,410 | $ 764,375 | $ 839,660 | |
Cash and cash equivalents and marketable securities | $ 664,975 | |||
Number of shares issued | 83,287,639 | 83,102,730 | ||
Sales Agreement | Jeffries | ||||
Nature of Business [Line Items] | ||||
Number of shares issued | 0 | |||
Sales Agreement | Jeffries | Maximum | ||||
Nature of Business [Line Items] | ||||
Aggregate offering price | $ 200,000 | |||
Commission percentage of aggregate gross proceeds from each sale of shares | 3% |
Collaboration Revenue - Additio
Collaboration Revenue - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||||
Collaboration revenue | $ 32,811 | $ 159,187 | |||
Research and development expense | $ 4,905 | 43,019 | $ 54,396 | 109,394 | |
Accounts receivable | 4,514 | 4,514 | |||
Accrued expenses and other current liabilities | 13,805 | 13,805 | $ 52,152 | ||
Roche License Agreement | |||||
Disaggregation Of Revenue [Line Items] | |||||
Collaboration revenue | 32,811 | 159,187 | |||
Costs reimbursed amount | 0 | 1,726 | 845 | 7,623 | |
Research and development credit adjustment | 14,572 | 4,994 | |||
Research and development expense | $ 25,257 | $ 62,986 | |||
Accounts receivable | $ 4,514 | $ 4,514 | |||
Accrued expenses and other current liabilities | $ 10,417 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale [Abstract] | |||
Debt securities in unrealized loss position | $ 855,000 | ||
Aggregate fair value | 157,501,000 | ||
Marketable securities | 488,565,000 | $ 0 | $ 0 |
Marketable debt securities, charges for credit-related impairments | 0 | ||
Securities maturing longer than one year | 0 | ||
Proceeds from maturities of debt securities | $ 0 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | $ 489,420,000 | ||
Unrealized Losses | (855,000) | ||
Fair Value | 488,565,000 | $ 0 | $ 0 |
U.S. Treasury obligations | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 69,035,000 | ||
Unrealized Losses | (301,000) | ||
Fair Value | 68,734,000 | ||
U.S. Government agency securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 15,000,000 | ||
Unrealized Losses | (119,000) | ||
Fair Value | 14,881,000 | ||
Commercial paper | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 331,064,000 | ||
Fair Value | 331,064,000 | ||
Corporate bonds | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 51,838,000 | ||
Unrealized Losses | (347,000) | ||
Fair Value | 51,491,000 | ||
Asset-backed securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Amortized Cost | 22,483,000 | ||
Unrealized Losses | (88,000) | ||
Fair Value | $ 22,395,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Marketable securities | $ 488,565,000 | $ 0 | $ 0 |
Assets measured at fair value | 660,811,000 | 731,767,000 | |
Level 1 | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 141,480,000 | 731,767,000 | |
Level 2 | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Assets measured at fair value | 519,331,000 | ||
U.S. Treasury obligations | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Marketable securities | 68,734,000 | ||
U.S. Treasury obligations | Level 2 | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Marketable securities | 68,734,000 | ||
U.S. Government agency securities | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Marketable securities | 14,881,000 | ||
U.S. Government agency securities | Level 2 | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Marketable securities | 14,881,000 | ||
Commercial paper | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Cash equivalents | 30,766,000 | ||
Marketable securities | 331,064,000 | ||
Commercial paper | Level 2 | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Cash equivalents | 30,766,000 | ||
Marketable securities | 331,064,000 | ||
Corporate bonds | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Marketable securities | 51,491,000 | ||
Corporate bonds | Level 2 | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Marketable securities | 51,491,000 | ||
Asset-backed securities | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Marketable securities | 22,395,000 | ||
Asset-backed securities | Level 2 | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Marketable securities | 22,395,000 | ||
Money Market Funds | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Cash equivalents | 141,480,000 | 731,767,000 | |
Money Market Funds | Level 1 | |||
Fair Value Assets Measured On Recurring Basis [Line Items] | |||
Cash equivalents | $ 141,480,000 | $ 731,767,000 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Research and development, including manufacturing and clinical expenditures | $ 7,669 | $ 18,080 |
License fee | 0 | 25,000 |
Income taxes | 708 | 2,572 |
Payroll and payroll related | 4,395 | 4,209 |
Professional fees and other | 1,033 | 2,291 |
Total accrued expenses and other current liabilities | $ 13,805 | $ 52,152 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 83,287,639 | 83,102,730 |
Common stock, shares outstanding | 83,287,639 | 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 | 9 Months Ended | ||||
Jan. 31, 2022 shares | Jan. 31, 2021 shares | Oct. 31, 2020 shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) shares | Sep. 30, 2022 USD ($) Installment shares | Sep. 30, 2021 USD ($) shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options granted | 358,500 | 206,000 | 3,740,917 | 3,440,295 | |||
Options cancelled | 127,212 | 159,183 | 611,325 | 292,517 | |||
Aggregate grant date fair market value | $ | $ 2,188 | $ 3,933 | $ 19,217 | $ 136,216 | |||
Gross proceeds from issuance of common stock | $ | $ 140 | ||||||
Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of units granted | 0 | 0 | 182,350 | 0 | |||
Number of units cancelled due to terminations | 600 | 20,600 | |||||
Aggregate grant date fair market value of restricted stock units granted | $ | $ 0 | $ 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 | 0 | 0 | 742,070 | 0 | |||
Number of units cancelled due to terminations | 0 | 17,100 | |||||
Aggregate grant date fair market value of restricted stock units granted | $ | $ 0 | $ 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 Company has not recognized any compensation expense through September 30, 2022, as the minimum performance criteria had not been achieved. 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% | ||||||
Number of shares available for future issuance | 8,102,653 | 8,102,653 | |||||
2020 Employee Stock Purchase Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Percentage of annual increase in shares that may be issued | 1% | ||||||
Common stock, capital shares reserved for future issuance | 1,187,000 | ||||||
Issuance of common stock | 29,036 | ||||||
Gross proceeds from issuance of common stock | $ | $ 140 | ||||||
Minimum | Performance-based Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Award vesting percentage | 0% | ||||||
Maximum | Performance-based Restricted Stock Units | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Award vesting percentage | 200% | ||||||
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 11,504 | $ 10,990 | $ 35,073 | $ 28,270 |
Stock Options | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 11,362 | $ 10,990 | 34,727 | $ 28,270 |
Restricted Stock Units | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 97 | 256 | ||
Employee Stock Purchase Plan | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 45 | $ 90 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 11,504 | $ 10,990 | $ 35,073 | $ 28,270 |
Research and Development Expense | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 5,370 | 5,022 | 16,390 | 12,793 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 6,134 | $ 5,968 | $ 18,683 | $ 15,477 |
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 | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||||||
Net income (loss) | $ (8,066) | $ (31,335) | $ (42,077) | $ (28,194) | $ 1,539 | $ 30,713 | $ (81,478) | $ 4,058 |
Weighted average common shares outstanding, basic | 83,258,537 | 82,815,636 | 83,231,146 | 82,727,268 | ||||
Dilutive effect of outstanding stock options | 5,734,806 | |||||||
Weighted average common shares outstanding, diluted | 83,258,537 | 82,815,636 | 83,231,146 | 88,462,074 | ||||
Net income (loss) per share, basic | $ (0.10) | $ (0.34) | $ (0.98) | $ 0.05 | ||||
Net income (loss) per share, diluted | $ (0.10) | $ (0.34) | $ (0.98) | $ 0.05 |
Net Income (Loss) Per Share A_4
Net Income (Loss) Per Share Attributable to Common Stockholders - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares excluded from computation of diluted net income per share | 13,490,691 | 5,119,092 | 13,490,691 | 2,466,086 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares excluded from computation of diluted net income per share | 161,750 | 161,750 | ||
Performance-based Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares excluded from computation of diluted net income per share | 724,970 | 724,970 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jan. 01, 2022 | Dec. 31, 2021 | |
Lessor, Lease, Description [Line Items] | |||||||
Right-of-use asset | $ 2,526 | $ 2,526 | $ 161 | ||||
Operating lease liability | 3,296 | 3,296 | |||||
Operating lease costs | $ 185 | $ 71 | $ 649 | $ 211 | |||
Office Space | |||||||
Lessor, Lease, Description [Line Items] | |||||||
Location of office space | Boston, Massachusetts at 225 Franklin Street | ||||||
Lease commencement date | Jan. 01, 2022 | ||||||
Lease expiration date | Dec. 31, 2026 | ||||||
Lessor, Operating Lease, Existence of Option to Extend [true false] | false | false | |||||
Right-of-use asset | $ 2,938 | ||||||
Operating lease liability | $ 2,873 | ||||||
Leasehold improvement allowance | $ 877 | ||||||
Prior Office Space | |||||||
Lessor, Lease, Description [Line Items] | |||||||
Location of office space | Boston, Massachusetts | ||||||
Lease expiration month and year | 2022-07 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments under Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 198 | |
2023 | 805 | |
2024 | 821 | |
2025 | 838 | |
2026 | 855 | |
Total lease payments | 3,517 | |
Less amount representing implied interest | (221) | |
Total lease liability | 3,296 | |
Current portion of operating lease liabilities | 711 | $ 197 |
Noncurrent portion of operating lease liabilities | $ 2,585 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ (3,833) | $ 6,100 | $ (3,713) | $ 13,300 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan recognized expense related to matching contributions | $ 97 | $ 102 | $ 463 | $ 178 |
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution, percentage | 4% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Consulting Agreement - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | May 31, 2021 | |
Director | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | $ 0 | $ 1 | |||
Entity Controlled by Director | |||||
Related Party Transaction [Line Items] | |||||
Annual retainer | $ 110 | ||||
Related party transaction expense | $ 27 | $ 27 | $ 81 | $ 41 |