Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AVIR | |
Entity Registrant Name | ATEA PHARMACEUTICALS, INC. | |
Entity Central Index Key | 0001593899 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 82,776,937 | |
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 | 125 Summer Street | |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 816,460 | $ 850,117 |
Accounts receivable | 50,000 | |
Unbilled other receivable | 5,815 | |
Prepaid expenses and other current assets | 4,650 | 7,545 |
Total current assets | 871,110 | 863,477 |
Property and equipment, net | 33 | 48 |
Other assets | 400 | 107 |
Total assets | 871,543 | 863,632 |
Current liabilities | ||
Accounts payable | 10,701 | 60 |
Accrued expenses and other current liabilities | 37,961 | 14,368 |
Deferred revenue | 224,991 | 301,367 |
Total current liabilities | 273,653 | 315,795 |
Other liabilities | 29 | 36 |
Total liabilities | 273,682 | 315,831 |
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 June 30, 2021 and December 31, 2020 | ||
Common stock, $0.001 par value; 300,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 82,776,937 and 82,436,937 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 83 | 82 |
Additional paid-in capital | 630,686 | 612,879 |
Accumulated deficit | (32,908) | (65,160) |
Total stockholders’ equity | 597,861 | 547,801 |
Total liabilities and stockholders’ equity | $ 871,543 | $ 863,632 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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 | 82,776,937 | 82,436,937 |
Common stock, shares outstanding | 82,776,937 | 82,436,937 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Collaboration revenue | $ 60,391 | $ 126,376 | ||
Operating expenses | ||||
Research and development | 39,803 | $ 7,755 | 66,375 | $ 10,576 |
General and administrative | 11,901 | 2,248 | 20,658 | 3,472 |
Total operating expenses | 51,704 | 10,003 | 87,033 | 14,048 |
Income (loss) from operations | 8,687 | (10,003) | 39,343 | (14,048) |
Interest income and other, net | 52 | 10 | 109 | 67 |
Income (loss) before income taxes | 8,739 | (9,993) | 39,452 | (13,981) |
Income tax expense | (7,200) | (7,200) | ||
Net income (loss) and comprehensive income (loss) | $ 1,539 | $ (9,993) | $ 32,252 | $ (13,981) |
Net income (loss) per share attributable to common stockholders | ||||
Basic | $ 0.02 | $ (0.99) | $ 0.39 | $ (1.39) |
Diluted | $ 0.02 | $ (0.99) | $ 0.36 | $ (1.39) |
Weighted-average common shares outstanding | ||||
Basic | 82,743,530 | 10,096,307 | 82,662,019 | 10,093,689 |
Diluted | 88,091,384 | 10,096,307 | 88,683,767 | 10,093,689 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Convertible Preferred Stock |
Balance at Dec. 31, 2019 | $ (49,571) | $ 10 | $ 4,632 | $ (54,213) | |
Balance, shares at Dec. 31, 2019 | 33,645,447 | ||||
Balance at Dec. 31, 2019 | $ 69,114 | ||||
Balance, shares at Dec. 31, 2019 | 10,091,100 | ||||
Stock-based compensation expense | 189 | 189 | |||
Net income (loss) | (3,988) | (3,988) | |||
Balance at Mar. 31, 2020 | (53,370) | $ 10 | 4,821 | (58,201) | |
Balance, shares at Mar. 31, 2020 | 33,645,447 | ||||
Balance at Mar. 31, 2020 | $ 69,114 | ||||
Balance, shares at Mar. 31, 2020 | 10,091,100 | ||||
Balance at Dec. 31, 2019 | (49,571) | $ 10 | 4,632 | (54,213) | |
Balance, shares at Dec. 31, 2019 | 33,645,447 | ||||
Balance at Dec. 31, 2019 | $ 69,114 | ||||
Balance, shares at Dec. 31, 2019 | 10,091,100 | ||||
Net income (loss) | (13,981) | ||||
Balance at Jun. 30, 2020 | (63,127) | $ 10 | 5,057 | (68,194) | |
Balance, shares at Jun. 30, 2020 | 48,958,829 | ||||
Balance at Jun. 30, 2020 | $ 175,745 | ||||
Balance, shares at Jun. 30, 2020 | 10,109,847 | ||||
Balance at Mar. 31, 2020 | (53,370) | $ 10 | 4,821 | (58,201) | |
Balance, shares at Mar. 31, 2020 | 33,645,447 | ||||
Balance at Mar. 31, 2020 | $ 69,114 | ||||
Balance, shares at Mar. 31, 2020 | 10,091,100 | ||||
Issuance of Series D convertible preferred stock, net of issuance costs of $869 | $ 106,631 | ||||
Issuance of Series D convertible preferred stock, net of issuance costs of $869, shares | 15,313,382 | ||||
Issuance of common stock upon exercise of stock options | 27 | 27 | |||
Issuance of common stock upon exercise of stock options, shares | 18,747 | ||||
Stock-based compensation expense | 209 | 209 | |||
Net income (loss) | (9,993) | (9,993) | |||
Balance at Jun. 30, 2020 | (63,127) | $ 10 | 5,057 | (68,194) | |
Balance, shares at Jun. 30, 2020 | 48,958,829 | ||||
Balance at Jun. 30, 2020 | $ 175,745 | ||||
Balance, shares at Jun. 30, 2020 | 10,109,847 | ||||
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) | 32,252 | ||||
Balance at Jun. 30, 2021 | 597,861 | $ 83 | 630,686 | (32,908) | |
Balance, shares at Jun. 30, 2021 | 82,776,937 | ||||
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 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Jun. 30, 2020USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Stock issuance costs | $ 869 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 32,252 | $ (13,981) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Stock-based compensation expense | 17,280 | 398 |
Depreciation and amortization expense | 15 | 8 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (50,000) | |
Prepaid expenses and other current assets | 2,895 | (2,409) |
Other assets | (293) | |
Accounts payable | 16,456 | 2,643 |
Accrued expenses and other liabilities | 23,586 | 1,035 |
Deferred revenue | (76,376) | |
Net cash used in operating activities | (34,185) | (12,306) |
Cash flows from investing activities | ||
Additions to property and equipment | (6) | |
Net cash used in investing activities | (6) | |
Cash flows from financing activities | ||
Proceeds from issuance of convertible preferred stock, net of issuance costs | 106,631 | |
Proceeds from issuance of common stock for exercise of stock options | 528 | 27 |
Payments made for initial public offering costs | (215) | |
Net cash provided by financing activities | 528 | 106,443 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (33,657) | 94,131 |
Cash, cash equivalents and restricted cash at the beginning of period | 850,224 | 21,768 |
Cash, cash equivalents and restricted cash at the end of period | 816,567 | 115,899 |
Cash, cash equivalents and restricted cash at the end of period: | ||
Cash and cash equivalents | 816,460 | 115,792 |
Restricted cash | 107 | 107 |
Cash, cash equivalents and restricted cash at the end of period | $ 816,567 | 115,899 |
Supplemental disclosure of noncash financing activities | ||
Equity issuance costs included in accounts payable and accrued expenses | $ 919 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2021 | |
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 life-threatening viral infections. On November 3, 2020, the Company completed an initial public offering of its common stock (the “IPO”). In connection with the IPO, the Company issued 14,375,000 shares of its common stock at $24.00 per share for net proceeds of $317,605 after deducting underwriting discounts and commissions and offering expenses. Upon closing of the IPO, all outstanding shares of the Company’s convertible preferred stock converted into 57,932,090 shares of common stock. 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 additional 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 shareholders. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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 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, 2020 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 30, 202 1 . 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 revenue recognition, accrued research and development expenses, income taxes and the valuation of common stock in connection with the issuance of stock-based awards prior to the Company’s IPO. 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. Unaudited Interim Financial Information The accompanying condensed consolidated balance sheet as of June 30, 2021, the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020, the condensed consolidated statements of convertible preferred stock and stockholders’ equity (deficit) for the three and six months ended June 30, 2021 and June 30, 2020, and the condensed consolidated statements of cash flows for the six months ended June 30, 2021 and 2020 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 June 30, 2021, the results of its operations for the three and six months ended June 30, 2021 and 2020 and its cash flows for the three and six months ended June 30, 2021 and 2020. The results for the six months ended June 30, 2021 and 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2021, or any other interim period. 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, 2020 filed with the SEC on March 30, 2021 except as discussed below. Leases The Company adopted Accounting Standards Updated (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02” or “ASC 842”) effective January 1, 2021, using the modified retrospective method and utilized the effective date as its date of initial application, with prior periods presented in accordance with previous guidance under ASC 840, Leases (“ASC 840”). At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. The Company has elected not to recognize leases with an original term of one year or less on the unaudited condensed consolidated balance sheet. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and current and non-current lease liabilities, as applicable. Leases that are economically similar to the purchase of assets are generally classified as finance leases; otherwise the leases are classified as operating leases. Operating lease liabilities and their corresponding right-of-use assets are initially recorded based on the present value of lease payments over the expected remaining lease term. Certain adjustments to the right-of-use asset may be required for items such as incentives received. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. Prospectively, the Company will adjust the right-of-use assets for straight-line rent expense or any incentives received and remeasure the lease liability at the net present value using the same incremental borrowing rate that was in effect as of the lease commencement or transition date. Net Income (Loss) Per Share Attributable to Common Stockholders Basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted net income (loss) attributable to common stockholders is computed by adjusting net income (loss) attributable to common stockholders to reallocate undistributed earnings based on the potential impact of dilutive securities, including outstanding stock options. Diluted net income (loss) per share attributable to common stockholders is computed by dividing the diluted net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options. Prior to the Company’s IPO in November 2020, basic and diluted net loss per share attributable to common stockholders was determined using the two-class method, which is required for participating securities. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02” or “ASC 842”) In July 2018, an amendment was made that allows companies the option of using the effective date of the new standard as the initial application date (at the beginning of the period in which the new standard is adopted, rather than at the beginning of the earliest comparative period). This update includes a short-term lease exception for leases with a term of 12 months or less, in which a lessee can make an accounting policy election not to recognize the associated lease assets and lease liabilities on its balance sheet. Additionally, in March 2019, the FASB issued ASU 2019-01 (“ASU No. 2019-01”). ASU No. 2019-01 clarifies the transition guidance related to interim disclosures provided in the year of adoption. Lessees will continue to differentiate between finance leases (previously referred to as capital leases) and operating leases, using classification criteria that are substantially similar to the previous guidance. For lessees, the recognition, measurement, and presentation of expenses and cash flows arising from a lease did not significantly change from previous U.S. GAAP. The modified retrospective method includes several optional practical expedients that entities may elect to apply, as well as transition guidance specific to nonstandard leasing transactions. As the Company has elected to use the extended transition period for complying with new or revised accounting standards as available under the Jobs Act, the Company adopted the new standard effective January 1, 2021 using the modified retrospective method as of the beginning of the period of the adoption. The Company has elected the package of practical expedients permitted in ASC Topic 842. Accordingly, the Company accounted for its existing operating lease as an operating lease under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC Topic 842, (b) whether classification of the operating leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. The adoption of this standard resulted in the recording of operating lease liabilities and right-of-use assets on the Company’s unaudited condensed consolidated balance sheet (see Note 9). The adoption of the standard did not have a material effect on the Company’s unaudited condensed consolidated statements of operations and comprehensive income (loss), unaudited condensed consolidated statements of cash flows or unaudited condensed consolidated statement of stockholders’ equity (deficit). In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815) I. Accounting for Certain Financial Instruments with Down Round Features II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception (“ASU 2017-11”) . Part I applies to entities that issue financial instruments such as warrants, convertible debt or convertible preferred stock that contain down-round features. Part II replaces the indefinite deferral for certain mandatorily redeemable noncontrolling interests and mandatorily redeemable financial instruments of nonpublic entities contained within ASC Topic 480 with a scope exception and does not impact the accounting for these mandatorily redeemable instruments. The Company adopted the standard effective January 1, 2021. The adoption of the standard did not have a material effect on the Company’s unaudited condensed consolidated balance sheet s , condensed consolidated statements of operations and comprehensive income (loss), condensed consolidated statements of cash flows or condensed consolidated statement of stockholders’ equity (deficit) . In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company adopted the standard effective January 1, 2021. The adoption Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements |
Collaboration Revenue
Collaboration Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Collaboration Revenue | 3. Collaboration Revenue Background In October 2020, the Company licensed to F. Hoffmann-LaRoche Ltd. and Genentech, Inc. (collectively, “Roche”) under a license agreement (the “Roche License Agreement”) ex-US rights to develop and commercialize certain of the Company’s compounds, including AT-527. The Company is responsible for completing certain ongoing clinical and non-clinical and manufacturing activities at its own expense. These obligations are referred to as the Atea Ongoing Studies and the Atea Manufacturing Obligations, respectively. The parties are collaboratively executing a global development plan intended to support regulatory approvals and are sharing joint development costs equally. The Roche License Agreement provided for a nonrefundable upfront payment of $350,000 which the Company received in November 2020. In addition, the Roche License Agreement further provides that Roche is obligated to pay the Company up to $330,000 in the aggregate upon the achievement of certain development and regulatory milestone events; up to $320,000 in the aggregate upon the achievement of certain sales based milestone events; and tiered royalties based on annual net sales of the products covered by the agreement, ranging between low double-digits and mid-twenties, subject to certain adjustments and limitations. The Company achieved a development milestone in the amount of $50,000 during the three months ended June 30, 2021. Further, under the Roche License Agreement, the Company has a one time option to request that Roche co-promote with the Company in the United States products covered by the Roche License Agreement that are successfully developed and commercialized. Roche has the right to terminate the Roche License Agreement for convenience pursuant to the terms of the agreement. Accounting Analysis The Company concluded that the License Agreement is under the scope of ASC 808 as both parties will actively participate in a joint operating activity and are exposed to significant risks and rewards that depend on the activity’s commercial success. ASC 808 provides that certain transactions between collaborative arrangement participants should be accounted for as revenue under ASC 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all of the guidance in ASC 606 should be applied, including recognition, measurement, presentation, and disclosure requirements related to such unit of account. The unit-of-account guidance in ASC 808, which aligns with the guidance in ASC 606 (that is, a distinct good or service) is used when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of ASC 606. Based on the Company’s analysis, it concluded that the delivery of the license to Roche, the performance of the Atea Ongoing Studies and the Atea Manufacturing Obligations should be accounted for under ASC 606. The Company’s efforts under the global development plan and certain Atea Manufacturing Obligations in the initial year of the contract, will be accounted for under ASC 808. The Company concluded that the provision of the license to Roche, the performance of the Atea Ongoing Studies and the Atea Manufacturing Obligations should be combined as one performance obligation as Roche cannot receive the benefit of each promise without the other promises. Specifically, Roche is dependent on the Company’s expertise and ability to complete the Atea Ongoing Studies and the Atea Manufacturing Obligations, which cannot be performed by other third parties, in order to exploit the value from the license. The initial transaction price was $350,000 which consisted of the upfront payment. The Company concluded that all other forms of variable consideration, including future development and regulatory milestones should be constrained at contract inception. As part of this conclusion, the Company assessed the stage of development and risk associated with remaining development required to achieve each milestone, including whether the achievement of certain milestones was outside the control of the Company. During the three months ended June 30, 2021, the transaction price was increased to $400,000 which includes the $350,000 upfront payment and $50,000 related to the development milestone payment achieved during the three months ended June 30, 2021. The transaction price is being recognized as collaboration revenue over the period in which the Company performs the Atea Ongoing Studies and the Atea Manufacturing Obligations. The Company concluded that an inputs method based on costs incurred compared to total estimated costs-to-complete approach most faithfully depicts the Company’s progress towards completion. Revenue recognized for the three months ended June 30, 2021 was calculated by applying the cumulative percent complete to the transaction price of $400,000 minus the cumulative revenue previously recognized. The Company concluded that its efforts to complete the global development plan will be accounted for under ASC 808. The Company will account for expenses incurred and reimbursements made or received from Roche pursuant to ASC 730, Research and Development The Company classifies all revenues recognized under the Roche License Agreement as collaboration revenues within the accompanying unaudited condensed consolidated statements of operations and comprehensive income (loss). For the three and six months ended June 30, 2021, the Company recognized collaboration revenue of $60,391 and $126,376, respectively, related to the combined For the three and six months ended June 30, 2021, costs reimbursable by Roche which are reflected as a reduction to operating expenses were $2,478 and $5,897, respectively. The Company recorded research and development expense of $23,212 and $37,729, respectively, related to its share of costs incurred by Roche. The net liability to Roche related to reimbursable costs was $29,541 as of June 30, 2021, with $8,807 recorded as accounts payable and $20,734 recorded as accrued expenses and other current liabilities in the accompanying unaudited condensed consolidated balance sheet. Unbilled receivables as of December 31, 2020 were offset against amounts due to Roche included in accounts payable at June 30, 2021. Included in accounts receivable is $50,000 related to a milestone achieved by the Company during the three months ended June 30, 2021. This amount was received in July 2021. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 811,693 $ — $ — $ 811,693 Total cash equivalents $ 811,693 $ — $ — $ 811,693 Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 846,701 $ — $ — $ 846,701 Total cash equivalents $ 846,701 $ — $ — $ 846,701 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 June 30, 2021 and December 31, 2020. There were no transfers among Level 1, Level 2 or Level 3 categories in the six months ended June 30, 2021 and 2020. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, 2021 December 31, 2020 Research and development $ 26,925 $ 10,546 Professional fees and other 2,071 1,079 Payroll and payroll related 1,765 2,743 Income taxes 7,200 — Total accrued expenses and other current liabilities $ 37,961 $ 14,368 |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Common Stock | 6. Common Stock At June 30, 2021, the authorized capital of the Company included 300,000,000 shares of common stock, of which 82,776,937 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 | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 7. Stock-based Compensation In October 2020, the Company’s shareholders approved the Company’s 2020 Incentive Award Plan (the “2020 Plan”), which became effective in connection with the Company’s initial public offering on October 29, 2020. The 2020 Plan provides for the 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 as is determined by the board of directors. In January 2021, the shares available under the plan were increased by 4,130,847 shares. The 2020 Plan replaced and is the successor of 2013 Equity Incentive Plan, as amended (the “2013 Plan”), which provided for the grant of incentive stock options, non-qualified stock options, restricted common stock awards and other awards for up to 7,807,200 shares of common stock to employees, officers, directors and consultants of the Company. Upon the closing of the Company’s IPO the 2013 Plan was terminated and no further awards will be made under the 2013 Plan. Any cancellation of outstanding awards at the time of the IPO under the 2013 Plan will be made available for grant under 2020 Plan. As of June 30, 2021 there were 8,127,850 shares of common stock remaining available for future issuance under the 2020 Plan. Stock Options During the three and six months ended June 30, 2021, the Company granted 1,022,045 and 3,234,295 options, respectively, to employees with an aggregate grant date fair market value of $19,812 and $132,283, respectively. During the three and six months ended June 30, 2020, 293,861 options were granted with an aggregate grant date fair market value of $317. Stock-based Compensation Expense Stock-based compensation expense is classified as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development expense $ 4,573 $ 38 $ 7,771 $ 157 General and administrative 5,434 171 9,509 241 Total stock-based compensation expense $ 10,007 $ 209 $ 17,280 $ 398 |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Common Stockholders | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income (loss) $ 1,539 $ (9,993 ) $ 32,252 $ (13,981 ) Weighted average common shares outstanding, basic 82,743,530 10,096,307 82,662,019 10,093,689 Dilutive effect of outstanding stock options 5,347,854 — 6,021,748 — Weighted average common shares outstanding, diluted 88,091,384 10,096,307 88,683,767 10,093,689 Net income (loss) per share, basic $ 0.02 $ (0.99 ) $ 0.39 $ (1.39 ) Net income (loss) per share, diluted $ 0.02 $ (0.99 ) $ 0.36 $ (1.39 ) Stock options for the purchase of 3,548,713 and 2,308,070 weighted average shares were excluded from the computation of diluted net income per share attributable to common stockholders for the three and six months ended June 30, 2021, respectively, 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 shares of convertible preferred stock, options to purchase 4,186,747 shares of common stock and 200,000 shares of non-vested restricted common stock have been excluded from the calculation of diluted net loss per share, as their effect is anti-dilutive. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 9. Leases As of January 1, 2021, the date of adoption of ASC 842, the Company utilized operating classification for its facility lease and recorded a right-of-use asset and lease liability. The following assets and liabilities are recorded on the Company’s balance sheet as of June 30, 2021. The right-of-use asset is included in other assets, the current lease liability is included in accrued expenses and other current liabilities and the non-current lease liability is included in other liabilities, respectively. As of June 30, 2021 Right-of-use asset $ 293 Current lease liability 332 Non-current lease liability 29 The components of the lease allocated between the general and administrative and the research and development expenses on the unaudited condensed consolidated statement of operations costs for the three and six months ended June 30, 2021 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2021 Operating lease costs $ 71 $ 141 Variable lease costs 11 20 Total lease costs $ 82 $ 161 The variable lease costs for the three and six months ended June 30, 2021 include common area maintenance and other operating charges associated with the Company’s lease of its principal office facilities in Boston, MA. As the Company’s lease does not provide an implicit rate, the Company utilized its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. As of June 30, 2021 Remaining lease term (in years) 1.1 Discount rate 7 % Future minimum payments under the Company’s operating leases as of June 30, 2021 were as follows: As of June 30, 2021 2021 $ 171 2022 200 Total lease payments 371 Less amount representing implied interest (10 ) Total lease liability $ 361 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company recorded a provision for income taxes of $7,200 for the three and six months ended June 30, 2021 and $0 for the three and six months ended June 30, 2020. For the three and six months ended June 30, 2021, the Company utilized deferred tax assets, consisting of net operating loss carryforwards and research and development credits, in the amount of $17,100 income. The Company continues to maintain a full valuation allowance against its remaining net deferred tax assets as of June 30, 2021, as it is more likely than not that any future benefit beyond 2021 will not be realized. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
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 | 6 Months Ended |
Jun. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plan | 12. Benefit Plan During the three months ended June 30, 2021, the Company implemented a defined contribution plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”). The plan covers substantially all employees who meet minimum age and service requirements. Under the terms of the plan, the Company records matching contributions up to 4% of the participant’s eligible compensation. During the three and six months ended June 30, 2021 the Company recognized expense of $76 relating to matching contributions to the 401(k) Plan. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions During the three months ended June 30, 2021, the Company entered into a consulting agreement with an entity controlled by one of its directors. The agreement provides for annual retainer of $110, the Company recognized expense in the amount of $14 for the three and six months ended June 30, 2021, of which $14 is included in accrued expenses and other current liabilities as of June 30, 2021. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events On July 19, 2021, the “Company” entered into a sublease (the “Sublease”) pursuant to which the Company will lease office space in Boston, Massachusetts (the “Premises”). The term of the Sublease is expected to commence on January 1, 2022 (the “Commencement Date”) and end on December 31, 2026. The Sublease provides that the initial base rent for the Premises will be $66 per month, subject to upward adjustment of 2% each year starting on the first anniversary of the Commencement Date. In addition to base rent, the Company is required to pay certain operating expenses and taxes associated with the Premises as well as certain utilities supplied to the Premises. The sublease includes a leasehold improvement allowance of $877 for certain improvements the Company is expecting to construct in the Premises. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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 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, 2020 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 30, 202 1 . |
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 revenue recognition, accrued research and development expenses, income taxes and the valuation of common stock in connection with the issuance of stock-based awards prior to the Company’s IPO. 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. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying condensed consolidated balance sheet as of June 30, 2021, the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020, the condensed consolidated statements of convertible preferred stock and stockholders’ equity (deficit) for the three and six months ended June 30, 2021 and June 30, 2020, and the condensed consolidated statements of cash flows for the six months ended June 30, 2021 and 2020 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 June 30, 2021, the results of its operations for the three and six months ended June 30, 2021 and 2020 and its cash flows for the three and six months ended June 30, 2021 and 2020. The results for the six months ended June 30, 2021 and 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2021, or any other interim period. |
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, 2020 filed with the SEC on March 30, 2021 except as discussed below. |
Leases | Leases The Company adopted Accounting Standards Updated (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02” or “ASC 842”) effective January 1, 2021, using the modified retrospective method and utilized the effective date as its date of initial application, with prior periods presented in accordance with previous guidance under ASC 840, Leases (“ASC 840”). At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. The Company has elected not to recognize leases with an original term of one year or less on the unaudited condensed consolidated balance sheet. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and current and non-current lease liabilities, as applicable. Leases that are economically similar to the purchase of assets are generally classified as finance leases; otherwise the leases are classified as operating leases. Operating lease liabilities and their corresponding right-of-use assets are initially recorded based on the present value of lease payments over the expected remaining lease term. Certain adjustments to the right-of-use asset may be required for items such as incentives received. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. Prospectively, the Company will adjust the right-of-use assets for straight-line rent expense or any incentives received and remeasure the lease liability at the net present value using the same incremental borrowing rate that was in effect as of the lease commencement or transition date. |
Net Income (Loss) Per Share Attributable to Common Stockholders | Net Income (Loss) Per Share Attributable to Common Stockholders Basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted net income (loss) attributable to common stockholders is computed by adjusting net income (loss) attributable to common stockholders to reallocate undistributed earnings based on the potential impact of dilutive securities, including outstanding stock options. Diluted net income (loss) per share attributable to common stockholders is computed by dividing the diluted net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options. Prior to the Company’s IPO in November 2020, basic and diluted net loss per share attributable to common stockholders was determined using the two-class method, which is required for participating securities. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02” or “ASC 842”) In July 2018, an amendment was made that allows companies the option of using the effective date of the new standard as the initial application date (at the beginning of the period in which the new standard is adopted, rather than at the beginning of the earliest comparative period). This update includes a short-term lease exception for leases with a term of 12 months or less, in which a lessee can make an accounting policy election not to recognize the associated lease assets and lease liabilities on its balance sheet. Additionally, in March 2019, the FASB issued ASU 2019-01 (“ASU No. 2019-01”). ASU No. 2019-01 clarifies the transition guidance related to interim disclosures provided in the year of adoption. Lessees will continue to differentiate between finance leases (previously referred to as capital leases) and operating leases, using classification criteria that are substantially similar to the previous guidance. For lessees, the recognition, measurement, and presentation of expenses and cash flows arising from a lease did not significantly change from previous U.S. GAAP. The modified retrospective method includes several optional practical expedients that entities may elect to apply, as well as transition guidance specific to nonstandard leasing transactions. As the Company has elected to use the extended transition period for complying with new or revised accounting standards as available under the Jobs Act, the Company adopted the new standard effective January 1, 2021 using the modified retrospective method as of the beginning of the period of the adoption. The Company has elected the package of practical expedients permitted in ASC Topic 842. Accordingly, the Company accounted for its existing operating lease as an operating lease under the new guidance, without reassessing (a) whether the contracts contain a lease under ASC Topic 842, (b) whether classification of the operating leases would be different in accordance with ASC Topic 842, or (c) whether the unamortized initial direct costs would have met the definition of initial direct costs in ASC Topic 842 at lease commencement. The adoption of this standard resulted in the recording of operating lease liabilities and right-of-use assets on the Company’s unaudited condensed consolidated balance sheet (see Note 9). The adoption of the standard did not have a material effect on the Company’s unaudited condensed consolidated statements of operations and comprehensive income (loss), unaudited condensed consolidated statements of cash flows or unaudited condensed consolidated statement of stockholders’ equity (deficit). In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815) I. Accounting for Certain Financial Instruments with Down Round Features II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception (“ASU 2017-11”) . Part I applies to entities that issue financial instruments such as warrants, convertible debt or convertible preferred stock that contain down-round features. Part II replaces the indefinite deferral for certain mandatorily redeemable noncontrolling interests and mandatorily redeemable financial instruments of nonpublic entities contained within ASC Topic 480 with a scope exception and does not impact the accounting for these mandatorily redeemable instruments. The Company adopted the standard effective January 1, 2021. The adoption of the standard did not have a material effect on the Company’s unaudited condensed consolidated balance sheet s , condensed consolidated statements of operations and comprehensive income (loss), condensed consolidated statements of cash flows or condensed consolidated statement of stockholders’ equity (deficit) . In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company adopted the standard effective January 1, 2021. The adoption Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 811,693 $ — $ — $ 811,693 Total cash equivalents $ 811,693 $ — $ — $ 811,693 Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 846,701 $ — $ — $ 846,701 Total cash equivalents $ 846,701 $ — $ — $ 846,701 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: June 30, 2021 December 31, 2020 Research and development $ 26,925 $ 10,546 Professional fees and other 2,071 1,079 Payroll and payroll related 1,765 2,743 Income taxes 7,200 — Total accrued expenses and other current liabilities $ 37,961 $ 14,368 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense is classified as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development expense $ 4,573 $ 38 $ 7,771 $ 157 General and administrative 5,434 171 9,509 241 Total stock-based compensation expense $ 10,007 $ 209 $ 17,280 $ 398 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net income (loss) $ 1,539 $ (9,993 ) $ 32,252 $ (13,981 ) Weighted average common shares outstanding, basic 82,743,530 10,096,307 82,662,019 10,093,689 Dilutive effect of outstanding stock options 5,347,854 — 6,021,748 — Weighted average common shares outstanding, diluted 88,091,384 10,096,307 88,683,767 10,093,689 Net income (loss) per share, basic $ 0.02 $ (0.99 ) $ 0.39 $ (1.39 ) Net income (loss) per share, diluted $ 0.02 $ (0.99 ) $ 0.36 $ (1.39 ) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Summary of Assets and Liabilities Recorded on Balance Sheet | The following assets and liabilities are recorded on the Company’s balance sheet as of June 30, 2021. The right-of-use asset is included in other assets, the current lease liability is included in accrued expenses and other current liabilities and the non-current lease liability is included in other liabilities, respectively. As of June 30, 2021 Right-of-use asset $ 293 Current lease liability 332 Non-current lease liability 29 |
Components of Lease Costs | The components of the lease allocated between the general and administrative and the research and development expenses on the unaudited condensed consolidated statement of operations costs for the three and six months ended June 30, 2021 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2021 Operating lease costs $ 71 $ 141 Variable lease costs 11 20 Total lease costs $ 82 $ 161 |
Summary of Remaining Lease Term and Discount Rate | As of June 30, 2021 Remaining lease term (in years) 1.1 Discount rate 7 % |
Summary of Future Minimum Payments under Operating Leases | Future minimum payments under the Company’s operating leases as of June 30, 2021 were as follows: As of June 30, 2021 2021 $ 171 2022 200 Total lease payments 371 Less amount representing implied interest (10 ) Total lease liability $ 361 |
Nature of Business - Additional
Nature of Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 03, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Nature of Business [Line Items] | ||||
Cash and cash equivalents | $ 816,460 | $ 850,117 | $ 115,792 | |
IPO | Common Stock | ||||
Nature of Business [Line Items] | ||||
Shares issued | 14,375,000 | |||
Share price | $ 24 | |||
Net proceeds from initial public offering ("IPO") | $ 317,605 | |||
IPO | Series A, B, C, D and D-1 Convertible Preferred Stock | Common Stock | ||||
Nature of Business [Line Items] | ||||
Convertible preferred stock converted into shares | 57,932,090 |
Collaboration Revenue - Additio
Collaboration Revenue - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2020 | Oct. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||||||
Collaboration revenue | $ 60,391,000 | $ 126,376,000 | |||||
Research and development | 39,803,000 | $ 7,755,000 | 66,375,000 | $ 10,576,000 | |||
Net liability related to reimbursable costs | 273,653,000 | 273,653,000 | $ 315,795,000 | ||||
Accounts payable | 10,701,000 | 10,701,000 | 60,000 | ||||
Accrued expenses and other current liabilities | 37,961,000 | 37,961,000 | $ 14,368,000 | ||||
Accounts receivable | 50,000,000 | 50,000,000 | |||||
Roche License Agreement | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Non-refundable upfront payment received | $ 350,000,000 | 350,000,000 | |||||
Development milestone achieved | 50,000,000 | ||||||
Initial transaction price | $ 350,000,000 | 400,000,000 | |||||
Collaboration revenue | 60,391,000 | 126,376,000 | |||||
Deferred revenue | 224,991,000 | 224,991,000 | |||||
Costs reimbursed amount | 2,478,000 | 5,897,000 | |||||
Research and development | 23,212,000 | 37,729,000 | |||||
Accounts receivable | 50,000,000 | 50,000,000 | |||||
Roche License Agreement | Reimbursable Costs | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Net liability related to reimbursable costs | 29,541,000 | 29,541,000 | |||||
Accounts payable | 8,807,000 | 8,807,000 | |||||
Accrued expenses and other current liabilities | $ 20,734,000 | $ 20,734,000 | |||||
Roche License Agreement | Maximum | Development and Regulatory | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Milestones receivable upon achievement aggregate | $ 330,000,000 | ||||||
Roche License Agreement | Maximum | Sales Based | |||||||
Disaggregation Of Revenue [Line Items] | |||||||
Milestones receivable upon achievement aggregate | $ 320,000,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Cash equivalents | ||
Total cash equivalents | $ 811,693 | $ 846,701 |
Level 1 | ||
Cash equivalents | ||
Total cash equivalents | 811,693 | 846,701 |
Money Market Funds | ||
Cash equivalents | ||
Total cash equivalents | 811,693 | 846,701 |
Money Market Funds | Level 1 | ||
Cash equivalents | ||
Total cash equivalents | $ 811,693 | $ 846,701 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Research and development | $ 26,925 | $ 10,546 |
Professional fees and other | 2,071 | 1,079 |
Payroll and payroll related | 1,765 | 2,743 |
Income taxes | 7,200 | |
Total accrued expenses and other current liabilities | $ 37,961 | $ 14,368 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - shares | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 82,776,937 | 82,436,937 |
Common stock, shares outstanding | 82,776,937 | 82,436,937 |
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) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2021 | Oct. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award, options granted | 1,022,045 | 293,861 | 3,234,295 | 293,861 | |||
Share-based compensation arrangement by share-based payment award, aggregate grant date fair value | $ 19,812 | $ 317 | $ 132,283 | $ 317 | |||
2020 Incentive Award Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Increased number of shares available under incentive plan | 4,130,847 | ||||||
Common stock, capital shares reserved for future issuance | 8,127,850 | 8,127,850 | |||||
2020 Incentive Award Plan | Annual Increase | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Percentage of shares of common stock Outstanding | 5.00% | ||||||
Maximum | 2020 Incentive Award Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares available for grant | 7,924,000 | ||||||
Maximum | 2013 Equity Incentive Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares available for grant | 7,807,200 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 10,007 | $ 209 | $ 17,280 | $ 398 |
Research and Development Expense | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 4,573 | 38 | 7,771 | 157 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 5,434 | $ 171 | $ 9,509 | $ 241 |
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 | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||||
Net income (loss) | $ 1,539 | $ 30,713 | $ (9,993) | $ (3,988) | $ 32,252 | $ (13,981) |
Weighted average common shares outstanding, basic | 82,743,530 | 10,096,307 | 82,662,019 | 10,093,689 | ||
Dilutive effect of outstanding stock options | 5,347,854 | 6,021,748 | ||||
Weighted average common shares outstanding, diluted | 88,091,384 | 10,096,307 | 88,683,767 | 10,093,689 | ||
Net income (loss) per share, basic | $ 0.02 | $ (0.99) | $ 0.39 | $ (1.39) | ||
Net income (loss) per share, diluted | $ 0.02 | $ (0.99) | $ 0.36 | $ (1.39) |
Net Income (Loss) Per Share A_4
Net Income (Loss) Per Share Attributable to Common Stockholders - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares excluded from computation of diluted net income per share | 3,548,713 | 2,308,070 | ||
Convertible Preferred Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares excluded from computation of diluted net income per share | 48,958,829 | 48,958,829 | ||
Stock Options to Purchase Common Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares excluded from computation of diluted net income per share | 4,186,747 | 4,186,747 | ||
Non-vested Restricted Common Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares excluded from computation of diluted net income per share | 200,000 | 200,000 |
Leases - Summary of Assets and
Leases - Summary of Assets and Liabilities Recorded on Balance Sheet (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
Right-of-use asset | $ 293 |
Current lease liability | 332 |
Non-current lease liability | $ 29 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Leases [Abstract] | ||
Operating lease costs | $ 71 | $ 141 |
Variable lease costs | 11 | 20 |
Total lease costs | $ 82 | $ 161 |
Leases - Summary of Remaining L
Leases - Summary of Remaining Lease Term and Discount Rate (Details) | Jun. 30, 2021 |
Leases [Abstract] | |
Remaining lease term (in years) | 1 year 1 month 6 days |
Discount rate | 7.00% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Payments under Operating Leases (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 171 |
2022 | 200 |
Total lease payments | 371 |
Less amount representing implied interest | (10) |
Total lease liability | $ 361 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 7,200 | $ 0 | $ 7,200 | $ 0 |
Deferred tax assets to offset taxable income | $ 17,100 | $ 17,100 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
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 | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined contribution plan recognized expense related to matching contributions | $ 76 | $ 76 |
Defined Contribution Plan, Plan Name [Extensible List] | avir:FourZeroOneKPlanMember | |
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 $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Related Party Transaction [Line Items] | ||
Number of company directors in control of related party entity | one | |
Annual retainer | $ 110 | $ 110 |
Related party transaction expense | 14 | 14 |
Accrued Expenses and Other Current Liabilities | ||
Related Party Transaction [Line Items] | ||
Related party transaction expense | $ 14 | $ 14 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event $ in Thousands | Jul. 19, 2021USD ($) |
Subsequent Event [Line Items] | |
Location of the office space | Boston, Massachusetts |
Expected commencement date of sublease | Jan. 1, 2022 |
Expected end date of sublease | Dec. 31, 2026 |
Sublease monthly base rent | $ 66 |
Sublease monthly base rent, upward adjustment | 2.00% |
Leasehold improvement allowance | $ 877 |