Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 24, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MCRB | |
Entity Registrant Name | Seres Therapeutics, Inc. | |
Entity Central Index Key | 0001609809 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 41,094,832 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 53,600 | $ 85,820 |
Accounts receivable | 6,667 | |
Prepaid expenses and other current assets | 7,488 | 6,845 |
Total current assets | 67,755 | 92,665 |
Property and equipment, net | 24,571 | 26,294 |
Operating lease assets | 13,202 | |
Restricted investments | 1,400 | 1,400 |
Restricted cash | 114 | 113 |
Total assets | 107,042 | 120,472 |
Current liabilities: | ||
Accounts payable | 3,918 | 6,415 |
Accrued expenses and other current liabilities | 11,789 | 15,207 |
Operating lease liabilities | 4,407 | |
Deferred revenue - related party | 18,685 | 20,419 |
Deferred revenue | 2,770 | |
Total current liabilities | 41,569 | 42,041 |
Operating lease liabilities, net of current portion | 19,066 | |
Lease incentive obligation, net of current portion | 6,776 | |
Deferred rent | 2,216 | |
Deferred revenue, net of current portion - related party | 111,959 | 116,840 |
Deferred revenue, net of current portion | 3,637 | |
Other long-term liabilities | 644 | 644 |
Total liabilities | 176,875 | 168,517 |
Commitments and contingencies (Note 11) | ||
Stockholders’ deficit: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized at March 31, 2019 and December 31, 2018; no shares issued and outstanding at March 31, 2019 and December 31, 2018 | ||
Common stock, $0.001 par value; 200,000,000 shares authorized at March 31, 2019 and December 31, 2018; 41,094,832 and 40,936,735 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 41 | 41 |
Additional paid-in capital | 343,829 | 341,284 |
Accumulated deficit | (413,703) | (389,370) |
Total stockholders’ deficit | (69,833) | (48,045) |
Total liabilities and stockholders’ deficit | $ 107,042 | $ 120,472 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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 | 200,000,000 | 200,000,000 |
Common stock, shares issued | 41,094,832 | 40,936,735 |
Common stock, shares outstanding | 41,094,832 | 40,936,735 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Collaboration revenue - related party | $ 6,615 | $ 3,766 |
Type of Revenue [Extensible List] | us-gaap:LicenseAndServiceMember | us-gaap:LicenseAndServiceMember |
Grant revenue | $ 446 | $ 205 |
Revenue | 260 | |
Total revenue | 7,321 | 3,971 |
Operating expenses: | ||
Research and development expenses | 22,887 | 23,460 |
General and administrative expenses | 7,495 | 8,777 |
Restructuring expenses | 1,492 | |
Total operating expenses | 31,874 | 32,237 |
Loss from operations | (24,553) | (28,266) |
Other income (expense): | ||
Interest income (expense), net | 220 | 347 |
Total other income (expense), net | 220 | 347 |
Net loss | $ (24,333) | $ (27,919) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.59) | $ (0.69) |
Weighted average common shares outstanding, basic and diluted | 41,027,824 | 40,628,434 |
Net loss | $ (24,333) | $ (27,919) |
Other comprehensive income: | ||
Unrealized gain on investments, net of tax of $0 | 40 | |
Total other comprehensive income | 40 | |
Comprehensive loss | $ (24,333) | $ (27,879) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Unrealized gain on investment, tax | $ 0 | $ 0 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2017 | $ 60,699 | $ 40 | $ 324,376 | $ (263,571) | $ (146) |
Beginning balance, shares at Dec. 31, 2017 | 40,571,015 | ||||
Issuance of common stock upon exercise of stock options, value | 32 | 32 | |||
Issuance of common stock upon exercise of stock options, shares | 48,053 | ||||
Issuance of common stock upon vesting of RSUs, net of tax witholdings, shares | 51,500 | ||||
Repurchase of common stock for employee tax witholdings, value | (197) | (197) | |||
Repurchase of common stock for employee tax witholdings, shares | (17,900) | ||||
Stock-based compensation expense | 4,236 | 4,236 | |||
Unrealized gain on investments | 40 | 40 | |||
Adoption of new revenue standard (ASC 606) | (26,857) | (26,857) | |||
Net loss | (27,919) | (27,919) | |||
Ending balance at Mar. 31, 2018 | 10,034 | $ 40 | 328,447 | (318,347) | $ (106) |
Ending balance, shares at Mar. 31, 2018 | 40,652,668 | ||||
Beginning balance at Dec. 31, 2018 | $ (48,045) | $ 41 | 341,284 | (389,370) | |
Beginning balance, shares at Dec. 31, 2018 | 40,936,735 | 40,936,735 | |||
Issuance of common stock upon exercise of stock options, value | $ 120 | 120 | |||
Issuance of common stock upon exercise of stock options, shares | 38,125 | 38,125 | |||
Issuance of common stock upon vesting of RSUs, value | $ 153 | 153 | |||
Issuance of common stock upon vesting of RSUs, shares | 73,500 | ||||
Issuance of common stock under ESPP plan, value | 207 | 207 | |||
Issuance of common stock under ESPP plan, shares | 46,472 | ||||
Stock-based compensation expense | 2,065 | 2,065 | |||
Net loss | (24,333) | (24,333) | |||
Ending balance at Mar. 31, 2019 | $ (69,833) | $ 41 | $ 343,829 | $ (413,703) | |
Ending balance, shares at Mar. 31, 2019 | 41,094,832 | 41,094,832 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (24,333) | $ (27,919) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 2,065 | 4,236 |
Depreciation and amortization expense | 2,006 | 1,941 |
Amortization of operating lease asset | 535 | |
Accretion of discount on investments | (50) | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (643) | 835 |
Deferred revenue | (208) | (3,592) |
Accounts payable | (2,474) | (1,426) |
Operating lease liabilities | (1,024) | |
Accrued expenses and other current liabilities | (1,650) | (788) |
Accounts receivable | (6,667) | |
Net cash (used in) operating activities | (32,393) | (26,763) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (306) | (953) |
Purchases of investments | (5,270) | |
Sales and maturities of investments | 44,257 | |
Net cash (used in) provided by investing activities | (306) | 38,034 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 120 | 32 |
Proceeds from issuance of common stock and restricted common stock | 153 | |
Payments of employee tax obligations related to vesting of restricted stock units | (197) | |
Issuance of common stock under ESPP plan | 207 | |
Net cash provided by (used in) financing activities | 480 | (165) |
Net (decrease) increase in cash and cash equivalents | (32,219) | 11,106 |
Cash, cash equivalents and restricted cash at beginning of period | 85,933 | 37,601 |
Cash, cash equivalents and restricted cash at end of period | 53,714 | 48,707 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment purchases included in accounts payable and accrued expenses | $ 134 | $ 393 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of the Business and Basis of Presentation | 1. Nature of the Business and Basis of Presentation Seres Therapeutics, Inc. (the “Company”) was incorporated under the laws of the State of Delaware in October 2010 under the name Newco LS21, Inc. In October 2011, the Company changed its name to Seres Health, Inc., and in May 2015, the Company changed its name to Seres Therapeutics, Inc. The Company is a microbiome therapeutics platform company developing a novel class of biological drugs, which are designed to treat disease by restoring the function of a dysbiotic microbiome. The Company is developing SER-287 to treat ulcerative colitis (“UC”), a form of inflammatory bowel disease (“IBD”). SER-109, is designed to reduce recurrences of Clostridium difficile C. difficile The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, new technological innovations, protection of proprietary technology, dependence on key personnel, compliance with government regulations and the need to obtain additional financing. Product candidates currently under development will require significant additional research and development efforts, including extensive pre-clinical and clinical testing and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure and extensive compliance-reporting capabilities. The Company’s product candidates are in development. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained, or maintained, that any product candidates developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees and consultants. Under Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements—Going Concern As of March 31, 2019, the Company had an accumulated deficit of $413.7 million and cash and cash equivalents of $53.6 million. Management has assessed the Company’s ability to continue as a going concern in accordance with the requirements of ASC 205-40 and determined that the Company’s accumulated deficit, history of losses, and future expected losses meet the ASC 205-40 standard for raising substantial doubt about the Company’s ability to continue as a going concern within one year of the issuance date of these condensed consolidated financial statements. The Company’s current financial resources and currently forecasted operating plan would allow the Company to meet forecasted operating plans into the fourth quarter of 2019. The Company has determined that its cash runway of less than 12 months along with its accumulated deficit, history of losses, and future expected losses meet the ASC 205-40 standard for raising substantial doubt about its ability to continue as a going concern within one year of the issuance date of its consolidated financial statements. The Company may not be successful in its mitigation efforts, which primarily consist of raising additional capital through some combination of equity or debt financings, and/or potential new collaborations and reducing cash expenditures. Lack of necessary funds may require the Company, among other things, to delay, scale back, or eliminate some or all of its planned clinical trials. In February 2019, the Company implemented corporate changes to focus its resources on advancing its clinical-stage therapeutic candidates. As a result, the Company now intends to concentrate on completing the recently-initiated SER-287 Phase 2b study in mild-to-moderate UC, obtaining results from the ongoing SER-109 Phase 3 study for recurrent CDI, advancing the SER-401 Phase 1b study, in collaboration with the Parker Institute for Cancer Immunotherapy and MD Anderson Cancer Center, to evaluate augmenting checkpoint inhibitor response in patients with metastatic melanoma and advancing SER-301 into clinical development. In connection with the prioritization of these therapeutic candidates, the Company made changes to its management team and reduced headcount by approximately 30 percent. If the Company is not able to secure adequate additional funding, the Company plans to make further reductions in spending. In that event, the Company may have to delay, scale back, or eliminate some or all of the Company’s planned clinical trials and research stage programs. The actions necessary to reduce spending under this plan at a level that mitigates the factors described above is not considered probable, as defined in the accounting standards; as such, under the requirements of ASC 205-40, the full extent to which management may extend the Company’s funds through these actions may not be considered in management’s assessment of the Company’s ability to continue as a going concern for the next 12 months as defined by ASC-205-40. As a result, in accordance with the requirements of ASC 205-40, management has concluded that it is required to disclose that substantial doubt exists about the Company’s ability to continue as a going concern for one year from the date these financial statements are issued. The Company is eligible to receive contingent milestone payments under its license and collaboration agreement with Nestec Ltd. (“NHS”), an affiliate of Nestlé Health Science US Holdings, Inc. (“Nestlé Health Science”), a significant stockholder of the Company, if certain development milestones are achieved. However, these milestones are uncertain and there is no assurance that the Company will receive any of them. Until such time, if ever, as the Company can generate substantial product revenue, the Company will finance its cash needs through a combination of public or private equity offerings, debt financings, governmental funding, collaborations, strategic partnerships or marketing, distribution or licensing arrangements with third parties. The Company may not be able to obtain funding on acceptable terms, or at all. If the Company is unable to raise additional funds as and when needed, it would have a negative impact on the Company’s financial condition, which may require the Company to delay, reduce or eliminate certain research and development activities and reduce or eliminate discretionary operating expenses, which could constrain the Company’s ability to pursue its business strategies. Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements as of March 31, 2019 and for the three months ended March 31, 2019 The unaudited condensed consolidated interim financial statements have been prepared on the same basis as the audited consolidated financial statements. The condensed consolidated balance sheet at December 31, 2018 was derived from audited annual financial statements, but does not contain all of the footnote disclosures from the annual financial statements. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments which are necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows for the periods presented. Such adjustments are of a normal and recurring nature. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2019. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The significant accounting policies and estimates used in preparation of the condensed consolidated financial statements are described in the Company’s audited financial statements as of and for the year ended December 31, 2018, and the notes thereto, which are included in the Annual Report. There have been no material changes to the Company’s significant accounting policies during the three months ended March 31, 2019 except for the adoption of the new lease accounting standard discussed in Note 9, Leases. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, revenue recognition, the accrual of research and development expenses and the valuation of stock-based awards. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from the Company’s estimates. Net Loss per Share Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed using the sum of the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential shares of common stock, including the assumed exercise of stock options and unvested restricted stock. The restricted stock units granted by the Company entitle the holder of such awards to ordinary cash dividends paid to substantially all holders of the Company’s common stock, as if such shares were outstanding common shares at the time of the dividend. The dividends are paid in cash or shares of common stock when the applicable restricted stock unit vests. However, the unvested restricted stock units are not entitled to share in the residual net assets (deficit) of the Company. Accordingly, in periods in which the Company reports a net loss attributable to common stockholders, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: Three Months Ended March 31, 2019 2018 Stock options to purchase common stock 8,908,432 7,498,791 Unvested restricted stock units 150,400 302,665 Shares issuable under ESPP 6,911 — 9,065,743 7,801,456 Leases The Company evaluates arrangements at inception to determine if an arrangement is or contains a lease. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company uses an incremental borrowing rate that the Company would expect to incur for a fully collateralized loan over a similar term under similar economic conditions to determine the present value of the lease payments. The lease payments used to determine the Company’s operating lease assets may include lease incentives and stated rent increases and are recognized in the Company’s operating lease assets in the Company’s condensed consolidated balance sheets. Operating lease liabilities are accreted over the term of the lease using the incremental borrowing rate and the associated expense is recorded to operating expenses in the condensed consolidated statement of operations and comprehensive loss. Operating lease assets are amortized to rent expense over the lease term and included in operating expenses in the condensed consolidated statement of operations and comprehensive loss. Variable lease payments are recognized as the associated obligation is incurred. Restructuring Restructuring costs are comprised of severance costs related to workforce reductions. The Company recognizes restructuring charges when the liability is incurred. Employee termination benefits are accrued at the date management has committed to a plan of termination and employees have been notified of their termination dates and expected severance payments. Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) The Company adopted the new guidance as of January 1, 2019 using the modified retrospective transition approach with no restatement of prior periods or cumulative adjustment to accumulated deficit. Upon adoption, the Company elected the package of transition practical expedients, which allowed the Company to carry forward prior conclusions related to whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases and initial direct costs for existing leases. The Company also made an accounting policy election not to recognize leases with an initial term of 12 months or less within its condensed consolidated balance sheets and to recognize those lease payments on a straight-line basis in its condensed consolidated statements of operations and comprehensive loss over the lease term. Upon adoption of the new leasing standards, the Company recognized an operating lease asset of approximately $13,737 and a corresponding operating lease liability of approximately $24,497, which are included in the Company’s condensed consolidated balance sheet. The adoption of the new leasing standards did not have any impact on the Company’s condensed consolidated statements of operations and comprehensive loss. The impact to the Condensed Consolidated Balance Sheets for the opening balances is as follows (in thousands): As Previously Reported December 31, 2018 Adoption Adjustment As reported under Topic 842 January 1, 2019 Operating lease assets $ — $ 13,737 $ 13,737 Accrued expenses and other current liabilities 15,207 (1,768 ) 13,439 Operating lease liabilities — 4,285 4,285 Lease incentive obligation, net of current portion 6,776 (6,776 ) — Deferred rent 2,216 (2,216 ) — Operating lease liabilities, net of current portion — 20,212 20,212 In June 2018, the FASB issued ASU 2018-07, “ Compensation – Stock Compensation In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In November 2018 the FASB issued ASU No. 2018-18, Collaborative Arrangements • Clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under ASC 606, Revenue from Contracts with Customers, when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in ASC 606 should be applied, including recognition, measurement, presentation and disclosure requirements; • Adds unit-of-account guidance to ASC 808, Collaborative Arrangements, to align with the guidance in ASC 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of ASC 606; and • Requires that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting that transaction together with revenue recognized under ASC 606 is precluded if the collaborative arrangement participant is not a customer. This standard will be effective on January 1, 2020; however, early adoption is permitted. A retrospective transition approach is required for either all contracts or only for contracts that are not completed at the date of initial application of ASC 606, with a cumulative adjustment to opening retained earnings. The Company is currently evaluating the potential impact that this standard may have on its consolidated financial position and results of operations. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The Company’s cash equivalents are carried at fair value, determined according to the fair value hierarchy described above. The Company’s investments in certificates of deposit are carried at amortized cost, which approximates fair value. Certain cash equivalents that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The following table presents information about the Company’s assets as of March 31, 2019 and December 31, 2018 that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (note there were no liabilities measured at fair value on a recurring basis in either of the periods presented): Fair Value Measurements as of March 31, 2019 Using: Level 1 Level 2 Level 3 Not Subject to Leveling (1) Total Assets: Cash Equivalents $ — $ — $ — $ 40,187 $ 40,187 $ — $ — $ — $ 40,187 $ 40,187 (1) Fair Value Measurements as of December 31, 2018 Using: Level 1 Level 2 Level 3 Not Subject to Leveling (1) Total Assets: Cash Equivalents $ — $ — $ — $ 39,982 $ 39,982 $ — $ — $ — $ 39,982 $ 39,982 (1) As of March 31, 2019 and December 31, 2018, the Company’s cash equivalents consisted of money market funds with original maturities of less than 90 days from the date of purchase. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 4. Investments As of March 31, 2019 and December 31, 2018 the Company had no investments. The Company had restricted investments of $1,400 as of March 31, 2019 and December 31, 2018 which consisted of a certificate of deposit as a security deposit on its building lease at 200 Sidney Street, Cambridge, Massachusetts. The cost of restricted investments approximates fair value. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 5. Property and Equipment, Net Property and equipment, net consisted of the following: March 31, 2019 December 31, 2018 Laboratory equipment $ 14,806 14,695 Computer equipment 2,875 2,864 Furniture and office equipment 1,033 1,033 Leasehold improvements 27,977 27,977 Construction in progress 26 26 46,717 46,595 Less: Accumulated depreciation and amortization $ (22,146 ) $ (20,301 ) $ 24,571 $ 26,294 Depreciation and amortization expense was $2,006 and $1,941 for the three months ended March 31, 2019 and 2018, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 6. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: March 31, 2019 December 31, 2018 Development and manufacturing costs $ 6,779 $ 7,046 Payroll and payroll-related costs 3,550 5,020 Facility and other 1,460 3,141 $ 11,789 $ 15,207 |
Stockholders' Equity Common Sto
Stockholders' Equity Common Stock | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity Common Stock | 7 . Stockholders’ Equity Common Stock Stock Options The following table summarizes the Company’s stock option activity since December 31, 2018: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding as of December 31, 2018 7,561,719 $ 12.26 7.23 $ 4,958 Granted 2,148,250 6.16 Exercised (38,125 ) 3.14 Forfeited (763,412 ) 12.70 Outstanding as of March 31, 2019 8,908,432 $ 10.79 7.57 $ 9,684 Options vested and expected to vest as of March 31, 2019 8,908,432 10.79 7.57 9,684 Options exercisable as of March 31, 2019 4,659,499 $ 12.56 6.14 $ 8,100 The weighted average grant-date fair value of stock options granted during the three months ended March 31, 2019 and 2018 was $4.60 and $7.02 per share, respectively. During the three months ended March 31, 2019, the Company granted performance-based stock options to employees for the purchase of an aggregate of 1.1 million shares of common stock with a grant date fair value of $4.58 per share. These stock options are exercisable only upon achievement of specified performance targets. As of March 31, 2019, none of these options were exercisable because none of the specified performance targets had been achieved. Because achievement of the specified performance targets was not deemed probable as of March 31, 2019, the Company did not record any expense for these stock options from the dates of issuance through March 31, 2019. Restricted Stock The Company has granted restricted stock units with time-based vesting conditions. The table below summarizes the Company’s restricted stock unit activity since December 31, 2018: Number of Shares Weighted Average Grant Date Fair Value Unvested restricted stock units as of December 31, 2018 226,900 $ 9.64 Granted — $ — Forfeited (3,000 ) $ 8.07 Vested (73,500 ) $ 9.98 Unvested restricted stock units as of March 31, 2019 150,400 $ 9.51 Stock-based Compensation Expense The Company recorded stock-based compensation expense related to stock options, restricted stock units and the Company’s Employee Stock Purchase Plan (“ESPP”) in the following expense categories of its condensed consolidated statements of operations and comprehensive loss: Three Months Ended March 31, 2019 2018 Research and development expenses $ 1,448 $ 1,928 General and administrative expenses 617 2,308 $ 2,065 $ 4,236 Employee Stock Purchase Plan The ESPP provides that eligible employees may contribute up to 15% of their eligible earnings toward the semi-annual purchase of the Company's common stock. The ESPP is qualified under Section 423 of the Internal Revenue Code. The employee's purchase price is derived from a formula based on the closing price of the common stock on the first day of the offering period versus the closing price on the date of purchase (or, if not a trading day, on the immediately preceding trading day). The offering period under the ESPP has a duration of six months, and the purchase price with respect to each offering period beginning on or after such date is, until otherwise amended, equal to 85% of the lesser of (i) the fair market value of the Company's common stock at the commencement of the applicable six-month offering period or (ii) the fair market value of the Company's common stock on the purchase date. The Company recorded an immaterial amount of stock-based compensation expense under the ESPP for the three months ended March 31, 2019. The total number of available ESPP shares is increased annually, which began in 2016 and will end in 2025. The ESPP allows for share replenishment equal to the lesser of (i) 400,000 shares and (ii) 1% of the number of shares of the Company’s common stock outstanding on the last day of the preceding calendar year, or an amount determined by the board of directors. As of March 31, 2019, a total of 1.9 million shares were reserved and available for issuance under the ESPP. |
Collaboration Revenue
Collaboration Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Collaboration Revenue | 8 . Collaboration Revenue NHS Collaboration Agreement Summary of Agreement In January 2016, the Company entered into a collaboration and license agreement with NHS (“License Agreement”) for the development and commercialization of certain product candidates in development for the treatment and management of CDI and IBD, including UC and Crohn’s disease. The License Agreement supports the development of the Company’s portfolio of products for CDI and IBD in markets outside of the United States and Canada (the “Licensed Territory”). The Company has retained full commercial rights to its entire portfolio of product candidates with respect to the United States and Canada. Under the License Agreement, the Company granted to NHS an exclusive, royalty-bearing license to develop and commercialize, in the Licensed Territory, certain products based on its microbiome technology that are being developed for the treatment of CDI and IBD, including SER-109, SER-262, SER-287 and SER-301 (collectively, the “NHS Collaboration Products”). The License Agreement sets forth the Company’s and NHS’ respective obligations for development, commercialization, regulatory and manufacturing and supply activities for the NHS Collaboration Products with respect to the licensed fields and the Licensed Territory. Under the License Agreement, NHS agreed to pay the Company an upfront cash payment of $120,000, which the Company received in February 2016. The Company is eligible to receive up to $285,000 in development milestone payments, $375,000 in regulatory payments and up to an aggregate of $1,125,000 for the achievement of certain commercial milestones related to the sales of NHS Collaboration Products. NHS also agreed to pay the Company tiered royalties, at percentages ranging from the high single digits to high teens, of net sales of NHS Collaboration Products in the Licensed Territory. Under the License Agreement, the Company is entitled to receive a $20,000 milestone payment from NHS following initiation of a SER-287 Phase 2 study and a $20,000 milestone payment from NHS following the initiation of a SER-287 Phase 3 study. In November 2018, the Company entered into a letter agreement with NHS which modified the License Agreement to address the current clinical plans for SER-287. Pursuant to the letter agreement, the Company and NHS agreed that following initiation of the SER-287 Phase 2b study, the Company would be entitled to receive $40,000 in milestone payments from NHS, which represent the milestone payments due to the Company for the initiation of a SER-287 Phase 2 study and a Phase 3 study. The SER-287 Phase 2b study was initiated and the $40,000 of milestone payments were received in December 2018. The letter agreement also provides scenarios under which NHS’ reimbursement to the Company for certain Phase 3 development costs would be reduced or delayed depending on the outcomes of the SER-287 Phase 2b study. Accounting Analysis The Company assessed the License Agreement in accordance with ASC 606— Revenue From Contracts with Customers At contract inception, the Company determined that the $120,000 non-refundable upfront amount constituted the entirety of the consideration to be included in the transaction price as the development, regulatory, and commercial milestones were fully constrained. During the year ended December 31, 2016, the Company received $10,000 from NHS in connection with the initiation of the Phase 1b study for SER-262 in CDI. During the year ended December 31, 2017, the Company received $20,000 from NHS in connection with the initiation of the Phase 3 study for SER-109. During the year ended December 31, 2018, the Company received $40,000 from NHS in connection with the initiation of the Phase 2b study for SER-287. The transaction price as of March 31, 2019 was approximately $190,000. During the three months ended March 31, 2019 and 2018, using the cost-to-cost method, which best depicts the transfer of control to the customer, the Company recognized $6,615 and $3,766 of Collaboration revenue – related party, respectively. As of March 31, 2019 and December 31, 2018, there was $130,644, and $137,259, respectively, of deferred revenue related to the unsatisfied portion of the performance obligation under the License Agreement. As of March 31, 2019, the deferred revenue is classified as current or non-current in the consolidated balance sheets based on the Company’s estimate of revenue that will be recognized within the next 12 months, which is determined by the cost-to-cost method which measures the extent of progress towards completion based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the performance obligation. All costs associated with the License Agreement are recorded in research and development expense in the condensed consolidated statements of operations and comprehensive loss. AstraZeneca Research Collaboration and Option Agreement Summary of the Agreement In March 2019, the Company entered into a Research Collaboration and Option Agreement (the “Research Agreement”) with MedImmune, LLC, a wholly owned subsidiary of AstraZeneca Inc. (“AstraZeneca”), to advance the mechanistic understanding of the microbiome in augmenting the efficacy of cancer immunotherapy. Under the Research Agreement, the Company and AstraZeneca will conduct certain research and development activities as set forth on a research plan focused on the role of the microbiome in certain cancers and cancer immunotherapies, including furthering the research program for SER-401, in combination with AstraZeneca compounds targeting various cancers. Pursuant to the Research Agreement, the Company agreed not to conduct research or development on any microbiome products specifically designed by the Company during the term of the Research Agreement for the treatment of cancer (“Microbiome Oncology Products”), with or on behalf of any third party without the prior approval of the joint steering committee for the Research Agreement for at least three years after the effective date (the “Exclusivity Period”). Additionally, will pay to the Company a total of installments, the first of which the Company received in April 2019, and the second and third of which become due on January 2, 2020 and January 4, 2021, respectively Under the Research Agreement, the Company granted to AstraZeneca an exclusive option to negotiate a worldwide, sublicensable exclusive license under relevant intellectual property rights controlled by the Company to exploit Microbiome Oncology Products for the treatment of cancer. Additionally, the Company granted to AstraZeneca an additional exclusive option to obtain a worldwide, sublicensable, license under certain intellectual property rights arising out of the Agreement or coming into the control of the Company during the term of the Agreement, to exploit AstraZeneca’s oncology and other assets which are the subject of the research plan. AstraZeneca may exercise each option at any point prior to 90 days after the end of the Exclusivity Period (the “Option Exercise Period”) by delivering an option exercise notice to the Company. If AstraZeneca exercises an option during the Option Exercise Period, the parties will enter into exclusive, good faith negotiations for a period of six months (the “Negotiation Period”) regarding the terms of the definitive license agreement contemplated by such option. If no definitive agreement is reached during the Negotiation Period, subject to certain other terms and conditions applicable for a one (1) year period, the Company is free to license, further develop or otherwise exploit its assets that were the subject of the option without further obligation to AstraZeneca. The term of the Research Agreement continues in effect until the Research Agreement is terminated by the parties in accordance with its terms by mutual written agreement. Either party may terminate the Research Agreement for the other party’s uncured material breach or bankruptcy or insolvency-related events. AstraZeneca may terminate the Research Agreement for convenience. Accounting Analysis The Company assessed the Research Agreement in accordance with ASC 606 and concluded that AstraZeneca is a customer. The Company identified the following promises under the contract: (i) a research license, (ii) an obligation to perform research and development services, and (iii) participating on a joint steering committee. The Company assessed the promised goods and services to determine if they are distinct. Based on this assessment, the Company determined that AstraZeneca cannot benefit from the promised goods and services separately from the others as they are highly interrelated and therefore not distinct. Accordingly, the promised goods and services represent one combined performance obligation and the entire transaction price will be allocated to that single combined performance obligation. Each exclusive option granted to AstraZeneca provides AstraZeneca with the right to negotiate a license agreement in the future at fair value. Therefore, the Company concluded that each option does not constitute a performance obligation at inception and has been excluded from the initial allocation since each option represents a separate buying decision at market rates, rather than a material right in the contract. At contract inception, the Company determined that the transaction price is comprised of: (i) the $20,000 fee, which represents fixed consideration, and (ii) the estimated reimbursement of research and development costs incurred, which represents variable consideration. The Company included the estimated reimbursement of research and development costs, approximately $13,900, in the transaction price at the inception of the arrangement because the Company is required to perform research and development services and the contract requires AstraZeneca to reimburse the Company for costs incurred. Also, since the related revenue would be recognized only as the costs are incurred, and the contract precludes the joint steering committee from changing the research plan without mutual agreement, the Company determined it is not probable that a significant reversal of cumulative revenue would occur. The Company determined that revenue under the Research Agreement should be recognized over time as AstraZeneca simultaneously receives the benefit from the Company as the Company performs under the single performance obligation over time. The Company will recognize revenue for the single performance obligation using a cost-to-cost input method as the Company has concluded it best depicts the research and joint steering committee participation services performed prior to AstraZeneca’s ability to negotiate a license. Under this method, the transaction price is recognized over the contract’s entire performance period, using costs incurred relative to total estimated costs to determine the extent of progress towards completion. For the three months ended March 31, 2019, the Company recognized revenue of $260 based on the measured progress under the Research Agreement. The transaction price as of March 31, 2019 was approximately As of March 31, 2019, there was $6,407 of deferred revenue associated with the Research Agreement, with $2,770 presented as current and $3,637 as non-current in the condensed consolidated balance sheets based on the Company’s estimate of revenue that will be recognized within the next 12 months. All costs associated with the Research Agreement are recorded in research and development expense in the condensed consolidated statements of operations and comprehensive loss. Contract Balances from Contracts with Customers The following table presents changes in the Company’s contract assets and contract liabilities during the three months ended March 31, 2019 and 2018: Balance as of December 31, 2018 Additions Deductions Balance as of March 31, 2019 Three months ended March 31, 2019 Contract liabilities: Deferred revenue - related party 137,259 — (6,615 ) 130,644 Deferred revenue — 6,667 (260 ) 6,407 Balance as of January 1, 2018 Additions Deductions Balance as of March 31, 2018 Three months ended March 31, 2018 Contract liabilities: Deferred revenue - related party 123,783 175 (3,766 ) 120,192 During the three months ended March 31, 2019 and 2018 the Company recognized the following revenues as a result of changes in the contract liabilities balances in the respective periods (in thousands): Three Months Ended March 31, 2019 2018 Revenue recognized in the period from: Amounts included in the contract liability at the beginning of the period 6,615 3,766 When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Revenue is recognized from the contract liability over time using the cost-to-cost method. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 9. Leases The Company leases real estate, primarily laboratory, office and manufacturing space. The Company’s leases have remaining terms ranging from less than 1 year to 5 years. Certain leases include one or more options to renew, exercised at the Company’s sole discretion, with renewal terms that can extend the lease from one year to five years. The Company evaluated the renewal options in its leases to determine if it was reasonably certain that the renewal option would be exercised, and therefore should be included in the calculation of the operating lease assets and operating lease liabilities. Given the Company’s current business structure, uncertainty of future growth, and the associated impact to real estate, the Company concluded that it is not reasonably certain that any renewal options would be exercised. Therefore, the operating lease assets and lease liabilities only contemplate the initial lease terms. All of the Company’s leases qualify as operating leases. The following table summarizes the presentation in the Company’s condensed consolidated balance sheets of its operating leases: As of March 31, 2019 Assets: Operating lease assets $ 13,202 Liabilities: Operating lease liabilities $ 4,407 Operating lease liabilities, net of current portion 19,066 Total operating lease liabilities $ 23,473 The following table summarizes the effect of lease costs in the Company’s condensed consolidated statement of operations and comprehensive loss: For the Three Months Ended March 31, 2019 Operating lease costs $ 1,154 Short-term lease costs 648 Variable lease costs 726 Total lease costs $ 2,528 During the three months ended March 31, 2019, the Company made cash payments of $1,642 for operating leases. The minimum lease payments for the next five years and thereafter is expected to be as follows (in thousands): As of March 31, 2019 2019 (remaining 9 months) $ 4,951 2020 6,382 2021 6,461 2022 6,390 2023 5,158 2024 and thereafter — Total future minimum lease payments $ 29,342 Less: interest (5,869 ) Present value of operating lease liabilities $ 23,473 As of March 31, 2019, the weighted average remaining lease term was 4.56 years and the weighted average incremental borrowing rate used to determine the operating lease liability was 11%. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 10. Restructuring In February 2019, the Company implemented corporate changes to focus its resources on advancing its clinical-stage therapeutic candidates. As a result, the Company now intends to concentrate on completing the recently-initiated SER-287 Phase 2b study in mild-to-moderate UC, obtaining results from the ongoing SER-109 Phase 3 study for recurrent CDI, advancing the SER-401 Phase 1b study, in collaboration with the Parker Institute for Cancer Immunotherapy and MD Anderson Cancer Center, to evaluate augmenting checkpoint inhibitor response in patients with metastatic melanoma and advancing SER-301 into clinical development. In connection with the prioritization of these therapeutic candidates, the Company made changes to its management team and reduced headcount by approximately 30 percent. During the three months ended March 31, 2019 the Company recorded charges of $1,492 related to severance and other termination benefits. Of that amount, the Company paid $608 during the first quarter of 2019 and it expects to pay approximately $884 in 2019. The outstanding restructuring liabilities are included in accrued expenses and other current liabilities on the condensed consolidated balance sheets. As of March 31, 2019, the components of the liabilities were as follows: Employee Severance and Other Benefits Restructuring expenses $ 1,492 Cash payments $ 608 Liability included in accrued expenses and other current liabilities at March 31, 2019 $ 884 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 1 . Income Taxes The Company did not provide for any income taxes for the three months ended March 31, 2019 or 2018. The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets. Management has considered the Company’s history of cumulative net losses incurred since inception and its lack of commercialization of any products or generation of any revenue from product sales since inception and has concluded that it is more likely than not that the Company will not realize the benefits of the deferred tax assets. Accordingly, a full valuation allowance has been established against the deferred tax assets as of March 31, 2019 and December 31, 2018. Management reevaluates the positive and negative evidence at each reporting period. As of March 31, 2019 and December 31, 2018, the Company had no accrued interest or tax penalties recorded. The Company files income tax returns in the United States and various state jurisdictions. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2012. However, to the extent the Company has tax attribute carryforwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service or state tax authorities to the extent it is utilized in a future period. There are no currently ongoing or pending examinations in any jurisdictions. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 2 . Commitments and Contingencies Leases Refer to Note 9, Leases Indemnification Agreements In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors and its officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on its financial position, results of operations or cash flows, and it has not accrued any liabilities related to such obligations in its condensed consolidated financial statements as of March 31, 2019 or December 31, 2018. Legal Contingencies The Company accrues a liability for legal contingencies when it believes that it is both probable that a liability has been incurred and that the Company can reasonably estimate the amount of the loss. The Company reviews these accruals and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel and other relevant information. To the extent new information is obtained and the views on the probable outcomes of claims, suits, assessments, investigations or legal proceedings change, changes in the Company’s accrued liabilities would be recorded in the period in which such determination is made. In addition, in accordance with the relevant authoritative guidance, for any matters in which the likelihood of material loss is at least reasonably possible, the Company will provide disclosure of the possible loss or range of loss. If a reasonable estimate cannot be made, however, the Company will provide disclosure to that effect. The Company expenses legal costs as they are incurred. The Company did not accrue any liabilities related to legal contingencies in its condensed consolidated financial statements as of March 31, 2019 or December 31, 2018. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 1 3 . Related Party Transactions As described in Note 8, in January 2016 the Company entered into the License Agreement with NHS for the development and commercialization of certain product candidates in development for the treatment and management of CDI and IBD, including UC and Crohn’s disease. NHS is a related party since NHS is an affiliate of Nestlé Health Science, one of the Company’s significant stockholders. During the three months ended March 31, 2019 and December 31, 2018, the Company recognized $6,615, and $3,766 of related party revenue associated with the License Agreement, respectively. As of March 31, 2019, there was $130,644 of deferred revenue related to the License Agreement, which is classified as current or non-current in the consolidated balance sheets. The Company has made no payments to NHS during the three months ended March 31, 2019 and 2018. There is no amount due from NHS as of March 31, 2019. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 4 . Subsequent Events In April 2019, the Company, with the approval of the Seres/NHS Joint Steering Committee, as provided for in the License Agreement, modified the SER-109 clinical trial. As a result of this modification, the Company and NHS agreed, and informed the FDA, that the target study enrollment would be reduced from 320 subjects to 188 subjects. With this modification, the Company expects to complete enrollment by the end of 2019 and report top-line data in early 2020. The Company will account for this modification in the second quarter of 2019 through a cumulative catch-up adjustment because the modification did not add any additional goods or services and the remaining goods and services are not distinct. The modification will reduce the total estimated costs in the Company’s cost-to-cost model for the License Agreement with NHS and, based on estimated costs expected for the second quarter of 2019, will result in the Company recognizing revenue of approximately $7,000 in the second quarter of 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, revenue recognition, the accrual of research and development expenses and the valuation of stock-based awards. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from the Company’s estimates. |
Net Loss per Share | Net Loss per Share Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed using the sum of the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential shares of common stock, including the assumed exercise of stock options and unvested restricted stock. The restricted stock units granted by the Company entitle the holder of such awards to ordinary cash dividends paid to substantially all holders of the Company’s common stock, as if such shares were outstanding common shares at the time of the dividend. The dividends are paid in cash or shares of common stock when the applicable restricted stock unit vests. However, the unvested restricted stock units are not entitled to share in the residual net assets (deficit) of the Company. Accordingly, in periods in which the Company reports a net loss attributable to common stockholders, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: Three Months Ended March 31, 2019 2018 Stock options to purchase common stock 8,908,432 7,498,791 Unvested restricted stock units 150,400 302,665 Shares issuable under ESPP 6,911 — 9,065,743 7,801,456 |
Leases | Leases The Company evaluates arrangements at inception to determine if an arrangement is or contains a lease. Operating lease assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company uses an incremental borrowing rate that the Company would expect to incur for a fully collateralized loan over a similar term under similar economic conditions to determine the present value of the lease payments. The lease payments used to determine the Company’s operating lease assets may include lease incentives and stated rent increases and are recognized in the Company’s operating lease assets in the Company’s condensed consolidated balance sheets. Operating lease liabilities are accreted over the term of the lease using the incremental borrowing rate and the associated expense is recorded to operating expenses in the condensed consolidated statement of operations and comprehensive loss. Operating lease assets are amortized to rent expense over the lease term and included in operating expenses in the condensed consolidated statement of operations and comprehensive loss. Variable lease payments are recognized as the associated obligation is incurred. |
Restructuring | Restructuring Restructuring costs are comprised of severance costs related to workforce reductions. The Company recognizes restructuring charges when the liability is incurred. Employee termination benefits are accrued at the date management has committed to a plan of termination and employees have been notified of their termination dates and expected severance payments. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) The Company adopted the new guidance as of January 1, 2019 using the modified retrospective transition approach with no restatement of prior periods or cumulative adjustment to accumulated deficit. Upon adoption, the Company elected the package of transition practical expedients, which allowed the Company to carry forward prior conclusions related to whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases and initial direct costs for existing leases. The Company also made an accounting policy election not to recognize leases with an initial term of 12 months or less within its condensed consolidated balance sheets and to recognize those lease payments on a straight-line basis in its condensed consolidated statements of operations and comprehensive loss over the lease term. Upon adoption of the new leasing standards, the Company recognized an operating lease asset of approximately $13,737 and a corresponding operating lease liability of approximately $24,497, which are included in the Company’s condensed consolidated balance sheet. The adoption of the new leasing standards did not have any impact on the Company’s condensed consolidated statements of operations and comprehensive loss. The impact to the Condensed Consolidated Balance Sheets for the opening balances is as follows (in thousands): As Previously Reported December 31, 2018 Adoption Adjustment As reported under Topic 842 January 1, 2019 Operating lease assets $ — $ 13,737 $ 13,737 Accrued expenses and other current liabilities 15,207 (1,768 ) 13,439 Operating lease liabilities — 4,285 4,285 Lease incentive obligation, net of current portion 6,776 (6,776 ) — Deferred rent 2,216 (2,216 ) — Operating lease liabilities, net of current portion — 20,212 20,212 In June 2018, the FASB issued ASU 2018-07, “ Compensation – Stock Compensation In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In November 2018 the FASB issued ASU No. 2018-18, Collaborative Arrangements • Clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under ASC 606, Revenue from Contracts with Customers, when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in ASC 606 should be applied, including recognition, measurement, presentation and disclosure requirements; • Adds unit-of-account guidance to ASC 808, Collaborative Arrangements, to align with the guidance in ASC 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of ASC 606; and • Requires that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting that transaction together with revenue recognized under ASC 606 is precluded if the collaborative arrangement participant is not a customer. This standard will be effective on January 1, 2020; however, early adoption is permitted. A retrospective transition approach is required for either all contracts or only for contracts that are not completed at the date of initial application of ASC 606, with a cumulative adjustment to opening retained earnings. The Company is currently evaluating the potential impact that this standard may have on its consolidated financial position and results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Potential Common Shares Excluded from Calculation of Diluted Net Loss per Share | The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: Three Months Ended March 31, 2019 2018 Stock options to purchase common stock 8,908,432 7,498,791 Unvested restricted stock units 150,400 302,665 Shares issuable under ESPP 6,911 — 9,065,743 7,801,456 |
Summary of Impact on Condensed Consolidated Balance Sheets for Opening Balances Related to Lease | The impact to the Condensed Consolidated Balance Sheets for the opening balances is as follows (in thousands): As Previously Reported December 31, 2018 Adoption Adjustment As reported under Topic 842 January 1, 2019 Operating lease assets $ — $ 13,737 $ 13,737 Accrued expenses and other current liabilities 15,207 (1,768 ) 13,439 Operating lease liabilities — 4,285 4,285 Lease incentive obligation, net of current portion 6,776 (6,776 ) — Deferred rent 2,216 (2,216 ) — Operating lease liabilities, net of current portion — 20,212 20,212 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on Recurring Basis | The following table presents information about the Company’s assets as of March 31, 2019 and December 31, 2018 that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (note there were no liabilities measured at fair value on a recurring basis in either of the periods presented): Fair Value Measurements as of March 31, 2019 Using: Level 1 Level 2 Level 3 Not Subject to Leveling (1) Total Assets: Cash Equivalents $ — $ — $ — $ 40,187 $ 40,187 $ — $ — $ — $ 40,187 $ 40,187 (1) Fair Value Measurements as of December 31, 2018 Using: Level 1 Level 2 Level 3 Not Subject to Leveling (1) Total Assets: Cash Equivalents $ — $ — $ — $ 39,982 $ 39,982 $ — $ — $ — $ 39,982 $ 39,982 (1) |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following: March 31, 2019 December 31, 2018 Laboratory equipment $ 14,806 14,695 Computer equipment 2,875 2,864 Furniture and office equipment 1,033 1,033 Leasehold improvements 27,977 27,977 Construction in progress 26 26 46,717 46,595 Less: Accumulated depreciation and amortization $ (22,146 ) $ (20,301 ) $ 24,571 $ 26,294 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: March 31, 2019 December 31, 2018 Development and manufacturing costs $ 6,779 $ 7,046 Payroll and payroll-related costs 3,550 5,020 Facility and other 1,460 3,141 $ 11,789 $ 15,207 |
Stockholders' Equity Common S_2
Stockholders' Equity Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity since December 31, 2018: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) Outstanding as of December 31, 2018 7,561,719 $ 12.26 7.23 $ 4,958 Granted 2,148,250 6.16 Exercised (38,125 ) 3.14 Forfeited (763,412 ) 12.70 Outstanding as of March 31, 2019 8,908,432 $ 10.79 7.57 $ 9,684 Options vested and expected to vest as of March 31, 2019 8,908,432 10.79 7.57 9,684 Options exercisable as of March 31, 2019 4,659,499 $ 12.56 6.14 $ 8,100 |
Summary of Restricted Stock Unit Activity | The Company has granted restricted stock units with time-based vesting conditions. The table below summarizes the Company’s restricted stock unit activity since December 31, 2018: Number of Shares Weighted Average Grant Date Fair Value Unvested restricted stock units as of December 31, 2018 226,900 $ 9.64 Granted — $ — Forfeited (3,000 ) $ 8.07 Vested (73,500 ) $ 9.98 Unvested restricted stock units as of March 31, 2019 150,400 $ 9.51 |
Summary of Stock Based Compensation Expense | The Company recorded stock-based compensation expense related to stock options, restricted stock units and the Company’s Employee Stock Purchase Plan (“ESPP”) in the following expense categories of its condensed consolidated statements of operations and comprehensive loss: Three Months Ended March 31, 2019 2018 Research and development expenses $ 1,448 $ 1,928 General and administrative expenses 617 2,308 $ 2,065 $ 4,236 |
Collaboration Revenue (Tables)
Collaboration Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Changes in Contract Assets and Contract Liabilities | The following table presents changes in the Company’s contract assets and contract liabilities during the three months ended March 31, 2019 and 2018: Balance as of December 31, 2018 Additions Deductions Balance as of March 31, 2019 Three months ended March 31, 2019 Contract liabilities: Deferred revenue - related party 137,259 — (6,615 ) 130,644 Deferred revenue — 6,667 (260 ) 6,407 Balance as of January 1, 2018 Additions Deductions Balance as of March 31, 2018 Three months ended March 31, 2018 Contract liabilities: Deferred revenue - related party 123,783 175 (3,766 ) 120,192 During the three months ended March 31, 2019 and 2018 the Company recognized the following revenues as a result of changes in the contract liabilities balances in the respective periods (in thousands): Three Months Ended March 31, 2019 2018 Revenue recognized in the period from: Amounts included in the contract liability at the beginning of the period 6,615 3,766 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Operating Lease Assets and Liabilities | The following table summarizes the presentation in the Company’s condensed consolidated balance sheets of its operating leases: As of March 31, 2019 Assets: Operating lease assets $ 13,202 Liabilities: Operating lease liabilities $ 4,407 Operating lease liabilities, net of current portion 19,066 Total operating lease liabilities $ 23,473 |
Summary of Lease Costs | The following table summarizes the effect of lease costs in the Company’s condensed consolidated statement of operations and comprehensive loss: For the Three Months Ended March 31, 2019 Operating lease costs $ 1,154 Short-term lease costs 648 Variable lease costs 726 Total lease costs $ 2,528 |
Schedule of Minimum Lease Payments | The minimum lease payments for the next five years and thereafter is expected to be as follows (in thousands): As of March 31, 2019 2019 (remaining 9 months) $ 4,951 2020 6,382 2021 6,461 2022 6,390 2023 5,158 2024 and thereafter — Total future minimum lease payments $ 29,342 Less: interest (5,869 ) Present value of operating lease liabilities $ 23,473 |
Summary of Future Minimum Lease Payments Under Operating Leases | The future minimum lease payments under the Company’s operating leases as of December 31, 2018, were as follows (in thousands): As of December 31, 2018 2019 $ 6,342 2020 6,120 2021 6,221 2022 6,372 2023 5,158 2024 and thereafter — Total future minimum lease payments $ 30,213 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Components of Liabilities | As of March 31, 2019, the components of the liabilities were as follows: Employee Severance and Other Benefits Restructuring expenses $ 1,492 Cash payments $ 608 Liability included in accrued expenses and other current liabilities at March 31, 2019 $ 884 |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Entity incorporated year | Oct. 31, 2010 | ||
Entity incorporated state name | State of Delaware | ||
Accumulated deficit | $ 413,703 | $ 389,370 | |
Cash and cash equivalents | $ 53,600 | $ 85,820 | |
Percent of reduction in headcount of employees | 30.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Potential Common Shares Excluded from Calculation of Diluted Net Loss per Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from calculation of diluted net loss per share | 9,065,743 | 7,801,456 |
Stock Options to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from calculation of diluted net loss per share | 8,908,432 | 7,498,791 |
Unvested Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from calculation of diluted net loss per share | 150,400 | 302,665 |
Shares Issuable under ESPP [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from calculation of diluted net loss per share | 6,911 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies -Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Leases [Line Items] | ||
Lease, practical expedient | false | |
Operating lease assets | $ 13,202 | |
Operating lease liability | $ 23,473 | |
As reported under Topic 842 [Member] | ||
Leases [Line Items] | ||
Operating lease assets | $ 13,737 | |
Operating lease liability | $ 24,497 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Impact on Condensed Consolidated Balance Sheets for Opening Balances Related to Lease (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Line Items] | |||
Operating lease assets | $ 13,202 | ||
Accrued expenses and other current liabilities | 11,789 | $ 15,207 | |
Operating lease liabilities | 4,407 | ||
Lease incentive obligation, net of current portion | 6,776 | ||
Deferred rent | $ 2,216 | ||
Operating lease liabilities, net of current portion | $ 19,066 | ||
As reported under Topic 842 [Member] | |||
Leases [Line Items] | |||
Operating lease assets | $ 13,737 | ||
Accrued expenses and other current liabilities | 13,439 | ||
Operating lease liabilities | 4,285 | ||
Operating lease liabilities, net of current portion | 20,212 | ||
Adoption Adjustment [Member] | As reported under Topic 842 [Member] | |||
Leases [Line Items] | |||
Operating lease assets | 13,737 | ||
Accrued expenses and other current liabilities | (1,768) | ||
Operating lease liabilities | 4,285 | ||
Lease incentive obligation, net of current portion | (6,776) | ||
Deferred rent | (2,216) | ||
Operating lease liabilities, net of current portion | $ 20,212 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Fair value of liabilities on recurring basis | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash Equivalents | $ 40,187 | $ 39,982 | |
Total assets | 40,187 | 39,982 | |
Not Subject to Leveling [Member] | |||
Assets | |||
Cash Equivalents | [1] | 40,187 | 39,982 |
Total assets | [1] | $ 40,187 | $ 39,982 |
[1] | Certain cash equivalents that are valued using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Investments | $ 0 | $ 0 |
Restricted investments | $ 1,400,000 | $ 1,400,000 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 46,717 | $ 46,595 |
Less: Accumulated depreciation and amortization | (22,146) | (20,301) |
Property and equipment, net | 24,571 | 26,294 |
Laboratory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,806 | 14,695 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,875 | 2,864 |
Furniture and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,033 | 1,033 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 27,977 | 27,977 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 26 | $ 26 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization expense | $ 2,006 | $ 1,941 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Development and manufacturing costs | $ 6,779 | $ 7,046 |
Payroll and payroll-related costs | 3,550 | 5,020 |
Facility and other | 1,460 | 3,141 |
Total accrued expenses and other current liabilities | $ 11,789 | $ 15,207 |
Stockholders' Equity Common S_3
Stockholders' Equity Common Stock - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Number of Shares, Beginning Balance | 7,561,719 | |
Number of Shares, Granted | 2,148,250 | |
Number of Shares, Exercised | (38,125) | |
Number of Shares, Forfeited | (763,412) | |
Number of Shares, Ending Balance | 8,908,432 | 7,561,719 |
Number of Shares, Options vested and expected to vest | 8,908,432 | |
Number of Shares, Options exercisable | 4,659,499 | |
Weighted Average Exercise Price, Beginning Balance | $ 12.26 | |
Weighted Average Exercise Price, Granted | 6.16 | |
Weighted Average Exercise Price, Exercised | 3.14 | |
Weighted Average Exercise Price, Forfeited | 12.70 | |
Weighted Average Exercise Price, Ending Balance | 10.79 | $ 12.26 |
Weighted Average Exercise Price, Options vested and expected to vest | 10.79 | |
Weighted Average Exercise Price, Options exercisable | $ 12.56 | |
Weighted Average Remaining Contractual Term, Outstanding | 7 years 6 months 25 days | 7 years 2 months 23 days |
Weighted Average Remaining Contractual Term, Options vested and expected to vest | 7 years 6 months 25 days | |
Weighted Average Remaining Contractual Term, Options exercisable | 6 years 1 month 20 days | |
Aggregate Intrinsic Value, Outstanding | $ 9,684 | $ 4,958 |
Aggregate Intrinsic Value, Options vested and expected to vest | 9,684 | |
Aggregate Intrinsic Value, Options exercisable | $ 8,100 |
Stockholders' Equity Common S_4
Stockholders' Equity Common Stock - Stock Options - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant-date fair value of stock options | $ 4.60 | $ 7.02 |
Performance-based stock options to granted | 2,148,250 | |
Stock based compensation expense for stock options | $ 2,065,000 | $ 4,236,000 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant-date fair value of stock options | $ 4.58 | |
Performance-based stock options to granted | 1,100,000 | |
Stock options exercisable | 0 | |
Stock based compensation expense for stock options | $ 0 |
Stockholders' Equity Common S_5
Stockholders' Equity Common Stock - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Unvested restricted stock units, Beginning balance | shares | 226,900 |
Number of Shares, Forfeited | shares | (3,000) |
Number of Shares, Vested | shares | (73,500) |
Number of Shares, Unvested restricted stock units, Ending balance | shares | 150,400 |
Weighted Average Grant Date Fair Value, Unvested restricted stock units, Beginning balance | $ / shares | $ 9.64 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 8.07 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 9.98 |
Weighted Average Grant Date Fair Value, Unvested restricted stock units, Ending balance | $ / shares | $ 9.51 |
Stockholders' Equity Common S_6
Stockholders' Equity Common Stock - Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 2,065 | $ 4,236 |
Research and development expenses [Member] | Stock Options, Restricted Stock Units and Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 1,448 | 1,928 |
General and administrative expenses [Member] | Stock Options, Restricted Stock Units and Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 617 | $ 2,308 |
Stockholders' Equity Common S_7
Stockholders' Equity Common Stock - Employee Stock Purchase Plan - Additional Information (Detail) - Employee Stock Purchase Plan [Member] | 3 Months Ended |
Mar. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of eligible earning contributed toward semi-annual purchase of common stock | 15.00% |
Offering period under the plan | 6 months |
Percentage of purchase price with respect to each offering period | 85.00% |
Aggregate shares of common stock reserved for issuance | 1,900,000 |
Shares issued under ESPP | 400,000 |
Percentage of common stock shares outstanding | 1.00% |
Collaboration Revenue - Additio
Collaboration Revenue - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2019USD ($)Installment | Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Nov. 30, 2018USD ($) | Feb. 29, 2016USD ($) | Jan. 31, 2016USD ($) | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Collaboration revenue - related party | $ 6,615,000 | $ 3,766,000 | ||||||||
Deferred revenue, current | $ 2,770,000 | 2,770,000 | ||||||||
Deferred revenue, non-current | 3,637,000 | 3,637,000 | ||||||||
Research Agreement [Member] | AstraZeneca Inc. [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront cash payment | 6,407,000 | 6,407,000 | ||||||||
Upfront collaboration milestone payments receivable | 20,000,000 | 20,000,000 | ||||||||
Transaction price allocated to remaining performance obligations | $ 33,900,000 | 33,900,000 | ||||||||
Collaboration revenue - related party | $ 260,000 | |||||||||
Minimum exclusivity period | 3 years | |||||||||
Number of installments | Installment | 3 | |||||||||
Option exercise period from exclusivity period | 90 days | |||||||||
Terms of the definitive license agreement good faith negotiation period | 6 months | |||||||||
Other terms of definitive license agreement period | 1 year | |||||||||
Research and development estimated reimbursement costs | $ 13,900,000 | |||||||||
Deferred revenue, current | $ 2,770,000 | 2,770,000 | ||||||||
Deferred revenue, non-current | 3,637,000 | 3,637,000 | ||||||||
Nestlé Health Science [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront cash payment | 130,644,000 | 130,644,000 | $ 120,000,000 | |||||||
Maximum development milestone payments to be received | 285,000,000 | 285,000,000 | ||||||||
Maximum regulatory payments to be received | 375,000,000 | 375,000,000 | ||||||||
Maximum amount to be received on achievement of certain commercial milestones | 1,125,000,000 | 1,125,000,000 | ||||||||
Upfront collaboration milestone payments receivable | $ 40,000,000 | |||||||||
Proceeds on achievement of development milestone | $ 40,000,000 | $ 40,000,000 | $ 20,000,000 | $ 10,000,000 | ||||||
Transaction price allocated to remaining performance obligations | 190,000,000 | 190,000,000 | ||||||||
Collaboration revenue - related party | 6,615,000 | $ 3,766,000 | ||||||||
Deferred revenue | $ 130,644,000 | $ 137,259,000 | $ 130,644,000 | $ 137,259,000 | ||||||
Nestlé Health Science [Member] | Phase 2 [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront collaboration milestone payments receivable | $ 20,000,000 | |||||||||
Nestlé Health Science [Member] | Phase 3 [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront collaboration milestone payments receivable | $ 20,000,000 |
Collaboration Revenue - Changes
Collaboration Revenue - Changes in Contract Assets and Contract Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Deferred revenue - related party, Deductions | $ (6,615) | $ (3,766) |
ASU 2014-09 [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Deferred revenue - related party, Balance at beginning of period | 137,259 | 123,783 |
Deferred revenue - related party, Additions | 175 | |
Deferred revenue - related party, Deductions | (6,615) | (3,766) |
Deferred revenue - related party, Balance at end of period | 130,644 | $ 120,192 |
Deferred revenue, Additions | 6,667 | |
Deferred revenue, Deductions | (260) | |
Deferred revenue, Balance at end of period | $ 6,407 |
Collaboration Revenue - Schedul
Collaboration Revenue - Schedule of Revenue Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue recognized in the period from: | ||
Amounts included in the contract liability at the beginning of the period | $ 6,615 | $ 3,766 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Leased Assets [Line Items] | ||
Existence of option to extend | true | |
Option to extend, description | Certain leases include one or more options to renew, exercised at the Company’s sole discretion, with renewal terms that can extend the lease from one year to five years. | |
Cash payments for operating leases | $ 1,642 | |
Weighted average remaining lease term | 4 years 6 months 21 days | |
Weighted average incremental borrowing rate | 11.00% | |
Office, Laboratory and Manufacturing Space [Member] | ||
Operating Leased Assets [Line Items] | ||
Rental expense related to office and laboratory space | $ 1,099 | |
Minimum [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating lease, remaining term | 1 year | |
Lease extension period | 1 year | |
Maximum [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating lease, remaining term | 5 years | |
Lease extension period | 5 years |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Assets and Liabilities (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Assets | |
Operating lease assets | $ 13,202 |
Liabilities: | |
Operating lease liabilities | 4,407 |
Operating lease liabilities, net of current portion | 19,066 |
Total operating lease liabilities | $ 23,473 |
Leases - Summary of Lease Costs
Leases - Summary of Lease Costs (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 1,154 |
Short-term lease costs | 648 |
Variable lease costs | 726 |
Total lease costs | $ 2,528 |
Leases - Schedule of Minimum Le
Leases - Schedule of Minimum Lease Payments (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 (remaining 9 months) | $ 4,951 |
2020 | 6,382 |
2021 | 6,461 |
2022 | 6,390 |
2023 | 5,158 |
Total future minimum lease payments | 29,342 |
Less: interest | (5,869) |
Total operating lease liabilities | $ 23,473 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments Under Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 6,342 |
2020 | 6,120 |
2021 | 6,221 |
2022 | 6,372 |
2023 | 5,158 |
Total future minimum lease payments | $ 30,213 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | |
Restructuring Cost And Reserve [Line Items] | |||
Percent of reduction in headcount of employees | 30.00% | ||
Restructuring Charges | $ 1,492 | ||
Cash payments | 608 | ||
Scenario Forecast [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring liabilities expected to pay | $ 884 | ||
Severance And Other Termination Benefits [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring Charges | $ 1,492 |
Restructuring - Schedule of Com
Restructuring - Schedule of Components of Liabilities (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring expenses | $ 1,492 |
Cash payments | 608 |
Employee Severance And Other Benefits [Member] | Accrued Expenses and Other Current Liabilities [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring expenses | 1,492 |
Cash payments | 608 |
Liability included in accrued expenses and other current liabilities at March 31, 2019 | $ 884 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 0 | $ 0 |
Accrued interest or tax penalties | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Indemnification Agreement [Member] | ||
Other Commitments [Line Items] | ||
Indemnification obligations accrued | $ 0 | $ 0 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Feb. 29, 2016 | |
Related Party Transaction [Line Items] | |||
Collaboration revenue - related party | $ 6,615,000 | $ 3,766,000 | |
Nestlé Health Science [Member] | |||
Related Party Transaction [Line Items] | |||
Collaboration revenue - related party | 6,615,000 | 3,766,000 | |
Deferred revenue | 130,644,000 | $ 120,000,000 | |
Payments under agreements with related party | 0 | $ 0 | |
Due from related party for the reimbursement of development costs | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Subsequent Event [Line Items] | |||
Collaboration revenue - related party | $ 6,615 | $ 3,766 | |
Nestlé Health Science [Member] | |||
Subsequent Event [Line Items] | |||
Collaboration revenue - related party | $ 6,615 | $ 3,766 | |
Nestlé Health Science [Member] | Phase 3 [Member] | Scenario Forecast [Member] | |||
Subsequent Event [Line Items] | |||
Collaboration revenue - related party | $ 7,000 |