Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Revolution Medicines, Inc. | |
Entity Central Index Key | 0001628171 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 167,038,943 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-39219 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-2029180 | |
Entity Address, Address Line One | 700 Saginaw Drive | |
Entity Address, City or Town | Redwood City | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94063 | |
City Area Code | 650 | |
Local Phone Number | 481-6801 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock $0.0001 Par Value per Share | |
Trading Symbol | RVMD | |
Security Exchange Name | NASDAQ | |
Warrants | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase 0.1112 shares of common stock expiring 2026 | |
Trading Symbol | RVMDW | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 275,713 | $ 696,148 |
Marketable securities | 1,315,002 | 1,156,807 |
Accounts receivable | 0 | 1,254 |
Prepaid expenses and other current assets | 34,015 | 25,072 |
Total current assets | 1,624,730 | 1,879,281 |
Property and equipment, net | 25,284 | 22,865 |
Operating lease right-of-use asset | 75,305 | 77,149 |
Intangible assets, net | 57,205 | 57,739 |
Goodwill | 14,608 | 14,608 |
Restricted cash | 3,031 | 3,031 |
Other noncurrent assets | 8,274 | 7,032 |
Total assets | 1,808,437 | 2,061,705 |
Current liabilities: | ||
Accounts payable | 29,319 | 61,788 |
Accrued expenses and other current liabilities | 67,681 | 74,694 |
Operating lease liability, current | 8,332 | 7,369 |
Total current liabilities | 105,332 | 143,851 |
Deferred tax liability | 3,115 | 3,115 |
Operating lease liability, noncurrent | 79,079 | 80,575 |
Warrant liabilities | 1,407 | 6,512 |
Other noncurrent liabilities | 656 | 1,458 |
Total liabilities | 189,589 | 235,511 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized at June 30, 2024 and December 31, 2023, respectively; none issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 0 | 0 |
Common stock, $0.0001 par value; 300,000,000 shares authorized as of June 30, 2024 and December 31, 2023, respectively; 171,206,508 and 170,234,594 shares issued as of June 30, 2024 and December 31, 2023, respectively; 165,646,508 and 164,674,594 shares outstanding as of June 30, 2024 and December 31, 2023, respectively | 16 | 16 |
Additional paid-in capital | 3,007,639 | 2,963,342 |
Accumulated other comprehensive income (loss) | (1,863) | 544 |
Accumulated deficit | (1,386,944) | (1,137,708) |
Total stockholders' equity | 1,618,848 | 1,826,194 |
Total liabilities and stockholders' equity | $ 1,808,437 | $ 2,061,705 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
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 or stated value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares, issued | 171,206,508 | 170,234,594 |
Common stock, shares, outstanding | 165,646,508 | 164,674,594 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue: | ||||
Total revenue | $ 0 | $ 3,824 | $ 0 | $ 10,838 |
Revenue, Product and Service [Extensible Enumeration] | Collaboration Revenue Member | Collaboration Revenue Member | Collaboration Revenue Member | Collaboration Revenue Member |
Operating expenses: | ||||
Research and development | $ 134,932 | $ 97,981 | $ 252,953 | $ 166,928 |
General and administrative | 21,711 | 14,640 | 44,549 | 27,864 |
Total operating expenses | 156,643 | 112,621 | 297,502 | 194,792 |
Loss from operations | (156,643) | (108,797) | (297,502) | (183,954) |
Other income, net: | ||||
Interest income | 21,487 | 10,499 | 45,247 | 17,558 |
Other income (expense), net | 16 | 0 | (2,793) | 0 |
Change in fair value of warrant liabilities and contingent earn-out shares | 1,907 | 0 | 5,812 | 0 |
Total other income, net | 23,410 | 10,499 | 48,266 | 17,558 |
Loss before income taxes | (133,233) | (98,298) | (249,236) | (166,396) |
Benefit from income taxes | 0 | 0 | 0 | 0 |
Net loss | $ (133,233) | $ (98,298) | $ (249,236) | $ (166,396) |
Net loss per share attributable to common stockholders, basic | $ (0.81) | $ (0.92) | $ (1.51) | $ (1.65) |
Net loss per share attributable to common stockholders, diluted | $ (0.81) | $ (0.92) | $ (1.51) | $ (1.65) |
Weighted-average common shares used to compute net loss per share, basic | 165,141,936 | 106,884,185 | 164,935,542 | 100,891,375 |
Weighted-average common shares used to compute net loss per share, diluted | 165,141,936 | 106,884,185 | 164,935,542 | 100,891,375 |
Comprehensive loss: | ||||
Net Income (Loss) | $ (133,233) | $ (98,298) | $ (249,236) | $ (166,396) |
Other comprehensive gain (loss): | ||||
Unrealized gain (loss) on investments, net | (665) | (695) | (2,407) | 529 |
Comprehensive loss | $ (133,898) | $ (98,993) | $ (251,643) | $ (165,867) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income/(Loss) | Accumulated Deficit | Follow-on Public Offering | Follow-on Public Offering Common Stock | Follow-on Public Offering Additional Paid-In Capital | Market Offering [Member] | Market Offering [Member] Common Stock | Market Offering [Member] Additional Paid-In Capital |
Beginning balance at Dec. 31, 2022 | $ 685,188 | $ 9 | $ 1,388,300 | $ (1,780) | $ (701,341) | ||||||
Beginning balance, shares at Dec. 31, 2022 | 90,411,912 | ||||||||||
Issuance of common stock pursuant to stock option exercises | 499 | 499 | |||||||||
Issuance of common stock pursuant to stock option exercises, shares | 118,747 | ||||||||||
Issuance of common stock related to vesting of restricted stock units, shares | 85,891 | ||||||||||
Issuance of common stock from follow-on offering, net of offering costs | $ 323,706 | $ 2 | $ 323,704 | ||||||||
Issuance of common stock from follow-on offering, net of offering costs, shares | 15,681,818 | ||||||||||
Repurchases of early exercised stock, shares | (291) | ||||||||||
Stock-based compensation expense | 9,699 | 9,699 | |||||||||
Net unrealized loss on marketable securities | 1,224 | 1,224 | |||||||||
Net Income (Loss) | (68,098) | (68,098) | |||||||||
Ending balance at Mar. 31, 2023 | 952,218 | $ 11 | 1,722,202 | (556) | (769,439) | ||||||
Ending balance, shares at Mar. 31, 2023 | 106,298,077 | ||||||||||
Beginning balance at Dec. 31, 2022 | 685,188 | $ 9 | 1,388,300 | (1,780) | (701,341) | ||||||
Beginning balance, shares at Dec. 31, 2022 | 90,411,912 | ||||||||||
Net unrealized loss on marketable securities | 529 | ||||||||||
Net Income (Loss) | (166,396) | ||||||||||
Ending balance at Jun. 30, 2023 | 930,835 | $ 11 | 1,799,812 | (1,251) | (867,737) | ||||||
Ending balance, shares at Jun. 30, 2023 | 109,141,094 | ||||||||||
Beginning balance at Dec. 31, 2022 | 685,188 | $ 9 | 1,388,300 | (1,780) | (701,341) | ||||||
Beginning balance, shares at Dec. 31, 2022 | 90,411,912 | ||||||||||
Ending balance at Dec. 31, 2023 | 1,826,194 | $ 16 | 2,963,342 | 544 | (1,137,708) | ||||||
Ending balance, shares at Dec. 31, 2023 | 164,674,594 | ||||||||||
Beginning balance at Mar. 31, 2023 | 952,218 | $ 11 | 1,722,202 | (556) | (769,439) | ||||||
Beginning balance, shares at Mar. 31, 2023 | 106,298,077 | ||||||||||
Issuance of common stock pursuant to stock option exercises | 468 | 468 | |||||||||
Issuance of common stock pursuant to stock option exercises, shares | 45,918 | ||||||||||
Issuance of common stock related to vesting of restricted stock units, shares | 174,252 | ||||||||||
Issuance of common stock related to employee stock purchase plan | 139,967 | ||||||||||
Issuance of common stock related to employee stock purchase plan (Value) | 2,109 | 2,109 | |||||||||
Issuance of common stock from follow-on offering, net of offering costs | $ 62,053 | $ 62,053 | |||||||||
Issuance of common stock from follow-on offering, net of offering costs, shares | 2,482,880 | ||||||||||
Stock-based compensation expense | 12,980 | 12,980 | |||||||||
Net unrealized loss on marketable securities | (695) | (695) | |||||||||
Net Income (Loss) | (98,298) | (98,298) | |||||||||
Ending balance at Jun. 30, 2023 | 930,835 | $ 11 | 1,799,812 | (1,251) | (867,737) | ||||||
Ending balance, shares at Jun. 30, 2023 | 109,141,094 | ||||||||||
Beginning balance at Dec. 31, 2023 | 1,826,194 | $ 16 | 2,963,342 | 544 | (1,137,708) | ||||||
Beginning balance, shares at Dec. 31, 2023 | 164,674,594 | ||||||||||
Issuance of common stock pursuant to stock option exercises | 810 | 810 | |||||||||
Issuance of common stock pursuant to stock option exercises, shares | 73,342 | ||||||||||
Issuance of common stock related to vesting of restricted stock units, shares | 165,078 | ||||||||||
Stock-based compensation expense | 16,208 | 16,208 | |||||||||
Net unrealized loss on marketable securities | (1,742) | (1,742) | |||||||||
Net Income (Loss) | (116,003) | (116,003) | |||||||||
Ending balance at Mar. 31, 2024 | 1,725,467 | $ 16 | 2,980,360 | (1,198) | (1,253,711) | ||||||
Ending balance, shares at Mar. 31, 2024 | 164,913,014 | ||||||||||
Beginning balance at Dec. 31, 2023 | 1,826,194 | $ 16 | 2,963,342 | 544 | (1,137,708) | ||||||
Beginning balance, shares at Dec. 31, 2023 | 164,674,594 | ||||||||||
Net unrealized loss on marketable securities | (2,407) | ||||||||||
Net Income (Loss) | (249,236) | ||||||||||
Ending balance at Jun. 30, 2024 | 1,618,848 | $ 16 | 3,007,639 | (1,863) | (1,386,944) | ||||||
Ending balance, shares at Jun. 30, 2024 | 165,646,508 | ||||||||||
Beginning balance at Mar. 31, 2024 | 1,725,467 | $ 16 | 2,980,360 | (1,198) | (1,253,711) | ||||||
Beginning balance, shares at Mar. 31, 2024 | 164,913,014 | ||||||||||
Issuance of common stock pursuant to stock option exercises | 4,340 | 4,340 | |||||||||
Issuance of common stock pursuant to stock option exercises, shares | 238,793 | ||||||||||
Issuance of common stock related to vesting of restricted stock units, shares | 303,953 | ||||||||||
Issuance of common stock related to employee stock purchase plan | 190,748 | ||||||||||
Issuance of common stock related to employee stock purchase plan (Value) | 3,164 | 3,164 | |||||||||
Stock-based compensation expense | 19,775 | 19,775 | |||||||||
Net unrealized loss on marketable securities | (665) | (665) | |||||||||
Net Income (Loss) | (133,233) | (133,233) | |||||||||
Ending balance at Jun. 30, 2024 | $ 1,618,848 | $ 16 | $ 3,007,639 | $ (1,863) | $ (1,386,944) | ||||||
Ending balance, shares at Jun. 30, 2024 | 165,646,508 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | |
Market Offering [Member] | ||
Stock issuance cost | $ 1,426 | |
Follow-on Public Offering | ||
Stock issuance cost | $ 21,294 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Cash flows from operating activities | |||||
Net loss | $ (249,236) | $ (166,396) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Loss on disposal of fixed assets | 116 | 1 | |||
Amortization of intangible assets | $ 300 | $ 300 | 534 | 534 | |
Stock-based compensation expense | 35,983 | 22,679 | |||
Depreciation | 1,600 | 1,200 | 3,182 | 2,428 | |
Change in fair value of warrant liabilities and contingent earn-out shares | (5,812) | 0 | |||
Net amortization of premium or discount on marketable securities | (26,146) | (8,428) | |||
Amortization of operating lease right-of-use asset | 1,844 | 1,344 | |||
Impairment of assets | 2,761 | 0 | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 1,254 | 2,163 | |||
Prepaid expenses and other current assets | (8,943) | 476 | |||
Accounts payable | (33,040) | 7,584 | |||
Accrued expenses and other current liabilities | (6,594) | 13,382 | |||
Deferred revenue | 0 | (4,459) | |||
Operating lease liability | (533) | (949) | |||
Other noncurrent assets | (4,002) | 178 | |||
Other noncurrent liabilities | (95) | (49) | |||
Net cash used in operating activities | (288,727) | (129,512) | |||
Cash flows from investing activities | |||||
Purchases of marketable securities | (1,076,536) | (369,272) | |||
Maturities of marketable securities | 942,080 | 332,601 | |||
Purchases of property and equipment | (5,566) | (2,877) | |||
Net cash used in investing activities | (140,022) | (39,548) | |||
Cash flows from financing activities | |||||
Proceeds from issuance of common stock upon follow-on offering, net of issuance costs | 0 | 323,706 | |||
Proceeds from issuance of common stock upon at-the-market offering, net of issuance costs | 0 | 62,053 | |||
Proceeds from issuance of common stock under equity incentive plans | 5,150 | 967 | |||
Proceeds from issuance of common stock related to employee stock purchase plan | 3,164 | 2,109 | |||
Net cash provided by financing activities | 8,314 | 388,835 | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | (420,435) | 219,775 | |||
Cash, cash equivalents and restricted cash - beginning of period | 699,179 | 163,149 | $ 163,149 | ||
Cash, cash equivalents and restricted cash - end of period | 278,744 | 382,924 | 278,744 | 382,924 | 699,179 |
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets | |||||
Cash and cash equivalents | 275,713 | 380,330 | 275,713 | 380,330 | $ 696,148 |
Restricted cash | 3,031 | 2,594 | 3,031 | 2,594 | |
Cash, cash equivalents and restricted cash - end of period | $ 278,744 | $ 382,924 | 278,744 | 382,924 | |
Supplemental disclosure of non-cash investing and financing activities | |||||
Purchases of property and equipment in accounts payable and accrued expenses and other current liabilities | $ 2,762 | $ 2,030 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ (133,233) | $ (116,003) | $ (98,298) | $ (68,098) | $ (249,236) | $ (166,396) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | The following directors and officers of the Company adopted or terminated, as applicable Rule 10b5-1 trading arrangements intended to satisfy the affirmative defense of Rule 10b5-1(c) promulgated under the Exchange Act. The details of these arrangements are as follows: On September 7, 2023 , Sushil Patel , Ph.D., a member of our board of directors , adopted a Rule 10b5-1 trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) promulgated under the Exchange Act, which provides for the potential exercise and sale of up to 14,310 shares of our common stock subject to stock options held by Dr. Patel. The trading plan will terminate at the earlier of the execution of all trading orders pursuant to the plan and December 7, 2024 . On March 14, 2024 , Jack Anders , Chief Financial Officer , adopted a Rule 10b5-1 trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) promulgated under the Exchange Act, which provides for the potential exercise and sale of up to 10,000 shares of our common stock subject to a stock option held by Mr. Anders. The trading plan will terminate at the earlier of the execution of all trading orders pursuant to the plan and August 1, 2025 . On March 15, 2024 , Steve Kelsey , M.D., FRCP, FRCPath, President, Research and Development , adopted a Rule 10b5-1 trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) promulgated under the Exchange Act, which provides for the potential exercise and sale of up to 100,000 shares of our common stock subject to a stock option held by Dr. Kelsey. The trading plan will terminate at the earlier of the execution of all trading orders pursuant to the plan and December 15, 2024 . On March 20, 2024 , Jeff Cislini , Senior Vice President, General Counsel and Secretary , adopted a Rule 10b5-1 trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) promulgated under the Exchange Act, which provides for (i) the potential exercise and sale of up to 20,000 shares of our common stock subject to stock options held by Mr. Cislini and (ii) the potential sale of shares of our common stock issued upon the settlement of 17,024 restricted stock units, less the number of shares sold to cover tax withholding obligations in connection with the vesting and settlement of such restricted stock units. The trading plan will terminate at the earlier of the execution of all trading orders pursuant to the plan and May 31, 2025 . On March 22, 2024 , Margaret Horn , J.D., Chief Operating Officer , adopted a Rule 10b5-1 trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) promulgated under the Exchange Act, which provides for the potential exercise and sale of up to 50,000 shares of our common stock subject to a stock option held by Ms. Horn. The trading plan will terminate at the earlier of the execution of all trading orders pursuant to the plan and March 31, 2025 . On May 29, 2024 , Barbara Weber , M.D., a member of our board of directors , adopted a Rule 10b5-1 trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) promulgated under the Exchange Act for the potential sale of up to 5,200 shares of our common stock held by Dr. Weber. The trading plan will terminate at the earlier of the execution of all trading orders pursuant to the plan and May 29, 2025 . On August 2, 2024 , Wei Lin , M.D., Chief Medical Officer , terminated his Rule 10b5-1 trading arrangement adopted on March 21, 2024 that covered the sale of the number of shares of our common stock required to be sold to cover tax withholding obligations for restricted stock unit awards vesting after June 15, 2024. |
Sushil Patel [Member] | |
Trading Arrangements, by Individual | |
Name | Sushil Patel |
Title | Ph.D., a member of our board of directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | September 7, 2023 |
Arrangement Duration | 457 days |
Aggregate Available | 14,310 |
Trading Arrangement Expiration Date | December 7, 2024 |
Jack Anders [Member] | |
Trading Arrangements, by Individual | |
Name | Jack Anders |
Title | Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 14, 2024 |
Arrangement Duration | 505 days |
Aggregate Available | 10,000 |
Trading Arrangement Expiration Date | August 1, 2025 |
Steve Kelsey [Member] | |
Trading Arrangements, by Individual | |
Name | Steve Kelsey |
Title | M.D., FRCP, FRCPath, President, Research and Development |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 275 days |
Aggregate Available | 100,000 |
Trading Arrangement Expiration Date | December 15, 2024 |
Jeff Cislini [Member] | |
Trading Arrangements, by Individual | |
Name | Jeff Cislini |
Title | Senior Vice President, General Counsel and Secretary |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 20, 2024 |
Arrangement Duration | 437 days |
Aggregate Available | 20,000 |
Trading Arrangement Expiration Date | May 31, 2025 |
Margaret Horn [Member] | |
Trading Arrangements, by Individual | |
Name | Margaret Horn |
Title | J.D., Chief Operating Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 22, 2024 |
Arrangement Duration | 374 days |
Aggregate Available | 50,000 |
Trading Arrangement Expiration Date | March 31, 2025 |
Barbara Weber [Member] | |
Trading Arrangements, by Individual | |
Name | Barbara Weber |
Title | M.D., a member of our board of directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 29, 2024 |
Arrangement Duration | 365 days |
Aggregate Available | 5,200 |
Trading Arrangement Expiration Date | May 29, 2025 |
Wei Lin [Member] | |
Trading Arrangements, by Individual | |
Name | Wei Lin |
Title | M.D., Chief Medical Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 21, 2024 |
Rule 10b5-1 Arrangement Terminated | true |
Termination Date | August 2, 2024 |
Arrangement Duration | 135 days |
Organization
Organization | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Revolution Medicines, Inc. (the Company) is a clinical-stage precision oncology company developing novel targeted therapies for RAS-addicted cancers. The Company was founded in October 2014 and is headquartered in Redwood City, California. Liquidity The Company has incurred net operating losses in each year since inception. As of June 30, 2024 , the Company had an accumulated deficit of $ 1.4 billion . Management believes that its existing cash, cash equivalents and marketable securities will enable the Company to fund its planned operations for at least 12 months following the issuance date of these unaudited condensed consolidated financial statements. The Company has been able to fund its operations through the issuance and sale of common stock and redeemable convertible preferred stock, the acquisition of EQRx, Inc. (EQRx), and upfront payments and research and development cost reimbursement received under the Company’s prior collaboration agreement with Genzyme Corporation, an affiliate of Sanofi. Future capital requirements will depend on many factors, including the timing and extent of spending on research and development. There can be no assurance that, in the event the Company requires additional financing, such financing will be available at terms acceptable to the Company, if at all. Failure to generate sufficient cash flows from operations, raise additional capital and reduce discretionary spending should additional capital not become available could have a material adverse effect on the Company’s ability to achieve its business objectives. Public offerings In November 2021, the Company entered into a sales agreement with Cowen and Company, LLC, as amended in March 2024, to sell shares of its common stock, from time to time, with aggregate gross proceeds of up to $ 250 million, through an at-the-market equity offering program (the 2021 ATM Program). During the year ended December 31, 2023, the Company sold an aggregate of 2,482,880 shares of common stock under the 2021 ATM Program resulting in gross proceeds to the Company of $ 63.5 million. After deducting commissions and expenses of $ 1.4 million, net proceeds to the Company under the 2021 ATM Program were $ 62.1 million during the year ended December 31, 2023. During the three and six months ended June 30, 2024 , the Company did no t sell any shares of the Company’s common stock under the 2021 ATM Program. In March 2023, the Company issued and sold 15,681,818 shares of its common stock in an underwritten public offering (including the exercise in full by the underwriters of their option to purchase an additional 2,045,454 shares of the Company’s common stock) at a price to the public of $ 22.00 per share, for net proceeds of $ 323.7 million, after deducting underwriting discounts and commissions of $ 20.7 million and expenses of $ 0.6 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies Basis of presentation The unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (GAAP) and applicable rules of the Securities and Exchange Commission (SEC) regarding interim financial reporting and, in the opinion of management, include all normal and recurring adjustments which are necessary to state fairly the Company’s financial position and results of operations for the reported periods. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 26, 2024. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations. The unaudited condensed consolidated financial statements for the periods ended June 30, 2024 and June 30, 2023 include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The functional and reporting currency of the Company and its subsidiaries is the U.S. dollar. Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including the fair value of assets acquired and liabilities assumed and related purchase price allocation, revenue recognition, clinical accruals, income taxes, useful lives of property and equipment and intangible assets, impairment of goodwill and intangibles, impairment of in-process research and development and developed technologies, the incremental borrowing rate for determining operating lease assets and liabilities, warrant liabilities and stock-based compensation. Estimates are based on historical experience, complex judgments, facts and circumstances available at the time and various other assumptions that are believed to be reasonable under the circumstances but are inherently uncertain and unpredictable. Actual results could materially differ from the Company’s estimates, and there may be changes to the estimates in future periods . Concentration of credit risk and other risks and uncertainties Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents and marketable securities. The Company maintains bank deposits in federally insured financial institutions and these deposits may exceed federally insured limits. The Company is exposed to credit risk in the event of a default by the financial institutions holding its bank deposits and issuers of its investments. The Company’s investment policy limits investments to money market funds, certain types of debt securities issued by the U.S. government and its agencies, certificates of deposit, corporate debt and commercial paper, and places restrictions on the credit ratings, maturities and concentration by type and issuer. The Company has not experienced any significant losses on its deposits of cash and cash equivalents or investments. Warrants Warrants assumed as part of the EQRx transaction as described in Note 3 contain provisions that require them to be classified as derivative liabilities in accordance with Accounting Standards Codification Topic 815, Derivatives and Hedging (ASC 815). Accordingly, at the end of each reporting period, changes in fair value during the period are recognized as a change in fair value of warrant liabilities within the consolidated statements of operations and comprehensive loss. The Company adjusts the warrant liabilities for changes in the fair value until the earlier of (a) the exercise or expiration of the warrants or (b) the redemption of the warrants, at which time the warrants will be reclassified to additional paid-in capital. Derivative warrant liabilities are classified as noncurrent liabilities, as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities. Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB), under its ASC or other standard setting bodies, and adopted by the Company as of the specified effective date. No new pronouncements have been adopted by the Company for the three and six months ended June 30, 2024. Recently announced accounting pronouncements On March 6, 2024, the SEC issued Final Rule No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. The rule will require registrants to provide certain climate-related information in their registration statements and annual reports. The rule requires information about a registrant’s climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks also includes disclosure of a registrant's greenhouse gas emissions. In addition, the rules will require registrants to present certain climate-related financial metrics in their audited financial statements. The Company is evaluating the potential impact of this rule on the condensed consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures (ASU 2023-07). ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for public business entities for fiscal years beginning after In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures (ASU |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Acquisition | 3. Acquisition On November 9, 2023 (the Closing Date), the Company completed the acquisition of EQRx (the EQRx Acquisition). Pursuant to the Agreement and Plan of Merger, dated as of July 31, 2023 (the Merger Agreement), EQRx, LLC survived as a wholly owned subsidiary of the Company. On the Closing Date, each share of EQRx common stock issued and outstanding immediately prior to the completion of the EQRx Acquisition was converted into the right to receive 0.1112 shares of the Company’s common stock. Outstanding stock options, restricted stock units and restricted stock awards of EQRx were also converted into the Company’s common stock, subject to the terms of the Merger Agreement. The Company issued 54.8 million shares of the Company’s common stock and paid $ 4.0 million in taxes to satisfy statutory income tax withholding obligations in conjunction with the EQRx Acquisition. The EQRx Acquisition provided the Company with additional financing through the acquisition of EQRx’s cash, cash equivalents, and marketable securities, which comprised the majority of the net assets acquired from EQRx. As the Company primarily acquired these monetary assets, the EQRx Acquisition was accounted for as a capital-raising transaction with an asset acquisition component. EQRx does not meet the definition of a business under Financial Accounting Standards Board’s Accounting Standards Codification Topic 805, Business Combinations (ASC 805), due to the fair value of EQRx, excluding cash and cash equivalents, as of the date of the EQRx Acquisition, being concentrated primarily in one asset class, marketable securities. Under the asset acquisition method of accounting, the purchase consideration was allocated and recorded by the Company on a fair value basis to the net assets acquired on the Closing Date. Any excess fair value of net assets of EQRx over the cost of the acquisition following determination of the actual purchase consideration is allocated to EQRx’s qualifying assets under ASC 805. As there were no qualifying assets acquired the excess fair value of net assets under ASC 805 was recorded to equity, as a capital-raising transaction. Because EQRx had wound down the majority of its research and development activities and its operations by the time of the Closing Date, the net assets being acquired are primarily comprised of cash and cash equivalents and marketable securities. The following table reflects the consideration transferred by the Company: Amount (in thousands) Fair value of shares of combined company to be owned by EQRx stockholders (1) $ 1,096,826 Less: Fair value of EQRx equity awards converting to Revolution Medicines common stock attributable to post-combination service $ ( 11,150 ) Taxes paid by Revolution Medicines on behalf of EQRx to satisfy statutory income tax withholding obligations 4,026 Fair value of warrants 6,907 Fair value of contingent earn-out shares 490 Purchase price $ 1,097,099 (1) Represents the fair value of approximately 54.8 million shares of Revolution Medicines common stock issued, calculated using the per share price of Revolution Medicines common stock of $ 20.02 as of November 9, 2023. The following table summarizes the fair value of the assets acquired and liabilities assumed as of the Closing Date: Amount (in thousands) Cash and cash equivalents $ 860,918 Marketable securities 313,878 Prepaid expenses and other current assets 12,084 Restricted cash 633 Other noncurrent assets 2,912 Accounts payable ( 6,893 ) Accrued expenses and other current liabilities ( 30,506 ) Net assets acquired $ 1,153,026 The excess fair value of net assets acquired over the purchase price was $ 55.9 million and was recorded to additional paid-in capital. The following table calculates the excess of fair value of assets acquired over the purchase consideration under asset acquisition accounting: Amount (in thousands) Purchase price $ 1,097,099 Less: net assets acquired ( 1,153,026 ) Remaining excess fair value of net assets acquired over the purchase price $ ( 55,927 ) Transaction costs of $ 20.7 million incurred by the Company to complete the EQRx Acquisition were accounted for as a direct reduction to the Company’s additional paid-in capital, as these costs were primarily incurred to issue Revolution Medicines common stock as part of the capital-raising transaction. In connection with the EQRx Acquisition, certain unvested outstanding stock options, restricted stock units and restricted stock awards of EQRx were accelerated and converted into the Company’s common stock. As a result, the fair-value of the unvested portion of the accelerated EQRx equity awards of $ 11.2 million was recognized as a post-combination expense and included in stock-based compensation expense for the year ended December 31, 2023. In connection with the EQRx Acquisition, as of the Closing Date, all public warrants of EQRx that were outstanding and unexercised immediately prior to the Closing Date were converted into 11,039,957 publicly traded warrants (Public Warrants) and 8,693,333 private placement warrants of the Company (Private Warrants and, together with the Public Warrants, the Warrants). Each Warrant entitles the holder to purchase 0.1112 shares of the Company’s common stock, at an exercise price of $ 11.50 per such fractional share. The fair value of the Warrants on the Closing Date of $ 6.9 million was included in the purchase price. The Warrants expire in December 2026 . The Public Warrants and Private Warrants met liability classification requirements because the Warrants contain provisions whereby adjustments to the settlement amount of the Warrants are based on a variable that is not an input to the fair value of a “fix-for-fixed” option and the existence of the potential for net cash settlement for the Warrant holders in the event of a tender offer. In addition, the Private Warrants are potentially subject to a different settlement amount depending upon the holder of the Private Warrants, which precludes them from being considered indexed to the entity’s own stock. Therefore, the Warrants are classified as liabilities. Prior to the EQRx Acquisition, holders of rights to EQRx earn-out shares held in escrow were entitled to receive additional shares of EQRx common stock for no consideration upon the occurrence of certain stock price-based triggering events (the earn-out shares). The earn-out shares were converted in the same manner as all other shares of EQRx common stock under the Merger Agreement and holders of rights to earn-out shares were entitled to receive up to 5,560,000 shares of common stock of the Company, subject to the triggering events. In conjunction with the Merger Agreement, holders of rights to approximately 82 % of the holders of rights to the earn-out shares signed and delivered to the Company waiver and release agreements pursuant to which, among other things, they have waived their respective rights to receive any such earn-out shares to which they may have been entitled upon the occurrence of any vesting condition described below. As a result of these waiver and release agreements, the maximum amount of Company common stock to be issued to holders of rights to earn-out shares upon the occurrence of certain triggering events was reduced to 973,976 shares. Holders of earn-out shares may receive up to 681,784 shares of the Company common stock if the common stock price is greater than or equal to $ 112.41 for at least 20 out of 30 consecutive trading days prior to December 17, 2024, and up to 292,192 additional shares of Company common stock if the common stock price is greater than or equal to $ 148.38 for at least 20 out of 30 consecutive trading days prior to December 17, 2024. The rights to the earn-out shares expire on December 17, 2024 . The fair value of the earn-out shares on the Closing Date of $ 0.5 million was included in the purchase price. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair value measurements The carrying amounts of certain of the Company’s financial instruments, including cash equivalents, marketable securities, accounts payable and accrued expenses and other current liabilities approximate fair value due to their relatively short maturities and market interest rates, if applicable. For more information, refer to Note 5 regarding the fair value of the Company’s available-for-sale securities. Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability 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. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table presents information about the Company’s financial assets that are measured at fair value and indicates the fair value hierarchy of the valuation: June 30, 2024 Total Level 1 Level 2 Level 3 (in thousands) Assets: Money market funds $ 120,809 $ 120,809 $ — $ — Commercial paper 358,815 — 358,815 — Certificates of deposit 12,701 — 12,701 — U.S. government and agency securities 740,616 — 740,616 — Corporate bonds 351,012 — 351,012 — Total $ 1,583,953 $ 120,809 $ 1,463,144 $ — Liabilities: Contingent earn-out liability 293 — — 293 Warrant liabilities 1,407 787 620 — Total $ 1,700 $ 787 $ 620 $ 293 December 31, 2023 Total Level 1 Level 2 Level 3 (in thousands) Assets: Money market funds $ 288,757 $ 288,757 $ — $ — Commercial paper 692,352 — 692,352 — U.S. government and agency securities 786,406 — 786,406 — Corporate bonds 85,218 — 85,218 — Total $ 1,852,733 $ 288,757 $ 1,563,976 $ — Liabilities: Contingent earn-out liability 1,000 — — 1,000 Warrant liabilities 6,512 3,643 2,869 — Total $ 7,512 $ 3,643 $ 2,869 $ 1,000 Money market funds are measured at fair value on a recurring basis using quoted prices. U.S. government debt securities, government agency bonds, certificates of deposit, commercial paper and corporate bonds are measured at fair value, which is derived from independent pricing sources based on quoted prices in active markets for similar securities. There were no transfers between Levels 1, 2 or 3 for any of the periods presented. The fair value of the warrant liabilities was based on observable listed prices for such warrants. The fair value of the public warrants is categorized as Level 1. The fair value of the private warrants is categorized as Level 2 as they are equivalent to the public warrants as they have substantially the same terms; however they are not actively traded. The contingent earn-out liability accounted for under ASC 815 is categorized as Level 3 fair value measurements within the fair value hierarchy because the Company estimates projections utilizing unobservable inputs. |
Available-for-sale Securities
Available-for-sale Securities | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | 5. Available-for-sale securities The following tables summarize the amortized cost and estimated fair value of the Company’s available-for-sale marketable securities and cash equivalents and the gross unrealized gains and losses: June 30, 2024 Gross Gross Amortized unrealized unrealized Estimated cost gain loss fair value (in thousands) Marketable securities: Commercial paper $ 254,482 $ 1 $ ( 184 ) $ 254,299 Certificates of deposit 12,706 1 ( 6 ) 12,701 U.S. government and agency securities 698,154 17 ( 1,181 ) 696,990 Corporate bonds 351,468 54 ( 510 ) 351,012 Total marketable securities 1,316,810 73 ( 1,881 ) 1,315,002 Cash equivalents: Money market funds 120,809 — — 120,809 Commercial paper 104,570 — ( 54 ) 104,516 U.S. government and agency securities 43,627 — ( 1 ) 43,626 Total cash equivalents 269,006 — ( 55 ) 268,951 Total available-for-sale securities $ 1,585,816 $ 73 $ ( 1,936 ) $ 1,583,953 December 31, 2023 Gross Gross Amortized unrealized unrealized Estimated cost gain loss fair value (in thousands) Marketable securities: Commercial paper $ 460,979 $ 108 $ ( 100 ) $ 460,987 U.S. government and agency securities 610,188 769 ( 355 ) 610,602 Corporate bonds 85,030 189 ( 1 ) 85,218 Total marketable securities 1,156,197 1,066 ( 456 ) 1,156,807 Cash equivalents: Money market funds 288,757 — — 288,757 Commercial paper 231,380 33 ( 48 ) 231,365 U.S. government and agency securities 175,855 3 ( 54 ) 175,804 Total cash equivalents 695,992 36 ( 102 ) 695,926 Total available-for-sale securities $ 1,852,189 $ 1,102 $ ( 558 ) $ 1,852,733 The amortized cost and estimated fair value of the Company’s available-for-sale securities by contractual maturity are summarized below as of June 30, 2024: June 30, 2024 Gross Gross Amortized unrealized unrealized Estimated cost gain loss fair value (in thousands) Mature in one year or less $ 1,384,979 $ 41 $ ( 1,489 ) $ 1,383,531 Mature after one year through two years 200,837 32 ( 447 ) 200,422 Total available-for-sale securities $ 1,585,816 $ 73 $ ( 1,936 ) $ 1,583,953 |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 6. Balance sheet components Property and equipment, net Property and equipment, net consists of the following: June 30, December 31, 2024 2023 (in thousands) Laboratory equipment $ 24,548 $ 21,505 Leasehold improvements 14,033 11,952 Computer equipment and software 6,307 5,806 Furniture and fixtures 842 783 Construction in progress 7 513 45,737 40,559 Less: accumulated depreciation and amortization ( 20,453 ) ( 17,694 ) Property and equipment, net $ 25,284 $ 22,865 Depreciation expense for property and equipment amounted to $ 1.6 million and $ 1.2 million for the three months ended June 30, 2024 and 2023, respectively and $ 3.2 million and $ 2.4 million for the six months ended June 30, 2024 and 2023, respectively. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following: June 30, December 31, 2024 2023 (in thousands) Accrued compensation $ 14,734 $ 23,613 Accrued research and development 49,685 45,003 Accrued professional services 2,605 2,182 Other 657 3,896 Total accrued expenses and other current liabilities $ 67,681 $ 74,694 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 7. Intangible assets and goodwill Intangible assets, net Intangible assets, net consist of the following as of June 30, 2024: Gross value Accumulated Net book Weighted- (in thousands) (in years) In-process research and development — RAS $ 55,800 $ — $ 55,800 n/a Developed technology — tri-complex platform 7,480 ( 6,075 ) 1,405 1.4 Total $ 63,280 $ ( 6,075 ) $ 57,205 Amortization expense for the three months ended June 30, 2024 and 2023 was $ 0.3 million , respectively and for the six months ended June 30, 2024 and 2023 was $ 0.5 million , respectively. As of June 30, 2024, future amortization expense is as follows: Amount (in thousands) 2024 (remaining six months) $ 535 2025 870 Total $ 1,405 Intangible assets, net consist of the following as of December 31, 2023: Gross value Accumulated Net book Weighted- (in thousands) (in years) In-process research and development — RAS $ 55,800 $ — $ 55,800 n/a Developed technology — tri-complex platform 7,480 ( 5,541 ) 1,939 1.9 Total $ 63,280 $ ( 5,541 ) $ 57,739 Goodwill The following summarizes the change in the carrying value of goodwill for the three and six months ended June 30, 2024: Amount (in thousands) Balance at December 31, 2023 $ 14,608 Adjustment — Balance at June 30, 2024 $ 14,608 No impairment has been recognized as of June 30, 2024 . Goodwill recorded is not deductible for income tax purposes. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and contingencies Leases In January 2015, as amended in September 2016, the Company entered into an operating lease for approximately 42,000 square feet of office and laboratory space located at 700 Saginaw Drive, Redwood City, California (the 700 Building), with a term through April 2023 . In April 2020, the Company amended the lease to lease an additional 19,000 square feet of office, laboratory and research and development space located at 300 Saginaw Drive, Redwood City, California (the 300 Building), and to extend the lease term through December 2030 . In November 2021, the Company amended the lease to lease an additional 41,000 square feet of office, laboratory and research and development space located at 800 Saginaw Drive, Redwood City, California (the 800 Building), and to extend the lease term through November 2033 . In March 2023, the Company amended the lease to lease an additional approximately 40,000 square feet of office, laboratory and research and development space located at 900 Saginaw Drive, Redwood City, California (the 900 Building), and to extend the lease term through December 31, 2035. The Company has the option to extend the lease for an additional ten years after December 31, 2035. The Company obtained possession of the 900 Building in October 2023. The Company maintains letters of credit for the benefit of the landlord which are classified as restricted cash in the unaudited condensed consolidated balance sheets. Restricted cash related to letters of credit due to the landlord was $ 2.4 million and $ 2.4 million as of June 30, 2024 and December 31, 2023, respectively. Through June 30, 2024 , the landlord had provided the Company with $ 9.6 million in tenant improvement allowances for the 700 Building, 300 Building and 900 Building, which were recognized as lease incentives. The lease incentives are being amortized as an offset to rent expense over the lease term in the unaudited condensed consolidated statements of operations and comprehensive loss. Upon the execution of the lease in April 2020, which was deemed to be a lease modification, the Company re-evaluated the assumptions used during the adoption of ASC 842 for the lease. The Company determined the amendment consists of two separate contracts under ASC 842. One contract is related to a new right-of-use asset for the 300 Building, which is being accounted for as an operating lease, and the other is related to the modification of the original lease term for the 700 Building. As a result, the Company recorded a right-of-use asset of $ 6.4 million and a lease liability of $ 9.0 million for the 300 Building and an increase of $ 14.8 million to the right-of-use asset and lease liability for the 700 Building upon execution of the lease amendment. The Company is recognizing rent expense for both buildings on a straight-line basis through the remaining extended term of the lease. Upon the execution of the lease amendment in November 2021, which was deemed to be a lease modification, the Company re-evaluated the assumptions used during the lease amendment in April 2020. The Company determined the amendment consists of two separate contracts under ASC 842. One contract is related to a new right-of-use asset for the 800 Building, which is being accounted for as an operating lease, and the other is related to the modification of the lease term, as amended in April 2020, for the 700 Building and 300 Building. As a result, the Company recorded a right-of-use asset and a lease liability of $ 26.8 million for the 800 Building and an aggregate increase of $ 8.6 million to the right-of-use assets and lease liabilities for the 700 Building and 300 Building upon execution of the lease amendment. The Company is recognizing rent expense for the buildings on a straight-line basis through the remaining extended term of the lease. Upon the execution of the lease amendment in March 2023, which was deemed to be a lease modification, the Company re-evaluated the assumptions used during the lease amendment in November 2021. The Company determined the amendment consists of two separate contracts under ASC 842. One contract is related to a new right-of-use asset for the 900 Building, which is being accounted for as an operating lease, and the other is related to the modification of the lease term, as amended in November 2021, for the 700 Building, 300 Building and 800 Building. As a result, the Company recorded a right-of-use asset and a lease liability of $ 25.0 million for the 900 Building and an aggregate increase of $ 0.3 million to the right-of-use assets and lease liabilities for the 700 Building, 300 Building and 800 Building upon execution of the lease amendment. The Company is recognizing rent expense for the buildings on a straight-line basis through the remaining extended term of the lease. The balance sheet classification of the Company’s operating lease liabilities was as follows: June 30, December 31, 2024 2023 (in thousands) Operating lease liabilities: Operating lease liability – current $ 8,332 $ 7,369 Operating lease liability – noncurrent 79,079 80,575 Total operating lease liabilities $ 87,411 $ 87,944 The components of lease costs for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) (in thousands) Operating lease cost $ 2,798 $ 1,925 $ 5,595 $ 3,742 Less: Sublease income — — — ( 302 ) Total operating lease cost, net (1) $ 2,798 $ 1,925 $ 5,595 $ 3,440 (1) Net lease cost does not include short-term lease and variable lease costs, which were immaterial. As of June 30, 2024, the maturities of the Company’s operating lease liabilities were as follows (in thousands): 2024 (remaining six months) $ 3,834 2025 10,476 2026 10,843 2027 11,222 2028 11,615 Thereafter 93,486 Total undiscounted lease payments $ 141,476 Less: Imputed interest ( 54,065 ) Total operating lease liabilities $ 87,411 Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate. The weighted-average discount rate used to determine the operating lease liability was 8.4 %. As of June 30, 2024 and December 31, 2023, the weighted-average remaining lease term was 11.6 years and 12.0 years, respectively. Legal matters From time to time, the Company may be involved in litigation related to claims that arise in the ordinary course of its business activities. The Company accrues for these matters when it is probable that losses will be incurred and these losses can be reasonably estimated. The Company believes that as of June 30, 2024 and December 31, 2023 no such matters, individually or in the aggregate, would have a material adverse effect on the Company’s financial position, results of operations or cash flows. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third party with respect to its technology. The term of these indemnification agreements is generally perpetual any time after the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these arrangements is not determinable. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the fair value of these agreements is minimal. Other The Company enters into agreements in the ordinary course of business with contract research organizations for clinical trials, contract manufacturing organizations to provide clinical trial materials and with vendors for preclinical studies and other services and products for operating purposes which are generally cancelable at any time by us upon 30 to 90 days prior written notice. |
Sanofi Collaboration Agreement
Sanofi Collaboration Agreement | 6 Months Ended |
Jun. 30, 2024 | |
Collaboration Agreement [Abstract] | |
Sanofi Collaboration Agreement | 9. Sanofi collaboration agreement In June 2018, the Company entered into a collaborative research, development and commercialization agreement (the Sanofi Agreement) with Aventis, Inc. (an affiliate of Sanofi) to research and develop SHP2 inhibitors, including RMC-4630, for any indications. The Sanofi Agreement was assigned to Genzyme Corporation, a Sanofi affiliate, in December 2018. For the purposes of this discussion, the Company refers to Genzyme Corporation as Sanofi. The Sanofi Agreement was terminated in June 2023. Pursuant to the Sanofi Agreement, the Company granted Sanofi a worldwide, exclusive, sublicensable (subject to the Company’s consent in certain circumstances) license under certain of the Company’s patents and know-how to research, develop, manufacture, use, sell, offer for sale, import and otherwise commercialize SHP2 inhibitors, including RMC-4630, for any and all uses, subject to the Company’s exercise of rights and performance of obligations under the Sanofi Agreement. Under the Sanofi Agreement, the Company had primary responsibility for early clinical development of RMC-4630 pursuant to an approved development plan. Sanofi was responsible for reimbursing the Company for all internal and external costs and expenses to perform its activities under approved development plans, except for costs and expenses related to the RMC-4630-03 study, for which Sanofi reimbursed the Company 50 % of the costs and expenses. Pursuant to the Sanofi Agreement, the Company received an upfront payment of $ 50 million from Sanofi in July 2018. The Sanofi Agreement included obligations for Sanofi to make certain milestone payments and royalty payments, all of which expired on termination of the Sanofi Agreement. Upon termination of the Sanofi Agreement, the licenses granted to Sanofi thereunder became fully paid-up, royalty-free, perpetual and irrevocable and all rights and obligations of Sanofi under the Sanofi Agreement reverted to the Company. During the three months ended June 30, 2024 and 2023 , the Company recognized zero and $ 3.8 million of collaboration revenue associated with this agreement, respectively, and zero and $ 10.8 million for the six months ended June 30, 2024 and 2023 , respectively. |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | 10. Common stock As of June 30, 2024 and December 31, 2023 , the Company’s certificate of incorporation authorized the Company to issue 300,000,000 shares of common stock, at a par value of $ 0.0001 per share. Each share of common stock is entitled to one vote . The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors. As of June 30, 2024 , no dividends have been declared to date. The Company has reserved shares of common stock for future issuance as follows: June 30, December 31, 2024 2023 Outstanding options to purchase common stock 13,811,570 11,083,349 Unvested restricted stock units of common stock 3,032,583 2,161,267 Available for future issuance under the 2020 Incentive Award Plan 10,094,505 6,241,188 Available for issuance under the 2020 Employee Stock Purchase Plan 3,850,404 2,394,407 Total 30,789,062 21,880,211 |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | 11. Stock-based compensation 2020 Incentive Award Plan In February 2020, the Company adopted the 2020 Equity Incentive Plan (the 2020 Plan). The 2020 Plan became effective on February 11, 2020. The 2020 Plan provides for a variety of stock-based compensation awards, including stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance bonus awards, performance stock unit awards, dividend equivalents, or other stock or cash based awards. Under the 2020 Plan, the Company generally grants stock-based awards with service-based vesting conditions only. Options and restricted stock unit awards granted typically vest over a four-year period, but may be granted with different vesting terms. Following the effectiveness of the 2020 Plan, the Company ceased making grants under the 2014 Equity Incentive Plan (the 2014 Plan). However, the 2014 Plan continues to govern the terms and conditions of the outstanding awards granted under it. Shares of common stock subject to awards granted under the 2014 Plan that are forfeited or lapse unexercised and which following the effective date of the 2020 Plan were not issued under the 2014 Plan are available for issuance under the 2020 Plan. 2020 Employee Stock Purchase Plan In February 2020, the Company adopted the 2020 Employee Stock Purchase Plan (the ESPP). Under the ESPP, employees have the ability to purchase shares of the Company’s common stock through payroll deductions at a discount during a series of offering periods of 24 months, each comprised of four six-month purchase periods. The purchase price will be the lower of 85 % of the closing trading price per share of the Company’s common stock on the first day of an offering period in which an employee is enrolled or 85% of the closing trading price per share on the purchase date, which will occur on the last trading day of each purchase period. For the three and six months ended June 30, 2024, there were 190,748 shares of common stock purchased under the ESPP. As of June 30, 2024, a total of 3,850,404 shares of common stock were available for future issuance under the ESPP. As of June 30, 2024, there was $ 7.1 million of unrecognized compensation cost related to the ESPP. Stock options The following summarizes option activity under both the 2020 Plan and the 2014 Plan: Number of Weighted- Weighted- Aggregate (in years) (in thousands) Balance, December 31, 2023 11,083,349 $ 19.64 7.50 $ 115,009 Options granted 3,204,458 30.57 Options exercised ( 312,135 ) 16.50 Options cancelled and forfeited ( 164,102 ) 24.43 Balance, June 30, 2024 13,811,570 $ 22.19 7.59 $ 232,899 Options vested and exercisable as of June 30, 2024 6,958,644 $ 16.88 6.26 $ 155,397 As of June 30, 2024, there was $ 118.7 million of unrecognized stock-based compensation expense related to unvested stock options that is expected to be recognized over a weighted-average period of 2.91 years. Restricted stock units Activity under the 2020 Plan with respect to the Company’s restricted stock units (RSUs) during the six months ended June 30, 2024 was as follows: Number of Weighted- Weighted- Aggregate intrinsic value (in years) (in thousands) Balance, December 31, 2023 2,161,267 $ 25.10 1.56 $ 61,985 RSUs granted 1,413,243 30.61 RSUs vested ( 469,031 ) 25.98 RSUs forfeited ( 72,896 ) 25.17 Balance, June 30, 2024 3,032,583 $ 27.53 1.61 117,695 Expected to vest as of June 30, 2024 3,032,583 $ 27.53 1.61 117,695 The number of RSUs vested includes shares of common stock that the Company withheld to satisfy the minimum statutory tax withholding requirements. As of June 30, 2024, there was $ 79.5 million of total unrecognized compensation cost related to RSUs that is expected to be recognized over a weighted average period of 3.05 years. Stock-based compensation expense Total stock-based compensation expense related to stock options, RSUs and the ESPP by function was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) (in thousands) Research and development $ 12,775 $ 7,642 $ 23,020 $ 13,342 General and administrative 7,000 5,338 12,963 9,337 Total $ 19,775 $ 12,980 $ 35,983 $ 22,679 |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | 12. Net loss per share attributable to common stockholders The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands, except share and per share data) (in thousands, except share and per share data) Numerator: Net loss attributable to common stockholders $ ( 133,233 ) $ ( 98,298 ) $ ( 249,236 ) $ ( 166,396 ) Denominator: Weighted-average shares outstanding 165,141,936 106,885,561 164,935,542 100,894,443 Less: Weighted-average unvested restricted shares and — ( 1,376 ) — ( 3,068 ) Weighted-average shares used to compute net loss per share 165,141,936 106,884,185 164,935,542 100,891,375 Net loss per share attributable to common stockholders, basic $ ( 0.81 ) $ ( 0.92 ) $ ( 1.51 ) $ ( 1.65 ) The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: As of June 30, 2024 2023 Options to purchase common stock 13,811,570 10,789,298 Options early exercised subject to future vesting — 872 Unvested restricted stock units of common stock 3,032,583 2,055,963 Expected shares to be purchased under ESPP 408,311 199,866 Warrants outstanding 2,194,342 — Earn-out shares 973,976 — Total 20,420,782 13,045,999 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent events Lease agreement In July 2024, the Company amended its Redwood City lease to lease an additional approximately 43,000 square feet of office, laboratory and research and development space located at 500 Saginaw Drive, Redwood City, California (the 500 Building). The Company will pay an initial annual base rent of approximately $ 2.7 million, which is subject to scheduled 3.5 % annual increases, plus certain operating expenses. The Company has been provided a tenant improvement allowance of $ 4.3 million. The Company expects to take possession of the 500 Building in the third quarter of 2025. The Company has the option to extend the lease for an additional ten years after the first anniversary of the lease commencement date of the 500 Building. 2021 ATM Program In July 2024, the Company sold an aggregate of 1,294,050 shares of common stock under the 2021 ATM Program resulting in gross proceeds of $ 60.8 million. After deducting commissions and expenses of $ 1.2 million, net proceeds to the Company were $ 59.6 million. 2024 ATM Program In August 2024, the Company entered into a new sales agreement with TD Securities (USA) LLC (TD Cowen) to sell shares of the Company’s common stock, from time to time, with aggregate gross proceeds of up to $ 500 million, through an at-the-market equity offering program (the 2024 ATM Program) under which TD Cowen agreed to act as our sales agent. The 2024 ATM Program replaces the 2021 ATM Program and any unused balance remaining under the 2021 ATM Program is no longer available. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (GAAP) and applicable rules of the Securities and Exchange Commission (SEC) regarding interim financial reporting and, in the opinion of management, include all normal and recurring adjustments which are necessary to state fairly the Company’s financial position and results of operations for the reported periods. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 26, 2024. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations. The unaudited condensed consolidated financial statements for the periods ended June 30, 2024 and June 30, 2023 include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The functional and reporting currency of the Company and its subsidiaries is the U.S. dollar. |
Use of Estimates | Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including the fair value of assets acquired and liabilities assumed and related purchase price allocation, revenue recognition, clinical accruals, income taxes, useful lives of property and equipment and intangible assets, impairment of goodwill and intangibles, impairment of in-process research and development and developed technologies, the incremental borrowing rate for determining operating lease assets and liabilities, warrant liabilities and stock-based compensation. Estimates are based on historical experience, complex judgments, facts and circumstances available at the time and various other assumptions that are believed to be reasonable under the circumstances but are inherently uncertain and unpredictable. Actual results could materially differ from the Company’s estimates, and there may be changes to the estimates in future periods . |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of credit risk and other risks and uncertainties Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents and marketable securities. The Company maintains bank deposits in federally insured financial institutions and these deposits may exceed federally insured limits. The Company is exposed to credit risk in the event of a default by the financial institutions holding its bank deposits and issuers of its investments. The Company’s investment policy limits investments to money market funds, certain types of debt securities issued by the U.S. government and its agencies, certificates of deposit, corporate debt and commercial paper, and places restrictions on the credit ratings, maturities and concentration by type and issuer. The Company has not experienced any significant losses on its deposits of cash and cash equivalents or investments. |
Warrants | Warrants Warrants assumed as part of the EQRx transaction as described in Note 3 contain provisions that require them to be classified as derivative liabilities in accordance with Accounting Standards Codification Topic 815, Derivatives and Hedging (ASC 815). Accordingly, at the end of each reporting period, changes in fair value during the period are recognized as a change in fair value of warrant liabilities within the consolidated statements of operations and comprehensive loss. The Company adjusts the warrant liabilities for changes in the fair value until the earlier of (a) the exercise or expiration of the warrants or (b) the redemption of the warrants, at which time the warrants will be reclassified to additional paid-in capital. Derivative warrant liabilities are classified as noncurrent liabilities, as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities. |
Recent Accounting Pronouncements | Recent accounting pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB), under its ASC or other standard setting bodies, and adopted by the Company as of the specified effective date. No new pronouncements have been adopted by the Company for the three and six months ended June 30, 2024. Recently announced accounting pronouncements On March 6, 2024, the SEC issued Final Rule No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. The rule will require registrants to provide certain climate-related information in their registration statements and annual reports. The rule requires information about a registrant’s climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks also includes disclosure of a registrant's greenhouse gas emissions. In addition, the rules will require registrants to present certain climate-related financial metrics in their audited financial statements. The Company is evaluating the potential impact of this rule on the condensed consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures (ASU 2023-07). ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for public business entities for fiscal years beginning after In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures (ASU |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Schedule of Number of Shares of Common Stock Revolution Medicines Issued to EQRx Equity Holders | The following table reflects the consideration transferred by the Company: Amount (in thousands) Fair value of shares of combined company to be owned by EQRx stockholders (1) $ 1,096,826 Less: Fair value of EQRx equity awards converting to Revolution Medicines common stock attributable to post-combination service $ ( 11,150 ) Taxes paid by Revolution Medicines on behalf of EQRx to satisfy statutory income tax withholding obligations 4,026 Fair value of warrants 6,907 Fair value of contingent earn-out shares 490 Purchase price $ 1,097,099 |
Schedule of Allocation of Consideration Transferred to the Assets Acquired and Liabilities | The following table summarizes the fair value of the assets acquired and liabilities assumed as of the Closing Date: Amount (in thousands) Cash and cash equivalents $ 860,918 Marketable securities 313,878 Prepaid expenses and other current assets 12,084 Restricted cash 633 Other noncurrent assets 2,912 Accounts payable ( 6,893 ) Accrued expenses and other current liabilities ( 30,506 ) Net assets acquired $ 1,153,026 |
Schedule of Excess of Fair Value of Assets Acquired Over the Purchase Consideration Under Asset Acquisition Accounting | The following table calculates the excess of fair value of assets acquired over the purchase consideration under asset acquisition accounting: Amount (in thousands) Purchase price $ 1,097,099 Less: net assets acquired ( 1,153,026 ) Remaining excess fair value of net assets acquired over the purchase price $ ( 55,927 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value | The following table presents information about the Company’s financial assets that are measured at fair value and indicates the fair value hierarchy of the valuation: June 30, 2024 Total Level 1 Level 2 Level 3 (in thousands) Assets: Money market funds $ 120,809 $ 120,809 $ — $ — Commercial paper 358,815 — 358,815 — Certificates of deposit 12,701 — 12,701 — U.S. government and agency securities 740,616 — 740,616 — Corporate bonds 351,012 — 351,012 — Total $ 1,583,953 $ 120,809 $ 1,463,144 $ — Liabilities: Contingent earn-out liability 293 — — 293 Warrant liabilities 1,407 787 620 — Total $ 1,700 $ 787 $ 620 $ 293 December 31, 2023 Total Level 1 Level 2 Level 3 (in thousands) Assets: Money market funds $ 288,757 $ 288,757 $ — $ — Commercial paper 692,352 — 692,352 — U.S. government and agency securities 786,406 — 786,406 — Corporate bonds 85,218 — 85,218 — Total $ 1,852,733 $ 288,757 $ 1,563,976 $ — Liabilities: Contingent earn-out liability 1,000 — — 1,000 Warrant liabilities 6,512 3,643 2,869 — Total $ 7,512 $ 3,643 $ 2,869 $ 1,000 |
Available-for-sale Securities (
Available-for-sale Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Estimated Fair Value of Available-for-sale Securities and Cash Equivalents and Gross Unrealized Gains and Losses | The following tables summarize the amortized cost and estimated fair value of the Company’s available-for-sale marketable securities and cash equivalents and the gross unrealized gains and losses: June 30, 2024 Gross Gross Amortized unrealized unrealized Estimated cost gain loss fair value (in thousands) Marketable securities: Commercial paper $ 254,482 $ 1 $ ( 184 ) $ 254,299 Certificates of deposit 12,706 1 ( 6 ) 12,701 U.S. government and agency securities 698,154 17 ( 1,181 ) 696,990 Corporate bonds 351,468 54 ( 510 ) 351,012 Total marketable securities 1,316,810 73 ( 1,881 ) 1,315,002 Cash equivalents: Money market funds 120,809 — — 120,809 Commercial paper 104,570 — ( 54 ) 104,516 U.S. government and agency securities 43,627 — ( 1 ) 43,626 Total cash equivalents 269,006 — ( 55 ) 268,951 Total available-for-sale securities $ 1,585,816 $ 73 $ ( 1,936 ) $ 1,583,953 December 31, 2023 Gross Gross Amortized unrealized unrealized Estimated cost gain loss fair value (in thousands) Marketable securities: Commercial paper $ 460,979 $ 108 $ ( 100 ) $ 460,987 U.S. government and agency securities 610,188 769 ( 355 ) 610,602 Corporate bonds 85,030 189 ( 1 ) 85,218 Total marketable securities 1,156,197 1,066 ( 456 ) 1,156,807 Cash equivalents: Money market funds 288,757 — — 288,757 Commercial paper 231,380 33 ( 48 ) 231,365 U.S. government and agency securities 175,855 3 ( 54 ) 175,804 Total cash equivalents 695,992 36 ( 102 ) 695,926 Total available-for-sale securities $ 1,852,189 $ 1,102 $ ( 558 ) $ 1,852,733 |
Summary of Amortized Cost and Estimated Fair Value of Available-for-sale Securities by Contractual Maturity | The amortized cost and estimated fair value of the Company’s available-for-sale securities by contractual maturity are summarized below as of June 30, 2024: June 30, 2024 Gross Gross Amortized unrealized unrealized Estimated cost gain loss fair value (in thousands) Mature in one year or less $ 1,384,979 $ 41 $ ( 1,489 ) $ 1,383,531 Mature after one year through two years 200,837 32 ( 447 ) 200,422 Total available-for-sale securities $ 1,585,816 $ 73 $ ( 1,936 ) $ 1,583,953 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following: June 30, December 31, 2024 2023 (in thousands) Laboratory equipment $ 24,548 $ 21,505 Leasehold improvements 14,033 11,952 Computer equipment and software 6,307 5,806 Furniture and fixtures 842 783 Construction in progress 7 513 45,737 40,559 Less: accumulated depreciation and amortization ( 20,453 ) ( 17,694 ) Property and equipment, net $ 25,284 $ 22,865 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: June 30, December 31, 2024 2023 (in thousands) Accrued compensation $ 14,734 $ 23,613 Accrued research and development 49,685 45,003 Accrued professional services 2,605 2,182 Other 657 3,896 Total accrued expenses and other current liabilities $ 67,681 $ 74,694 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consist of the following as of June 30, 2024: Gross value Accumulated Net book Weighted- (in thousands) (in years) In-process research and development — RAS $ 55,800 $ — $ 55,800 n/a Developed technology — tri-complex platform 7,480 ( 6,075 ) 1,405 1.4 Total $ 63,280 $ ( 6,075 ) $ 57,205 Intangible assets, net consist of the following as of December 31, 2023: Gross value Accumulated Net book Weighted- (in thousands) (in years) In-process research and development — RAS $ 55,800 $ — $ 55,800 n/a Developed technology — tri-complex platform 7,480 ( 5,541 ) 1,939 1.9 Total $ 63,280 $ ( 5,541 ) $ 57,739 |
Schedule of Future Amortization Expense | As of June 30, 2024, future amortization expense is as follows: Amount (in thousands) 2024 (remaining six months) $ 535 2025 870 Total $ 1,405 |
Summary of Change in Carrying Value of Goodwill | The following summarizes the change in the carrying value of goodwill for the three and six months ended June 30, 2024: Amount (in thousands) Balance at December 31, 2023 $ 14,608 Adjustment — Balance at June 30, 2024 $ 14,608 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Balance Sheet Classification of Operating Lease Liabilities | The balance sheet classification of the Company’s operating lease liabilities was as follows: June 30, December 31, 2024 2023 (in thousands) Operating lease liabilities: Operating lease liability – current $ 8,332 $ 7,369 Operating lease liability – noncurrent 79,079 80,575 Total operating lease liabilities $ 87,411 $ 87,944 |
Summary of Components of Lease Costs | The components of lease costs for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) (in thousands) Operating lease cost $ 2,798 $ 1,925 $ 5,595 $ 3,742 Less: Sublease income — — — ( 302 ) Total operating lease cost, net (1) $ 2,798 $ 1,925 $ 5,595 $ 3,440 (1) Net lease cost does not include short-term lease and variable lease costs, which were immaterial. |
Schedule of Maturities of Operating Lease Liabilities | As of June 30, 2024, the maturities of the Company’s operating lease liabilities were as follows (in thousands): 2024 (remaining six months) $ 3,834 2025 10,476 2026 10,843 2027 11,222 2028 11,615 Thereafter 93,486 Total undiscounted lease payments $ 141,476 Less: Imputed interest ( 54,065 ) Total operating lease liabilities $ 87,411 |
Common Stock (Tables)
Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock for Future Issuance | The Company has reserved shares of common stock for future issuance as follows: June 30, December 31, 2024 2023 Outstanding options to purchase common stock 13,811,570 11,083,349 Unvested restricted stock units of common stock 3,032,583 2,161,267 Available for future issuance under the 2020 Incentive Award Plan 10,094,505 6,241,188 Available for issuance under the 2020 Employee Stock Purchase Plan 3,850,404 2,394,407 Total 30,789,062 21,880,211 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of RSUs Activity Under the Plan | Total stock-based compensation expense related to stock options, RSUs and the ESPP by function was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) (in thousands) Research and development $ 12,775 $ 7,642 $ 23,020 $ 13,342 General and administrative 7,000 5,338 12,963 9,337 Total $ 19,775 $ 12,980 $ 35,983 $ 22,679 |
2020 Plan and 2014 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Option Activity Under the Plan | The following summarizes option activity under both the 2020 Plan and the 2014 Plan: Number of Weighted- Weighted- Aggregate (in years) (in thousands) Balance, December 31, 2023 11,083,349 $ 19.64 7.50 $ 115,009 Options granted 3,204,458 30.57 Options exercised ( 312,135 ) 16.50 Options cancelled and forfeited ( 164,102 ) 24.43 Balance, June 30, 2024 13,811,570 $ 22.19 7.59 $ 232,899 Options vested and exercisable as of June 30, 2024 6,958,644 $ 16.88 6.26 $ 155,397 |
2020 Equity Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of RSUs Activity Under the Plan | Activity under the 2020 Plan with respect to the Company’s restricted stock units (RSUs) during the six months ended June 30, 2024 was as follows: Number of Weighted- Weighted- Aggregate intrinsic value (in years) (in thousands) Balance, December 31, 2023 2,161,267 $ 25.10 1.56 $ 61,985 RSUs granted 1,413,243 30.61 RSUs vested ( 469,031 ) 25.98 RSUs forfeited ( 72,896 ) 25.17 Balance, June 30, 2024 3,032,583 $ 27.53 1.61 117,695 Expected to vest as of June 30, 2024 3,032,583 $ 27.53 1.61 117,695 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands, except share and per share data) (in thousands, except share and per share data) Numerator: Net loss attributable to common stockholders $ ( 133,233 ) $ ( 98,298 ) $ ( 249,236 ) $ ( 166,396 ) Denominator: Weighted-average shares outstanding 165,141,936 106,885,561 164,935,542 100,894,443 Less: Weighted-average unvested restricted shares and — ( 1,376 ) — ( 3,068 ) Weighted-average shares used to compute net loss per share 165,141,936 106,884,185 164,935,542 100,891,375 Net loss per share attributable to common stockholders, basic $ ( 0.81 ) $ ( 0.92 ) $ ( 1.51 ) $ ( 1.65 ) |
Schedule of Outstanding Potentially Dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share | The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: As of June 30, 2024 2023 Options to purchase common stock 13,811,570 10,789,298 Options early exercised subject to future vesting — 872 Unvested restricted stock units of common stock 3,032,583 2,055,963 Expected shares to be purchased under ESPP 408,311 199,866 Warrants outstanding 2,194,342 — Earn-out shares 973,976 — Total 20,420,782 13,045,999 |
Organization - Additional Infor
Organization - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Nov. 30, 2021 | Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Class Of Stock [Line Items] | ||||||
Accumulated deficit | $ (1,386,944) | $ (1,386,944) | $ (1,137,708) | |||
Common stock, shares, issued | 171,206,508 | 171,206,508 | 170,234,594 | |||
Net proceeds from issuance | $ 0 | $ 323,706 | ||||
Underwriter's Option to Purchase Additional Shares | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares, issued | 2,045,454 | |||||
Underwritten Public Offering | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares, issued | 15,681,818 | |||||
Common stock, price per share | $ 22 | |||||
Net proceeds from issuance | $ 323,700 | |||||
Underwriting discounts and commissions | 20,700 | |||||
Stock issuance expenses | $ 600 | |||||
2021 ATM Program | Common Stock | ||||||
Class Of Stock [Line Items] | ||||||
Net proceeds from issuance | $ 62,100 | |||||
Aggregate gross proceeds through equity issuance maximum potential amount | $ 250,000 | |||||
Issuance of common stock upon offering, net of offering costs, shares | 0 | 0 | 2,482,880 | |||
Proceeds from issuance of common stock gross | $ 63,500 | |||||
Commissions and expenses | $ 1,400 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) | 6 Months Ended | ||
Nov. 09, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | |||
Shares of common stock issued | 171,206,508 | 170,234,594 | |
Transaction costs | $ 20,700,000 | ||
EQRx Acquisition | |||
Business Acquisition [Line Items] | |||
Stock issued to EQRx stockholders | 5,560,000 | ||
Compensation cost | $ 11,200,000 | ||
Right to receive | 0.1112 | ||
Shares of common stock issued | 54,800,000 | ||
Share price | $ 20.02 | ||
Taxes to satisfy statutory income tax withholding obligations | $ 4,000,000 | 4,026,000 | |
Fair value of the cost of the asset acquisition | $ 55,900,000 | ||
Earn out shares | 82% | ||
Earn-out shares triggering events | 973,976 | ||
EQRx Acquisition | Warrants | |||
Business Acquisition [Line Items] | |||
Fair value of the warrants | $ 6,900,000 | ||
Warrants expiration date | Dec. 31, 2026 | ||
EQRx Acquisition | Public Warrants and Private Placement Warrants | |||
Business Acquisition [Line Items] | |||
Warrant purchase | 0.1112 | ||
Warrant exercise price | 11.5 | ||
EQRx Acquisition | Public Warrants | |||
Business Acquisition [Line Items] | |||
Warrants | $ 11,039,957 | ||
EQRx Acquisition | Private Placement Warrants | |||
Business Acquisition [Line Items] | |||
Warrants | $ 8,693,333 | ||
EQRx Acquisition | Earn out shares [Member] | |||
Business Acquisition [Line Items] | |||
Stock issued to EQRx stockholders | 681,784 | ||
Share price | $ 112.41 | ||
Fair value of the warrants | $ 500,000 | ||
Earn-out shares expiration date | Dec. 17, 2024 | ||
EQRx Acquisition | Earn out shares [Member] | Minimum | |||
Business Acquisition [Line Items] | |||
Consecutive trading days | 20 days | ||
EQRx Acquisition | Earn out shares [Member] | Maximum | |||
Business Acquisition [Line Items] | |||
Consecutive trading days | 30 days | ||
EQRx Acquisition | Additional earn out shares | |||
Business Acquisition [Line Items] | |||
Share price | $ 148.38 | ||
Stock issued during period, additional shares, acquisitions | 292,192 | ||
EQRx Acquisition | Additional earn out shares | Minimum | |||
Business Acquisition [Line Items] | |||
Consecutive trading days | 20 days | ||
EQRx Acquisition | Additional earn out shares | Maximum | |||
Business Acquisition [Line Items] | |||
Consecutive trading days | 30 days |
Acquisition - Schedule of Numbe
Acquisition - Schedule of Number of Shares of Common Stock Revolution Medicines Issued to EQRx Equity Holders (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Nov. 09, 2023 | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||
Fair value of warrants | $ 6,907 | |
Fair value of contingent earn-out shares | 490 | |
Purchase price | 1,097,099 | |
EQRx Acquisition | ||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||
Fair value of shares of combined company to be owned by EQRx stockholders | 1,096,826 | |
Less: Fair value of EQRx equity awards converting to Revolution Medicines common stock attributable to post-combination service | (11,150) | |
Taxes paid by Revolution Medicines on behalf of EQRx to satisfy statutory income tax withholding obligations | $ 4,026 | $ 4,000 |
Acquisition - Schedule of Recog
Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |
Cash and cash equivalents | $ 860,918 |
Marketable securities | 313,878 |
Prepaid expenses and other current assets | 12,084 |
Restricted cash | 633 |
Other noncurrent assets | 2,912 |
Accounts payable | (6,893) |
Accrued expenses and other current liabilities | (30,506) |
Net assets acquired | $ 1,153,026 |
Acquisition - Schedule of Exces
Acquisition - Schedule of Excess of Fair Value of Assets Acquired over the Purchase Consideration under Asset Acquisition Accounting (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Business Combinations [Abstract] | |
Purchase price | $ 1,097,099 |
Less: net assets acquired | (1,153,026) |
Remaining excess fair value of net assets acquired over the purchase price | $ (55,927) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 1,583,953 | $ 1,852,733 |
Liabilities fair value | 1,700 | 7,512 |
Contingent earn-out liability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities fair value | 293 | 1,000 |
Warrant liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities fair value | 1,407 | 6,512 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 120,809 | 288,757 |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 358,815 | 692,352 |
Certificates of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 12,701 | |
U.S. Government and Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 740,616 | 786,406 |
Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 351,012 | 85,218 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 120,809 | 288,757 |
Liabilities fair value | 787 | 3,643 |
Level 1 | Contingent earn-out liability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities fair value | 0 | 0 |
Level 1 | Warrant liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities fair value | 787 | 3,643 |
Level 1 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 120,809 | 288,757 |
Level 1 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Certificates of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 1 | U.S. Government and Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 1 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 1,463,144 | 1,563,976 |
Liabilities fair value | 620 | 2,869 |
Level 2 | Contingent earn-out liability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities fair value | 0 | 0 |
Level 2 | Warrant liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities fair value | 620 | 2,869 |
Level 2 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 358,815 | 692,352 |
Level 2 | Certificates of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 12,701 | |
Level 2 | U.S. Government and Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 740,616 | 786,406 |
Level 2 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 351,012 | 85,218 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Liabilities fair value | 293 | 1,000 |
Level 3 | Contingent earn-out liability | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities fair value | 293 | 1,000 |
Level 3 | Warrant liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities fair value | 0 | 0 |
Level 3 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Certificates of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | |
Level 3 | U.S. Government and Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 0 | 0 |
Level 3 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Disclosures [Abstract] | ||
Fair value, transfers between Levels 1, 2 or 3, amount | $ 0 | $ 0 |
Available-for-sale Securities -
Available-for-sale Securities - Summary of Amortized Cost and Estimated Fair Value of Available-for-sale Securities and Cash Equivalents and Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 1,585,816 | $ 1,852,189 |
Gross Unrealized Gain | 73 | 1,102 |
Gross Unrealized Loss | (1,936) | (558) |
Estimated Fair Value | 1,583,953 | 1,852,733 |
Marketable Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,316,810 | 1,156,197 |
Gross Unrealized Gain | 73 | 1,066 |
Gross Unrealized Loss | (1,881) | (456) |
Estimated Fair Value | 1,315,002 | 1,156,807 |
Marketable Securities | Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 254,482 | 460,979 |
Gross Unrealized Gain | 1 | 108 |
Gross Unrealized Loss | (184) | (100) |
Estimated Fair Value | 254,299 | 460,987 |
Marketable Securities | Certificates of deposit | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 12,706 | |
Gross Unrealized Gain | 1 | |
Gross Unrealized Loss | (6) | |
Estimated Fair Value | 12,701 | |
Marketable Securities | U.S. Government and Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 698,154 | 610,188 |
Gross Unrealized Gain | 17 | 769 |
Gross Unrealized Loss | (1,181) | (355) |
Estimated Fair Value | 696,990 | 610,602 |
Marketable Securities | Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 351,468 | 85,030 |
Gross Unrealized Gain | 54 | 189 |
Gross Unrealized Loss | (510) | (1) |
Estimated Fair Value | 351,012 | 85,218 |
Cash Equivalents | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 269,006 | 695,992 |
Gross Unrealized Gain | 0 | 36 |
Gross Unrealized Loss | (55) | (102) |
Estimated Fair Value | 268,951 | 695,926 |
Cash Equivalents | Money Market Funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 120,809 | 288,757 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Estimated Fair Value | 120,809 | 288,757 |
Cash Equivalents | Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 104,570 | 231,380 |
Gross Unrealized Gain | 0 | 33 |
Gross Unrealized Loss | (54) | (48) |
Estimated Fair Value | 104,516 | 231,365 |
Cash Equivalents | U.S. Government and Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 43,627 | 175,855 |
Gross Unrealized Gain | 0 | 3 |
Gross Unrealized Loss | (1) | (54) |
Estimated Fair Value | $ 43,626 | $ 175,804 |
Available-for-sale Securities_2
Available-for-sale Securities - Summary of Amortized Cost and Estimated Fair Value of Available-for-sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 1,585,816 | $ 1,852,189 |
Gross Unrealized Gain | 73 | 1,102 |
Gross Unrealized Loss | (1,936) | (558) |
Estimated Fair Value | 1,583,953 | $ 1,852,733 |
Mature in One Year or Less | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,384,979 | |
Gross Unrealized Gain | 41 | |
Gross Unrealized Loss | (1,489) | |
Estimated Fair Value | 1,383,531 | |
Mature after One Year through Two Years | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 200,837 | |
Gross Unrealized Gain | 32 | |
Gross Unrealized Loss | (447) | |
Estimated Fair Value | $ 200,422 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 45,737 | $ 40,559 |
Less: accumulated depreciation and amortization | (20,453) | (17,694) |
Property and equipment, net | 25,284 | 22,865 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 24,548 | 21,505 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 14,033 | 11,952 |
Computer Equipment and Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 6,307 | 5,806 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 842 | 783 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 7 | $ 513 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Depreciation | $ 1,600 | $ 1,200 | $ 3,182 | $ 2,428 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued Expenses And Other Current Liabilities [Abstract] | ||
Accrued compensation | $ 14,734 | $ 23,613 |
Accrued research and development | 49,685 | 45,003 |
Accrued professional services | 2,605 | 2,182 |
Other | 657 | 3,896 |
Total accrued expenses and other current liabilities | $ 67,681 | $ 74,694 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule of Intangibles Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
In-process research and development - RAS Programs | $ 55,800 | $ 55,800 |
Developed technology - tri-complex platform, Gross value | 7,480 | 7,480 |
Developed technology - tri-complex platform, Accumulated amortization | (6,075) | (5,541) |
Developed technology - tri-complex platform, Net book value | $ 1,405 | $ 1,939 |
Developed technology - tri-complex platform, Weighted-average remaining useful life | 1 year 4 months 24 days | 1 year 10 months 24 days |
Intangible assets, Gross value | $ 63,280 | $ 63,280 |
Intangible assets, Net book value | $ 57,205 | $ 57,739 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 300,000 | $ 300,000 | $ 534,000 | $ 534,000 |
Goodwill impairment | $ 0 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2024 (remaining six months) | $ 535 | |
2025 | 870 | |
Developed technology - tri-complex platform, Net book value | $ 1,405 | $ 1,939 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Summary of Change in Carrying Value of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Balance at December 31, 20223 | $ 14,608 |
Adjustment | 0 |
Balance at June 30, 2024 | $ 14,608 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Mar. 31, 2023 USD ($) ft² | Nov. 30, 2021 USD ($) ft² | Apr. 30, 2020 USD ($) ft² | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jan. 31, 2015 ft² | |
Lessee Lease Description [Line Items] | ||||||
Operating lease right-of-use asset | $ 75,305 | $ 77,149 | ||||
Operating lease liability | $ 87,411 | $ 87,944 | ||||
Operating lease, weighted average discount rate | 8.40% | |||||
Operating lease, weighted average remaining lease term | 11 years 7 months 6 days | 12 years | ||||
Undiscounted lease payments | $ 141,476 | |||||
Redwood City Lease | ||||||
Lessee Lease Description [Line Items] | ||||||
Lessee operating lease expiration month and year | 2033-11 | |||||
Area of space leased | ft² | 41,000 | |||||
Lessee, operating lease option to extend lease term | 10 years | |||||
Redwood City Lease | ASC 842 | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease right-of-use asset | $ 25,000 | $ 26,800 | ||||
Redwood City Lease | Restricted Cash | ||||||
Lessee Lease Description [Line Items] | ||||||
Letter of credit | $ 2,400 | $ 2,400 | ||||
Redwood City Lease | The 700 Building and 300 Building | ASC 842 | ||||||
Lessee Lease Description [Line Items] | ||||||
Increase in operating lease right-of-use asset | $ 8,600 | |||||
Redwood City Lease | The 300 Building | ||||||
Lessee Lease Description [Line Items] | ||||||
Lessee operating lease expiration month and year | 2030-12 | |||||
Area of space leased | ft² | 19,000 | |||||
Tenant improvement allowance | $ 9,600 | |||||
Redwood City Lease | The 300 Building | ASC 842 | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease right-of-use asset | $ 6,400 | |||||
Operating lease liability | 9,000 | |||||
Redwood City Lease | The 700 Building | ||||||
Lessee Lease Description [Line Items] | ||||||
Lessee operating lease expiration month and year | 2023-04 | |||||
Area of space leased | ft² | 42,000 | |||||
Tenant improvement allowance | $ 9,600 | |||||
Redwood City Lease | The 700 Building | ASC 842 | ||||||
Lessee Lease Description [Line Items] | ||||||
Increase in operating lease right-of-use asset | $ 14,800 | |||||
Redwood City Lease | The 900 Building | ||||||
Lessee Lease Description [Line Items] | ||||||
Area of space leased | ft² | 40,000 | |||||
Lessee, operating lease, option to extend | The Company has the option to extend the lease for an additional ten years after December 31, 2035. The Company obtained possession of the 900 Building in October 2023. | |||||
Tenant improvement allowance | $ 9,600 | |||||
Redwood City Lease | The 700 Building, 300 Building and 800 Building | ASC 842 | ||||||
Lessee Lease Description [Line Items] | ||||||
Increase in operating lease right-of-use asset | $ 300 |
Commitment and Contingencies _2
Commitment and Contingencies - Summary of Balance Sheet Classification of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease liability – current | $ 8,332 | $ 7,369 |
Operating lease liability – noncurrent | 79,079 | 80,575 |
Total operating lease liabilities | $ 87,411 | $ 87,944 |
Commitment and Contingencies _3
Commitment and Contingencies - Summary of Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Commitments and Contingencies Disclosure [Abstract] | |||||
Operating lease cost | $ 2,798 | $ 1,925 | $ 5,595 | $ 3,742 | |
Less: Sublease income | 0 | 0 | 0 | (302) | |
Total operating lease cost, net | [1] | $ 2,798 | $ 1,925 | $ 5,595 | $ 3,440 |
[1] Net lease cost does not include short-term lease and variable lease costs, which were immaterial. |
Commitment and Contingencies _4
Commitment and Contingencies - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 (remaining six months) | $ 3,834 | |
2025 | 10,476 | |
2026 | 10,843 | |
2027 | 11,222 | |
2028 | 11,615 | |
Thereafter | 93,486 | |
Total undiscounted lease payments | 141,476 | |
Less: Imputed interest | (54,065) | |
Total operating lease liabilities | $ 87,411 | $ 87,944 |
Sanofi Collaboration Agreement
Sanofi Collaboration Agreement - Additional Information (Details) - Sanofi Agreement - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jul. 31, 2018 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Upfront cash payment received | $ 50 | ||||
Percentage of reimbursement of internal and external research costs and expenses under research plan | 50% | ||||
Collaboration revenue recognized | $ 0 | $ 3.8 | $ 0 | $ 10.8 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2024 USD ($) Vote $ / shares shares | Dec. 31, 2023 $ / shares shares | |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares authorized | shares | 300,000,000 | 300,000,000 |
Common stock, par or stated value per share | $ / shares | $ 0.0001 | $ 0.0001 |
Common stock, voting rights | Each share of common stock is entitled to one vote | |
Number of voting rights per common share | Vote | 1 | |
Common stock, dividends declared | $ | $ 0 |
Common Stock - Schedule of Comm
Common Stock - Schedule of Common Stock for Future Issuance (Details) - shares | Jun. 30, 2024 | Dec. 31, 2023 |
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance, Total | 30,789,062 | 21,880,211 |
Outstanding Options to Purchase Common Stock | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance, Total | 13,811,570 | 11,083,349 |
Unvested Restricted Stock Units Of Common Stock | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance, Total | 3,032,583 | 2,161,267 |
Available for Future Issuance under the 2020 Incentive Award Plan | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance, Total | 10,094,505 | 6,241,188 |
Available for Issuance under the 2020 Employee Stock Purchase Plan | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuance, Total | 3,850,404 | 2,394,407 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Feb. 29, 2020 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock reserved for future issuance | 30,789,062 | 30,789,062 | 21,880,211 | |||
Unrecognized stock-based compensation expense related to unvested stock options | $ 118,700 | $ 118,700 | ||||
Unrecognized stock-based compensation expense, weighted-average period of recognition | 2 years 10 months 28 days | |||||
Stock-based compensation expense | 19,775 | $ 12,980 | $ 35,983 | $ 22,679 | ||
Restricted Stock Units (RSUs) | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation expense related to unvested stock options | $ 79,500 | $ 79,500 | ||||
Unrecognized stock-based compensation expense, weighted-average period of recognition | 3 years 18 days | |||||
2020 Equity Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Award vesting period | 4 years | |||||
2020 Employee Stock Purchase Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock reserved for future issuance | 3,850,404 | 3,850,404 | ||||
Purchase price rate | 85% | |||||
Shares purchased | 190,748 | 190,748 | ||||
Unrecognized compensation cost related to ESPP | $ 7,100 | $ 7,100 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Option Activity Under the Plan (Details) - 2020 Plan and 2014 Plan $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares underlying options, Beginning balance | shares | 11,083,349 | |
Number of Shares underlying options, Options granted | shares | 3,204,458 | |
Number of Shares underlying options, Options exercised | shares | (312,135) | |
Number of Shares underlying options, Options cancelled | shares | (164,102) | |
Number of Shares underlying options, Ending balance | shares | 13,811,570 | 11,083,349 |
Number of Shares underlying options, Options vested and exercisable | shares | 6,958,644 | |
Weighted-average exercise price, Beginning balance | $ / shares | $ 19.64 | |
Weighted-average exercise price, Options granted | $ / shares | 30.57 | |
Weighted-average exercise price, Options exercised | $ / shares | 16.5 | |
Weighted-average exercise price, Options cancelled | $ / shares | 24.43 | |
Weighted-average exercise price, Ending balance | $ / shares | 22.19 | $ 19.64 |
Weighted-average exercise price, Options vested and exercisable | $ / shares | $ 16.88 | |
Weighted-average remaining contractual term (in years) | 7 years 7 months 2 days | 7 years 6 months |
Weighted-average remaining contractual term, Options vested and exercisable | 6 years 3 months 3 days | |
Aggregate intrinsic value | $ | $ 232,899 | $ 115,009 |
Aggregate intrinsic value, Options vested and exercisable | $ | $ 155,397 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of RSUs Activity Under the Plan (Details) - 2020 Equity Incentive Plan - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Beginning balance | 2,161,267 | |
Number of Shares, RSUs granted | 1,413,243 | |
Number of Shares, RSUs vested | (469,031) | |
Number of Shares, RSUs forfeited | (72,896) | |
Number of Shares, Ending balance | 3,032,583 | 2,161,267 |
Number of Shares, Expected to vest | 3,032,583 | |
Weighted-average grant date fair value per share, Beginning balance | $ 25.1 | |
Weighted-average grant date fair value per share, Restricted stock units granted | 30.61 | |
Weighted-average grant date fair value per share, Restricted stock units vested | 25.98 | |
Weighted-average grant date fair value per share, Restricted stock units forfeited | 25.17 | |
Weighted-average grant date fair value per share, Ending balance | 27.53 | $ 25.1 |
Weighted-average grant date fair value per share, Expected to vest | $ 27.53 | |
Weighted-average remaining contractual term (in years) | 1 year 7 months 9 days | 1 year 6 months 21 days |
Weighted-average remaining contractual term, Expected to vest | 1 year 7 months 9 days | |
Aggregate intrinsic value | $ 117,695 | $ 61,985 |
Aggregate intrinsic value, Expected to vest | $ 117,695 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Total Stock-Based Compensation Expense Related to Stock Options, RSUs and Employee Stock Purchase Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 19,775 | $ 12,980 | $ 35,983 | $ 22,679 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 12,775 | 7,642 | 23,020 | 13,342 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 7,000 | $ 5,338 | $ 12,963 | $ 9,337 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | |||||
Net loss attributable to common stockholders | $ (133,233) | $ (98,298) | $ (249,236) | $ (166,396) | |
Denominator: | |||||
Weighted-average shares outstanding | 165,141,936 | 106,885,561 | 164,935,542 | 100,894,443 | |
Less: Weighted-average unvested restricted shares and shares subject to repurchase | 0 | (1,376) | 0 | (3,068) | |
Weighted-average common shares used to compute net loss per share, basic | 165,141,936 | 106,884,185 | 164,935,542 | 100,891,375 | |
Weighted-average common shares used to compute net loss per share, diluted | 165,141,936 | 106,884,185 | 164,935,542 | 100,891,375 | |
Net loss per share attributable to common stockholders, basic | $ (0.81) | $ (0.81) | $ (0.92) | $ (1.51) | $ (1.65) |
Net loss per share attributable to common stockholders, diluted | $ (0.81) | $ (0.81) | $ (0.92) | $ (1.51) | $ (1.65) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Schedule of Outstanding Potentially Dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive shares | 20,420,782 | 13,045,999 |
Option to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive shares | 13,811,570 | 10,789,298 |
Options Early Exercised Subject to Future Vesting | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive shares | 0 | 872 |
Unvested Restricted Stock Units Of Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive shares | 3,032,583 | 2,055,963 |
Expected Shares To Be Purchased Under ESPP | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive shares | 408,311 | 199,866 |
Warrants Outstanding [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive shares | 2,194,342 | 0 |
Earn out shares [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive shares | 973,976 | 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Aug. 31, 2024 USD ($) | Jul. 31, 2024 USD ($) ft² shares | Jun. 30, 2024 shares | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) shares | Nov. 30, 2021 ft² | |
Subsequent Event [Line Items] | |||||||
Net proceeds from issuance | $ 0 | $ 323,706 | |||||
Common Stock | 2021 ATM Program | |||||||
Subsequent Event [Line Items] | |||||||
Issuance of common stock upon offering, net of offering costs, shares | shares | 0 | 0 | 2,482,880 | ||||
Proceeds from issuance of common stock gross | $ 63,500 | ||||||
Commissions and expenses | 1,400 | ||||||
Net proceeds from issuance | $ 62,100 | ||||||
Common Stock | 2024 ATM Program | Forecast | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from issuance of common stock gross | $ 500,000 | ||||||
Redwood City Lease | |||||||
Subsequent Event [Line Items] | |||||||
Area of space leased | ft² | 41,000 | ||||||
Subsequent Event | Common Stock | 2021 ATM Program | |||||||
Subsequent Event [Line Items] | |||||||
Issuance of common stock upon offering, net of offering costs, shares | shares | 1,294,050 | ||||||
Proceeds from issuance of common stock gross | $ 60,800 | ||||||
Commissions and expenses | 1,200 | ||||||
Net proceeds from issuance | $ 59,600 | ||||||
Subsequent Event | The 500 Building | Redwood City Lease | |||||||
Subsequent Event [Line Items] | |||||||
Area of space leased | ft² | 43,000 | ||||||
Initial annual base rent | $ 2,700 | ||||||
Annual base rent increasing rate | 3.50% | ||||||
Tenant improvement allowance | $ 4,300 | ||||||
Lessee, operating lease, option to extend | The Company expects to take possession of the 500 Building in the third quarter of 2025. The Company has the option to extend the lease for an additional ten years after the first anniversary of the lease commencement date of the 500 Building. |