Wave Life Sciences (WVE) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 09, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	WVE
Entity Registrant Name	WAVE LIFE SCIENCES LTD.
Entity Central Index Key	1,631,574
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		23,426,423

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current Assets:
Cash	$ 153,397	$ 161,220
Prepaid expenses and other current assets	580	146
Deferred tax assets	23	18
Total current assets	154,000	161,384
Property and equipment, net	3,218	2,789
Deferred tax assets	192	192
Restricted cash	1,055	1,055
Other assets	57	4
Total assets	158,522	165,424
Current Liabilities:
Accounts payable	2,437	2,811
Accrued expenses and other current liabilities	1,271	945
Current portion of capital lease obligation	62	62
Total current liabilities	3,770	3,818
Long-term liabilities:
Capital lease obligation, net of current portion	62	78
Other liabilities	295	163
Total long-term liabilities	357	241
Total liabilities	4,127	4,059
Shareholders' equity:
Ordinary shares, no par value; 21,551,423 shares issued and outstanding	185,344	185,344
Additional paid-in capital	4,048	3,182
Accumulated other comprehensive income	52	41
Accumulated deficit	(42,923)	(35,076)
Total shareholders' equity	146,521	153,491
Total liabilities, Series A preferred shares and shareholders' equity	158,522	165,424
Series A Preferred Shares [Member]
Long-term liabilities:
Preferred stock value	$ 7,874	$ 7,874

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Common stock, par value
Common stock, shares issued	21,551,423	21,551,423
Common stock, shares outstanding	21,551,423	21,551,423
Series A Preferred Shares [Member]
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares issued	3,901,348	3,901,348
Preferred stock, shares outstanding	3,901,348	3,901,348

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenue		$ 26
Operating expenses:
Research and development	$ 4,736	1,607
General and administrative	3,216	1,884
Total operating expenses	7,952	3,491
Loss from operations	(7,952)	(3,465)
Other income (expense):
Interest income, net	104
Other income (expense), net	(4)	50
Total other income (expense), net	100	50
Loss before income tax provision	(7,852)	(3,415)
Income tax benefit (provision)	5	(50)
Net loss	$ (7,847)	$ (3,465)
Net loss per share attributable to ordinary shareholders-basic and diluted	$ (0.36)	$ (0.42)
Weighted-average ordinary shares used in computing net loss per share attributable to ordinary shareholders-basic and diluted	21,551,423	8,273,805

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (7,847)	$ (3,465)
Other comprehensive income (loss):
Foreign currency translation	11	(28)
Comprehensive loss	$ (7,836)	$ (3,493)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net loss	$ (7,847)	$ (3,465)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation and amortization	153	89
Share-based compensation expense	866	1,846
Deferred rent	136	(30)
Deferred income taxes	(5)	50
Changes in operating assets and liabilities:
Accounts receivable		(31)
Prepaid expenses and other current assets	(414)	(50)
Other non-current assets	(53)
Accounts payable	(296)	249
Accrued expenses and other current liabilities	329	(251)
Deferred revenue		(26)
Other non-current liabilities	(5)
Net cash used in operating activities	(7,136)	(1,619)
Cash flows from investing activities
Increase in restricted cash		(55)
Purchase of property and equipment	(685)	(17)
Net cash used in investing activities	(685)	(72)
Cash flows from financing activities
Proceeds from issuance of ordinary shares, net of offering costs		11,631
Payments on capital lease obligation	(16)
Net cash (used in) provided by financing activities	(16)	11,631
Effect of foreign exchange rates on cash	14	(27)
Net (decrease) increase in cash	(7,823)	9,913
Cash at beginning of period	161,220	1,048
Cash at end of period	153,397	$ 10,961
Supplemental disclosure of cash flow information:
Property and equipment purchases in accounts payable at period end	$ 185

The Company

The Company	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	1. THE COMPANY Organization WAVE Life Sciences Ltd. (together with its subsidiaries, “WAVE” or the “Company”) is a preclinical biotechnology company with an innovative and proprietary synthetic chemistry drug development platform that the Company is using to design, develop and commercialize a broad pipeline of first-in-class or best-in-class nucleic acid therapeutic candidates. The Company is initially developing nucleic acid therapeutics that target genetic defects to either reduce the expression of disease-promoting proteins or transform the production of dysfunctional mutant proteins into the production of functional proteins. The Company was incorporated in Singapore on July 23, 2012 and has its principal office in Cambridge, Massachusetts. The Company was incorporated with the purpose of combining two commonly held companies, WAVE Life Sciences USA, Inc. (“WAVE USA”), a Delaware corporation (formerly Ontorii, Inc.), and WAVE Life Sciences (Japan) (“WAVE Japan”), a company organized under the laws of Japan (formerly Chiralgen., Ltd.), which occurred on September 12, 2012. The Company’s primary activities since inception have been conducting research and experimental development of biotechnology and chemicals, conducting preclinical testing, recruiting personnel, and raising capital to support development activities. Initial Public Offering On November 16, 2015, the Company completed an initial public offering of its ordinary shares, in which the Company issued and sold 6,375,000 ordinary shares at a price to the public of $16.00 per share. On December 4, 2015, the Company issued an additional 618,126 ordinary shares at a price of $16.00 per share pursuant to a partial exercise of the underwriters’ over-allotment option. The aggregate net proceeds to the Company from the initial public offering, inclusive of the over-allotment exercise, were approximately $100.4 million after deducting underwriting discounts and commissions and offering expenses payable by the Company. Upon the listing of the Company’s ordinary shares on the NASDAQ Global Market on November 11, 2015, all of the outstanding Series B preferred shares of the Company automatically converted into 5,334,892 of the Company’s ordinary shares. Risks and Uncertainties The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, new technological innovations, protection of proprietary technology, dependence on key personnel, compliance with government regulations and the need to obtain additional financing. The Company’s therapeutic programs will require significant additional research and development efforts, including extensive pre-clinical and clinical testing and regulatory approval, prior to commercialization of any product candidates. These efforts require significant amounts of additional capital, adequate personnel infrastructure and extensive compliance-reporting capabilities. The Company’s therapeutic programs are currently in the development or discovery stage. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained, that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees and consultants. Basis of Presentation The Company has prepared the accompanying consolidated financial statements in conformity with U.S. GAAP and in U.S. dollars.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies	2. SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies described in the Company’s audited financial statements as of and for the year ended December 31, 2015, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 30, 2016, have had no material changes during the three months ended March 31, 2016. Unaudited Interim Financial Data The accompanying interim condensed consolidated balance sheet as of March 31, 2016, the related interim condensed consolidated statements of operations, comprehensive loss and cash flows for the three months ended March 31, 2016 and 2015, and the related interim information contained within the notes to the condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all of the information and the notes required by U.S. GAAP for complete financial statements. The financial data and other information disclosed in these notes related to the three months ended March 31, 2016 and 2015 are unaudited. In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for the fair presentation of the Company’s financial position at March 31, 2016 and the consolidated results of its operations, and comprehensive loss for the three months ended March 31, 2016 and 2015 and the consolidated results of its cash flows for the three months ended March 31, 2016 and 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2016 or any other interim period or future year or period. Principles of Consolidation The Company’s consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Recently Issued Accounting Pronouncements In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) (“ASU 2015-02”), to address financial reporting considerations for the evaluation as to the requirement to consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and for interim periods within those fiscal years beginning after December 15, 2015. The Company has evaluated the impact of ASU 2015-02 and has concluded that it has no effect on the consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30) (“ASU 2015-03”), as part of the initiative to reduce complexity in accounting standards. The update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company has evaluated the impact of ASU 2015-03 and has concluded that it has no effect on the consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU simplifies the current guidance in ASC Topic 740, Income Taxes, which requires entities to separately present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The Company does not expect the impact of ASU 2015-17 to be material to its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”) , In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies share-based payment accounting through a variety of amendments. The standard will be effective for annual reporting periods and interim periods within those annual periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the impact of ASU 2016-09 to be material to its consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	3. SHARE-BASED COMPENSATION The WAVE Life Sciences Ltd. 2014 Equity Incentive Plan (the “2014 Plan”) authorizes the board of directors or a committee of the board to grant incentive share options, non-qualified share options (“NQSOs”), share appreciation rights and restricted share awards to eligible employees, outside directors and consultants of the Company. Options generally vest over a period of three or four years, and options that lapse or are forfeited are available to be granted again. The contractual life of all options is ten years from the date the option begins to vest. As of March 31, 2016, there were 2,342,962 ordinary shares available for future grant under the 2014 Plan. The Company recorded share-based compensation expense of $0.9 million for the three months ended March 31, 2016, of which $0.4 million related to options granted to non-employees. The Company measures and records the value of options granted to non-employees over the period of time services are provided and, as such, unvested portions are subject to re-measurement at subsequent reporting periods. Share option activity under the 2014 Plan for the three months ended March 31, 2016 is summarized as follows: Number of Weighted- Outstanding as of January 1, 2016 2,215,342 $ 3.88 Granted 317,000 $ 14.11 Cancelled or forfeited (1,616 ) $ 10.22 Outstanding as of March 31, 2016 2,530,726 $ 5.15 Options exercisable as of March 31, 2016 848,223 $ 2.48 Options vested and expected to vest as of March 31, 2016 2,434,625 $ 5.07 Share-based compensation expense for the three months ended March 31, 2016 and 2015 were classified in the consolidated statements of operations as follows: Three Months Ended March 31, 2016 2015 (in thousands) Research and development expenses $ 588 $ 830 General and administrative expenses 278 1,016 Total share-based compensation $ 866 $ 1,846

Net Loss Per Ordinary Share

Net Loss Per Ordinary Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Loss Per Ordinary Share	4. NET LOSS PER ORDINARY SHARE The Company applies the two-class method to calculate its basic and diluted net loss per share attributable to ordinary shareholders, as its Series A preferred shares are participating securities. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to ordinary shareholders. However, for the periods presented, the two-class method does not impact the net loss per ordinary share as the Company was in a net loss position for each of the periods presented and holders of Series A preferred shares do not participate in losses. Basic loss per share is computed by dividing net loss attributable to ordinary shareholders by the weighted-average number of ordinary shares used in computing net loss per share attributable to ordinary shareholders. The Company’s potentially dilutive shares, which include outstanding share options to purchase ordinary shares and Series A preferred shares, are considered to be ordinary share equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. The following potential ordinary shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to ordinary shareholders for the periods indicated because including them would have had an anti-dilutive effect: As of March 31, 2016 2015 Options to purchase ordinary shares 2,530,726 1,297,268 Series A preferred shares 3,901,348 3,901,348

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	5. INCOME TAXES The Company is a multi-national company subject to taxation in the United States, Japan and Singapore. During the three months ended March 31, 2016 and 2015, the Company recorded a tax benefit of less than $0.1 million and tax provision of $0.1 million, respectively, each of which are a result of income generated in the United States for each respective period. During the three months ended March 31, 2016 and 2015, the Company recorded no income tax benefits for the net operating losses incurred in Japan and Singapore, due to its uncertainty of realizing a benefit from those items. The Company’s reserves related to taxes and its accounting for uncertain tax positions are based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more-likely-than-not to be realized following resolution of any potential contingencies present related to the tax benefit. Unrecognized tax benefits related to net operating losses are netted against the related deferred tax asset. The Company believes it is reasonably possible that approximately $0.7 million of its unrecognized tax benefits may decrease by the end of 2016 as a result of the Company’s intention to amend its tax filings for transfer pricing in prior years. The impact of the reversal of the uncertain tax benefit will reduce the net operating loss carryforwards in the United States.

Related Parties

Related Parties	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Parties	6. RELATED PARTIES (Presented in thousands) The Company had the following related party transactions for the periods presented in the accompanying consolidated financial statements, which have not otherwise been discussed in these notes to the consolidated financial statements: • The Company had cash of $126 and $115 at March 31, 2016 and December 31, 2015, respectively, in depository accounts with one of its investors, who became an investor in February 2014. • The Company made payments for lease rentals and other related expenses in the amount of $39 and $54 to Shin Nippon Biomedical Laboratories Ltd. (“SNBL”), a related party, for the three months ended March 31, 2016 and March 31, 2015. As of March 31, 2016 and December 31, 2015, the Company owed $54 and $59 related to this rental obligation. • Pursuant to the terms of a service agreement previously held with SNBL, a related party, the Company paid SNBL $3 and $6 for the three months ended March 31, 2016 and 2015, respectively, for accounting and administrative services provided to the Company and its affiliates. • Pursuant to the terms of a service agreement with SNBL, a related party, which was entered into in the third quarter 2015, the Company paid SNBL $115 for the three months ended March 31, 2016 for contract research services provided to the Company and its affiliates. As the agreement was not entered into until later in 2015, there were no payments made related to this agreement for the three months ended March 31, 2015. • In 2012, the Company entered into a consulting agreement with a shareholder for services in the capacity as a scientific advisor. The consulting agreement does not have a certain term and may be terminated by either party upon 14 days’ prior written notice. The Company pays the shareholder $13 per month and reimbursement for certain expenses. • The Company also has an informal consulting arrangement with a shareholder for scientific advisory services in the amount of 250 Japanese yen, or approximately $2, per month, plus reimbursement of certain expenses.

Geographic Data

Geographic Data	3 Months Ended
	Mar. 31, 2016
Text Block [Abstract]
Geographic Data	7. GEOGRAPHIC DATA The Company’s long-lived assets consist of property and equipment and are located in the following geographical areas: March 31, December 31, (in thousands) Asia $ 552 $ 578 United States 2,666 2,211 Total long-lived assets $ 3,218 $ 2,789

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	8. SUBSEQUENT EVENTS On May 5, 2016, the Company entered into a Research, License and Option Agreement (the “Agreement”) with Pfizer Inc. (“Pfizer”). Simultaneously with the entry into the Agreement on May 5, 2016, the Company entered into a Share Purchase Agreement (the “Equity Agreement,” and together with the Agreement, the “Pfizer Agreements”) with C.P. Pharmaceuticals International C.V., an affiliate of Pfizer (the “Pfizer Affiliate”). Pursuant to the terms of the Agreement, the Company and Pfizer have agreed to collaborate on the discovery, development and commercialization of stereopure oligonucleotide therapeutics for up to five programs (each, a “Pfizer Program”), each directed at a genetically-defined hepatic target selected by Pfizer (the “Collaboration”). Under the Agreement, the parties agreed to collaborate during a four-year research term. The term of the Agreement runs from the effective date until the date of the last to expire payment obligations with respect to each Pfizer Program and with respect to each Company program, and expires on a program-by-program basis accordingly. Under the terms of the Pfizer Agreements, Pfizer agreed to pay the Company $40.0 million upfront, $30.0 million of which is in the form of an equity investment in the Company. Subject to option exercises by Pfizer, assuming five potential products are successfully developed and commercialized, the Company may earn up to an additional $871.0 million in potential research, development and commercial milestone payments, plus royalties, tiered up to low double-digits, on sales of any products that may result from the Collaboration. Under the Equity Agreement, the Company issued 1,875,000 shares of the Company’s ordinary shares to the Pfizer Affiliate at a purchase price of $16.00 per share, for an aggregate purchase price of $30.0 million.

Significant Accounting Polici15

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Unaudited Interim Financial Data	Unaudited Interim Financial Data The accompanying interim condensed consolidated balance sheet as of March 31, 2016, the related interim condensed consolidated statements of operations, comprehensive loss and cash flows for the three months ended March 31, 2016 and 2015, and the related interim information contained within the notes to the condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all of the information and the notes required by U.S. GAAP for complete financial statements. The financial data and other information disclosed in these notes related to the three months ended March 31, 2016 and 2015 are unaudited. In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for the fair presentation of the Company’s financial position at March 31, 2016 and the consolidated results of its operations, and comprehensive loss for the three months ended March 31, 2016 and 2015 and the consolidated results of its cash flows for the three months ended March 31, 2016 and 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2016 or any other interim period or future year or period.
Principles of Consolidation	Principles of Consolidation The Company’s consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) (“ASU 2015-02”), to address financial reporting considerations for the evaluation as to the requirement to consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and for interim periods within those fiscal years beginning after December 15, 2015. The Company has evaluated the impact of ASU 2015-02 and has concluded that it has no effect on the consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30) (“ASU 2015-03”), as part of the initiative to reduce complexity in accounting standards. The update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company has evaluated the impact of ASU 2015-03 and has concluded that it has no effect on the consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU simplifies the current guidance in ASC Topic 740, Income Taxes, which requires entities to separately present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The Company does not expect the impact of ASU 2015-17 to be material to its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”) , In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies share-based payment accounting through a variety of amendments. The standard will be effective for annual reporting periods and interim periods within those annual periods, beginning after December 15, 2016, and early adoption is permitted. The Company does not expect the impact of ASU 2016-09 to be material to its consolidated financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Share Option Activity	Share option activity under the 2014 Plan for the three months ended March 31, 2016 is summarized as follows: Number of Weighted- Outstanding as of January 1, 2016 2,215,342 $ 3.88 Granted 317,000 $ 14.11 Cancelled or forfeited (1,616 ) $ 10.22 Outstanding as of March 31, 2016 2,530,726 $ 5.15 Options exercisable as of March 31, 2016 848,223 $ 2.48 Options vested and expected to vest as of March 31, 2016 2,434,625 $ 5.07
Summary of Share-based Compensation Expense Classified in Consolidated Statements of Operations	Share-based compensation expense for the three months ended March 31, 2016 and 2015 were classified in the consolidated statements of operations as follows: Three Months Ended March 31, 2016 2015 (in thousands) Research and development expenses $ 588 $ 830 General and administrative expenses 278 1,016 Total share-based compensation $ 866 $ 1,846

Net Loss Per Ordinary Share (Ta

Net Loss Per Ordinary Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Anti-Dilutive Shares Excluded from Calculation of Diluted Net Loss Per Ordinary Share	The following potential ordinary shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to ordinary shareholders for the periods indicated because including them would have had an anti-dilutive effect: As of March 31, 2016 2015 Options to purchase ordinary shares 2,530,726 1,297,268 Series A preferred shares 3,901,348 3,901,348

Geographic Data (Tables)

Geographic Data (Tables)	3 Months Ended
	Mar. 31, 2016
Text Block [Abstract]
Summary of Long-Lived Assets by Geographical Areas	The Company’s long-lived assets consist of property and equipment and are located in the following geographical areas: March 31, December 31, (in thousands) Asia $ 552 $ 578 United States 2,666 2,211 Total long-lived assets $ 3,218 $ 2,789

The Company - Additional Inform

The Company - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Dec. 04, 2015	Nov. 16, 2015	Mar. 31, 2016
IPO [Member]
Subsidiary, Sale of Stock [Line Items]
Number of shares issued and sold		6,375,000
Shares issued, price per share		$ 16
Convertible preferred stock converted into common stock		5,334,892
Sale of common stock, Date			Nov. 16, 2015
Underwriters Over-Allotment Option [Member]
Subsidiary, Sale of Stock [Line Items]
Number of shares issued and sold	618,126
Shares issued, price per share	$ 16
Proceeds from sale of common stock	$ 100.4

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 866	$ 1,846
2014 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual life of options	10 years
Ordinary shares available for future grant	2,342,962
Share-based compensation expense	$ 900
2014 Plan [Member] | Non-Employees Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 400
2014 Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting period	3 years
2014 Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting period	4 years

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Share Option Activity (Detail) - 2014 Plan [Member]	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Number of Shares, Beginning Balance | shares	2,215,342
Granted, Number of Shares | shares	317,000
Cancelled or forfeited, Number of Shares | shares	(1,616)
Outstanding, Number of Shares, Ending Balance | shares	2,530,726
Options exercisable, Number of Shares | shares	848,223
Options vested and expected to vest, Number of Shares | shares	2,434,625
Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 3.88
Granted, Weighted Average Exercise Price | $ / shares	14.11
Cancelled or forfeited, Weighted Average Exercise Price | $ / shares	10.22
Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	5.15
Options exercisable, Weighted Average Exercise Price | $ / shares	2.48
Options vested and expected to vest, Weighted Average Exercise Price | $ / shares	$ 5.07

Share-Based Compensation - Su22

Share-Based Compensation - Summary of Share-based Compensation Expense Classified in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation	$ 866	$ 1,846
Research and Development Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation	588	830
General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total share-based compensation	$ 278	$ 1,016

Net Loss Per Ordinary Share - A

Net Loss Per Ordinary Share - Anti-Dilutive Shares Excluded from Calculation of Diluted Net Loss Per Ordinary Share (Detail) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Series A Preferred Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	3,901,348	3,901,348
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	2,530,726	1,297,268

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Taxes [Line Items]
Income tax benefit (provision)	$ (5,000)	$ 50,000
United States [Member]
Income Taxes [Line Items]
Income tax benefit (provision)		100,000
United States [Member] | Maximum [Member]
Income Taxes [Line Items]
Income tax benefit (provision)	(100,000)
Japan [Member]
Income Taxes [Line Items]
Income tax benefit (provision)	0	0
Singapore [Member]
Income Taxes [Line Items]
Income tax benefit (provision)	0	$ 0
Adjustments for New Accounting Principle, Early Adoption [Member]
Income Taxes [Line Items]
Unrecognized tax benefit	$ 700,000

Related Parties - Additional In

Related Parties - Additional Information (Detail) ¥ in Thousands	3 Months Ended			12 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2016JPY (¥)	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Third-Party Investor [Member]
Related Party Transaction [Line Items]
Related party transaction amount	$ 126,000			$ 115,000
Shin Nippon Biomedical Laboratories Ltd. (SNBL) [Member]
Related Party Transaction [Line Items]
Lease rentals and other related expenses	39,000		$ 54,000
Lease rentals and other related expenses due	54,000			$ 59,000
Payment for accounting and administrative services	3,000		6,000
Payment for contract research services	$ 115,000		$ 0
Scientific Advisor [Member] | Consulting Agreement [Member]
Related Party Transaction [Line Items]
Consulting agreement termination notice period	14 days	14 days
Consulting service expenses	$ 13,000
Scientific Advisor [Member] | Informal Consulting Arrangement [Member]
Related Party Transaction [Line Items]
Consulting service expenses	$ 2,000	¥ 250

Geographic Data - Summary of Lo

Geographic Data - Summary of Long-Lived Assets by Geographical Areas (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Geographic Area Information [Line Items]
Property and equipment, net	$ 3,218	$ 2,789
Asia [Member]
Geographic Area Information [Line Items]
Property and equipment, net	552	578
United States [Member]
Geographic Area Information [Line Items]
Property and equipment, net	$ 2,666	$ 2,211

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - Research, License and Option Agreement [Member] - Pfizer Inc. [Member] - Subsequent Event [Member] $ / shares in Units, $ in Millions	May. 05, 2016USD ($)Program$ / sharesshares
Subsequent Event [Line Items]
Number of programs agreed to collaborate | Program	5
Collaborative agreement research term	4 years
Upfront amount related to research and development services	$ 40
Upfront amount in form of equity investment	30
Potential milestone payments plus royalties on sales of any products	$ 871
Shares issued under equity agreement | shares	1,875,000
Equity investment aggregate purchase price	$ 30
Purchase price per share | $ / shares	$ 16