Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | AIMT | |
Entity Registrant Name | AIMMUNE THERAPEUTICS, INC. | |
Entity Central Index Key | 0001631650 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 65,250,758 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-37519 | |
Entity Tax Identification Number | 45-2748244 | |
Entity Address, Address Line One | 8000 Marina Blvd. | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Brisbane | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94005 | |
City Area Code | 650 | |
Local Phone Number | 614-5220 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 298,418 | $ 79,880 |
Short-term investments | 59,933 | 63,633 |
Trade receivables, net | 772 | |
Inventories | 4,076 | |
Prepaid expenses and other current assets | 4,621 | 5,564 |
Total current assets | 367,820 | 149,077 |
Long-term investments | 13,256 | 14,661 |
Property and equipment, net | 27,506 | 28,604 |
Operating lease right-of-use assets | 10,913 | 11,512 |
Prepaid expenses and other assets | 557 | 515 |
Total assets | 420,052 | 204,369 |
Current liabilities: | ||
Accounts payable | 13,952 | 13,882 |
Accrued liabilities | 29,128 | 31,286 |
Operating lease liabilities, current | 2,315 | 2,257 |
Other current liabilities | 24 | 23 |
Total current liabilities | 45,419 | 47,448 |
Long term debt, net of discount | 128,250 | 41,028 |
Operating lease liabilities | 9,824 | 10,524 |
Other liabilities | 1,512 | 1,345 |
Total liabilities | 185,005 | 100,345 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.0001 per share— 10,000 shares authorized at March 31, 2020 and December 31, 2019; 526 and 0 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | ||
Common stock, par value $0.0001 per share—290,000 shares authorized as of March 31, 2020 and December 31, 2019; 65,223 and 63,779 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively | 7 | 6 |
Additional paid-in capital | 1,045,989 | 828,618 |
Accumulated other comprehensive income | 163 | 80 |
Accumulated deficit | (811,112) | (724,680) |
Total stockholders’ equity | 235,047 | 104,024 |
Total liabilities and stockholders’ equity | $ 420,052 | $ 204,369 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 526,000 | 0 |
Preferred stock, shares outstanding | 526,000 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 290,000,000 | 290,000,000 |
Common stock, shares issued | 65,223,000 | 63,779,000 |
Common stock, shares outstanding | 65,223,000 | 63,779,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Product revenue, net | $ 575 | |
Revenue from Contract with Customer, Product and Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember |
Costs and operating expenses | ||
Cost of revenue | $ 257 | |
Research and development | 36,463 | $ 31,316 |
Selling, general and administrative | 49,138 | 23,712 |
Total costs and operating expenses | 85,858 | 55,028 |
Loss from operations | (85,283) | (55,028) |
Interest income | 978 | 1,901 |
Interest expense | (2,229) | (1,144) |
Other income, net | 221 | 34 |
Loss before provision for income taxes | (86,313) | (54,237) |
Provision for income taxes | 119 | 29 |
Net loss | (86,432) | (54,266) |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustment | 10 | |
Unrealized gain on available-for-sale investments | 73 | 171 |
Comprehensive loss | $ (86,349) | $ (54,095) |
Net loss per share, basic and diluted | $ (1.34) | $ (0.87) |
Weighted average shares used in computing net loss per common share, basic and diluted | 64,514 | 62,022 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2018 | $ 298,947 | $ 6 | $ 775,283 | $ (108) | $ (476,234) | |
Beginning balances (in shares) at Dec. 31, 2018 | 62,142 | |||||
Issuance of common stock upon exercise of vested options and vesting of restricted stock units | 3,633 | 3,633 | ||||
Issuance of common stock upon exercise of vested options and vesting of restricted stock units (in shares) | 328 | |||||
Stock-based compensation expense | 7,765 | 7,765 | ||||
Unrealized gain on available-for-sale investments | 171 | 171 | ||||
Accumulated depreciation upon adoption of ASU Topic 842 | 51 | 51 | ||||
Net loss | (54,266) | (54,266) | ||||
Ending balances at Mar. 31, 2019 | 256,301 | $ 6 | 786,681 | 63 | (530,449) | |
Ending balances (in shares) at Mar. 31, 2019 | 62,470 | |||||
Beginning balance at Dec. 31, 2019 | 104,024 | $ 6 | 828,618 | 80 | (724,680) | |
Beginning balances (in shares) at Dec. 31, 2019 | 63,779 | |||||
Issuance of common stock pursuant to development arrangement | 5,000 | 5,000 | ||||
Issuance of common stock pursuant to development arrangement (in shares) | 156 | |||||
Issuance of preferred and common stock pursuant to financing arrangement | 199,907 | $ 1 | 199,906 | |||
Issuance of preferred and common stock pursuant to financing arrangement (in shares) | 526 | 1,000 | ||||
Issuance of common stock upon exercise of vested options and vesting of restricted stock units | 2,098 | 2,098 | ||||
Issuance of common stock upon exercise of vested options and vesting of restricted stock units (in shares) | 288 | |||||
Stock-based compensation expense | 10,367 | 10,367 | ||||
Foreign currency translation adjustment | 10 | 10 | ||||
Unrealized gain on available-for-sale investments | 73 | 73 | ||||
Net loss | (86,432) | (86,432) | ||||
Ending balances at Mar. 31, 2020 | $ 235,047 | $ 7 | $ 1,045,989 | $ 163 | $ (811,112) | |
Ending balances (in shares) at Mar. 31, 2020 | 526 | 65,223 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (86,432) | $ (54,266) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization expense | 1,298 | 666 |
Stock-based compensation expense | 10,303 | 7,765 |
Non-cash interest expense | 2,223 | 1,065 |
Amortization of premium on investment securities | (6) | (542) |
Research and development expenses recognized from issuance of common stock | 5,000 | |
Changes in operating assets and liabilities: | ||
Trade receivables, net | (772) | |
Inventories | (4,012) | |
Prepaid expenses and other assets | 2,429 | 1,433 |
Accounts payable | 191 | 1,945 |
Accrued liabilities | (2,159) | (3,555) |
Other liabilities | 125 | (340) |
Net cash used in operating activities | (71,812) | (45,829) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (319) | (1,372) |
Purchase of investments | (32,457) | (85,564) |
Maturities of investments | 37,640 | 67,408 |
Net cash provided by (used in) investing activities | 4,864 | (19,528) |
Cash flows from financing activities: | ||
Borrowings under debt agreement | 85,000 | 40,000 |
Debt issuance costs | (3,856) | |
Net proceeds from issuance of preferred and common stock | 199,907 | |
Net cash proceeds from exercise of stock options | 1,996 | 3,250 |
Tax withholdings related to net share settlements of restricted stock units | (1,427) | (490) |
Net cash provided by financing activities | 285,476 | 38,904 |
Effects of changes in foreign exchange rates | 10 | |
Net increase (decrease) in cash and cash equivalents | 218,538 | (26,453) |
Cash and cash equivalents at the beginning of the period | 79,880 | 107,511 |
Cash and cash equivalents at the end of the period | 298,418 | 81,058 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment purchases included in accounts payable and accrued liabilities | $ 120 | 1,051 |
Receivable for stock option exercises | $ 383 |
Formation and Business of the C
Formation and Business of the Company | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Formation and Business of the Company | 1. Formation and Business of the Company Aimmune Therapeutics, Inc., or the Company, is a biopharmaceutical company focused on developing and commercializing new therapeutic approaches, including the development of proprietary product candidates, for the treatment of peanut and other food allergies Our main therapeutic approach, which we refer to as Characterized Oral Desensitization Immunotherapy, or CODIT TM PALFORZIA TM Since inception, we have incurred net losses and negative cash flows from operations. During the quarter ended March 31, 2020, we incurred a net loss of $86.4 million and we used $71.8 million of cash in operations. As of March 31, 2020, we had an accumulated deficit of $811.1 million, and we do not expect to experience positive cash flows in the near future. As of March 31, 2020, we had cash, cash equivalents and investments of $371.6 million. In February 2020, we received gross proceeds from Nestlé Health Science’s $200.0 million equity investment and the draw of the second loan tranche from KKR of $85.0 million. In light of the launch delay caused by COVID-19, we are taking numerous active steps to conserve financial resources. We anticipate that based on our current business plan, our financial resources will fully fund us. We have financed our operations to date primarily through private placements of our equity securities, our initial public offering, or IPO, of common stock in August 2015, an underwritten public offering of common stock in February and March 2018 and our loan agreement entered into in January 2019. Our ability to continue to meet our obligations and to achieve our business objectives is dependent upon a number of factors, which include commercializing PALFORZIA, obtaining European Medicines Agency, or EMA, approval of our Marketing Authorization Application for PALFORZIA, raising additional capital, the successful and timely completion of our clinical trials, our ability to control expenses and generating sufficient revenue in the United States and Europe. Failure to generate sufficient revenue in the United States, manage discretionary expenditures, or raise additional financing, as required, may adversely impact our ability to achieve our intended business objectives. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Preparation The accompanying condensed consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles, or GAAP, in the United States and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of December 31, 2019, has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements have been prepared on the same basis as our annual financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair presentation of our financial information. The results of operations for the quarter ended March 31, 2020, are not necessarily indicative of the results to be expected for the year ending December 31, 2020, or for any other interim period or for any other future year. We operate in one reportable segment. The accompanying 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, 2019, included in our Annual Report on Form 10-K filed with the SEC. Basis of Consolidation The accompanying condensed consolidated financial statements include the accounts of our wholly-owned subsidiaries. All significant intercompany transactions have been eliminated. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported revenue, costs and expenses recognized during the reporting periods. We base our estimates and assumptions on historical experience when available and on various factors that we believe to be reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Our actual results could differ from these estimates under different assumptions or conditions. Significant Accounting Policies There have been no significant changes to the accounting policies during the three months ended March 31, 2020, as compared to the significant accounting policies described in Note 2 of the “Notes to Consolidated Financial Statements” in our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019, except as noted below. Foreign Currency Translation The functional currency of our foreign subsidiaries is either the U.S. dollar or the Euro. For foreign subsidiaries with the functional currency of the Euro, assets and liabilities are translated to U.S. dollars using the exchange rates at the balance sheet date and expenses are translated using the monthly average exchange rates in effect during the period in which the transactions occur. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income within stockholders’ equity. Monetary assets and liabilities in the non-functional currency of our subsidiaries are remeasured using exchange rates in effect at the end of the period. Costs in the non-functional currency are remeasured using average exchange rates for the period, except for costs related to those balance sheet items that are remeasured using historical exchange rates. The resulting transaction gains and losses are included in the consolidated statements of comprehensive loss as incurred and have not been material for all periods presented. Concentration of Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, trade receivables, and investments. Our investment policy limits investments to certain types of debt securities issued by the U.S. government, its agencies and institutions with investment-grade credit ratings and places restrictions on maturities and concentration by type and issuer. We are exposed to credit risk in the event of a default by the financial institutions holding our cash, cash equivalents and investments and issuers of investments to the extent recorded on the consolidated balance sheets. We are dependent on a small number of third-party manufacturers to manufacture our drugs and drug candidates. We could be adversely affected by a significant interruption in the supply of bulk drug substances and the manufacturing activities to produce, package and distribute PALFORZIA. During the quarter ended March 31, 2020, we had four customers, of whom three accounted for approximately 75%, 13% and 12% of total net revenues. We had no such concentration during the three months ended March 31, 2019. In March 2020, the World Health Organization declared the global novel coronavirus, or COVID-19, outbreak a pandemic. To date, our operations have been significantly impacted by the COVID-19 pandemic, including with respect to the commercial launch of PALFORZIA and enrollment in our Phase 2 clinical trial for AR201. However, we cannot at this time predict the specific extent, duration or full impact that the COVID-19 pandemic will have on our financial condition and results of operations. The impact of the COVID-19 pandemic on our financial performance will depend on future developments, including the duration and spread of the COVID-19 pandemic and related governmental advisories and restrictions. These developments and the impact of COVID-19 on the financial markets and the overall economy are also highly uncertain. If the financial markets and/or the overall economy are impacted for an extended period, our business, financial condition, results of operations and prospects Trade Receivables, net Trade receivables are recorded net of estimates for which reserves are established for distributor fees, prompt pay discounts and other distributor costs that are offered within contracts between us and a limited number of specialty distributors and pharmacies in the United States, which we refer to herein as Customers. These reserves are classified as reductions of trade receivables. Refer to our Revenue Recognition policy for additional information. Accounts outstanding longer than the contractual payment terms are considered past due. We write off accounts receivable when they are deemed uncollectible and such write-offs, net of payments received, are recorded as a reduction to the allowance. As of March 31, 2020, and March 31, 2019, we did no t have any allowances for doubtful accounts. Inventories Inventories are stated at the lower of cost or estimated net realizable value, on a first-in, first-out, or FIFO, basis. We use actual costs to determine our cost basis for inventories. Inventories consist of raw materials, work-in-process and finished goods. Prior to regulatory approval of our product candidates, expenses incurred to manufacture drug products are recorded as research and development expense. We begin capitalizing these expenses as inventory upon regulatory approval. We assess our inventory levels each reporting period and write-down inventory that is expected to be at risk of expiration, that has a cost basis in excess of its expected net realizable value and inventory quantities in excess of expected requirements. In evaluating the sufficiency of our inventory reserves or liabilities for firm purchase commitments, we also take into consideration our firm purchase commitments for future inventory production. When we recognize a loss on such inventory or firm purchase commitments, such amounts are recognized as cost of revenues. Revenue Recognition Pursuant to ASC Topic 606, Revenue from Contracts with Customers, To determine revenue recognition for arrangements that we determine are within the scope of ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract(s); and (v) recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. Product Revenue, Net Our product revenue consists of U.S. sales of PALFROZIA, which we began shipping to Customers in March 2020. Prior to March 2020 we had no product revenue. We sell PALFROZIA to a limited number of Customers under a Risk Evaluation and Mitigation Strategy, a drug safety program that the FDA requires for certain medications with safety concerns to help ensure the benefits of the medication outweigh its risks. Revenue from product sales are recognized when the performance obligation under the agreements with our Customers are fulfilled, which is when the product has been delivered to our Customers. Shipping and handling activities are considered to be fulfillment activities rather than a separate performance obligation and are recorded as cost of revenue. Reserves for Variable Consideration Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established and which result from distribution fees, prompt pay discounts, expected product returns, chargebacks, rebates, co-pay assistance and other allowances that are offered relating to our product sales. These reserves as detailed below are based on the amounts earned or to be claimed on the related sales and are classified as reductions of trade receivables or accrued liabilities. Where appropriate, these estimates take into consideration a range of possible outcomes that are probability-weighted in accordance with the expected value method under ASC 606 for relevant factors. These factors include current contractual and statutory requirements, specific known market events and trends, industry data, and/or forecasted customer buying and payment patterns. Overall, these reserves are factored into our net estimate of transaction price and reflect our best estimates of the amount of consideration to which we are entitled based on the terms of the respective underlying contracts. The amount of variable consideration that is included in the transaction price may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from our estimates. If actual results in the future vary from our estimates, we will adjust these estimates, which would affect net product revenue and earnings in the period such variances become known. Distribution Fees : Under our inventory management agreements with our Customers, we pay them a fee primarily for compliance with certain contractually determined covenants such as the maintenance of agreed upon inventory levels. These distribution fees are based on a contractually determined fixed percentage of sales. We record these distribution fees as a reduction of trade receivables. Prompt Pay Discounts: Our Customers receive a contractually agreed discount for prompt payment. We expect our Customers will earn 100% of their prompt pay discounts and we record these discounts as a reduction of trade receivables. Product Returns: We generally offer our Customers a right of return based on the product’s expiration date or other market-based factors for product that has been purchased from us. We estimate the amount of our product sales that may be returned by our Customers and record the estimates as an accrued liability. We currently estimate product returns using available industry data, our own sales information and our visibility into the inventory remaining in the distribution channel. Rebates: We are subject to government mandated rebates under the Medicaid Drug Rebate Program and other government health care programs in the United States. Rebate amounts are based upon contractual agreements or legal requirements with public sector benefit providers. We use the expected-value method for estimating these rebates based on statutory discount rates and expected utilization. The expected utilization of such rebates is estimated based on third party market research data and data received from our Customers. Estimates for these rebates are adjusted quarterly to reflect the most recent information. We record the estimated rebates as an accrued liability. Co-Pay Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-pay assistance. We record the estimated amounts as an accrued liability. Co-pay assistance is based on actual program participation on a patient-by-patient basis and estimates of program redemption using our patient data provided by the third-party administrator of our co-pay program. Estimates for these rebates are adjusted quarterly to reflect the most recent information. Other Customer Credits: We pay fees to the specialty distributors and pharmacies for account management, data management and other administrative services. We have determined such services received to date are not distinct from our sale of products to the specialty distributors and pharmacies and, therefore, a fair market value for these services may not be reasonably determined for accounting purposes. We record these fees as an accrued liability. Cost of Revenue Cost of revenue consists primarily of direct and indirect costs related to the manufacturing of PALFROZIA units sold, including raw materials, third-party contract manufacturing and packaging costs, freight costs, storage costs, allocation of overhead costs of employees involved with production of PALFORZIA and costs paid to our contract manufacturers, if any, for anticipated shortfall in product demand relative to committed volumes. Such product costs incurred prior to FDA approval of PALFORZIA in January 2020 have been recorded as research and development expense in our condensed consolidated statement of operations. Income Taxes On March 18, 2020, the Families First Coronavirus Response Act, or the FFCR Act, and on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, were each enacted in response to the COVID-19 pandemic. The FFCR Act and the CARES Act contain numerous income tax provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The FFCR Act and CARES Act did not have a material impact on our condensed consolidated financial statements as of March 31, 2020; however, we continue to examine the impacts the FFCR Act and CARES Act may have on our business, results of operations, financial condition and liquidity. Recently Adopted Accounting Pronouncements We adopted Accounting Standards Update, or ASU, No. 2018-15, Intangibles-Goodwill and Other – Internal Use Software: Subtopic 340-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, We adopted ASU No. 2018-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement , as of January 1, 2020. The ASU adds and modifies certain disclosure requirements for fair value measurements. Under the new guidance, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, or valuation processes for Level 3 fair value measurements. However, public companies will be required to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and related changes in unrealized gains and losses included in other comprehensive income. The adoption of ASU No. 2018-13 did not have a material impact on our consolidated financial statements. We adopted ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments We adopted ASU No. 2019-12, Simplifying the Accounting for Income Taxes |
Available-for-Sale Securities a
Available-for-Sale Securities and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Available-for-Sale Securities and Fair Value Measurements | 3. Available-for-Sale Securities and Fair Value Measurements We define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an Our valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. We classify these inputs into the following hierarchy: • Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; • Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and • Level 3—Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. The following tables set forth our financial instrumen ts that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): March 31, 2020 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash and money market funds $ 298,418 $ — $ — $ 298,418 Total cash and cash equivalents $ 298,418 $ — $ — $ 298,418 Investments: Agency securities $ — $ 7,507 $ — $ 7,507 Corporate securities — 30,970 — 30,970 Commercial paper — 9,942 — 9,942 U.S. government securities — 24,770 — 24,770 Total investments $ — $ 73,189 $ — $ 73,189 December 31, 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash and money market funds $ 79,880 $ — $ — $ 79,880 Total cash and cash equivalents $ 79,880 $ — $ — $ 79,880 Investments: Agency securities — 8,862 — 8,862 Corporate securities — 30,338 — 30,338 Commercial paper — 7,949 — 7,949 U.S. government securities — 31,145 — 31,145 Total investments $ — $ 78,294 $ — $ 78,294 Our valuation techniques used to measure the fair value of money market funds were derived from quoted prices in active markets for identical assets. The valuation techniques used to measure the fair value of investments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model-driven valuations using significant inputs derived from or corroborated by observable market data. Investments are carried at fair value at March 31, 2020. Available-for-sale investments are carried at fair value and are included in the tables above. The aggregate market value, cost basis, and gross unrealized gains and losses of available-for-sale investments by security type, classified in cash equivalents and investments, as of March 31, 2020 and December 31, 2019, are as follows March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Fair Value Agency securities $ 7,499 $ 8 $ — $ 7,507 Corporate securities 9,942 — — 9,942 Commercial paper 31,009 23 (62 ) 30,970 U.S. government securities 24,586 184 — 24,770 Total available-for-sale investments $ 73,036 $ 215 $ (62 ) $ 73,189 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Fair Value Agency securities $ 8,856 $ 6 — $ 8,862 Corporate securities 30,286 55 (3 ) 30,338 Commercial paper 7,949 — — 7,949 U.S. government securities 31,123 22 — 31,145 Total available-for-sale investments $ 78,214 $ 83 $ (3 ) $ 78,294 At March 31, 2020, all of the available-for-sale securities have contractual maturities within two years. During the quarters ended March 31, 2020 and 2019 The carrying value of our long-term debt approximates its fair value at each balance sheet date due to its variable interest rate, which approximates a market interest rate. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 4. Balance Sheet Components Inventories Inventories consists of the following (in thousands): March 31, 2020 December 31, 2019 Raw materials $ 30 $ — Work in process 3,321 — Finished goods 725 — Total inventories $ 4,076 $ — Property and Equipment, Net Property and equipment, net consists of the following (in thousands): March 31, 2020 December 31, 2019 Furniture and equipment $ 2,679 $ 2,660 Computer equipment 2,849 2,820 Manufacturing equipment 15,341 9,012 Leased equipment 102 100 Leasehold improvements 14,525 14,525 Construction in progress 470 6,649 Property and equipment, gross 35,966 35,766 Less: accumulated depreciation (8,460 ) (7,162 ) Property and equipment, net $ 27,506 $ 28,604 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): March 31, 2020 December 31, 2019 Compensation and benefits $ 8,151 $ 13,286 Research and development 10,010 11,336 Professional and consulting 10,125 6,627 Other 842 37 Total accrued liabilities $ 29,128 $ 31,286 |
Long-Term Debt, Net of Discount
Long-Term Debt, Net of Discounts | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net of Discounts | 5. Long-term Debt, net of Discounts In January 2019, we entered into a loan agreement with an affiliate of KKR for up to $170.0 million in three tranches, or the KKR Loans. Of the total loan amount, $40.0 million was funded upon closing of the transaction in January 2019 and $85.0 million was funded in February 2020 following FDA approval of PALFORZIA and satisfaction of other customary borrowing conditions. The remaining $45.0 million is to be made available at our option in 2020 upon the satisfaction of certain borrowing conditions, including our achievement of aggregate net sales (as defined in the agreement) for PALFORZIA by July 31, 2020 in an amount of at least $30.0 million. The KKR Loans have a maturity date being the earliest of (a) January 3, 2025, or if Regulatory Approval has not occurred on or before December 31, 2020, January 15, 2021 and (b) the date that is 91 days prior to the earliest current maturity date of any other loans we might have in excess of $15.0 million prior to the funding of the third tranche of the KKR Loans or $25.0 million following the funding of the third tranche of the KKR Loans. The KKR Loans bear interest through maturity, at our election with respect to (a) Alternate Base Rate, or ABR Loans, ABR plus 6.50% per annum and (b) London Interbank Offered Rate, or LIBOR Loans, 30-day LIBOR plus 7.50% per annum. We have the option to elect to make interest payments from available funds or make interest payments in kind by capitalizing such interest amounts on the applicable interest payment date by adding the amounts to the outstanding principal amount of the loan. Any capitalized amounts also bear interest. To date, we have selected to pay in kind and capitalized the interest through the three months ending March 31, 2020. We began accruing interest on outstanding KKR Loans on March 31, 2019, and continue to accrue interest on the outstanding KKR loans on the last business day of each March, June, September and December thereafter while any KKR Loan is outstanding, as well as on the final maturity date of the KKR Loans, with each such date being referred to herein as an Interest Payment Date. In connection with the KKR Loans, we paid direct fees of $3.9 million, including debt issuance costs. The fees are being amortized as interest expense over the term of the debt. As of March 31, 2020, $130.9 million was outstanding under the KKR Loans. As of March 31, 2020, the interest rate on the KKR Loans was 8.9% per annum. The following table represents our short-term and long-term debt obligations (in thousands): March 31, 2020 December 31, 2019 Principal amount of long-term debt $ 130,868 $ 44,004 Less: Current portion of long-term debt — — Long-term debt, net of current portion 130,868 44,004 Unamortized discount relating to deferred financing costs, net (3,064 ) (3,234 ) Accrued exit fee payment 446 258 Long-term debt, net of discount and current portion $ 128,250 $ 41,028 Future principal payments of our long-term debt as of March 31, 2020 are as follows (in thousands): Fiscal year ending December 31: 2020 $ — 2021 — 2022 — 2023 65,434 2024 65,434 Thereafter — Total $ 130,868 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 6. Leases We lease facilities for office and manufacturing space under various operating leases and a security system under a financing lease. Operating lease right-of-use assets and liabilities on our condensed consolidated balance sheets represent the present value of our remaining lease payments over the remaining lease terms. We do not allocate lease payments to non-lease components. We use our incremental borrowing rate to calculate the present value of our lease payments, as the implicit rates in our leases are not readily determinable. The maturities of our operating lease liabilities were as follows (in thousands): Remaining Lease Payments at March 31, 2020 Operating Financing Total 2020 $ 2,839 $ 26 $ 2,865 2021 3,875 35 3,910 2022 3,929 9 3,938 2023 3,762 — 3,762 2024 1,857 — 1,857 Thereafter 227 — 227 Total lease payments $ 16,489 $ 70 $ 16,559 Less: Effects of discounting (4,350 ) (9 ) (4,359 ) Present value of lease liabilities $ 12,139 $ 61 $ 12,200 Less: current portion (2,315 ) (23 ) (2,338 ) Long-term lease liabilities $ 9,824 $ 38 $ 9,862 Weighted-average remaining lease term 4.3 years 2.0 years Weighted-average incremental borrowing rate 11 % 23 % The component of our lease costs included in our condensed consolidated statements of income were as follows (in thousands): Quarter Ended March 31, Lease Cost 2020 2019 Operating lease cost $ 997 $ 965 Finance lease cost Amortization of leased assets 33 8 Interest on lease liabilities 16 4 Net lease cost $ 1,046 $ 977 Other information related to our operating lease was as follows (in thousands): Quarter Ended March 31, Other Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 997 $ 965 Operating cash flows from finance leases $ 49 $ 12 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies In-Licensing Agreement In February 2020, we entered into a license agreement, or the License Agreement, with Xencor, Inc., or Xencor, for the exclusive, worldwide, royalty-bearing license for the development, manufacture and commercialization of biopharmaceutical products containing or comprising the humanized monoclonal antibody AIMab7195 (formerly XmAb7195) or certain variants of AIMab7195, each of which is referred to as an AIMab7195 Product. Initially, AIMab7195 will be developed as an adjunctive treatment with our existing CODIT pipeline assets, including PALFORZIA, to explore treatment outcomes, including the potential path to remission, in patients with food allergies. AIMab7195 is designed to mediate the suppression of IgE and IgE-producing cells and originally was developed for the treatment of allergic asthma and other IgE-mediated diseases. In connection with the entry into the License Agreement, we paid Xencor an upfront payment of $5.0 million in cash, and we also issued to Xencor 156,238 shares of Common Stock. Additionally, we are obligated to pay Xencor an aggregate of up to $380.0 million in milestone payments, which includes $17.0 million in development milestones, $53.0 million in regulatory milestones and $310.0 million in sales milestones, and to issue an additional number of shares of our Common Stock having an aggregate value of $5.0 million in connection with the achievement of the first development milestone with respect to a product containing an AIMab7195 Product. We will also pay a royalty to Xencor equal to a percentage of net sales of AIMab7195 Products in the high single-digit to mid-teen range. The term of the License Agreement continues on a country-by-country and Product-by-Product basis until the expiration of our obligation to pay royalties with respect such Product and country. We may terminate the License Agreement in its entirety without cause on sixty days’ prior written notice. Xencor may terminate the License Agreement in its entirety if the we or our affiliates or sublicensees challenge the licensed patents. Either party may terminate the License Agreement for the other party’s material breach that is not cured within a specified time period or for the other party’s bankruptcy or insolvency-related events. We will be solely responsible for costs related to the development of AIMab7195. In connection with our entry into the License Agreement, we also agreed to assume Xencor’s rights and obligations under its license of the AIMab7195 cell line from Catalent Pharma Solutions LLC, which manufactures AIMab7195 using their proprietary GPEx® technology. Indemnifications We indemnify each of our officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at our request in such capacity, as permitted under Delaware law and in accordance with its certificate of incorporation and bylaws. The term of the indemnification period lasts as long as an officer or a director may be subject to any proceeding arising out of acts or omissions of such officer or director in such capacity. The maximum amount of potential future indemnification is unlimited; however, we currently hold director and officer liability insurance. This insurance allows the transfer of risk associated with our exposure and may enable us to recover a portion of any future amounts paid. We believe that the fair value of these indemnification obligations is minimal. Accordingly, we have not recognized any liabilities relating to these obligations for any period. Legal We are currently not a party to any material legal proceedings. During the normal course of business, we may be a party to legal claims that may not be covered by insurance. We do not believe that any such claims would have a material impact on our consolidated financial statements. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity As of March 31, 2020 and December 31, 2019 we had authorized 10,000,000 shares of convertible preferred stock, and we had issued and outstanding 525,634 shares and no shares, respectively of convertible preferred stock. In February 2020, we sold Nestlé Health Science an additional 525,634 shares of our Series A Convertible Preferred Stock at a price of $319.675 per share and 1,000,000 shares of our common stock at a price of $31.97 per share for aggregate gross proceeds of $200.0 million. The significant provisions of the Series A convertible preferred stock are as follows: Dividends : Shares of Series A preferred stock will be entitled to receive any dividends payable to holders of common stock, and will rank: • senior to all of the common stock; • senior to any class or series of capital stock of the Company created after the designation of the Series A preferred stock specifically ranking by its terms junior to the Series A preferred stock; • on parity with all shares of Series A preferred stock and any class or series of capital stock of the Company created after the designation of the Series A preferred stock specifically ranking by its terms on parity with the Series A preferred stock; and • junior to any class or series of capital stock of the Company created after the designation of the Series A preferred stock specifically ranking by its terms senior to the Series A preferred stock; in each case, as to distributions of assets upon the Company’s liquidation, dissolution or winding up whether voluntarily or involuntarily and/or the right to receive dividends Liquidation : In the event of the Company’s liquidation, dissolution, or winding up, holders of Series A preferred stock will be entitled to receive, before any proceeds are distributed to the holders of common stock or junior securities and pari passu with any distributions to the holders of the Series A preferred stock, (i) an amount equal to $0.0001 per share of Series A preferred stock, plus any dividends declared but unpaid on such shares, plus (ii) such amount per share as would have been payable to such holder if all shares of Series A preferred stock held by such holder had been converted to common stock immediately prior to such liquidation, dissolution or winding up of the Company; provided, however, that, in the event that the assets to be distributed pursuant to this clause (ii) constitute equity securities or convertible securities of the Company (or any successor thereof) and, following any such distribution, any holder would hold or have a right to acquire greater than 19.99% of the number of shares of common stock or voting power of the Company (or any successor thereof) outstanding immediately after giving effect to all such distributions (such amount of securities being referred to as the “ Surplus Amount ”) , then (x) the Company shall use commercially reasonable efforts to promptly obtain the approval of stockholders of the Company for such distribution of such Surplus Amount and (y) unless such approval of the stockholders of the Company is obtained, such holder shall not be entitled to receive such Surplus Amount. Conversion : Each share of Series A preferred stock is convertible into ten shares of common stock (subject to adjustment as provided in the Certificate of Designation) at any time at the option of the holder, provided that the holder will be prohibited from converting the Series A preferred stock into shares of common stock if, as a result of such conversion, the holder, together with its affiliates, would own more than 19.99% of the total number of shares of common stock then issued and outstanding, subject to certain exceptions . Voting : Shares of Series A preferred stock will generally have no voting rights, except as required by law and except that the consent of holders of a majority of the then outstanding Series A preferred stock will be required to amend the terms of the Series A preferred stock. Redemption: The Series A preferred stock is not redeemable. In connection with the entry into the License Agreement, we issued to Xencor 156,238 shares of common stock, pursuant to a Securities Issuance Agreement dated February 4, 2020. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation Equity Incentive Plan In July 2015, we adopted the 2015 Stock Plan, or the 2015 Plan. Under the 2015 Plan, 4,681,544 shares of our common stock were initially reserved for the issuance of stock options and restricted stock to employees, directors, and consultants under terms and provisions established by the Board of Directors, or the Board, and approved by our stockholders. As of March 31, 2020, and December 31, 2019, there were 4,330,534 and 4,599,005 shares available for future grant, respectively. Under the terms of the 2015 Plan, options may be granted at an exercise price not less than fair market value. For employees holding more than 10 % of the voting rights of all classes of stock, the exercise prices for incentive stock options may not be less than 110 % of fair market value, as determined by the Board. The terms of options granted under the 2015 Plan may not exceed ten years . All options issued to date have had a ten-year life. To date, options granted generally vest in three ways: 1) over four years at a rate of 25 % upon the first anniversary of the issuance date and 1/48 th per month thereafter, 2) over two years at a rate of 1/24 th per month, or 3) over four years at a rate of 1/48 th per month. The 2015 Plan contains certain change of control provisions and the employment offer letters of certain employees provide for varied acceleration of vesting in the event of a change of control and/or termination without cause. It also contains a net exercise provision and allows for cashless exercise upon the class of shares subject to the option becoming publicly traded in an established securities market. In August 2015, we adopted the 2015 ESPP, which commenced on January 1, 2018. Under the 2015 ESPP our employees may purchase common stock through payroll deductions at a price equal to 85% of the lower of the fair market value of the stock at the beginning of the offering period or at the end of each applicable purchase period. The 2015 ESPP generally provides for offering periods of six months in duration with purchase periods ending on either May 15 or November 15. Contributions under the 2015 ESPP are limited to a maximum of 15% of an employee’s eligible compensation. ESPP purchases are settled with common stock from the ESPP’s previously authorized and available pool of shares. As of March 31, 2020, 2,303,797 Our 2013 Stock Plan, or the 2013 Plan, which was originally adopted during January 2013, was terminated upon consummation of our IPO in August 2015. As a terminated plan, no further options can be granted from the 2013 Plan, and no further shares are reserved for issuance under the 2013 Plan. Option activity under the 2015 Plan and 2013 Plan is set forth below: Options Outstanding Number Options Weighted- Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Balance, December 31, 2019 7,629,823 $ 21.52 8.0 $ 91,745 Options granted 2,440,500 $ 25.44 Options exercised and shares vested (133,844 ) $ 15.67 Options cancelled (153,343 ) $ 25.28 Balance, March 31, 2020 9,783,136 $ 22.52 8.0 $ 7,946 Options vested and expected to vest as of March 31, 2020 8,797,886 $ 22.24 7.8 $ 7,928 Options exercisable as of March 31, 2020 3,715,158 $ 18.71 6.3 $ 7,820 The aggregate intrinsic values of options outstanding, exercisable, and vested and expected to vest were calculated as the difference between the exercise price of the options and the market price for shares of our common stock as of March 31, 2020. The 2013 Plan provided for early exercise, therefore, all our outstanding stock options issued under that plan are exercisable. The total intrinsic value of options exercised during the quarter ended March 31, 2020 was $2.0 million. Restricted stock unit, or RSU, activity under the 2015 Plan is set forth below: Shares Weighted Average Grant Date Fair Value Unvested Balance, December 31, 2019 530,795 $ 25.79 Awarded 553,800 $ 24.31 Released (154,324 ) $ 27.60 Forfeited (21,346 ) $ 24.83 Unvested Balance, March 31, 2020 908,925 $ 24.68 RSUs are measured based on the fair market value of the underlying stock on the date of grant and recognized as expense on a straight-line basis over the employee’s requisite service period (generally the vesting period). In connection with the expansion and extension of our long-term exclusive commercial supply agreement with GPC, we issued 300,000 shares of restricted common stock in January 2018. The restricted common stock vests in four tranches over a 3.5 year period and is measured based on the fair market value of our common stock on December 31, 2018. As of March 31, 2020, 150,000 shares had vested, and the remaining shares were restricted. As of March 31, 2020 , total estimated unrecognized expense related to these restricted shares was $ 2.3 million based upon the fair market value of our common stock on December 31, 201 8 , which is expected to be recognized over the remaining vesting period of 1.3 years as general and administrative expense. Stock-based compensation expense recognized during the quarter s ended March 31, 2020 and 201 9 related to these shares was $ 0.4 million and $ 0.4 million, respectively. As of March 31, 2020, we had issued 58,000 RSUs with a grant date fair value of approximately $1.4 million, to certain key employees that include service and performance vesting conditions related to the achievement of certain regulatory approvals for PALFORZIA. During the quarter-ended March 31, 2020, we recognized $1.1 million of stock-based compensation expense for 36,000 of such shares that vested upon the satisfaction of a performance condition. Valuation Assumptions The weighted-average assumptions used to estimate the fair value of stock options using the Black-Scholes option valuation model and the resulting weighted average fair value of stock options granted were as follows : Quarter Ended March 31, 2020 2019 Expected term (in years) 6.0 6.0 Expected volatility 57.2 % 63.5 % Risk free interest rate 1.7 % 2.5 % Dividend yield — % — % Weighted average estimated fair value $ 13.81 $ 13.89 The weighted-average assumptions used to estimate the fair value of ESPP using the Black-Scholes option valuation model were as follows: Quarter Ended March 31, 2020 2019 Expected term (in years) 0.5 0.8 Expected volatility 51.2 % 50.2 % Risk free interest rate 1.6 % 2.0 % Dividend yield — % — % Weighted average estimated fair value $ 7.88 $ 11.06 Stock-Based Compensation Expense Stock-based compensation expense, net of estimated forfeitures, reflected in the condensed consolidated statements of comprehensive loss is as follows (in thousands): Quarter Ended March 31, 2020 2019 Cost of revenue $ 4 $ — Research and development 4,061 2,743 Selling, general and administrative 6,238 5,022 Total stock-based compensation expense $ 10,303 $ 7,765 During the quarter ended March 31, 2020, s tock-based compensation expense of $0.1 million was capitalized into inventory. During the quarters ended March 31, 2020 and 2019, we recorded approximately $0.2 million and $0.4 million, respectively, of stock-based compensation expense related to the acceleration of certain former executives’ stock options. As of March 31, 2020, total unrecognized stock-based compensation expense and expected period over which such compensation will be recognized were as follows ($ in thousands): As of March 31, 2020 Stock-option Unrecognized stock compensation expense $ 68,129 Weighted-average remaining vesting period (years) 3.0 RSU Unrecognized stock compensation expense $ 16,304 Weighted-average remaining vesting period (years) 2.6 ESPP Unrecognized stock compensation expense $ 156 Weighted-average remaining vesting period (years) 0.1 |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 10. Net Loss per Share Basic net loss per share is calculated based on the weighted-average number of common shares outstanding during the periods presented. For periods in which we have generated a net loss, basic and diluted net loss per share are the same due to the requirement to exclude potentially dilutive securities, consisting of common shares underlying outstanding stock options and restricted stock units, which would have an anti-dilutive effect on net loss per share. The following common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because their inclusion would have been antidilutive: Quarter Ended March 31, 2020 2019 Stock options 9,783,136 8,309,613 RSUs 908,925 670,000 Preferred stock 5,256,340 — |
Related Party Transaction
Related Party Transaction | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | 11. Related Party Transaction In June 2017, Mark McDade, a member of our Board of Directors, joined the Board of Directors of MyHealthTeams, a private company that creates social networks for people living with chronic conditions by partnering with pharmaceutical and healthcare companies. We entered into an agreement with MyHealthTeams in 2015 under which they provide services to us. During the quarters ended March 31, 2020 and 2019, there were payments of $0 and $0.1 million, respectively, to MyHealthTeams pursuant to such agreement. At March 31, 2020 and December 31, 2019, t here were no accrued liabilities due under the MyHealthTeams agreement |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Preparation | Basis of Preparation The accompanying condensed consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles, or GAAP, in the United States and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and accordingly the balance sheet as of December 31, 2019, has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements have been prepared on the same basis as our annual financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair presentation of our financial information. The results of operations for the quarter ended March 31, 2020, are not necessarily indicative of the results to be expected for the year ending December 31, 2020, or for any other interim period or for any other future year. We operate in one reportable segment. The accompanying 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, 2019, included in our Annual Report on Form 10-K filed with the SEC. |
Basis of Consolidation | Basis of Consolidation The accompanying condensed consolidated financial statements include the accounts of our wholly-owned subsidiaries. All significant intercompany transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the accompanying condensed consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported revenue, costs and expenses recognized during the reporting periods. We base our estimates and assumptions on historical experience when available and on various factors that we believe to be reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Our actual results could differ from these estimates under different assumptions or conditions. |
Significant Accounting Policies | Significant Accounting Policies There have been no significant changes to the accounting policies during the three months ended March 31, 2020, as compared to the significant accounting policies described in Note 2 of the “Notes to Consolidated Financial Statements” in our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019, except as noted below. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of our foreign subsidiaries is either the U.S. dollar or the Euro. For foreign subsidiaries with the functional currency of the Euro, assets and liabilities are translated to U.S. dollars using the exchange rates at the balance sheet date and expenses are translated using the monthly average exchange rates in effect during the period in which the transactions occur. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income within stockholders’ equity. Monetary assets and liabilities in the non-functional currency of our subsidiaries are remeasured using exchange rates in effect at the end of the period. Costs in the non-functional currency are remeasured using average exchange rates for the period, except for costs related to those balance sheet items that are remeasured using historical exchange rates. The resulting transaction gains and losses are included in the consolidated statements of comprehensive loss as incurred and have not been material for all periods presented. |
Concentration of Risk | Concentration of Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, trade receivables, and investments. Our investment policy limits investments to certain types of debt securities issued by the U.S. government, its agencies and institutions with investment-grade credit ratings and places restrictions on maturities and concentration by type and issuer. We are exposed to credit risk in the event of a default by the financial institutions holding our cash, cash equivalents and investments and issuers of investments to the extent recorded on the consolidated balance sheets. We are dependent on a small number of third-party manufacturers to manufacture our drugs and drug candidates. We could be adversely affected by a significant interruption in the supply of bulk drug substances and the manufacturing activities to produce, package and distribute PALFORZIA. During the quarter ended March 31, 2020, we had four customers, of whom three accounted for approximately 75%, 13% and 12% of total net revenues. We had no such concentration during the three months ended March 31, 2019. In March 2020, the World Health Organization declared the global novel coronavirus, or COVID-19, outbreak a pandemic. To date, our operations have been significantly impacted by the COVID-19 pandemic, including with respect to the commercial launch of PALFORZIA and enrollment in our Phase 2 clinical trial for AR201. However, we cannot at this time predict the specific extent, duration or full impact that the COVID-19 pandemic will have on our financial condition and results of operations. The impact of the COVID-19 pandemic on our financial performance will depend on future developments, including the duration and spread of the COVID-19 pandemic and related governmental advisories and restrictions. These developments and the impact of COVID-19 on the financial markets and the overall economy are also highly uncertain. If the financial markets and/or the overall economy are impacted for an extended period, our business, financial condition, results of operations and prospects |
Trade Receivables, net | Trade Receivables, net Trade receivables are recorded net of estimates for which reserves are established for distributor fees, prompt pay discounts and other distributor costs that are offered within contracts between us and a limited number of specialty distributors and pharmacies in the United States, which we refer to herein as Customers. These reserves are classified as reductions of trade receivables. Refer to our Revenue Recognition policy for additional information. Accounts outstanding longer than the contractual payment terms are considered past due. We write off accounts receivable when they are deemed uncollectible and such write-offs, net of payments received, are recorded as a reduction to the allowance. As of March 31, 2020, and March 31, 2019, we did no t have any allowances for doubtful accounts. |
Inventories | Inventories Inventories are stated at the lower of cost or estimated net realizable value, on a first-in, first-out, or FIFO, basis. We use actual costs to determine our cost basis for inventories. Inventories consist of raw materials, work-in-process and finished goods. Prior to regulatory approval of our product candidates, expenses incurred to manufacture drug products are recorded as research and development expense. We begin capitalizing these expenses as inventory upon regulatory approval. We assess our inventory levels each reporting period and write-down inventory that is expected to be at risk of expiration, that has a cost basis in excess of its expected net realizable value and inventory quantities in excess of expected requirements. In evaluating the sufficiency of our inventory reserves or liabilities for firm purchase commitments, we also take into consideration our firm purchase commitments for future inventory production. When we recognize a loss on such inventory or firm purchase commitments, such amounts are recognized as cost of revenues. |
Revenue Recognition | Revenue Recognition Pursuant to ASC Topic 606, Revenue from Contracts with Customers, To determine revenue recognition for arrangements that we determine are within the scope of ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract(s); and (v) recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. Product Revenue, Net Our product revenue consists of U.S. sales of PALFROZIA, which we began shipping to Customers in March 2020. Prior to March 2020 we had no product revenue. We sell PALFROZIA to a limited number of Customers under a Risk Evaluation and Mitigation Strategy, a drug safety program that the FDA requires for certain medications with safety concerns to help ensure the benefits of the medication outweigh its risks. Revenue from product sales are recognized when the performance obligation under the agreements with our Customers are fulfilled, which is when the product has been delivered to our Customers. Shipping and handling activities are considered to be fulfillment activities rather than a separate performance obligation and are recorded as cost of revenue. Reserves for Variable Consideration Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established and which result from distribution fees, prompt pay discounts, expected product returns, chargebacks, rebates, co-pay assistance and other allowances that are offered relating to our product sales. These reserves as detailed below are based on the amounts earned or to be claimed on the related sales and are classified as reductions of trade receivables or accrued liabilities. Where appropriate, these estimates take into consideration a range of possible outcomes that are probability-weighted in accordance with the expected value method under ASC 606 for relevant factors. These factors include current contractual and statutory requirements, specific known market events and trends, industry data, and/or forecasted customer buying and payment patterns. Overall, these reserves are factored into our net estimate of transaction price and reflect our best estimates of the amount of consideration to which we are entitled based on the terms of the respective underlying contracts. The amount of variable consideration that is included in the transaction price may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from our estimates. If actual results in the future vary from our estimates, we will adjust these estimates, which would affect net product revenue and earnings in the period such variances become known. Distribution Fees : Under our inventory management agreements with our Customers, we pay them a fee primarily for compliance with certain contractually determined covenants such as the maintenance of agreed upon inventory levels. These distribution fees are based on a contractually determined fixed percentage of sales. We record these distribution fees as a reduction of trade receivables. Prompt Pay Discounts: Our Customers receive a contractually agreed discount for prompt payment. We expect our Customers will earn 100% of their prompt pay discounts and we record these discounts as a reduction of trade receivables. Product Returns: We generally offer our Customers a right of return based on the product’s expiration date or other market-based factors for product that has been purchased from us. We estimate the amount of our product sales that may be returned by our Customers and record the estimates as an accrued liability. We currently estimate product returns using available industry data, our own sales information and our visibility into the inventory remaining in the distribution channel. Rebates: We are subject to government mandated rebates under the Medicaid Drug Rebate Program and other government health care programs in the United States. Rebate amounts are based upon contractual agreements or legal requirements with public sector benefit providers. We use the expected-value method for estimating these rebates based on statutory discount rates and expected utilization. The expected utilization of such rebates is estimated based on third party market research data and data received from our Customers. Estimates for these rebates are adjusted quarterly to reflect the most recent information. We record the estimated rebates as an accrued liability. Co-Pay Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-pay assistance. We record the estimated amounts as an accrued liability. Co-pay assistance is based on actual program participation on a patient-by-patient basis and estimates of program redemption using our patient data provided by the third-party administrator of our co-pay program. Estimates for these rebates are adjusted quarterly to reflect the most recent information. Other Customer Credits: We pay fees to the specialty distributors and pharmacies for account management, data management and other administrative services. We have determined such services received to date are not distinct from our sale of products to the specialty distributors and pharmacies and, therefore, a fair market value for these services may not be reasonably determined for accounting purposes. We record these fees as an accrued liability. |
Cost of Revenue | Cost of Revenue Cost of revenue consists primarily of direct and indirect costs related to the manufacturing of PALFROZIA units sold, including raw materials, third-party contract manufacturing and packaging costs, freight costs, storage costs, allocation of overhead costs of employees involved with production of PALFORZIA and costs paid to our contract manufacturers, if any, for anticipated shortfall in product demand relative to committed volumes. Such product costs incurred prior to FDA approval of PALFORZIA in January 2020 have been recorded as research and development expense in our condensed consolidated statement of operations. |
Income Taxes | Income Taxes On March 18, 2020, the Families First Coronavirus Response Act, or the FFCR Act, and on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, were each enacted in response to the COVID-19 pandemic. The FFCR Act and the CARES Act contain numerous income tax provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The FFCR Act and CARES Act did not have a material impact on our condensed consolidated financial statements as of March 31, 2020; however, we continue to examine the impacts the FFCR Act and CARES Act may have on our business, results of operations, financial condition and liquidity. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements We adopted Accounting Standards Update, or ASU, No. 2018-15, Intangibles-Goodwill and Other – Internal Use Software: Subtopic 340-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, We adopted ASU No. 2018-13, Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement , as of January 1, 2020. The ASU adds and modifies certain disclosure requirements for fair value measurements. Under the new guidance, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, or valuation processes for Level 3 fair value measurements. However, public companies will be required to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and related changes in unrealized gains and losses included in other comprehensive income. The adoption of ASU No. 2018-13 did not have a material impact on our consolidated financial statements. We adopted ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments We adopted ASU No. 2019-12, Simplifying the Accounting for Income Taxes |
Fair Value Measurements | We define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an Our valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. We classify these inputs into the following hierarchy: • Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; • Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and • Level 3—Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. |
Available-for-Sale Securities_2
Available-for-Sale Securities and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments Measured at Fair Value on a Recurring Basis | The following tables set forth our financial instrumen ts that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): March 31, 2020 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash and money market funds $ 298,418 $ — $ — $ 298,418 Total cash and cash equivalents $ 298,418 $ — $ — $ 298,418 Investments: Agency securities $ — $ 7,507 $ — $ 7,507 Corporate securities — 30,970 — 30,970 Commercial paper — 9,942 — 9,942 U.S. government securities — 24,770 — 24,770 Total investments $ — $ 73,189 $ — $ 73,189 December 31, 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash and money market funds $ 79,880 $ — $ — $ 79,880 Total cash and cash equivalents $ 79,880 $ — $ — $ 79,880 Investments: Agency securities — 8,862 — 8,862 Corporate securities — 30,338 — 30,338 Commercial paper — 7,949 — 7,949 U.S. government securities — 31,145 — 31,145 Total investments $ — $ 78,294 $ — $ 78,294 |
Summary of Aggregate Market Value, Cost Basis and Gross Unrealized Gains and Losses of Available-for-Sale Investments by Security Type | The aggregate market value, cost basis, and gross unrealized gains and losses of available-for-sale investments by security type, classified in cash equivalents and investments, as of March 31, 2020 and December 31, 2019, are as follows March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Fair Value Agency securities $ 7,499 $ 8 $ — $ 7,507 Corporate securities 9,942 — — 9,942 Commercial paper 31,009 23 (62 ) 30,970 U.S. government securities 24,586 184 — 24,770 Total available-for-sale investments $ 73,036 $ 215 $ (62 ) $ 73,189 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Fair Value Agency securities $ 8,856 $ 6 — $ 8,862 Corporate securities 30,286 55 (3 ) 30,338 Commercial paper 7,949 — — 7,949 U.S. government securities 31,123 22 — 31,145 Total available-for-sale investments $ 78,214 $ 83 $ (3 ) $ 78,294 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of Inventories | Inventories Inventories consists of the following (in thousands): March 31, 2020 December 31, 2019 Raw materials $ 30 $ — Work in process 3,321 — Finished goods 725 — Total inventories $ 4,076 $ — |
Summary of Property And Equipment, Net | Property and equipment, net consists of the following (in thousands): March 31, 2020 December 31, 2019 Furniture and equipment $ 2,679 $ 2,660 Computer equipment 2,849 2,820 Manufacturing equipment 15,341 9,012 Leased equipment 102 100 Leasehold improvements 14,525 14,525 Construction in progress 470 6,649 Property and equipment, gross 35,966 35,766 Less: accumulated depreciation (8,460 ) (7,162 ) Property and equipment, net $ 27,506 $ 28,604 |
Summary of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): March 31, 2020 December 31, 2019 Compensation and benefits $ 8,151 $ 13,286 Research and development 10,010 11,336 Professional and consulting 10,125 6,627 Other 842 37 Total accrued liabilities $ 29,128 $ 31,286 |
Long-Term Debt, Net of Discou_2
Long-Term Debt, Net of Discounts (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term and Long-term Debt Obligations | The following table represents our short-term and long-term debt obligations (in thousands): March 31, 2020 December 31, 2019 Principal amount of long-term debt $ 130,868 $ 44,004 Less: Current portion of long-term debt — — Long-term debt, net of current portion 130,868 44,004 Unamortized discount relating to deferred financing costs, net (3,064 ) (3,234 ) Accrued exit fee payment 446 258 Long-term debt, net of discount and current portion $ 128,250 $ 41,028 |
Schedule of Future Principal Payments of Long-term Debt | Future principal payments of our long-term debt as of March 31, 2020 are as follows (in thousands): Fiscal year ending December 31: 2020 $ — 2021 — 2022 — 2023 65,434 2024 65,434 Thereafter — Total $ 130,868 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Maturities of Operating Lease Liabilities | The maturities of our operating lease liabilities were as follows (in thousands): Remaining Lease Payments at March 31, 2020 Operating Financing Total 2020 $ 2,839 $ 26 $ 2,865 2021 3,875 35 3,910 2022 3,929 9 3,938 2023 3,762 — 3,762 2024 1,857 — 1,857 Thereafter 227 — 227 Total lease payments $ 16,489 $ 70 $ 16,559 Less: Effects of discounting (4,350 ) (9 ) (4,359 ) Present value of lease liabilities $ 12,139 $ 61 $ 12,200 Less: current portion (2,315 ) (23 ) (2,338 ) Long-term lease liabilities $ 9,824 $ 38 $ 9,862 Weighted-average remaining lease term 4.3 years 2.0 years Weighted-average incremental borrowing rate 11 % 23 % |
Component of Lease Costs Included in Condensed Consolidated Statements of Income | The component of our lease costs included in our condensed consolidated statements of income were as follows (in thousands): Quarter Ended March 31, Lease Cost 2020 2019 Operating lease cost $ 997 $ 965 Finance lease cost Amortization of leased assets 33 8 Interest on lease liabilities 16 4 Net lease cost $ 1,046 $ 977 |
Schedule of Other Information Related to Operating Lease | Other information related to our operating lease was as follows (in thousands): Quarter Ended March 31, Other Information 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 997 $ 965 Operating cash flows from finance leases $ 49 $ 12 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Stock Option Activity | Option activity under the 2015 Plan and 2013 Plan is set forth below: Options Outstanding Number Options Weighted- Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Balance, December 31, 2019 7,629,823 $ 21.52 8.0 $ 91,745 Options granted 2,440,500 $ 25.44 Options exercised and shares vested (133,844 ) $ 15.67 Options cancelled (153,343 ) $ 25.28 Balance, March 31, 2020 9,783,136 $ 22.52 8.0 $ 7,946 Options vested and expected to vest as of March 31, 2020 8,797,886 $ 22.24 7.8 $ 7,928 Options exercisable as of March 31, 2020 3,715,158 $ 18.71 6.3 $ 7,820 |
Restricted Stock Unit Activity | Restricted stock unit, or RSU, activity under the 2015 Plan is set forth below: Shares Weighted Average Grant Date Fair Value Unvested Balance, December 31, 2019 530,795 $ 25.79 Awarded 553,800 $ 24.31 Released (154,324 ) $ 27.60 Forfeited (21,346 ) $ 24.83 Unvested Balance, March 31, 2020 908,925 $ 24.68 |
Schedule of Weighted Average Assumptions to Fair Value of Stock Options | Valuation Assumptions The weighted-average assumptions used to estimate the fair value of stock options using the Black-Scholes option valuation model and the resulting weighted average fair value of stock options granted were as follows : Quarter Ended March 31, 2020 2019 Expected term (in years) 6.0 6.0 Expected volatility 57.2 % 63.5 % Risk free interest rate 1.7 % 2.5 % Dividend yield — % — % Weighted average estimated fair value $ 13.81 $ 13.89 |
Summary of Stock-based Compensation Expense Net of Estimated Forfeitures | Stock-Based Compensation Expense Stock-based compensation expense, net of estimated forfeitures, reflected in the condensed consolidated statements of comprehensive loss is as follows (in thousands): Quarter Ended March 31, 2020 2019 Cost of revenue $ 4 $ — Research and development 4,061 2,743 Selling, general and administrative 6,238 5,022 Total stock-based compensation expense $ 10,303 $ 7,765 |
Summary of Unrecognized Stock-Based Compensation Expense and Expected Period | As of March 31, 2020, total unrecognized stock-based compensation expense and expected period over which such compensation will be recognized were as follows ($ in thousands): As of March 31, 2020 Stock-option Unrecognized stock compensation expense $ 68,129 Weighted-average remaining vesting period (years) 3.0 RSU Unrecognized stock compensation expense $ 16,304 Weighted-average remaining vesting period (years) 2.6 ESPP Unrecognized stock compensation expense $ 156 Weighted-average remaining vesting period (years) 0.1 |
Employee Stock Purchase Plan | |
Schedule of Weighted Average Assumptions to Fair Value of Stock Options | The weighted-average assumptions used to estimate the fair value of ESPP using the Black-Scholes option valuation model were as follows: Quarter Ended March 31, 2020 2019 Expected term (in years) 0.5 0.8 Expected volatility 51.2 % 50.2 % Risk free interest rate 1.6 % 2.0 % Dividend yield — % — % Weighted average estimated fair value $ 7.88 $ 11.06 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss per Share | The following common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because their inclusion would have been antidilutive: Quarter Ended March 31, 2020 2019 Stock options 9,783,136 8,309,613 RSUs 908,925 670,000 Preferred stock 5,256,340 — |
Formation and Business of the_2
Formation and Business of the Company - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Feb. 29, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Organization And Description Of Business [Line Items] | ||||
Net loss | $ 86,432 | $ 54,266 | ||
Net cash used in operating activities | 71,812 | $ 45,829 | ||
Accumulated deficit | 811,112 | $ 724,680 | ||
Cash, cash equivalents and investments | $ 371,600 | |||
NHScUS | ||||
Organization And Description Of Business [Line Items] | ||||
Proceeds from issuance of common stock and convertible preferred stock | $ 200,000 | |||
KKR Loans | ||||
Organization And Description Of Business [Line Items] | ||||
Draw of the second loan tranche | $ 85,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)SegmentCustomer | Mar. 31, 2019USD ($) | |
Significant Accounting Policies [Line Items] | ||
Number of reportable segments | Segment | 1 | |
Number of customers | Customer | 4 | |
Allowance for doubtful accounts | $ | $ 0 | $ 0 |
Prompt pay discount expected to be earned by customers | 100.00% | |
Customer Concentration Risk | Net Revenues | ||
Significant Accounting Policies [Line Items] | ||
Percentage of concentration of risk | 0.00% | |
Customer Concentration Risk | Net Revenues | Customer One | ||
Significant Accounting Policies [Line Items] | ||
Percentage of concentration of risk | 75.00% | |
Customer Concentration Risk | Net Revenues | Customer Two | ||
Significant Accounting Policies [Line Items] | ||
Percentage of concentration of risk | 13.00% | |
Customer Concentration Risk | Net Revenues | Customer Three | ||
Significant Accounting Policies [Line Items] | ||
Percentage of concentration of risk | 12.00% |
Available-for-Sale Securities_3
Available-for-Sale Securities and Fair Value Measurements - Summary of Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Total investments | $ 73,189 | $ 78,294 |
Agency Securities | ||
Investments: | ||
Total investments | 7,507 | 8,862 |
Corporate Debt Securities | ||
Investments: | ||
Total investments | 9,942 | 30,338 |
Commercial Paper | ||
Investments: | ||
Total investments | 30,970 | 7,949 |
U.S. Government Securities | ||
Investments: | ||
Total investments | 24,770 | 31,145 |
Fair Value Measurements Recurring | ||
Cash and cash equivalents | ||
Total cash and cash equivalents | 298,418 | 79,880 |
Investments: | ||
Total investments | 73,189 | 78,294 |
Fair Value Measurements Recurring | Cash and Money Market Funds | ||
Cash and cash equivalents | ||
Total cash and cash equivalents | 298,418 | 79,880 |
Fair Value Measurements Recurring | Agency Securities | ||
Investments: | ||
Total investments | 7,507 | 8,862 |
Fair Value Measurements Recurring | Corporate Debt Securities | ||
Investments: | ||
Total investments | 30,970 | 30,338 |
Fair Value Measurements Recurring | Commercial Paper | ||
Investments: | ||
Total investments | 9,942 | 7,949 |
Fair Value Measurements Recurring | U.S. Government Securities | ||
Investments: | ||
Total investments | 24,770 | 31,145 |
Level 1 | Fair Value Measurements Recurring | ||
Cash and cash equivalents | ||
Total cash and cash equivalents | 298,418 | 79,880 |
Level 1 | Fair Value Measurements Recurring | Cash and Money Market Funds | ||
Cash and cash equivalents | ||
Total cash and cash equivalents | 298,418 | 79,880 |
Level 2 | Fair Value Measurements Recurring | ||
Investments: | ||
Total investments | 73,189 | 78,294 |
Level 2 | Fair Value Measurements Recurring | Agency Securities | ||
Investments: | ||
Total investments | 7,507 | 8,862 |
Level 2 | Fair Value Measurements Recurring | Corporate Debt Securities | ||
Investments: | ||
Total investments | 30,970 | 30,338 |
Level 2 | Fair Value Measurements Recurring | Commercial Paper | ||
Investments: | ||
Total investments | 9,942 | 7,949 |
Level 2 | Fair Value Measurements Recurring | U.S. Government Securities | ||
Investments: | ||
Total investments | $ 24,770 | $ 31,145 |
Available-for-Sale Securities_4
Available-for-Sale Securities and Fair Value Measurements - Summary of Aggregate Market Value, Cost Basis, and Gross Unrealized Gains and Losses of Available for Sale Investments by Security Type (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Amortized Cost | $ 73,036 | $ 78,214 |
Gross Unrealized Gains | 215 | 83 |
Gross Unrealized Losses | (62) | (3) |
Total investments | 73,189 | 78,294 |
Agency Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Amortized Cost | 7,499 | 8,856 |
Gross Unrealized Gains | 8 | 6 |
Total investments | 7,507 | 8,862 |
Corporate Debt Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Amortized Cost | 9,942 | 30,286 |
Gross Unrealized Gains | 55 | |
Gross Unrealized Losses | (3) | |
Total investments | 9,942 | 30,338 |
Commercial Paper | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Amortized Cost | 31,009 | 7,949 |
Gross Unrealized Gains | 23 | |
Gross Unrealized Losses | (62) | |
Total investments | 30,970 | 7,949 |
U.S. Government Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Amortized Cost | 24,586 | 31,123 |
Gross Unrealized Gains | 184 | 22 |
Total investments | $ 24,770 | $ 31,145 |
Available-for-Sale Securities_5
Available-for-Sale Securities and Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Available-for-sale securities, maturities period | 2 years | |
Other than temporary impairment losses | $ 0 | $ 0 |
Allowance for credit losses | $ 0 | $ 0 |
Marketable securities unrealized losses position maximum period | 12 months |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Inventories (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Balance Sheet Related Disclosures [Abstract] | |
Raw materials | $ 30 |
Work in process | 3,321 |
Finished goods | 725 |
Total inventories | $ 4,076 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 35,966 | $ 35,766 |
Less: accumulated depreciation | (8,460) | (7,162) |
Property and equipment, net | 27,506 | 28,604 |
Furniture and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,679 | 2,660 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,849 | 2,820 |
Manufacturing Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 15,341 | 9,012 |
Leased Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 102 | 100 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 14,525 | 14,525 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 470 | $ 6,649 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities Current [Abstract] | ||
Compensation and benefits | $ 8,151 | $ 13,286 |
Research and development | 10,010 | 11,336 |
Professional and consulting | 10,125 | 6,627 |
Other | 842 | 37 |
Total accrued liabilities | $ 29,128 | $ 31,286 |
Long-Term Debt, Net of Discou_3
Long-Term Debt, Net of Discounts - Additional Information (Details) | Jul. 31, 2020USD ($) | Jan. 31, 2019USD ($)Tranche | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Feb. 29, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||
Payment of fees including debt issuance costs | $ 3,856,000 | |||||||
Long term debt, outstanding | $ 130,868,000 | $ 44,004,000 | ||||||
KKR Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan agreement, maximum borrowing capacity | $ 170,000,000 | |||||||
Debt instrument number of tranches | Tranche | 3 | |||||||
Loan agreement, proceeds receivable upon closing of transaction | $ 40,000,000 | |||||||
Loan agreement, proceeds receivable upon FDA approval | $ 85,000,000 | |||||||
Loan agreement, remaining borrowing capacity upon certain conditions | $ 45,000,000 | |||||||
Line of credit facility maturity date | Jan. 3, 2025 | |||||||
Regulatory approval last date | Dec. 31, 2020 | |||||||
Line of credit facility without regulatory approval expiration date | Jan. 15, 2021 | |||||||
Payment of fees including debt issuance costs | 3,900,000 | |||||||
Long term debt, outstanding | $ 130,900,000 | |||||||
Debt instrument, interest rate | 8.90% | |||||||
KKR Loans | Scenario, Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Other loans trigger amount to reduce 91 days maturity of credit facility | $ 25,000,000 | $ 15,000,000 | ||||||
KKR Loans | Alternate Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan, spread on variable rate | 6.50% | |||||||
KKR Loans | 30-day LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan, spread on variable rate | 7.50% | |||||||
KKR Loans | Minimum | Scenario, Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Achievement of aggregate net sales | $ 30,000,000 |
Long-Term Debt, Net of Discou_4
Long-Term Debt, Net of Discounts - Schedule of Short-term and Long-term Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Principal amount of long-term debt | $ 130,868 | $ 44,004 |
Long-term debt, net of current portion | 130,868 | 44,004 |
Unamortized discount relating to deferred financing costs, net | (3,064) | (3,234) |
Accrued exit fee payment | 446 | 258 |
Long-term debt, net of discount and current portion | $ 128,250 | $ 41,028 |
Long-Term Debt, Net of Discou_5
Long-Term Debt, Net of Discounts - Schedule of Future Principal Payments of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2023 | $ 65,434 | |
2024 | 65,434 | |
Total | $ 130,868 | $ 44,004 |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Lessee Lease Description [Line Items] | |
Operating lease, description | We lease facilities for office and manufacturing space under various operating leases and a security system under a financing lease. |
Finance Lease, Description | We lease facilities for office and manufacturing space under various operating leases and a security system under a financing lease. |
Operating lease, existence of option to extend | true |
Operating lease, option to extend | Our leases have remaining lease terms of approximately 1 year to 6 years, which represent the non-cancellable periods of the leases and include extension options that we determined are reasonably certain to be exercised. We exclude extension options that are not reasonably certain to be exercised from our lease terms. |
Finance lease, existence of option to extend | true |
Finance lease, option to extend | Our leases have remaining lease terms of approximately 1 year to 6 years, which represent the non-cancellable periods of the leases and include extension options that we determined are reasonably certain to be exercised. We exclude extension options that are not reasonably certain to be exercised from our lease terms. |
Operating lease, variable lease payment, terms and conditions | We use our incremental borrowing rate to calculate the present value of our lease payments, as the implicit rates in our leases are not readily determinable. |
Finance lease, variable lease payment, terms and conditions | We use our incremental borrowing rate to calculate the present value of our lease payments, as the implicit rates in our leases are not readily determinable. |
Minimum | |
Lessee Lease Description [Line Items] | |
Remaining lease terms | 1 year |
Maximum | |
Lessee Lease Description [Line Items] | |
Remaining lease terms | 6 years |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease, 2020 | $ 2,839 | |
Operating lease, 2021 | 3,875 | |
Operating lease, 2022 | 3,929 | |
Operating lease, 2023 | 3,762 | |
Operating lease, 2024 | 1,857 | |
Operating lease, Thereafter | 227 | |
Operating Lease, Total lease payments | 16,489 | |
Less: Operating lease, Effects of discounting | (4,350) | |
Operating lease, Present value of lease liabilities | 12,139 | |
Less: Operating lease, current portion | (2,315) | $ (2,257) |
Operating lease, Long-term lease liabilities | $ 9,824 | $ 10,524 |
Operating Lease, Weighted-average remaining lease term | 4 years 3 months 18 days | |
Operating Lease, Weighted-average incremental borrowing rate | 11.00% | |
Financing lease, 2020 | $ 26 | |
Financing lease, 2021 | 35 | |
Financing lease, 2022 | 9 | |
Financing lease, Total lease payments | 70 | |
Less: Financing lease, Effects of discounting | (9) | |
Financing lease, Present value of lease liabilities | 61 | |
Less: Financing lease, current portion | (23) | |
Financing lease, Long-term lease liabilities | $ 38 | |
Financing lease, Weighted-average remaining lease term | 2 years | |
Financing lease, Weighted-average incremental borrowing rate | 23.00% | |
Remaining Lease Payments, 2020 | $ 2,865 | |
Remaining Lease Payments, 2021 | 3,910 | |
Remaining Lease Payments, 2022 | 3,938 | |
Remaining Lease Payments, 2023 | 3,762 | |
Remaining Lease Payments, 2024 | 1,857 | |
Remaining Lease Payments, Thereafter | 227 | |
Total lease payments | 16,559 | |
Less: Effects of discounting | (4,359) | |
Present value of lease liabilities | 12,200 | |
Less: current portion | (2,338) | |
Long-term lease liabilities | $ 9,862 |
Leases - Component of Lease Cos
Leases - Component of Lease Costs Included in Condensed Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lease Cost [Abstract] | ||
Operating lease cost | $ 997 | $ 965 |
Finance lease cost | ||
Amortization of leased assets | 33 | 8 |
Interest on lease liabilities | 16 | 4 |
Net lease cost | $ 1,046 | $ 977 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Operating Lease (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 997 | $ 965 |
Operating cash flows from finance leases | $ 49 | $ 12 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - Xencor, Inc. - In-Licensing Agreement - USD ($) | Feb. 04, 2020 | Feb. 29, 2020 |
Commitments And Contingencies [Line Items] | ||
Upfront payment paid | $ 5,000,000 | |
Aggregate amount payable under development milestone payments | 17,000,000 | |
Aggregate amount payable under regulatory milestone payments | 53,000,000 | |
Aggregate amount payable under sales milestone payments | 310,000,000 | |
Aggregate value of common stock | 5,000,000 | |
Maximum | ||
Commitments And Contingencies [Line Items] | ||
Aggregate amount payable under milestone payments | $ 380,000,000 | |
Common Stock | ||
Commitments And Contingencies [Line Items] | ||
Number of common stock issued | 156,238 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 04, 2020 | Feb. 29, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Stockholders Equity [Line Items] | ||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued | 526,000 | 0 | ||
Preferred stock, shares outstanding | 526,000 | 0 | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | ||
NHScUS | ||||
Stockholders Equity [Line Items] | ||||
Proceeds from issuance of common stock and convertible preferred stock | $ 200 | |||
NHScUS | Common Stock | ||||
Stockholders Equity [Line Items] | ||||
Issuance of shares | 1,000,000 | |||
Share issued price | $ 31.97 | |||
Xencor, Inc. | Common Stock | In-Licensing Agreement | ||||
Stockholders Equity [Line Items] | ||||
Issuance of shares | 156,238 | |||
Convertible Preferred Stock | ||||
Stockholders Equity [Line Items] | ||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, shares issued | 525,634 | 0 | ||
Preferred stock, shares outstanding | 525,634 | 0 | ||
Convertible Preferred Stock | NHScUS | ||||
Stockholders Equity [Line Items] | ||||
Issuance of shares | 525,634 | |||
Share issued price | $ 319.675 | |||
Series A Preferred Stock | ||||
Stockholders Equity [Line Items] | ||||
Preferred stock, par value | $ 0.0001 | |||
Percentage of number of shares of common stock to be acquired by holders | 19.99% | |||
Convertible preferred stock, shares issued upon conversion | 10 | |||
Preferred stock, voting rights | Shares of Series A preferred stock will generally have no voting rights, except as required by law and except that the consent of holders of a majority of the then outstanding Series A preferred stock will be required to amend the terms of the Series A preferred stock. |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jan. 31, 2018 | Aug. 31, 2015 | Jul. 31, 2015 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Intrinsic Value of option exercised | $ 2,000 | ||||||
Inventory | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Amount of stock-based compensation capitalized | $ 100 | ||||||
Restricted Stock | Common Stock | Archer Daniels Midland Company | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Long-term purchase commitment, shares issued | 300,000 | ||||||
Shares issued, vesting period | 3 years 6 months | ||||||
Stock-based compensation, shares vested | 150,000 | ||||||
Unrecognized employee stock-based compensation | $ 2,300 | ||||||
Expected recognized over weighted-average remaining vesting period | 1 year 3 months 18 days | ||||||
Stock-based compensation expense | $ 400 | $ 400 | |||||
Restricted Stock Units (RSUs) | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Recognized stock-based compensation expense | $ 16,304 | ||||||
Certain Key Employees | Restricted Stock Units (RSUs) | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of restricted stock issued | 58,000 | ||||||
Restricted stock units, aggregate grant date fair value | $ 1,400 | ||||||
Recognized stock-based compensation expense | $ 1,100 | ||||||
Shares vested upon performance condition met | 36,000 | ||||||
Former Executive | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Accelerated stock compensation expense | $ 200 | $ 400 | |||||
2015 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock, shares reserved for issuance | 4,681,544 | ||||||
Number of shares available for future grant | 4,330,534 | 4,599,005 | |||||
Minimum percentage of voting rights of all classes of stock | 10.00% | ||||||
Percentage of statutory stock options | 110.00% | ||||||
Options expiration period | 10 years | ||||||
2015 Plan | Restricted Stock Units (RSUs) | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares vested upon performance condition met | 154,324 | ||||||
2015 Plan | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options expiration period | 10 years | ||||||
2015 Plan | First Anniversary | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options vesting period | 4 years | ||||||
Option vesting rights, percentage | 25.00% | ||||||
2015 Plan | Thereafter | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Option vesting rights, percentage | 2.08% | ||||||
2015 Plan | Over Two Years | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options vesting period | 2 years | ||||||
Option vesting rights, percentage | 4.17% | ||||||
2015 Plan | Over Four Years | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options vesting period | 4 years | ||||||
Option vesting rights, percentage | 2.08% | ||||||
2015 ESPP | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Percentage of statutory stock options | 85.00% | ||||||
Description of ESPP | Under the 2015 ESPP our employees may purchase common stock through payroll deductions at a price equal to 85% of the lower of the fair market value of the stock at the beginning of the offering period or at the end of each applicable purchase period. The 2015 ESPP generally provides for offering periods of six months in duration with purchase periods ending on either May 15 or November 15. Contributions under the 2015 ESPP are limited to a maximum of 15% of an employee’s eligible compensation. | ||||||
Percentage of maximum contributions employee's eligible compensation | 15.00% | ||||||
ESPP offering period | 6 months | ||||||
Description of offering period closing dates | The 2015 ESPP generally provides for offering periods of six months in duration with purchase periods ending on either May 15 or November 15 | ||||||
Shares issued under the plan | 101,989 | ||||||
Weighted average price per share | $ 17.67 | ||||||
2013 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock, shares reserved for issuance | 0 | ||||||
Number of shares available for future grant | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Number of Options | ||
Number of Options, Beginning Balance | 7,629,823 | |
Number of Options, Options granted | 2,440,500 | |
Number of Options, Options exercised and shares vested | (133,844) | |
Number of Options, Options cancelled | (153,343) | |
Number of Options, Ending Balance | 9,783,136 | 7,629,823 |
Number of Options, Options vested and expected to vest as of March 31, 2020 | 8,797,886 | |
Number of Options, Options exercisable as of March 31, 2020 | 3,715,158 | |
Weighted-Average Exercise Price | ||
Weighted-Average Exercise Price, Beginning Balance | $ 21.52 | |
Weighted-Average Exercise Price, Options granted | 25.44 | |
Weighted-Average Exercise Price, Options exercised and shares vested | 15.67 | |
Weighted-Average Exercise Price, Options cancelled | 25.28 | |
Weighted-Average Exercise Price, Ending Balance | 22.52 | $ 21.52 |
Weighted-Average Exercise Price, Options vested and expected to vest as of March 31, 2020 | 22.24 | |
Weighted-Average Exercise Price, Options exercisable as of March 31, 2020 | $ 18.71 | |
Weighted Average Remaining Contractual Life (in years) | ||
Weighted Average Remaining Contractual Life (in years), Balance | 8 years | 8 years |
Weighted Average Remaining Contractual Life, Options vested and expected to vest as of March 31, 2020 | 7 years 9 months 18 days | |
Weighted Average Remaining Contractual Life, Options exercisable as of March 31, 2020 | 6 years 3 months 18 days | |
Aggregate Intrinsic Value, Balance | $ 7,946 | $ 91,745 |
Aggregate Intrinsic Value, Options vested and expected to vest as of March 31, 2020 | 7,928 | |
Aggregate Intrinsic Value, Options exercisable as of March 31, 2020 | $ 7,820 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Unit Activity (Details) - 2015 Plan - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested Shares, Beginning Balance | shares | 530,795 |
Shares, Awarded | shares | 553,800 |
Shares, Released | shares | (154,324) |
Shares, Forfeited | shares | (21,346) |
Unvested Shares, Ending Balance | shares | 908,925 |
Unvested Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 25.79 |
Weighted Average Grant Date Fair Value, Awarded | $ / shares | 24.31 |
Weighted Average Grant Date Fair Value, Released | $ / shares | 27.60 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 24.83 |
Unvested Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 24.68 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Weighted Average Assumptions to Fair Value of Stock Options (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years | 6 years |
Expected volatility | 57.20% | 63.50% |
Risk free interest rate | 1.70% | 2.50% |
Weighted average estimated fair value | $ 13.81 | $ 13.89 |
Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 months | 9 months 18 days |
Expected volatility | 51.20% | 50.20% |
Risk free interest rate | 1.60% | 2.00% |
Weighted average estimated fair value | $ 7.88 | $ 11.06 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock-based Compensation Expense Net of Estimated Forfeitures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 10,303 | $ 7,765 |
Cost of Revenue | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 4 | |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 4,061 | 2,743 |
Selling, General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 6,238 | $ 5,022 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Unrecognized Stock-Based Compensation Expense and Expected Period (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Stock-Option | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized stock compensation expense | $ 68,129 |
Weighted-average remaining vesting period (years) | 3 years |
Restricted Stock Units (RSUs) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted-average remaining vesting period (years) | 2 years 7 months 6 days |
Unrecognized stock compensation expense | $ 16,304 |
ESPP | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted-average remaining vesting period (years) | 1 month 6 days |
Unrecognized stock compensation expense | $ 156 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 5,256,340 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 9,783,136 | 8,309,613 |
RSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 908,925 | 670,000 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - MyHealth Teams - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Payments to service agreement | $ 0 | $ 100,000 | |
Accrued liabilities due | $ 0 | $ 0 |