Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ALEC | |
Entity File Number | 001-38792 | |
Entity Tax Identification Number | 82-2933343 | |
Entity Address, Address Line One | 131 Oyster Point Blvd | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | South San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 415 | |
Local Phone Number | 231-5660 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Registrant Name | Alector, Inc. | |
Entity Central Index Key | 0001653087 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 81,276,097 | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 516,532 | $ 49,969 |
Marketable securities | 261,318 | 363,339 |
Receivable from Collaboration partner | 1,584 | |
Prepaid expenses and other current assets | 8,585 | 8,203 |
Total current assets | 788,019 | 421,511 |
Property and equipment, net | 27,898 | 30,181 |
Operating lease right-of-use assets | 31,121 | 32,470 |
Restricted cash | 1,472 | 1,472 |
Other assets | 5,716 | 2,617 |
Total assets | 854,226 | 488,251 |
Current liabilities: | ||
Accounts payable | 2,341 | 3,004 |
Accrued clinical supply costs | 7,418 | 11,148 |
Accrued liabilities | 20,586 | 22,538 |
Deferred revenue, current portion | 94,683 | 23,886 |
Operating lease liabilities, current portion | 7,787 | 7,512 |
Total current liabilities | 132,815 | 68,088 |
Deferred revenue, long-term portion | 344,529 | 108,417 |
Operating lease liabilities, long-term portion | 40,834 | 43,744 |
Other long-term liabilities | 158 | 472 |
Total liabilities | 518,336 | 220,721 |
Stockholders' equity: | ||
Common stock, $0.0001 par value; 200,000,000 shares authorized; 81,248,646 and 79,316,261 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 8 | 8 |
Additional paid-in capital | 726,692 | 676,956 |
Accumulated other comprehensive income (loss) | (41) | 614 |
Accumulated deficit | (390,769) | (410,048) |
Total stockholders' equity | 335,890 | 267,530 |
Total liabilities and stockholders’ equity | $ 854,226 | $ 488,251 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 81,248,646 | 81,248,646 |
Common stock, shares outstanding | 79,316,261 | 79,316,261 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Total revenue | $ 182,413 | $ 5,904 | $ 193,091 | $ 16,245 | |||
Type of Revenue [Extensible List] | Collaboration Revenue [Member] | Collaboration Revenue [Member] | Collaboration Revenue [Member] | Collaboration Revenue [Member] | Collaboration Revenue [Member] | Collaboration Revenue [Member] | Collaboration Revenue [Member] |
Operating expenses: | |||||||
Research and development | $ 43,066 | $ 43,819 | $ 136,617 | $ 112,486 | |||
General and administrative | 13,018 | 15,834 | 38,105 | 46,175 | |||
Total operating expenses | 56,084 | 59,653 | 174,722 | 158,661 | |||
Income(loss) from operations | 126,329 | (53,749) | 18,369 | (142,416) | |||
Other income, net | 268 | 1,045 | 910 | 4,367 | |||
Net income (loss) | 126,597 | (52,704) | $ (45,326) | 19,279 | (138,049) | ||
Unrealized gain (loss) on marketable securities | (244) | (752) | (655) | 952 | |||
Comprehensive income (loss) | $ 126,353 | $ (53,456) | $ 18,624 | $ (137,097) | |||
Net income (loss) per share: | |||||||
Basic net income (loss) per share | $ 1.56 | $ (0.67) | $ 0.24 | $ (1.78) | |||
Diluted net income (loss) per share | $ 1.49 | $ (0.67) | $ 0.23 | $ (1.78) | |||
Weighted-average shares used in calculating: | |||||||
Basic net income (loss) per share | 80,964,701 | 78,771,930 | 80,048,758 | 77,340,896 | |||
Diluted net income (loss) per share | 85,232,690 | 78,771,930 | 82,871,254 | 77,340,896 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2019 | $ 194,743 | $ 7 | $ 414,414 | $ 142 | $ (219,820) |
Beginning balance (in shares) at Dec. 31, 2019 | 69,052,873 | ||||
Issuance of common stock upon follow-on public offering, net of issuance costs | 224,511 | $ 1 | 224,510 | ||
Issuance of common stock upon follow-on public offering, net of issuance costs (in shares) | 9,602,500 | ||||
Exercise of stock options | 3,217 | 3,217 | |||
Exercise of stock options (in shares) | 361,096 | ||||
Stock-based compensation | 6,642 | 6,642 | |||
Unrealized loss on marketable securities | 2,640 | 2,640 | |||
Net income (loss) | (40,019) | (40,019) | |||
Ending balance at Mar. 31, 2020 | 391,734 | $ 8 | 648,783 | 2,782 | (259,839) |
Ending balance (in shares) at Mar. 31, 2020 | 79,016,469 | ||||
Beginning balance at Dec. 31, 2019 | 194,743 | $ 7 | 414,414 | 142 | (219,820) |
Beginning balance (in shares) at Dec. 31, 2019 | 69,052,873 | ||||
Net income (loss) | (138,049) | ||||
Ending balance at Sep. 30, 2020 | 310,191 | $ 8 | 666,958 | 1,094 | (357,869) |
Ending balance (in shares) at Sep. 30, 2020 | 79,284,181 | ||||
Beginning balance at Mar. 31, 2020 | 391,734 | $ 8 | 648,783 | 2,782 | (259,839) |
Beginning balance (in shares) at Mar. 31, 2020 | 79,016,469 | ||||
Exercise of stock options | 2,196 | 2,196 | |||
Exercise of stock options (in shares) | 190,709 | ||||
Purchase of common stock under employee stock purchase plan | 715 | 715 | |||
Purchase of common stock under employee stock purchase plan (in shares) | 45,217 | ||||
Stock-based compensation | 6,948 | 6,948 | |||
Unrealized loss on marketable securities | (936) | (936) | |||
Net income (loss) | (45,326) | (45,326) | |||
Ending balance at Jun. 30, 2020 | $ 355,331 | $ 8 | $ 658,642 | 1,846 | (305,165) |
Ending balance (in shares) at Jun. 30, 2020 | 79,252,395 | ||||
Exercise of stock options (in shares) | 286 | 31,786 | 286 | ||
Stock-based compensation | $ 8,030 | $ 8,030 | |||
Unrealized loss on marketable securities | (752) | (752) | |||
Net income (loss) | (52,704) | (52,704) | |||
Ending balance at Sep. 30, 2020 | 310,191 | $ 8 | 666,958 | 1,094 | (357,869) |
Ending balance (in shares) at Sep. 30, 2020 | 79,284,181 | ||||
Beginning balance at Dec. 31, 2020 | $ 267,530 | $ 8 | 676,956 | 614 | (410,048) |
Beginning balance (in shares) at Dec. 31, 2020 | 79,316,261 | 79,316,261 | |||
Exercise of stock options | $ 3,874 | 3,874 | |||
Exercise of stock options (in shares) | 415,386 | ||||
Stock-based compensation | 8,800 | 8,800 | |||
Unrealized loss on marketable securities | (204) | (204) | |||
Net income (loss) | (52,171) | (52,171) | |||
Ending balance at Mar. 31, 2021 | 227,829 | $ 8 | 689,630 | 410 | (462,219) |
Ending balance (in shares) at Mar. 31, 2021 | 79,731,647 | ||||
Beginning balance at Dec. 31, 2020 | $ 267,530 | $ 8 | 676,956 | 614 | (410,048) |
Beginning balance (in shares) at Dec. 31, 2020 | 79,316,261 | 79,316,261 | |||
Net income (loss) | $ 19,279 | ||||
Ending balance at Sep. 30, 2021 | $ 335,890 | $ 8 | 726,692 | (41) | (390,769) |
Ending balance (in shares) at Sep. 30, 2021 | 79,316,261 | 81,248,646 | |||
Beginning balance at Mar. 31, 2021 | $ 227,829 | $ 8 | 689,630 | 410 | (462,219) |
Beginning balance (in shares) at Mar. 31, 2021 | 79,731,647 | ||||
Exercise of stock options | 1,993 | 1,993 | |||
Exercise of stock options (in shares) | 207,453 | ||||
Purchase of common stock under employee stock purchase plan | 969 | 969 | |||
Purchase of common stock under employee stock purchase plan (in shares) | 84,105 | ||||
Forfeiture of restricted common stock | (18,043) | ||||
Stock-based compensation | 9,078 | 9,078 | |||
Unrealized loss on marketable securities | (207) | (207) | |||
Net income (loss) | (55,147) | (55,147) | |||
Ending balance at Jun. 30, 2021 | 184,515 | $ 8 | 701,670 | 203 | (517,366) |
Ending balance (in shares) at Jun. 30, 2021 | 80,005,162 | ||||
Exercise of stock options | 14,821 | $ 0 | 14,821 | ||
Exercise of stock options (in shares) | 1,178,085 | ||||
Vesting of restricted stock units | 65,399 | ||||
Stock-based compensation | 10,201 | 10,201 | |||
Unrealized loss on marketable securities | (244) | (244) | |||
Net income (loss) | 126,597 | 126,597 | |||
Ending balance at Sep. 30, 2021 | $ 335,890 | $ 8 | $ 726,692 | $ (41) | $ (390,769) |
Ending balance (in shares) at Sep. 30, 2021 | 79,316,261 | 81,248,646 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance cost of common stock | $ 1,148 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 19,279 | $ (138,049) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 4,735 | 4,367 |
Stock-based compensation | 28,079 | 21,620 |
Accretion of discounts on marketable securities | 1,586 | 8 |
Amortization of right-of-use assets | 1,434 | 934 |
Impairment loss on right-of-use-assets | 238 | |
Loss from disposal of property and equipment, net | (12) | |
Changes in operating assets and liabilities: | ||
Receivable from collaboration partner | (1,584) | |
Prepaid expenses and other current assets | (382) | (3,934) |
Other assets | (3,099) | (2,098) |
Accounts payable | (347) | 1,087 |
Accrued liabilities and accrued clinical supply costs | (5,488) | 15,027 |
Deferred revenue | 306,909 | (16,245) |
Lease liabilities | (2,992) | (2,043) |
Other long-term liabilities | (314) | |
Net cash provided by (used in) operating activities | 347,816 | (119,076) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,690) | (4,244) |
Purchase of marketable securities | (139,716) | (414,949) |
Sale of marketable secuirities | 10,696 | 0 |
Maturities of marketable securities | 228,800 | 302,590 |
Net cash provided by (used in) investing activities | 97,090 | (116,603) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock upon follow-on public offering, net of issuance costs | 224,603 | |
Proceeds from the exercise of options to purchase common stock | 20,688 | 5,699 |
Purchase of common stock under employee stock option plan | 969 | 715 |
Net cash provided by financing activities | 21,657 | 231,017 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 466,563 | (4,662) |
Cash, cash equivalents, and restricted cash at beginning of period | 51,441 | 91,113 |
Cash, cash equivalents, and restricted cash at end of period | 518,004 | 86,451 |
Non-cash investing and financing activities: | ||
Property and equipment purchases included in accounts payable and accrued liabilities | $ 236 | $ 337 |
The Company and Liquidity
The Company and Liquidity | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Liquidity | 1. The Company and Liquidity Alector, Inc. (Alector or the Company) is a Delaware corporation headquartered in South San Francisco, California. Alector is a clinical stage biopharmaceutical company pioneering immuno-neurology, a novel therapeutic approach for the treatment of neurodegeneration. Follow-on Offering On January 30, 2020, the Company completed a follow-on offering through issuing and selling 9,602,500 shares of common stock at a public offering price of $ 25.00 per share, including 1,252,500 shares sold pursuant to the underwriters’ full exercise of their option to purchase additional shares, resulting in aggregate net proceeds of $ 224.5 million, after deducting underwriting discounts and commissions and offering costs. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (GAAP) as defined by the Financial Accounting Standards Board (FASB). In the opinion of management, these unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary to present fairly the results of the interim periods presented. The condensed consolidated financial statements include the accounts of Alector, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. These interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2020, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 25, 2021. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expense during the reporting period. The Company evaluates its estimates, including those related to revenue recognition, manufacturing accruals, clinical accruals, fair value of assets and liabilities, income taxes uncertainties, stock-based compensation, and related assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates . Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, and short-term marketable securities. Cash and cash equivalents are deposited in checking and sweep accounts at a financial institution. Such deposits may, at times, exceed federally insured limits. Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash and cash equivalents. Cash equivalents, which consist of amounts invested in money market funds, are stated at fair value. There are no significant unrealized gains or losses on the money market funds for the periods presented. Restricted cash as of September 30, 2021 relates to a letter of credit established for a lease entered into in June 2018. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows: Nine Months Ended September 30, 2021 2020 (In thousands) Cash and cash equivalents $ 516,532 $ 84,979 Restricted cash 1,472 1,472 Total cash, cash equivalents, and restricted cash $ 518,004 $ 86,451 Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, marketable securities, accounts payable, and accrued liabilities. The Company’s financial instruments approximate fair value due to their relatively short maturities. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: 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. Revenue Recognition The Company recognizes revenue when control of promised goods or services is transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under arrangements, the Company performs the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies the performance obligation. If it is determined that multiple performance obligations exist, the transaction price is allocated at the inception of the agreement to all identified performance obligations based on the relative standalone selling price (SSP). The relative SSP for each deliverable is estimated using external sourced evidence if it is available. If external sourced evidence is not available, we use our best estimate of the SSP for the deliverable. The Company recognizes collaboration revenue at a point in time if control of the promised good or service has been transferred to the customer. The Company recognizes collaboration revenue over time by measuring the progress toward complete satisfaction of the performance obligation using an input measure. In order to recognize revenue over the research and development period, the Company measures actual costs incurred to date compared to the overall total expected costs to satisfy the performance obligation. Revenues are recognized as the program costs are incurred. The Company re-evaluates the estimate of expected costs to satisfy the performance obligation each reporting period. Stock-based Compensation Stock-based compensation is measured on the grant date based on the fair value of the awards. The fair value of options to purchase common stock are measured using the Black-Scholes option-pricing model. Stock-based compensation associated with restricted stock units (RSUs) is based on the fair value of the Company's common stock on the grant date, which equals the closing price of the Company's common stock on the grant date. The Company recognizes expense over the vesting period of the awards. Expense for options and RSUs are recognized on a straight-line basis. The Company also granted RSUs with market conditions to certain executives. The fair value of the RSUs with market conditions are estimated using a Monte Carlo simulation model. Assumptions and estimates utilized in the model include the stock price on grant date, risk-free interest rate, dividend yield, expected stock volatility, and the estimated period to achieve the market condition. The expense is recognized based on continued employment of the participants, regardless of achievement of the market condition. Expense related to the RSUs with market conditions is recognized using the accelerated attribution method. The Company accounts for forfeitures as they occur for all awards. Comprehensive Income (Loss) Comprehensive Income (Loss) includes net income (loss) and certain changes in stockholders’ equity that are the result of transactions and economic events other than those with stockholders. The Company’s only element of other comprehensive loss was net unrealized gain (loss) on marketable securities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy: September 30, 2021 Fair Value Amortized Unrealized Unrealized Fair Market (In thousands) Money market funds Level 1 $ 219,553 $ — $ — $ 219,553 U.S. government treasury securities Level 1 261,358 61 ( 103 ) 261,316 Total cash equivalents and $ 480,911 $ 61 $ ( 103 ) $ 480,869 December 31, 2020 Fair Value Amortized Unrealized Unrealized Fair Market (In thousands) Money market funds Level 1 $ 37,951 $ — $ — $ 37,951 U.S. government treasury securities Level 1 357,725 620 ( 6 ) 358,339 Corporate bonds Level 2 5,000 $ — $ — 5,000 Total cash equivalents and $ 400,676 $ 620 $ ( 6 ) $ 401,290 The Company’s Level 2 securities are valued using third-party pricing sources. The pricing services utilize industry standard valuation models for which all significant inputs are observable. The Company classifies marketable securities available to fund current operations as current assets. As of September 30, 2021 , the remaining contractual maturities of $ 332.4 million of investments were less than one year and $ 148.5 million of investments were after one year through two years. The Company does not intend to sell the investments that are currently in an unrealized loss position, and it is highly unlikely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity. As of September 30, 2021 , the Company considered any unrealized losses on our marketable securities to be driven by factors other than credit risk. The Company sold marketable securities for total proceeds of $ 10.7 million for the three and nine months ended September 30, 2021, for an immaterial realized gain based on the specific identification method. The Company did no t sell any marketable securities for the three and nine months ended September 30, 2020. |
Collaboration Agreements
Collaboration Agreements | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaboration Agreements | 4. Collaboration Agreements GSK On July 1, 2021, the Company entered into a Collaboration and License Agreement with Glaxo Wellcome UK Limited, a subsidiary of GlaxoSmithKline plc (GSK), pursuant to which the Company and GSK will collaborate on the global development and commercialization of progranulin-elevating monoclonal antibodies, including AL001 and AL101 (GSK Agreement). The GSK Agreement was made effective on August 17, 2021 . Under the terms of the GSK Agreement, the Company receives $ 700 million in upfront payments, of which $ 500 million was received in the third quarter of 2021 and $ 200 million is expected to be invoiceable in the first quarter of 2022. In addition, based on the development and commercialization plan for AL001 and AL101, the Company may be eligible to receive up to an additional $ 1.5 billion in clinical development, regulatory, and commercial launch-related milestone payments. In the United States, the Company and GSK will equally share profits and losses from commercialization of AL001 and AL101. Outside of the United States, the Company will be eligible for double-digit tiered royalties. The Company and GSK will jointly develop AL001 and AL101. The Company will lead the global clinical development of AL001 and AL101, other than with respect to Phase 3 clinical trials for Alzheimer’s disease and Parkinson’s disease and other non-orphan indications, which will be led by GSK. The Company and GSK will share development costs 60 % by GSK and 40 % by the Company, except that the Company will solely bear the development costs of the initial Phase 2 clinical trials under the development plan, and the parties will share manufacturing development costs equally. In the United States, the Company and GSK will be jointly responsible for commercialization of AL001 and AL101, with the Company leading the commercialization for orphan indications and GSK leading the commercialization for Alzheimer’s disease and Parkinson’s disease and other non-orphan indications. Outside of the United States, GSK will be solely responsible for commercialization of AL001 and AL101 for all indications. The Company may opt out of the sharing of development costs and of profit and losses from commercialization in the United States on a product-by-product basis. In such case, the Company will no longer conduct development or commercialization of that product and the Company will receive tiered royalties on net sales in the United States instead of a share of profits or losses. GSK may terminate the agreement with 180 days' notice at any time, but the Company does not need to repay any portion of the payments received. The Company concluded that the GSK Agreement is within the scope of ASC 808, Collaborative Arrangements, as both parties are active participants in the activities and are exposed to significant risks and rewards dependent on the success of the commercialization of indications for AL001 and AL101. Certain elements are required to be accounted for under ASC 606, Revenue From Contracts With Customers, where the counterparty is a customer for a good or service that is a distinct unit of account. The Company concluded that the 2021 GSK Agreement contained the following units of account: (i) license and know-how for FTD- GRN in Phase 3 clinical development, (ii) the research and development activities, including license rights and know-how, relating to products in Phase 2 or earlier stages of development, and (iii) research and development services under the co-development plan to be accounted for outside of ASC 606, including all products that move into Phase 3 clinical development. The Company determined that the distinct performance obligations under ASC 606 consisted of: (i) license and know-how to AL001 FTD- GRN , which is currently in Phase 3 clinical development and (ii) the research and development activities, including license rights and know-how, relating to products in Phase 2 or earlier stages of development. The transaction price at inception included fixed consideration consisting of the upfront payments of $700 million. All potential future milestones and other payments were considered constrained at the inception of the GSK Agreement since the Company could not conclude it was probable that a significant reversal in the amount of revenue recognized would not occur. The respective standalone value for each of the performance obligations was allocated to the transaction price. The estimated SSP of each performance obligation was determined using discounted cash flows from the expected commercialization of AL001 and AL101 and estimated research and development costs to be incurred by the Company in the initial Phase 2 clinical trials. For the license for FTD- GRN , the Company determined that GSK can benefit from the license at the time the license was granted and therefore, the related performance obligation was satisfied at a point in time. The Company determined that GSK cannot benefit from the licenses without the corresponding development services that the Company has committed to perform due the earlier stage of development for these licenses. The Company will perform research and development activities through the end of the initial Phase 2 clinical trials. Revenue will be recognized over time as the research and development activities are performed. The Company will measure progress based on actual costs incurred to date compared to the overall total expected costs to satisfy the performance obligations. The research and development activities for products in Phase 3 clinical development were determined to be within the scope of ASC 808. Both parties will be active participants in the development, manufacturing, and commercialization of the product and are exposed to significant risks and rewards that are dependent on the commercial success of the products. The Company and GSK participate in profit and loss sharing for each program commensurate with each party's cost-sharing responsibilities during research and development. ASC 808 does not provide recognition and measurement guidance. As such, the Company determined that ASC 730, Research and Development, was appropriate to analogize to based on the nature of the cost-sharing provision of the agreement. The Company has concluded that payments to or reimbursements from GSK related to these services will be accounted for as an increase to or reduction of research and development expenses, respectively. The Company also concluded that any payments from GSK related to the profit and loss sharing arrangement (including royalties) contingent upon the commercialization of the related products will be analogized to ASC 606 and therefore, will be recognized when the related sales occur. Collaboration revenue under the GSK Agreement during the three and nine months ended September 30, 2021 was $ 179.8 million, no ne of which was included in deferred revenue at the beginning of the period. $ 173.4 million was revenue from the Phase 3 license for FTD- GRN recognized when the license and know-how was delivered following the effective date of the agreement. The deferred revenue was $ 320.2 million as of September 30, 2021. The deferred revenue is expected to be recognized over the research and development period of the programs through the completion of initial Phase 2 clinical trials. Costs associated with co-development activities performed under the agreement are included in research and development expenses in the condensed consolidated statements of operations, with any reimbursement of costs by GSK reflected as a reduction of such expenses. During the three and nine months ended September 30, 2021, the Company recognized a reduction of research and development expense of $ 1.6 million under the GSK Agreement. AbbVie The Company entered into an agreement in October 2017 with AbbVie Biotechnology, Ltd. (AbbVie) to co-develop antibodies to two program targets in preclinical development (AbbVie Agreement). Under the terms of the AbbVie Agreement, AbbVie made $ 205.0 million in upfront payments, of which $ 5.0 million and $ 200.0 million was received by the Company in October 2017 and January 2018, respectively. The Company will perform research and development services for the antibodies to the two programs through the end of Phase 2 clinical trials which the Company expects to conduct through 2023. AbbVie will then have the exclusive right to exercise an option to enter into a license and collaboration agreement with the Company for one or both of the programs for $ 250.0 million each. If AbbVie exercises its option for a program, AbbVie will take over the development of the product candidates for such program and costs will be split between the parties. The Company will also share in profits and losses upon commercialization of any products from such program. However, following AbbVie’s exercise of its option for a program, the Company may opt out of sharing in development costs and profits or losses for that program and instead receive tiered royalties. Additionally, under the terms of the AbbVie Agreement, the Company will be eligible to earn up to an additional $ 242.8 million in milestone payments per program related to the initiation of certain clinical studies and regulatory approval for up to three indications per program. The Company assessed its collaboration agreement with AbbVie in the context of the delivery of the research and development services. Collaboration revenue under the Company’s collaboration agreement with AbbVie during the three and nine months ended September 30, 2021 was $ 2.6 million and $ 13.3 million, respectively, the entire amount of which was included in deferred revenue at the beginning of the period. The deferred revenue was $ 119.0 million as of September 30, 2021. The deferred revenue is expected to be recognized over the research and development period of the programs through the completion of Phase 2 clinical trials. The Company has had changes to the overall expected costs to satisfy the performance obligations from period to period for the AbbVie Agreement. For the three months ended September 30, 2021 , the Company had a 1 % increase in the forecast of the total expected costs for the AbbVie Agreement. For the three months ended September 30, 2021 , the increase in the overall expected costs to satisfy the performance obligation resulted in an approximately $ 1.0 million reduction in revenue compared to if the expected costs had remained the same, as a result of the cumulative catch up for the change in estimate. Innovent The Company entered into an agreement in March 2020 with Innovent Biologics (Innovent) to license, develop, and commercialize AL008 in China (Innovent Agreement). AL008 is the Company’s novel antibody targeting the CD47-SIRP-alpha pathway, a potent survival pathway co-opted by tumors to evade the innate immune system. Under the terms of the Innovent Agreement, Innovent may pay the Company up to $ 11.5 million in development milestones, $ 112.5 million in sales milestones, and future royalties for any sales. The Company retains the rights to develop and commercialize AL008 outside of China. The Company has determined there is one performance obligation for the delivery of the license and will recognize revenue when it is probable that there will not be significant reversal of cumulative revenue. Development and sales milestones under the Innovent Agreement have not been included in the transaction price, as all these amounts were fully constrained as of September 30, 2021. As of September 30, 2021 , no revenue has been recognized or payments received under the Innovent Agreement. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 5. Stock-based Compensation The Company recognized stock-based compensation as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In thousands) (In thousands) Research and development $ 5,414 $ 4,058 $ 14,902 $ 10,631 General and administrative 4,787 3,972 13,177 10,989 Total stock-based compensation $ 10,201 $ 8,030 $ 28,079 $ 21,620 2019 Equity Incentive Plan On January 1, 2021, the Company added 3,965,813 shares to the shares reserved for issuance under the 2019 Equity Incentive Plan (2019 Plan). As of September 30, 2021 , the Company had reserved 17,811,149 shares of common stock for issuance under the 2019 Plan, of which 5,414,472 shares were available for issuance. Activity for the options to purchase common stock shown below (in thousands, except share and per share amounts): Number of Weighted Weighted Aggregate Outstanding as of December 31, 2020 12,654,998 $ 13.96 8.7 $ 39,633 Granted 1,420,878 19.56 Exercised ( 1,800,924 ) 11.48 Forfeited ( 1,109,290 ) 14.87 Outstanding as of September 30, 2021 11,165,662 $ 14.99 8.3 $ 93,091 Exercisable as of September 30, 2021 4,294,184 $ 14.51 7.8 $ 38,208 Vested and expected to vest as of September 30, 2021 11,165,662 $ 14.99 8.3 $ 93,091 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the fair value of the Company’s common stock for stock options that were in-the-money. As of September 30, 2021 , total unrecognized stock-based compensation related to unvested stock options was $ 66.7 million, which the Company expects to recognize over a remaining weighted-average period of 2.0 years. Restricted Stock Activity Activity for the restricted stock awards and RSUs is shown below. In May 2021, the Company issued RSUs with market conditions to certain executives, which are included in the table below. The RSUs with market conditions are earned based on stock price performance and continued service by the employee. Number of Awards Weighted Unvested restricted stock awards and restricted stock units as of December 31, 2020 186,425 $ 6.95 Granted 1,305,345 14.80 Vested ( 233,781 ) 7.04 Forfeited ( 92,373 ) 14.51 Unvested restricted stock awards and restricted stock units as of September 30, 2021 1,165,616 $ 15.13 As of September 30, 2021 , total unrecognized stock-based compensation related to unvested restricted stock awards and restricted stock units was $ 15.6 million, which the Company expects to recognize over a remaining weighted-average period of 2.4 years. 2019 Employee Stock Purchase Plan The 2019 Employee Stock Purchase Plan (2019 ESPP) enables eligible employees of the Company to purchase shares of common stock at a discount. As of September 30, 2021 , the Company has reserved for issuance 2,439,958 shares of common stock pursuant to the 2019 ESPP. Each offering period is approximately six months long. 2019 ESPP participants will purchase shares of common stock at a price per share equal to 85 % of the lesser of (1) the fair market value per share of the common stock on the first trading day of the offering period or (2) the fair market value of the common stock on the purchase date. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 6. Related Party Transactions The Company has a collaboration agreement with Adimab, LLC (Adimab) under which the Company is developing antibodies discovered by Adimab in its AL001 and AL101 programs, and the Company is developing antibodies optimized by Adimab in its AL002 and AL003 programs (2014 Adimab Agreement). In August 2019, the Company signed a new collaboration agreement with Adimab for research and development of additional antibodies (2019 Adimab Agreement). The Chief Executive Officer of Adimab is a Co-founder and Chairperson of the board of directors of the Company. For the three and nine months ended September 30, 2021 , the Company incurred expenses of zero and $ 1.0 million for a milestone payment for first patient dosed in the AL002 Phase 2 trial, respectively. For the three and nine months ended September 30, 2020 , the Company incurred no expenses to Adimab. The Company had no accrued liabilities due to Adimab as of September 30, 2021 and December 31, 2020. Under the 2014 Adimab Agreement, the Company will owe up to $ 3.5 million in milestone payments per program to Adimab for its product candidates. The Company will also owe low to mid single-digit royalty payments for commercial sales of such product candidates. Under the 2019 Adimab Agreement, the Company will owe certain milestone payments per program for its product candidates and low single-digit royalty payments for commercial sales of such product candidates. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 7. Net Income (Loss) Per Share The following tables set forth the computation of the basic and diluted net income (loss) per share (in thousands, except share and per share data. Three Months Ended Nine Months Ended 2021 2020 2021 2020 Numerator: Net income (loss) $ 126,597 $ ( 52,704 ) $ 19,279 $ ( 138,049 ) Denominator: Weighted-average number of shares outstanding basic 80,964,701 78,771,930 80,048,758 77,340,896 Dilutive effect of outstanding common stock options, ESPP shares issuable, and restricted stock units 4,267,989 — 2,822,496 — Weighted-average number of shares outstanding, diluted 85,232,690 78,771,930 82,871,254 77,340,896 Net income (loss) per share, basic $ 1.56 $ ( 0.67 ) $ 0.24 $ ( 1.78 ) Net income (loss) per share, diluted $ 1.49 $ ( 0.67 ) $ 0.23 $ ( 1.78 ) Potentially dilutive securities have been excluded from the calculation of diluted net income (loss) per share for the period presented due to their anti-dilutive effect: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Restricted stock subject to future vesting — 415,521 — 415,521 Restricted stock with market conditions subject to future vesting 466,000 — 466,000 — Options to purchase common stock 1,690,083 10,033,270 4,485,816 10,033,270 Shares committed under 2019 ESPP — 25,822 — 25,822 Total 2,156,083 10,474,613 4,951,816 10,474,613 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (GAAP) as defined by the Financial Accounting Standards Board (FASB). In the opinion of management, these unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary to present fairly the results of the interim periods presented. The condensed consolidated financial statements include the accounts of Alector, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. These interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2020, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 25, 2021. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expense during the reporting period. The Company evaluates its estimates, including those related to revenue recognition, manufacturing accruals, clinical accruals, fair value of assets and liabilities, income taxes uncertainties, stock-based compensation, and related assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates . |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, and short-term marketable securities. Cash and cash equivalents are deposited in checking and sweep accounts at a financial institution. Such deposits may, at times, exceed federally insured limits. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash and cash equivalents. Cash equivalents, which consist of amounts invested in money market funds, are stated at fair value. There are no significant unrealized gains or losses on the money market funds for the periods presented. Restricted cash as of September 30, 2021 relates to a letter of credit established for a lease entered into in June 2018. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows: Nine Months Ended September 30, 2021 2020 (In thousands) Cash and cash equivalents $ 516,532 $ 84,979 Restricted cash 1,472 1,472 Total cash, cash equivalents, and restricted cash $ 518,004 $ 86,451 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, marketable securities, accounts payable, and accrued liabilities. The Company’s financial instruments approximate fair value due to their relatively short maturities. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: 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. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when control of promised goods or services is transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under arrangements, the Company performs the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies the performance obligation. If it is determined that multiple performance obligations exist, the transaction price is allocated at the inception of the agreement to all identified performance obligations based on the relative standalone selling price (SSP). The relative SSP for each deliverable is estimated using external sourced evidence if it is available. If external sourced evidence is not available, we use our best estimate of the SSP for the deliverable. The Company recognizes collaboration revenue at a point in time if control of the promised good or service has been transferred to the customer. The Company recognizes collaboration revenue over time by measuring the progress toward complete satisfaction of the performance obligation using an input measure. In order to recognize revenue over the research and development period, the Company measures actual costs incurred to date compared to the overall total expected costs to satisfy the performance obligation. Revenues are recognized as the program costs are incurred. The Company re-evaluates the estimate of expected costs to satisfy the performance obligation each reporting period. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation is measured on the grant date based on the fair value of the awards. The fair value of options to purchase common stock are measured using the Black-Scholes option-pricing model. Stock-based compensation associated with restricted stock units (RSUs) is based on the fair value of the Company's common stock on the grant date, which equals the closing price of the Company's common stock on the grant date. The Company recognizes expense over the vesting period of the awards. Expense for options and RSUs are recognized on a straight-line basis. The Company also granted RSUs with market conditions to certain executives. The fair value of the RSUs with market conditions are estimated using a Monte Carlo simulation model. Assumptions and estimates utilized in the model include the stock price on grant date, risk-free interest rate, dividend yield, expected stock volatility, and the estimated period to achieve the market condition. The expense is recognized based on continued employment of the participants, regardless of achievement of the market condition. Expense related to the RSUs with market conditions is recognized using the accelerated attribution method. The Company accounts for forfeitures as they occur for all awards. |
Comprehensive Loss | Comprehensive Income (Loss) Comprehensive Income (Loss) includes net income (loss) and certain changes in stockholders’ equity that are the result of transactions and economic events other than those with stockholders. The Company’s only element of other comprehensive loss was net unrealized gain (loss) on marketable securities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows: Nine Months Ended September 30, 2021 2020 (In thousands) Cash and cash equivalents $ 516,532 $ 84,979 Restricted cash 1,472 1,472 Total cash, cash equivalents, and restricted cash $ 518,004 $ 86,451 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value on a Recurring Basis | The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy: September 30, 2021 Fair Value Amortized Unrealized Unrealized Fair Market (In thousands) Money market funds Level 1 $ 219,553 $ — $ — $ 219,553 U.S. government treasury securities Level 1 261,358 61 ( 103 ) 261,316 Total cash equivalents and $ 480,911 $ 61 $ ( 103 ) $ 480,869 December 31, 2020 Fair Value Amortized Unrealized Unrealized Fair Market (In thousands) Money market funds Level 1 $ 37,951 $ — $ — $ 37,951 U.S. government treasury securities Level 1 357,725 620 ( 6 ) 358,339 Corporate bonds Level 2 5,000 $ — $ — 5,000 Total cash equivalents and $ 400,676 $ 620 $ ( 6 ) $ 401,290 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Recognized Stock-Based Compensation | The Company recognized stock-based compensation as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (In thousands) (In thousands) Research and development $ 5,414 $ 4,058 $ 14,902 $ 10,631 General and administrative 4,787 3,972 13,177 10,989 Total stock-based compensation $ 10,201 $ 8,030 $ 28,079 $ 21,620 |
Summary of Options to Purchase Common Stock | Activity for the options to purchase common stock shown below (in thousands, except share and per share amounts): Number of Weighted Weighted Aggregate Outstanding as of December 31, 2020 12,654,998 $ 13.96 8.7 $ 39,633 Granted 1,420,878 19.56 Exercised ( 1,800,924 ) 11.48 Forfeited ( 1,109,290 ) 14.87 Outstanding as of September 30, 2021 11,165,662 $ 14.99 8.3 $ 93,091 Exercisable as of September 30, 2021 4,294,184 $ 14.51 7.8 $ 38,208 Vested and expected to vest as of September 30, 2021 11,165,662 $ 14.99 8.3 $ 93,091 |
Summary of Restricted Stock Awards and Restricted Stock Units | Activity for the restricted stock awards and RSUs is shown below. In May 2021, the Company issued RSUs with market conditions to certain executives, which are included in the table below. The RSUs with market conditions are earned based on stock price performance and continued service by the employee. Number of Awards Weighted Unvested restricted stock awards and restricted stock units as of December 31, 2020 186,425 $ 6.95 Granted 1,305,345 14.80 Vested ( 233,781 ) 7.04 Forfeited ( 92,373 ) 14.51 Unvested restricted stock awards and restricted stock units as of September 30, 2021 1,165,616 $ 15.13 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) per Share | The following tables set forth the computation of the basic and diluted net income (loss) per share (in thousands, except share and per share data. Three Months Ended Nine Months Ended 2021 2020 2021 2020 Numerator: Net income (loss) $ 126,597 $ ( 52,704 ) $ 19,279 $ ( 138,049 ) Denominator: Weighted-average number of shares outstanding basic 80,964,701 78,771,930 80,048,758 77,340,896 Dilutive effect of outstanding common stock options, ESPP shares issuable, and restricted stock units 4,267,989 — 2,822,496 — Weighted-average number of shares outstanding, diluted 85,232,690 78,771,930 82,871,254 77,340,896 Net income (loss) per share, basic $ 1.56 $ ( 0.67 ) $ 0.24 $ ( 1.78 ) Net income (loss) per share, diluted $ 1.49 $ ( 0.67 ) $ 0.23 $ ( 1.78 ) |
Schedule of Dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share | Potentially dilutive securities have been excluded from the calculation of diluted net income (loss) per share for the period presented due to their anti-dilutive effect: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Restricted stock subject to future vesting — 415,521 — 415,521 Restricted stock with market conditions subject to future vesting 466,000 — 466,000 — Options to purchase common stock 1,690,083 10,033,270 4,485,816 10,033,270 Shares committed under 2019 ESPP — 25,822 — 25,822 Total 2,156,083 10,474,613 4,951,816 10,474,613 |
The Company and Liquidity - Add
The Company and Liquidity - Additional Information (Details) $ / shares in Units, $ in Millions | Jan. 30, 2020USD ($)$ / sharesshares |
Follow-on-offering | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Public offerings | 9,602,500 |
Share price | $ / shares | $ 25 |
Proceeds from issuance of common stock, net of underwriting discounts and commissions and offering expenses | $ | $ 224.5 |
Over-Allotment Option | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |
Public offerings | 1,252,500 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Oct. 31, 2017 | Sep. 30, 2021 | Sep. 30, 2021 | Jul. 01, 2021 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Increase in expected cost percentage | 1.00% | ||||
Reduced revenue | $ 1,000 | ||||
Deferred revenue | 320,200 | $ 320,200 | $ 0 | ||
AbbVie Biotechnology Limited | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Upfront payments | $ 205,000 | ||||
Upfront payment received | $ 200,000 | 5,000 | |||
Exclusive option rights exercised for each program | 250,000 | ||||
Collaboration revenue | 2,600 | 13,300 | |||
Deferred revenue | $ 119,000 | 119,000 | |||
AbbVie Biotechnology Limited | Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Additional milestone payments per program related to initiation of certain clinical studies and regulatory approval | $ 242,800 | ||||
Innovent | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Collaboration revenue | 0 | ||||
Development milestone | 11,500 | ||||
Sales milestone | 112,500 | ||||
Money Market Funds | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Unrealized gains or loss on money market funds | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 516,532 | $ 49,969 | $ 84,979 | |
Restricted cash | 1,472 | 1,472 | 1,472 | |
Total cash, cash equivalents, and restricted cash | $ 518,004 | $ 51,441 | $ 86,451 | $ 91,113 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Money Market Funds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents and marketable securities, Amortized Cost | $ 219,553 | $ 37,951 |
Cash equivalents and marketable securities, Unrealized Gains | 0 | |
Cash equivalents and marketable securities, Unrealized Losses | 0 | |
Cash equivalents and marketable securities, Fair Market Value | 219,553 | 37,951 |
U.S Government Treasury Securities | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents and marketable securities, Amortized Cost | 261,358 | 357,725 |
Cash equivalents and marketable securities, Unrealized Gains | 61 | 620 |
Cash equivalents and marketable securities, Unrealized Losses | (103) | (6) |
Cash equivalents and marketable securities, Fair Market Value | 261,316 | 358,339 |
Corporate Bonds | Fair Value, Inputs, Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents and marketable securities, Amortized Cost | 5,000 | |
Cash equivalents and marketable securities, Fair Market Value | 5,000 | |
Cash Equivalents and Marketable Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents and marketable securities, Amortized Cost | 480,911 | 400,676 |
Cash equivalents and marketable securities, Unrealized Gains | 61 | 620 |
Cash equivalents and marketable securities, Unrealized Losses | (103) | (6) |
Cash equivalents and marketable securities, Fair Market Value | $ 480,869 | $ 401,290 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | ||||
Remaining contractual maturities of investments were less than one year | $ 332,400 | $ 332,400 | ||
Remaining contractual maturities of investments were less than one year through two years | 148,500 | 148,500 | ||
Sale of marketable secuirities | $ 10,700 | $ 0 | $ 10,696 | $ 0 |
Collaboration Agreements - Addi
Collaboration Agreements - Additional Information (Details) $ in Thousands | Aug. 17, 2021 | Jul. 01, 2021USD ($) | Jan. 31, 2018USD ($) | Oct. 31, 2017USD ($) | Mar. 31, 2022USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Deferred revenue | $ 0 | $ 320,200 | $ 320,200 | ||||||
Research and development expense | $ 43,066 | $ 43,819 | $ 136,617 | $ 112,486 | |||||
Increase in expected cost percentage | 1.00% | ||||||||
Reduced revenue | $ 1,000 | ||||||||
GlaxoSmithKline plc | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Effective date of agreement | Aug. 17, 2021 | ||||||||
Upfront payments | $ 700 | ||||||||
Upfront payment received | $ 200,000 | 500,000 | |||||||
Percentage of development cost | 0.60 | ||||||||
Collaboration revenue | 179,800 | $ 179,800 | |||||||
Research and development expense | 1,600 | 1,600 | |||||||
GlaxoSmithKline plc | Maximum | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Additional milestone payments per program related to initiation of certain clinical studies and regulatory approval | 1,500,000 | $ 1,500,000 | |||||||
GlaxoSmithKline plc | Phase 3 License | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Collaboration revenue | 173,400 | ||||||||
Alector | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Percentage of development cost | 0.40 | ||||||||
AbbVie Biotechnology Limited | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Upfront payments | $ 205,000 | ||||||||
Upfront payment received | $ 200,000 | 5,000 | |||||||
Exclusive option rights exercised for each program | 250,000 | ||||||||
Collaboration revenue | 2,600 | $ 13,300 | |||||||
Deferred revenue | $ 119,000 | 119,000 | |||||||
AbbVie Biotechnology Limited | Maximum | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Additional milestone payments per program related to initiation of certain clinical studies and regulatory approval | $ 242,800 | ||||||||
Innovent | |||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||
Collaboration revenue | 0 | ||||||||
Development milestone | 11,500 | ||||||||
Sales milestone | $ 112,500 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Recognized Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 10,201 | $ 8,030 | $ 28,079 | $ 21,620 |
Research and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | 5,414 | 4,058 | 14,902 | 10,631 |
General and Administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 4,787 | $ 3,972 | $ 13,177 | $ 10,989 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions | Feb. 06, 2019 | Sep. 30, 2021 | Jan. 01, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected weighted average period | 2 years | ||
Unrecognized stock-based compensation | $ 66.7 | ||
2019 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for issuance | 17,811,149 | 3,965,813 | |
Common stock, shares available for issuance | 5,414,472 | ||
2019 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for issuance | 2,439,958 | ||
Purchase price of common stock, percentage | 85.00% | ||
Subsequent offering period | 6 months | ||
Restricted Stock Awards and Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized stock-based compensation | $ 15.6 | ||
Expected weighted average period | 2 years 4 months 24 days |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Options to Purchase Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Options, Exercised | (286) | ||
2019 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Options, Outstanding, beginning balance | 12,654,998 | ||
Number of Options, Granted | 1,420,878 | ||
Number of Options, Exercised | (1,800,924) | ||
Number of Options, Forfeited | (1,109,290) | ||
Number of Options, Outstanding, ending balance | 11,165,662 | 12,654,998 | |
Number of Options, Exercisable | 4,294,184 | ||
Number of Options, Vested and expected to vest | 11,165,662 | ||
Weighted average exercise price, Outstanding, beginning balance | $ 13.96 | ||
Weighted average exercise price, Granted | 19.56 | ||
Weighted average exercise price, Exercised | 11.48 | ||
Weighted average exercise price, Forfeited | 14.87 | ||
Weighted average exercise price, Outstanding, ending balance | 14.99 | $ 13.96 | |
Weighted average exercise price, Exercisable | 14.51 | ||
Weighted average exercise price, Vested and expected to vest | $ 14.99 | ||
Weighted Average Remaining Contractual Term, Outstanding (in years) | 8 years 3 months 18 days | 8 years 8 months 12 days | |
Weighted Average Remaining Contractual Term, Exercisable (In years) | 7 years 9 months 18 days | ||
Weighted Average Remaining Contractual Term, Vested and expected to vest (In years) | 8 years 3 months 18 days | ||
Aggregate Intrinsic Value, Outstanding | $ 93,091 | $ 39,633 | |
Aggregate Intrinsic Value, Exercisable | 38,208 | ||
Aggregate Intrinsic Value, Vested or expected to vest | $ 93,091 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Restricted Stock Awards and Restricted Stock Units (Details) - Restricted Stock Awards and Restricted Stock Units | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of Shares | |
Number of Shares, Unvested, beginning balance | shares | 186,425 |
Number of Shares, Granted | shares | 1,305,345 |
Number of Shares, Vested | shares | (233,781) |
Number of Shares, Forfeited | shares | (92,373) |
Number of Shares, Unvested, ending balance | shares | 1,165,616 |
Weighted-average grant-date fair value | |
Weighted Average Grant Date Fair Value per Share, Unvested, beginning balance | $ / shares | $ 6.95 |
Weighted Average Grant Date Fair Value per Share, Granted | $ / shares | 14.80 |
Weighted Average Grant Date Fair Value per Share, Vested | $ / shares | 7.04 |
Weighted Average Grant Date Fair Value per Share, Forfeited | $ / shares | 14.51 |
Weighted Average Grant Date Fair Value per Share, Unvested, ending balance | $ / shares | $ 15.13 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Jan. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||||||
Future milestone payments owed | $ 3,500,000 | $ 3,500,000 | ||||
Follow-on-offering | ||||||
Related Party Transaction [Line Items] | ||||||
Public offerings | 9,602,500 | |||||
Share price | $ 25 | |||||
Two Thousand Fourteen Adimab Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction expenses | 0 | $ 0 | 1,000 | $ 0 | ||
Adimab | ||||||
Related Party Transaction [Line Items] | ||||||
Accrued liabilities due to related parties | $ 0 | $ 0 | $ 0 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||||||
Net income (loss) | $ 126,597 | $ (55,147) | $ (52,171) | $ (52,704) | $ (45,326) | $ (40,019) | $ 19,279 | $ (138,049) |
Denominator: | ||||||||
Weighted average number of shares outstanding basic | 80,964,701 | 78,771,930 | 80,048,758 | 77,340,896 | ||||
Dilutive effect of outstanding common stock options, ESPP shares issuable, and restricted stock units | 4,267,989 | 2,822,496 | ||||||
Weighted Average Number of Shares Outstanding, Diluted, Total | 85,232,690 | 78,771,930 | 82,871,254 | 77,340,896 | ||||
Net income (loss) per share, basic | $ 1.56 | $ (0.67) | $ 0.24 | $ (1.78) | ||||
Net income (loss) per share, diluted | $ 1.49 | $ (0.67) | $ 0.23 | $ (1.78) |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 2,156,083 | 10,474,613 | 4,951,816 | 10,474,613 |
Restricted Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 0 | 415,521 | 0 | 415,521 |
Restricted Stock With Market Conditions Subject to Future Vesting | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 466,000 | 466,000 | ||
Options to Purchase Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 1,690,083 | 10,033,270 | 4,485,816 | 10,033,270 |
Shares Committed Under 2019 ESPP | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 0 | 25,822 | 0 | 25,822 |