Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 03, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
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 | 82,701,539 | |
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, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 184,231 | $ 329,152 |
Marketable securities | 574,075 | 406,099 |
Receivable from Collaboration partner | 6,491 | 7,391 |
Prepaid expenses and other current assets | 10,166 | 7,071 |
Total current assets | 774,963 | 749,713 |
Property and equipment, net | 26,289 | 27,330 |
Operating lease right-of-use assets | 28,530 | 30,569 |
Restricted cash | 1,472 | 1,472 |
Other assets | 5,784 | 5,574 |
Total assets | 837,038 | 814,658 |
Current liabilities: | ||
Accounts payable | 4,546 | 4,749 |
Accrued clinical supply costs | 5,444 | 8,748 |
Accrued liabilities | 23,225 | 27,460 |
Deferred revenue, current portion | 119,684 | 90,803 |
Operating lease liabilities, current portion | 7,990 | 7,795 |
Total current liabilities | 160,889 | 139,555 |
Deferred revenue, long-term portion | 386,357 | 334,415 |
Operating lease liabilities, long-term portion | 36,455 | 39,806 |
Other long-term liabilities | 233 | 158 |
Total liabilities | 583,934 | 513,934 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Common stock, $0.0001 par value; 200,000,000 shares authorized; 82,700,939 and 81,986,192 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 8 | 8 |
Additional paid-in capital | 787,097 | 748,036 |
Accumulated other comprehensive loss | (6,742) | (943) |
Accumulated deficit | (527,259) | (446,377) |
Total stockholders' equity | 253,104 | 300,724 |
Total liabilities and stockholders’ equity | $ 837,038 | $ 814,658 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
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 | 82,700,939 | 82,700,939 |
Common stock, shares outstanding | 81,986,192 | 81,986,192 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Total revenue | $ 14,852 | $ 182,413 | $ 119,177 | $ 193,091 |
Type of Revenue [Extensible List] | Collaboration Revenue [Member] | Collaboration Revenue [Member] | Collaboration Revenue [Member] | Collaboration Revenue [Member] |
Operating expenses: | ||||
Research and development | $ 48,348 | $ 43,066 | $ 155,925 | $ 136,617 |
General and administrative | 14,252 | 13,018 | 45,648 | 38,105 |
Total operating expenses | 62,600 | 56,084 | 201,573 | 174,722 |
Income (loss) from operations | (47,748) | 126,329 | (82,396) | 18,369 |
Other income, net | 2,333 | 268 | 4,047 | 910 |
Income (loss) before income taxes | (45,415) | 126,597 | (78,349) | 19,279 |
Income tax expense | 733 | 0 | 2,533 | 0 |
Net income (loss) | (46,148) | 126,597 | (80,882) | 19,279 |
Unrealized loss on marketable securities | (518) | (244) | (5,799) | (655) |
Comprehensive income (loss) | $ (46,666) | $ 126,353 | $ (86,681) | $ 18,624 |
Basic net income (loss) per share | $ (0.56) | $ 1.56 | $ (0.98) | $ 0.24 |
Diluted net income (loss) per share | $ (0.56) | $ 1.49 | $ (0.98) | $ 0.23 |
Shares used in computing net loss per share, basic | 82,602,842 | 80,964,701 | 82,367,936 | 80,048,758 |
Shares used in computing net loss per share, diluted | 82,602,842 | 85,232,690 | 82,367,936 | 82,871,254 |
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, 2020 | $ 267,530 | $ 8 | $ 676,956 | $ 614 | $ (410,048) |
Beginning balance (in shares) at Dec. 31, 2020 | 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 | ||||
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 | 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 (in shares) | 14,821 | 1,178,085 | 14,821 | ||
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 | 81,248,646 | ||||
Beginning balance at Dec. 31, 2021 | $ 300,724 | $ 8 | 748,036 | (943) | (446,377) |
Beginning balance (in shares) at Dec. 31, 2021 | 81,986,192 | 81,986,192 | |||
Exercise of stock options | $ 2,483 | 2,483 | |||
Exercise of stock options (in shares) | 234,117 | ||||
Vesting of restricted stock units | 104,368 | ||||
Stock-based compensation | 11,939 | 11,939 | |||
Unrealized loss on marketable securities | (2,992) | (2,992) | |||
Net income (loss) | (44,617) | (44,617) | |||
Ending balance at Mar. 31, 2022 | 267,537 | $ 8 | 762,458 | (3,935) | (490,994) |
Ending balance (in shares) at Mar. 31, 2022 | 82,324,677 | ||||
Beginning balance at Dec. 31, 2021 | $ 300,724 | $ 8 | 748,036 | (943) | (446,377) |
Beginning balance (in shares) at Dec. 31, 2021 | 81,986,192 | 81,986,192 | |||
Net income (loss) | $ (80,882) | ||||
Ending balance at Sep. 30, 2022 | $ 253,104 | $ 8 | 787,097 | (6,742) | (527,259) |
Ending balance (in shares) at Sep. 30, 2022 | 81,986,192 | 82,700,939 | |||
Beginning balance at Mar. 31, 2022 | $ 267,537 | $ 8 | 762,458 | (3,935) | (490,994) |
Beginning balance (in shares) at Mar. 31, 2022 | 82,324,677 | ||||
Exercise of stock options | 41 | 41 | |||
Exercise of stock options (in shares) | 4,244 | ||||
Vesting of restricted stock units | 101,076 | ||||
Purchase of common stock under employee stock purchase plan | 866 | 866 | |||
Purchase of common stock under employee stock purchase plan (in shares) | 114,904 | ||||
Stock-based compensation | 12,478 | 12,478 | |||
Unrealized loss on marketable securities | (2,289) | (2,289) | |||
Net income (loss) | 9,883 | 9,883 | |||
Ending balance at Jun. 30, 2022 | 288,516 | $ 8 | 775,843 | (6,224) | (481,111) |
Ending balance (in shares) at Jun. 30, 2022 | 82,544,901 | ||||
Exercise of stock options | 489 | 489 | |||
Exercise of stock options (in shares) | 54,278 | ||||
Vesting of restricted stock units | 101,760 | ||||
Stock-based compensation | 10,765 | 10,765 | |||
Unrealized loss on marketable securities | (518) | (518) | |||
Net income (loss) | (46,148) | (46,148) | |||
Ending balance at Sep. 30, 2022 | $ 253,104 | $ 8 | $ 787,097 | $ (6,742) | $ (527,259) |
Ending balance (in shares) at Sep. 30, 2022 | 81,986,192 | 82,700,939 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (80,882) | $ 19,279 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 4,320 | 4,735 |
Stock-based compensation | 35,183 | 28,079 |
Accretion of discounts on marketable securities | 269 | 1,586 |
Amortization of right-of-use assets | 2,039 | 1,434 |
Changes in operating assets and liabilities: | ||
Receivable from collaboration partner | 900 | (1,584) |
Prepaid expenses and other current assets | (3,095) | (382) |
Other assets | (210) | (3,099) |
Accounts payable | (383) | (347) |
Accrued liabilities and accrued clinical supply costs | (7,287) | (5,488) |
Deferred revenue | 80,823 | 306,909 |
Lease liabilities | (3,156) | (2,992) |
Other long-term liabilities | 75 | (314) |
Net cash provided by operating activities | 28,596 | 347,816 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (3,351) | (2,690) |
Purchase of marketable securities | (394,345) | (139,716) |
Maturities of marketable securities | 220,301 | 228,800 |
Sale of marketable secuirities | 0 | 10,696 |
Net cash provided by (used in) investing activities | (177,395) | 97,090 |
Cash flows from financing activities: | ||
Proceeds from the exercise of options to purchase common stock | 3,013 | 20,688 |
Purchase of common stock under employee stock purchase plan | 865 | 969 |
Net cash provided by financing activities | 3,878 | 21,657 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (144,921) | 466,563 |
Cash, cash equivalents, and restricted cash at beginning of period | 330,624 | 51,441 |
Cash, cash equivalents, and restricted cash at end of period | 185,703 | 518,004 |
Non-cash investing and financing activities: | ||
Property and equipment purchases included in accounts payable and accrued liabilities | $ 633 | $ 236 |
The Company and Liquidity
The Company and Liquidity | 9 Months Ended |
Sep. 30, 2022 | |
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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
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 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, 2021, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K filed with the SEC on February 24, 2022. 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 financial institutions. 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. Restricted cash as of September 30, 2022 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 2022 2021 (In thousands) Cash and cash equivalents $ 184,231 $ 516,532 Restricted cash 1,472 1,472 Total cash, cash equivalents, and restricted cash $ 185,703 $ 518,004 Marketable Securities All marketable securities have been classified as “available-for-sale” and are carried at fair value, based upon quoted market prices. The Company considers its available-for-sale portfolio as available for use in current operations. Accordingly, the Company may classify certain investments as short-term marketable securities, even though the stated maturity date may be one year or more beyond the current balance sheet date. For available-for-sale debt securities, unrealized gains, net of any related tax effects, are excluded from earnings and are included in other comprehensive income and reported as a separate component of stockholders’ equity until realized. The Company assesses available-for-sale debt securities on a quarterly basis to see if any unrealized loss is due to credit-related factors. Factors considered in determining whether an impairment is credit-related include the extent to which the investment’s fair value is less than its cost basis, declines in published credit ratings, changes in interest rates, and any other adverse factors related to the security. If it is determined that a credit-related impairment exists, the Company will measure the credit loss based on a discounted cash flows model. Credit-related impairments on available-for-sale debt securities are recognized as an allowance for credit losses with a corresponding adjustment to other income, net in the Company’s consolidated statement of operations. The unrealized loss position that is not credit-related is recorded, net of any related tax effects, in other comprehensive income until realized. There were no credit-related losses recognized for the periods presented. The cost of securities sold is based on the specific-identification method. The amortized cost of securities is adjusted for amortization of premiums and accretion of discounts to maturity. In accordance with our investment policy, management invests in money market funds, U.S. treasury securities, and corporate bonds. The Company has not experienced any losses on its deposits of cash, cash equivalents, and marketable securities. Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, marketable securities, receivable from collaboration partner, current and noncurrent prepaid expenses, 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 performance obligation 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 performance obligation. 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 is 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 that vest based only on a service condition is recognized on a straight-line basis. In 2021, the Company began granting RSUs with market conditions to certain executives. The fair value of RSUs with market conditions is 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 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 comprehensive income (loss) was net unrealized loss on marketable securities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 Fair Value Amortized Unrealized Unrealized Fair Market (In thousands) Money market funds Level 1 $ 97,175 $ — $ — $ 97,175 U.S. government treasury securities Level 1 580,817 — ( 6,742 ) 574,075 Total cash equivalents and marketable $ 677,992 $ — $ ( 6,742 ) $ 671,250 December 31, 2021 Fair Value Amortized Unrealized Unrealized Fair Market (In thousands) Money market funds Level 1 $ 218,451 $ — $ — $ 218,451 U.S. government treasury securities Level 1 407,041 8 ( 950 ) 406,099 Total cash equivalents and marketable $ 625,492 $ 8 $ ( 950 ) $ 624,550 The Company classifies marketable securities available to fund current operations as current assets. As of September 30, 2022 , the remaining contractual maturities of $ 671.3 million of investments were less than one year. 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, 2022 , the Company considered any unrealized losses on our marketable securities to be driven by factors other than credit risk. |
Collaboration Agreements
Collaboration Agreements | 9 Months Ended |
Sep. 30, 2022 | |
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 collaborate on the global development and commercialization of progranulin-elevating monoclonal antibodies, including AL001 (latozinemab) and AL101 (GSK Agreement). The GSK Agreement was made effective on August 17, 2021 . Under the terms of the GSK Agreement, the Company received $ 700 million in upfront payments, of which $ 500 million was received in August 2021 and $ 200 million was received in January 2022 . In addition, based on the development and commercialization plan for latozinemab 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 latozinemab and AL101. Outside of the United States, the Company will be eligible for double-digit tiered royalties. The Company and GSK will jointly develop latozinemab and AL101. Under the terms of the GSK Agreement, the Company will lead the global clinical development of latozinemab 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. Collaboration revenue under the GSK Agreement during the three and nine months ended September 30, 2022 was $ 10.7 million and $ 53.1 million, respectively, all of which was included in deferred revenue at the beginning of the period. Collaboration revenue during the three and nine months ended September 30, 2021 was $ 179.8 million. The deferred revenue related to the GSK Agreement was $ 454.8 million and $ 307.9 million as of September 30, 2022 and December 31, 2021, respectively. 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. For the three and nine months ended September 30, 2022 , the Company recognized a reduction of research and development expense of $ 3.4 million and $ 12.1 million, respectively, under the GSK Agreement. For 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 paid $ 205 million in upfront payments, of which $ 5 million and $ 200 million were received by the Company in October 2017 and January 2018, respectively. The Company was to perform research and development services for the two programs through the end of Phase 2 clinical trials. AbbVie decided to terminate one of the two collaboration programs, the CD33 collaboration program, after AbbVie and Alector collaboratively reviewed next steps for AL003, the asset being developed under that program, and concluded that further development of AL003 was not warranted. AbbVie provided written notice to terminate the CD33 collaboration program on June 30, 2022. The Company will no longer continue development of this program and will not be eligible for any future milestones related to that program from AbbVie. The Company continues to develop the AL002 program under the AbbVie Agreement. After completion of the Phase 2 clinical trial for AL002, AbbVie will then have the exclusive right to exercise an option under the AbbVie Agreement with the Company for $ 250 million. If AbbVie exercises its option for the AL002 program, AbbVie would take over the development of the product candidates and program costs will be split between the parties. The Company would also share in profits and losses upon commercialization of any products. However, following AbbVie’s exercise of its option for the AL002 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 related to the initiation of certain clinical studies and regulatory approval for up to three indications. The Company assessed its collaboration agreement with AbbVie in the context of the delivery of the research and development services. Collaboration revenue under the AbbVie Agreement during the three and nine months ended September 30, 2022 was $ 4.2 million and $ 66.1 million, respectively, the entire amount of which was included in deferred revenue at the beginning of the period. For the three and nine months ended September 30, 2021 , collaboration revenue 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 related to the AbbVie Agreement was $ 51.2 million and $ 117.4 million as of September 30, 2022 and December 31, 2021, respectively. The deferred revenue is expected to be recognized over the research and development period of the AL002 program through the completion of Phase 2 clinical trials. 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 would pay the Company up to $ 11.5 million in development milestones, $ 112.5 million in sales milestones, and future royalties on sales, and the Company would retain the rights to develop and commercialize AL008 outside of China. The Company 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 were not included in the transaction price, as all these amounts were fully constrained as of September 30, 2022. As of September 30, 2022 , no revenue has been recognized and no payments have been received under the Innovent Agreement. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
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 2022 2021 2022 2021 (In thousands) (In thousands) Research and development $ 4,801 $ 5,414 $ 19,335 $ 14,902 General and administrative 5,964 4,787 15,848 13,177 Total stock-based compensation $ 10,765 $ 10,201 $ 35,183 $ 28,079 2019 Equity Incentive Plan and 2022 Inducement Plan On January 1, 2022, 4,099,309 shares were added to the shares reserved for issuance under the 2019 Equity Incentive Plan (2019 Plan) pursuant to the annual automatic increase. As of September 30, 2022 , the Company had reserved 20,567,583 shares of common stock for issuance under the 2019 Plan, of which 7,299,300 shares were available for issuance of future awards. On January 1, 2022, the Company adopted the 2022 Inducement Plan (Inducement Plan) and reserved 1,630,000 shares for issuance under the Inducement Plan for the grant of equity-based awards to individuals who were not previously employees or non-employee directors of the Company. On September 22, 2022, the Company increased the number of shares available for issuance under the 2022 Inducement Plan to a total of 3,300,000 shares. As of September 30, 2022 , 1,970,750 shares were available for issuance of future awards under the Inducement Plan. Option activity is shown below: Number of Weighted Weighted Aggregate (In years) (In thousands) Outstanding as of December 31, 2021 11,644,070 $ 16.41 Granted 3,672,305 13.11 Exercised ( 292,639 ) 10.30 Forfeited ( 1,837,927 ) 19.22 Outstanding as of September 30, 2022 13,185,809 $ 15.23 $ 8.0 $ 2,060 Exercisable as of September 30, 2022 6,415,889 $ 14.74 $ 7.1 $ 1,510 Vested and expected to vest as of September 30, 13,185,809 $ 15.23 $ 8.0 $ 2,060 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, 2022 , total unrecognized stock-based compensation related to unvested stock options was $ 67.2 million, which the Company expects to recognize over a remaining weighted-average period of 2.7 years. Restricted Stock Activity Activity for the RSUs with market conditions and service conditions, respectively is shown below: Number of Weighted Unvested restricted stock units as of December 31, 2021 1,373,874 $ 18.35 Granted 612,912 11.83 Vested ( 307,204 ) 19.27 Forfeited ( 275,545 ) 18.20 Unvested restricted stock units as of 1,404,037 $ 15.33 As of September 30, 2022 , total unrecognized stock-based compensation related to unvested restricted stock units was $ 17.3 million, which the Company expects to recognize over a remaining weighted-average period of 1.9 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. On January 1, 2022, 591,397 shares were added to the shares reserved for issuance under the 2019 ESPP pursuant to the annual automatic increase. As of September 30, 2022 , the Company has reserved for issuance 2,864,225 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes For the three and nine months ended September 30, 2022 , the Company's estimated effective tax rate was ( 1.3 )% and ( 1.3 )%, respectively. For the three and nine months ended September 30, 2021 , the Company's effective tax rate was zero . Section 174 of the Internal Revenue Code requires capitalization of research and development expenses to then be amortized over five years for U.S. based research and 15 years for research conducted outside of the U.S., which limits the amount of research and development expenses that can be used to offset income in the current year. The difference between the effective tax rate as of September 30, 2022 and 2021, respectively, and the U.S. federal statutory rate of 21 % was primarily due to the anticipatory recognition of a certain amount of current year income tax as a result of this capitalization effective this year. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions In 2014, the Company entered into a collaboration agreement with Adimab, LLC (Adimab) under which the Company is developing antibodies discovered by Adimab in its latozinemab and AL101 programs and is developing antibodies optimized by Adimab in its AL002 program (2014 Adimab Agreement). The 2014 Adimab Agreement also provided for the Company’s development of antibodies optimized by Adimab in its AL003 program. However, AbbVie decided to terminate the CD33 collaboration program, after AbbVie and Alector collaboratively reviewed next steps for AL003, the asset being developed under that program, and concluded that further development of AL003 was not warranted. In August 2019, the Company signed a collaboration agreement with Adimab for research and development of additional antibodies (2019 Adimab Agreement). In December 2021, the Company signed another collaboration agreement with Adimab for antibody engineering research programs (2021 Adimab Agreement). The former Chief Executive Officer of Adimab through May 2022 is a Co-founder and Chairperson of the board of directors of Alector. For the three and nine months ended September 30, 2022 , the Company incurred expenses of less than $ 0.1 million and $ 0.2 million, respectively. 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. The Company had zero accrued liabilities due to Adimab as of September 30, 2022 and December 31, 2021 . Under the 2014 Adimab Agreement, the Company has made milestone payments and will also owe low- to mid- single-digit royalty payments for commercial sales of the product candidate. Under the 2019 and 2021 Adimab Agreements, the Company will owe certain milestone payments and low single-digit royalty payments for commercial sales of covered product candidates. |
Net income (Loss) Per Share
Net income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net income (Loss) Per Share | 8. 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 2022 2021 2022 2021 Numerator: Net income (loss) $ ( 46,148 ) $ 126,597 $ ( 80,882 ) $ 19,279 Denominator: Weighted-average number of shares outstanding basic, 82,602,842 80,964,701 82,367,936 80,048,758 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 82,602,842 85,232,690 82,367,936 82,871,254 Net income (loss) per share, basic $ ( 0.56 ) $ 1.56 $ ( 0.98 ) $ 0.24 Net income (loss) per share, diluted $ ( 0.56 ) $ 1.49 $ ( 0.98 ) $ 0.23 The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net income (loss) per share for the periods presented due to their anti-dilutive effect: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Restricted stock subject to future vesting 1,404,037 466,000 1,404,037 466,000 Options to purchase common stock 13,185,809 1,690,083 13,185,809 4,485,816 Shares committed under 2019 ESPP 100,385 — 100,385 — Total 14,690,231 2,156,083 14,690,231 4,951,816 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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 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, 2021, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K filed with the SEC on February 24, 2022. |
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 financial institutions. 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. Restricted cash as of September 30, 2022 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 2022 2021 (In thousands) Cash and cash equivalents $ 184,231 $ 516,532 Restricted cash 1,472 1,472 Total cash, cash equivalents, and restricted cash $ 185,703 $ 518,004 |
Marketable Securities Policy | Marketable Securities All marketable securities have been classified as “available-for-sale” and are carried at fair value, based upon quoted market prices. The Company considers its available-for-sale portfolio as available for use in current operations. Accordingly, the Company may classify certain investments as short-term marketable securities, even though the stated maturity date may be one year or more beyond the current balance sheet date. For available-for-sale debt securities, unrealized gains, net of any related tax effects, are excluded from earnings and are included in other comprehensive income and reported as a separate component of stockholders’ equity until realized. The Company assesses available-for-sale debt securities on a quarterly basis to see if any unrealized loss is due to credit-related factors. Factors considered in determining whether an impairment is credit-related include the extent to which the investment’s fair value is less than its cost basis, declines in published credit ratings, changes in interest rates, and any other adverse factors related to the security. If it is determined that a credit-related impairment exists, the Company will measure the credit loss based on a discounted cash flows model. Credit-related impairments on available-for-sale debt securities are recognized as an allowance for credit losses with a corresponding adjustment to other income, net in the Company’s consolidated statement of operations. The unrealized loss position that is not credit-related is recorded, net of any related tax effects, in other comprehensive income until realized. There were no credit-related losses recognized for the periods presented. The cost of securities sold is based on the specific-identification method. The amortized cost of securities is adjusted for amortization of premiums and accretion of discounts to maturity. In accordance with our investment policy, management invests in money market funds, U.S. treasury securities, and corporate bonds. The Company has not experienced any losses on its deposits of cash, cash equivalents, and marketable securities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, marketable securities, receivable from collaboration partner, current and noncurrent prepaid expenses, 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 performance obligation 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 performance obligation. 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 is 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 that vest based only on a service condition is recognized on a straight-line basis. In 2021, the Company began granting RSUs with market conditions to certain executives. The fair value of RSUs with market conditions is 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 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 comprehensive income (loss) was net unrealized loss on marketable securities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 2022 2021 (In thousands) Cash and cash equivalents $ 184,231 $ 516,532 Restricted cash 1,472 1,472 Total cash, cash equivalents, and restricted cash $ 185,703 $ 518,004 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 Fair Value Amortized Unrealized Unrealized Fair Market (In thousands) Money market funds Level 1 $ 97,175 $ — $ — $ 97,175 U.S. government treasury securities Level 1 580,817 — ( 6,742 ) 574,075 Total cash equivalents and marketable $ 677,992 $ — $ ( 6,742 ) $ 671,250 December 31, 2021 Fair Value Amortized Unrealized Unrealized Fair Market (In thousands) Money market funds Level 1 $ 218,451 $ — $ — $ 218,451 U.S. government treasury securities Level 1 407,041 8 ( 950 ) 406,099 Total cash equivalents and marketable $ 625,492 $ 8 $ ( 950 ) $ 624,550 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 2022 2021 2022 2021 (In thousands) (In thousands) Research and development $ 4,801 $ 5,414 $ 19,335 $ 14,902 General and administrative 5,964 4,787 15,848 13,177 Total stock-based compensation $ 10,765 $ 10,201 $ 35,183 $ 28,079 |
Summary of Options to Purchase Common Stock | Number of Weighted Weighted Aggregate (In years) (In thousands) Outstanding as of December 31, 2021 11,644,070 $ 16.41 Granted 3,672,305 13.11 Exercised ( 292,639 ) 10.30 Forfeited ( 1,837,927 ) 19.22 Outstanding as of September 30, 2022 13,185,809 $ 15.23 $ 8.0 $ 2,060 Exercisable as of September 30, 2022 6,415,889 $ 14.74 $ 7.1 $ 1,510 Vested and expected to vest as of September 30, 13,185,809 $ 15.23 $ 8.0 $ 2,060 |
Summary of Restricted Stock Awards and Restricted Stock Units | Activity for the RSUs with market conditions and service conditions, respectively is shown below: Number of Weighted Unvested restricted stock units as of December 31, 2021 1,373,874 $ 18.35 Granted 612,912 11.83 Vested ( 307,204 ) 19.27 Forfeited ( 275,545 ) 18.20 Unvested restricted stock units as of 1,404,037 $ 15.33 |
Net income (Loss) Per Share (Ta
Net income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share | The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net income (loss) per share for the periods presented due to their anti-dilutive effect: Three Months Ended Nine Months Ended 2022 2021 2022 2021 Restricted stock subject to future vesting 1,404,037 466,000 1,404,037 466,000 Options to purchase common stock 13,185,809 1,690,083 13,185,809 4,485,816 Shares committed under 2019 ESPP 100,385 — 100,385 — Total 14,690,231 2,156,083 14,690,231 4,951,816 |
Schedule of Computation of Basic and Diluted | 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 2022 2021 2022 2021 Numerator: Net income (loss) $ ( 46,148 ) $ 126,597 $ ( 80,882 ) $ 19,279 Denominator: Weighted-average number of shares outstanding basic, 82,602,842 80,964,701 82,367,936 80,048,758 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 82,602,842 85,232,690 82,367,936 82,871,254 Net income (loss) per share, basic $ ( 0.56 ) $ 1.56 $ ( 0.98 ) $ 0.24 Net income (loss) per share, diluted $ ( 0.56 ) $ 1.49 $ ( 0.98 ) $ 0.23 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 184,231 | $ 329,152 | $ 516,532 | |
Restricted cash | 1,472 | 1,472 | 1,472 | |
Total cash, cash equivalents, and restricted cash | $ 185,703 | $ 330,624 | $ 518,004 | $ 51,441 |
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, 2022 | Dec. 31, 2021 |
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 | $ 97,175 | $ 218,451 |
Cash equivalents and marketable securities, Unrealized Gains | 0 | 0 |
Cash equivalents and marketable securities, Unrealized Losses | 0 | 0 |
Cash equivalents and marketable securities, Fair Market Value | 97,175 | 218,451 |
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 | 580,817 | 407,041 |
Cash equivalents and marketable securities, Unrealized Gains | 0 | 8 |
Cash equivalents and marketable securities, Unrealized Losses | (6,742) | (950) |
Cash equivalents and marketable securities, Fair Market Value | 574,075 | 406,099 |
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 | 677,992 | 625,492 |
Cash equivalents and marketable securities, Unrealized Gains | 0 | 8 |
Cash equivalents and marketable securities, Unrealized Losses | (6,742) | (950) |
Cash equivalents and marketable securities, Fair Market Value | $ 671,250 | $ 624,550 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Fair Value Disclosures [Abstract] | |
Remaining contractual maturities of investments were less than one year | $ 671.3 |
Collaboration Agreements - Addi
Collaboration Agreements - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Aug. 17, 2021 USD ($) | Jul. 01, 2021 USD ($) | Jan. 31, 2022 USD ($) | Jan. 31, 2018 USD ($) | Oct. 31, 2017 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Collaboration revenue | $ 179,800,000 | $ 179,800,000 | ||||||||
Deferred revenue | $ 454,800 | $ 454,800 | $ 307,900 | |||||||
Research and development expense | 48,348,000 | 43,066,000 | $ 155,925,000 | 136,617,000 | ||||||
GlaxoSmithKline plc | ||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Effective date of agreement | Aug. 17, 2021 | |||||||||
Upfront payments | $ 700,000,000 | |||||||||
Upfront payment received | $ 500,000,000 | $ 200,000,000 | ||||||||
Percentage of development cost | 0.60 | |||||||||
Collaboration revenue | 10,700,000 | $ 53,100,000 | ||||||||
Research and development expense | 3,400,000 | 1,600,000 | 12,100,000 | 1,600,000 | ||||||
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 | 1,500,000,000 | $ 1,500,000,000 | ||||||||
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 | $ 205,000,000 | |||||||||
Upfront payment received | $ 200,000,000 | 5,000,000 | ||||||||
Exclusive option rights exercised for each program | 250,000,000 | |||||||||
Collaboration revenue | 4,200,000 | $ 2,600 | $ 66,100,000 | $ 13,300,000 | ||||||
Deferred revenue | $ 51,200,000 | 51,200,000 | $ 117,400,000 | |||||||
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 | $ 242,800,000 | |||||||||
Innovent | ||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||
Collaboration revenue | 0 | |||||||||
Development milestone | 11,500,000 | |||||||||
Sales milestone | $ 112,500,000 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 10,765 | $ 10,201 | $ 35,183 | $ 28,079 |
Research and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | 4,801 | 5,414 | 19,335 | 14,902 |
General and Administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 5,964 | $ 4,787 | $ 15,848 | $ 13,177 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 22, 2022 | Sep. 30, 2022 | Jan. 01, 2022 | |
Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized stock-based compensation | $ 17.3 | ||
Expected weighted average period | 1 year 10 months 24 days | ||
2019 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected weighted average period | 2 years 8 months 12 days | ||
Common stock reserved for issuance | 20,567,583 | 4,099,309 | |
Common stock, shares available for issuance | 7,299,300 | ||
Unrecognized stock-based compensation | $ 67.2 | ||
2019 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for issuance | 2,864,225 | 591,397 | |
Purchase price of common stock, percentage | 85% | ||
Subsequent offering period | 6 months | ||
2022 Inducement Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock reserved for issuance | 1,630,000 | ||
Number of additional shares authorized (in shares) | 3,300,000 | ||
Common stock, shares available for issuance | 1,970,750 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Options to Purchase Common Stock (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 shares | Sep. 30, 2022 USD ($) $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Options, Exercised | (14,821) | |
2019 Equity Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Options, Outstanding, beginning balance | 11,644,070 | |
Number of Options, Granted | 3,672,305 | |
Number of Options, Exercised | (292,639) | |
Number of Options, Forfeited | (1,837,927) | |
Number of Options, Outstanding, ending balance | 13,185,809 | |
Number of Options, Exercisable | 6,415,889 | |
Number of Options, Vested and expected to vest | 13,185,809 | |
Weighted average exercise price, Outstanding, beginning balance | $ / shares | $ 16.41 | |
Weighted average exercise price, Granted | $ / shares | 13.11 | |
Weighted average exercise price, Exercised | $ / shares | 10.30 | |
Weighted average exercise price, Forfeited | $ / shares | 19.22 | |
Weighted average exercise price, Outstanding, ending balance | $ / shares | 15.23 | |
Weighted average exercise price, Exercisable | $ / shares | 14.74 | |
Weighted average exercise price, Vested and expected to vest | $ / shares | $ 15.23 | |
Weighted Average Remaining Contractual Term, Outstanding (in years) | 8 years | |
Weighted Average Remaining Contractual Term, Exercisable (In years) | 7 years 1 month 6 days | |
Weighted Average Remaining Contractual Term, Vested and expected to vest (In years) | 8 years | |
Aggregate Intrinsic Value, Outstanding | $ | $ 2,060 | |
Aggregate Intrinsic Value, Exercisable | $ | 1,510 | |
Aggregate Intrinsic Value, Vested or expected to vest | $ | $ 2,060 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Restricted Stock Awards and Restricted Stock Units (Details) - Restricted Stock Units | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Number of Shares | |
Number of Shares, Unvested, beginning balance | shares | 1,373,874 |
Number of Shares, Granted | shares | 612,912 |
Number of Shares, Vested | shares | (307,204) |
Number of Shares, Forfeited | shares | (275,545) |
Number of Shares, Unvested, ending balance | shares | 1,404,037 |
Weighted-average grant-date fair value | |
Weighted Average Grant Date Fair Value per Share, Unvested, beginning balance | $ / shares | $ 18.35 |
Weighted Average Grant Date Fair Value per Share, Granted | $ / shares | 11.83 |
Weighted Average Grant Date Fair Value per Share, Vested | $ / shares | 19.27 |
Weighted Average Grant Date Fair Value per Share, Forfeited | $ / shares | 18.20 |
Weighted Average Grant Date Fair Value per Share, Unvested, ending balance | $ / shares | $ 15.33 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Loss Carryforwards [Line Items] | ||||
Federal statutory income tax rate | 21% | |||
Effective tax rate | 1.30% | 1.30% | ||
Internal Revenue Service IRS [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Effective tax rate | 0% | 0% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Two Thousand Fourteen Adimab Agreement | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expenses | $ 0.2 | $ 0 | ||
Future milestone payments owed | $ 1 | |||
Two Thousand Fourteen Adimab Agreement | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expenses | $ 0.1 | |||
Adimab | ||||
Related Party Transaction [Line Items] | ||||
Accrued liabilities due to related parties | $ 0 | $ 0 | $ 0 |
Net income (Loss )Per Share - S
Net income (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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 14,690,231 | 2,156,083 | 14,690,231 | 4,951,816 |
Restricted Stock subject to future vesting | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 1,404,037 | 466,000 | 1,404,037 | 466,000 |
Options to Purchase Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 13,185,809 | 1,690,083 | 13,185,809 | 4,485,816 |
Shares Committed Under 2019 ESPP | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 100,385 | 0 | 100,385 | 0 |
Net income (Loss )Per Share -_2
Net income (Loss )Per Share - Schedule of Computation of Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator Earning Per Share [Abstract] | ||||||||
Net income (loss) | $ (46,148) | $ 9,883 | $ (44,617) | $ 126,597 | $ (55,147) | $ (52,171) | $ (80,882) | $ 19,279 |
Denominator Earnings Per Share [Abstract] | ||||||||
Weighted-average number of shares outstanding basic | 82,602,842 | 80,964,701 | 82,367,936 | 80,048,758 | ||||
Dilutive effect of outstanding common stock options, ESPP shares issuable, and restricted stock units | 0 | 4,267,989 | 0 | 2,822,496 | ||||
Weighted Average Number of Shares Outstanding, Diluted, Total | 82,602,842 | 85,232,690 | 82,367,936 | 82,871,254 | ||||
Net income (loss) per share, basic | $ (0.56) | $ 1.56 | $ (0.98) | $ 0.24 | ||||
Net loss per share, diluted | $ (0.56) | $ 1.49 | $ (0.98) | $ 0.23 |