Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 04, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38067 | |
Entity Registrant Name | Verona Pharma plc | |
Entity Incorporation, State or Country Code | X0 | |
Entity Tax Identification Number | 98-1489389 | |
Entity Address, Address Line One | 3 More London Riverside | |
Entity Address, City or Town | London | |
Entity Address, Postal Zip Code | SE1 2RE | |
Entity Address, Country | GB | |
Country Region | 44 | |
City Area Code | 203 | |
Local Phone Number | 283 4200 | |
Title of 12(b) Security | Ordinary shares, nominal value £0.05 per share* | |
Trading Symbol | VRNA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 480,291,822 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001657312 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 146,035 | $ 187,986 |
Accounts receivable | 25,002 | 0 |
Prepaid expenses | 9,817 | 4,538 |
Tax and tax incentive receivables | 14,108 | 8,260 |
Contract asset | 4,001 | 0 |
Equity interest receivable | 15,000 | 0 |
Other current assets | 2,320 | 1,720 |
Total current assets | 216,283 | 202,504 |
Non-current assets: | ||
Furniture and equipment, net | 89 | 107 |
Goodwill | 545 | 545 |
Right-of-use assets | 1,585 | 1,050 |
Total non-current assets | 2,219 | 1,702 |
Total assets | 218,502 | 204,206 |
Current liabilities: | ||
Accounts payable | 34 | 178 |
Accrued expenses | 17,188 | 10,863 |
Deferred revenue | 40,051 | 0 |
Operating lease liability | 749 | 798 |
Warrants | 42 | 2,246 |
Other current liabilities | 300 | 118 |
Total current liabilities | 58,364 | 14,203 |
Non-current liabilities: | ||
Term loan | 4,767 | 4,635 |
Operating lease liability | 974 | 514 |
Total non-current liabilities | 5,741 | 5,149 |
Total liabilities | 64,105 | 19,352 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Ordinary £0.05 par value shares; 488,739,150 and 488,304,446 issued, and 471,839,302 and 463,304,446 outstanding, at June 30, 2021 and December 31, 2020, respectively | 31,824 | 31,794 |
Additional paid-in capital | 379,282 | 366,411 |
Ordinary shares held in treasury | (843) | (1,700) |
Accumulated other comprehensive loss | (4,601) | (4,601) |
Accumulated deficit | (251,265) | (207,050) |
Total shareholders' equity | 154,397 | 184,854 |
Total liabilities and shareholders' equity | $ 218,502 | $ 204,206 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - £ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in pounds sterling per share) | £ 0.05 | £ 0.05 |
Common stock, issued (in shares) | 488,739,150 | 488,304,446 |
Common stock, outstanding (in shares) | 471,839,302 | 463,304,446 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating expenses | ||||
Research and development | $ 20,563 | $ 7,811 | $ 34,137 | $ 15,433 |
General and administrative | 7,985 | 3,172 | 17,267 | 10,034 |
Total operating expenses | 28,548 | 10,983 | 51,404 | 25,467 |
Operating loss | (28,548) | (10,983) | (51,404) | (25,467) |
Other income / (expense) | ||||
Benefit from research and development tax credit | 3,836 | 1,786 | 5,906 | 3,471 |
Interest income | 3 | 34 | 7 | 103 |
Interest expense | (85) | 0 | (169) | 0 |
Fair value movement on warrants | 2,711 | 89 | 2,204 | 231 |
Foreign exchange gain | 40 | 51 | 203 | 344 |
Total other income, net | 6,505 | 1,960 | 8,151 | 4,149 |
Loss before income taxes | (22,043) | (9,023) | (43,253) | (21,318) |
Income tax expense | (25) | (15) | (105) | (66) |
Net loss | (22,068) | (9,038) | (43,358) | (21,384) |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | 0 | (164) | 0 | (2,321) |
Total comprehensive loss attributable to shareholders of the Company | $ (22,068) | $ (9,202) | $ (43,358) | $ (23,705) |
Loss per share, basic (in dollars per share) | $ (0.05) | $ (0.08) | $ (0.09) | $ (0.20) |
Loss per share, diluted (in dollars per share) | $ (0.05) | $ (0.08) | $ (0.09) | $ (0.20) |
Weighted-average shares outstanding, diluted (in shares) | 470,786,767 | 106,360,580 | 469,036,978 | 105,908,648 |
Weighted-average shares outstanding, basic (in shares) | 470,786,767 | 106,360,580 | 469,036,978 | 105,908,648 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands | Total | Ordinary shares | Additional paid-in capital | Ordinary shares held in treasury | Accumulated other comprehensive loss | Accumulated deficit |
Beginning balance (in shares) at Dec. 31, 2019 | 105,326,638 | |||||
Beginning balance at Dec. 31, 2019 | $ 42,741 | $ 7,265 | $ 179,535 | $ (2,280) | $ (141,779) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (12,346) | (12,346) | ||||
Retranslation of foreign operations | (2,157) | (2,157) | ||||
Share options exercised during the period (in shares) | 887,080 | |||||
Share options exercised during the period | 52 | $ 52 | ||||
Share-based compensation | 1,867 | 1,867 | ||||
Ending balance (in shares) at Mar. 31, 2020 | 106,213,718 | |||||
Ending balance at Mar. 31, 2020 | 30,157 | $ 7,317 | 181,402 | (4,437) | (154,125) | |
Beginning balance (in shares) at Dec. 31, 2019 | 105,326,638 | |||||
Beginning balance at Dec. 31, 2019 | 42,741 | $ 7,265 | 179,535 | (2,280) | (141,779) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (21,384) | |||||
Retranslation of foreign operations | (2,321) | |||||
Ending balance (in shares) at Jun. 30, 2020 | 106,481,006 | |||||
Ending balance at Jun. 30, 2020 | 21,853 | $ 7,333 | 182,352 | (4,601) | (163,231) | |
Beginning balance (in shares) at Mar. 31, 2020 | 106,213,718 | |||||
Beginning balance at Mar. 31, 2020 | 30,157 | $ 7,317 | 181,402 | (4,437) | (154,125) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (9,038) | (9,038) | ||||
Retranslation of foreign operations | (164) | (164) | ||||
Share options exercised during the period (in shares) | 267,288 | |||||
Share options exercised during the period | (52) | $ 16 | (68) | |||
Share-based compensation | 950 | 950 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 106,481,006 | |||||
Ending balance at Jun. 30, 2020 | $ 21,853 | $ 7,333 | 182,352 | (4,601) | (163,231) | |
Beginning balance (in shares) at Dec. 31, 2020 | 463,304,446 | 488,304,446 | ||||
Beginning balance at Dec. 31, 2020 | $ 184,854 | $ 31,794 | 366,411 | $ (1,700) | (4,601) | (207,050) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (21,290) | (21,290) | ||||
Restricted share units vested | 0 | 30 | (30) | |||
Share-based compensation | 8,850 | 8,850 | ||||
Ending balance (in shares) at Mar. 31, 2021 | 488,304,446 | |||||
Ending balance at Mar. 31, 2021 | $ 172,414 | $ 31,794 | 375,261 | (1,670) | (4,601) | (228,370) |
Beginning balance (in shares) at Dec. 31, 2020 | 463,304,446 | 488,304,446 | ||||
Beginning balance at Dec. 31, 2020 | $ 184,854 | $ 31,794 | 366,411 | (1,700) | (4,601) | (207,050) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (43,358) | |||||
Retranslation of foreign operations | $ 0 | |||||
Ending balance (in shares) at Jun. 30, 2021 | 471,839,302 | 488,739,150 | ||||
Ending balance at Jun. 30, 2021 | $ 154,397 | $ 31,824 | 379,282 | (843) | (4,601) | (251,265) |
Beginning balance (in shares) at Mar. 31, 2021 | 488,304,446 | |||||
Beginning balance at Mar. 31, 2021 | 172,414 | $ 31,794 | 375,261 | (1,670) | (4,601) | (228,370) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (22,068) | (22,068) | ||||
Common shares withheld for taxes on vested stock awards | (3,782) | $ (3,782) | ||||
Retranslation of foreign operations | 0 | |||||
Restricted share units vested | 0 | 827 | (827) | |||
Share-based compensation | 7,450 | 7,450 | ||||
Stock issued during period (in shares) | 434,704 | |||||
Stock issued during period | $ 383 | $ 30 | 353 | |||
Ending balance (in shares) at Jun. 30, 2021 | 471,839,302 | 488,739,150 | ||||
Ending balance at Jun. 30, 2021 | $ 154,397 | $ 31,824 | $ 379,282 | $ (843) | $ (4,601) | $ (251,265) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities: | ||
Net loss | $ (43,358) | $ (21,384) |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Foreign exchange gain | (186) | (214) |
Amortization of debt issue costs | 70 | 0 |
Accretion of redemption premium on debt | 63 | 0 |
Fair value movement on warrants | (2,204) | (231) |
Impairment of right-of-use asset | 0 | 289 |
Share-based compensation | 16,300 | 2,817 |
Depreciation and amortization | 305 | 315 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (25,002) | 0 |
Equity interest receivable | (15,000) | 0 |
Prepaid expenses | (5,279) | (2,873) |
Tax and tax incentive receivables | (5,848) | 5,894 |
Other current assets | (600) | 713 |
Non-current assets | (4,823) | (716) |
Accounts payable | (144) | (953) |
Accrued expenses | 6,325 | (561) |
Lease liabilities | 393 | 406 |
Deferred revenue | 40,051 | 0 |
Other liabilities | 182 | 213 |
Net cash used in operating activities | (38,756) | (16,285) |
Cash flows from investing activities: | ||
Purchases of furniture and equipment | 0 | (5) |
Sale of short-term investments | 0 | 9,792 |
Net cash provided by investing activities | 0 | 9,787 |
Cash flows from financing activities: | ||
Payments of withholding taxes from share-based awards | (3,782) | 0 |
Proceeds from at-the-market sales agreement | 383 | 0 |
Net cash used in financing activities | (3,399) | 0 |
Effect of exchange rate changes on cash and cash equivalents | 204 | (1,570) |
Net decrease in cash and cash equivalents | (41,951) | (8,068) |
Cash and cash equivalents at beginning of the period | 187,986 | 30,428 |
Cash and cash equivalents at end of the period | 146,035 | 22,360 |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid | 0 | 0 |
Interest paid | $ 109 | $ 0 |
Organization and description of
Organization and description of business operations | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization And Business Description | Organization and description of business operations Verona Pharma plc (the “Company”) is incorporated and domiciled in the United Kingdom. Verona Pharma plc has one wholly-owned subsidiary, Verona Pharma, Inc., a Delaware corporation. Rhinopharma Limited, a Canadian company that was previously a wholly owned subsidiary, was dissolved in June 2021. The address of the registered office is 1 Central Square, Cardiff, CF10 1FS, United Kingdom. The Company is a clinical-stage biopharmaceutical group focused on developing and commercializing innovative therapeutics for the treatment of respiratory diseases with significant unmet medical needs. The Company’s American Depositary Shares (“ADSs”) are listed on Nasdaq and trade under the symbol “VRNA”. Liquidity The Company has incurred recurring losses and negative cash flows from operations since inception, and has an accumulated deficit of $251.3 million as of June 30, 2021. The Company expects to incur additional losses and negative cash flows from operations until its products potentially gain regulatory approval and reach commercial profitability, if at all. The Company expects that its cash and cash equivalents as of June 30, 2021, will be sufficient to fund its operating expenses and capital expenditure requirements for at least the next 12 months from the date of issuance. In March, 2021, the Company entered into an open market sale agreement with respect to an at-the-market offering program (the “ATM Program”) under which the Company may issue and sell its ordinary shares in the form of ADSs, with an aggregate offering price of up to $100.0 million. During the three months ended June 30, 2021, the Company sold 434,704 shares (equivalent to 54,338 ADSs) under the ATM Program, at an average price of approximately $0.90 per share (equivalent to $7.23 per ADS), raising aggregate net proceeds of approximately $0.4 million after deducting issuance costs. As of June 30, 2021, there remained $99.6 million of ordinary shares, in the form of ADSs, available for sale under the ATM Program. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting policies | Basis of presentation and summary of significant accounting policies Basis of presentation and consolidation The unaudited condensed consolidated financial statements include the accounts of Verona Pharma plc and its wholly-owned subsidiary Verona Pharma, Inc. All inter-company balances and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”). The unaudited condensed consolidated financial statements presented in this Quarterly Report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2021 (the “2020 Form 10-K”). The balance sheet as of December 31, 2020 was derived from audited consolidated financial statements included in the 2020 Form 10-K but does not include all disclosures required by U.S. GAAP for complete financial statements. The Company’s significant accounting policies are described in Note 2 to those consolidated financial statements. In addition, the Company’s policy on revenue recognition is set out below. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from these interim financial statements. The unaudited condensed consolidated financial statements reflect all adjustments which in the opinion of management are necessary for a fair statement of results of operations, comprehensive income, financial condition, cash flows and stockholders' equity for the periods presented. Except as otherwise disclosed, all such adjustments are of a normal recurring nature. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. Revenue recognition The Company’s deferred revenue arises from the Company’s agreement for the development and commercialization of ensifentrine in Greater China. The terms of the agreement include non-refundable upfront fees, payments based upon achievement of developmental and regulatory milestones, commercial milestones, royalties payable on sales, and manufacturing and supply. These payments are viewed as both fixed and variable consideration. Non-refundable upfront fees are considered fixed, while milestone payments and revenue from the commercialized product are identified as variable consideration . The Company follows the five-step model in ASC 606 “Revenue from Contracts with Customers”: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. All of the Company’s revenue is derived from contracts with customers. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC Topic 606. The Company’s performance obligations include intellectual property rights, (which include the license, patents and developmental and regulatory data) and manufacturing and supply. Management are required to judge when performance obligations are satisfied and consequently when revenue is recognized. If the right to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from non-refundable, upfront fees allocated to the right when the right is transferred to the customer, and the customer can use and benefit from the right. If an arrangement includes development and regulatory milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are generally not considered probable of being achieved until those approvals are received. For arrangements with licenses of intellectual property that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes royalty revenue and sales-based milestones at the later of (i) when the related sales occur, or (ii) when the performance obligation to which the royalty has been allocated has been satisfied. Contract assets and liabilities The Company recognizes incremental costs of obtaining a contract such as commission costs as an asset and amortizes the asset on a basis that is consistent with the satisfaction of the performance obligations to which the asset relates . Consideration receivable that is in excess of the value of satisfied, or part satisfied, performance obligations is recognized as a deferred revenue liability. Trade receivable Accounts receivable relate to amounts billed to customers. Management determine the likelihood of uncollectible accounts and provide for this accordingly. Equity receivable As of June 30, 2021, as part of the Nuance Agreement, the Company recorded a $15 million equity receivable, relating to an equity interest in Nuance Biotech, the parent company of Nuance Pharma (see note 8). This equity interest was recorded as a receivable at fair value on the date of the transaction and is classified as equity interest receivable in current assets. There are no observable market data to determine the fair value of this stock. Consequently, the receivable relating to the stock is classified under Level 3 of the fair value hierarchy. Management valued the stock on the date of the transaction using data from Nuance Pharma’s latest funding round in November 2020 and there was no change or any new information for Nuance Biotech that would have impacted this valuation as of June 30, 2021. Segment reporting The Company has one operating and reportable segment, pharmaceutical development. Use of estimates The preparation of interim unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include, but are not limited to, the accrual and prepayment of research and development expenses, estimation of contract consideration and revenue recognition, the fair value of share-based compensation and the fair value of warrants. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from the Company’s estimates. Critically, management are required to identify the promises in the contract, determine whether these promises are distinct and determine when the Company has satisfied these obligations. The Company’s consideration of these issues is discussed in Note 8. Recently adopted accounting standards and recent accounting standards not yet adopted There are no recently adopted accounting standards and recent accounting standards not yet adopted that the Company believes will have a material impact on the Company’s consolidated financial statements. |
Prepaid expenses
Prepaid expenses | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses | Prepaid expenses Prepaid expenses consisted of the following (in thousands): June 30, December 31, 2021 2020 Clinical trial and other development costs $ 5,643 $ 2,551 Insurance 3,864 1,701 Other 310 286 Total prepaid expenses $ 9,817 $ 4,538 |
Tax and tax incentive receivabl
Tax and tax incentive receivable | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Tax and tax incentive receivable | Tax and tax incentive receivables Tax and tax incentive receivables consisted of the following (in thousands): June 30, December 31, 2021 2020 Research and development tax credit receivable - U.K. $ 14,108 $ 8,202 Tax receivable - U.S. — 58 Total tax receivable $ 14,108 $ 8,260 |
Accrued expenses
Accrued expenses | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued expenses | Accrued expenses Accrued expenses consisted of the following (in thousands): June 30, December 31, 2021 2020 Clinical trial and other development costs $ 11,227 $ 8,607 Professional fees and general corporate costs 4,925 2,149 People related costs 1,036 107 Total accrued expenses $ 17,188 $ 10,863 |
Warrants
Warrants | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Warrants | Warrants In the periods ended June 30, 2021, and December 31, 2020, no warrants were exercised or forfeited. The warrants had no intrinsic value as of June 30, 2021. There have been no changes in valuation techniques or transfers between fair value measurement levels during the period ended June 30, 2021. They are measured at fair value and included at level 3 in the fair value hierarchy. The warrants are valued using the Black-Scholes model and the table below presents the assumptions used: June 30, December 31, 2021 2020 Shares potentially issued under warrants 12,401,262 12,401,262 Exercise price in pounds sterling £ 1.7238 £ 1.7238 Risk-free interest rate 0.10 % — % Expected term to exercise 0.84 1.33 Annualized volatility 53.6 % 105.4 % Dividend rate — % — % Calculated value of the warrants, in thousands of U.S. dollars $ 42 $ 2,246 For the amount recognized at June 30, 2021, the effect when the following parameter deviates up or down is presented in the below table (in thousands): 10% volatility increase $ 125 Base case, reported fair value 42 10% volatility decrease $ 8 |
Term loan
Term loan | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Term loan | Term loan In November 2020, the Company entered into a term loan facility of up to $30.0 million (the “Term Loan”), consisting of advances of $5.0 million funded at closing and $10.0 million and $15.0 million contingent upon achievement of certain clinical development milestones and other specified conditions. As of June 30, 2021, the Company had $5.0 million principal outstanding under the Term Loan. As of June 30, 2021, the carrying value of the Term Loan was approximately $4.8 million, of which all was due in more than 12 months. The debt balance has been categorized within Level 3 of the fair value hierarchy. The carrying amount of the debt approximates its fair value based on prevailing interest rates as of the balance sheet date. |
Share based compensation
Share based compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share based compensation | Share-based compensation The following table shows the allocation of share-based compensation between research and development and general and administrative costs (in thousands): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Research and development $ 3,234 $ 498 $ 6,666 $ 991 General and administrative 4,217 452 9,634 1,826 Total $ 7,451 $ 950 $ 16,300 $ 2,817 Share options The following table shows share option activity in the period: 2021 Number of share options outstanding Weighted average exercise price Outstanding at January 1 13,125,672 $ 1.41 Forfeited (996,720) 1.17 Outstanding at March 31 12,128,952 $ 1.43 Granted 800,000 0.73 Outstanding at June 30 12,928,952 $ 1.38 Restricted stock units activity The following table shows restricted stock unit (“RSU”) activity in the period: 2021 Number of RSUs outstanding Weighted average remaining contractual term (years) Outstanding at January 1 61,992,360 1.5 Granted 750,928 Vested (441,304) Outstanding at March 31 62,301,984 1.3 Vested (11,920,928) Outstanding at June 30 50,381,056 1.3 |
Net loss per share
Net loss per share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net loss per share | Net loss per share Net loss per share is calculated on an ordinary share basis. The Company’s ADSs that are listed on the Nasdaq Global Market each represent eight ordinary shares. The following table shows the computation of basic and diluted earnings per share for the periods ended June 30, 2021 and 2020 (net loss in thousands, loss per share in dollars): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Numerator: Net loss $ (22,068) $ (9,038) $ (43,358) $ (21,384) Net loss available to ordinary shareholders - basic and diluted $ (22,068) $ (9,038) $ (43,358) $ (21,384) Denominator: Weighted-average shares outstanding - basic and diluted 470,786,767 106,360,580 469,036,978 105,908,648 Net loss per share - basic and diluted $ (0.05) $ (0.08) $ (0.09) $ (0.20) During the periods ended June 30, 2021 and 2020, outstanding share options, RSUs and warrants over 75,713,291 and 34,504,825 ordinary shares, respectively, were not included in the computation of diluted earnings per ordinary share, because to do so would be antidilutive. |
Significant agreements
Significant agreements | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Significant agreements | Significant agreements Ligand agreement In 2006 the Company acquired Rhinopharma and assumed contingent liabilities owed to Ligand UK Development Limited (“Ligand”) (formerly Vernalis Development Limited). The Company refers to the assignment and license agreement as the Ligand Agreement. Ligand assigned to the Company all of its rights to certain patents and patent applications relating to ensifentrine and related compounds (the “Ligand Patents”) and an exclusive, worldwide, royalty-bearing license under certain Ligand know-how to develop, manufacture and commercialize products (the ”Ligand Licensed Products”) developed using Ligand Patents, Ligand know-how and the physical stock of certain compounds. The contingent liability comprises a milestone payment on obtaining the first approval of any regulatory authority for the commercialization of a Ligand Licensed Product, low single digit royalties based on the future sales performance of all Ligand Licensed Products and a portion equal to a mid-twenty percent of any consideration received from any sub-licensees for the Ligand Patents and for Ligand know-how. At the time of the acquisition the contingent liability was not recognized as part of the acquisition accounting as it was immaterial. The Company will therefore record as a research and development expense the milestone payment or royalties when they are probable. Nuance agreement The Company entered into a collaboration and license agreement with Nuance Pharma Limited (“Nuance Pharma”) effective June 9, 2021 (the “Effective Date”) (the “Nuance Agreement”) under which the Company granted Nuance Pharma the exclusive rights to develop and commercialize ensifentrine in Greater China (China, Taiwan, Hong Kong and Macau). In return, the Company received an unconditional right to consideration aggregating $40.0 million consisting of $25.0 million and an equity interest, valued at $15.0 million as of the Effective Date, in Nuance Biotech, the parent company of Nuance Pharma. The Company is eligible to receive future milestone payments of up to $179.0 million triggered upon achievement of certain clinical, regulatory, and commercial milestones, as well as tiered double-digit royalties as a percentage of net sales of the products in Greater China. As of June 30, 2021, as the $25.0 million cash payment and $15.0 million equity interest were due on signing the contract, they were recorded as receivables on the Company’s balance sheet. The $25.0 million cash payment was received in July 2021. Under the terms of the Nuance Agreement, at any time until three months prior to the expected submission of the first New Drug Application in Greater China, if (i) a third party is interested in partnering with the Company, either globally or in territory covering at least the United States or Europe, for the development and/or commercialization of ensifentrine or (ii) the Company undergoes a change of control, the Company will have an exclusive option right to buy back the license granted to Nuance Pharma and all related assets. The price is agreed to be equal to the aggregate of (i) all prior amounts paid by Nuance Pharma to the Company in cash under the agreement and (ii) all development and regulatory costs incurred and paid by Nuance Pharma in connection with the development and commercialization of the ensifentrine under the Nuance Agreement multiplied by a single-digit factor range dependent upon achievement of certain milestones, subject to a specified maximum amount. The Nuance Agreement will continue on a jurisdiction-by-jurisdiction and product-by-product basis until the expiration of royalty payment obligations with respect to such product in such jurisdiction unless earlier terminated by the parties. Either party may terminate the Nuance Agreement for an uncured material breach or bankruptcy of the other party. Nuance Pharma may also terminate the Nuance Agreement at will upon 90 days' prior written notice. The Company reviewed the buy-back option and determined that because it is conditional on a third party the Company does not have the practical ability to exercise it and, accordingly, the contract is accounted for under ASC 606. The transaction price at the Effective Date of the agreement was $40.0 million consisting of the $25.0 million upfront cash payment and $15.0 million equity interest. Developmental and regulatory milestones, and the manufacture and supply of ensifentrine drug product, were not included in the transaction price as management determined that it is not probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Commercial milestones and sales royalties were also excluded and will be recognized when the sales occur in Greater China. The performance obligations in the Nuance Agreement include the grant of the license (including the right to commercialize ensifentrine until the end of the term, the sharing of certain know how, and the sharing of certain clinical and regulatory data), and manufacture and supply of ensifentrine drug product. The Company has determined that the license and the know how shared with Nuance Pharma constitutes functional intellectual property and that revenue relating to this should be recognized at a point in time. Consequently, the Company has determined that it will have fulfilled its obligations to Nuance Pharma when it has delivered the know how that will allow Nuance Pharma to file an investigational new drug application in Greater China. This know how is expected to be delivered in the three months ended September 30, 2021, and the $40.0 million revenue is expected to be recognized in that period. Revenue relating to the manufacture and supply obligations will be recognized when the drug product is delivered. The Company has reviewed the two performance obligations in the Nuance Agreement and has determined that these are priced at fair value. The equity interest in Nuance Biotech was recorded as a receivable at fair value on the Effective Date and is classified as equity interest receivable in current assets. There are no observable market data to determine the fair value of this equity interest. Consequently, the receivable relating to the equity interest is classified under Level 3 of the fair value hierarchy. Management valued the equity interest using data from Nuance Pharma’s latest funding round in November 2020. As of June 30, 2021, the Company had no information to indicate that this valuation is not still appropriate. On the Effective Date, the $40.0 million fixed consideration was recognized and recorded in deferred revenue. As of June 30, 2021, $nil had been recognized in the Statement of Operations and Comprehensive Loss. As of June 30, 2021, $25.0 million cash receivable and $15.0 million equity interest were recorded in current assets. On the Effective Date, $4.0 million of costs of obtaining a contract were recorded as a contract asset. As of June 30, 2021, $nil had been amortized into the Statement of Operations and Comprehensive Loss and it will be recognized in line with the revenue from the grant of the license. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | Basis of presentation and consolidation The unaudited condensed consolidated financial statements include the accounts of Verona Pharma plc and its wholly-owned subsidiary Verona Pharma, Inc. All inter-company balances and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”). The unaudited condensed consolidated financial statements presented in this Quarterly Report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K filed with the SEC on February 25, 2021 (the “2020 Form 10-K”). The balance sheet as of December 31, 2020 was derived from audited consolidated financial statements included in the 2020 Form 10-K but does not include all disclosures required by U.S. GAAP for complete financial statements. The Company’s significant accounting policies are described in Note 2 to those consolidated financial statements. In addition, the Company’s policy on revenue recognition is set out below. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from these interim financial statements. The unaudited condensed consolidated financial statements reflect all adjustments which in the opinion of management are necessary for a fair statement of results of operations, comprehensive income, financial condition, cash flows and stockholders' equity for the periods presented. Except as otherwise disclosed, all such adjustments are of a normal recurring nature. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. Revenue recognition The Company’s deferred revenue arises from the Company’s agreement for the development and commercialization of ensifentrine in Greater China. The terms of the agreement include non-refundable upfront fees, payments based upon achievement of developmental and regulatory milestones, commercial milestones, royalties payable on sales, and manufacturing and supply. These payments are viewed as both fixed and variable consideration. Non-refundable upfront fees are considered fixed, while milestone payments and revenue from the commercialized product are identified as variable consideration . The Company follows the five-step model in ASC 606 “Revenue from Contracts with Customers”: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. All of the Company’s revenue is derived from contracts with customers. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC Topic 606. The Company’s performance obligations include intellectual property rights, (which include the license, patents and developmental and regulatory data) and manufacturing and supply. Management are required to judge when performance obligations are satisfied and consequently when revenue is recognized. If the right to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from non-refundable, upfront fees allocated to the right when the right is transferred to the customer, and the customer can use and benefit from the right. If an arrangement includes development and regulatory milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are generally not considered probable of being achieved until those approvals are received. For arrangements with licenses of intellectual property that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes royalty revenue and sales-based milestones at the later of (i) when the related sales occur, or (ii) when the performance obligation to which the royalty has been allocated has been satisfied. Contract assets and liabilities The Company recognizes incremental costs of obtaining a contract such as commission costs as an asset and amortizes the asset on a basis that is consistent with the satisfaction of the performance obligations to which the asset relates . Consideration receivable that is in excess of the value of satisfied, or part satisfied, performance obligations is recognized as a deferred revenue liability. Trade receivable Accounts receivable relate to amounts billed to customers. Management determine the likelihood of uncollectible accounts and provide for this accordingly. Equity receivable As of June 30, 2021, as part of the Nuance Agreement, the Company recorded a $15 million equity receivable, relating to an equity interest in Nuance Biotech, the parent company of Nuance Pharma (see note 8). This equity interest was recorded as a receivable at fair value on the date of the transaction and is classified as equity interest receivable in current assets. There are no observable market data to determine the fair value of this stock. Consequently, the receivable relating to the stock is classified under Level 3 of the fair value hierarchy. Management valued the stock on the date of the transaction using data from Nuance Pharma’s latest funding round in November 2020 and there was no change or any new information for Nuance Biotech that would have impacted this valuation as of June 30, 2021. |
Segment Reporting | Segment reporting The Company has one operating and reportable segment, pharmaceutical development. |
Use of estimates | Use of estimates The preparation of interim unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include, but are not limited to, the accrual and prepayment of research and development expenses, estimation of contract consideration and revenue recognition, the fair value of share-based compensation and the fair value of warrants. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from the Company’s estimates. Critically, management are required to identify the promises in the contract, determine whether these promises are distinct and determine when the Company has satisfied these obligations. The Company’s consideration of these issues is discussed in Note 8. |
Recently adopted accounting standards and recent accounting standards not yet adopted | Recently adopted accounting standards and recent accounting standards not yet adopted There are no recently adopted accounting standards and recent accounting standards not yet adopted that the Company believes will have a material impact on the Company’s consolidated financial statements. |
Prepaid expenses (Tables)
Prepaid expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Prepaid Expenses | Prepaid expenses consisted of the following (in thousands): June 30, December 31, 2021 2020 Clinical trial and other development costs $ 5,643 $ 2,551 Insurance 3,864 1,701 Other 310 286 Total prepaid expenses $ 9,817 $ 4,538 |
Tax and tax incentive receiva_2
Tax and tax incentive receivable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Components of Taxes Receivable | Tax and tax incentive receivables consisted of the following (in thousands): June 30, December 31, 2021 2020 Research and development tax credit receivable - U.K. $ 14,108 $ 8,202 Tax receivable - U.S. — 58 Total tax receivable $ 14,108 $ 8,260 |
Accrued expenses (Tables)
Accrued expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): June 30, December 31, 2021 2020 Clinical trial and other development costs $ 11,227 $ 8,607 Professional fees and general corporate costs 4,925 2,149 People related costs 1,036 107 Total accrued expenses $ 17,188 $ 10,863 |
Warrants (Tables)
Warrants (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Fair Value Valuation Assumptions of Warrants | The warrants are valued using the Black-Scholes model and the table below presents the assumptions used: June 30, December 31, 2021 2020 Shares potentially issued under warrants 12,401,262 12,401,262 Exercise price in pounds sterling £ 1.7238 £ 1.7238 Risk-free interest rate 0.10 % — % Expected term to exercise 0.84 1.33 Annualized volatility 53.6 % 105.4 % Dividend rate — % — % Calculated value of the warrants, in thousands of U.S. dollars $ 42 $ 2,246 |
Fair Value Impact Of Increase Or Decrease in Volatility | For the amount recognized at June 30, 2021, the effect when the following parameter deviates up or down is presented in the below table (in thousands): 10% volatility increase $ 125 Base case, reported fair value 42 10% volatility decrease $ 8 |
Share based compensation (Table
Share based compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Allocation of Share Based Compensation Expense | The following table shows the allocation of share-based compensation between research and development and general and administrative costs (in thousands): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Research and development $ 3,234 $ 498 $ 6,666 $ 991 General and administrative 4,217 452 9,634 1,826 Total $ 7,451 $ 950 $ 16,300 $ 2,817 |
Share Option Activity | The following table shows share option activity in the period: 2021 Number of share options outstanding Weighted average exercise price Outstanding at January 1 13,125,672 $ 1.41 Forfeited (996,720) 1.17 Outstanding at March 31 12,128,952 $ 1.43 Granted 800,000 0.73 Outstanding at June 30 12,928,952 $ 1.38 |
Restricted Stock Unit Activity | The following table shows restricted stock unit (“RSU”) activity in the period: 2021 Number of RSUs outstanding Weighted average remaining contractual term (years) Outstanding at January 1 61,992,360 1.5 Granted 750,928 Vested (441,304) Outstanding at March 31 62,301,984 1.3 Vested (11,920,928) Outstanding at June 30 50,381,056 1.3 |
Net loss per share (Tables)
Net loss per share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earning Per Share | The following table shows the computation of basic and diluted earnings per share for the periods ended June 30, 2021 and 2020 (net loss in thousands, loss per share in dollars): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Numerator: Net loss $ (22,068) $ (9,038) $ (43,358) $ (21,384) Net loss available to ordinary shareholders - basic and diluted $ (22,068) $ (9,038) $ (43,358) $ (21,384) Denominator: Weighted-average shares outstanding - basic and diluted 470,786,767 106,360,580 469,036,978 105,908,648 Net loss per share - basic and diluted $ (0.05) $ (0.08) $ (0.09) $ (0.20) |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2021USD ($)subsidiary$ / shares | Mar. 19, 2021USD ($) | Dec. 31, 2020USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of wholly owned subsidiaries | subsidiary | 1 | |||
Class of Stock [Line Items] | ||||
Accumulated deficit | $ 251,265 | $ 251,265 | $ 207,050 | |
Number of shares issued in sale | shares | 434,704 | |||
Price per share (in dollars per share) | $ / shares | $ 0.90 | $ 0.90 | ||
Consideration received from sale of stock | $ 400 | |||
American Depository Shares | ||||
Class of Stock [Line Items] | ||||
Maximum aggregate offering price | $ 100,000 | |||
Number of shares issued in sale | shares | 54,338 | |||
Price per share (in dollars per share) | $ / shares | $ 7.23 | $ 7.23 | ||
Shares available for sale | $ 99,600 | $ 99,600 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting policies (Details) | 6 Months Ended |
Jun. 30, 2021subsidiary | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Prepaid expenses (Details)
Prepaid expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Clinical trial and other development costs | $ 5,643 | $ 2,551 |
Insurance | 3,864 | 1,701 |
Other | 310 | 286 |
Total prepaid expenses | $ 9,817 | $ 4,538 |
Tax and tax incentive receiva_3
Tax and tax incentive receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Research and development tax credit receivable - U.K. | $ 14,108 | $ 8,202 |
Tax receivable - U.S. | 0 | 58 |
Total tax receivable | $ 14,108 | $ 8,260 |
Accrued expenses (Details)
Accrued expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Clinical trial and other development costs | $ 11,227 | $ 8,607 |
Professional fees and general corporate costs | 4,925 | 2,149 |
People related costs | 1,036 | 107 |
Total accrued expenses | $ 17,188 | $ 10,863 |
Warrants - Narrative (Details)
Warrants - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2021 | Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | ||
Number of warrants exercised and forfeited | 0 | 0 |
Intrinsic value | $ 0 |
Warrants - Fair Value Assumptio
Warrants - Fair Value Assumptions (Details) $ in Thousands | Jun. 30, 2021USD ($)shares | Jun. 30, 2021£ / shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020£ / shares |
Class of Warrant or Right [Line Items] | ||||
Stock warrants (in shares) | shares | 12,401,262 | 12,401,262 | ||
Exercise price of stock warrant (in pound sterling per share) | £ / shares | £ 1.7238 | £ 1.7238 | ||
Expected term to exercise | 10 months 2 days | 1 year 3 months 29 days | ||
Calculated value of the warrants, in thousands of U.S. dollars | $ | $ 42 | $ 2,246 | ||
Risk-free interest rate | ||||
Class of Warrant or Right [Line Items] | ||||
Measurement Input | 0.0010 | 0 | ||
Annualized volatility | ||||
Class of Warrant or Right [Line Items] | ||||
Measurement Input | 0.536 | 1.054 | ||
Dividend rate | ||||
Class of Warrant or Right [Line Items] | ||||
Measurement Input | 0 | 0 |
Warrants - Effect of Change in
Warrants - Effect of Change in Volatility (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Other Liabilities Disclosure [Abstract] | |
10% volatility increase | $ 125 |
Base case, reported fair value | 42 |
10% volatility decrease | $ 8 |
Term loan (Details)
Term loan (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Nov. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Carrying value of term loan | $ 4,767 | $ 4,635 | |
Secured Debt | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 30,000 | ||
Funded advances | 5,000 | ||
Principal outstanding | $ 5,000 | ||
Secured Debt | Term B Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 10,000 | ||
Secured Debt | Term C Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 15,000 |
Share based compensation - Shar
Share based compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total | $ 7,451 | $ 950 | $ 16,300 | $ 2,817 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total | 3,234 | 498 | 6,666 | 991 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total | $ 4,217 | $ 452 | $ 9,634 | $ 1,826 |
Share based compensation - Sh_2
Share based compensation - Share Option Activity (Details) - $ / shares | 3 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | |
Number of share options outstanding | ||
Beginning balance outstanding | 12,128,952 | 13,125,672 |
Forfeited | (996,720) | |
Granted | 800,000 | |
Ending balance outstanding | 12,928,952 | 12,128,952 |
Weighted average exercise price | ||
Outstanding, Beginning Balance, Weighted average exercise price (in dollars per share) | $ 1.43 | $ 1.41 |
Forfeited, Weight average exercise price (in dollars per share) | 1.17 | |
Granted, Weight average exercise price (in dollars per share) | 0.73 | |
Outstanding, Ending Balance, Weighted average exercise price (in dollars per share) | $ 1.38 | $ 1.43 |
Share based compensation - RSU
Share based compensation - RSU Activity (Details) - Restricted Stock Units - shares | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
RSU Activity | |||
Outstanding, beginning balance | 62,301,984 | 61,992,360 | |
Granted | 750,928 | ||
Vested | (11,920,928) | (441,304) | |
Outstanding, ending balance | 50,381,056 | 62,301,984 | 61,992,360 |
Outstanding, Weighted average remaining contractual term | 1 year 3 months 18 days | 1 year 3 months 18 days | 1 year 6 months |
Net loss per share - Computatio
Net loss per share - Computation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||||
Net loss | $ (22,068) | $ (21,290) | $ (9,038) | $ (12,346) | $ (43,358) | $ (21,384) |
Net loss available to ordinary shareholders - basic | (22,068) | (9,038) | $ (43,358) | (21,384) | ||
Net loss available to ordinary shareholders - diluted | $ (22,068) | $ (9,038) | $ (21,384) | |||
Denominator: | ||||||
Weighted-average shares outstanding, basic (in shares) | 470,786,767 | 106,360,580 | 469,036,978 | 105,908,648 | ||
Weighted-average shares outstanding, diluted (in shares) | 470,786,767 | 106,360,580 | 469,036,978 | 105,908,648 | ||
Net loss per share, basic (in dollars per share) | $ (0.05) | $ (0.08) | $ (0.09) | $ (0.20) | ||
Net loss per share, diluted (in dollars per share) | $ (0.05) | $ (0.08) | $ (0.09) | $ (0.20) | ||
Antidilutive securities excluded from computation of loss per share (in shares) | 75,713,291 | 34,504,825 |
Significant agreements (Details
Significant agreements (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 09, 2021 | Dec. 31, 2020 | |
Capitalized Contract Cost [Line Items] | ||||||
Accounts receivable | $ 25,002,000 | $ 25,002,000 | $ 0 | |||
Equity interest receivable | 15,000,000 | 15,000,000 | $ 0 | |||
Cash received for accounts receivable | (25,002,000) | $ 0 | ||||
Nuance (Shanghai) Pharma Co Ltd | ||||||
Capitalized Contract Cost [Line Items] | ||||||
Transaction price | $ 40,000,000 | |||||
Accounts receivable | 25,000,000 | 25,000,000 | 25,000,000 | |||
Equity interest receivable | 15,000,000 | 15,000,000 | 15,000,000 | |||
Future eligible milestone payments | 179,000,000 | |||||
Deferred revenue | 25,000,000 | $ 25,000,000 | 40,000,000 | |||
Contract asset | $ 4,000,000 | |||||
Amortization of contract asset | $ 0 | |||||
Subsequent Event | Nuance (Shanghai) Pharma Co Ltd | ||||||
Capitalized Contract Cost [Line Items] | ||||||
Cash received for accounts receivable | $ 25,000,000 |