Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CRNX | |
Entity Registrant Name | Crinetics Pharmaceuticals, Inc. | |
Entity Central Index Key | 0001658247 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38583 | |
Entity Tax Identification Number | 26-3744114 | |
Entity Interactive Data Current | Yes | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Entity Address, Address Line One | 10222 Barnes Canyon Road | |
Entity Address, Address Line Two | Bldg. #2 | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92121 | |
City Area Code | 858 | |
Local Phone Number | 450-6464 | |
Entity Common Stock, Shares Outstanding | 24,222,296 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 66,579 | $ 44,973 |
Investment securities | 65,094 | 118,902 |
Prepaid expenses and other current assets | 3,731 | 2,808 |
Total current assets | 135,404 | 166,683 |
Property and equipment, net | 4,035 | 4,232 |
Operating lease right-of-use asset | 2,570 | |
Restricted cash | 500 | 500 |
Total assets | 142,509 | 171,415 |
Current liabilities: | ||
Accounts payable | 2,113 | 1,456 |
Accrued expenses and other current liabilities | 3,177 | 4,190 |
Accrued compensation and benefits | 2,592 | 2,279 |
Total current liabilities | 7,882 | 7,925 |
Non-current operating lease liability | 5,044 | |
Deferred rent | 3,063 | |
Unvested stock liability | 60 | 202 |
Total liabilities | 12,986 | 11,190 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par, 10,000 shares authorized; no shares issued or outstanding at September 30, 2019 or at December 31, 2018 | ||
Common stock and paid-in capital, $0.001 par, 200,000 shares authorized; 24,258 and 24,218 shares issued and outstanding at September 30, 2019; 24,188 and 24,061 shares issued and outstanding at December 31, 2018 | 208,578 | 203,544 |
Accumulated other comprehensive income | 198 | 61 |
Accumulated deficit | (79,253) | (43,380) |
Total stockholders’ equity | 129,523 | 160,225 |
Total liabilities and stockholders’ equity | $ 142,509 | $ 171,415 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock and paid-in capital, par value | $ 0.001 | $ 0.001 |
Common stock and paid-in capital, shares authorized | 200,000,000 | 200,000,000 |
Common stock and paid-in capital, shares issued | 24,258,000 | 24,188,000 |
Common stock and paid-in capital, shares outstanding | 24,218,000 | 24,061,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Grant revenues | $ 505 | $ 548 | $ 872 | $ 1,647 |
Type of Revenue Extensible List | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember | us-gaap:GrantMember |
Operating expenses: | ||||
Research and development | $ 11,823 | $ 6,886 | $ 29,363 | $ 16,828 |
General and administrative | 3,911 | 1,732 | 10,127 | 4,098 |
Total operating expenses | 15,734 | 8,618 | 39,490 | 20,926 |
Loss from operations | (15,229) | (8,070) | (38,618) | (19,279) |
Other income (expense): | ||||
Interest income | 835 | 534 | 2,805 | 749 |
Other income (expense) | (36) | (52) | (60) | (90) |
Total other income (expense), net | 799 | 482 | 2,745 | 659 |
Net loss | (14,430) | (7,588) | (35,873) | (18,620) |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on investment securities | (36) | 137 | ||
Comprehensive loss | $ (14,466) | $ (7,588) | $ (35,736) | $ (18,620) |
Net loss per share: | ||||
Net loss per share – basic and diluted | $ (0.60) | $ (0.38) | $ (1.49) | $ (2.29) |
Weighted-average shares outstanding – basic and diluted | 24,208 | 20,016 | 24,155 | 8,131 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Initial Public Offering | Convertible Preferred Stock | Common Stock | Common StockInitial Public Offering | Common stock and Paid-In Capital | Common stock and Paid-In CapitalInitial Public Offering | Accumulated Other Comprehensive Income | Accumulated Deficit |
Temporary equity, Beginning Balance at Dec. 31, 2017 | $ 29,700 | ||||||||
Temporary equity, Beginning Balance, Shares at Dec. 31, 2017 | 28,763,000 | ||||||||
Beginning Balance at Dec. 31, 2017 | $ (15,022) | $ 1,243 | $ (16,265) | ||||||
Beginning Balance, Shares at Dec. 31, 2017 | 1,550,000 | ||||||||
Temporary equity, Issuance of convertible preferred stock | $ 63,275 | ||||||||
Temporary equity, Issuance of convertible preferred stock, shares | 19,641,000 | ||||||||
Issuance of common stock | $ 106,472 | $ 106,472 | |||||||
Issuance of common stock, shares | 6,900,000 | ||||||||
Conversion of preferred stock into common stock | 92,975 | $ (92,975) | 92,975 | ||||||
Conversion of preferred stock into common stock, shares | (48,404,000) | 14,713,000 | |||||||
Vesting of founders shares | 14 | 14 | |||||||
Vesting of founder shares, shares | 535,000 | ||||||||
Exercise of stock options | 231 | 231 | |||||||
Exercise of stock options, shares | 337,000 | ||||||||
Stock-based compensation | 1,473 | 1,473 | |||||||
Net loss | (18,620) | (18,620) | |||||||
Ending Balance at Sep. 30, 2018 | 167,523 | 202,408 | (34,885) | ||||||
Ending Balance, Shares at Sep. 30, 2018 | 24,035,000 | ||||||||
Temporary equity, Beginning Balance at Jun. 30, 2018 | $ 92,975 | ||||||||
Temporary equity, Beginning Balance, Shares at Jun. 30, 2018 | 48,404,000 | ||||||||
Beginning Balance at Jun. 30, 2018 | (25,177) | 2,120 | (27,297) | ||||||
Beginning Balance, Shares at Jun. 30, 2018 | 2,344,000 | ||||||||
Issuance of common stock | $ 106,472 | $ 106,472 | |||||||
Issuance of common stock, shares | 6,900,000 | ||||||||
Conversion of preferred stock into common stock | 92,975 | $ (92,975) | 92,975 | ||||||
Conversion of preferred stock into common stock, shares | (48,404,000) | 14,713,000 | |||||||
Vesting of stock subject to repurchase | 7 | 7 | |||||||
Vesting of stock subject to repurchase, shares | 6,000 | ||||||||
Exercise of stock options | 59 | 59 | |||||||
Exercise of stock options, shares | 72,000 | ||||||||
Stock-based compensation | 775 | 775 | |||||||
Net loss | (7,588) | (7,588) | |||||||
Ending Balance at Sep. 30, 2018 | 167,523 | 202,408 | (34,885) | ||||||
Ending Balance, Shares at Sep. 30, 2018 | 24,035,000 | ||||||||
Beginning Balance at Dec. 31, 2018 | 160,225 | 203,544 | $ 61 | (43,380) | |||||
Beginning Balance, Shares at Dec. 31, 2018 | 24,061,000 | ||||||||
Vesting of stock subject to repurchase | 83 | 83 | |||||||
Vesting of stock subject to repurchase, shares | 56,000 | ||||||||
Exercise of stock options | $ 109 | 109 | |||||||
Exercise of stock options, shares | 76,117 | 76,000 | |||||||
Issuance of stock under Stock Purchase Plan | $ 379 | 379 | |||||||
Issuance of stock under Stock Purchase Plan, shares | 25,000 | ||||||||
Stock-based compensation | 4,463 | 4,463 | |||||||
Comprehensive Income (loss) | 137 | 137 | |||||||
Net loss | (35,873) | (35,873) | |||||||
Ending Balance at Sep. 30, 2019 | 129,523 | 208,578 | 198 | (79,253) | |||||
Ending Balance, Shares at Sep. 30, 2019 | 24,218,000 | ||||||||
Beginning Balance at Jun. 30, 2019 | 142,101 | 206,690 | 234 | (64,823) | |||||
Beginning Balance, Shares at Jun. 30, 2019 | 24,195,000 | ||||||||
Vesting of stock subject to repurchase | 12 | 12 | |||||||
Vesting of stock subject to repurchase, shares | 10,000 | ||||||||
Exercise of stock options | 22 | 22 | |||||||
Exercise of stock options, shares | 13,000 | ||||||||
Stock-based compensation | 1,854 | 1,854 | |||||||
Comprehensive Income (loss) | (36) | (36) | |||||||
Net loss | (14,430) | (14,430) | |||||||
Ending Balance at Sep. 30, 2019 | $ 129,523 | $ 208,578 | $ 198 | $ (79,253) | |||||
Ending Balance, Shares at Sep. 30, 2019 | 24,218,000 |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||
Issuance of common stock in initial public offering, issuance costs | $ 10,829 | $ 10,829 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (35,873) | $ (18,620) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 4,463 | 1,473 |
Depreciation and amortization | 658 | 263 |
Noncash lease expense | 166 | |
Accretion of investment securities and purchase discounts, net of amortization of purchase premiums | (1,009) | |
Other | 3 | 11 |
Increase (decrease) in cash resulting from changes in: | ||
Prepaid expenses and other current assets | (923) | (1,170) |
Accounts payable and accrued expenses | 22 | 4,480 |
Deferred rent | 113 | |
Operating lease liability | (441) | |
Net cash used in operating activities | (32,934) | (13,450) |
Cash flows from investing activities: | ||
Purchases of investment securities | (67,070) | |
Maturities of investment securities | 122,024 | |
Purchases of property and equipment | (464) | (777) |
Net cash provided by (used in) investing activities | 54,490 | (777) |
Financing activities: | ||
Proceeds from issuance of convertible preferred stock, net | 63,266 | |
Proceeds from issuance of common stock, net | 106,472 | |
Proceeds from exercise of stock options | 109 | 451 |
Repurchase of unvested shares | (59) | |
Net cash provided by financing activities | 50 | 170,189 |
Net change in cash, cash equivalents and restricted cash | 21,606 | 155,962 |
Cash, cash equivalents and restricted cash at beginning of period | 45,473 | 14,192 |
Cash, cash equivalents and restricted cash at end of period | 67,079 | 170,154 |
Noncash investing and financing activities: | ||
Purchase of shares pursuant to Employee Stock Purchase Plan | 379 | |
Change in unvested stock liability | $ (83) | (14) |
Amounts accrued for purchases of property and equipment | 146 | |
Tenant improvement allowance | $ 3,304 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. ORGANIZATION AND BASIS OF PRESENTATION Description of Business Crinetics Pharmaceuticals, Inc. (the “Company”) is a clinical stage pharmaceutical company incorporated in Delaware on November 18, 2008 and based in San Diego, California. The Company is focused on the discovery, development and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors. In January 2017, the Company established a wholly owned Australian subsidiary, Crinetics Australia Pty Ltd (“CAPL”), in order to conduct various preclinical and clinical activities for its development candidates. On July 6, 2018, the Company effected a 1-for-3.29 reverse stock split of its common stock. The par value and the authorized shares of the common stock were not adjusted as a result of the reverse stock split. The reverse stock split resulted in an adjustment to the conversion prices of the Company’s Series A and B preferred stock to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion. The accompanying condensed consolidated financial statements and notes to the condensed consolidated financial statements give retroactive effect to the reverse stock split for all periods presented. Unaudited Interim Financial Information The accompanying interim condensed consolidated balance sheet as of September 30, 2019, the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2019 and 2018, the condensed consolidated statements of convertible preferred stock and stockholders’ equity (deficit) for the three and nine months ended September 30, 2019 and 2018, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018, and the related disclosures are unaudited. In management’s opinion, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2019 and the results of its operations and cash flows for the nine months ended September 30, 2019 and 2018 in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results expected for the full fiscal year or any other interim period. Principles of Consolidation and Foreign Currency Transactions The condensed consolidated financial statements include the accounts of the Company and CAPL. All intercompany accounts and transactions have been eliminated in consolidation. The functional currency of both the Company and CAPL is the U.S. dollar. Assets and liabilities that are not denominated in the functional currency are remeasured into U.S. dollars at foreign currency exchange rates in effect at the balance sheet date except for nonmonetary assets, which are remeasured at historical foreign currency exchange rates in effect at the date of transaction. Net realized and unrealized gains and losses from foreign currency transactions and remeasurement are reported in other income (expense), in the condensed consolidated statements of operations and were not material for all periods presented. Segment Reporting Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business in one operating segment. Liquidity and Going Concern From inception, the Company has devoted substantially all of its efforts to drug discovery and development and conducting preclinical studies and clinical trials. The Company has a limited operating history and the sales and income potential of the Company’s business and market are unproven. Successful transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support the Company’s cost structure. As of September 30, 2019, the Company had $131.7 million in unrestricted cash, cash equivalents and investment securities. The Company believes it has sufficient cash to meet its funding requirements for at least the next 12 months. However, the Company has experienced net losses and negative cash flows from operating activities since its inception and has an accumulated deficit of $79.3 million as of September 30, 2019. The Company expects to continue to incur net losses for the foreseeable future and believes it will need to raise substantial additional capital to accomplish its business plan over the next several years. The Company plans to continue to fund its losses from operations and capital funding needs through a combination of equity offerings, debt financings or other sources, including potential collaborations, licenses and other similar arrangements. If the Company is not able to secure adequate additional funding, the Company may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, or suspend or curtail planned programs. Any of these actions could materially harm the Company’s business, results of operations and future prospects. There can be no assurance as to the availability or terms upon which such financing and capital might be available in the future. On August 13, 2019 the Company entered into a Sales Agreement (the “Sales Agreement”) with SVB Leerink LLC and Cantor Fitzgerald & Co. (collectively, the “Sales Agents”), under which the Company may, from time to time, sell shares of its common stock having an aggregate offering price of up to $75.0 million through the Sales Agents (the “ATM Offering”). On August 13, 2019, the Company also filed a registration statement on Form S-3 (the “Shelf Registration Statement”), covering the offering of up to $300.0 million of common stock, preferred stock, debt securities, warrants and units. The Shelf Registration Statement included a prospectus covering the offering, issuance and sale of up to $75.0 million of the Company’s common stock from time to time through the ATM Offering. The Registration Statement became effective on August 29, 2019. The shares to be sold under the Sales Agreement may be issued and sold pursuant to the Shelf Registration Statement. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The Company’s condensed consolidated financial statements are prepared in accordance with U.S. GAAP. The preparation of the Company’s condensed consolidated financial statements requires it to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s condensed consolidated financial statements and accompanying notes. The most significant estimates in the Company’s condensed consolidated financial statements relate to revenue recognition, accrued amounts receivable under the Australian research and development tax incentive program, accrued expenses and associated research and development expense, the assumptions underlying the determination of the estimated incremental borrowing rate for the determination of the operating lease right-of-use asset, and the assumptions underlying the determination of the fair value of equity awards for purposes of determining stock-based compensation. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. Fair Value Measurements The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or non-recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying amounts of the Company’s current financial assets, restricted cash and current financial liabilities are considered to be representative of their respective fair values because of the short-term nature of those instruments. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts. Restricted cash represents cash held as collateral for the Company’s facility lease and is reported as a long-term asset in the accompanying condensed consolidated balance sheets. Investment Securities All investments have been classified as “available-for-sale” and are carried at fair value as determined based upon quoted market prices or pricing models for similar securities at period end. Investments with contractual maturities less than 12 months at the balance sheet date are considered short-term investments. Investments with contractual maturities beyond one year are also classified as short-term due to the Company’s ability to liquidate the investment for use in operations within the next 12 months. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. The Company has not realized any significant gains or losses on sales of available-for-sale investment securities during any of the periods presented. As all of the Company’s investment holdings are in the form of debt securities, unrealized gains and losses that are determined to be temporary in nature are reported as a component of accumulated other comprehensive income (loss). A decline in the fair value of any security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. Interest income is recognized when earned and includes the amortization of purchase premiums and accretion of purchase discounts. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant risk on its cash balances due to the financial position of the depository institution in which those deposits are held. Additionally, the Company has established guidelines regarding approved investments and maturities of investments, which are designed to maintain safety and liquidity. Leases The Company determines if an arrangement is a lease at the inception of the arrangement. Leases with a term longer than 12 months that are determined to be operating leases are included in operating lease assets, accrued expenses and other current liabilities and noncurrent operating lease liabilities in the condensed consolidated balance sheets based on the present value of the minimum lease payments called for under the arrangement. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Grant Revenue Recognition The Company’s grant revenues are derived from Small Business Innovation Research (“SBIR”) grants from the National Institutes of Health. The Company recognizes SBIR grant revenue as reimbursable grant costs are incurred. The costs associated with these reimbursements are reflected as a component of research and development expense in the accompanying condensed consolidated statements of operations. Earnings in excess of billings are included as a component of prepaid expenses and other current assets. Research and Development Expenses Research and development expenses consist primarily of salaries, payroll taxes, employee benefits and stock-based compensation charges for those individuals involved in research and development efforts, as well as consulting expenses, third-party research and development expenses, laboratory supplies, clinical materials and overhead, including facilities and depreciation costs, offset by the Australian Tax Incentive discussed below. Research and development expenses are charged to expense as incurred. Payments made prior to the receipt of goods or services to be used in research and development are capitalized until the goods or services are received. Costs incurred under contracts with contract research organizations that conduct and manage the Company’s clinical trials are also included in research and development expenses. The financial terms and activities of these agreements vary from contract to contract and may result in uneven expense levels. Generally, these agreements set forth activities that drive the recording of expenses such as start-up and initiation activities, enrollment and treatment of patients, or the completion of other clinical trial activities. Expenses related to clinical trials are accrued based on estimates and/or representations from service providers regarding work performed, including actual level of patient enrollment, completion of patient studies and progress of the clinical trials. Other incidental costs related to patient enrollment or treatment are accrued when reasonably certain. If the amounts that the Company is obligated to pay under its clinical trial agreements are modified (for instance, as a result of changes in the clinical trial protocol or scope of work to be performed), the Company adjusts its accruals accordingly on a prospective basis. Revisions to contractual payment obligations are charged to expense in the period in which the facts that give rise to the revision become reasonably certain. Australian Research and Development Tax Incentive CAPL is eligible to obtain a cash refund from the Australian Taxation Office for eligible research and development expenditures under the Australian Research and Development Tax Incentive Program (the “Australian Tax Incentive”). The Australian Tax Incentive is recognized as a reduction to research and development expense when there is reasonable assurance that the Australian Tax Incentive will be received, the relevant expenditure has been incurred, and the amount can be reliably measured. The Company recognized a reduction to research and development expense of $0.3 million and $0.1 million for the three months ended September 30, 2019 and 2018, respectively, and a reduction to research and development expense of $0.6 million and $0.9 million for the nine months ended September 30, 2019 and 2018, respectively. Stock-Based Compensation Stock-based compensation expense represents the cost of the grant date fair value of awards over the requisite service period of the awards (usually the vesting period) on a straight-line basis. For stock awards for which vesting is subject to performance-based milestones, the expense is recorded over the remaining service period after the point when the achievement of the milestone is probable, or the performance condition has been achieved. The Company estimates the fair value of all stock option grants using the Black-Scholes option pricing model and recognizes forfeitures as they occur. Comprehensive Loss Comprehensive loss is comprised of the Company’s net loss for all periods presented and the unrealized gain or loss on investment securities held as of September 30, 2019. Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock and dilutive common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. Dilutive common stock equivalents are comprised of convertible preferred stock, common stock subject to repurchase, and options outstanding under the Company’s stock option plan. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as inclusion of the potentially dilutive securities would be antidilutive. Recently Adopted Accounting Pronouncements ASU 2016-02 In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. ASU 2016-02 also requires disclosures to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. On January 1, 2019, the Company adopted ASU 2016-02 using the modified retrospective transition method. Under this transition method, the Company recognized and measured leases that existed at the adoption date in the condensed consolidated balance sheet as of January 1, 2019. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, discounted at the rate implicit in the lease. If the rate implicit in the lease cannot be determined, Topic 842 requires the use of the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term for a similar amount to the lease payments in a similar economic environment. The operating lease ROU asset is also adjusted for any prepaid or accrued lease payments and any lease incentives received. Operating lease terms may include options to extend or terminate the lease when it is reasonably certain that these options will be exercised. Further, the Company has elected to recognize short-term lease payments on a straight-line basis over the associated lease term and variable lease payments in the period in which the obligation for those payments is incurred. Short-term and variable lease payments were not material in the first nine months of 2019. In connection with the adoption of ASU 2016-02, the Company elected the package of practical expedients requiring no reassessment of whether any expired or existing contracts contain leases, the lease classification of any expired or existing leases, or initial direct costs for any existing leases. The Company also made accounting policy elections not to apply the recognition requirements Adoption of ASU 2016-02 resulted in recognition of a ASU 2018-07 In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”), which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees and applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. ASU 2018-07 was adopted by the Company on January 1, 2019 using the modified retrospective transition method with no impact on the condensed consolidated financial statements. As a result of adopting ASU 2018-07, the estimated fair values of stock awards issued to non-employees are determined at issuance and are no longer subject to revaluation over their vesting terms. Recent Accounting Pronouncements ASU 2018-13 In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement,” which improves the effectiveness of the disclosures required under ASC 820, “Fair Value Measurements and Disclosures” and modifies the disclosure requirements on fair value measurements, including the consideration of costs and benefits. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the impact of the pending adoption of this new standard on its consolidated financial statements. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | 3. INVESTMENT SECURITIES The Company reports its available-for-sale investment securities at their estimated fair values based on quoted market prices for identical or similar instruments. The following is a summary of the available-for-sale investment securities held by the Company as of September 30, 2019 and December 31, 2018 ( in thousands As of September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Available-for-sale investment securities: U.S. government and agency obligations $ 32,342 $ 126 $ — $ 32,468 Certificates of deposit 5,670 60 — 5,730 Commercial paper 17,559 — — 17,559 Corporate debt securities 9,325 12 — 9,337 Total $ 64,896 $ 198 $ — $ 65,094 As of December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Available-for-sale investment securities: U.S. government and agency obligations $ 42,193 $ 72 $ (1 ) $ 42,264 Certificates of deposit 5,408 — — 5,408 Commercial paper 47,686 — — 47,686 Corporate debt securities 23,554 2 (12 ) 23,544 Total $ 118,841 $ 74 $ (13 ) $ 118,902 All available-for-sale investment securities held at September 30, 2019 and December 31, 2018, had maturity dates of less than 24 months. None of the Company’s available-for-sale investment securities were in a material unrealized loss position at September 30, 2019 or December 31, 2018. As such, the Company has not recognized any impairment in its financial statements related to its available-for-sale investment securities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. FAIR VALUE MEASUREMENTS The Company holds investment securities that consist of highly liquid, investment grade debt securities. The Company determines the fair value of its investment securities based upon one or more valuations reported by its investment accounting and reporting service provider. The investment service provider values the securities using a hierarchical security pricing model that relies primarily on valuations provided by an industry-recognized valuation service. Such valuations may be based on trade prices in active markets for identical assets or liabilities (Level 1 inputs) or valuation models using inputs that are observable either directly or indirectly (Level 2 inputs), such as quoted prices for similar assets or liabilities, yield curves, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, and broker and dealer quotes, as well as other relevant economic measures. Financial assets measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 were as follows ( in thousands As of September 30, 2019 Level 1 Level 2 Level 3 Total Investment securities: U.S. government and agency obligations $ 20,458 $ 12,010 $ — $ 32,468 Certificates of deposit — 5,730 — 5,730 Commercial paper — 17,559 — 17,559 Corporate debt securities — 9,337 — 9,337 Total assets measured at fair value $ 20,458 $ 44,636 $ — $ 65,094 As of December 31, 2018 Level 1 Level 2 Level 3 Total Investment securities: U.S. government and agency obligations $ 22,275 $ 19,989 $ — $ 42,264 Certificates of deposit — 5,408 — 5,408 Commercial paper — 47,686 — 47,686 Corporate debt securities — 23,544 — 23,544 Total assets measured at fair value $ 22,275 $ 96,627 $ — $ 118,902 The Company’s policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 3 during the nine months ended September 30, 2019. |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Details | 5. BALANCE SHEET DETAILS Prepaid expenses and other current assets consist of the following (in thousands): September 30, 2019 December 31, 2018 Prepaid research and development costs $ 1,207 $ 8 Australian tax incentive receivable 574 1,016 SBIR grant receivable 205 568 Interest receivable 269 340 Prepaid expenses and other assets 1,476 876 Total $ 3,731 $ 2,808 Property and equipment consist of the following (in thousands): September 30, 2019 December 31, 2018 Leasehold improvements $ 3,494 $ 3,494 Lab equipment 1,373 915 Office equipment 523 523 Computers and software 41 41 Property and equipment at cost 5,431 4,973 Less accumulated depreciation and amortization 1,396 741 Total $ 4,035 $ 4,232 Accrued expenses and other current liabilities consist of the following (in thousands): September 30, 2019 December 31, 2018 Accrued research and development costs $ 1,705 $ 3,634 Short-term operating lease liability 696 — Other accrued expenses 776 556 Total $ 3,177 $ 4,190 |
Operating Lease
Operating Lease | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating Lease | 6. OPERATING LEASE 2018 Operating Lease. In February 2018, as amended in March 2018, the Company entered into a non-cancelable operating lease for a new facility in San Diego, California. The lease has an initial term of seven years which expires in August 2025, and the Company has an option to extend the term of the lease for an additional five years and has a termination option subject to early termination fees. The lease is subject to base lease payments and additional charges for common area maintenance and other costs and includes certain lease incentives and tenant improvement allowances. Rent expense is being recognized on a straight-line basis over the term of the lease. The Company’s estimated incremental borrowing rate of 8.0% was used in its present value calculation as the facility lease does not have a stated rate, and the implicit rate was not readily determinable. Under the terms of the lease, the Company provided the lessor with an irrevocable letter of credit in the amount of $0.5 million. The lessor is entitled to draw on the letter of credit in the event of any default by the Company under the terms of the lease. Future Minimum Payments. As of September 30, 2019, future minimum payments under non-cancellable operating leases were as follows (in thousands): Year ending December 31, Minimum Payments 2019 (3 months) $ 276 2020 1,123 2021 1,173 2022 1,208 2023 1,244 Thereafter 2,151 Total future minimum lease payments 7,175 Less imputed interest 1,435 Total operating lease liability 5,740 Less current operating lease liability 696 Non-current operating lease liability $ 5,044 Rent expense was $0.2 million for each of the three months ended September 30, 2019 and 2018, respectively, and $0.7 million and $0.4 million for the nine months ended September 30, 2019 and 2018, respectively. Cash paid for amounts included in the measurement of lease liabilities for operating cash flow from operating leases was $0.8 million during the nine months ended September 30, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. COMMITMENTS AND CONTINGENCIES Litigation From time to time, the Company may be subject to various claims and suits arising in the ordinary course of business. The Company does not expect that the resolution of these matters will have a material adverse effect on its financial position or results of operations. |
Convertible Preferred Stock
Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Convertible Preferred Stock | 8. CONVERTIBLE PREFERRED STOCK As of January 1, 2018, the Company had 28,763,179 shares of Series A convertible preferred stock outstanding. In connection with the Company’s initial public offering (“IPO”) in July 2018, all of these shares of convertible preferred stock automatically converted into 14,712,571 shares of common stock. |
Stockholder's Equity
Stockholder's Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 9. STOCKHOLDERS’ EQUITY Initial Public Offering On July 20, 2018, the Company completed IPO whereby it sold 6,900,000 shares of common stock at a price to the public of $17.00 per share. Net proceeds from the IPO were approximately $106.5 million, net of underwriting discounts and commissions and offering costs. |
Equity Incentive Plans
Equity Incentive Plans | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Incentive Plans | 10. EQUITY INCENTIVE PLANS 2018 Incentive Award Plan In July 2018, the Company adopted the 2018 Incentive Award Plan (the “2018 Plan”). Under the 2018 Plan, which expires in July 2028, the Company may grant equity-based awards to individuals who are employees, officers, directors or consultants of the Company. Options issued under the 2018 Plan, will generally expire ten years from the date of grant and vest over a four-year period. As of September 30, 2019, 2,251,922 shares were available for future issuance under the 2018 Plan. The 2018 Plan contains a provision that allows annual increases in the number of shares available for issuance on the first day of each calendar year through January 1, 2028 in an amount equal to the lesser of: (i) 5% of the aggregate number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding calendar year, or (ii) such lesser amount determined by the Company. 2015 Stock Incentive Plan In February 2015, the Company adopted the Crinetics Pharmaceuticals, Inc. 2015 Stock Incentive Plan (the “2015 Plan”), which provided for the issuance of equity awards to the Company’s employees, members of its board of directors and consultants. In general, options issued under this plan vest over four years and expire after 10 years. Subsequent to the adoption of the 2018 Plan, no additional equity awards can be made under the 2015 Plan. Certain awards under the 2015 Plan allowed for exercise prior to vesting. Shares issued under such early-exercise provisions are subject to repurchase by the Company until they become fully vested. As of September 30, 2019, 40,242 unvested shares issued under early-exercise provisions were subject to repurchase by the Company. The condensed consolidated balance sheet reflects an unvested stock liability of $0.1 million as of September 30, 2019. 2018 Employee Stock Purchase Plan In July 2018, the Company adopted the 2018 Employee Stock Purchase Plan (the “ESPP”). The ESPP permits participants to purchase common stock through payroll deductions of up to 20% of their eligible compensation. As of September 30, 2019, an aggregate of 447,061 shares of common stock were available for issuance under the ESPP. The ESPP contains a provision that allows annual increases in the number of shares available for issuance on the first day of each calendar year through January 1, 2028 in an amount equal to the lesser of: (i) 1% of the aggregate number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding calendar year, or (ii) such lesser amount determined by the Company. Stock Options Stock option activity during the nine months ended September 30, 2019 under both of the 2015 Plan and the 2018 Plan is as follows: Weighted- Weighted- Aggregate Average Average Intrinsic Options Exercise Remaining Value Outstanding Price Term (000’s) Balance at December 31, 2018 2,339,157 $ 6.40 Granted 852,975 $ 24.40 Cancelled (9,119 ) $ 9.28 Exercised (76,117 ) $ 1.44 Balance at September 30, 2019 3,106,896 $ 11.45 8.6 $ 20,244 Exercisable at September 30, 2019 1,061,682 $ 6.10 8.1 $ 10,386 The aggregate intrinsic value in the above table is calculated as the difference between the closing price of the Company’s common stock at September 30, 2019 and the exercise price of stock options that had strike prices below the closing price. The total intrinsic value of options exercised during the first nine months of 2019 was $1.7 million. Fair Value of Stock Option Awards The Company utilizes the Black-Scholes option pricing model to value awards under its equity plans. The following table summarizes the weighted average assumptions used to estimate the fair value of stock options granted to employees under the Company’s stock option plans and the shares purchasable under the ESPP during the periods presented: Stock Option Plans 2019 2018 Expected term 5.9 years 6.0 years Expected volatility 78% 69% Risk-free interest rate 2.3% 2.8% Expected dividend yield —% —% Employee Stock Purchase Plan 2019 2018 Expected term 1.3 years 1.1 years Expected volatility 62% 66% Risk-free interest rate 2.3% 2.4% Expected dividend yield —% —% The key assumptions used in determining the fair value of equity awards, and the Company’s rationale, were as follows: (i) Expected term - Expected volatility - Risk-free interest rate - Expected dividend yield The weighted-average fair value of stock options granted to employees during the first nine months of 2019 and 2018 was $16.61 and $4.39 per share, respectively. Stock-Based Compensation Expense Stock-based compensation expense for the equity awards issued by the Company to employees and non-employees for the periods presented below was as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Included in research and development $ 864 $ 373 $ 2,242 $ 663 Included in general and administrative 990 402 2,221 810 Total $ 1,854 $ 775 $ 4,463 $ 1,473 Unrecognized stock-based compensation cost related to option awards was $19.0 million as of September 30, 2019, which is expected to be recognized over a remaining weighted-average period of approximately 3.1 years. Unrecognized stock-based compensation cost related to the ESPP was $0.4 million as of September 30, 2019, which is expected to be recognized over a remaining weighted-average period of approximately 1.0 years. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 11. NET LOSS PER SHARE Potentially dilutive securities not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows in common stock equivalent shares (in thousands): September 30, 2019 2018 Common stock options 3,107 2,289 Unvested common stock subject to repurchase 40 133 3,147 2,422 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Crinetics Pharmaceuticals, Inc. (the “Company”) is a clinical stage pharmaceutical company incorporated in Delaware on November 18, 2008 and based in San Diego, California. The Company is focused on the discovery, development and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors. In January 2017, the Company established a wholly owned Australian subsidiary, Crinetics Australia Pty Ltd (“CAPL”), in order to conduct various preclinical and clinical activities for its development candidates. On July 6, 2018, the Company effected a 1-for-3.29 reverse stock split of its common stock. The par value and the authorized shares of the common stock were not adjusted as a result of the reverse stock split. The reverse stock split resulted in an adjustment to the conversion prices of the Company’s Series A and B preferred stock to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion. The accompanying condensed consolidated financial statements and notes to the condensed consolidated financial statements give retroactive effect to the reverse stock split for all periods presented. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying interim condensed consolidated balance sheet as of September 30, 2019, the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2019 and 2018, the condensed consolidated statements of convertible preferred stock and stockholders’ equity (deficit) for the three and nine months ended September 30, 2019 and 2018, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018, and the related disclosures are unaudited. In management’s opinion, the unaudited interim financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2019 and the results of its operations and cash flows for the nine months ended September 30, 2019 and 2018 in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results expected for the full fiscal year or any other interim period. |
Principles of Consolidation and Foreign Currency Transactions | Principles of Consolidation and Foreign Currency Transactions The condensed consolidated financial statements include the accounts of the Company and CAPL. All intercompany accounts and transactions have been eliminated in consolidation. The functional currency of both the Company and CAPL is the U.S. dollar. Assets and liabilities that are not denominated in the functional currency are remeasured into U.S. dollars at foreign currency exchange rates in effect at the balance sheet date except for nonmonetary assets, which are remeasured at historical foreign currency exchange rates in effect at the date of transaction. Net realized and unrealized gains and losses from foreign currency transactions and remeasurement are reported in other income (expense), in the condensed consolidated statements of operations and were not material for all periods presented. |
Segment Reporting | Segment Reporting Operating segments are identified as components of an enterprise about which discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. The Company views its operations and manages its business in one operating segment. |
Liquidity and Going Concern | Liquidity and Going Concern From inception, the Company has devoted substantially all of its efforts to drug discovery and development and conducting preclinical studies and clinical trials. The Company has a limited operating history and the sales and income potential of the Company’s business and market are unproven. Successful transition to attaining profitable operations is dependent upon achieving a level of revenues adequate to support the Company’s cost structure. As of September 30, 2019, the Company had $131.7 million in unrestricted cash, cash equivalents and investment securities. The Company believes it has sufficient cash to meet its funding requirements for at least the next 12 months. However, the Company has experienced net losses and negative cash flows from operating activities since its inception and has an accumulated deficit of $79.3 million as of September 30, 2019. The Company expects to continue to incur net losses for the foreseeable future and believes it will need to raise substantial additional capital to accomplish its business plan over the next several years. The Company plans to continue to fund its losses from operations and capital funding needs through a combination of equity offerings, debt financings or other sources, including potential collaborations, licenses and other similar arrangements. If the Company is not able to secure adequate additional funding, the Company may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, or suspend or curtail planned programs. Any of these actions could materially harm the Company’s business, results of operations and future prospects. There can be no assurance as to the availability or terms upon which such financing and capital might be available in the future. On August 13, 2019 the Company entered into a Sales Agreement (the “Sales Agreement”) with SVB Leerink LLC and Cantor Fitzgerald & Co. (collectively, the “Sales Agents”), under which the Company may, from time to time, sell shares of its common stock having an aggregate offering price of up to $75.0 million through the Sales Agents (the “ATM Offering”). On August 13, 2019, the Company also filed a registration statement on Form S-3 (the “Shelf Registration Statement”), covering the offering of up to $300.0 million of common stock, preferred stock, debt securities, warrants and units. The Shelf Registration Statement included a prospectus covering the offering, issuance and sale of up to $75.0 million of the Company’s common stock from time to time through the ATM Offering. The Registration Statement became effective on August 29, 2019. The shares to be sold under the Sales Agreement may be issued and sold pursuant to the Shelf Registration Statement. |
Use of Estimates | Use of Estimates The Company’s condensed consolidated financial statements are prepared in accordance with U.S. GAAP. The preparation of the Company’s condensed consolidated financial statements requires it to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Company’s condensed consolidated financial statements and accompanying notes. The most significant estimates in the Company’s condensed consolidated financial statements relate to revenue recognition, accrued amounts receivable under the Australian research and development tax incentive program, accrued expenses and associated research and development expense, the assumptions underlying the determination of the estimated incremental borrowing rate for the determination of the operating lease right-of-use asset, and the assumptions underlying the determination of the fair value of equity awards for purposes of determining stock-based compensation. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. |
Fair Value Measurements | Fair Value Measurements The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or non-recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying amounts of the Company’s current financial assets, restricted cash and current financial liabilities are considered to be representative of their respective fair values because of the short-term nature of those instruments. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts. Restricted cash represents cash held as collateral for the Company’s facility lease and is reported as a long-term asset in the accompanying condensed consolidated balance sheets. |
Investment Securities | Investment Securities All investments have been classified as “available-for-sale” and are carried at fair value as determined based upon quoted market prices or pricing models for similar securities at period end. Investments with contractual maturities less than 12 months at the balance sheet date are considered short-term investments. Investments with contractual maturities beyond one year are also classified as short-term due to the Company’s ability to liquidate the investment for use in operations within the next 12 months. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. The Company has not realized any significant gains or losses on sales of available-for-sale investment securities during any of the periods presented. As all of the Company’s investment holdings are in the form of debt securities, unrealized gains and losses that are determined to be temporary in nature are reported as a component of accumulated other comprehensive income (loss). A decline in the fair value of any security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. Interest income is recognized when earned and includes the amortization of purchase premiums and accretion of purchase discounts. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to significant risk on its cash balances due to the financial position of the depository institution in which those deposits are held. Additionally, the Company has established guidelines regarding approved investments and maturities of investments, which are designed to maintain safety and liquidity. |
Leases | Leases The Company determines if an arrangement is a lease at the inception of the arrangement. Leases with a term longer than 12 months that are determined to be operating leases are included in operating lease assets, accrued expenses and other current liabilities and noncurrent operating lease liabilities in the condensed consolidated balance sheets based on the present value of the minimum lease payments called for under the arrangement. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. |
Grant Revenue Recognition | Grant Revenue Recognition The Company’s grant revenues are derived from Small Business Innovation Research (“SBIR”) grants from the National Institutes of Health. The Company recognizes SBIR grant revenue as reimbursable grant costs are incurred. The costs associated with these reimbursements are reflected as a component of research and development expense in the accompanying condensed consolidated statements of operations. Earnings in excess of billings are included as a component of prepaid expenses and other current assets. |
Research and Development Expenses | Research and Development Expenses Research and development expenses consist primarily of salaries, payroll taxes, employee benefits and stock-based compensation charges for those individuals involved in research and development efforts, as well as consulting expenses, third-party research and development expenses, laboratory supplies, clinical materials and overhead, including facilities and depreciation costs, offset by the Australian Tax Incentive discussed below. Research and development expenses are charged to expense as incurred. Payments made prior to the receipt of goods or services to be used in research and development are capitalized until the goods or services are received. Costs incurred under contracts with contract research organizations that conduct and manage the Company’s clinical trials are also included in research and development expenses. The financial terms and activities of these agreements vary from contract to contract and may result in uneven expense levels. Generally, these agreements set forth activities that drive the recording of expenses such as start-up and initiation activities, enrollment and treatment of patients, or the completion of other clinical trial activities. Expenses related to clinical trials are accrued based on estimates and/or representations from service providers regarding work performed, including actual level of patient enrollment, completion of patient studies and progress of the clinical trials. Other incidental costs related to patient enrollment or treatment are accrued when reasonably certain. If the amounts that the Company is obligated to pay under its clinical trial agreements are modified (for instance, as a result of changes in the clinical trial protocol or scope of work to be performed), the Company adjusts its accruals accordingly on a prospective basis. Revisions to contractual payment obligations are charged to expense in the period in which the facts that give rise to the revision become reasonably certain. |
Australian Research and Development Tax Incentive | Australian Research and Development Tax Incentive CAPL is eligible to obtain a cash refund from the Australian Taxation Office for eligible research and development expenditures under the Australian Research and Development Tax Incentive Program (the “Australian Tax Incentive”). The Australian Tax Incentive is recognized as a reduction to research and development expense when there is reasonable assurance that the Australian Tax Incentive will be received, the relevant expenditure has been incurred, and the amount can be reliably measured. The Company recognized a reduction to research and development expense of $0.3 million and $0.1 million for the three months ended September 30, 2019 and 2018, respectively, and a reduction to research and development expense of $0.6 million and $0.9 million for the nine months ended September 30, 2019 and 2018, respectively. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense represents the cost of the grant date fair value of awards over the requisite service period of the awards (usually the vesting period) on a straight-line basis. For stock awards for which vesting is subject to performance-based milestones, the expense is recorded over the remaining service period after the point when the achievement of the milestone is probable, or the performance condition has been achieved. The Company estimates the fair value of all stock option grants using the Black-Scholes option pricing model and recognizes forfeitures as they occur. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is comprised of the Company’s net loss for all periods presented and the unrealized gain or loss on investment securities held as of September 30, 2019. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock and dilutive common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. Dilutive common stock equivalents are comprised of convertible preferred stock, common stock subject to repurchase, and options outstanding under the Company’s stock option plan. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as inclusion of the potentially dilutive securities would be antidilutive. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements ASU 2016-02 In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. ASU 2016-02 also requires disclosures to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. On January 1, 2019, the Company adopted ASU 2016-02 using the modified retrospective transition method. Under this transition method, the Company recognized and measured leases that existed at the adoption date in the condensed consolidated balance sheet as of January 1, 2019. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, discounted at the rate implicit in the lease. If the rate implicit in the lease cannot be determined, Topic 842 requires the use of the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term for a similar amount to the lease payments in a similar economic environment. The operating lease ROU asset is also adjusted for any prepaid or accrued lease payments and any lease incentives received. Operating lease terms may include options to extend or terminate the lease when it is reasonably certain that these options will be exercised. Further, the Company has elected to recognize short-term lease payments on a straight-line basis over the associated lease term and variable lease payments in the period in which the obligation for those payments is incurred. Short-term and variable lease payments were not material in the first nine months of 2019. In connection with the adoption of ASU 2016-02, the Company elected the package of practical expedients requiring no reassessment of whether any expired or existing contracts contain leases, the lease classification of any expired or existing leases, or initial direct costs for any existing leases. The Company also made accounting policy elections not to apply the recognition requirements Adoption of ASU 2016-02 resulted in recognition of a ASU 2018-07 In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”), which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees and applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. ASU 2018-07 was adopted by the Company on January 1, 2019 using the modified retrospective transition method with no impact on the condensed consolidated financial statements. As a result of adopting ASU 2018-07, the estimated fair values of stock awards issued to non-employees are determined at issuance and are no longer subject to revaluation over their vesting terms. Recent Accounting Pronouncements ASU 2018-13 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Available-For-Sale Investment Securities Held by the Company | The following is a summary of the available-for-sale investment securities held by the Company as of September 30, 2019 and December 31, 2018 ( in thousands As of September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Available-for-sale investment securities: U.S. government and agency obligations $ 32,342 $ 126 $ — $ 32,468 Certificates of deposit 5,670 60 — 5,730 Commercial paper 17,559 — — 17,559 Corporate debt securities 9,325 12 — 9,337 Total $ 64,896 $ 198 $ — $ 65,094 As of December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Available-for-sale investment securities: U.S. government and agency obligations $ 42,193 $ 72 $ (1 ) $ 42,264 Certificates of deposit 5,408 — — 5,408 Commercial paper 47,686 — — 47,686 Corporate debt securities 23,554 2 (12 ) 23,544 Total $ 118,841 $ 74 $ (13 ) $ 118,902 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on Recurring Basis | Financial assets measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 were as follows ( in thousands As of September 30, 2019 Level 1 Level 2 Level 3 Total Investment securities: U.S. government and agency obligations $ 20,458 $ 12,010 $ — $ 32,468 Certificates of deposit — 5,730 — 5,730 Commercial paper — 17,559 — 17,559 Corporate debt securities — 9,337 — 9,337 Total assets measured at fair value $ 20,458 $ 44,636 $ — $ 65,094 As of December 31, 2018 Level 1 Level 2 Level 3 Total Investment securities: U.S. government and agency obligations $ 22,275 $ 19,989 $ — $ 42,264 Certificates of deposit — 5,408 — 5,408 Commercial paper — 47,686 — 47,686 Corporate debt securities — 23,544 — 23,544 Total assets measured at fair value $ 22,275 $ 96,627 $ — $ 118,902 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Components of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): September 30, 2019 December 31, 2018 Prepaid research and development costs $ 1,207 $ 8 Australian tax incentive receivable 574 1,016 SBIR grant receivable 205 568 Interest receivable 269 340 Prepaid expenses and other assets 1,476 876 Total $ 3,731 $ 2,808 |
Components of Property and Equipment | Property and equipment consist of the following (in thousands): September 30, 2019 December 31, 2018 Leasehold improvements $ 3,494 $ 3,494 Lab equipment 1,373 915 Office equipment 523 523 Computers and software 41 41 Property and equipment at cost 5,431 4,973 Less accumulated depreciation and amortization 1,396 741 Total $ 4,035 $ 4,232 |
Components of Accrued Expenses | Accrued expenses and other current liabilities consist of the following (in thousands): September 30, 2019 December 31, 2018 Accrued research and development costs $ 1,705 $ 3,634 Short-term operating lease liability 696 — Other accrued expenses 776 556 Total $ 3,177 $ 4,190 |
Operating Lease (Tables)
Operating Lease (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Payments Under Non-cancellable Operating Leases | As of September 30, 2019, future minimum payments under non-cancellable operating leases were as follows (in thousands): Year ending December 31, Minimum Payments 2019 (3 months) $ 276 2020 1,123 2021 1,173 2022 1,208 2023 1,244 Thereafter 2,151 Total future minimum lease payments 7,175 Less imputed interest 1,435 Total operating lease liability 5,740 Less current operating lease liability 696 Non-current operating lease liability $ 5,044 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity under 2015 Plan and 2018 Plan | Stock option activity during the nine months ended September 30, 2019 under both of the 2015 Plan and the 2018 Plan is as follows: Weighted- Weighted- Aggregate Average Average Intrinsic Options Exercise Remaining Value Outstanding Price Term (000’s) Balance at December 31, 2018 2,339,157 $ 6.40 Granted 852,975 $ 24.40 Cancelled (9,119 ) $ 9.28 Exercised (76,117 ) $ 1.44 Balance at September 30, 2019 3,106,896 $ 11.45 8.6 $ 20,244 Exercisable at September 30, 2019 1,061,682 $ 6.10 8.1 $ 10,386 |
Weighted Average Assumptions Used to Estimate Fair Value of Stock Options Granted to Employees | The Company utilizes the Black-Scholes option pricing model to value awards under its equity plans. The following table summarizes the weighted average assumptions used to estimate the fair value of stock options granted to employees under the Company’s stock option plans and the shares purchasable under the ESPP during the periods presented: Stock Option Plans 2019 2018 Expected term 5.9 years 6.0 years Expected volatility 78% 69% Risk-free interest rate 2.3% 2.8% Expected dividend yield —% —% Employee Stock Purchase Plan 2019 2018 Expected term 1.3 years 1.1 years Expected volatility 62% 66% Risk-free interest rate 2.3% 2.4% Expected dividend yield —% —% |
Summary of Stock-based Compensation Expense for the Equity Awards Issued to Employees and Non-Employees | Stock-based compensation expense for the equity awards issued by the Company to employees and non-employees for the periods presented below was as follows (in thousands): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Included in research and development $ 864 $ 373 $ 2,242 $ 663 Included in general and administrative 990 402 2,221 810 Total $ 1,854 $ 775 $ 4,463 $ 1,473 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Potentially Dilutive Securities not Included in Calculation of Diluted Net Loss Per Share | Potentially dilutive securities not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows in common stock equivalent shares (in thousands): September 30, 2019 2018 Common stock options 3,107 2,289 Unvested common stock subject to repurchase 40 133 3,147 2,422 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Details) $ in Thousands | Aug. 13, 2019USD ($) | Jul. 06, 2018 | Sep. 30, 2019USD ($)Segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Organization And Basis Of Presentation [Line Items] | |||||
Number of operating segments | Segment | 1 | ||||
Unrestricted cash, cash equivalents and investments securities | $ 131,700 | ||||
Accumulated deficit | $ 79,253 | $ 43,380 | |||
Maximum amount of common stock preferred stock debt securities warrants and units to be issued | $ 300,000 | ||||
Issuance and sale of Common Stock | 75,000 | $ 106,472 | |||
Registration Statement effective date | Aug. 29, 2019 | ||||
Minimum | |||||
Organization And Basis Of Presentation [Line Items] | |||||
Period of sufficient cash to meet its funding requirements | 12 months | ||||
Maximum [Member] | SVB Leerink LLC and Cantor Fitzgerald & Co. | |||||
Organization And Basis Of Presentation [Line Items] | |||||
Sale of common stock at offering price | $ 75,000 | ||||
Common Stock | |||||
Organization And Basis Of Presentation [Line Items] | |||||
Stock reverse stock split | 1-for-3.29 | ||||
Stock split conversion ratio | 0.3040 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease right-of-use asset | $ 2,570 | $ 2,570 | ||
Operating Lease, Liability | 5,740 | 5,740 | ||
ASU 2016-02 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease right-of-use asset | 2,800 | 2,800 | ||
Operating Lease, Liability | 6,200 | 6,200 | ||
Deferred rent | 3,400 | 3,400 | ||
Australian Research and Development Tax Incentive | Australian Taxation Office | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Tax incentive receivable, reductions to research and development expense | $ 300 | $ 100 | $ 600 | $ 900 |
Investment Securities - Summary
Investment Securities - Summary of Available-For-Sale Investment Securities Held by the Company (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale investment securities, Amortized Cost | $ 64,896 | $ 118,841 |
Available-for-sale investment securities, Gross Unrealized Gains | 198 | 74 |
Available-for-sale investment securities, Gross Unrealized Losses | (13) | |
Available-for-sale investment securities, Fair Market Value | 65,094 | 118,902 |
U.S. Government and Agency Obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale investment securities, Amortized Cost | 32,342 | 42,193 |
Available-for-sale investment securities, Gross Unrealized Gains | 126 | 72 |
Available-for-sale investment securities, Gross Unrealized Losses | (1) | |
Available-for-sale investment securities, Fair Market Value | 32,468 | 42,264 |
Certificates of Deposit | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale investment securities, Amortized Cost | 5,670 | 5,408 |
Available-for-sale investment securities, Gross Unrealized Gains | 60 | |
Available-for-sale investment securities, Fair Market Value | 5,730 | 5,408 |
Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale investment securities, Amortized Cost | 17,559 | 47,686 |
Available-for-sale investment securities, Fair Market Value | 17,559 | 47,686 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale investment securities, Amortized Cost | 9,325 | 23,554 |
Available-for-sale investment securities, Gross Unrealized Gains | 12 | 2 |
Available-for-sale investment securities, Gross Unrealized Losses | (12) | |
Available-for-sale investment securities, Fair Market Value | $ 9,337 | $ 23,544 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | Sep. 30, 2019 | Dec. 31, 2018 |
Investments Debt And Equity Securities [Abstract] | ||
Available-for-sale investment securities maturity period, maximum | 24 months | 24 months |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total assets measured at fair value | $ 65,094 | $ 118,902 |
Level 1 | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total assets measured at fair value | 20,458 | 22,275 |
Level 2 | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total assets measured at fair value | 44,636 | 96,627 |
U.S. Government and Agency Obligations | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total assets measured at fair value | 32,468 | 42,264 |
U.S. Government and Agency Obligations | Level 1 | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total assets measured at fair value | 20,458 | 22,275 |
U.S. Government and Agency Obligations | Level 2 | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total assets measured at fair value | 12,010 | 19,989 |
Certificates of Deposit | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total assets measured at fair value | 5,730 | 5,408 |
Certificates of Deposit | Level 2 | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total assets measured at fair value | 5,730 | 5,408 |
Commercial Paper | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total assets measured at fair value | 17,559 | 47,686 |
Commercial Paper | Level 2 | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total assets measured at fair value | 17,559 | 47,686 |
Corporate Debt Securities | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total assets measured at fair value | 9,337 | 23,544 |
Corporate Debt Securities | Level 2 | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Total assets measured at fair value | $ 9,337 | $ 23,544 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair value assets transferred into level 3 | $ 0 |
Fair value assets transferred into level 3 | 0 |
Fair value assets transferred into level 3 | 0 |
Fair value assets transferred into level 3 | $ 0 |
Balance Sheet Details - Compone
Balance Sheet Details - Components of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid research and development costs | $ 1,207 | $ 8 |
Australian tax incentive receivable | 574 | 1,016 |
SBIR grant receivable | 205 | 568 |
Interest receivable | 269 | 340 |
Prepaid expenses and other assets | 1,476 | 876 |
Total | $ 3,731 | $ 2,808 |
Balance Sheet Details - Compo_2
Balance Sheet Details - Components of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment at cost | $ 5,431 | $ 4,973 |
Less accumulated depreciation and amortization | 1,396 | 741 |
Total | 4,035 | 4,232 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment at cost | 3,494 | 3,494 |
Lab Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment at cost | 1,373 | 915 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment at cost | 523 | 523 |
Computers and Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment at cost | $ 41 | $ 41 |
Balance Sheet Details - Compo_3
Balance Sheet Details - Components of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued research and development costs | $ 1,705 | $ 3,634 |
Short-term operating lease liability | 696 | |
Other accrued expenses | 776 | 556 |
Total | $ 3,177 | $ 4,190 |
Operating Lease - Additional In
Operating Lease - Additional Information (Details) - 2018 Operating Lease - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Leased Assets [Line Items] | ||||
Operating lease, initial term | 7 years | 7 years | ||
Operating lease expiration period | 2025-08 | |||
Operating lease, option to extend term | five years | |||
Lessee,operating lease, discount rate | 8.00% | 8.00% | ||
Irrevocable letter of credit | $ 0.5 | $ 0.5 | ||
Rent expense | $ 0.2 | $ 0.2 | 0.7 | $ 0.4 |
Cash paid for operating lease liabilities | $ 0.8 |
Operating Lease - Schedule of F
Operating Lease - Schedule of Future Minimum Payments Under Non-cancellable Operating Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (3 months) | $ 276 |
2020 | 1,123 |
2021 | 1,173 |
2022 | 1,208 |
2023 | 1,244 |
Thereafter | 2,151 |
Total future minimum lease payments | 7,175 |
Less imputed interest | 1,435 |
Total operating lease liability | 5,740 |
Less current operating lease liability | 696 |
Non-current operating lease liability | $ 5,044 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) - USD ($) $ in Thousands | Jul. 20, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Jan. 01, 2018 |
Temporary Equity [Line Items] | ||||
Net proceeds from issuance of convertible preferred stock | $ 63,266 | |||
Series A Convertible Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Convertible preferred,Shares Outstanding | 28,763,179 | |||
Series A and B Convertible Preferred Stock | Initial Public Offering | ||||
Temporary Equity [Line Items] | ||||
Stock issued upon conversion of convertible securities | 14,712,571 | |||
Series B Convertible Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Convertible preferred stock, shares issued | 19,641,200 | |||
Net proceeds from issuance of convertible preferred stock | $ 63,500 | |||
Convertible preferred stock, issuance costs | $ 200 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Jul. 20, 2018 | Sep. 30, 2019 | Dec. 31, 2018 |
Common stock and paid-in capital, par value | $ 0.001 | $ 0.001 | |
Initial Public Offering | |||
Sale of common stock | 6,900,000 | ||
Common stock and paid-in capital, par value | $ 17 | ||
Proceeds from issuance initial public offering | $ 106.5 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended | ||
Jul. 31, 2018 | Feb. 28, 2015 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total intrinsic value of options exercised | $ 1.7 | |||
Dividend yield | 0.00% | |||
Weighted-average fair value of stock options granted to employees per share | $ 16.61 | $ 4.39 | ||
Unrecognized stock-based compensation cost | $ 19 | |||
Weighted-average period of unrecognized stock-based compensation cost expected to be recognized over remaining period | 3 years 1 month 6 days | |||
ESPP | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Maximum percentage of eligible compensation to purchase common stock through payroll deductions | 20.00% | |||
Weighted-average period of unrecognized stock-based compensation cost expected to be recognized over remaining period | 1 year | |||
Unrecognized stock-based compensation cost | $ 0.4 | |||
Common Stock | ESPP | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Plan expiration date | Jan. 1, 2028 | |||
Shares of common stock available for issuance | 447,061 | |||
2018 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Plan expiration period | 2028-07 | |||
Plan expiration term | 10 years | |||
Vesting period | 4 years | |||
Remaining shares available for future issuance | 2,251,922 | |||
Plan expiration date | Jan. 1, 2028 | |||
Annual increase in the number of shares available for issuance | 5.00% | |||
2015 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Plan expiration term | 10 years | |||
Vesting period | 4 years | |||
Shares issued under early-exercise provisions subject to repurchase | 40,242 | |||
Unvested stock liability | $ 0.1 |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of Stock Option Activity under 2015 Plan and 2018 Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Options Outstanding, Beginning Balance | 2,339,157 |
Options Outstanding, Granted | 852,975 |
Options Outstanding, Cancelled | (9,119) |
Options Outstanding, Exercised | (76,117) |
Options Outstanding, Ending Balance | 3,106,896 |
Options Exercisable, Ending Balance | 1,061,682 |
Weighted-Average Exercise Price, Beginning Balance | $ 6.40 |
Weighted-Average Exercise Price, Granted | 24.40 |
Weighted-Average Exercise Price, Cancelled | 9.28 |
Weighted Average Exercise Price, Exercised | 1.44 |
Weighted-Average Exercise Price, Ending Balance | 11.45 |
Weighted-Average Exercise Price, Exercisable | $ 6.10 |
Weighted-Average Remaining Term, Ending Balance | 8 years 7 months 6 days |
Weighted-Average Remaining Term, Exercisable | 8 years 1 month 6 days |
Aggregate Intrinsic Value, Ending balance | $ 20,244 |
Aggregate Intrinsic Value, Exercisable | $ 10,386 |
Equity Incentive Plans - Weight
Equity Incentive Plans - Weighted Average Assumptions Underlying Fair Value Calculations for Stock Option Awards (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | |
ESPP | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term | 1 year 3 months 18 days | 1 year 1 month 6 days |
Expected volatility | 62.00% | 66.00% |
Risk-free interest rate | 2.30% | 2.40% |
Stock Options Plans | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term | 5 years 10 months 24 days | 6 years |
Expected volatility | 78.00% | 69.00% |
Risk-free interest rate | 2.30% | 2.80% |
Equity Incentive Plans - Stock-
Equity Incentive Plans - Stock-based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,854 | $ 775 | $ 4,463 | $ 1,473 |
Included in Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 864 | 373 | 2,242 | 663 |
Included in General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 990 | $ 402 | $ 2,221 | $ 810 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Potentially Dilutive Securities not Included in Calculation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities (in common stock equivalent shares) excluded from calculation of diluted net loss per share | 3,147 | 2,422 |
Common Stock Option | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities (in common stock equivalent shares) excluded from calculation of diluted net loss per share | 3,107 | 2,289 |
Unvested Common Stock Subject to Repurchase | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities (in common stock equivalent shares) excluded from calculation of diluted net loss per share | 40 | 133 |