Verrica Pharmaceuticals (VRCA) 10-Q 9 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 05, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Trading Symbol	VRCA
Entity Interactive Data Current	Yes
Entity Registrant Name	Verrica Pharmaceuticals Inc.
Entity Central Index Key	0001660334
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		25,865,542
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transaction Period	true
Entity File Number	001-38529
Entity Tax Identification Number	46-3137900
Title of 12(b) Security	Common Stock, $0.0001 par value
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	10 North High Street
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	West Chester
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19380
City Area Code	484
Local Phone Number	453-3300

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 17,198,000	$ 9,241,000
Marketable securities	54,683,000	52,776,000
Prepaid expenses and other assets	2,093,000	2,966,000
Total current assets	73,974,000	64,983,000
Property and equipment, net	2,708,000	2,090,000
Operating lease right-of-use asset	1,891,000	111,000
Other non-current assets	1,363,000	1,240,000
Total assets	79,936,000	68,424,000
Current liabilities:
Accounts payable	179,000	1,185,000
Accrued expenses and other current liabilities	3,099,000	2,036,000
Operating lease liability	245,000	130,000
Deferred revenue	500,000
Current debt, net	34,980,000
Total current liabilities	39,003,000	3,351,000
Operating lease liability	1,751,000	58,000
Total liabilities	40,754,000	3,409,000
Commitments and Contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2020 and December 31, 2019
Common stock, $0.0001 par value; 200,000,000 authorized; 25,970,686 shares issued and 25,865,542 shares outstanding as of September 30, 2020 and 25,912,137 shares issued and 25,786,330 shares outstanding as of December 31, 2019	3,000	3,000
Treasury stock, at cost, 105,144 shares as of September 30, 2020 and December 31, 2019	0	0
Additional paid-in capital	130,528,000	126,594,000
Subscription receivable	(446,000)	(410,000)
Accumulated deficit	(90,909,000)	(61,192,000)
Accumulated other comprehensive gain	6,000	20,000
Total stockholders’ equity	39,182,000	65,015,000
Total liabilities and stockholders’ equity	$ 79,936,000	$ 68,424,000

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	25,970,686	25,912,137
Common stock, shares outstanding	25,865,542	25,786,330
Treasury stock, shares	105,144	105,144

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Operating expenses:
Research and development	$ 4,988	$ 3,049	$ 13,401	$ 11,464
General and administrative	4,649	3,494	14,747	10,626
Total operating expenses	9,637	6,543	28,148	22,090
Loss from operations	(9,637)	(6,543)	(28,148)	(22,090)
Other income (expense):
Interest income	69	453	473	1,523
Interest expense	(918)		(2,042)
Other expense				(3)
Total other (expense) income	(849)	453	(1,569)	1,520
Net loss	$ (10,486)	$ (6,090)	$ (29,717)	$ (20,570)
Net loss per share, basic and diluted	$ (0.42)	$ (0.24)	$ (1.19)	$ (0.83)
Weighted average common shares outstanding, basic and diluted	24,988,939	24,893,036	24,972,972	24,875,589
Other comprehensive gain:
Unrealized gain on marketable securities	$ (26)	$ (11)	$ (14)	$ 44
Comprehensive loss	$ (10,512)	$ (6,101)	$ (29,731)	$ (20,526)

CONDENSED STATEMENTS OF STOCKHO

CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Additional Paid-In Capital [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]	Subscription Receivable [Member]	Accumulated Deficit [Member]	Accumulated Deficit [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Gain (Loss) [Member]
Beginning Balance at Dec. 31, 2018	$ 89,429	$ 3	$ 122,526	$ (98)		$ (33,083)	$ 98		$ (17)
Beginning Balance (shares) at Dec. 31, 2018		25,809,900						105,144
Stock-based compensation	780		780
Exercise of stock options	3		3
Exercise of stock options (shares)		3,729
Net loss	(7,479)					(7,479)
Unrealized gain (loss) on marketable securities	$ 28								28
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201807Member
Ending Balance at Mar. 31, 2019	$ 82,761	$ 3	123,211			(40,464)			11
Ending Balance (shares) at Mar. 31, 2019		25,813,629						105,144
Beginning Balance at Dec. 31, 2018	89,429	$ 3	122,526	$ (98)		(33,083)	$ 98		(17)
Beginning Balance (shares) at Dec. 31, 2018		25,809,900						105,144
Net loss	(20,570)
Unrealized gain (loss) on marketable securities	44
Ending Balance at Sep. 30, 2019	71,653	$ 3	125,178			(53,555)			27
Ending Balance (shares) at Sep. 30, 2019		25,849,941						105,144
Beginning Balance at Mar. 31, 2019	82,761	$ 3	123,211			(40,464)			11
Beginning Balance (shares) at Mar. 31, 2019		25,813,629						105,144
Stock-based compensation	846		846
Exercise of stock options	212		212
Exercise of stock options (shares)		31,812
Net loss	(7,001)					(7,001)
Unrealized gain (loss) on marketable securities	27								27
Ending Balance at Jun. 30, 2019	76,845	$ 3	124,269			(47,465)			38
Ending Balance (shares) at Jun. 30, 2019		25,845,441						105,144
Stock-based compensation	905		905
Exercise of stock options	4		4
Exercise of stock options (shares)		4,500
Net loss	(6,090)					(6,090)
Unrealized gain (loss) on marketable securities	(11)								(11)
Ending Balance at Sep. 30, 2019	71,653	$ 3	125,178			(53,555)			27
Ending Balance (shares) at Sep. 30, 2019		25,849,941						105,144
Beginning Balance at Dec. 31, 2019	65,015	$ 3	126,594		$ (410)	(61,192)			20
Beginning Balance (shares) at Dec. 31, 2019		25,912,137						105,144
Repayment of subscription receivable	410				410
Stock-based compensation	998		998
Exercise of stock options	7		7
Exercise of stock options (shares)		7,500
Net loss	(9,822)					(9,822)
Ending Balance at Mar. 31, 2020	56,608	$ 3	127,599			(71,014)			20
Ending Balance (shares) at Mar. 31, 2020		25,919,637						105,144
Beginning Balance at Dec. 31, 2019	$ 65,015	$ 3	126,594		(410)	(61,192)			20
Beginning Balance (shares) at Dec. 31, 2019		25,912,137						105,144
Exercise of stock options (shares)	58,549
Net loss	$ (29,717)
Unrealized gain (loss) on marketable securities	(14)
Ending Balance at Sep. 30, 2020	39,182	$ 3	130,528		(446)	(90,909)			6
Ending Balance (shares) at Sep. 30, 2020		25,970,686						105,144
Beginning Balance at Mar. 31, 2020	56,608	$ 3	127,599			(71,014)			20
Beginning Balance (shares) at Mar. 31, 2020		25,919,637						105,144
Stock-based compensation	1,252		1,252
Net loss	(9,409)					(9,409)
Unrealized gain (loss) on marketable securities	12								12
Ending Balance at Jun. 30, 2020	48,463	$ 3	128,851			(80,423)			32
Ending Balance (shares) at Jun. 30, 2020		25,919,637						105,144
Subscription receivable			446		(446)
Subscription receivable (shares)		51,049
Stock-based compensation	1,231		1,231
Net loss	(10,486)					(10,486)
Unrealized gain (loss) on marketable securities	(26)								(26)
Ending Balance at Sep. 30, 2020	$ 39,182	$ 3	$ 130,528		$ (446)	$ (90,909)			$ 6
Ending Balance (shares) at Sep. 30, 2020		25,970,686						105,144

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities
Net loss	$ (29,717)	$ (20,570)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	3,481	2,531
Accretion of discounts on marketable securities	(125)	(880)
Depreciation expense	31	38
Non cash interest expense	597
Reduction in operating lease right-of-use asset	130	126
Changes in operating assets and liabilities:
Prepaid expenses and other assets	873	(1,619)
Other non-current assets	(10)	(19)
Accounts payable	(1,006)	89
Accrued expenses and other current liabilities	1,240	1,235
Accounts payable and accrued expenses - related party		(38)
Deferred revenue	500
Operating lease liability	(102)	(88)
Net cash used in operating activities	(24,108)	(19,195)
Cash flows from investing activities
Sales and maturities of marketable securities	57,749	93,215
Purchases of marketable securities	(59,545)	(73,231)
Purchases of property and equipment	(926)	(679)
Net cash (used in) provided by investing activities	(2,722)	19,305
Cash flows from financing activities
Proceeds from exercise of stock options	7	219
Proceeds from issuance of debt, net	34,460
Debt issuance costs	(90)
Repayment of subscription receivable	410
Net cash provided by financing activities	34,787	219
Net increase in cash and cash equivalents	7,957	329
Cash and cash equivalents at the beginning of the period	9,241	10,271
Cash and cash equivalents at the end of the period	17,198	10,600
Supplemental disclosure of noncash investing and financing activities:
Property and equipment purchases payable or accrued at period end	455	441
Subscription receivable on exercise of options	446
Right-of-use asset obtained in exchange for lease obligation	1,910
Change in unrealized gain on marketable securities	(14)	$ 44
Cash paid for interest	$ 1,234

Nature of Business

Nature of Business	9 Months Ended
	Sep. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Nature of Business	Note 1—Nature of Business Verrica Pharmaceuticals Inc. (the “Company”) was formed on July 3, 2013 and is incorporated in the State of Delaware. The Company is a dermatology therapeutics company committed to the development and commercialization of novel treatments that provide meaningful benefit for people living with skin diseases. Liquidity and Capital Resources In July 2020, the Company received a Complete Response Letter (the “CRL”) from the U.S. Food and Drug Administration (the “FDA”), for its new drug application, (“NDA”), for VP-102, the Company’s investigational, proprietary, drug-device combination for the treatment of molluscum contagiosum. The CRL indicated the need for additional information regarding certain aspects of the chemistry, manufacturing and controls (“CMC”), process for the drug/device combination as well as human factors validation. A Type A meeting was held with the FDA to discuss the issues that were identified in the CRL and the resubmission of the NDA for VP-102. The Company has incurred substantial operating losses since inception and expects to continue to incur significant operating losses for the foreseeable future and may never become profitable. As of September 30, 2020, the Company had an accumulated deficit of $90.9 million. In March 2020, the Company entered into a Mezzanine Loan Agreement (see Note 7) and borrowed $35.0 million that remains outstanding as of September 30, 2020. As discussed in Note 7, the Mezzanine Loan Agreement was amended on October 26, 2020 and now includes a minimum liquidity covenant. If the Company is not in compliance with the minimum liquidity ratio covenant, the outstanding debt and any related final payment fees, prepayment fees and accrued interest become due on demand. The Company believes that, without additional financing, it is probable that it will not be in compliance with the minimum liquidity ratio covenant at some point in the next twelve months. Since inception, the Company has financed its operations through sales of convertible preferred stock and the sale of common stock in the Company’s initial public offering, with aggregate gross proceeds of $123.2 million and net proceeds of $114.9 million and the issuance of debt with aggregate gross proceeds of $35.0 million and net proceeds of $34.5 million. As of September 30, 2020, the Company had cash, cash equivalents and marketable securities of $71.9 million.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Significant Accounting Policies	Note 2—Significant Accounting Policies Basis of Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the unaudited interim condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. They may not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2019 filed with the Securities and Exchange Commission (the “SEC”) on March 13, 2020. The results of operations for any interim periods are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. The Company has been actively monitoring the novel coronavirus (“COVID-19”) pandemic and its impact globally. Management believes the financial results for the three and nine month periods ended September 30, 2020 were not significantly impacted by COVID-19. In addition, management believes the remote working arrangements, travel restrictions and any other regulations imposed by various governmental jurisdictions have had limited impact on the Company’s ability to maintain internal operations during the quarter. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat COVID-19. As a direct result of COVID-19, the Company decided to delay the initiation of its Phase 3 clinical trials to evaluate VP-102 in subjects with common warts as well as its planned Phase 2 clinical trial to evaluate VP-103 in subjects with plantar warts until conditions are appropriate. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. These estimates and assumptions are based on current facts, historical experience and other pertinent industry and regulatory authority information, including the potential future effects of COVID-19, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. S ignificant Accounting Policies There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract Net Loss per Share Net loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. Diluted net loss per share excludes the potential impact of common stock options and unvested shares of restricted stock because their effect would be anti-dilutive due to the Company’s net loss. Since the Company had a net loss in each of the periods presented, basic and diluted net loss per common share are the same. The table below provides potential shares outstanding that were not included in the computation of diluted net loss per common share, as the inclusion of these securities would have been anti-dilutive: As of September 30, 2020 2019 Shares issuable upon exercise of stock options 2,812,752 1,986,201 Non-vested shares under restricted stock grants 1,323,859 848,859

Investments In Marketable Secur

Investments In Marketable Securities	9 Months Ended
	Sep. 30, 2020
Investments [Abstract]
Investments in Marketable Securities	Note 3—Investments in Marketable Securities Investments in marketable securities consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 11,115 $ 4 $ — $ 11,119 Commercial paper 42,061 2 — 42,063 Asset-backed securities 1,501 — — 1,501 Total marketable securities $ 54,677 $ 6 $ — $ 54,683 December 31, 2019 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 7,397 $ 3 $ — $ 7,400 Commercial paper 31,913 7 (1 ) 31,919 Asset-backed securities 13,446 11 — 13,457 Total marketable securities $ 52,756 $ 21 $ (1 ) $ 52,776 Unrealized gains and losses on marketable securities are recorded as a separate component of accumulated other comprehensive gain included in stockholders’ equity. Realized gains (losses) are included in interest income (expense) in the statement of operations and comprehensive loss on a specific identification basis. There were no marketable securities with a maturity of greater than one year for either period presented. To date, the Company has not recorded any impairment charges on marketable securities related to other-than-temporary declines in market value. Accretion of bond discount on marketable securities and interest income on marketable securities is recorded as interest income on the statement of operations and comprehensive loss. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1 — Quoted market prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following tables presents fair value of the Company’s marketable securities (in thousands): Fair Value Measurement as of September 30, 2020 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 11,119 $ — $ — $ 11,119 Commercial paper — 42,063 — 42,063 Asset-backed securities — 1,501 — 1,501 Total assets $ 11,119 $ 43,564 $ — $ 54,683 Fair Value Measurement as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 7,400 $ — $ — $ 7,400 Commercial paper — 31,919 — 31,919 Asset-backed securities — 13,457 — 13,457 Total assets $ 7,400 $ 45,376 $ — $ 52,776

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2020
Property Plant And Equipment [Abstract]
Property and Equipment	Note 4—Property and Equipment Property and equipment, net consisted of (in thousands): As of As of September 30, December 31, 2020 2019 Leasehold improvements $ 68 $ 68 Office furniture and fixtures 48 48 Office equipment 52 31 Manufacturing equipment 17 — Construction in process 2,638 2,027 2,823 2,174 Accumulated depreciation (115 ) (84 ) Total property and equipment, net $ 2,708 $ 2,090 The Company has recorded an asset classified as construction in process

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Sep. 30, 2020
Payables And Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Note 5—Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): As of September 30, 2020 As of December 31, 2019 Compensation and related costs $ 1,271 $ 1,195 Clinical trials and drug development 840 733 Construction in process 455 — Professional fees 222 89 Interest expense 211 — Other accrued expenses and other current liabilities 100 19 Total accrued expenses and other current liabilities $ 3,099 $ 2,036

Leases

Leases	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Leases	N ote 6—Leases Effective January 1, 2019, the Company accounts for its leases under ASC 842, Leases (Topic 842) In calculating the right-of-use asset and lease liability, the Company elects to combine lease and non-lease components. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term. The Company does not act as a lessor or have any leases classified as financing leases. The Company leases office space in West Chester, Pennsylvania under an agreement classified as an operating lease that expires in May 2021. On July 1, 2019, the Company entered into a lease for 5,829 square feet of office space located in West Chester, Pennsylvania. On March 12, 2020 the Company entered into an amendment to the lease agreement. The amendment expands the original premises to include 5,372 square feet of additional office space increasing the total rentable premise to 11,201 square feet of space. For the first six months following the commencement date of September 1, 2020, the base rent is based on the square footage of the original premises. The initial term will expire on September 1, 2027. Base rent over the initial term is approximately $2.4 million, and the Company is also responsible for its share of the landlord’s operating expense. revised remaining useful life . In addition, the useful life of associated leasehold improvements was accelerated to reflect the expected abandonment of the property, such that they were fully amortized when the property was vacated. At the commencement date of the new lease, the Company recorded a right-of-use asset of $1.9 million and a lease liability of $1.9 million on the condensed balance sheet. The components of lease expense are as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease: Operating lease costs $ 35 $ 71 $ 141 $ 152 Short-term lease costs 3 4 16 14 Total rent expense $ 38 $ 75 $ 157 $ 166 Maturities of the Company’s operating lease, excluding short-term leases, as of September 30, 2020 are as follows (in thousands): Remainder of 2020 $ 93 2021 384 2022 344 2023 350 2024 355 Thereafter 942 Total undiscounted lease liability 2,468 Less: Imputed interest (472 ) Operating lease liability $ 1,996 The weighted-average remaining term of the Company’s operating lease was 6.7 years and the weighted-average discount rate used to measure the present value of the Company’s operating lease liability was 6.27% as of September 30, 2020.

Debt

Debt	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Debt	Note 7—Debt On March 10, 2020 (the “Effective Date”), the Company entered into (i) a mezzanine loan and security agreement (the “Mezzanine Loan Agreement”) with Silicon Valley Bank, as administrative agent and collateral agent (the “Agent”), and Silicon Valley Bank and West River Innovation Lending Fund VIII, L.P., as lenders (the “Mezzanine Lenders”), pursuant to which the Mezzanine Lenders have agreed to lend the Company up to $ 50.0 million in a series of term loans, and (ii) a loan and security agreement (the “Senior Loan Agreement”, and together with the Mezzanine Loan Agreement, the “Loan Agreements”) with Silicon Valley Bank, as lender (the “Senior Lender”, and together with the Mezzanine Lenders, the “Lenders”), pursuant to which the Senior Lender has agreed to provide the Company with a revolving line of credit of up to $ 5.0 million. Upon entering into the Loan Agreements, the Company borrowed $ 35.0 million in term loans from the Mezzanine Lenders (the “Term A Loan”). On October 26, 2020, the Company entered into (i) the first amendment to the Mezzanine Loan Agreement (the “Mezzanine Loan Amendment”) and (ii) the first amendment to the Senior Loan Agreement (the “Senior Loan Amendment” and together with the Mezzanine Loan Amendment the “Loan Agreement Amendments”) with the Lenders. Under the terms of the Mezzanine Loan Agreement, as amended, the Company may, at its sole discretion, borrow from the Mezzanine Lenders up to an additional $15.0 million in term loans in two tranches of $5.0 million (the “Term B1 Loan”) and $10.0 million (the “Term B2 Loan”), respectively. The Term B1 Loan and Term B2 Loan, together with the Term A Loan, are referred to herein as the “Term Loans.” The Term B1 Loan will be available for draw if the FDA accepts the Company’s resubmitted NDA for VP-102 on or prior to March 31, 2021 until the earlier of March 31, 2021 or the occurrence of an event of default. The Term B2 Loan will be available for draw if the conditions for the Term B1 Loan are met, the Company receives approval from the FDA of the NDA for VP-102 prior to September 30, 2021 and the Company maintains compliance with the minimum liquidity covenant until the earlier of September 30, 2021 or the occurrence of an event of default. Under the terms of the Senior Loan Agreement, as amended, the Company may, at its sole discretion, borrow from the Senior Lender one or more advances on the revolving credit line (the “Revolving Loans”, and together with the Term Loans, the “Loans”) in an aggregate amount not to exceed the lesser of (i) 85% of the aggregate amount then-contained in the Company’s eligible accounts receivable and (ii) $5.0 million. The Senior Loan Agreement provides for the Company to make three anniversary payments of $25,000 each in addition to the $25,000 due upon the Effective Date for an aggregate of $100,000 in total anniversary payments. In the event the Senior Loan Agreement is terminated prior to maturity, any unpaid portion of the total anniversary payments are due immediately. The Company recorded the total anniversary fee payment obligation at inception. As of September 30, 2020, $100,000 of anniversary payments were recorded within other current liabilities within the Company’s accompanying balance sheet. The Company’s obligations under the Senior Loan Agreement and the Mezzanine Loan Agreement, as amended, are secured by, respectively, a first priority perfected security interest and second priority perfected security interest in substantially all of the Company’s current and future assets, other than its intellectual property (except rights to payment from the sale, licensing or disposition of such intellectual property). The Company has also agreed not to encumber its intellectual property assets, except as permitted by the Loan Agreements. All of the Loans mature on March 1, 2024 (the “Maturity Date”). The Term Loans will be interest-only through March 31, 2022, followed by 24 equal monthly payments of principal and interest; provided that if the Company draws the Term B Loan, the Term Loans will be interest-only through September 30, 2022, followed by 18 equal monthly payments of principal and interest. The Term Loans will bear interest at a floating per annum rate equal to the greater of (i) 7.25% and (ii) the sum of (a) the prime rate reported in The Wall Street Journal on the last business day of the month that immediately precedes the month in which the interest will accrue, plus (b) 2.50%. The Revolving Loans will bear interest at a floating per annum rate equal to the greater of (i) 6.00% and (ii) the sum of (a) the prime rate reported in The Wall Street Journal on the last business day of the month that immediately precedes the month in which the interest will accrue, plus (b) 1.25%. Under the terms of the Mezzanine Loan Agreement, as amended, the Company will be required to make a final payment fee of $3,750,000 payable on the earlier of (i) the Maturity Date, (ii) the acceleration of any Term Loans, or (iii) the prepayment of the Term Loans (the “Final Payment”). The Company is recording the final payment fee using the effective interest rate method over the term of the Term Loan with an increase in long-term debt. The Company may prepay all, or any portion The Company may terminate the revolving credit line under the Senior Loan Agreement at any time upon three business days’ advance written notice to the Senior Lender. If the Company terminates the revolving credit line prior to the Maturity Date, it must pay to the Senior Lender an early termination fee of $50,000 (the “Termination Fee”). Under the Loan Agreements, as amended, the Company is subject to a number of affirmative and restrictive covenants, including covenants regarding maintaining a specified minimum liquidity ratio, delivery of financial statements, maintenance of inventory, payment of taxes, maintenance of insurance, protection of intellectual property rights, dispositions of property, business combinations or acquisitions, incurrence of additional indebtedness or liens, investments and transactions with affiliates, and, beginning as of March 31, 2022, achieving minimum levels of trailing six-month net product revenues, among other customary covenants. As of September 30, 2020 the Company is in compliance with all covenants. Upon the occurrence of certain events, including but not limited to the Company’s failure to satisfy its payment obligations under the Loan Agreements, the breach of certain of its other covenants under the Loan Agreements, or the occurrence of a material adverse change, cross defaults to other indebtedness or material agreements, judgment defaults and defaults related to failure to maintain governmental approvals failure of which to maintain could result in a material adverse effect, the Agent and the Lenders will have the right, among other remedies, to declare all principal and interest immediately due and payable, to exercise secured party remedies, to receive the Final Payment and Termination Fee and, if the payment of principal and interest is due prior to the Maturity Date, to receive the applicable Prepayment Fee. The Loan Agreements also include subjective acceleration clauses that permit the L enders to accelerate the maturity date under certain circumstances, including a material adverse change in the Company’s business, operations, or financial condition or a material impairment of the prospect of repayment of the Company’s obligations to the Mezzanine Lenders. Pursuant to the Loan Agreement Amendments, the Company is subject to a minimum liquidity covenant defined as the balance of the of the Company’s unrestricted cash, cash equivalents, and marketable securities in accounts maintained at Silicon Valley Bank being greater than one and one half times the Company’s aggregate outstanding obligations to the Mezzanine Lenders. The Company believes that, without additional financing, it is probable that it will not be compliance with its minimum liquidity ratio covenant at some point in the next twelve months. In accordance with FASB ASC 470, since the Mezzanine Loan Agreement contains subjective acceleration clauses and the assessment that it is probable that the minimum liquidity ratio covenant will not be met, the Company has classified all outstanding principal and final payment fees as a current liability in the accompanying balance sheet as of September 30, 2020. Upon entering into the Loan Agreement, the Company received proceeds of $35.0 million in term loans and incurred debt discount and issuance costs of $3.3 million, including the final payment fee of $2.7 million, classified as a contra-liability on the condensed balance sheet. The Company incurred additional debt issuance costs related to the revolving credit line of $0.1 million, classified as other non-current assets in the condensed balance sheet. These costs related to the revolving credit line are being amortized to interest expense over the life of the loans using the straight-line method. For the three and nine months ended September 30, 2020, the Company recognized interest expense of $0.9 million and $2.0 million, respectively, of which $0.6 million and $1.4 million was interest on the term loan and $0.3 million and $0.6 million, respectively, was non-cash interest expense related to the amortization of deferred debt issuance costs and accrual of the final payment fee. T he following table summarizes the composition of debt as reflected on the balance sheet as of September 30, 2020 (in thousands): Gross proceeds $ 35,000 Accrued final payment fee 2,625 Unamortized debt discount and issuance costs (2,645 ) Total short-term debt, net $ 34,980 In the event the Company maintains compliance with its minimum liquidity covenant to avoid an acceleration of payments, the a ggregate maturities of debt as of September 30, 2020 are as follows (in thousands): Remainder of 2020 $ — 2021 — 2022 13,125 2023 17,500 2024 (1) 4,375 $ 35,000 (1) Excludes the final payment fee due at time of maturity.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	Note 8—Stock-Based Compensation Stock-based compensation expense, which includes expense for both employees and non-employees, has been reported in the Company’s condensed statements of operations for the three and nine months ended September 30, 2020 and 2019 as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Research and development $ 152 $ 146 $ 543 $ 430 General and administrative 1,079 759 2,938 2,101 Total stock-based compensation $ 1,231 $ 905 $ 3,481 $ 2,531 Stock Options The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2020: Weighted average Weighted average remaining contractual Aggregate intrinsic Number of shares exercise price life (in years) value Outstanding as of December 31, 2019 1,914,545 $ 9.14 8.5 $ 12,953,956 Granted 1,086,204 10.56 Exercised (58,549 ) 7.73 Forfeitures (125,377 ) 10.78 Expired (4,071 ) 15.13 Outstanding as of September 30, 2020 2,812,752 $ 9.63 8.4 $ 1,920,501 Options vested and exercisable as of September 30, 2020 975,634 $ 8.01 7.3 $ 1,127,517 As of September 30, 2020, the total unrecognized compensation related to unvested stock option awards granted was $11.7 million, which the Company expects to recognize over a weighted-average period of 2.8 years. The Company utilizes a designated broker to process exercises of stock options. During the third quarter of 2020, the Company issued 51,049 shares pursuant to the exercise of vested stock options. The Company did not receive the net proceeds from that exercise from the designated broker until October 2020. Those net proceeds are reflected as a stock subscription receivable as of September 30, 2020 in the condensed balance sheet. Restricted Stock Pursuant to an Amended and Restated Stock Purchase Agreement (the “Amended and Restated Agreement”) between the Company and its former Chief Scientific Officer (“CSO”), 848,859 shares held by the former CSO are subject to repurchase at $0.0001 per share in the event the CSO ceases to be a consultant. These shares will be released from the repurchase option on the earliest to occur of (i) a change in control, (ii) regulatory approval of the Company’s new drug application for cantharidin, (iii) commercial sale of products and (iv) a covered termination, as defined in the Amended and Restated Agreement. In November 2019 and August 2020, the Company granted 300,000 and 250,000 restricted stock units, respectively to its executive officers. The restricted stock units vest 50% upon receipt of regulatory approval of the Company’s new drug application for VP-102 for the treatment of molluscum (the “Approval Date”) and 50% shall vest on the one year anniversary of the Approval Date subject to the holders’ continuous service through each applicable date. The following is a summary of changes in the status of non-vested RSUs: Weighted average grant date Number of shares fair value Non-vested as of December 31, 2019 1,148,859 $ 4.35 Granted 250,000 8.17 Forfeitures (75,000 ) 15.71 Non-vested as of September 30, 2020 1,323,859 $ 4.42 No compensation expenses have been recognized for these nonvested restricted stock units and the shares subject to the Amended and Restated Agreement as these shares are performance based and the triggering event was not determined to be probable as of September 30, 2020. As of September 30, 2020, the total unrecognized compensation expense related to the restricted stock units and shares subject to the Amended and Restated Agreement was $5.9 million.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Note 9—Related Party Transactions The Company has entered into a services agreement (“SA”) with PBM Capital Group, LLC (“PBM”) an affiliate of PBM Capital Investments, LLC, to engage PBM for certain business development, operations, technical, contract, accounting and back office support services. Paul B. Manning, who is the Chairman and Chief Executive Officer of PBM and the current chairman of the Company’s Board of Directors, and certain entities affiliated with Mr. Manning, continue to be the Company’s largest stockholder on a collective basis. On January 1, 2019 and October 1, 2019, the SA was amended to reduce the monthly management fee to $26,333 and $5,000, respectively, as a result of a reduction in services provided by PBM. For the three months ended September 30, 2020 and 2019, the Company incurred expenses under the SA of $15,000 and $79,000, respectively. For the nine months ended September 30, 2020 and 2019, the Company incurred expenses under the SA of $45,000 and $0.2 million, respectively.

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 10—Commitments and Contingencies The Company is involved in ordinary, routine legal proceedings that are not considered by management to be material. In the opinion of Company counsel and management, the ultimate liabilities resulting from such legal proceedings will not materially affect the financial position of the Company or its results of operations or cash flows.

License And Collaboration Agree

License And Collaboration Agreements	9 Months Ended
	Sep. 30, 2020
License And Collaboration Agreements [Abstract]
License and Collaboration Agreements	Note 11—License and Collaboration Agreements In August 2020, the Company entered into an option agreement with Torii Pharmaceutical Co., Ltd. (“Torii”) for the development and commercialization of the Company’s product candidates for the treatment of molluscum contagiosum and common warts in Japan, including VP-102 (the “Option Agreement”). Torii paid the Company $0.5 million to secure the exclusive option. Torii may exercise the option to obtain exclusive license rights until the later of six months after the effective date of the Option Agreement, or ten business days after the Company provides notice to Torii that the FDA has accepted the resumbission of the NDA. The $0.5 million is included in deferred revenue as of September 30, 2020 in the condensed balance sheet. In August 2020, the Company entered into an exclusive license agreement with Lytix Biopharma AS (“Lytix”) for the use of licensed technology to research, develop, manufacture, have manufactured, use, sell, have sold, offer for sale, import, and otherwise commercialize products for use in all malignant and pre-malignant dermatological indications, other than metastatic melanoma and metastatic merkel cell carcinoma (the” Lytix Agreement”). As part of the Lytix Agreement, the Company paid Lytix a one-time up-front fee of $0.3 million and is required to make a one-time $2.3 million payment when Lytix achieves a near term regulatory milestone. The $0.3 million was recognized in research and development expense in the condensed statement of operations for the three and nine months ended September 30, 2020. The Company is also obligated to pay up to $111.0 million contingent on achievement of specified development, regulatory, and sales milestones, as well as tiered royalties based on worldwide annual net sales ranging in the low double digits to the mid-teens, subject to certain customary reductions. The Company’s obligation to pay royalties expires on a country-by-country and product-by-product basis on the later of the expiration or abandonment of the last to expire licensed patent covering LTX-315 anywhere in the world and expiration of regulatory exclusivity for LTX-315 in such country. Additionally, all upfront fees and milestone based payments received by the Company from a sublicensee will be treated as net sales and will be subject to the royalty payment obligations under the Lytix Agreement, and all royalties received by the Company from a sublicensee shall be shared with Lytix at a rate that is initially 50% but decreases based on the stage of development of LTX-315 at the time such sublicense is granted.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Event	Note 12—Subsequent Event On October 26, 2020, the Company entered into (i) the Mezzanine Loan Amendment and (ii) the Senior Loan Amendment with the Lenders. The terms of the Loan Agreements, as amended, are described above in Note 7—Debt.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the unaudited interim condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. They may not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended December 31, 2019 filed with the Securities and Exchange Commission (the “SEC”) on March 13, 2020. The results of operations for any interim periods are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. The Company has been actively monitoring the novel coronavirus (“COVID-19”) pandemic and its impact globally. Management believes the financial results for the three and nine month periods ended September 30, 2020 were not significantly impacted by COVID-19. In addition, management believes the remote working arrangements, travel restrictions and any other regulations imposed by various governmental jurisdictions have had limited impact on the Company’s ability to maintain internal operations during the quarter. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat COVID-19. As a direct result of COVID-19, the Company decided to delay the initiation of its Phase 3 clinical trials to evaluate VP-102 in subjects with common warts as well as its planned Phase 2 clinical trial to evaluate VP-103 in subjects with plantar warts until conditions are appropriate.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. These estimates and assumptions are based on current facts, historical experience and other pertinent industry and regulatory authority information, including the potential future effects of COVID-19, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected.
Significant Accounting Policies	S ignificant Accounting Policies There have been no material changes in the Company’s significant accounting policies to those previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract
Net Loss per Share	Net Loss per Share Net loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period. Diluted net loss per share excludes the potential impact of common stock options and unvested shares of restricted stock because their effect would be anti-dilutive due to the Company’s net loss. Since the Company had a net loss in each of the periods presented, basic and diluted net loss per common share are the same. The table below provides potential shares outstanding that were not included in the computation of diluted net loss per common share, as the inclusion of these securities would have been anti-dilutive: As of September 30, 2020 2019 Shares issuable upon exercise of stock options 2,812,752 1,986,201 Non-vested shares under restricted stock grants 1,323,859 848,859

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Schedule of Potential Shares Outstanding not Included in Computation of Diluted Net Loss Per Common Share	The table below provides potential shares outstanding that were not included in the computation of diluted net loss per common share, as the inclusion of these securities would have been anti-dilutive: As of September 30, 2020 2019 Shares issuable upon exercise of stock options 2,812,752 1,986,201 Non-vested shares under restricted stock grants 1,323,859 848,859

Investments In Marketable Sec_2

Investments In Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2020
Investments [Abstract]
Schedule of Marketable Securities	Investments in marketable securities consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 11,115 $ 4 $ — $ 11,119 Commercial paper 42,061 2 — 42,063 Asset-backed securities 1,501 — — 1,501 Total marketable securities $ 54,677 $ 6 $ — $ 54,683 December 31, 2019 Amortized Gross Unrealized Gross Unrealized Fair Cost Gains Losses Value U.S. Treasury securities $ 7,397 $ 3 $ — $ 7,400 Commercial paper 31,913 7 (1 ) 31,919 Asset-backed securities 13,446 11 — 13,457 Total marketable securities $ 52,756 $ 21 $ (1 ) $ 52,776
Schedule of Fair Value of Marketable Securities	The following tables presents fair value of the Company’s marketable securities (in thousands): Fair Value Measurement as of September 30, 2020 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 11,119 $ — $ — $ 11,119 Commercial paper — 42,063 — 42,063 Asset-backed securities — 1,501 — 1,501 Total assets $ 11,119 $ 43,564 $ — $ 54,683 Fair Value Measurement as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets U.S. treasury securities $ 7,400 $ — $ — $ 7,400 Commercial paper — 31,919 — 31,919 Asset-backed securities — 13,457 — 13,457 Total assets $ 7,400 $ 45,376 $ — $ 52,776

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2020
Property Plant And Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net consisted of (in thousands): As of As of September 30, December 31, 2020 2019 Leasehold improvements $ 68 $ 68 Office furniture and fixtures 48 48 Office equipment 52 31 Manufacturing equipment 17 — Construction in process 2,638 2,027 2,823 2,174 Accumulated depreciation (115 ) (84 ) Total property and equipment, net $ 2,708 $ 2,090

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2020
Payables And Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): As of September 30, 2020 As of December 31, 2019 Compensation and related costs $ 1,271 $ 1,195 Clinical trials and drug development 840 733 Construction in process 455 — Professional fees 222 89 Interest expense 211 — Other accrued expenses and other current liabilities 100 19 Total accrued expenses and other current liabilities $ 3,099 $ 2,036

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Summary of Components of Lease Expense and Supplemental Cash Flow Information	The components of lease expense are as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease: Operating lease costs $ 35 $ 71 $ 141 $ 152 Short-term lease costs 3 4 16 14 Total rent expense $ 38 $ 75 $ 157 $ 166
Schedule of Maturities of Operating Lease	Maturities of the Company’s operating lease, excluding short-term leases, as of September 30, 2020 are as follows (in thousands): Remainder of 2020 $ 93 2021 384 2022 344 2023 350 2024 355 Thereafter 942 Total undiscounted lease liability 2,468 Less: Imputed interest (472 ) Operating lease liability $ 1,996

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Summary of Composition of Debt	T he following table summarizes the composition of debt as reflected on the balance sheet as of September 30, 2020 (in thousands): Gross proceeds $ 35,000 Accrued final payment fee 2,625 Unamortized debt discount and issuance costs (2,645 ) Total short-term debt, net $ 34,980
Schedule of Aggregate Maturities of Debt	In the event the Company maintains compliance with its minimum liquidity covenant to avoid an acceleration of payments, the a ggregate maturities of debt as of September 30, 2020 are as follows (in thousands): Remainder of 2020 $ — 2021 — 2022 13,125 2023 17,500 2024 (1) 4,375 $ 35,000 (1) Excludes the final payment fee due at time of maturity.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Stock Based Compensation Expense	Stock-based compensation expense, which includes expense for both employees and non-employees, has been reported in the Company’s condensed statements of operations for the three and nine months ended September 30, 2020 and 2019 as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Research and development $ 152 $ 146 $ 543 $ 430 General and administrative 1,079 759 2,938 2,101 Total stock-based compensation $ 1,231 $ 905 $ 3,481 $ 2,531
Summary of Stock Option Activity	The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2020: Weighted average Weighted average remaining contractual Aggregate intrinsic Number of shares exercise price life (in years) value Outstanding as of December 31, 2019 1,914,545 $ 9.14 8.5 $ 12,953,956 Granted 1,086,204 10.56 Exercised (58,549 ) 7.73 Forfeitures (125,377 ) 10.78 Expired (4,071 ) 15.13 Outstanding as of September 30, 2020 2,812,752 $ 9.63 8.4 $ 1,920,501 Options vested and exercisable as of September 30, 2020 975,634 $ 8.01 7.3 $ 1,127,517
Summary of Non-vested RSUs Activities	The following is a summary of changes in the status of non-vested RSUs: Weighted average grant date Number of shares fair value Non-vested as of December 31, 2019 1,148,859 $ 4.35 Granted 250,000 8.17 Forfeitures (75,000 ) 15.71 Non-vested as of September 30, 2020 1,323,859 $ 4.42

Nature of Business - Additional

Nature of Business - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Description Of Business [Line Items]
Accumulated deficit	$ (90,909)	$ (61,192)
Gross proceeds from issuance of debt	35,000
Net proceeds from issuance of debt	34,460
IPO [Member]
Description Of Business [Line Items]
Gross proceeds from issuance of common stock	123,200
Net proceeds from issuance of common stock	114,900
Cash, cash equivalents and marketable securities	71,900
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term A Loan [Member]
Description Of Business [Line Items]
Line of credit facility	$ 35,000

Significant Accounting Polici_4

Significant Accounting Policies - Additional Information (Detail) - USD ($)	Jan. 01, 2019	Sep. 30, 2020	Mar. 12, 2020	Dec. 31, 2019	Sep. 30, 2019
Significant Accounting Policies [Line Items]
Operating lease right-of-use asset	$ 304,000	$ 1,891,000	$ 1,900,000	$ 111,000
Operating lease liability	306,000	$ 1,996,000	$ 1,900,000
Deferred rent	2,000
Accounting Standards Update 2018-07 [Member]
Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]					true
Change in accounting principle, accounting standards update, adoption date					Jan. 1, 2019
Accounting Standards Update 2018-13 [Member]
Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]		true
Change in accounting principle, accounting standards update, adoption date		Jan. 1, 2020
Change in accounting principle, accounting Standards Update, immaterial effect [true false]		true
Accounting Standards Update 2018-15 [Member]
Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]		true
Change in accounting principle, accounting standards update, adoption date		Jan. 1, 2020
Change in accounting principle, accounting Standards Update, immaterial effect [true false]		true
Accumulated Deficit and Additional Paid-in Capital [Member]
Significant Accounting Policies [Line Items]
Adjustment to accumulated deficit and additional paid -in capital	$ 98,000

Significant Accounting Polici_5

Significant Accounting Policies - Schedule of Potential Shares Outstanding not Included in Computation of Diluted Net Loss Per Common Share (Detail) - shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Shares issuable upon exercise of stock options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Securities that could potentially dilute basic earnings per share	2,812,752	1,986,201
Non-vested shares under restricted stock grants [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Securities that could potentially dilute basic earnings per share	1,323,859	848,859

Investments in Marketable Sec_3

Investments in Marketable Securities - Schedule of Marketable Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Marketable Securities [Line Items]
Amortized Cost	$ 54,677	$ 52,756
Gross Unrealized Gains	6	21
Gross Unrealized Losses		(1)
Fair Value	54,683	52,776
U.S. Treasury Securities [Member]
Marketable Securities [Line Items]
Amortized Cost	11,115	7,397
Gross Unrealized Gains	4	3
Fair Value	11,119	7,400
Commercial Paper [Member]
Marketable Securities [Line Items]
Amortized Cost	42,061	31,913
Gross Unrealized Gains	2	7
Gross Unrealized Losses		(1)
Fair Value	42,063	31,919
Asset Backed Securities [Member]
Marketable Securities [Line Items]
Amortized Cost	1,501	13,446
Gross Unrealized Gains		11
Fair Value	$ 1,501	$ 13,457

Investments in Marketable Sec_4

Investments in Marketable Securities - Schedule of Fair Value of Marketable Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Marketable Securities [Line Items]
Marketable securities	$ 54,683	$ 52,776
Level 1 [Member]
Marketable Securities [Line Items]
Marketable securities	11,119	7,400
Level 2 [Member]
Marketable Securities [Line Items]
Marketable securities	43,564	45,376
U.S. Treasury Securities [Member]
Marketable Securities [Line Items]
Marketable securities	11,119	7,400
U.S. Treasury Securities [Member] | Level 1 [Member]
Marketable Securities [Line Items]
Marketable securities	11,119	7,400
Commercial Paper [Member]
Marketable Securities [Line Items]
Marketable securities	42,063	31,919
Commercial Paper [Member] | Level 2 [Member]
Marketable Securities [Line Items]
Marketable securities	42,063	31,919
Asset Backed Securities [Member]
Marketable Securities [Line Items]
Marketable securities	1,501	13,457
Asset Backed Securities [Member] | Level 2 [Member]
Marketable Securities [Line Items]
Marketable securities	$ 1,501	$ 13,457

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 2,823	$ 2,174
Accumulated depreciation	(115)	(84)
Total property and equipment, net	2,708	2,090
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	68	68
Office Furniture and Fixtures [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	48	48
Office Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	52	31
Manufacturing Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	17
Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 2,638	$ 2,027

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accrued Liabilities Current [Abstract]
Compensation and related costs	$ 1,271	$ 1,195
Clinical trials and drug development	840	733
Construction in process	455
Professional fees	222	89
Interest expense	211
Other accrued expenses and other current liabilities	100	19
Total accrued expenses and other current liabilities	$ 3,099	$ 2,036

Leases - Additional Information

Leases - Additional Information (Detail)	Mar. 12, 2020USD ($)ft²	Jul. 01, 2019ft²	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Jan. 01, 2019USD ($)
Lessee Lease Description [Line Items]
Operating lease expiration			2021-05
First amendments date	Mar. 12, 2020
Lease expiration date			Sep. 1, 2027
Operating lease right of use asset | $	$ 1,900,000		$ 1,891,000	$ 111,000	$ 304,000
Lease liability | $	$ 1,900,000		$ 1,996,000		$ 306,000
Weighted-average remaining lease term			6 years 8 months 12 days
Weighted-average discount rate			6.27%
Pennsylvania [Member]
Lessee Lease Description [Line Items]
Lease agreement commencement date		Jul. 1, 2019
Area of office space for lease | ft²		5,829
Original Premises [Member]
Lessee Lease Description [Line Items]
Area of office space for lease | ft²	5,372
Total Rentable Premise [Member]
Lessee Lease Description [Line Items]
Area of office space for lease | ft²	11,201
Landlord's Operating Expense [Member]
Lessee Lease Description [Line Items]
Operating lease, base rent | $			$ 2,400,000

Leases - Summary of Components

Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Operating lease costs	$ 35	$ 71	$ 141	$ 152
Short-term lease costs	3	4	16	14
Total rent expense	$ 38	$ 75	$ 157	$ 166

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Operating Lease (Detail) - USD ($)	Sep. 30, 2020	Mar. 12, 2020	Jan. 01, 2019
Leases [Abstract]
Remainder of 2020	$ 93,000
2021	384,000
2022	344,000
2023	350,000
2024	355,000
Thereafter	942,000
Total undiscounted lease liability	2,468,000
Less: Imputed interest	(472,000)
Operating lease liability	$ 1,996,000	$ 1,900,000	$ 306,000

Debt - Additional Information (

Debt - Additional Information (Detail)	Oct. 26, 2020USD ($)Tranche	Mar. 10, 2020USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2020USD ($)
Debt Instrument [Line Items]
Debt instrument, covenant description				Under the Loan Agreements, as amended, the Company is subject to a number of affirmative and restrictive covenants, including covenants regarding maintaining a specified minimum liquidity ratio, delivery of financial statements, maintenance of inventory, payment of taxes, maintenance of insurance, protection of intellectual property rights, dispositions of property, business combinations or acquisitions, incurrence of additional indebtedness or liens, investments and transactions with affiliates, and, beginning as of March 31, 2022, achieving minimum levels of trailing six-month net product revenues, among other customary covenants.
Debt instrument, covenant compliance				As of September 30, 2020 the Company is in compliance with all covenants.
Proceeds from issuance of debt				$ 35,000,000
Final payment fee			$ 35,000,000	$ 35,000,000
Subsequent Event [Member]
Debt Instrument [Line Items]
Term loans, frequency of periodic payments	24 equal monthly
Mezzanine Loan Agreement [Member]
Debt Instrument [Line Items]
Term loan, description				The Term B1 Loan will be available for draw if the FDA accepts the Company’s resubmitted NDA for VP-102 on or prior to March 31, 2021 until the earlier of March 31, 2021 or the occurrence of an event of default.  The Term B2 Loan will be available for draw if the conditions for the Term B1 Loan are met, the Company receives approval from the FDA of the NDA for VP-102 prior to September 30, 2021 and the Company maintains compliance with the minimum liquidity covenant until the earlier of September 30, 2021 or the occurrence of an event of default.
Mezzanine Loan Agreement [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Debt instrument, final payment fee payable	$ 3,750,000
Mezzanine Loan Agreement [Member] | Subsequent Event [Member] | Term Loan Prepaid on or Before October 26, 2021 [Member]
Debt Instrument [Line Items]
Debt instrument, prepayment fee	1,500,000
Mezzanine Loan Agreement [Member] | Subsequent Event [Member] | Term Loan Prepaid Between October 27, 2021 and October 26, 2022 [Member]
Debt Instrument [Line Items]
Debt instrument, prepayment fee	1,000,000
Mezzanine Loan Agreement [Member] | Subsequent Event [Member] | Term Loan Prepaid Between October 27, 2022 and October 26, 2023 [Member]
Debt Instrument [Line Items]
Debt instrument, prepayment fee	500,000
Mezzanine Loan Agreement [Member] | Subsequent Event [Member] | Term Loan Prepaid After October 26, 2023 [Member]
Debt Instrument [Line Items]
Debt instrument, prepayment fee	0
Mezzanine Loan Agreement [Member] | Term Loans [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 15,000,000
Number of loan tranche | Tranche	2
Mezzanine Loan Agreement [Member] | Term B1 Loan [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 5,000,000
Mezzanine Loan Agreement [Member] | Term B2 Loan [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	10,000,000
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term Loans [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 50,000,000
Mezzanine Loan Agreement [Member] | Mezzanine Lenders [Member] | Term A Loan [Member]
Debt Instrument [Line Items]
Borrowed amount		35,000,000
Mezzanine Loan Agreement [Member] | Silicon Valley Bank (Senior Lender) [Member] | Revolving Loans [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 5,000,000
Senior Loan Agreement [Member]
Debt Instrument [Line Items]
Term loans, payment terms				The Term Loans will be interest-only through March 31, 2022, followed by 24 equal monthly payments of principal and interest; provided that if the Company draws the Term B Loan, the Term Loans will be interest-only through September 30, 2022, followed by 18 equal monthly payments of principal and interest.
Loans, interest rate terms				The Term Loans will bear interest at a floating per annum rate equal to the greater of (i) 7.25% and (ii) the sum of (a) the prime rate reported in The Wall Street Journal on the last business day of the month that immediately precedes the month in which the interest will accrue, plus (b) 2.50%.
Interest expense			900,000	$ 2,000,000
Interest on term loan			600,000	1,400,000
Non-cash interest expense			$ 300,000	600,000
Senior Loan Agreement [Member] | Other Current Liabilities [Member]
Debt Instrument [Line Items]
Line of credit facility, anniversary payment				$ 100,000
Senior Loan Agreement [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 5,000,000
Line of credit, maximum borrowing base percentage of eligible accounts receivable	85.00%
Line of credit facility, periodic payment	$ 25,000
Line of credit facility due upon effective date.	25,000
Line of credit facility, anniversary payment	$ 100,000
Loans, maturity date	Mar. 1, 2024
Loans, interest rate	7.25%
Debt discount and issuance costs	$ 3,300,000
Senior Loan Agreement [Member] | Subsequent Event [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Loans, variable rate	2.50%
Senior Loan Agreement [Member] | Subsequent Event [Member] | Term A and B Loan [Member]
Debt Instrument [Line Items]
Term loans, frequency of periodic payments	18 equal monthly
Senior Loan Agreement [Member] | Term Loans [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Proceeds from issuance of debt	$ 35,000,000
Senior Loan Agreement [Member] | Term Loans [Member] | Subsequent Event [Member] | Contra-Liability [Member]
Debt Instrument [Line Items]
Final payment fee	$ 2,700,000
Senior Loan Agreement [Member] | Revolving Loans [Member]
Debt Instrument [Line Items]
Loans, interest rate terms				The Revolving Loans will bear interest at a floating per annum rate equal to the greater of (i) 6.00% and (ii) the sum of (a) the prime rate reported in The Wall Street Journal on the last business day of the month that immediately precedes the month in which the interest will accrue, plus (b) 1.25%.
Senior Loan Agreement [Member] | Revolving Loans [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Loans, interest rate	6.00%
Credit line, early termination fee amount	$ 50,000
Senior Loan Agreement [Member] | Revolving Loans [Member] | Subsequent Event [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Loans, variable rate	1.25%
Senior Loan Agreement [Member] | Revolving Loans [Member] | Subsequent Event [Member] | Other Non-Current Assets [Member]
Debt Instrument [Line Items]
Debt discount and issuance costs	$ 100,000

Debt - Summary of Composition o

Debt - Summary of Composition of Debt (Detail) $ in Thousands	Sep. 30, 2020USD ($)
Debt Instrument [Line Items]
Total short-term debt, net	$ 34,980
Senior Loan Agreement [Member]
Debt Instrument [Line Items]
Gross proceeds	35,000
Accrued final payment fee	2,625
Unamortized debt discount and issuance costs	(2,645)
Total short-term debt, net	$ 34,980

Debt - Schedule of Aggregate Ma

Debt - Schedule of Aggregate Maturities of Debt (Detail) $ in Thousands	Sep. 30, 2020USD ($)
Debt Disclosure [Abstract]
2022	$ 13,125
2023	17,500
2024	4,375
Long-term debt	$ 35,000

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,231	$ 905	$ 3,481	$ 2,531
Research and Development [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	152	146	543	430
General and Administrative [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 1,079	$ 759	$ 2,938	$ 2,101

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Employee Service Share Based Compensation Aggregate Disclosures [Abstract]
Number of shares, Outstanding Beginning Balance	1,914,545
Number of shares, Granted	1,086,204
Number of shares, Exercised	(58,549)
Number of shares, Forfeitures	(125,377)
Number of shares, Expired	(4,071)
Number of shares, Outstanding Ending Balance	2,812,752	1,914,545
Number of shares, Options vested and exercisable Ending Balance	975,634
Weighted average exercise price, Outstanding Beginning Balance	$ 9.14
Weighted average exercise price, Granted	10.56
Weighted average exercise price, Exercised	7.73
Weighted average exercise price, Forfeitures	10.78
Weighted average exercise price, Expired	15.13
Weighted average exercise price, Outstanding Ending Balance	9.63	$ 9.14
Weighted average exercise price, Options vested and exercisable Ending Balance	$ 8.01
Weighted average remaining contractual life (in years), Outstanding	8 years 4 months 24 days	8 years 6 months
Weighted average remaining contractual life (in years), Options vested and exercisable	7 years 3 months 18 days
Aggregate intrinsic value, Outstanding	$ 1,920,501	$ 12,953,956
Aggregate intrinsic value, Options vested and exercisable Ending Balance	$ 1,127,517

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended	9 Months Ended
	Aug. 31, 2020	Nov. 30, 2019	Sep. 30, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation related to unvested stock options			$ 11.7	$ 11.7
Weighted-average stock option recognize period				2 years 9 months 18 days
Shares issued pursuant to exercise of vested stock options			51,049
Treasury stock, shares			105,144	105,144		105,144
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Granted				250,000
Stock vesting period		1 year
Restricted Stock Units (RSUs) [Member] | Executive Officers [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Granted	250,000	300,000
Restricted Stock Units (RSUs) [Member] | One Year Anniversary [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of stock subject to vesting (as a percent)	50.00%	50.00%
Restricted Stock Units (RSUs) [Member] | New Drug Application [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of stock subject to vesting (as a percent)	50.00%	50.00%
Amended and Restated Agreement [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Treasury stock, shares			848,859	848,859
Repurchase price				$ 0.0001
Amended and Restated Agreement [Member] | Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation related to nonvested restricted stock units					$ 5.9

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Non-vested RSUs Activities (Detail) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Sep. 30, 2020$ / sharesshares
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Non-vested, Number of shares, Beginning Balance | shares	1,148,859
Non-vested, Number of shares, Granted | shares	250,000
Non-vested, Number of shares, Forfeitures | shares	(75,000)
Non-vested, Number of shares, Ending Balance | shares	1,323,859
Non-vested, Weighted average grant date fair value, Beginning Balance | $ / shares	$ 4.35
Non-vested, Weighted average grant date fair value, Granted | $ / shares	8.17
Non-vested, Weighted average grant date fair value, Forfeitures | $ / shares	15.71
Non-vested, Weighted average grant date fair value, Ending Balance | $ / shares	$ 4.42

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - PBM Capital Group, LLC [Member] - USD ($)	Oct. 01, 2019	Jan. 01, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Related Party Transaction [Line Items]
Expenses incurred under services agreement			$ 15,000	$ 79,000	$ 45,000	$ 200,000
Amended Service Agreement [Member]
Related Party Transaction [Line Items]
Monthly management fee payable	$ 5,000	$ 26,333

License and Collaboration Agr_2

License and Collaboration Agreements - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
License And Collaboration Agreements [Line Items]
Research and development expense		$ 4,988	$ 3,049	$ 13,401	$ 11,464
Ltyix [Member]
License And Collaboration Agreements [Line Items]
One time up front license fee	$ 300
One time up front license fee payable	2,300
Research and development expense		300		300
Payments upon achievements of milestone	$ 111,000
Percentage of royalty income shared	50.00%
Option Agreement [Member] | Torii [Member]
License And Collaboration Agreements [Line Items]
Consideration receivable to secure exclusive option	$ 500
Deferred revenue		$ 500		$ 500