Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Registrant Name | Homology Medicines, Inc | |
Entity Central Index Key | 0001661998 | |
Trading Symbol | FIXX | |
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 | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 57,083,955 | |
Entity File Number | 001-38433 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3468154 | |
Entity Address, Address Line One | One Patriots Park | |
Entity Address, City or Town | Bedford | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01730 | |
City Area Code | 781 | |
Local Phone Number | 301-7277 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 104,416,000 | $ 217,431,000 |
Short-term investments | 84,233,000 | 0 |
Prepaid expenses and other current assets | 3,003,000 | 2,133,000 |
Total current assets | 191,652,000 | 219,564,000 |
Property and equipment, net | 36,153,000 | 37,002,000 |
Right-of-use assets | 5,618,000 | 5,897,000 |
Restricted cash | 1,274,000 | 1,274,000 |
Total assets | 234,697,000 | 263,737,000 |
Current liabilities: | ||
Accounts payable | 4,878,000 | 4,722,000 |
Accrued expenses and other liabilities | 5,423,000 | 9,803,000 |
Operating lease liabilities | 2,323,000 | 2,501,000 |
Deferred revenue | 5,184,000 | 5,632,000 |
Total current liabilities | 17,808,000 | 22,658,000 |
Non-current liabilities: | ||
Operating lease liabilities, net of current portion | 12,498,000 | 12,941,000 |
Deferred revenue, net of current portion | 3,562,000 | 32,143,000 |
Total liabilities | 33,868,000 | 67,742,000 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | ||
Common stock, $0.0001 par value; 200,000,000 shares authorized; 50,487,649 and 50,268,666 shares issued as of March 31, 2021 and December 31, 2020, respectively; and 50,485,569 and 50,265,575 shares outstanding as of March 31, 2021 and December 31, 2020, respectively | 5,000 | 5,000 |
Additional paid-in capital | 530,288,000 | 524,358,000 |
Accumulated other comprehensive loss | (23,000) | |
Accumulated deficit | (329,441,000) | (328,368,000) |
Total stockholders’ equity | 200,829,000 | 195,995,000 |
Total liabilities and stockholders' equity | $ 234,697,000 | $ 263,737,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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 | 50,487,649 | 50,268,666 |
Common stock, shares outstanding | 50,485,569 | 50,265,575 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Collaboration revenue | $ 29,305 | $ 588 |
Operating expenses: | ||
Research and development | 21,755 | 29,310 |
General and administrative | 8,661 | 7,770 |
Total operating expenses | 30,416 | 37,080 |
Loss from operations | (1,111) | (36,492) |
Other income: | ||
Interest income | 38 | 1,161 |
Total other income | 38 | 1,161 |
Net loss | $ (1,073) | $ (35,331) |
Net loss per share-basic and diluted | $ (0.02) | $ (0.78) |
Weighted-average common shares outstanding-basic and diluted | 50,363,579 | 45,151,265 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (1,073) | $ (35,331) |
Other comprehensive (loss): | ||
Change in unrealized gain (loss) on available for sale securities, net | (23) | (202) |
Total other comprehensive loss | (23) | (202) |
Comprehensive loss | $ (1,096) | $ (35,533) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | ATM | Common Stock | Common StockATM | Additional Paid-in Capital | Additional Paid-in CapitalATM | Accumulated Other Comprehensive Gain (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2019 | $ 258,507 | $ 4 | $ 457,994 | $ 183 | $ (199,674) | |||
Beginning balance, Shares at Dec. 31, 2019 | 45,116,742 | |||||||
Vesting of common stock from option exercises | 12 | 12 | ||||||
Vesting of common stock from option exercises, Shares | 15,542 | |||||||
Issuance of common stock from option exercises | 135 | 135 | ||||||
Issuance of common stock from option exercises, Shares | 34,311 | |||||||
Issuance of common stock pursuant to employee stock purchase plan | 537 | 537 | ||||||
Issuance of common stock pursuant to employee stock purchase plan, Shares | 39,471 | |||||||
Stock-based compensation | 2,883 | 2,883 | ||||||
Other comprehensive loss | (202) | (202) | ||||||
Net loss | (35,331) | (35,331) | ||||||
Ending balance at Mar. 31, 2020 | 226,541 | $ 4 | 461,561 | (19) | (235,005) | |||
Ending balance, Shares at Mar. 31, 2020 | 45,206,066 | |||||||
Beginning balance at Dec. 31, 2020 | 195,995 | $ 5 | 524,358 | (328,368) | ||||
Beginning balance, Shares at Dec. 31, 2020 | 50,265,575 | |||||||
Vesting of common stock from option exercises | 4 | 4 | ||||||
Vesting of common stock from option exercises, Shares | 1,011 | |||||||
Issuance of common stock from option exercises | $ 143 | 143 | ||||||
Issuance of common stock from option exercises, Shares | 55,277 | 55,277 | ||||||
Issuance of common stock pursuant to employee stock purchase plan | $ 446 | 446 | ||||||
Issuance of common stock pursuant to employee stock purchase plan, Shares | 48,792 | |||||||
Issuance of common stock, net of discounts and issuance costs | $ 1,454 | $ 1,454 | ||||||
Issuance of common stock, net of discounts and issuance costs, Shares | 114,914 | 114,914 | ||||||
Stock-based compensation | 3,883 | 3,883 | ||||||
Other comprehensive loss | (23) | (23) | ||||||
Net loss | (1,073) | (1,073) | ||||||
Ending balance at Mar. 31, 2021 | $ 200,829 | $ 5 | $ 530,288 | $ (23) | $ (329,441) | |||
Ending balance, Shares at Mar. 31, 2021 | 50,485,569 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (1,073) | $ (35,331) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 2,080 | 1,907 |
Noncash lease expense | 279 | 221 |
Stock-based compensation expense | 3,883 | 2,883 |
Accretion of discount (amortization of premium) on short-term investments | 162 | (175) |
Loss on disposal of property and equipment | 6 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (870) | 1,087 |
Accounts payable | (100) | 4,841 |
Accrued expenses and other liabilities | (4,540) | (535) |
Deferred revenue | (29,029) | (203) |
Operating lease liabilities | (621) | (541) |
Net cash used in operating activities | (29,823) | (25,846) |
Cash flows from investing activities: | ||
Purchases of short-term investments | (84,418) | |
Maturities of short-term investments | 117,030 | |
Purchases of property and equipment | (817) | (2,033) |
Net cash (used in) provided by investing activities | (85,235) | 114,997 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock pursuant to employee stock purchase plan | 446 | 537 |
Proceeds from issuance of common stock from option exercises | 143 | 135 |
Payment of deferred offering costs | (225) | |
Net cash provided by financing activities | 2,043 | 447 |
Net change in cash, cash equivalents and restricted cash | (113,015) | 89,598 |
Cash, cash equivalents and restricted cash, beginning of period | 218,705 | 55,048 |
Cash, cash equivalents and restricted cash, end of period | 105,690 | 144,646 |
Supplemental disclosures of noncash investing and financing activities: | ||
Reclassification of liability for common stock vested | 4 | 12 |
Property and equipment additions included in accounts payable | 367 | 405 |
Property and equipment additions included in accrued expenses and other liabilities | 164 | 23 |
Unrealized loss on available for sale securities, net | (23) | (202) |
Deferred offering costs included in accounts payable and accrued expenses | $ 77 | |
ATM | ||
Cash flows from financing activities: | ||
Proceeds from issuance of common stock pursuant to ATM, net of discounts and issuance costs | $ 1,454 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
NATURE OF BUSINESS AND BASIS OF PRESENTATION | 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION Nature of Business —Homology Medicines, Inc. (the “Company”) is a clinical-stage genetic medicines company dedicated to translating proprietary gene therapy and gene editing technology into novel treatments for patients with rare genetic diseases with significant unmet medical needs by curing the underlying cause of the disease. The Company was founded in March 2015 as a Delaware corporation. Its principal offices are in Bedford, Massachusetts. Since its inception, the Company has devoted substantially all of its resources to recruiting personnel, developing its technology platform and advancing its pipeline of product candidates, developing and implementing manufacturing processes, building out internal manufacturing and research and development space, and maintaining and building its intellectual property portfolio. The Company is subject to a number of risks similar to those of other companies conducting high-risk, early-stage research and development of product candidates. Principal among these risks are dependency on key individuals and intellectual property, competition from other products and companies, and the technical risks associated with the successful research, development and manufacturing of its product candidates. The Company’s success is dependent upon its ability to continue to raise additional capital in order to fund ongoing research and development, conduct clinical trials, obtain regulatory approval of its products, further expand its manufacturing capacity, successfully commercialize its products, generate revenue, meet its obligations, and, ultimately, attain profitable operations. On April 2, 2018, the Company completed its initial public offering (“IPO”) with the sale of 10,350,000 shares of its common stock, including shares issued upon the exercise in full of the underwriters’ over-allotment option, at a public offering price of $16.00 per share, resulting in net proceeds of $150.8 million, after deducting underwriting discounts and commissions and offering expenses. Upon the closing of the IPO, all of the Company’s outstanding shares of convertible preferred stock automatically converted into 24,168,656 shares of common stock at the applicable conversion ratio then in effect. On April 12, 2019, the Company completed a follow-on public offering of its common stock. The Company sold 5,555,556 shares of its common stock at a public offering price of $22.50 per share and received net proceeds of $116.9 million, after deducting underwriting discounts and commissions and offering expenses. In addition, on April 26, 2019 and May 7, 2019, in connection with the exercise in full of the underwriters’ option to purchase additional shares, the Company issued an aggregate of 833,333 shares of its common stock at a public offering price of $22.50 per share and received net proceeds of $17.6 million, after deducting underwriting discounts and commissions. On November 9, 2020, the Company entered into a common stock purchase agreement (the “Stock Purchase Agreement”) with Pfizer Inc. (“Pfizer”), pursuant to which the Company sold to Pfizer 5,000,000 shares of the Company’s common stock through a private placement transaction (the “Private Placement”) at a purchase price of $12.00 per share, for an aggregate purchase price of $60.0 million (see Note 11). On March 12, 2020, the Company filed a Registration Statement on Form S-3 (File No. 333-237131) (as amended, the “Shelf”) with the Securities and Exchange Commission (“SEC”) in relation to the registration of common stock, preferred stock, debt securities, warrants and/or units of any combination thereof for a period up to three years from the date of the filing. The Shelf became effective on March 12, 2020. The Company also simultaneously entered into a sales agreement with Cowen and Company, LLC (“Cowen”), as sales agent, providing for the offering, issuance and sale by the Company of up to an aggregate $150.0 million of its common stock from time to time in “at-the-market” offerings under the Shelf (the “ATM”). In connection with the filing of certain post-effective amendments to the Shelf, the sales agreement prospectus supplement now covers the offering, issuance and sale by the Company of up to an aggregate $148.4 million of its common stock. During the three months ended March 31, 2021, the Company sold 114,914 shares of common stock under the Sales Agreement, at an average price of approximately $14.00 per share, raising aggregate net proceeds of approximately $1.5 million after deducting an aggregate commission of 3% and issuance costs. As of March 31, 2021, there remained $148.4 million of common stock available for sale under the ATM. To date, the Company has not generated any revenue from product sales and does not expect to generate any revenue from the sale of product in the foreseeable future. Through March 31, 2021, the Company has financed its operations primarily through public offerings of its common stock, the issuance of convertible preferred stock, and with proceeds from its collaboration and license agreement with Novartis Institutes of BioMedical Research, Inc. (“Novartis”) (see Note 10) and its private placement with Pfizer. During the three months ended March 31, 2021, the Company incurred a net loss of $1.1 million and as of March 31, 2021, had $329.4 million in accumulated deficit. The Company expects to incur additional operating losses and negative operating cash flows for the foreseeable future. Based on current projections, management believes that cash and cash equivalents and short-term investments as of March 31, 2021, together with the approximately $49.4 million in net proceeds received from a follow-on offering of the Company’s common stock in April 2021 (see Note 12), will enable the Company to continue its operations into the first quarter of 2023. In the absence of a significant source of recurring revenue, the continued viability of the Company beyond that point is dependent on its ability to continue to raise additional capital to finance its operations. There can be no assurance that the Company will be able to obtain sufficient capital to cover its costs on acceptable terms, if at all. Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2020, included in the Company's Annual Report on Form 10-K on file with the SEC. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments which are necessary for a fair statement of the Company’s financial position as of March 31, 2021, and consolidated results of operations for the three months ended March 31, 2021 and 2020, and cash flows for the three months ended March 31, 2021 and 2020. Such adjustments are of a normal and recurring nature. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation —The Company’s condensed consolidated financial statements include the accounts of the Company and its subsidiary, Homology Medicines Securities Corporation, a wholly owned Massachusetts corporation, for the sole purpose of buying, selling, and holding securities on the Company’s behalf. All intercompany balances and transactions have been eliminated in the condensed consolidated financial statements. Use of Estimates —The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, and the disclosure of contingent assets and liabilities as of and during the reporting period. The Company bases its estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition, accrued research and development expenses and useful lives assigned to property and equipment. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates. Comprehensive Income (Loss) —Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company’s only element of other comprehensive income (loss) is unrealized gains and losses on available-for-sale investments. Cash and Cash Equivalents and Restricted Cash —Cash and cash equivalents consist of standard checking accounts, money market accounts and certain investments. The Company considers all highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less to be cash equivalents. Restricted cash consists of cash serving as collateral for letters of credit issued for security deposits for the Company’s facility leases in Bedford, Massachusetts. The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in the condensed consolidated statements of cash flows: March 31, 2021 2020 (in thousands) Cash and cash equivalents $ 104,416 $ 143,372 Restricted cash 1,274 1,274 Total cash, cash equivalents and restricted cash $ 105,690 $ 144,646 Short-Term Investments —Short-term investments represent holdings of available-for-sale marketable securities in accordance with the Company’s investment policy and cash management strategy. Short-term investments have maturities of greater than 90 days at the time of purchase and mature within one year from the balance sheet date. Investments in marketable securities are recorded at fair value, with any unrealized gains and losses reported within accumulated other comprehensive income as a separate component of stockholders’ equity until realized or until a determination is made that an other-than-temporary decline in market value has occurred. Any premium or discount arising at purchase is amortized and/or accreted to interest income and/or expense over the life of the underlying security. Such amortization and accretion, together with interest on securities, are included in interest income in the Company’s condensed consolidated statements of operations. The cost of marketable securities sold is determined based on the specific identification method and any realized gains or losses on the sale of investments are reflected as a component of other income. Offering Costs —The Company capitalizes incremental legal, professional accounting and other third-party fees that are directly associated with equity financings as other current assets until the transactions are completed. After equity financings are complete, these costs are recorded in stockholders’ equity as a reduction of additional paid-in capital generated as a result of the offering. Leases —The Company determines if an arrangement is a lease at contract inception. The Company’s contracts are determined to contain a lease when all of the following criteria based on the specific circumstances of the arrangement are met: (1) there is an identified asset for which there are no substantive substitution rights; (2) the Company has the right to obtain substantially all of the economic benefits from the identified asset; and (3) the Company has the right to direct the use of the identified asset. At the commencement date, operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of future lease payments over the expected lease term. The Company’s lease agreements do not provide an implicit rate. As a result, the Company utilizes an estimated incremental borrowing rate to discount lease payments, which is based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or lease incentives received. Operating lease cost is recognized over the expected term on a straight-line basis. The expected lease term includes noncancelable lease periods and, when applicable, periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, as well as periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. Variable lease cost is recognized as incurred. The Company acts as sublessor related to a sublease of the Company's former headquarters. Fixed sublease payments received are recognized on a straight-line basis over the sublease term and recorded as a reduction to lease cost. Right-of-use assets are periodically evaluated for impairment. Research and Development Costs —Research and development costs are charged to expense as incurred. Research and development expense consists of expenses incurred in performing research and development activities, including salaries and benefits, materials and supplies, preclinical and clinical expenses, stock-based compensation expense, depreciation of equipment, contract services, and other outside expenses. Costs for certain development activities are recognized based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its vendors on their actual costs incurred. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the consolidated financial statements as prepaid expense or accrued research and development expense. Revenue Recognition— Revenue is recognized in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). On January 1, 2019, the Company adopted ASC 606 using the full retrospective transition method. Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs the following five steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations , including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer. The promised goods or services in the Company’s arrangements would likely consist of a license, rights to the Company’s intellectual property or research, development and manufacturing services. Performance obligations are promised goods or services in a contract to transfer a distinct good or service to the customer and are considered distinct when (i) the customer can benefit from the good or service on its own or together with other readily available resources and (ii) the promised good or service is separately identifiable from other promises in the contract. In assessing whether promised goods or services are distinct, the Company considers factors such as the stage of development of the underlying intellectual property, the capabilities of the customer to develop the intellectual property on its own or whether the required expertise is readily available and whether the goods or services are integral or dependent to other goods or services in the contract. The Company estimates the transaction price based on the amount expected to be received for transferring the promised goods or services in the contract. The consideration may include fixed consideration and variable consideration. At the inception of each arrangement that includes variable consideration, the Company evaluates the amount of consideration to which the Company expects to be entitled to. The Company utilizes either the most likely amount method or expected value method to estimate the amount expected to be received based on which method best predicts the amount expected to be received. The amount of variable consideration that is included in the transaction price may be constrained and is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. The Company’s contracts may include development and regulatory milestone payments that are assessed under the most likely amount method and constrained until it is probable that a significant revenue reversal would not occur. Milestone payments that are not within the Company’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of such development and regulatory milestones and any related constraint, and if necessary, adjust its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenue in the period of adjustment. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from the Company’s collaboration arrangement. The Company allocates the transaction price based on the estimated standalone selling price of each performance obligation. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction and the estimated costs. Variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated are consistent with the amounts the Company would expect to receive for the satisfaction of each performance obligation. The consideration allocated to each performance obligation is recognized as revenue when control is transferred for the related goods or services. For performance obligations which consist of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress. The Company evaluates the measure of progress for its over-time arrangements at each reporting period and, if necessary, updates the measure of progress and revenue recognized. Net Loss per Share— Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period and, if dilutive, the weighted-average number of potential shares of common stock. The weighted-average number of common shares included in the computation of diluted net loss gives effect to all potentially dilutive common equivalent shares, including outstanding stock options, restricted stock units and unvested shares of common stock. Common stock equivalent shares are excluded from the computation of diluted net loss per share if their effect is antidilutive. In periods in which the Company reports a net loss attributable to common stockholders, diluted net loss per share attributable to common stockholders is generally the same as basic net loss per share attributable to common stockholders , since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. Recent Accounting Pronouncements —The Jumpstart Our Business Startups Act of 2012 permits an emerging growth company to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies. As an emerging growth company, the Company has elected to take advantage of this extended transition period. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In October 2020, the FASB issued ASU 2020-10, Codification Improvements |
Short-Term Investments
Short-Term Investments | 3 Months Ended |
Mar. 31, 2021 | |
Investments Disclosure [Abstract] | |
SHORT-TERM INVESTMENTS | 3. SHORT-TERM INVESTMENTS The Company may invest its excess cash in fixed income instruments denominated and payable in U.S. dollars, including U.S. treasury securities, commercial paper, corporate debt securities and asset-backed securities in accordance with the Company’s investment policy that primarily seeks to maintain adequate liquidity and preserve capital. The Company has designated all investments as available-for-sale and therefore such investments are reported at fair value and classified as short-term investments on the Company’s condensed consolidated balance sheets. Unrealized gains or losses on investments are recorded in accumulated other comprehensive income or loss, a component of stockholders’ equity, on the Company’s condensed consolidated balance sheets. The following table summarizes the Company’s short-term investments as of March 31, 2021: As of March 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Commercial paper $ 48,941 $ — $ — $ 48,941 Corporate debt securities 35,315 1 (24 ) 35,292 Total $ 84,256 $ 1 $ (24 ) $ 84,233 The Company had no short-term investments as of December 31, 2020. The Company utilizes the specific identification method in computing realized gains and losses. The Company had no realized gains and losses on its available-for-sale securities for the three months ended March 31, 2021 and 2020. The contractual maturity dates of all of the Company’s investments are less than one year. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 4. FAIR VALUE MEASUREMENTS The Company’s financial instruments consist of cash and cash equivalents, short-term investments, restricted cash and accounts payable. The carrying amount of cash, restricted cash and accounts payable are each considered a reasonable estimate of fair value due to the short-term maturity. Assets measured at fair value on a recurring basis were as follows: Description March 31, 2021 Quoted Prices (Unadjusted) in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Cash equivalents: Money market mutual funds $ 104,166 $ 104,166 $ — $ — Total cash equivalents $ 104,166 $ 104,166 $ — $ — Short-term investments: Commercial paper $ 48,941 $ — $ 48,941 $ — Corporate debt securities 35,292 — 35,292 — Total short-term investments $ 84,233 $ — $ 84,233 $ — Total financial assets $ 188,399 $ 104,166 $ 84,233 $ — Description December 31, 2020 Quoted Prices (Unadjusted) in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Cash equivalents: Money market mutual funds $ 217,181 $ 217,181 $ — $ — Total financial assets $ 217,181 $ 217,181 $ — $ — Short-term securities are valued using models or other valuation methodologies that use Level 2 inputs. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, default rates, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. There were no transfers between fair value measure levels during the three months ended March 31, 2021 and 2020. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 5. PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following: As of March 31, 2021 December 31, 2020 (in thousands) Laboratory equipment $ 13,563 $ 12,703 Manufacturing equipment 7,815 7,754 Computers and purchased software 1,596 1,596 Furniture and fixtures 1,363 1,363 Leasehold improvements 29,961 29,961 Assets not yet in service 250 — Property and equipment, at cost 54,548 53,377 Less: accumulated depreciation and amortization (18,395 ) (16,375 ) Property and equipment, net $ 36,153 $ 37,002 Depreciation expense for the three months ended March 31, 2021 was approximately $2.1 million, compared to $1.9 million for the three months ended March 31, 2020. The Company disposed of less than $0.1 million of property and equipment during the three months ended March 31, 2021. There were no disposals of property and equipment during the three months ended March 31, 2020. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 6. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following: As of March 31, 2021 December 31, 2020 (in thousands) Accrued compensation and benefits $ 3,321 $ 6,902 Accrued research and development expenses 1,272 2,393 Accrued professional fees 461 291 Accrued other 369 217 Total accrued expenses and other liabilities $ 5,423 $ 9,803 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 7. COMMITMENTS AND CONTINGENCIES Operating Leases —In September 2016, the Company entered into a noncancelable operating lease beginning in November 2016 for office, laboratory and manufacturing space in Bedford, Massachusetts, that expires in October 2021, with an option for an additional three-year In December 2017, the Company entered into a noncancelable operating lease for approximately 67,000 square feet of research and development, manufacturing and general office space in Bedford, Massachusetts. The lease expires in February 2027 with an option for an additional five-year The Company maintains letters of credit, secured by restricted cash, for security deposits totaling $1.3 million as of March 31, 2021 and December 31, 2020, respectively, in conjunction with its current leases. The following table summarizes operating lease costs, variable lease costs and sublease income: Three months ended March 31, 2021 2020 (in thousands) Operating lease costs $ 623 $ 623 Variable lease costs 459 528 Sublease income (235 ) (228 ) Net lease cost $ 847 $ 923 The maturities of our operating lease liabilities and minimum lease payments as of March 31, 2021 were as follows: For the Years Ending December 31, Amount (in thousands) 2021 2,863 2022 2,987 2023 3,077 2024 3,169 Thereafter 7,197 Total undiscounted lease payments $ 19,293 Less: imputed interest (4,472 ) Present value of operating lease liabilities $ 14,821 The following table summarizes the lease term and discount rate as of March 31, 2021: As of March 31, 2021 Weighted-average remaining lease term (years) Operating leases 5.7 Weighted-average discount rate Operating leases 10.0 % The following table summarizes cash paid for amounts included in the measurement of the Company’s operating lease liabilities. Three months ended March 31, 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 965 $ 943 |
Stock Incentive Plans
Stock Incentive Plans | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK INCENTIVE PLANS | 8. STOCK INCENTIVE PLANS 2015 Stock Incentive Plan In December 2015, the Company’s Board of Directors adopted the 2015 Stock Incentive Plan (the “2015 Plan”), which provided for the grant of qualified incentive and nonqualified stock options or restricted stock awards to the Company’s employees, officers, directors, advisors, and outside consultants. Stock options generally vest over a four-year 2018 Incentive Award Plan In March 2018, the Company’s Board of Directors adopted and the Company’s stockholders approved the Homology Medicines, Inc. 2018 Incentive Award Plan (the “2018 Plan” and, together with the 2015 Plan, the “Plans”), which became effective on the day prior to the first public trading date of the Company’s common stock. Upon effectiveness of the 2018 Plan, the Company ceased granting new awards under the 2015 Plan. The 2018 Plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units, stock appreciation rights and other stock or cash-based awards to employees and consultants of the Company and certain affiliates and directors of the Company. The number of shares of common stock initially available for issuance under the 2018 Plan was 3,186,205 shares of common stock plus the number of shares subject to awards outstanding under the 2015 Plan that expire, terminate or are otherwise surrendered, cancelled, forfeited or repurchased by the Company on or after the effective date of the 2018 Plan. In addition, the number of shares of common stock available for issuance under the 2018 Plan is subject to an annual increase on the first day of each calendar year beginning on January 1, 2019, and ending on and including January 1, 2028, equal to the lesser of (i) 4% of the Company’s outstanding shares of common stock on the final day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as determined by the Company’s Board of Directors, provided that not more than 20,887,347 shares of common stock may be issued under the 2018 Plan upon the exercise of incentive stock options. Therefore, on January 1, 2021, an additional 2,010,623 shares were added to the 2018 Plan, representing 4% of total common shares outstanding at December 31, 2020. As of March 31, 2021, there were 2,574,959 shares available for future grant under the 2018 Plan. 2018 Employee Stock Purchase Plan In March 2018, the Company’s Board of Directors adopted and the Company’s stockholders approved the Homology Medicines, Inc. 2018 Employee Stock Purchase Plan (the “2018 ESPP”). The 2018 ESPP allows employees to buy Company stock through after-tax payroll deductions at a discount from market value. The 2018 ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. The number of shares of common stock initially available for issuance under the 2018 ESPP was 353,980 shares of common stock plus an annual increase on the first day of each calendar year, beginning on January 1, 2019, and ending on and including January 1, 2028 equal to the lesser of (i) 1% of the Company’s outstanding shares of common stock on the final day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as determined by the Company’s Board of Directors, provided that not more than 4,778,738 shares of common stock may be issued under the 2018 ESPP. Therefore, on January 1, 2021, an additional 502,655 shares were added to the 2018 ESPP, representing 1% of total common shares outstanding at December 31, 2020. As of March 31, 2021, there were 1,493,513 shares available for future issuance under the 2018 ESPP. Under the 2018 ESPP, employees may purchase common stock through after-tax payroll deductions at a price equal to 85% of the lower of the fair market value on the first trading day of an offering period or the last trading day of an offering period. The 2018 ESPP generally provides for offering periods of six months in duration that end on the final trading day of each February and August. In accordance with the Internal Revenue Code, no employee will be permitted to accrue the right to purchase stock under the 2018 ESPP at a rate in excess of $25,000 worth of shares during any calendar year during which such a purchase right is outstanding (based on the fair market value per share of the Company’s common stock as of the first day of the offering period). During the three months ended March 31, 2021, 48,792 shares were issued under the 2018 ESPP for aggregate proceeds to the Company of $0.4 million. During the three months ended March 31, 2020, 39,471 shares were issued under the 2018 ESPP for aggregate proceeds to the Company of $0.5 million. Stock-based compensation expense pursuant to the 2018 ESPP during the three months ended March 31, 2021 and 2020 was insignificant in each period. Stock Options The fair values of stock options granted during the periods presented are measured on the date of grant using the Black-Scholes option pricing model, with the assumptions noted in the table below. Expected volatility for the Company’s common stock was determined based on an average of the historical volatility of a peer group of publicly traded companies that are similar to the Company. The expected term of options granted to employees was calculated using the simplified method, which represents the average of the contractual term of the option and the weighted-average vesting period of the option. The Company uses the simplified method because it does not have sufficient historical option exercise data to provide a reasonable basis upon which to estimate expected term. The contractual life of the options was used for the expected term of options granted to non-employees. The assumed dividend yield is based upon the Company’s expectation of not paying dividends in the foreseeable future. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods commensurate with the expected term of the award. The Company recognizes forfeitures as they occur. The assumptions used in the Black-Scholes option pricing model are as follows: Three months ended March 31, 2021 2020 Expected volatility 66.8% — 67.1% 63.2% — 63.5% Weighted-average risk-free interest rate 0.50% — 0.76% 0.74% — 1.73% Expected dividend yield — % — % Expected term (in years) 6.25 6.25 Underlying common stock fair value $11.64 — $13.91 $17.00 — $21.75 The following table summarizes the Company’s stock option activity for the three months ended March 31, 2021: Number of Options Weighted- Average Exercise Price per Share Weighted- Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2021 5,840,824 $ 15.18 7.8 $ 12,278 Granted 1,628,650 $ 13.81 Exercised (55,277 ) $ 2.43 Cancelled/Forfeited (72,839 ) $ 19.40 Outstanding at March 31, 2021 7,341,358 $ 14.93 8.1 $ 8,684 Vested and expected to vest at March 31, 2021 7,341,358 $ 14.93 8.1 $ 8,684 Exercisable at March 31, 2021 3,199,381 $ 12.78 7.0 $ 8,100 The total intrinsic value of options exercised during the three months ended March 31, 2021 and 2020 was $0.6 million and $0.5 million, respectively. The weighted-average grant date fair value per share of options granted during the three months ended March 31, 2021 and 2020 was $8.37 and $12.47, respectively. Stock options granted pursuant to the 2015 Plan permit option holders to elect to exercise unvested options in exchange for unvested common stock. Options granted under the 2015 Plan that are exercised prior to vesting will continue to vest according to the respective option agreement, and such unvested shares are subject to repurchase by the Company at the optionee’s original exercise price in the event the optionee’s service with the Company voluntarily or involuntarily terminates. A summary of the Company’s unvested common stock from early exercises that is subject to repurchase by the Company is as follows: Shares Unvested shares - January 1, 2021 3,091 Vested (1,011 ) Issued — Repurchased — Unvested shares - March 31, 2021 2,080 As of March 31, 2021 and December 31, 2020, 2,080 shares and 3,091 shares, respectively, remained subject to a repurchase right by the Company, with a related liability included in accrued expenses and other liabilities in the condensed consolidated balance sheets of less than $0.1 million as of March 31, 2021 and December 31, 2020. Restricted Stock Units The fair values of restricted stock units (“RSUs”) are based on the fair market value of the Company’s common stock on the date of grant. Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting. In general, RSUs vest annually in three equal installments on January 1 st Number of Restricted Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2021 - $ — Granted 277,400 $ 13.85 Vested — $ — Forfeited — $ — Outstanding at March 31, 2021 277,400 $ 13.85 Stock-based Compensation Expense The Company recognizes compensation expense for awards to employees based on the grant date fair value of stock-based awards on a straight-line basis over the period during which an award holder provides service in exchange for the award, which is generally the vesting period. The Company recorded stock-based compensation expense related to stock options and restricted stock units as follows: Three months ended March 31, 2021 2020 (in thousands) Research and development $ 1,857 $ 1,313 General and administrative 2,026 1,570 $ 3,883 $ 2,883 As of March 31, 2021, there was $42.3 million of unrecognized compensation expense related to unvested employee and non-employee share-based compensation arrangements granted under the Plans. The unrecognized compensation expense is estimated to be recognized over a period of 2.8 years at March 31, 2021. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | 9. NET LOSS PER SHARE The Company’s potential dilutive securities, which include unvested common stock from the early-exercise of stock options, outstanding common stock options and outstanding RSUs, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at March 31, 2021 and 2020, from the computation of diluted net loss per share attributable to common stockholders because including them would have had an anti-dilutive effect: As of March 31, 2021 2020 Unvested common stock from early exercise of options 2,080 6,124 Stock options to purchase common stock 7,341,358 5,447,815 Restricted Stock Units 277,400 — Total 7,620,838 5,453,939 |
Collaboration and License Agree
Collaboration and License Agreement | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
COLLABORATION AND LICENSE AGREEMENT | 10. COLLABORATION AND LICENSE AGREEMENT Termination of the Novartis Collaboration Agreement In November 2017, the Company entered into a collaboration and license agreement with Novartis (as amended, the “Collaboration Agreement”) for the research, development, manufacturing and commercialization of products using the Company’s gene editing technology for the treatment of certain ophthalmic targets and sickle cell disease. In February 2019, Novartis elected to discontinue the sickle cell disease program under the Collaboration Agreement effective in August 2019. Under the terms of the Collaboration Agreement, the Company granted Novartis a research license, a development and commercialization license and a manufacturing license, under certain of its intellectual property rights to research, develop, manufacture and commercialize ophthalmic targets. The Collaboration Agreement included a research term, during which the Company and Novartis were collaborating to perform research and preclinical development work, as well development and commercialization terms, during which the Company would be responsible for manufacturing all product candidates and products. The Company and Novartis were also participating on a joint steering committee and a joint manufacturing subcommittee. The Company had determined that the (1) research, development and commercialization and manufacturing licenses, (2) the research activities performed by the Company, (3) service on the joint committees and (4) manufacturing during the research and development terms represented a single performance obligation under the Collaboration Agreement. On February 26, 2021, Homology received notice from Novartis that they had elected to terminate the Collaboration Agreement with the Company with respect to the remaining ophthalmic target under the Collaboration Agreement and as a result, the Company regained worldwide exclusive rights to this target. Accordingly, the notice served as notice of Novartis’ termination of the Collaboration Agreement in its entirety, which will be effective on August 26, 2021. Under the terms of the Collaboration Agreement, Novartis is obligated to continue to reimburse the Company for certain research and development costs through August 26, 2021. Upon effectiveness of the termination, such reimbursements will cease. The delivery of the termination notice caused a change in the estimate of total costs to satisfy the single performance obligation under the Collaboration Agreement . The cumulative effect of revisions to the total estimated costs to complete the Company’s single performance obligation was recorded in the current period when the changes were identified and amounts could be reasonably estimated. As such, the Company recognized a cumulative effect adjustment of approximately $ million in collaboration revenue in the period. Revenue Recognition The Company recognizes revenue pursuant to the Collaboration Agreement over time using a cost-to-cost method, which it believes best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Under this method, revenue is recorded over the performance period as a percentage of the estimated transaction price based on the extent of progress towards completion. As of March 31, 2021, the aggregate amount of the transaction price related to the unsatisfied portion of the performance obligation is $2.0 million, and the Company will recognize this revenue as the remaining research activities are performed, which will conclude on August 26, 2021. During the three months ended March 31, 2021 and 2020, the Company recognized revenue under the Collaboration Agreement of $28.5 million and $0.6 million, respectively, of which $28.2 million and $0.2 million was included in deferred revenue at the beginning of each such period. As of March 31, 2021 and December 31, 2020, there was approximately $2.0 million and $30.2 million of deferred revenue related to the Collaboration Agreement, respectively. In addition, as of March 31, 2021 and December 31, 2020, the Company has recorded accounts receivable of $0.3 million and $0.4 million, respectively, related to reimbursable research and development costs under the Collaboration Agreement, which are included in prepaid expenses and other current assets on the condensed consolidated balance sheets as of each such date. |
Pfizer Stock Purchase Agreement
Pfizer Stock Purchase Agreement | 3 Months Ended |
Mar. 31, 2021 | |
Pfizer Inc. | |
PFIZER STOCK PURCHASE AGREEMENT | 11. PFIZER STOCK PURCHASE AGREEMENT On November 9, 2020, the Company entered into a common stock purchase agreement (the “Stock Purchase Agreement”) with Pfizer Inc. (“Pfizer”), pursuant to which the Company sold to Pfizer 5,000,000 shares of the Company’s common stock through a private placement transaction (the “Private Placement”) at a purchase price of $12.00 per share, for an aggregate purchase price of $60.0 million. The shares of common stock sold to Pfizer are subject to a one-year lock-up from closing, during which time Pfizer is prohibited from selling or otherwise disposing of such shares. Under the Stock Purchase Agreement, Pfizer was granted an exclusive right of first refusal (the “ROFR”) for a 30-month period (the “ROFR Period”) beginning on the date of the closing of the Private Placement (collectively, the “ROFR Provision”), to negotiate a potential collaboration on the development and commercialization of HMI-102 and HMI-103. HMI-102 and HMI-103 The Company recorded the issuance of common stock at its estimated fair value of $52.0 million, which reflects a discount for the lack of marketability of the shares. The remaining $8.0 million of aggregate purchase price was allocated to the other elements of the Stock Purchase Agreement, which represent a contract with a customer. The Company concluded that the Information Committee represents the only performance obligation under the contract. The ROFR does not provide Pfizer with a material right and is therefore not a performance obligation. As such, the Company allocated the $8.0 million to the Information Committee obligation. The Company recognizes revenue over time as the measure of progress, which it believes best depicts the transfer of control to Pfizer. The Information Committee will meet regularly over the ROFR Period to share information which results in recognition of the transaction price over the 30-month ROFR Period. During the three months ended March 31, 2021, the Company recognized collaboration revenue of $0.8 million, and as of March 31, 2021, there was approximately $ 6.8 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS On April 6, 2021, the Company completed a follow-on offering of its common stock. The Company sold 6,596,306 shares of its common stock at a price of $7.58 per share and received net proceeds of approximately $49.4 million, after deducting estimated offering expenses. Under the terms of the underwriting agreement, the Company also granted the underwriter an option exercisable for 30 days to purchase up to an additional 989,445 shares of its common stock at a price of $7.58 per share. The offering closed on April 9, 2021. The shares were sold pursuant to the Company’s effective shelf registration statement on Form S-3, as amended, and a related prospectus supplement filed with the SEC on April 8, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2020, included in the Company's Annual Report on Form 10-K on file with the SEC. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments which are necessary for a fair statement of the Company’s financial position as of March 31, 2021, and consolidated results of operations for the three months ended March 31, 2021 and 2020, and cash flows for the three months ended March 31, 2021 and 2020. Such adjustments are of a normal and recurring nature. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2021. |
Principles of Consolidation | Principles of Consolidation —The Company’s condensed consolidated financial statements include the accounts of the Company and its subsidiary, Homology Medicines Securities Corporation, a wholly owned Massachusetts corporation, for the sole purpose of buying, selling, and holding securities on the Company’s behalf. All intercompany balances and transactions have been eliminated in the condensed consolidated financial statements. |
Use of Estimates | Use of Estimates —The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, and the disclosure of contingent assets and liabilities as of and during the reporting period. The Company bases its estimates and assumptions on historical experience when available and on various factors that it believes to be reasonable under the circumstances. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, revenue recognition, accrued research and development expenses and useful lives assigned to property and equipment. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) —Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The Company’s only element of other comprehensive income (loss) is unrealized gains and losses on available-for-sale investments. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash —Cash and cash equivalents consist of standard checking accounts, money market accounts and certain investments. The Company considers all highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less to be cash equivalents. Restricted cash consists of cash serving as collateral for letters of credit issued for security deposits for the Company’s facility leases in Bedford, Massachusetts. The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in the condensed consolidated statements of cash flows: March 31, 2021 2020 (in thousands) Cash and cash equivalents $ 104,416 $ 143,372 Restricted cash 1,274 1,274 Total cash, cash equivalents and restricted cash $ 105,690 $ 144,646 |
Short-Term Investments | Short-Term Investments —Short-term investments represent holdings of available-for-sale marketable securities in accordance with the Company’s investment policy and cash management strategy. Short-term investments have maturities of greater than 90 days at the time of purchase and mature within one year from the balance sheet date. Investments in marketable securities are recorded at fair value, with any unrealized gains and losses reported within accumulated other comprehensive income as a separate component of stockholders’ equity until realized or until a determination is made that an other-than-temporary decline in market value has occurred. Any premium or discount arising at purchase is amortized and/or accreted to interest income and/or expense over the life of the underlying security. Such amortization and accretion, together with interest on securities, are included in interest income in the Company’s condensed consolidated statements of operations. The cost of marketable securities sold is determined based on the specific identification method and any realized gains or losses on the sale of investments are reflected as a component of other income. |
Offering Costs | Offering Costs —The Company capitalizes incremental legal, professional accounting and other third-party fees that are directly associated with equity financings as other current assets until the transactions are completed. After equity financings are complete, these costs are recorded in stockholders’ equity as a reduction of additional paid-in capital generated as a result of the offering. |
Leases | Leases —The Company determines if an arrangement is a lease at contract inception. The Company’s contracts are determined to contain a lease when all of the following criteria based on the specific circumstances of the arrangement are met: (1) there is an identified asset for which there are no substantive substitution rights; (2) the Company has the right to obtain substantially all of the economic benefits from the identified asset; and (3) the Company has the right to direct the use of the identified asset. At the commencement date, operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of future lease payments over the expected lease term. The Company’s lease agreements do not provide an implicit rate. As a result, the Company utilizes an estimated incremental borrowing rate to discount lease payments, which is based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or lease incentives received. Operating lease cost is recognized over the expected term on a straight-line basis. The expected lease term includes noncancelable lease periods and, when applicable, periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, as well as periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. Variable lease cost is recognized as incurred. The Company acts as sublessor related to a sublease of the Company's former headquarters. Fixed sublease payments received are recognized on a straight-line basis over the sublease term and recorded as a reduction to lease cost. Right-of-use assets are periodically evaluated for impairment. |
Research and Development Costs | Research and Development Costs —Research and development costs are charged to expense as incurred. Research and development expense consists of expenses incurred in performing research and development activities, including salaries and benefits, materials and supplies, preclinical and clinical expenses, stock-based compensation expense, depreciation of equipment, contract services, and other outside expenses. Costs for certain development activities are recognized based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its vendors on their actual costs incurred. Payments for these activities are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the consolidated financial statements as prepaid expense or accrued research and development expense. |
Revenue Recognition | Revenue Recognition— Revenue is recognized in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). On January 1, 2019, the Company adopted ASC 606 using the full retrospective transition method. Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine the appropriate amount of revenue to be recognized for arrangements determined to be within the scope of ASC 606, the Company performs the following five steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations , including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect consideration it is entitled to in exchange for the goods or services it transfers to the customer. The promised goods or services in the Company’s arrangements would likely consist of a license, rights to the Company’s intellectual property or research, development and manufacturing services. Performance obligations are promised goods or services in a contract to transfer a distinct good or service to the customer and are considered distinct when (i) the customer can benefit from the good or service on its own or together with other readily available resources and (ii) the promised good or service is separately identifiable from other promises in the contract. In assessing whether promised goods or services are distinct, the Company considers factors such as the stage of development of the underlying intellectual property, the capabilities of the customer to develop the intellectual property on its own or whether the required expertise is readily available and whether the goods or services are integral or dependent to other goods or services in the contract. The Company estimates the transaction price based on the amount expected to be received for transferring the promised goods or services in the contract. The consideration may include fixed consideration and variable consideration. At the inception of each arrangement that includes variable consideration, the Company evaluates the amount of consideration to which the Company expects to be entitled to. The Company utilizes either the most likely amount method or expected value method to estimate the amount expected to be received based on which method best predicts the amount expected to be received. The amount of variable consideration that is included in the transaction price may be constrained and is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. The Company’s contracts may include development and regulatory milestone payments that are assessed under the most likely amount method and constrained until it is probable that a significant revenue reversal would not occur. Milestone payments that are not within the Company’s control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of such development and regulatory milestones and any related constraint, and if necessary, adjust its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenue in the period of adjustment. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from the Company’s collaboration arrangement. The Company allocates the transaction price based on the estimated standalone selling price of each performance obligation. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction and the estimated costs. Variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated are consistent with the amounts the Company would expect to receive for the satisfaction of each performance obligation. The consideration allocated to each performance obligation is recognized as revenue when control is transferred for the related goods or services. For performance obligations which consist of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress. The Company evaluates the measure of progress for its over-time arrangements at each reporting period and, if necessary, updates the measure of progress and revenue recognized. |
Net Loss per Share | Net Loss per Share— Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted-average number of common shares outstanding during the period and, if dilutive, the weighted-average number of potential shares of common stock. The weighted-average number of common shares included in the computation of diluted net loss gives effect to all potentially dilutive common equivalent shares, including outstanding stock options, restricted stock units and unvested shares of common stock. Common stock equivalent shares are excluded from the computation of diluted net loss per share if their effect is antidilutive. In periods in which the Company reports a net loss attributable to common stockholders, diluted net loss per share attributable to common stockholders is generally the same as basic net loss per share attributable to common stockholders , since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements —The Jumpstart Our Business Startups Act of 2012 permits an emerging growth company to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies. As an emerging growth company, the Company has elected to take advantage of this extended transition period. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In October 2020, the FASB issued ASU 2020-10, Codification Improvements |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in the condensed consolidated statements of cash flows: March 31, 2021 2020 (in thousands) Cash and cash equivalents $ 104,416 $ 143,372 Restricted cash 1,274 1,274 Total cash, cash equivalents and restricted cash $ 105,690 $ 144,646 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments Disclosure [Abstract] | |
Summary of Short Term Investments | The following table summarizes the Company’s short-term investments as of March 31, 2021: As of March 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Commercial paper $ 48,941 $ — $ — $ 48,941 Corporate debt securities 35,315 1 (24 ) 35,292 Total $ 84,256 $ 1 $ (24 ) $ 84,233 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis were as follows: Description March 31, 2021 Quoted Prices (Unadjusted) in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Cash equivalents: Money market mutual funds $ 104,166 $ 104,166 $ — $ — Total cash equivalents $ 104,166 $ 104,166 $ — $ — Short-term investments: Commercial paper $ 48,941 $ — $ 48,941 $ — Corporate debt securities 35,292 — 35,292 — Total short-term investments $ 84,233 $ — $ 84,233 $ — Total financial assets $ 188,399 $ 104,166 $ 84,233 $ — Description December 31, 2020 Quoted Prices (Unadjusted) in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Cash equivalents: Money market mutual funds $ 217,181 $ 217,181 $ — $ — Total financial assets $ 217,181 $ 217,181 $ — $ — |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following: As of March 31, 2021 December 31, 2020 (in thousands) Laboratory equipment $ 13,563 $ 12,703 Manufacturing equipment 7,815 7,754 Computers and purchased software 1,596 1,596 Furniture and fixtures 1,363 1,363 Leasehold improvements 29,961 29,961 Assets not yet in service 250 — Property and equipment, at cost 54,548 53,377 Less: accumulated depreciation and amortization (18,395 ) (16,375 ) Property and equipment, net $ 36,153 $ 37,002 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following: As of March 31, 2021 December 31, 2020 (in thousands) Accrued compensation and benefits $ 3,321 $ 6,902 Accrued research and development expenses 1,272 2,393 Accrued professional fees 461 291 Accrued other 369 217 Total accrued expenses and other liabilities $ 5,423 $ 9,803 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Costs, Variable Lease Costs and Sub Lease Income | The following table summarizes operating lease costs, variable lease costs and sublease income: Three months ended March 31, 2021 2020 (in thousands) Operating lease costs $ 623 $ 623 Variable lease costs 459 528 Sublease income (235 ) (228 ) Net lease cost $ 847 $ 923 |
Schedule of Operating Lease Liabilities and Minimum Lease Payments | The maturities of our operating lease liabilities and minimum lease payments as of March 31, 2021 were as follows: For the Years Ending December 31, Amount (in thousands) 2021 2,863 2022 2,987 2023 3,077 2024 3,169 Thereafter 7,197 Total undiscounted lease payments $ 19,293 Less: imputed interest (4,472 ) Present value of operating lease liabilities $ 14,821 |
Schedule of Lease Term and Discount Rate | The following table summarizes the lease term and discount rate as of March 31, 2021: As of March 31, 2021 Weighted-average remaining lease term (years) Operating leases 5.7 Weighted-average discount rate Operating leases 10.0 % |
Schedule of Operating Lease Liabilities | The following table summarizes cash paid for amounts included in the measurement of the Company’s operating lease liabilities. Three months ended March 31, 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 965 $ 943 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock Options Valuation Assumptions Using a Black-Scholes Option Pricing Model | The assumptions used in the Black-Scholes option pricing model are as follows: Three months ended March 31, 2021 2020 Expected volatility 66.8% — 67.1% 63.2% — 63.5% Weighted-average risk-free interest rate 0.50% — 0.76% 0.74% — 1.73% Expected dividend yield — % — % Expected term (in years) 6.25 6.25 Underlying common stock fair value $11.64 — $13.91 $17.00 — $21.75 |
Summary of Option Activity under Plans | The following table summarizes the Company’s stock option activity for the three months ended March 31, 2021: Number of Options Weighted- Average Exercise Price per Share Weighted- Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2021 5,840,824 $ 15.18 7.8 $ 12,278 Granted 1,628,650 $ 13.81 Exercised (55,277 ) $ 2.43 Cancelled/Forfeited (72,839 ) $ 19.40 Outstanding at March 31, 2021 7,341,358 $ 14.93 8.1 $ 8,684 Vested and expected to vest at March 31, 2021 7,341,358 $ 14.93 8.1 $ 8,684 Exercisable at March 31, 2021 3,199,381 $ 12.78 7.0 $ 8,100 |
Summary of Unvested Common Stock from Early Exercises Subject to Repurchase | A summary of the Company’s unvested common stock from early exercises that is subject to repurchase by the Company is as follows: Shares Unvested shares - January 1, 2021 3,091 Vested (1,011 ) Issued — Repurchased — Unvested shares - March 31, 2021 2,080 |
Summary of Company's RSU Activity | The following table summarizes the Company’s RSU activity for the three months ended March 31, 2021: Number of Restricted Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2021 - $ — Granted 277,400 $ 13.85 Vested — $ — Forfeited — $ — Outstanding at March 31, 2021 277,400 $ 13.85 |
Schedule of Stock-Based Compensation Expense | The Company recorded stock-based compensation expense related to stock options and restricted stock units as follows: Three months ended March 31, 2021 2020 (in thousands) Research and development $ 1,857 $ 1,313 General and administrative 2,026 1,570 $ 3,883 $ 2,883 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Anti-dilutive Effect Excluded from Computation of Diluted Net Loss Per Share Attributable to Common Stockholders | The Company excluded the following potential common shares, presented based on amounts outstanding at March 31, 2021 and 2020, from the computation of diluted net loss per share attributable to common stockholders because including them would have had an anti-dilutive effect: As of March 31, 2021 2020 Unvested common stock from early exercise of options 2,080 6,124 Stock options to purchase common stock 7,341,358 5,447,815 Restricted Stock Units 277,400 — Total 7,620,838 5,453,939 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - Additional Information (Details) - USD ($) | Apr. 06, 2021 | Nov. 09, 2020 | Mar. 12, 2020 | Apr. 12, 2019 | Apr. 02, 2018 | Apr. 30, 2021 | Nov. 09, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||
Conversion of convertible preferred stock into common stock upon initial public offering, Shares | 24,168,656 | |||||||||
Net loss | $ 1,073,000 | $ 35,331,000 | ||||||||
Accumulated deficit | 329,441,000 | $ 328,368,000 | ||||||||
Maximum | ||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||
Proceeds through future financings | $ 148,400 | |||||||||
Follow-On Offering | Common Stock | ||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||
Issuance of common stock, net of discounts and issuance costs, Shares | 5,555,556 | |||||||||
Shares issued price per share | $ 22.50 | |||||||||
Net proceeds after deducting underwriting discounts and commissions and offering expenses | $ 116,900,000 | |||||||||
Follow-On Offering | Subsequent Event | ||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||
Net proceed from issuance of common stock | $ 49,400,000 | |||||||||
Follow-On Offering | Subsequent Event | Common Stock | ||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||
Issuance of common stock, net of discounts and issuance costs, Shares | 6,596,306 | |||||||||
Shares issued price per share | $ 7.58 | |||||||||
Net proceeds after deducting underwriting discounts and commissions and offering expenses | $ 49,400,000 | |||||||||
Initial Public Offering | ||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||
Issuance of common stock, net of discounts and issuance costs, Shares | 10,350,000 | |||||||||
Common stock at a public offering price | $ 16 | |||||||||
Net proceeds from initial public offering after underwriting discounts and commissions and offering expenses | $ 150,800,000 | |||||||||
Underwriters Option | Common Stock | ||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||
Issuance of common stock, net of discounts and issuance costs, Shares | 833,333 | |||||||||
Shares issued price per share | $ 22.50 | |||||||||
Net proceeds after deducting underwriting discounts and commissions and offering expenses | $ 17,600,000 | |||||||||
Private Placement | ||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||
Net proceed from issuance of common stock | $ 60,000,000 | $ 60,000,000 | ||||||||
Issuance of common stock, net of discounts and issuance costs, Shares | 5,000,000 | 5,000,000 | ||||||||
Shares issued price per share | $ 12 | $ 12 | ||||||||
ATM | ||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||
Net proceed from issuance of common stock | $ 1,500,000 | |||||||||
Issuance of common stock, net of discounts and issuance costs, Shares | 114,914 | |||||||||
Shares issued price per share | $ 14 | |||||||||
Proceeds through future financings | $ 148,400,000 | |||||||||
Commission Fee | 3.00% | |||||||||
ATM | Maximum | ||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||
Proceeds through future financings | $ 150,000,000 | |||||||||
ATM | Common Stock | ||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||
Issuance of common stock, net of discounts and issuance costs, Shares | 114,914 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 104,416 | $ 217,431 | $ 143,372 |
Restricted cash | 1,274 | $ 1,274 | 1,274 |
Total cash, cash equivalents and restricted cash | $ 105,690 | $ 144,646 |
Short-Term Investments - Summar
Short-Term Investments - Summary of Short Term Investments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Schedule Of Cash Cash Equivalents And Available For Sale Securities [Line Items] | |
Cash equivalents and short-term investments, Amortized Cost | $ 84,256 |
Cash equivalents and short-term investments, Unrealized Gains | 1 |
Cash equivalents and short-term investments, Unrealized Losses | (24) |
Cash equivalents and short-term investments, Fair Value | 84,233 |
Commercial Paper | |
Schedule Of Cash Cash Equivalents And Available For Sale Securities [Line Items] | |
Cash equivalents and short-term investments, Amortized Cost | 48,941 |
Cash equivalents and short-term investments, Fair Value | 48,941 |
Corporate Debt Securities | |
Schedule Of Cash Cash Equivalents And Available For Sale Securities [Line Items] | |
Cash equivalents and short-term investments, Amortized Cost | 35,315 |
Cash equivalents and short-term investments, Unrealized Gains | 1 |
Cash equivalents and short-term investments, Unrealized Losses | (24) |
Cash equivalents and short-term investments, Fair Value | $ 35,292 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Cash Cash Equivalents And Available For Sale Securities [Abstract] | |||
Short-term investments | $ 84,233,000 | $ 0 | |
Realized gains and losses on available-for-sale securities | $ 0 | $ 0 | |
Contractual maturity date of investments | less than one year |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments, fair value | $ 84,233,000 | $ 0 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents, fair value | 104,166,000 | |
Short-term investments, fair value | 84,233,000 | |
Financial assets, fair value | 188,399,000 | 217,181,000 |
Fair Value, Measurements, Recurring | Money Market Mutual Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents, fair value | 104,166,000 | 217,181,000 |
Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments, fair value | 48,941,000 | |
Fair Value, Measurements, Recurring | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments, fair value | 35,292,000 | |
Fair Value, Measurements, Recurring | Quoted Prices (Unadjusted) in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents, fair value | 104,166,000 | |
Financial assets, fair value | 104,166,000 | 217,181,000 |
Fair Value, Measurements, Recurring | Quoted Prices (Unadjusted) in Active Markets for Identical Assets (Level 1) | Money Market Mutual Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents, fair value | 104,166,000 | $ 217,181,000 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments, fair value | 84,233,000 | |
Financial assets, fair value | 84,233,000 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments, fair value | 48,941,000 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-term investments, fair value | $ 35,292,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Transfers between fair value measure levels | $ 0 | $ 0 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, at cost | $ 54,548 | $ 53,377 |
Less: accumulated depreciation and amortization | (18,395) | (16,375) |
Property and equipment, net | 36,153 | 37,002 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, at cost | 13,563 | 12,703 |
Manufacturing Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, at cost | 7,815 | 7,754 |
Computers and Purchased Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, at cost | 1,596 | 1,596 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, at cost | 1,363 | 1,363 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, at cost | 29,961 | $ 29,961 |
Assets Not Yet in Service | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, at cost | $ 250 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property Plant And Equipment [Line Items] | ||
Depreciation | $ 2,080,000 | $ 1,907,000 |
Disposal of property and equipment | $ 0 | |
Maximum | ||
Property Plant And Equipment [Line Items] | ||
Disposal of property and equipment | $ 100,000 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued compensation and benefits | $ 3,321 | $ 6,902 |
Accrued research and development expenses | 1,272 | 2,393 |
Accrued professional fees | 461 | 291 |
Accrued other | 369 | 217 |
Total accrued expenses and other liabilities | $ 5,423 | $ 9,803 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Details) | 1 Months Ended | |||
Dec. 31, 2017ft²Phase$ / ft² | Sep. 30, 2016 | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Letters Of Credit And Secured By Restricted Cash | ||||
Commitment And Contingencies [Line Items] | ||||
Security deposit | $ | $ 1,300,000 | $ 1,300,000 | ||
Maximum | ||||
Commitment And Contingencies [Line Items] | ||||
Tenant improvement allowance | $ | 10,900,000 | |||
Bedford, Massachusetts | ||||
Commitment And Contingencies [Line Items] | ||||
Operating lease beginning year and month | 2016-11 | |||
Operating lease expiration year and month | 2027-02 | 2021-10 | ||
Operating lease agreements additional term | 3 years | |||
Sublease aggregate base rent obligation | $ | $ 2,700,000 | |||
Office space leased | ft² | 67,000 | |||
Lessee, operating lease, lease not yet commenced, renewal term | 5 years | |||
Number of phases | Phase | 2 | |||
Initial annual base rent per square foot | $ / ft² | 39.50 | |||
Percentage increase in initial annual base rent per square foot. | 3.00% | |||
Bedford, Massachusetts | Phase One | ||||
Commitment And Contingencies [Line Items] | ||||
Office space leased | ft² | 46,000 | |||
Rent due date | 2018-09 | |||
Bedford, Massachusetts | Phase Two | ||||
Commitment And Contingencies [Line Items] | ||||
Office space leased | ft² | 21,000 | |||
Rent due date | 2019-03 |
Commitment and Contingencies _2
Commitment and Contingencies - Schedule of Operating Lease Costs, Variable Lease Costs and Sub Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Operating lease costs | $ 623 | $ 623 |
Variable lease costs | 459 | 528 |
Sublease income | (235) | (228) |
Net lease cost | $ 847 | $ 923 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Operating Lease Liabilities and Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 | $ 2,863 |
2022 | 2,987 |
2023 | 3,077 |
2024 | 3,169 |
Thereafter | 7,197 |
Total undiscounted lease payments | 19,293 |
Less: imputed interest | (4,472) |
Present value of operating lease liabilities | $ 14,821 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Lease Term and Discount Rate (Details) | Mar. 31, 2021 |
Commitments And Contingencies Disclosure [Abstract] | |
Weighted-average remaining lease term (years), Operating leases | 5 years 8 months 12 days |
Weighted-average discount rate, Operating leases | 10.00% |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Cash Paid for Company's Operating Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 965 | $ 943 |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2021 | Mar. 31, 2018 | Mar. 31, 2021 | Mar. 31, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate proceeds from shares issued under the plan | $ 446 | $ 537 | ||
Total intrinsic value of options exercised | $ 600 | $ 500 | ||
Weighted-average grant date fair value per share for options granted | $ 8.37 | $ 12.47 | ||
2015 Stock Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option vesting period | 4 years | |||
Stock options expiration period | 10 years | |||
Number of additional shares available for future grant | 0 | |||
2018 Incentive Award Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares available for issuance | 3,186,205 | |||
Allowed annual percentage increase in shares authorized as percentage of outstanding shares of common stock | 4.00% | 4.00% | ||
Maximum shares of common stock may be issued | 20,887,347 | |||
Number of additional shares added to the plan | 2,010,623 | |||
Number of shares outstanding available for future grant | 2,574,959 | |||
2018 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares available for issuance | 353,980 | |||
Allowed annual percentage increase in shares authorized as percentage of outstanding shares of common stock | 1.00% | 1.00% | ||
Number of additional shares added to the plan | 502,655 | |||
Number of shares outstanding available for future grant | 1,493,513 | |||
Maximum shares allowed to be issued under ESPP | 4,778,738 | |||
Purchase of common stock through payroll deductions expressed in percentage of fair market value | 85.00% | |||
Common stock offering period | 6 months | |||
Number of shares issued to the plan | 48,792 | 39,471 | ||
Aggregate proceeds from shares issued under the plan | $ 400 | $ 500 | ||
2015 and 2018 Stock Incentive Plans | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 42,300 | |||
Unrecognized compensation expense estimated to be recognized over period | 2 years 9 months 18 days |
Stock Incentive Plans - Schedul
Stock Incentive Plans - Schedule of Stock Options Valuation Assumptions Using a Black-Scholes Option Pricing Model (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility, minimum | 66.80% | 63.20% |
Expected volatility, maximum | 67.10% | 63.50% |
Weighted-average risk-free interest rate, minimum | 0.50% | 0.74% |
Weighted-average risk-free interest rate, maximum | 0.76% | 1.73% |
Expected term (in years) | 6 years 3 months | 6 years 3 months |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Underlying common stock fair value | $ 11.64 | $ 17 |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Underlying common stock fair value | $ 13.91 | $ 21.75 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Option Activity under Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Options, Outstanding at Beginning Balance | 5,840,824 | |
Number of Options, Granted | 1,628,650 | |
Number of Options, Exercised | (55,277) | |
Number of Options, Cancelled/Forfeited | (72,839) | |
Number of Options, Outstanding at Ending Balance | 7,341,358 | 5,840,824 |
Number of Options, Vested and Expected to vest at March 31, 2021 | 7,341,358 | |
Number of Options, Exercisable at March 31, 2021 | 3,199,381 | |
Weighted-Average Exercise Price per Share, Outstanding at Beginning Balance | $ 15.18 | |
Weighted-Average Exercise Price per Share, Granted | 13.81 | |
Weighted-Average Exercise Price per Share, Exercised | 2.43 | |
Weighted-Average Exercise Price per Share, Cancelled/Forfeited | 19.40 | |
Weighted-Average Exercise Price per Share, Outstanding at Ending Balance | 14.93 | $ 15.18 |
Weighted-Average Exercise Price per Share, Vested and Expected to vest at March 31, 2021 | 14.93 | |
Weighted-Average Exercise Price Per Share, Exercisable at March 31, 2021 | $ 12.78 | |
Weighted Average Remaining Contractual Term, Outstanding | 8 years 1 month 6 days | 7 years 9 months 18 days |
Weighted Average Remaining Contractual Term, Vested and Expected to vest at March 31, 2021 | 8 years 1 month 6 days | |
Weighted Average Remaining Contractual Term, Exercisable at March 31, 2021 | 7 years | |
Aggregate Intrinsic Value, Outstanding Ending Balance | $ 8,684 | $ 12,278 |
Aggregate Intrinsic Value, Vested and Expected to vest at March 31, 2021 | 8,684 | |
Aggregate Intrinsic Value, Exercisable at March 31, 2021 | $ 8,100 |
Stock Incentive Plans - Summa_2
Stock Incentive Plans - Summary of Unvested Common Stock from Early Exercises Subject to Repurchase (Details) | 3 Months Ended |
Mar. 31, 2021shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Unvested shares, Beginning Balance | 3,091 |
Vested | (1,011) |
Unvested shares, Ending Balance | 2,080 |
Stock Incentive Plans - Summa_3
Stock Incentive Plans - Summary of RSU Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Options, Outstanding at Beginning Balance | 5,840,824 | |
Number of Options, Granted | 1,628,650 | |
Number of Options, Outstanding at Ending Balance | 7,341,358 | |
Weighted-average grant date fair value per share for options granted | $ 8.37 | $ 12.47 |
Restricted Stock Units (RSUs) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Options, Granted | 277,400 | |
Number of Options, Outstanding at Ending Balance | 277,400 | |
Weighted-average grant date fair value per share for options granted | $ 13.85 | |
Weighted-Average Grant Date Fair Value, Outstanding | $ 13.85 |
Stock Incentive Plans - Sched_2
Stock Incentive Plans - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 3,883 | $ 2,883 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 1,857 | 1,313 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 2,026 | $ 1,570 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Anti-dilutive Effect Excluded from Computation of Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 7,620,838 | 5,453,939 |
Unvested Common Stock from Early Exercise of Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 2,080 | 6,124 |
Stock Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 7,341,358 | 5,447,815 |
Restricted Stock Units (RSUs) | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 277,400 |
Collaboration and License Agr_2
Collaboration and License Agreement - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Nov. 30, 2017 | Mar. 31, 2021 | Mar. 31, 2020 | Jan. 01, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaboration agreement revenue recognized | $ 29,305 | $ 588 | ||||
Novartis | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaboration Revenue | $ 26,900 | |||||
Novartis | Collaborative Arrangement | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Collaboration agreement revenue recognized | 28,500 | $ 600 | ||||
Deferred revenue | 2,000 | $ 28,200 | $ 30,200 | $ 200 | ||
Novartis | Collaborative Arrangement | Reimbursable Research and Development Costs | ||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||
Accounts receivable | $ 300 | $ 400 |
Collaboration and License Agr_3
Collaboration and License Agreement - Additional Information (Details1) - Novartis $ in Millions | Mar. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2017-11-01 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Remaining performance obligation, unsatisfied portion | $ 2 |
Remaining performance obligation, expected timing of satisfaction, period | 10 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-04-01 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Remaining performance obligation, unsatisfied portion | $ 2 |
Remaining performance obligation, expected timing of satisfaction, period | 10 years |
Pfizer Stock Purchase Agreeme_2
Pfizer Stock Purchase Agreement - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 09, 2020 | Nov. 09, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Collaboration agreement revenue recognized | $ 29,305 | $ 588 | ||
Pfizer Inc. | ||||
Common stock estimated fair value | $ 52,000 | |||
Stock purchase agreement remaining allocated value | 8,000 | $ 8,000 | ||
Allocated Information Committee obligation | $ 8,000 | $ 8,000 | ||
Pfizer Inc. | Collaborative Arrangement | ||||
Collaboration agreement revenue recognized | 800 | |||
Deferred revenue | $ 6,800 | |||
Private Placement | ||||
Issuance of common stock, net of discounts and issuance costs, Shares | 5,000,000 | 5,000,000 | ||
Shares issued price per share | $ 12 | $ 12 | ||
Net proceed from issuance of common stock | $ 60,000 | $ 60,000 | ||
Common stock purchase agreement condition | The shares of common stock sold to Pfizer are subject to a one-year lock-up from closing, during which time Pfizer is prohibited from selling or otherwise disposing of such shares. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Common Stock - USD ($) $ / shares in Units, $ in Millions | Apr. 06, 2021 | Apr. 12, 2019 |
Follow-On Offering | ||
Subsequent Event [Line Items] | ||
Issuance of common stock, net of discounts and issuance costs, Shares | 5,555,556 | |
Shares issued price per share | $ 22.50 | |
Net proceeds after deducting underwriting discounts and commissions and offering expenses | $ 116.9 | |
Follow-On Offering | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Issuance of common stock, net of discounts and issuance costs, Shares | 6,596,306 | |
Shares issued price per share | $ 7.58 | |
Net proceeds after deducting underwriting discounts and commissions and offering expenses | $ 49.4 | |
Common stock offering closing date | Apr. 9, 2021 | |
Underwriters Agreement | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Issuance of common stock, net of discounts and issuance costs, Shares | 989,445 | |
Shares issued price per share | $ 7.58 | |
Common stock purchase agreement condition | Under the terms of the underwriting agreement, the Company also granted the underwriter an option exercisable for 30 days to purchase up to an additional 989,445 shares of its common stock at a price of $7.58 per share. |