C4 Therapeutics (CCCC) 10-Q 8 Aug 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Jul. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity File Number	001-39567
Entity Registrant Name	C4 Therapeutics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-5617627
Entity Address, Address Line One	490 Arsenal Way
Entity Address, Address Line Two	Suite 120
Entity Address, City or Town	Watertown
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02472
City Area Code	617
Local Phone Number	231-0700
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	CCCC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		49,190,855
Entity Central Index Key	0001662579
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 44,881	$ 29,754
Marketable securities, current	222,404	246,399
Accounts receivable	1,028	1,473
Prepaid expenses and other current assets	6,074	9,931
Total current assets	274,387	287,557
Marketable securities, non-current	19,415	60,962
Property and equipment, net	7,572	7,400
Right-of-use asset	67,067	70,116
Restricted cash	3,279	3,279
Other assets	3,288	1,526
Total assets	375,008	430,840
Current liabilities:
Accounts payable	2,247	1,172
Accrued expenses and other current liabilities	16,729	19,769
Deferred revenue, current	13,971	16,618
Operating lease liability, current	4,956	4,700
Long-term debt − related party, current and net of discount	10,335	2,287
Total current liabilities	48,238	44,546
Deferred revenue, net of current	24,647	16,895
Operating lease liability, net of current	68,416	70,970
Long-term debt − related party, net of current and discount	0	9,195
Total liabilities	141,301	141,606
Commitments and contingencies (see Note 11)
Stockholders’ equity:
Preferred stock, par value of $0.0001 per share; 10,000,000 shares authorized, and no shares issued or outstanding as of June 30, 2023 and December 31, 2022, respectively	0	0
Common stock, par value of $0.0001 per share; 150,000,000 shares authorized, and 49,065,098 and 48,966,216 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	5	5
Additional paid-in capital	702,068	689,256
Accumulated other comprehensive loss	(1,774)	(4,137)
Accumulated deficit	(466,592)	(395,890)
Total stockholders’ equity	233,707	289,234
Total liabilities and stockholders’ equity	$ 375,008	$ 430,840

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 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 per share (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	49,065,098	48,966,216
Common stock, shares outstanding	49,065,098	48,966,216

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenue from collaboration agreements	$ 2,664	$ 13,834	$ 6,423	$ 21,488
Operating expenses:
Research and development	29,926	31,323	58,968	57,526
General and administrative	10,306	9,895	21,251	22,715
Total operating expenses	40,232	41,218	80,219	80,241
Loss from operations	(37,568)	(27,384)	(73,796)	(58,753)
Other income (expense), net:
Interest expense and amortization of long-term debt − related party	(600)	(534)	(1,206)	(1,061)
Interest and other income, net	2,246	506	4,300	782
Total other income (expense), net	1,646	(28)	3,094	(279)
Net loss	$ (35,922)	$ (27,412)	$ (70,702)	$ (59,032)
Net loss per share − basic (in dollars per share)	$ (0.73)	$ (0.56)	$ (1.44)	$ (1.21)
Net loss per share − diluted (in dollars per share)	$ (0.73)	$ (0.56)	$ (1.44)	$ (1.21)
Weighted-average number of shares used in computed net loss per share − basic	49,063,631	48,823,698	49,048,062	48,779,508
Weighted-average number of shares used in computed net loss per share − diluted	49,063,631	48,823,698	49,048,062	48,779,508
Other comprehensive income (loss)
Unrealized gain (loss) on marketable securities	$ 696	$ (931)	$ 2,363	$ (3,806)
Comprehensive loss	$ (35,226)	$ (28,343)	$ (68,339)	$ (62,838)
Revenue from Contract with Customer, Product and Service [Extensible Enumeration]			Collaborative Arrangement [Member]	Collaborative Arrangement [Member]

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021		48,688,875
Beginning balance at Dec. 31, 2021	$ 389,606	$ 5	$ 658,091	$ (775)	$ (267,715)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		52,707
Issuance of common stock upon exercise of stock options	260		260
Issuances of common stock under 2020 ESPP (in shares)		8,028
Issuance of common stock under 2020 ESPP	220		220
Stock-based compensation	8,879		8,879
Change in unrealized loss, net on marketable securities	(2,875)			(2,875)
Net loss	(31,620)				(31,620)
Other (in shares)		1,880
Other	59		59
Ending balance (in shares) at Mar. 31, 2022		48,751,490
Ending balance at Mar. 31, 2022	364,529	$ 5	667,509	(3,650)	(299,335)
Beginning balance (in shares) at Dec. 31, 2021		48,688,875
Beginning balance at Dec. 31, 2021	389,606	$ 5	658,091	(775)	(267,715)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in unrealized loss, net on marketable securities	(3,806)
Net loss	(59,032)
Ending balance (in shares) at Jun. 30, 2022		48,877,652
Ending balance at Jun. 30, 2022	344,593	$ 5	675,916	(4,581)	(326,747)
Beginning balance (in shares) at Mar. 31, 2022		48,751,490
Beginning balance at Mar. 31, 2022	364,529	$ 5	667,509	(3,650)	(299,335)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		124,677
Issuance of common stock upon exercise of stock options	259		259
Stock-based compensation	8,109		8,109
Change in unrealized loss, net on marketable securities	(931)			(931)
Net loss	(27,412)				(27,412)
Other (in shares)		1,485
Other	39		39
Ending balance (in shares) at Jun. 30, 2022		48,877,652
Ending balance at Jun. 30, 2022	344,593	$ 5	675,916	(4,581)	(326,747)
Beginning balance (in shares) at Dec. 31, 2022		48,966,216
Beginning balance at Dec. 31, 2022	289,234	$ 5	689,256	(4,137)	(395,890)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		11,759
Issuance of common stock upon exercise of stock options	56		56
Issuance of common stock upon vesting of restricted stock units, net of shares repurchased for tax withholding (in shares)		48,730
Issuance of common stock upon vesting of restricted stock units, net of shares repurchased for tax withholding	(94)		(94)
Issuances of common stock under 2020 ESPP (in shares)		20,748
Issuance of common stock under 2020 ESPP	104		104
Stock-based compensation	6,251		6,251
Change in unrealized loss, net on marketable securities	1,667			1,667
Net loss	(34,780)				(34,780)
Other (in shares)		5,056
Other	32		32
Ending balance (in shares) at Mar. 31, 2023		49,052,509
Ending balance at Mar. 31, 2023	262,470	$ 5	695,605	(2,470)	(430,670)
Beginning balance (in shares) at Dec. 31, 2022		48,966,216
Beginning balance at Dec. 31, 2022	289,234	$ 5	689,256	(4,137)	(395,890)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in unrealized loss, net on marketable securities	2,363
Net loss	(70,702)
Ending balance (in shares) at Jun. 30, 2023		49,065,098
Ending balance at Jun. 30, 2023	233,707	$ 5	702,068	(1,774)	(466,592)
Beginning balance (in shares) at Mar. 31, 2023		49,052,509
Beginning balance at Mar. 31, 2023	262,470	$ 5	695,605	(2,470)	(430,670)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		1,337
Issuance of common stock upon exercise of stock options	2		2
Stock-based compensation	6,425		6,425
Change in unrealized loss, net on marketable securities	696			696
Net loss	(35,922)				(35,922)
Other (in shares)		11,252
Other	36		36
Ending balance (in shares) at Jun. 30, 2023		49,065,098
Ending balance at Jun. 30, 2023	$ 233,707	$ 5	$ 702,068	$ (1,774)	$ (466,592)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows used in operating activities:
Net loss	$ (70,702)	$ (59,032)
Adjustments to reconcile net loss to cash used in operating activities:
Stock-based compensation expense	12,676	17,086
Depreciation and amortization expense	1,003	740
Reduction in carrying amount of right-of-use asset	3,048	2,890
Net amortization (accretion) of premiums (discounts) on marketable securities	(1,724)	1,082
Amortization of debt discount − related party	354	354
Other	68	0
Changes in operating assets and liabilities:
Accounts receivable	445	4,007
Prepaid expenses and other current and long-term assets	2,096	1,722
Accounts payable	941	(564)
Accrued expenses and other current liabilities	(3,133)	(87)
Operating lease liability	(2,299)	(983)
Deferred revenue	5,105	(16,006)
Net cash used in operating activities	(52,122)	(48,791)
Cash flows provided by (used in) investing activities:
Proceeds from maturities of marketable securities	129,708	138,057
Purchases of marketable securities	(60,078)	(108,132)
Purchases of property and equipment, net	(951)	(701)
Net cash provided by investing activities	68,679	29,224
Cash flows (used in) provided by financing activities:
Payment of long-term debt − related party	(1,500)	0
Payments for repurchase of common stock for tax withholding	(94)	0
Proceeds from exercise of stock options	58	519
Other	106	220
Net cash (used in) provided by financing activities	(1,430)	739
Net change in cash, cash equivalents and restricted cash	15,127	(18,828)
Cash, cash equivalents and restricted cash at beginning of period	33,033	79,403
Cash, cash equivalents and restricted cash at end of period	48,160	60,575
Reconciliation of cash, cash equivalents and restricted cash:
Cash, cash equivalents and restricted cash at end of period	48,160	60,575
Less: restricted cash	(3,279)	(3,279)
Cash and cash equivalents at end of the period	44,881	57,296
Supplemental disclosures of cash flow information:
Cash paid for interest − related party	852	828
Cash paid for leases	4,271	2,996
Supplemental disclosures of non-cash investing and financing activities:
Capital expenditures in accounts payable and accrued expenses	223	3,270
Operating lease liabilities arising from obtaining right-of-use assets	$ 0	$ 44,067

Nature of the business and basi

Nature of the business and basis of presentation	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of the business and basis of presentation	Nature of the business and basis of presentation C4 Therapeutics, Inc., or, together with its subsidiary, the Company, is a clinical-stage biopharmaceutical company dedicated to the advancement of targeted protein degradation science to develop a new generation of small-molecule medicines to transform how disease is treated. The Company leverages its proprietary technology platform, TORPEDO ( T arget OR iented P rot E in D egrader O ptimizer), to efficiently design and optimize small-molecule medicines that harness the body’s natural protein recycling system to rapidly degrade disease-causing protein, offering the potential to overcome drug resistance, drug undruggable targets, and improve patient outcomes. The Company uses its TORPEDO platform to advance multiple targeted oncology programs to the clinic while expanding its research platform to deliver the next wave of medicines for difficult-to-treat diseases. The Company was incorporated in Delaware on October 7, 2015 and has its principal office in Watertown, Massachusetts. Liquidity and capital resources Since its inception, the Company’s primary activities have been focused on research and development activities, building the Company’s intellectual property, recruiting and retaining personnel, and raising capital to support these activities. To date, the Company has funded its operations primarily with proceeds received from the sales of redeemable convertible preferred stock, public offerings of the Company’s common stock, through its collaboration agreements, and debt financing. The Company has incurred recurring losses since its inception, including net losses of $70.7 million and $59.0 million for the six months ended June 30, 2023 and 2022, respectively. In addition, as of June 30, 2023, the Company had an accumulated deficit of $466.6 million. To date, the Company has not generated any revenue from product sales as none of its product candidates have been approved for commercialization. The Company expects to continue to generate operating losses for the foreseeable future. The Company expects that its cash, cash equivalents, and marketable securities of $286.7 million as of June 30, 2023 will be sufficient to fund its operations for at least the next twelve months from the date of issuance of these condensed consolidated financial statements. Accordingly, the condensed consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. Risks and uncertainties The Company is subject to risks common to other life science companies in the early development stage including, but not limited to, uncertainty of ability to raise additional financing, product development and commercialization, development by its competitors of new technological innovations, dependence on key personnel, market acceptance of products, lack of marketing and sales history, product liability, protection of proprietary technology and intellectual property, and compliance with the Food and Drug Administration, or the FDA, and other government regulations. If the Company does not successfully advance its programs into and through human clinical trials and commercialize any of its product candidates either directly or through collaborations with other companies, the Company may be unable to produce product revenue or achieve profitability. There can be no assurance that the Company’s research and development efforts will be successful, adequate protection for the Company’s intellectual property will be obtained, any products developed will obtain necessary government regulatory approval, or any approved products will be commercially viable. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from pharmaceutical and biotechnology companies.

Summary of significant accounti

Summary of significant accounting policies	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of significant accounting policies	Summary of significant accounting policies Basis of presentation and consolidation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or U.S. GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or the SEC, regarding interim financial reporting, and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements include the accounts of C4 Therapeutics, Inc. and its subsidiary, C4T Securities Corporation. All intercompany balances and transactions have been eliminated in consolidation. Unaudited interim financial information The accompanying condensed consolidated balance sheet as of June 30, 2023, the condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2023 and 2022, the condensed consolidated statements of stockholders’ equity for the three and six months ended June 30, 2023 and 2022, and the condensed consolidated statements of cash flows for the six months ended June 30, 2023 and 2022, and the related interim disclosures are unaudited. These unaudited condensed consolidated financial statements include all adjustments necessary, consisting of only normal recurring adjustments, to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Interim period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements as of and for year ended December 31, 2022, and notes thereto, which are included in the Company’s Annual Report on Form 10-K that was filed with the SEC on February 23, 2023. Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses 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. This process may result in actual results differing materially from those estimated amounts used in the preparation of the condensed consolidated financial statements if these results differ from historical experience or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, amounts and timing of revenues recognized under the Company’s research and development collaboration arrangements, prepaid and accrued research and development expense, incremental borrowing rate used in the measurement of lease liabilities, and estimated volatility used in fair valuation of stock options. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates. Significant accounting policies

Fair value measurements

Fair value measurements	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair value measurements	Fair value measurements The following table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values as of June 30, 2023 (in thousands): Fair Value Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 39,009 $ 39,009 $ — $ — Corporate debt securities 5,622 — 5,622 — Marketable securities: Corporate debt securities 175,855 — 175,855 — U.S. government debt securities 55,083 — 55,083 — U.S. Treasury securities 10,881 — 10,881 — Total cash equivalents and marketable securities $ 286,450 $ 39,009 $ 247,441 $ — There have been no transfers between fair value levels during the six months ended June 30, 2023. The following table sets forth the fair value of the Company’s financial assets by level within the fair value hierarchy at December 31, 2022 (in thousands): Fair Value Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 28,705 $ 28,705 $ — $ — U.S. Treasury securities 799 — 799 — Marketable securities: Corporate debt securities 234,327 — 234,327 — U.S. government debt securities 47,641 — 47,641 — U.S. Treasury securities 25,393 — 25,393 — Total cash equivalents and marketable securities $ 336,865 $ 28,705 $ 308,160 $ — The Company classifies its money market funds, which are valued based on quoted market prices in active markets, with no valuation adjustment, as Level 1 assets within the fair value hierarchy. Marketable securities consist of U.S. Treasury securities, U.S. government debt securities, and corporate debt securities, all of which are classified as available-for-sale pursuant to ASC 320, Investments – Debt and Equity Securities . Marketable securities are classified within Level 2 of the fair value hierarchy because pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined using models or other valuation methodologies on a recurring basis.

Marketable securities

Marketable securities	6 Months Ended
	Jun. 30, 2023
Marketable Securities [Abstract]
Marketable securities	Marketable securities Marketable securities as of June 30, 2023 consisted of the following (in thousands): Amortized Gross Gross Fair Marketable securities, current: Corporate debt securities $ 164,192 $ 20 $ (963) $ 163,249 U.S. government debt securities 48,856 — (582) 48,274 U.S. Treasury securities 10,914 — (33) 10,881 Marketable securities, non-current: Corporate debt securities 12,722 — (116) 12,606 U.S. government debt securities 6,909 — (100) 6,809 Total marketable securities, current and non-current $ 243,593 $ 20 $ (1,794) $ 241,819 Marketable securities as of December 31, 2022 consisted of the following (in thousands): Amortized Gross Gross Fair Marketable securities, current: Corporate debt securities $ 183,270 $ 2 $ (2,068) $ 181,204 U.S. government debt securities 40,986 — (1,184) 39,802 U.S. Treasury securities 25,650 — (257) 25,393 Marketable securities, non-current: Corporate debt securities 53,592 2 (471) 53,123 U.S. government debt securities 8,000 — (161) 7,839 Total marketable securities, current and non-current $ 311,498 $ 4 $ (4,141) $ 307,361 Marketable securities classified as current have maturities of less than one year and are classified as available-for-sale. Marketable securities classified as non-current are those that: (i) have a maturity of greater than one year, and (ii) are not intended to be liquidated within the next twelve months, although these funds are available for use and, therefore, are classified as available-for-sale. No available-for-sale debt securities held as of June 30, 2023 or December 31, 2022 had remaining maturities greater than five years. Based on factors such as historical experience, market data, issuer-specific factors, and current economic conditions, the Company did not record an allowance for credit losses at June 30, 2023 and December 31, 2022, related to these securities.

Property and equipment

Property and equipment	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Property and equipment	Property and equipment Property and equipment consisted of the following (in thousands): June 30, December 31, Property and equipment: Laboratory equipment $ 8,490 $ 8,757 Leasehold improvements 4,766 4,682 Furniture and fixtures 1,181 1,181 Office equipment 621 529 Construction in progress 208 183 Computer equipment 98 191 Total property and equipment 15,364 15,523 Less: accumulated depreciation (7,792) (8,123) Total property and equipment, net $ 7,572 $ 7,400 Depreciation expense related to property and equipment is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Depreciation expense $ 458 $ 435 $ 1,003 $ 740

Leases

Leases	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	Leases The Company leases office and laboratory space under a non-cancelable operating lease. In addition, the Company subleases a portion of its office and laboratory space. There have been no material changes to the Company’s lease or sublease during the six months ended June 30, 2023. For additional information, please read Note 6, Leases , to the audited condensed consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

Accrued expenses and other curr

Accrued expenses and other current liabilities	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued expenses and other current liabilities	Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, Accrued expenses and other current liabilities: Accrued research and development $ 10,168 $ 9,824 Accrued compensation and benefits 4,235 6,831 Accrued professional fees 870 1,062 Other 1,456 2,052 Total accrued expenses and other current liabilities $ 16,729 $ 19,769

Collaboration and license agree

Collaboration and license agreements	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaboration and license agreements	Collaboration and license agreements Roche Collaboration and License Agreement In March 2016, the Company entered into a license agreement with Roche, which was amended in June 2016 and amended further in March 2017. The Company and Roche amended and restated that agreement (as so amended) in December 2018. This amended and restated agreement is referred to as the Roche Agreement. Under the Roche Agreement, the Company and Roche agreed to collaborate in the research, development, manufacture and commercialization of target-binding degrader medicines using the Company’s proprietary TORPEDO platform for the treatment of cancers and other indications. Under the Roche Agreement, the Company may elect to opt into certain co-development rights, in which case the Company will receive an increased royalty rate on future product sales from products directed to that target. In addition, if the Company opts into certain co-detailing rights, it is also entitled to reimbursement of certain commercialization costs. Upon entry into the Roche Agreement, the Company received additional upfront consideration of $40.0 million from Roche. In November 2020, the Company signed a further amendment, the effect of which was to provide that the parties would develop up to five potential targets, with Roche maintaining its option rights to license and commercialize products directed to those targets. The November 2020 amendment also provides a mechanism through which the Company and Roche can mutually agree to terminate the Roche Agreement on a target-by-target basis by the entry into a Mutual Target Termination Agreement. Upon the entry into a Mutual Target Termination Agreement, the Roche Agreement provides that all rights and responsibilities for know-how and other intellectual property in support of products that use inhibition as their mode of action revert to Roche and all rights and responsibilities for know-how and other intellectual property in support of products that use degradation as their mode of action revert to the Company. In support of this allocation of rights, Roche provides the Company, and the Company provides Roche, with a perpetual irrevocable, fully paid up, exclusive (even as to party granting the license), sublicensable (including in multiple tiers) license to the patents and know-how that are allocated to a party under a Mutual Target Termination Agreement. As the research activities with Roche have progressed and evolved over time, there are now three targets on which the parties continue to collaborate, with Roche maintaining its option rights to license and commercialize products directed to those three targets. Under the Roche Agreement, the Company receives annual research plan payments of $1.0 million for up to three years for each active research plan. For certain targets, Roche is required to pay the Company fees of $2.0 million and $3.0 million upon the progression of targets to the lead series identification achievement and good laboratory practice toxicology study phase, respectively. Finally, adjustments were made to the option exercise fees, whereby targets that have progressed through standard good laboratory practice, or GLP, toxicology studies at the time of exercise now have option exercise fees of $7.0 million to $12.0 million and those progressed through Phase 1 trials have option exercise fees of $20.0 million. For each target option exercised by Roche, the Company is eligible to receive milestone payments ranging from $260.0 million to $275.0 million upon the achievement of certain development and commercial milestones with respect to corresponding products, subject to certain reductions and exclusions based on intellectual property coverage. Roche is also required to pay the Company up to $150.0 million per target in one-time sales-based milestone payments upon the achievement of specified levels of net sales of a product directed to such target. Finally, Roche is required to pay the Company tiered royalties ranging from the mid-single digits to mid-teen percentages on net sales of products sold by Roche pursuant to its exercise of its option rights, subject to certain reductions. For sales of products for which the Company exercises its co-development right, the applicable royalty rates will be increased by a low-single digit percentage. The collaboration is managed by a joint research committee. The Company has control over the joint research committee prior to Roche’s exercise of its option rights as to a particular target, with Roche assuming control of the joint research committee thereafter. Roche may terminate the Roche Agreement on a target-by-target or product-by-product basis under several scenarios upon at least 90 days’ prior written notice. Roche Agreement accounting At commencement, the Company identified twelve performance obligations within the Roche Agreement, represented by the six potential research and development targets then included in the collaboration and the option rights held by Roche for each of those six targets. A non-exclusive royalty-free license to use the Company’s intellectual property to conduct research and development activities and participation on joint research committee were identified as promised services. However, the Company determined that the research and development license and research and development services were not distinct from one another, and participation on the joint research committee was determined to be quantitatively and qualitatively immaterial. The total transaction price of the Roche Agreement is allocated to the performance obligations based on their relative standalone selling price. The allocated transaction price is recognized as revenue from collaboration agreements in one of two ways: • Research and development targets: The Company recognizes the portion of the transaction price allocated to each of the research and development performance obligations as the research and development services are provided, using an input method, in proportion to costs incurred to date for each research development target as compared to total costs incurred and expected to be incurred in the future to satisfy the underlying obligation related to said research and development target. The transfer of control occurs over this period and, in management’s judgment, is the best measure of progress towards satisfying the performance obligation. • Option rights: The transaction price allocated to the options rights, which are considered material rights, is recognized in the period that Roche elects to exercise or elects to not exercise its option right to license and commercialize the underlying research and development target. The following table summarizes the allocation of the total transaction price to the identified performance obligations under the arrangement, and the amount of the transaction price unsatisfied as of June 30, 2023 (in thousands): Transaction Transaction Performance obligations: Research and development targets $ 61,074 $ 25,029 Option rights 6,748 2,502 Total $ 67,822 $ 27,531 Amounts due to the Company that have not yet been received are recorded as accounts receivable and amounts received that have not yet been recognized as revenue are recorded as deferred revenue on the Company’s condensed consolidated balance sheet. Betta Pharma Collaboration Research and License Agreement On May 29, 2023, the Company entered into a collaboration and license agreement, or the Betta License Agreement, with Betta Pharma to collaborate on the development and commercialization of CFT8919 in mainland China, Hong Kong SAR, Macau SAR and Taiwan, or the Licensee Territory, with the Company retaining rights to CFT8919 in the rest of the world other than the Licensee Territory, or the C4T Territory. Under the terms of the Betta License Agreement, the Company grants Betta Pharma an exclusive license under certain of the Company's intellectual property rights to develop, manufacture and commercialize CFT8919 for all uses in humans in the Licensee Territory. Betta Pharma is responsible for all development, regulatory approval, manufacturing and commercialization costs in the Licensee Territory except where Betta Pharma acts as the Company's agent in the Licensee Territory in connection with a global trial sponsored by the Company. As part of the collaboration, Betta Pharma made an upfront cash payment of $10.0 million and has agreed to make up to $357.0 million in aggregate milestone payments, plus tiered royalties on net sales of CFT8919 in the Licensee Territory. Royalties payable from Betta Pharma to the Company range from low to mid double-digit percent, subject to certain reductions under certain circumstances as described in the Betta License Agreement. In addition, as part of the collaboration, the Company has agreed to make milestone payments to Betta Pharma of up to $40.0 million following the Company's receipt of approval of a New Drug Application for CFT8919 from the FDA, with the milestone amount based on the percentage of patients in contemplated clinical trials that were enrolled by Betta Pharma and the line of therapy of the approval. In addition, the Company has agreed to pay Betta Pharma tiered royalties on net sales of CFT8919 in the C4T Territory in the low single digit percent range, subject to reductions under certain circumstances as described in the Betta License Agreement. In connection with the execution of the Betta License Agreement, the Company, Betta Pharma, and an affiliate of Betta Pharma, (Betta Investment (Hong Kong) Limited, or Betta Investment), entered into a Stock Purchase Agreement dated May 29, 2023 , or the Betta Stock Purchase Agreement, and together with the Betta License Agreement, or the Betta Agreements, pursuant to which Betta Investment agreed to purchase 5,567,928 shares of the Company's common stock, or the Shares, for an aggregate purchase price of approximately $25.0 million, or $4.49 per share, which represented a 25% premium over the 60-trading-day volume weighted average closing price as of two trading days prior to the effective date of the Betta Stock Purchase Agreement. Closing under the Betta Stock Purchase Agreement is subject to customary closing conditions, as well as continued effectiveness of the Betta License Agreement and Betta Investment’s receipt of a certificate of outbound investment by enterprises by the Ministry of Commerce of the People’s Republic of China, the National Development and Reform Commission of the People’s Republic of China and State Administration of Foreign Exchange of the People’s Republic of China or their local counterparts. The closing under the Betta Stock Purchase Agreement had not occurred as of June 30, 2023 . The collaboration is m anaged by a joint steering committee, which is composed of representatives from both Betta Pharma and the Company. Following the completion of the dose escalation phase of the Phase 1 trial of CFT8919, Betta Pharma may terminate the Betta Agreement for convenience upon at least 90 days’ prior written notice. Each party also has various termination rights under certain circumstances, including but not limited to regulatory safety stoppages, patent challenges, or a material breach by the other party, subject to certain conditions. Betta Agreements accounting The Company expects to recognize revenue under the Betta Agreements from one type of arrangement, the licensing agreement. The Betta Agreements will consist of the following activities: (1) license of intellectual property, (2) clinical manufacturing supply agreement, and (3) manufacturing technology transfer, and (4) commercial manufacturing supply agreement. As of June 30, 2023, the total transaction price is currently $10.0 million, consisting of the $10.0 million upfront cash consideration. Revenue recognition associated with the Betta Agreements is expected to commence upon the delivery of clinical supply under the clinical manufacturing supply agreement, which has not been executed as of June 30, 2023. As of June 30, 2023, the Company had collected the full $10.0 million upfront payment from Betta. During the three and six months ended June 30, 2023, no revenue has been recognized under the Betta Agreements. Amounts received or due to the Company that have not yet been recognized as revenue are recorded in deferred revenue on the Company’s condensed consolidated balance sheet. Biogen Collaboration Research and License Agreement In December 2018, the Company entered into a collaboration research and license agreement, or the Biogen Agreement, with Biogen. In February 2020, the Company and Biogen amended the Biogen Agreement to provide further clarity around Biogen’s ownership of target binding moieties (which are portions of molecules), and any related intellectual property that are directed at or bind to collaboration targets. This amendment further provided that Biogen licenses to the Company rights to use these Biogen target binding moieties and any related intellectual property as needed in order to conduct the research and development activities contemplated under the Biogen Agreement. Pursuant to the terms of the Biogen Agreement, the Company and Biogen agreed to collaborate on research activities to develop novel treatments for neurological conditions such as Alzheimer's disease and Parkinson's disease through medicines that rely on target protein degradation, or TPD, as their mode of action, all of which are created using the Company’s degrader technology. Under the terms of the Biogen Agreement, the Company was engaged to develop TPD therapeutics that utilize degrader technology for up to five target proteins over a period of 54 months, ending in June 2023. On a target-by-target basis, after successful completion of a defined target evaluation period, Biogen assumes full rights and responsibility for continued development of each target. As of June 30, 2023, the research term of the Biogen Agreement has expired, though certain research activities on the nominated targets will continue for an additional time period, as contemplated by the Biogen Agreement. In exchange for the non-exclusive research license from Biogen, as well as a $45.0 million nonrefundable upfront payment, the Company has granted a license to develop, commercialize, and manufacture products related to each of the targets (which is contingent on not cancelling the agreement), performs initial research services for drug discovery, has provided a non-exclusive research and commercial license to its intellectual property, and participates on the joint steering committee, or the Biogen JSC. The Company was also obligated to participate in early research activities for other potential targets or sandbox activities, at Biogen’s election up to a maximum amount; any work performed for these services is reimbursed by Biogen, and Biogen reimburses the Company for certain full-time equivalent, or FTE, costs. The Company’s obligations under the sandbox activities were completed as of August 31, 2021. For any target, following the achievement of development candidate criteria and prior to any IND-enabling study, Biogen will bear all costs and expenses of and will have sole discretion and decision-making authority with respect to the performance of further activities with respect to any degrader under development under the Biogen Agreement and all products that incorporate that degrader. Biogen is also required to pay the Company up to $35.0 million per target in development milestones and $26.0 million per target in one-time sales-based payments for the first product to achieve certain levels of net sales. In addition, Biogen is required to pay the Company royalties on a licensed product-by-licensed product basis, on worldwide net product sales. All milestone and sales-based payments are made after the Company has met the defined criteria in the joint research plan for that target, at which time Biogen will have control of the products related to the targets for commercialization; the receipt of these payments is contingent on the further development of products directed to the targets to commercialization by Biogen, without any additional research and development efforts from the Company. The collaboration is managed by the Biogen JSC, which Biogen has control over, and Biogen may terminate the Biogen Agreement on a target-by-target or product-by-product basis under several scenarios, upon at least 90 days’ prior written notice. Biogen Agreement accounting The Company recognizes revenue under the Biogen Agreement from two types of services: (i) research and development services, and (ii) sandbox activities, which are discovery-type research services. • Research and development services: The Company identified one performance obligation at the outset of the Biogen Agreement, representing a combined performance obligation consisting of (1) the licenses, (2) the research activities for the target evaluation phase for all five targets, and (3) the joint research plan phase for each target. The Company determined that the licenses and research activities were not distinct from one another, as the licenses have limited value without the performance of the research activities by the Company. Participation on the Biogen JSC to oversee the research activities and the technology transfer associated with the Biogen License Agreement were determined to be quantitatively and qualitatively immaterial and therefore are excluded from performance obligations. The Company recognizes the transaction price allocated to this performance obligation as the research and development services are provided, using an input method, in proportion to costs incurred to date for each research development target as compared to total costs incurred and expected to be incurred in the future to satisfy the underlying obligation related to said research and development target. The transfer of control occurs over this period and, in management’s judgment, is the best measure of progress towards satisfying the performance obligation. • Sandbox activities: Biogen had the option to fund sandbox activities in exchange for consideration at market rates, whereby the Company would perform discovery-type research at Biogen’s election to develop other potential targets that may be used as replacement targets for the initially nominated targets or two additional targets under the Biogen Agreement. Revenues earned under this option were recognized as services were performed and were not included in the transaction price allocated to the performance obligation described above. The Company recognized FTE reimbursement received for sandbox activities as revenue as incurred each quarter. As noted above, sandbox activities fully concluded on August 31, 2021. As of June 30, 2023, the total transaction price of the Biogen Agreement of $55.0 million is allocated to the research and development services performance obligation and $6.6 million of the allocated transaction price remains unsatisfied. As contemplated by the Biogen Agreement, certain research activities on the nominated targets will continue for a period of time beyond the June 2023 end of the research term. Amounts due to the Company that have not yet been received are recorded as accounts receivable and amounts received that have not yet been recognized as revenue are recorded in deferred revenue on the Company’s condensed consolidated balance sheet. Calico Collaboration and License Agreement In March 2017, the Company entered into a collaboration and license agreement, or the Calico Agreement, with Calico whereby the Company and Calico agreed to collaborate to develop and commercialize small molecule protein degraders for diseases of aging, including cancer, for a five one Under the Calico Agreement, Calico paid an upfront amount of $5.0 million and certain annual payments totaling $5.0 million through June 30, 2020 and paid target initiation fees and reimbursed the Company for a number of FTEs, depending on the stage of the research, at specified market rates. For each target, the Company is eligible to receive up to $132.0 million in potential development and commercial milestone payments, on sales of all products resulting from the collaboration efforts. Calico is also required to pay the Company up to $65.0 million in one-time sales-based payments for the first product to achieve certain levels of net sales. In addition, Calico is required to pay the Company royalties, at percentages in the mid-single digits, on a licensed product-by-licensed product basis, on worldwide net product sales. All milestone and sales-based payments are made after the Company has met the defined criteria in the joint research plan for that target, at which time Calico will have control of the products related to targets for commercialization; the receipt of these payments by the Company is contingent on the further development of the targets to commercialized products by Calico, without any additional research and development efforts required by the Company. As of June 30, 2023, the total transaction price of the Calico Agreement of $13.0 million was allocated to the research and development services performance obligation and the transaction price has been fully allocated and satisfied. Amounts due to the Company that have not yet been received are recorded as accounts receivable on the Company’s condensed consolidated balance sheet. Summary of revenue recognized from collaboration agreements Revenue from collaboration agreements for the three and six months ended June 30, 2023 and 2022 in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenue from collaboration agreements: Roche Agreement $ 160 $ 2,550 $ 513 $ 3,673 Biogen Agreement 2,504 9,534 4,840 14,250 Calico Agreement — 1,750 1,070 3,565 Total revenue from collaboration agreements $ 2,664 $ 13,834 $ 6,423 $ 21,488 Financial information related to the collaboration and license agreements consisted of the following in the Company’s condensed consolidated balance sheet as of June 30, 2023 (in thousands): Accounts Deferred Revenue, Deferred Revenue, Deferred Revenue, Supplemental information: Roche Agreement $ 500 $ 5,718 $ 16,314 $ 22,032 Biogen Agreement — 6,586 — 6,586 Calico Agreement 528 — — — Betta Agreements — 1,667 8,333 10,000 Total $ 1,028 $ 13,971 $ 24,647 $ 38,618 Financial information related to the collaboration and license agreements consisted of the following in the Company’s condensed consolidated balance sheet as of December 31, 2022 (in thousands): Accounts Deferred Revenue, Deferred Revenue, Deferred Revenue, Supplemental information: Roche Agreement $ 417 $ 4,649 $ 16,895 $ 21,544 Biogen Agreement — 11,427 — 11,427 Calico Agreement 1,056 542 — 542 Total $ 1,473 $ 16,618 $ 16,895 $ 33,513 Supplemental financial information related to the collaboration and license agreements for the three and six months ended June 30, 2023 and 2022 are (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenue recognized that was included in the contract liability at the beginning of the period $ 2,664 $ 12,122 $ 5,895 $ 18,488 Revenue recognized from performance obligations fully or partially satisfied in previous periods $ — $ 503 $ — $ 518 As of June 30, 2023, the aggregate amount of the transaction price allocated to performance obligations under the Roche Agreement, the Biogen Agreement, and the Betta Agreements that were partially unsatisfied was $44.1 million.

Long-term debt _ related party

Long-term debt – related party	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Long-term debt – related party	Long-term debt – related party Long-term debt – related party consisted of the following (in thousands): June 30, December 31, Term Loan — related party, net of unamortized debt issuance costs and debt discount of $665 and $1,018 at June 30, 2023 and December 31, 2022, respectively $ 10,335 $ 11,482 Less: current portion 10,335 2,287 Total long-term debt — related party, net of current and discount — 9,195 On June 5, 2020, contemporaneously with the completion of its Series B Financing, the Company entered into a Credit Agreement, or the Credit Agreement, with Perceptive Credit Holdings III, LP, an affiliate of Perceptive Advisors LLC, or Perceptive, that provided for an aggregate principal borrowing amount of up to $20.0 million, available in two tranches of $12.5 million and $7.5 million. Perceptive was considered a related party to the Company based on its ownership of the Company’s common stock at inception of the Credit Agreement. In June 2020, the Company drew down on the first tranche of $12.5 million, or the Term Loan, which was outstanding as of June 30, 2023. The Company elected not to draw down the second tranche, which expired on June 30, 2021. The Term Loan bore interest at a variable rate using the greater of LIBOR or 1.75%, plus 9.50%. The interest rate was 14.68% as of June 30, 2023, and the Term Loan is secured by a lien on substantially all of the Company’s assets. On May 17, 2023, the Company entered into an amendment to the Credit Agreement pursuant to which the Company and its lender agreed to replace the LIBOR benchmark with SOFR, which is regulated by the Federal Reserve Bank of New York. The Company amended its Credit Agreement due to the Financial Conduct Authority's planned phase-out of LIBOR on June 30, 2023. The use of the SOFR rate will be effective as of July 1, 2023, at which point the amended Credit Agreement will bear interest at a variable rate using SOFR plus 9.50%. The Credit Agreement requires the Company to maintain a minimum aggregate cash balance of $3.0 million in one or more controlled accounts and contains various affirmative and negative covenants that limit its ability to engage in specified types of transactions. The Company was required to make interest-only payments on the Term Loan through December 5, 2022. In 2023, the Company began making monthly principal payments equal to 2.0% of the Term Loan, plus interest. These payments will continue until June 5, 2024, or the Maturity Date, at which time the outstanding principal and unpaid interest balance is due. If the Company pays off the Term Loan prior to the Maturity Date, it will be required to pay a prepayment fee, which was $0.1 million as of June 30, 2023. The following table contains the anticipated future minimum payments on long-term debt as of June 30, 2023 for each of the years ending December 31, 2023 and 2024 (in thousands): Undiscounted, minimum long-term debt payments: 2023 (six months ending December 31) $ 1,500 2024 9,500 Total undiscounted, minimum long-term debt payments $ 11,000 In July 2023, the Company's obligation to pay a prepayment fee was extinguished based on the terms of the Credit Agreement and, as a result, the Company elected to repay the remaining outstanding principal balance on the Term Loan on July 26, 2023. In connection with the repayment of the outstanding balance on the Term Loan, the liens on substantially all of our and our subsidiaries’ assets will be released.

Stock-based compensation

Stock-based compensation	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-based compensation	Stock-based compensation Stock-based compensation expense for the three and six months ended June 30, 2023 and 2022 was classified in the Company’s condensed consolidated statement of operations and comprehensive loss as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Stock-based compensation expense: Research and development $ 2,644 $ 3,776 $ 5,227 $ 7,388 General and administrative 3,781 4,372 7,449 9,698 Total stock-based compensation expense $ 6,425 $ 8,148 $ 12,676 $ 17,086 Stock options During the six months ended June 30, 2023, the Company granted stock options for the purchase of 2,127,180 shares of common stock with a weighted average exercise price of $5.51 per share and a weighted average grant-date fair value of $4.07 per shares. As of June 30, 2023, the unrecognized compensation cost related to outstanding stock options was $48.5 million, which is expected to be recognized over a weighted-average period of 2.6 years. Performance-based restricted stock units During the three and six months ended June 30, 2023, the Company did not grant any performance-based restricted stock units, or PSUs. 60,776 PSUs vested during the six months ended June 30, 2023 upon their respective achievement of performance-based vesting criteria. Upon vesting, each PSU automatically converted into one share of the Company’s common stock. The Company indirectly repurchased 12,046 shares of its common stock through net-share settlement as consideration for employee tax withholding obligations arising upon vesting of the PSUs, which tax amounts were remitted to the applicable revenue authorities in cash. As of June 30, 2023, the unrecognized compensation cost related to outstanding PSUs with performance-based vesting criteria that are considered not probable of achievement was $8.8 million. Time-based restricted stock units During the three and six months ended June 30, 2023, the Company issued restricted stock units, or RSUs, that were subject to time-based vesting conditions to its employees . These RSUs are valued on the grant date using the grant date market price of the underlying shares. Upon vesting, each RSU automatically converts into one share of the Company’s common stock. The following table summarizes the Company’s RSU activity for the six months ended June 30, 2023: Shares Weighted-Average Outstanding as of December 31, 2022 — $ — Issued 724,500 5.68 Vested — — Forfeited (37,360) $ 5.67 Outstanding as of June 30, 2023 687,140 $ 5.68 As of June 30, 2023, the unrecognized compensation cost related to outstanding RSUs was $3.5 million, which is expected to be recognized over a weighted-average period of 3.6 years.

Commitment and contingencies

Commitment and contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies Legal proceedings The Company is not currently party to any material legal proceedings. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to such legal proceedings.

Loss per share

Loss per share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Loss per share	Loss per share For periods in which the Company reports a net loss attributable to common stockholders, potentially dilutive securities have been excluded from the computation of diluted net loss per share as their effects would be anti-dilutive. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share is the same. For purposes of the dilutive net loss per share calculation, stock options, and restricted stock units for which the performance or market vesting conditions have been met are considered to be common stock equivalents, while restricted stock units with performance or market vesting conditions that were not met as of June 30, 2023 are not considered to be common stock equivalents. The Company excluded the following potential common shares presented based on amounts outstanding at period end from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: As of June 30, 2023 2022 Anti-dilutive common stock equivalents: Options to purchase common stock 7,929,853 7,055,913 Total anti-dilutive common stock equivalents 7,929,853 7,055,913 Basic and diluted loss per share is computed by dividing net loss by the weighted-average common shares outstanding for the three and six months ended June 30, 2023 and 2022 (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net loss $ (35,922) $ (27,412) $ (70,702) $ (59,032) Denominator: Weighted-average number of shares used in computed net loss per share − basic and diluted 49,063,631 48,823,698 49,048,062 48,779,508 Net loss per share − basic and diluted $ (0.73) $ (0.56) $ (1.44) $ (1.21)

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of presentation	The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or U.S. GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or the SEC, regarding interim financial reporting, and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.
Consolidation	These condensed consolidated financial statements include the accounts of C4 Therapeutics, Inc. and its subsidiary, C4T Securities Corporation. All intercompany balances and transactions have been eliminated in consolidation.
Unaudited interim financial information	Unaudited interim financial information The accompanying condensed consolidated balance sheet as of June 30, 2023, the condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2023 and 2022, the condensed consolidated statements of stockholders’ equity for the three and six months ended June 30, 2023 and 2022, and the condensed consolidated statements of cash flows for the six months ended June 30, 2023 and 2022, and the related interim disclosures are unaudited. These unaudited condensed consolidated financial statements include all adjustments necessary, consisting of only normal recurring adjustments, to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Interim period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements as of and for year ended December 31, 2022, and notes thereto, which are included in the Company’s Annual Report on Form 10-K that was filed with the SEC on February 23, 2023.
Use of estimates	Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses 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. This process may result in actual results differing materially from those estimated amounts used in the preparation of the condensed consolidated financial statements if these results differ from historical experience or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, amounts and timing of revenues recognized under the Company’s research and development collaboration arrangements, prepaid and accrued research and development expense, incremental borrowing rate used in the measurement of lease liabilities, and estimated volatility used in fair valuation of stock options. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates.

Fair value measurements (Tables

Fair value measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of financial assets measured at fair value on a recurring basis	The following table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values as of June 30, 2023 (in thousands): Fair Value Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 39,009 $ 39,009 $ — $ — Corporate debt securities 5,622 — 5,622 — Marketable securities: Corporate debt securities 175,855 — 175,855 — U.S. government debt securities 55,083 — 55,083 — U.S. Treasury securities 10,881 — 10,881 — Total cash equivalents and marketable securities $ 286,450 $ 39,009 $ 247,441 $ — There have been no transfers between fair value levels during the six months ended June 30, 2023. The following table sets forth the fair value of the Company’s financial assets by level within the fair value hierarchy at December 31, 2022 (in thousands): Fair Value Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 28,705 $ 28,705 $ — $ — U.S. Treasury securities 799 — 799 — Marketable securities: Corporate debt securities 234,327 — 234,327 — U.S. government debt securities 47,641 — 47,641 — U.S. Treasury securities 25,393 — 25,393 — Total cash equivalents and marketable securities $ 336,865 $ 28,705 $ 308,160 $ —

Marketable securities (Tables)

Marketable securities (Tables)	6 Months Ended
	Jun. 30, 2023
Marketable Securities [Abstract]
Summary of marketable securities	Marketable securities as of June 30, 2023 consisted of the following (in thousands): Amortized Gross Gross Fair Marketable securities, current: Corporate debt securities $ 164,192 $ 20 $ (963) $ 163,249 U.S. government debt securities 48,856 — (582) 48,274 U.S. Treasury securities 10,914 — (33) 10,881 Marketable securities, non-current: Corporate debt securities 12,722 — (116) 12,606 U.S. government debt securities 6,909 — (100) 6,809 Total marketable securities, current and non-current $ 243,593 $ 20 $ (1,794) $ 241,819 Marketable securities as of December 31, 2022 consisted of the following (in thousands): Amortized Gross Gross Fair Marketable securities, current: Corporate debt securities $ 183,270 $ 2 $ (2,068) $ 181,204 U.S. government debt securities 40,986 — (1,184) 39,802 U.S. Treasury securities 25,650 — (257) 25,393 Marketable securities, non-current: Corporate debt securities 53,592 2 (471) 53,123 U.S. government debt securities 8,000 — (161) 7,839 Total marketable securities, current and non-current $ 311,498 $ 4 $ (4,141) $ 307,361

Property and equipment (Tables)

Property and equipment (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Summary of property and equipment	Property and equipment consisted of the following (in thousands): June 30, December 31, Property and equipment: Laboratory equipment $ 8,490 $ 8,757 Leasehold improvements 4,766 4,682 Furniture and fixtures 1,181 1,181 Office equipment 621 529 Construction in progress 208 183 Computer equipment 98 191 Total property and equipment 15,364 15,523 Less: accumulated depreciation (7,792) (8,123) Total property and equipment, net $ 7,572 $ 7,400 Depreciation expense related to property and equipment is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Depreciation expense $ 458 $ 435 $ 1,003 $ 740

Accrued expenses and other cu_2

Accrued expenses and other current liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Summary of accrued liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, Accrued expenses and other current liabilities: Accrued research and development $ 10,168 $ 9,824 Accrued compensation and benefits 4,235 6,831 Accrued professional fees 870 1,062 Other 1,456 2,052 Total accrued expenses and other current liabilities $ 16,729 $ 19,769

Collaboration and license agr_2

Collaboration and license agreements (Tables)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of allocation of transaction price	The following table summarizes the allocation of the total transaction price to the identified performance obligations under the arrangement, and the amount of the transaction price unsatisfied as of June 30, 2023 (in thousands): Transaction Transaction Performance obligations: Research and development targets $ 61,074 $ 25,029 Option rights 6,748 2,502 Total $ 67,822 $ 27,531
Schedule of revenue from collaboration agreements	Revenue from collaboration agreements for the three and six months ended June 30, 2023 and 2022 in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenue from collaboration agreements: Roche Agreement $ 160 $ 2,550 $ 513 $ 3,673 Biogen Agreement 2,504 9,534 4,840 14,250 Calico Agreement — 1,750 1,070 3,565 Total revenue from collaboration agreements $ 2,664 $ 13,834 $ 6,423 $ 21,488
Schedule of financial information related to collaboration and license agreements	Financial information related to the collaboration and license agreements consisted of the following in the Company’s condensed consolidated balance sheet as of June 30, 2023 (in thousands): Accounts Deferred Revenue, Deferred Revenue, Deferred Revenue, Supplemental information: Roche Agreement $ 500 $ 5,718 $ 16,314 $ 22,032 Biogen Agreement — 6,586 — 6,586 Calico Agreement 528 — — — Betta Agreements — 1,667 8,333 10,000 Total $ 1,028 $ 13,971 $ 24,647 $ 38,618 Financial information related to the collaboration and license agreements consisted of the following in the Company’s condensed consolidated balance sheet as of December 31, 2022 (in thousands): Accounts Deferred Revenue, Deferred Revenue, Deferred Revenue, Supplemental information: Roche Agreement $ 417 $ 4,649 $ 16,895 $ 21,544 Biogen Agreement — 11,427 — 11,427 Calico Agreement 1,056 542 — 542 Total $ 1,473 $ 16,618 $ 16,895 $ 33,513
Schedule of supplemental financial information related to collaboration and license agreements	Supplemental financial information related to the collaboration and license agreements for the three and six months ended June 30, 2023 and 2022 are (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenue recognized that was included in the contract liability at the beginning of the period $ 2,664 $ 12,122 $ 5,895 $ 18,488 Revenue recognized from performance obligations fully or partially satisfied in previous periods $ — $ 503 $ — $ 518

Long-term debt _ related party

Long-term debt – related party (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of long-term debt	Long-term debt – related party consisted of the following (in thousands): June 30, December 31, Term Loan — related party, net of unamortized debt issuance costs and debt discount of $665 and $1,018 at June 30, 2023 and December 31, 2022, respectively $ 10,335 $ 11,482 Less: current portion 10,335 2,287 Total long-term debt — related party, net of current and discount — 9,195
Summary of future minimum payments	The following table contains the anticipated future minimum payments on long-term debt as of June 30, 2023 for each of the years ending December 31, 2023 and 2024 (in thousands): Undiscounted, minimum long-term debt payments: 2023 (six months ending December 31) $ 1,500 2024 9,500 Total undiscounted, minimum long-term debt payments $ 11,000

Stock-based compensation (Table

Stock-based compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of stock-based compensation expense	Stock-based compensation expense for the three and six months ended June 30, 2023 and 2022 was classified in the Company’s condensed consolidated statement of operations and comprehensive loss as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Stock-based compensation expense: Research and development $ 2,644 $ 3,776 $ 5,227 $ 7,388 General and administrative 3,781 4,372 7,449 9,698 Total stock-based compensation expense $ 6,425 $ 8,148 $ 12,676 $ 17,086
Summary of RSU activity	The following table summarizes the Company’s RSU activity for the six months ended June 30, 2023: Shares Weighted-Average Outstanding as of December 31, 2022 — $ — Issued 724,500 5.68 Vested — — Forfeited (37,360) $ 5.67 Outstanding as of June 30, 2023 687,140 $ 5.68 As of June 30, 2023, the unrecognized compensation cost related to outstanding RSUs was $3.5 million, which is expected to be recognized over a weighted-average period of 3.6 years.

Loss per share (Tables)

Loss per share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of diluted net loss per share attributable to common stockholders	The Company excluded the following potential common shares presented based on amounts outstanding at period end from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: As of June 30, 2023 2022 Anti-dilutive common stock equivalents: Options to purchase common stock 7,929,853 7,055,913 Total anti-dilutive common stock equivalents 7,929,853 7,055,913
Schedule of basic and diluted loss per share	Basic and diluted loss per share is computed by dividing net loss by the weighted-average common shares outstanding for the three and six months ended June 30, 2023 and 2022 (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net loss $ (35,922) $ (27,412) $ (70,702) $ (59,032) Denominator: Weighted-average number of shares used in computed net loss per share − basic and diluted 49,063,631 48,823,698 49,048,062 48,779,508 Net loss per share − basic and diluted $ (0.73) $ (0.56) $ (1.44) $ (1.21)

Nature of the business and ba_2

Nature of the business and basis of presentation (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ 70,702	$ 59,032
Accumulated deficit	466,592		$ 395,890
Cash, cash equivalents and marketable securities	$ 286,700

Fair value measurements (Detail

Fair value measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	$ 241,819	$ 307,361
Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	286,450	336,865
Recurring | Corporate debt securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	175,855	234,327
Recurring | U.S. government debt securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	55,083	47,641
Recurring | U.S. Treasury securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	10,881	25,393
Money market funds | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	39,009	28,705
Corporate debt securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	5,622
U.S. Treasury securities | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents		799
Level 1 | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	39,009	28,705
Level 1 | Recurring | Corporate debt securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	0	0
Level 1 | Recurring | U.S. government debt securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	0	0
Level 1 | Recurring | U.S. Treasury securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	0	0
Level 1 | Money market funds | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	39,009	28,705
Level 1 | Corporate debt securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	0
Level 1 | U.S. Treasury securities | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents		0
Level 2 | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	247,441	308,160
Level 2 | Recurring | Corporate debt securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	175,855	234,327
Level 2 | Recurring | U.S. government debt securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	55,083	47,641
Level 2 | Recurring | U.S. Treasury securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	10,881	25,393
Level 2 | Money market funds | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 2 | Corporate debt securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	5,622
Level 2 | U.S. Treasury securities | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents		799
Level 3 | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total cash equivalents and marketable securities	0	0
Level 3 | Recurring | Corporate debt securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	0	0
Level 3 | Recurring | U.S. government debt securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	0	0
Level 3 | Recurring | U.S. Treasury securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	0	0
Level 3 | Money market funds | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 3 | Corporate debt securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	$ 0
Level 3 | U.S. Treasury securities | Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents		$ 0

Marketable securities - Summary

Marketable securities - Summary of marketable securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Marketable securities, current:
Fair Value	$ 222,404	$ 246,399
Marketable securities, non-current:
Fair Value	19,415	60,962
Amortized Cost	243,593	311,498
Gross Unrealized Gains	20	4
Gross Unrealized Losses	(1,794)	(4,141)
Fair Value	241,819	307,361
Corporate debt securities
Marketable securities, current:
Amortized Cost	164,192	183,270
Gross Unrealized Gains	20	2
Gross Unrealized Losses	(963)	(2,068)
Fair Value	163,249	181,204
Marketable securities, non-current:
Amortized Cost	12,722	53,592
Gross Unrealized Gains	0	2
Gross Unrealized Losses	(116)	(471)
Fair Value	12,606	53,123
U.S. government debt securities
Marketable securities, current:
Amortized Cost	48,856	40,986
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(582)	(1,184)
Fair Value	48,274	39,802
Marketable securities, non-current:
Amortized Cost	6,909	8,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(100)	(161)
Fair Value	6,809	7,839
U.S. Treasury securities
Marketable securities, current:
Amortized Cost	10,914	25,650
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(33)	(257)
Fair Value	$ 10,881	$ 25,393

Marketable securities - Narrati

Marketable securities - Narrative (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Marketable Securities [Abstract]
Allowance for credit loss	$ 0	$ 0

Property and equipment (Details

Property and equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Property Plant And Equipment [Line Items]
Property and equipment	$ 15,364		$ 15,364		$ 15,523
Less: accumulated depreciation	(7,792)		(7,792)		(8,123)
Total property and equipment, net	7,572		7,572		7,400
Depreciation and amortization expense	458	$ 435	1,003	$ 740
Laboratory equipment
Property Plant And Equipment [Line Items]
Property and equipment	8,490		8,490		8,757
Leasehold improvements
Property Plant And Equipment [Line Items]
Property and equipment	4,766		4,766		4,682
Furniture and fixtures
Property Plant And Equipment [Line Items]
Property and equipment	1,181		1,181		1,181
Construction in progress
Property Plant And Equipment [Line Items]
Property and equipment	208		208		183
Office equipment
Property Plant And Equipment [Line Items]
Property and equipment	621		621		529
Computer equipment
Property Plant And Equipment [Line Items]
Property and equipment	$ 98		$ 98		$ 191

Accrued expenses and other cu_3

Accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accrued expenses and other current liabilities:
Accrued research and development	$ 10,168	$ 9,824
Accrued compensation and benefits	4,235	6,831
Accrued professional fees	870	1,062
Other	1,456	2,052
Total accrued expenses and other current liabilities	$ 16,729	$ 19,769

Collaboration and license agr_3

Collaboration and license agreements - Narrative (Details)

1 Months Ended

3 Months Ended

6 Months Ended

40 Months Ended

Jun. 30, 2023 USD ($) performanceObligation target

Sep. 30, 2021 USD ($)

Aug. 31, 2021

Nov. 30, 2020 USD ($) target

Feb. 29, 2020 USD ($) protein

Dec. 31, 2018 USD ($) target

Mar. 31, 2017 USD ($)

Jun. 30, 2023 USD ($) performanceObligation target

Jun. 30, 2022 USD ($)

Jun. 30, 2023 USD ($) performanceObligation target

Jun. 30, 2022 USD ($)

Jun. 30, 2020 USD ($)

May 29, 2023 USD ($) $ / shares shares

Dec. 31, 2022 USD ($)

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Transaction price

$ 38,618,000

$ 38,618,000

$ 38,618,000

$ 33,513,000

Revenue from collaboration agreements

2,664,000

$ 13,834,000

6,423,000

$ 21,488,000

Revenue recognized that was included in the contract liability at the beginning of the period

2,664,000

$ 12,122,000

5,895,000

$ 18,488,000

Transaction price allocated to performance obligation

$ 67,822,000

$ 67,822,000

$ 67,822,000

Minimum

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Written notice period for termination of agreement

90 days

Restated Roche Agreement

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Additional upfront consideration received

$ 40,000,000

Number of potential targets | target

5

6

Number of targets | target

3

3

3

Annual research plan payments receivables

$ 1,000,000

Annual research plan payments periods

3 years

Restated Roche Agreement | Minimum

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Option exercise fees

$ 7,000,000

Written notice period for termination of agreement

90 days

Restated Roche Agreement | Minimum | Research, development and commercial milestones

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Amount eligible to receive

260,000,000

Restated Roche Agreement | Maximum

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Option exercise fees

12,000,000

Option exercise fees, through Phase 1 trials

20,000,000

Restated Roche Agreement | Maximum | Research, development and commercial milestones

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Amount eligible to receive

275,000,000

Restated Roche Agreement | Maximum | One-time sales-based payments

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Amount eligible to receive

150,000,000

Restated Roche Agreement | Lead Series Identification Achievement

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Upfront fees

2,000,000

Restated Roche Agreement | Good Laboratory Practice (“GLP”) Toxicology (“Tox”) Study Phase

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Upfront fees

$ 3,000,000

Betta Agreements

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Number of shares authorized to be repurchased | shares

5,567,928

Stock repurchase program, authorized amount

$ 25,000,000

Share price (in dollars per share) | $ / shares

$ 4.49

Stock Repurchase Program, Premium Percentage

25%

Transaction price

$ 10,000,000

$ 10,000,000

$ 10,000,000

Revenue from collaboration agreements

$ 0

$ 0

Upfront payment

$ 10,000,000

Betta Agreements | Research and development milestones

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Amount eligible to receive

$ 357,000,000

Betta Agreements | Drug Application Approval

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Amount eligible to receive

$ 40,000,000

Biogen License Agreement

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Number of targets | performanceObligation

5

5

5

Research agreement, period

54 months

Nonrefundable upfront payment

$ 45,000,000

Number of performance obligation | performanceObligation

1

1

1

Number of additional targets | target

2

Biogen License Agreement | Research and development services

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Revenue recognized that was included in the contract liability at the beginning of the period

$ 55,000,000

Transaction price allocated to performance obligation

$ 6,600,000

$ 6,600,000

6,600,000

Biogen License Agreement | Maximum

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Number of targeted protein degradation | protein

5

Biogen License Agreement | Maximum | Research and development milestones

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Payment received

$ 35,000,000

Biogen License Agreement | Maximum | One-time sales-based payments

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Payment received

$ 26,000,000

Calico License Agreement

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Research term

5 years

Amount payable for extend research term option

$ 1,000,000

Research extend term

1 year

Upfront payment

$ 5,000,000

Annual payments

$ 5,000,000

Calico License Agreement | Research and development services

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Revenue recognized that was included in the contract liability at the beginning of the period

13,000,000

Calico License Agreement | Maximum | One-time sales-based payments

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Payment received

$ 65,000,000

Calico License Agreement | Maximum | Potential research, development and commercial milestone payments

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Payment received

$ 132,000,000

Restated Roche Agreement And Biogen License Agreement

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Transaction price allocated to performance obligation

$ 44,100,000

$ 44,100,000

$ 44,100,000

Collaboration and license agr_4

Collaboration and license agreements - Summary of allocation of transaction price (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Transaction Price Allocated	$ 67,822
Transaction Price Unsatisfied	27,531
Research and development targets
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Transaction Price Allocated	61,074
Transaction Price Unsatisfied	25,029
Option rights
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Transaction Price Allocated	6,748
Transaction Price Unsatisfied	$ 2,502

Collaboration and license agr_5

Collaboration and license agreements - Schedule of revenue from collaboration agreements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Revenue from collaboration agreements	$ 2,664	$ 13,834	$ 6,423	$ 21,488
Roche Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Revenue from collaboration agreements	160	2,550	513	3,673
Biogen Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Revenue from collaboration agreements	2,504	9,534	4,840	14,250
Calico Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Revenue from collaboration agreements	$ 0	$ 1,750	$ 1,070	$ 3,565

Collaboration and license agr_6

Collaboration and license agreements - Schedule of financial information related to collaboration and license agreements (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Accounts Receivable	$ 1,028	$ 1,473
Deferred revenue, current	13,971	16,618
Deferred revenue, net of current	24,647	16,895
Deferred revenue, total	38,618	33,513
Roche Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Accounts Receivable	500	417
Deferred revenue, current	5,718	4,649
Deferred revenue, net of current	16,314	16,895
Deferred revenue, total	22,032	21,544
Biogen Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Accounts Receivable	0	0
Deferred revenue, current	6,586	11,427
Deferred revenue, net of current	0	0
Deferred revenue, total	6,586	11,427
Calico Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Accounts Receivable	528	1,056
Deferred revenue, current	0	542
Deferred revenue, net of current	0	0
Deferred revenue, total	0	$ 542
Betta Agreements
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Accounts Receivable	0
Deferred revenue, current	1,667
Deferred revenue, net of current	8,333
Deferred revenue, total	$ 10,000

Collaboration and license agr_7

Collaboration and license agreements - Schedule of supplemental financial information related to collaboration and license agreements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revenue recognized that was included in the contract liability at the beginning of the period	$ 2,664	$ 12,122	$ 5,895	$ 18,488
Revenue recognized from performance obligations fully or partially satisfied in previous periods	$ 0	$ 503	$ 0	$ 518

Long-term debt _ related part_2

Long-term debt – related party - Schedule of long-term debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Term Loan — related party, net of unamortized debt issuance costs and debt discount of $665 and $1,018 at June 30, 2023 and December 31, 2022, respectively	$ 10,335	$ 11,482
Long-term debt − related party, current and net of discount	10,335	2,287
Long-term debt − related party, net of current and discount	0	9,195
Unamortized debt issuance costs and debt discount	$ 665	$ 1,018

Long-term debt _ related part_3

Long-term debt – related party - Narrative (Details) - Credit Agreement with Perceptive Life Sciences Master Fund LTD - Term Loan - USD ($) $ in Millions		6 Months Ended
	Jun. 05, 2020	Jun. 30, 2023
Long Term Debt And Warrant Liability [Line Items]
Aggregate principal borrowing amount	$ 20
Floor interest rate		1.75%
Interest at variable rate		14.68%
Balance to be maintained in bank account while debt is outstanding, minimum	$ 3
Percentage of principal payments until maturity	2%
Prepayment fee		$ 0.1
LIBOR
Long Term Debt And Warrant Liability [Line Items]
Applicable margin rate		9.50%
Tranche one
Long Term Debt And Warrant Liability [Line Items]
Aggregate principal borrowing amount	$ 12.5
Amount withdrawn		$ 12.5
Tranche two
Long Term Debt And Warrant Liability [Line Items]
Aggregate principal borrowing amount	$ 7.5

Long-term debt _ related part_4

Long-term debt – related party - Summary of future minimum payments (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2023 (six months ending December 31)	$ 1,500
2024	9,500
Total undiscounted, minimum long-term debt payments	$ 11,000

Stock-based compensation - Sche

Stock-based compensation - Schedule of stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 6,425	$ 8,148	$ 12,676	$ 17,086
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	2,644	3,776	5,227	7,388
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 3,781	$ 4,372	$ 7,449	$ 9,698

Stock-based compensation - Narr

Stock-based compensation - Narrative (Details) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options granted (in shares)	2,127,180
Stock options granted, weighted average exercise price (in dollars per share) | $ / shares	$ 5.51
Stock options granted, weighted average grant date fair value (in dollars per share) | $ / shares	$ 4.07
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation costs | $	$ 48.5
Expected to be recognized over a weighted average period	2 years 7 months 6 days
Performance-based RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation costs | $	$ 8.8
Units vested (in shares)	60,776
Share-based compensation, number of common stock issuable per RSU vested (in shares)	1
Number of shares retained to cover statutory minimum withholding taxes	12,046
Time-based RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation costs | $	$ 3.5
Expected to be recognized over a weighted average period	3 years 7 months 6 days
Units vested (in shares)	0

Stock-based compensation - Summ

Stock-based compensation - Summary of RSU activity (Details) - Time-based RSUs	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Shares
Outstanding, beginning balance (in shares) | shares	0
Granted (in shares) | shares	724,500
Vested (in shares) | shares	0
Forfeited (in shares) | shares	(37,360)
Outstanding, ending balance (in shares) | shares	687,140
Weighted-Average Grant Date Fair Value
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 0
Granted (in dollars per share) | $ / shares	5.68
Vested (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	5.67
Outstanding, ending balance (in dollars per share) | $ / shares	$ 5.68

Loss per share - Schedule of di

Loss per share - Schedule of diluted net loss per share attributable to common stockholders (Details) - shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total anti-dilutive common stock equivalents (in shares)	7,929,853	7,055,913
Options to purchase common stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total anti-dilutive common stock equivalents (in shares)	7,929,853	7,055,913

Loss per share - Schedule of ba

Loss per share - Schedule of basic and diluted loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net loss	$ (35,922)	$ (34,780)	$ (27,412)	$ (31,620)	$ (70,702)	$ (59,032)
Denominator:
Weighted-average number of shares used in computed net loss per share − basic	49,063,631		48,823,698		49,048,062	48,779,508
Weighted-average number of shares used in computed net loss per share − diluted	49,063,631		48,823,698		49,048,062	48,779,508
Net loss per share − basic (in dollars per share)	$ (0.73)		$ (0.56)		$ (1.44)	$ (1.21)
Net loss per share − diluted (in dollars per share)	$ (0.73)		$ (0.56)		$ (1.44)	$ (1.21)