Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 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, $0.0001 par value per share | |
Trading Symbol | CCCC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 49,281,046 | |
Entity Central Index Key | 0001662579 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 60,971 | $ 29,754 |
Marketable securities, current | 155,598 | 246,399 |
Accounts receivable | 500 | 1,473 |
Prepaid expenses and other current assets | 6,617 | 9,931 |
Total current assets | 223,686 | 287,557 |
Marketable securities, non-current | 29,857 | 60,962 |
Property and equipment, net | 7,290 | 7,400 |
Right-of-use asset | 65,520 | 70,116 |
Restricted cash | 3,454 | 3,279 |
Other assets | 3,206 | 1,526 |
Total assets | 333,013 | 430,840 |
Current liabilities: | ||
Accounts payable | 1,276 | 1,172 |
Accrued expenses and other current liabilities | 15,484 | 19,769 |
Deferred revenue, current | 8,424 | 16,618 |
Operating lease liability, current | 5,087 | 4,700 |
Long-term debt − related party, current and net of discount | 0 | 2,287 |
Total current liabilities | 30,271 | 44,546 |
Deferred revenue, net of current | 19,623 | 16,895 |
Operating lease liability, net of current | 67,095 | 70,970 |
Long-term debt − related party, net of current and discount | 0 | 9,195 |
Total liabilities | 116,989 | 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 September 30, 2023 and December 31, 2022, respectively | 0 | 0 |
Common stock, par value of $0.0001 per share; 150,000,000 shares authorized, and 49,259,870 and 48,966,216 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 5 | 5 |
Additional paid-in capital | 710,552 | 689,256 |
Accumulated other comprehensive loss | (904) | (4,137) |
Accumulated deficit | (493,629) | (395,890) |
Total stockholders’ equity | 216,024 | 289,234 |
Total liabilities and stockholders’ equity | $ 333,013 | $ 430,840 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 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 | 49,259,870 | 48,966,216 |
Common stock, shares outstanding | 49,259,870 | 48,966,216 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue from collaboration agreements | $ 11,072,000 | $ 6,754,000 | $ 17,495,000 | $ 28,242,000 |
Operating expenses: | ||||
Research and development | 28,347,000 | 29,663,000 | 87,315,000 | 87,189,000 |
General and administrative | 10,533,000 | 9,579,000 | 31,784,000 | 32,294,000 |
Total operating expenses | 38,880,000 | 39,242,000 | 119,099,000 | 119,483,000 |
Loss from operations | (27,808,000) | (32,488,000) | (101,604,000) | (91,241,000) |
Other income (expense), net: | ||||
Interest expense and amortization of long-term debt − related party | (167,000) | (554,000) | (1,373,000) | (1,615,000) |
Loss on early extinguishment of debt | (621,000) | 0 | (621,000) | 0 |
Interest and other income, net | 2,562,000 | 1,084,000 | 6,862,000 | 1,866,000 |
Total other income (expense), net | 1,774,000 | 530,000 | 4,868,000 | 251,000 |
Loss before income taxes | (26,034,000) | (31,958,000) | (96,736,000) | (90,990,000) |
Income tax expense | (1,003,000) | 0 | (1,003,000) | 0 |
Net loss | $ (27,037,000) | $ (31,958,000) | $ (97,739,000) | $ (90,990,000) |
Net loss per share − basic (in dollars per share) | $ (0.55) | $ (0.65) | $ (1.99) | $ (1.86) |
Net loss per share − diluted (in dollars per share) | $ (0.55) | $ (0.65) | $ (1.99) | $ (1.86) |
Weighted-average number of shares used in computed net loss per share − basic | 49,212,126 | 48,921,928 | 49,103,351 | 48,827,503 |
Weighted-average number of shares used in computed net loss per share − diluted | 49,212,126 | 48,921,928 | 49,103,351 | 48,827,503 |
Other comprehensive income (loss) | ||||
Unrealized gain (loss) on marketable securities | $ 870,000 | $ (828,000) | $ 3,233,000 | $ (4,634,000) |
Comprehensive loss | $ (26,167,000) | $ (32,786,000) | $ (94,506,000) | $ (95,624,000) |
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 | (4,634) | ||||
Net loss | (90,990) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 48,951,283 | ||||
Ending balance at Sep. 30, 2022 | 318,179 | $ 5 | 682,288 | (5,409) | (358,705) |
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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 46,367 | ||||
Issuance of common stock upon exercise of stock options | 211 | 211 | |||
Issuances of common stock under 2020 ESPP (in shares) | 23,374 | ||||
Issuance of common stock under 2020 ESPP | 150 | 150 | |||
Stock-based compensation | 5,980 | 5,980 | |||
Change in unrealized loss, net on marketable securities | (828) | (828) | |||
Net loss | (31,958) | (31,958) | |||
Other (in shares) | 3,890 | ||||
Other | 31 | 31 | |||
Ending balance (in shares) at Sep. 30, 2022 | 48,951,283 | ||||
Ending balance at Sep. 30, 2022 | 318,179 | $ 5 | 682,288 | (5,409) | (358,705) |
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 | 3,233 | ||||
Net loss | (97,739) | ||||
Ending balance (in shares) at Sep. 30, 2023 | 49,259,870 | ||||
Ending balance at Sep. 30, 2023 | 216,024 | $ 5 | 710,552 | (904) | (493,629) |
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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon vesting of restricted stock units, net of shares repurchased for tax withholding (in shares) | 69,015 | ||||
Issuance of common stock upon vesting of restricted stock units, net of shares repurchased for tax withholding | (16) | (16) | |||
Issuances of common stock under 2020 ESPP (in shares) | 113,036 | ||||
Issuance of common stock under 2020 ESPP | 264 | 264 | |||
Stock-based compensation | 8,200 | 8,200 | |||
Change in unrealized loss, net on marketable securities | 870 | 870 | |||
Net loss | (27,037) | (27,037) | |||
Other (in shares) | 12,721 | ||||
Other | 36 | 36 | |||
Ending balance (in shares) at Sep. 30, 2023 | 49,259,870 | ||||
Ending balance at Sep. 30, 2023 | $ 216,024 | $ 5 | $ 710,552 | $ (904) | $ (493,629) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows used in operating activities: | ||
Net loss | $ (97,739) | $ (90,990) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Stock-based compensation expense | 20,876 | 23,097 |
Depreciation and amortization expense | 1,450 | 1,155 |
Reduction in carrying amount of right-of-use asset | 4,596 | 4,394 |
Net (accretion) amortization of (discounts) premiums on marketable securities | (2,817) | 1,118 |
Amortization of debt discount − related party | 405 | 534 |
Loss on early extinguishment of debt | 621 | 0 |
Other | 120 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 973 | 4,229 |
Prepaid expenses and other current and long-term assets | 1,404 | 217 |
Accounts payable | 104 | (2,257) |
Accrued expenses and other current liabilities | (3,866) | 2,391 |
Operating lease liability | (3,489) | 575 |
Deferred revenue | (5,467) | (21,274) |
Net cash used in operating activities | (82,829) | (76,811) |
Cash flows provided by investing activities: | ||
Proceeds from maturities of marketable securities | 219,975 | 216,382 |
Purchases of marketable securities | (92,020) | (163,238) |
Purchases of property and equipment, net | (1,551) | (4,006) |
Net cash provided by investing activities | 126,404 | 49,138 |
Cash flows (used in) provided by financing activities: | ||
Payment of long-term debt − related party | (12,500) | 0 |
Payments for repurchase of common stock for tax withholding | (110) | 0 |
Proceeds from exercise of stock options | 58 | 730 |
Other | 369 | 370 |
Net cash (used in) provided by financing activities | (12,183) | 1,100 |
Net change in cash, cash equivalents and restricted cash | 31,392 | (26,573) |
Cash, cash equivalents and restricted cash at beginning of period | 33,033 | 79,403 |
Cash, cash equivalents and restricted cash at end of period | 64,425 | 52,830 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash, cash equivalents and restricted cash at end of period | 64,425 | 52,830 |
Less: restricted cash | (3,454) | (3,279) |
Cash and cash equivalents at end of the period | 60,971 | 49,551 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes | 1,003 | 0 |
Cash paid for interest − related party | 990 | 1,203 |
Cash paid for leases | 6,421 | 5,083 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Capital expenditures in accounts payable and accrued expenses | 54 | 1,455 |
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 | 9 Months Ended |
Sep. 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 $97.7 million and $91.0 million for the nine months ended September 30, 2023 and 2022, respectively. In addition, as of September 30, 2023, the Company had an accumulated deficit of $493.6 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 $246.4 million as of September 30, 2023 will be sufficient to fund its operations into the second half of 2025. 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 | 9 Months Ended |
Sep. 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 September 30, 2023, the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2023 and 2022, the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2023 and 2022, and the condensed consolidated statements of cash flows for the nine months ended September 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 | 9 Months Ended |
Sep. 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 September 30, 2023 (in thousands): Fair Value Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 43,118 $ 43,118 $ — $ — Corporate debt securities 9,927 — 9,927 — U.S. Treasury securities 7,676 — 7,676 — Marketable securities: Corporate debt securities 126,996 — 126,996 — U.S. government debt securities 48,548 — 48,548 — U.S. Treasury securities 9,911 — 9,911 — Total cash equivalents and marketable securities $ 246,176 $ 43,118 $ 203,058 $ — There have been no transfers between fair value levels during the nine months ended September 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 | 9 Months Ended |
Sep. 30, 2023 | |
Marketable Securities [Abstract] | |
Marketable securities | Marketable securities Marketable securities as of September 30, 2023 consisted of the following (in thousands): Amortized Gross Gross Fair Marketable securities, current: Corporate debt securities $ 105,508 $ 7 $ (503) $ 105,012 U.S. government debt securities 40,898 — (223) 40,675 U.S. Treasury securities 9,914 — (3) 9,911 Marketable securities, non-current: Corporate debt securities 22,112 — (128) 21,984 U.S. government debt securities 7,927 — (54) 7,873 Total marketable securities, current and non-current $ 186,359 $ 7 $ (911) $ 185,455 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 September 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 September 30, 2023 and December 31, 2022, related to these securities. |
Property and equipment
Property and equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment Property and equipment consisted of the following (in thousands): September 30, December 31, Property and equipment: Laboratory equipment $ 8,303 $ 8,757 Leasehold improvements 4,766 4,682 Furniture and fixtures 1,181 1,181 Office equipment 621 529 Construction in progress 223 183 Computer equipment 98 191 Total property and equipment 15,192 15,523 Less: accumulated depreciation (7,902) (8,123) Total property and equipment, net $ 7,290 $ 7,400 Depreciation expense related to property and equipment is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Depreciation expense $ 447 $ 415 $ 1,450 $ 1,155 |
Leases
Leases | 9 Months Ended |
Sep. 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 nine months ended September 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 | 9 Months Ended |
Sep. 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): September 30, December 31, Accrued expenses and other current liabilities: Accrued research and development $ 7,399 $ 9,824 Accrued compensation and benefits 5,974 6,831 Other 2,111 3,114 Total accrued expenses and other current liabilities $ 15,484 $ 19,769 |
Collaboration and license agree
Collaboration and license agreements | 9 Months Ended |
Sep. 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 September 30, 2023 (in thousands): Transaction Transaction Performance obligations: Research and development targets $ 61,149 $ 17,722 Option rights 6,757 1,670 Total $ 67,906 $ 19,392 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 License and Collaboration Agreement On May 29, 2023, the Company entered into a license and collaboration 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. These payments are subject to a withholding tax by the State Taxing Authority of the People's Republic of China. 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 had not occurred as of the date of filing (November 1, 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 License 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 September 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 September 30, 2023. The Company has collected the full $10.0 million upfront payment from Betta Pharma, and during the three months ended September 30, 2023, the Company made the related withholding tax payment of $1.0 million to the Chinese tax authorities. During the three and nine months ended September 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 September 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 September 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 $3.7 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-year period ending in March 2022. In August 2021, the Company provided an extension option to Calico, which Calico exercised in September 2021, resulting in a $1.0 million extension payment to extend the research term with respect to a certain program for up to a one-year period that ended in March 2023. In addition, Calico reimbursed the Company for a number of FTEs, depending on the stage of the research, at specified market rates. As of March 13, 2023, the research term of the Calico Agreement has expired, and the Company's research activities associated with the agreement are substantially complete. 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 September 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 nine months ended September 30, 2023 and 2022 in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue from collaboration agreements: Roche Agreement $ 8,223 $ 875 $ 8,736 $ 4,548 Biogen Agreement 2,849 4,100 7,689 18,350 Calico Agreement — 1,779 1,070 5,344 Total revenue from collaboration agreements $ 11,072 $ 6,754 $ 17,495 $ 28,242 Financial information related to the collaboration and license agreements consisted of the following in the Company’s condensed consolidated balance sheet as of September 30, 2023 (in thousands): Accounts Deferred Revenue, Deferred Revenue, Deferred Revenue, Supplemental information: Roche Agreement $ 500 $ 2,464 $ 11,845 $ 14,309 Biogen Agreement — 3,738 — 3,738 Calico Agreement — — — — Betta Agreements — 2,222 7,778 10,000 Total $ 500 $ 8,424 $ 19,623 $ 28,047 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 nine months ended September 30, 2023 and 2022 are (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue recognized that was included in the contract liability at the beginning of the period $ 11,028 $ 5,517 $ 16,923 $ 24,005 Revenue recognized from performance obligations fully or partially satisfied in previous periods $ 43 $ — $ 43 $ 518 As of September 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 $33.1 million. |
Long-term debt _ related party
Long-term debt – related party | 9 Months Ended |
Sep. 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): December 31, Term Loan — related party, net of unamortized debt issuance costs and debt discount of $1,018 at December 31, 2022 $ 11,482 Less: current portion 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. The Company elected not to draw down the second tranche, which expired on June 30, 2021. 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 became effective as of July 1, 2023. In July 2023, the Company's obligation to pay a prepayment fee was extinguished based on the terms of the Credit Agreement. On July 26, 2023, the Company elected to repay the remaining outstanding principal balance on the Term Loan.In connection with the repayment of the outstanding balance on the Term Loan, the liens on substantially all of the Company's assets were released. The Company incurred a $0.6 million loss on the extinguishment of this debt. |
Stock-based compensation
Stock-based compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-based compensation Stock-based compensation expense for the three and nine months ended September 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock-based compensation expense: Research and development $ 3,906 $ 2,636 $ 9,133 $ 10,024 General and administrative 4,294 3,375 11,743 13,073 Total stock-based compensation expense $ 8,200 $ 6,011 $ 20,876 $ 23,097 Stock options During the nine months ended September 30, 2023, the Company granted stock options for the purchase of 4,427,620 shares of common stock with a weighted average exercise price of $3.89 per share and a weighted average grant-date fair value of $2.86 per shares. As of September 30, 2023, the unrecognized compensation cost related to outstanding stock options was $42.9 million, which is expected to be recognized over a weighted-average period of 2.4 years. Performance-based restricted stock units During the three and nine months ended September 30, 2023, the Company did not grant any performance-based restricted stock units, or PSUs. 135,301 PSUs vested during the nine months ended September 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 17,556 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 September 30, 2023, the unrecognized compensation cost related to outstanding PSUs with performance-based vesting criteria that are considered not probable of achievement was $6.4 million. Time-based restricted stock units During the three and nine months ended September 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 nine months ended September 30, 2023: Shares Weighted-Average Outstanding as of December 31, 2022 — $ — Issued 824,600 5.37 Vested — — Forfeited (68,640) $ 5.67 Outstanding as of September 30, 2023 755,960 $ 5.35 As of September 30, 2023, the unrecognized compensation cost related to outstanding RSUs was $3.4 million, which is expected to be recognized over a weighted-average period of 3.4 years. |
Commitment and contingencies
Commitment and contingencies | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 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 September 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 September 30, 2023 2022 Anti-dilutive common stock equivalents: Options to purchase common stock 9,868,099 6,952,795 Total anti-dilutive common stock equivalents 9,868,099 6,952,795 Basic and diluted loss per share is computed by dividing net loss by the weighted-average common shares outstanding for the three and nine months ended September 30, 2023 and 2022 (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net loss $ (27,037) $ (31,958) $ (97,739) $ (90,990) Denominator: Weighted-average number of shares used in computed net loss per share − basic and diluted 49,212,126 48,921,928 49,103,351 48,827,503 Net loss per share − basic and diluted $ (0.55) $ (0.65) $ (1.99) $ (1.86) |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxesAs of December 31, 2022, the Company recorded no income tax provision or benefit due to losses generated in the U.S. where no benefit was recorded due to the valuation allowance. The Company continues to maintain a full valuation allowance for its U.S. federal and state deferred tax assets as of September 30, 2023. The Company’s effective tax rate in the nine months ended September 30, 2023 was impacted by the Chinese withholding tax obligation related to the upfront payment received in connection with the Betta License Agreement, as described in Note 8, Collaboration and license agreement |
Subsequent events
Subsequent events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events On October 30, 2023, the Board of Directors approved the Company's decision to not advance CFT8634 beyond the Phase 1 dose escalation portion of the Phase 1/2 clinical trial. Costs associated with the decision to suspend the program are not expected to be material |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 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 September 30, 2023, the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2023 and 2022, the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2023 and 2022, and the condensed consolidated statements of cash flows for the nine months ended September 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) | 9 Months Ended |
Sep. 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 September 30, 2023 (in thousands): Fair Value Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 43,118 $ 43,118 $ — $ — Corporate debt securities 9,927 — 9,927 — U.S. Treasury securities 7,676 — 7,676 — Marketable securities: Corporate debt securities 126,996 — 126,996 — U.S. government debt securities 48,548 — 48,548 — U.S. Treasury securities 9,911 — 9,911 — Total cash equivalents and marketable securities $ 246,176 $ 43,118 $ 203,058 $ — There have been no transfers between fair value levels during the nine months ended September 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) | 9 Months Ended |
Sep. 30, 2023 | |
Marketable Securities [Abstract] | |
Summary of marketable securities | Marketable securities as of September 30, 2023 consisted of the following (in thousands): Amortized Gross Gross Fair Marketable securities, current: Corporate debt securities $ 105,508 $ 7 $ (503) $ 105,012 U.S. government debt securities 40,898 — (223) 40,675 U.S. Treasury securities 9,914 — (3) 9,911 Marketable securities, non-current: Corporate debt securities 22,112 — (128) 21,984 U.S. government debt securities 7,927 — (54) 7,873 Total marketable securities, current and non-current $ 186,359 $ 7 $ (911) $ 185,455 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) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment | Property and equipment consisted of the following (in thousands): September 30, December 31, Property and equipment: Laboratory equipment $ 8,303 $ 8,757 Leasehold improvements 4,766 4,682 Furniture and fixtures 1,181 1,181 Office equipment 621 529 Construction in progress 223 183 Computer equipment 98 191 Total property and equipment 15,192 15,523 Less: accumulated depreciation (7,902) (8,123) Total property and equipment, net $ 7,290 $ 7,400 Depreciation expense related to property and equipment is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Depreciation expense $ 447 $ 415 $ 1,450 $ 1,155 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Summary of accrued liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, Accrued expenses and other current liabilities: Accrued research and development $ 7,399 $ 9,824 Accrued compensation and benefits 5,974 6,831 Other 2,111 3,114 Total accrued expenses and other current liabilities $ 15,484 $ 19,769 |
Collaboration and license agr_2
Collaboration and license agreements (Tables) | 9 Months Ended |
Sep. 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 September 30, 2023 (in thousands): Transaction Transaction Performance obligations: Research and development targets $ 61,149 $ 17,722 Option rights 6,757 1,670 Total $ 67,906 $ 19,392 |
Schedule of revenue from collaboration agreements | Revenue from collaboration agreements for the three and nine months ended September 30, 2023 and 2022 in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue from collaboration agreements: Roche Agreement $ 8,223 $ 875 $ 8,736 $ 4,548 Biogen Agreement 2,849 4,100 7,689 18,350 Calico Agreement — 1,779 1,070 5,344 Total revenue from collaboration agreements $ 11,072 $ 6,754 $ 17,495 $ 28,242 |
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 September 30, 2023 (in thousands): Accounts Deferred Revenue, Deferred Revenue, Deferred Revenue, Supplemental information: Roche Agreement $ 500 $ 2,464 $ 11,845 $ 14,309 Biogen Agreement — 3,738 — 3,738 Calico Agreement — — — — Betta Agreements — 2,222 7,778 10,000 Total $ 500 $ 8,424 $ 19,623 $ 28,047 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 nine months ended September 30, 2023 and 2022 are (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue recognized that was included in the contract liability at the beginning of the period $ 11,028 $ 5,517 $ 16,923 $ 24,005 Revenue recognized from performance obligations fully or partially satisfied in previous periods $ 43 $ — $ 43 $ 518 |
Long-term debt _ related party
Long-term debt – related party (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt – related party consisted of the following (in thousands): December 31, Term Loan — related party, net of unamortized debt issuance costs and debt discount of $1,018 at December 31, 2022 $ 11,482 Less: current portion 2,287 Total long-term debt — related party, net of current and discount 9,195 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | Stock-based compensation expense for the three and nine months ended September 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock-based compensation expense: Research and development $ 3,906 $ 2,636 $ 9,133 $ 10,024 General and administrative 4,294 3,375 11,743 13,073 Total stock-based compensation expense $ 8,200 $ 6,011 $ 20,876 $ 23,097 |
Summary of RSU activity | The following table summarizes the Company’s RSU activity for the nine months ended September 30, 2023: Shares Weighted-Average Outstanding as of December 31, 2022 — $ — Issued 824,600 5.37 Vested — — Forfeited (68,640) $ 5.67 Outstanding as of September 30, 2023 755,960 $ 5.35 As of September 30, 2023, the unrecognized compensation cost related to outstanding RSUs was $3.4 million, which is expected to be recognized over a weighted-average period of 3.4 years. |
Loss per share (Tables)
Loss per share (Tables) | 9 Months Ended |
Sep. 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 September 30, 2023 2022 Anti-dilutive common stock equivalents: Options to purchase common stock 9,868,099 6,952,795 Total anti-dilutive common stock equivalents 9,868,099 6,952,795 |
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 nine months ended September 30, 2023 and 2022 (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net loss $ (27,037) $ (31,958) $ (97,739) $ (90,990) Denominator: Weighted-average number of shares used in computed net loss per share − basic and diluted 49,212,126 48,921,928 49,103,351 48,827,503 Net loss per share − basic and diluted $ (0.55) $ (0.65) $ (1.99) $ (1.86) |
Nature of the business and ba_2
Nature of the business and basis of presentation (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net loss | $ 97,739 | $ 90,990 | |
Accumulated deficit | 493,629 | $ 395,890 | |
Cash, cash equivalents and marketable securities | $ 246,400 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 185,455 | $ 307,361 |
Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 246,176 | 336,865 |
Recurring | Corporate debt securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 126,996 | 234,327 |
Recurring | U.S. government debt securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 48,548 | 47,641 |
Recurring | U.S. Treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 9,911 | 25,393 |
Money market funds | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 43,118 | 28,705 |
Corporate debt securities | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,927 | |
U.S. Treasury securities | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 7,676 | 799 |
Level 1 | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 43,118 | 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 | 43,118 | 28,705 |
Level 1 | Corporate debt securities | Recurring | ||
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 | 0 |
Level 2 | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total cash equivalents and marketable securities | 203,058 | 308,160 |
Level 2 | Recurring | Corporate debt securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 126,996 | 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 | 48,548 | 47,641 |
Level 2 | Recurring | U.S. Treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 9,911 | 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 | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,927 | |
Level 2 | U.S. Treasury securities | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 7,676 | 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 | Recurring | ||
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 | $ 0 |
Marketable securities - Summary
Marketable securities - Summary of marketable securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Marketable securities, current: | ||
Fair Value | $ 155,598 | $ 246,399 |
Marketable securities, non-current: | ||
Fair Value | 29,857 | 60,962 |
Amortized Cost | 186,359 | 311,498 |
Gross Unrealized Gains | 7 | 4 |
Gross Unrealized Losses | (911) | (4,141) |
Fair Value | 185,455 | 307,361 |
Corporate debt securities | ||
Marketable securities, current: | ||
Amortized Cost | 105,508 | 183,270 |
Gross Unrealized Gains | 7 | 2 |
Gross Unrealized Losses | (503) | (2,068) |
Fair Value | 105,012 | 181,204 |
Marketable securities, non-current: | ||
Amortized Cost | 22,112 | 53,592 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (128) | (471) |
Fair Value | 21,984 | 53,123 |
U.S. government debt securities | ||
Marketable securities, current: | ||
Amortized Cost | 40,898 | 40,986 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (223) | (1,184) |
Fair Value | 40,675 | 39,802 |
Marketable securities, non-current: | ||
Amortized Cost | 7,927 | 8,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (54) | (161) |
Fair Value | 7,873 | 7,839 |
U.S. Treasury securities | ||
Marketable securities, current: | ||
Amortized Cost | 9,914 | 25,650 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3) | (257) |
Fair Value | $ 9,911 | $ 25,393 |
Marketable securities - Narrati
Marketable securities - Narrative (Details) - USD ($) | Sep. 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 | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property Plant And Equipment [Line Items] | |||||
Property and equipment | $ 15,192 | $ 15,192 | $ 15,523 | ||
Less: accumulated depreciation | (7,902) | (7,902) | (8,123) | ||
Total property and equipment, net | 7,290 | 7,290 | 7,400 | ||
Depreciation and amortization expense | 447 | $ 415 | 1,450 | $ 1,155 | |
Laboratory equipment | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment | 8,303 | 8,303 | 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 | 223 | 223 | 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 | Sep. 30, 2023 | Dec. 31, 2022 |
Accrued expenses and other current liabilities: | ||
Accrued research and development | $ 7,399 | $ 9,824 |
Accrued compensation and benefits | 5,974 | 6,831 |
Other | 2,111 | 3,114 |
Total accrued expenses and other current liabilities | $ 15,484 | $ 19,769 |
Collaboration and license agr_3
Collaboration and license agreements - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 40 Months Ended | ||||||||
May 29, 2023 USD ($) $ / shares shares | Aug. 31, 2021 USD ($) | Nov. 30, 2020 USD ($) target | Feb. 29, 2020 USD ($) protein | Dec. 31, 2018 USD ($) performanceObligation target | Mar. 31, 2017 USD ($) | Sep. 30, 2023 USD ($) target performanceObligation | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) performanceObligation target | Sep. 30, 2022 USD ($) | Jun. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||
Number of performance obligations | performanceObligation | 12 | |||||||||||
Transaction price | $ 28,047,000 | $ 28,047,000 | $ 33,513,000 | |||||||||
Revenue from collaboration agreements | 11,072,000 | $ 6,754,000 | 17,495,000 | $ 28,242,000 | ||||||||
Revenue recognized that was included in the contract liability at the beginning of the period | 11,028,000 | $ 5,517,000 | 16,923,000 | $ 24,005,000 | ||||||||
Transaction price allocated to performance obligation | 67,906,000 | $ 67,906,000 | ||||||||||
Foreign Tax Authority | ||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||
Payments for tax withholdings | $ 1,000,000 | |||||||||||
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 | ||||||||||
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] | ||||||||||||
Upfront payment | $ 10,000,000 | $ 10,000,000 | ||||||||||
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 | ||||||||||
Revenue from collaboration agreements | $ 0 | $ 0 | ||||||||||
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 | ||||||||||
Research agreement, period | 54 months | |||||||||||
Nonrefundable upfront payment | $ 45,000,000 | |||||||||||
Number of performance obligation | performanceObligation | 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 | $ 3,700,000 | 3,700,000 | ||||||||||
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] | ||||||||||||
Upfront payment | $ 5,000,000 | |||||||||||
Research term | 5 years | |||||||||||
Amount payable for extend research term option | $ 1,000,000 | |||||||||||
Research extend term | 1 year | |||||||||||
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 | $ 33,100,000 | $ 33,100,000 |
Collaboration and license agr_4
Collaboration and license agreements - Summary of allocation of transaction price (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Transaction Price Allocated | $ 67,906 |
Transaction Price Unsatisfied | 19,392 |
Research and development targets | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Transaction Price Allocated | 61,149 |
Transaction Price Unsatisfied | 17,722 |
Option rights | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Transaction Price Allocated | 6,757 |
Transaction Price Unsatisfied | $ 1,670 |
Collaboration and license agr_5
Collaboration and license agreements - Schedule of revenue from collaboration agreements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenue from collaboration agreements | $ 11,072 | $ 6,754 | $ 17,495 | $ 28,242 |
Roche Agreement | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenue from collaboration agreements | 8,223 | 875 | 8,736 | 4,548 |
Biogen Agreement | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenue from collaboration agreements | 2,849 | 4,100 | 7,689 | 18,350 |
Calico Agreement | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenue from collaboration agreements | $ 0 | $ 1,779 | $ 1,070 | $ 5,344 |
Collaboration and license agr_6
Collaboration and license agreements - Schedule of financial information related to collaboration and license agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Accounts Receivable | $ 500 | $ 1,473 |
Deferred revenue, current | 8,424 | 16,618 |
Deferred revenue, net of current | 19,623 | 16,895 |
Deferred revenue, total | 28,047 | 33,513 |
Roche Agreement | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Accounts Receivable | 500 | 417 |
Deferred revenue, current | 2,464 | 4,649 |
Deferred revenue, net of current | 11,845 | 16,895 |
Deferred revenue, total | 14,309 | 21,544 |
Biogen Agreement | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Accounts Receivable | 0 | 0 |
Deferred revenue, current | 3,738 | 11,427 |
Deferred revenue, net of current | 0 | 0 |
Deferred revenue, total | 3,738 | 11,427 |
Calico Agreement | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Accounts Receivable | 0 | 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 | 2,222 | |
Deferred revenue, net of current | 7,778 | |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 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 | $ 11,028 | $ 5,517 | $ 16,923 | $ 24,005 |
Revenue recognized from performance obligations fully or partially satisfied in previous periods | $ 43 | $ 0 | $ 43 | $ 518 |
Long-term debt _ related part_2
Long-term debt – related party - Schedule of long-term debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Term Loan — related party, net of unamortized debt issuance costs and debt discount of $1,018 at December 31, 2022 | $ 11,482 | |
Long-term debt − related party, current and net of discount | $ 0 | 2,287 |
Long-term debt − related party, net of current and discount | $ 0 | 9,195 |
Unamortized debt issuance costs and debt discount | $ 1,018 |
Long-term debt _ related part_3
Long-term debt – related party - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2020 | Jun. 05, 2020 | |
Long Term Debt And Warrant Liability [Line Items] | ||||||
Loss on early extinguishment of debt | $ 621 | $ 0 | $ 621 | $ 0 | ||
Credit Agreement with Perceptive Life Sciences Master Fund LTD | Term Loan | ||||||
Long Term Debt And Warrant Liability [Line Items] | ||||||
Aggregate principal borrowing amount | $ 20,000 | |||||
Credit Agreement with Perceptive Life Sciences Master Fund LTD | Term Loan | Tranche one | ||||||
Long Term Debt And Warrant Liability [Line Items] | ||||||
Aggregate principal borrowing amount | 12,500 | |||||
Amount withdrawn | $ 12,500 | |||||
Credit Agreement with Perceptive Life Sciences Master Fund LTD | Term Loan | Tranche two | ||||||
Long Term Debt And Warrant Liability [Line Items] | ||||||
Aggregate principal borrowing amount | $ 7,500 |
Stock-based compensation - Sche
Stock-based compensation - Schedule of stock-based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 8,200 | $ 6,011 | $ 20,876 | $ 23,097 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 3,906 | 2,636 | 9,133 | 10,024 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 4,294 | $ 3,375 | $ 11,743 | $ 13,073 |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock options granted (in shares) | 4,427,620 |
Stock options granted, weighted average exercise price (in dollars per share) | $ / shares | $ 3.89 |
Stock options granted, weighted average grant date fair value (in dollars per share) | $ / shares | $ 2.86 |
Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation costs | $ | $ 42.9 |
Expected to be recognized over a weighted average period | 2 years 4 months 24 days |
Performance-based RSUs | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation costs | $ | $ 6.4 |
Units vested (in shares) | 135,301 |
Share-based compensation, number of common stock issuable per RSU vested (in shares) | 1 |
Number of shares retained to cover statutory minimum withholding taxes | 17,556 |
Time-based RSUs | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation costs | $ | $ 3.4 |
Expected to be recognized over a weighted average period | 3 years 4 months 24 days |
Units vested (in shares) | 0 |
Stock-based compensation - Summ
Stock-based compensation - Summary of RSU activity (Details) - Time-based RSUs | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Shares | |
Outstanding, beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 824,600 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (68,640) |
Outstanding, ending balance (in shares) | shares | 755,960 |
Weighted-Average Grant Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 5.37 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 5.67 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 5.35 |
Loss per share - Schedule of di
Loss per share - Schedule of diluted net loss per share attributable to common stockholders (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total anti-dilutive common stock equivalents (in shares) | 9,868,099 | 6,952,795 |
Options to purchase common stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total anti-dilutive common stock equivalents (in shares) | 9,868,099 | 6,952,795 |
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 | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||||||
Net loss | $ (27,037) | $ (35,922) | $ (34,780) | $ (31,958) | $ (27,412) | $ (31,620) | $ (97,739) | $ (90,990) |
Denominator: | ||||||||
Weighted-average number of shares used in computed net loss per share − basic | 49,212,126 | 48,921,928 | 49,103,351 | 48,827,503 | ||||
Weighted-average number of shares used in computed net loss per share − diluted | 49,212,126 | 48,921,928 | 49,103,351 | 48,827,503 | ||||
Net loss per share − basic (in dollars per share) | $ (0.55) | $ (0.65) | $ (1.99) | $ (1.86) | ||||
Net loss per share − diluted (in dollars per share) | $ (0.55) | $ (0.65) | $ (1.99) | $ (1.86) |
Income taxes (Details)
Income taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision (benefit) | $ 1,003,000 | $ 0 | $ 1,003,000 | $ 0 | $ 0 |
Effective tax rate | (1.00%) |