Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38940 | |
Entity Registrant Name | MORPHIC HOLDING, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3878772 | |
Entity Address, Address Line One | 35 Gatehouse Drive | |
Entity Address, Address Line Two | A2 | |
Entity Address, City or Town | Waltham | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02451 | |
City Area Code | 781 | |
Local Phone Number | 996-0955 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | MORF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 36,214,367 | |
Entity Central Index Key | 0001679363 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 395,985 | $ 102,047 |
Marketable securities | 52,339 | 126,217 |
Accounts receivable | 2,759 | 7,314 |
Prepaid expenses and other current assets | 5,768 | 3,857 |
Total current assets | 456,851 | 239,435 |
Property and equipment, net | 2,393 | 2,606 |
Restricted cash | 275 | 275 |
Other assets | 47 | 66 |
Total assets | 459,566 | 242,382 |
Current liabilities: | ||
Accounts payable | 2,274 | 3,845 |
Accrued expenses | 7,199 | 10,160 |
Deferred revenue, current portion | 24,422 | 25,266 |
Deferred rent, current portion | 175 | 167 |
Total current liabilities | 34,070 | 39,438 |
Long-term liabilities: | ||
Deferred revenue, net of current portion | 56,574 | 57,672 |
Deferred rent, net of current portion | 30 | 75 |
Total liabilities | 90,674 | 97,185 |
Stockholders’ Equity | ||
Preferred shares, $0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2021 and December 31, 2020 | 0 | 0 |
Common shares, $0.0001 par value, 400,000,000 shares authorized, 36,131,275 shares issued and outstanding as of March 31, 2021 and 32,037,686 shares issued and outstanding as of December 31, 2020 | 4 | 3 |
Additional paid‑in capital | 532,700 | 287,727 |
Accumulated deficit | (163,796) | (142,512) |
Accumulated other comprehensive loss | (16) | (21) |
Total stockholders’ equity | 368,892 | 145,197 |
Total liabilities and stockholders’ equity | $ 459,566 | $ 242,382 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred shares, shares authorized | 10,000,000 | 10,000,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
Common shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common shares, shares issued | 36,131,275 | 32,037,686 |
Common shares, shares outstanding | 36,131,275 | 32,037,686 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Collaboration revenue | $ 3,265 | $ 5,594 |
Operating expenses: | ||
Research and development | 18,613 | 18,960 |
General and administrative | 5,953 | 4,423 |
Total operating expenses | 24,566 | 23,383 |
Loss from operations | (21,301) | (17,789) |
Other income: | ||
Interest income, net | 29 | 886 |
Other expenses | (12) | 0 |
Total other income, net | 17 | 886 |
Loss before benefit from income taxes | (21,284) | (16,903) |
Benefit from income taxes | 0 | 157 |
Net loss | $ (21,284) | $ (16,746) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.63) | $ (0.55) |
Weighted average common shares outstanding, basic and diluted (in shares) | 33,532,405 | 30,188,575 |
Comprehensive income (loss): | ||
Net loss | $ (21,284) | $ (16,746) |
Other comprehensive (loss) income: | ||
Unrealized holding gains on marketable securities | 5 | 571 |
Total other comprehensive income | 5 | 571 |
Comprehensive loss | $ (21,279) | $ (16,175) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands | Total | At-The-Market Offering | Secondary Offering | Common Shares | Common SharesAt-The-Market Offering | Common SharesSecondary Offering | Additional Paid‑in Capital | Additional Paid‑in CapitalAt-The-Market Offering | Additional Paid‑in CapitalSecondary Offering | Accumulated Deficit | Accumulated Other Comprehensive Income |
Balance at beginning of period at Dec. 31, 2019 | $ 140,918 | $ 3 | $ 238,384 | $ (97,513) | $ 44 | ||||||
Balance at beginning of period ( in shares) at Dec. 31, 2019 | 30,110,251 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Equity-based compensation expense | 2,544 | 2,544 | |||||||||
Vesting of restricted shares (in shares) | 84,247 | ||||||||||
Issuance of common shares upon stock option exercises | 167 | 167 | |||||||||
Issuance of common shares upon stock option exercises (in shares) | 35,822 | ||||||||||
Issuance of common shares under the Employee Stock Purchase Plan | 681 | 681 | |||||||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 53,405 | ||||||||||
Unrealized holding gains on marketable securities | 571 | 571 | |||||||||
Net Loss | (16,746) | (16,746) | |||||||||
Balance at end of period at Mar. 31, 2020 | 128,135 | $ 3 | 241,776 | (114,259) | 615 | ||||||
Balance at end of period ( in shares) at Mar. 31, 2020 | 30,283,725 | ||||||||||
Balance at beginning of period at Dec. 31, 2020 | 145,197 | $ 3 | 287,727 | (142,512) | (21) | ||||||
Balance at beginning of period ( in shares) at Dec. 31, 2020 | 32,037,686 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Equity-based compensation expense | 4,442 | 4,442 | |||||||||
Vesting of restricted shares (in shares) | 46,893 | ||||||||||
Issuance of common shares upon stock option exercises | 2,657 | 2,657 | |||||||||
Issuance of common shares upon stock option exercises (in shares) | 279,431 | ||||||||||
Issuance of common shares under the Employee Stock Purchase Plan | 613 | 613 | |||||||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 26,561 | ||||||||||
Issuance of common shares/stock, net of offering/issuance costs | $ 7,231 | $ 230,031 | $ 1 | $ 7,231 | $ 230,030 | ||||||
Issuance of common shares/stock, net of offering/issuance costs (in shares) | 240,704 | 3,500,000 | |||||||||
Unrealized holding gains on marketable securities | 5 | 5 | |||||||||
Net Loss | (21,284) | (21,284) | |||||||||
Balance at end of period at Mar. 31, 2021 | $ 368,892 | $ 4 | $ 532,700 | $ (163,796) | $ (16) | ||||||
Balance at end of period ( in shares) at Mar. 31, 2021 | 36,131,275 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
At-The-Market Offering | |
Offering costs | $ 0.2 |
Secondary Offering | |
Offering costs | $ 15 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (21,284) | $ (16,746) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 255 | 283 |
Premium amortization and discount accretion on marketable securities | 84 | 139 |
Equity‑based compensation | 4,442 | 2,544 |
Loss on disposal of equipment | 3 | 0 |
Change in operating assets and liabilities: | ||
Accounts receivable | 4,555 | (218) |
Prepaid expenses and other current assets | (1,772) | 279 |
Other assets | 19 | 33 |
Accounts payable | (1,566) | (307) |
Accrued expenses | (3,147) | (1,024) |
Deferred revenue | (1,942) | (3,905) |
Deferred rent | (37) | (21) |
Net cash used in operating activities | (20,390) | (18,943) |
Cash flows from investing activities: | ||
Purchases of marketable securities | (12,200) | (9,089) |
Proceeds from maturities of marketable securities | 86,000 | 33,000 |
Purchase of property and equipment | (51) | (295) |
Net cash provided by investing activities | 73,749 | 23,616 |
Cash flows from financing activities: | ||
Proceeds from issuance of common shares under Employee Stock Purchase Plan | 613 | 681 |
Proceeds from at-the-market offering, net of issuance costs | 7,231 | 0 |
Proceeds from secondary offering, net of issuance costs | 230,217 | 0 |
Proceeds from issuance of common shares upon stock option exercises | 2,518 | 122 |
Net cash provided by financing activities | 240,579 | 803 |
Net increase in cash and cash equivalents and restricted cash | 293,938 | 5,476 |
Cash and cash equivalents and restricted cash, beginning of period | 102,322 | 101,834 |
Cash and cash equivalents and restricted cash, end of period | 396,260 | 107,310 |
Non-cash investing and financing activities: | ||
Purchases of property and equipment included in accounts payable and accrued expenses | 5 | 30 |
Amounts from exercise of stock options included in prepaid expenses and other current assets | 139 | 45 |
Unpaid offering costs included in accrued expenses | 186 | 0 |
Supplemental cash flow information: | ||
Cash paid for taxes | $ 10 | $ 480 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business and Basis of Presentation | Nature of the Business and Basis of Presentation Organization Morphic Holding, Inc. (the “Company”) was formed under the laws of the State of Delaware in August 2014. The Company is a biopharmaceutical company applying proprietary insights into integrin medicine to discover and develop first-in-class oral small molecule integrin therapeutics. Integrins are a validated target class with multiple approved drugs for the treatment of serious chronic diseases. Despite significant biopharmaceutical industry investment, no oral integrin therapies have been approved. The Company has created the Morphic integrin technology platform, or MInT Platform, by leveraging its unique understanding of integrin structure and biology, to develop a pipeline of novel product candidates designed to achieve potency, high selectivity, and the pharmaceutical properties required for oral administration. The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations and the ability to secure additional capital to fund operations. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel and infrastructure and extensive compliance-reporting capabilities. Even if the Company’s drug development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. The Company expects to continue to incur losses from operations for the foreseeable future; the Company expects that its cash and cash equivalents and marketable securities will be sufficient to fund its operating expenses and capital expenditure requirements through at least the next 12 months from the date these financial statements were issued. In July 2019, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 6,900,000 shares of its common stock at a public offering price of $15.00 per share, including 900,000 shares of common stock sold pursuant to the underwriters’ exercise of their option to purchase additional shares of common stock, for aggregate net proceeds of approximately $93.3 million. Upon the closing of the IPO, all of the outstanding shares of convertible preferred stock automatically converted into 21,010,407 shares of common stock. In July 2020, the Company entered into an Open Market Sale Agreement ("the Agreement") with Jefferies LLC (“Jefferies”) with respect to an at-the-market (“ATM”) offering program under which the Company may offer and sell, from time to time at its sole discretion, shares of our common stock, having an aggregate offering price of up to $75,000,000, referred to as Placement Shares, through Jefferies as its sales agent. The Company will pay Jefferies a commission equal to 3.0% of the gross sales proceeds of any Placement Shares sold through Jefferies under the Agreement, and also has provided Jefferies with customary indemnification and contribution rights. During the three months ended March 31, 2021, the Company issued and sold 240,704 shares for net proceeds of $7.2 million after deducting offering commissions and offering expenses paid by the Company. As of March 31, 2021, the Company had approximately $32.4 million of common stock remaining available for sale under the ATM. In March 2021, the Company completed an underwritten follow-on public offering of 3,500,000 shares of its common stock at a price to the public of $70.00 per share. Gross proceeds from the secondary offering were approximately $245.0 million, before deducting underwriting discounts, commissions and other offering expenses of approximately $15.0 million, paid by the Company, resulting in net proceeds of approximately $230.0 million. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The unaudited interim condensed consolidated financial statements include the accounts of Morphic Holding, Inc. and its wholly owned subsidiaries, Morphic Therapeutic, Inc. and a Massachusetts Security Corporation, organized in December 2019 to take advantage of the favorable tax treatment of income earned on securities held within such entity. All intercompany balances have been eliminated in consolidation. The accompanying condensed consolidated financial statements are unaudited and have been prepared by the Company in accordance with accounting principles generally accepted in the United States (“GAAP”) as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). Certain information and footnote disclosures normally included in the Company’s annual financial statements have been condensed or omitted. These unaudited interim condensed consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments necessary for a fair presentation of the Company’s financial position and results of operations for the interim periods ended March 31, 2021 and 2020. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2020, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 1, 2021. Use of Estimates and Summary of Significant Accounting Policies The preparation of financial statements in accordance with GAAP requires management to make estimates and judgments that may affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial statements and the related reporting of revenues and expenses during the reporting period. Significant estimates of accounting reflected in these consolidated financial statements include, but are not limited to, estimates related to revenue recognition, accrued research and development expenses, the valuation of equity-based compensation, and income taxes. Actual results could differ from those estimates. Significant accounting policies The significant accounting policies used in preparation of these condensed consolidated financial statements as of and for the three months ended March 31, 2021 are consistent with those discussed in Note 2 to the consolidated financial statements in the Company’s 2020 Annual Report on Form 10-K, except as described below. Recently Issued Accounting Pronouncements not yet Adopted As an “emerging growth company,” or EGC, under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, the Company has made an election under Section 107 of the JOBS Act to take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act, for complying with new or revised accounting standards. Thus, the Company follows requirements applicable to the private companies for adopting new and updated accounting standards. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326) (“ASU 2016-13”), which requires consideration of a broader range of reasonable and supportable information in developing credit loss estimates. In April 2019, the FASB issued ASU 2019-04, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”). Certain provisions of ASU 2019-04 amend the guidance of ASU 2016-13, are applicable to the Company’s investments portfolio, and allow the Company to make certain accounting policy elections regarding establishing allowance for credit losses for the accrued interest receivable and the corresponding disclosures. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses (“ASU 2019-11”), which clarifies certain areas of the guidance to ensure all companies and organizations can make a smoother transition to the standard. If the Company maintains its EGC status, the guidance is effective for the Company for the fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and will be adopted using the modified retrospective approach. The Company is currently evaluating the impact of ASU 2019-11 and the related ASU 2019-04 and ASU 2016-13 on its consolidated financial statements, including the impact of the available accounting policy elections. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), with guidance regarding the accounting for and disclosure of leases. In general, for lease arrangements exceeding a twelve-month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. This update also requires lessees and lessors to disclose key information about their leasing transactions. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements, intended to ease the implementation of the new lease standard for financial statement preparers by, among other things, allowing for an additional transition method. In lieu of presenting transition requirements to comparative periods, as previously required, an entity may now elect to show a cumulative effect adjustment on the date of adoption without the requirement to recast prior period financial statements or disclosures presented in accordance with ASU 2016-02. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | Fair Value of Financial Assets and Liabilities The Company has certain financial assets and liabilities that are recorded at fair value which have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements: • Level 1 — Quoted market prices in active markets for identical assets or liabilities. • Level 2 — Inputs other than Level 1 inputs that are either directly or indirectly observable, such as quoted market prices, interest rates and yield curves. • Level 3 — Unobservable inputs developed using estimates of assumptions developed by the Company, which reflect those that a market participant would use. To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair values requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized as Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The tables below present information about the Company’s financial assets that are measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 (in thousands) and indicate the level within the fair value hierarchy where each measurement is classified. Fair Value Measurements at March 31, 2021 Total Level 1 Level 2 Level 3 Assets: Money market funds, included in cash and cash equivalents $ 395,704 $ 395,704 $ — $ — U.S. Treasury obligations 52,339 — 52,339 — Total assets $ 448,043 $ 395,704 $ 52,339 $ — Fair Value Measurements at December 31, 2020 Total Level 1 Level 2 Level 3 Assets: Money market funds, included in cash and cash equivalents $ 101,760 $ 101,760 $ — $ — U.S. Treasury obligations 126,217 — 126,217 — Total assets $ 227,977 $ 101,760 $ 126,217 $ — The money market funds included in the table above invest in U.S. government securities that are valued using quoted market prices. Accordingly, money market funds are categorized as Level 1 as of March 31, 2021 and December 31, 2020. Marketable securities included in the table above consist exclusively of U.S. Treasury securities that are valued using prices provided by third party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk. Accordingly, these securities are categorized as Level 2 as of March 31, 2021 and December 31, 2020. During the three months ended March 31, 2021, no assets were transferred between the fair value hierarchy categories. The Company had no liabilities measured at fair value on a recurring basis at March 31, 2021 or December 31, 2020. |
Marketable securities
Marketable securities | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable securities | Marketable securities The following tables summarize the Company’s investments in marketable securities classified as available for sale (in thousands): As of March 31, 2021 Maturity Amortized Gross Gross Aggregate U.S. Treasury securities less than 1 year $ 52,329 $ 10 $ — $ 52,339 As of December 31, 2020 Maturity Amortized Gross Gross Aggregate U.S. Treasury securities less than 1 year $ 126,212 $ 7 $ (2) $ 126,217 |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 3 Months Ended |
Mar. 31, 2021 | |
Restricted Cash [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Restricted cash consists of a letter of credit in the amount of $275,000 issued to the landlord of the Company’s facility lease. The terms of the letter of credit extend beyond one year. The following table reconciles cash and cash equivalents and restricted cash per the balance sheet to the statements of cash flows: March 31, December 31, March 31, December 31, 2021 2020 2020 2019 Cash and cash equivalents $ 395,985 $ 102,047 $ 107,035 $ 101,559 Restricted cash 275 275 275 275 Total cash, cash equivalents, and restricted cash $ 396,260 $ 102,322 $ 107,310 $ 101,834 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses At March 31, 2021 and December 31, 2020 accrued expenses consist of the following (in thousands): March 31, December 31, 2021 2020 Payroll and related expenses $ 2,186 $ 5,148 Research and development activities 3,762 4,335 Other expenses 1,252 677 $ 7,200 $ 10,160 |
Equity Based Compensation
Equity Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Based Compensation | Equity Based Compensation In connection with the Company’s initial public offering in July 2019, the Company adopted the 2019 Equity Incentive Plan (the “2019 Plan”) in June 2019, which replaced the 2018 Stock Incentive Plan. The 2019 Plan provides for the grant of stock options, restricted stock awards, stock bonus awards, cash awards, stock appreciation right, RSUs, and performance awards to directors, officers and employees of the Company, as well as consultants and advisors of the Company. As a result of the automatic increase provision of the 2019 Plan, the number of shares of common stock available for issuance under the 2019 Plan increased by 1.3 million shares on January 2021. As of March 31, 2021, there were a total of 1.4 million shares available for future award grants under the 2019 Plan. The Company recognized equity-based compensation expense in the condensed consolidated statements of operations and comprehensive loss, by award type, as follows (in thousands): Three Months Ended March 31, 2021 2020 Stock option $ 4,139 $ 1,872 Restricted common stock 81 552 Restricted stock units 63 10 ESPP 159 110 Total $ 4,442 $ 2,544 The following table summarizes the allocation of equity-based compensation expense in the condensed consolidated statements of operations and comprehensive loss, by expense category: Three Months Ended March 31, 2021 2020 Research and development expense $ 2,266 $ 1,792 General and administrative expense 2,176 752 Total $ 4,442 $ 2,544 Restricted Common Stock The following table summarizes the restricted stock awards activity during the three months ended March 31, 2021: Number of Shares Weighted Unvested restricted common stock as of December 31, 2020 100,989 $ 4.32 Granted — — Vested (25,150) 4.32 Forfeited (2,479) 4.32 Unvested restricted common stock as of March 31, 2021 73,360 $ 4.32 As of March 31, 2021, the Company had unrecognized equity-based compensation expense of $0.2 million related to the restricted stock awards, which is expected to be recognized over a weighted average period of 0.7 years. Restricted Stock Units The following table summarizes the restricted stock units activity during the three months ended March 31, 2021: Number of Shares Weighted Unvested restricted common stock as of December 31, 2020 66,216 $ 10.84 Granted — — Vested (21,743) 10.84 Forfeited — — Unvested restricted common stock as of March 31, 2021 44,473 $ 10.84 As of March 31, 2021, the Company had unrecognized equity-based compensation expense of $0.5 million related to the restricted stock units, which is expected to be recognized over a weighted average period of 2.4 years. Stock Options The following table summarizes the Company’s stock option activity during the three months ended March 31, 2021: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding as of December 31, 2020 4,352,095 $ 12.22 8.68 Granted 1,289,733 30.51 — — Exercised (279,431) 9.51 — — Forfeited (17,117) 14.69 — — Outstanding as of March 31, 2021 5,345,280 $ 16.77 8.76 $ 248,648 Options exercisable as of March 31, 2021 1,242,776 $ 10.58 8.21 $ 65,490 As of March 31, 2021, the Company had unrecognized equity-based compensation expense of $50.8 million related to stock options issued to employees and non-employees, which is expected to be recognized over a weighted average period of 2.7 years. ESPP In 2019, the Company adopted the 2019 Employee Stock Purchase Plan (“ESPP”), which became effective on June 26, 2019. The Company initially reserved 300,000 shares of common stock for sale under the ESPP. As a result of the automatic increase provision of the ESPP, the number of shares of common stock available for issuance under the ESPP increased by 0.3 million shares on January 1, 2021. The ESPP is a qualified, compensatory plan under Section 423 of the Internal Revenue Code and offers substantially all employees opportunity to purchase up to $25,000 of common stock per year at 15% discount to the lower of the beginning of the offering period price or the end of the offering period price. Compensation expense for discounted purchases under the ESPP is measured using the Black-Scholes model to compute the fair value of the lookback provision plus the purchase discount and is recognized as compensation expense over the course of the offering period. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Deferred tax assets and deferred tax liabilities are recognized based on temporary differences between the financial reporting and tax basis of assets and liabilities using statutory rates. A valuation allowance is recorded against deferred tax assets if it is more likely than not that some or all of the deferred tax assets will not be realized. The Company’s ability to use its operating loss carryforwards and tax credits to offset future taxable income is subject to restrictions under Sections 382 and 383 of the United States Internal Revenue Code, or the Internal Revenue Code. Net operating loss and tax credit carryforwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant stockholders over a three-year period in excess of 50 percent, as defined under Sections 382 and 383 of the Internal Revenue Code. Such changes would limit the Company’s use of its operating loss carryforwards and tax credits. In such a situation, the Company may be required to pay income taxes, even though significant operating loss carryforwards and tax credits exist. On March 27, 2020, the Coronavirus Aid Relief and Economic Security (“CARES”) Act was signed into law. The CARES Act included several income tax changes, included allowing for the carryback of net operating losses, expanding interest deductibility, and allowing for accelerated expensing of certain capital improvements. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees and Indemnifications The Company entered, and intends to continue to enter, into separate indemnification agreements with directors, officers, and certain of key employees, in addition to the indemnification provided for in the restated certificate of incorporation and restated bylaws. These agreements, among other things, require the Company to indemnify directors, officers, and key employees for certain expenses, including attorneys' fees, judgments, penalties, fines, and settlement amounts actually incurred by these individuals in any action or proceeding arising out of their service to the Company or any of its subsidiaries or any other company or enterprise to which these individuals provide services at the Company’s request. Subject to certain limitations, the indemnification agreements also require the Company to advance expenses incurred by directors, officers, and key employees for the defense of any action for which indemnification is required or permitted. The Company has standard indemnification arrangements in its leases for laboratory and office space that require it to indemnify the landlord against any liability for injury, loss, accident, or damage from any claims, actions, proceedings, or costs resulting from certain acts, breaches, violations, or non-performance under the Company’s lease. Through March 31, 2021, the Company had not experienced any losses related to these indemnification obligations, and no material claims were outstanding. The Company does not expect significant claims related to these indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible, and no related reserves were established. During the three months ended March 31, 2021, there were no material changes to our contractual obligations and commitments previously disclosed in Note 10 to the consolidated financial statements appearing in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. Legal Proceedings The Company is not currently a party to any material legal proceedings. |
Option and License Agreements
Option and License Agreements | 3 Months Ended |
Mar. 31, 2021 | |
Option and License Agreements | |
Option and License Agreements | Option and License Agreements Detailed description of contractual terms and the Company’s accounting for agreements described below were included in the Company’s audited financial statements and notes in the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2021. AbbVie Agreement During the three months ended March 31, 2021, the Company continued to perform under its agreement with AbbVie, (the “AbbVie Agreement”) pursuant to which the Company recognizes revenues in proportion to the costs incurred. As a result, the Company recognizes as revenue the $100.0 million up-front payment as research and development services are performed, which is expected to be completed through 2024. During the three months ended March 31, 2021, the Company incurred $1.3 million in research and development costs and recognized revenue of $1.5 million for the research services provided under the AbbVie Agreement During the year ended December 31, 2020, pursuant to the AbbVie Agreement, on August 25, 2020, AbbVie exercised its option to license and control further development and commercialization of Morphic’s αvβ6–specific integrin inhibitors (including MORF-720 and MORF-627) for the treatment of fibrotic diseases including idiopathic pulmonary fibrosis (IPF) and additional indications. In connection with the exercise of the option, AbbVie paid the Company $20.0 million, which was recognized as revenue during the year ended December 31, 2020.The Company is eligible to receive potential milestones and royalties on future development and commercialization of either MORF-720 and MORF-627, as further described in the Company’s audited financial statements and notes in the Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2021, all of which have been fully constrained as of March 31, 2021. As of March 31, 2021, the Company had $70.2 million of deferred revenue, which is classified as either current or long-term deferred revenue in the accompanying condensed consolidated balance sheets based on the period over which the revenue is expected to be recognized. This deferred revenue balance represents the aggregate amount of the transaction price allocated to the performance obligations that are partially unsatisfied as of March 31, 2021. As the Company progresses towards satisfaction of performance obligations under the AbbVie Agreement, the estimated costs associated with the remaining effort required to complete the performance obligations may change, which may materially impact revenue recognition. The Company regularly evaluates and, when necessary, updates the costs associated with the remaining effort pursuant to each performance obligation under the AbbVie Agreement. Accordingly, revenue may fluctuate from period to period due to revisions to estimated costs, resulting in a change in the measure of progress for a performance obligation. Such changes can also impact the allocation of deferred revenue between current and long term based on changes in expected timing of the satisfaction of performance obligations. Janssen Agreement During the three months ended March 31, 2021, the Company continued to perform under its agreement with Janssen, pursuant to which the Company recognizes revenue in proportion to the costs incurred to date. Under the terms of the agreement, Janssen paid the Company an upfront fee of $10.0 million for the first two research programs in 2019 and in December 2020 the Company reached an agreement with Janssen to commence work on the third research program, and Janssen paid to the Company $5.0 million for the third research program commencement fee in February 2021. The Company expects to provide research services and recognize revenue through 2024. During the three months ended March 31, 2021, the Company incurred $1.3 million in research and development costs and recognized revenue of $1.8 million related to research services, including approximately $0.5 million related to the upfront and commencement fees received in prior periods. The Company had $2.8 million and $6.4 million due from Janssen included in accounts receivable on the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021, $10.8 million of deferred revenue is classified as either current or long-term deferred revenue in the accompanying condensed consolidated balance sheets based on the period over which the revenue is expected to be recognized. This deferred revenue balance represents the portion of the upfront payment received allocated to the performance obligations that are partially unsatisfied as of March 31, 2021. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share Basic net income (loss) per share is calculated by dividing net income (loss) allocable to common stockholders by the weighted-average common shares outstanding during the period, without consideration of common stock equivalents. For periods with net income, diluted net income per share is calculated by adjusting the weighted-average shares outstanding for the dilutive effect of common stock equivalents, including stock options and restricted common stock and stock units outstanding for the period as determined using the treasury stock method. For purposes of the diluted net loss per share calculation, common stock equivalents are excluded from the calculation if their effect would be anti-dilutive. As such, basic and diluted net loss per share applicable to common stockholders are the same for periods with a net loss. The following tables illustrate the determination of basic and diluted loss per share for each period presented (in thousands, except share data): Three Months Ended March 31, 2021 2020 Net loss $ (21,284) $ (16,746) Weighted average common shares outstanding, basic 33,532,405 30,188,575 Net loss per share, basic $ (0.63) $ (0.55) The following table sets forth the outstanding common stock equivalents, presented based on amounts outstanding at each period end, that have been excluded from the calculation of diluted net loss per share for the periods indicated because their inclusion would have been anti-dilutive (in common stock equivalent shares, as applicable): Three Months Ended March 31, 2021 2020 Restricted common stock 73,360 282,829 Restricted stock units 44,473 66,216 Stock options 5,345,280 4,355,549 5,463,113 4,704,594 In addition to the securities listed in the table above, as of March 31, 2021 the Company had reserved 810,624 shares of common stock for sale under the ESPP, which, if issued, would be anti-dilutive if included in calculation of diluted net loss per share for the three months ended March 31, 2021. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates and Summary of Significant Accounting Policies | Use of Estimates and Summary of Significant Accounting Policies The preparation of financial statements in accordance with GAAP requires management to make estimates and judgments that may affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial statements and the related reporting of revenues and expenses during the reporting period. Significant estimates of accounting reflected in these consolidated financial statements include, but are not limited to, estimates related to revenue recognition, accrued research and development expenses, the valuation of equity-based compensation, and income taxes. Actual results could differ from those estimates. |
Recently Issued Accounting Pronouncements not yet Adopted | Recently Issued Accounting Pronouncements not yet Adopted As an “emerging growth company,” or EGC, under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, the Company has made an election under Section 107 of the JOBS Act to take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act, for complying with new or revised accounting standards. Thus, the Company follows requirements applicable to the private companies for adopting new and updated accounting standards. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326) (“ASU 2016-13”), which requires consideration of a broader range of reasonable and supportable information in developing credit loss estimates. In April 2019, the FASB issued ASU 2019-04, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”). Certain provisions of ASU 2019-04 amend the guidance of ASU 2016-13, are applicable to the Company’s investments portfolio, and allow the Company to make certain accounting policy elections regarding establishing allowance for credit losses for the accrued interest receivable and the corresponding disclosures. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses (“ASU 2019-11”), which clarifies certain areas of the guidance to ensure all companies and organizations can make a smoother transition to the standard. If the Company maintains its EGC status, the guidance is effective for the Company for the fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and will be adopted using the modified retrospective approach. The Company is currently evaluating the impact of ASU 2019-11 and the related ASU 2019-04 and ASU 2016-13 on its consolidated financial statements, including the impact of the available accounting policy elections. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), with guidance regarding the accounting for and disclosure of leases. In general, for lease arrangements exceeding a twelve-month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. This update also requires lessees and lessors to disclose key information about their leasing transactions. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements, intended to ease the implementation of the new lease standard for financial statement preparers by, among other things, allowing for an additional transition method. In lieu of presenting transition requirements to comparative periods, as previously required, an entity may now elect to show a cumulative effect adjustment on the date of adoption without the requirement to recast prior period financial statements or disclosures presented in accordance with ASU 2016-02. |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of financial assets measured at fair value on recurring basis | The tables below present information about the Company’s financial assets that are measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 (in thousands) and indicate the level within the fair value hierarchy where each measurement is classified. Fair Value Measurements at March 31, 2021 Total Level 1 Level 2 Level 3 Assets: Money market funds, included in cash and cash equivalents $ 395,704 $ 395,704 $ — $ — U.S. Treasury obligations 52,339 — 52,339 — Total assets $ 448,043 $ 395,704 $ 52,339 $ — Fair Value Measurements at December 31, 2020 Total Level 1 Level 2 Level 3 Assets: Money market funds, included in cash and cash equivalents $ 101,760 $ 101,760 $ — $ — U.S. Treasury obligations 126,217 — 126,217 — Total assets $ 227,977 $ 101,760 $ 126,217 $ — |
Marketable securities (Tables)
Marketable securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investments in marketable securities classified as available for sale | The following tables summarize the Company’s investments in marketable securities classified as available for sale (in thousands): As of March 31, 2021 Maturity Amortized Gross Gross Aggregate U.S. Treasury securities less than 1 year $ 52,329 $ 10 $ — $ 52,339 As of December 31, 2020 Maturity Amortized Gross Gross Aggregate U.S. Treasury securities less than 1 year $ 126,212 $ 7 $ (2) $ 126,217 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restricted Cash [Abstract] | |
Schedule of reconciled cash, cash equivalents, and restricted cash | The following table reconciles cash and cash equivalents and restricted cash per the balance sheet to the statements of cash flows: March 31, December 31, March 31, December 31, 2021 2020 2020 2019 Cash and cash equivalents $ 395,985 $ 102,047 $ 107,035 $ 101,559 Restricted cash 275 275 275 275 Total cash, cash equivalents, and restricted cash $ 396,260 $ 102,322 $ 107,310 $ 101,834 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | At March 31, 2021 and December 31, 2020 accrued expenses consist of the following (in thousands): March 31, December 31, 2021 2020 Payroll and related expenses $ 2,186 $ 5,148 Research and development activities 3,762 4,335 Other expenses 1,252 677 $ 7,200 $ 10,160 |
Equity Based Compensation (Tabl
Equity Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of equity based compensation expense | The Company recognized equity-based compensation expense in the condensed consolidated statements of operations and comprehensive loss, by award type, as follows (in thousands): Three Months Ended March 31, 2021 2020 Stock option $ 4,139 $ 1,872 Restricted common stock 81 552 Restricted stock units 63 10 ESPP 159 110 Total $ 4,442 $ 2,544 The following table summarizes the allocation of equity-based compensation expense in the condensed consolidated statements of operations and comprehensive loss, by expense category: Three Months Ended March 31, 2021 2020 Research and development expense $ 2,266 $ 1,792 General and administrative expense 2,176 752 Total $ 4,442 $ 2,544 |
Summary of restricted common stock | The following table summarizes the restricted stock awards activity during the three months ended March 31, 2021: Number of Shares Weighted Unvested restricted common stock as of December 31, 2020 100,989 $ 4.32 Granted — — Vested (25,150) 4.32 Forfeited (2,479) 4.32 Unvested restricted common stock as of March 31, 2021 73,360 $ 4.32 |
Summary of restricted stock units | The following table summarizes the restricted stock units activity during the three months ended March 31, 2021: Number of Shares Weighted Unvested restricted common stock as of December 31, 2020 66,216 $ 10.84 Granted — — Vested (21,743) 10.84 Forfeited — — Unvested restricted common stock as of March 31, 2021 44,473 $ 10.84 |
Summary of stock option activity | The following table summarizes the Company’s stock option activity during the three months ended March 31, 2021: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding as of December 31, 2020 4,352,095 $ 12.22 8.68 Granted 1,289,733 30.51 — — Exercised (279,431) 9.51 — — Forfeited (17,117) 14.69 — — Outstanding as of March 31, 2021 5,345,280 $ 16.77 8.76 $ 248,648 Options exercisable as of March 31, 2021 1,242,776 $ 10.58 8.21 $ 65,490 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic net income (loss) per share | The following tables illustrate the determination of basic and diluted loss per share for each period presented (in thousands, except share data): Three Months Ended March 31, 2021 2020 Net loss $ (21,284) $ (16,746) Weighted average common shares outstanding, basic 33,532,405 30,188,575 Net loss per share, basic $ (0.63) $ (0.55) |
Schedule of common stock equivalent shares | The following table sets forth the outstanding common stock equivalents, presented based on amounts outstanding at each period end, that have been excluded from the calculation of diluted net loss per share for the periods indicated because their inclusion would have been anti-dilutive (in common stock equivalent shares, as applicable): Three Months Ended March 31, 2021 2020 Restricted common stock 73,360 282,829 Restricted stock units 44,473 66,216 Stock options 5,345,280 4,355,549 5,463,113 4,704,594 |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation (Details) - USD ($) | Jul. 01, 2020 | Jul. 01, 2019 | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Subsidiary or Equity Method Investee [Line Items] | |||||
Net proceeds | $ 230,217,000 | $ 0 | |||
Open Market Sale Agreement | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Commission (as a percent) | 3.00% | ||||
IPO | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Sales of common shares sold in IPO, net of offering costs (in shares) | 6,900,000 | ||||
Public offering price (in dollars per share) | $ 15 | ||||
Net proceeds | $ 93,300,000 | ||||
IPO | Common Shares | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Conversion of convertible preferred stock into common stock (in shares) | 21,010,407 | ||||
Underwriters' exercise | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Sales of common shares sold in IPO, net of offering costs (in shares) | 900,000 | ||||
ATM | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Sales of common shares sold in IPO, net of offering costs (in shares) | 240,704 | ||||
Aggregate offering price of Placement Shares | $ 7,200,000 | ||||
Amount of shares remaining available for sale | $ 32,400,000 | $ 32,400,000 | |||
ATM | Open Market Sale Agreement | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Aggregate offering price of Placement Shares | $ 75,000,000 | ||||
Secondary Offering | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Sales of common shares sold in IPO, net of offering costs (in shares) | 3,500,000 | ||||
Public offering price (in dollars per share) | $ 70 | $ 70 | |||
Net proceeds | $ 15,000,000 | ||||
Aggregate offering price of Placement Shares | 245,000,000 | ||||
Amount of shares remaining available for sale | $ 230,000,000 | $ 230,000,000 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
U.S. Treasury obligations | $ 52,339 | $ 126,217 |
U.S. Treasury obligations | ||
Assets: | ||
U.S. Treasury obligations | 52,339 | 126,217 |
Fair value on a recurring basis | ||
Assets: | ||
Total assets | 448,043 | 227,977 |
Fair value on a recurring basis | U.S. Treasury obligations | ||
Assets: | ||
U.S. Treasury obligations | 52,339 | 126,217 |
Fair value on a recurring basis | Money market funds | ||
Assets: | ||
Money market funds, included in cash and cash equivalents | 395,704 | 101,760 |
Fair value on a recurring basis | Level 1 | ||
Assets: | ||
Total assets | 395,704 | 101,760 |
Fair value on a recurring basis | Level 1 | U.S. Treasury obligations | ||
Assets: | ||
U.S. Treasury obligations | 0 | 0 |
Fair value on a recurring basis | Level 1 | Money market funds | ||
Assets: | ||
Money market funds, included in cash and cash equivalents | 395,704 | 101,760 |
Fair value on a recurring basis | Level 2 | ||
Assets: | ||
Total assets | 52,339 | 126,217 |
Fair value on a recurring basis | Level 2 | U.S. Treasury obligations | ||
Assets: | ||
U.S. Treasury obligations | 52,339 | 126,217 |
Fair value on a recurring basis | Level 2 | Money market funds | ||
Assets: | ||
Money market funds, included in cash and cash equivalents | 0 | 0 |
Fair value on a recurring basis | Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Fair value on a recurring basis | Level 3 | U.S. Treasury obligations | ||
Assets: | ||
U.S. Treasury obligations | 0 | 0 |
Fair value on a recurring basis | Level 3 | Money market funds | ||
Assets: | ||
Money market funds, included in cash and cash equivalents | $ 0 | $ 0 |
Marketable securities (Details)
Marketable securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Marketable securities | ||
U.S. Treasury obligations | $ 52,339 | $ 126,217 |
U.S. Treasury obligations | ||
Marketable securities | ||
Amortized cost | 52,329 | 126,212 |
Gross unrealized holding gains | 10 | 7 |
Gross unrealized holding losses | 0 | (2) |
U.S. Treasury obligations | $ 52,339 | $ 126,217 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Restricted Cash [Abstract] | ||||
Letter of credit | $ 275 | |||
Term of letter of credit (in years) | 1 year | |||
Cash and cash equivalents | $ 395,985 | $ 102,047 | $ 107,035 | $ 101,559 |
Restricted cash | 275 | 275 | 275 | 275 |
Total cash, cash equivalents, and restricted cash | $ 396,260 | $ 102,322 | $ 107,310 | $ 101,834 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Payroll and related expenses | $ 2,186 | $ 5,148 |
Research and development activities | 3,762 | 4,335 |
Other expenses | 1,252 | 677 |
Total | $ 7,200 | $ 10,160 |
Equity Based Compensation - 201
Equity Based Compensation - 2019 equity incentive plan (Details) - 2019 Equity Incentive Plan - shares shares in Millions | Mar. 31, 2021 | Jan. 01, 2021 |
Equity Based Compensation | ||
Shares available for future issuance (in shares) | 1.3 | |
Number of shares available for issuance (in shares) | 1.4 |
Equity Based Compensation - Equ
Equity Based Compensation - Equity based compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity Based Compensation | ||
Total equity-based compensation expense | $ 4,442 | $ 2,544 |
Research and development expense | ||
Equity Based Compensation | ||
Total equity-based compensation expense | 2,266 | 1,792 |
General and administrative expense | ||
Equity Based Compensation | ||
Total equity-based compensation expense | 2,176 | 752 |
Stock option | ||
Equity Based Compensation | ||
Total equity-based compensation expense | 4,139 | 1,872 |
Restricted common stock | ||
Equity Based Compensation | ||
Total equity-based compensation expense | 81 | 552 |
Restricted stock units | ||
Equity Based Compensation | ||
Total equity-based compensation expense | 63 | 10 |
ESPP | ||
Equity Based Compensation | ||
Total equity-based compensation expense | $ 159 | $ 110 |
Equity Based Compensation - Res
Equity Based Compensation - Restricted common stock activity (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unrecognized equity based compensation expense expected period for recognition | 2 years 8 months 12 days |
Restricted common stock | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unrecognized equity based compensation expense | $ | $ 0.2 |
Unrecognized equity based compensation expense expected period for recognition | 8 months 12 days |
2019 Equity Incentive Plan | Restricted common stock | |
Number of Shares | |
Outstanding at the beginning (in shares) | shares | 100,989 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (25,150) |
Forfeited (in shares) | shares | (2,479) |
Outstanding at the end (in shares) | shares | 73,360 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding at the beginning (in dollars per share) | $ / shares | $ 4.32 |
Granted (in dollars per share) | $ / shares | 0 |
Vested as of the Reorganization | $ / shares | 4.32 |
Forfeited (in dollars per share) | $ / shares | 4.32 |
Outstanding at the end (in dollars per share) | $ / shares | $ 4.32 |
Equity Based Compensation - R_2
Equity Based Compensation - Restricted stock units activity (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unrecognized equity based compensation expense expected period for recognition | 2 years 8 months 12 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unrecognized equity based compensation expense | $ | $ 0.5 |
Unrecognized equity based compensation expense expected period for recognition | 2 years 4 months 24 days |
2019 Equity Incentive Plan | Restricted stock units | |
Number of Shares | |
Outstanding at the beginning (in shares) | shares | 66,216 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (21,743) |
Forfeited (in shares) | shares | 0 |
Outstanding at the end (in shares) | shares | 44,473 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding at the beginning (in dollars per share) | $ / shares | $ 10.84 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 10.84 |
Forfeited (in dollars per share) | $ / shares | 0 |
Outstanding at the end (in dollars per share) | $ / shares | $ 10.84 |
Equity Based Compensation - Sto
Equity Based Compensation - Stock option awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Unrecognized equity based compensation expense | $ 50,800 | |
Unrecognized equity based compensation expense expected period for recognition | 2 years 8 months 12 days | |
Stock option | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at the beginning (in shares) | 4,352,095 | |
Granted (in shares) | 1,289,733 | |
Exercised (in shares) | (279,431) | |
Forfeited (in shares) | (17,117) | |
Outstanding at the end (in shares) | 5,345,280 | 4,352,095 |
Options exercisable at the end (in shares) | 1,242,776 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding at the beginning (in dollars per share) | $ 12.22 | |
Granted (in dollars per share) | 30.51 | |
Exercised (in dollars per share) | 9.51 | |
Forfeited (in dollars per share) | 14.69 | |
Outstanding at the end (in dollars per share) | 16.77 | $ 12.22 |
Options exercisable at the end (in dollars per share) | $ 10.58 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Expected term (in years) | 8 years 9 months 3 days | 8 years 8 months 4 days |
Options exercisable at the end (in years) | 8 years 2 months 15 days | |
Outstanding at the beginning | ||
Outstanding at the end | 248,648 | |
Options exercisable at the end | $ 65,490 |
Equity Based Compensation - ESP
Equity Based Compensation - ESPP (Details) - ESPP - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2019 | |
Equity Based Compensation | |||
Shares authorized (in shares) | 300,000 | ||
Shares available for future grants (in shares) | 300,000 | ||
Discount rate to purchase common stock | 15.00% | ||
Maximum | |||
Equity Based Compensation | |||
Amount of common shares available for purchase per employee per year | $ 25,000 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Income tax benefit, CARES Act | $ 0.2 |
Option and License Agreements (
Option and License Agreements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Research and development | $ 18,613 | $ 18,960 | |
Accounts receivable | 2,759 | $ 7,314 | |
Janssen | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Upfront fees received | 500 | ||
Research collaboration and option agreement | Janssen | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Research and development | 1,300 | ||
Revenue related to research services | 1,800 | ||
Deferred revenue | 10,800 | ||
Accounts receivable | 2,800 | 6,400 | |
Collaborative Arrangement Upfront Fees Received For First Two Research Program | 10,000 | ||
Collaborative Arrangement Additional Fee Received Upon Commencement Of Third Research Program | 5,000 | ||
AbbVie | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Upfront fees received | 100,000 | ||
Revenue recognized from option exercise | $ 20,000 | ||
Deferred revenue | 70,200 | ||
AbbVie | Collaboration and option agreement with AbbVie | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Research and development | 1,300 | ||
Revenue related to research services | $ 1,500 |
Net Loss per Share - Basic net
Net Loss per Share - Basic net income (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net Loss | $ (21,284) | $ (16,746) |
Weighted average common shares outstanding, basic and diluted (in shares) | 33,532,405 | 30,188,575 |
Net loss per share, basic (in dollars Per share) | $ (0.63) | $ (0.55) |
Net Loss per Share - Common sto
Net Loss per Share - Common stock equivalent shares (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti‑dilutive securities | 5,463,113 | 4,704,594 |
Restricted common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti‑dilutive securities | 73,360 | 282,829 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti‑dilutive securities | 44,473 | 66,216 |
Stock option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti‑dilutive securities | 5,345,280 | 4,355,549 |
ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti‑dilutive securities | 810,624 |