Morphic Holding (MORF) 10-Q 4 Aug 21 2021 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Aug. 02, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 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		36,415,045
Entity Central Index Key	0001679363
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 399,404	$ 102,047
Marketable securities	32,214	126,217
Accounts receivable	1,314	7,314
Prepaid expenses and other current assets	3,914	3,857
Total current assets	436,846	239,435
Property and equipment, net	2,331	2,606
Restricted cash	275	275
Other assets	31	66
Total assets	439,483	242,382
Current liabilities:
Accounts payable	5,254	3,845
Accrued expenses	7,693	10,160
Deferred revenue, current portion	21,799	25,266
Deferred rent, current portion	166	167
Total current liabilities	34,912	39,438
Long-term liabilities:
Deferred revenue, net of current portion	56,662	57,672
Deferred rent, net of current portion	0	75
Total liabilities	91,574	97,185
Stockholders’ Equity
Preferred shares, $0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of June 30, 2021 and December 31, 2020	0	0
Common shares, $0.0001 par value, 400,000,000 shares authorized, 36,277,511 shares issued and outstanding as of June 30, 2021 and 32,037,686 shares issued and outstanding as of December 31, 2020	4	3
Additional paid‑in capital	539,536	287,727
Accumulated deficit	(191,611)	(142,512)
Accumulated other comprehensive loss	(20)	(21)
Total stockholders’ equity	347,909	145,197
Total liabilities and stockholders’ equity	$ 439,483	$ 242,382

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 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	36,277,511	32,037,686
Common shares, shares outstanding	36,277,511	32,037,686

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Collaboration revenue	$ 3,848	$ 7,693	$ 7,114	$ 13,287
Operating expenses:
Costs incurred	24,552	19,918	43,165	38,878
General and administrative	7,139	4,195	13,091	8,618
Total operating expenses	31,691	24,113	56,256	47,496
Loss from operations	(27,843)	(16,420)	(49,142)	(34,209)
Other income:
Interest income, net	35	413	63	1,299
Other expenses	(7)	(6)	(20)	(6)
Total other income, net	28	407	43	1,293
Loss before benefit from income taxes	(27,815)	(16,013)	(49,099)	(32,916)
Benefit from income taxes	0	155	0	312
Net loss	$ (27,815)	$ (15,858)	$ (49,099)	$ (32,604)
Net loss per share, basic (in dollars Per share)	$ (0.77)	$ (0.52)	$ (1.41)	$ (1.08)
Net loss per share, diluted (in dollars Per share)	$ (0.77)	$ (0.52)	$ (1.41)	$ (1.08)
Weighted average common shares outstanding, basic (in shares)	36,179,085	30,360,851	34,863,056	30,274,713
Weighted average common shares outstanding, diluted (in shares)	36,179,085	30,360,851	34,863,056	30,274,713
Comprehensive loss:
Net loss	$ (27,815)	$ (15,858)	$ (49,099)	$ (32,604)
Other comprehensive income (loss):
Unrealized holding gains (losses) on marketable securities	(4)	(391)	1	180
Total other comprehensive income (loss)	(4)	(391)	1	180
Comprehensive loss	$ (27,819)	$ (16,249)	$ (49,098)	$ (32,424)

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, 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]
Net Loss	(32,604)
Balance at end of period at Jun. 30, 2020	114,917			$ 3			244,807			(130,117)	224
Balance at end of period ( in shares) at Jun. 30, 2020				30,421,775
Balance at beginning of period at Mar. 31, 2020	128,135			$ 3			241,776			(114,259)	615
Balance at beginning of period ( in shares) at Mar. 31, 2020				30,283,725
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation expense	2,489						2,489
Vesting of restricted shares (in shares)				57,490
Issuance of common shares upon stock option exercises	542						542
Issuance of common shares upon stock option exercises (in shares)				80,560
Unrealized holding gains on marketable securities	(391)										(391)
Net Loss	(15,858)									(15,858)
Balance at end of period at Jun. 30, 2020	114,917			$ 3			244,807			(130,117)	224
Balance at end of period ( in shares) at Jun. 30, 2020				30,421,775
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
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]
Net Loss	(49,099)
Balance at end of period at Jun. 30, 2021	347,909			$ 4			539,536			(191,611)	(20)
Balance at end of period ( in shares) at Jun. 30, 2021				36,277,511
Balance at beginning of period at Mar. 31, 2021	368,892			$ 4			532,700			(163,796)	(16)
Balance at beginning of period ( in shares) at Mar. 31, 2021				36,131,275
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation expense	5,308						5,308
Vesting of restricted shares (in shares)				24,080
Issuance of common shares upon stock option exercises	1,577						1,577
Issuance of common shares upon stock option exercises (in shares)				122,156
Unrealized holding gains on marketable securities	(4)										(4)
Offering costs incurred	(49)						(49)
Net Loss	(27,815)									(27,815)
Balance at end of period at Jun. 30, 2021	$ 347,909			$ 4			$ 539,536			$ (191,611)	$ (20)
Balance at end of period ( in shares) at Jun. 30, 2021				36,277,511

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	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net loss	$ (49,099)	$ (32,604)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	508	569
Premium amortization and discount accretion on marketable securities	205	308
Equity‑based compensation	9,750	5,033
Loss on disposal of equipment	4	0
Change in operating assets and liabilities:
Accounts receivable	6,000	(64)
Prepaid expenses and other current assets	(57)	916
Other assets	35	51
Accounts payable	1,376	(1,051)
Accrued expenses	(2,467)	1,335
Deferred revenue	(4,477)	(9,756)
Deferred rent	(76)	(40)
Net cash used in operating activities	(38,298)	(35,303)
Cash flows from investing activities:
Purchases of marketable securities	(12,200)	(9,088)
Proceeds from maturities of marketable securities	106,000	75,000
Purchase of property and equipment	(205)	(385)
Net cash provided by investing activities	93,595	65,527
Cash flows from financing activities:
Deferred issuance costs	0	(52)
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	229,982	0
Proceeds from issuance of common shares upon stock option exercises	4,234	709
Net cash provided by financing activities	242,060	1,338
Net increase in cash and cash equivalents and restricted cash	297,357	31,562
Cash and cash equivalents and restricted cash, beginning of period	102,322	101,834
Cash and cash equivalents and restricted cash, end of period	399,679	133,396
Non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable and accrued expenses	41	31
Deferred issuance costs included in accrued expenses and prepaid expenses and other current assets	0	315
Supplemental cash flow information:
Cash paid for taxes	$ 90	$ 480

Nature of the Business and Basi

Nature of the Business and Basis of Presentation	6 Months Ended
	Jun. 30, 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 and Liquidity 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 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 paid 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 June 30, 2021, no shares under the ATM were sold. During the six months ended June 30, 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 June 30, 2021, the Company had approximately $32.4 million of common stock remaining available for sale under the ATM. The Agreement will be amended upon the filing of this report such that, as of the date hereof a new at-the-market offering (“New ATM”) will be established, with an aggregate offering price of up to $150,000,000. The Company entered into an Amendment No. 1 to the Open Market Sale Agreement with Jefferies with respect to the New ATM. Under the New ATM, the Company may offer and sell, from time to time at its sole discretion, shares of its common stock, referred to as Placement Shares, through Jefferies as its sales agent. The Company may not sell any Placement Shares under the ATM after the date hereof. 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	6 Months Ended
	Jun. 30, 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 June 30, 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 and six months ended June 30, 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 At IPO, 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 and has been following requirements applicable to the private companies for adopting new and updated accounting standards. Based on the value of the Company's common stock held by non-affiliates on June 30, 2021, the Company will become a large accelerated filer for the year ending December 31, 2021 and will follow adoption guidance mandated for non-EGC entities. 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. As of December 31, 2021, the Company will become a large accelerated filer and as a result, the guidance under ASU 2019-04, ASU 2016-13 and ASU 2019-11 is effective for the Company's Annual Report on Form 10-K to be filed for the year ended December 31, 2021. The Company will record a cumulative effect adjustment to retained earnings retroactive to January 1, 2021, the date of adoption. 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. The Company does not expect this guidance to have a material impact on its consolidated financial statements. 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. The Company currently expects to elect the available package of practical expedients which allows the Company to not reassess previous accounting conclusions around whether arrangements are or contain leases, the classification of leases, and the treatment of initial direct costs. The Company also expects it will make an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet.

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 2021 Total Level 1 Level 2 Level 3 Assets: Money market funds, included in cash and cash equivalents $ 399,073 $ 399,073 $ — $ — U.S. Treasury obligations 32,214 — 32,214 — Total assets $ 431,287 $ 399,073 $ 32,214 $ — 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 June 30, 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 June 30, 2021 and December 31, 2020. During the six months ended June 30, 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 June 30, 2021 or December 31, 2020. The Company believes that the carrying amounts of the Company’s condensed consolidated financial instruments, including prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses approximate fair value due to the short-term nature of those instruments.

Marketable securities

Marketable securities	6 Months Ended
	Jun. 30, 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 June 30, 2021 Maturity Amortized Gross Gross Aggregate U.S. Treasury securities less than 1 year $ 32,208 $ 6 $ — $ 32,214 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	6 Months Ended
	Jun. 30, 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 (in thousands): June 30, December 31, June 30, December 31, 2021 2020 2020 2019 Cash and cash equivalents $ 399,404 $ 102,047 $ 133,121 $ 101,559 Restricted cash 275 275 275 275 Total cash, cash equivalents, and restricted cash $ 399,679 $ 102,322 $ 133,396 $ 101,834

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2021
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses At June 30, 2021 and December 31, 2020 accrued expenses consist of the following (in thousands): June 30, December 31, 2021 2020 Payroll and related expenses $ 3,626 $ 5,148 Research and development activities 3,100 4,335 Other expenses 967 677 $ 7,693 $ 10,160

Equity Based Compensation

Equity Based Compensation	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Equity Based Compensation	Equity Based CompensationIn 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 June 30, 2021, there were a total of 1.3 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock option $ 4,906 $ 2,190 $ 9,045 $ 4,061 Restricted common stock 72 133 153 686 Restricted stock units 159 59 222 69 ESPP 171 107 330 217 Total $ 5,308 $ 2,489 $ 9,750 $ 5,033 The following table summarizes the allocation of equity-based compensation expense in the condensed consolidated statements of operations and comprehensive loss, by expense category (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development expense $ 2,542 $ 1,352 $ 4,807 $ 3,143 General and administrative expense 2,766 1,137 4,943 1,890 Total $ 5,308 $ 2,489 $ 9,750 $ 5,033 Restricted Common Stock The following table summarizes the restricted stock awards activity during the six months ended June 30, 2021: Number of Shares Weighted Unvested restricted common stock as of December 31, 2020 100,989 $ 4.32 Granted — — Vested (49,230) 4.32 Forfeited (3,040) 4.32 Unvested restricted common stock as of June 30, 2021 48,719 $ 4.32 As of June 30, 2021, the Company had unrecognized equity-based compensation expense of $0.1 million related to the restricted stock awards, which is expected to be recognized over a weighted average period of 0.5 years. Restricted Stock Units The following table summarizes the restricted stock units activity during the six months ended June 30, 2021: Number of Shares Weighted Unvested restricted common stock as of December 31, 2020 66,216 $ 10.84 Granted 7,000 57.73 Vested (21,743) 10.84 Forfeited — — Unvested restricted common stock as of June 30, 2021 51,473 $ 17.22 As of June 30, 2021, the Company had unrecognized equity-based compensation expense of $0.7 million related to the restricted stock units, which is expected to be recognized over a weighted average period of 2.0 years. Stock Options The following table summarizes the Company’s stock option activity during the six months ended June 30, 2021: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding as of December 31, 2020 4,352,095 $ 12.22 8.68 Granted 1,507,633 34.69 — — Exercised (401,587) 10.55 — — Forfeited (58,334) 17.20 — — Outstanding as of June 30, 2021 5,399,807 $ 18.56 8.48 $ 210,541 Options exercisable as of June 30, 2021 1,642,213 $ 12.39 7.91 $ 73,894 As of June 30, 2021, the Company had unrecognized equity-based compensation expense of $54.8 million related to stock options issued to employees and non-employees, which is expected to be recognized over a weighted average period of 2.6 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	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 June 30, 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 and six months ended June 30, 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	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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. The following table summarizes research and development costs incurred and revenue recognized in connection with Company's performance under the AbbVie Agreement during the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenue recognized $ 2,070 $ 5,289 $ 3,567 $ 8,681 Costs incurred 1,847 3,205 3,168 7,670 On August 25, 2020, AbbVie exercised its option to license and control further development and commercialization of Morphic’s αvβ6–specific integrin inhibitors 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 Morphic’s αvβ6–specific integrin inhibitors, 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 June 30, 2021. As of June 30, 2021, the Company had $68.1 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 June 30, 2021. The Company had $0.9 million recorded as accounts receivable from AbbVie on the condensed consolidated balance sheet as of December 31. 2020. No amounts were recorded as accounts receivable from AbbVie as of June 30, 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 and six months ended June 30, 2021, the Company continued to perform under its agreement with Janssen (the "Janssen Agreement"), 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. The follow table summarizes research and development costs incurred and revenue recognized in connection with Company's performance under the Janssen Agreement during three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Reimbursement revenue $ 1,313 $ 1,843 $ 2,638 $ 3,531 Upfront payment revenue 465 561 909 1,075 Total revenue recognized $ 1,778 $ 2,404 $ 3,547 $ 4,606 Costs incurred $ 1,131 $ 1,634 $ 2,270 $ 3,101 The Company had $1.3 million and $6.4 million due from Janssen included in accounts receivable on the condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, $10.4 million of deferred revenue is classified as either current or long-term deferred revenue in the accompanying condensed consolidated balance sheet 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 June 30, 2021.

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net loss $ (27,815) $ (15,858) $ (49,099) $ (32,604) Weighted average common shares outstanding, basic 36,179,085 30,360,851 34,863,056 30,274,713 Net loss per share, basic $ (0.77) $ (0.52) $ (1.41) $ (1.08) 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 and Six Months Ended June 30, 2021 2020 Restricted common stock 48,719 224,231 Restricted stock units 51,473 66,216 Stock options 5,399,807 4,694,324 5,499,999 4,984,771 In addition to the securities listed in the table above, as of June 30, 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 six months ended June 30, 2021.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 At IPO, 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 and has been following requirements applicable to the private companies for adopting new and updated accounting standards. Based on the value of the Company's common stock held by non-affiliates on June 30, 2021, the Company will become a large accelerated filer for the year ending December 31, 2021 and will follow adoption guidance mandated for non-EGC entities. 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. As of December 31, 2021, the Company will become a large accelerated filer and as a result, the guidance under ASU 2019-04, ASU 2016-13 and ASU 2019-11 is effective for the Company's Annual Report on Form 10-K to be filed for the year ended December 31, 2021. The Company will record a cumulative effect adjustment to retained earnings retroactive to January 1, 2021, the date of adoption. 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. The Company does not expect this guidance to have a material impact on its consolidated financial statements. 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. The Company currently expects to elect the available package of practical expedients which allows the Company to not reassess previous accounting conclusions around whether arrangements are or contain leases, the classification of leases, and the treatment of initial direct costs. The Company also expects it will make an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet.

Fair Value of Financial Asset_2

Fair Value of Financial Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 2021 Total Level 1 Level 2 Level 3 Assets: Money market funds, included in cash and cash equivalents $ 399,073 $ 399,073 $ — $ — U.S. Treasury obligations 32,214 — 32,214 — Total assets $ 431,287 $ 399,073 $ 32,214 $ — 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)	6 Months Ended
	Jun. 30, 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 June 30, 2021 Maturity Amortized Gross Gross Aggregate U.S. Treasury securities less than 1 year $ 32,208 $ 6 $ — $ 32,214 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)	6 Months Ended
	Jun. 30, 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 (in thousands): June 30, December 31, June 30, December 31, 2021 2020 2020 2019 Cash and cash equivalents $ 399,404 $ 102,047 $ 133,121 $ 101,559 Restricted cash 275 275 275 275 Total cash, cash equivalents, and restricted cash $ 399,679 $ 102,322 $ 133,396 $ 101,834

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2021
Payables and Accruals [Abstract]
Schedule of accrued expenses	At June 30, 2021 and December 31, 2020 accrued expenses consist of the following (in thousands): June 30, December 31, 2021 2020 Payroll and related expenses $ 3,626 $ 5,148 Research and development activities 3,100 4,335 Other expenses 967 677 $ 7,693 $ 10,160

Equity Based Compensation (Tabl

Equity Based Compensation (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock option $ 4,906 $ 2,190 $ 9,045 $ 4,061 Restricted common stock 72 133 153 686 Restricted stock units 159 59 222 69 ESPP 171 107 330 217 Total $ 5,308 $ 2,489 $ 9,750 $ 5,033 The following table summarizes the allocation of equity-based compensation expense in the condensed consolidated statements of operations and comprehensive loss, by expense category (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development expense $ 2,542 $ 1,352 $ 4,807 $ 3,143 General and administrative expense 2,766 1,137 4,943 1,890 Total $ 5,308 $ 2,489 $ 9,750 $ 5,033
Summary of restricted common stock	The following table summarizes the restricted stock awards activity during the six months ended June 30, 2021: Number of Shares Weighted Unvested restricted common stock as of December 31, 2020 100,989 $ 4.32 Granted — — Vested (49,230) 4.32 Forfeited (3,040) 4.32 Unvested restricted common stock as of June 30, 2021 48,719 $ 4.32
Summary of restricted stock units	The following table summarizes the restricted stock units activity during the six months ended June 30, 2021: Number of Shares Weighted Unvested restricted common stock as of December 31, 2020 66,216 $ 10.84 Granted 7,000 57.73 Vested (21,743) 10.84 Forfeited — — Unvested restricted common stock as of June 30, 2021 51,473 $ 17.22
Summary of stock option activity	The following table summarizes the Company’s stock option activity during the six months ended June 30, 2021: Number of Weighted Weighted Aggregate (in years) (in thousands) Outstanding as of December 31, 2020 4,352,095 $ 12.22 8.68 Granted 1,507,633 34.69 — — Exercised (401,587) 10.55 — — Forfeited (58,334) 17.20 — — Outstanding as of June 30, 2021 5,399,807 $ 18.56 8.48 $ 210,541 Options exercisable as of June 30, 2021 1,642,213 $ 12.39 7.91 $ 73,894

Open Option Contracts Written (

Open Option Contracts Written (Tables)	6 Months Ended
	Jun. 30, 2021
Option and License Agreements
Summary of costs incurred and revenue recognized	The following table summarizes research and development costs incurred and revenue recognized in connection with Company's performance under the AbbVie Agreement during the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenue recognized $ 2,070 $ 5,289 $ 3,567 $ 8,681 Costs incurred 1,847 3,205 3,168 7,670 The follow table summarizes research and development costs incurred and revenue recognized in connection with Company's performance under the Janssen Agreement during three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Reimbursement revenue $ 1,313 $ 1,843 $ 2,638 $ 3,531 Upfront payment revenue 465 561 909 1,075 Total revenue recognized $ 1,778 $ 2,404 $ 3,547 $ 4,606 Costs incurred $ 1,131 $ 1,634 $ 2,270 $ 3,101

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net loss $ (27,815) $ (15,858) $ (49,099) $ (32,604) Weighted average common shares outstanding, basic 36,179,085 30,360,851 34,863,056 30,274,713 Net loss per share, basic $ (0.77) $ (0.52) $ (1.41) $ (1.08)
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 and Six Months Ended June 30, 2021 2020 Restricted common stock 48,719 224,231 Restricted stock units 51,473 66,216 Stock options 5,399,807 4,694,324 5,499,999 4,984,771

Nature of the Business and Ba_2

Nature of the Business and Basis of Presentation (Details) - USD ($)	Jul. 01, 2020	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
Subsidiary or Equity Method Investee [Line Items]
Net proceeds				$ 229,982,000	$ 0
Open Market Sale Agreement
Subsidiary or Equity Method Investee [Line Items]
Commission (as a percent)	3.00%
ATM
Subsidiary or Equity Method Investee [Line Items]
Aggregate offering price of Placement Shares				$ 7,200,000
Sales of common shares sold in IPO, net of offering costs (in shares)			0	240,704
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
New ATM | Open Market Sale Agreement
Subsidiary or Equity Method Investee [Line Items]
Aggregate offering price of Placement Shares				$ 150,000,000
Secondary Offering
Subsidiary or Equity Method Investee [Line Items]
Aggregate offering price of Placement Shares		$ 245,000,000
Sales of common shares sold in IPO, net of offering costs (in shares)		3,500,000
Public offering price (in dollars per share)		$ 70
Net proceeds		$ 15,000,000
Amount of shares remaining available for sale		$ 230,000,000

Fair Value of Financial Asset_3

Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets:
Aggregate estimated fair value	$ 32,214	$ 126,217
U.S. Treasury obligations
Assets:
Aggregate estimated fair value	32,214	126,217
Fair value on a recurring basis
Assets:
Total assets	431,287	227,977
Fair value on a recurring basis | U.S. Treasury obligations
Assets:
Aggregate estimated fair value	32,214	126,217
Fair value on a recurring basis | Money market funds
Assets:
Money market funds, included in cash and cash equivalents	399,073	101,760
Fair value on a recurring basis | Level 1
Assets:
Total assets	399,073	101,760
Fair value on a recurring basis | Level 1 | U.S. Treasury obligations
Assets:
Aggregate estimated fair value	0	0
Fair value on a recurring basis | Level 1 | Money market funds
Assets:
Money market funds, included in cash and cash equivalents	399,073	101,760
Fair value on a recurring basis | Level 2
Assets:
Total assets	32,214	126,217
Fair value on a recurring basis | Level 2 | U.S. Treasury obligations
Assets:
Aggregate estimated fair value	32,214	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:
Aggregate estimated fair value	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	Jun. 30, 2021	Dec. 31, 2020
Marketable securities
Aggregate estimated fair value	$ 32,214	$ 126,217
U.S. Treasury obligations
Marketable securities
Amortized cost	32,208	126,212
Gross unrealized holding gains	6	7
Gross unrealized holding losses	0	(2)
Aggregate estimated fair value	$ 32,214	$ 126,217

Cash, Cash Equivalents, and R_3

Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Restricted Cash [Abstract]
Letter of credit	$ 275
Term of letter of credit (in years)	1 year
Cash and cash equivalents	$ 399,404	$ 102,047	$ 133,121	$ 101,559
Restricted cash	275	275	275	275
Total cash, cash equivalents, and restricted cash	$ 399,679	$ 102,322	$ 133,396	$ 101,834

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Payroll and related expenses	$ 3,626	$ 5,148
Research and development activities	3,100	4,335
Other expenses	967	677
Total	$ 7,693	$ 10,160

Equity Based Compensation - 201

Equity Based Compensation - 2019 equity incentive plan (Details) - 2019 Equity Incentive Plan - shares shares in Millions	Jun. 30, 2021	Jan. 01, 2021
Equity Based Compensation
Shares available for future issuance (in shares)		1.3
Number of shares available for issuance (in shares)	1.3

Equity Based Compensation - Equ

Equity Based Compensation - Equity based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Equity Based Compensation
Total equity-based compensation expense	$ 5,308	$ 2,489	$ 9,750	$ 5,033
Research and development expense
Equity Based Compensation
Total equity-based compensation expense	2,542	1,352	4,807	3,143
General and administrative expense
Equity Based Compensation
Total equity-based compensation expense	2,766	1,137	4,943	1,890
Stock option
Equity Based Compensation
Total equity-based compensation expense	4,906	2,190	9,045	4,061
Restricted common stock
Equity Based Compensation
Total equity-based compensation expense	72	133	153	686
Restricted stock units
Equity Based Compensation
Total equity-based compensation expense	159	59	222	69
ESPP
Equity Based Compensation
Total equity-based compensation expense	$ 171	$ 107	$ 330	$ 217

Equity Based Compensation - Res

Equity Based Compensation - Restricted common stock activity (Details) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021USD ($)$ / sharesshares	Jun. 30, 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 7 months 6 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 | $	$ 0.1	$ 0.1
Unrecognized equity based compensation expense expected period for recognition	6 months
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		(49,230)
Forfeited (in shares) | shares		(3,040)
Outstanding at the end (in shares) | shares	48,719	48,719
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	$ 4.32

Equity Based Compensation - R_2

Equity Based Compensation - Restricted stock units activity (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2021
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 7 months 6 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	$ 0.7
Unrecognized equity based compensation expense expected period for recognition	2 years
2019 Equity Incentive Plan | Restricted stock units
Number of Shares
Outstanding at the beginning (in shares)	66,216
Granted (in shares)	7,000
Vested (in shares)	(21,743)
Forfeited (in shares)	0
Outstanding at the end (in shares)	51,473
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)	$ 10.84
Granted (in dollars per share)	57.73
Vested (in dollars per share)	10.84
Forfeited (in dollars per share)	0
Outstanding at the end (in dollars per share)	$ 17.22

Equity Based Compensation - Sto

Equity Based Compensation - Stock option awards (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Unrecognized equity based compensation expense | $	$ 54,800
Unrecognized equity based compensation expense expected period for recognition	2 years 7 months 6 days
Stock option
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at the beginning (in shares) | shares	4,352,095
Granted (in shares) | shares	1,507,633
Exercised (in shares) | shares	(401,587)
Forfeited (in shares) | shares	(58,334)
Outstanding at the end (in shares) | shares	5,399,807	4,352,095
Options exercisable at the end (in shares) | shares	1,642,213
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at the beginning (in dollars per share) | $ / shares	$ 12.22
Granted (in dollars per share) | $ / shares	34.69
Exercised (in dollars per share) | $ / shares	10.55
Forfeited (in dollars per share) | $ / shares	17.20
Outstanding at the end (in dollars per share) | $ / shares	18.56	$ 12.22
Options exercisable at the end (in dollars per share) | $ / shares	$ 12.39
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Expected term (in years)	8 years 5 months 23 days	8 years 8 months 4 days
Options exercisable at the end (in years)	7 years 10 months 28 days
Outstanding at the beginning | $
Outstanding at the end | $	210,541
Options exercisable at the end | $	$ 73,894

Equity Based Compensation - ESP

Equity Based Compensation - ESPP (Details) - ESPP - USD ($)	6 Months Ended
	Jun. 30, 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) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income tax benefit, CARES Act	$ 0.2	$ 0.3

Option and License Agreements -

Option and License Agreements - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 28, 2021	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			$ 3,848	$ 7,693	$ 7,114	$ 13,287
AbbVie | Upfront payment revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			100,000
AbbVie | License
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			2,070	5,289	3,567	8,681	$ 20,000
Deferred revenue			68,100		68,100
Due from Janssen		$ 900	0		0		900
Janssen | Upfront payment revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue	$ 5,000	10,000	465	561	909	1,075		$ 10,000
Janssen | License
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			1,778	$ 2,404	3,547	$ 4,606
Deferred revenue			10,400		10,400
Due from Janssen		$ 6,400	$ 1,300		$ 1,300		$ 6,400

Option and License Agreements_2

Option and License Agreements - Costs incurred and revenue recognized (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 28, 2021	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			$ 3,848	$ 7,693	$ 7,114	$ 13,287
Costs incurred			31,691	24,113	56,256	47,496
AbbVie | License
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			2,070	5,289	3,567	8,681	$ 20,000
Costs incurred			1,847	3,205	3,168	7,670
AbbVie | Upfront payment revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			100,000
Janssen | License
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			1,778	2,404	3,547	4,606
Costs incurred			1,131	1,634	2,270	3,101
Janssen | Reimbursement revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			1,313	1,843	2,638	3,531
Janssen | Upfront payment revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue	$ 5,000	$ 10,000	$ 465	$ 561	$ 909	$ 1,075		$ 10,000

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				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Net Loss	$ (27,815)	$ (21,284)	$ (15,858)	$ (16,746)	$ (49,099)	$ (32,604)
Weighted average common shares outstanding, basic (in shares)	36,179,085		30,360,851		34,863,056	30,274,713
Net loss per share, basic (in dollars Per share)	$ (0.77)		$ (0.52)		$ (1.41)	$ (1.08)

Net Loss per Share - Common sto

Net Loss per Share - Common stock equivalent shares (Details) - shares	3 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities	5,499,999	4,984,771
Restricted common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities	48,719	224,231
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities	51,473	66,216
Stock option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities	5,399,807	4,694,324
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities	810,624