Morphic Holding (MORF) 10-Q 2 Nov 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
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	Large Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		38,552,521
Entity Central Index Key	0001679363
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 84,961	$ 171,434
Marketable securities	286,799	236,701
Accounts receivable	662	2,307
Prepaid expenses and other current assets	9,988	7,892
Total current assets	382,410	418,334
Operating lease right-of-use assets	3,845	4,806
Property and equipment, net	2,170	2,583
Restricted cash	560	560
Other assets	196	7
Total assets	389,181	426,290
Current liabilities:
Accounts payable	4,367	4,798
Accrued expenses	10,874	12,838
Deferred revenue, current portion	3,345	20,628
Total current liabilities	18,586	38,264
Long-term liabilities:
Operating lease liability, net of current portion	2,730	3,838
Deferred revenue, net of current portion	2,804	47,489
Total liabilities	24,120	89,591
Commitments and Contingencies
Stockholders’ Equity
Preferred shares, $0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of September 30, 2022 and December 31, 2021	0	0
Common shares, $0.0001 par value, 400,000,000 shares authorized, 38,532,370 shares issued and outstanding as of September 30, 2022 and 37,085,397 shares issued and outstanding as of December 31, 2021	4	4
Additional paid‑in capital	641,872	575,231
Accumulated deficit	(272,718)	(238,054)
Accumulated other comprehensive loss	(4,097)	(482)
Total stockholders’ equity	365,061	336,699
Total liabilities and stockholders’ equity	$ 389,181	$ 426,290

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred shares, shares authorized (in shares)	10,000,000	10,000,000
Preferred shares, shares issued (in shares)	0	0
Preferred shares, shares outstanding (in shares)	0	0
Common shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common shares, shares issued (in shares)	38,532,370	37,085,397
Common shares, shares outstanding (in shares)	38,532,370	37,085,397

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Collaboration revenue	$ 2,055	$ 3,124	$ 64,673	$ 10,238
Operating expenses:
Research and development	25,245	20,966	77,360	64,131
General and administrative	8,303	7,276	24,128	20,367
Total operating expenses	33,548	28,242	101,488	84,498
Loss from operations	(31,493)	(25,118)	(36,815)	(74,260)
Other income:
Interest income, net	1,657	77	2,326	140
Other expense, net	(156)	0	(144)	(20)
Total other income, net	1,501	77	2,182	120
Loss before provision for income taxes	(29,992)	(25,041)	(34,633)	(74,140)
Provision for income taxes	(29)	0	(31)	0
Net loss	$ (30,021)	$ (25,041)	$ (34,664)	$ (74,140)
Net loss per share, basic (in dollars per share)	$ (0.78)	$ (0.69)	$ (0.91)	$ (2.09)
Net loss per share, diluted (in dollars Per share)	$ (0.78)	$ (0.69)	$ (0.91)	$ (2.09)
Weighted average common shares outstanding, basic (in shares)	38,490,910	36,547,222	37,961,262	35,392,153
Weighted average common shares outstanding, diluted (in shares)	38,490,910	36,547,222	37,961,262	35,392,153
Comprehensive loss:
Net loss	$ (30,021)	$ (25,041)	$ (34,664)	$ (74,140)
Other comprehensive loss:
Unrealized holding losses on marketable securities, net of tax	(1,680)	(73)	(3,615)	(72)
Total other comprehensive loss	(1,680)	(73)	(3,615)	(72)
Comprehensive loss	$ (31,701)	$ (25,114)	$ (38,279)	$ (74,212)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands	Total	At-The-Market Offering	Secondary Offering	Common Shares	Common Shares At-The-Market Offering	Common Shares Secondary Offering	Additional Paid‑in Capital	Additional Paid‑in Capital At-The-Market Offering	Additional Paid‑in Capital Secondary Offering	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Balance at beginning of period ( in shares) at Dec. 31, 2020				32,037,686
Balance at beginning of period at Dec. 31, 2020	$ 145,197			$ 3			$ 287,727			$ (142,512)	$ (21)
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 (in shares)				279,431
Issuance of common shares upon stock option exercises	2,657						2,657
Issuance of common shares under the Employee Stock Purchase Plan (in shares)				26,561
Issuance of common shares under the Employee Stock Purchase Plan	613						613
Issuance of common shares, net of issuance/offering costs (in shares)					240,704	3,500,000
Issuance of common shares, net of issuance/offering costs		$ 7,231	$ 230,031			$ 1		$ 7,231	$ 230,030
Unrealized holding losses on marketable securities	5										5
Net income (loss)	(21,284)									(21,284)
Balance at end of period ( in shares) at Mar. 31, 2021				36,131,275
Balance at end of period at Mar. 31, 2021	368,892			$ 4			532,700			(163,796)	(16)
Balance at beginning of period ( in shares) at Dec. 31, 2020				32,037,686
Balance at beginning of period at Dec. 31, 2020	145,197			$ 3			287,727			(142,512)	(21)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(74,140)
Balance at end of period ( in shares) at Sep. 30, 2021				36,892,411
Balance at end of period at Sep. 30, 2021	350,165			$ 4			566,906			(216,652)	(93)
Balance at beginning of period ( in shares) at Mar. 31, 2021				36,131,275
Balance at beginning of period at Mar. 31, 2021	368,892			$ 4			532,700			(163,796)	(16)
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 (in shares)				122,156
Issuance of common shares upon stock option exercises	1,577						1,577
Unrealized holding losses on marketable securities	(4)										(4)
Offering costs incurred	(49)						(49)
Net income (loss)	(27,815)									(27,815)
Balance at end of period ( in shares) at Jun. 30, 2021				36,277,511
Balance at end of period at Jun. 30, 2021	347,909			$ 4			539,536			(191,611)	(20)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity‑based compensation expense	5,791						5,791
Vesting of restricted shares (in shares)				34,204
Issuance of common shares upon stock option exercises (in shares)				273,624
Issuance of common shares upon stock option exercises	3,683						3,683
Issuance of common shares under the Employee Stock Purchase Plan (in shares)				9,002
Issuance of common shares under the Employee Stock Purchase Plan	482						482
Issuance of common shares, net of issuance/offering costs (in shares)					298,070
Issuance of common shares, net of issuance/offering costs		17,414						17,414
Unrealized holding losses on marketable securities	(73)										(73)
Net income (loss)	(25,041)									(25,041)
Balance at end of period ( in shares) at Sep. 30, 2021				36,892,411
Balance at end of period at Sep. 30, 2021	350,165			$ 4			566,906			(216,652)	(93)
Balance at beginning of period ( in shares) at Dec. 31, 2021				37,085,397
Balance at beginning of period at Dec. 31, 2021	336,699			$ 4			575,231			(238,054)	(482)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity‑based compensation expense	6,765						6,765
Vesting of restricted shares (in shares)				1,990
Issuance of common shares upon stock option exercises (in shares)				146,237
Issuance of common shares upon stock option exercises	2,127						2,127
Issuance of common shares under the Employee Stock Purchase Plan (in shares)				16,845
Issuance of common shares under the Employee Stock Purchase Plan	571						571
Unrealized holding losses on marketable securities	(1,310)										(1,310)
Net income (loss)	(31,484)									(31,484)
Balance at end of period ( in shares) at Mar. 31, 2022				37,250,469
Balance at end of period at Mar. 31, 2022	313,368			$ 4			584,694			(269,538)	(1,792)
Balance at beginning of period ( in shares) at Dec. 31, 2021				37,085,397
Balance at beginning of period at Dec. 31, 2021	336,699			$ 4			575,231			(238,054)	(482)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(34,664)
Balance at end of period ( in shares) at Sep. 30, 2022				38,532,370
Balance at end of period at Sep. 30, 2022	365,061			$ 4			641,872			(272,718)	(4,097)
Balance at beginning of period ( in shares) at Mar. 31, 2022				37,250,469
Balance at beginning of period at Mar. 31, 2022	313,368			$ 4			584,694			(269,538)	(1,792)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity‑based compensation expense	7,623						7,623
Vesting of restricted shares (in shares)				3,681
Issuance of common shares upon stock option exercises (in shares)				194,442
Issuance of common shares upon stock option exercises	1,573						1,573
Issuance of common shares, net of issuance/offering costs (in shares)					1,000,000
Issuance of common shares, net of issuance/offering costs		$ 39,210						$ 39,210
Unrealized holding losses on marketable securities	(625)										(625)
Net income (loss)	26,841									26,841
Balance at end of period ( in shares) at Jun. 30, 2022				38,448,592
Balance at end of period at Jun. 30, 2022	387,990			$ 4			633,100			(242,697)	(2,417)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity‑based compensation expense	7,537						7,537
Issuance of common shares upon stock option exercises (in shares)				70,352
Issuance of common shares upon stock option exercises	921						921
Issuance of common shares under the Employee Stock Purchase Plan (in shares)				13,426
Issuance of common shares under the Employee Stock Purchase Plan	314						314
Unrealized holding losses on marketable securities	(1,680)										(1,680)
Net income (loss)	(30,021)									(30,021)
Balance at end of period ( in shares) at Sep. 30, 2022				38,532,370
Balance at end of period at Sep. 30, 2022	$ 365,061			$ 4			$ 641,872			$ (272,718)	$ (4,097)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2022	Sep. 30, 2021	Mar. 31, 2021
At-The-Market Offering
Offering costs	$ 1.3	$ 0.9	$ 0.2
Secondary Offering
Offering costs			$ 15

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net loss	$ (34,664)	$ (74,140)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	762	754
Premium amortization and discount accretion on marketable securities	1,137	531
Equity‑based compensation	21,925	15,541
Loss on sale of marketable securities	154	0
Loss on disposal of equipment	0	4
Change in operating assets and liabilities:
Accounts receivable	1,645	4,696
Prepaid expenses and other current assets	(2,031)	(1,353)
Other assets	(189)	51
Operating lease right-of-use assets	961	785
Accounts payable	(519)	(842)
Accrued expenses	(2,215)	(1,743)
Deferred revenue	(61,968)	(6,295)
Operating lease liabilities	(857)	(865)
Net cash used in operating activities	(75,859)	(62,876)
Cash flows from investing activities:
Purchases of marketable securities	(235,773)	(223,803)
Proceeds from maturities of marketable securities	173,623	106,000
Proceeds from sale of marketable securities	7,146	0
Purchase of property and equipment	(301)	(563)
Net cash used in investing activities	(55,305)	(118,366)
Cash flows from financing activities:
Proceeds from issuance of common shares under Employee Stock Purchase Plan	885	1,095
Proceeds from issuance of common shares upon stock option exercises	4,556	7,917
Net cash provided by financing activities	44,691	263,639
Net (decrease) increase in cash, cash equivalents and restricted cash	(86,473)	82,397
Cash and cash equivalents and restricted cash, beginning of period	171,994	102,322
Cash and cash equivalents and restricted cash, end of period	85,521	184,719
Non-cash activities:
Purchases of property and equipment included in accounts payable and accrued expenses	48	173
Amounts from exercise of stock options included in prepaid expenses and other current assets	65	0
Unpaid issuance costs for at-the-market offering included in accounts payable and accrued expenses	40	0
Right-of-use assets obtained in exchange for operating lease liabilities	0	4,434
At-The-Market Offering
Cash flows from financing activities:
Proceeds from issuance of common shares, net	39,250	24,645
Secondary Offering
Cash flows from financing activities:
Proceeds from issuance of common shares, net	$ 0	$ 229,982

Nature of the Business and Basi

Nature of the Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2022
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, 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 “Original Agreement”) with Jefferies LLC (“Jefferies”) with respect to an at-the-market offering program (the “Previous ATM”) under which the Company could offer and sell, from time to time at its sole discretion, shares of our common stock, having an aggregate offering amount of up to $75.0 million, 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 Original Agreement, and also provided Jefferies with customary indemnification and contribution rights. On August 11, 2021, the Company entered into an Amendment No. 1 to the Open Market Sale Agreement with Jefferies, establishing a new at-the-market offering program (the “New ATM”) with an aggregate offering amount of up to $150.0 million, also subject to a commission equal to 3.0% of gross sales proceeds from Placement Shares sold through Jefferies. 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. During the nine months ended September 30, 2022, the Company issued and sold 1,000,000 shares under the New ATM for net proceeds of approximately $39.2 million after deducting offering commissions and expenses. As of September 30, 2022, the Company had approximately $97.2 million of common stock remaining available for sale under the New 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. On March 2, 2022, the Company incorporated Morphic Therapeutic UK Ltd in London, United Kingdom (the “U.K.”), to support Company functions outside of the United States.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
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., Morphic Therapeutic UK Ltd, and a Massachusetts Security Corporation, organized in December 2019. 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 September 30, 2022 and 2021. 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, 2021, 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 February 24, 2022. 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 nine months ended September 30, 2022 are consistent with those discussed in Note 2 to the consolidated financial statements in the Company’s 2021 Annual Report on Form 10-K, except as described below. As disclosed in Note 1, on March 2, 2022, the Company incorporated Morphic Therapeutic UK Ltd in London, U.K., to support Company functions outside of the United States. The geographic location of all long-lived assets of the Company continues to be the United States. The functional reporting currency of Morphic Therapeutic UK Ltd is the United States Dollar. Foreign currency remeasurement is included in other income (expense) in the Company's consolidated statements of operations. Reclassification Certain amounts have been reclassified for the nine months ended September 30, 2021 in the current Form 10-Q to conform with current year presentation. As disclosed in Note 2 to the Company's 2021 Annual Report on Form 10-K, in February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), with guidance regarding the accounting for and disclosure of leases. As the Company adopted Topic 842 in the annual period ended December 31, 2021 effective January 1, 2021, the Company reclassified certain amounts in the Company's cash flows from operating activities in the current Form 10-Q. Amounts for the nine months ended September 30, 2021 from the change in deferred rent were reclassified as changes in operating lease right-of-use assets and changes in operating lease liabilities. There were no changes to total cash flows or to cash flows from operating activities, investing activities or financing activities as a result of this reclassification.

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	9 Months Ended
	Sep. 30, 2022
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. At September 30, 2022, investments include U.S. Treasury securities, U.S. government-sponsored enterprise securities and corporate debt securities, including corporate bonds and commercial paper, which are valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. 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 September 30, 2022 and December 31, 2021 (in thousands) and indicate the level within the fair value hierarchy where each measurement is classified. Fair Value Measurements at September 30, 2022 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 84,314 $ 44,484 $ 39,830 $ — Marketable securities: U.S. Treasury securities 177,220 — 177,220 — U.S. government-sponsored enterprise securities 9,919 — 9,919 — Commercial paper 9,767 — 9,767 — Corporate bonds 89,893 — 89,893 — Total assets $ 371,113 $ 44,484 $ 326,629 $ — Fair Value Measurements at December 31, 2021 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 171,142 $ 171,142 $ — $ — Marketable securities: U.S. Treasury securities 16,212 — 16,212 — Commercial paper 99,898 — 99,898 — Corporate bonds 120,591 — 120,591 — Total assets $ 407,843 $ 171,142 $ 236,701 $ — Cash equivalents consist of money market funds and U.S. Treasury securities as of September 30, 2022 and money market funds as of December 31, 2021. The money market funds included in the tables 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 September 30, 2022 and December 31, 2021. The U.S. Treasury securities included in cash equivalents as of September 30, 2022 are considered highly liquid investments and mature within three months from the date of purchase. Marketable securities included in the tables above consist of U.S. Treasury securities, U.S. government-sponsored enterprise securities, commercial paper and corporate bonds, and these securities are categorized as Level 2 as of September 30, 2022 and December 31, 2021. The Company had no liabilities measured at fair value on a recurring basis at September 30, 2022 and December 31, 2021. The Company believes that the carrying amounts of the Company’s 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	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022 Maturity Amortized Gross Gross Aggregate Marketable securities: U.S. Treasury securities within 2 years $ 179,332 $ — $ (2,112) $ 177,220 U.S. government-sponsored enterprise securities within 2 years 10,000 — (81) 9,919 Commercial paper less than 1 year 9,767 — — 9,767 Corporate bonds within 2 years 91,772 — (1,879) 89,893 Total marketable securities $ 290,871 $ — $ (4,072) $ 286,799 As of December 31, 2021 Maturity Amortized Gross Gross Aggregate Marketable securities: U.S. Treasury securities less than 1 year $ 16,224 $ — $ (12) $ 16,212 Commercial paper less than 1 year 99,900 — (2) 99,898 Corporate bonds within 2 years 121,034 — (443) 120,591 Total marketable securities $ 237,158 $ — $ (457) $ 236,701 All of the Company’s investments are classified as available-for-sale and are carried at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive loss. The Company considers all available-for-sale securities, including those with maturity dates beyond 12 months, as available to support current operational liquidity needs and therefore classifies all available-for-sale securities as current assets. The Company determined that there was no material change in the credit risk of the above investments during the three and nine months ended September 30, 2022. As such, an allowance for credit losses was not recognized. As of September 30, 2022, the Company does not intend to sell such securities and it is not more likely than not that the Company will be required to sell the securities before recovery of its amortized cost basis.

Cash, Cash Equivalents, and Res

Cash, Cash Equivalents, and Restricted Cash	9 Months Ended
	Sep. 30, 2022
Restricted Cash [Abstract]
Cash, Cash Equivalents, and Restricted Cash	Cash, Cash Equivalents and Restricted Cash Restricted cash consists of cash collateralizing a letter of credit in the amount of $560,000 issued to the landlord of the Company’s facility lease. The letter of credit and cash collateralizing it increased from $275,000 in August 2021 due to the operating lease extension. The terms of the letter of credit extend beyond one year. The following table reconciles cash, cash equivalents and restricted cash per the balance sheet to the statements of cash flows (in thousands): September 30, December 31, September 30, December 31, 2022 2021 2021 2020 Cash and cash equivalents $ 84,961 $ 171,434 $ 184,159 $ 102,047 Restricted cash 560 560 560 275 Total cash, cash equivalents, and restricted cash $ 85,521 $ 171,994 $ 184,719 $ 102,322

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses At September 30, 2022 and December 31, 2021 accrued expenses consisted of the following (in thousands): September 30, December 31, 2022 2021 Payroll and related expenses $ 4,645 $ 6,396 Research and development activities 3,985 4,268 Current portion of operating lease liability 1,462 1,211 Other expenses 782 963 Total $ 10,874 $ 12,838

Equity-Based Compensation

Equity-Based Compensation	9 Months Ended
	Sep. 30, 2022
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 “Original 2019 Plan”) in June 2019, which replaced the 2018 Stock Incentive Plan. The board of directors adopted the Amended and Restated 2019 Equity Incentive Plan (the “A&R 2019 Plan” and, together with the Original 2019 Plan, the “2019 Plan”) on April 27, 2022, which was subsequently approved by the Company's stockholders on June 8, 2022, to revise the total annual compensation that may be awarded to the Company's non-employee directors thereunder. The A&R 2019 Plan provides for the grant of stock options, restricted stock awards, stock bonus awards, cash awards, stock appreciation right, restricted stock units, 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 A&R 2019 Plan increased by 1.5 million shares in January 2022. As of September 30, 2022, there were a total of 1.7 million shares available for future award grants under the A&R 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Stock options $ 6,674 $ 5,403 $ 19,459 $ 14,448 Restricted common stock — 71 5 224 Restricted stock units 756 163 2,151 385 Employee Stock Purchase Plan 107 154 310 484 Total $ 7,537 $ 5,791 $ 21,925 $ 15,541 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Research and development expense $ 3,423 $ 2,599 $ 10,316 $ 7,406 General and administrative expense 4,114 3,192 11,609 8,135 Total $ 7,537 $ 5,791 $ 21,925 $ 15,541 Stock Options The following table summarizes the Company’s stock option activity during the nine months ended September 30, 2022: Number of Weighted Outstanding as of December 31, 2021 4,781,565 $ 20.03 Granted 1,470,368 39.94 Exercised (411,031) 11.24 Forfeited or expired (441,934) 33.35 Outstanding as of September 30, 2022 5,398,968 $ 25.04 Options exercisable as of September 30, 2022 2,704,979 $ 18.64 Restricted Stock Units The following table summarizes the restricted stock units activity during the nine months ended September 30, 2022: Number of Shares Weighted Unvested restricted stock units as of December 31, 2021 7,000 $ 57.73 Granted 291,970 43.98 Vested (3,500) 57.73 Forfeited (32,200) 44.75 Unvested restricted stock units as of September 30, 2022 263,270 $ 44.07

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
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. The Company records a provision or benefit for income taxes on ordinary pre-tax income or loss based on its estimated effective tax rate for the year. As of September 30, 2022, the Company forecasts an ordinary pre-tax loss for the year ended December 31, 2022 and, since it maintains a full valuation allowance on its deferred tax assets, the Company did not record an income tax benefit in 2022. On August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (the “Inflation Act”) into law. The Inflation Act contains certain tax measures, including a corporate alternative minimum tax of 15% on some large corporations and an excise tax of 1% on corporate stock buy-backs. The various provisions of the Inflation Act do not have a material impact on the Company’s condensed consolidated financial statements.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
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 other key employees, in addition to the indemnification provided for in the restated certificate of incorporation and restated bylaws, as amended. These agreements, among other things, require the Company to indemnify directors, officers, and certain other 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 September 30, 2022, 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 nine months ended September 30, 2022, there were no material changes to our contractual obligations and commitments previously disclosed in Note 11 to the consolidated financial statements appearing in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on February 24, 2022. Legal Proceedings

Option and License Agreements

Option and License Agreements	9 Months Ended
	Sep. 30, 2022
Option and License Agreements
Option and License Agreements	Option and License Agreements A detailed description of contractual terms and the Company’s accounting for agreements described below was included in the Company’s audited financial statements and notes in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC on February 24, 2022. AbbVie Agreement During the three and nine months ended September 30, 2022 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. In June 2022, AbbVie informed the Company that it had decided to exercise its right to terminate the AbbVie Agreement for convenience, subject to a 180 day notification period. The AbbVie Agreement will terminate effective December 2022 or earlier if agreed to by the Company and AbbVie. The Company recognizes the $100.0 million up-front payment paid to the Company under the AbbVie Agreement as revenue as work is performed in proportion to the costs incurred. Upon receipt of notification of the exercise of the right to terminate the AbbVie Agreement, the Company concluded that there was a contract modification to an existing contract under ASC 606 because the notification of termination of the AbbVie Agreement resulted in a reduction in scope of the Company’s responsibilities for the three remaining research programs thereunder. The terms of the AbbVie Agreement termination notification did not include any additional promised goods or services. As a result of the notification from AbbVie, the Company recognized revenue of $57.7 million on a cumulative catch-up basis during the three months ended June 30, 2022 using an updated measure of progress towards satisfying the research and development services performance obligations thereunder. These research and development performance obligations will be completed through the effective date of the termination in December 2022. 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 nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenue recognized $ 890 $ 1,476 $ 60,140 $ 5,043 Costs incurred 30 1,206 631 4,374 In August 2020, pursuant to the AbbVie Agreement, AbbVie exercised its option to exclusively license and control further development and commercialization of the Company's αvβ6–specific integrin program for the treatment of fibrotic diseases including IPF and additional fibrosis-related indications. In connection with the exercise of the option, AbbVie paid the Company $20.0 million. Under this license, AbbVie controls and is responsible for the development and commercialization of this program. AbbVie has informed the Company that it does not intend to advance any of its selective oral αvβ6-specific integrin inhibitors due to a suspected on-target / αvβ6-mediated safety signal that has been observed in pre-clinical testing. Details about these observations are planned to be released in an upcoming scientific publication. As a result, the Company does not expect to receive additional payments for this program under the AbbVie Agreement. As of September 30, 2022, the Company had $0.4 million of remaining deferred revenue, which is classified as current 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 September 30, 2022. Janssen Agreement During the three and nine months ended September 30, 2022, 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 Janssen 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 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 under the Janssen Agreement through 2024. In December 2021, Janssen informed the Company that it had decided not to exercise its options on the first two integrin targets, thus also discontinuing those two research programs. The Company has focused efforts on the third integrin research program which includes the potential development of integrin antibody activators. The following table summarizes research and development costs incurred and revenue recognized in connection with Company's performance under the Janssen Agreement during the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Reimbursement revenue $ 662 $ 1,276 $ 2,704 $ 3,914 Upfront payment revenue 503 372 1,829 1,281 Total revenue recognized $ 1,165 $ 1,648 $ 4,533 $ 5,195 Costs incurred $ 530 $ 1,118 $ 2,258 $ 3,388 The Company had $0.7 million and $2.3 million due from Janssen included in accounts receivable on the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021 , respectively. As of September 30, 2022, $5.8 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 September 30, 2022.

Net Loss per Share

Net Loss per Share	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Net Loss per Share	Net Loss per Share Basic net loss per share is calculated by dividing net 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 and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net loss $ (30,021) $ (25,041) $ (34,664) $ (74,140) Weighted average common shares outstanding, basic and diluted 38,490,910 36,547,222 37,961,262 35,392,153 Net loss per share, basic and diluted $ (0.78) $ (0.69) $ (0.91) $ (2.09) 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 Nine Months Ended September 30, 2022 2021 Restricted common stock — 24,393 Restricted stock units 263,270 41,095 Stock options 5,398,968 5,086,495 5,662,238 5,151,983

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Consolidation	The unaudited interim condensed consolidated financial statements include the accounts of Morphic Holding, Inc. and its wholly owned subsidiaries, Morphic Therapeutic, Inc., Morphic Therapeutic UK Ltd, and a Massachusetts Security Corporation, organized in December 2019. All intercompany balances have been eliminated in consolidation.
Basis of Accounting	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”).
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.

Fair Value of Financial Asset_2

Fair Value of Financial Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022 and December 31, 2021 (in thousands) and indicate the level within the fair value hierarchy where each measurement is classified. Fair Value Measurements at September 30, 2022 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 84,314 $ 44,484 $ 39,830 $ — Marketable securities: U.S. Treasury securities 177,220 — 177,220 — U.S. government-sponsored enterprise securities 9,919 — 9,919 — Commercial paper 9,767 — 9,767 — Corporate bonds 89,893 — 89,893 — Total assets $ 371,113 $ 44,484 $ 326,629 $ — Fair Value Measurements at December 31, 2021 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 171,142 $ 171,142 $ — $ — Marketable securities: U.S. Treasury securities 16,212 — 16,212 — Commercial paper 99,898 — 99,898 — Corporate bonds 120,591 — 120,591 — Total assets $ 407,843 $ 171,142 $ 236,701 $ —

Marketable securities (Tables)

Marketable securities (Tables)	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022 Maturity Amortized Gross Gross Aggregate Marketable securities: U.S. Treasury securities within 2 years $ 179,332 $ — $ (2,112) $ 177,220 U.S. government-sponsored enterprise securities within 2 years 10,000 — (81) 9,919 Commercial paper less than 1 year 9,767 — — 9,767 Corporate bonds within 2 years 91,772 — (1,879) 89,893 Total marketable securities $ 290,871 $ — $ (4,072) $ 286,799 As of December 31, 2021 Maturity Amortized Gross Gross Aggregate Marketable securities: U.S. Treasury securities less than 1 year $ 16,224 $ — $ (12) $ 16,212 Commercial paper less than 1 year 99,900 — (2) 99,898 Corporate bonds within 2 years 121,034 — (443) 120,591 Total marketable securities $ 237,158 $ — $ (457) $ 236,701

Cash, Cash Equivalents, and R_2

Cash, Cash Equivalents, and Restricted Cash (Tables)	9 Months Ended
	Sep. 30, 2022
Restricted Cash [Abstract]
Schedule of reconciled cash, cash equivalents, and restricted cash	The following table reconciles cash, cash equivalents and restricted cash per the balance sheet to the statements of cash flows (in thousands): September 30, December 31, September 30, December 31, 2022 2021 2021 2020 Cash and cash equivalents $ 84,961 $ 171,434 $ 184,159 $ 102,047 Restricted cash 560 560 560 275 Total cash, cash equivalents, and restricted cash $ 85,521 $ 171,994 $ 184,719 $ 102,322
Schedule of cash and cash equivalents	The following table reconciles cash, cash equivalents and restricted cash per the balance sheet to the statements of cash flows (in thousands): September 30, December 31, September 30, December 31, 2022 2021 2021 2020 Cash and cash equivalents $ 84,961 $ 171,434 $ 184,159 $ 102,047 Restricted cash 560 560 560 275 Total cash, cash equivalents, and restricted cash $ 85,521 $ 171,994 $ 184,719 $ 102,322

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Schedule of accrued expenses	At September 30, 2022 and December 31, 2021 accrued expenses consisted of the following (in thousands): September 30, December 31, 2022 2021 Payroll and related expenses $ 4,645 $ 6,396 Research and development activities 3,985 4,268 Current portion of operating lease liability 1,462 1,211 Other expenses 782 963 Total $ 10,874 $ 12,838

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Stock options $ 6,674 $ 5,403 $ 19,459 $ 14,448 Restricted common stock — 71 5 224 Restricted stock units 756 163 2,151 385 Employee Stock Purchase Plan 107 154 310 484 Total $ 7,537 $ 5,791 $ 21,925 $ 15,541 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Research and development expense $ 3,423 $ 2,599 $ 10,316 $ 7,406 General and administrative expense 4,114 3,192 11,609 8,135 Total $ 7,537 $ 5,791 $ 21,925 $ 15,541
Summary of stock option activity	The following table summarizes the Company’s stock option activity during the nine months ended September 30, 2022: Number of Weighted Outstanding as of December 31, 2021 4,781,565 $ 20.03 Granted 1,470,368 39.94 Exercised (411,031) 11.24 Forfeited or expired (441,934) 33.35 Outstanding as of September 30, 2022 5,398,968 $ 25.04 Options exercisable as of September 30, 2022 2,704,979 $ 18.64
Summary of restricted stock units	Restricted Stock Units The following table summarizes the restricted stock units activity during the nine months ended September 30, 2022: Number of Shares Weighted Unvested restricted stock units as of December 31, 2021 7,000 $ 57.73 Granted 291,970 43.98 Vested (3,500) 57.73 Forfeited (32,200) 44.75 Unvested restricted stock units as of September 30, 2022 263,270 $ 44.07

Option and License Agreements (

Option and License Agreements (Tables)	9 Months Ended
	Sep. 30, 2022
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 nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenue recognized $ 890 $ 1,476 $ 60,140 $ 5,043 Costs incurred 30 1,206 631 4,374 The following table summarizes research and development costs incurred and revenue recognized in connection with Company's performance under the Janssen Agreement during the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Reimbursement revenue $ 662 $ 1,276 $ 2,704 $ 3,914 Upfront payment revenue 503 372 1,829 1,281 Total revenue recognized $ 1,165 $ 1,648 $ 4,533 $ 5,195 Costs incurred $ 530 $ 1,118 $ 2,258 $ 3,388

Net Loss per Share (Tables)

Net Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Schedule of basic and diluted 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 and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net loss $ (30,021) $ (25,041) $ (34,664) $ (74,140) Weighted average common shares outstanding, basic and diluted 38,490,910 36,547,222 37,961,262 35,392,153 Net loss per share, basic and diluted $ (0.78) $ (0.69) $ (0.91) $ (2.09)
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 Nine Months Ended September 30, 2022 2021 Restricted common stock — 24,393 Restricted stock units 263,270 41,095 Stock options 5,398,968 5,086,495 5,662,238 5,151,983

Nature of the Business and Ba_2

Nature of the Business and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended		3 Months Ended	9 Months Ended
	Aug. 11, 2021	Mar. 31, 2021	Jul. 31, 2020	Sep. 30, 2022	Sep. 30, 2022
ATM
Subsidiary or Equity Method Investee [Line Items]
Sales of common shares sold in IPO, net of offering costs (in shares)				1,000,000
Sale of stock, number of shares (in shares)				1,000,000
Proceeds from issuance or sale of equity				$ 39.2
Amount of shares remaining available for sale				$ 97.2	$ 97.2
ATM | Open Market Sale Agreement
Subsidiary or Equity Method Investee [Line Items]
Aggregate offering price of placement shares	$ 150		$ 75		$ 100
Commission (as a percent)	3%		3%
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
Proceeds from issuance of common shares, net		$ 245
Offering costs		15
Net proceeds from secondary offering		$ 230

Fair Value of Financial Asset_3

Fair Value of Financial Assets and Liabilities (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Assets:
Marketable securities	$ 286,799,000	$ 236,701,000
Liabilities measured at fair value	0	0
U.S. Treasury securities
Assets:
Marketable securities	177,220,000	16,212,000
U.S. government-sponsored enterprise securities
Assets:
Marketable securities	9,919,000
Commercial paper
Assets:
Marketable securities	9,767,000	99,898,000
Corporate bonds
Assets:
Marketable securities	89,893,000	120,591,000
Fair Value on Recurring Basis
Assets:
Total assets	371,113,000	407,843,000
Fair Value on Recurring Basis | U.S. Treasury securities
Assets:
Marketable securities	177,220,000	16,212,000
Fair Value on Recurring Basis | U.S. government-sponsored enterprise securities
Assets:
Marketable securities	9,919,000
Fair Value on Recurring Basis | Commercial paper
Assets:
Marketable securities	9,767,000	99,898,000
Fair Value on Recurring Basis | Corporate bonds
Assets:
Marketable securities	89,893,000	120,591,000
Fair Value on Recurring Basis | Money market funds
Assets:
Cash equivalents	84,314,000	171,142,000
Fair Value on Recurring Basis | Level 1
Assets:
Total assets	44,484,000	171,142,000
Fair Value on Recurring Basis | Level 1 | U.S. Treasury securities
Assets:
Marketable securities	0	0
Fair Value on Recurring Basis | Level 1 | U.S. government-sponsored enterprise securities
Assets:
Marketable securities	0
Fair Value on Recurring Basis | Level 1 | Commercial paper
Assets:
Marketable securities	0	0
Fair Value on Recurring Basis | Level 1 | Corporate bonds
Assets:
Marketable securities	0	0
Fair Value on Recurring Basis | Level 1 | Money market funds
Assets:
Cash equivalents	44,484,000	171,142,000
Fair Value on Recurring Basis | Level 2
Assets:
Total assets	326,629,000	236,701,000
Fair Value on Recurring Basis | Level 2 | U.S. Treasury securities
Assets:
Marketable securities	177,220,000	16,212,000
Fair Value on Recurring Basis | Level 2 | U.S. government-sponsored enterprise securities
Assets:
Marketable securities	9,919,000
Fair Value on Recurring Basis | Level 2 | Commercial paper
Assets:
Marketable securities	9,767,000	99,898,000
Fair Value on Recurring Basis | Level 2 | Corporate bonds
Assets:
Marketable securities	89,893,000	120,591,000
Fair Value on Recurring Basis | Level 2 | Money market funds
Assets:
Cash equivalents	39,830,000	0
Fair Value on Recurring Basis | Level 3
Assets:
Total assets	0	0
Fair Value on Recurring Basis | Level 3 | U.S. Treasury securities
Assets:
Marketable securities	0	0
Fair Value on Recurring Basis | Level 3 | U.S. government-sponsored enterprise securities
Assets:
Marketable securities	0
Fair Value on Recurring Basis | Level 3 | Commercial paper
Assets:
Marketable securities	0	0
Fair Value on Recurring Basis | Level 3 | Corporate bonds
Assets:
Marketable securities	0	0
Fair Value on Recurring Basis | Level 3 | Money market funds
Assets:
Cash equivalents	$ 0	$ 0

Marketable securities (Details)

Marketable securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Marketable securities
Amortized cost	$ 290,871	$ 237,158
Gross unrealized holding gains	0	0
Gross unrealized holding losses	(4,072)	(457)
Aggregate estimated fair value	286,799	236,701
Accrued interest receivable	1,200	1,200
U.S. government-sponsored enterprise securities
Marketable securities
Amortized cost	10,000
Gross unrealized holding gains	0
Gross unrealized holding losses	(81)
Aggregate estimated fair value	9,919
U.S. Treasury securities
Marketable securities
Amortized cost	179,332	16,224
Gross unrealized holding gains	0	0
Gross unrealized holding losses	(2,112)	(12)
Aggregate estimated fair value	177,220	16,212
Commercial paper
Marketable securities
Amortized cost	9,767	99,900
Gross unrealized holding gains	0	0
Gross unrealized holding losses	0	(2)
Aggregate estimated fair value	9,767	99,898
Corporate bonds
Marketable securities
Amortized cost	91,772	121,034
Gross unrealized holding gains	0	0
Gross unrealized holding losses	(1,879)	(443)
Aggregate estimated fair value	$ 89,893	$ 120,591

Cash, Cash Equivalents, and R_3

Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Aug. 31, 2021	Dec. 31, 2020
Restricted Cash [Abstract]
Letter of credit	$ 560			$ 275
Term of letter of credit (in years)	1 year
Cash and cash equivalents	$ 84,961	$ 171,434	$ 184,159		$ 102,047
Restricted cash	560	560	560		275
Total cash, cash equivalents, and restricted cash	$ 85,521	$ 171,994	$ 184,719		$ 102,322

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Payroll and related expenses	$ 4,645	$ 6,396
Research and development activities	3,985	4,268
Current portion of operating lease liability	1,462	1,211
Other expenses	782	963
Total	$ 10,874	$ 12,838

Equity-Based Compensation - 201

Equity-Based Compensation - 2019 equity incentive plan (Details) - 2019 Equity Incentive Plan - shares shares in Millions	Sep. 30, 2022	Jan. 31, 2022
Equity Based Compensation
Shares available for future issuance (in shares)		1.5
Number of shares available for issuance (in shares)	1.7

Equity-Based Compensation - Equ

Equity-Based Compensation - Equity based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Equity Based Compensation
Total equity-based compensation expense	$ 7,537	$ 5,791	$ 21,925	$ 15,541
Research and development expense
Equity Based Compensation
Total equity-based compensation expense	3,423	2,599	10,316	7,406
General and administrative expense
Equity Based Compensation
Total equity-based compensation expense	4,114	3,192	11,609	8,135
Stock options
Equity Based Compensation
Total equity-based compensation expense	6,674	5,403	19,459	14,448
Restricted common stock
Equity Based Compensation
Total equity-based compensation expense	0	71	5	224
Restricted stock units
Equity Based Compensation
Total equity-based compensation expense	756	163	2,151	385
Employee Stock Purchase Plan
Equity Based Compensation
Total equity-based compensation expense	$ 107	$ 154	$ 310	$ 484

Equity-Based Compensation - Sto

Equity-Based Compensation - Stock option awards (Details) - Stock options - $ / shares	9 Months Ended
	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at the beginning (in shares)	4,781,565
Granted (in shares)	1,470,368
Exercised (in shares)	(411,031)
Forfeited or expired (in shares)	(441,934)
Outstanding at the end (in shares)	5,398,968
Options exercisable at the end (in shares)	2,704,979
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at the beginning (in dollars per share)	$ 20.03
Granted (in dollars per share)	39.94
Exercised (in dollars per share)	11.24
Forfeited or expired (in dollars per share)	33.35
Outstanding at the end (in dollars per share)	25.04
Options exercisable at the end (in dollars per share)	$ 18.64

Equity-Based Compensation - Res

Equity-Based Compensation - Restricted stock units activity (Details) - 2019 Equity Incentive Plan - Restricted stock units	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Number of Shares
Outstanding at the beginning (in shares) | shares	7,000
Granted (in shares) | shares	291,970
Vested (in shares) | shares	(3,500)
Forfeited (in shares) | shares	(32,200)
Outstanding at the end (in shares) | shares	263,270
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	$ 57.73
Granted (in dollars per share) | $ / shares	43.98
Vested (in dollars per share) | $ / shares	57.73
Forfeited (in dollars per share) | $ / shares	44.75
Outstanding at the end (in dollars per share) | $ / shares	$ 44.07

Option and License Agreements -

Option and License Agreements - Narrative (Details) $ in Thousands		1 Months Ended					3 Months Ended			9 Months Ended		12 Months Ended
	Aug. 11, 2021 USD ($)	Jun. 30, 2022	Dec. 31, 2021 USD ($) program	Feb. 28, 2021 USD ($)	Aug. 31, 2020 USD ($)	Jul. 31, 2020 USD ($)	Sep. 30, 2022 USD ($) program	Jun. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) program	Sep. 30, 2021 USD ($)	Dec. 31, 2019 USD ($) program
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue							$ 2,055		$ 3,124	$ 64,673	$ 10,238
AbbVie
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Notification period		180 days
Collaboration revenue					$ 20,000
AbbVie | License
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of research programs | program							3			3
Revenue recognized								$ 57,700
Collaboration revenue							$ 890		1,476	$ 60,140	5,043
Deferred revenue							400			400
Janssen | License
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue							1,165		1,648	4,533	5,195
Deferred revenue							5,800			5,800
Due from Janssen			$ 2,300				700			700
Janssen | Upfront Payment Revenue, First Two Programs
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of research programs | program			2									2
Collaboration revenue												$ 10,000
Janssen | Upfront payment revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue				$ 5,000			$ 503		$ 372	1,829	$ 1,281
Number of integrin targets | program			2
ATM | Open Market Sale Agreement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Aggregate offering price of placement shares	$ 150,000					$ 75,000				$ 100,000

Option and License Agreements_2

Option and License Agreements - Costs incurred and revenue recognized (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
	Feb. 28, 2021	Aug. 31, 2020	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			$ 2,055	$ 3,124	$ 64,673	$ 10,238
Costs incurred			33,548	28,242	101,488	84,498
AbbVie
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue		$ 20,000
AbbVie | License
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			890	1,476	60,140	5,043
Costs incurred			30	1,206	631	4,374
Janssen | Reimbursement revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			662	1,276	2,704	3,914
Janssen | Upfront payment revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue	$ 5,000		503	372	1,829	1,281
Janssen | License
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration revenue			1,165	1,648	4,533	5,195
Costs incurred			$ 530	$ 1,118	$ 2,258	$ 3,388

Net Loss per Share - Basic and

Net Loss per Share - Basic and diluted net income (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Net loss	$ (30,021)	$ 26,841	$ (31,484)	$ (25,041)	$ (27,815)	$ (21,284)	$ (34,664)	$ (74,140)
Weighted average common shares outstanding, basic (in shares)	38,490,910			36,547,222			37,961,262	35,392,153
Weighted average common shares outstanding, diluted (in shares)	38,490,910			36,547,222			37,961,262	35,392,153
Net loss per share, basic (in dollars per share)	$ (0.78)			$ (0.69)			$ (0.91)	$ (2.09)
Net loss per share, diluted (in dollars per share)	$ (0.78)			$ (0.69)			$ (0.91)	$ (2.09)

Net Loss per Share - Common sto

Net Loss per Share - Common stock equivalent shares (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities (in shares)	5,662,238	5,151,983	5,662,238	5,151,983
Restricted common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities (in shares)	0	24,393	0	24,393
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities (in shares)	263,270	41,095	263,270	41,095
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities (in shares)	5,398,968	5,086,495	5,398,968	5,086,495

Net Loss per Share - Narrative

Net Loss per Share - Narrative (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities (in shares)	5,662,238	5,151,983	5,662,238	5,151,983
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti‑dilutive securities (in shares)			1,142,204