Odonate Therapeutics (ODTC) 10-Q 14 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 07, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, $0.01 par value per share
Entity File Number	001-38318
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-2493065
Trading Symbol	ODT
Security Exchange Name	NASDAQ
Entity Registrant Name	Odonate Therapeutics, Inc.
Entity Central Index Key	0001717452
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Small Business	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		38,507,109
Entity Address, State or Province	NY
Entity Shell Company	false
Entity Address, Address Line One	3 East 28th Street
Entity Address, Address Line Two	10th Floor
Entity Address, City or Town	New York
Entity Address, Postal Zip Code	10016
City Area Code	332
Local Phone Number	206-0935
Document Quarterly Report	true
Document Transition Report	false

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash	$ 133,160	$ 157,265
Prepaid expenses and other current assets	2,943	2,607
Total current assets	136,103	159,872
Property and equipment, net	2,132	2,286
Right-of-use lease assets	3,876	4,017
Restricted cash	714	714
Other	54	997
Total assets	142,879	167,886
Current liabilities:
Accounts payable	15,252	14,168
Accrued expenses	17,128	12,247
Lease liabilities, current portion	715	658
Total current liabilities	33,095	27,073
Lease liabilities, less current portion	4,483	4,668
Total liabilities	37,578	31,741
Commitments and contingencies (Note 5)
Stockholders’ equity:
Common stock, $0.01 par value—100,000,000 shares authorized; 38,507,109 and 38,562,281 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively	368	367
Additional paid-in capital	505,128	502,205
Accumulated deficit	(400,195)	(366,427)
Total stockholders’ equity	105,301	136,145
Total liabilities and stockholders’ equity	$ 142,879	$ 167,886

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Common stock, par or stated value per share	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	38,507,109	38,562,281
Common stock, shares outstanding	38,507,109	38,562,281

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating expenses:
Research and development	$ 30,928	$ 27,947
General and administrative	2,890	2,874
Total operating expenses	33,818	30,821
Loss from operations	(33,818)	(30,821)
Other income, net	50	658
Net loss	$ (33,768)	$ (30,163)
Net loss per share:
Basic and diluted	$ (0.90)	$ (0.99)
Weighted-average shares outstanding:
Basic and diluted	37,400,369	30,610,696

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2019	$ 162,300	$ 300	$ 402,077	$ (240,077)
Beginning balance, shares at Dec. 31, 2019		32,050,906
Issuance of common stock under employee stock plans	521	$ 1	520
Issuance of common stock under employee stock plans, shares		27,532
Forfeiture of common stock underlying incentive units, shares		(2,343)
Equity-based compensation expense	2,586		2,586
Net loss	(30,163)			(30,163)
Ending balance at Mar. 31, 2020	135,244	$ 301	405,183	(270,240)
Ending balance, shares at Mar. 31, 2020		32,076,095
Beginning balance at Dec. 31, 2020	$ 136,145	$ 367	502,205	(366,427)
Beginning balance, shares at Dec. 31, 2020		38,562,281
Issuance of common stock, net of issuance costs, shares	842,105
Issuance of common stock under employee stock plans	$ 825	$ 1	824
Issuance of common stock under employee stock plans, shares		53,979
Forfeiture of common stock underlying incentive units, shares		(109,151)
Equity-based compensation expense	2,099		2,099
Net loss	(33,768)			(33,768)
Ending balance at Mar. 31, 2021	$ 105,301	$ 368	$ 505,128	$ (400,195)
Ending balance, shares at Mar. 31, 2021		38,507,109

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net loss	$ (33,768)	$ (30,163)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity-based compensation expense	2,099	2,586
Depreciation and amortization	126	62
Non-cash lease expense	141
Loss on disposal of property and equipment	53
Changes in operating assets and liabilities:
Prepaid expenses and other assets	607	(624)
Accounts payable	1,080	(696)
Accrued expenses	4,881	990
Lease liabilities	(128)
Net cash used in operating activities	(24,909)	(27,845)
Cash flows from investing activities:
Purchases of property and equipment	(21)	(19)
Net cash used in investing activities	(21)	(19)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock plans	825	521
Net cash provided by financing activities	825	521
Net decrease in cash and restricted cash	(24,105)	(27,343)
Cash and restricted cash, beginning of period	157,979	181,174
Cash and restricted cash, end of period	133,874	153,831
Supplemental disclosure of cash flow information:
Property and equipment purchases included in accounts payable	$ 4	$ 7

Business

Business	3 Months Ended
	Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Business	1. Business Odonate Therapeutics, Inc. (“Odonate” or the “Company”) is a pharmaceutical company formerly focused on the development of tesetaxel, an investigational, orally administered chemotherapy agent that belongs to a class of drugs known as taxanes, which are widely used in the treatment of cancer. The Company recently announced the discontinuation of development of tesetaxel and its intent to wind down tesetaxel-related operations. The Company is working with clinical sites to transition patients in ongoing tesetaxel studies to appropriate alternative therapies or facilitate continuation of treatment with tesetaxel under compassionate use programs where appropriate. As of March 31, 2021, the Company had $133.2 million in cash. The Company has incurred operating losses and negative cash flows from operations since inception. Management believes that the Company’s existing cash will be sufficient to meet the Company’s anticipated cash requirements through at least one year from the date this Quarterly Report on Form 10-Q is filed with the U.S. Securities and Exchange Commission (the “SEC”).

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The Company’s condensed financial statements contained in this Quarterly Report on Form 10-Q have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) The preparation of the Company’s condensed financial statements requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s condensed financial statements and accompanying notes. The most significant estimates and assumptions in the Company’s condensed financial statements relate to accrued expenses and equity-based compensation expense. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. Summary of Significant Accounting Policies During the three months ended March 31, 2021, other than the policy described below, there were no changes to the Company’s significant accounting policies as described in Note 2 to the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Restructuring Expense The Company recognizes and measures a liability for one-time employee termination benefits for which no future service is required once the plan of termination meets all of the following criteria for an established communication date: (i) management commits to a plan of termination; (ii) the plan identifies the number of employees to be terminated and their job classifications or functions, locations and the expected completion date; (iii) the plan establishes the terms of the benefit arrangement; and (iv) it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. For one-time termination benefits for which future service is required, a liability is measured at the communication date based on its fair value as of the termination date and recognized ratably over the future service period. The Company recognizes and measures a liability for other related costs in the period in which the liability is incurred. Recent Accounting Pronouncements The Company has considered all recently issued accounting pronouncements and has concluded that there are no recently issued accounting pronouncements that may have a material impact on its results of operations, financial condition or cash flows based on current information.

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Net Loss per Share	3. Net Loss per Share Basic net loss per share is calculated by dividing net loss by the weighted-average common shares outstanding during the period, without consideration of common stock equivalents. The basic net loss per share calculation excludes 584,515 and 1,451,202 outstanding shares of common stock held by Odonate Holdings, LLC (“Odonate Holdings”) as of March 31, 2021 and 2020, respectively, to be used to settle incentive units previously issued under the Odonate Management Holdings Equity Incentive Plan (the “Management Plan”). These shares of common stock are subject to transfer to the Company and cancellation until such incentive units are vested and exercised and, as such, are considered common stock equivalents. Therefore, the shares of common stock held by Odonate Holdings are excluded from the basic net loss per share calculation until the incentive units are exercised. Diluted net loss per share is calculated by adjusting the weighted-average common shares outstanding for the dilutive effect of common stock equivalents outstanding for the period. Common stock equivalents, which consist of shares of common stock underlying incentive units and vested stock options, were excluded from the calculation of diluted net loss per share because they were anti-dilutive.

Balance Sheet Details

Balance Sheet Details	3 Months Ended
	Mar. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Details	4. Balance Sheet Details Property and equipment consisted of the following (in thousands): March 31, December 31, 2021 2020 Leasehold improvements $ 1,955 $ 1,955 Office equipment 731 791 Furniture and fixtures 514 514 Software 130 130 Total gross property and equipment 3,330 3,390 Less accumulated depreciation and amortization (1,198 ) (1,104 ) Property and equipment, net $ 2,132 $ 2,286 Depreciation and amortization expense was $0.1 million for both the three months ended March 31, 2021 and 2020. Accrued expenses consisted of the following (in thousands): March 31, December 31, 2021 2020 Accrued clinical development costs $ 8,701 $ 9,537 Accrued restructuring expense 5,357 - Accrued compensation and related expenses 2,648 2,658 Other accrued expenses 422 52 Total accrued expenses $ 17,128 $ 12,247

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	5. Commitments and Contingencies Lease Commitments In February 2018, the Company entered into an agreement to lease office space in New York, New York (the “New York Lease”) with aggregate payments of approximately $2.8 million over the 7-year term of the lease. The New York Lease commenced in October 2018. The Company has an option to extend the New York Lease for an additional three years at the end of the initial term. The Company can assign or sublease the premises with prior written consent from the landlord. If the Company proposes to assign or sublease all or substantially all of the premises for all or substantially all of the remaining term, the landlord has an option to terminate the lease. Further, the Company provided a standby letter of credit of $0.3 million in lieu of a security deposit during the term of the lease, subject to a reduction 3.5 years after the lease commencement. As of March 31, 2021, $0.3 million was pledged as collateral for the letter of credit and recorded as restricted cash. The New York lease is classified as an operating lease. In March 2018, the Company entered into an agreement, which was amended in August 2019, to lease office space in San Diego, California (the “Old San Diego Lease”) with aggregate payments of approximately $1.0 million over the 2.3-year term of the lease. The Old San Diego Lease commenced in March 2018. The Old San Diego Lease is classified as an operating lease. In October 2019, the Company entered into an agreement to lease office space in San Diego, California (the “New San Diego Lease”) with aggregate payments of approximately $4.1 million over the 7.5-year term of the lease. The New San Diego Lease commenced in July 2020. The Company has an option to extend the New San Diego Lease for an additional 5 years at the end of the initial term. The Company can assign or sublease the premises with prior written consent from the landlord. If the Company proposes to assign or sublease greater than 70% of the premises, the landlord has an option to terminate the lease. Further, the Company provided a standby letter of credit of $0.5 million in lieu of a security deposit during the term of the lease, subject to certain reductions beginning 4 years after the lease commencement. As of March 31, 2021, $0.5 million was pledged as collateral for the letter of credit and recorded as restricted cash. The New San Diego Lease is classified as an operating lease. The Company recorded lease liabilities and right-of-use lease assets for the operating leases based on the present value of lease payments over the expected lease term, discounted using the Company’s incremental borrowing rate. The options to extend the operating leases were not recognized as part of the Company’s lease liabilities and right-of-use lease assets. As of March 31, 2021, the weighted-average remaining lease term and the weighted-average discount rate for the operating leases was 6.1 Future minimum lease payments under operating leases as of March 31, 2021 are as follows (in thousands): 2021 $ 679 2022 935 2023 980 2024 1,010 2025 953 Thereafter 1,299 Total future minimum lease payments 5,856 Less discount (658 ) Total lease liabilities $ 5,198 Other Commitments The Company enters into contracts in the normal course of business with contract development and manufacturing organizations and other service providers and vendors. These contracts generally provide for termination on notice and, therefore, are cancellable contracts and not considered contractual obligations and commitments. Contingencies From time to time, the Company may become subject to claims and litigation arising in the ordinary course of business. Other than as described below, the Company is not a party to any material legal proceedings, nor is it aware of any material pending or threatened litigation. On September 16, 2020, a putative class action lawsuit was filed on behalf of stockholders of the Company against the Company, the Company’s Chief Executive Officer and the Company’s current and former Chief Financial Officers. The complaint was last amended on April 13, 2021. The complaint was filed in the United States District Court for the Southern District of California and alleges that the Company made material misrepresentations and omissions regarding the safety and tolerability of tesetaxel in the Company’s public statements in violation of federal securities laws. The lawsuit seeks damages allegedly sustained by the class and an award of plaintiffs’ costs and attorney fees. The Company believes that the complaint is without merit and that it has substantive defenses to the claims of liability and damages. The Company filed a motion to dismiss the complaint on May 13, 2021. Due to the early stage of this matter, the Company is unable to estimate the possible loss or range of loss, if any, that may result from this matter.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Stockholders' Equity	6. Stockholders’ Equity On September 1, 2020, the Company closed an underwritten public offering of 5,614,036 shares of common stock at a public offering price of $14.25 per share (collectively with the underwriters’ option, the “September 2020 Offering”). The underwriters exercised in full their option to purchase 842,105 additional shares of common stock. The aggregate gross proceeds from the September 2020 Offering were $92.0 million, and the net proceeds were $87.4 million after deducting underwriting discounts and commissions and offering costs. On February 23, 2021, the Company entered into an Open Market Sale Agreement (the “Sale Agreement”), pursuant to which the Company may offer and sell shares of the Company’s common stock having an aggregate offering price of up to $100 million, from time to time, in “at the market” offerings. As of March 31, 2021, the Company has not sold any shares of common stock under the Sale Agreement.

Equity Incentive Plans

Equity Incentive Plans	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity Incentive Plans	7. Equity Incentive Plans 2017 Stock Option Plan A total of 6,300,000 shares of common stock have been reserved for issuance under the Odonate Therapeutics, Inc. 2017 Stock Option Plan (the “2017 Plan”). As of March 31, 2021, 1,072,055 shares of common stock remained available for future grants under the 2017 Plan. 2017 Employee Stock Purchase Plan In March 2021, with the announcement of the discontinuation of development of tesetaxel, the Compensation Committee of the Board of Directors of the Company approved suspending the Odonate Therapeutics, Inc. 2018 Employee Stock Purchase Plan (the “ESPP”). A total of 500,000 shares of common stock have been reserved for issuance under the ESPP. As of March 31, 2021, 403,856 shares of common stock remained available for future grants under the ESPP. Management Plan The Company no longer grants incentive units under the Management Plan. Equity Awards The activity related to equity awards, which are comprised of stock options and incentive units, during the three months ended March 31, 2021 is summarized as follows: Equity Awards Weighted- average Exercise Price per Share Weighted- average Remaining Contractual Term (1) (years) Aggregate Intrinsic Value (2) (millions) Outstanding at December 31, 2020 7,229,526 $ 18.16 Granted 44,429 $ 20.45 Exercised (706,757 ) $ 1.47 Cancelled/forfeited (1,057,596 ) $ 23.47 Outstanding at March 31, 2021 5,509,602 $ 19.30 7.2 $ 0.2 Exercisable at March 31, 2021 1,962,400 $ 15.77 5.6 $ 0.2 (1) (2) The total intrinsic value of equity awards exercised during the three months ended March 31, 2021 and 2020 was $2.5 million and $0.3 million, respectively. The total fair value of equity awards vested during the three months ended March 31, 2021 and 2020 was $2.2 million and $2.7 million, respectively. Equity-based Compensation Expense For the three months ended March 31, 2021 and 2020, the weighted-average grant-date fair value per share was $11.26 and $25.22, respectively. The Company estimated the fair value of each stock option on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended March 31, 2021 2020 Expected volatility 79% 81% Expected term 10 years 10 years Risk-free interest rate 0.9% 1.9% Expected dividend yield 0% 0% Under the ESPP, eligible employees may purchase shares of the Company’s common stock twice per month at a price equal to 85% of the closing price of shares of the Company’s common stock on the date of each purchase. , which is equal to a 15% discount on the shares of the Company’s common stock purchased, is recognized as equity-based compensation expense on the date of each purchase. The classification of equity-based compensation expense is summarized as follows (in thousands): Three Months Ended March 31, 2021 2020 Equity-based compensation expense: Research and development $ 1,829 $ 2,302 General and administrative 270 284 Total equity-based compensation expense $ 2,099 $ 2,586 As of March 31, 2021, total unrecognized compensation cost related to unvested equity awards was $54.7 million, which is estimated to be recognized over a weighted-average period of 2.5

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes For the three months ended March 31, 2021 and 2020, the Company did not recognize a provision for income taxes due to having recorded a full valuation allowance against its deferred tax assets. As of March 31, 2021 and December 31, 2020, the Company established a full valuation allowance against its deferred tax assets due to the uncertainty surrounding the realization of such assets.

License Agreement

License Agreement	3 Months Ended
	Mar. 31, 2021
License Agreement [Abstract]
License Agreement	9. License Agreement In 2013, the Company licensed rights to tesetaxel in all major markets from Daiichi Sankyo Company, Limited (“Daiichi Sankyo”), the original inventor of the product. Under the Daiichi Sankyo license agreement, the Company is obligated to use commercially reasonable efforts to develop and commercialize tesetaxel in the following countries: France, Germany, Italy, Spain, the United Kingdom and the U.S. The Company is required to make aggregate future milestone payments of up to $31.0 million, contingent on attainment of certain regulatory milestones. Additionally, the Company is obligated to pay Daiichi Sankyo a tiered royalty that ranges from the low to high single digits, depending on annual net sales of tesetaxel. To date, no payments have been made to Daiichi Sankyo under the license agreement. The license agreement and accompanying royalty obligation terminate on a country- by-country basis on the last-to-expire patent in each such country, which the Company expects will be between 2026 and 2031 in the U.S., 2025 and 2030 in European countries and 2025 and 2030 in Japan, depending on the availability and application of patent term extensions.

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2021
Restructuring Charges [Abstract]
Restructuring	10. Restructuring In March 2021, the Company announced the discontinuation of development of tesetaxel and its intent to wind down tesetaxel-related operations. Additionally, the Company committed to a plan of termination involving the termination of certain employees previously supporting the development of tesetaxel (the “Restructuring”) . The Company estimates it will incur aggregate expense related to the Restructuring of $12.0 million, with substantially all of such expense being incurred by June 30, 2021. For the three months ended March 31, 2021, the Company recorded restructuring expense of $5.5 million, consisting of one-time employee termination benefits to the affected employees, including severance and healthcare benefits. The classification of restructuring expense is summarized as follows (in thousands): Three Months Ended March 31, 2021 2020 Restructuring expense: Research and development $ 5,465 $ - General and administrative 17 - Total restructuring expense $ 5,482 $ - The activity related to accrued restructuring expense, which is recorded as accrued expenses, during the three months ended March 31, 2021 is summarized as follows (in thousands): Restructuring Expense Accrued restructuring expense at December 31, 2020 $ - Additions 5,482 Cash payments (125 ) Accrued restructuring expense at March 31, 2021 $ 5,357

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation and Use of Estimates	Basis of Presentation and Use of Estimates The Company’s condensed financial statements contained in this Quarterly Report on Form 10-Q have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) The preparation of the Company’s condensed financial statements requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s condensed financial statements and accompanying notes. The most significant estimates and assumptions in the Company’s condensed financial statements relate to accrued expenses and equity-based compensation expense. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected.
Restructuring Expense	Restructuring Expense The Company recognizes and measures a liability for one-time employee termination benefits for which no future service is required once the plan of termination meets all of the following criteria for an established communication date: (i) management commits to a plan of termination; (ii) the plan identifies the number of employees to be terminated and their job classifications or functions, locations and the expected completion date; (iii) the plan establishes the terms of the benefit arrangement; and (iv) it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. For one-time termination benefits for which future service is required, a liability is measured at the communication date based on its fair value as of the termination date and recognized ratably over the future service period. The Company recognizes and measures a liability for other related costs in the period in which the liability is incurred.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company has considered all recently issued accounting pronouncements and has concluded that there are no recently issued accounting pronouncements that may have a material impact on its results of operations, financial condition or cash flows based on current information.
Net Loss per Share	Basic net loss per share is calculated by dividing net loss by the weighted-average common shares outstanding during the period, without consideration of common stock equivalents. The basic net loss per share calculation excludes 584,515 and 1,451,202 outstanding shares of common stock held by Odonate Holdings, LLC (“Odonate Holdings”) as of March 31, 2021 and 2020, respectively, to be used to settle incentive units previously issued under the Odonate Management Holdings Equity Incentive Plan (the “Management Plan”). These shares of common stock are subject to transfer to the Company and cancellation until such incentive units are vested and exercised and, as such, are considered common stock equivalents. Therefore, the shares of common stock held by Odonate Holdings are excluded from the basic net loss per share calculation until the incentive units are exercised.Diluted net loss per share is calculated by adjusting the weighted-average common shares outstanding for the dilutive effect of common stock equivalents outstanding for the period. Common stock equivalents, which consist of shares of common stock underlying incentive units and vested stock options, were excluded from the calculation of diluted net loss per share because they were anti-dilutive.

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	3 Months Ended
	Mar. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Summary of Property and Equipment	Property and equipment consisted of the following (in thousands): March 31, December 31, 2021 2020 Leasehold improvements $ 1,955 $ 1,955 Office equipment 731 791 Furniture and fixtures 514 514 Software 130 130 Total gross property and equipment 3,330 3,390 Less accumulated depreciation and amortization (1,198 ) (1,104 ) Property and equipment, net $ 2,132 $ 2,286
Summary of Accrued Expenses	Accrued expenses consisted of the following (in thousands): March 31, December 31, 2021 2020 Accrued clinical development costs $ 8,701 $ 9,537 Accrued restructuring expense 5,357 - Accrued compensation and related expenses 2,648 2,658 Other accrued expenses 422 52 Total accrued expenses $ 17,128 $ 12,247

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Future Minimum Lease Payments	Future minimum lease payments under operating leases as of March 31, 2021 are as follows (in thousands): 2021 $ 679 2022 935 2023 980 2024 1,010 2025 953 Thereafter 1,299 Total future minimum lease payments 5,856 Less discount (658 ) Total lease liabilities $ 5,198

Equity Incentive Plans (Tables)

Equity Incentive Plans (Tables)	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Activity Related to Equity Awards Comprised of Stock Options and Incentive Units	The activity related to equity awards, which are comprised of stock options and incentive units, during the three months ended March 31, 2021 is summarized as follows: Equity Awards Weighted- average Exercise Price per Share Weighted- average Remaining Contractual Term (1) (years) Aggregate Intrinsic Value (2) (millions) Outstanding at December 31, 2020 7,229,526 $ 18.16 Granted 44,429 $ 20.45 Exercised (706,757 ) $ 1.47 Cancelled/forfeited (1,057,596 ) $ 23.47 Outstanding at March 31, 2021 5,509,602 $ 19.30 7.2 $ 0.2 Exercisable at March 31, 2021 1,962,400 $ 15.77 5.6 $ 0.2 (1) (2)
Schedule of Estimated Fair Value of Equity Award on Grant Date Using Black-Scholes Option-pricing Model	The Company estimated the fair value of each stock option on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended March 31, 2021 2020 Expected volatility 79% 81% Expected term 10 years 10 years Risk-free interest rate 0.9% 1.9% Expected dividend yield 0% 0%
Summary of Equity-based Compensation Expense	The classification of equity-based compensation expense is summarized as follows (in thousands): Three Months Ended March 31, 2021 2020 Equity-based compensation expense: Research and development $ 1,829 $ 2,302 General and administrative 270 284 Total equity-based compensation expense $ 2,099 $ 2,586

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Mar. 31, 2021
Restructuring Charges [Abstract]
Summary of Restructuring Expense	The classification of restructuring expense is summarized as follows (in thousands): Three Months Ended March 31, 2021 2020 Restructuring expense: Research and development $ 5,465 $ - General and administrative 17 - Total restructuring expense $ 5,482 $ -
Schedule of Accrued Restructuring Expense	The activity related to accrued restructuring expense, which is recorded as accrued expenses, during the three months ended March 31, 2021 is summarized as follows (in thousands): Restructuring Expense Accrued restructuring expense at December 31, 2020 $ - Additions 5,482 Cash payments (125 ) Accrued restructuring expense at March 31, 2021 $ 5,357

Business - Additional Informati

Business - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Cash	$ 133,160	$ 157,265
Cash requirements minimum period	1 year

Net Loss per Share - Additional

Net Loss per Share - Additional Information (Details) - shares	Mar. 31, 2021	Mar. 31, 2020
Management Plan
Earnings Per Share Basic [Line Items]
Outstanding shares of common stock underlying incentive units	584,515	1,451,202

Balance Sheet Details - Summary

Balance Sheet Details - Summary of Property And Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Total gross property and equipment	$ 3,330	$ 3,390
Less accumulated depreciation and amortization	(1,198)	(1,104)
Property and equipment, net	2,132	2,286
Leasehold Improvements
Property Plant And Equipment [Line Items]
Total gross property and equipment	1,955	1,955
Office Equipment
Property Plant And Equipment [Line Items]
Total gross property and equipment	731	791
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Total gross property and equipment	514	514
Software
Property Plant And Equipment [Line Items]
Total gross property and equipment	$ 130	$ 130

Balance Sheet Details - Additio

Balance Sheet Details - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Depreciation and amortization	$ 126	$ 62

Balance Sheet Details - Summa_2

Balance Sheet Details - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Payables And Accruals [Abstract]
Accrued clinical development costs	$ 8,701	$ 9,537
Accrued restructuring expense	5,357
Accrued compensation and related expenses	2,648	2,658
Other accrued expenses	422	52
Total accrued expenses	$ 17,128	$ 12,247

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended
	Oct. 01, 2019	Mar. 31, 2018	Feb. 28, 2018	Mar. 31, 2021	Mar. 31, 2020
Operating Lease [Line Items]
Aggregate payments under lease				$ 5,856
Aggregate payment of rental expense				$ 200	$ 200
Operating lease, Weighted average remaining lease term				6 years 1 month 6 days
Operating lease, Weighted average discount rate, Percent				4.00%
Cash paid for amounts included in measurement of lease liabilities				$ 200	$ 100
New York
Operating Lease [Line Items]
Aggregate payments under lease			$ 2,800
Lease initial term			7 years
Existence of option to extend			true
Additional lease extended term			3 years
Restricted cash				300
Lease commencement period			2018-10
San Diego
Operating Lease [Line Items]
Aggregate payments under lease	$ 4,100	$ 1,000
Lease initial term	7 years 6 months	2 years 3 months 18 days
Existence of option to extend	true
Additional lease extended term	5 years
Restricted cash				$ 500
Lease commencement period	2020-07	2018-03
San Diego | Minimum
Operating Lease [Line Items]
Sublease percentage	70.00%
Letter of Credit | New York
Operating Lease [Line Items]
Security deposit			$ 300
Period of reduction in security deposit			3 years 6 months
Letter of Credit | San Diego
Operating Lease [Line Items]
Security deposit	$ 500
Period of reduction in security deposit	4 years

Commitments and Contingencies_2

Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands	Mar. 31, 2021USD ($)
Commitments And Contingencies Disclosure [Abstract]
2021	$ 679
2022	935
2023	980
2024	1,010
2025	953
Thereafter	1,299
Total future minimum lease payments	5,856
Less discount	(658)
Total lease liabilities	$ 5,198

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 23, 2021	Sep. 01, 2020	Mar. 31, 2021
Subsidiary Sale Of Stock [Line Items]
Net proceeds from sale of common stock		$ 87.4
Gross proceeds from sale of common stock		$ 92
Sale of common stock, number of shares issued		5,614,036	842,105
Sale of common stock, price per share		$ 14.25
Sale Agreement | Maximum
Subsidiary Sale Of Stock [Line Items]
At-the-market offering, aggregate offering price	$ 100

Equity Incentive Plans - Additi

Equity Incentive Plans - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total intrinsic value of equity awards exercised	$ 2,500,000	$ 300,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 2,200,000	$ 2,700,000
Weighted average grant-date fair value per equity award	$ 11.26	$ 25.22
Unrecognized equity-based compensation expense not yet recognized	$ 54,700,000
Unrecognized equity-based compensation expense not yet recognized, period for recognition	2 years 6 months
2017 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock reserved for issuance	6,300,000
Common stock available for future grants	1,072,055
ESPP
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock reserved for issuance	500,000
Common stock available for future grants	403,856
Purchase price of common stock as percentage of fair value of common stock	85.00%
Percentage of discount to employees on purchase of common stock	15.00%
Unrecognized equity-based compensation expense not yet recognized	$ 0
Management Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding shares of common stock underlying incentive units	584,515

Equity Incentive Plans - Summar

Equity Incentive Plans - Summary of Activity Related to Equity Awards Comprised of Stock Options and Incentive Units (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)$ / sharesshares
Equity Awards
Equity awards outstanding, Beginning balance | shares	7,229,526
Equity awards, Granted | shares	44,429
Equity awards, Exercised | shares	(706,757)
Equity awards, Cancelled/forfeited | shares	(1,057,596)
Equity awards outstanding, Ending balance | shares	5,509,602
Equity awards exercisable | shares	1,962,400
Weighted Average Exercise Price per Share
Weighted average exercise price per share outstanding, Beginning balance | $ / shares	$ 18.16
Weighted average exercise price per share outstanding, Granted | $ / shares	20.45
Weighted average exercise price per share outstanding, Exercised | $ / shares	1.47
Weighted average exercise price per share outstanding, Cancelled/forfeited | $ / shares	23.47
Weighted average exercise price per share outstanding, Ending balance | $ / shares	19.30
Weighted average exercise price per share, Exercisable | $ / shares	$ 15.77
Weighted-Average Remaining Contractual Term
Weighted average remaining contractual term (years), outstanding	7 years 2 months 12 days
Weighted average remaining contractual term (years), exercisable	5 years 7 months 6 days
Aggregate Intrinsic Value, Outstanding | $	$ 0.2
Aggregate Intrinsic Value, Exercisable | $	$ 0.2

Equity Incentive Plans - Summ_2

Equity Incentive Plans - Summary of Activity Related to Equity Awards Comprised of Stock Options and Incentive Units (Parenthetical) (Details)	Mar. 31, 2021$ / shares
Stockholders Equity Note [Abstract]
Share price	$ 3.42

Equity Incentive Plans - Schedu

Equity Incentive Plans - Schedule of Estimated Fair Value of Equity Award on Grant Date Using Black-Scholes Option-pricing Model (Details)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Expected volatility	79.00%	81.00%
Expected term	10 years	10 years
Risk-free interest rate	0.90%	1.90%
Expected dividend yield	0.00%	0.00%

Equity Incentive plans - Summ_3

Equity Incentive plans - Summary of Equity-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total equity-based compensation expense	$ 2,099	$ 2,586
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total equity-based compensation expense	1,829	2,302
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total equity-based compensation expense	$ 270	$ 284

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 0	$ 0
Unrecognized tax benefits	$ 0		$ 0

License Agreement - Additional

License Agreement - Additional Information (Details) $ in Millions	Dec. 31, 2013USD ($)
Tesetaxel | Daiichi Sankyo
License Agreement [Line Items]
Aggregate future milestone payments	$ 31

Restructuring - Additional Info

Restructuring - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Restructuring And Related Activities [Abstract]
Restructuring expenses	$ 5,482
Expected restructuring expenses	$ 12,000

Restructuring - Summary of Rest

Restructuring - Summary of Restructuring Expense (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Restructuring Cost And Reserve [Line Items]
Total restructuring expense	$ 5,482
Research and Development
Restructuring Cost And Reserve [Line Items]
Total restructuring expense	5,465
General and Administrative
Restructuring Cost And Reserve [Line Items]
Total restructuring expense	$ 17

Restructuring - Schedule of Acc

Restructuring - Schedule of Accrued Restructuring Expense (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Restructuring And Related Activities [Abstract]
Additions	$ 5,482
Cash payments	(125)
Accrued restructuring expense	$ 5,357