Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38419 | |
Entity Registrant Name | Arcus Biosciences, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3898435 | |
Entity Address, Address Line One | 3928 Point Eden Way | |
Entity Address, City or Town | Hayward | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94545 | |
City Area Code | 510 | |
Local Phone Number | 694-6200 | |
Title of 12(b) Security | Common Stock, Par Value $0.0001 Per Share | |
Trading Symbol | RCUS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 90,953,011 | |
Entity Central Index Key | 0001724521 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Total revenues | $ 145 | $ 25 |
Operating expenses: | ||
Research and development (Net of recoveries of $16 and $33 from a related party) | 109 | 81 |
General and administrative | 32 | 30 |
Impairment of long-lived assets | 20 | 0 |
Total operating expenses | 161 | 111 |
Loss from operations | (16) | (86) |
Non-operating income (expense): | ||
Interest and other income, net | 13 | 9 |
Effective interest on liability for sale of future royalties | (1) | (1) |
Total non-operating income, net | 12 | 8 |
Loss before income taxes | (4) | (78) |
Income tax expense | 0 | (2) |
Net loss | $ (4) | $ (80) |
Net loss per share, basic (in dollars per share) | $ (0.05) | $ (1.09) |
Net loss per share, diluted (in dollars per share) | $ (0.05) | $ (1.09) |
Shares used to compute loss per share, basic (in shares) | 86.2 | 73 |
Shares used to compute loss per share, diluted (in shares) | 86.2 | 73 |
License and Development Services Revenue | ||
Revenues: | ||
Total revenues | $ 135 | $ 17 |
Other Collaboration Revenue | ||
Revenues: | ||
Total revenues | $ 10 | $ 8 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from contract with customer, excluding assessed tax | $ 145 | $ 25 |
Related Party | ||
Research and development expense, net of recoveries | 16 | 33 |
License and Development Services Revenue | ||
Revenue from contract with customer, excluding assessed tax | 135 | 17 |
License and Development Services Revenue | Related Party | ||
Revenue from contract with customer, excluding assessed tax | 131 | 17 |
Other Collaboration Revenue | ||
Revenue from contract with customer, excluding assessed tax | 10 | 8 |
Other Collaboration Revenue | Related Party | ||
Revenue from contract with customer, excluding assessed tax | $ 10 | $ 8 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net loss | $ (4) | $ (80) |
Other comprehensive income (loss) | (1) | 3 |
Comprehensive loss | $ (5) | $ (77) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 185 | $ 127 |
Marketable securities | 810 | 632 |
Receivable from collaboration partners ($21 and $20 from a related party) | 35 | 38 |
Prepaid expenses and other current assets | 34 | 34 |
Total current assets | 1,064 | 831 |
Long-term marketable securities | 100 | 107 |
Property and equipment, net | 51 | 51 |
Other noncurrent assets ($— and $6 from a related party) | 78 | 106 |
Total assets | 1,293 | 1,095 |
Current liabilities: | ||
Accounts payable | 16 | 17 |
Deferred revenue ($112 and $84 to a related party) | 124 | 91 |
Other current liabilities | 64 | 76 |
Total current liabilities | 204 | 184 |
Deferred revenue, noncurrent ($209 and $291 to a related party) | 242 | 307 |
Other noncurrent liabilities | 140 | 142 |
Commitments | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital: $0.0001 par value per share; 400.0 shares authorized; 90.9 shares in 2024 and 75.5 shares in 2023 issued and outstanding | 1,561 | 1,311 |
Accumulated deficit | (853) | (849) |
Accumulated other comprehensive loss | (1) | 0 |
Total stockholders’ equity | 707 | 462 |
Total liabilities and stockholders’ equity | $ 1,293 | $ 1,095 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Receivable from collaboration partners, current | $ 35 | $ 38 |
Other noncurrent assets | 78 | 106 |
Deferred revenue, current | 124 | 91 |
Deferred revenue, noncurrent | $ 242 | $ 307 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 400 | 400 |
Common stock, shares issued (in shares) | 90.9 | 75.5 |
Common stock, shares outstanding (in shares) | 90.9 | 75.5 |
Related Party | ||
Receivable from collaboration partners, current | $ 21 | $ 20 |
Other noncurrent assets | 0 | 6 |
Deferred revenue, current | 112 | 84 |
Deferred revenue, noncurrent | $ 209 | $ 291 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Equity Award Programs | Common Stock | Common Stock Equity Award Programs | Common stock and additional paid-in capital | Common stock and additional paid-in capital Equity Award Programs | Accumulated deficit | Accumulated other comprehensive loss |
Beginning balance, shares at Dec. 31, 2022 | 72.9 | |||||||
Beginning balance at Dec. 31, 2022 | $ 657 | $ 1,206 | $ (542) | $ (7) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock (in shares) | 0.2 | |||||||
Issuance of common stock | $ 1 | $ 1 | ||||||
Stock-based compensation | 19 | 19 | ||||||
Other comprehensive income (loss) | 3 | 3 | ||||||
Net loss | (80) | (80) | ||||||
Ending balance, shares at Mar. 31, 2023 | 73.1 | |||||||
Ending balance at Mar. 31, 2023 | $ 600 | 1,226 | (622) | (4) | ||||
Beginning balance, shares at Dec. 31, 2023 | 75.5 | 75.5 | ||||||
Beginning balance at Dec. 31, 2023 | $ 462 | 1,311 | (849) | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock (in shares) | 15.2 | 0.2 | ||||||
Issuance of common stock | 228 | $ 2 | 228 | $ 2 | ||||
Stock-based compensation | 20 | 20 | ||||||
Other comprehensive income (loss) | (1) | (1) | ||||||
Net loss | $ (4) | (4) | ||||||
Ending balance, shares at Mar. 31, 2024 | 90.9 | 90.9 | ||||||
Ending balance at Mar. 31, 2024 | $ 707 | $ 1,561 | $ (853) | $ (1) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flow from operating activities | ||
Net loss | $ (4) | $ (80) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 20 | 19 |
Depreciation and amortization | 3 | 2 |
Noncash lease expense | 2 | 2 |
Impairment of long-lived assets | 20 | 0 |
Amortization of discounts on marketable securities | (6) | (4) |
Other items, net | 0 | 1 |
Changes in operating assets and liabilities: | ||
Receivable from collaboration partners (($1) and $6 from a related party) | 13 | 6 |
Other assets ($6 and ($1) from a related party) | 5 | (8) |
Accounts payable | (1) | 10 |
Deferred revenue (($54) and ($25) to a related party) | (42) | (25) |
Other liabilities | (12) | (21) |
Net cash used in operating activities | (2) | (98) |
Cash flow from investing activities | ||
Purchases of marketable securities | (387) | (154) |
Proceeds from maturities of marketable securities | 222 | 284 |
Proceeds from sales of marketable securities | 0 | 2 |
Purchases of property and equipment | (4) | (3) |
Net cash provided by (used in) investing activities | (169) | 129 |
Cash flow from financing activities | ||
Proceeds from issuance of common stock ($228 and $— from a related party) | 228 | 0 |
Proceeds from issuance of common stock pursuant to equity award plans | 1 | 1 |
Net cash provided by financing activities | 229 | 1 |
Net increase in cash, cash equivalents and restricted cash | 58 | 32 |
Cash, cash equivalents and restricted cash at beginning of period | 130 | 209 |
Cash, cash equivalents and restricted cash at end of period | 188 | 241 |
Non-cash investing and financing activities: | ||
Unpaid portion of property and equipment purchases included in Accounts payable and Other current liabilities | $ 1 | $ 4 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Receivable from collaboration partners | $ 13 | $ 6 |
Other assets | 5 | (8) |
Deferred revenue | (42) | (25) |
Proceeds from issuance of common stock | 228 | 0 |
Related Party | ||
Receivable from collaboration partners | (1) | 6 |
Other assets | (6) | 1 |
Deferred revenue | (54) | (25) |
Proceeds from issuance of common stock | $ 228 | $ 0 |
Organization, Liquidity and Cap
Organization, Liquidity and Capital Resources | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Liquidity and Capital Resources | Organization, liquidity and capital resources Organization Arcus Biosciences, Inc. (referred to as "Arcus," "we," "our," "us," or the "Company") is a clinical-stage biopharmaceutical company focused on creating best-in-class therapies. Using our robust and highly efficient drug discovery capability, we have created a significant portfolio of investigational products which are in clinical development, with our most advanced molecule, an anti-TIGIT antibody, now in multiple Phase 3 registrational studies targeting lung and gastrointestinal cancers. Our deep portfolio of novel small molecules and enabling antibodies allows us to create highly differentiated therapies, which we are developing to treat multiple large indications. We operate and manage our business as one reportable and operating segment, which is the business of developing and commercializing highly differentiated therapies that have a meaningful impact on patients. Liquidity and Capital Resources As of March 31, 2024, we had cash, cash equivalents and marketable securities of $1.1 billion, which we believe will be sufficient to fund our planned operations for a period of at least twelve months following the date of filing of this report. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of significant accounting policies Basis of Presentation These interim financial statements should be read in conjunction with the audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 21, 2024. There have been no significant changes to our accounting policies as described in Note 2, Summary of significant accounting policies, in the notes to the Consolidated Financial Statements in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2023. These interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and include all normal and recurring adjustments that management believes are necessary for a fair presentation of the periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2023 has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any future period. Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. We base our estimates on historical experience and on various market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are assessed and updated each period to reflect current information. Actual results may differ materially from those estimates. Recent Accounting Pronouncements There have been no new accounting pronouncements issued or adopted during the period with a significant impact to our financial statements. |
Related Party - Gilead Sciences
Related Party - Gilead Sciences, Inc. | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party - Gilead Sciences, Inc. | Related party - Gilead Sciences, Inc. In 2020, we and Gilead entered into an Option, License and Collaboration Agreement (the "Gilead Collaboration Agreement"), Common Stock Purchase Agreement (the "Stock Purchase Agreement"), and Investor Rights Agreement (the "Investor Rights Agreement"). In 2021, we amended the Gilead Collaboration Agreement (the "First Gilead Collaboration Agreement Amendment") and the Stock Purchase Agreement (the "First Stock Purchase Agreement Amendment"). In 2022, we amended the Investor Rights Agreement (the "First Investor Rights Agreement Amendment"). In 2023, we further amended the Gilead Collaboration Agreement (the "Second Gilead Collaboration Agreement Amendment") and the Stock Purchase Agreement (the "Second Stock Purchase Agreement Amendment"). In January 2024, we further amended the Gilead Collaboration Agreement (the "Third Gilead Collaboration Agreement Amendment"), amended and restated our stock purchase agreements (the "Third Stock Purchase Agreement Amendment") and amended and restated our investor rights agreement (the "Second Investor Rights Agreement Amendment"). We refer to these agreements collectively as the Gilead Agreements. Stock Purchase and Investor Rights Agreements In June 2023, under the Second Stock Purchase Agreement Amendment, Gilead purchased 1.0 million shares of our common stock for total gross proceeds of $20 million. In January 2024, under the Third Stock Purchase Agreement Amendment, Gilead purchased 15.2 million shares of our common stock for total gross proceeds of $320 million, of which $87 million was determined to be a premium on the purchase of common stock and allocated to the performance obligations under the Third Gilead Collaboration Agreement Amendment, see Note 5, Revenues. Gilead has the right, at its option until July 2025, to purchase up to a maximum of 35% of the Company’s then-outstanding voting common stock, at a purchase price equal to the greater of a 20% premium to market (based on a trailing five-day average closing price at option exercise) or the $33.54 initial purchase price. Based on the value of our common stock at each contract closing, the right to purchase additional shares had no value. Under the Investor Rights Agreement entered into in 2020 and subsequently amended, Gilead has: the right to designate three members of our board of directors; registration rights for shares that it purchases; and pro rata participation rights in certain future financings. Gilead has exercised its rights to appoint all three board members and we have registered all shares purchased to date. As of March 31, 2024, Gilead held approximately 33.1% of our outstanding common stock arising from purchases in our May 2020 public offering and purchases under the Stock Purchase Agreement and the related amendments. Collaboration Agreements In 2020, we entered into the Gilead Collaboration Agreement, which gave Gilead an exclusive license to develop and commercialize zimberelimab (the anti PD-1 program) in certain markets and time-limited options to acquire exclusive licenses to develop and commercialize any of our then-current and future clinical programs arising during the 10-year collaboration term, contingent upon $100 million option continuation payments payable on each of the second, fourth, sixth and eighth anniversaries of the agreement. Upon closing of the transaction in July 2020, Gilead made an upfront payment of $175 million. In 2021, we entered into the First Gilead Collaboration Agreement Amendment pursuant to which Gilead exercised its option to three programs—providing Gilead with exclusive licenses to develop and commercialize domvanalimab and AB308 (collectively, the anti-TIGIT program), etrumadenant (the adenosine receptor antagonist program) and quemliclustat (the CD73 program), in certain markets—for a total payment of $725 million that was received in 2022. The amendment also (i) provided for a slight reduction in the royalties for these three programs, such that Gilead will pay us tiered royalties as a percentage of revenues ranging from the mid-teens to the low twenties; and (ii) removed the $100 million option continuation payment that was otherwise due on the second anniversary of the Gilead Collaboration Agreement. Gilead's option, on a program-by-program basis, will expire after a prescribed period following the achievement of a clinical development milestone in such program and our delivery to Gilead of the requisite data package. Gilead may exercise its option to any program at any time prior to expiration of the option and will pay Arcus an option fee of $150 million per program. With respect to domvanalimab, we are also eligible to receive up to $500 million in potential U.S. regulatory approval milestones. For each program that Gilead opts in to, both companies will co-develop and equally share global development costs, subject to certain opt-out rights that we have, caps on our spending and related subsequent adjustments, and certain other exceptions. For each program, provided we have not exercised our opt-out rights, we have the option to co-promote in the U.S. with equal sharing of related profits and losses. Gilead has the right to exclusively commercialize outside of the U.S., subject to the rights of our existing partners in any territories and will pay us tiered royalties as a percentage of revenues ranging from the high teens to the low twenties. Under the First Gilead Collaboration Agreement Amendment, Gilead also has option rights to two oncology research programs for which we will lead discovery and early development activities. With respect to these two research programs, Gilead has the right to exercise its option, on a program-by-program basis, either (i) upon our completion of certain IND-enabling activities for an option payment of $60 million or (ii) following the achievement of a clinical development milestone for an option payment of $150 million. These research programs were not determined to be performance obligations at contract inception, due to the very early stages of the programs. In May 2023, we entered into the Second Gilead Collaboration Agreement Amendment pursuant to which we expanded our collaboration to provide Gilead with options to license up to four jointly selected research-stage programs that target inflammatory diseases for which we will lead discovery and early development activities. We will receive an upfront payment of $17.5 million for each initiated program and Gilead will have an option to license each program at two separate, prespecified time points. For the first two research programs, Gilead has the right to exercise its option, on a program-by-program basis, either (i) upon our completion of certain IND-enabling activities for an option payment of $45 million or (ii) following the achievement of a clinical development milestone for an option payment of $150 million. If Gilead exercises its option at the earlier time point for the first two programs, we would be eligible to receive up to $375 million in regulatory and commercial milestone payments as well as tiered royalties for each optioned program. For any other program option exercise by Gilead, the parties would have rights to co-develop and share global development costs and to co-commercialize and share profits in the U.S. for that program. We received a total upfront payment of $35 million for an initial two research programs in June 2023. For the other two research programs, Gilead’s options expire unless the programs are selected prior to May 2024. In January 2024, we entered into the Third Gilead Collaboration Agreement Amendment. The Third Gilead Collaboration Agreement Amendment, among other things, (i) requires Gilead to pay the $100 million option continuation payment due on the fourth anniversary of the Gilead Collaboration Agreement, (ii) provides that we will operationalize and fund a Phase 3 study we plan to initiate to evaluate quemliclustat in pancreatic cancer subject to Gilead’s right to reinstate the study as part of the parties’ joint development activities upon regulatory approval, (iii) provides that we will solely fund our share of PACIFIC-8, subject to Gilead’s right to reinstate PACIFIC-8 as part of the parties’ joint development activities for the TIGIT Program in the first quarter of 2026, and (iv) provides that we will fund certain other activities. All other terms of the existing collaboration agreements, remain unchanged. As of March 31, 2024, Gilead has licenses to domvanalimab, AB308, etrumadenant, quemliclustat and zimberelimab. For the three months ended March 31, 2024 and 2023, we recognized revenue under the Gilead Agreements of $141 million and $25 million, respectively, and net reimbursements from Gilead recognized as reductions in research and development ("R&D") expense of $16 million and $33 million, respectively. For a more detailed discussion on revenues recognized under the Gilead Agreements, see Note 5, Revenues. |
License and Collaborations
License and Collaborations | 3 Months Ended |
Mar. 31, 2024 | |
License and Collaboration Agreements [Abstract] | |
License and Collaborations | License and collaborations We enter into licensing agreements, strategic collaborations and other similar arrangements with third parties for the development and commercialization of certain investigational products. These arrangements may be collaborative and involve two or more parties who are active participants in the operating activities of the collaboration and are exposed to significant risks and rewards depending on the commercial success of the activities. These arrangements may include: non-refundable upfront payments; payments for options to acquire certain rights; potential development and regulatory milestone payments and/or sales-based milestone payments; royalty payments; revenue or profit-sharing arrangements; expense reimbursements; and cost-sharing arrangements. Operating expenses for costs incurred pursuant to these arrangements are reported in their respective expense line items in the Condensed Consolidated Statements of Operations, net of any payments due to or reimbursements due from our collaboration partners, with such reimbursements being recognized at the time the party becomes obligated to pay. Our significant arrangements are discussed below. Gilead Collaboration See Note 3, Related party - Gilead Sciences, Inc. Taiho Collaboration In 2017, we entered into an agreement with Taiho Pharmaceutical Co., Ltd (“Taiho”) under which we granted them exclusive options to programs arising over a five-year period which ended in September 2022 for an upfront payment of $35 million. Upon an option exercise of a program, Taiho would obtain exclusive development and commercialization rights to investigational products under the program for the Taiho Territory. For each option that Taiho exercises, they will be obligated to make a payment of $3 million to $15 million, depending on the development stage of the optioned program. Upon exercise, Taiho is solely responsible for continued development and commercialization in the Taiho Territory. In addition, for each optioned program we would be eligible to receive clinical and regulatory milestones of up to $130 million and commercial milestone payments of up to $145 million with the achievement of certain sales thresholds in the Taiho Territory. We will also receive royalties ranging from high single-digits to mid-teens on net sales of licensed products in the Taiho Territory. Royalties will be payable by product and country commencing on the first commercial sale and ending upon the later of: (a) 10 years; and (b) expiration of the last-to-expire valid claim of our patents covering the manufacture, use or sale. As of March 31, 2024, Taiho has licenses for the Taiho Territory to (i) etrumadenant (the adenosine receptor antagonist program); (ii) zimberelimab (the anti PD-1 program); and (iii) domvanalimab and AB308 (the anti-TIGIT program). During 2022, Taiho opted to participate in two global Phase 3 trials of domvanalimab and zimberelimab combinations, STAR-121 and STAR-221, and became obligated to make certain milestone payments contingent upon successfully satisfying the related clinical milestones. During the quarter ended September 30, 2023, the clinical milestones for domvanalimab and zimberelimab for the STAR-221 study were met and Taiho became obligated to pay us $28 million which was fully received as of March 31, 2024. In January 2024, the clinical milestones for domvanalimab and zimberelimab for the STAR-121 study were met and Taiho became obligated to pay us $26 million of which $16 million has been received as of March 31, 2024 with the remaining $10 million due in the first quarter of 2025. For the three months ended March 31, 2024, we recognized revenue of $4 million under this arrangement. For a more detailed discussion on revenues see Note 5, Revenues. For the three months ended March 31, 2024, we recognized net reimbursements from Taiho as a reduction in R&D expense of $3 million. At March 31, 2024 and December 31, 2023, we had $10 million and $14 million, respectively, recorded in Receivable from collaboration partners on our Condensed Consolidated Balance Sheets. AstraZeneca Collaboration In 2020, we entered into a collaboration with AstraZeneca to evaluate domvanalimab, our investigational anti-TIGIT antibody, in combination with AstraZeneca’s durvalumab in a registrational Phase 3 clinical trial in patients with unresectable Stage 3 NSCLC, known as the PACIFIC-8 trial. The terms of this agreement were amended in January 2024. Under the collaboration, as amended, each company will retain existing rights to their respective molecules and any future commercial economics. AstraZeneca will conduct the trial, and each company will supply their respective investigational product to support the trial. We may incur milestones of up to $24 million upon the achievement of certain clinical trial progress milestones or under certain circumstances if the agreement is terminated early and we will reimburse AstraZeneca annually for a portion of the trial costs. The portion of the costs that we consider to be unavoidable are accrued as incurred and milestones that are deemed probable of occurring are accrued in advance of the achievement of the milestone. For the three months ended March 31, 2024 and 2023, we recognized as R&D expense $3 million and $2 million, respectively under this arrangement. At March 31, 2024, we have recognized a liability of $2 million related to our obligation to AstraZeneca, which are recorded in Other current liabilities. At March 31, 2024 and December 31, 2023, we have recognized liabilities of $12 million and $11 million, respectively, related to our obligation to AstraZeneca which is recorded in Other noncurrent liabilities on our Condensed Consolidated Balance Sheets. Prior to January 2024, the PACIFIC-8 trial formed part of the Arcus and Gilead joint development program for domvanalimab and our portion of the trial costs were shared with Gilead. At December 31, 2023, we had recognized amounts due from Gilead for these shared costs of $6 million, recorded in Other noncurrent assets on our Condensed Consolidated Balance Sheet. Under the Third Gilead Collaboration Agreement Amendment, we agreed to solely fund our share of PACIFIC-8, subject to Gilead’s right to reinstate PACIFIC-8 as part of the parties’ joint development activities for the TIGIT Program in the first quarter of 2026. For the three months ended March 31, 2024, we incurred $6 million of R&D expense reflecting our additional share of incurred costs. WuXi Biologics License - anti-PD-1 In 2017, we entered into an agreement with WuXi Biologics Ireland Limited ("WuXi Biologics") which, as amended, provides us with exclusive rights to (i) develop, use and manufacture products that include an anti-PD-1 antibody, including zimberelimab, worldwide and (ii) commercialize any such products worldwide, except in Greater China. Under the agreement, as of March 31, 2024, we may incur (i) regulatory milestone payments of up to $50 million for zimberelimab, and commercialization milestone payments of up to $375 million, (ii) tiered royalties that range from the high single-digits to low teens on net sales of the licensed products and (iii) fees related to any sublicenses. For the three months ended March 31, 2024 and 2023, we did not have any milestones or royalties due under this arrangement. WuXi Biologics License - anti-CD39 In 2020, we entered into an agreement with WuXi Biologics, under which we obtained the exclusive worldwide license to develop and commercialize anti-CD39 antibodies discovered under the agreement. As of March 31, 2024, we may incur additional clinical and regulatory milestone payments of up to $14 million and royalty payments in the low single digits on net sales of the licensed products under this agreement. For the three months ended March 31, 2023, we incurred development milestones of $1 million related to this arrangement, which were recognized as R&D expense. Abmuno License In 2016, we entered into an agreement (the "Abmuno Agreement") with Abmuno Therapeutics LLC ("Abmuno"), under which we obtained the exclusive worldwide license to develop, use, manufacture, and commercialize products that include an anti-TIGIT antibody, including domvanalimab. Under the agreement, as of March 31, 2024 we may incur additional clinical, regulatory and commercialization milestone payments of up to $88 million. For the three months ended March 31, 2024 and 2023, we did not have any milestones due under this arrangement. Exelixis Collaboration In 2023, we entered into a clinical trial collaboration with Exelixis for STELLAR-009, a Phase 1b/2 trial to evaluate casdatifan, our investigational inhibitor of the transcription factor HIF-2⍺, in combination with Exelixis’s zanzalintinib, a next-generation tyrosine kinase inhibitor, in patients with clear cell renal cell carcinoma ("ccRCC"). Under the collaboration, each company will retain existing rights to their respective molecules and any future commercial economics. Exelixis will conduct the STELLAR-009 trial, and each company will supply their respective investigational product to support the trial. We will reimburse Exelixis for a portion of the trial costs. For the three months ended March 31, 2024, we recognized R&D expense of $1 million under this arrangement. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The following table summarizes our revenues by collaboration, category of revenue, and the method of recognition (in millions): Three Months Ended March 31, Over time Point in time 2024 2023 Gilead Collaboration License and R&D services * $ 133 $ 17 Access rights * 8 8 Taiho Collaboration R&D services * 4 — Total revenues $ 145 $ 25 Revenues from Gilead accounted for 97% and 100% of Total revenues for the three months ended March 31, 2024 and 2023, respectively. The following table summarizes the revenue recognized as a result of changes in the deferred revenue balance (in millions): Three Months Ended March 31, 2024 2023 Revenue recognized from amounts in deferred revenue at the beginning of the period $ 142 $ 25 At March 31, 2024 and December 31, 2023, we had $366 million and $398 million deferred revenue remaining on our Condensed Consolidated Balance Sheets, respectively, allocated between current and noncurrent based on the expected timing of future recognition. Deferred revenue at March 31, 2024 excludes the $100 million continuation payment that Gilead has committed to pay in the third quarter 2024 for continued access to our pipeline. Revenue from the Gilead Collaboration In 2021, we determined that the First Gilead Collaboration Agreement Amendment represented a contract modification which was accounted for as a termination of the existing contract and the creation of a new contract. On January 29, 2024, we entered into the Third Gilead Collaboration Agreement Amendment, which we determined was a change in scope and price of the original contract and we accounted for this contract modification as both a modification of the existing contract and the creation of a new contract. Under the applicable accounting rules for such contract modifications, we did not adjust the accounting for completed performance obligations that were distinct from the modified goods or services. However, we were required to adjust revenue previously recognized to reflect the effect of the contract modification due to the updated estimated transaction price allocated to the partially satisfied performance obligations and the updated measure of progress as of the modification date. Accordingly, we allocated the transaction price to the remaining performance obligations (both from the existing contract and the modification) and recognized a cumulative catch-up to revenue of $107 million based on the updated transaction price and measure of progress for the partially satisfied performance obligations. This cumulative catch-up reduced net loss per share, basic and diluted, in the current quarter by $1.24 (see Note 3, Related party - Gilead Sciences, Inc.). The following table summarizes the transaction price (in millions): Transaction price Amount Premium from Third Stock Purchase Agreement Amendment $ 87 Option continuation - payment due in the third quarter 2024 100 Deferred revenues as of January 29, 2024 335 Total transaction price $ 522 Our assessment of the updated transaction price for the Third Gilead Collaboration Agreement Amendment included an analysis of amounts we expected to receive, which at contract amendment consisted of: the $100 million option continuation payment that Gilead has committed to pay in the third quarter 2024 for continued access to our pipeline; $87 million allocated from the premium from the Third Stock Purchase agreement; and $335 million deferred revenue remaining from the First Gilead Collaboration Agreement Amendment effective December 2021. We determined the entire $522 million to be the allocable transaction price as of the amendment closing date, due to the history of timely payments by Gilead. The following table summarizes the allocation of the transaction price to the performance obligations (in millions): Allocation to performance obligations Distinct Combined Amount Etrumadenant - License and R&D services * $ 210 Quemliclustat - License and R&D services * 168 Domvanalimab - R&D services * 33 Access rights * 57 Option continuation periods * 20 Rights to certain studies * 34 Total allocated transaction price $ 522 We accounted for each performance obligation as follows: Etrumadenant - License and R&D Services Under the Gilead Collaboration Agreement, Gilead obtained an option to the exclusive rights to our adenosine receptor program, etrumadenant, in exchange for an option payment of $250 million, if exercised. Effective December 2021, under the First Gilead Collaboration Agreement Amendment, Gilead exercised the option and obtained an exclusive license to etrumadenant and we were also obligated to perform further R&D services for Gilead related to etrumadenant. We determined that the license and R&D services were combined at inception of the agreement based on an evaluation of the delivery of the license, due to the early stage of the technology and the specialized nature of our know-how. We determined the standalone selling price of the license using a discounted cash flow method and the R&D services using an expected cost-plus margin approach. We recognize the amounts allocated to the combined license and services as the performance obligation is satisfied, calculated as an estimated percentage of completion based on management's estimated total effort for the program. Prior to the closing of the Third Gilead Collaboration Agreement Amendment, we had $129 million of deferred revenue on our Condensed Consolidated Balance Sheet related to this performance obligation. Effective January 29, 2024, under the Third Gilead Collaboration Agreement Amendment, this performance obligation was partially satisfied and there were no changes to the scope of the related R&D service obligation as a result of the amendment. We allocated the updated transaction price to this performance obligation based on the standalone selling price and adjusted revenue based on an updated measure of progress, which resulted in a cumulative catch-up of revenue of $14 million. We recognized revenue of $24 million (including the cumulative catch-up) and $8 million for the three months ended March 31, 2024 and 2023, respectively, within License and development services revenue in our Condensed Consolidated Statements of Operations related to this performance obligation. At March 31, 2024 and December 31, 2023, we had $189 million and $133 million, respectively, of deferred revenue remaining on our Condensed Consolidated Balance Sheets related to this performance obligation. Quemliclustat - License and R&D Services Under the Gilead Collaboration Agreement, Gilead obtained an option to the exclusive rights to our CD73 program, quemliclustat, in exchange for an option payment of $200 million, if exercised. Effective December 2021, under the First Gilead Collaboration Agreement Amendment, Gilead exercised the option and obtained an exclusive license to quemliclustat and we were also obligated to perform further R&D services for Gilead related to quemliclustat. We determined that the license and R&D services were combined at inception of the agreement based on an evaluation of the delivery of the license, due to the early stage of the technology and the specialized nature of our know-how. We determined the standalone selling price of the license using a discounted cash flow method and the R&D services using an expected cost-plus margin approach. We recognize the amounts allocated to the combined license and services as the performance obligation is satisfied, calculated as an estimated percentage of completion based on management's estimated total effort for the program. Prior to the closing of the Third Gilead Collaboration Agreement Amendment, we had $130 million of deferred revenue on our Condensed Consolidated Balance Sheet related to this performance obligation. Effective January 29, 2024, under the Third Gilead Collaboration Agreement Amendment, this performance obligation was partially satisfied and there was a reduction to the scope of the related R&D service obligation as a result of the amendment. Specifically, the amendment provides that we will independently initiate, operationalize and fund a Phase 3 study to evaluate quemliclustat in pancreatic cancer, which reduces our estimated obligation to perform further R&D services for Gilead related to quemliclustat under the collaboration. We allocated the updated transaction price to this performance obligation based on the standalone selling price and adjusted revenue based on an updated measure of progress which resulted in cumulative catch-up of revenue of $88 million. We recognized revenue of $100 million (including the cumulative catch-up) and $8 million for the three months ended March 31, 2024 and 2023, respectively, within License and development services revenue in our Condensed Consolidated Statements of Operations related to this performance obligation. At March 31, 2024 and December 31, 2023, we had $71 million and $132 million, respectively, of deferred revenue remaining on our Condensed Consolidated Balance Sheets related to this performance obligation. Domvanalimab - R&D Services Under the First Gilead Collaboration Agreement Amendment, we determined that we retain a separate performance obligation to perform further R&D services for Gilead related to domvanalimab. The standalone selling price of this obligation was determined using an expected cost-plus margin approach. We recognize the amounts allocated to these services as the performance obligation is satisfied, calculated as an estimated percentage of completion based on management's estimated total effort for the program. Prior to the closing of the Third Gilead Collaboration Agreement Amendment, we had $25 million of deferred revenue on our Condensed Consolidated Balance Sheet related to this performance obligation. Effective January 29, 2024, under the Third Gilead Collaboration Agreement Amendment, this performance obligation was partially satisfied and there were no significant changes to the scope of this obligation as a result of the amendment. We allocated the updated transaction price to this performance obligation based on the standalone selling price and adjusted revenue based on an updated measure of progress which resulted in cumulative catch-up of revenue of $5 million. We recognized revenue of $7 million (including the cumulative catch-up) and $1 million for the three months ended March 31, 2024 and 2023, respectively, within License and development services revenue in our Condensed Consolidated Statements of Operations related to this performance obligation. At March 31, 2024 and December 31, 2023, we had $27 million and $25 million, respectively, of deferred revenue remaining on our Condensed Consolidated Balance Sheets related to this performance obligation. Access Rights and Option Continuation Periods Under the First Gilead Collaboration Agreement Amendment, Gilead has exclusive access to our current programs as well as the future programs for a period of ten years, contingent upon option continuation payments totaling $300 million, consisting of a $100 million payment on each of the fourth, sixth, and eighth anniversaries of the Gilead Collaboration Agreement. Prior to the closing of the Third Gilead Collaboration Agreement Amendment, we had $51 million of deferred revenue on our Condensed Consolidated Balance Sheet related to these performance obligations. Effective January 29, 2024, under the Third Gilead Collaboration Agreement Amendment, Gilead agreed to pay the $100 million option continuation payment due on the fourth anniversary of the Gilead Collaboration Agreement, which occurs in the third quarter of 2024, and we included this payment in the transaction price. By exercising this right Gilead’s exclusive access to our current programs as well as the future programs is extended to 2026. We determined that as of the closing date of January 29, 2024, Gilead is not obligated to make the remaining contingent payments totaling $200 million due on the sixth and eighth anniversaries of the Gilead Collaboration Agreement and accordingly, we have excluded these payments from the transaction price. Failure to pay the non-obligatory option continuation payments will result in Gilead’s loss of certain rights to access and obtain licenses to the programs arising from our R&D pipeline. The standalone selling price of the ongoing R&D pipeline access and the option continuation material rights were determined using an expected cost-plus margin approach, with the option continuation material rights probability-adjusted for the likelihood of exercise. We use a time-elapsed input method to measure progress toward satisfying the access rights performance obligation, which is the method we believe most faithfully depicts the Company's performance in transferring the promised services during the time period in which Gilead has access to our R&D pipeline. Accordingly, the revenue allocated to the initial four-year access rights performance obligation is being recognized using this input method over the remaining period through July 2024, and for the access rights continuation, over the two-year period commencing July 2024. For the remaining access rights option continuation periods commencing on the sixth, and eighth anniversaries of the agreement, if Gilead elects to exercise their option, we will recognize the revenue allocated to that option together with the $100 million continuation payment over the new minimum access period or immediately if the option lapses. We recognized as revenue of $8 million and $8 million associated with the access rights performance obligation for each of the three months ended March 31, 2024 and 2023, within Other collaboration revenue in our Condensed Consolidated Statements of Operations related to these performance obligations. At March 31, 2024 and December 31, 2023, we had $71 million and $54 million, respectively, of deferred revenue on our Condensed Consolidated Balance Sheets related to these performance obligations. Rights to Certain Studies Effective January 29, 2024, under the Third Gilead Collaboration Agreement Amendment, we will solely fund, certain studies, but Gilead retains exclusive rights to reinstate into the collaboration each study at specified time-points for a payment. We have determined that these are material rights and we estimated the standalone selling price of these rights using a discounted cash flow method probability-adjusted for the likelihood of exercise. We will recognize the amount allocated to each right if and when the related study is reinstated into the parties' co-development plans or if the option lapses. At March 31, 2024, we had $34 million of deferred revenue remaining on our Condensed Consolidated Balance Sheet related to these performance obligations. Inflammation Programs - R&D Services In addition to the amendments noted above, in May 2023, we entered into the Second Gilead Collaboration Agreement Amendment pursuant to which we expanded our collaboration to provide Gilead with options to license up to four jointly selected research-stage programs that target inflammatory diseases for which we will lead discovery and early development activities (see Note 3, Related party - Gilead Sciences, Inc., for more information). In June 2023, we received a total upfront payment of $35 million for an initial two jointly selected research-stage programs. We determined that the Second Gilead Collaboration Agreement Amendment represented a separate contract and, at the amendment closing date, we allocated the transaction price of $35 million to the performance obligations created as of the date of this amendment. The following table summarizes the allocation of the transaction price to the distinct performance obligations (in millions): Allocation to performance obligations Distinct Amount Inflammation target 1 - R&D services * $ 18 Inflammation target 2 - R&D services * 17 Total allocated transaction price $ 35 We determined that we have separate performance obligations to perform R&D services for Gilead related to discovery and early development activities for each research program for which they have made an upfront payment. The standalone selling price of these obligations were determined using an expected cost-plus margin approach. We recognize the amounts allocated to these services as the performance obligation is satisfied, calculated as an estimated percentage of completion based on management's estimated total effort for the program. The options to acquire additional licenses or services did not result in additional performance obligations because they did not provide a material right at contract inception, primarily due to the very early stages of the programs. We recognized revenue of $2 million for the three months ended March 31, 2024, within Other collaboration revenue in our Condensed Consolidated Statements of Operations. At March 31, 2024 and December 31, 2023, we had $29 million and $31 million, respectively, of deferred revenue remaining on our Condensed Consolidated Balance Sheets related to these performance obligations. Revenue from the Taiho Collaboration Domvanalimab and Zimberelimab - R&D Services During 2022, Taiho opted to participate in two global Phase 3 trials of domvanalimab and zimberelimab combinations, STAR-121 and STAR-221, and became obligated to make certain milestone payments contingent upon successfully satisfying the related clinical milestones. During the quarter ended September 30, 2023, the clinical milestones for domvanalimab and zimberelimab for the STAR-221 study were met and Taiho became obligated to pay us $28 million which was fully received as of March 31, 2024. In January 2024, the clinical milestones for domvanalimab and zimberelimab for the STAR-121 study were met and Taiho became obligated to pay us $26 million of which $16 million has been received as of March 31, 2024 with the remaining $10 million due in the first quarter of 2025. We determined that we have separate performance obligations to perform R&D services for Taiho related to the global development activities for each study in support of the Taiho Territory and that the agreement for each study represented a separate contract at standalone selling price. The standalone selling price of these obligations were determined using an expected cost-plus margin approach. We recognize the amounts for these services as each performance obligation is satisfied, calculated as an estimated percentage of completion based on the estimated total effort for the programs. We recognized revenue of $4 million for the three months ended March 31, 2024 within License and development services revenue in our Condensed Consolidated Statements of Operations related to these performance obligations. At March 31, 2024 and December 31, 2023, we had $45 million and $23 million, respectively, of deferred revenue remaining on our Condensed Consolidated Balance Sheets related to these performance obligations, allocated between current and noncurrent based on the expected timing of future recognition. Capitalized Costs to Obtain Contracts We incurred $8 million of costs to obtain the Third Gilead Collaboration Agreement Amendment, Third Stock Purchase Agreement Amendment and the Second Investor Rights Agreement Amendment, which consisted of consultant fees that were payable upon the successful completion of the agreements. We determined that $5 million of these costs were related to the Third Stock Purchase Agreement Amendment which were recognized as offering costs in additional paid-in capital. The remaining costs were combined with $3 million in capitalized costs that remained from the initial Gilead Collaboration Agreement and subsequent amendments, and the total was allocated to the various remaining performance obligations, to be recognized as the underlying performance obligations are satisfied and revenue is recognized. For the three months ended March 31, 2024, we recognized $2 million of expense related to these capitalized costs in General and administrative ("G&A") expense, primarily due to the related cumulative catch-up of revenue. For the three months ended March 31, 2023, the recognized expense was not significant. At March 31, 2024 and December 31, 2023, we had $4 million and $3 million, respectively in capitalized costs to obtain the contracts, allocated between Prepaid expenses and other current assets and Other noncurrent assets in our Condensed Consolidated Balance Sheets based on the expected timing of future recognition. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes The income tax provision or benefit for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into consideration in the relevant period. Each quarter, we update the estimate of the annual effective tax rate, and if the estimated tax rate changes, we record a cumulative adjustment to the provision or benefit. We did not record a provision for income taxes for the three months ended March 31, 2024 because of a forecasted full year net operating loss. The income tax expense was $2 million for the three months ended March 31, 2023, with an effective tax rate of (2.3%). The year-over-year decrease in the income tax provision was due to a decrease in taxable income. For the year ended December 31, 2023, we had taxable income compared to book losses before income taxes due to the timing of recognition of deferred revenue for tax purposes and the effects of the mandatory capitalization and amortization of R&D expenses starting in 2022, as required by the 2017 Tax Cuts and Jobs Act. The effective tax rate differs from the U.S. statutory tax rate primarily due to the valuation allowances on our deferred tax assets and state income taxes. As of March 31, 2024 and December 31, 2023, we have provided a valuation allowance against U.S. federal and state deferred tax assets. We continue to evaluate the realizability of deferred tax assets and the related valuation allowance. If our assessment of the deferred tax assets or the corresponding valuation allowance were to change, we would record the related adjustment to income during the period in which we make the determination. We recognize interest and penalties associated with uncertain tax benefits as part of the income tax provision. To date, we have not recognized any interest and penalties, nor have we accrued for or made payments for interest and penalties. We have not been audited by the Internal Revenue Service, any state or foreign tax authority. We are subject to taxation in the U.S. and in Australia. Due to net operating loss and research credit carryforwards, all of our tax years, from 2015 to 2023, remain open to U.S. federal and California state tax examinations. In addition, our fiscal years from 2019 to 2023 are open to examination in Australia. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net loss per share The following table summarizes potentially dilutive securities excluded from the computation of diluted net loss per share calculations because they would have been antidilutive (in millions): March 31, 2024 March 31, 2023 Common stock options issued and outstanding 15.3 14.0 Restricted stock units issued 3.1 2.1 Employee Stock Purchase Plan shares 0.3 0.2 Total potential dilutive securities 18.7 16.3 We have also excluded the effect of Gilead’s right to purchase additional shares of our common stock from the calculation as these rights had no intrinsic value at either March 31, 2024 or 2023. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-based compensation Stock-based compensation expense The following table reflects the components of stock-based compensation expense recognized in our Condensed Consolidated Statements of Operations (in millions): Three Months Ended March 31, 2024 2023 Research and development $ 10 $ 9 General and administrative 10 10 Total stock-based compensation $ 20 $ 19 |
Cash, Cash Equivalents and Mark
Cash, Cash Equivalents and Marketable Securities | 3 Months Ended |
Mar. 31, 2024 | |
Cash, Cash Equivalents and Marketable Securities [Abstract] | |
Cash, Cash Equivalents and Marketable Securities | Cash, cash equivalents and marketable securities The following table summarizes the amortized cost, gross unrealized gains and losses and the fair value of our cash, cash equivalents and marketable securities, all of which are considered available for sale, by type of securities (in millions): Types of securities as of March 31, 2024 Amortized Cost Unrealized Gain Unrealized Loss Fair Value Money market funds $ 120 $ — $ — $ 120 U.S. treasury securities 321 — (1) 320 Corporate securities and commercial paper 601 — — 601 U.S. government agency securities 43 — — 43 Certificate of deposit 11 — — 11 Total cash, cash equivalents and marketable securities $ 1,096 $ — $ (1) $ 1,095 Types of securities as of December 31, 2023 Amortized Cost Unrealized Gain Unrealized Loss Fair Value Money market funds $ 85 $ — $ — $ 85 U.S. treasury securities 213 1 (1) 213 Corporate securities and commercial paper 471 — — 471 U.S. government agency securities 90 — — 90 Certificate of deposit 7 — — 7 Total cash, cash equivalents and marketable securities $ 866 $ 1 $ (1) $ 866 The following table summarizes the fair values of our cash, cash equivalents and marketable securities by location in the Condensed Consolidated Balance Sheets and contractual maturity (in millions): Location in Condensed Consolidated Balance Sheets Contractual Maturity March 31, 2024 December 31, 2023 Cash and cash equivalents — $ 185 $ 127 Marketable securities Within one year 810 632 Long-term marketable securities Between one and three years 100 107 Total cash, cash equivalents and marketable securities $ 1,095 $ 866 Realized gains or losses recognized on the sale of available-for-sale marketable securities were not material for the three months ended March 31, 2024 and 2023. Realized gains and losses are included in Interest and other income, net, in the Condensed Consolidated Statements of Operations. The cost of a security sold is determined using the specific-identification method. We limit the credit risk associated with our investments by placing them with banks and institutions we believe are highly credit worthy and investing in highly rated investments. We held a total of 113 and 105 positions in securities which were in unrealized loss positions as of March 31, 2024 and December 31, 2023, respectively. We do not intend to sell our securities with unrealized loss positions and have concluded we will not be required to sell the securities before recovery of the amortized cost for the investment at maturity. No credit related losses have been recognized for any of the periods presented. The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets to the total shown in the Condensed Consolidated Statements of Cash Flows (in millions): As of March 31, 2024 2023 Cash and cash equivalents $ 185 $ 238 Restricted cash (included in Other noncurrent assets) 3 3 Total cash, cash equivalents and restricted cash $ 188 $ 241 Restricted cash at March 31, 2024 and 2023 represents cash balances held as security in connection with our facility lease agreements. |
Condensed Consolidated Balanc_3
Condensed Consolidated Balance Sheet Components | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Condensed Consolidated Balance Sheet Components | Condensed consolidated balance sheet components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in millions): March 31, 2024 December 31, 2023 Prepaid expenses and other assets $ 29 $ 30 Accrued interest receivable 5 4 Total prepaid expenses and other current assets $ 34 $ 34 Other Current Liabilities Other current liabilities consisted of the following (in millions): March 31, 2024 December 31, 2023 Accrued research and development $ 37 $ 36 Accrued personnel expenses 15 26 Current portion of lease liabilities 11 11 Other 1 3 Total other current liabilities $ 64 $ 76 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The following table summarizes our cash and non-cash information related to our operating leases (in millions): Three Months Ended March 31, 2024 2023 Cash paid for amounts included in measurement of lease liabilities $ 4 $ 4 Recognition of tenant improvement allowance receivable included in Other current liabilities $ — $ 4 In the first quarter of 2024, we evaluated our plans for a portion of our office space that we expect to sublease, and identified indicators of impairment to certain right-of-use assets associated with the leased space where the asset value was determined to be non-recoverable based upon a discounted cash flow analysis, resulting in an impairment charge of $20 million for the three months ended March 31, 2024. As of March 31, 2024 and December 31, 2023, we have provided deposits for letters of credit totaling $3 million to secure our obligations under our leases, which are included in Other noncurrent assets on the Condensed Consolidated Balance Sheets. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' equity Common Stock Gilead Stock Purchase Agreement |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair value measurements We determine the fair value of financial and non-financial assets and liabilities using the fair value hierarchy, which establishes three levels of inputs that may be used to measure fair value, as follows: • Level 1 inputs include unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 inputs include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and • Level 3 inputs include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Our Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables summarize the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in millions): Fair value measurement as of March 31, 2024 Level 1 Level 2 Level 3 Total Assets Money market funds $ 120 $ — $ — $ 120 U.S. treasury securities — 320 — 320 Corporate securities and commercial paper — 601 — 601 U.S. government agency obligations — 43 — 43 Certificate of deposit — 11 — 11 Total assets measured at fair value $ 120 $ 975 $ — $ 1,095 Liabilities Liability for sale of future royalties $ — $ — $ 20 $ 20 Total liabilities measured at fair value $ — $ — $ 20 $ 20 Fair value measurement as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets Money market funds $ 85 $ — $ — $ 85 U.S. treasury securities — 213 — 213 Corporate securities and commercial paper — 471 — 471 U.S. government agency obligations — 90 — 90 Certificate of deposit — 7 — 7 Total assets measured at fair value $ 85 $ 781 $ — $ 866 Liabilities Liability for sale of future royalties $ — $ — $ 19 $ 19 Total liabilities measured at fair value $ — $ — $ 19 $ 19 Liability for sale of future royalties In 2021, we entered into an agreement with BVF Partners L.P. ("BVF"), under which BVF funded the discovery and development of compounds for the treatment of inflammatory diseases (the "BVF Program") for $15 million in non-refundable payments which were paid in 2021 and 2022. In return, we are obligated to: perform R&D activities in the BVF Program; make contingent payments upon the achievement of certain clinical and regulatory milestones of up to $73 million or $160 million depending on whether the BVF Program is solely developed by us or with Gilead if they opt-in under the Gilead Collaboration Agreement; and pay mid- to high-single digit royalties on any net product sales generated by the BVF Program. We account for the BVF agreement as a liability primarily because we have significant continuing involvement in generating the cash flows due to BVF. The liability is recorded at fair value by using probability-adjusted discounted cash flows and is revalued each reporting period until the related contingencies have been resolved. The fair value measurement is based on significant unobservable inputs that are reviewed quarterly by management and include, as applicable, estimated probabilities and the timing of achieving specified development, regulatory and commercial milestones as well as estimated annual sales. Significant changes that increase or decrease the probabilities of achieving the related development, regulatory and commercial events or that shorten or lengthen the time required to achieve such events or that increase or decrease estimated annual sales would result in corresponding increases or decreases in the fair values of the obligations, as applicable. Changes in the fair value of this liability related to interest accretion are recognized in Non-operating income (expense) in the Condensed Consolidated Statements of Operations. During the second quarter of 2023, new preclinical information from our BVF Program led to revised assumptions which decreased the estimated probabilities of success and delayed the projected timing of achieving specified development, regulatory and commercial milestones and commercial sales. These changes in estimates are accounted for prospectively and resulted in a decrease in the imputed effective interest rate on the unamortized portion of the liability to 10.1% commencing with the quarter ended June 30, 2023, compared to 20.6% for the quarters ended March 31, 2023 and prior. The impact of this change on the non-cash interest expense for the three months ended March 31, 2024 was not material when compared to the prior year period. The liability for sale of future royalties is reported in Other noncurrent liabilities in the Condensed Consolidated Balance Sheets and changes were as follows (in millions): Three Months Ended March 31, 2024 2023 Beginning balance $ 19 $ 17 Interest accretion 1 1 Ending balance $ 20 $ 18 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net loss | $ (4) | $ (80) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | The adoption, modification or termination of contracts, instructions or written plans for the purchase or sale of our securities by our Section 16 officers and directors for the three months ended March 31, 2024, which are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, were as follows: Name and Title Action Date Total Shares to be Sold Expiration Date Robert C. Goeltz, II Chief Financial Officer Amendment March 1, 2024 67,125 January 30, 2026 |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Robert C. Goeltz, II [Member] | |
Trading Arrangements, by Individual | |
Name | Robert C. Goeltz, II |
Title | Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 1, 2024 |
Arrangement Duration | 700 days |
Aggregate Available | 67,125,000,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These interim financial statements should be read in conjunction with the audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 21, 2024. There have been no significant changes to our accounting policies as described in Note 2, Summary of significant accounting policies, in the notes to the Consolidated Financial Statements in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2023. These interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and include all normal and recurring adjustments that management believes are necessary for a fair presentation of the periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2023 has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. |
Use of Estimates | Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. We base our estimates on historical experience and on various market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Estimates are assessed and updated each period to reflect current information. Actual results may differ materially from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have been no new accounting pronouncements issued or adopted during the period with a significant impact to our financial statements. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenues by Collaboration, Category of Revenue and Method of Recognition | The following table summarizes our revenues by collaboration, category of revenue, and the method of recognition (in millions): Three Months Ended March 31, Over time Point in time 2024 2023 Gilead Collaboration License and R&D services * $ 133 $ 17 Access rights * 8 8 Taiho Collaboration R&D services * 4 — Total revenues $ 145 $ 25 |
Summary of Revenue Recognized as a Result of Changes in Deferred Revenue | The following table summarizes the revenue recognized as a result of changes in the deferred revenue balance (in millions): Three Months Ended March 31, 2024 2023 Revenue recognized from amounts in deferred revenue at the beginning of the period $ 142 $ 25 |
Summary of Transaction Price and Allocation of Transaction Price to the Performance Obligations | The following table summarizes the transaction price (in millions): Transaction price Amount Premium from Third Stock Purchase Agreement Amendment $ 87 Option continuation - payment due in the third quarter 2024 100 Deferred revenues as of January 29, 2024 335 Total transaction price $ 522 The following table summarizes the allocation of the transaction price to the performance obligations (in millions): Allocation to performance obligations Distinct Combined Amount Etrumadenant - License and R&D services * $ 210 Quemliclustat - License and R&D services * 168 Domvanalimab - R&D services * 33 Access rights * 57 Option continuation periods * 20 Rights to certain studies * 34 Total allocated transaction price $ 522 The following table summarizes the allocation of the transaction price to the distinct performance obligations (in millions): Allocation to performance obligations Distinct Amount Inflammation target 1 - R&D services * $ 18 Inflammation target 2 - R&D services * 17 Total allocated transaction price $ 35 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Outstanding Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss per Share | The following table summarizes potentially dilutive securities excluded from the computation of diluted net loss per share calculations because they would have been antidilutive (in millions): March 31, 2024 March 31, 2023 Common stock options issued and outstanding 15.3 14.0 Restricted stock units issued 3.1 2.1 Employee Stock Purchase Plan shares 0.3 0.2 Total potential dilutive securities 18.7 16.3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table reflects the components of stock-based compensation expense recognized in our Condensed Consolidated Statements of Operations (in millions): Three Months Ended March 31, 2024 2023 Research and development $ 10 $ 9 General and administrative 10 10 Total stock-based compensation $ 20 $ 19 |
Cash, Cash Equivalents and Ma_2
Cash, Cash Equivalents and Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Cash, Cash Equivalents and Marketable Securities [Abstract] | |
Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Our Cash, Cash Equivalents and Marketable Securities Considered as Available for Sale by Type of Securities | The following table summarizes the amortized cost, gross unrealized gains and losses and the fair value of our cash, cash equivalents and marketable securities, all of which are considered available for sale, by type of securities (in millions): Types of securities as of March 31, 2024 Amortized Cost Unrealized Gain Unrealized Loss Fair Value Money market funds $ 120 $ — $ — $ 120 U.S. treasury securities 321 — (1) 320 Corporate securities and commercial paper 601 — — 601 U.S. government agency securities 43 — — 43 Certificate of deposit 11 — — 11 Total cash, cash equivalents and marketable securities $ 1,096 $ — $ (1) $ 1,095 Types of securities as of December 31, 2023 Amortized Cost Unrealized Gain Unrealized Loss Fair Value Money market funds $ 85 $ — $ — $ 85 U.S. treasury securities 213 1 (1) 213 Corporate securities and commercial paper 471 — — 471 U.S. government agency securities 90 — — 90 Certificate of deposit 7 — — 7 Total cash, cash equivalents and marketable securities $ 866 $ 1 $ (1) $ 866 |
Schedule of Fair Values of Our Cash, Cash Equivalents and Marketable Securities by Location in Condensed Consolidated Balance Sheets and Contractual Maturity | The following table summarizes the fair values of our cash, cash equivalents and marketable securities by location in the Condensed Consolidated Balance Sheets and contractual maturity (in millions): Location in Condensed Consolidated Balance Sheets Contractual Maturity March 31, 2024 December 31, 2023 Cash and cash equivalents — $ 185 $ 127 Marketable securities Within one year 810 632 Long-term marketable securities Between one and three years 100 107 Total cash, cash equivalents and marketable securities $ 1,095 $ 866 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets to the total shown in the Condensed Consolidated Statements of Cash Flows (in millions): As of March 31, 2024 2023 Cash and cash equivalents $ 185 $ 238 Restricted cash (included in Other noncurrent assets) 3 3 Total cash, cash equivalents and restricted cash $ 188 $ 241 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets to the total shown in the Condensed Consolidated Statements of Cash Flows (in millions): As of March 31, 2024 2023 Cash and cash equivalents $ 185 $ 238 Restricted cash (included in Other noncurrent assets) 3 3 Total cash, cash equivalents and restricted cash $ 188 $ 241 |
Condensed Consolidated Balanc_4
Condensed Consolidated Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of Prepaid and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in millions): March 31, 2024 December 31, 2023 Prepaid expenses and other assets $ 29 $ 30 Accrued interest receivable 5 4 Total prepaid expenses and other current assets $ 34 $ 34 |
Summary of Other Current Liabilities | Other current liabilities consisted of the following (in millions): March 31, 2024 December 31, 2023 Accrued research and development $ 37 $ 36 Accrued personnel expenses 15 26 Current portion of lease liabilities 11 11 Other 1 3 Total other current liabilities $ 64 $ 76 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Summary of Cash and Non-cash Information Related to Operating Leases | The following table summarizes our cash and non-cash information related to our operating leases (in millions): Three Months Ended March 31, 2024 2023 Cash paid for amounts included in measurement of lease liabilities $ 4 $ 4 Recognition of tenant improvement allowance receivable included in Other current liabilities $ — $ 4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables summarize the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in millions): Fair value measurement as of March 31, 2024 Level 1 Level 2 Level 3 Total Assets Money market funds $ 120 $ — $ — $ 120 U.S. treasury securities — 320 — 320 Corporate securities and commercial paper — 601 — 601 U.S. government agency obligations — 43 — 43 Certificate of deposit — 11 — 11 Total assets measured at fair value $ 120 $ 975 $ — $ 1,095 Liabilities Liability for sale of future royalties $ — $ — $ 20 $ 20 Total liabilities measured at fair value $ — $ — $ 20 $ 20 Fair value measurement as of December 31, 2023 Level 1 Level 2 Level 3 Total Assets Money market funds $ 85 $ — $ — $ 85 U.S. treasury securities — 213 — 213 Corporate securities and commercial paper — 471 — 471 U.S. government agency obligations — 90 — 90 Certificate of deposit — 7 — 7 Total assets measured at fair value $ 85 $ 781 $ — $ 866 Liabilities Liability for sale of future royalties $ — $ — $ 19 $ 19 Total liabilities measured at fair value $ — $ — $ 19 $ 19 |
Summary of Changes of Liabilities for Sale of Future Royalties | The liability for sale of future royalties is reported in Other noncurrent liabilities in the Condensed Consolidated Balance Sheets and changes were as follows (in millions): Three Months Ended March 31, 2024 2023 Beginning balance $ 19 $ 17 Interest accretion 1 1 Ending balance $ 20 $ 18 |
Organization, Liquidity and C_2
Organization, Liquidity and Capital Resources - Additional Information (Details) $ in Billions | 3 Months Ended |
Mar. 31, 2024 USD ($) segment | |
Organization [Line Items] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Cash, Cash Equivalents and Investments in Marketable Securities | |
Organization [Line Items] | |
Cash and investments | $ | $ 1.1 |
Related Party - Gilead Scienc_2
Related Party - Gilead Sciences, Inc. - Additional Information (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2024 USD ($) shares | Jun. 30, 2023 USD ($) Program shares | May 31, 2023 USD ($) Program | Jul. 31, 2020 USD ($) | Mar. 31, 2024 USD ($) $ / shares | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 Program | Dec. 31, 2020 USD ($) | |
Related Party Transaction [Line Items] | |||||||||
Common stock share value | $ 228,000,000 | ||||||||
Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of outstanding common stock held | 33.10% | ||||||||
Related Party | Research and Development | |||||||||
Related Party Transaction [Line Items] | |||||||||
Reimbursement from related party for shared costs | $ 16,000,000 | $ 33,000,000 | |||||||
Purchase Agreement | Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Common stock shares issued | shares | 15.2 | 1 | |||||||
Common stock share value | $ 20,000,000 | ||||||||
Funds received for stock purchase agreement | $ 320,000,000 | ||||||||
Purchase price of common stock allocation to performance obligation | $ 87,000,000 | ||||||||
Percentage of premium purchase price of common stock | 20% | ||||||||
Trailing days average closing price | 5 days | ||||||||
Weighted average closing price of our common stock on grant date (in dollars per share) | $ / shares | $ 33.54 | ||||||||
Purchase Agreement | Related Party | Maximum | |||||||||
Related Party Transaction [Line Items] | |||||||||
Right to purchase additional outstanding voting common stock percentage | 35% | ||||||||
Gilead Collaboration Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Option payment upon completion of certain IND-enabling activities | $ 60,000,000 | ||||||||
Option payment upon achievement of certain development milestones | 150,000,000 | ||||||||
Gilead Collaboration Agreement | Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Collaboration term for current and future clinical programs | 10 years | ||||||||
Option continuation payment due upon sixth anniversary of agreement | $ 100,000,000 | ||||||||
Upfront cash payment | $ 175,000,000 | ||||||||
Option fee per program for all other programs entering clinical development to exercise option | $ 150,000,000 | ||||||||
Number of research programs | 2 | ||||||||
Revenue recognized | $ 141,000,000 | $ 25,000,000 | |||||||
Gilead Collaboration Agreement | Related Party | Maximum | |||||||||
Related Party Transaction [Line Items] | |||||||||
Potential regulatory approval milestones payment receivable related to domvanalimab | $ 500,000,000 | ||||||||
Amended Gilead Collaboration Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of exercise option to programs | Program | 3 | ||||||||
Option payments received | 725,000,000 | ||||||||
Removal of option continuation payment under agreement | $ 100,000,000 | ||||||||
Option payment upon achievement of certain development milestones | $ 150,000,000 | ||||||||
Number of programs, eligible to receive regulatory and commercial milestone payments | Program | 2 | ||||||||
Amended Gilead Collaboration Agreement | Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Upfront cash payment | $ 35,000,000 | $ 17,500,000 | |||||||
Number of research programs | Program | 2 | ||||||||
Option payment upon completion of certain IND-enabling activities | 45,000,000 | ||||||||
Amended Gilead Collaboration Agreement | Related Party | Maximum | |||||||||
Related Party Transaction [Line Items] | |||||||||
Regulatory and commercial milestone payments received | $ 375,000,000 |
License and Collaborations - Ad
License and Collaborations - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jan. 31, 2024 | Mar. 31, 2025 | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2023 | Dec. 31, 2018 | |
License And Collaboration Agreements [Line Items] | |||||||||
Total revenues | $ 145 | $ 25 | |||||||
Receivable from collaboration partners ($21 and $20 from a related party) | 35 | $ 38 | |||||||
Other current liabilities | 64 | 76 | |||||||
Other noncurrent liabilities | 140 | 142 | |||||||
Other noncurrent assets ($— and $6 from a related party) | 78 | 106 | |||||||
Research and development (Net of recoveries of $16 and $33 from a related party) | 109 | 81 | |||||||
Taiho Collaboration Agreement | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Total revenues | 4 | ||||||||
Receivable from collaboration partners ($21 and $20 from a related party) | 10 | 14 | |||||||
AstraZeneca Agreement | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Milestone payments | 24 | ||||||||
Development cost recorded within research and development expenses | 3 | 2 | |||||||
Other current liabilities | 2 | ||||||||
Other noncurrent liabilities | 12 | 11 | |||||||
Gilead Collaboration Agreement | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Development cost recorded within research and development expenses | 6 | ||||||||
Other noncurrent assets ($— and $6 from a related party) | $ 6 | ||||||||
Exelixis Collaboration | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Research and development (Net of recoveries of $16 and $33 from a related party) | 1 | ||||||||
Taiho Pharmaceutical Co., Ltd | Taiho Agreement | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Option period | 5 years | ||||||||
Non refundable and non creditable cash payments | $ 35 | ||||||||
Royalties payable term | 10 years | ||||||||
Total revenues | 4 | ||||||||
Reimbursement of research and development expense | 3 | ||||||||
Taiho Pharmaceutical Co., Ltd | Taiho Agreement | Minimum | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Payment for option exercise | 3 | ||||||||
Taiho Pharmaceutical Co., Ltd | Taiho Agreement | Maximum | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Payment for option exercise | 15 | ||||||||
Additional clinical and regulatory milestone payments receivable | $ 130 | ||||||||
Contingent milestone payments receivable | $ 145 | ||||||||
STAR-221 Development Activities | Taiho Collaboration Agreement | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Payment for option exercise | $ 28 | ||||||||
STAR-121 Development Activities | Taiho Collaboration Agreement | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Payment for option exercise | $ 26 | ||||||||
Revenue recognized | 16 | ||||||||
STAR-121 Development Activities | Taiho Collaboration Agreement | Forecast | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Revenue recognized | $ 10 | ||||||||
WuXi Biologics License Agreement | anti-CD39 | Research and Development | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Development milestone expense | $ 1 | ||||||||
WuXi Biologics License Agreement | Maximum | anti-PD-1 | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Clinical regulatory milestone payments | 50 | ||||||||
Clinical, regulatory and commercialization milestone payments | 375 | ||||||||
WuXi Biologics License Agreement | Maximum | anti-CD39 | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Additional clinical, regulatory and commercialization milestone payments | 14 | ||||||||
Abmuno License Agreement | |||||||||
License And Collaboration Agreements [Line Items] | |||||||||
Additional clinical, regulatory and commercialization milestone payments | $ 88 |
Revenues - Summary of Revenues
Revenues - Summary of Revenues by Collaboration, Category of Revenue and Method of Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
License And Collaboration Agreements [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | $ 145 | $ 25 |
License and R&D services | ||
License And Collaboration Agreements [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 133 | 17 |
Access rights | ||
License And Collaboration Agreements [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | 8 | 8 |
R&D services | ||
License And Collaboration Agreements [Line Items] | ||
Revenue from contract with customer, excluding assessed tax | $ 4 | $ 0 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||||||
Jan. 29, 2024 | Jan. 31, 2024 | Mar. 31, 2025 | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||||||
Contract with customer, liability | $ 366 | $ 398 | ||||||
Option continuation - payment due in the third quarter 2024 | $ 100 | |||||||
Contract with customer, liability, cumulative catch-up adjustment to revenue, change in measure of progress and change in estimate of transaction price | $ 107 | |||||||
Contract with customer, liability, cumulative catch-up adjustment to revenue, earnings Per share, basic (in dollars per share) | $ 1.24 | |||||||
Contract with customer, liability, cumulative catch-up adjustment to revenue, earnings Per share, diluted (in dollars per share) | $ 1.24 | |||||||
Premium from Third Stock Purchase Agreement Amendment | $ 87 | |||||||
Deferred revenues as of January 29, 2024 | 335 | |||||||
Allocation of transaction price | 522 | |||||||
Total revenues | 145 | $ 25 | ||||||
Deferred revenue recognized | 142 | 25 | ||||||
Capitalized contract cost, amortization | 2 | |||||||
Cost sharing receivable | 4 | 3 | ||||||
R&D Activities for Domvanalimab | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Deferred revenue recognized | 25 | |||||||
Access Rights and Option Continuation Periods | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Total revenues | 8 | 8 | ||||||
Taiho Collaboration Agreement | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Contract with customer, liability | 45 | 23 | ||||||
Total revenues | 4 | |||||||
Third Gilead Collaboration Agreement Amendment, Third Stock Purchase Agreement Amendment And The Second Investor Rights Agreement Amendment | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Capitalized contract cost, gross | 8 | |||||||
Third Stock Purchase Agreement Amendment | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Capitalized contract cost, gross | 5 | |||||||
Initial Gilead Collaboration Agreement And Subsequent Amendments | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Capitalized contract cost, gross | 3 | |||||||
Gilead | Gilead Collaboration Agreement | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue recognized | 250 | |||||||
Gilead | Etrumadenant License and Research and Development Services Agreement | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Contract with customer, liability | 129 | 189 | 133 | |||||
Contract with customer, liability, cumulative catch-up adjustment to revenue, change in measure of progress | 14 | |||||||
Total revenues | 24 | 8 | ||||||
Gilead | Quemliclustat, License and R&D services | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Contract with customer, liability | 130 | 71 | 132 | |||||
Contract with customer, liability, cumulative catch-up adjustment to revenue, change in measure of progress | 88 | |||||||
Total revenues | 100 | 8 | ||||||
Deferred revenue recognized | 200 | |||||||
Gilead | R&D Activities for Domvanalimab | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Contract with customer, liability | 27 | 25 | ||||||
Total revenues | 7 | $ 1 | ||||||
Contract with customer, liability, cumulative catch-up adjustment to revenue, change in estimate of transaction price | 5 | |||||||
Gilead | Access Rights and Option Continuation Periods | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Contract with customer, liability | 51 | $ 71 | 54 | |||||
Current and future programs exclusive access period | 10 years | |||||||
Contingent milestone payments receivable | 200 | $ 300 | ||||||
Option continuation payment receivable upon sixth anniversary of agreement | $ 100 | |||||||
Gilead | Rights to Certain Studies | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Contract with customer, liability | 34 | |||||||
Gilead | R&D Activities for Inflammation Programs | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Contract with customer, liability | 29 | $ 31 | ||||||
Total revenues | $ 2 | |||||||
Gilead | Revenue Benchmark | Customer Concentration Risk | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Percentage of revenues | 97% | 100% | ||||||
STAR-221 Development Activities | Taiho Collaboration Agreement | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Contract with customer, liability | $ 35 | |||||||
Payment for option exercise | $ 28 | |||||||
STAR-121 Development Activities | Taiho Collaboration Agreement | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue recognized | $ 16 | |||||||
Payment for option exercise | $ 26 | |||||||
STAR-121 Development Activities | Taiho Collaboration Agreement | Forecast | ||||||||
Disaggregation of Revenue [Line Items] | ||||||||
Revenue recognized | $ 10 |
Revenues - Summary of Revenue R
Revenues - Summary of Revenue Recognized as a Result of Changes in Deferred Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Amounts included in deferred revenue at the beginning of the period | $ 142 | $ 25 |
Revenues - Summary of Transacti
Revenues - Summary of Transaction Price and Allocation of Transaction Price to the Performance Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 29, 2024 | Mar. 31, 2024 | |
Transaction price | ||
Premium from Third Stock Purchase Agreement Amendment | $ 87 | |
Option continuation - payment due in the third quarter 2024 | 100 | |
Deferred revenues as of January 29, 2024 | 335 | |
Total transaction price | 522 | |
Allocation to performance obligations | ||
Etrumadenant - License and R&D services | 210 | |
Quemliclustat - License and R&D services | 168 | |
Domvanalimab - R&D services | 33 | |
Access rights | 57 | |
Option continuation periods | 20 | |
Rights to certain studies | 34 | |
Total allocated transaction price | $ 522 | $ 35 |
Inflammation target 1 - R&D services | ||
Allocation to performance obligations | ||
Total allocated transaction price | 18 | |
Inflammation target 2 - R&D services | ||
Allocation to performance obligations | ||
Total allocated transaction price | $ 17 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 0 | $ 2 |
Effective tax rate | (2.30%) |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Outstanding Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 18.7 | 16.3 |
Common stock options issued and outstanding | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 15.3 | 14 |
Restricted stock units issued | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 3.1 | 2.1 |
Employee Stock Purchase Plan shares | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share (in shares) | 0.3 | 0.2 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 20 | $ 19 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | 10 | 9 |
General and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation | $ 10 | $ 10 |
Cash, Cash Equivalents and Ma_3
Cash, Cash Equivalents and Marketable Securities - Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Our Cash, Cash Equivalents and Marketable Securities Considered as Available for Sale by Type of Securities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 1,096 | $ 866 |
Unrealized Gain | 0 | 1 |
Unrealized Loss | (1) | (1) |
Fair Value | 1,095 | 866 |
Money market funds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 120 | 85 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 120 | 85 |
U.S. treasury securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 321 | 213 |
Unrealized Gain | 0 | 1 |
Unrealized Loss | (1) | (1) |
Fair Value | 320 | 213 |
Corporate securities and commercial paper | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 601 | 471 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 601 | 471 |
U.S. government agency securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 43 | 90 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 43 | 90 |
Certificate of deposit | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 11 | 7 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | $ 11 | $ 7 |
Cash, Cash Equivalents and Ma_4
Cash, Cash Equivalents and Marketable Securities - Schedule of Fair Values of Our Cash, Cash Equivalents and Marketable Securities by Location in Condensed Consolidated Balance Sheets and Contractual Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Cash, Cash Equivalents and Marketable Securities [Abstract] | ||
Cash and cash equivalents | $ 185 | $ 127 |
Marketable securities | 810 | 632 |
Long-term marketable securities | 100 | 107 |
Total cash, cash equivalents and marketable securities | $ 1,095 | $ 866 |
Cash, Cash Equivalents and Ma_5
Cash, Cash Equivalents and Marketable Securities - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) position | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) position | |
Cash, Cash Equivalents and Marketable Securities [Abstract] | |||
Number of positions in securities in unrealized loss | position | 113 | 105 | |
Credit related losses | $ | $ 0 | $ 0 | $ 0 |
Cash, Cash Equivalents and Ma_6
Cash, Cash Equivalents and Marketable Securities - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Cash, Cash Equivalents and Marketable Securities [Abstract] | ||||
Cash and cash equivalents | $ 185 | $ 127 | $ 238 | |
Restricted cash (included in Other noncurrent assets) | 3 | 3 | ||
Total cash, cash equivalents and restricted cash | $ 188 | $ 130 | $ 241 | $ 209 |
Restricted Cash, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other noncurrent assets ($— and $6 from a related party) | Other noncurrent assets ($— and $6 from a related party) |
Condensed Consolidated Balanc_5
Condensed Consolidated Balance Sheet Components - Summary of Prepaid and Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses and other assets | $ 29 | $ 30 |
Accrued interest receivable | 5 | 4 |
Total prepaid expenses and other current assets | $ 34 | $ 34 |
Condensed Consolidated Balanc_6
Condensed Consolidated Balance Sheet Components - Summary of Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued research and development | $ 37 | $ 36 |
Accrued personnel expenses | 15 | 26 |
Current portion of lease liabilities | 11 | 11 |
Other | 1 | 3 |
Total other current liabilities | $ 64 | $ 76 |
Leases - Summary of Cash and No
Leases - Summary of Cash and Non-cash Information Related to Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Cash paid for amounts included in measurement of lease liabilities | $ 4 | $ 4 |
Recognition of tenant improvement allowance receivable included in Other current liabilities | $ 0 | $ 4 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Leases [Abstract] | |||
Impairment of long-lived assets | $ 20 | $ 0 | |
Deposits for letters of credit | $ 3 | $ 3 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 29, 2024 | Mar. 31, 2024 | |
Class of Stock [Line Items] | ||
Common stock share value | $ 228 | |
Third Stock Purchase Agreement Amendment | ||
Class of Stock [Line Items] | ||
Contract with customer, asset, before allowance for credit loss | 228 | |
Capitalized contract cost, gross | $ 5 | |
Gilead | Third Stock Purchase Agreement Amendment | ||
Class of Stock [Line Items] | ||
Issuance of common stock (in shares) | 15.2 | |
Shares issued, price per share (in dollars per share) | $ 21 | |
Common stock share value | $ 320 | |
Premiums earned, net | $ 87 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value On Recurring Basis - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 1,095 | $ 866 |
Total liabilities measured at fair value | 20 | 19 |
Liability for sale of future royalties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 20 | 19 |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 120 | 85 |
U.S. treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 320 | 213 |
Corporate securities and commercial paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 601 | 471 |
U.S. government agency obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 43 | |
U.S. government agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 90 | |
Certificate of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 11 | 7 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 120 | 85 |
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Liability for sale of future royalties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 120 | 85 |
Level 1 | U.S. treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 1 | Corporate securities and commercial paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 1 | U.S. government agency obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Level 1 | U.S. government agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Level 1 | Certificate of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 975 | 781 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | Liability for sale of future royalties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 0 | 0 |
Level 2 | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 2 | U.S. treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 320 | 213 |
Level 2 | Corporate securities and commercial paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 601 | 471 |
Level 2 | U.S. government agency obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 43 | |
Level 2 | U.S. government agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 90 | |
Level 2 | Certificate of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 11 | 7 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Total liabilities measured at fair value | 20 | 19 |
Level 3 | Liability for sale of future royalties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total liabilities measured at fair value | 20 | 19 |
Level 3 | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 3 | Corporate securities and commercial paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Level 3 | U.S. government agency obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Level 3 | U.S. government agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Level 3 | Certificate of deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - BVF Partners L.P. - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
BVF Agreement | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Non-refundable payments received | $ 15 | $ 15 | |||
Imputed effective rate of interest on unamortized portion of liability | 10.10% | 20.60% | 20.60% | ||
BVF Agreement | Maximum | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Contingent payments upon achievement of certain clinical and regulatory milestones | 73 | ||||
Gilead Collaboration Agreement | Maximum | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Contingent payments upon achievement of certain clinical and regulatory milestones | $ 160 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes of Liabilities for Sale of Future Royalties (Details) - BVF Partners L.P. - BVF Agreement - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 19 | $ 17 |
Interest accretion | 1 | 1 |
Ending balance | $ 20 | $ 18 |