Zentalis Pharmaceuticals (ZNTL) 10-Q 9 Aug 22 2022 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2022	Aug. 08, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	001-39263
Entity Registrant Name	Zentalis Pharmaceuticals, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-3607803
Entity Address, Address Line One	1359 Broadway
Entity Address, Address Line Two	Suite 1710
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10018
City Area Code	212
Local Phone Number	433-3791
Title of 12(b) Security	Common Stock,$0.001 par value per share
Trading Symbol	ZNTL
Security Exchange Name	NASDAQ
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 (in shares)		56,983,641
Entity Central Index Key	0001725160
Amendment Flag	false
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 55,143	$ 59,714
Marketable securities, available-for-sale	400,078	280,173
Prepaid expenses and other current assets	12,405	10,640
Restricted cash	0	243
Total current assets	467,626	350,770
Property and equipment, net	8,218	8,148
Operating lease right-of-use assets	43,305	44,691
Prepaid expenses and other assets	11,938	7,040
Goodwill	3,736	3,736
Investment in Zentera Therapeutics	30,406	37,495
Restricted cash	2,627	2,627
Total assets	567,856	454,507
Current liabilities
Accounts payable	12,041	11,590
Accrued expenses	36,595	32,354
Total current liabilities	48,636	43,944
Deferred tax liability	1,325	1,622
Other long-term liabilities	45,072	44,459
Total liabilities	95,033	90,025
Commitments and contingencies
EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2022 and December 31, 2021	0	0
Common stock, $0.001 par value; 250,000,000 shares authorized; 56,969,118 and 45,490,764 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	57	45
Additional paid-in capital	961,205	723,593
Accumulated other comprehensive loss	(1,779)	(125)
Accumulated deficit	(486,993)	(359,559)
Total stockholders’ equity	472,490	363,954
Noncontrolling interests	333	528
Total equity	472,823	364,482
Total liabilities and stockholders’ equity	$ 567,856	$ 454,507

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock issued (in shares)	56,969,118	45,490,764
Common stock outstanding (in shares)	56,969,118	45,490,764

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Operating Expenses
Research and development	$ 43,825	$ 44,770	$ 89,937	$ 83,164
General and administrative	19,636	10,362	31,403	22,315
Total operating expenses	63,461	55,132	121,340	105,479
Operating loss	(63,461)	(55,132)	(121,340)	(105,479)
Other Income (Expense)
Investment and other income, net	424	115	850	214
Net loss before income taxes	(63,037)	(55,017)	(120,490)	(105,265)
Income tax expense	17	45	50	241
Loss on equity method investment	5,338	0	7,089	0
Net loss	(68,392)	(55,062)	(127,629)	(105,506)
Net loss attributable to noncontrolling interests	(35)	(488)	(195)	(1,031)
Net loss attributable to Zentalis	$ (68,357)	$ (54,574)	$ (127,434)	$ (104,475)
Net loss per common share outstanding, basic (in dollars per share)	$ (1.34)	$ (1.34)	$ (2.64)	$ (2.58)
Net loss per common share outstanding, diluted (in dollars per share)	$ (1.34)	$ (1.34)	$ (2.64)	$ (2.58)
Common shares used in computing net loss per share, basic (in shares)	51,117	40,738	48,197	40,549
Common shares used in computing net loss per share, diluted (in shares)	51,117	40,738	48,197	40,549

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (68,392)	$ (55,062)	$ (127,629)	$ (105,506)
Other comprehensive income:
Currency translation effects	0	45	0	45
Unrealized gain (loss) on marketable securities	(670)	(1)	(1,654)	13
Total comprehensive loss	(69,062)	(55,018)	(129,283)	(105,448)
Comprehensive loss attributable to noncontrolling interests	(35)	(488)	(195)	(1,031)
Comprehensive loss attributable to Zentalis	$ (69,027)	$ (54,530)	$ (129,088)	$ (104,417)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Operating Activities:
Consolidated net loss	$ (68,392)	$ (55,062)	$ (127,629)	$ (105,506)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	348	119	692	198
Share-based compensation			26,911	19,610
Loss on disposal of equipment			57	15
Amortization of premiums on marketable securities, net			17	521
Loss on equity method investment	5,338	0	7,089	0
Changes in operating assets and liabilities:
Prepaid expenses and other assets			(6,663)	(3,525)
Accounts payable and accrued liabilities			4,025	4,838
Operating lease right-of-use assets and liabilities, net			2,278	267
Net cash used in operating activities			(93,223)	(83,582)
Investing activities:
Purchases of marketable securities			(277,576)	(77,812)
Proceeds from maturities of marketable securities			156,000	159,128
Purchases of property and equipment			(728)	(1,255)
Net cash (used in) provided by investing activities			(122,304)	80,061
Financing Activities:
Proceeds from issuance of common stock, net			209,297	0
Proceeds from issuance of common stock under equity incentive plans			1,416	70
Deferred financing costs			0	(386)
Net cash provided by (used in) financing activities			210,713	(316)
Net decrease in cash, cash equivalents and restricted cash			(4,814)	(3,837)
Cash, cash equivalents and restricted cash at beginning of period			62,584	56,271
Cash, cash equivalents and restricted cash at end of period	57,770	52,434	57,770	52,434
Supplemental disclosure of non-cash investing and financing activities:
Accrued capital expenditures			91	0
Accrued deferred financing costs			0	330
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	55,143	49,170	55,143	49,170
Restricted cash	2,627	3,264	2,627	3,264
Total cash, cash equivalents and restricted cash reported in the Condensed Consolidated Statement of Cash Flows	$ 57,770	$ 52,434	$ 57,770	$ 52,434

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2020		41,040,000
Beginning balance at Dec. 31, 2020	$ 333,377	$ 41	$ 509,339	$ 36	$ (200,834)	$ 24,795
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	19,610		19,610
Other comprehensive income	58			58
Issuance of common stock in connection with restricted stock unit vesting (in shares)		272,000
Issuance of common stock upon exercise of options, net (in shares)		4,000
Issuance of common stock upon exercise of options, net	70		70
Cancellation of restricted stock awards (in shares)		(1,000)
Net loss attributable to non-controlling interest	(1,031)					(1,031)
Net loss attributable to Zentalis	(104,475)				(104,475)
Ending balance (in shares) at Jun. 30, 2021		41,315,000
Ending balance at Jun. 30, 2021	247,609	$ 41	529,019	94	(305,309)	23,764
Beginning balance (in shares) at Dec. 31, 2020		41,040,000
Beginning balance at Dec. 31, 2020	333,377	$ 41	509,339	36	(200,834)	24,795
Ending balance (in shares) at Dec. 31, 2021		45,491,000
Ending balance at Dec. 31, 2021	364,482	$ 45	723,593	(125)	(359,559)	528
Beginning balance (in shares) at Mar. 31, 2021		41,040,000
Beginning balance at Mar. 31, 2021	292,638	$ 41	519,030	50	(250,735)	24,252
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	9,919		9,919
Other comprehensive income	44			44
Issuance of common stock in connection with restricted stock unit vesting (in shares)		272,000
Issuance of common stock upon exercise of options, net (in shares)		4,000
Issuance of common stock upon exercise of options, net	70		70
Cancellation of restricted stock awards (in shares)		(1,000)
Net loss attributable to non-controlling interest	(488)					(488)
Net loss attributable to Zentalis	(54,574)				(54,574)
Ending balance (in shares) at Jun. 30, 2021		41,315,000
Ending balance at Jun. 30, 2021	247,609	$ 41	529,019	94	(305,309)	23,764
Beginning balance (in shares) at Dec. 31, 2021		45,491,000
Beginning balance at Dec. 31, 2021	364,482	$ 45	723,593	(125)	(359,559)	528
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	26,911		26,911
Other comprehensive income	(1,654)			(1,654)
Issuance of common stock in connection with an equity offering, net of underwriting discounts, commissions and offering costs (in shares)		11,284,000
Issuance of common stock in connection with an equity offering, net of underwriting discounts, commissions and offering costs	$ 209,297	$ 11	209,286
Issuance of common stock in connection with restricted stock unit vesting (in shares)	100,000	149,000
Issuance of common stock in connection with restricted stock unit vesting	$ 1	$ 1
Issuance of common stock upon exercise of options, net (in shares)	42,000	42,000
Issuance of common stock upon exercise of options, net	$ 803		803
Shares issued under employee stock purchase plan (in shares)		16,000
Shares issued under employee stock purchase plan	612		612
Cancellation of restricted stock awards (in shares)		(15,000)
Net loss attributable to non-controlling interest	(195)					(195)
Net loss attributable to Zentalis	(127,434)				(127,434)
Ending balance (in shares) at Jun. 30, 2022		56,967,000
Ending balance at Jun. 30, 2022	472,823	$ 57	961,205	(1,779)	(486,993)	333
Beginning balance (in shares) at Mar. 31, 2022		45,584,000
Beginning balance at Mar. 31, 2022	315,666	$ 46	734,997	(1,109)	(418,636)	368
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	16,764		16,764
Other comprehensive income	(670)			(670)
Issuance of common stock in connection with an equity offering, net of underwriting discounts, commissions and offering costs (in shares)		11,284,000
Issuance of common stock in connection with an equity offering, net of underwriting discounts, commissions and offering costs	209,297	$ 11	209,286
Issuance of common stock in connection with restricted stock unit vesting (in shares)		104,000
Issuance of common stock upon exercise of options, net (in shares)		9,000
Issuance of common stock upon exercise of options, net	158		158
Cancellation of restricted stock awards (in shares)		(14,000)
Net loss attributable to non-controlling interest	(35)					(35)
Net loss attributable to Zentalis	(68,357)				(68,357)
Ending balance (in shares) at Jun. 30, 2022		56,967,000
Ending balance at Jun. 30, 2022	$ 472,823	$ 57	$ 961,205	$ (1,779)	$ (486,993)	$ 333

Organization and Business

Organization and Business	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Organization and Business Organization Zentalis Pharmaceuticals, Inc. (“Zentalis”, “We” or the “Company”) is a clinical-stage pharmaceutical company focused on discovering and developing clinically differentiated, novel small molecule therapeutics targeting fundamental biological pathways of cancer. The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. All of the Company’s tangible assets are held in the United States. Liquidity

Interim Unaudited Financial Sta

Interim Unaudited Financial Statements	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Interim Unaudited Financial Statements	Interim Unaudited Financial Statements Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to a quarterly report on Form 10-Q. The year-end condensed consolidated balance sheet data was derived from the Company’s audited financial statements but does not include all disclosures required by U.S. GAAP. These interim unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 24, 2022. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operation for the periods presented, with such adjustments consisting only of normal recurring adjustments. Certain reclassifications have been made to the prior period condensed consolidated balance sheet to conform to the current period presentation. The accompanying interim unaudited condensed consolidated financial statements include our wholly-owned subsidiaries and variable interest entities (“VIEs”) for the periods in which we determined we were the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We evaluate our ownership, contractual and other interests in entities that are not wholly-owned to determine if these entities are VIEs, and, if so, whether we are the primary beneficiary of the VIE. In determining whether we are the primary beneficiary of a VIE and therefore required to consolidate the VIE, we apply a qualitative approach that determines whether we have both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the rights to receive benefits from, the VIE that could potentially be significant to that VIE. We will continuously assess whether we are the primary beneficiary of a VIE, as changes to existing relationships or future transactions may result in the consolidation or deconsolidation of such VIE. During the periods presented, we have not provided any other material financial or other support to our VIEs that we were not contractually required to provide. The equity method is used to account for investments in which we have the ability to exercise significant influence, but not control, over the investee. Such investments are recorded on the balance sheet, and the share of net income or losses of equity investments is recognized on a one quarter lag in investment and other income (expense), net. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that management believes to be reasonable under the circumstances. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from management’s estimates. Though the impact of the COVID-19 pandemic to our business and operating results presents additional uncertainty, we continue to use the best information available to inform our critical accounting estimates. Significant Accounting Policies During the six months ended June 30, 2022 , there have been no changes to the Company’s significant accounting policies as described in its Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Significant Transactions

Significant Transactions	6 Months Ended
	Jun. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]
Significant Transactions	Significant Transactions Zentera Therapeutics In May 2020, we became a majority common shareholder of Zentera Therapeutics, Ltd., a Shanghai-based clinical-stage biopharmaceutical company focused on developing cancer therapeutics (“Zentera”), concurrent with its Series A convertible preferred stock offering. The financial position and results of operations of Zentera were included in our consolidated financial statements from the date of the initial investment as a result of our control of the entity and our determination that we were the primary beneficiary of Zentera. In July 2021, Zentera completed a Series B convertible preferred stock offering which diluted our investment to a position of less than majority owned. Upon review of the facts and circumstances, together with the authoritative accounting literature, we determined that while Zentera is a VIE, consolidation of Zentera is no longer appropriate. After the July 2021 Series B convertible preferred offering in which we did not participate, our review concluded that we ceased to be the primary beneficiary of Zentera as our equity ownership was reduced and changes were made to the corporate governance of Zentera. As a result, we no longer individually have the ability to direct the activities that most significantly impact Zentera's economic performance. Beginning in July 2021, the financial position and results of operations of Zentera are no longer included in our consolidated financial statements. During the period of deconsolidation we measured the fair value of our retained investment in Zentera using the backsolve method with consideration for a lack of marketability. An equity method investment of $30.4 million is recorded on our balance sheet at June 30, 2022. This amount represents our maximum exposure to loss as a result of our involvement with Zentera. A deferred tax liability of $6.4 million representing the tax impact of the unrealized gain on deconsolidation is recorded on our balance sheet at June 30, 2022. A gain of $51.6 million, measured as the difference between the fair value of our retained noncontrolling interest together with the carrying amount of the Zentera noncontrolling interest, and the carrying amount of Zentera’s assets and liabilities was recognized during the year ended December 31, 2021. The difference between the carrying amount of our investment in Zentera and our portion of the Zentera net assets was $5.2 million as of June 30, 2022. This difference is accounted for in our equity method investment analogous to in-process research and development. In May 2020, each of our subsidiaries Zeno Alpha, Inc., K-Group Alpha, Inc., Zeno Management Inc., and K-Group Beta, Inc. entered into a collaboration and royalty-bearing license agreement with Zentera, which we refer to as the “Zentera Sublicenses,” pursuant to which we collaborate with Zentera on the development and commercialization of ZN-c3, ZN-d5 and ZN-c5, collectively referred to as the “Collaboration Products,” respectively, in the People’s Republic of China, Macau, Hong Kong and Taiwan, which is referred to as the “Zentera Collaboration Territory.” Under each Zentera Sublicense, Zentera will lead development, and upon regulatory approval, the commercialization, of the collaboration products in the Zentera Collaboration Territory. Under the terms of the Zentera Sublicenses, Zentera is responsible for the costs of developing the Collaboration Products in the Zentera Collaboration Territory, and we are responsible for the costs of developing the Collaboration Products outside the Zentera Collaboration Territory, provided that Zentera will reimburse us for a portion of the costs for global data management, pharmacovigilance, safety database management, and chemistry, manufacturing and controls activities with respect to each Collaboration Product. Prior to the deconsolidation of Zentera in July 2021, these costs were eliminated in consolidation. For the three and six months ended June 30, 2022, the amounts incurred under this arrangement totaled $3.0 million and $5.1 million, respectively, and are presented as contra-research and development expense in the unaudited condensed consolidated statement of operations. A corresponding receivable is recorded within prepaid expenses and other current assets on the unaudited condensed consolidated balance sheet. We have not provided material financial or other support to Zentera during the periods ended June 30, 2022 and 2021 that was not previously contractually required.

Business Combinations

Business Combinations	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Business Combinations	Business Combinations Kalyra Pharmaceuticals, Inc. On December 21, 2017, we acquired $4.5 million of Kalyra’s Series B Preferred Stock representing a 25% equity interest in Kalyra for purposes of entering the analgesics therapeutic research space. The acquisition price was paid entirely in cash. In accordance with the authoritative guidance, we concluded that Kalyra is a business consisting of inputs, employees, intellectual property and processes capable of producing outputs. Additionally, we have concluded that Kalyra is a variable interest entity, we are the primary beneficiary and have the power to direct the activities that most significantly affect Kalyra’s economic performance through common management and our board representation. Prior to December 21, 2017, the Company and Kalyra transacted for the delivery of research and development services and support. The financial position and results of operations of Kalyra have been included in our consolidated financial statements from the date of the initial investment. Pursuant with authoritative guidance, we have recorded the identifiable assets, liabilities and noncontrolling interests in the VIE at their fair value upon initial consolidation. The identified goodwill is comprised of the workforce and expected synergies from combining the entities . T otal assets and liabilities of Kalyra as of June 30, 2022 and December 31, 2021 are immaterial. The liabilities recognized as a result of consolidating Kalyra do not represent additional claims on our general assets. Pursuant to the authoritative guidance, the equity interest in Kalyra not owned by Zentalis is reported as a noncontrolling interest on our condensed consolidated balance sheets. The following is a reconciliation of equity (net assets) attributable to the noncontrolling interest (in thousands): June 30, December 31, 2022 2021 Noncontrolling interest at beginning of period $ 528 $ 24,795 Net loss attributable to noncontrolling interest (195) (7,368) Deconsolidation of Zentera — (16,899) Noncontrolling interest at end of period $ 333 $ 528

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement Available-for-sale marketable securities consisted of the following (in thousands): June 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Commercial paper $ 255,912 $ — $ (763) $ 255,149 Corporate Debt Securities 5,063 — (59) 5,004 US Government Agencies 18,997 — (78) 18,919 US Treasury 121,882 5 (881) 121,006 $ 401,854 $ 5 $ (1,781) $ 400,078 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Commercial paper $ 199,321 $ 11 $ (55) $ 199,277 Corporate Debt Securities 10,085 — (7) 10,078 US Government Agencies 20,032 1 — 20,033 US Treasury 50,860 — (75) 50,785 $ 280,298 $ 12 $ (137) $ 280,173 As of June 30, 2022, sixty-two of our available-for-sale debt securities with a fair market value of $399.2 million were in a gross unrealized loss position of $1.8 million. When evaluating an investment for impairment, we review factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, our intent to sell or the likelihood that we would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made. Based on our review of these marketable securities, we believe none of the unrealized loss is as a result of a credit loss as of June 30, 2022, because we do not intend to sell these securities, and it is not more-likely-than-not that we will be required to sell these securities before the recovery of their amortized cost basis. Contractual maturities of available-for-sale debt securities are as follows (in thousands): June 30, 2022 December 31, 2021 Estimated Fair Value Due within one year $ 396,203 $ 258,948 After one but within five years 3,875 21,225 $ 400,078 $ 280,173 The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): June 30, 2022 December 31, 2021 Level 1 Level 2 Total estimated fair value Level 1 Level 2 Total estimated fair value Cash equivalents: Money market funds $ 30,223 $ — $ 30,223 $ 43,653 $ — $ 43,653 Commercial paper 18,943 — 18,943 — — — Total cash equivalents: 49,166 — 49,166 43,653 — 43,653 Available-for-sale marketable securities: Commercial paper — 255,149 255,149 — 199,277 199,277 Corporate Debt Securities — 5,004 5,004 — 10,078 10,078 US Government Agencies — 18,919 18,919 — 20,033 20,033 US Treasury securities 121,006 — 121,006 50,785 — 50,785 Total available-for-sale marketable securities: 121,006 279,072 400,078 50,785 229,388 280,173 Total assets measured at fair value $ 170,172 $ 279,072 $ 449,244 $ 94,438 $ 229,388 $ 323,826 There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2022. We had no instruments that were classified within Level 3 as of June 30, 2022 or December 31, 2021.

Prepaid Expenses and Other Asse

Prepaid Expenses and Other Assets	6 Months Ended
	Jun. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Assets	Prepaid Expenses and Other Assets Prepaid expenses and other assets consisted of the following (in thousands): June 30, December 31, 2022 2021 Prepaid insurance $ 2,324 $ 990 Prepaid software licenses and maintenance 483 403 Foreign R&D credit refund 1,719 1,808 Prepaid research and development expenses 15,909 11,204 Interest receivable 465 258 Zentera receivable 2,981 2,373 Other prepaid expenses 462 644 Total prepaid expenses and other assets 24,343 17,680 Less long-term portion 11,938 7,040 Total prepaid expenses and other assets, current $ 12,405 $ 10,640

Property and Equipment, net

Property and Equipment, net	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net consisted of the following (in thousands): June 30, December 31, 2022 2021 Lab equipment $ 2,585 $ 2,057 Leasehold improvements 4,649 4,515 Office equipment and furniture 2,065 2,123 Computer equipment 150 211 Construction in progress 97 34 Subtotal 9,546 8,940 Accumulated depreciation and amortization (1,328) (792) Property and equipment, net $ 8,218 $ 8,148 Depreciation and amortization expense for the three months ended June 30, 2022 and 2021

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consist of the following (in thousands): June 30, December 31, 2022 2021 Accrued research and development expenses $ 23,745 $ 18,531 Accrued employee expenses 8,195 9,250 Accrued legal expenses 1,372 669 Accrued general and administrative expenses 856 1,480 Lease liability 1,733 1,453 Taxes payable 694 971 Total accrued expenses $ 36,595 $ 32,354

Stockholders_ Equity

Stockholders’ Equity	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Stockholders’ Equity	Stockholders’ Equity Direct Offering of Common Stock On April 29, 2022, pursuant to our Registration Statement on Form S-3 (Registration No. 333-255769), filed with the SEC on May 4, 2021, we completed a direct offering of common stock to Pfizer Inc. (“Pfizer”). We issued and sold 953,834 shares of our common stock at an offering price of $26.21 per share. The total gross proceeds for the offering were approximately $25.0 million, before deducting offering expenses of $0.3 million payable by us. The parties have entered into an agreement to collaborate to advance the clinical development of ZN-c3, a selective Wee1 inhibitor designed to induce synthetic lethality in cancer cells. We did not grant Pfizer any economic ownership or control of ZN-c3 or the rest of our pipeline. $4.2 million of the gross offering proceeds received from Pfizer represented a premium in excess of the fair value of our common stock on the date of the investment. This amount has been recorded as accrued research and development expense on the unaudited condensed consolidated balance sheet and will be recognized as a reduction of research and development expense over the term of the collaboration agreement. Follow-on Offering of Common Stock On May 18, 2022, we completed a follow-on offering in which we issued and sold 10,330,000 shares of common stock at a public offering price of $19.38 per share. The total gross proceeds for the offering were approximately $200.2 million, before deducting offering expenses of $11.4 million payable by us. Share-based Compensation In April 2020, the Company’s Board of Directors adopted, and the Company’s stockholders approved the 2020 Incentive Award Plan (the “2020 Plan”), which allows for grants to selected employees, consultants and non-employee members of the Board of Directors. We currently grant stock options and restricted stock units (“RSUs”), under the 2020 Plan. The number of common shares available for issuance under the 2020 Plan is the sum of (1) 5,600,000 shares of common stock; plus (2) any shares forfeited from the unvested restricted shares of our common stock issued upon conversion of unvested Class B common units (up to 1,250,000 shares); plus (3) an annual increase on the first day of each fiscal year beginning with the fiscal year ending December 31, 2021 and continuing to, and including, the fiscal year ending December 31, 2030, equal to the lesser of (a) 5% of the shares of common stock outstanding on the final day of the immediately preceding calendar year and (b) such smaller number of shares as determined by our Board of Directors. At June 30, 2022, 8,300,142 shares were subject to outstanding awards under the 2020 Plan and 284,429 shares were available for future grants of share-based awards under the 2020 Plan. In July 2022, the Company’s Board of Directors approved the Zentalis Pharmaceuticals, Inc. 2022 Employment Inducement Incentive Award Plan (the “2022 Inducement Plan”), which is used exclusively for the grant of equity awards to new employees as an inducement material to the employees’ entering into employment with the Company. The Board of Directors has initially reserved 1,500,000 shares of the Company’s common stock for issuance pursuant to awards granted under the 2022 Inducement Plan. Total share-based compensation expense related to share based awards was comprised of the following (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Research and development expense $ 5,155 $ 3,923 $ 10,197 $ 7,049 General and administrative expense 11,609 5,996 16,714 12,561 Total share-based compensation expense $ 16,764 $ 9,919 $ 26,911 $ 19,610 Total share-based compensation expense for the six months ended June 30, 2022 and 2021 includes $0 and $138 thousand, respectively, of share-based compensation expense for employees, consultants and directors of Zentera. Share-based compensation expense by type of share-based award (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Stock Options $ 12,524 $ 4,820 20,302 8,671 Employee Stock Purchase Plan 110 110 212 110 RSAs and RSUs 4,130 4,989 6,397 10,829 $ 16,764 $ 9,919 $ 26,911 $ 19,610 Stock Options and Restricted Stock Units The exercise price of stock options granted is equal to the closing price of the Company’s common stock on the date of grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes model. Due to the Company’s limited operating history and a lack of company specific historical and implied volatility data, the Company estimates expected volatility based on the historical volatility of a group of similar companies that are publicly traded. The historical volatility data was computed using the daily closing prices for the selected companies’ shares during the equivalent period of the calculated expected term of the stock-based awards. The Company uses the “simplified method” for estimating the expected term of employee options, whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option (generally 10 years). The risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The Company has not issued any dividends and does not expect to issue dividends over the life of the options. As a result, the Company has estimated the dividend yield to be zero. The fair value of the stock options granted during the six months ended June 30, 2022 and June 30, 2021 was determined with the following assumptions: June 30, 2022 June 30, 2021 Expected volatility 73.6% - 80.5%% 75.1% - 76.6% Average expected term (in years) 6.0 - 6.5 5.3 - 6.2 Risk-free interest rate 1.5% - 3.2% 0.5% - 1.1% Expected dividend yield — % — % Employee Stock Purchase Plan In April 2020, the Company’s Board of Directors adopted, and the Company’s stockholders approved the Zentalis Pharmaceuticals, Inc. 2020 Employee Stock Purchase Plan (the “ESPP”), which was subsequently amended and restated effective March 15, 2021. The maximum aggregate number of shares of the Company’s common stock available for issuance under the ESPP at June 30, 2022 was 1,969,608. Under the terms of the ESPP, the Company’s employees may elect to have up to 20% of their compensation, up to a maximum of $21,250 per calendar year, withheld to purchase shares of the Company’s common stock for a purchase price equal to 85% of the lower of the fair market value per share (at closing) of the Company’s common stock on (i) the first trading day of a six-month offering period, or (ii) the applicable purchase date, defined as the last trading day of the six-month offering period. The weighted average assumptions used to estimate the fair value of stock purchase rights under the ESPP are as follows: Ended June 30, 2022 ESPP Volatility 73.3 % Expected term (years) 0.5 Risk free rate 1.1 % Expected dividend yield — Compensation Expense Summary Total unrecognized estimated compensation cost by type of award and the weighted average requisite service period over which such expense is expected to be recognized (in thousands, unless otherwise noted): June 30, 2022 Unrecognized Remaining Stock options $ 117,461 3.26 RSAs 569 1.20 RSUs 13,278 3.13 ESPP $ 110 0.25 During the six months ended June 30, 2022, we issued 42.0 thousand shares of common stock in connection with the exercises of stock options. For the six months ended June 30, 2022, 0.1 million shares of common stock

Commitment and Contingencies

Commitment and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Contingencies From time to time, we may be involved in various disputes, including lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. Any of these claims could subject us to costly legal expenses. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in a liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss to the extent necessary to make the consolidated financial statements not misleading. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in our consolidated financial statements. While we do generally believe that we have adequate insurance to cover many different types of liabilities, our insurance carriers may deny coverage, or our policy limits may be inadequate to fully satisfy any damage awards or settlement. If this were to happen, the payment of any such awards could have a material adverse effect on our consolidated results of operations and financial position. Additionally, any such claims, whether or not successful, could damage our reputation and business. We are currently not a party to any legal proceedings that require a loss liability to be recorded. Leases Our commitments include payments related to operating leases. Approximate annual future minimum operating lease payments as of June 30, 2022 are as follows (in thousands): Year Operating Leases 2022 (remaining) $ 1,602 2023 6,340 2024 6,486 2025 6,799 2026 7,278 Thereafter 46,229 Total minimum lease payments: 74,734 Less: imputed interest (27,929) Total operating lease liabilities 46,805 Less: current portion (1,733) Lease liability, net of current portion $ 45,072

Net Loss Per Common Share

Net Loss Per Common Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Net Loss Per Common Share	Net Loss Per Common Share Basic and diluted net loss per common share were calculated as follows (in thousands except per share amounts): Three Months Ended 2022 2021 Numerator: Net loss attributable to Zentalis $ (68,357) $ (54,574) Denominator: Weighted average number of common shares outstanding, basic and diluted 51,117 40,738 Net loss per common share $ (1.34) $ (1.34) Our potential and dilutive securities, which include outstanding stock options, unvested RSAs and unvested RSUs have been excluded from the computation of diluted net loss per common share as the effect would be anti-dilutive. The following common stock equivalents have been excluded from the calculations of diluted net loss per common share because their inclusion would be antidilutive (in thousands). June 30, 2022 2021 Outstanding stock options 7,828 4,078 Unvested RSAs 222 536 Unvested RSUs 472 534 8,522 5,148

Related Party Disclosures

Related Party Disclosures	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
Related Party Disclosures	Related Party Disclosures Tempus Kimberly Blackwell, M.D., our Chief Executive Officer and a member of our Board of Directors, was previously employed by Tempus Labs, Inc. ("Tempus") and now serves as an advisor of Tempus. The Company entered into a Master Services Agreement with Tempus in December 2020 to provide data licensing and research services. There were immaterial and $1.0 million fees incurred for services performed by Tempus for the six months ended June 30, 2022 and 2021, respectively. Zentera Kevin D. Bunker, Ph.D., our Chief Operating Officer, serves as a member of the Board of Directors of Zentera. Accordingly, the Company identifies Zentera as a related party. In May 2020, we entered into the Zentera Sublicenses, pursuant to which we collaborate with Zentera on the development and comm ercialization of the Collaboration Products in the Zentera Collaboration Territory. Under the terms of the Zentera Sublicenses, Zentera is responsible for the costs of developing the Collaboration Products in the Zentera Collaboration Territory, and we are responsible for the costs of developing the Collaboration Products outside the Zentera Collaboration Territory, provided that Zentera will reimburse us for a portion of its costs for global data management, pharmacovigilance, safety database management, and chemistry, manufacturing and controls activities with respect to each Collaboration Product. Prior to the deconsolidation of Zentera during July 2021, these costs were eliminated in consolidation. For the six months ended June 30, 2022, the amounts incurred under this arrangement totaled $5.1 million and are presented as contra-research and development expense in the consolidated statement of operations. During the six months ended June 30, 2022 we divested an early stage asset to Zentera for $0.2 million.

Interim Unaudited Financial S_2

Interim Unaudited Financial Statements (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to a quarterly report on Form 10-Q. The year-end condensed consolidated balance sheet data was derived from the Company’s audited financial statements but does not include all disclosures required by U.S. GAAP. These interim unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 24, 2022. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operation for the periods presented, with such adjustments consisting only of normal recurring adjustments. Certain reclassifications have been made to the prior period condensed consolidated balance sheet to conform to the current period presentation.
Consolidation	The accompanying interim unaudited condensed consolidated financial statements include our wholly-owned subsidiaries and variable interest entities (“VIEs”) for the periods in which we determined we were the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We evaluate our ownership, contractual and other interests in entities that are not wholly-owned to determine if these entities are VIEs, and, if so, whether we are the primary beneficiary of the VIE. In determining whether we are the primary beneficiary of a VIE and therefore required to consolidate the VIE, we apply a qualitative approach that determines whether we have both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of, or the rights to receive benefits from, the VIE that could potentially be significant to that VIE. We will continuously assess whether we are the primary beneficiary of a VIE, as changes to existing relationships or future transactions may result in the consolidation or deconsolidation of such VIE. During the periods presented, we have not provided any other material financial or other support to our VIEs that we were not contractually required to provide. The equity method is used to account for investments in which we have the ability to exercise significant influence, but not control, over the investee. Such investments are recorded on the balance sheet, and the share of net income or losses of equity investments is recognized on a one quarter lag in investment and other income (expense), net.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that management believes to be reasonable under the circumstances. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from management’s estimates. Though the impact of the COVID-19 pandemic to our business and operating results presents additional uncertainty, we continue to use the best information available to inform our critical accounting estimates.

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Reconciliation of Equity Attributable to Noncontrolling Interest	The following is a reconciliation of equity (net assets) attributable to the noncontrolling interest (in thousands): June 30, December 31, 2022 2021 Noncontrolling interest at beginning of period $ 528 $ 24,795 Net loss attributable to noncontrolling interest (195) (7,368) Deconsolidation of Zentera — (16,899) Noncontrolling interest at end of period $ 333 $ 528

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Components of Available-for-sale Marketable Securities	Available-for-sale marketable securities consisted of the following (in thousands): June 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Commercial paper $ 255,912 $ — $ (763) $ 255,149 Corporate Debt Securities 5,063 — (59) 5,004 US Government Agencies 18,997 — (78) 18,919 US Treasury 121,882 5 (881) 121,006 $ 401,854 $ 5 $ (1,781) $ 400,078 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Commercial paper $ 199,321 $ 11 $ (55) $ 199,277 Corporate Debt Securities 10,085 — (7) 10,078 US Government Agencies 20,032 1 — 20,033 US Treasury 50,860 — (75) 50,785 $ 280,298 $ 12 $ (137) $ 280,173
Contractual Maturities of Available-for-sale Debt Securities	Contractual maturities of available-for-sale debt securities are as follows (in thousands): June 30, 2022 December 31, 2021 Estimated Fair Value Due within one year $ 396,203 $ 258,948 After one but within five years 3,875 21,225 $ 400,078 $ 280,173
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): June 30, 2022 December 31, 2021 Level 1 Level 2 Total estimated fair value Level 1 Level 2 Total estimated fair value Cash equivalents: Money market funds $ 30,223 $ — $ 30,223 $ 43,653 $ — $ 43,653 Commercial paper 18,943 — 18,943 — — — Total cash equivalents: 49,166 — 49,166 43,653 — 43,653 Available-for-sale marketable securities: Commercial paper — 255,149 255,149 — 199,277 199,277 Corporate Debt Securities — 5,004 5,004 — 10,078 10,078 US Government Agencies — 18,919 18,919 — 20,033 20,033 US Treasury securities 121,006 — 121,006 50,785 — 50,785 Total available-for-sale marketable securities: 121,006 279,072 400,078 50,785 229,388 280,173 Total assets measured at fair value $ 170,172 $ 279,072 $ 449,244 $ 94,438 $ 229,388 $ 323,826

Prepaid Expenses and Other As_2

Prepaid Expenses and Other Assets (Tables)	6 Months Ended
	Jun. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Summary of Prepaid Expenses and Other Assets	Prepaid expenses and other assets consisted of the following (in thousands): June 30, December 31, 2022 2021 Prepaid insurance $ 2,324 $ 990 Prepaid software licenses and maintenance 483 403 Foreign R&D credit refund 1,719 1,808 Prepaid research and development expenses 15,909 11,204 Interest receivable 465 258 Zentera receivable 2,981 2,373 Other prepaid expenses 462 644 Total prepaid expenses and other assets 24,343 17,680 Less long-term portion 11,938 7,040 Total prepaid expenses and other assets, current $ 12,405 $ 10,640

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment, net	Property and equipment, net consisted of the following (in thousands): June 30, December 31, 2022 2021 Lab equipment $ 2,585 $ 2,057 Leasehold improvements 4,649 4,515 Office equipment and furniture 2,065 2,123 Computer equipment 150 211 Construction in progress 97 34 Subtotal 9,546 8,940 Accumulated depreciation and amortization (1,328) (792) Property and equipment, net $ 8,218 $ 8,148

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consist of the following (in thousands): June 30, December 31, 2022 2021 Accrued research and development expenses $ 23,745 $ 18,531 Accrued employee expenses 8,195 9,250 Accrued legal expenses 1,372 669 Accrued general and administrative expenses 856 1,480 Lease liability 1,733 1,453 Taxes payable 694 971 Total accrued expenses $ 36,595 $ 32,354

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Schedule of Share-based Compensation Expense	Total share-based compensation expense related to share based awards was comprised of the following (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Research and development expense $ 5,155 $ 3,923 $ 10,197 $ 7,049 General and administrative expense 11,609 5,996 16,714 12,561 Total share-based compensation expense $ 16,764 $ 9,919 $ 26,911 $ 19,610 Share-based compensation expense by type of share-based award (in thousands): Three Months Ended Six Months Ended 2022 2021 2022 2021 Stock Options $ 12,524 $ 4,820 20,302 8,671 Employee Stock Purchase Plan 110 110 212 110 RSAs and RSUs 4,130 4,989 6,397 10,829 $ 16,764 $ 9,919 $ 26,911 $ 19,610
Schedule of Valuation Assumptions	The fair value of the stock options granted during the six months ended June 30, 2022 and June 30, 2021 was determined with the following assumptions: June 30, 2022 June 30, 2021 Expected volatility 73.6% - 80.5%% 75.1% - 76.6% Average expected term (in years) 6.0 - 6.5 5.3 - 6.2 Risk-free interest rate 1.5% - 3.2% 0.5% - 1.1% Expected dividend yield — % — %
Schedule of Valuation Assumptions, ESPP	The weighted average assumptions used to estimate the fair value of stock purchase rights under the ESPP are as follows: Ended June 30, 2022 ESPP Volatility 73.3 % Expected term (years) 0.5 Risk free rate 1.1 % Expected dividend yield —
Share-based Compensation Expense by Type of Share-based Award	Total unrecognized estimated compensation cost by type of award and the weighted average requisite service period over which such expense is expected to be recognized (in thousands, unless otherwise noted): June 30, 2022 Unrecognized Remaining Stock options $ 117,461 3.26 RSAs 569 1.20 RSUs 13,278 3.13 ESPP $ 110 0.25

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Operating Lease Payments	Approximate annual future minimum operating lease payments as of June 30, 2022 are as follows (in thousands): Year Operating Leases 2022 (remaining) $ 1,602 2023 6,340 2024 6,486 2025 6,799 2026 7,278 Thereafter 46,229 Total minimum lease payments: 74,734 Less: imputed interest (27,929) Total operating lease liabilities 46,805 Less: current portion (1,733) Lease liability, net of current portion $ 45,072

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Loss Per Unit	Basic and diluted net loss per common share were calculated as follows (in thousands except per share amounts): Three Months Ended 2022 2021 Numerator: Net loss attributable to Zentalis $ (68,357) $ (54,574) Denominator: Weighted average number of common shares outstanding, basic and diluted 51,117 40,738 Net loss per common share $ (1.34) $ (1.34)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Unit	The following common stock equivalents have been excluded from the calculations of diluted net loss per common share because their inclusion would be antidilutive (in thousands). June 30, 2022 2021 Outstanding stock options 7,828 4,078 Unvested RSAs 222 536 Unvested RSUs 472 534 8,522 5,148

Significant Transactions (Detai

Significant Transactions (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Investment in Zentera Therapeutics	$ 30,406	$ 30,406	$ 37,495
Zentera
Schedule of Equity Method Investments [Line Items]
Deferred tax liability, deconsolidation of Zentera	6,400	6,400
Gain on deconsolidation of Zentera, net of tax			$ 51,600
In-process research and development	5,200	5,200
Contra-research and development expense	$ 3,000	$ 5,100

Business Combinations - Narrati

Business Combinations - Narrative (Details) - Kalyra Pharmaceuticals, Inc. $ in Millions	Dec. 21, 2017 USD ($)
Variable Interest Entity [Line Items]
Cash payments to acquire interest	$ 4.5
Ownership percentage	25%

Business Combinations - Reconci

Business Combinations - Reconciliation of Equity (Net Assets) Attributable to Noncontrolling Interest (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Noncontrolling interest at beginning of period			$ 528
Net loss attributable to noncontrolling interests	$ (35)	$ (488)	(195)	$ (1,031)
Noncontrolling interest at end of period	333		333		$ 528
VIE, Primary Beneficiary
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Noncontrolling interest at beginning of period			528	$ 24,795	24,795
Net loss attributable to noncontrolling interests			(195)		(7,368)
Deconsolidation of Zentera			0		(16,899)
Noncontrolling interest at end of period	$ 333		$ 333		$ 528

Fair Value Measurement - Compon

Fair Value Measurement - Components of Available-for-sale Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 401,854	$ 280,298
Gross Unrealized Gains	5	12
Gross Unrealized Losses	(1,781)	(137)
Estimated Fair Value	400,078	280,173
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	255,912	199,321
Gross Unrealized Gains	0	11
Gross Unrealized Losses	(763)	(55)
Estimated Fair Value	255,149	199,277
Corporate Debt Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	5,063	10,085
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(59)	(7)
Estimated Fair Value	5,004	10,078
US Government Agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	18,997	20,032
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(78)	0
Estimated Fair Value	18,919	20,033
US Treasury
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	121,882	50,860
Gross Unrealized Gains	5	0
Gross Unrealized Losses	(881)	(75)
Estimated Fair Value	$ 121,006	$ 50,785

Fair Value Measurement - Narrat

Fair Value Measurement - Narrative (Details) $ in Millions	Jun. 30, 2022 USD ($) security
Fair Value Disclosures [Abstract]
Number of available-for-sale securities in unrealized loss position | security	62
Debt securities fair market value	$ 399.2
Fair market value of available-for-sale securities in unrealized loss position	$ 1.8

Fair Value Measurement - Contra

Fair Value Measurement - Contractual Maturities of Available-for-sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Due within one year	$ 396,203	$ 258,948
After one but within five years	3,875	21,225
Total	$ 400,078	$ 280,173

Fair Value Measurement - Fair V

Fair Value Measurement - Fair Value of Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	$ 49,166	$ 43,653
Marketable securities, available-for-sale	400,078	280,173
Total fair value of assets	449,244	323,826
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	49,166	43,653
Marketable securities, available-for-sale	121,006	50,785
Total fair value of assets	170,172	94,438
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	0	0
Marketable securities, available-for-sale	279,072	229,388
Total fair value of assets	279,072	229,388
Commercial paper
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	255,149	199,277
Commercial paper | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	0	0
Commercial paper | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	255,149	199,277
Corporate Debt Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	5,004	10,078
Corporate Debt Securities | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	0	0
Corporate Debt Securities | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	5,004	10,078
US Government Agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	18,919	20,033
US Government Agencies | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	0	0
US Government Agencies | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	18,919	20,033
US Treasury securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	121,006	50,785
US Treasury securities | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	121,006	50,785
US Treasury securities | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Marketable securities, available-for-sale	0	0
Money market funds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	30,223	43,653
Money market funds | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	30,223	43,653
Money market funds | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	0	0
Commercial paper
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	18,943	0
Commercial paper | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	18,943	0
Commercial paper | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash equivalents	$ 0	$ 0

Prepaid Expenses and Other As_3

Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid insurance	$ 2,324	$ 990
Prepaid software licenses and maintenance	483	403
Foreign R&D credit refund	1,719	1,808
Prepaid research and development expenses	15,909	11,204
Interest receivable	465	258
Zentera receivable	2,981	2,373
Other prepaid expenses	462	644
Total prepaid expenses and other assets	24,343	17,680
Less long-term portion	11,938	7,040
Total prepaid expenses and other assets, current	$ 12,405	$ 10,640

Property and Equipment, net - S

Property and Equipment, net - Summary (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Subtotal	$ 9,546	$ 8,940
Accumulated depreciation and amortization	(1,328)	(792)
Property and equipment, net	8,218	8,148
Lab equipment
Property, Plant and Equipment [Line Items]
Subtotal	2,585	2,057
Leasehold improvements
Property, Plant and Equipment [Line Items]
Subtotal	4,649	4,515
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Subtotal	2,065	2,123
Computer equipment
Property, Plant and Equipment [Line Items]
Subtotal	150	211
Construction in progress
Property, Plant and Equipment [Line Items]
Subtotal	$ 97	$ 34

Property and Equipment, net - N

Property and Equipment, net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 348	$ 119	$ 692	$ 198

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued research and development expenses	$ 23,745	$ 18,531
Accrued employee expenses	8,195	9,250
Accrued legal expenses	1,372	669
Accrued general and administrative expenses	856	1,480
Lease liability	1,733	1,453
Taxes payable	694	971
Total accrued expenses	$ 36,595	$ 32,354

Stockholders_ Equity - Narrativ

Stockholders’ Equity - Narrative (Details) - USD ($)			1 Months Ended	6 Months Ended
	May 18, 2022	Apr. 29, 2022	Apr. 30, 2020	Jun. 30, 2022	Jun. 30, 2021	Jul. 31, 2022
Class of Stock [Line Items]
Issuance of common stock upon exercise of options, net (in shares)				42,000
Shares issued upon vesting of certain RSAs (in shares)				100,000
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement
Class of Stock [Line Items]
Gross proceeds from issuance of common stock		$ 4,200,000
Stock Options
Class of Stock [Line Items]
Generally expected vesting term of the option contract (in years)				10 years
Expected dividend yield				0%	0%
Options outstanding (in shares)				7,800,000
Employee Stock Purchase Plan
Class of Stock [Line Items]
Number of shares reserved for future issuance (in shares)				1,969,608
Expected dividend yield				0%
ESPP maximum percent of compensation to contribute				20%
Maximum contribution amount				$ 21,250
ESPP purchase price of common stock, percent of market price				85%
Offering period (in months)				6 months
RSAs
Class of Stock [Line Items]
Non-Option equity instruments, outstanding (in shares)				200,000
RSUs
Class of Stock [Line Items]
Non-Option equity instruments, outstanding (in shares)				500,000
The 2020 Plan
Class of Stock [Line Items]
Non-Option equity instruments, outstanding (in shares)				8,300,142
Number of shares available for future grants (in shares)				284,429
2022 Inducement Plan | Subsequent Event
Class of Stock [Line Items]
Number of shares reserved for future issuance (in shares)						1,500,000
Zentera Stock Plan
Class of Stock [Line Items]
Employee benefits and share-based compensation				$ 0	$ 138,000
Common Stock | Direct Offering
Class of Stock [Line Items]
Number of shares issued and sold (in shares)		953,834
Share price (in dollars per share)		$ 26.21
Gross proceeds from issuance of common stock		$ 25,000,000
Issuance fees and expenses		$ 300,000
Common Stock | Follow-On Offering
Class of Stock [Line Items]
Number of shares issued and sold (in shares)	10,330,000
Share price (in dollars per share)	$ 19.38
Gross proceeds from issuance of common stock	$ 200,200,000
Issuance fees and expenses	$ 11,400,000
Common Stock | The 2020 Plan
Class of Stock [Line Items]
Shares authorized to be issued under plan (in shares)			5,600,000
Percent of common stock outstanding used as threshold to calculate shares available for issuance			5%
Common Class B | The 2020 Plan | Maximum
Class of Stock [Line Items]
Shares authorized to be issued under plan (in shares)			1,250,000

Stockholders_ Equity - Share-ba

Stockholders’ Equity - Share-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 16,764	$ 9,919	$ 26,911	$ 19,610
Research and development expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	5,155	3,923	10,197	7,049
General and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 11,609	$ 5,996	$ 16,714	$ 12,561

Stockholders_ Equity - Share-_2

Stockholders’ Equity - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 16,764	$ 9,919	$ 26,911	$ 19,610
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	12,524	4,820	20,302	8,671
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	110	110	212	110
RSAs and RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 4,130	$ 4,989	$ 6,397	$ 10,829

Stockholders_ Equity - Fair Val

Stockholders’ Equity - Fair Value Assumptions for Stock Options (Details) - Stock Options	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected volatility, minimum	73.60%	75.10%
Expected volatility, maximum	80.50%	76.60%
Risk-free interest rate, minimum	1.50%	0.50%
Risk-free interest rate, maximum	3.20%	1.10%
Expected dividend yield	0%	0%
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Average expected term (in years)	6 years	5 years 3 months 18 days
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Average expected term (in years)	6 years 6 months	6 years 2 months 12 days

Stockholders_ Equity - Fair V_2

Stockholders’ Equity - Fair Value Assumptions for ESPP (Details) - Employee Stock Purchase Plan	6 Months Ended
	Jun. 30, 2022
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Volatility	73.30%
Expected term (years)	6 months
Risk free rate	1.10%
Expected dividend yield	0%

Stockholders_ Equity - Unrecogn

Stockholders’ Equity - Unrecognized Compensation Cost (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense, stock options	$ 117,461
Remaining Weighted-Average Recognition Period (years)	3 years 3 months 3 days
RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense, other than options	$ 569
Remaining Weighted-Average Recognition Period (years)	1 year 2 months 12 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense, other than options	$ 13,278
Remaining Weighted-Average Recognition Period (years)	3 years 1 month 17 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense, other than options	$ 110
Remaining Weighted-Average Recognition Period (years)	3 months

Commitment and Contingencies -

Commitment and Contingencies - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
2022 (remaining)	$ 1,602
2023	6,340
2024	6,486
2025	6,799
2026	7,278
Thereafter	46,229
Total minimum lease payments:	74,734
Less: imputed interest	(27,929)
Total operating lease liabilities	46,805
Less: current portion	(1,733)	$ (1,453)
Lease liability, net of current portion	$ 45,072

Commitment and Contingencies _2

Commitment and Contingencies - Narrative (Details)	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Operating lease, weighted-average remaining lease term (in years)	10 years 3 months 18 days

Net Loss Per Common Share - Cal

Net Loss Per Common Share - Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator:
Net loss attributable to Zentalis	$ (68,357)	$ (54,574)	$ (127,434)	$ (104,475)
Denominator:
Weighted average number of common shares outstanding, basic (in shares)	51,117	40,738	48,197	40,549
Weighted average number of common shares outstanding, diluted (in shares)	51,117	40,738	48,197	40,549
Net loss per common share, basic (in dollars per share)	$ (1.34)	$ (1.34)	$ (2.64)	$ (2.58)
Net loss per common share, diluted (in dollars per share)	$ (1.34)	$ (1.34)	$ (2.64)	$ (2.58)

Net Loss Per Common Share - Ant

Net Loss Per Common Share - Antidilutive Securities (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per unit (in shares)	8,522	5,148
Outstanding stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per unit (in shares)	7,828	4,078
Unvested RSAs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per unit (in shares)	222	536
Unvested RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per unit (in shares)	472	534

Related Party Disclosures (Deta

Related Party Disclosures (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021
Zentera
Related Party Transaction [Line Items]
Contra-research and development expense	$ 3	$ 5.1
Divestiture of early stage asset		0.2
Affiliated Entity | Master Services Agreement
Related Party Transaction [Line Items]
Due to related parties	$ 0	$ 0	$ 1