Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 04, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38501 | |
Entity Registrant Name | SCHOLAR ROCK HOLDING CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-3750435 | |
Entity Address, Address Line One | 301 Binney Street, 3rd Floor | |
Entity Address, City or Town | Cambridge | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02142 | |
City Area Code | 857 | |
Local Phone Number | 259 3860 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SRRK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 34,460,597 | |
Entity Central Index Key | 0001727196 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 206,919 | $ 160,358 |
Marketable securities | 75,298 | 180,673 |
Prepaid expenses and other current assets | 8,149 | 3,373 |
Total current assets | 290,366 | 344,404 |
Property and equipment, net | 9,433 | 8,121 |
Operating lease right-of-use asset | 28,733 | 32,261 |
Restricted cash | 2,498 | 2,498 |
Other long-term assets | 1,021 | 1,021 |
Total assets | 332,051 | 388,305 |
Current liabilities: | ||
Accounts payable | 1,627 | 3,409 |
Accrued expenses | 15,454 | 14,958 |
Operating lease liability | 6,999 | 5,366 |
Deferred revenue | 42,706 | 18,816 |
Other current liabilities | 236 | 15 |
Total current liabilities | 67,022 | 42,564 |
Long-term portion of operating lease liability | 23,523 | 27,093 |
Long-term debt | 24,847 | 24,680 |
Other long-term liabilities | 3 | 5 |
Long-term portion of deferred revenue | 33,193 | |
Total liabilities | 115,395 | 127,535 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized at June 30, 2021 and December 31, 2020; no shares issued and outstanding at June 30, 2021 and December 31, 2020 | ||
Common stock, $0.001 par value; 150,000,000 shares authorized; 34,459,787 and 34,152,470 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 34 | 34 |
Additional paid-in capital | 519,322 | 505,069 |
Accumulated other comprehensive income (loss) | 9 | (2) |
Accumulated deficit | (302,709) | (244,331) |
Total stockholders' equity | 216,656 | 260,770 |
Total liabilities and stockholders' equity | $ 332,051 | $ 388,305 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 34,459,787 | 34,152,470 |
Common stock, shares outstanding | 34,459,787 | 34,152,470 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||
Revenue | $ 4,595 | $ 3,900 | $ 9,303 | $ 8,930 |
Operating expenses: | ||||
Research and development | 25,603 | 16,997 | 48,152 | 33,899 |
General and administrative | 9,265 | 6,365 | 18,631 | 12,187 |
Total operating expenses | 34,868 | 23,362 | 66,783 | 46,086 |
Loss from operations | (30,273) | (19,462) | (57,480) | (37,156) |
Other income (expense), net | (434) | 181 | (898) | 805 |
Net loss | $ (30,707) | $ (19,281) | $ (58,378) | $ (36,351) |
Net loss per share, basic and diluted | $ (0.84) | $ (0.65) | $ (1.60) | $ (1.23) |
Weighted average common shares outstanding, basic and diluted | 36,582,708 | 29,690,280 | 36,482,132 | 29,608,814 |
Comprehensive loss: | ||||
Net loss | $ (30,707) | $ (19,281) | $ (58,378) | $ (36,351) |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on marketable securities | (14) | (185) | 11 | 12 |
Total other comprehensive income (loss) | (14) | (185) | 11 | 12 |
Comprehensive loss | $ (30,721) | $ (19,466) | $ (58,367) | $ (36,339) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total |
Balance at beginning at Dec. 31, 2019 | $ 30 | $ 270,682 | $ 37 | $ (157,848) | $ 112,901 |
Balance at beginning (in shares) at Dec. 31, 2019 | 29,792,922 | ||||
Increase (decrease) in Stockholders' Equity | |||||
Unrealized gain (loss) on marketable securities | 197 | 197 | |||
Exercise of stock options | 405 | 405 | |||
Exercise of stock options (in shares) | 40,252 | ||||
Equity-based compensation expense | 2,214 | 2,214 | |||
Net Loss | (17,070) | (17,070) | |||
Balance at end at Mar. 31, 2020 | $ 30 | 273,301 | 234 | (174,918) | 98,647 |
Balance at end (in shares) at Mar. 31, 2020 | 29,833,174 | ||||
Balance at beginning at Dec. 31, 2019 | $ 30 | 270,682 | 37 | (157,848) | 112,901 |
Balance at beginning (in shares) at Dec. 31, 2019 | 29,792,922 | ||||
Increase (decrease) in Stockholders' Equity | |||||
Unrealized gain (loss) on marketable securities | 12 | ||||
Net Loss | (36,351) | ||||
Balance at end at Jun. 30, 2020 | $ 30 | 276,294 | 49 | (194,199) | 82,174 |
Balance at end (in shares) at Jun. 30, 2020 | 29,874,687 | ||||
Balance at beginning at Mar. 31, 2020 | $ 30 | 273,301 | 234 | (174,918) | 98,647 |
Balance at beginning (in shares) at Mar. 31, 2020 | 29,833,174 | ||||
Increase (decrease) in Stockholders' Equity | |||||
Unrealized gain (loss) on marketable securities | (185) | (185) | |||
Restricted shares forfeited during the period (in shares) | (42,010) | ||||
Exercise of stock options | 598 | 598 | |||
Exercise of stock options (in shares) | 83,523 | ||||
Equity-based compensation expense | 2,395 | 2,395 | |||
Net Loss | (19,281) | (19,281) | |||
Balance at end at Jun. 30, 2020 | $ 30 | 276,294 | 49 | (194,199) | 82,174 |
Balance at end (in shares) at Jun. 30, 2020 | 29,874,687 | ||||
Balance at beginning at Dec. 31, 2020 | $ 34 | 505,069 | (2) | (244,331) | 260,770 |
Balance at beginning (in shares) at Dec. 31, 2020 | 34,152,470 | ||||
Increase (decrease) in Stockholders' Equity | |||||
Unrealized gain (loss) on marketable securities | 25 | 25 | |||
Exercise of stock options | 2,743 | 2,743 | |||
Exercise of stock options (in shares) | 245,920 | ||||
Equity-based compensation expense | 4,673 | 4,673 | |||
Net Loss | (27,671) | (27,671) | |||
Balance at end at Mar. 31, 2021 | $ 34 | 512,485 | 23 | (272,002) | 240,540 |
Balance at end (in shares) at Mar. 31, 2021 | 34,398,390 | ||||
Balance at beginning at Dec. 31, 2020 | $ 34 | 505,069 | (2) | (244,331) | 260,770 |
Balance at beginning (in shares) at Dec. 31, 2020 | 34,152,470 | ||||
Increase (decrease) in Stockholders' Equity | |||||
Unrealized gain (loss) on marketable securities | 11 | ||||
Net Loss | (58,378) | ||||
Balance at end at Jun. 30, 2021 | $ 34 | 519,322 | 9 | (302,709) | 216,656 |
Balance at end (in shares) at Jun. 30, 2021 | 34,459,787 | ||||
Balance at beginning at Mar. 31, 2021 | $ 34 | 512,485 | 23 | (272,002) | 240,540 |
Balance at beginning (in shares) at Mar. 31, 2021 | 34,398,390 | ||||
Increase (decrease) in Stockholders' Equity | |||||
Unrealized gain (loss) on marketable securities | (14) | (14) | |||
Exercise of stock options | 611 | 611 | |||
Exercise of stock options (in shares) | 61,397 | ||||
Equity-based compensation expense | 6,226 | 6,226 | |||
Net Loss | (30,707) | (30,707) | |||
Balance at end at Jun. 30, 2021 | $ 34 | $ 519,322 | $ 9 | $ (302,709) | $ 216,656 |
Balance at end (in shares) at Jun. 30, 2021 | 34,459,787 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (58,378) | $ (36,351) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,227 | 784 |
Amortization of debt discount and debt issuance costs | 167 | |
Loss on sale of property and equipment | 24 | |
Equity-based compensation | 10,899 | 4,609 |
Amortization/accretion of investment securities | 517 | (196) |
Non-cash operating lease expense | 3,107 | 523 |
Change in operating assets and liabilities: | ||
Accounts receivable | 25,000 | |
Prepaid expenses and other current assets | (4,355) | (1,292) |
Other assets | (963) | |
Accounts payable | (1,779) | 1,543 |
Accrued expenses | 1,227 | (1,377) |
Operating lease liabilities | (1,937) | (541) |
Deferred revenue | (9,303) | (8,930) |
Other liabilities | 227 | |
Net cash used in operating activities | (58,357) | (17,191) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (3,295) | (283) |
Purchases of marketable securities | (30,131) | (19,400) |
Maturities of marketable securities | 135,000 | 114,700 |
Net cash provided by investing activities | 101,574 | 95,017 |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 3,354 | 1,003 |
Other | (10) | (9) |
Net cash provided by financing activities | 3,344 | 994 |
Net increase in cash and cash equivalents and restricted cash | 46,561 | 78,820 |
Cash and cash equivalents and restricted cash, beginning of period | 162,856 | 38,806 |
Cash and cash equivalents and restricted cash, end of period | 209,417 | 117,626 |
Supplemental disclosure of non-cash items: | ||
Property and equipment purchases in accounts payable and accrued expenses | 635 | $ 7 |
Supplemental cash flow information: | ||
Cash paid for interest | $ 992 |
Nature of the Business
Nature of the Business | 6 Months Ended |
Jun. 30, 2021 | |
Nature of the Business | |
Nature of the Business | 1. Nature of the Business Scholar Rock Holding Corporation and its subsidiaries (collectively, the βCompanyβ) is a biopharmaceutical company focused on the discovery and development of innovative medicines for the treatment of serious diseases in which signaling by protein growth factors plays a fundamental role. The Companyβs novel understanding of the molecular mechanisms of growth factor activation enabled the development of a proprietary platform for the discovery and development of monoclonal antibodies that locally and selectively target these signaling proteins at the cellular level. The Companyβs first product candidate, apitegromab (formerly SRK-015), is a selective, fully human, monoclonal antibody, with a unique mechanism of action that results in the inhibition of the activation of the growth factor, myostatin, in skeletal muscle. Apitegromab is being developed as a potential first muscle-directed therapy for the treatment of spinal muscular atrophy (βSMAβ). Apitegromab was evaluated in the Companyβs TOPAZ Phase 2 proof-of-concept trial for the treatment of patients with Type 2 and Type 3 SMA and positive 12-month top-line results were announced in April 2021 demonstrating apitegromabβs transformative potential. A randomized, double-blind, placebo-controlled Phase 3 trial in patients with non-ambulatory Type 2 and 3 SMA is anticipated to initiate by year-end 2021. The Companyβs second product candidate, SRK-181, is being developed for the treatment of cancers that are resistant to checkpoint inhibitor (βCPIβ) therapies, such as anti-PD-1 or anti-PD-L1 antibody therapies. SRK-181 is a selective inhibitor of the activation of latent transforming growth factor beta-1 (βTGFΞ²1β) that is being investigated in the DRAGON Phase 1 proof-of-concept trial in patients with locally advanced or metastatic solid tumors that exhibit primary resistance to anti-PD-(L)1 antibodies. The Company is progressing the Part A dose escalation portion of the DRAGON trial and plans to advance to Part B dose expansion in mid-2021. Additionally, the Company continues to create a pipeline of novel product candidates with the potential to transform the lives of patients suffering from a wide range of serious diseases, including neuromuscular disorders, cancer, and fibrosis. The Company was originally formed in May 2012. Its principal offices are in Cambridge, Massachusetts. Since its inception, the Companyβs operations have focused on research and development of monoclonal antibodies that selectively inhibit activation of growth factors for therapeutic effect, as well as establishing the Companyβs intellectual property portfolio and performing research and development activities. The Company has primarily financed its operations through various equity financings, including the initial public offering of its common stock (the βIPOβ) in May 2018, a secondary offering of common stock in June 2019, and a follow-on offering of common stock and pre-funded warrants completed in November 2020, as well as research and development collaboration agreements. Revenue generation activities have been limited to two collaborations, both containing research services and the issuance of a license. The first agreement, executed in 2013, was with Janssen Biotech, Inc. (βJanssenβ), a subsidiary of Johnson & Johnson. The second agreement (the βGilead Collaboration Agreementβ), executed in December 2018, was with Gilead Sciences, Inc. (βGileadβ). No revenues have been recorded from the sale of any commercial product. The Company is subject to a number of risks similar to other life science companies, including, but not limited to, successful discovery and development of its drug candidates, raising additional capital, development by its competitors of new technological innovations, protection of proprietary technology and regulatory approval and market acceptance of the Companyβs product candidates. The Company anticipates that it will continue to incur significant operating losses for the next several years as it continues to develop its product candidates. The Company believes that its existing cash, cash equivalents and marketable securities at June 30, 2021 will be sufficient to allow the Company to fund its current operations through at least a period of one year after the date the financial statements are issued. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Summary of Significant Accounting Policies The significant accounting policies used in preparation of the unaudited consolidated financial statements are described in the Companyβs audited consolidated financial statements as of and for the year ended December 31, 2020, and the notes thereto, which are included in the Companyβs Annual Report on Form 10-K. There have been no material changes to the significant accounting policies previously disclosed in the Companyβs Annual Report on Form 10-K for the year ended December 31, 2020. β Cash, Cash Equivalents and Restricted Cash β The following table reconciles cash, cash equivalents and restricted cash per the balance sheet to the statement of cash flows (in thousands): β β β β β β β β β As of June 30, β 2021 2020 Cash and cash equivalents β $ 206,919 β $ 115,128 Restricted cash β 2,498 β 2,498 β β $ 209,417 β $ 117,626 β Unaudited Interim Financial Information The consolidated financial statements of the Company included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the βSECβ). The unaudited consolidated financial statements include the accounts of Scholar Rock Holding Corporation and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the information furnished reflects all adjustments, all of which are of a normal and recurring nature, necessary for a fair presentation of the results for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and judgments that may affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial statements and the related reporting of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial InstrumentsβCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value of Financial Assets and Liabilities | |
Fair Value of Financial Assets and Liabilities | 3. Fair Value of Financial Assets and Liabilities The following tables summarize the assets and liabilities measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020 (in thousands): β β β β β β β β β β β β β β β Fair Value Measurements at June 30, 2021 β Total Level 1 Level 2 Level 3 Assets: β β β β β β β β Money market funds, included in cash and cash equivalents β $ 199,238 β $ 199,238 β $ β β $ β Marketable securities: β β β β U.S. Treasury obligations β β 75,298 β β 75,298 β β β β β β Total assets β $ 274,536 β $ 274,536 β $ β β $ β β β β β β β β β β β β β β β β β Fair Value Measurements at December 31, 2020 β Total Level 1 Level 2 Level 3 Assets: β β β β β β β β Money market funds, included in cash and cash equivalents β $ 119,841 β $ 119,841 β $ β β $ β U.S. Treasury obligations, included in cash and cash equivalents β β 9,998 β β 9,998 β β β β β β Marketable securities: β β β β U.S. Treasury obligations β 180,673 β 180,673 β β β β Total assets β $ 310,512 β $ 310,512 β $ β β $ β β Cash, cash equivalents and marketable securities are Level 1 assets and include investments in money market funds and U.S. government securities that are valued using quoted market prices. Accordingly, money market funds and government funds are categorized as Level 1 as of June 30, 2021 and December 31, 2020. There were no transfers of assets between fair value measurement levels during the three and six months ended June 30, 2021 or 2020. The carrying amounts reflected in the balance sheets for prepaid expenses and other current assets, accounts payable, and accrued expenses approximate their fair values at June 30, 2021 and December 31, 2020, due to their short-term nature. The Company believes the terms of its debt reflect current market conditions for an instrument with similar terms and maturity, therefore the carrying value of the Company's debt approximates its fair value based on Level 3 of the fair value hierarchy. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2021 | |
Marketable Securities | |
Marketable Securities | 4. Marketable Securities The following table summarizes the Companyβs investments as of June 30, 2021 (in thousands): β β β β β β β β β β β β β β β β β β Gross β β β β β Amortized β Unrealized β Estimated β Cost Gains Losses Fair Value Marketable securities available-for-sale: β β β β β β β β β U.S. Treasury obligations β $ 75,289 β $ 9 β $ β β $ 75,298 Total available-for-sale securities β $ 75,289 β $ 9 β $ β β $ 75,298 β The following table summarizes the Companyβs investments as of December 31, 2020 (in thousands): β β β β β β β β β β β β β β β β β β Gross β β β β β Amortized β Unrealized β Estimated β Cost Gains Losses Fair Value Marketable securities available-for-sale: β β β β β β β β β β β β U.S. Treasury obligations β $ 180,675 β $ 7 β $ (9) β $ 180,673 Total available-for-sale securities β $ 180,675 β $ 7 β $ (9) β $ 180,673 β |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2021 | |
Accrued Expenses | |
Accrued Expenses | 5. Accrued Expenses As of June 30, 2021 and December 31, 2020, accrued expenses consist of the following (in thousands): β β β β β β β β β As of β β June 30, December 31, β 2021 β 2020 Accrued external research and development expense β $ 9,059 β $ 5,387 Accrued payroll and related expenses β β 4,231 β β 6,663 Accrued professional and consulting expense β β 1,154 β β 1,141 Accrued other β β 552 β β 476 Accrued payable for property and equipment β 458 β 1,291 β β $ 15,454 β $ 14,958 β |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Equity-Based Compensation | |
Equity-Based Compensation | 6. Equity-Based Compensation The Company recorded equity-based compensation expense related to all equity-based awards, which was allocated as follows in the consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2021 and 2020 (in thousands): β β β β β β β β β β β β β β β Three Months Ended β Six Months Ended β β June 30, β June 30, β 2021 2020 2021 2020 Research and development expense β $ 2,847 β $ 887 β $ 4,958 β $ 1,702 General and administrative expense β 3,379 β 1,508 β 5,941 β 2,907 β β $ 6,226 β $ 2,395 β $ 10,899 β $ 4,609 β The following table summarizes the Companyβs unrecognized equity-based compensation expense as of June 30, 2021: β β β β β β β β β As of June 30, 2021 β β Unrecognized Expense (in thousands) Weighted Average Remaining Period of Recognition (years) Restricted Stock Awards $ 28 β 0.3 Restricted Stock Units β 13,783 β 3.6 Stock Options β 57,333 β 2.7 β $ 71,144 β β β Restricted Stock Awards The following table summarizes the Companyβs restricted stock award activity for the current year: β β β β β β β β β Weighted β β β β Average Fair β β β β Value per Share β Number of Shares at Issuance Restricted stock awards as of December 31, 2020 57,969 β $ 5.77 Vested (48,582) β $ 5.77 Restricted stock awards as of June 30, 2021 9,387 β $ 5.77 β Restricted Stock Units The following table summarizes the Companyβs restricted stock unit activity for the current year: β β β β β β β β β β β Weighted β β β β Average Grant β Number of Units Date Fair Value Restricted stock units as of December 31, 2020 β β $ β Granted 281,786 β $ 57.28 Forfeited (14,305) β $ 59.44 Restricted stock units as of June 30, 2021 267,481 β $ 57.17 β Stock Options The following table summarizes the Companyβs stock option activity for the current year: β β β β β β β β β β β β β β β β β β β Weighted β β β β β β β Weighted β Average β β β β β Number of β Average β Remaining β Aggregate β Shares Exercise Price Contractual Term Intrinsic Value β β β β β β β (in years) β (in thousands) Outstanding as of December 31, 2020 3,679,931 β $ 14.96 β 8.01 β $ 123,600 Granted 1,093,355 β $ 55.85 β β β β β Exercised β (307,317) β $ 10.91 β β β β β Cancelled (142,959) β $ 28.47 β β β β β Outstanding as of June 30, 2021 4,323,010 β $ 25.14 β 8.10 β $ 46,787 Options exercisable as of June 30, 2021 1,148,376 β $ 16.87 β 7.47 β $ 15,525 β Using the Black-Scholes option pricing model, the weighted average fair value of options granted during the six months ended June 30, 2021 was $40.93. The following weighted average assumptions were used in determining the fair value of options granted in the six months ended June 30, 2021 and 2020: β β β β β β β Six Months Ended β β June 30, β β 2021 2020 β Risk-free interest rate 0.74 % 1.24 % Expected dividend yield 0.0 % 0.0 % Expected term (years to liquidity) 6.21 β 6.19 β Expected volatility 87.89 % 81.86 % β |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 7. Commitments and Contingencies Operating Leases 620 Memorial Facility Lease β In March 2015, the Company entered into a 5-year lease of office and laboratory space for its corporate headquarters (the βLeaseβ) at 620 Memorial Drive in Cambridge, Massachusetts. The Lease was amended in February 2018, to add an additional space (the βExpansion Spaceβ) at the current location and to extend the Lease term (the βAmended Leaseβ). The Amended Lease covers approximately 20,751 square feet and expires in September 2023. Annual rent payments, including the Expansion Space, increase from $1.4 million to $1.7 million over the term of the Amended Lease. Variable lease payments include the Companyβs allocated share of costs incurred and expenditures made by the landlord in the operation and management of the building. The Company has the option to extend the term of the Amended Lease for one additional term of 5 years commencing after the Amended Lease expires. β On October 5, 2020, the Company entered into a Sublease Agreement (the βSubleaseβ) with Orna Therapeutics, Inc. (the βSubtenantβ) to sublease the space covered by the Amended Lease at 620 Memorial Drive, Cambridge, Massachusetts. The Sublease term commenced on February 1, 2021 and ends on August 31, 2023, unless terminated earlier. The Sublease provides for initial annual base rent of approximately $1.9 million. The Subtenant is obligated to pay for certain costs, taxes and operating expenses, subject to certain exclusions. The Sublease is subordinate to that certain Indenture of Lease, dated March 5, 2015, by and between 620 Memorial Leasehold LLC and Scholar Rock, Inc., as amended. 301 Binney Facility Lease β In November 2019, the Company entered into a lease of office and laboratory space at 301 Binney Street in Cambridge, Massachusetts to be used as its new corporate headquarters. The expiration date of the lease is in August 2025 and the Company has the option to extend the term by two years. The base rent is $6.9 million per year, subject to an annual increase of 3.5%, and the Company was subject to a free-rent period through mid-August 2020. Variable lease payments include the Companyβs allocated share of costs incurred and expenditures made by the landlord in the operation and management of the building. Under this lease, the Company will receive lease incentives of $14.1 million in the form of an allowance for tenant improvements related to the design and build out of the space, of which the Company has received $14.0 million as of June 30, 2021. In connection with the lease, the Company has secured a letter of credit for $2.3 million which renews automatically each year. The lease commencement date, for accounting purposes, was reached in September 2020. β Other information related to the Companyβs leases (excluding the Companyβs sublease income of $0.7 million and $1.0 million for the three and six months ended June 30, 2021, respectively) is as follows (in thousands, except lease term and discount rate): β β β β β β β β β β For Three Months Ended β For Six Months Ended β June 30, June 30, β β 2021 β 2021 Lease Cost: β β β β β β Operating lease cost β $ 2,158 β $ 4,312 Variable lease cost β β 545 β β 1,153 Total lease cost β $ 2,703 β $ 5,465 β β β β β β For Six Months Ended β β June 30, β β 2021 β Other information: β β β Operating cash flows used for operating leases $ 4,378 β Weighted average remaining lease term β 3.9 years β Weighted average incremental borrowing rate β 7.5 % β Specifica Antibody Library β On December 20, 2019 (the βEffective Dateβ), the Company entered into a Library Development and Transfer Agreement with Specifica Inc. (βSpecificaβ), whereby Specifica is responsible for developing and delivering a customized antibody display library (the βLibraryβ) for the Company to use to identify antibodies for further research, development, and commercialization. As of June 30, 2021 the Company has paid $2.0 million of the total $3.7 million in fees expected to be paid through 2023 related to the Library. As the return right has lapsed, all $3.7 million in fees have been recognized as expense to date. β Legal Proceedings β The Company, from time to time, may be party to litigation arising in the ordinary course of its business. The Company was not subject to any material legal proceedings during the six months ended June 30, 2021 and 2020. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt | |
Debt | 8. Debt On October 16, 2020 (the βClosing Dateβ) the Company entered into a Loan and Security Agreement with Oxford Finance LLC and Silicon Valley Bank for $50.0 million (the βLoan and Security Agreementβ). The first tranche of $25.0 million was funded on the Closing Date. The second $25.0 million tranche is available through December 31, 2021 upon dosing of the first patient in a Phase 3 trial for apitegromab and dosing of the first patient in Part B of the DRAGON Phase 1 trial for SRK-181. The Loan and Security Agreement will mature on May 1, 2025 and requires interest only payments for the first two years. The interest rate on the unpaid principal will be the greater of the Wall Street Journal prime rate plus 4.60% or 7.85% per annum. Prepayment is permitted and may include either a 2% or 3% fee (of the principal amount being prepaid), depending on when the prepayment is made. The Company is also required to make a final payment equal to 4% of the original principal amount. β |
Agreements
Agreements | 6 Months Ended |
Jun. 30, 2021 | |
Agreements | |
Agreements | 9. Agreements Collaboration with Gilead On December 19, 2018 (the βEffective Dateβ), the Company entered into a Master Collaboration Agreement (the βGilead Collaboration Agreementβ) with Gilead to discover and develop specific inhibitors of transforming growth factor beta (βTGFΞ²β) activation focused on the treatment of fibrotic diseases. Under the collaboration, Gilead has exclusive options to license worldwide rights to product candidates that emerge from three of the Companyβs TGFΞ² programs (each a βGilead Programβ). Pursuant to the Gilead Collaboration Agreement, the Company is responsible for antibody discovery and preclinical research through product candidate nomination, after which, upon exercising the option for a Gilead Program, Gilead will be responsible for the programβs preclinical and clinical development and commercialization. Such option may be exercised by Gilead at any time from the Effective Date through a date that is 90 days following the expiration of the Research Collaboration Term for a given Gilead Program (no later than March 19, 2022), or until termination of the Gilead Program, whichever is earlier (the βOption Exercise Periodβ). Prior to Gileadβs exercise of an option, the Company has the lead responsibility for drug discovery and pre-clinical development of all Gilead Programs through to Development Candidate Nomination. Within a certain period of time after receiving a data package for a Development Candidate Nomination, Gilead may exercise its option to enter into a Form of License Agreement for exclusive rights to develop, manufacture and commercialize the licensed antibodies and licensed products of such Gilead Program. Revenue associated with the research and development and license performance obligations relating to the Gilead Programs is recognized as revenue as the research and development services are provided using an input method, according to the costs incurred on each Gilead Program and the costs expected to be incurred in the future to satisfy the performance obligation. The transfer of control occurs over time. In managementβs judgment, this input method is the best measure of progress towards satisfying the performance obligation. The amounts allocated to the three material rights will be recognized when Gilead exercises each respective option and delivers the underlying license and transfer of know-how, or immediately as each option expires unexercised. The amounts received that have not yet been recognized as revenue are recorded in deferred revenue on the Companyβs consolidated balance sheet. None of the performance obligations have been fully satisfied as of June 30, 2021. A $25.0 million preclinical milestone was achieved in December 2019 for the successful demonstration of efficacy in preclinical in vivo proof-of-concept studies. As a result, the associated $25.0 million was included in the consideration transferred and proportionally allocated to the performance obligations, as it was probable that a future material reversal will not occur. In the three and six months ended June 30, 2021, the Company recognized $4.6 million and $9.3 million, respectively, in revenue in the Companyβs consolidated statements of operations and comprehensive loss under the Gilead Collaboration Agreement. The aggregate amount of the transaction price allocated to the Companyβs unsatisfied performance obligations and recorded in deferred revenue at June 30, 2021 is $42.7 million. The Company will recognize the $9.5 million of deferred revenue related to the research and development services based on a cost input method, over the remaining research term for each respective Gilead Program, which is a maximum of six months as of June 30, 2021; each research term is dependent on the timing of Gilead either exercising its options for the Gilead Programs or terminating further development on the Gilead Programs prior to the expiration date of the research term. The $33.2 million of deferred revenue related to the material rights will be recognized as options are exercised by Gilead or at the conclusion of the Option Exercise Period. β |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2021 | |
Net Loss per Share | |
Net Loss per Share | 10. Net Loss per Share The Company calculates basic net loss per share by dividing net loss by the weighted average number of common shares outstanding, excluding restricted common stock. The weighted average number of common shares used in the basic and diluted net loss per share calculation include the pre-funded warrants issued in connection with the Companyβs November 2, 2020 follow-on offering as the warrants are exercisable at any time for nominal cash consideration. As of June 30, 2021 no pre-funded warrants have been exercised and 2,179,487 pre-funded warrants are outstanding. The Company has generated a net loss in all periods presented, so the basic and diluted net loss per share are the same, as the inclusion of the potentially dilutive securities would be anti-dilutive. β The following table sets forth the outstanding common stock equivalents, presented based on amounts outstanding at each period end, that have been excluded from the calculation of diluted net loss per share for the periods indicated because their inclusion would have been anti-dilutive: β β β β β β β β Six Months Ended June 30, β 2021 2020 Restricted stock awards β 9,387 β 126,646 Restricted stock units β 267,481 β β Warrant β β β 7,614 Stock options β 4,323,010 β 3,491,671 β β 4,599,878 β 3,625,931 β |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash β The following table reconciles cash, cash equivalents and restricted cash per the balance sheet to the statement of cash flows (in thousands): β β β β β β β β β As of June 30, β 2021 2020 Cash and cash equivalents β $ 206,919 β $ 115,128 Restricted cash β 2,498 β 2,498 β β $ 209,417 β $ 117,626 |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The consolidated financial statements of the Company included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the βSECβ). The unaudited consolidated financial statements include the accounts of Scholar Rock Holding Corporation and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the information furnished reflects all adjustments, all of which are of a normal and recurring nature, necessary for a fair presentation of the results for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and judgments that may affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial statements and the related reporting of revenues and expenses during the reporting period. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial InstrumentsβCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of reconciles of cash, cash equivalents and restricted cash | β β β β β β β β β As of June 30, β 2021 2020 Cash and cash equivalents β $ 206,919 β $ 115,128 Restricted cash β 2,498 β 2,498 β β $ 209,417 β $ 117,626 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value of Financial Assets and Liabilities | |
Schedule of summary of the assets and liabilities measured at fair value on a recurring basis | The following tables summarize the assets and liabilities measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020 (in thousands): β β β β β β β β β β β β β β β Fair Value Measurements at June 30, 2021 β Total Level 1 Level 2 Level 3 Assets: β β β β β β β β Money market funds, included in cash and cash equivalents β $ 199,238 β $ 199,238 β $ β β $ β Marketable securities: β β β β U.S. Treasury obligations β β 75,298 β β 75,298 β β β β β β Total assets β $ 274,536 β $ 274,536 β $ β β $ β β β β β β β β β β β β β β β β β Fair Value Measurements at December 31, 2020 β Total Level 1 Level 2 Level 3 Assets: β β β β β β β β Money market funds, included in cash and cash equivalents β $ 119,841 β $ 119,841 β $ β β $ β U.S. Treasury obligations, included in cash and cash equivalents β β 9,998 β β 9,998 β β β β β β Marketable securities: β β β β U.S. Treasury obligations β 180,673 β 180,673 β β β β Total assets β $ 310,512 β $ 310,512 β $ β β $ β |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Marketable Securities | |
Summary of investments | The following table summarizes the Companyβs investments as of June 30, 2021 (in thousands): β β β β β β β β β β β β β β β β β β Gross β β β β β Amortized β Unrealized β Estimated β Cost Gains Losses Fair Value Marketable securities available-for-sale: β β β β β β β β β U.S. Treasury obligations β $ 75,289 β $ 9 β $ β β $ 75,298 Total available-for-sale securities β $ 75,289 β $ 9 β $ β β $ 75,298 β The following table summarizes the Companyβs investments as of December 31, 2020 (in thousands): β β β β β β β β β β β β β β β β β β Gross β β β β β Amortized β Unrealized β Estimated β Cost Gains Losses Fair Value Marketable securities available-for-sale: β β β β β β β β β β β β U.S. Treasury obligations β $ 180,675 β $ 7 β $ (9) β $ 180,673 Total available-for-sale securities β $ 180,675 β $ 7 β $ (9) β $ 180,673 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accrued Expenses | |
Summary of accrued expenses | As of June 30, 2021 and December 31, 2020, accrued expenses consist of the following (in thousands): β β β β β β β β β As of β β June 30, December 31, β 2021 β 2020 Accrued external research and development expense β $ 9,059 β $ 5,387 Accrued payroll and related expenses β β 4,231 β β 6,663 Accrued professional and consulting expense β β 1,154 β β 1,141 Accrued other β β 552 β β 476 Accrued payable for property and equipment β 458 β 1,291 β β $ 15,454 β $ 14,958 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity-Based Compensation | |
Summary of allocation of equity-based compensation | The Company recorded equity-based compensation expense related to all equity-based awards, which was allocated as follows in the consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2021 and 2020 (in thousands): β β β β β β β β β β β β β β β Three Months Ended β Six Months Ended β β June 30, β June 30, β 2021 2020 2021 2020 Research and development expense β $ 2,847 β $ 887 β $ 4,958 β $ 1,702 General and administrative expense β 3,379 β 1,508 β 5,941 β 2,907 β β $ 6,226 β $ 2,395 β $ 10,899 β $ 4,609 |
Summary of unrecognized equity-based compensation expense | β β β β β β β β β As of June 30, 2021 β β Unrecognized Expense (in thousands) Weighted Average Remaining Period of Recognition (years) Restricted Stock Awards $ 28 β 0.3 Restricted Stock Units β 13,783 β 3.6 Stock Options β 57,333 β 2.7 β $ 71,144 β β |
Summary of stock option activity | β β β β β β β β β β β β β β β β β β β Weighted β β β β β β β Weighted β Average β β β β β Number of β Average β Remaining β Aggregate β Shares Exercise Price Contractual Term Intrinsic Value β β β β β β β (in years) β (in thousands) Outstanding as of December 31, 2020 3,679,931 β $ 14.96 β 8.01 β $ 123,600 Granted 1,093,355 β $ 55.85 β β β β β Exercised β (307,317) β $ 10.91 β β β β β Cancelled (142,959) β $ 28.47 β β β β β Outstanding as of June 30, 2021 4,323,010 β $ 25.14 β 8.10 β $ 46,787 Options exercisable as of June 30, 2021 1,148,376 β $ 16.87 β 7.47 β $ 15,525 |
Schedule of fair value assumptions | β β β β β β β Six Months Ended β β June 30, β β 2021 2020 β Risk-free interest rate 0.74 % 1.24 % Expected dividend yield 0.0 % 0.0 % Expected term (years to liquidity) 6.21 β 6.19 β Expected volatility 87.89 % 81.86 % |
Restricted stock awards | |
Equity-Based Compensation | |
Summary of restricted common stock activity | β β β β β β β β β Weighted β β β β Average Fair β β β β Value per Share β Number of Shares at Issuance Restricted stock awards as of December 31, 2020 57,969 β $ 5.77 Vested (48,582) β $ 5.77 Restricted stock awards as of June 30, 2021 9,387 β $ 5.77 |
Restricted stock units | |
Equity-Based Compensation | |
Summary of restricted common stock activity | β β β β β β β β β β β Weighted β β β β Average Grant β Number of Units Date Fair Value Restricted stock units as of December 31, 2020 β β $ β Granted 281,786 β $ 57.28 Forfeited (14,305) β $ 59.44 Restricted stock units as of June 30, 2021 267,481 β $ 57.17 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Summary of lease costs | Other information related to the Companyβs leases (excluding the Companyβs sublease income of $0.7 million and $1.0 million for the three and six months ended June 30, 2021, respectively) is as follows (in thousands, except lease term and discount rate): β β β β β β β β β β For Three Months Ended β For Six Months Ended β June 30, June 30, β β 2021 β 2021 Lease Cost: β β β β β β Operating lease cost β $ 2,158 β $ 4,312 Variable lease cost β β 545 β β 1,153 Total lease cost β $ 2,703 β $ 5,465 β β β β β β For Six Months Ended β β June 30, β β 2021 β Other information: β β β Operating cash flows used for operating leases $ 4,378 β Weighted average remaining lease term β 3.9 years β Weighted average incremental borrowing rate β 7.5 % β |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Net Loss per Share | |
Summary of anti-dilutive securities | β β β β β β β β Six Months Ended June 30, β 2021 2020 Restricted stock awards β 9,387 β 126,646 Restricted stock units β 267,481 β β Warrant β β β 7,614 Stock options β 4,323,010 β 3,491,671 β β 4,599,878 β 3,625,931 |
Nature of the Business (Details
Nature of the Business (Details) | 6 Months Ended |
Jun. 30, 2021item | |
Nature of the Business | |
Number of collaborations | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents and restricted cash | ||||
Cash and cash equivalents | $ 206,919 | $ 160,358 | $ 115,128 | |
Restricted cash | 2,498 | 2,498 | ||
Total | $ 209,417 | $ 162,856 | $ 117,626 | $ 38,806 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Marketable securities: | ||
U.S. Treasury obligations | $ 75,298 | $ 180,673 |
Total assets | 274,536 | 310,512 |
Money market funds | ||
Assets: | ||
Cash and cash equivalents | 199,238 | 119,841 |
U.S. Treasury obligations | ||
Assets: | ||
Cash and cash equivalents | 9,998 | |
Level 1 | ||
Marketable securities: | ||
U.S. Treasury obligations | 75,298 | 180,673 |
Total assets | 274,536 | 310,512 |
Level 1 | Money market funds | ||
Assets: | ||
Cash and cash equivalents | $ 199,238 | 119,841 |
Level 1 | U.S. Treasury obligations | ||
Assets: | ||
Cash and cash equivalents | $ 9,998 |
Marketable Securities - Summary
Marketable Securities - Summary of Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Marketable securities available-for-sale | ||
Amortization Cost | $ 75,289 | $ 180,675 |
Gross Unrealized Gains | 9 | 7 |
Gross Unrealized Losses | (9) | |
Estimated Fair Value | 75,298 | 180,673 |
U.S. Treasury obligations | ||
Marketable securities available-for-sale | ||
Amortization Cost | 75,289 | 180,675 |
Gross Unrealized Gains | 9 | 7 |
Gross Unrealized Losses | (9) | |
Estimated Fair Value | $ 75,298 | $ 180,673 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accrued Expenses | ||
Accrued external research and development expense | $ 9,059 | $ 5,387 |
Accrued payroll and related expenses | 4,231 | 6,663 |
Accrued professional and consulting expense | 1,154 | 1,141 |
Accrued other | 552 | 476 |
Accrued payable for property and equipment | 458 | 1,291 |
Accrued expenses | $ 15,454 | $ 14,958 |
Equity-Based Compensation - Exp
Equity-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Equity-based compensation | ||||
Equity-based compensation expense | $ 6,226 | $ 2,395 | $ 10,899 | $ 4,609 |
Research and development expense | ||||
Equity-based compensation | ||||
Equity-based compensation expense | 2,847 | 887 | 4,958 | 1,702 |
General and administrative expense | ||||
Equity-based compensation | ||||
Equity-based compensation expense | $ 3,379 | $ 1,508 | $ 5,941 | $ 2,907 |
Equity-Based Compensation - Unr
Equity-Based Compensation - Unrecognized Expense (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Equity-based compensation | |
Unrecognized Expense | $ 71,144 |
Restricted stock awards | |
Equity-based compensation | |
Unrecognized Expense | $ 28 |
Weighted Average Remaining Period of Recognition | 3 months 18 days |
Restricted stock units | |
Equity-based compensation | |
Unrecognized Expense | $ 13,783 |
Weighted Average Remaining Period of Recognition | 3 years 7 months 6 days |
Stock options | |
Equity-based compensation | |
Unrecognized Expense | $ 57,333 |
Weighted Average Remaining Period of Recognition | 2 years 8 months 12 days |
Equity-Based Compensation - Res
Equity-Based Compensation - Restricted stock (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Restricted stock awards | |
Number of Shares/Units | |
Outstanding, beginning (in shares) | shares | 57,969 |
Vested (in shares) | shares | (48,582) |
Outstanding, end (in shares) | shares | 9,387 |
Weighted Average Fair Value | |
Outstanding, beginning (in dollars per share) | $ / shares | $ 5.77 |
Vested (in dollars per share) | $ / shares | 5.77 |
Outstanding, end (in dollars per share) | $ / shares | $ 5.77 |
Weighted Average Remaining Period of Recognition | 3 months 18 days |
Restricted stock units | |
Number of Shares/Units | |
Granted (in shares) | shares | 281,786 |
Forfeited (in shares) | shares | (14,305) |
Outstanding, end (in shares) | shares | 267,481 |
Weighted Average Fair Value | |
Granted (in dollars per share) | $ / shares | $ 57.28 |
Forfeited (in dollars per share) | $ / shares | 59.44 |
Outstanding, end (in dollars per share) | $ / shares | $ 57.17 |
Weighted Average Remaining Period of Recognition | 3 years 7 months 6 days |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Options (Details) - Stock options $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Number of Units | ||
Outstanding, beginning (in shares) | shares | 3,679,931 | |
Granted (in shares) | shares | 1,093,355 | |
Exercised (in shares) | shares | (307,317) | |
Cancelled (in shares) | shares | (142,959) | |
Outstanding, end (in shares) | shares | 4,323,010 | 3,679,931 |
Options exercisable, end (in shares) | shares | 1,148,376 | |
Weighted Average Exercise Price | ||
Outstanding, beginning (in dollars per share) | $ 14.96 | |
Granted (in dollars per share) | 55.85 | |
Exercised (in dollars per share) | 10.91 | |
Cancelled (in dollars per share) | 28.47 | |
Outstanding, end (in dollars per share) | 25.14 | $ 14.96 |
Options exercisable, end (in dollars per share) | $ 16.87 | |
Stock options | ||
Weighted average remaining contractual term | 8 years 1 month 6 days | 8 years 3 days |
Weighted average remaining contractual term, exercisable | 7 years 5 months 19 days | |
Aggregate intrinsic value, beginning | $ | $ 123,600 | |
Aggregate intrinsic value, end | $ | 46,787 | $ 123,600 |
Aggregate intrinsic value, exercisable | $ | $ 15,525 | |
Weighted average grant date fair value (in dollars per share) | $ 40.93 |
Equity-Based Compensation - Ass
Equity-Based Compensation - Assumptions (Details) - Stock options | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Assumptions used in determining the fair value of options | ||
Risk-free interest rate | 0.74% | 1.24% |
Expected dividend yield | 0.00% | 0.00% |
Expected term (years to liquidity) | 6 years 2 months 15 days | 6 years 2 months 8 days |
Expected volatility | 87.89% | 81.86% |
Weighted Average Remaining Period of Recognition | 2 years 8 months 12 days |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Oct. 05, 2020USD ($) | Dec. 20, 2019USD ($) | Nov. 30, 2019USD ($) | Feb. 28, 2018USD ($)ftΒ² | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jan. 31, 2018USD ($) | Mar. 31, 2015 |
Leased assets | ||||||||
Sublease income | $ 700 | $ 1,000 | ||||||
Lease Cost: | ||||||||
Operating lease cost | 2,158 | 4,312 | ||||||
Variable lease cost | 545 | 1,153 | ||||||
Total lease cost | $ 2,703 | 5,465 | ||||||
Operating cash flows used for operating leases | $ 4,378 | |||||||
Weighted average remaining lease term | 3 years 10 months 24 days | 3 years 10 months 24 days | ||||||
Weighted average incremental borrowing rate | 7.50% | 7.50% | ||||||
Payment made on commitment | $ 2,000 | |||||||
Payment commitment | $ 3,700 | |||||||
Antibody library expense | $ 3,700 | |||||||
620 Memorial Drive, Cambridge MA | ||||||||
Leased assets | ||||||||
Term of lease | 5 years | |||||||
Option to extend the term | true | |||||||
Area of lease space | ftΒ² | 20,751 | |||||||
Annual rent payments | $ 1,700 | $ 1,400 | ||||||
Renewal term | 5 years | |||||||
Sublease annual base rent | $ 1,900 | |||||||
301 Binney St, Cambridge MA | ||||||||
Leased assets | ||||||||
Option to extend the term | true | |||||||
Renewal term | 2 years | |||||||
Base rent | $ 6,900 | |||||||
Annual upward adjustment (as a percent) | 3.50% | |||||||
Incentive to lease | $ 14,100 | |||||||
Allowance received | $ 14,000 | |||||||
Letter of credit | $ 2,300 |
Debt (Details)
Debt (Details) - Loan and Security Agreement $ in Millions | Oct. 16, 2020USD ($) |
Debt | |
Line of credit maximum | $ 50 |
Proceeds from credit facility | 25 |
Remaining borrowing capacity | $ 25 |
Interest only period | 2 years |
Variable rate (as a percent) | 7.85% |
Final payment fee (as a percent) | 4.00% |
Minimum | |
Debt | |
Prepayment penalty (as a percent) | 2.00% |
Maximum | |
Debt | |
Prepayment penalty (as a percent) | 3.00% |
Wall Street Journal prime rate | |
Debt | |
Variable rate (as a percent) | 4.60% |
Agreements - Gilead (Details)
Agreements - Gilead (Details) $ in Thousands | Dec. 19, 2018item | Dec. 31, 2019USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) |
Agreements | ||||||
Revenue earned | $ 4,595 | $ 3,900 | $ 9,303 | $ 8,930 | ||
Gilead | ||||||
Agreements | ||||||
Number of programs | item | 3 | |||||
Option exercise period | 90 days | |||||
Revenue proceeds | $ 25,000 | |||||
Revenue earned | 4,600 | |||||
Transaction price | $ 42,700 | $ 42,700 |
Agreements - Gilead obligation
Agreements - Gilead obligation period (Details) - Gilead $ in Millions | Jun. 30, 2021USD ($) |
Agreements | |
Revenue remaining performance obligation amount | $ 42.7 |
Research and development services | |
Agreements | |
Revenue remaining performance obligation amount | 9.5 |
Material rights | |
Agreements | |
Revenue remaining performance obligation amount | $ 33.2 |
Net Loss per Share (Details)
Net Loss per Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Anti-dilutive securities | ||
Outstanding warrants | 2,179,487 | |
Anti-dilutive securities excluded from the calculation of net loss per share | 4,599,878 | 3,625,931 |
Restricted stock awards | ||
Anti-dilutive securities | ||
Anti-dilutive securities excluded from the calculation of net loss per share | 9,387 | 126,646 |
Restricted stock units | ||
Anti-dilutive securities | ||
Anti-dilutive securities excluded from the calculation of net loss per share | 267,481 | |
Warrant | ||
Anti-dilutive securities | ||
Anti-dilutive securities excluded from the calculation of net loss per share | 7,614 | |
Stock options | ||
Anti-dilutive securities | ||
Anti-dilutive securities excluded from the calculation of net loss per share | 4,323,010 | 3,491,671 |