Viela Bio (VIE) 10-Q 13 May 20 2020 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 13, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Registrant Name	VIELA BIO, INC.
Entity Central Index Key	0001734517
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		50,997,300
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	VIE
Security Exchange Name	NASDAQ
Entity File Number	001-39067
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-4187338
Entity Address, Address Line One	One MedImmune Way
Entity Address, Address Line Two	First Floor, Area Two
Entity Address, City or Town	Gaithersburg
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20878
City Area Code	240
Local Phone Number	558-0038
Document Quarterly Report	true
Document Transition Report	false

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 163,575	$ 200,851
Marketable securities	151,255	113,945
Accounts receivable		30,000
Prepaid and other current assets	6,475	6,242
Total current assets	321,305	351,038
Marketable securities, non-current	20,355	31,415
Property and equipment, net	1,495	1,499
Other assets	102	102
Total assets	343,257	384,054
Current liabilities:
Accounts payable	7,380	7,459
Accrued expenses and other current liabilities	9,527	9,192
Related party liability	9,929	12,892
Total current liabilities	26,836	29,543
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized as of March 31, 2020 and December 31, 2019; no shares issued or outstanding as of March 31, 2020 and December 31, 2019
Common stock, $.001 par value; 200,000,000 shares authorized as of March 31, 2020 and December 31, 2019; 50,997,300 and 50,617,868 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively	51	51
Additional paid-in capital	633,967	631,154
Accumulated other comprehensive income (loss)	(121)	5
Accumulated deficit	(317,476)	(276,699)
Total stockholders’ equity	316,421	354,511
Total liabilities and stockholders’ equity	$ 343,257	$ 384,054

BALANCE SHEETS (Unaudited) (Par

BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	50,997,300	50,617,868
Common stock, shares outstanding	50,997,300	50,617,868

STATEMENTS OF OPERATIONS AND CO

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating expenses:
Research and development	$ 26,829	$ 16,615
General and administrative	15,282	5,037
Total operating expenses	42,111	21,652
Loss from operations	(42,111)	(21,652)
Other income:
Interest income	1,334	676
Total other income	1,334	676
Net loss	$ (40,777)	$ (20,976)
Net loss per share attributable to common stockholders—basic and diluted	$ (0.80)	$ (167.38)
Weighted average common shares outstanding—basic and diluted	50,752,998	125,315
Other comprehensive loss
Unrealized gains (losses) on marketable securities, net	$ (126)
Total other comprehensive loss	(126)
Total comprehensive loss	$ (40,903)	$ (20,976)

STATEMENTS OF REDEEMABLE CONVER

STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Series A One Redeemable Convertible Preferred Stock	Series A-2 Preferred Stock
Redeemable convertible preferred stock, Beginning Balance, Shares at Dec. 31, 2018						14,225,324	17,000,000
Redeemable convertible preferred stock, Beginning Balance at Dec. 31, 2018						$ 142,253	$ 170,000
Beginning Balances, Shares at Dec. 31, 2018		10
Beginning Balances at Dec. 31, 2018	$ (188,391)		$ 1,879		$ (190,270)
Stock-based compensation expense	639		639
Issuance of common stock upon vesting of RSAs, Shares		363,789
Net loss	(20,976)				(20,976)
Redeemable convertible preferred stock, Ending Balance, Shares at Mar. 31, 2019						14,225,324	17,000,000
Redeemable convertible preferred stock, Ending Balance at Mar. 31, 2019						$ 142,253	$ 170,000
Ending Balances, Shares at Mar. 31, 2019		363,799
Ending Balances at Mar. 31, 2019	(208,728)		2,518		(211,246)
Beginning Balances, Shares at Dec. 31, 2019		50,617,868
Beginning Balances at Dec. 31, 2019	354,511	$ 51	631,154	$ 5	(276,699)
Stock-based compensation expense	2,711		2,711
Issuance of common stock for stock options exercised	102		102
Issuance of common stock for stock options exercised, shares		22,275
Issuance of common stock upon vesting of RSAs, Shares		357,157
Other comprehensive loss	(126)			(126)
Net loss	(40,777)				(40,777)
Ending Balances, Shares at Mar. 31, 2020		50,997,300
Ending Balances at Mar. 31, 2020	$ 316,421	$ 51	$ 633,967	$ (121)	$ (317,476)

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (40,777)	$ (20,976)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	106	46
Stock-based compensation expense	2,711	639
Amortization of premium (discount) on marketable securities, net	(18)
Changes in operating assets and liabilities:
Accounts receivable	30,000
Prepaid and other current assets	(233)	(73)
Accounts payable, accrued expenses and related party liability	(2,660)	1,460
Net cash used in operating activities	(10,871)	(18,904)
Cash flows from investing activities:
Purchase of marketable securities	(46,242)
Sales and maturities of marketable securities	19,884
Purchase of property and equipment	(149)	(26)
Net cash used in investing activities	(26,507)	(26)
Cash flows from financing activities:
Proceeds from exercise of common stock options	102
Proceeds from issuance of redeemable convertible preferred stock		12,000
Net cash provided by financing activities	102	12,000
Net decrease in cash and cash equivalents	(37,276)	(6,930)
Cash and cash equivalents at beginning of period	200,851	126,898
Cash and cash equivalents at end of period	163,575	$ 119,968
Supplemental disclosure of non-cash financing and investing activities:
Purchases of property and equipment included in accounts payable	$ 62

Nature of the Business and Basi

Nature of the Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Nature of the Business and Basis of Presentation	1. Nature of the business and basis of presentation Viela Bio, Inc. (“Viela” or the “Company”) is a clinical-stage biotechnology research and development company pioneering and advancing treatments for severe inflammation and autoimmune diseases by selectively targeting shared critical pathways that are the root cause of disease. The Company was incorporated on December 11, 2017 under the laws of the State of Delaware. The Company’s lead product candidate, inebilizumab, is a humanized mAb designed to target CD19, a molecule expressed on the surface of a broad range of immune system B cells. In January 2019, the Company reported positive pivotal clinical trial data for inebilizumab in patients with NMOSD. NMOSD is a rare, devastating condition that attacks the optic nerve, spinal cord and brain stem, and often leads to irreversible blindness and paralysis. The Company received Breakthrough Therapy Designation for the treatment of this disease from the FDA in April 2019 and in August 2019, the FDA accepted for review the Company’s BLA for inebilizumab. The FDA set a PDUFA date of June 11, 2020. In addition, the Company has a broad pipeline of two additional clinical-stage and two pre-clinical product candidates focused on a number of other autoimmune diseases with high unmet medical needs, including myasthenia gravis, IgG4-related disease, Sjögren’s syndrome and lupus, as well as other conditions such as kidney transplant rejection. A Phase 2b trial in Sjögren’s syndrome, which is designed as Phase 3-enabling, is ongoing and in 2019, the Company initiated a separate Phase 2 trial in kidney transplant rejection. In light of the COVID-19 pandemic, in order to prioritize patient health and that of the investigators at clinical trial sites, the Company has paused enrollment of new patients in certain of its clinical trials, including its Phase 2b trial of VIB4920 in Sjogren’s syndrome and its Phase 2 trial of VIB4920 in kidney transplant rejection. The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, ability to secure additional capital to fund operations, completion and success of clinical testing, compliance with applicable governmental regulations, development by competitors of new technological innovations, dependence on key personnel and protection of proprietary technology. Drug candidates currently under development will require extensive clinical testing prior to regulatory approval and commercialization. These efforts require significant amounts of additional capital, adequate personnel, and infrastructure and extensive compliance-reporting capabilities. Even if the Company’s drug development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. In October, 2019, the Company completed an initial public offering (the “IPO”) of its common stock and issued and sold 9,085,000 shares of common stock, which included 1,185,000 shares issued in pursuant to the underwriters’ option to purchase additional shares, at a public offering price of $19.00 per share, for aggregate gross proceeds of $172,615 and net proceeds after deducting underwriting discounts and commissions and other offering costs of $156,927. Upon the closing of the IPO, the outstanding shares of series A redeemable convertible preferred stock (the “Series A Preferred Stock”), and series B redeemable convertible preferred stock (the “Series B Preferred Stock” and together with the Series A Preferred Stock, the “Preferred Stock”) converted into an aggregate of 40,618,706 shares of common stock. Basis of Presentation The accompanying unaudited interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP are omitted. In the opinion of our management, all adjustments (consisting solely of normal recurring accruals) necessary for the fair statement of financial statements for the interim period have been included. The interim financial statements and accompanying notes should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31. 2019, as filed with the SEC on March 25, 2020 (the “Form 10-K”) . The results for the three months ended March 31, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020, any other interim periods or any future year or period.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of significant accounting policies Use of estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, the recognition of research and development expenses based on when services are performed, the valuations of share based compensation arrangements, and the valuation allowance for deferred tax assets. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates. Net loss per share Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Prior to the IPO, the Company followed the two-class method when computing net loss per share, which is an earnings allocation formula that determines net loss per share for the holders of the Company’s common shares and participating securities. The Company’s Preferred Stock contained participating rights in any dividend paid by the Company and were deemed to be participating securities. Net income attributable to common stockholders and participating preferred shares is allocated to each share on an as-converted basis as if all of the earnings for the period had been distributed. The participating securities do not include a contractual obligation to share in the losses of the Company and are not included in the calculation of net loss per share in the periods that have a net loss. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect on net loss per share. Diluted net loss per share is computed using the more dilutive of (a) the two-class method or (b) the if-converted method. In periods in which the Company reports a net loss attributable to common stockholders, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. Diluted net loss per share is equivalent to basic net loss per share for the periods presented herein because common stock equivalent shares from the Series A and Series B Preferred Stock were anti-dilutive. Due to their anti-dilutive effect, the calculation of diluted net loss per share for the three months ended March 31, 2019 does not include 31,225,324 shares of Series A Preferred Stock. Subsequent to the IPO, basic net loss per common share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding for the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options. Accordingly, in periods in which the Company reported a net loss, dilutive common shares were not included in the calculation as their affect was anti-dilutive, and as a result, diluted net loss per common share was the same as basic net loss per common share for the three months ended March 31, 2020 and 2019. For the three months ended March 31, 2020 and 2019, there were no reconciling items between basic and diluted net loss per share Recently adopted accounting pronouncements In August 2018, the FASB issued No. ASU 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework Recently issued accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less at lease inception may be accounted for similar to existing guidance for operating leases today. For public entities, ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. For all other entities, the ASU is effective for annual periods beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the guidance will have on its financial statements.

Cash, Cash Equivalents and Mark

Cash, Cash Equivalents and Marketable Securities	3 Months Ended
	Mar. 31, 2020
Investments Debt And Equity Securities [Abstract]
Cash, Cash Equivalents and Marketable Securities	3. Cash, cash equivalents and marketable securities The following is a summary of the Company’s cash, cash equivalents and available-for-sale marketable securities by significant investment category (unaudited): March 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Marketable Securities Non-Current Marketable Securities Cash $ 28,972 $ — $ — $ 28,972 $ 28,972 $ — $ — Level 1 Money market funds 126,131 — — 126,131 126,131 — — Subtotal 126,131 — — 126,131 126,131 — — Level 2 U.S. Treasury securities 17,702 164 — 17,866 — 8,119 9,747 Commercial paper 53,614 43 (4 ) 53,653 8,472 45,181 — Corporate debt securities 108,887 38 (362 ) 108,563 — 97,955 10,608 Subtotal 180,203 245 (366 ) 180,082 8,472 151,255 20,355 Total $ 335,306 $ 245 $ (366 ) $ 335,185 $ 163,575 $ 151,255 $ 20,355 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Marketable Securities Non-Current Marketable Securities Cash $ 26,821 $ — $ — $ 26,821 $ 26,821 $ — $ — Level 1 Money market funds 157,777 — — 157,777 157,777 — — Subtotal 157,777 — — 157,777 157,777 — — Level 2 U.S. Treasury securities 9,623 7 — 9,630 — 4,805 4,825 Commercial paper 55,021 4 (9 ) 55,016 13,050 41,966 — Corporate debt securities 96,964 28 (25 ) 96,967 3,203 67,174 26,590 Subtotal 161,608 39 (34 ) 161,613 16,253 113,945 31,415 Total $ 346,206 $ 39 $ (34 ) $ 346,211 $ 200,851 $ 113,945 $ 31,415 The maturities of the Company’s long-term marketable securities ranges from one to two years.

Common Stock

Common Stock	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Common Stock	4. Common stock Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders, provided, however, that except as otherwise required by law, holders of common stock shall not be entitled to vote on any amendment to the Company’s certificate of incorporation that relates solely to the terms of one or more outstanding series of preferred stock, if the holders of the affected series are entitled to vote thereon. Common stockholders are entitled to receive dividends, as may be declared by the board of directors, if any, subject to the preferential dividend rights of preferred stock.

Redeemable Convertible Preferre

Redeemable Convertible Preferred Stock	3 Months Ended
	Mar. 31, 2020
Temporary Equity [Abstract]
Redeemable Convertible Preferred Stock	5. Redeemable convertible preferred stock Prior to the IPO, the authorized capital stock of the Company included 40,618,706 shares of Preferred Stock, of which 35,931,206 shares were designated as Series A Preferred Stock and, 4,687,500 shares were designated as Series B Preferred Stock. Upon the closing of the IPO, the Company’s outstanding Preferred Stock converted into 40,618,706 shares of common stock.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based Compensation	6. Stock-based compensation During the three months ended March 31, 2020, the Company granted 1,390,357 stock options with a weighted average exercise price of $40.79 per share and a weighted average grant date fair value of $22.39 per share that vest over four years and have a maximum contractual term of ten years. Vesting is subject to the holder’s continuous service with the Company. The Company reserved 7,565,938 shares of common stock for issuance under the Equity Incentive Plan. As of March 31, 2020, there was approximately $42,628 total unrecognized compensation expense, related to the unvested stock options, which is expected to be recognized over a weighted average period of 3.64 years. During the three months ended March 31, 2020, 357,157 restricted stock awards were vested. As of March 31, 2020, there was approximately $20 of total unrecognized compensation expense, related to the restricted stock awards, which is expected to be recognized over a weighted average period of 0.48 years. Stock-based compensation Stock-based compensation expense for the three months ended March 31, 2020 and 2019 was comprised of the following (unaudited): Three Months Ended March 31, 2020 2019 Research and development $ 1,643 $ 334 General and administrative 1,068 305 Total $ 2,711 $ 639

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	7. Income taxes During the three months ended March 31, 2020 and 2019, the Company recorded no income tax benefits for the net operating losses incurred or for the research and development tax credits generated in each period due to its uncertainty of realizing a benefit from those items. All of the Company’s operating losses since inception have been generated in the United States. The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets. Management has considered the Company’s history of cumulative net losses incurred since inception and its lack of commercialization of any products or generation of any revenue from product sales since inception and has concluded that it is more likely than not that the Company will not realize the benefits of the deferred tax assets. Management reevaluates the positive and negative evidence at each reporting period. As of March 31, 2020 and December 31, 2019, no facts or circumstances arose that affected the Company’s determination as to the full valuation allowance established against the net deferred tax assets. Accordingly, a full valuation allowance has been established against the net deferred tax assets as of March 31, 2020 and December 31, 2019. As of March 31, 2020 and December 31, 2019, the Company had not recorded any amounts for unrecognized tax benefits. The Company’s policy is to record interest and penalties related to income taxes as part of its income tax provision. As of March 31, 2020 and December 31, 2019, the Company had no accrued interest or penalties related to uncertain tax positions and no amounts had been recognized in the Company’s statements of operations and comprehensive loss. The Company files income tax returns in the U.S., Maryland and certain other states, as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. There are currently no pending tax examinations. The Company is open to future tax examination under statute from 2018 to the present. On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. The Company is examining the impact that the CARES Act may have on its business. The Company is also evaluating its ability to use the refundable payroll tax credits and deferment of employer side social security payments. The Company does not believe that the income tax modifications mentioned above will affect its deferred tax assets or liabilities based on the Company’s facts and circumstances.

Benefit Plan

Benefit Plan	3 Months Ended
	Mar. 31, 2020
Compensation And Retirement Disclosure [Abstract]
Benefit Plan	8. Benefit plan The Company maintains a defined contribution 401(k) plan, under which employee contributions are voluntary and are determined on an individual basis, limited by the maximum amounts allowable under federal tax regulations. The Company provides an automatic matching contribution of $1.00 per $1.00 of employee contribution into the plan up to a maximum of 4% of employee deferral. The Company’s matching contributions to employees totaled approximately $339 and $156, during the three months ended March 31, 2020 and 2019, respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and contingencies Contingencies In the ordinary course of business, the Company may become a party to lawsuits involving various matters. The Company is not currently a party, and its properties are not currently subject, to any legal proceedings that, in the opinion of management, are expected to have a material adverse effect on the Company’s business, financial condition or results of operations. Milestone and Royalty Payments At the inception of each license and collaboration agreement with third parties, which may require the Company to make milestone payments, the Company evaluates whether each milestone and royalty payments are substantive and at risk to both parties on the basis of the contingent nature of the milestone and royalty. The Company aggregates milestones into three categories (i) research milestones, (ii) development milestones and (iii) commercial milestones and royalties. Research milestones are typically achieved upon reaching certain criteria as defined in each agreement related to developing a molecule against the specified target. Development milestones are typically reached when a molecule reaches a defined phase of clinical research or passes such phase, or upon gaining regulatory approvals. Commercial milestones and royalties are typically achieved when an approved pharmaceutical product reaches the status for commercial sale or certain defined levels of net sales by the licensee, such as when a product first achieves global sales or annual sales of a specified amount. The Company expects to pay approximately $20,000 if the Biologics License Application Employment Agreements The Company has entered into employment agreements with certain of its executive officers. Generally, the terms of these agreements provide that, if the Company terminates the officer other than for cause, death or disability, or if the officer terminates his or her employment with the Company for good cause, the officer shall be entitled to receive certain severance compensation and benefits as described in each such agreement. Office Leases In July 2018, the Company entered into an operating lease agreement with a related party for its headquarters in Gaithersburg, Maryland. The lease became effective July 1, 2018 and expires in June 2021 with the option to extend it by one year. Total lease payments under the lease are: $365 for the year ended December 31, 2019; $376 for the year ending December 31, 2020; and $191 for the remainder of the lease. In October 2019, the Company entered into an operating lease agreement with a third party for an additional office space in Rockville, Maryland. The lease became effective October 1, 2019 and expires in June 2021. Total lease payments under the lease are: $101 for the year ended December 31, 2019; $407 for the year ending December 31, 2020; and $208 for the remainder of the lease. In October 2019, the Company entered into an operating lease agreement with a third party for an additional lab space in Rockville, Maryland. The lease became effective October 15, 2019 and expires in February 2025. Total lease payments under the lease are: $11 for the year ended December 31, 2019, $103 for the year ending December 31, 2020; and $573 for the remainder of the lease. Rent expense was $154 and $51 for the three months ended March 31, 2020 and 2019, respectively. Lab Equipment Lease During December 2019, the Company entered into a non-cancelable lease agreement for lab equipment for payments totaling $1,193 over 60 months. The lease commencement date is subject to the delivery and acceptance of the equipment which is anticipated in the second quarter of 2020.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	10. Related party transactions In connection with the acquisition of a portfolio of clinical molecules and pre-clinical molecules for potential therapies for autoimmune diseases and inflammation from MedImmune, LLC, MedImmune Limited (collectively, “MedImmune”), and AstraZeneca Collaboration Ventures, LLC (together with MedImmune, the “AZ Parties”), the Company also entered into certain other agreements with the AZ Parties, including transition services agreement, a clinical supply agreement, a commercial supply agreement, a master supply and development services agreement, and a long-term lease agreement. During the three months ended March 31, 2020, the Company incurred $9,062 of costs under these agreements. As of March 31, 2020, $9,929 is recorded as a related party liability on the Company’s balance sheet. During the three months ended March 31, 2019

Collaboration Agreements

Collaboration Agreements	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Collaboration Agreements	11. Collaboration agreements Commercial license and collaboration agreement with Hansoh On May 24, 2019 (the “Hansoh Effective Date”), the Company entered into an exclusive commercial license and collaboration agreement with Hansoh Pharmaceutical Group Company Limited (“Hansoh”). By entering into this agreement, among other things, the Company promised to deliver to Hansoh an exclusive, sub-licensable, license to commercialize any pharmaceutical product that includes inebilizumab, the Company’s lead product candidate, in the mainland of the People’s Republic of China, Hong Kong and Macau. The Company received a non-refundable upfront payment of $15,000 in June 2019 and an additional $5,000 in December 31, 2019. In addition, the Company has the ability to receive additional payments under the agreement of up to approximately $203,000, including up to $180,000 in commercial milestone payments and development milestone payments ranging from $2,000 to $5,000 on an indication-by-indication basis and is also entitled to receive tiered royalties ranging from the low double-digit percentages to the upper-teen percentages on aggregate net sales of any products developed and commercialized in the Hansoh Territory, subject to customary potential reductions. As a result of the Hansoh transaction, the Company recognized the associated revenue of $20,000 at the Hansoh Effective Date. As noted previously, approximately $15,000 of the total upfront payment was received within 30 days after the Hansoh Effective Date. The remaining $5,000 was received within six months after the Hansoh Effective Date. Commercial license and collaboration agreement with Mitsubishi Tanabe Pharma Corporation On October 8, 2019 (“MTPC Transaction Date”), the Company entered into an exclusive commercial license agreement with Mitsubishi Tanabe Pharma Corporation (“MTPC”). By entering into this agreement, among other things, the Company promised to transfer to MTPC an exclusive, sub-licensable, license to develop and commercialize any pharmaceutical product that includes inebilizumab, in Japan, Thailand, South Korea, Indonesia, Vietnam, Malaysia, Philippines, Singapore and Taiwan. The agreement required MTPC to pay to the Company a non-refundable upfront payment of $30,000. The entire upfront payment was received in January 2020 and was included within accounts receivable as of December 31, 2019 as the Company had a contractual right to bill for the entire amount as of December 31, 2019 and the Company recognized the associated revenue of $30,000 at the MTPC Transaction Date. In addition, the Company can receive additional payments upon achieving certain sales milestones related to other LCM indications.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP are omitted. In the opinion of our management, all adjustments (consisting solely of normal recurring accruals) necessary for the fair statement of financial statements for the interim period have been included. The interim financial statements and accompanying notes should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31. 2019, as filed with the SEC on March 25, 2020 (the “Form 10-K”) . The results for the three months ended March 31, 2020 are not necessarily indicative of results to be expected for the year ending December 31, 2020, any other interim periods or any future year or period.
Use of Estimates	Use of estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, the recognition of research and development expenses based on when services are performed, the valuations of share based compensation arrangements, and the valuation allowance for deferred tax assets. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.
Net Loss Per Share	Net loss per share Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Prior to the IPO, the Company followed the two-class method when computing net loss per share, which is an earnings allocation formula that determines net loss per share for the holders of the Company’s common shares and participating securities. The Company’s Preferred Stock contained participating rights in any dividend paid by the Company and were deemed to be participating securities. Net income attributable to common stockholders and participating preferred shares is allocated to each share on an as-converted basis as if all of the earnings for the period had been distributed. The participating securities do not include a contractual obligation to share in the losses of the Company and are not included in the calculation of net loss per share in the periods that have a net loss. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect on net loss per share. Diluted net loss per share is computed using the more dilutive of (a) the two-class method or (b) the if-converted method. In periods in which the Company reports a net loss attributable to common stockholders, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. Diluted net loss per share is equivalent to basic net loss per share for the periods presented herein because common stock equivalent shares from the Series A and Series B Preferred Stock were anti-dilutive. Due to their anti-dilutive effect, the calculation of diluted net loss per share for the three months ended March 31, 2019 does not include 31,225,324 shares of Series A Preferred Stock. Subsequent to the IPO, basic net loss per common share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding for the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options. Accordingly, in periods in which the Company reported a net loss, dilutive common shares were not included in the calculation as their affect was anti-dilutive, and as a result, diluted net loss per common share was the same as basic net loss per common share for the three months ended March 31, 2020 and 2019. For the three months ended March 31, 2020 and 2019, there were no reconciling items between basic and diluted net loss per share
Recently Adopted and Issued Accounting Pronouncements	Recently adopted accounting pronouncements In August 2018, the FASB issued No. ASU 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework Recently issued accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less at lease inception may be accounted for similar to existing guidance for operating leases today. For public entities, ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those fiscal years. For all other entities, the ASU is effective for annual periods beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of the guidance will have on its financial statements.

Cash, Cash Equivalents and Ma_2

Cash, Cash Equivalents and Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2020
Investments Debt And Equity Securities [Abstract]
Summary of Cash, Cash Equivalents and Available-For-Sale Marketable Securities (Unaudited)	The following is a summary of the Company’s cash, cash equivalents and available-for-sale marketable securities by significant investment category (unaudited): March 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Marketable Securities Non-Current Marketable Securities Cash $ 28,972 $ — $ — $ 28,972 $ 28,972 $ — $ — Level 1 Money market funds 126,131 — — 126,131 126,131 — — Subtotal 126,131 — — 126,131 126,131 — — Level 2 U.S. Treasury securities 17,702 164 — 17,866 — 8,119 9,747 Commercial paper 53,614 43 (4 ) 53,653 8,472 45,181 — Corporate debt securities 108,887 38 (362 ) 108,563 — 97,955 10,608 Subtotal 180,203 245 (366 ) 180,082 8,472 151,255 20,355 Total $ 335,306 $ 245 $ (366 ) $ 335,185 $ 163,575 $ 151,255 $ 20,355 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Marketable Securities Non-Current Marketable Securities Cash $ 26,821 $ — $ — $ 26,821 $ 26,821 $ — $ — Level 1 Money market funds 157,777 — — 157,777 157,777 — — Subtotal 157,777 — — 157,777 157,777 — — Level 2 U.S. Treasury securities 9,623 7 — 9,630 — 4,805 4,825 Commercial paper 55,021 4 (9 ) 55,016 13,050 41,966 — Corporate debt securities 96,964 28 (25 ) 96,967 3,203 67,174 26,590 Subtotal 161,608 39 (34 ) 161,613 16,253 113,945 31,415 Total $ 346,206 $ 39 $ (34 ) $ 346,211 $ 200,851 $ 113,945 $ 31,415

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Stock-based Compensation Expense (Unaudited)	Stock-based compensation expense for the three months ended March 31, 2020 and 2019 was comprised of the following (unaudited): Three Months Ended March 31, 2020 2019 Research and development $ 1,643 $ 334 General and administrative 1,068 305 Total $ 2,711 $ 639

Nature of the Business and Ba_2

Nature of the Business and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands	1 Months Ended
	Oct. 31, 2019USD ($)$ / sharesshares
Common Stock
Subsidiary Sale Of Stock [Line Items]
Number of outstanding preferred stock converted into aggregate shares of common stock	40,618,706
IPO
Subsidiary Sale Of Stock [Line Items]
Issuance of common stock	9,085,000
Common stock price per share | $ / shares	$ 19
Underwriter's Option to Purchase Additional Shares
Subsidiary Sale Of Stock [Line Items]
Issuance of common stock	1,185,000
Aggregate Gross Proceeds from IPO
Subsidiary Sale Of Stock [Line Items]
Gross proceeds | $	$ 172,615
Net proceeds | $	$ 156,927

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional information (Details)	3 Months Ended
	Mar. 31, 2019shares
Series A Preferred Stock
Schedule Of Significant Accounting Policies [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	31,225,324

Cash, Cash Equivalents and Ma_3

Cash, Cash Equivalents and Marketable Securities - Summary of Cash, Cash Equivalents and Available-For-Sale Marketable Securities (Unaudited) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Marketable Securities [Line Items]
Cash, cash equivalents and available-for-sale marketable securities, Amortized Cost	$ 335,306	$ 346,206
Cash, cash equivalents and available-for-sale marketable securities, Unrealized Gains	245	39
Cash, cash equivalents and available-for-sale marketable securities, Unrealized Losses	(366)	(34)
Cash, cash equivalents and available-for-sale marketable securities, Fair Value	335,185	346,211
Cash and cash equivalents	163,575	200,851
Current Marketable Securities	151,255	113,945
Non-Current Marketable Securities	20,355	31,415
Cash
Marketable Securities [Line Items]
Cash, cash equivalents and available-for-sale marketable securities, Amortized Cost	28,972	26,821
Cash, cash equivalents and available-for-sale marketable securities, Fair Value	28,972	26,821
Cash and cash equivalents	28,972	26,821
Level 1
Marketable Securities [Line Items]
Cash, cash equivalents and available-for-sale marketable securities, Amortized Cost	126,131	157,777
Cash, cash equivalents and available-for-sale marketable securities, Fair Value	126,131	157,777
Cash and cash equivalents	126,131	157,777
Level 1 | Money Market Funds
Marketable Securities [Line Items]
Cash, cash equivalents and available-for-sale marketable securities, Amortized Cost	126,131	157,777
Cash, cash equivalents and available-for-sale marketable securities, Fair Value	126,131	157,777
Cash and cash equivalents	126,131	157,777
Level 2
Marketable Securities [Line Items]
Cash, cash equivalents and available-for-sale marketable securities, Amortized Cost	180,203	161,608
Cash, cash equivalents and available-for-sale marketable securities, Unrealized Gains	245	39
Cash, cash equivalents and available-for-sale marketable securities, Unrealized Losses	(366)	(34)
Cash, cash equivalents and available-for-sale marketable securities, Fair Value	180,082	161,613
Cash and cash equivalents	8,472	16,253
Current Marketable Securities	151,255	113,945
Non-Current Marketable Securities	20,355	31,415
Level 2 | US Treasury Securities
Marketable Securities [Line Items]
Cash, cash equivalents and available-for-sale marketable securities, Amortized Cost	17,702	9,623
Cash, cash equivalents and available-for-sale marketable securities, Unrealized Gains	164	7
Cash, cash equivalents and available-for-sale marketable securities, Fair Value	17,866	9,630
Current Marketable Securities	8,119	4,805
Non-Current Marketable Securities	9,747	4,825
Level 2 | Corporate Debt Securities
Marketable Securities [Line Items]
Cash, cash equivalents and available-for-sale marketable securities, Amortized Cost	108,887	96,964
Cash, cash equivalents and available-for-sale marketable securities, Unrealized Gains	38	28
Cash, cash equivalents and available-for-sale marketable securities, Unrealized Losses	(362)	(25)
Cash, cash equivalents and available-for-sale marketable securities, Fair Value	108,563	96,967
Cash and cash equivalents		3,203
Current Marketable Securities	97,955	67,174
Non-Current Marketable Securities	10,608	26,590
Level 2 | Commercial Paper
Marketable Securities [Line Items]
Cash, cash equivalents and available-for-sale marketable securities, Amortized Cost	53,614	55,021
Cash, cash equivalents and available-for-sale marketable securities, Unrealized Gains	43	4
Cash, cash equivalents and available-for-sale marketable securities, Unrealized Losses	(4)	(9)
Cash, cash equivalents and available-for-sale marketable securities, Fair Value	53,653	55,016
Cash and cash equivalents	8,472	13,050
Current Marketable Securities	$ 45,181	$ 41,966

Cash, Cash Equivalents and Ma_4

Cash, Cash Equivalents and Marketable Securities - Additional Information (Details)	Mar. 31, 2020
Minimum
Marketable Securities [Line Items]
Long-term marketable securities, maturity	1 year
Maximum
Marketable Securities [Line Items]
Long-term marketable securities, maturity	2 years

Common Stock - Additional Infor

Common Stock - Additional Information (Details)	3 Months Ended
	Mar. 31, 2020USD ($)
Equity [Abstract]
Dividends	$ 0

Redeemable Convertible Prefer_2

Redeemable Convertible Preferred Stock - Additional Information (Details)	3 Months Ended
	Mar. 31, 2020shares
Redeemable Convertible Preferred Stock [Line Items]
Redeemable convertible preferred stock	40,618,706
Series A Preferred Stock
Redeemable Convertible Preferred Stock [Line Items]
Redeemable convertible preferred stock	35,931,206
Series B Preferred Stock
Redeemable Convertible Preferred Stock [Line Items]
Redeemable convertible preferred stock	4,687,500
IPO | Common Stock
Redeemable Convertible Preferred Stock [Line Items]
Number of outstanding preferred stock converted into shares of common stock	40,618,706

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of options, Granted	1,390,357
Weighted-average exercise price, Granted | $ / shares	$ 40.79
Weighted average grant date fair value per share of options granted | $ / shares	$ 22.39
Total unrecognized compensation expense related to unvested stock options | $	$ 42,628
Unvested stock option recognized over period	3 years 7 months 20 days
Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, number of common stock shares for issuance under plan	7,565,938
Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, vesting period	4 years
Stock Option | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, contractual term	10 years
Restricted Stock Awards (RSA)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested stock option recognized over period	5 months 23 days
Number of shares, Vested	357,157
Total unrecognized compensation expense related to restricted stock awards | $	$ 20

Stock-based Compensation - Sche

Stock-based Compensation - Schedule of Stock-based Compensation Expense (Unaudited) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	$ 2,711	$ 639
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	1,643	334
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	$ 1,068	$ 305

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 0	$ 0
Deferred tax assets, valuation allowance	0		$ 0
Accrued interest or penalties related to uncertain tax positions	0		0
Amount of accrued interest or penalties recognized	0		0
Unrecognized tax benefits	$ 0		$ 0

Benefit Plan - Additional Infor

Benefit Plan - Additional Information (Details) - 401(k) Plan - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Defined Contribution Plan Disclosure [Line Items]
Automatic matching contribution of employer ($1.00 per $1.00 of employee contribution)	100.00%
Maximum contribution by employee, percentage	4.00%
Company contributions to 401 (k) plan	$ 339	$ 156

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Oct. 31, 2019	Jul. 31, 2018	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Loss Contingencies [Line Items]
Additional regulatory expected payments			$ 20,000
Operating lease effective date		Jul. 1, 2018
Operating lease expiration date		2021-06
Lessee, Operating Lease, Existence of Option to Extend [true false]		true
Operating lease, option to extend		option to extend it by one year
Operating lease term of extension		1 year
Lease payment under lease for second year		$ 365
Lease payment under lease for third year		376
Lease payment for remainder of lease		$ 191
Rent expense			$ 154	$ 51
Additional Office Space
Loss Contingencies [Line Items]
Operating lease effective date	Oct. 1, 2019
Operating lease expiration date	2021-06
Total lease payment under lease for remainder of fiscal year	$ 101
Lease payment under lease for second year	407
Lease payment for remainder of lease	$ 208
Additional Lab Space
Loss Contingencies [Line Items]
Operating lease effective date	Oct. 15, 2019
Operating lease expiration date	2025-02
Total lease payment under lease for remainder of fiscal year	$ 11
Lease payment under lease for second year	103
Lease payment for remainder of lease	$ 573
Lab Equipment
Loss Contingencies [Line Items]
Payments for non-cancelable lease agreement					$ 1,193
Duration of non-cancelable lease agreement					60 months

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Related party liability	$ 9,929		$ 12,892
AZ Parties
Related Party Transaction [Line Items]
Costs under agreements	9,062	$ 9,831
Related party liability	$ 9,929

Collaboration Agreements - Addi

Collaboration Agreements - Additional Information (Details) - Commercial License And Collaboration Agreement - USD ($) $ in Thousands	Oct. 08, 2019	May 24, 2019	Jun. 30, 2019	Mar. 31, 2020	Dec. 31, 2019
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Non-refundable upfront payments received			$ 15,000
Additional upfront non-refundable amount payment payable					$ 5,000
Revenues	$ 30,000	$ 20,000
Revenue from Contract with Customer, Product and Service [Extensible List]		us-gaap:LicenseMember
Additional upfront non-refundable amount received					$ 5,000
Upfront payment yet to be received	$ 30,000
Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Additional payments under agreement ability to receive				$ 203,000
Commercial milestone payments				180,000
Development milestone payments				5,000
Minimum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Development milestone payments				$ 2,000