Equillium (EQ) 10-Q 13 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 07, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	EQ
Entity Registrant Name	EQUILLIUM, INC.
Entity Central Index Key	0001746466
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		17,376,236

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 21,394	$ 28,508
Short-term investments	40,213	37,405
Prepaid expenses and other current assets	1,022	1,186
Total current assets	62,629	67,099
Property and equipment, net	83	64
Other assets	15
Total assets	62,727	67,163
Current liabilities:
Accounts payable	1,588	1,119
Accrued expenses	1,464	909
Total current liabilities	3,052	2,028
Non-current liabilities	181	200
Total liabilities	3,233	2,228
Commitments and contingencies
Stockholders' equity:
Common stock, $0.0001 par value; 200,000,000 shares authorized; 17,376,236 shares issued and outstanding	1	1
Additional paid-in capital	80,906	80,441
Accumulated other comprehensive income	49	5
Accumulated deficit	(21,462)	(15,512)
Total stockholders' equity	59,494	64,935
Total liabilities and stockholders' equity	$ 62,727	$ 67,163

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	17,376,236	17,376,236
Common stock, shares outstanding	17,376,236	17,376,236

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating expenses:
Research and development	$ 3,759	$ 663
General and administrative	2,589	374
Total operating expenses	6,348	1,037
Loss from operations	(6,348)	(1,037)
Other income (expense), net:
Interest expense		(489)
Interest income	398	5
Change in fair value of Biocon anti-dilution right		(56)
Total other income (expense), net	398	(540)
Net loss	(5,950)	(1,577)
Other comprehensive income:
Unrealized gain on available-for-sale securities, net	44
Comprehensive loss	$ (5,906)	$ (1,577)
Net loss per share, basic and diluted	$ (0.34)	$ (0.15)
Weighted-average common shares outstanding, basic and diluted	17,376,236	10,708,074

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
Balance at Dec. 31, 2017	$ (2,252)		$ 10		$ (2,262)
Balance, Shares at Dec. 31, 2017		10,708,074
Net loss	(1,577)				(1,577)
Balance at Mar. 31, 2018	(3,829)		10		(3,839)
Balance, Shares at Mar. 31, 2018		10,708,074
Balance at Dec. 31, 2018	64,935	$ 1	80,441	$ 5	(15,512)
Balance, Shares at Dec. 31, 2018		17,376,236
Vesting of restricted stock liability	19		19
Stock-based compensation expense	446		446
Other comprehensive income	44			44
Net loss	(5,950)				(5,950)
Balance at Mar. 31, 2019	$ 59,494	$ 1	$ 80,906	$ 49	$ (21,462)
Balance, Shares at Mar. 31, 2019		17,376,236

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities:
Net loss	$ (5,950)	$ (1,577)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	5	1
Stock-based compensation	446
Non-cash interest expense		489
Accretion of discount on investments, net	(124)
Change in fair value of Biocon anti-dilution right		56
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	149	18
Accounts payable	455	(4)
Accrued expenses	555	128
Net cash used in operating activities	(4,464)	(889)
Investing activities:
Purchases of property and equipment	(11)	(5)
Purchases of short-term investments	(14,215)
Maturities of short-term investments	11,575
Net cash used in investing activities	(2,651)	(5)
Net decrease in cash and cash equivalents	(7,115)	(894)
Cash and cash equivalents at beginning of period	28,509	7,103
Cash and cash equivalents at end of period	21,394	6,209
Supplemental disclosures of noncash activities:
Amounts included in accounts payable for purchases of property and equipment	$ 13	$ 6

Organization and Accounting Pro

Organization and Accounting Pronouncements	3 Months Ended
	Mar. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Accounting Pronouncements	1. Organization and Accounting Pronouncements Description of Business Equillium, Inc. (the Company) was incorporated in the state of Delaware on March 16, 2017. The Company is engaged in the research and development of products for severe autoimmune and inflammatory disorders with high unmet medical need. From inception through March 31, 2019, the Company has devoted substantially all of its efforts to organizing and staffing the company, business planning, raising capital, in-licensing rights to itolizumab, conducting preclinical research, filing its initial Investigational New Drug application (IND) and commencing clinical development of the Company’s initial product candidate, itolizumab (EQ001). In addition, the Company has a limited operating history, has not generated revenues from its principal operations, and the sales and income potential of its business is unproven. Liquidity As of March 31, 2019, the Company had $61.6 million in cash, cash equivalents and short-term investments. The Company has incurred significant operating losses and negative cash flows from operations. The Company expects to use its cash, cash equivalents and short-term investments to fund research and development of itolizumab and for working capital and other general corporate purposes. The Company does not expect to generate any revenues from product sales unless and until the Company successfully completes development and obtains regulatory approval of itolizumab or any future product candidate, which will not be for at least the next several years, if ever. Accordingly, until such time as the Company can generate significant revenue from sales of its product candidates, if ever, the Company expects to finance its cash needs through a combination of equity offerings, debt financings, and collaboration and license agreements. However, the Company may not be able to secure additional financing or enter into such other arrangements in a timely manner or on favorable terms, if at all. The Company’s failure to raise capital or enter into such other arrangements when needed would have a negative impact on the Company’s financial condition and could force the Company to delay, reduce or terminate its research and development programs or other operations, or grant rights to develop and market product candidates that the Company would otherwise prefer to develop and market itself. Management believes that the Company’s cash, cash equivalents and short-term investments as of March 31, 2019 will be sufficient to fund operations for more than a year from the date this Quarterly Report on Form 10-Q is filed with the Securities and Exchange Commission (SEC). Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the rules and regulations of the SEC related to a quarterly report on Form 10-Q. Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (ASC) and Accounting Standards Updates (ASU) promulgated by the Financial Accounting Standards Board (FASB). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The condensed consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The operating results presented in these condensed consolidated financial statements are not necessarily indicative of the results that may be expected for any future periods. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 27, 2019. Principles of Consolidation In January 2019, the Company created a new wholly-owned subsidiary in Australia with the Company serving as the sole shareholder through the subscription of shares. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany transactions and balances have been eliminated in consolidation. Recently Issued Accounting Pronouncements In February 2015, the FASB issued ASU 2016-02, Leases (Topic 842), Leases Leases In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates The preparation of the Company’s condensed consolidated financial statements requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the condensed consolidated financial statements and accompanying notes. Significant estimates in the Company’s condensed consolidated financial statements relate to clinical trial accruals and the valuation of equity awards. Management evaluates its estimates on an ongoing basis. Although estimates are based on the Company’s historical experience, knowledge of current events, and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. Accrued Research and Development Expense The Company is required to estimate its expenses resulting from its obligations under contracts with vendors, consultants and contract research organizations, in connection with conducting research and development activities. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided under such contracts. The Company reflects research and development expenses in its condensed consolidated financial statements by matching those expenses with the period in which services and efforts are expended. The Company accounts for these expenses according to the progress of the preclinical or clinical study as measured by the timing of various aspects of the study or related activities. The Company determines accrual estimates through review of the underlying contracts along with preparation of financial models taking into account discussions with research and other key personnel as to the progress of studies, or other services being conducted. During the course of a study, the Company adjusts its rate of expense recognition if actual results differ from its estimates. The Company classifies its estimates for accrued research and development expenses as accrued expenses on the accompanying condensed consolidated balance sheet. Stock-Based Compensation The Company measures employee and non-employee stock-based awards at grant-date fair value and records compensation expense on a straight-line basis over the vesting period of the award. The Company uses the Black-Scholes option pricing model to value its stock option awards. Estimating the fair value of stock option awards requires management to apply judgment and make estimates of certain assumptions, including the volatility of the Company’s common stock, the expected term of the Company’s stock options, the expected dividend yield and the fair value of the Company’s common stock on the measurement date. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards. The expected term of stock options was estimated using the “simplified method” for employee options as the Company has no historical information to develop reasonable expectations about future exercise patterns and post vesting employment termination behavior for its stock option grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For options granted to non-employees, the Company uses the remaining contractual life. For stock price volatility, the Company uses comparable public companies as a basis for its expected volatility to calculate the fair value of option grants. The Company assumes no dividend yield because dividends are not expected to be paid in the near future, which is consistent with the Company’s history of not paying dividends. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. The Company accounts for forfeitures when they occur, and reverses any compensation cost previously recognized for awards for which the requisite service has not been completed, in the period that the award is forfeited. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. The Company’s potentially dilutive securities include outstanding stock options under the Company’s equity incentive plan and have been excluded from the computation of diluted net loss per share as they would be anti-dilutive to the net loss per share. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares): Three months ended March 31, 2019 2018 Common stock options 1,150,483 - Total 1,150,483 -

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	3. Fair Value of Financial Instruments The following tables summarize the Company’s assets that require fair value measurements on a recurring basis and their respective input levels based on the fair value hierarchy (in thousands): Fair Value Measurements Using Quoted Prices in Significant Significant Active Markets Other Unobservable March 31, for Identical Observable Inputs 2019 Assets (Level 1) Inputs (Level 2) (Level 3) Short-term investments: U.S. treasury securities $ 29,868 $ 29,868 $ - $ - Agency securities 7,193 - 7,193 - Certificates of deposit 3,152 3,152 - - Total $ 40,213 $ 33,020 $ 7,193 $ - Fair Value Measurements Using Quoted Prices in Significant Significant Active Markets Other Unobservable December 31, for Identical Observable Inputs 2018 Assets (Level 1) Inputs (Level 2) (Level 3) Short-term investments: U.S. treasury securities $ 29,821 $ 29,821 $ - $ - Agency securities 5,659 - 5,659 - Certificates of deposit 1,925 1,925 - - Total $ 37,405 $ 31,746 $ 5,659 $ - U.S. treasury securities and certificates of deposit are valued using Level 1 inputs. Level 1 securities are valued at unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Fair values determined by Level 2 inputs, which utilize data points that are observable such as quoted prices, interest rates and yield curves, require the exercise of judgment and use of estimates, that if changed, could significantly affect the Company’s financial position and results of operations. Investments in agency securities are valued using Level 2 inputs. Level 2 securities are initially valued at the transaction price and subsequently valued and reported utilizing inputs other than quoted prices that are observable either directly or indirectly, such as quotes from third-party pricing vendors. The carrying amounts of the Company’s financial instruments, including cash, prepaid and other current assets, accounts payable, and accrued liabilities, approximate fair value due to their short maturities. None of the Company’s non-financial assets or liabilities are recorded on a fair value on a non-recurring basis. No transfers between levels have occurred during the periods presented. At March 31, 2019 and December 31, 2018, the Company had investments in money market funds of $10.1 million and $12.6 million, respectively, that were measured at fair value using the net asset value per share (or its equivalent) that have not been classified in the fair value hierarchy. The funds invest primarily in U.S. government securities. The Company did not hold any Level 1, 2 or 3 financial liabilities that are recorded at fair value on a recurring basis as of March 31, 2019 and December 31, 2018.

Certain Financial Statement Cap

Certain Financial Statement Caption Information	3 Months Ended
	Mar. 31, 2019
Certain Financial Statement Caption Information [Abstract]
Certain Financial Statement Caption Information	4. Certain Financial Statement Caption Information Short-Term Investments The following is a summary of the Company’s short-term investments (in thousands): Maturity Amortized Unrealized Unrealized Estimated (in years) Cost Losses Gains Fair Value March 31, 2019 U.S. treasury securities 1 or less $ 29,859 $ (1 ) $ 10 $ 29,868 Agency securities >1 and <5 7,168 - 25 7,193 Certificates of deposit >1 and <5 3,137 - 15 3,152 Total $ 40,164 $ (1 ) $ 50 $ 40,213 December 31, 2018 U.S. treasury securities 1 or less $ 29,818 $ - $ 3 $ 29,821 Agency securities >1 and <5 5,657 - 2 5,659 Certificates of deposit >1 and <5 1,925 - - 1,925 Total $ 37,400 $ - $ 5 $ 37,405 All of the Company’s available-for-sale securities are available to the Company for use in its current operations. As a result, the Company categorizes all of these securities as current assets even though the stated maturity of some individual securities may be one year or more beyond the balance sheet date. All of the Company’s securities have a maturity within two years of the balance sheet date. There were no impairments considered other-than-temporary during the periods presented, as it is management’s intention and ability to hold the securities until a recovery of the cost basis or recovery of fair value. There were no gross realized gains and losses on sales of short-term investments for all periods presented. Unrealized gains and losses are included in accumulated other comprehensive loss. Accrued Expenses Accrued expenses consist of the following (in thousands): March 31, December 31, 2019 2018 Accrued payroll and other employee benefits $ 315 $ 560 Clinical studies 866 245 Other accruals 131 96 Preclinical studies 152 8 Total accrued expenses $ 1,464 $ 909

Collaboration and License Agree

Collaboration and License Agreement	3 Months Ended
	Mar. 31, 2019
Collaboration And License Agreement [Abstract]
Collaboration and License Agreement	5. Collaboration and License Agreement In May 2017, the Company entered into a collaboration and license agreement, clinical supply agreement, investor rights agreement, and common stock purchase agreement (collectively License Agreements) with Biocon SA (subsequently assigned to Biocon Limited (together, Biocon)). Pursuant to the License Agreements, Biocon granted the Company an exclusive license in the United States and Canada (Company Territory) to develop, make, have made, use, sell, have sold, offer for sale, import and otherwise exploit itolizumab and any pharmaceutical composition or preparation containing or comprising itolizumab (Biocon Product) that uses Biocon technology or Biocon know-how. Pursuant to the License Agreements, Biocon agreed to be the Company’s exclusive supplier of itolizumab clinical drug product. Biocon will provide clinical drug product at no cost for up to three concurrent orphan indications until the Company’s first U.S. regulatory approval and all other clinical drug product at Biocon’s cost. In consideration of the rights granted to the Company by Biocon, the Company issued Biocon shares of its common stock equal to 19.5% of its outstanding shares at the time of the execution of the License Agreements. In addition, the Company was required to issue Biocon additional shares of common stock to maintain Biocon’s ownership interest of the Company’s fully-diluted capitalization until the Company received aggregate cumulative gross proceeds from sales of equity securities of $15.0 million, the Biocon Anti-Dilution Right. The Biocon Anti-Dilution Right was recorded at fair value using the precedent transaction method and was determined to be $605,402 at the time of issuance. As an obligation existed to issue a variable number of shares and such obligation was not indexed to the Company’s common stock, the Biocon Anti-Dilution Right was classified as a liability in the accompanying balance sheet. The fair value of the Biocon Anti-Dilution Right was re-measured at each financial reporting period with any changes in fair value being recognized as a component of other expense (income). In connection with the closing of the Company’s initial public offering in October 2018, the Company issued to Biocon 228,060 shares of common stock in full satisfaction of the Biocon Anti-Dilution Right and the liability was reclassified to stockholder’s equity. In addition, the Company is obligated to pay Biocon up to an aggregate of $30 million in regulatory milestone payments upon the achievement of certain regulatory approvals and up to an aggregate of $565 million in sales milestone payments upon the achievement of first commercial sale of product and specified levels of product sales. The Company is also required to pay quarterly tiered royalties based on a percentage from the mid-single digits to sub-teen double-digits of net sales of Biocon Products, subject to adjustments in certain circumstances. Biocon is also required to pay the Company royalties at comparable percentages for sales of itolizumab outside of the Company Territory if the approvals in such geographies included or referenced the Company’s data. To date, the Company has not made or received payments in connection with the milestones or royalties within the agreement.

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Stockholders’ Equity	6. Stockholders’ Equity As of March 31, 2019, the Company’s authorized capital stock consists of 200,000,000 shares of common stock, par value $0.0001 per share, and 10,000,000 shares of preferred stock, par value $0.0001 per share. The Company had 17,376,236 shares of common stock outstanding as of March 31, 2019 and December 31, 2018. Common Stock Reserved for Future Issuance Common stock reserved for future issuance at March 31, 2019 is as follows: March 31, December 31, 2019 2018 (unaudited) Stock options issued and outstanding 1,150,483 420,483 Awards available under the 2018 Equity Incentive Plan 1,501,930 1,363,119 Employee stock purchase plan 517,037 343,275 Total 3,169,450 2,126,877 Stock-Based Compensation Expense The assumptions used in the Black-Scholes option pricing model to determine the fair value of the employee and non-employee stock option grants were as follows: Three Months Ended March 31, 2019 2018 Risk-free interest rate 2.56 % - Expected volatility 93.01 % - Expected term (in years) 5.92 - Expected dividend yield 0 % - Weighted-average grant-date fair value per share $ 5.65 - The non-cash stock-based compensation expense for all stock awards, net of forfeitures recognized as they occur, that was recognized in the consolidated statements of operations is as follows (in thousands): Three Months Ended March 31, 2019 2018 Research and development $ 255 $ - General and administrative 191 - Total $ 446 $ -

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2015, the FASB issued ASU 2016-02, Leases (Topic 842), Leases Leases In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement
Use Of Estimates	Use of Estimates The preparation of the Company’s condensed consolidated financial statements requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the condensed consolidated financial statements and accompanying notes. Significant estimates in the Company’s condensed consolidated financial statements relate to clinical trial accruals and the valuation of equity awards. Management evaluates its estimates on an ongoing basis. Although estimates are based on the Company’s historical experience, knowledge of current events, and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions.
Accrued Research and Development Expense	Accrued Research and Development Expense The Company is required to estimate its expenses resulting from its obligations under contracts with vendors, consultants and contract research organizations, in connection with conducting research and development activities. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided under such contracts. The Company reflects research and development expenses in its condensed consolidated financial statements by matching those expenses with the period in which services and efforts are expended. The Company accounts for these expenses according to the progress of the preclinical or clinical study as measured by the timing of various aspects of the study or related activities. The Company determines accrual estimates through review of the underlying contracts along with preparation of financial models taking into account discussions with research and other key personnel as to the progress of studies, or other services being conducted. During the course of a study, the Company adjusts its rate of expense recognition if actual results differ from its estimates. The Company classifies its estimates for accrued research and development expenses as accrued expenses on the accompanying condensed consolidated balance sheet.
Stock-Based Compensation	Stock-Based Compensation The Company measures employee and non-employee stock-based awards at grant-date fair value and records compensation expense on a straight-line basis over the vesting period of the award. The Company uses the Black-Scholes option pricing model to value its stock option awards. Estimating the fair value of stock option awards requires management to apply judgment and make estimates of certain assumptions, including the volatility of the Company’s common stock, the expected term of the Company’s stock options, the expected dividend yield and the fair value of the Company’s common stock on the measurement date. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards. The expected term of stock options was estimated using the “simplified method” for employee options as the Company has no historical information to develop reasonable expectations about future exercise patterns and post vesting employment termination behavior for its stock option grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For options granted to non-employees, the Company uses the remaining contractual life. For stock price volatility, the Company uses comparable public companies as a basis for its expected volatility to calculate the fair value of option grants. The Company assumes no dividend yield because dividends are not expected to be paid in the near future, which is consistent with the Company’s history of not paying dividends. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. The Company accounts for forfeitures when they occur, and reverses any compensation cost previously recognized for awards for which the requisite service has not been completed, in the period that the award is forfeited.
Net Loss Per Share	Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. The Company’s potentially dilutive securities include outstanding stock options under the Company’s equity incentive plan and have been excluded from the computation of diluted net loss per share as they would be anti-dilutive to the net loss per share. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares): Three months ended March 31, 2019 2018 Common stock options 1,150,483 - Total 1,150,483 -

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Summary of Potentially Dilutive Securities Not Included in Calculation of Diluted Net Loss Per Share	Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares): Three months ended March 31, 2019 2018 Common stock options 1,150,483 - Total 1,150,483 -

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Summary of Assets that Require Fair Value Measurements on Recurring Basis and Their Respective Input Levels Based on Fair Value Hierarchy	The following tables summarize the Company’s assets that require fair value measurements on a recurring basis and their respective input levels based on the fair value hierarchy (in thousands): Fair Value Measurements Using Quoted Prices in Significant Significant Active Markets Other Unobservable March 31, for Identical Observable Inputs 2019 Assets (Level 1) Inputs (Level 2) (Level 3) Short-term investments: U.S. treasury securities $ 29,868 $ 29,868 $ - $ - Agency securities 7,193 - 7,193 - Certificates of deposit 3,152 3,152 - - Total $ 40,213 $ 33,020 $ 7,193 $ - Fair Value Measurements Using Quoted Prices in Significant Significant Active Markets Other Unobservable December 31, for Identical Observable Inputs 2018 Assets (Level 1) Inputs (Level 2) (Level 3) Short-term investments: U.S. treasury securities $ 29,821 $ 29,821 $ - $ - Agency securities 5,659 - 5,659 - Certificates of deposit 1,925 1,925 - - Total $ 37,405 $ 31,746 $ 5,659 $ -

Certain Financial Statement C_2

Certain Financial Statement Caption Information (Tables)	3 Months Ended
	Mar. 31, 2019
Certain Financial Statement Caption Information [Abstract]
Schedule of Company’s Short-Term Investments	The following is a summary of the Company’s short-term investments (in thousands): Maturity Amortized Unrealized Unrealized Estimated (in years) Cost Losses Gains Fair Value March 31, 2019 U.S. treasury securities 1 or less $ 29,859 $ (1 ) $ 10 $ 29,868 Agency securities >1 and <5 7,168 - 25 7,193 Certificates of deposit >1 and <5 3,137 - 15 3,152 Total $ 40,164 $ (1 ) $ 50 $ 40,213 December 31, 2018 U.S. treasury securities 1 or less $ 29,818 $ - $ 3 $ 29,821 Agency securities >1 and <5 5,657 - 2 5,659 Certificates of deposit >1 and <5 1,925 - - 1,925 Total $ 37,400 $ - $ 5 $ 37,405
Schedule of Accrued Expenses	Accrued expenses consist of the following (in thousands): March 31, December 31, 2019 2018 Accrued payroll and other employee benefits $ 315 $ 560 Clinical studies 866 245 Other accruals 131 96 Preclinical studies 152 8 Total accrued expenses $ 1,464 $ 909

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Summary of Reserved Shares of Common Stock for Future Issuance	Common stock reserved for future issuance at March 31, 2019 is as follows: March 31, December 31, 2019 2018 (unaudited) Stock options issued and outstanding 1,150,483 420,483 Awards available under the 2018 Equity Incentive Plan 1,501,930 1,363,119 Employee stock purchase plan 517,037 343,275 Total 3,169,450 2,126,877
Summary of Weighted-Average Assumptions Used to Determine Fair Value of Stock Option Grants	The assumptions used in the Black-Scholes option pricing model to determine the fair value of the employee and non-employee stock option grants were as follows: Three Months Ended March 31, 2019 2018 Risk-free interest rate 2.56 % - Expected volatility 93.01 % - Expected term (in years) 5.92 - Expected dividend yield 0 % - Weighted-average grant-date fair value per share $ 5.65 -
Summary of Stock-Based Compensation	The non-cash stock-based compensation expense for all stock awards, net of forfeitures recognized as they occur, that was recognized in the consolidated statements of operations is as follows (in thousands): Three Months Ended March 31, 2019 2018 Research and development $ 255 $ - General and administrative 191 - Total $ 446 $ -

Organization and Accounting P_2

Organization and Accounting Pronouncements - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Date of incorporation	Mar. 16, 2017
State of incorporation	Delaware
Cash, Cash equivalents and short-term investments	$ 61.6

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Summary of Potentially Dilutive Securities Not Included in Calculation of Diluted Net Loss Per Share (Details)	3 Months Ended
	Mar. 31, 2019shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities not included in calculation of diluted net loss per share	1,150,483
Common Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities not included in calculation of diluted net loss per share	1,150,483

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Summary of Assets that Require Fair Value Measurements on Recurring Basis and Their Respective Input Levels Based on Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	$ 40,213	$ 37,405
U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	29,868	29,821
Certificates of Deposit
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	3,152	1,925
Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	7,193	5,659
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	33,020	31,746
Level 1 | U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	29,868	29,821
Level 1 | Certificates of Deposit
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	3,152	1,925
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	7,193	5,659
Level 2 | Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total short-term investments	$ 7,193	$ 5,659

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Fair Value Measured Using Net Asset Value | Money Market Funds
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Investments in money market funds	$ 10.1	$ 12.6

Certain Financial Statement C_3

Certain Financial Statement Caption Information - Schedule of Company's Short-Term Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 40,164	$ 37,400
Unrealized losses	(1)
Unrealized Gains	50	5
Short-term investments	40,213	37,405
U.S. Treasury Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	29,859	29,818
Unrealized losses	(1)
Unrealized Gains	10	3
Short-term investments	$ 29,868	$ 29,821
U.S. Treasury Securities | Maximum
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)	1 year	1 year
Agency Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 7,168	$ 5,657
Unrealized Gains	25	2
Short-term investments	$ 7,193	$ 5,659
Agency Securities | Minimum
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)	1 year	1 year
Agency Securities | Maximum
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)	5 years	5 years
Certificates of Deposit
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 3,137	$ 1,925
Unrealized Gains	15
Short-term investments	$ 3,152	$ 1,925
Certificates of Deposit | Minimum
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)	1 year	1 year
Certificates of Deposit | Maximum
Schedule Of Available For Sale Securities [Line Items]
Maturity (in years)	5 years	5 years

Certain Financial Statement C_4

Certain Financial Statement Caption Information - Additional information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Schedule Of Available For Sale Securities [Line Items]
Other than temporary impairment loss investments available for sale securities	$ 0
Minimum
Schedule Of Available For Sale Securities [Line Items]
Available for sale Securities debt maturities period	1 year
Maximum
Schedule Of Available For Sale Securities [Line Items]
Available for sale Securities debt maturities period	2 years

Certain Financial Statement C_5

Certain Financial Statement Caption Information - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Accrued Liabilities Current [Abstract]
Accrued payroll and other employee benefits	$ 315	$ 560
Clinical studies	866	245
Other accruals	131	96
Preclinical studies	152	8
Total accrued expenses	$ 1,464	$ 909

Collaboration And License Agr_2

Collaboration And License Agreements - Additional Information (Details) - USD ($)	Oct. 16, 2018	May 31, 2017
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Proceeds from sale of equity securities		$ 15,000,000
Biocon Anti-Dilution Right | Collaboration and License Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Percentage of common stock outstanding shares issued in consideration for collaboration and license agreement		19.50%
Issuance of liability		$ 605,402
Biocon | Collaboration and License Agreement | Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Regulatory milestone payments		30,000,000
Sales milestone payments		$ 565,000,000
Biocon | IPO
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Common Stock Shares Issued	228,060

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Common stock, shares authorized	200,000,000	200,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000
Preferred stock, par value	$ 0.0001
Common stock, shares outstanding	17,376,236	17,376,236

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Common Stock Reserved for Future Issuance (Details) - shares	Mar. 31, 2019	Dec. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total common stock reserved for future issuance	3,169,450	2,126,877
Stock Options Issued and Outstanding
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total common stock reserved for future issuance	1,150,483	420,483
Awards Available Under2018 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total common stock reserved for future issuance	1,501,930	1,363,119
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total common stock reserved for future issuance	517,037	343,275

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of Weighted - Average Assumptions Used to Determine Fair Value of Stock Option Grants (Details)	3 Months Ended
	Mar. 31, 2019$ / shares
Equity [Abstract]
Risk-free interest rate	2.56%
Expected volatility	93.01%
Expected term (in years)	5 years 11 months 1 day
Expected dividend yield	0.00%
Weighted-average grant-date fair value per share	$ 5.65

Stockholders' Equity - Summar_3

Stockholders' Equity - Summary of Stock-Based Compensation (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-cash stock-based compensation expense	$ 446
Research and Development Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-cash stock-based compensation expense	255
General and Administrative Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-cash stock-based compensation expense	$ 191