Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ALVR | |
Entity Registrant Name | ALLOVIR, INC. | |
Entity Central Index Key | 0001754068 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
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 Shell Company | false | |
Entity Common Stock, Shares Outstanding | 65,117,971 | |
Security12b Title | Common Stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-39409 | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 83-1971007 | |
Entity Address Address Line1 | 139 Main Street | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address City Or Town | Cambridge | |
Entity Address State Or Province | MA | |
Entity Address Postal Zip Code | 02142 | |
City Area Code | 617 | |
Local Phone Number | 433-2605 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 225,447 | $ 122,661 |
Short-term investments | 87,890 | 233,663 |
Accrued interest | 409 | 450 |
Prepaid expenses and other current assets | 2,299 | 4,543 |
Total current assets | 316,045 | 361,317 |
Other assets | 692 | |
Property and equipment, net | 1,215 | 812 |
Operating lease right-of-use assets | 9,559 | 8,692 |
Total assets | 327,511 | 370,821 |
Current liabilities: | ||
Accounts payable | 4,202 | 963 |
Accrued expenses | 9,975 | 7,530 |
Operating lease liability, current | 4,830 | 3,229 |
Amount due to related party | 1,701 | 572 |
Total current liabilities | 20,708 | 12,294 |
Operating lease liability, long term | 4,334 | 5,463 |
Total liabilities | 25,042 | 17,757 |
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value: 10,000,000 shares authorized at June 30, 2021 and December 31, 2020, respectively; 0 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | ||
Common stock, $0.0001 par value: 150,000,000 shares authorized at June 30, 2021 and December 31, 2020, respectively; 65,106,873 shares issued at June 30, 2021 and December 31, 2020, respectively; and 62,792,043 and 61,931,255 shares outstanding at June 30, 2021 and December 31, 2020, respectively | 7 | 7 |
Additional paid-in capital | 496,101 | 478,272 |
Accumulated other comprehensive loss | (25) | (112) |
Accumulated deficit | (193,614) | (125,103) |
Total stockholders’ equity | 302,469 | 353,064 |
Total liabilities and stockholders’ equity | $ 327,511 | $ 370,821 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par or stated value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 65,106,873 | 65,106,873 |
Common stock, shares outstanding | 62,792,043 | 61,931,255 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating expenses: | ||||
Research and development | $ 25,677 | $ 8,885 | $ 46,070 | $ 15,724 |
General and administrative | 11,978 | 3,268 | 22,448 | 6,269 |
Total operating expenses | 37,655 | 12,153 | 68,518 | 21,993 |
Loss from operations | (37,655) | (12,153) | (68,518) | (21,993) |
Total other income (loss), net: | ||||
Interest income | 475 | 166 | 980 | 623 |
Other (loss) income, net | (408) | 355 | (973) | 399 |
Net loss | $ (37,588) | $ (11,632) | $ (68,511) | $ (20,971) |
Net loss per share — basic and diluted | $ (0.60) | $ (4.43) | $ (1.10) | $ (8.66) |
Weighted-average common shares outstanding — basic and diluted | 62,344,718 | 2,625,648 | 62,399,034 | 2,420,797 |
Comprehensive loss: | ||||
Net loss | $ (37,588) | $ (11,632) | $ (68,511) | $ (20,971) |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized (loss) gain on available-for-sale securities | (16) | (134) | 26 | 42 |
Foreign currency translation adjustment | (22) | 61 | ||
Total other comprehensive (loss) income | (38) | (134) | 87 | 42 |
Comprehensive loss | $ (37,626) | $ (11,766) | $ (68,424) | $ (20,929) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Series B Preferred Stock | Series A Preferred Stock |
Balance at Dec. 31, 2019 | $ (51,503) | $ 3,748 | $ 68 | $ (55,319) | |||
Temporary equity, Balance, Shares at Dec. 31, 2019 | 14,877,697 | 44,520,653 | |||||
Temporary equity, Balance at Dec. 31, 2019 | $ 120,923 | $ 52,204 | |||||
Balance, Shares at Dec. 31, 2019 | 2,099,740 | ||||||
Issuance of common stock, upon vesting of restricted stock, Shares | 292,644 | ||||||
Unrealized (loss) gain on available-for-sale securities | 176 | 176 | |||||
Stock-based compensation | 646 | 646 | |||||
Net loss | (9,339) | (9,339) | |||||
Balance at Mar. 31, 2020 | (60,020) | 4,394 | 244 | (64,658) | |||
Temporary equity, Balance, Shares at Mar. 31, 2020 | 14,877,697 | 44,520,653 | |||||
Temporary equity, Balance at Mar. 31, 2020 | $ 120,923 | $ 52,204 | |||||
Balance, Shares at Mar. 31, 2020 | 2,392,384 | ||||||
Balance at Dec. 31, 2019 | (51,503) | 3,748 | 68 | (55,319) | |||
Temporary equity, Balance, Shares at Dec. 31, 2019 | 14,877,697 | 44,520,653 | |||||
Temporary equity, Balance at Dec. 31, 2019 | $ 120,923 | $ 52,204 | |||||
Balance, Shares at Dec. 31, 2019 | 2,099,740 | ||||||
Unrealized (loss) gain on available-for-sale securities | 42 | ||||||
Net loss | (20,971) | ||||||
Balance at Jun. 30, 2020 | (71,294) | 4,886 | 110 | (76,290) | |||
Temporary equity, Balance, Shares at Jun. 30, 2020 | 14,877,697 | 44,520,653 | |||||
Temporary equity, Balance at Jun. 30, 2020 | $ 120,923 | $ 52,204 | |||||
Balance, Shares at Jun. 30, 2020 | 2,801,859 | ||||||
Balance at Mar. 31, 2020 | (60,020) | 4,394 | 244 | (64,658) | |||
Temporary equity, Balance, Shares at Mar. 31, 2020 | 14,877,697 | 44,520,653 | |||||
Temporary equity, Balance at Mar. 31, 2020 | $ 120,923 | $ 52,204 | |||||
Balance, Shares at Mar. 31, 2020 | 2,392,384 | ||||||
Issuance of common stock, upon vesting of restricted stock, Shares | 409,475 | ||||||
Unrealized (loss) gain on available-for-sale securities | (134) | (134) | |||||
Stock-based compensation | 492 | 492 | |||||
Net loss | (11,632) | (11,632) | |||||
Balance at Jun. 30, 2020 | (71,294) | 4,886 | 110 | (76,290) | |||
Temporary equity, Balance, Shares at Jun. 30, 2020 | 14,877,697 | 44,520,653 | |||||
Temporary equity, Balance at Jun. 30, 2020 | $ 120,923 | $ 52,204 | |||||
Balance, Shares at Jun. 30, 2020 | 2,801,859 | ||||||
Balance at Dec. 31, 2020 | 353,064 | $ 7 | 478,272 | (112) | (125,103) | ||
Balance, Shares at Dec. 31, 2020 | 61,931,255 | ||||||
Issuance of common stock, upon vesting of restricted stock, Shares | 519,839 | ||||||
Unrealized (loss) gain on available-for-sale securities | 42 | 42 | |||||
Foreign currency translation adjustment | 83 | 83 | |||||
Stock-based compensation | 8,103 | 8,103 | |||||
Net loss | (30,923) | (30,923) | |||||
Balance at Mar. 31, 2021 | 330,369 | $ 7 | 486,375 | 13 | (156,026) | ||
Balance, Shares at Mar. 31, 2021 | 62,451,094 | ||||||
Balance at Dec. 31, 2020 | 353,064 | $ 7 | 478,272 | (112) | (125,103) | ||
Balance, Shares at Dec. 31, 2020 | 61,931,255 | ||||||
Unrealized (loss) gain on available-for-sale securities | 26 | ||||||
Foreign currency translation adjustment | 61 | ||||||
Net loss | (68,511) | ||||||
Balance at Jun. 30, 2021 | 302,469 | $ 7 | 496,101 | (25) | (193,614) | ||
Balance, Shares at Jun. 30, 2021 | 62,792,043 | ||||||
Balance at Mar. 31, 2021 | 330,369 | $ 7 | 486,375 | 13 | (156,026) | ||
Balance, Shares at Mar. 31, 2021 | 62,451,094 | ||||||
Issuance of common stock, upon vesting of restricted stock, Shares | 340,949 | ||||||
Unrealized (loss) gain on available-for-sale securities | (16) | (16) | |||||
Foreign currency translation adjustment | (22) | (22) | |||||
Stock-based compensation | 9,726 | 9,726 | |||||
Net loss | (37,588) | (37,588) | |||||
Balance at Jun. 30, 2021 | $ 302,469 | $ 7 | $ 496,101 | $ (25) | $ (193,614) | ||
Balance, Shares at Jun. 30, 2021 | 62,792,043 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (68,511) | $ (20,971) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 51 | 37 |
Non-cash lease expense | 210 | |
Amortization and accretion of discounts on short-term investments | 897 | 7 |
Stock compensation expense | 17,829 | 1,138 |
Changes in operating assets and liabilities: | ||
Unbilled grant receivables | (56) | |
Accrued interest | 41 | 204 |
Prepaid expenses and other current assets | 1,638 | (1,749) |
Other assets | (692) | |
Accounts payable, accrued expenses and amount due to related party | 6,723 | (271) |
Net cash used in operating activities | (41,814) | (21,661) |
Cash flows from investing activities | ||
Purchase of property and equipment | (363) | |
Purchase of short-term investments | (30,098) | (26,156) |
Maturities of short-term investments | 175,000 | 65,000 |
Net cash provided by investing activities | 144,539 | 38,844 |
Cash flows from financing activities | ||
Effect of exchange rate changes on cash and cash equivalents | 61 | |
Net increase in cash and cash equivalents | 102,786 | 17,183 |
Cash and cash equivalents at beginning of period | 122,661 | 61,084 |
Cash and cash equivalents at end of period | 225,447 | 78,627 |
Non-cash investing and financing activities | ||
Unrealized gain on available-for-sale securities | 26 | $ 42 |
Right-of-use assets obtained in exchange for operating lease liability | 3,089 | |
Purchase of property and equipment included in accounts payable and accrued expenses | $ 91 |
Nature of the Business
Nature of the Business | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of the Business | 1. Nature of the Business AlloVir, Inc. (“AlloVir” or “the Company”, formerly known as ViraCyte, Inc.) is a leading late clinical-stage cell therapy company developing highly innovative allogeneic T-cell therapies to treat and prevent devastating viral diseases. The Company’s innovative and proprietary virus-specific T-cell, or VST, therapy platform allows AlloVir to generate off-the-shelf VSTs designed to restore immunity in patients with T-cell deficiencies who are at risk from the life-threatening consequences of viral diseases. There is an urgent medical need for therapies to treat a large number of patients suffering from viral diseases who currently have limited or no treatment options. To date, the Company has generated five innovative, allogeneic, off-the-shelf VST therapy candidates targeting 12 different devastating viruses. The most advanced is posoleucel (previously referred to as Viralym-M), for which the Company has an ongoing pivotal trial for the treatment of virus-associated hemorrhagic cystitis and ongoing proof-of-concept, or POC, clinical trials for multi-virus prevention in HSCT and BKV in kidney transplant. The Company’s lead product candidate, posoleucel, is a multi-VST-cell therapy that targets six viruses: BK virus, JC virus, cytomegalovirus, adenovirus, Epstein-Barr virus and human herpesvirus 6. To fully explore the clinical benefit of posoleucel, the Company plans to initiate an additional two Phase 3 pivotal and one Phase 2 proof-of-concept trials by the end of 2021 for the treatment and prevention of life-threatening viral diseases in pediatric and/or adult patients, each representing a potential meaningful commercial opportunity. In addition, ALVR106 is the Company’s second multi-virus-targeted off-the-shelf VST product candidate targeting devastating respiratory diseases caused by respiratory syncytial virus, or RSV, influenza, parainfluenza virus, or PIV, and human metapneumovirus, or hMPV. An Investigational New Drug, or IND, application with the FDA for ALVR106 was cleared in the fourth quarter of 2020 and the Company plans to initiate a Phase 1/2 clinical study in autologous and allogeneic HSCT patients with respiratory viral diseases in the second half of 2021. Pursuant to the sponsored research agreement with Baylor College of Medicine (“BCM”), BCM initiated a proof-of-concept trial for ALVR109, an allogeneic, off-the-shelf VST therapy designed to target SARS-CoV-2, the virus that causes the severe and life-threatening viral disease, COVID-19. ALVR109 is being developed to arrest the progression of COVID-19 by eradicating SARS-CoV-2 virus-infected cells. BCM initiated the POC clinical trial in the fourth quarter of 2020 and the trial is ongoing. With efficacy of available vaccine and therapies to prevent serious disease, we do not see a role for our COVID-19 therapy in a broad population. However, depending on the evolution of the SARS-CoV-2 virus, there may be a future role to treat immunocompromised patients who aren’t adequately served by available vaccines and therapies. We’re monitoring the evolution of the SARS-CoV-2 virus and the COVID-19 pandemic to guide the next steps for this program. Lastly, the Company is advancing ALVR107 designed to target hepatitis B, or HBV, infected cells and treat chronic HBV infections and ALVR108 to treat human herpesvirus-8, or HHV-8, associated diseases including Kaposi Sarcoma, or KS, primary effusion lymphoma, or PEL, and multicentric Castleman’s disease, or MCD. The Company plans to complete pre-clinical IND enabling studies for ALVR107 and ALVR108 in the second half of 2021. The Company was formed on August 16, 2013 as a Delaware limited liability company (“LLC”) under the name AdCyte LLC and on July 29, 2014 the Company changed its name to ViraCyte LLC. On September 17, 2018, the Company converted from a Delaware LLC to a Delaware corporation (“LLC Conversion”) and changed its name to ViraCyte, Inc. On May 22, 2019, the Company changed its name to AlloVir, Inc. The Company has principal offices in Houston, Texas and Cambridge, Massachusetts. On August 8, 2019, AlloVir formed AlloVir International Designated Activity Company (“AlloVir International”), a wholly-owned subsidiary established in Ireland. On October 9, 2019, AlloVir Securities Corporation was incorporated as a Massachusetts Security Corporation, a wholly-owned subsidiary of AlloVir. On November 10, 2019, AlloVir International formed AlloVir Italia S.R.L. (“AlloVir Italia”), a wholly-owned subsidiary in Italy. On August 3, 2020, the Company completed an initial public offering (“IPO”) in which the Company issued and sold 18,687,500 shares of its common stock, at a public offering price of $ 17.00 per share, resulting in gross proceeds of $ 317.7 million. The Company received $ 292.0 million in net proceeds after deducting underwriting discounts and commissions and offering costs. Upon the closing of the IPO, all of the then-outstanding shares of convertible preferred stock automatically converted into 39,859,139 shares of common stock at the applicable conversion ratio then in effect. Subsequent to the closing of the IPO, there were no shares of convertible preferred stock outstanding. ElevateBio, LLC On September 17, 2018, the Company executed a Series A2 Preferred Stock Purchase Agreement (“Series A2 Agreement”) with ElevateBio, LLC, a Delaware LLC (“ElevateBio”) concurrent with the LLC Conversion. ElevateBio was formed on November 29, 2017 and is headquartered in Cambridge, Massachusetts with a focus on the development of a portfolio of novel cell therapy programs acquired through business development activities with biotechnology companies. ElevateBio is structured as a holding company, comprised of asset-specific subsidiaries focused on the development of pipeline assets, as well as a manufacturing subsidiary with the expertise to provide drug development and manufacturing services. As a result of the purchase of the Company’s Series A2 Preferred Stock, ElevateBio acquired an ownership interest in the Company. The Chief Executive Officer, Chief Financial Officer, and other executives of ElevateBio have previously or currently serve in similar management roles with AlloVir. In May 2021, Diana M. Brainard M.D., succeeded David Hallal, ElevateBio's Chief Executive Officer, as the Company’s Chief Executive Officer and principal executive officer. Going Concern In accordance with Accounting Standards Update (“ASU”) 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (Subtopic 205-40) , the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the condensed consolidated financial statements are issued. The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, development by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations and the ability to secure additional capital to fund operations. Product candidates currently under development will require significant additional research and development efforts, including preclinical and clinical testing and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel and infrastructure and extensive compliance and reporting capabilities. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. The accompanying condensed consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the ordinary course of business. Through June 30, 2021, the Company has funded its operations primarily with proceeds received from the sale of common stock, research grants, and from the sale of preferred stock. The Company has incurred recurring losses since its inception, including net losses attributable to common stockholders of $ 37.6 million and $ 11.6 million for the three months ended June 30, 2021 and 2020, respectively, and $ 68.5 million and $ 21.0 million for the six months ended June 30, 2021 and 2020, respectively. In addition, at June 30, 2021, the Company had an accumulated deficit of $ 193.6 million. The Company expects to continue to generate operating losses for the foreseeable future. The Company believes that its $ 225.4 million of cash and cash equivalents and $ 87.9 million of short-term investments held at June 30, 2021, are sufficient to fund planned operations for at least twelve months from the date that these condensed consolidated financial statements are available to be issued. COVID-19 Considerations The development of product candidates could be disrupted and materially adversely affected in the future by a pandemic, epidemic or outbreak of an infectious disease, such as the recent COVID-19 pandemic. The spread of COVID-19 has impacted the global economy and has impacted the Company’s operations, including the interruption of preclinical and clinical trial activities and potential interruption to the Company’s supply chain. For example, the COVID-19 pandemic has delayed clinical trials. If the disruption due to the COVID-19 pandemic continues, planned pivotal clinical trials also could be delayed due to government orders and site policies on account of the pandemic, and some patients may be unwilling or unable to travel to study sites, enroll in trials or be unable to comply with clinical trial protocols if quarantines impede patient movement or interrupt healthcare services, which would delay the Company’s ability to conduct preclinical studies and clinical trials or release clinical trial results and could delay the Company’s ability to obtain regulatory approval and commercialize product candidates. Furthermore, COVID-19 could affect the Company’s employees or the employees of research sites and service providers on whom the Company relies on as well as those of companies with which the Company does business, including suppliers and contract manufacturing organizations or CMOs, thereby disrupting business operations. Quarantines and travel restrictions imposed by governments in the jurisdictions in which the Company and the companies with which it does business operate could materially impact the ability of employees to access preclinical and clinical sites, laboratories, manufacturing sites and offices. For the health and safety of our employees, the Company has implemented work-at-home policies and we have generally restricted on site staff to only those employees who are fully vaccinated or essential to the development and research of product candidates; accordingly, the Company may experience limitations in employee resources. The outbreak and any other preventative or protective actions that the Company, its suppliers or other third parties with which it has business relationships, or governments may take in respect of the COVID-19 pandemic, could disrupt, delay or otherwise adversely impact the business. The Company is still assessing business plans and the impact the COVID-19 pandemic may have on its ability to advance the testing, development and manufacturing of drug candidates, including as a result of adverse impacts on the research sites, service providers, vendors, or suppliers on whom the Company relies on, or to raise financing to support the development of our drug candidates. No assurances can be given that this analysis will enable the Company to avoid part or all of any impact from the spread of COVID-19 or its consequences, including downturns in business sentiment generally or this sector in particular. The Company cannot presently predict the scope and severity of any potential business shutdowns or disruptions, but if the Company or any of the third parties on whom it relies on or with whom it conducts business, were to experience shutdowns or other business disruptions, the Company’s ability to conduct business in the manner and on the timelines presently planned could be materially and adversely impacted. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2020 (“annual financial statements”), which are included in the Company’s Annual Report on Form 10-K that was filed with the SEC on February 12, 2021. Since the date of those financial statements, there have been no changes to the Company’s significant accounting policies, except as noted below. Interim Financial Information The accompanying condensed consolidated balance sheet at June 30, 2021, and the condensed consolidated statements of operations and comprehensive loss, statements of convertible preferred stock and changes in stockholders’ equity (deficit) for the three and six months ended June 30, 2021 and 2020 and condensed consolidated statements of cash flows for the six months ended June 30, 2021 and 2020 are unaudited. The condensed consolidated interim financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair presentation of the Company’s financial position at June 30, 2021 and the results of its operations for the three and six months ended June 30, 2021 and 2020 and its cash flows for the six months ended June 30, 2021 and 2020. The financial data and other information disclosed in these notes related to the three and six months ended June 30, 2021 and 2020 are also unaudited. The results for the three and six months ended June 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021 or for any other subsequent interim period. Cloud Computing Arrangements The Company capitalizes certain implementation costs for internal-use software incurred in a cloud computing agreement that is a service contract. Eligible costs associated with cloud computing arrangements, such as the implementation costs incurred to develop of obtain software business applications used in the normal course of business, are capitalized in accordance with ASC 350. Capitalization ceases at the point the software is substantially complete and ready for its intended use, and after all substantial testing is completed. Amortization is recorded on a straight-line basis over the expected useful life of three years of the internal-use software cost in the same line item in the statement of operations and comprehensive loss as the expense for fees for the associated cloud computing arrangement. No amortization expense associated with the Company's cloud computing arrangements has been recognized during the three and six months ended June 30, 2021. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”), or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with certain new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. Since December 31, 2020 , there have been no new accounting pronouncements adopted by the Company or issued by FASB that are applicable to the Company, except as noted below. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12 – Income Taxes (Topic 740) (“ASU 2019-12”) , which removes certain exceptions from the guidance and simplifies the accounting for income taxes in certain areas. The Company adopted ASU 2019-12 on January 1, 2021 . There was no material impact to the Company’s consolidated financial statements as a result of adopting this new standard. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. ASU 2016-13 will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which will generally result in earlier recognition of allowances for credit losses on loans and other financial instruments. ASU 2016-13 is effective for the Company’s fiscal year beginning after December 15, 2022 and subsequent interim periods. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. |
Short-Term Investments
Short-Term Investments | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Short-Term Investments | 3. Short-Term Investments The following tables summarize the amortized cost and estimated fair value of the Company’s marketable securities, which are considered to be available-for-sale investments and were included in short-term investments on the condensed consolidated balance sheets: June 30, 2021 (in thousands) Amortized Unrealized Unrealized Fair U.S. government treasury securities $ 87,887 $ 3 $ - $ 87,890 Totals $ 87,887 $ 3 $ - $ 87,890 December 31, 2020 (in thousands) Amortized Unrealized Unrealized Fair U.S. government treasury securities $ 233,687 $ - $ ( 24 ) $ 233,663 Totals $ 233,687 $ - $ ( 24 ) $ 233,663 Certain short-term debt securities with original maturities of less than 90 days are included in cash and cash equivalents on the condensed consolidated balance sheets and are not included in the tables above. At June 30, 2021 and December 31, 2020 , all investments had contractual maturities within one year. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis: June 30, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 192,431 $ - $ - $ 192,431 Totals $ 192,431 $ - $ - $ 192,431 Short-term investments: U.S. government treasury securities $ 87,890 $ - $ - $ 87,890 Totals $ 87,890 $ - $ - $ 87,890 December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 55,505 $ - $ - $ 55,505 U.S. government treasury securities 39,998 - - 39,998 Totals $ 95,503 $ - $ - $ 95,503 Short-term investments: U.S. government treasury securities $ 233,663 $ - $ - $ 233,663 Totals $ 233,663 $ - $ - $ 233,663 During the six months ended June 30, 2021 and the year ended December 31, 2020, there were no transfers between levels. The Company classifies its money market fund and U.S. government treasury securities as Level 1 assets under the fair value hierarchy, as these assets have been valued using quoted market prices in active markets without any valuation adjustment. The carrying amounts of prepaid expenses and other current assets, accounts payable, amount due to related party and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 5. Leases Short-term leases The Company leases an office space in Houston, Texas under an operating lease that expires in March 2022 . The Company also sub-leases, on a month-to-month basis, a portion of ElevateBio's office space in Cambridge, Massachusetts. During the three months ended June 30, 2021 and 2020 , total short-term lease expense recognized was $ 0.1 million (of which approximately $ 16 thousand relates to non-lease costs, such as utilities and cleaning), and $ 0.1 million (of which approximately $ 13 thousand relates to non-lease costs such as utilities and cleaning), respectively. During the six months ended June 30, 2021 and 2020 , total short-term lease expense recognized was $ 0.2 million (of which approximately $ 33 thousand relates to non-lease costs, such as utilities and cleaning), and $ 0.2 million (of which approximately $ 28 thousand relates to non-lease costs such as utilities and cleaning), respectively. In April 2021 , the Company entered into a Statement of Work (“SOW”) with a third-party supplier under the Development and Manufacturing Services Agreement (“DMS Agreement”) made effective in July 2019 . This SOW is to lease a dedicated manufacturing suite for the manufacture of AlloVir’s products at the facility. On July 30, 2021, the Company has provided a notification to reduce capacity to the third-party supplier which terminates this lease agreement on February 5, 2022 . No expense has been recognized in relation to this SOW during the three and six months ended June 30, 2021. Operating lease liabilities and their corresponding right-of-use (“ROU”) assets are recorded based on the present value of future lease payments over the expected remaining lease term. The Company has elected to account for the lease and non-lease components together for existing classes of underlying assets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. The Company uses an incremental borrowing rate based on information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate represents the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The Company estimates this rate based on prevailing market conditions, comparable company and credit analysis, the impact of collateralization, and the term of each of the Company’s lease agreements. In March 2019, the Company entered into an interim services agreement which ultimately led to a DMS Agreement with a third-party supplier in July 2019. The DMS Agreement specifies a dedicated manufacturing suite for the manufacture of AlloVir’s products at the facility. The DMS Agreement will expire upon the later of: 1) two years from the Effective Date, or July 2021 , and 2) the completion of services under all SOWs. The term may be extended by agreement of the parties for additional two-year periods upon written notice to the supplier at least 30 days prior to expiration of the then-current term. The DMS Agreement (or any individual SOW) may be terminated earlier by AlloVir at any time by providing 190 days’ notice. The Company estimates that the exercise of one of the two-year renewal options is reasonably certain to occur, and that early termination is not reasonably certain to occur, providing for a total estimated lease term of 4.25 years expiring in July 2023 . In March 2019, at the inception of this lease, the Company recorded a ROU asset and lease liability of $ 6.9 million. In September 2019, the Company executed a SOW for another dedicated manufacturing suite under the DMS Agreement with substantially the same terms as the original SOW. The SOW calls for a fixed monthly payment through July 2023, with additional two-year renewal options. The use of this manufacturing suite qualifies as a lease under ASC 842, as it includes an identified asset for exclusive use by the Company at its direction. In May 2020, the Company entered into a new Development and Manufacturing Services Agreement (“2020 DMS Agreement”) with ElevateBio BaseCamp, Inc. and signed a SOW in November 2020. The 2020 DMS Agreement and related SOW contained an embedded lease for a dedicated manufacturing suite for the manufacture of AlloVir’s products at the facility because the Company directs how and for what purpose the suite is used for and obtains substantially all of the economic benefit of the suite. In exchange for this dedicated manufacturing suite, AlloVir will pay the supplier a monthly fixed suite utilization fee, and other related fixed costs, totaling $ 3.2 million over the two-year lease term ( one year lease with a one-year renewal option), that covers costs associated with reserving capacity for AlloVir, as well as cleaning services, utilities, handling and maintenance of the manufacturing suite. The Company estimates that the exercise of the one-year renewal option is reasonably certain to occur, and the Company is reasonably certain that it will not exercise its early termination right, providing for a total estimated lease term of two years expiring in January 2023 . As part of the arrangement, there were also variable costs for materials, non-fixed batch payments, storage, knowledge and tech transfer and other common area maintenance fees that were not included in the measurement of the lease. The lease of the facility was determined to be classified as an operating lease and commenced in February 2021, the point at which the new facility area was substantially complete and available for use by the Company. Accordingly, at inception, the Company recorded a ROU asset of $ 3.1 million and a lease liability of $ 2.5 million. The Company prepaid $ 0.6 million of the suite utilization fee, which was reclassified from prepaid expense to the ROU asset upon lease commencement . Maturities of operating lease liabilities at June 30, 2021 are as follows (in thousands): 2021 (remaining 6 months) $ 2,880 2022 4,560 2023 2,175 Total lease payments 9,615 Less: interest ( 3.40 % - 5.75 %) ( 451 ) Total lease liability $ 9,164 Lease liability – current $ 4,830 Lease liability – long-term $ 4,334 Total lease costs were $ 1.3 million and $ 0.9 million for the three months ended June 30, 2021 and 2020 , respectively, and $ 2.5 million and approximately $ 1.8 million for the six months ended June 30, 2021 and 2020 , respectively. Cash paid for operating leases was $ 1.1 million and $ 0.9 million for the three months ended June 30, 2021 and 2020 , respectively, and $ 2.3 million and $ 1.8 million for the six months ended June 30, 2021 and 2020 , respectively. The Company’s total variable non-lease costs, such as materials, batch payments, storage, knowledge and tech transfer, and other common area maintenance fees, related to the operating leases was $ 2.2 million and $ 1.6 million for the three months ended June 30, 2021 and 2020 , respectively, and $ 3.8 million and $ 2.7 million for the six months ended June 30, 2021 and 2020 , respectively. The weighted average remaining lease term is 1.95 years at June 30, 2021 . The weighted average discount rate is 4.76 % at June 30, 2021 . |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 6. Accrued Expenses Accrued expenses consisted of the following: (in thousands) June 30, December 31, Employee compensation and benefits $ 2,689 $ 3,314 Professional fees 1,156 696 Research and development 5,971 3,347 Other 159 173 Total accrued expenses $ 9,975 $ 7,530 |
Sponsored Research, Collaborati
Sponsored Research, Collaboration and License Agreements | 6 Months Ended |
Jun. 30, 2021 | |
Research And Development [Abstract] | |
Sponsored Research, Collaboration and License Agreements | 7. Sponsored Research, Collaboration and License Agreements Amended and Restated Exclusive License Agreement with BCM In June 2017, the Company signed a License Agreement (the “License Agreement”) with BCM, whereby the Company acquired a royalty-bearing, worldwide, exclusive license to BCM’s rights in Subject Technology and related patent rights in the field of viral infection. In May 2020, the Company amended and restated the License Agreement (the “A&R License Agreement”), pursuant to which the Company obtained (a) an exclusive worldwide license, with the right to sublicense, under certain patent rights and other intellectual property rights of BCM, to make, have made, use, market, sell, offer to sell, lease, import and export products in a particular field, except that such license is non-exclusive within a particular subfield, and in addition with respect to certain patent rights such license is limited to two particular subfields, and (b) an exclusive, worldwide sublicense, with the right to further sublicense, under all patent rights and other intellectual property rights that are exclusively licensed to BCM by a certain third party licensor, to make, have made, use, market, sell, offer to sell, lease, import and export products in the same field. The Company’s rights are subject to the rights of the U.S. government and certain rights retained by BCM. Unless earlier terminated, the A&R License Agreement will expire on a country-by-country basis with respect to a product upon the later of (a) the expiration of the last to expire valid claim of a patent or patent application covering such product in such country or (b) 10 years after the first commercial sale of such product in such country. The Company may terminate the A&R License Agreement in its entirety at any time for convenience upon a certain number of days’ written notice. BCM may terminate the A&R License Agreement in its entirety for the Company’s uncured material default. BCM maintains control of all filing, prosecution and maintenance of its patent rights licensed by the Company, and the Company is responsible for all related costs and expenses during the term of the agreement. The Company also reimbursed BCM for costs and expenses (including reasonable legal fees and expenses) incurred prior to the effective date of the agreement with respect to the filing, prosecution and maintenance of the patent rights licensed by the Company. If BCM licenses the patent rights licensed by the Company to third parties for additional fields of use, the Company’s responsibility for patent related costs and expenses will be reduced on a pro-rata basis. Under the A&R License Agreement, the Company must use commercially reasonable efforts to develop and commercialize one or more products in certain countries. As partial consideration for the rights conveyed by BCM under the original agreement executed in June 2017, the Company paid BCM a non-refundable license fee of $ 250,000 . During the term of the A&R License Agreement, the Company is obligated to pay BCM a non-refundable annual license maintenance fee, but beginning with the fifth year after the original agreement date, license maintenance fees are fully creditable against royalty revenue due in the applicable year. The Company is required to pay certain milestone payments upon the achievement of specified clinical, regulatory, and sales milestones. In the event that the Company is able to successfully develop, launch and commercialize a product under the A&R License Agreement, total milestone payments could exceed $ 40.0 million. BCM is also eligible to receive tiered royalties at percentage rates ranging from less than 1 % to the low single-digits, on net sales of any products that are commercialized by the Company or its sublicensees that incorporate, utilize or are made with the use of, the intellectual property licensed by the Company. To the extent the Company sublicenses its license rights under the A&R License Agreement, BCM would be eligible to receive tiered sublicense income at percentage rates in the mid-single to low double-digits. In November 2020, the Company also entered into the First Amendment (the “License Amendment”) to the A&R License Agreement. Under the License Amendment, the Company assumed responsibility from BCM for the filing, prosecution and maintenance of the patent rights licensed by the Company from BCM under the A&R License Agreement that are in common with the License Agreement. Further, BCM also transferred to the Company the right of enforcement against third parties for any suspected infringement of any claims in such patent rights or misuse, misappropriation, theft or breach of confidence of other proprietary rights. Exclusive License Agreement with BCM In November 2020, the Company signed a second License Agreement (the “Second License Agreement) with BCM, whereby the Company acquired a royalty-bearing, worldwide, exclusive license to BCM’s rights in Subject Technology and related patent rights outside the field of viral infection (all fields other than those covered by the A&R License Agreement). Unless earlier terminated, the Second License Agreement will expire on a country-by-country basis with respect to a product upon the later of (a) the expiration of the last to expire valid claim of a patent or patent application covering such product in such country or (b) 10 years after the first commercial sale of such product in such country, provided that the Second License Agreement shall not expire later than March 25, 2040. The Company may terminate the Second License Agreement in its entirety at any time for convenience upon a certain number of days’ written notice. BCM may terminate the Second License Agreement in its entirety for the Company’s uncured material default. Under the Second License Agreement, BCM transferred to the Company control of all filing, prosecution and maintenance of the patent rights licensed by the Company, and the Company is responsible for all related costs and expenses during the term of the Second License Agreement. BCM also transferred to the Company the right of enforcement against third parties for any suspected infringement of any claims in the patent rights or misuse, misappropriation, theft or breach of confidence of other proprietary rights. The Company also reimbursed BCM for costs and expenses (including reasonable legal fees and expenses) incurred prior to the effective date of the Second License Agreement with respect to the filing, prosecution and maintenance of the patent rights licensed by the Company, to the extent not already paid by the Company under the A&R License Agreement. Under the Second License Agreement, the Company must use commercially reasonable efforts to develop and commercialize one or more products in certain countries. As partial consideration for the rights conveyed by BCM under the Second License Agreement, the Company paid BCM a non-refundable license fee of $ 125,000 . During the term of the Second License Agreement, the Company is obligated to pay BCM a non-refundable annual license maintenance fee of (a) $ 20,000 for the first through fourth anniversary of the effective date of the Second License Agreement, and (b) $ 40,000 for the fifth anniversary of the effective date and continuing thereafter, but beginning with the fifth year, license maintenance fees are fully creditable against royalty revenue due in the applicable year. The Company is required to pay certain milestone payments upon the achievement of specified clinical, regulatory, and sales milestones. In the event that the Company is able to successfully develop, launch and commercialize multiple products under the Second License Agreement, total milestone payments could exceed $ 30.0 million. BCM is also eligible to receive tiered royalties at percentage rates ranging from less than 1 % to the low single-digits, on net sales of any products that are commercialized by the Company or its sublicensees that incorporate, utilize or are made with the use of, the intellectual property licensed by the Company. To the extent the Company sublicenses its license rights under the Second License Agreement, BCM would be eligible to receive tiered sublicense income at percentage rates in the mid-single to low double-digits. Sponsored Research Agreement with BCM In June 2019, the Company entered into a sponsored research agreement (“SRA-2”) with BCM, under which the Company agreed to pay BCM for performing certain research activities related to virus specific T-cell manufacturing for a one-year period, renewable for an additional one-year term upon written consent of both parties. SRA-2 requires the Company to make payments to BCM totaling $ 1.0 million, payable in four equal installments. SRA-2 was amended in March 2020 to include the discovery and development of allogeneic, off-the-shelf, virus specific T-cell therapies to combat SARS-CoV-2, the virus that causes COVID-19. In June 2020, a second amendment was entered into resulting in a no cost extension through November 30, 2020, upon which the agreement terminated. Collaboration Agreement with BCM In November 2020, the Company also entered into a Research Collaboration Agreement (the “Research Agreement”) with BCM, under which the Company agreed to pay BCM for performing certain research activities under the direction of Dr. Ann Leen commencing on January 1, 2021 and continuing for a three-year period thereafter. The Research Agreement requires the Company to make payments to BCM totaling approximately $ 2.0 million per year, for a total of approximately $ 6.0 million over the term of the Research Agreement. Collectively under the agreements above and for services provided by BCM the Company paid $ 1.2 million and $ 0.5 million during the three months ended June 30, 2021 and 2020 , respectively, and $ 2.1 million and $ 0.8 million during the six months ended June 30, 2021 and 2020 , respectively. These costs are classified in research and development expense in the condensed consolidated statements of operations and comprehensive loss. The Company has also triggered three milestone events during the six months ended June 30, 2021 and has accounted for $ 0.2 million in accrued milestone expenses which are classified under accrued expenses in the condensed consolidated balance sheet. CPRIT Grant In August 2017, the Company was awarded a $ 9.0 million grant (the “CPRIT Grant”) from the Cancer Research and Prevention Institute of Texas (“CPRIT”) to perform a phase IIB clinical trial to establish the safety and effectiveness of posoleucel, in adults and children with a common, very severe virus infection (BK Virus) after stem cell transplant. The grant period was three years beginning September 1, 2017 through August 31, 2020. This grant had a matching requirement where the Company was obligated to match 50 % of the grant funds used on the project. In addition, the grant included other compliance requirements including the obligation for the Company to operate with a principal place of business in Texas. There were no costs incurred to obtain or fulfill the contract. In November 2019, the Company provided CPRIT with written notice of its intent to terminate the grant. In December 2019, the Company returned $ 2.6 million of grant funds received, including interest relating to these funds in the amount of $ 0.1 million, and decreased its deferred revenue balance to zero . The Company received acknowledgment of the termination from CPRIT in January 2020. The CPRIT Grant also required that the Company grant CPRIT a non-commercial license to technology developed under the grant and pay CPRIT a share of revenue on sales of commercial products developed using CPRIT funds equal to low single digits of revenue until such time as CPRIT has been paid an aggregate amount equal to 400 % of the grant award proceeds. No royalty payments were made under this license agreement during the six months ended June 30, 2021 and 2020 , respectively. |
Funding Arrangements
Funding Arrangements | 6 Months Ended |
Jun. 30, 2021 | |
Research And Development [Abstract] | |
Funding Arrangements | 8. Funding Arrangements SBIR Grant In June 2017, the Company was awarded a Small Business Innovation Research (“SBIR”) grant by the National Institute of Health (“NIH”) in the amount of $ 3.0 million. This grant was effective from September 15, 2017 to June 30, 2020 and in April 2020, the Company received an extension through June 30, 2021. The grant was funded on an ongoing basis based on periodic reports of qualifying expenditures reported by the Company to NIH. Under this grant, the Company received proceeds of $ 0 and $ 0.3 million during the three and six months ended June 30, 2021 and 2020 , respectively. The Company recognized income of $ 0 and approximately $ 0.4 million on expenses incurred during the three and six months ended June 30, 2021 and 2020, respectively. At December 31, 2020, the Company had received the full amount awarded under the SBIR grant. The grant was not extended past June 30, 2021 and the Company has notified the NIH of grant completion in July 2021. The SBIR grant does not fall within the scope of ASC 606 as NIH does not meet the definition of a customer, and the grant from NIH was given for the benefit of public health rather than for monetary compensation. Accordingly, funding received under this grant is recognized in “Other income (loss), net” in the condensed consolidated statements of operations and comprehensive loss. |
Stockholder's Equity
Stockholder's Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Stockholder's Equity | 9. Stockholder’s Equity On August 3, 2020, in connection with the closing of the Company’s IPO, the Company filed its amended and restated certificate of incorporation, which authorizes the Company to issue up to 10,000,000 shares of preferred stock, $ 0.0001 par value per share. There were no shares of preferred stock issued or outstanding at June 30, 2021 and December 31, 2020. At June 30, 2021 and December 31, 2020 , the Company’s amended and restated certificate of incorporation authorized the Company to issue 150,000,000 shares of common stock at a par value of $ 0.0001 per share. In conjunction with the Company's IPO closing on August 3, 2020, the Company issued and sold 18,687,500 shares of its common stock, including 2,437,500 shares pursuant to the full exercise of the underwriters' option to purchase additional shares, at a public offering price of $ 17.00 per share, for aggregate net proceeds of $ 292.0 million after deducting underwriting discounts and commissions and offering costs. In connection with the Company’s IPO, all outstanding shares of preferred stock converted into 39,859,139 shares of common stock. The Company has reserved shares of common stock for issuance as follows: June 30, December 31, Unvested restricted stock 3,502,002 3,410,979 Options to purchase common stock 6,097,072 3,972,909 Stock available for grant under the 2020 Stock Option and Grant Plan 4,065,178 3,895,961 Total 13,664,252 11,279,849 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation 2018 Equity Incentive Plan The Company’s 2018 Plan provided for the Company to issue restricted stock, restricted stock units, incentive stock options, and non-statutory stock options and other stock-based awards to employees, officers, members of the Board, consultants and advisors of the Company. The 2018 Plan was most recently amended in July 2020. The awards granted under this plan generally vest over a four-year period and have a 10-year contractual term. At June 30, 2021 , the Company had granted 6,715,415 shares of common stock under the 2018 Plan, including an aggregate of 98,643 shares of common stock issuable upon the exercise of outstanding options under the 2018 Plan. Of the awards granted, 10,152 have been forfeited or cancelled during the three and six months ended June 30, 2021 . No shares remained available for future issuance under the 2018 Plan. Any options or awards outstanding under the 2018 Plan remain outstanding and effective. 2020 Stock Option and Grant Plan On July 2, 2020, the Company’s Board of Directors adopted and in July 2020 the stockholders approved the 2020 Stock Option and Grant Plan (the “2020 Plan”) which became effective on July 28, 2020, the date immediately prior to the date on which the registration statement related to the IPO was declared effective, and as a result no further awards will be made under the 2018 Plan thereafter. Initially, the aggregate number of shares of our common stock that may be issued pursuant to stock awards under the 2020 Plan was 8,008,734 shares. The number of shares of our common stock reserved for issuance under the 2020 Plan shall be cumulatively increased on January 1, 2021 and each January 1 thereafter by 5 % of the total number of shares of our common stock outstanding on December 31 of the preceding calendar year or a lesser number of shares determined by our board of directors. Unless our board of directors elects not to increase the number of shares available for future grant each year, our stockholders may experience additional dilution, which could cause our stock price to fall. Accordingly, on January 1, 2021, 3,255,343 shares were added to the number of available shares under the 2020 Plan. The awards granted under this plan generally vest over a four-year period and have a 10-year contractual term. At June 30, 2021 , there were an aggregate of 5,998,429 shares of common stock issuable upon the exercise of outstanding options under the 2020 Plan and 1,240,495 shares of restricted common stock granted under the 2020 Plan. Additionally, there were an aggregate of 4,065,178 shares reserved for future issuance under the 2020 Plan. Restricted Common Stock The following table summarizes restricted common stock activity for the six months ended June 30, 2021: Shares Weighted Unvested at January 1, 2021 3,410,979 $ 3.55 Granted 989,488 35.62 Forfeited ( 37,677 ) 22.46 Vested ( 860,788 ) 1.83 Unvested at June 30, 2021 3,502,002 $ 12.83 At June 30, 2021 , there was $ 39.6 million of unrecognized stock-based compensation cost related to the restricted stock, which is expected to be recognized over a weighted average period of 3.36 years. Stock Options The following table summarizes stock option activity (in thousands, except share and per share data): Shares Weighted Weighted Aggregate Options outstanding at January 1, 2021 3,972,909 $ 17.84 9.6 $ 81,822 Granted 2,158,388 33.73 — — Exercised — — — — Forfeited ( 34,225 ) 29.43 — 53 Options outstanding at June 30, 2021 6,097,072 $ 23.40 9.3 $ 11,256 Options vested and exercisable at June 30, 2021 184,361 $ 14.37 9.0 $ 990 The aggregate intrinsic value of options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the common stock as of the end of the period. The weighted-average grant date fair value of the Company’s stock options granted during the six months ended June 30, 2021 was $ 25.79 . At June 30, 2021 , there was $ 90.4 million of unrecognized stock-based compensation expense related to unvested stock options, which is being recognized over a period of 3.29 years. The fair value was estimated on the date of grant using the Black Scholes option-pricing model, with the following weighted-average assumptions: Three Months Ended Six Months Ended Expected term (in years) 6.00 6.05 Expected volatility 94.73 % 95.06 % Risk-free interest rate 1.07 % 0.83 % Expected dividend yield — — Fair value of common stock $ 23.28 $ 33.73 Stock-Based Compensation Expense Stock-based compensation expense was as follows: Three Months Ended Six Months Ended (in thousands) 2021 2020 2021 2020 Research and development $ 3,953 $ 94 $ 7,264 $ 308 General and administrative 5,773 398 10,565 830 Total stock-based compensation expense $ 9,726 $ 492 $ 17,829 $ 1,138 2020 Employee Stock Purchase Plan In July 2020, the 2020 Employee Stock Purchase Plan (the “2020 ESPP”) was also adopted by the Board of Directors and approved by the stockholders. The purpose of the 2020 ESPP is to provide eligible employees of the Company and other designated companies, with opportunities to purchase shares of the Company’s common stock, par value $ 0.0001 per share. 611,354 shares of common stock in the aggregate have been approved and reserved for this purpose, plus on January 1, 2021 and each January 1 thereafter until January 1, 2030, the number of shares of common stock reserved and available for issuance under the Plan shall be cumulatively increased by the least of (i) 1,222,707 shares of common stock, (ii) 1 % of the number of shares of common stock issued and outstanding on the immediately preceding December 31, and (iii) such number of shares of common stock as determined by the Administrator. The Board of Directors elected not to increase the number of available shares as of January 1, 2021. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The Company’s income tax provision is computed based on the federal statutory rate and the average state statutory rates, net of the related federal benefit. For the three and six months ended June 30, 2021 and 202 0 , the Company did no t record a current or deferred income tax expense or benefit due to current and historical losses incurred by the Company. The Company’s losses before income taxes consist solely of losses from domestic operations. The Company’s estimate of the realizability of the deferred tax asset is dependent on estimates of projected future levels of taxable income. In analyzing future taxable income levels, the Company considered all evidence currently available, both positive and negative. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 12. Net Loss per Share The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company: Three Months Ended Six Months Ended (in thousands, except share and per share data) 2021 2020 2021 2020 Numerator: Net loss – basic and diluted $ ( 37,588 ) $ ( 11,632 ) $ ( 68,511 ) $ ( 20,971 ) Denominator: Weighted-average common shares outstanding – basic and diluted 62,344,718 2,625,648 62,399,034 2,420,797 Net loss per share – basic and diluted $ ( 0.60 ) $ ( 4.43 ) $ ( 1.10 ) $ ( 8.66 ) Based on the amounts outstanding at June 30, 2021 and 2020, the Company excluded the following potential shares of common stock from the computation of diluted net loss per share attributable to common stockholders for the three and six months ended June 30, 2021 and 2020, because including them would have had an anti-dilutive effect. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. June 30, 2021 2020 Series A2 Preferred Stock — 20,000,000 Series A3 Preferred Stock — 22,453,987 Series A4 Preferred Stock — 2,066,666 Series B Preferred Stock — 14,877,697 Options to purchase common stock 6,097,072 98,643 Unvested restricted stock 3,502,002 3,758,335 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions The Company entered into an agreement with ElevateBio that provides for ongoing services to the Company in areas such as accounting operations, public relations, information technology, human resources and administration management, finance and risk management, marketing services, facilities, procurement and travel and corporate development and strategy (the “Shared Services Agreement”). The Company was billed quarterly for such services at cost, with mark-up for profit on specific services, but including reasonable allocations of employee benefits, facilities and other direct or fairly allocated indirect costs that relate to the associates providing the services. The Company also subleases office space, which includes payment for common area charges. The Company also has a SOW to receive manufacturing and project management consulting services from ElevateBio. The Company incurred $ 1.4 million and $ 1.4 million during the three months ended June 30, 2021 and 2020 , respectively, and $ 3.6 million and $ 2.5 million of expenses during the six months ended June 30, 2021 and 2020 , respectively, related to services provided to the Company by ElevateBio and affiliates. The Company owed ElevateBio $ 1.7 million and $ 0.6 million at June 30, 2021 and December 31, 2020, respectively, which is recorded in “Amount due to related party” on the condensed consolidated balance sheets. Members of the Company’s management received a total of $ 0.1 million and $ 0.1 million in consulting fees during the three months ended June 30, 2021 and 2020 and $ 0.3 million and $ 0.4 million during the six months ended June 30, 2021 and 2020 , respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information The accompanying condensed consolidated balance sheet at June 30, 2021, and the condensed consolidated statements of operations and comprehensive loss, statements of convertible preferred stock and changes in stockholders’ equity (deficit) for the three and six months ended June 30, 2021 and 2020 and condensed consolidated statements of cash flows for the six months ended June 30, 2021 and 2020 are unaudited. The condensed consolidated interim financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for the fair presentation of the Company’s financial position at June 30, 2021 and the results of its operations for the three and six months ended June 30, 2021 and 2020 and its cash flows for the six months ended June 30, 2021 and 2020. The financial data and other information disclosed in these notes related to the three and six months ended June 30, 2021 and 2020 are also unaudited. The results for the three and six months ended June 30, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021 or for any other subsequent interim period. |
Cloud Computing Arrangements | Cloud Computing Arrangements The Company capitalizes certain implementation costs for internal-use software incurred in a cloud computing agreement that is a service contract. Eligible costs associated with cloud computing arrangements, such as the implementation costs incurred to develop of obtain software business applications used in the normal course of business, are capitalized in accordance with ASC 350. Capitalization ceases at the point the software is substantially complete and ready for its intended use, and after all substantial testing is completed. Amortization is recorded on a straight-line basis over the expected useful life of three years of the internal-use software cost in the same line item in the statement of operations and comprehensive loss as the expense for fees for the associated cloud computing arrangement. No amortization expense associated with the Company's cloud computing arrangements has been recognized during the three and six months ended June 30, 2021. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”), or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with certain new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. Since December 31, 2020 , there have been no new accounting pronouncements adopted by the Company or issued by FASB that are applicable to the Company, except as noted below. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12 – Income Taxes (Topic 740) (“ASU 2019-12”) , which removes certain exceptions from the guidance and simplifies the accounting for income taxes in certain areas. The Company adopted ASU 2019-12 on January 1, 2021 . There was no material impact to the Company’s consolidated financial statements as a result of adopting this new standard. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. ASU 2016-13 will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which will generally result in earlier recognition of allowances for credit losses on loans and other financial instruments. ASU 2016-13 is effective for the Company’s fiscal year beginning after December 15, 2022 and subsequent interim periods. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Estimated Fair Value of Marketable Securities | The following tables summarize the amortized cost and estimated fair value of the Company’s marketable securities, which are considered to be available-for-sale investments and were included in short-term investments on the condensed consolidated balance sheets: June 30, 2021 (in thousands) Amortized Unrealized Unrealized Fair U.S. government treasury securities $ 87,887 $ 3 $ - $ 87,890 Totals $ 87,887 $ 3 $ - $ 87,890 December 31, 2020 (in thousands) Amortized Unrealized Unrealized Fair U.S. government treasury securities $ 233,687 $ - $ ( 24 ) $ 233,663 Totals $ 233,687 $ - $ ( 24 ) $ 233,663 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis: June 30, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 192,431 $ - $ - $ 192,431 Totals $ 192,431 $ - $ - $ 192,431 Short-term investments: U.S. government treasury securities $ 87,890 $ - $ - $ 87,890 Totals $ 87,890 $ - $ - $ 87,890 December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 55,505 $ - $ - $ 55,505 U.S. government treasury securities 39,998 - - 39,998 Totals $ 95,503 $ - $ - $ 95,503 Short-term investments: U.S. government treasury securities $ 233,663 $ - $ - $ 233,663 Totals $ 233,663 $ - $ - $ 233,663 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Summary of Maturities Operating Leases Liabilities | Maturities of operating lease liabilities at June 30, 2021 are as follows (in thousands): 2021 (remaining 6 months) $ 2,880 2022 4,560 2023 2,175 Total lease payments 9,615 Less: interest ( 3.40 % - 5.75 %) ( 451 ) Total lease liability $ 9,164 Lease liability – current $ 4,830 Lease liability – long-term $ 4,334 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: (in thousands) June 30, December 31, Employee compensation and benefits $ 2,689 $ 3,314 Professional fees 1,156 696 Research and development 5,971 3,347 Other 159 173 Total accrued expenses $ 9,975 $ 7,530 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Reserved Shares of Common Stock for Issuance | The Company has reserved shares of common stock for issuance as follows: June 30, December 31, Unvested restricted stock 3,502,002 3,410,979 Options to purchase common stock 6,097,072 3,972,909 Stock available for grant under the 2020 Stock Option and Grant Plan 4,065,178 3,895,961 Total 13,664,252 11,279,849 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Common Stock Activity | The following table summarizes restricted common stock activity for the six months ended June 30, 2021: Shares Weighted Unvested at January 1, 2021 3,410,979 $ 3.55 Granted 989,488 35.62 Forfeited ( 37,677 ) 22.46 Vested ( 860,788 ) 1.83 Unvested at June 30, 2021 3,502,002 $ 12.83 |
Summary of Stock Option Activity | The following table summarizes stock option activity (in thousands, except share and per share data): Shares Weighted Weighted Aggregate Options outstanding at January 1, 2021 3,972,909 $ 17.84 9.6 $ 81,822 Granted 2,158,388 33.73 — — Exercised — — — — Forfeited ( 34,225 ) 29.43 — 53 Options outstanding at June 30, 2021 6,097,072 $ 23.40 9.3 $ 11,256 Options vested and exercisable at June 30, 2021 184,361 $ 14.37 9.0 $ 990 |
Schedule of Estimated Fair Value Assumptions Using Black Scholes Option-Pricing Model | The fair value was estimated on the date of grant using the Black Scholes option-pricing model, with the following weighted-average assumptions: Three Months Ended Six Months Ended Expected term (in years) 6.00 6.05 Expected volatility 94.73 % 95.06 % Risk-free interest rate 1.07 % 0.83 % Expected dividend yield — — Fair value of common stock $ 23.28 $ 33.73 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense was as follows: Three Months Ended Six Months Ended (in thousands) 2021 2020 2021 2020 Research and development $ 3,953 $ 94 $ 7,264 $ 308 General and administrative 5,773 398 10,565 830 Total stock-based compensation expense $ 9,726 $ 492 $ 17,829 $ 1,138 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Net Loss Per Share Attributable To Common Stockholders | The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company: Three Months Ended Six Months Ended (in thousands, except share and per share data) 2021 2020 2021 2020 Numerator: Net loss – basic and diluted $ ( 37,588 ) $ ( 11,632 ) $ ( 68,511 ) $ ( 20,971 ) Denominator: Weighted-average common shares outstanding – basic and diluted 62,344,718 2,625,648 62,399,034 2,420,797 Net loss per share – basic and diluted $ ( 0.60 ) $ ( 4.43 ) $ ( 1.10 ) $ ( 8.66 ) |
Potential Dilutive Securities Excluded From Computation Of Diluted Net Loss Per Share Attributable To Common Stockholders | Based on the amounts outstanding at June 30, 2021 and 2020, the Company excluded the following potential shares of common stock from the computation of diluted net loss per share attributable to common stockholders for the three and six months ended June 30, 2021 and 2020, because including them would have had an anti-dilutive effect. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. June 30, 2021 2020 Series A2 Preferred Stock — 20,000,000 Series A3 Preferred Stock — 22,453,987 Series A4 Preferred Stock — 2,066,666 Series B Preferred Stock — 14,877,697 Options to purchase common stock 6,097,072 98,643 Unvested restricted stock 3,502,002 3,758,335 |
Nature of the Business - Additi
Nature of the Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 03, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Aug. 04, 2020 |
Net proceeds from issuance initial public offering | $ 292,000 | ||||||||
Net losses attributable to common stockholders | $ (37,588) | $ (30,923) | $ (11,632) | $ (9,339) | $ (68,511) | $ (20,971) | |||
Accumulated deficit | (193,614) | (193,614) | $ (125,103) | ||||||
Cash and cash equivalents | 225,447 | 225,447 | 122,661 | ||||||
Short-term investments | $ 87,890 | $ 87,890 | $ 233,663 | ||||||
Convertible Preferred Stock | |||||||||
Preferred stock, shares outstanding | 0 | ||||||||
IPO | |||||||||
Common stock issued and sold | 18,687,500 | ||||||||
Public offering price per share | $ 17 | ||||||||
Gross proceeds from issuance of common stock | $ 317,700 | ||||||||
Stock issued upon conversion of preferred stock | 39,859,139 | ||||||||
IPO | Common Stock | |||||||||
Stock issued upon conversion of preferred stock | 39,859,139 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||
Amortization expense for cloud computing arrangements | $ 0 | $ 0 |
ASU 2019-02 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Change In Accounting Principle Accounting Standards Update Adopted | true | true |
Change In Accounting Principle Accounting Standards Update Adoption Date | Jan. 1, 2021 | Jan. 1, 2021 |
Change In Accounting Principle Accounting Standards Update Immaterial Effect | true | true |
Short-Term Investments - Summar
Short-Term Investments - Summary of Amortized Cost and Estimated Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 87,887 | $ 233,687 |
Unrealized Gains | 3 | |
Unrealized Losses | (24) | |
Fair Value | 87,890 | 233,663 |
U.S. Government Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 87,887 | 233,687 |
Unrealized Gains | 3 | |
Unrealized Losses | (24) | |
Fair Value | $ 87,890 | $ 233,663 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value On Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Cash equivalents: | ||
Cash equivalents | $ 192,431 | $ 95,503 |
Short-term investments: | ||
Short-term investments | 87,890 | 233,663 |
Money Market Fund | ||
Cash equivalents: | ||
Cash equivalents | 192,431 | 55,505 |
U.S. Government Treasury Securities | ||
Cash equivalents: | ||
Cash equivalents | 39,998 | |
U.S. Government Treasury Securities | ||
Short-term investments: | ||
Short-term investments | 87,890 | 233,663 |
Level 1 | ||
Cash equivalents: | ||
Cash equivalents | 192,431 | 95,503 |
Short-term investments: | ||
Short-term investments | 87,890 | 233,663 |
Level 1 | Money Market Fund | ||
Cash equivalents: | ||
Cash equivalents | 192,431 | 55,505 |
Level 1 | U.S. Government Treasury Securities | ||
Cash equivalents: | ||
Cash equivalents | 39,998 | |
Level 1 | U.S. Government Treasury Securities | ||
Short-term investments: | ||
Short-term investments | $ 87,890 | $ 233,663 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | Jul. 30, 2021 | Apr. 30, 2021 | Feb. 28, 2021 | Jul. 31, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2019 |
Leases [Line Items] | ||||||||||
Lease expiration month and year | 2022-03 | |||||||||
Short-term lease expenses | $ 100,000 | $ 100,000 | $ 200,000 | $ 200,000 | ||||||
Non-lease costs | 16,000 | 13,000 | 33,000 | 28,000 | ||||||
ROU asset | 9,559,000 | 9,559,000 | $ 8,692,000 | |||||||
Lease liability | 9,164,000 | 9,164,000 | ||||||||
Operating lease costs | 1,300,000 | 900,000 | 2,500,000 | 1,800,000 | ||||||
Cash paid for operating lease | 1,100,000 | 900,000 | 2,300,000 | 1,800,000 | ||||||
Variable non-lease costs | $ 2,200,000 | $ 1,600,000 | $ 3,800,000 | $ 2,700,000 | ||||||
Operating lease, weighted average remaining lease term | 1 year 11 months 12 days | 1 year 11 months 12 days | ||||||||
Operating lease, weighted average discount rate, percent | 4.76% | 4.76% | ||||||||
DMS Agreement | ||||||||||
Leases [Line Items] | ||||||||||
Lease expiration month and year | 2021-07 | |||||||||
Lease expense recognized | $ 0 | $ 0 | ||||||||
Lease effective date | 2021-04 | 2019-07 | ||||||||
Term of agreement | 2 years | |||||||||
Expiration date | Feb. 5, 2022 | |||||||||
Operating lease, existence of option to extend | true | |||||||||
Lease, option to extend | The term may be extended by agreement of the parties for additional two-year periods upon written notice to the supplier at least 30 days prior to expiration of the then-current term. | |||||||||
Operating lease, existence of option to terminate | true | |||||||||
Lease, option to terminate | The DMS Agreement (or any individual SOW) may be terminated earlier by AlloVir at any time by providing 190 days’ notice. | |||||||||
Lease renewal term | 2 years | 2 years | ||||||||
Estimated lease term | 4 years 3 months | |||||||||
Estimated lease expiring month and year | 2023-07 | |||||||||
ROU asset | $ 6,900,000 | |||||||||
Lease liability | $ 6,900,000 | |||||||||
2020 DMS Agreement | ||||||||||
Leases [Line Items] | ||||||||||
Term of agreement | 1 year | |||||||||
Lease renewal term | 1 year | |||||||||
Estimated lease term | 2 years | |||||||||
Estimated lease expiring month and year | 2023-01 | |||||||||
ROU asset | $ 3,100,000 | |||||||||
Lease liability | 2,500,000 | |||||||||
Utilization fee | $ 3,200,000 | |||||||||
Lessee operating lease, lease term including renewal option | 2 years | |||||||||
Prepaid utilization fee | $ 600,000 |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 (remaining 6 months) | $ 2,880 | |
2022 | 4,560 | |
2023 | 2,175 | |
Total lease payments | 9,615 | |
Less: interest (3.40% - 5.75%) | (451) | |
Total lease liability | 9,164 | |
Operating lease liability, current | 4,830 | $ 3,229 |
Operating lease liability, long term | $ 4,334 | $ 5,463 |
Leases - Summary of Operating_2
Leases - Summary of Operating Lease Liabilities (Details) (Parenthetical) | Jun. 30, 2021 |
Lessor Lease Description [Line Items] | |
Operating lease interest percentage | 4.76% |
Minimum | |
Lessor Lease Description [Line Items] | |
Operating lease interest percentage | 3.40% |
Maximum | |
Lessor Lease Description [Line Items] | |
Operating lease interest percentage | 5.75% |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Employee compensation and benefits | $ 2,689 | $ 3,314 |
Professional fees | 1,156 | 696 |
Research and development | 5,971 | 3,347 |
Other | 159 | 173 |
Total accrued expenses | $ 9,975 | $ 7,530 |
Sponsored Research, Collabora_2
Sponsored Research, Collaboration and License Agreements - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Nov. 30, 2020USD ($) | May 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($)Installment | Aug. 31, 2017USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)Milestone | Jun. 30, 2020USD ($) | |
Sponsored Research, Collaboration and License Agreements [Line Items] | |||||||||
Research and development expense | $ 25,677,000 | $ 8,885,000 | $ 46,070,000 | $ 15,724,000 | |||||
CPRIT | Non-commercial License Agreement | |||||||||
Sponsored Research, Collaboration and License Agreements [Line Items] | |||||||||
Maximum paid percentage of grant award proceeds until which revenue share is payable | 400.00% | ||||||||
Royalty payments | 0 | 0 | |||||||
CPRIT | Grant | |||||||||
Sponsored Research, Collaboration and License Agreements [Line Items] | |||||||||
Revenue from grant | $ 9,000,000 | ||||||||
Period of grant | 3 years | ||||||||
Percentage of obligation of grant funds used | 50.00% | ||||||||
Cost incurred to obtain or fulfill the contract | $ 0 | ||||||||
Grant funds received returned amount | $ 2,600,000 | ||||||||
Interest relating to grant funds returned | 100,000 | ||||||||
Deferred revenue balance | $ 0 | ||||||||
A&R License Agreement | BCM | |||||||||
Sponsored Research, Collaboration and License Agreements [Line Items] | |||||||||
Non-refundable license fee payments | $ 250,000 | ||||||||
Milestone payments | $ 40,000,000 | ||||||||
Minimum percentage of eligible to receive tiered royalties | 1.00% | 1.00% | |||||||
Second License Agreement | BCM | |||||||||
Sponsored Research, Collaboration and License Agreements [Line Items] | |||||||||
Non-refundable license fee payments | $ 125,000 | ||||||||
Milestone payments | $ 30,000,000 | ||||||||
Minimum percentage of eligible to receive tiered royalties | 1.00% | 1.00% | |||||||
Non-refundable license fee payments, first year through fourth anniversary of effective date | $ 20,000 | ||||||||
Non-refundable license fee payments fifth anniversary of effective date and continuing thereafter | 40,000 | ||||||||
SRA-2 | BCM | |||||||||
Sponsored Research, Collaboration and License Agreements [Line Items] | |||||||||
Agreement for research activities, term | 1 year | ||||||||
Agreement for research activities, additional term with written consent | 1 year | ||||||||
Research activities performing fees | $ 1,000,000 | ||||||||
Number of installment for research activities payments | Installment | 4 | ||||||||
Research Agreement | BCM | |||||||||
Sponsored Research, Collaboration and License Agreements [Line Items] | |||||||||
Agreement for research activities, term | 3 years | ||||||||
Research activities performing fees | $ 2,000,000 | ||||||||
Total research activities performing fees, over the term | $ 6,000,000 | ||||||||
Collective Agreements | BCM | |||||||||
Sponsored Research, Collaboration and License Agreements [Line Items] | |||||||||
Research and development expense | $ 1,200,000 | $ 500,000 | 2,100,000 | $ 800,000 | |||||
Collective Agreements | BCM | Accrued Expenses | |||||||||
Sponsored Research, Collaboration and License Agreements [Line Items] | |||||||||
Accrued milestone expenses | $ 200,000 | $ 200,000 | |||||||
Number of milestone events | Milestone | 3 |
Funding Arrangements - Addition
Funding Arrangements - Additional Information (Details) - Grant - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Research grant, description and terms | In June 2017, the Company was awarded a Small Business Innovation Research (“SBIR”) grant by the National Institute of Health (“NIH”) in the amount of $3.0 million. This grant was effective from September 15, 2017 to June 30, 2020 and in April 2020, the Company received an extension through June 30, 2021. | ||||
Research revenue grant awarded | $ 3 | ||||
Grant revenue received | $ 0 | $ 0.3 | $ 0 | $ 0.3 | |
Research related income recognized | $ 0 | $ 0.4 | $ 0 | $ 0.4 |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 03, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | |||
Preferred stock, par or stated value per share | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, shares authorized | 150,000,000 | 150,000,000 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | |
IPO | |||
Class Of Stock [Line Items] | |||
Preferred stock, par or stated value per share | $ 0.0001 | ||
Preferred stock, shares authorized | 10,000,000 | ||
Common stock issued and sold | 18,687,500 | ||
Public offering price per share | $ 17 | ||
Proceeds from issuance of common stock | $ 292 | ||
Stock issued upon conversion of preferred stock | 39,859,139 | ||
Over-Allotment Option | |||
Class Of Stock [Line Items] | |||
Common stock issued and sold | 2,437,500 |
Stockholders Equity - Schedule
Stockholders Equity - Schedule of Reserved Shares of Common Stock for Issuance (Details) - shares | Jun. 30, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||
Reserved shares of common stock for issuance | 13,664,252 | 11,279,849 |
Unvested Restricted Stock | ||
Class Of Stock [Line Items] | ||
Reserved shares of common stock for issuance | 3,502,002 | 3,410,979 |
Option To Purchase Common Stock | ||
Class Of Stock [Line Items] | ||
Reserved shares of common stock for issuance | 6,097,072 | 3,972,909 |
Stock Available For Grant | 2020 Stock Option and Grant Plan | ||
Class Of Stock [Line Items] | ||
Reserved shares of common stock for issuance | 4,065,178 | 3,895,961 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2021 | Jul. 02, 2020 | Jul. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Reserved shares of common stock for issuance | 13,664,252 | 13,664,252 | 11,279,849 | |||
Weighted average grant-date fair value of stock options granted | $ 25.79 | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Restricted Common Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards forfeited or cancelled | 37,677 | |||||
Number of shares granted | 989,488 | |||||
Unrecognized stock-based compensation cost | $ 39.6 | $ 39.6 | ||||
Weighted average period of cost expected to be recognized | 3 years 4 months 9 days | |||||
Stock Options | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted average period of cost expected to be recognized | 3 years 3 months 14 days | |||||
Unrecognized stock-based compensation expenses | $ 90.4 | $ 90.4 | ||||
2018 Equity Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards vesting period | 4 years | |||||
Awards contractual term | 10 years | |||||
Common stock shares granted | 6,715,415 | 6,715,415 | ||||
Number of shares of common stock issuable upon exercise of outstanding options | 98,643 | 98,643 | ||||
Awards forfeited or cancelled | 10,152 | 10,152 | ||||
Reserved shares of common stock for issuance | 0 | 0 | ||||
2020 Stock Option and Grant Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Awards vesting period | 4 years | |||||
Awards contractual term | 10 years | |||||
Common stock authorized for issuance | 8,008,734 | |||||
Cumulative increase in number shares reserved for issuance, percentage | 5.00% | |||||
Shares added to number of available shares under plan | 3,255,343 | |||||
2020 Stock Option and Grant Plan | Restricted Common Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares granted | 1,240,495 | |||||
2020 Stock Option and Grant Plan | Stock Available For Grant | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Reserved shares of common stock for issuance | 4,065,178 | 4,065,178 | 3,895,961 | |||
2020 ESPP | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Reserved shares of common stock for issuance | 611,354 | |||||
Cumulative increase in number shares reserved for issuance, percentage | 1.00% | |||||
Common stock, par value | $ 0.0001 | |||||
Annual increase in number of shares reserved for issuance | 1,222,707 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Common Stock Activity (Details) - Restricted Common Stock | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Number of Shares | |
Number of Shares, Unvested as of January 1, 2021 | shares | 3,410,979 |
Number of Shares, Granted | shares | 989,488 |
Number of Shares, Forfeited | shares | (37,677) |
Number of Shares, Vested | shares | (860,788) |
Number of Shares, Unvested as of June 30, 2021 | shares | 3,502,002 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value, Unvested as of January 1, 2021 | $ / shares | $ 3.55 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 35.62 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 22.46 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 1.83 |
Weighted Average Grant Date Fair Value, Unvested as of June 30, 2021 | $ / shares | $ 12.83 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Options Outstanding, Beginning Balance | 3,972,909 | |
Number of Options, Granted | 2,158,388 | |
Number of Options, Forfeited | (34,225) | |
Number of Options Outstanding, Ending Balance | 6,097,072 | 3,972,909 |
Options vested and exercisable at June 30, 2021 | 184,361 | |
Weighted Average Exercise Price, Options outstanding as of January 1, 2021 | $ 17.84 | |
Weighted Average Exercise Price, Granted | 33.73 | |
Weighted Average Exercise Price, Forfeited | 29.43 | |
Weighted Average Exercise Price, Options outstanding as of June 30, 2021 | 23.40 | $ 17.84 |
Weighted Average Exercise Price, Options vested and exercisable at June 30, 2021 | $ 14.37 | |
Weighted Average Contractual Life, Options outstanding | 9 years 3 months 18 days | 9 years 7 months 6 days |
Weighted Average Contractual Life, Options vested and exercisable at June 30, 2021 | 9 years | |
Aggregate Intrinsic Value, Options outstanding at January 1, 2021 | $ 81,822 | |
Aggregate Intrinsic Value, Forfeited | 53 | |
Aggregate Intrinsic Value, Options outstanding at June 30, 2021 | 11,256 | $ 81,822 |
Aggregate Intrinsic Value, Options vested and exercisable at June 30, 2021 | $ 990 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Estimated Fair Value Assumptions Using Black Scholes Option-Pricing Model (Details) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected term (in years) | 6 years | 6 years 18 days |
Expected volatility | 94.73% | 95.06% |
Risk-free interest rate | 1.07% | 0.83% |
Fair value of common stock | $ 23.28 | $ 33.73 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 9,726 | $ 492 | $ 17,829 | $ 1,138 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 3,953 | 94 | 7,264 | 308 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 5,773 | $ 398 | $ 10,565 | $ 830 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense (benefit) | $ 0 | $ 0 | $ 0 | $ 0 |
Deferred income tax expense (benefit) | $ 0 | $ 0 | $ 0 | $ 0 |
Net Loss per Share - Computatio
Net Loss per Share - Computation Of Basic And Diluted Net Loss Per Share Attributable To Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Net loss – basic and diluted | $ (37,588) | $ (11,632) | $ (68,511) | $ (20,971) |
Denominator: | ||||
Weighted-average common shares outstanding — basic and diluted | 62,344,718 | 2,625,648 | 62,399,034 | 2,420,797 |
Net loss per share – basic and diluted | $ (0.60) | $ (4.43) | $ (1.10) | $ (8.66) |
Net Loss per Share - Potential
Net Loss per Share - Potential Dilutive Securities Excluded From Computation Of Diluted Net Loss Per Share Attributable To Common Stockholders (Details) - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Series A2 Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 20,000,000 | |
Series A3 Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 22,453,987 | |
Series A4 Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 2,066,666 | |
Series B Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 14,877,697 | |
Options To Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 6,097,072 | 98,643 |
Unvested Restricted Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 3,502,002 | 3,758,335 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Amount due to related party | $ 1,701 | $ 1,701 | $ 572 | ||
Consulting fees to members of management | 100 | $ 100 | 300 | $ 400 | |
ElevateBio and Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Expenses related to services with related party | $ 1,400 | $ 1,400 | $ 3,600 | $ 2,500 |