Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
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 | 65,417,547 | |
Security12b Title | Common Stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-39409 | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 83-1971007 | |
Entity Address Address Line1 | 1100 Winter Street | |
Entity Address City Or Town | Waltham | |
Entity Address State Or Province | MA | |
Entity Address Postal Zip Code | 02451 | |
City Area Code | 617 | |
Local Phone Number | 433-2605 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 100,206 | $ 201,661 |
Short-term investments | 101,169 | 46,459 |
Interest receivable | 172 | 50 |
Prepaid expenses and other current assets | 4,894 | 5,178 |
Total current assets | 206,441 | 253,348 |
Restricted cash | 852 | 852 |
Other assets | 979 | 1,102 |
Property and equipment, net | 1,083 | 1,549 |
Operating lease right-of-use assets | 21,735 | 29,743 |
Total assets | 231,090 | 286,594 |
Current liabilities: | ||
Accounts payable | 4,473 | 8,361 |
Accrued expenses | 10,083 | 20,152 |
Income tax payable | 507 | 1,007 |
Operating lease liability, current | 2,356 | 6,591 |
Amount due to related party | 1,220 | 1,742 |
Total current liabilities | 18,639 | 37,853 |
Operating lease liability, long term | 20,776 | 23,475 |
Total liabilities | 39,415 | 61,328 |
Commitments and contingencies (See Note 5, Leases) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value: 10,000,000 shares authorized at March 31, 2022 and December 31, 2021, respectively; 0 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | ||
Common stock, $0.0001 par value: 150,000,000 shares authorized at March 31, 2022 and December 31, 2021, respectively; 65,364,572 and 65,170,332 shares issued at March 31, 2022 and December 31, 2021, respectively; and 64,264,127 and 63,565,886 shares outstanding at March 31, 2022 and December 31, 2021, respectively | 7 | 7 |
Additional paid-in capital | 532,946 | 522,479 |
Accumulated other comprehensive loss | (350) | (155) |
Accumulated deficit | (340,928) | (297,065) |
Total stockholders’ equity | 191,675 | 225,266 |
Total liabilities and stockholders’ equity | $ 231,090 | $ 286,594 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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 | 65,364,572 | 65,170,332 |
Common stock, shares outstanding | 64,264,127 | 63,565,886 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating expenses: | ||
Research and development | $ 29,067 | $ 20,393 |
General and administrative | 14,126 | 10,470 |
Total operating expenses | 43,193 | 30,863 |
Loss from operations | (43,193) | (30,863) |
Total other income (loss), net: | ||
Interest income | 148 | 505 |
Other (loss) income, net | (818) | (565) |
Loss before income taxes | (43,863) | |
Income tax expense | 0 | 0 |
Net loss | $ (43,863) | $ (30,923) |
Net loss per share — basic and diluted | $ (0.69) | $ (0.50) |
Weighted-average common shares outstanding — basic and diluted | 63,993,053 | 62,193,734 |
Comprehensive loss: | ||
Net loss | $ (43,863) | $ (30,923) |
Other comprehensive income (loss), net of tax: | ||
Unrealized (loss) gain on available-for-sale securities | (195) | 42 |
Foreign currency translation adjustment | 0 | 83 |
Total other comprehensive (loss) income | (195) | 125 |
Comprehensive loss | $ (44,058) | $ (30,798) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
Balance at Dec. 31, 2020 | $ 353,064 | $ 7 | $ 478,272 | $ (112) | $ (125,103) |
Balance, Shares at Dec. 31, 2020 | 61,931,255 | ||||
Stock-based compensation | 8,103 | 8,103 | |||
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 | |||
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, 2021 | 225,266 | $ 7 | 522,479 | (155) | (297,065) |
Balance, Shares at Dec. 31, 2021 | 63,565,886 | ||||
Stock-based compensation | 10,467 | 10,467 | |||
Issuance of common stock, upon vesting of restricted stock, Shares | 698,241 | ||||
Unrealized (loss) gain on available-for-sale securities | (195) | (195) | |||
Foreign currency translation adjustment | 0 | ||||
Net loss | (43,863) | (43,863) | |||
Balance at Mar. 31, 2022 | $ 191,675 | $ 7 | $ 532,946 | $ (350) | $ (340,928) |
Balance, Shares at Mar. 31, 2022 | 64,264,127 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (43,863) | $ (30,923) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 466 | 18 |
Non-cash lease expense | 380 | 54 |
Amortization and accretion of discounts on short-term investments | 76 | 456 |
Stock compensation expense | 10,467 | 8,103 |
Changes in operating assets and liabilities: | ||
Interest receivable | (122) | (19) |
Prepaid expenses and other current assets | 284 | 1,735 |
Other assets | 122 | |
Income tax payable | (500) | |
Accounts payable, accrued expenses and amount due to related party | (13,786) | 1,650 |
Net cash used in operating activities | (46,476) | (18,926) |
Cash flows from investing activities | ||
Purchase of property and equipment | (75) | |
Purchase of short-term investments | (60,979) | (30,098) |
Maturities of short-term investments | 6,000 | 95,000 |
Net cash (used in) provided by investing activities | (54,979) | 64,827 |
Cash flows from financing activities | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 83 | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (101,455) | 45,984 |
Cash, cash equivalents, and restricted cash at beginning of period | 202,513 | 122,661 |
Cash, cash equivalents, and restricted cash at end of period | 101,058 | 168,645 |
Non-cash investing and financing activities | ||
Unrealized (loss) gain on available-for-sale securities | (195) | 42 |
Right-of-use assets obtained in exchange for operating lease liability | 3,099 | |
Reduction of right-of-use asset due to modification | (5,506) | |
Supplemental disclosure of cash flows | ||
Cash paid for income taxes | 500 | |
Cash and cash equivalents | 100,206 | 168,645 |
Restricted cash | 852 | |
Total cash, cash equivalents, and restricted cash | $ 101,058 | $ 168,645 |
Nature of the Business
Nature of the Business | 3 Months Ended |
Mar. 31, 2022 | |
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. The Company is developing four innovative, allogeneic, off-the-shelf VST therapy candidates targeting 12 different devastating viruses. The Company's lead product, posoleucel (previously referred to as Viralym-M or ALVR105), is a multi-VST-cell therapy that targets six viruses: adenovirus, or AdV, BK virus, or BKV, cytomegalovirus, or CMV, Epstein-Barr virus, or EBV, human herpesvirus 6, or HHV-6 and JC virus, or JCV. The Company believes that posoleucel has the potential to fundamentally transform the treatment landscape for transplant patients by substantially reducing or preventing disease morbidity and mortality, thereby dramatically improving patient outcomes. To fully explore the clinical benefit of posoleucel, the Company is conducting three Phase 3 pivotal and two Phase 2 proof-of-concept, or POC, trials in 2022 for the treatment and prevention of life-threatening viral diseases in pediatric and/or adult allogeneic hematopoietic cell transplant, or HCT, patients, each representing a potential meaningful commercial opportunity. The three ongoing pivotal trials evaluate the efficacy and safety of posoleucel for the treatment of virus-associated hemorrhagic cystitis, or HC, for the treatment of AdV infections and for the prevention of infections and disease caused by posoleucel’s six target viruses, respectively. A POC clinical trial for multi-virus prevention in HCT has completed enrollment and final data are expected by year-end. A second POC trial evaluating posoleucel for BKV treatment in kidney transplant is ongoing. The BKV trial is the first posoleucel study in solid organ transplant patients. The Company’s pipeline includes additional investigational VST therapies that may benefit high-risk individuals. ALVR106 is the Company’s second off-the-shelf, multi-VST product candidate targeting devastating respiratory diseases caused by human metapneumovirus, or hMPV, influenza, parainfluenza virus, or PIV and respiratory syncytial virus, or RSV. A Phase 1b/2 POC clinical study of ALVR106 opened for enrollment at the end of 2021. In the preclinical space, the Company is advancing ALVR107 designed to target hepatitis B, or HBV, infected cells and with the aim of curing chronic HBV infection. Preclinical and IND-enabling studies of ALVR107 to treat and cure HBV are expected to be completed in 2022 to support advancement into a POC study. ALVR109 is an allogeneic, off-the-shelf, single virus-targeted cell therapy designed to target SARS-CoV-2, the virus that causes the severe and life-threatening viral disease, COVID-19. Data from the POC clinical trial of ALVR109 were reported in 2021, and the Company continues to make ALVR109 available to physicians in response to appropriate compassionate use requests. 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 Waltham, Massachusetts and Houston, Texas. 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. On July 20, 2021, AlloVir Inc. formed AlloVir U.S., Inc. (“AlloVir U.S.”), a wholly-owned subsidiary of AlloVir. 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 Waltham, 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 March 31, 2022, 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 $ 43.9 million and $ 30.9 million for the three months ended March 31, 2022 and 2021, respectively. In addition, at March 31, 2022, the Company had an accumulated deficit of $ 340.9 million. The Company expects to continue to generate operating losses for the foreseeable future. The Company believes that its $ 201.4 million of cash, cash equivalents and short-term investments held at March 31, 2022, 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 | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Interim Financial Information The accompanying condensed consolidated balance sheet at March 31, 2022, and the condensed consolidated statements of operations and comprehensive loss, statements of changes in stockholders’ equity for the three months ended March 31, 2022 and 2021 and condensed consolidated statements of cash flows for the three months ended March 31, 2022 and 2021 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 March 31, 2022 and the results of its operations for the three months ended March 31, 2022 and 2021 and its cash flows for the three months ended March 31, 2022 and 2021. The financial data and other information disclosed in these notes related to the three months ended March 31, 2022 and 2021 are also unaudited. The results for the three months ended March 31, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022 or for any other subsequent interim period. 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, 2021 , 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 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 | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 (in thousands) Amortized Unrealized Unrealized Fair U.S. government treasury securities $ 85,052 $ — $ ( 214 ) $ 84,838 Marketable securities: Commercial paper 5,573 — ( 2 ) 5,571 Corporate bonds 10,767 — ( 7 ) 10,760 Totals $ 101,392 $ — $ ( 223 ) $ 101,169 December 31, 2021 (in thousands) Amortized Unrealized Unrealized Fair U.S. government treasury securities $ 25,092 $ — $ ( 20 ) $ 25,072 Marketable securities: Commercial paper 11,568 1 — 11,569 Corporate bonds 9,821 — ( 3 ) 9,818 Totals $ 46,481 $ 1 $ ( 23 ) $ 46,459 Certain short-term debt securities with original maturities of less than three months are included in cash and cash equivalents on the condensed consolidated balance sheets and are not included in the tables above. At March 31, 2022 and December 31, 2021 , all investments had contractual maturities within one year. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 17,176 $ — $ — $ 17,176 U.S. government treasury securities 23,998 — — 23,998 Totals $ 41,174 $ — $ — $ 41,174 Short-term investments: U.S. government treasury securities $ 84,838 $ — $ — $ 84,838 Marketable securities: Commercial paper — 5,571 $ — 5,571 Corporate bonds — 10,760 — 10,760 Totals $ 84,838 $ 16,331 $ — $ 101,169 December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 141,378 $ — $ — $ 141,378 Marketable securities: Commercial paper — 7,998 — 7,998 Corporate bonds — 753 — 753 Totals $ 141,378 $ 8,751 $ — $ 150,129 Short-term investments: U.S. government treasury securities $ 25,072 $ — $ — $ 25,072 Marketable securities: Commercial paper — 11,569 $ — 11,569 Corporate bonds — 9,818 — 9,818 Totals $ 25,072 $ 21,387 $ — $ 46,459 During the three months ended March 31, 2022 and the year ended December 31, 2021, 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 Company classifies its marketable securities (corporate bonds and commercial paper) as Level 2 assets under the fair value hierarchy, as these assets have pricing inputs that are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined using models or other valuation methodologies. 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 | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | 5. Leases Operating leases 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. 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 the 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 has extended the DMS Agreement, and estimates that early termination is not reasonably certain to occur. The total estimated lease term of approximately 4.25 years expires 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. In September 2019, at the inception of this lease, the Company recorded a ROU asset and lease liability of $ 6.3 million. The SOW calls for a fixed monthly payment through July 2023 , with additional two-year renewal options. The total estimated lease term of approximately 3.75 years expires in July 2023 . The use of these manufacturing suites qualify as a lease under ASC 842, as it includes an identified asset for exclusive use by the Company at its direction. In February 2022, the Company entered into amendments to both SOWs under the DMS Agreement. The original SOW (beginning March 2019) was modified to add a new termination clause whereby the Company can terminate the lease upon entering into a contract for another suite at the facility, which is expected to occur in September 2022. Management concluded that the SOW amendment constituted a lease modification under ASC 842 and recorded a $ 1.4 million reduction to the related ROU asset and lease liability in February 2022. The second SOW under the DMS agreement (beginning September 2019) was terminated as of the effective date in February 2022 . As a result of the amendment, which also represented a lease modification under ASC 842, the Company recorded a $ 2.6 million reduction to the related ROU asset and lease liability. 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 . In February 2022, the Company decided not to exercise the one-year renewal option and subsequently executed a Change Order to modify the terms of the SOW under the 2020 DMS Agreement. Management concluded that the amendments laid out in the change order collectively constituted a lease modification under ASC 842 and recorded a $ 1.3 million reduction to the related lease liability and a $ 1.5 million reduction to the related ROU asset. In September 2021, the Company entered into a new lease agreement with BP Bay Colony LLC and a sublease with AMAG Pharmaceuticals Inc. for the lease of property in Waltham, Massachusetts (collectively, the "Waltham leases"). The space identified under the Waltham leases is intended for general office space, research and development, laboratory use, and light manufacturing. The Waltham leases have been classified as operating leases and commenced in September 2021 . At the inception date, the Company has recorded an ROU asset and lease liability of $ 6.0 million for the lease and a ROU asset and lease liability of $ 17.3 million for the sublease based on a July 30, 2030 end date for the Waltham leases. As part of the arrangement, there were also variable costs for common area maintenance fees that were not included in the measurement of the lease. The agreement also provides a $ 3.1 million tenant improvement allowance which is to be reimbursed by the landlord over the duration of the first two years of the Waltham leases. As of March 31, 2022 , no allowances have been used and therefore no reduction to the tenant improvement allowance has been made. The Company will monitor the timing of the reimbursements and adjust the ROU asset and lease liability at such time. The Company has the option to renew the leased space for an additional one time period of five years with written notice from the Company. As of March 31, 2022 , the Company has no reasonable certainty that this option to extend will be exercised. Maturities of operating lease liabilities at March 31, 2022 are as follows (in thousands): 2022 (remaining 9 months) $ 2,715 2023 3,049 2024 3,151 2025 3,229 2026 3,308 Thereafter 13,069 Total lease payments 28,521 Less: interest ( 3.40 % - 5.75 %) ( 5,389 ) Total lease liability $ 23,132 Lease liability – current $ 2,356 Lease liability – long-term $ 20,776 Total lease costs were $ 1.6 million and $ 1.3 million for the three months ended March 31, 2022 and 2021 , respectively. Cash paid for operating leases was $ 1.2 million and $ 1.1 million for the three months ended March 31, 2022 and 2021 , respectively. The Company’s total variable lease costs, such as materials, batch payments, storage, knowledge and tech transfer, and other common area maintenance fees, related to the operating leases was $ 1.2 million and $ 0.9 million for the three months ended March 31, 2022 and 2021 , respectively. The weighted average remaining lease term is 8.07 years at March 31, 2022 . The weighted average discount rate is 5.02 % at March 31, 2022 . |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 6. Accrued Expenses Accrued expenses consisted of the following: (in thousands) March 31, December 31, Employee compensation and benefits $ 2,099 $ 6,867 Professional fees 642 738 Research and development 4,245 3,573 Process development and manufacturing costs 2,703 7,685 Other 394 1,289 Total accrued expenses $ 10,083 $ 20,152 |
Stockholder's Equity
Stockholder's Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholder's Equity | 7. 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 March 31, 2022 and December 31, 2021. At March 31, 2022 and December 31, 2021 , 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. The Company has reserved shares of common stock for issuance as follows: March 31, Unvested restricted stock 2,925,254 Options to purchase common stock 7,507,306 Stock available for grant under the 2020 Stock Option and Grant Plan 5,232,376 Total 15,664,936 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 8. 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 March 31, 2022 , the Company had granted 6,715,415 shares of common stock under the 2018 Plan, including an aggregate of 64,042 shares of common stock issuable upon the exercise of outstanding options under the 2018 Plan. Of the awards granted, no awards have been forfeited or cancelled during the three months ended March 31, 2022 . No shares remain 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 were 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, 2022, 3,528,817 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 March 31, 2022 , there was an aggregate of 7,468,416 shares of common stock issuable upon the exercise of outstanding options under the 2020 Plan and 2,253,397 shares of restricted common stock granted under the 2020 Plan. Additionally, there were an aggregate of 5,232,376 shares reserved for future issuance under the 2020 Plan. Restricted Common Stock The following table summarizes restricted common stock activity for the three months ended March 31, 2022: Shares Weighted Unvested at January 1, 2022 2,866,909 $ 15.45 Granted 809,877 9.20 Forfeited ( 53,291 ) 29.96 Vested ( 698,241 ) 12.83 Unvested at March 31, 2022 2,925,254 $ 14.08 At March 31, 2022 , there was $ 36.7 million of unrecognized stock-based compensation cost related to the restricted stock, which is expected to be recognized over a weighted average period of 2.99 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, 2022 6,155,055 $ 23.42 8.80 $ 480 Granted 1,764,190 9.19 — — Exercised — — — — Forfeited ( 411,939 ) 25.10 — — Options outstanding at March 31, 2022 7,507,306 $ 19.98 8.88 $ 181 Options vested and exercisable at March 31, 2022 1,709,930 $ 21.44 8.41 $ 122 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 stock options granted during the three months ended March 31, 2022 was $ 6.89 . At March 31, 2022 , there was $ 76.2 million of unrecognized stock-based compensation expense related to unvested stock options, which is being recognized over a period of 2.81 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 Expected term (in years) 6.11 Expected volatility 90.53 % Risk-free interest rate 1.73 % Expected dividend yield — Fair value of common stock $ 9.19 Stock-Based Compensation Expense Stock-based compensation expense was as follows: Three Months Ended (in thousands) 2022 2021 Research and development $ 3,341 $ 3,311 General and administrative 7,126 4,792 Total stock-based compensation expense $ 10,467 $ 8,103 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. Initially, 611,354 shares of common stock in the aggregate were approved and reserved for this purpose. The number of shares of common stock reserved and available for issuance under the 2020 ESPP shall be cumulatively increased on January 1, 2021 and each January 1 thereafter 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 and 2022. The 2020 ESPP allows eligible employees to authorize payroll deductions of up to 15 % of their base salary or wages up to $ 25,000 annually to be applied toward the purchase of shares of the Company's common stock on the last trading day of the offering period. Participating employees will purchase shares of the Company's common stock at a discount of up to 15 % on the lesser of the closing price of the Company's common stock on the NASDAQ Global Market (i) on the first trading day of the offering period or (ii) the last day of any offering period. Offering periods under the 2020 ESPP will generally be in six months increments, commencing on January 1 and July 1 of each calendar year with the administrator having the right to establish different offering periods. The first offering period was shortened in duration to three months and commenced on April 1, 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The Company’s income tax provision is computed based on the federal statutory rate, the average state statutory rates, net of the related federal benefit, and foreign statutory rates. For the three months ended March 31, 2022 and 2021 , 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 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 | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 10. 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 (in thousands, except share and per share data) 2022 2021 Numerator: Net loss – basic and diluted $ ( 43,863 ) $ ( 30,923 ) Denominator: Weighted-average common shares outstanding – basic and diluted 63,993,053 62,193,734 Net loss per share – basic and diluted $ ( 0.69 ) $ ( 0.50 ) Based on the amounts outstanding at March 31, 2022 and 2021, 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 months ended March 31, 2022 and 2021, 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. March 31, 2022 2021 Options to purchase common stock 7,507,306 5,145,047 Unvested restricted stock 2,925,254 3,519,753 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. 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 also entered into a Development and Manufacturing Services Agreement ("2020 DMS Agreement") with ElevateBio BaseCamp, Inc. (see "Note 5 - Leases"). 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 incurred $ 1.4 million and $ 2.0 million during the three months ended March 31, 2022 and 2021 , respectively, related to services provided to the Company by ElevateBio and affiliates. The Company owed ElevateBio $ 1.2 million and $ 1.7 million at March 31, 2022 and December 31, 2021, respectively, which is recorded in “Amount due to related party” on the condensed consolidated balance sheets. Members of the Company’s management and board of directors received a total of $ 0.2 million and $ 0.2 million in consulting fees during the three months ended March 31, 2022 and 2021 , respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information The accompanying condensed consolidated balance sheet at March 31, 2022, and the condensed consolidated statements of operations and comprehensive loss, statements of changes in stockholders’ equity for the three months ended March 31, 2022 and 2021 and condensed consolidated statements of cash flows for the three months ended March 31, 2022 and 2021 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 March 31, 2022 and the results of its operations for the three months ended March 31, 2022 and 2021 and its cash flows for the three months ended March 31, 2022 and 2021. The financial data and other information disclosed in these notes related to the three months ended March 31, 2022 and 2021 are also unaudited. The results for the three months ended March 31, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022 or for any other subsequent interim period. |
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, 2021 , 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 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) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 (in thousands) Amortized Unrealized Unrealized Fair U.S. government treasury securities $ 85,052 $ — $ ( 214 ) $ 84,838 Marketable securities: Commercial paper 5,573 — ( 2 ) 5,571 Corporate bonds 10,767 — ( 7 ) 10,760 Totals $ 101,392 $ — $ ( 223 ) $ 101,169 December 31, 2021 (in thousands) Amortized Unrealized Unrealized Fair U.S. government treasury securities $ 25,092 $ — $ ( 20 ) $ 25,072 Marketable securities: Commercial paper 11,568 1 — 11,569 Corporate bonds 9,821 — ( 3 ) 9,818 Totals $ 46,481 $ 1 $ ( 23 ) $ 46,459 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 17,176 $ — $ — $ 17,176 U.S. government treasury securities 23,998 — — 23,998 Totals $ 41,174 $ — $ — $ 41,174 Short-term investments: U.S. government treasury securities $ 84,838 $ — $ — $ 84,838 Marketable securities: Commercial paper — 5,571 $ — 5,571 Corporate bonds — 10,760 — 10,760 Totals $ 84,838 $ 16,331 $ — $ 101,169 December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 141,378 $ — $ — $ 141,378 Marketable securities: Commercial paper — 7,998 — 7,998 Corporate bonds — 753 — 753 Totals $ 141,378 $ 8,751 $ — $ 150,129 Short-term investments: U.S. government treasury securities $ 25,072 $ — $ — $ 25,072 Marketable securities: Commercial paper — 11,569 $ — 11,569 Corporate bonds — 9,818 — 9,818 Totals $ 25,072 $ 21,387 $ — $ 46,459 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Summary of Maturities Operating Leases Liabilities | Maturities of operating lease liabilities at March 31, 2022 are as follows (in thousands): 2022 (remaining 9 months) $ 2,715 2023 3,049 2024 3,151 2025 3,229 2026 3,308 Thereafter 13,069 Total lease payments 28,521 Less: interest ( 3.40 % - 5.75 %) ( 5,389 ) Total lease liability $ 23,132 Lease liability – current $ 2,356 Lease liability – long-term $ 20,776 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: (in thousands) March 31, December 31, Employee compensation and benefits $ 2,099 $ 6,867 Professional fees 642 738 Research and development 4,245 3,573 Process development and manufacturing costs 2,703 7,685 Other 394 1,289 Total accrued expenses $ 10,083 $ 20,152 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Reserved Shares of Common Stock for Issuance | The Company has reserved shares of common stock for issuance as follows: March 31, Unvested restricted stock 2,925,254 Options to purchase common stock 7,507,306 Stock available for grant under the 2020 Stock Option and Grant Plan 5,232,376 Total 15,664,936 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Common Stock Activity | The following table summarizes restricted common stock activity for the three months ended March 31, 2022: Shares Weighted Unvested at January 1, 2022 2,866,909 $ 15.45 Granted 809,877 9.20 Forfeited ( 53,291 ) 29.96 Vested ( 698,241 ) 12.83 Unvested at March 31, 2022 2,925,254 $ 14.08 |
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, 2022 6,155,055 $ 23.42 8.80 $ 480 Granted 1,764,190 9.19 — — Exercised — — — — Forfeited ( 411,939 ) 25.10 — — Options outstanding at March 31, 2022 7,507,306 $ 19.98 8.88 $ 181 Options vested and exercisable at March 31, 2022 1,709,930 $ 21.44 8.41 $ 122 |
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 Expected term (in years) 6.11 Expected volatility 90.53 % Risk-free interest rate 1.73 % Expected dividend yield — Fair value of common stock $ 9.19 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense was as follows: Three Months Ended (in thousands) 2022 2021 Research and development $ 3,341 $ 3,311 General and administrative 7,126 4,792 Total stock-based compensation expense $ 10,467 $ 8,103 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 (in thousands, except share and per share data) 2022 2021 Numerator: Net loss – basic and diluted $ ( 43,863 ) $ ( 30,923 ) Denominator: Weighted-average common shares outstanding – basic and diluted 63,993,053 62,193,734 Net loss per share – basic and diluted $ ( 0.69 ) $ ( 0.50 ) |
Potential Dilutive Securities Excluded From Computation Of Diluted Net Loss Per Share Attributable To Common Stockholders | Based on the amounts outstanding at March 31, 2022 and 2021, 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 months ended March 31, 2022 and 2021, 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. March 31, 2022 2021 Options to purchase common stock 7,507,306 5,145,047 Unvested restricted stock 2,925,254 3,519,753 |
Nature of the Business - Additi
Nature of the Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 03, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Aug. 04, 2020 |
Net proceeds from issuance initial public offering | $ 292,000 | ||||
Net losses attributable to common stockholders | $ (43,863) | $ (30,923) | |||
Accumulated deficit | (340,928) | $ (297,065) | |||
Cash, cash equivalents and short-term investments | $ 201,400 | ||||
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 | ||||
IPO | Common Stock | |||||
Stock issued upon conversion of preferred stock | 39,859,139 |
Short-Term Investments - Summar
Short-Term Investments - Summary of Amortized Cost and Estimated Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 101,392 | $ 46,481 |
Unrealized Gains | 1 | |
Unrealized Losses | (223) | (23) |
Fair Value | 101,169 | 46,459 |
Commercial paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 5,573 | 11,568 |
Unrealized Gains | 1 | |
Unrealized Losses | (2) | |
Fair Value | 5,571 | 11,569 |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 10,767 | 9,821 |
Unrealized Losses | (7) | (3) |
Fair Value | 10,760 | 9,818 |
U.S. Government Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 85,052 | 25,092 |
Unrealized Losses | (214) | (20) |
Fair Value | $ 84,838 | $ 25,072 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value On Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Cash equivalents: | ||
Cash equivalents | $ 41,174 | $ 150,129 |
Short-term investments: | ||
Short-term investments | 101,169 | 46,459 |
Commercial Paper | ||
Cash equivalents: | ||
Cash equivalents | 7,998 | |
Short-term investments: | ||
Short-term investments | 5,571 | 11,569 |
Corporate Bonds | ||
Cash equivalents: | ||
Cash equivalents | 753 | |
Short-term investments: | ||
Short-term investments | 10,760 | 9,818 |
Money Market Fund | ||
Cash equivalents: | ||
Cash equivalents | 17,176 | 141,378 |
U.S. Government Treasury Securities | ||
Cash equivalents: | ||
Cash equivalents | 23,998 | |
U.S. Government Treasury Securities | ||
Short-term investments: | ||
Short-term investments | 84,838 | 25,072 |
Level 1 | ||
Cash equivalents: | ||
Cash equivalents | 41,174 | 141,378 |
Short-term investments: | ||
Short-term investments | 84,838 | 25,072 |
Level 1 | Money Market Fund | ||
Cash equivalents: | ||
Cash equivalents | 17,176 | 141,378 |
Level 1 | U.S. Government Treasury Securities | ||
Cash equivalents: | ||
Cash equivalents | 23,998 | |
Level 1 | U.S. Government Treasury Securities | ||
Short-term investments: | ||
Short-term investments | 84,838 | 25,072 |
Level 2 | ||
Cash equivalents: | ||
Cash equivalents | 8,751 | |
Short-term investments: | ||
Short-term investments | 16,331 | 21,387 |
Level 2 | Commercial Paper | ||
Cash equivalents: | ||
Cash equivalents | 7,998 | |
Short-term investments: | ||
Short-term investments | 5,571 | 11,569 |
Level 2 | Corporate Bonds | ||
Cash equivalents: | ||
Cash equivalents | 753 | |
Short-term investments: | ||
Short-term investments | $ 10,760 | $ 9,818 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||
Feb. 28, 2022 | Sep. 30, 2021 | Feb. 28, 2021 | Sep. 30, 2019 | Jul. 31, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Mar. 31, 2019 | |
Leases [Line Items] | |||||||||
ROU asset | $ 21,735,000 | $ 29,743,000 | |||||||
Lease liability | 23,132,000 | ||||||||
Operating lease costs | 1,600,000 | $ 1,300,000 | |||||||
Cash paid for operating lease | 1,200,000 | 1,100,000 | |||||||
Variable lease costs | $ 1,200,000 | $ 900,000 | |||||||
Operating lease, weighted average remaining lease term | 8 years 25 days | ||||||||
Operating lease, weighted average discount rate, percent | 5.02% | ||||||||
DMS Agreement | |||||||||
Leases [Line Items] | |||||||||
Lease expiration month and year | 2021-07 | ||||||||
Term of agreement | 2 years | ||||||||
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 | ||||||||
Estimated lease term | 3 years 9 months | 4 years 3 months | |||||||
Estimated lease expiring month and year | 2023-07 | 2023-07 | |||||||
ROU asset | $ 6,300,000 | $ 6,900,000 | |||||||
Lease liability | $ 6,300,000 | $ 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 | ||||||||
Waltham Leases | |||||||||
Leases [Line Items] | |||||||||
Expiration date | Jul. 30, 2030 | ||||||||
Operating lease, existence of option to extend | true | ||||||||
Lease, option to extend | The Company has the option to renew the leased space for an additional one time period of five years with written notice from the Company. As of March 31, 2022, the Company has no reasonable certainty that this option to extend will be exercised. | ||||||||
Tenant improvement allowance to be reimbursed | $ 3,100,000 | ||||||||
Tenant improvement allowance, reimbursement period | 2 years | ||||||||
Tenant improvement allowance | $ 0 | ||||||||
Lease commencement month and year | 2021-09 | ||||||||
Additional one time lease period | 5 years | ||||||||
New Lease Agreement with BP Bay Colony LLC | |||||||||
Leases [Line Items] | |||||||||
ROU asset | $ 6,000,000 | ||||||||
Lease liability | 6,000,000 | ||||||||
Sublease with AMAG Pharmaceuticals | |||||||||
Leases [Line Items] | |||||||||
ROU asset | 17,300,000 | ||||||||
Lease liability | $ 17,300,000 | ||||||||
Original SOW Amendment under DMS Agreement | Lease Modification under ASC 842 | |||||||||
Leases [Line Items] | |||||||||
ROU asset | $ (1,400,000) | ||||||||
Lease liability | $ (1,400,000) | ||||||||
Second SOW Amendment under DMS Agreement | |||||||||
Leases [Line Items] | |||||||||
Lease expiration month and year | 2022-02 | ||||||||
Second SOW Amendment under DMS Agreement | Lease Modification under ASC 842 | |||||||||
Leases [Line Items] | |||||||||
ROU asset | $ (2,600,000) | ||||||||
Lease liability | (2,600,000) | ||||||||
Change Order to Modify Terms of SOW under 2020 DMS Agreement | Lease Modification under ASC 842 | |||||||||
Leases [Line Items] | |||||||||
ROU asset | (1,500,000) | ||||||||
Lease liability | $ (1,300,000) |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 (remaining 9 months) | $ 2,715 | |
2023 | 3,049 | |
2024 | 3,151 | |
2025 | 3,229 | |
2026 | 3,308 | |
Thereafter | 13,069 | |
Total lease payments | 28,521 | |
Less: interest (3.40% - 5.75%) | (5,389) | |
Total lease liability | 23,132 | |
Lease liability - current | 2,356 | $ 6,591 |
Lease liability - long-term | $ 20,776 | $ 23,475 |
Leases - Summary of Operating_2
Leases - Summary of Operating Lease Liabilities (Details) (Parenthetical) | Mar. 31, 2022 |
Lessee, Lease, Description [Line Items] | |
Operating lease interest percentage | 5.02% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease interest percentage | 3.40% |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease interest percentage | 5.75% |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Employee compensation and benefits | $ 2,099 | $ 6,867 |
Professional fees | 642 | 738 |
Research and development | 4,245 | 3,573 |
Process development and manufacturing costs | 2,703 | 7,685 |
Other | 394 | 1,289 |
Total accrued expenses | $ 10,083 | $ 20,152 |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Details) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 | Aug. 03, 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 |
Stockholders Equity - Schedule
Stockholders Equity - Schedule of Reserved Shares of Common Stock for Issuance (Details) | Mar. 31, 2022shares |
Class Of Stock [Line Items] | |
Reserved shares of common stock for issuance | 15,664,936 |
Unvested Restricted Stock | |
Class Of Stock [Line Items] | |
Reserved shares of common stock for issuance | 2,925,254 |
Option To Purchase Common Stock | |
Class Of Stock [Line Items] | |
Reserved shares of common stock for issuance | 7,507,306 |
Stock Available For Grant | 2020 Stock Option and Grant Plan | |
Class Of Stock [Line Items] | |
Reserved shares of common stock for issuance | 5,232,376 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | Jan. 01, 2022 | Jul. 02, 2020 | Jul. 31, 2020 | Mar. 31, 2022 | Dec. 31, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Reserved shares of common stock for issuance | 15,664,936 | ||||
Weighted average grant-date fair value of stock options granted | $ 6.89 | ||||
Common stock, par value | $ 0.0001 | $ 0.0001 | |||
Restricted Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards forfeited or cancelled | 53,291 | ||||
Number of shares granted | 809,877 | ||||
Unrecognized stock-based compensation cost | $ 36,700,000 | ||||
Weighted average period of cost expected to be recognized | 2 years 11 months 26 days | ||||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted average period of cost expected to be recognized | 2 years 9 months 21 days | ||||
Unrecognized stock-based compensation expenses | $ 76,200,000 | ||||
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 | ||||
Number of shares of common stock issuable upon exercise of outstanding options | 64,042 | ||||
Awards forfeited or cancelled | 0 | ||||
Reserved shares of common stock for issuance | 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 | 3,528,817 | ||||
Common stock issuable upon exercise of outstanding options | 7,468,416 | ||||
2020 Stock Option and Grant Plan | Restricted Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares granted | 2,253,397 | ||||
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 | 5,232,376 | ||||
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 | ||||
Percentage of payroll deductions of base salary or wages | 15.00% | ||||
Percentage of maximum discount on purchase of shares of common stock | 15.00% | ||||
Offering period, description | (i) on the first trading day of the offering period or (ii) the last day of any offering period. Offering periods under the 2020 ESPP will generally be in six months increments, commencing on January 1 and July 1 of each calendar year with the administrator having the right to establish different offering periods. The first offering period was shortened in duration to three months and commenced on April 1, 2022. | ||||
2020 ESPP | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Base salary or wages | $ 25,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Common Stock Activity (Details) - Restricted Common Stock | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Shares | |
Number of Shares, Unvested at January 1, 2022 | shares | 2,866,909 |
Number of Shares, Granted | shares | 809,877 |
Number of Shares, Forfeited | shares | (53,291) |
Number of Shares, Vested | shares | (698,241) |
Number of Shares, Unvested at March 31, 2022 | shares | 2,925,254 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value, Unvested at January 1, 2022 | $ / shares | $ 15.45 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 9.20 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 29.96 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 12.83 |
Weighted Average Grant Date Fair Value, Unvested at March 31, 2022 | $ / shares | $ 14.08 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Number of Options Outstanding, Beginning Balance | 6,155,055 | |
Number of Options, Granted | 1,764,190 | |
Number of Options, Forfeited | (411,939) | |
Number of Options Outstanding, Ending Balance | 7,507,306 | 6,155,055 |
Options vested and exercisable at March 31, 2022 | 1,709,930 | |
Weighted Average Exercise Price, Options outstanding as of January 1, 2022 | $ 23.42 | |
Weighted Average Exercise Price, Granted | 9.19 | |
Weighted Average Exercise Price, Forfeited | 25.10 | |
Weighted Average Exercise Price, Options outstanding at March 31, 2022 | 19.98 | $ 23.42 |
Weighted Average Exercise Price, Options vested and exercisable at March 31, 2022 | $ 21.44 | |
Weighted Average Contractual Life, Options outstanding | 8 years 10 months 17 days | 8 years 9 months 18 days |
Weighted Average Contractual Life, Options vested and exercisable at March 31, 2022 | 8 years 4 months 28 days | |
Aggregate Intrinsic Value, Options outstanding at January 1, 2022 | $ 480 | |
Aggregate Intrinsic Value, Options outstanding at March 31, 2022 | 181 | $ 480 |
Aggregate Intrinsic Value, Options vested and exercisable at March 31, 2022 | $ 122 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Estimated Fair Value Assumptions Using Black Scholes Option-Pricing Model (Details) | 3 Months Ended |
Mar. 31, 2022$ / shares | |
Share-based Payment Arrangement [Abstract] | |
Expected term (in years) | 6 years 1 month 9 days |
Expected volatility | 90.53% |
Risk-free interest rate | 1.73% |
Fair value of common stock | $ 9.19 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 10,467 | $ 8,103 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 3,341 | 3,311 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 7,126 | $ 4,792 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Current income tax expense (benefit) | $ 0 | $ 0 |
Deferred income tax expense (benefit) | $ 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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net loss – basic and diluted | $ (43,863) | $ (30,923) |
Denominator: | ||
Weighted-average common shares outstanding — basic and diluted | 63,993,053 | 62,193,734 |
Net loss per share – basic and diluted | $ (0.69) | $ (0.50) |
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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
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 | 7,507,306 | 5,145,047 |
Unvested Restricted Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 2,925,254 | 3,519,753 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Amount due to related party | $ 1,220 | $ 1,742 | |
Consulting fees to members of management and board of directors | 200 | $ 200 | |
ElevateBio and Affiliates | |||
Related Party Transaction [Line Items] | |||
Expenses related to services with related party | 1,400 | $ 2,000 | |
Amount due to related party | $ 1,200 | $ 1,700 |