Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | KRTX | |
Entity Registrant Name | Karuna Therapeutics, Inc. | |
Entity Central Index Key | 0001771917 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-38958 | |
Entity Tax Identification Number | 27-0605902 | |
Entity Address, Address Line One | 99 High Street | |
Entity Address, Address Line Two | 26th Floor | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02110 | |
City Area Code | 857 | |
Local Phone Number | 449-2244 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 34,362,777 | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 628,317 | $ 206,953 |
Investment securities, available-for-sale | 563,717 | 287,038 |
Accounts receivable | 81 | 1,750 |
Prepaid expenses and other current assets | 27,035 | 21,138 |
Deferred offering costs | 528 | 455 |
Total current assets | 1,219,678 | 517,334 |
Restricted cash | 261 | 261 |
Right-of-use lease assets - operating, net | 5,131 | 6,453 |
Property and equipment, net | 2,919 | 3,092 |
Other non-current assets | 423 | 531 |
Total assets | 1,228,412 | 527,671 |
Current liabilities: | ||
Accounts payable | 15,716 | 1,939 |
Accrued expenses | 22,751 | 16,099 |
Current portion of operating lease liability | 2,278 | 2,175 |
Total current liabilities | 40,745 | 20,213 |
Operating lease liability, net of current portion | 3,608 | 5,328 |
Other non-current liabilities | 104 | 104 |
Total liabilities | 44,457 | 25,645 |
Commitments and Contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized and 0 shares outstanding as of September 30, 2022 and December 31, 2021 | 0 | 0 |
Common stock, $0.0001 par value; 150,000,000 shares authorized at September 30, 2022 and December 31, 2021; XXX and 29,770,558 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 3 | 3 |
Additional paid-in capital | 1,675,645 | 790,391 |
Accumulated deficit | (487,995) | (287,871) |
Accumulated other comprehensive loss | (3,698) | (497) |
Total stockholders’ equity | 1,183,955 | 502,026 |
Total liabilities and stockholders’ equity | $ 1,228,412 | $ 527,671 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
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 | 34,345,991 | 29,770,558 |
Common stock, shares outstanding | 34,345,991 | 29,770,558 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
License revenue | $ 81 | $ 0 | $ 5,359 | $ 0 |
Operating expenses: | ||||
Research and development | 61,950 | 38,775 | 158,243 | 83,108 |
General and administrative | 19,125 | 12,393 | 51,756 | 32,554 |
Total operating expenses | 81,075 | 51,168 | 209,999 | 115,662 |
Loss from operations | (80,994) | (51,168) | (204,640) | (115,662) |
Other income (loss), net: | ||||
Interest income | 3,884 | 114 | 4,611 | 363 |
Sublease income | 147 | 122 | 433 | 131 |
Impairment loss on right-of-use assets | 0 | 0 | 0 | (677) |
Total other income (loss), net | 4,031 | 236 | 5,044 | (183) |
Net loss before income taxes | (76,963) | (50,932) | (199,596) | (115,845) |
Income tax provision | 0 | 0 | (528) | 0 |
Net loss attributable to common stockholders | $ (76,963) | $ (50,932) | $ (200,124) | $ (115,845) |
Earnings Per Share, Basic | $ (2.38) | $ (1.72) | $ (6.52) | $ (4) |
Earnings Per Share, Diluted | $ (2.38) | $ (1.72) | $ (6.52) | $ (4) |
Weighted Average Number of Shares Outstanding, Basic | 32,349,111 | 29,572,289 | 30,693,117 | 28,953,654 |
Weighted Average Number of Shares Outstanding, Diluted | 32,349,111 | 29,572,289 | 30,693,117 | 28,953,654 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (76,963) | $ (50,932) | $ (200,124) | $ (115,845) |
Other comprehensive loss: | ||||
Unrealized losses on available-for-sale investments | (703) | (30) | (3,201) | (74) |
Comprehensive loss | $ (77,666) | $ (50,962) | $ (203,325) | $ (115,919) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2020 | $ 338,931 | $ 3 | $ 482,955 | $ (144,066) | $ 39 |
Beginning balance, shares at Dec. 31, 2020 | 26,988,458 | ||||
Issuance of common stock | 270,017 | 270,017 | |||
Issuance of common stock, shares | 2,395,834 | ||||
Stock-based compensation expense | 13,288 | 13,288 | |||
Exercise of common options | 3,059 | 3,059 | |||
Exercise of common options, shares | 159,518 | ||||
Other comprehensive income (loss) | (44) | (44) | |||
Net loss | (64,913) | (64,913) | |||
Ending balance at Jun. 30, 2021 | 560,338 | $ 3 | 769,319 | (208,979) | (5) |
Ending balance, shares at Jun. 30, 2021 | 29,543,810 | ||||
Beginning balance at Dec. 31, 2020 | 338,931 | $ 3 | 482,955 | (144,066) | 39 |
Beginning balance, shares at Dec. 31, 2020 | 26,988,458 | ||||
Net loss | (115,845) | ||||
Ending balance at Sep. 30, 2021 | 518,328 | $ 3 | 778,271 | (259,911) | (35) |
Ending balance, shares at Sep. 30, 2021 | 29,606,005 | ||||
Beginning balance at Jun. 30, 2021 | 560,338 | $ 3 | 769,319 | (208,979) | (5) |
Beginning balance, shares at Jun. 30, 2021 | 29,543,810 | ||||
Stock-based compensation expense | 8,203 | 8,203 | |||
Exercise of common options | 749 | 749 | |||
Exercise of common options, shares | 62,195 | ||||
Other comprehensive income (loss) | (30) | (30) | |||
Net loss | (50,932) | (50,932) | |||
Ending balance at Sep. 30, 2021 | 518,328 | $ 3 | 778,271 | (259,911) | (35) |
Ending balance, shares at Sep. 30, 2021 | 29,606,005 | ||||
Beginning balance at Dec. 31, 2021 | 502,026 | $ 3 | 790,391 | (287,871) | (497) |
Beginning balance, shares at Dec. 31, 2021 | 29,770,558 | ||||
Stock-based compensation expense | 22,768 | 22,768 | |||
Exercise of common options | 6,274 | 6,274 | |||
Exercise of common options, shares | 162,545 | ||||
Other comprehensive income (loss) | (2,498) | (2,498) | |||
Net loss | (123,161) | (123,161) | |||
Ending balance at Jun. 30, 2022 | 405,409 | $ 3 | 819,433 | (411,032) | (2,995) |
Ending balance, shares at Jun. 30, 2022 | 29,933,103 | ||||
Beginning balance at Dec. 31, 2021 | $ 502,026 | $ 3 | 790,391 | (287,871) | (497) |
Beginning balance, shares at Dec. 31, 2021 | 29,770,558 | ||||
Exercise of common options, shares | 563,805 | ||||
Net loss | $ (200,124) | ||||
Ending balance at Sep. 30, 2022 | 1,183,955 | $ 3 | 1,675,645 | (487,995) | (3,698) |
Ending balance, shares at Sep. 30, 2022 | 34,345,991 | ||||
Beginning balance at Jun. 30, 2022 | 405,409 | $ 3 | 819,433 | (411,032) | (2,995) |
Beginning balance, shares at Jun. 30, 2022 | 29,933,103 | ||||
Issuance of common stock | 819,047 | 819,047 | |||
Issuance of common stock, shares | 4,011,628 | ||||
Stock-based compensation expense | 12,021 | 12,021 | |||
Exercise of common options | 25,144 | 25,144 | |||
Exercise of common options, shares | 401,260 | ||||
Other comprehensive income (loss) | (703) | (703) | |||
Net loss | (76,963) | (76,963) | |||
Ending balance at Sep. 30, 2022 | $ 1,183,955 | $ 3 | $ 1,675,645 | $ (487,995) | $ (3,698) |
Ending balance, shares at Sep. 30, 2022 | 34,345,991 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - Public Offering - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2022 | Jun. 30, 2021 | |
Underwriting discounts and commissions | $ 43,125 | $ 17,250 |
Offering cost | $ 328 | $ 233 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (200,124) | $ (115,845) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 34,789 | 21,491 |
Impairment loss on right-of-use assets | 0 | 677 |
Amortization of premiums and accretion of discounts on investment securities | (327) | 735 |
Depreciation and amortization expense | 807 | 270 |
Changes in operating assets and liabilities: | ||
Accrued interest on investment securities | (399) | 156 |
Accounts receivable | 1,669 | 0 |
Prepaid expenses and other current assets | (5,897) | (8,397) |
Right-of-use assets | 1,322 | 1,004 |
Other non-current assets | 108 | (508) |
Accounts payable | 13,777 | 1,005 |
Accrued expenses | 6,643 | 6,134 |
Operating lease liability | (1,617) | (706) |
Other non-current liabilities | 0 | 104 |
Net cash used in operating activities | (149,249) | (93,880) |
Cash flows from investing activities | ||
Purchases of investment securities | (459,353) | (289,504) |
Maturities of investment securities | 180,199 | 302,149 |
Sales of investment securities | 0 | 8,990 |
Acquisition of property and equipment | (625) | (2,303) |
Net cash provided by investing activities | (279,779) | 19,332 |
Cash flows from financing activities | ||
Proceeds from public offering, net of underwriting discounts and commissions | 819,375 | 270,250 |
Payment of offering costs | (401) | (233) |
Proceeds from exercise of stock options | 31,418 | 3,808 |
Net cash provided by financing activities | 850,392 | 273,825 |
Net (decrease) increase in cash, cash equivalents and restricted cash | 421,364 | 199,277 |
Cash, cash equivalents and restricted cash at beginning of period | 207,214 | 53,205 |
Cash, cash equivalents and restricted cash at end of period | 628,578 | 252,482 |
Supplemental disclosures of cash flows information | ||
Purchases of property and equipment included in accounts payable and accrued expenses | 9 | 499 |
Lease liabilities arising from obtaining right-of-use assets | $ 0 | $ 6,040 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | Note 1. Nature of the Business and Basis of Presentation Description of the Business Karuna Therapeutics, Inc. (the “Company”) was incorporated under the laws of the State of Delaware in July 2009 as Karuna Pharmaceuticals, Inc. and is headquartered in Boston, Massachusetts. In March 2019, the Company changed its name to Karuna Therapeutics, Inc. The Company is an innovative clinical-stage biopharmaceutical company driven to create and deliver transformative medicines for people living with psychiatric and neurological conditions. Since the Company’s inception, it has focused substantially all of its efforts and financial resources on organizing and staffing the Company, acquiring and developing its technology, raising capital, building its intellectual property portfolio, undertaking preclinical studies and clinical trials and providing general and administrative support for these activities. The Company has not generated any product revenue related to its primary business purpose to date and is subject to a number of risks similar to those of other early stage companies, including dependence on key individuals, regulatory approval of products, uncertainty of market acceptance of products, competition from substitute products and larger companies, compliance with government regulations, protection of proprietary technology, dependence on third parties, product liability, the impact of the ongoing and evolving COVID-19 coronavirus pandemic, and the need to obtain adequate additional financing to fund the development of its product candidates. On July 2, 2020, the Company filed an automatically effective registration statement on Form S-3 (the "Registration Statement"), with the Securities and Exchange Commission ("SEC") which registers the offering, issuance and sale of an unspecified amount of common stock, preferred stock, debt securities, warrants and/or units of any combination thereof. On August 9, 2022, the Company completed a follow-on public offering under the Registration Statement and a related prospectus supplement in which it issued and sold 4,011,628 shares of common stock, including full exercise of the underwriters’ over-allotment option to purchase an additional 523,255 shares of common stock, at a public offering price of $ 215 per share. The aggregate net proceeds to the Company from the offering, inclusive of proceeds from the over-allotment exercise, were $ 819.1 million after deducting underwriting discounts and commissions of $ 43.1 million and offering expenses of $ 0.3 million. The Company’s consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities in the ordinary course of business. The Company experienced negative operating cash flows of $ 149.2 million for the nine months ended September 30, 2022 and had an accumulated deficit of $ 488.0 million as of September 30, 2022. The Company expects to continue to generate operating losses for the foreseeable future. The Company expects that its cash, cash equivalents and available-for-sale investments of $ 1,192.0 million as of September 30, 2022 will be sufficient to fund its operating expenses and capital expenditure requirements through at least 12 months from the date of issuance of these consolidated financial statements. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Karuna Securities Corporation, a Massachusetts corporation. All inter-company transactions and balances have been eliminated in consolidation. The accompanying consolidated balance sheet as of September 30, 2022 and the consolidated statements of operations, comprehensive loss, and stockholders’ equity for the three and nine months ended September 30, 2022 and 2021, and the statements of cash flow for the nine months ended September 30, 2022 and 2021 are unaudited. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of September 30, 2022 and the results of its operations for the three and nine months ended September 30, 2022 and 2021 and cash flows for the nine months ended September 30, 2022 and 2021. Certain information and footnote disclosures typically included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited consolidated interim financial statements should be read in conjunction with the Company’s consolidated financial statements as of and for the year ended December 31, 2021. The results for the three and nine months ended September 30, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022, any other interim periods, or any future year or period. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies The significant accounting policies and estimates used in preparation of the consolidated financial statements are described in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2021, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K. During the three and nine months ended September 30, 2022, there were no material changes to the Company’s significant accounting policies. Recently Issued Accounting Pronouncements New pronouncements issued but not effective until after September 30, 2022 are not expected to have a material impact on the Company’s consolidated financial statements. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets and Accrued Expenses | 9 Months Ended |
Sep. 30, 2022 | |
Prepaid Expenses And Other Assets And Accrued Expenses [Abstract] | |
Prepaid Expenses and Other Assets and Accrued Expenses | Note 3. Prepaid Expenses and Other Assets and Accrued Expenses Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, Research and development expenses $ 20,642 $ 18,066 Insurance 3,711 2,364 Other 2,682 708 Total prepaid expenses and other current assets $ 27,035 $ 21,138 The Company also had other non-current assets of $ 0.4 million as of September 30, 2022 and $ 0.5 million as of December 31, 2021. As of September 30, 2022 , other non-current assets consisted of a security deposit of $ 0.4 million and less than $ 0.1 million in prepaid expenses, as well as less than $ 0.1 million in deferred rent. As of December 31, 2021, other non-current assets consisted of a security deposit of $ 0.4 million, $ 0.1 million in prepaid expenses, and less than $ 0.1 million in deferred rent. Accrued expenses consisted of the following (in thousands): September 30, December 31, Research and development expenses $ 11,570 $ 8,316 Payroll and related expenses 8,594 6,989 Professional fees 2,201 543 Other 386 251 Total accrued expenses $ 22,751 $ 16,099 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Note 4. Stockholders’ Equity Preferred Stock On July 2, 2019, in connection with the closing of the Company’s initial public offering of its common stock ("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. Through September 30, 2022 , no preferred stock has been issued. Common Stock As of September 30, 2022 , the Company’s amended and restated Certificate of Incorporation authorized the Company to issue 150,000,000 shares of common stock, $ 0.0001 par value per share. Holders of the common stock are entitled to one vote for each share of common stock held at all meetings of stockholders and written actions in lieu of meetings. The holders of common stock are entitled to receive dividends out of funds legally available, as declared by the board of directors. These dividends are subject to the preferential dividend rights of the holders of the Company’s preferred stock. Through September 30, 2022 , no cash dividends have been declared or paid. As of September 30, 2022 , there were 34,345,991 shares of common stock outstanding. |
Zai License Agreement
Zai License Agreement | 9 Months Ended |
Sep. 30, 2022 | |
Research and Development [Abstract] | |
Zai License Agreement | Note 5. Zai License Agreement Terms of Agreement On November 8, 2021, the Company and Zai Lab (Shanghai) Co., Ltd. ("Zai") entered into a license agreement (the "Zai License Agreement"), pursuant to which the Company granted to Zai the right to exclusively develop, manufacture and commercialize KarXT in Greater China, including mainland China, Hong Kong, Macau, and Taiwan (the “Licensed Territory”). Zai will fund substantially all development, regulatory, and commercialization activities in the Licensed Territory. Under the terms of the Zai License Agreement, the Company received a non-refundable $ 35.0 million upfront payment and payment of certain taxes on its behalf. The Zai License Agreement also provides that the Company is eligible to receive total development and regulatory milestone payments of up to $ 80.0 million, total sales milestone payments of up to $ 72.0 million and low double-digit to high-teens tiered royalties based on annual net sales of KarXT in the Licensed Territory, subject to reduction under specified circumstances. Receipt of sales milestone payments and royalties are not contingent on any further participation by the Company in the development of KarXT in the Licensed Territory. The Zai License Agreement will expire upon the latest of the following dates with respect to the last licensed product in any region in the Licensed Territory: (i) the date of expiration of the last valid claim covering such licensed product in such region, (ii) the date that is a specific period after the date of the first commercial sale of such licensed product in such region and (iii) the expiration date of any regulatory exclusivity for such licensed product in such region. Zai may terminate the Zai License Agreement for convenience, subject to the terms thereto, by providing written notice to the Company, which termination will be effective following a prescribed notice period. In addition, the Company may terminate the Zai License Agreement under specified circumstances if Zai or certain other parties challenge the Company’s patent rights or if Zai or its affiliates fail to complete certain development activities with respect to the licensed product for a specified period of time, subject to specified exceptions. Either party may terminate the Zai License Agreement for the other party’s uncured material breach, with a customary notice and cure period, or insolvency. After termination or expiration, the Company is entitled to retain a worldwide, exclusive, and perpetual license from Zai to exploit the licensed product, which license would be non-exclusive after expiration (but not termination), subject to a reasonable royalty to be agreed by the parties if terminated for the Company’s uncured material breach. Revenue Recognition The Company concluded that the distinct units of account within the agreement are reflective of a vendor-customer relationship and therefore within the scope of ASC 606. Under the provisions of ASC 606, the Company identified one performance obligation. The Company provided an exclusive license to intellectual property, bundled with the associated know-how and certain professional services that are not substantive. Under the terms of the Zai License Agreement, Zai has the sole right to manufacture, or have manufactured, KarXT for use in development and commercialization in the Licensed Territory. At the election of Zai, the Company may supply KarXT to Zai at the fully burdened manufacturing cost plus a specified margin, as defined within the Zai License Agreement. This provision was determined to be an option to acquire additional goods or services at a price that approximates the stand-alone selling price for that good or service, and therefore does not represent a material right, or separate performance obligation, within the context of the Zai License Agreement. For the three and nine months ended September 30, 2022 , the Company recognized less than $ 0.1 million in revenue associated with sales of clinical drug supply to Zai. The Company determined the transaction price of the Zai License Agreement was equal to $ 37.0 million, which includes the upfront fee of $ 35.0 million and payments to taxing authorities on the Company’s behalf. In estimating the stand-alone selling price, the Company determined that there were no significant financing components, noncash consideration or amounts that may be refunded to the customer, and as such the total unconstrained consideration of $ 37.0 million was included in the total transaction price. License of Intellectual Property . The license to the Company's intellectual property represents a distinct performance obligation. The license was transferred to Zai in the fourth quarter of 2021 to satisfy this performance obligation. The Company allocated the full transaction price to the license of the Company's intellectual property and accordingly recognized revenue of $ 37.0 million as license revenue in its Consolidated Statement of Operations for the year ended December 31, 2021. Milestone Payments . The potential development and regulatory milestone payments, as well as sales milestone payments, are paid upon achievement of certain milestones as defined in the Zai License Agreement. For the nine months ended September 30, 2022 , the Company recognized $ 5.3 million in license revenue for certain development milestones and related payments to taxing authorities on the Company's behalf, and recorded $ 0.5 million in foreign tax expense to income tax provision. For the three months ended September 30, 2022 , there was no revenue related to milestone payments recognized pursuant to the Zai License Agreement. For all remaining development and regulatory milestones, which, as of September 30, 2022 , can total up to $ 75 million, it was determined that their achievement is highly dependent on factors outside of the Company's control. These payments have been fully constrained until the Company concludes that achievement of the milestone is probable, and that recognition of revenue related to the milestone will not result in a significant reversal in amounts recognized in future periods, and as such have been excluded from the transaction price. At the end of each subsequent reporting period, the Company will re-evaluate the probability of achievement of each milestone and any related constraint and, if necessary, adjust its estimate of the overall transaction price. As of September 30, 2022, the Company has not recognized any revenue associated with sales milestones. Royalties . Any consideration related to royalties will be recognized if and when the related sales occur, as they were determined to relate predominantly to the license granted to Zai and, therefore, have also been excluded from the transaction price. No royalty revenue was recognized during the three and nine months ended September 30, 2022. There was no deferred revenue as of September 30, 2022 or December 31, 2021 related to the Zai License Agreement. |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 6. Net Loss per Share The following table sets forth the computation of basic and diluted net loss per share of common stock for the three and nine months ended September 30, 2022 and 2021 (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Net Loss $ ( 76,963 ) $ ( 50,932 ) $ ( 200,124 ) $ ( 115,845 ) Weighted-average shares used in computing net loss per share 32,349,111 29,572,289 30,693,117 28,953,654 Net loss per share, basic and diluted $ ( 2.38 ) $ ( 1.72 ) $ ( 6.52 ) $ ( 4.00 ) The Company’s potentially dilutive securities, which consist of stock options, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. 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. Common Stock Equivalents As of September 30, 2022 and 2021 , stock options to purchase 5,561,493 and 5,231,877 shares of common stock, respectively, have been excluded from the calculation of diluted net loss per share because including them would have had an anti-dilutive impact. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Note 7. Stock-based Compensation Stock Options In September 2009, the Company’s board of directors approved the 2009 Stock Incentive Plan (the “2009 Plan”) which provided for the grant of incentive stock options to employees and non-statutory stock options to directors, consultants, and non-employees of the Company. The 2009 Plan terminated in July 2019 effective upon the completion of the Company’s IPO. No additional options will be granted under the 2009 Plan. As of September 30, 2022 , there were 2,200,143 options outstanding under the 2009 Plan. In May 2019, the Company’s board of directors approved the 2019 Stock Option and Incentive Plan (the “2019 Plan”) which became effective on June 26, 2019, the date immediately prior to the date on which the registration statement related to the IPO was declared effective by the SEC. The 2019 Plan will expire in May 2029 . Under the 2019 Plan, the Company may grant incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units ("RSUs") and other stock-based awards. There were 1,709,832 shares of the Company’s common stock initially reserved for issuance under the 2019 Plan. The number of shares of common stock underlying awards that expire, or are terminated, surrendered, canceled or forfeited without having been fully exercised under the 2009 Plan will be added to the shares of common stock available for issuance under the 2019 Plan. In addition, the number of shares of common stock that may be issued under the 2019 Plan automatically increases on January 1 of each calendar year, commencing on January 1, 2020, by 4 % of the number of shares of common stock outstanding on the immediately preceding December 31 or such lesser amount determined by the Company’s board of directors or the compensation committee of the board of directors. As of September 30, 2022 , there were 1,795,714 common shares available for issuance and 3,361,350 options outstanding under the 2019 Plan. Options under the 2019 Plan generally vest based on the grantee’s continued service with the Company during a specified period following a grant as determined by the board of directors and expire ten years from the grant date. Awards typically vest in four years , but vesting conditions can vary based on the discretion of the Company’s board of directors. A summary of the Company’s stock option activity and related information is as follows: Number of Weighted- Weighted- Aggregate Outstanding as of December 31, 2021 5,323,162 $ 50.04 7.7 $ 431,456 Granted 880,935 117.39 Exercised ( 563,805 ) 55.73 Forfeited ( 78,799 ) 111.47 Outstanding as of September 30, 2022 5,561,493 $ 59.26 7.4 $ 922,209 Options vested and expected to vest as of 5,561,493 $ 59.26 7.4 $ 922,209 Options exercisable as of September 30, 2022 3,477,569 $ 28.44 6.5 $ 683,325 The aggregate intrinsic values of options outstanding, exercisable, vested and expected to vest were calculated as the difference between the exercise price of the options and the publicly traded stock price of the Company’s common stock as of September 30, 2022. As of September 30, 2022 , there was $ 119.0 million of unrecognized compensation cost, which is expected to be recognized over a weighted-average period of 2.8 years. Stock-based Compensation Expense Stock-based compensation expense is classified in the statements of operations for the three and nine months ended September 30, 2022 and 2021 as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 General and administrative $ 6,590 $ 4,996 $ 19,649 $ 13,388 Research and development 5,431 3,207 15,140 8,103 Total stock-based compensation expense $ 12,021 $ 8,203 $ 34,789 $ 21,491 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Fair Value of Financial Assets and Liabilities | Note 8. Fair Value of Financial Assets and Liabilities The following tables present information about the Company’s assets as of September 30, 2022 and December 31, 2021 that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands): Fair Value Measurement at September 30, 2022 Using Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 491,962 $ — $ — $ 491,962 Commercial paper 126,314 — — 126,314 Investment securities: US Treasuries 275,848 — — 275,848 US government agencies 107,710 — — 107,710 Corporate debt securities — 40,681 — 40,681 Commercial paper — 139,478 — 139,478 Total $ 1,001,834 $ 180,159 $ — $ 1,181,993 Fair Value Measurement at December 31, 2021 Using Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 199,019 $ — $ — $ 199,019 Investment securities: U.S. Treasuries 100,043 — — 100,043 Corporate debt securities — 55,744 — 55,744 Commercial paper — 131,251 — 131,251 Total $ 299,062 $ 186,995 $ — $ 486,057 The fair values of the Company’s commercial paper and corporate debt securities are based on prices obtained from independent pricing sources. Securities with validated quotes from pricing services are reflected within Level 2, as they are primarily based on observable pricing for similar assets or other market observable inputs. Typical inputs used by these pricing services include, but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers or estimates of cash flow, prepayment spreads and default rates. The Company does not hold any securities classified as Level 3, which are securities valued using unobservable inputs. The Company has not transferred any investment securities between the classification levels. The estimated fair value and amortized cost of the Company’s available-for-sale investments, by contractual maturity and security type, are summarized as follows (in thousands): September 30, 2022 Amortized Unrealized Unrealized Fair Value US Treasuries (due within one year) $ 210,067 $ 15 $ ( 1,950 ) $ 208,132 US Treasuries (due after one year and less than three years) 68,777 — ( 1,061 ) 67,716 US government agencies (due within one year) 90,980 12 ( 105 ) 90,887 US government agencies (due after one year and less than two years) 16,855 3 ( 35 ) 16,823 Corporate debt securities (due within one year) 40,948 — ( 267 ) 40,681 Commercial paper (due within one year) 139,788 — ( 310 ) 139,478 Total $ 567,415 $ 30 $ ( 3,728 ) $ 563,717 December 31, 2021 Amortized Unrealized Unrealized Fair Value U.S. Treasuries (due within one year) $ 15,137 $ — $ ( 12 ) $ 15,125 U.S. Treasuries (due after one year and less than two years) 85,277 — ( 359 ) 84,918 Corporate debt securities (due within one year) 45,510 — ( 57 ) 45,453 Corporate debt securities (due after one year and less than two years) 10,338 — ( 47 ) 10,291 Commercial paper (due within one year) 131,273 5 ( 27 ) 131,251 Total $ 287,535 $ 5 $ ( 502 ) $ 287,038 The Company has classified all of its available-for-sale investment securities, including those with maturities beyond one year, as current assets on its condensed consolidated balance sheets based on the highly liquid nature of the investment securities and because these investment securities are considered available for use in current operations. The Company is required to determine whether a decline in the fair value below the amortized cost basis of available-for-sale securities is due to credit-related factors. At each reporting date, the Company performs an evaluation of impairment to determine if any unrealized losses are the result of credit losses. Impairment is assessed at the individual security level. Factors considered in determining whether a loss resulted from a credit loss or other factors include the Company’s intent and ability to hold the investment until the recovery of its amortized cost basis, the extent to which the fair value is less than the amortized cost basis, the length of time and extent to which fair value has been less than the cost basis, the financial condition of the issuer, any historical failure of the issuer to make scheduled interest or principal payments, any changes to the rating of the security by a rating agency, any adverse legal or regulatory events affecting the issuer or issuer’s industry, and any significant deterioration in economic conditions. Unrealized losses on available-for-sale securities presented in the previous table have not been recognized in the consolidated statements of operations because the securities are high credit quality, investment grade securities that the Company does not intend to sell and will not be required to sell prior to their anticipated recovery, and the decline in fair value is attributable to factors other than credit losses. Based on its evaluation, the Company determined its year-to-date credit losses related to its available-for-sale securities were immaterial at September 30, 2022 and December 31, 2021 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9. Commitments and Contingencies Leases The Company entered into an agreement to lease approximately 7,050 square feet of office space in Boston, Massachusetts (“Arch Street Original Premises”) that began in December 2018 and had an original expiry in February 2023 . In January 2020, the Company entered into an amended agreement (“Amended Arch Street Lease Agreement”) to gain access to approximately 4,175 square feet of additional office space (“Arch Street Expansion Premises”) beginning in March 2020, and to extend the maturity of the agreement for the Arch Street Original Premises to December 2023 . The Amended Arch Street Lease Agreement provides for future minimum annual rental payments as defined within the agreement. Under the terms of the Amended Arch Street Lease Agreement, the Company is required to maintain a cash balance of $ 0.2 million to secure a letter of credit associated with this lease. The amount was classified as restricted cash in the consolidated balance sheets as of September 30, 2022 and December 31, 2021 . The Amended Arch Street Lease Agreement also provides for approximately $ 0.1 million in leasehold incentives which may be applied to base rent or improvements to the Arch Street Expansion Premises, subject to limitations. The Company determined the Amended Arch Street Lease Agreement represented a lease modification, and the Arch Street Original Premises and Arch Street Expansion Premises were identified as separate lease components. The extension of maturity with respect to the Arch Street Original Premises was treated as a modification not accounted for as a separate contract, in which the lease classification was reassessed, and the lease liability was remeasured. The effect of the remeasurement, in the amount of $ 0.4 million, was recorded as an adjustment to the right-of-use (“ROU”) lease asset as of February 1, 2020, the effective date of the modification. The addition of the Arch Street Expansion Premises was accounted for as a separate contract which granted the Company an additional right of use not included in the original lease, in which the lease payments increased commensurate with the standalone price for the additional right of use. As the leasehold incentives were not paid or payable at commencement, the Company will account for the incentives once the contingency is resolved. In February 2020, the Company entered into an agreement to lease approximately 5,050 square feet of office space, and furniture within the office space, in Carmel, Indiana (“Indiana Lease Agreement”), which began in June 2020 and expires in July 2023 , with the option to renew for an additional three-year term. In addition, the agreement provides an option to purchase the office furniture at the expiration of the agreement. The office space and office furniture within the Indiana Lease Agreement were each determined to represent separate lease components. Consideration for the contract was allocated to each lease component based on their relative stand-alone selling price. The options to renew the lease for an additional three-year term as well as purchase the office furniture at the expiration of the agreement were excluded from the determination of lease liabilities arising from obtaining the ROU assets, as they were not considered probable of being exercised at commencement. In March 2021, the Company entered into an agreement (“High Street Lease”) to sublease from a third party approximately 25,445 square feet of office space in Boston, Massachusetts, beginning on April 1, 2021 and expiring December 31, 2025 . The initial fixed rental rate is $ 60 per rentable square foot of the premises per annum and will increase at a rate of $ 1 per rentable square foot each year, with base rent first becoming due on July 1, 2021 . Upon signing of the High Street Lease, the Company was also required to pay the first full monthly installment of base rent of $ 0.1 million and a security deposit of $ 0.4 million. The security deposit was recorded within other non-current assets on the consolidated balance sheets as of September 30, 2022 and December 31, 2021. The first monthly installment was included as an adjustment to the ROU asset recognized upon commencement of the lease. The Company recognized an ROU asset and corresponding lease liability of approximately $ 6.2 million and $ 6.0 million, respectively, on its consolidated balance sheet as of April 1, 2021, upon commencement of the High Street Lease. For each of the lease agreements entered into or modified, the Company identified certain non-lease components. Lease and non-lease components were combined into a single lease component. In addition, all identified leases were assessed as operating leases. As the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a term equal to the lease payments in a similar economic environment, in determining the present value of lease payments for each identified lease at the lease commencement date. Simultaneous with the High Street Lease, the Company entered into an agreement (“Arch Street Original Premises Sublease”) to sublease approximately 7,050 square feet of its former Arch Street Boston headquarters to a third party from July 1, 2021 through the remainder of its current lease term, which ends on December 31, 2023 . The initial fixed rental rate is $ 59 per rentable square foot of the premises per annum, and will increase at a rate of 2 % per year, with base rent first becoming due on October 1, 2021. Upon signing of the Arch Street Original Premises Sublease, the agreement required a security deposit of $ 0.1 million which has been recorded within restricted cash on the consolidated balance sheet as of September 30, 2022. On April 30, 2021, the Company entered into an agreement ("First Expansion Premises Sublease") to sublease approximately 1,751 square feet of the Arch Street Expansion Premises to another third party from June 1, 2021 through the remainder of its current lease term, which ends on December 31, 2023 . The initial fixed rental rate is $ 61 per rentable square foot per annum and will increase at a rate of 2 % per year, with base rent commencing on June 1, 2021. On January 21, 2022, the Company entered into an agreement ("Second Expansion Premises Sublease") to sublease approximately 2,422 square feet of its Arch Street Expansion Premises to a third party from February 7, 2022 through the remainder of its current lease term, which ends on December 31, 2023 . The fixed rental rate is $ 45 per rentable square foot per annum, with base rent commencing on April 7, 2022. The components of lease cost were as follows (dollar amounts in thousands): Nine Months Ended 2022 2021 Lease Cost Operating lease cost $ 1,613 $ 1,288 Short-term lease cost — — Sublease income ( 433 ) ( 131 ) Total lease cost $ 1,180 $ 1,157 Other Information Cash paid for amounts included in the measurement of lease liabilities $ 1,908 $ 991 Operating lease liabilities arising from obtaining right-of-use assets — 6,040 Weighted-average remaining lease term 2.85 years 3.72 years Weighted-average discount rate 5.88 % 5.90 % The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities and a reconciliation to present value of lease liabilities as of September 30, 2022 (in thousands): Year ended: December 31, 2022 $ 639 December 31, 2023 2,520 December 31, 2024 1,597 December 31, 2025 1,622 Total future minimum lease payments 6,378 Less imputed interest ( 492 ) Present value of lease liabilities $ 5,886 The following summarizes the annual undiscounted cash flows to be received from subleases as of September 30, 2022 (in thousands): Year ended: December 31, 2022 $ 160 December 31, 2023 648 Total future sublease payments to be received $ 808 Historically, all Company assets and liabilities belonged to a single corporate office asset group. The circumstances described above triggered a reassessment of asset grouping, such that the ROU assets associated with the Arch Street Original Premises and Arch Street Expansion Premises had their own separately identifiable cash flows and therefore their own separate asset grouping. Sublease income associated with the Arch Street office space is projected to be lower than lease payments owed by the Company for this space, and therefore impairment was indicated for this new asset group. The carrying value of these ROU assets immediately before impairment was $ 2.0 million, and the fair value of these operating lease ROU assets immediately subsequent to the impairment, calculated as the present value of the estimated future cash flows attributable to the assets, was $ 1.3 million. The Company recognized approximately $ 0.7 million in impairment losses on ROU assets within other income (loss) on the statement of operations for the nine months ended September 30, 2021. Intellectual Property License with Eli Lilly and Company In May 2012, the Company entered into an exclusive license agreement (the “Lilly License Agreement”), with Eli Lilly and Company (“Eli Lilly”), pursuant to which Eli Lilly assigned to the Company all of its rights to certain patents (now expired), regulatory documentation, data records and materials related to xanomeline. The Company is also entitled to sublicense or otherwise transfer the rights granted in connection with the Lilly License Agreement. Under the Lilly License Agreement, the Company is obligated to use commercially reasonable efforts to develop, manufacture, commercialize and seek and maintain regulatory approval for xanomeline, in any formulation, for use in humans. The Company paid Eli Lilly an upfront payment of $ 0.1 million and has agreed to make milestone payments to Eli Lilly of up to an aggregate of $ 16 million upon the achievement of specified regulatory milestones and up to an aggregate of $ 54 million in commercial milestones. In addition, the Company is obligated to pay Eli Lilly tiered royalties, at rates in the low to mid single-digit percentages, on the worldwide net sales of any commercialized product on a country-by-country basis until the expiration of the applicable royalty term, which is the longer of six years from the date of first commercial sale of each licensed product within a country or data package exclusivity in such country. During the royalty term, Eli Lilly is prohibited from granting any third party rights to the patents, regulatory documentation, data records and materials that have been licensed to the Company under the Lilly License Agreement. The Lilly License Agreement will expire on the later of (i) the expiration of the last-to-expire royalty term on a licensed product-by-licensed product basis or (ii) the date on which the Company has made all milestone payments pursuant to the terms of the Lilly License Agreement, unless terminated earlier by the parties. In no event will the term of the Lilly License Agreement exceed 15 years past the anniversary of the first commercial sale of a xanomeline product. The Company may terminate the Lilly License Agreement for any reason with proper prior notice to Eli Lilly. Either party may terminate the Lilly License Agreement upon an uncured material breach by the other party. The initial upfront payment of $ 0.1 million was expensed when incurred in May 2012. As of September 30, 2022 , no regulatory or commercial milestones have been reached and, accordingly, no milestone payments have been made. Intellectual Property License with PureTech Health In March 2011, the Company entered into an exclusive license agreement (the “Patent License Agreement”) with PureTech Health, pursuant to which PureTech Health granted the Company an exclusive license to patent rights relating to combinations of a muscarinic activator with a muscarinic inhibitor for the treatment of central nervous system disorders. In connection with the Patent License Agreement, the Company has agreed to make milestone payments to PureTech Health of up to an aggregate of $ 10 million upon the achievement of specified development and regulatory milestones. In addition, the Company is obligated to pay PureTech Health low single-digit royalties on the worldwide net sales of any commercialized product covered by the licenses granted under the Patent License Agreement. In the event that the Company sublicenses any of the patent rights granted under the Patent License Agreement, the Company will be obligated to pay PureTech Health royalties within the range of 15 % to 25 % on any income the Company receives from the sublicensee, excluding royalties. The Company may terminate the Patent License Agreement for any reason with proper prior notice to PureTech Health. Either party may terminate the Patent License Agreement upon an uncured material breach by the other party. During the year ended December 31, 2021, the Company paid less than $ 0.1 million in sublicense income associated with the Zai License Agreement to PureTech Health. In December 2020, the Company paid $ 2.0 million to PureTech Health, having reached the milestone of Phase 3 clinical trial commencement. As of September 30, 2022 , the remaining development and regulatory milestone payments under the Patent License Agreement total up to $ 8.0 million. The Company had no outstanding liabilities to PureTech Health related to the Patent License Agreement as of September 30, 2022 and December 31, 2021. Indemnification In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may incur charges in the future as a result of these indemnification obligations. Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated. Litigation The Company is no t a party to any litigation and does not have contingency reserves established for any litigation liabilities as of September 30, 2022 . |
401(k) Savings Plan
401(k) Savings Plan | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
401(k) Savings Plan | Note 10. 401(k) Savings Plan The Company has a 401(k) retirement plan in which substantially all U.S. employees are eligible to participate. Eligible employees may elect to contribute up to the maximum limits, as set by the Internal Revenue Service, of their eligible compensation. The total contribution expense for the Company was $ 0.7 million and $ 0.4 million for the nine months ended September 30, 2022 and 2021 , respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASUs”) of the Financial Accounting Standards Board (“FASB”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Karuna Securities Corporation, a Massachusetts corporation. All inter-company transactions and balances have been eliminated in consolidation. The accompanying consolidated balance sheet as of September 30, 2022 and the consolidated statements of operations, comprehensive loss, and stockholders’ equity for the three and nine months ended September 30, 2022 and 2021, and the statements of cash flow for the nine months ended September 30, 2022 and 2021 are unaudited. The unaudited interim consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of September 30, 2022 and the results of its operations for the three and nine months ended September 30, 2022 and 2021 and cash flows for the nine months ended September 30, 2022 and 2021. Certain information and footnote disclosures typically included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited consolidated interim financial statements should be read in conjunction with the Company’s consolidated financial statements as of and for the year ended December 31, 2021. The results for the three and nine months ended September 30, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022, any other interim periods, or any future year or period. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements New pronouncements issued but not effective until after September 30, 2022 are not expected to have a material impact on the Company’s consolidated financial statements. |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets and Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Prepaid Expenses And Other Assets And Accrued Expenses [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, Research and development expenses $ 20,642 $ 18,066 Insurance 3,711 2,364 Other 2,682 708 Total prepaid expenses and other current assets $ 27,035 $ 21,138 |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): September 30, December 31, Research and development expenses $ 11,570 $ 8,316 Payroll and related expenses 8,594 6,989 Professional fees 2,201 543 Other 386 251 Total accrued expenses $ 22,751 $ 16,099 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share of Common Stock | The following table sets forth the computation of basic and diluted net loss per share of common stock for the three and nine months ended September 30, 2022 and 2021 (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Net Loss $ ( 76,963 ) $ ( 50,932 ) $ ( 200,124 ) $ ( 115,845 ) Weighted-average shares used in computing net loss per share 32,349,111 29,572,289 30,693,117 28,953,654 Net loss per share, basic and diluted $ ( 2.38 ) $ ( 1.72 ) $ ( 6.52 ) $ ( 4.00 ) |
Stock-based Compensation (Tabl
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity and related information is as follows: Number of Weighted- Weighted- Aggregate Outstanding as of December 31, 2021 5,323,162 $ 50.04 7.7 $ 431,456 Granted 880,935 117.39 Exercised ( 563,805 ) 55.73 Forfeited ( 78,799 ) 111.47 Outstanding as of September 30, 2022 5,561,493 $ 59.26 7.4 $ 922,209 Options vested and expected to vest as of 5,561,493 $ 59.26 7.4 $ 922,209 Options exercisable as of September 30, 2022 3,477,569 $ 28.44 6.5 $ 683,325 |
Summary of Stock-based Compensation Expense | Stock-based compensation expense is classified in the statements of operations for the three and nine months ended September 30, 2022 and 2021 as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 General and administrative $ 6,590 $ 4,996 $ 19,649 $ 13,388 Research and development 5,431 3,207 15,140 8,103 Total stock-based compensation expense $ 12,021 $ 8,203 $ 34,789 $ 21,491 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |
Schedule of Fair Value Measurement on Recurring Basis and Indicates the level of Fair Value Hierarchy Utilized | The following tables present information about the Company’s assets as of September 30, 2022 and December 31, 2021 that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands): Fair Value Measurement at September 30, 2022 Using Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 491,962 $ — $ — $ 491,962 Commercial paper 126,314 — — 126,314 Investment securities: US Treasuries 275,848 — — 275,848 US government agencies 107,710 — — 107,710 Corporate debt securities — 40,681 — 40,681 Commercial paper — 139,478 — 139,478 Total $ 1,001,834 $ 180,159 $ — $ 1,181,993 Fair Value Measurement at December 31, 2021 Using Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 199,019 $ — $ — $ 199,019 Investment securities: U.S. Treasuries 100,043 — — 100,043 Corporate debt securities — 55,744 — 55,744 Commercial paper — 131,251 — 131,251 Total $ 299,062 $ 186,995 $ — $ 486,057 |
Summary of Estimated Fair Value and Amortized Cost of Available-for-Sale Investments by Contractual Maturity | The estimated fair value and amortized cost of the Company’s available-for-sale investments, by contractual maturity and security type, are summarized as follows (in thousands): September 30, 2022 Amortized Unrealized Unrealized Fair Value US Treasuries (due within one year) $ 210,067 $ 15 $ ( 1,950 ) $ 208,132 US Treasuries (due after one year and less than three years) 68,777 — ( 1,061 ) 67,716 US government agencies (due within one year) 90,980 12 ( 105 ) 90,887 US government agencies (due after one year and less than two years) 16,855 3 ( 35 ) 16,823 Corporate debt securities (due within one year) 40,948 — ( 267 ) 40,681 Commercial paper (due within one year) 139,788 — ( 310 ) 139,478 Total $ 567,415 $ 30 $ ( 3,728 ) $ 563,717 December 31, 2021 Amortized Unrealized Unrealized Fair Value U.S. Treasuries (due within one year) $ 15,137 $ — $ ( 12 ) $ 15,125 U.S. Treasuries (due after one year and less than two years) 85,277 — ( 359 ) 84,918 Corporate debt securities (due within one year) 45,510 — ( 57 ) 45,453 Corporate debt securities (due after one year and less than two years) 10,338 — ( 47 ) 10,291 Commercial paper (due within one year) 131,273 5 ( 27 ) 131,251 Total $ 287,535 $ 5 $ ( 502 ) $ 287,038 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of Lease Cost | The components of lease cost were as follows (dollar amounts in thousands): Nine Months Ended 2022 2021 Lease Cost Operating lease cost $ 1,613 $ 1,288 Short-term lease cost — — Sublease income ( 433 ) ( 131 ) Total lease cost $ 1,180 $ 1,157 Other Information Cash paid for amounts included in the measurement of lease liabilities $ 1,908 $ 991 Operating lease liabilities arising from obtaining right-of-use assets — 6,040 Weighted-average remaining lease term 2.85 years 3.72 years Weighted-average discount rate 5.88 % 5.90 % |
Schedule of Maturity Analysis of Annual Undiscounted Cash Flows of Operating Lease Liabilities and Reconciliation to Present Value of Lease Liabilities | The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liabilities and a reconciliation to present value of lease liabilities as of September 30, 2022 (in thousands): Year ended: December 31, 2022 $ 639 December 31, 2023 2,520 December 31, 2024 1,597 December 31, 2025 1,622 Total future minimum lease payments 6,378 Less imputed interest ( 492 ) Present value of lease liabilities $ 5,886 |
Summary of Annual Undiscounted Cash Flows To Be Received from Subleases | The following summarizes the annual undiscounted cash flows to be received from subleases as of September 30, 2022 (in thousands): Year ended: December 31, 2022 $ 160 December 31, 2023 648 Total future sublease payments to be received $ 808 |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Aug. 09, 2022 | Sep. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Subsidiary Sale Of Stock [Line Items] | ||||||
Net proceeds from public offering | $ 819,100 | |||||
Underwriting discounts and commissions | 43,100 | |||||
Payment of offering costs | $ 300 | $ 401 | $ 233 | |||
Common stock value | $ 3 | 3 | $ 3 | |||
Deferred offering costs | 528 | 528 | 455 | |||
Cash flows from operating activities | 149,249 | $ 93,880 | ||||
Accumulated deficit | 487,995 | 487,995 | $ 287,871 | |||
Cash and cash equivalents and available-for-sale investments | $ 1,192,000 | $ 1,192,000 | ||||
Common Stock | ||||||
Subsidiary Sale Of Stock [Line Items] | ||||||
Shares issued and sold | 4,011,628 | 4,011,628 | 2,395,834 | |||
Purchase of Additional Shares | 523,255 | |||||
Initial Public Offering | ||||||
Subsidiary Sale Of Stock [Line Items] | ||||||
Public offering price pre share | $ 215 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets and Accrued Expenses - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Research and development expenses | $ 20,642 | $ 18,066 |
Insurance | 3,711 | 2,364 |
Other | 2,682 | 708 |
Total prepaid expenses and other current assets | $ 27,035 | $ 21,138 |
Prepaid Expenses and Other As_4
Prepaid Expenses and Other Assets and Accrued Expenses - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other non-current assets | $ 423 | $ 531 |
Prepaid research and development expenses | 100 | 100 |
Security deposit | 400 | 400 |
Deferred rent | $ 100 | $ 100 |
Prepaid Expenses and Other As_5
Prepaid Expenses and Other Assets and Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Research and development expenses | $ 11,570 | $ 8,316 |
Payroll and related expenses | 8,594 | 6,989 |
Professional fees | 2,201 | 543 |
Other | 386 | 251 |
Total accrued expenses | $ 22,751 | $ 16,099 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Jul. 02, 2019 | |
Class Of Stock [Line Items] | |||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common Stock, Shares, Outstanding | 34,345,991 | 29,770,558 | |
Common stock, shares authorized | 150,000,000 | 150,000,000 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | |
Dividends declared | $ 0 | ||
Initial Public Offering | |||
Class Of Stock [Line Items] | |||
Preferred stock, shares authorized | 10,000,000 | ||
Preferred stock, par value | $ 0.0001 | ||
Preferred Stock, Shares Issued | 0 |
Zai License Agreement (Addition
Zai License Agreement (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Nov. 08, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
License revenue | $ 81 | $ 0 | $ 5,359 | $ 0 | ||
Zai License Agreement [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Upfront Payment for License Agreement | $ 35,000 | |||||
Development and Regulatory Milestone Payments Under License Agreement | 80,000 | 75,000 | ||||
Sales Milestone Payments Under License Agreement | 72,000 | |||||
Transaction Price of License Agreement | 37,000 | |||||
Initial payment | $ 35,000 | |||||
License revenue | 0 | 5,300 | ||||
Other Revenue | 100 | 100 | ||||
Deferred revenue | 0 | 0 | $ 0 | |||
Zai License Agreement [Member] | Intellectual Property License Agreement [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
License revenue | $ 37,000 | |||||
Zai License Agreement [Member] | General and Administrative Expense [Member] | ||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||
Income tax provision Include Foreign Tax Expenses | $ 0 | $ 500 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Computation of Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||||
Net Loss | $ (76,963) | $ (50,932) | $ (123,161) | $ (64,913) | $ (200,124) | $ (115,845) |
Weighted-average shares used in computing net loss per share, Basic | 32,349,111 | 29,572,289 | 30,693,117 | 28,953,654 | ||
Weighted-average shares used in computing net loss per share, Diluted | 32,349,111 | 29,572,289 | 30,693,117 | 28,953,654 | ||
Net loss per share, basic | $ (2.38) | $ (1.72) | $ (6.52) | $ (4) | ||
Net loss per share, diluted | $ (2.38) | $ (1.72) | $ (6.52) | $ (4) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Employee Stock Option | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share, amount | 5,561,493 | 5,231,877 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | May 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares outstanding | 5,561,493 | 5,323,162 | ||
Share based compensation arrangement by share based payment award termination date | Jul. 02, 2019 | |||
Unrecognized compensation cost | $ 119 | |||
Unrecognized compensation costs, weighted average recognition period | 2 years 9 months 18 days | |||
2009 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares outstanding | 2,200,143 | |||
2019 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate common shares issuable | 1,795,714 | |||
Number of shares outstanding | 3,361,350 | |||
Common stock reserved for future issuance | 1,709,832 | |||
Automatic increase in stock issuance as percentage on outstanding stock | 4% | |||
Stock option and incentive plan expiration month and year | 2029-05 | |||
Expiration period | 10 years | |||
Vesting period | 4 years |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Compensation Related Costs [Abstract] | ||
Number of Shares, Outstanding, beginning of period | shares | 5,323,162 | |
Number of Shares, Granted | shares | 880,935 | |
Number of Shares, Exercised | shares | (563,805) | |
Number of Shares, Forfeited | shares | (78,799) | |
Number of Shares, Outstanding, end of period | shares | 5,561,493 | 5,323,162 |
Number of Shares, Options vested and expected to vest | shares | 5,561,493 | |
Number of Shares, Options exercisable | shares | 3,477,569 | |
Weighted-Average Exercise Price Per Share, Outstanding, beginning of period | $ / shares | $ 50.04 | |
Weighted-Average Exercise Price Per Share, Outstanding, Granted | $ / shares | 117.39 | |
Weighted-Average Exercise Price Per Share, Outstanding, Exercised | $ / shares | 55.73 | |
Weighted-Average Exercise Price Per Share, Outstanding, Forfeited | $ / shares | 111.47 | |
Weighted-Average Exercise Price Per Share, Outstanding, end of period | $ / shares | 59.26 | $ 50.04 |
Weighted-Average Exercise Price Per Share, Options vested and expected to vest | $ / shares | 59.26 | |
Weighted-Average Exercise Price Per Share, Options exercisable | $ / shares | $ 28.44 | |
Weighted-Average Remaining Contractual Term, Outstanding (Years) | 7 years 4 months 24 days | 7 years 8 months 12 days |
Weighted-Average Remaining Contractual Term, Options vested and expected to vest | 7 years 4 months 24 days | |
Weighted-Average Remaining Contractual Term, Options exercisable | 6 years 6 months | |
Aggregate Intrinsic Value, Outstanding | $ | $ 922,209 | $ 431,456 |
Aggregate Intrinsic Value, Options vested and expected to vest | $ | 922,209 | |
Aggregate Intrinsic Value, Options exercisable | $ | $ 683,325 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock based compensation expense | $ 12,021 | $ 8,203 | $ 34,789 | $ 21,491 |
General and Administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock based compensation expense | 6,590 | 4,996 | 19,649 | 13,388 |
Research and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock based compensation expense | $ 5,431 | $ 3,207 | $ 15,140 | $ 8,103 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Schedule of Fair Value Measurement on Recurring Basis and Indicates the level of Fair Value Hierarchy Utilized (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value assets | $ 1,181,993 | $ 486,057 |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 40,681 | 55,744 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 491,962 | 199,019 |
US Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 275,848 | 100,043 |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 126,314 | |
Investment securities | 139,478 | 131,251 |
US Government Agencies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 107,710 | |
Fair Value, Inputs, Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | |
Total fair value assets | 1,001,834 | 299,062 |
Fair Value, Inputs, Level 1 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 491,962 | 199,019 |
Fair Value, Inputs, Level 1 | US Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 275,848 | 100,043 |
Fair Value, Inputs, Level 1 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 126,314 | |
Investment securities | 0 | |
Fair Value, Inputs, Level 1 | US Government Agencies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 107,710 | |
Fair Value, Inputs, Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value assets | 180,159 | 186,995 |
Fair Value, Inputs, Level 2 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 40,681 | 55,744 |
Fair Value, Inputs, Level 2 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Inputs, Level 2 | US Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Inputs, Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Investment securities | 139,478 | 131,251 |
Fair Value, Inputs, Level 2 | US Government Agencies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | |
Fair Value, Inputs, Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | |
Total fair value assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair Value, Inputs, Level 3 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Inputs, Level 3 | US Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | $ 0 |
Fair Value, Inputs, Level 3 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Investment securities | 0 | |
Fair Value, Inputs, Level 3 | US Government Agencies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | $ 0 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Summary of Estimated Fair Value and Amortized Cost of Available-for-Sale Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 567,415 | $ 287,535 |
Available For Sale Securities Accumulated Gross Unrealized Gains Before Tax | 30 | 5 |
Available For Sale Securities Accumulated Gross Unrealized Losses Before Tax | (3,728) | (502) |
Fair Value | 563,717 | 287,038 |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Due within in one year, Amortized cost | 40,948 | 45,510 |
Due within one year, Amortized cost, Unrealized gains | 0 | 0 |
Due within one year , Amortized cost, Unrealized losses | (267) | (57) |
Due in one year or less, Fair value | 40,681 | 45,453 |
Due after one year and less than two years, Amortized cost | 10,338 | |
Due after one year and less than two years, Amortized cost, Unrealized gains | 0 | |
Due after one year and less than two years, Amortized cost, Unrealized losses | (47) | |
Due after one year and less than two years, Fair value | 10,291 | |
US Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Due after one year and less than two years, Amortized cost | 85,277 | |
Due after one year and less than three years, Amortized cost | 68,777 | |
Due after one year and less than two years, Amortized cost, Unrealized losses | (359) | |
Due after one year and less than three years, Amortized cost, Unrealized losses | 1,061 | |
Due after one year and less than two years, Fair value | 84,918 | |
Due after one year and less than three years, Fair value | 67,716 | |
Due within in one year, Amortized cost | 210,067 | 15,137 |
Due within one year, Amortized cost, Unrealized gains | 15 | 0 |
Due within one year, Amortized cost, Unrealized losses | (1,950) | (12) |
Due in one year or less, Fair value | 208,132 | 15,125 |
Due after one year and less than two years, Amortized cost, Unrealized gains | 0 | |
Due after one year and less than three years, Amortized cost, Unrealized gains | 0 | |
US Government Agencies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Due within in one year, Amortized cost | 90,980 | |
Due within one year, Amortized cost, Unrealized gains | 12 | |
Due within one year, Amortized cost, Unrealized losses | (105) | |
Due in one year or less, Fair value | 90,887 | |
Due after one year and less than two years, Amortized cost | 16,855 | |
Due after one year and less than two years, Amortized cost, Unrealized gains | 3 | |
Due after one year and less than two years, Amortized cost, Unrealized losses | 35 | |
Due after one year and less than two years, Fair value | 16,823 | |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Due within in one year, Amortized cost | 139,788 | 131,273 |
Due within one year, Amortized cost, Unrealized gains | 0 | 5 |
Due within one year , Amortized cost, Unrealized losses | (310) | (27) |
Due in one year or less, Fair value | $ 139,478 | $ 131,251 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Jan. 21, 2022 ft² $ / ft² | Apr. 30, 2021 ft² $ / ft² | Mar. 31, 2021 ft² $ / ft² | Feb. 29, 2020 Milestone | Jan. 31, 2020 Milestone | May 31, 2012 USD ($) | Mar. 31, 2011 USD ($) | Sep. 30, 2022 USD ($) ft² | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) ft² Milestone $ / ft² | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 | Apr. 01, 2021 USD ($) | Feb. 01, 2020 USD ($) | |
Commitments And Contingencies [Line Items] | ||||||||||||||||
Restricted cash | $ 261 | $ 261 | $ 261 | |||||||||||||
Operating lease liability remeasurement amount | $ 400 | |||||||||||||||
Security deposit | 400 | 400 | 400 | |||||||||||||
Right of use assets, net | 5,131 | 5,131 | 6,453 | |||||||||||||
Present value of lease liabilities | 5,886 | 5,886 | ||||||||||||||
Sublicense income | 81 | $ 0 | 5,359 | $ 0 | ||||||||||||
Impairment loss on right-of-use assets | 0 | 0 | 0 | 677 | ||||||||||||
Contingency reserves for litigation | 0 | $ 0 | ||||||||||||||
PureTech Health | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Sublicense payment | 100 | |||||||||||||||
Milestone payments | $ 2,000 | |||||||||||||||
Intellectual Property License Agreement | Eli Lilly and Company | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Upfront payment | $ 100 | |||||||||||||||
Royalty expiration term | 6 years | |||||||||||||||
Number of milestones reached | Milestone | 0 | |||||||||||||||
Milestone payments | $ 0 | |||||||||||||||
License agreement term | 15 years | |||||||||||||||
Patent License | PureTech Health | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Development and Regulatory Milestone Payments Under License Agreement | $ 8,000 | |||||||||||||||
Outstanding liabilities | 0 | $ 0 | 0 | |||||||||||||
Maximum | Intellectual Property License Agreement | Eli Lilly and Company | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Contingent milestone payments payable | $ 16,000 | |||||||||||||||
Commercial milestone payments payable | $ 54,000 | |||||||||||||||
Maximum | Patent License | PureTech Health | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Contingent milestone payments payable | $ 10,000 | |||||||||||||||
Percentage of royalties payable on income from sublicensee, excluding royalties | 25% | |||||||||||||||
Minimum | Patent License | PureTech Health | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Percentage of royalties payable on income from sublicensee, excluding royalties | 15% | |||||||||||||||
Office Space | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Right of use assets, net | 1,300 | 1,300 | ||||||||||||||
Right of use assets, gross | $ 2,000 | 2,000 | ||||||||||||||
Impairment loss on right-of-use assets | $ 700 | |||||||||||||||
Office Space | Massachusetts | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
No. of square feet acquired | Milestone | 4,175 | 7,050 | ||||||||||||||
Lease commencement period | 2018-12 | |||||||||||||||
Lease expiration period | 2023-12 | 2023-02 | ||||||||||||||
Restricted cash | 200 | $ 200 | 200 | |||||||||||||
Leasehold incentives | 100 | 100 | ||||||||||||||
Office Space | Boston, Massachusetts | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Sublease area of office space | ft² | 25,445 | |||||||||||||||
Sublease commencement date | Apr. 01, 2021 | |||||||||||||||
Sublease Expiring Date | Dec. 31, 2025 | |||||||||||||||
Sublease, initial fixed rental amount per rentable square foot of premises per annum | $ / ft² | 60 | |||||||||||||||
Sublease, initial fixed rental increase amount per rentable square foot each year | $ / ft² | 1 | |||||||||||||||
Base rent, first rent due date | Jul. 01, 2021 | |||||||||||||||
Monthly installment of base rental | 100 | |||||||||||||||
Security deposit | 400 | 400 | $ 400 | |||||||||||||
Right of use assets, net | $ 6,200 | |||||||||||||||
Present value of lease liabilities | $ 6,000 | |||||||||||||||
Office Space And Furniture | Carmel, Indiana | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
No. of square feet acquired | Milestone | 5,050 | |||||||||||||||
Lease commencement period | 2020-06 | |||||||||||||||
Lease expiration period | 2023-07 | |||||||||||||||
Headquarters | Boston, Massachusetts | Other Non-Current Liabilities | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Security deposit liability | $ 100 | $ 100 | ||||||||||||||
Headquarters | Arch Street Boston | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Sublease commencement date | Jul. 01, 2021 | |||||||||||||||
Sublease square feet | ft² | 7,050 | 7,050 | ||||||||||||||
Lease expiration date | Dec. 31, 2023 | |||||||||||||||
Sublease, initial fixed rental income per rentable square foot of premises per annum | $ / ft² | 59 | |||||||||||||||
Sublease, initial fixed rental income increase rate per rentable square foot each year | 2% | |||||||||||||||
Premises | ||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||
Sublease commencement date | Feb. 07, 2022 | Jun. 01, 2021 | ||||||||||||||
Sublease square feet | ft² | 2,422 | 1,751 | ||||||||||||||
Lease expiration date | Dec. 31, 2023 | Dec. 31, 2023 | ||||||||||||||
Sublease, initial fixed rental income per rentable square foot of premises per annum | $ / ft² | 45 | 61 | ||||||||||||||
Sublease, initial fixed rental income increase rate per rentable square foot each year | 2% |
Commitments and Contingencies_2
Commitments and Contingencies - Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lease Cost | ||||
Operating lease cost | $ 1,613 | $ 1,288 | ||
Short-term lease cost | 0 | 0 | ||
Sublease income | $ (147) | $ (122) | (433) | (131) |
Total lease cost | 1,180 | 1,157 | ||
Cash paid for amounts included in the measurement of lease liabilities | 1,908 | 991 | ||
Operating lease liabilities arising from obtaining right-of-use assets | $ 0 | $ 6,040 | ||
Weighted-average remaining lease term | 2 years 10 months 6 days | 3 years 8 months 19 days | 2 years 10 months 6 days | 3 years 8 months 19 days |
Weighted-average discount rate | 5.88% | 5.90% | 5.88% | 5.90% |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Maturity Analysis of Annual Undiscounted Cash Flows of Operating Lease Liabilities and Reconciliation to Present Value of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
December 31, 2022 | $ 639 |
December 31, 2023 | 2,520 |
December 31, 2024 | 1,597 |
December 31, 2025 | 1,622 |
Total future minimum lease payments | 6,378 |
Less imputed interest | (492) |
Present value of lease liabilities | $ 5,886 |
Commitments and Contingencies_4
Commitments and Contingencies - Summary of Annual Undiscounted Cash Flows To Be Received from Subleases (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
December 31, 2022 | $ 160 |
December 31, 2023 | 648 |
Total future sublease payments to be received | $ 808 |
401(k) Savings Plan - Additiona
401(k) Savings Plan - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Retirement Benefits [Abstract] | ||
Defined contribution plan, plan name | 401(k) | |
Total contribution expense | $ 0.7 | $ 0.4 |