Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
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 | 33 Arch Street | |
Entity Address, Address Line Two | Suite 3110 | |
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 | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 26,615,908 | |
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 | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 133,873 | $ 208,929 |
Short-term investments | 233,712 | 180,468 |
Prepaid expenses and other current assets | 6,933 | 3,309 |
Deferred offering costs | 338 | |
Total current assets | 374,856 | 392,706 |
Restricted cash | 157 | 123 |
Property and equipment, net | 433 | 195 |
Right-of-use lease assets - operating, net | 2,370 | |
Total assets | 377,816 | 393,024 |
Current liabilities: | ||
Accounts payable (includes $0 and $51 at June 30, 2020 and December 31, 2019, respectively, due to related parties) | 773 | 547 |
Accrued expenses | 2,622 | 2,353 |
Current portion of deferred lease obligation | 58 | |
Current portion of operating lease liability | 674 | |
Total current liabilities | 4,069 | 2,958 |
Deferred lease obligation, net of current portion | 150 | |
Operating lease liability, net of current portion | 1,944 | |
Total liabilities | 6,013 | 3,108 |
Commitments and Contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized and 0 shares outstanding as of June 30, 2020 and December 31, 2019 | ||
Common stock, $0.0001 par value; 150,000,000 shares authorized at June 30, 2020 and December 31, 2019; 26,580,533 and 26,012,754 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 3 | 3 |
Additional paid-in capital | 472,119 | 465,420 |
Accumulated deficit | (101,216) | (75,512) |
Accumulated other comprehensive income | 897 | 5 |
Total stockholders’ equity | 371,803 | 389,916 |
Total liabilities and stockholders’ equity | $ 377,816 | $ 393,024 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts payable to related party | $ 0 | $ 51 |
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 | 26,580,533 | 26,012,754 |
Common stock, shares outstanding | 26,580,533 | 26,012,754 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating expenses: | ||||
Research and development | $ 10,819 | $ 6,784 | $ 15,239 | $ 13,751 |
General and administrative | 7,006 | 8,286 | 12,641 | 12,892 |
Total operating expenses | 17,825 | 15,070 | 27,880 | 26,643 |
Loss from operations | (17,825) | (15,070) | (27,880) | (26,643) |
Other income (expense): | ||||
Interest income | 779 | 452 | 2,176 | 567 |
Interest income, net (Note 4) | 11 | |||
Accretion of debt discount (Note 4) | (522) | (945) | ||
Change in fair value of derivative (Note 4) | (135) | |||
Total other income (expense), net | 779 | (70) | 2,176 | (502) |
Net loss before income taxes | (17,046) | (15,140) | (25,704) | (27,145) |
Net loss attributable to common stockholders | $ (17,046) | $ (15,140) | $ (25,704) | $ (27,145) |
Net loss per share, basic and diluted (Note 7) | $ (0.65) | $ (146.02) | $ (0.98) | $ (507.76) |
Weighted average common shares outstanding used in computing net loss per share, basic and diluted | 26,186,493 | 103,684 | 26,114,464 | 53,460 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (17,046) | $ (15,140) | $ (25,704) | $ (27,145) |
Other comprehensive income (loss): | ||||
Unrealized (losses) gains on short-term investments | (674) | 71 | 892 | 71 |
Comprehensive loss | $ (17,720) | $ (15,069) | $ (24,812) | $ (27,074) |
CONSOLIDATED STATEMENTS OF REDE
CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Series Seed, A and B Redeemable Convertible Preferred Stock |
Temporary Equity, beginning balance at Dec. 31, 2018 | $ 41,965 | |||||
Temporary Equity, beginning balance, shares at Dec. 31, 2018 | 7,539,200 | |||||
Beginning balance at Dec. 31, 2018 | $ (29,922) | $ 1,633 | $ (31,555) | |||
Beginning balance, shares at Dec. 31, 2018 | 12 | |||||
Issuance of Series B redeemable convertible preferred stock, net of issuance costs of $175 | $ 79,841 | |||||
Temporary Equity, Issuance of Series B redeemable convertible preferred stock, net of issuance costs of $175, shares | 5,285,102 | |||||
Stock-based compensation expense | 3,104 | 3,104 | ||||
Exercise of common warrants | 58 | 58 | ||||
Exercise of common warrants, shares | 19,986 | |||||
Net loss | (12,005) | (12,005) | ||||
Temporary Equity, ending balance at Mar. 31, 2019 | $ 121,806 | |||||
Temporary Equity, ending balance, shares at Mar. 31, 2019 | 12,824,302 | |||||
Ending balance at Mar. 31, 2019 | (38,765) | 4,795 | (43,560) | |||
Ending balance, shares at Mar. 31, 2019 | 19,998 | |||||
Temporary Equity, beginning balance at Dec. 31, 2018 | $ 41,965 | |||||
Temporary Equity, beginning balance, shares at Dec. 31, 2018 | 7,539,200 | |||||
Beginning balance at Dec. 31, 2018 | (29,922) | 1,633 | (31,555) | |||
Beginning balance, shares at Dec. 31, 2018 | 12 | |||||
Net loss | (27,145) | |||||
Temporary Equity, ending balance at Jun. 30, 2019 | $ 123,892 | |||||
Temporary Equity, ending balance, shares at Jun. 30, 2019 | 12,962,045 | |||||
Ending balance at Jun. 30, 2019 | (46,989) | 11,640 | (58,700) | $ 71 | ||
Ending balance, shares at Jun. 30, 2019 | 164,122 | |||||
Temporary Equity, beginning balance at Mar. 31, 2019 | $ 121,806 | |||||
Temporary Equity, beginning balance, shares at Mar. 31, 2019 | 12,824,302 | |||||
Beginning balance at Mar. 31, 2019 | (38,765) | 4,795 | (43,560) | |||
Beginning balance, shares at Mar. 31, 2019 | 19,998 | |||||
Issuance of Series B redeemable convertible preferred stock, net of issuance costs of $175 | $ 2,086 | |||||
Temporary Equity, Issuance of Series B redeemable convertible preferred stock, net of issuance costs of $175, shares | 137,743 | |||||
Stock-based compensation expense | 6,841 | 6,841 | ||||
Exercise of common warrants | 4 | 4 | ||||
Exercise of common warrants, shares | 38,961 | |||||
Vesting of restricted stock units, shares | 105,163 | |||||
Other comprehensive income (loss) | 71 | 71 | ||||
Net loss | (15,140) | (15,140) | ||||
Temporary Equity, ending balance at Jun. 30, 2019 | $ 123,892 | |||||
Temporary Equity, ending balance, shares at Jun. 30, 2019 | 12,962,045 | |||||
Ending balance at Jun. 30, 2019 | (46,989) | 11,640 | (58,700) | 71 | ||
Ending balance, shares at Jun. 30, 2019 | 164,122 | |||||
Temporary Equity, beginning balance, shares at Dec. 31, 2019 | 0 | |||||
Beginning balance at Dec. 31, 2019 | 389,916 | $ 3 | 465,420 | (75,512) | 5 | |
Beginning balance, shares at Dec. 31, 2019 | 26,012,754 | |||||
Follow-on offering costs | (34) | (34) | ||||
Stock-based compensation expense | 1,634 | 1,634 | ||||
Exercise of common options | 517 | 517 | ||||
Exercise of common options, shares | 82,138 | |||||
Other comprehensive income (loss) | 1,566 | 1,566 | ||||
Net loss | (8,658) | (8,658) | ||||
Ending balance at Mar. 31, 2020 | 384,941 | $ 3 | 467,537 | (84,170) | 1,571 | |
Ending balance, shares at Mar. 31, 2020 | 26,094,892 | |||||
Temporary Equity, beginning balance, shares at Dec. 31, 2019 | 0 | |||||
Beginning balance at Dec. 31, 2019 | $ 389,916 | $ 3 | 465,420 | (75,512) | 5 | |
Beginning balance, shares at Dec. 31, 2019 | 26,012,754 | |||||
Exercise of common options, shares | 567,779 | |||||
Net loss | $ (25,704) | |||||
Temporary Equity, ending balance, shares at Jun. 30, 2020 | 0 | |||||
Ending balance at Jun. 30, 2020 | 371,803 | $ 3 | 472,119 | (101,216) | 897 | |
Ending balance, shares at Jun. 30, 2020 | 26,580,533 | |||||
Beginning balance at Mar. 31, 2020 | 384,941 | $ 3 | 467,537 | (84,170) | 1,571 | |
Beginning balance, shares at Mar. 31, 2020 | 26,094,892 | |||||
Stock-based compensation expense | 3,226 | 3,226 | ||||
Exercise of common options | 1,356 | 1,356 | ||||
Exercise of common options, shares | 485,641 | |||||
Other comprehensive income (loss) | (674) | (674) | ||||
Net loss | (17,046) | (17,046) | ||||
Temporary Equity, ending balance, shares at Jun. 30, 2020 | 0 | |||||
Ending balance at Jun. 30, 2020 | $ 371,803 | $ 3 | $ 472,119 | $ (101,216) | $ 897 | |
Ending balance, shares at Jun. 30, 2020 | 26,580,533 |
CONSOLIDATED STATEMENTS OF RE_2
CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Series B Redeemable Convertible Preferred Stock | |
Issuance of redeemable convertible preferred stock, net of issuance costs | $ 175 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (25,704) | $ (27,145) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 4,860 | 9,945 |
Non-cash interest income | (104) | (282) |
Non-cash interest income, net (Note 4) | (11) | |
Accretion of debt discount (Note 4) | 945 | |
Change in fair value of derivative liability (Note 4) | 135 | |
Depreciation and amortization expense | 54 | 22 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (3,624) | (8) |
Right-of-use assets | 273 | |
Accounts payable | 166 | 253 |
Accrued expenses | 182 | 327 |
Deferred lease obligation | 132 | |
Operating lease liability | (233) | |
Net cash used in operating activities | (24,130) | (15,687) |
Cash flows from investing activities | ||
Purchases of short-term investments | (132,248) | (64,468) |
Maturities of short-term investments | 80,000 | 5,000 |
Acquisition of property and equipment | (233) | (70) |
Net cash used in investing activities | (52,481) | (59,538) |
Cash flows from financing activities | ||
Proceeds from issuance of convertible notes | 3,128 | |
Proceeds from exercise of stock options | 1,873 | 4 |
Proceeds from exercise of warrant | 58 | |
Payment of deferred offering costs | (284) | (1,199) |
Net cash provided by financing activities | 1,589 | 76,816 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (75,022) | 1,591 |
Cash, cash equivalents and restricted cash at beginning of period | 209,052 | 9,027 |
Cash, cash equivalents and restricted cash at end of period | 134,030 | 10,618 |
Supplemental disclosures of cash flows information | ||
Lease liabilities arising from obtaining right-of-use assets | 2,851 | |
Purchases of property and equipment included in accrued expenses | 59 | |
Deferred offering costs included in accrued expenses and accounts payable | $ 88 | 833 |
Conversion of convertible notes, accrued interest and discount upon conversion to preferred stock | 7,102 | |
Series B Redeemable Convertible Preferred Stock | ||
Cash flows from financing activities | ||
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs | $ 74,825 |
Nature of the Business
Nature of the Business | 6 Months Ended |
Jun. 30, 2020 | |
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 focused on developing novel therapies with the potential to transform the lives of people with disabling and potentially fatal neuropsychiatric disorders. 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 COVID-19 coronavirus pandemic, and the need to obtain adequate additional financing to fund the development of its product candidates. On June 14, 2019, the Company effected a one-for-1.2987 stock split of its issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for each series of the Company’s redeemable convertible preferred stock. Accordingly, all share and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this stock split and adjustment of the redeemable convertible preferred stock conversion ratios. On June 27, 2019, the Company’s registration statement on Form S-1 relating to its initial public offering of its common stock (“IPO”) was declared effective by the Securities and Exchange Commission (“SEC”). In the IPO, which closed on July 2, 2019, the Company issued and sold 6,414,842 On November 20, 2019, the Company’s registration statement on Form S-1 relating to its follow-on public offering of its common stock was declared effective by the SEC. In this offering, which closed on November 25, 2019, the Company issued and sold 2,600,000 shares of common stock at a public offering price of $96.00 per share. The aggregate net proceeds were approximately $234.2 million after deducting underwriting discounts and commissions of $15.0 million and offering expenses of $0.4 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 $24.1 million for the six months ended June 30, 2020 The Company expects that its cash, cash equivalents and short-term investments of $367.6 million as of June 30, 2020 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. The future viability of the Company beyond that point is dependent on its ability to raise additional capital to fund its operations. If the Company is unable to obtain funding, the Company could be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, which could adversely affect its business prospects, or the Company may be unable to continue operations. Although management continues to pursue these plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continuing operations, if at all. 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 June 30, 2020, the consolidated statements of operations, comprehensive loss, and redeemable convertible preferred stock and stockholders’ equity (deficit) for the three and six months ended June 30, 2020 and 2019 and the consolidated statements of cash flows for the six months ended June 30, 2020 and 2019 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 June 30, 2020 and the results of its operations for the three and six months ended June 30, 2020 and 2019 and the results of its cash flows for the six months ended June 30, 2020 and 2019. Certain information and footnote disclosures typically included in annual financial statements prepared in accordance with 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, 2019. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K. During the three and six months ended June 30, 2020, there were no material changes to the Company’s significant accounting policies, except for the adoption of ASU 2016-02, Leases (Topic 842) Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases Leases (Topic 842): Targeted Improvements Leases (Topic 842): Codification Improvements (“ROU”) The Company determines if an arrangement contains a lease at inception. Operating leases are included in ROU lease assets, current portion of operating lease liability, and operating lease liability, net of current portion, on the Company’s balance sheets. ROU lease 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. Operating ROU lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU lease asset excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Changes to terms and conditions of an arrangement that contains a lease are evaluated to determine if a modification had occurred and a lease continues to exist. Lease modifications are accounted for as a separate contract or are treated as a change in accounting for the existing lease. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) consolidated In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets and Accrued Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Prepaid Expenses And Other Current Assets And Accrued Expenses [Abstract] | |
Prepaid Expenses and Other Current Assets and Accrued Expenses | Note 3. Prepaid Expenses and Other Current Assets and Accrued Expenses Prepaid expenses and other current assets consisted of the following (in thousands): June 30, 2020 December 31, 2019 Prepaid insurance $ 23 $ 2,130 Prepaid research and development expenses 6,655 694 Other 255 485 Total prepaid expenses and other current assets $ 6,933 $ 3,309 Accrued expenses consisted of the following (in thousands): June 30, 2020 December 31, 2019 Accrued payroll and related expenses $ 1,090 $ 1,823 Accrued research and development expenses 1,036 344 Professional fees 338 142 Other 158 44 Total accrued expenses $ 2,622 $ 2,353 |
Convertible Notes Payable
Convertible Notes Payable | 6 Months Ended |
Jun. 30, 2020 | |
Convertible Debt Disclosure [Abstract] | |
Convertible Notes Payable | Note 4. Convertible Notes Payable In June 2018, the Company entered into a Company Funding Agreement with The Wellcome Trust, Limited (“Wellcome Trust”) to receive up to $8.0 million in gross proceeds from the issuance of a convertible note (the “2018 Convertible Note”). The Company received $2.0 million of proceeds in July 2018, $2.7 million in November 2018, $1.6 million in March 2019, and $1.6 million in April 2019. The 2018 Convertible Note had a stated interest rate of 2% per annum above the three-month Dollar LIBOR rate, which was not payable until settlement of the principal. The note was subject to redemption upon written demand by Wellcome Trust any time after the fifth anniversary of the effective date. The principal due under the 2018 Convertible Note was convertible into the class of the Company’s stock issued in the Company’s next qualified financing or upon an event of default at a discounted conversion price between 0% and 25% of the purchase price per share of such securities issued. The accrued interest in such a circumstance would be forgiven. At inception, the Company concluded that the 2018 Convertible Note contained a conversion option at a significant discount that was deemed to be an embedded derivative, which was required to be bifurcated and accounted for separately from the debt host. There were no debt issuance costs associated with the 2018 Convertible Note. The Company recognized the following changes in the debt related to the 2018 Convertible Note during Financial statement impacted Balance, December 31, 2018 $ 2,516 Issuance of 2018 Convertible Note 1,564 Balance sheet Allocation of proceeds to derivative liability (228 ) Balance sheet Accretion to settlement value 423 Statement of operations Accrued interest 29 Statement of operations Interest forgiven upon conversion (40 ) Statement of operations Conversion of Wellcome Trust Convertible Notes to redeemable convertible preferred stock (4,264 ) Balance sheet Balance, March 31, 2019 — Issuance of 2018 Convertible Note 1,564 Balance sheet Allocation of proceeds to derivative liability (522 ) Balance sheet Accretion to settlement value 522 Statement of operations Conversion of Wellcome Trust Convertible Notes to redeemable convertible preferred stock (1,564 ) Balance sheet Balance, June 30, 2019 $ — In March and April 2019, all outstanding principal under the 2018 Convertible Note was converted into Series B redeemable convertible preferred stock in connection with the Company’s Series B preferred stock financing. |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 6 Months Ended |
Jun. 30, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock | Note 5. Redeemable Convertible Preferred Stock As of December 31, 2018, the Company had 7,539,200 shares of preferred stock issued and outstanding which were redeemable and convertible by the holders under specified conditions. The redeemable convertible preferred stock was classified outside of stockholders’ equity (deficit) because the shares contained redemption features that were not solely within the control of the Company. In March 2019, the Company authorized 5,422,845 shares of Series B Preferred Stock. The Company then issued and sold 4,953,758 shares of Series B Preferred Stock at an issuance price of $15.14 per share resulting in gross proceeds of approximately $75.0 million. There were $0.2 million of issuance costs associated with the Series B Preferred Stock. In conjunction with the March 2019 issuance of Series B Preferred Stock, all outstanding principal under the 2018 Convertible Note In April 2019, the Company received an additional $1.6 million pursuant to the 2018 Convertible Note, which was subsequently converted into 137,743 shares of Series B Preferred Stock. Upon closing of the Company’s IPO on July 2, 2019, the then-outstanding shares of the redeemable convertible preferred stock converted into common stock. There were no shares of redeemable convertible preferred stock authorized, issued or outstanding as of June 30, 2020 or December 31, 2019. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 6. Stockholders’ Equity Preferred Stock On July 2, 2019, 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 outstanding as of June 30, 2020 or December 31, 2019. Common Stock As of June 30, 2020, 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 June 30, 2020 , no cash dividends have been declared or paid. Upon completion of the Company’s IPO on July 2, 2019, all outstanding shares of redeemable convertible preferred stock converted into common stock. As of June 30, 2020, there were 26,580,533 shares of common stock outstanding. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 7. 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 six months ended June 30, 2020 and 2019 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net Loss $ (17,046 ) $ (15,140 ) $ (25,704 ) $ (27,145 ) Weighted-average shares used in computing net loss per share 26,186,493 103,684 26,114,464 53,460 Net loss per share, basic and diluted $ (0.65 ) $ (146.02 ) $ (0.98 ) $ (507.76 ) The Company’s potentially dilutive securities, which include stock options and convertible preferred stock, 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. Prior to the IPO, the Company’s outstanding shares of redeemable convertible preferred stock contractually entitled the holders of such shares to participate in distributions but contractually did not require the holders of such shares to participate in losses of the Company. Accordingly, these shares have not been included in the denominator used to calculate net loss per share. Common Stock Equivalents The following common stock equivalents, presented based on amounts outstanding at each period end, have been excluded from the calculation of diluted net loss per share because including them would have had an anti-dilutive impact: June 30, 2020 2019 Redeemable convertible preferred stock (as converted to common stock) — 16,833,790 Stock options to purchase common stock 4,767,515 4,702,906 4,767,515 21,536,696 |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | Note 8. 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 aggregate common shares issuable were 3,911,138 under the 2009 Plan, as amended. 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 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 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. In general, 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 Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2019 4,614,544 $ 8.94 8.3 $ 306,395 Granted 769,750 93.41 Exercised (567,779 ) 3.30 Forfeited (49,000 ) 16.00 Outstanding as of June 30, 2020 4,767,515 $ 23.18 8.4 $ 420,877 Options vested and expected to vest as of June 30, 2020 4,767,515 $ 23.18 8.4 $ 420,877 Options exercisable as of June 30, 2020 2,999,686 $ 9.73 8.1 $ 305,172 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 fair value of the Company’s common stock as of June 30, 2020. As of June 30, 2020, there was $41.6 million of unrecognized compensation cost, which is expected to be recognized over a weighted-average period of 3.3 years. Warrants In October 2016, PureTech Health LLC, a related party (“PureTech Health”), agreed to provide management services to the Company in exchange for a warrant to purchase up to 19,998 shares of the Company’s common stock. As of December 31, 2018, the warrant was fully vested and PureTech Health had partially exercised the warrant to purchase 12 shares of the Company’s common stock. In March 2019, PureTech Health exercised the remaining portion of the warrant to purchase 19,986 shares of the Company’s common stock, resulting in proceeds to the Company of $0.1 million. There were no outstanding warrants as of June 30, 2020 or December 31, 2019. Stock-based Compensation Expense Stock-based compensation expense is classified in the statements of operations for the three and six months ended June 30, 2020 and 2019 as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Research and development $ 918 $ 144 $ 1,268 $ 224 General and administrative 2,308 6,697 3,592 9,721 Total stock based compensation expense $ 3,226 $ 6,841 $ 4,860 $ 9,945 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
Fair Value of Financial Assets and Liabilities | Note 9. Fair Value of Financial Assets and Liabilities The following tables present information about the Company’s assets and liabilities as of June 30, 2020 and December 31, 2019 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 June 30, 2020 Using Level 1 Level 2 Level 3 Total Assets: Cash equivalents (Money Market Fund) $ 116,456 $ — $ — $ 116,456 Cash equivalents (Corporate Bonds) — 3,999 — 3,999 Short-term investments (US Treasuries) 201,802 — — 201,802 Short-term investments (Corporate Bonds) — 31,910 — 31,910 Total $ 318,258 $ 35,909 $ — $ 354,167 Fair Value Measurement at December 31, 2019 Using Level 1 Level 2 Level 3 Total Assets: Cash equivalents (Money Market Fund) $ 197,303 $ — $ — $ 197,303 Short-term investments (US Treasuries) 180,468 — — 180,468 Total $ 377,771 $ — $ — $ 377,771 The fair values of the Company’s corporate bonds 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 estimated fair value and amortized cost of the Company’s short-term investments by contractual maturity are summarized as follows (in thousands): June 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Due in one year or less $ 232,815 $ 897 $ — $ 233,712 Total $ 232,815 $ 897 $ — $ 233,712 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Due in one year or less $ 180,463 $ 5 $ — $ 180,468 Total $ 180,463 $ 5 $ — $ 180,468 As of December 31, 2018, the Company had recorded a derivative liability of $0.4 million in connection with the 2018 Convertible Note. The derivative liability was considered a Level 3 liability because its fair value measurement was based, in part, on significant inputs not observed in the market. In March and April 2019, additional derivative liabilities of $0.8 million in the aggregate were recognized in connection with the 2018 Convertible Note (see Note 4). For the six months ended June 30, 2019, the Company recognized a change in fair value of derivative of $0.1 million in the consolidated statement of operations. Upon the Company’s issuance of Series B redeemable convertible preferred stock in March and April 2019, all outstanding principal under the 2018 Convertible Note was converted into redeemable convertible preferred stock. There was no derivative liability recorded as of June 30, 2020 or December 31, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies Leases The Company entered into an agreement to lease approximately 7,050 square feet of office space in Boston, Massachusetts (“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 Lease Agreement”) to gain access to approximately 4,175 square feet of additional office space (“Expansion Premises”) beginning in March 2020, and to extend the maturity of the agreement for the Original Premises to December 2023. The Amended Lease Agreement provides for future minimum annual rental payments as defined within the agreement. Under the terms of the amended agreement, the Company is required to maintain a cash balance of approximately $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 June 30, 2020 and December 31, 2019. The amended agreement also provides for approximately $0.1 million in leasehold incentives which may be applied to base rent or improvements to the Expansion Premises, subject to limitations. The Company determined the Amended Lease Agreement represented a lease modification, and the Original Premises and Expansion Premises were identified as separate lease components. The extension of maturity with respect to the 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 asset as of February 1, 2020, the effective date of the modification. The addition of the 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. 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. In addition to the lease liabilities arising from ROU assets recognized upon adoption of ASC 842, Leases The components of lease cost were as follows (dollar amounts in thousands): Six Months Ended June 30, 2020 Lease Cost Operating lease cost $ 348 Short-term lease cost — Total lease cost $ 348 Other Information Cash paid for amounts included in the measurement of lease liabilities $ 308 Operating lease liabilities arising from obtaining right-of-use assets $ 2,851 Weighted-average remaining lease term 3.44 years Weighted-average discount rate 6.16 % 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 June 30, 2020 (in thousands): Year ended: December 31, 2020 $ 392 December 31, 2021 845 December 31, 2022 860 December 31, 2023 804 Total future minimum lease payments 2,901 Less imputed interest (283 ) Present value of lease liabilities $ 2,618 Future minimum lease payments under non-cancelable operating lease agreements as of December 31, 2019 (under ASC 840, prior to the adoption of ASC 842 effective January 1, 2020), were as follows (in thousands): Year ended: December 31, 2020 $ 499 December 31, 2021 506 December 31, 2022 514 December 31, 2023 86 December 31, 2024 and thereafter — $ 1,605 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 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 us 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 June 30, 2020, no 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 we receive 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. The Company incurred no expenses related to the Patent License Agreement provided by PureTech Health during the six months ended June 30, 2020 or 2019. The Company had no outstanding liabilities to PureTech Health related to the Patent License Agreement as of June 30 , 2020 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 indemnification obligations. 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 not a party to any litigation and does not have contingency reserves established for any litigation liabilities as of June 30, 2020. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11. Related Party Transactions PureTech Health Management Consulting Services and Overhead Agreement The Company previously engaged PureTech Health, a related party, to provide, among other things, management expertise, strategic advice, administrative support, computer and telecommunications services and office infrastructure. In exchange for providing such services, the Company paid PureTech Health a monthly fee. In addition, PureTech Health periodically invoiced the Company for out-of-pocket expenses reasonably incurred in connection with providing such business services. The Company incurred general and administrative costs for management services provided by PureTech Health totaling less than $0.1 million in the six months ended June 30, 2019. In addition, the Company had outstanding current liabilities to PureTech Health of less than $0.1 million as of December 31, 2019, which were recorded as accounts payable in the consolidated balance sheets. As of and for the six months ended June 30, 2020, the Company had no outstanding liabilities to PureTech Health and no general and administrative costs for management services were incurred. |
401(k) Savings Plan
401(k) Savings Plan | 6 Months Ended |
Jun. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
401(k) Savings Plan | Note 12. 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 matching expense for the Company was $0.1 million and less than $0.1 million for the six months ended June 30, 2020 and 2019, respectively. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13. Subsequent Events On July 2, 2020, the Company filed a shelf registration statement on Form S-3 (the “Shelf”) with the 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. The Company simultaneously entered into an equity distribution agreement with Goldman Sachs & Co. LLC, as sales agent, to provide for the issuance and sale by the Company of up to $150.0 million of common stock from time to time in “at-the-market” offerings under the Shelf. The Shelf was filed and declared automatically effective by the SEC on July 2, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020, the consolidated statements of operations, comprehensive loss, and redeemable convertible preferred stock and stockholders’ equity (deficit) for the three and six months ended June 30, 2020 and 2019 and the consolidated statements of cash flows for the six months ended June 30, 2020 and 2019 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 June 30, 2020 and the results of its operations for the three and six months ended June 30, 2020 and 2019 and the results of its cash flows for the six months ended June 30, 2020 and 2019. Certain information and footnote disclosures typically included in annual financial statements prepared in accordance with 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, 2019. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases Leases (Topic 842): Targeted Improvements Leases (Topic 842): Codification Improvements (“ROU”) The Company determines if an arrangement contains a lease at inception. Operating leases are included in ROU lease assets, current portion of operating lease liability, and operating lease liability, net of current portion, on the Company’s balance sheets. ROU lease 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. Operating ROU lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The ROU lease asset excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Changes to terms and conditions of an arrangement that contains a lease are evaluated to determine if a modification had occurred and a lease continues to exist. Lease modifications are accounted for as a separate contract or are treated as a change in accounting for the existing lease. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) consolidated In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets and Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Prepaid Expenses And Other Current 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): June 30, 2020 December 31, 2019 Prepaid insurance $ 23 $ 2,130 Prepaid research and development expenses 6,655 694 Other 255 485 Total prepaid expenses and other current assets $ 6,933 $ 3,309 |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): June 30, 2020 December 31, 2019 Accrued payroll and related expenses $ 1,090 $ 1,823 Accrued research and development expenses 1,036 344 Professional fees 338 142 Other 158 44 Total accrued expenses $ 2,622 $ 2,353 |
Convertible Notes Payable (Tabl
Convertible Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
2018 Convertible Note | |
Convertible Notes Payable [Line Items] | |
Schedule of Changes in Convertible Debt | The Company recognized the following changes in the debt related to the 2018 Convertible Note during Financial statement impacted Balance, December 31, 2018 $ 2,516 Issuance of 2018 Convertible Note 1,564 Balance sheet Allocation of proceeds to derivative liability (228 ) Balance sheet Accretion to settlement value 423 Statement of operations Accrued interest 29 Statement of operations Interest forgiven upon conversion (40 ) Statement of operations Conversion of Wellcome Trust Convertible Notes to redeemable convertible preferred stock (4,264 ) Balance sheet Balance, March 31, 2019 — Issuance of 2018 Convertible Note 1,564 Balance sheet Allocation of proceeds to derivative liability (522 ) Balance sheet Accretion to settlement value 522 Statement of operations Conversion of Wellcome Trust Convertible Notes to redeemable convertible preferred stock (1,564 ) Balance sheet Balance, June 30, 2019 $ — |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 six months ended June 30, 2020 and 2019 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net Loss $ (17,046 ) $ (15,140 ) $ (25,704 ) $ (27,145 ) Weighted-average shares used in computing net loss per share 26,186,493 103,684 26,114,464 53,460 Net loss per share, basic and diluted $ (0.65 ) $ (146.02 ) $ (0.98 ) $ (507.76 ) |
Schedule of Anti-Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share | The following common stock equivalents, presented based on amounts outstanding at each period end, have been excluded from the calculation of diluted net loss per share because including them would have had an anti-dilutive impact: June 30, 2020 2019 Redeemable convertible preferred stock (as converted to common stock) — 16,833,790 Stock options to purchase common stock 4,767,515 4,702,906 4,767,515 21,536,696 |
Stock-based Compensation (Tabl
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity and related information is as follows: Number of Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2019 4,614,544 $ 8.94 8.3 $ 306,395 Granted 769,750 93.41 Exercised (567,779 ) 3.30 Forfeited (49,000 ) 16.00 Outstanding as of June 30, 2020 4,767,515 $ 23.18 8.4 $ 420,877 Options vested and expected to vest as of June 30, 2020 4,767,515 $ 23.18 8.4 $ 420,877 Options exercisable as of June 30, 2020 2,999,686 $ 9.73 8.1 $ 305,172 |
Summary of Stock-based Compensation Expense | Stock-based compensation expense is classified in the statements of operations for the three and six months ended June 30, 2020 and 2019 as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Research and development $ 918 $ 144 $ 1,268 $ 224 General and administrative 2,308 6,697 3,592 9,721 Total stock based compensation expense $ 3,226 $ 6,841 $ 4,860 $ 9,945 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 and liabilities as of June 30, 2020 and December 31, 2019 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 June 30, 2020 Using Level 1 Level 2 Level 3 Total Assets: Cash equivalents (Money Market Fund) $ 116,456 $ — $ — $ 116,456 Cash equivalents (Corporate Bonds) — 3,999 — 3,999 Short-term investments (US Treasuries) 201,802 — — 201,802 Short-term investments (Corporate Bonds) — 31,910 — 31,910 Total $ 318,258 $ 35,909 $ — $ 354,167 Fair Value Measurement at December 31, 2019 Using Level 1 Level 2 Level 3 Total Assets: Cash equivalents (Money Market Fund) $ 197,303 $ — $ — $ 197,303 Short-term investments (US Treasuries) 180,468 — — 180,468 Total $ 377,771 $ — $ — $ 377,771 |
Summary of Estimated Fair Value and Amortized Cost of Short term Investments by Contractual Maturity | The estimated fair value and amortized cost of the Company’s short-term investments by contractual maturity are summarized as follows (in thousands): June 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Due in one year or less $ 232,815 $ 897 $ — $ 233,712 Total $ 232,815 $ 897 $ — $ 233,712 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Due in one year or less $ 180,463 $ 5 $ — $ 180,468 Total $ 180,463 $ 5 $ — $ 180,468 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Components of Lease Cost | The components of lease cost were as follows (dollar amounts in thousands): Six Months Ended June 30, 2020 Lease Cost Operating lease cost $ 348 Short-term lease cost — Total lease cost $ 348 Other Information Cash paid for amounts included in the measurement of lease liabilities $ 308 Operating lease liabilities arising from obtaining right-of-use assets $ 2,851 Weighted-average remaining lease term 3.44 years Weighted-average discount rate 6.16 % |
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 June 30, 2020 (in thousands): Year ended: December 31, 2020 $ 392 December 31, 2021 845 December 31, 2022 860 December 31, 2023 804 Total future minimum lease payments 2,901 Less imputed interest (283 ) Present value of lease liabilities $ 2,618 |
Schedule of Future Minimum Lease Payments Under Non-Cancelable Operating Lease Agreements | Future minimum lease payments under non-cancelable operating lease agreements as of December 31, 2019 (under ASC 840, prior to the adoption of ASC 842 effective January 1, 2020), were as follows (in thousands): Year ended: December 31, 2020 $ 499 December 31, 2021 506 December 31, 2022 514 December 31, 2023 86 December 31, 2024 and thereafter — $ 1,605 |
Nature of the Business - Additi
Nature of the Business - Additional Information (Details) $ / shares in Units, $ in Thousands | Nov. 25, 2019USD ($)$ / sharesshares | Jul. 02, 2019USD ($)$ / sharesshares | Jun. 14, 2019 | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Subsidiary Sale Of Stock [Line Items] | ||||||
Stock split ratio, description | one-for-1.2987 | |||||
Stock split, conversion ratio | 1.2987 | |||||
Offering expenses related to initial public offering | $ 284 | $ 1,199 | ||||
Cash flows from operating activities | 24,130 | $ 15,687 | ||||
Accumulated deficit | 101,216 | $ 75,512 | ||||
Cash and cash equivalents and short-term | $ 367,600 | |||||
Redeemable Convertible Preferred Stock | ||||||
Subsidiary Sale Of Stock [Line Items] | ||||||
Temporary Equity, shares outstanding | shares | 12,962,045 | |||||
Redeemable Convertible Preferred Stock | Common Stock | ||||||
Subsidiary Sale Of Stock [Line Items] | ||||||
Conversion of stock, shares issued | shares | 16,833,790 | |||||
Initial Public Offering | Common Stock | ||||||
Subsidiary Sale Of Stock [Line Items] | ||||||
Shares issued and sold | shares | 6,414,842 | |||||
Public offering price pre share | $ / shares | $ 16 | |||||
Net proceeds from initial public offering | $ 93,000 | |||||
Underwriting discounts and commissions | 7,200 | |||||
Offering expenses related to initial public offering | $ 2,400 | |||||
Underwriters' Over-Allotment Option | Common Stock | ||||||
Subsidiary Sale Of Stock [Line Items] | ||||||
Shares issued and sold | shares | 836,718 | |||||
Secondary Public Offering | Common Stock | ||||||
Subsidiary Sale Of Stock [Line Items] | ||||||
Shares issued and sold | shares | 2,600,000 | |||||
Public offering price pre share | $ / shares | $ 96 | |||||
Underwriting discounts and commissions | $ 15,000 | |||||
Net proceeds from secondary public offering | 234,200 | |||||
Offering expenses related to secondary public offering | $ 400 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred lease obligation outstanding | $ 200 | ||
Total lease liabilities | $ 2,618 | ||
Total right-of-use assets | $ 2,370 | ||
ASU 2016-02 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Total lease liabilities | $ 1,500 | ||
Total right-of-use assets | $ 1,200 | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | ||
ASU 2018-03 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
ASU 2019-12 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | ||
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets and Accrued Expenses - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 23 | $ 2,130 |
Prepaid research and development expenses | 6,655 | 694 |
Other | 255 | 485 |
Total prepaid expenses and other current assets | $ 6,933 | $ 3,309 |
Prepaid Expenses and Other Cu_4
Prepaid Expenses and Other Current Assets and Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accrued payroll and related expenses | $ 1,090 | $ 1,823 |
Accrued research and development expenses | 1,036 | 344 |
Professional fees | 338 | 142 |
Other | 158 | 44 |
Total accrued expenses | $ 2,622 | $ 2,353 |
Convertible Notes Payable - Add
Convertible Notes Payable - Additional Information (Details) - 2018 Convertible Note - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2019 | Mar. 31, 2019 | Nov. 30, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | |||||||||
Gross proceeds from the issuance of a convertible note | $ 1,564,000 | $ 1,564,000 | |||||||
Interest on unpaid principal balance of convertible notes | 2.00% | ||||||||
Debt issuance cost | $ 0 | ||||||||
Wellcome Trust | |||||||||
Debt Instrument [Line Items] | |||||||||
Gross proceeds from the issuance of a convertible note | $ 1,600,000 | $ 1,600,000 | $ 2,700,000 | $ 2,000,000 | |||||
Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of debt discount conversion price | 25.00% | ||||||||
Maximum | Wellcome Trust | |||||||||
Debt Instrument [Line Items] | |||||||||
Gross proceeds from the issuance of a convertible note | $ 8,000,000 | ||||||||
Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of debt discount conversion price | 0.00% |
Convertible Notes Payable - Sch
Convertible Notes Payable - Schedule of Changes in Convertible Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | |||
Conversion of Wellcome Trust Convertible Notes to redeemable convertible preferred stock | $ (7,102) | ||
2018 Convertible Note | |||
Debt Instrument [Line Items] | |||
Beginning balance | $ 2,516 | $ 2,516 | |
Issuance of 2018 Convertible Note | $ 1,564 | 1,564 | |
Allocation of proceeds to derivative liability | (522) | (228) | |
Accretion to settlement value | 522 | 423 | |
Accrued interest | 29 | ||
Interest forgiven upon conversion | (40) | ||
Conversion of Wellcome Trust Convertible Notes to redeemable convertible preferred stock | $ (1,564) | $ (4,264) |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Apr. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Temporary Equity [Line Items] | ||||||
Payments of stock issuance costs | $ 284 | $ 1,199 | ||||
Proceeds from issuance of convertible notes | $ 3,128 | |||||
2018 Convertible Note | ||||||
Temporary Equity [Line Items] | ||||||
Proceeds from issuance of convertible notes | $ 1,600 | |||||
Series Seed, Series A and Series B Redeemable Convertible Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Redeemable convertible preferred stock, shares issued | 0 | 0 | 7,539,200 | |||
Redeemable convertible preferred stock, shares outstanding | 12,824,302 | 0 | 12,962,045 | 0 | 7,539,200 | |
Redeemable convertible preferred stock, shares authorized | 0 | 0 | ||||
Series B Redeemable Convertible Preferred Stock | ||||||
Temporary Equity [Line Items] | ||||||
Redeemable convertible preferred stock, shares issued | 4,953,758 | |||||
Redeemable convertible preferred stock, shares authorized | 5,422,845 | |||||
Stock issuance price per share | $ 15.14 | |||||
Proceeds from issuance of redeemable convertible preferred stock | $ 75,000 | |||||
Payments of stock issuance costs | $ 200 | |||||
Number of shares issued upon conversion of debt | 137,743 | 331,344 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | 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 authorized | 150,000,000 | 150,000,000 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | |
Dividends declared | $ 0 | ||
Common stock, shares outstanding | 26,580,533 | 26,012,754 | |
Initial Public Offering | |||
Class Of Stock [Line Items] | |||
Preferred stock, shares authorized | 10,000,000 | ||
Preferred stock, par value | $ 0.0001 |
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 | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share Basic And Diluted [Abstract] | ||||||
Net Loss | $ (17,046) | $ (8,658) | $ (15,140) | $ (12,005) | $ (25,704) | $ (27,145) |
Weighted average common shares outstanding used in computing net loss per share, basic and diluted | 26,186,493 | 103,684 | 26,114,464 | 53,460 | ||
Net loss per share, basic and diluted | $ (0.65) | $ (146.02) | $ (0.98) | $ (507.76) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Anti-Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share, amount | 4,767,515 | 21,536,696 |
Redeemable convertible preferred stock (as converted to common stock) | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share, amount | 16,833,790 | |
Stock Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share, amount | 4,767,515 | 4,702,906 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2019 | Sep. 30, 2009 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | May 30, 2019 | Oct. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares outstanding | 4,767,515 | 4,614,544 | ||||||
Unrecognized compensation cost | $ 41,600 | |||||||
Unrecognized compensation costs, weighted average recognition period | 3 years 3 months 18 days | |||||||
Proceeds from exercise of warrant | $ 58 | |||||||
PureTech Health | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Exchange for a warrant to purchase shares of common stock | 19,998 | |||||||
Exercise of warrant to purchase shares of common stock | 19,986 | 12 | ||||||
Proceeds from exercise of warrant | $ 100 | |||||||
Outstanding warrants | 0 | 0 | ||||||
2009 Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Aggregate common shares issuable | 3,911,138 | |||||||
Share based compensation arrangement by share based payment award termination date | Jul. 2, 2019 | |||||||
2009 Plan | Stock Options to Purchase Common Stock | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares outstanding | 3,039,491 | |||||||
2019 Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Aggregate common shares issuable | 1,158,680 | |||||||
Number of shares outstanding | 1,728,024 | |||||||
Common stock reserved for future issuance | 1,709,832 | |||||||
Automatic increase in stock issuance as percentage on outstanding stock | 4.00% | |||||||
Stock option and incentive plan expiration date | May 31, 2029 | |||||||
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |
Compensation Related Costs [Abstract] | ||
Number of Shares, Outstanding, beginning of period | shares | 4,614,544 | |
Number of Shares, Granted | shares | 769,750 | |
Number of Shares, Exercised | shares | (567,779) | |
Number of Shares, Forfeited | shares | (49,000) | |
Number of Shares, Outstanding, end of period | shares | 4,767,515 | |
Number of Shares, Options vested and expected to vest | shares | 4,767,515 | |
Number of Shares, Options exercisable | shares | 2,999,686 | |
Weighted-Average Exercise Price Per Share, Outstanding, beginning of period | $ / shares | $ 8.94 | |
Weighted-Average Exercise Price Per Share, Outstanding, Granted | $ / shares | 93.41 | |
Weighted-Average Exercise Price Per Share, Outstanding, Exercised | $ / shares | 3.30 | |
Weighted-Average Exercise Price Per Share, Outstanding, Forfeited | $ / shares | 16 | |
Weighted-Average Exercise Price Per Share, Outstanding, end of period | $ / shares | 23.18 | $ 8.94 |
Weighted-Average Exercise Price Per Share, Options vested and expected to vest | $ / shares | 23.18 | |
Weighted-Average Exercise Price Per Share, Options exercisable | $ / shares | $ 9.73 | |
Weighted-Average Remaining Contractual Term, Outstanding (Years) | 8 years 4 months 24 days | 8 years 3 months 18 days |
Weighted-Average Remaining Contractual Term, Options vested and expected to vest | 8 years 4 months 24 days | |
Weighted-Average Remaining Contractual Term, Options exercisable | 8 years 1 month 6 days | |
Aggregate Intrinsic Value, Outstanding | $ | $ 420,877 | $ 306,395 |
Aggregate Intrinsic Value, Options vested and expected to vest | $ | 420,877 | |
Aggregate Intrinsic Value, Options exercisable | $ | $ 305,172 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock based compensation expense | $ 3,226 | $ 6,841 | $ 4,860 | $ 9,945 |
Research and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock based compensation expense | 918 | 144 | 1,268 | 224 |
General and Administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock based compensation expense | $ 2,308 | $ 6,697 | $ 3,592 | $ 9,721 |
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 | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Total fair value assets | $ 354,167 | $ 377,771 |
US Treasuries | ||
Assets: | ||
Short-term investments | 201,802 | 180,468 |
Corporate Bonds | ||
Assets: | ||
Short-term investments | 31,910 | |
Money Market Fund | ||
Assets: | ||
Cash equivalents | 116,456 | 197,303 |
Corporate Bonds | ||
Assets: | ||
Cash equivalents | 3,999 | |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Total fair value assets | 318,258 | 377,771 |
Fair Value, Inputs, Level 1 | US Treasuries | ||
Assets: | ||
Short-term investments | 201,802 | 180,468 |
Fair Value, Inputs, Level 1 | Money Market Fund | ||
Assets: | ||
Cash equivalents | 116,456 | $ 197,303 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Total fair value assets | 35,909 | |
Fair Value, Inputs, Level 2 | Corporate Bonds | ||
Assets: | ||
Short-term investments | 31,910 | |
Fair Value, Inputs, Level 2 | Corporate Bonds | ||
Assets: | ||
Cash equivalents | $ 3,999 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Summary of Estimated Fair Value and Amortized Cost of Short term Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Due in one year or less, Amortized cost | $ 232,815 | $ 180,463 |
Due in one year or less, Unrealized gains | 897 | 5 |
Due in one year or less, Fair value | 233,712 | 180,468 |
Amortized Cost | 232,815 | 180,463 |
Unrealized Gains | 897 | 5 |
Fair Value | $ 233,712 | $ 180,468 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Additional Information (Details) - USD ($) | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2018 | |
Derivative Liabilities [Abstract] | |||||
Derivative Liability | $ 0 | $ 0 | $ 800,000 | $ 400,000 | |
Change in fair value of derivative | $ 135,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Feb. 29, 2020ft² | Jan. 31, 2020ft² | May 31, 2012USD ($) | Mar. 31, 2011USD ($) | Jun. 30, 2020USD ($)ft²Milestone | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Feb. 01, 2020USD ($) | |
Commitments And Contingencies [Line Items] | ||||||||
Operating lease liability remeasurement amount | $ 400,000 | |||||||
Incremental lease liabilities arising from obtaining ROU assets | $ 2,851,000 | |||||||
Contingency reserves for litigation | $ 0 | |||||||
Intellectual Property License Agreement | Eli Lilly and Company | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Upfront payment | $ 100,000 | |||||||
Royalty expiration term | 6 years | |||||||
Number of milestones reached | Milestone | 0 | |||||||
Milestone payments | $ 0 | |||||||
License agreement term | 15 years | |||||||
Intellectual Property License Agreement | Eli Lilly and Company | Maximum | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Contingent milestone payments payable | $ 16,000,000 | |||||||
Commercial milestone payments payable | $ 54,000,000 | |||||||
Patent License | PureTech Health | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Expenses incurred | $ 0 | $ 0 | ||||||
Outstanding liabilities | 0 | $ 0 | ||||||
Patent License | Maximum | PureTech Health | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Contingent milestone payments payable | $ 10,000,000 | |||||||
Percentage of royalties payable on income from sublicensee, excluding royalties | 25.00% | |||||||
Patent License | Minimum | PureTech Health | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Percentage of royalties payable on income from sublicensee, excluding royalties | 15.00% | |||||||
ASU 2016-02 | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Incremental lease liabilities arising from obtaining ROU assets | $ 1,400,000 | |||||||
Office Space | Massachusetts | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
No. of square feet acquired | ft² | 4,175 | 7,050 | ||||||
Lease commencement period | 2020-03 | 2018-12 | ||||||
Lease expiration period | 2023-12 | 2023-02 | ||||||
Restricted cash | $ 200,000 | $ 200,000 | ||||||
Leasehold incentives | $ 100,000 | |||||||
Office Space And Furniture | Carmel, Indiana | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
No. of square feet acquired | ft² | 5,050 | |||||||
Lease commencement period | 2020-06 | |||||||
Lease expiration period | 2023-07 |
Commitments and Contingencies_2
Commitments and Contingencies - Components of Lease Cost (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Lease Cost | |
Operating lease cost | $ 348 |
Total lease cost | 348 |
Cash paid for amounts included in the measurement of lease liabilities | 308 |
Lease liabilities arising from obtaining right-of-use assets | $ 2,851 |
Weighted-average remaining lease term | 3 years 5 months 8 days |
Weighted-average discount rate | 6.16% |
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 | Jun. 30, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
December 31, 2020 | $ 392 |
December 31, 2021 | 845 |
December 31, 2022 | 860 |
December 31, 2023 | 804 |
Total future minimum lease payments | 2,901 |
Less imputed interest | (283) |
Present value of lease liabilities | $ 2,618 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Non-Cancelable Operating Lease Agreements (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
December 31, 2020 | $ 499 |
December 31, 2021 | 506 |
December 31, 2022 | 514 |
December 31, 2023 | 86 |
Total | $ 1,605 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - PureTech Health - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
General and administrative expenses incurred | $ 0 | ||
Outstanding current liabilities due to related party | $ 0 | ||
Maximum | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses incurred | $ 100,000 | ||
Outstanding current liabilities due to related party | $ 100,000 |
401(k) Savings Plan - Additiona
401(k) Savings Plan - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined contribution plan, plan name | 401(k) | |
Total contribution matching expense | $ 0.1 | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total contribution matching expense | $ 0.1 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Jul. 02, 2020USD ($) |
At-the-Market Offering Program | Common Stock | Maximum | Subsequent Event | |
Subsidiary Sale Of Stock [Line Items] | |
Value of Common stock to be sold | $ 150,000,000 |