Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
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 | 29,457,896 | |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 353,685 | $ 53,048 |
Investment securities, available-for-sale | 217,610 | 269,282 |
Prepaid expenses and other current assets | 18,318 | 21,864 |
Deferred offering costs | 405 | 405 |
Total current assets | 590,018 | 344,599 |
Restricted cash | 261 | 157 |
Right-of-use lease assets - operating, net | 1,576 | 2,420 |
Property and equipment, net | 403 | 449 |
Other non-current assets | 1,006 | |
Total assets | 593,264 | 347,625 |
Current liabilities: | ||
Accounts payable | 1,298 | 865 |
Accrued expenses | 4,433 | 5,144 |
Current portion of operating lease liability | 862 | 844 |
Deferred rent | 35 | |
Total current liabilities | 6,628 | 6,853 |
Operating lease liability, net of current portion | 1,618 | 1,841 |
Other non-current liabilities | 104 | |
Total liabilities | 8,350 | 8,694 |
Commitments and Contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized and 0 shares outstanding as of March 31, 2021 and December 31, 2020 | ||
Common stock, $0.0001 par value; 150,000,000 shares authorized at March 31, 2021 and December 31, 2020; 29,441,168 and 26,988,458 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 3 | 3 |
Additional paid-in capital | 759,465 | 482,955 |
Accumulated deficit | (174,563) | (144,066) |
Accumulated other comprehensive income | 9 | 39 |
Total stockholders’ equity | 584,914 | 338,931 |
Total liabilities and stockholders’ equity | $ 593,264 | $ 347,625 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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 | 29,441,168 | 26,988,458 |
Common stock, shares outstanding | 29,441,168 | 26,988,458 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating expenses: | ||
Research and development | $ 20,186 | $ 4,420 |
General and administrative | 9,777 | 5,635 |
Total operating expenses | 29,963 | 10,055 |
Loss from operations | (29,963) | (10,055) |
Other income (loss), net: | ||
Impairment loss on right-of-use assets | (677) | |
Interest income | 143 | 1,397 |
Total other income (loss), net | (534) | 1,397 |
Net loss before income taxes | (30,497) | (8,658) |
Net loss attributable to common stockholders | $ (30,497) | $ (8,658) |
Net loss per share, basic and diluted (Note 5) | $ (1.10) | $ (0.33) |
Weighted average common shares outstanding used in computing net loss per share, basic and diluted | 27,786,538 | 26,042,434 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (30,497) | $ (8,658) |
Other comprehensive income (loss): | ||
Unrealized gains (losses) on available-for-sale investments | (30) | 1,566 |
Comprehensive loss | $ (30,527) | $ (7,092) |
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 Income |
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 | ||||
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 | 5,822 | 5,822 | |||
Exercise of common options | $ 671 | 671 | |||
Exercise of common options, shares | 56,876 | 56,876 | |||
Other comprehensive income (loss) | $ (30) | (30) | |||
Net loss | (30,497) | (30,497) | |||
Ending balance at Mar. 31, 2021 | $ 584,914 | $ 3 | $ 759,465 | $ (174,563) | $ 9 |
Ending balance, shares at Mar. 31, 2021 | 29,441,168 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Public Offering | |
Underwriting discounts and commissions | $ 17,250 |
Offering cost | $ 233 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (30,497) | $ (8,658) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 5,822 | 1,634 |
Impairment loss on right-of-use assets | 677 | |
Amortization of premiums and accretion of discounts on investment securities | 221 | (21) |
Depreciation and amortization expense | 112 | 21 |
Changes in operating assets and liabilities: | ||
Change in accrued interest on investment securities | 277 | (441) |
Prepaid expenses and other current assets | 3,546 | 132 |
Right-of-use assets | 167 | 121 |
Other non-current assets | (1,006) | |
Accounts payable | 322 | 24 |
Accrued expenses | (754) | (1,051) |
Operating lease liability | (205) | (102) |
Deferred rent | 35 | |
Other non-current liabilities | 104 | |
Net cash used in operating activities | (21,179) | (8,341) |
Cash flows from investing activities | ||
Purchases of investment securities | (80,856) | (70,350) |
Maturities of investment securities | 132,000 | 60,000 |
Acquisition of property and equipment | (47) | (76) |
Net cash provided by (used in) investing activities | 51,097 | (10,426) |
Cash flows from financing activities | ||
Proceeds from public offering, net of underwriting discounts and commissions | 270,250 | |
Payment of offering costs | (98) | |
Proceeds from exercise of stock options | 671 | 517 |
Net cash provided by financing activities | 270,823 | 517 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 300,741 | (18,250) |
Cash, cash equivalents and restricted cash at beginning of period | 53,205 | 209,052 |
Cash, cash equivalents and restricted cash at end of period | 353,946 | 190,802 |
Supplemental disclosures of cash flows information | ||
Lease liabilities arising from obtaining right-of-use assets | 2,851 | |
Deferred offering costs included in accounts payable and accrued expenses | 135 | 34 |
Purchases of property and equipment included in accounts payable and accrued expenses | $ 19 | $ 121 |
Nature of the Business
Nature of the Business | 3 Months Ended |
Mar. 31, 2021 | |
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 COVID-19 coronavirus pandemic, and the need to obtain adequate additional financing to fund the development of its product candidates. 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 $234.2 million after deducting underwriting discounts and commissions of $15.0 million and offering expenses of $0.4 million. On July 2, 2020, the Company filed an automatically effective registration statement on Form S-3 (the “Registration Statement”) 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 Registration Statement and related prospectus filed with the Registration Statement (the “ATM Program”). As of March 31, 2021 , no sales had been made pursuant to the ATM Program. On March 4, 2021, the Company completed a follow-on public offering under the Registration Statement and a related prospectus supplement in which it issued and sold 2,395,834 shares of common stock, including full exercise of the underwriters’ over-allotment option to purchase an additional 312,500 shares of common stock, at a public offering price of $120 per share. The aggregate net proceeds to the Company from the offering, inclusive of proceeds from the over-allotment exercise, were $270.0 million after deducting underwriting discounts and commissions of $17.3 million and offering expenses of $0.2 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 $21.2 million for the three months ended March 31, 2021 T he Company expects that its cash , cash equivalents and available - for - sale investments of $ 571.3 million as of March 31, 2021 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. If the Company is unable to obtain funding when needed, 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 March 31, 2021, the consolidated statements of operations, comprehensive loss, consolidated statements of cash flows, and stockholders’ equity for the three months ended March 31, 2021 and 2020 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 March 31, 2021 and the results of its operations for the three months ended March 31, 2021 and 2020 and the results of its cash flows for the three months ended March 31, 2021 and 2020. 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, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K. During the three months ended March 31, 2021, there were no material changes to the Company’s significant accounting policies, notwithstanding the following policy. Impairment of Long-Lived Assets The Company continually evaluates long-lived assets for potential impairment when events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Recoverability is measured by comparing the carrying values of the assets to the expected future net undiscounted cash flows that the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the book values of the assets exceed their fair value. Recently Adopted Accounting Pronouncements New pronouncements issued but not effective until after March 31, 2021 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 | 3 Months Ended |
Mar. 31, 2021 | |
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): March 31, 2021 December 31, 2020 Prepaid research and development expenses $ 16,730 $ 18,660 Prepaid insurance 1,053 2,116 Other 535 1,088 Total prepaid expenses and other current assets $ 18,318 $ 21,864 The Company also had other non-current assets of $1.0 million as of March 31, 2021, which consisted of $0.6 million in prepaid research and development expenses and a security deposit of $0.4 million. Accrued expenses consisted of the following (in thousands): March 31, 2021 December 31, 2020 Accrued payroll and related expenses $ 1,047 $ 2,654 Accrued research and development expenses 2,755 1,829 Professional fees 375 458 Other 256 203 Total accrued expenses $ 4,433 $ 5,144 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Note 4. 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 March 31, 2021 or December 31, 2020. Common Stock As of March 31, 2021, 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 March 31, 2021 , no cash dividends have been declared or paid. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Note 5. 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 months ended March 31, 2021 and 2020 Three Months Ended March 31, 2021 2020 Net Loss $ (30,497 ) $ (8,658 ) Weighted-average shares used in computing net loss per share 27,786,538 26,042,434 Net loss per share, basic and diluted $ (1.10 ) $ (0.33 ) 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 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: March 31, 2021 2020 Stock options to purchase common stock 5,171,914 4,974,356 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | Note 6. 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. 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, 2020 4,612,790 $ 28.63 8.3 $ 336,740 Granted 644,625 128.50 Exercised (56,876 ) 11.80 Forfeited (28,625 ) 38.73 Outstanding as of March 31, 2021 5,171,914 $ 41.21 8.3 $ 415,257 Options vested and expected to vest as of March 31, 2021 5,171,914 $ 41.21 8.3 $ 415,257 Options exercisable as of March 31, 2021 3,099,022 $ 14.12 7.7 $ 328,828 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 March 31, 2021. As of March 31, 2021, there was $86.0 million of unrecognized compensation cost, which is expected to be recognized over a weighted-average period of 3.4 years. Stock-based Compensation Expense Stock-based compensation expense is classified in the statements of operations for the three months ended March 31, 2021 and 2020 as follows (in thousands): Three Months Ended March 31, 2021 2020 General and administrative $ 3,741 $ 1,285 Research and development 2,081 349 Total stock-based compensation expense $ 5,822 $ 1,634 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
Fair Value of Financial Assets and Liabilities | Note 7. Fair Value of Financial Assets and Liabilities The following tables present information about the Company’s assets as of March 31, 2021 and December 31, 2020 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 March 31, 2021 Using Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 335,151 $ — $ — $ 335,151 Commercial paper — 12,000 — 12,000 Investment securities: U.S. Treasuries 99,912 — — 99,912 Corporate debt securities — 28,762 — 28,762 Commercial paper — 88,936 — 88,936 Total $ 435,063 $ 129,698 $ — $ 564,761 Fair Value Measurement at December 31, 2020 Using Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 50,141 $ — $ — $ 50,141 Investment securities: U.S. Treasuries 172,295 — — 172,295 Corporate debt securities — 36,817 — 36,817 Commercial paper — 60,170 — 60,170 Total $ 222,436 $ 96,987 $ — $ 319,423 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): March 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasuries (due within one year) 99,907 5 — 99,912 Corporate debt securities (due within one year) 24,639 1 (9 ) 24,631 Corporate debt securities (due after one year and less than two years) 4,131 — — 4,131 Commercial paper (due within one year) 88,924 13 (1 ) 88,936 Total $ 217,601 $ 19 $ (10 ) $ 217,610 December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasuries (due within one year) $ 172,265 $ 37 $ (7 ) $ 172,295 Corporate debt securities (due within one year) 36,823 3 (9 ) 36,817 Commercial paper (due within one year) 60,155 16 (1 ) 60,170 Total $ 269,243 $ 56 $ (17 ) $ 269,282 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 March 31, 2021 and December 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8. 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 Lease 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 March 31, 2021 and December 31, 2020. The Amended Lease 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 ROU 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. T he Company recognized approximately $1.8 million in incremental lease liabilities arising from obtaining ROU assets as a result of the Amended Lease Agreement and Indiana Lease Agreement in the three months ended March 31, 2020. The components of lease cost were as follows (dollar amounts in thousands): Three Months Ended March 31, 2021 2020 Lease Cost Operating lease cost $ 207 $ 155 Short-term lease cost — — Total lease cost $ 207 $ 155 Other Information Cash paid for amounts included in the measurement of lease liabilities $ 244 $ 136 Operating lease liabilities arising from obtaining right-of-use assets $ — $ 2,851 Weighted-average remaining lease term 2.69 years 3.69 years Weighted-average discount rate 6.21 % 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 March 31, 2021 (in thousands): Year ended: December 31, 2021 738 December 31, 2022 1,001 December 31, 2023 949 Total future minimum lease payments 2,688 Less imputed interest (208 ) Present value of lease liabilities $ 2,480 In March 2021, the Company entered into an agreement (“High Street Lease”) to sublease approximately 25,445 square feet of office space in Boston, Massachusetts, beginning on April 1, 2021. 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, which have been recorded within prepaid expense and other current assets and other non-current assets, respectively, on the consolidated balance sheet as of March 31, 2021. Simultaneously, the Company entered into an agreement to sublease (“Original Premises Sublease”) approximately 7,050 square feet of its current Boston office space 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 July 1, 2021. Upon signing of the Original Premises Sublease, the agreement required payment of the first full monthly installment of base rent of less than $0.1 million and a security deposit of $0.1 million, which have been recorded within deferred rent and other non-current liabilities, respectively, on the consolidated balance sheet as of March 31, 2021. 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 Original Premises and Expansion Premises had their own separately identifiable cash flows and therefore their own separate asset grouping. Further, sublease income associated with the existing corporate 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 three months ended March 31, 2021. The Company expects to recognize a 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. 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 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 March 31, 2021, 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 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. The Company incurred no expenses related to the Patent License Agreement provided by PureTech Health during the three months ended March 31, 2021 or 2020. In December 2020, the Company paid $2.0 million to PureTech Health, having reached the milestone of Phase 3 clinical trial commencement. The Company had no outstanding liabilities to PureTech Health related to the Patent License Agreement as of March 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 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 March 31, 2021. |
401(k) Savings Plan
401(k) Savings Plan | 3 Months Ended |
Mar. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
401(k) Savings Plan | Note 9. 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 $0.2 million and less than $0.1 million for the three months ended March 31, 2021 and 2020, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10. Subsequent Events On April 30, 2021, the Company entered into an agreement (“First Expansion Premises Sublease”) to sublease approximately 1,751 square feet of its Expansion Premises to a 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 May 5, 2021, the Company’s Board of Directors adopted resolutions to amend and restate the Company’s amended and restated bylaws to provide that unless the Company consents in writing to the selection of an alternative forum, the federal district courts of the United States of America shall be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021, the consolidated statements of operations, comprehensive loss, consolidated statements of cash flows, and stockholders’ equity for the three months ended March 31, 2021 and 2020 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 March 31, 2021 and the results of its operations for the three months ended March 31, 2021 and 2020 and the results of its cash flows for the three months ended March 31, 2021 and 2020. 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, 2020. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company continually evaluates long-lived assets for potential impairment when events or changes in circumstances indicate the carrying value of the assets may not be recoverable. Recoverability is measured by comparing the carrying values of the assets to the expected future net undiscounted cash flows that the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the book values of the assets exceed their fair value. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements New pronouncements issued but not effective until after March 31, 2021 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) | 3 Months Ended |
Mar. 31, 2021 | |
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): March 31, 2021 December 31, 2020 Prepaid research and development expenses $ 16,730 $ 18,660 Prepaid insurance 1,053 2,116 Other 535 1,088 Total prepaid expenses and other current assets $ 18,318 $ 21,864 |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): March 31, 2021 December 31, 2020 Accrued payroll and related expenses $ 1,047 $ 2,654 Accrued research and development expenses 2,755 1,829 Professional fees 375 458 Other 256 203 Total accrued expenses $ 4,433 $ 5,144 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 months ended March 31, 2021 and 2020 Three Months Ended March 31, 2021 2020 Net Loss $ (30,497 ) $ (8,658 ) Weighted-average shares used in computing net loss per share 27,786,538 26,042,434 Net loss per share, basic and diluted $ (1.10 ) $ (0.33 ) |
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: March 31, 2021 2020 Stock options to purchase common stock 5,171,914 4,974,356 |
Stock-based Compensation (Tabl
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020 4,612,790 $ 28.63 8.3 $ 336,740 Granted 644,625 128.50 Exercised (56,876 ) 11.80 Forfeited (28,625 ) 38.73 Outstanding as of March 31, 2021 5,171,914 $ 41.21 8.3 $ 415,257 Options vested and expected to vest as of March 31, 2021 5,171,914 $ 41.21 8.3 $ 415,257 Options exercisable as of March 31, 2021 3,099,022 $ 14.12 7.7 $ 328,828 |
Summary of Stock-based Compensation Expense | Stock-based compensation expense is classified in the statements of operations for the three months ended March 31, 2021 and 2020 as follows (in thousands): Three Months Ended March 31, 2021 2020 General and administrative $ 3,741 $ 1,285 Research and development 2,081 349 Total stock-based compensation expense $ 5,822 $ 1,634 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020 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 March 31, 2021 Using Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 335,151 $ — $ — $ 335,151 Commercial paper — 12,000 — 12,000 Investment securities: U.S. Treasuries 99,912 — — 99,912 Corporate debt securities — 28,762 — 28,762 Commercial paper — 88,936 — 88,936 Total $ 435,063 $ 129,698 $ — $ 564,761 Fair Value Measurement at December 31, 2020 Using Level 1 Level 2 Level 3 Total Cash equivalents: Money market fund $ 50,141 $ — $ — $ 50,141 Investment securities: U.S. Treasuries 172,295 — — 172,295 Corporate debt securities — 36,817 — 36,817 Commercial paper — 60,170 — 60,170 Total $ 222,436 $ 96,987 $ — $ 319,423 |
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): March 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasuries (due within one year) 99,907 5 — 99,912 Corporate debt securities (due within one year) 24,639 1 (9 ) 24,631 Corporate debt securities (due after one year and less than two years) 4,131 — — 4,131 Commercial paper (due within one year) 88,924 13 (1 ) 88,936 Total $ 217,601 $ 19 $ (10 ) $ 217,610 December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasuries (due within one year) $ 172,265 $ 37 $ (7 ) $ 172,295 Corporate debt securities (due within one year) 36,823 3 (9 ) 36,817 Commercial paper (due within one year) 60,155 16 (1 ) 60,170 Total $ 269,243 $ 56 $ (17 ) $ 269,282 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Components of Lease Cost | The components of lease cost were as follows (dollar amounts in thousands): Three Months Ended March 31, 2021 2020 Lease Cost Operating lease cost $ 207 $ 155 Short-term lease cost — — Total lease cost $ 207 $ 155 Other Information Cash paid for amounts included in the measurement of lease liabilities $ 244 $ 136 Operating lease liabilities arising from obtaining right-of-use assets $ — $ 2,851 Weighted-average remaining lease term 2.69 years 3.69 years Weighted-average discount rate 6.21 % 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 March 31, 2021 (in thousands): Year ended: December 31, 2021 738 December 31, 2022 1,001 December 31, 2023 949 Total future minimum lease payments 2,688 Less imputed interest (208 ) Present value of lease liabilities $ 2,480 |
Nature of the Business - Additi
Nature of the Business - Additional Information (Details) - USD ($) | Mar. 04, 2021 | Nov. 25, 2019 | Jul. 02, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jul. 02, 2020 |
Subsidiary Sale Of Stock [Line Items] | |||||||
Payment of offering costs | $ 98,000 | ||||||
Common stock value | 3,000 | $ 3,000 | |||||
Deferred offering costs | 405,000 | 405,000 | |||||
Cash flows from operating activities | 21,179,000 | $ 8,341,000 | |||||
Accumulated deficit | 174,563,000 | $ 144,066,000 | |||||
Cash and cash equivalents and available-for-sale investments | $ 571,300,000 | ||||||
Common Stock | |||||||
Subsidiary Sale Of Stock [Line Items] | |||||||
Shares issued and sold | 2,395,834 | ||||||
Redeemable Convertible Preferred Stock | |||||||
Subsidiary Sale Of Stock [Line Items] | |||||||
Temporary Equity, shares outstanding | 12,962,045 | ||||||
Redeemable Convertible Preferred Stock | Common Stock | |||||||
Subsidiary Sale Of Stock [Line Items] | |||||||
Conversion of stock, shares issued | 16,833,790 | ||||||
Initial Public Offering | Common Stock | |||||||
Subsidiary Sale Of Stock [Line Items] | |||||||
Shares issued and sold | 6,414,842 | ||||||
Public offering price pre share | $ 16 | ||||||
Net proceeds from initial public offering | $ 93,000,000 | ||||||
Underwriting discounts and commissions | 7,200,000 | ||||||
Payment of offering costs | $ 2,400,000 | ||||||
Underwriters' Over-Allotment Option | Common Stock | |||||||
Subsidiary Sale Of Stock [Line Items] | |||||||
Shares issued and sold | 312,500 | 836,718 | |||||
Secondary Public Offering | Common Stock | |||||||
Subsidiary Sale Of Stock [Line Items] | |||||||
Shares issued and sold | 2,600,000 | ||||||
Public offering price pre share | $ 96 | ||||||
Underwriting discounts and commissions | $ 15,000,000 | ||||||
Net proceeds from public offering | 234,200,000 | ||||||
Offering expenses related to secondary public offering | $ 400,000 | ||||||
At-the-Market Offering Program | |||||||
Subsidiary Sale Of Stock [Line Items] | |||||||
Revenue | $ 0 | ||||||
At-the-Market Offering Program | Maximum | |||||||
Subsidiary Sale Of Stock [Line Items] | |||||||
Common stock value | $ 150,000,000 | ||||||
Follow-on Public Offering | Common Stock | |||||||
Subsidiary Sale Of Stock [Line Items] | |||||||
Shares issued and sold | 2,395,834 | ||||||
Public offering price pre share | $ 120 | ||||||
Underwriting discounts and commissions | $ 17,300,000 | ||||||
Net proceeds from public offering | 270,000,000 | ||||||
Deferred offering costs | $ 200,000 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid research and development expenses | $ 16,730 | $ 18,660 |
Prepaid insurance | 1,053 | 2,116 |
Other | 535 | 1,088 |
Total prepaid expenses and other current assets | $ 18,318 | $ 21,864 |
Prepaid Expenses and Other As_4
Prepaid Expenses and Other Assets and Accrued Expenses - Additional Information (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Payables And Accruals [Abstract] | |
Other non-current assets | $ 1,006 |
Prepaid research and development expenses | 600 |
Security deposit | $ 400 |
Prepaid Expenses and Other As_5
Prepaid Expenses and Other Assets and Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued payroll and related expenses | $ 1,047 | $ 2,654 |
Accrued research and development expenses | 2,755 | 1,829 |
Professional fees | 375 | 458 |
Other | 256 | 203 |
Total accrued expenses | $ 4,433 | $ 5,144 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | 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 | ||
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share Basic And Diluted [Abstract] | ||
Net Loss | $ (30,497) | $ (8,658) |
Weighted-average shares used in computing net loss per share | 27,786,538 | 26,042,434 |
Net loss per share, basic and diluted | $ (1.10) | $ (0.33) |
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 | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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 | 5,171,914 | 4,974,356 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Sep. 30, 2009 | Mar. 31, 2021 | Dec. 31, 2020 | May 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares outstanding | 5,171,914 | 4,612,790 | ||
Unrecognized compensation cost | $ 86 | |||
Unrecognized compensation costs, weighted average recognition period | 3 years 4 months 24 days | |||
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 | 2,618,016 | |||
2019 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Aggregate common shares issuable | 1,412,344 | |||
Number of shares outstanding | 2,553,898 | |||
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 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) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Compensation Related Costs [Abstract] | ||
Number of Shares, Outstanding, beginning of period | 4,612,790 | |
Number of Shares, Granted | 644,625 | |
Number of Shares, Exercised | (56,876) | |
Number of Shares, Forfeited | (28,625) | |
Number of Shares, Outstanding, end of period | 5,171,914 | 4,612,790 |
Number of Shares, Options vested and expected to vest | 5,171,914 | |
Number of Shares, Options exercisable | 3,099,022 | |
Weighted-Average Exercise Price Per Share, Outstanding, beginning of period | $ 28.63 | |
Weighted-Average Exercise Price Per Share, Outstanding, Granted | 128.50 | |
Weighted-Average Exercise Price Per Share, Outstanding, Exercised | 11.80 | |
Weighted-Average Exercise Price Per Share, Outstanding, Forfeited | 38.73 | |
Weighted-Average Exercise Price Per Share, Outstanding, end of period | 41.21 | $ 28.63 |
Weighted-Average Exercise Price Per Share, Options vested and expected to vest | 41.21 | |
Weighted-Average Exercise Price Per Share, Options exercisable | $ 14.12 | |
Weighted-Average Remaining Contractual Term, Outstanding (Years) | 8 years 3 months 18 days | 8 years 3 months 18 days |
Weighted-Average Remaining Contractual Term, Options vested and expected to vest | 8 years 3 months 18 days | |
Weighted-Average Remaining Contractual Term, Options exercisable | 7 years 8 months 12 days | |
Aggregate Intrinsic Value, Outstanding | $ 415,257 | $ 336,740 |
Aggregate Intrinsic Value, Options vested and expected to vest | 415,257 | |
Aggregate Intrinsic Value, Options exercisable | $ 328,828 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock based compensation expense | $ 5,822 | $ 1,634 |
Research and Development | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock based compensation expense | 2,081 | 349 |
General and Administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock based compensation expense | $ 3,741 | $ 1,285 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value assets | $ 564,761 | $ 319,423 |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 28,762 | 36,817 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 335,151 | 50,141 |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 12,000 | |
Investment securities | 88,936 | 60,170 |
US Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 99,912 | 172,295 |
Fair Value, Inputs, Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value assets | 435,063 | 222,436 |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 335,151 | 50,141 |
Fair Value, Inputs, Level 1 | US Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 99,912 | 172,295 |
Fair Value, Inputs, Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total fair value assets | 129,698 | 96,987 |
Fair Value, Inputs, Level 2 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities | 28,762 | 36,817 |
Fair Value, Inputs, Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 12,000 | |
Investment securities | $ 88,936 | $ 60,170 |
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 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Amortized Cost | $ 217,601 | $ 269,243 | |
Unrealized Gains | 19 | 56 | |
Unrealized Losses | (10) | (17) | |
Fair Value | 217,610 | 269,282 | |
Corporate Debt Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Due within in one year, Amortized cost | 24,639 | 36,823 | |
Due within one year, Amortized cost, Unrealized gains | 1 | 3 | |
Due within one year , Amortized cost, Unrealized losses | (9) | (9) | |
Due in one year or less, Fair value | 24,631 | 36,817 | |
Due after one year and less than two years, Amortized cost | 4,131 | ||
Due after one year and less than two years, Fair value | 4,131 | ||
US Treasury Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Due within in one year, Amortized cost | 172,265 | $ 99,907 | |
Due within one year, Amortized cost, Unrealized gains | 37 | 5 | |
Due within one year , Amortized cost | (7) | ||
Due in one year or less, Fair value | 172,295 | $ 99,912 | |
Commercial Paper | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Due within in one year, Amortized cost | 88,924 | 60,155 | |
Due within one year, Amortized cost, Unrealized gains | 13 | 16 | |
Due within one year , Amortized cost, Unrealized losses | (1) | (1) | |
Due in one year or less, Fair value | $ 88,936 | $ 60,170 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2021USD ($)ft²$ / ft² | Dec. 31, 2020USD ($) | Feb. 29, 2020ft² | Jan. 31, 2020ft² | May 31, 2012USD ($) | Mar. 31, 2011USD ($) | Mar. 31, 2021USD ($)ft²Milestone | Mar. 31, 2020USD ($) | Dec. 31, 2019 | Apr. 01, 2021USD ($) | Feb. 01, 2020USD ($) | |
Commitments And Contingencies [Line Items] | |||||||||||
Restricted cash | $ 261,000 | $ 157,000 | $ 261,000 | ||||||||
Operating lease liability remeasurement amount | $ 400,000 | ||||||||||
Incremental lease liabilities arising from obtaining ROU assets | $ 2,851,000 | ||||||||||
Security deposit | 400,000 | 400,000 | |||||||||
Right of use assets, net | 1,576,000 | 2,420,000 | 1,576,000 | ||||||||
Impairment loss on right-of-use assets | 677,000 | ||||||||||
Operating lease liability | 2,480,000 | 2,480,000 | |||||||||
Contingency reserves for litigation | 0 | $ 0 | |||||||||
PureTech Health | Phase III Clinical Trial | |||||||||||
Commitments And Contingencies [Line Items] | |||||||||||
Milestone payments | 2,000,000 | ||||||||||
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 | ||||||||||
Patent License | PureTech Health | |||||||||||
Commitments And Contingencies [Line Items] | |||||||||||
Expenses incurred | $ 0 | $ 0 | |||||||||
Outstanding liabilities | 0 | 0 | 0 | ||||||||
Maximum | Intellectual Property License Agreement | Eli Lilly and Company | |||||||||||
Commitments And Contingencies [Line Items] | |||||||||||
Contingent milestone payments payable | $ 16,000,000 | ||||||||||
Commercial milestone payments payable | $ 54,000,000 | ||||||||||
Maximum | Patent License | 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% | ||||||||||
Minimum | Patent License | 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 | 1,800,000 | ||||||||||
Office Space | |||||||||||
Commitments And Contingencies [Line Items] | |||||||||||
Right of use assets, gross | 2,000,000 | 2,000,000 | |||||||||
Right of use assets, net | 1,300,000 | 1,300,000 | |||||||||
Impairment loss on right-of-use assets | $ 700,000 | ||||||||||
Office Space | Subsequent Event | |||||||||||
Commitments And Contingencies [Line Items] | |||||||||||
Right of use assets, net | $ 6,200,000 | ||||||||||
Operating lease liability | $ 6,000,000 | ||||||||||
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 | $ 200,000 | ||||||||
Leasehold incentives | $ 100,000 | $ 100,000 | |||||||||
Office Space | Boston, Massachusetts | |||||||||||
Commitments And Contingencies [Line Items] | |||||||||||
Sublease area of office space | ft² | 25,445 | 25,445 | |||||||||
Sublease commencement date | Apr. 1, 2021 | ||||||||||
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. 1, 2021 | ||||||||||
Monthly installment of base rental | $ 100,000 | ||||||||||
Security deposit | $ 400,000 | $ 400,000 | |||||||||
Office Space | Boston | |||||||||||
Commitments And Contingencies [Line Items] | |||||||||||
Sublease commencement date | Jul. 1, 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 | 2.00% | ||||||||||
Office Space | Boston | Other Non-Current Liabilities | |||||||||||
Commitments And Contingencies [Line Items] | |||||||||||
Security deposit liability | $ 100,000 | $ 100,000 | |||||||||
Office Space | Boston | Maximum | Deferred Rent | |||||||||||
Commitments And Contingencies [Line Items] | |||||||||||
Monthly installment of base rental income | $ 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) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lease Cost | ||
Operating lease cost | $ 207 | $ 155 |
Total lease cost | 207 | 155 |
Cash paid for amounts included in the measurement of lease liabilities | $ 244 | 136 |
Operating lease liabilities arising from obtaining right-of-use assets | $ 2,851 | |
Weighted-average remaining lease term | 2 years 8 months 8 days | 3 years 8 months 8 days |
Weighted-average discount rate | 6.21% | 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 | Mar. 31, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
December 31, 2021 | $ 738 |
December 31, 2022 | 1,001 |
December 31, 2023 | 949 |
Total future minimum lease payments | 2,688 |
Less imputed interest | (208) |
Present value of lease liabilities | $ 2,480 |
401(k) Savings Plan - Additiona
401(k) Savings Plan - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined contribution plan, plan name | 401(k) | |
Total contribution expense | $ 200,000 | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total contribution expense | $ 100,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Premises - Subsequent Event | Apr. 30, 2021ft²$ / ft² |
Subsequent Event [Line Items] | |
Sublease square feet | ft² | 1,751 |
Sublease commencement date | Jun. 1, 2021 |
Lease expiration date | Dec. 31, 2023 |
Sublease, initial fixed rental income per rentable square foot of premises per annum | $ / ft² | 61 |
Sublease, initial fixed rental income increase rate per rentable square foot each year | 2.00% |