Arcutis Biotherapeutics (ARQT) 10-K 28 Feb 23 2022 FY Annual report Financial data

Cover Page

Cover Page - USD ($)	12 Months Ended
	Dec. 31, 2022	Feb. 24, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-39186
Entity Registrant Name	ARCUTIS BIOTHERAPEUTICS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-2974255
Entity Address, Address Line One	3027 Townsgate Road
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Westlake Village
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91361
City Area Code	805
Local Phone Number	418-5006
Title of 12(b) Security	Common Stock, par value $0.0001
Trading Symbol	ARQT
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 878,402,846
Entity Common Stock, Shares Outstanding		61,082,872
Documents Incorporated by Reference	Portions of the registrant’s Proxy Statement for the registrant’s 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K to the extent stated herein. The Proxy Statement will be filed within 120 days of the registrant’s fiscal year ended December 31, 2022.
Entity Central Index Key	0001787306
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Firm ID	42
Auditor Name	Ernst & Young LLP
Auditor Location	Los Angeles, California

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 53,641,000	$ 96,449,000
Restricted cash	1,234,000	1,542,000
Marketable securities	355,948,000	290,610,000
Trade receivables, net	8,458,000	0
Inventory	7,514,000	0
Prepaid expenses and other current assets	10,611,000	14,172,000
Total current assets	437,406,000	402,773,000
Property and equipment, net	1,881,000	2,261,000
Intangible assets, net	7,188,000	0
Operating lease right-of-use asset	2,721,000	3,040,000
Other assets	78,000	78,000
Total assets	449,274,000	408,152,000
Current liabilities:
Accounts payable	8,827,000	7,353,000
Accrued liabilities	28,323,000	25,540,000
Operating lease liability	657,000	433,000
Total current liabilities	37,807,000	33,326,000
Operating lease liability, noncurrent	4,117,000	4,774,000
Long-term debt, net	197,769,000	72,350,000
Other long-term liabilities	0	25,000
Total liabilities	239,693,000	110,475,000
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized at December 31, 2022 and December 31, 2021; no shares issued and outstanding at December 31, 2022 and December 31, 2021;	0	0
Common stock, $0.0001 par value; 300,000,000 and 300,000,000 shares authorized at December 31, 2022 and December 31, 2021, respectively; 61,052,250 and 50,345,755 shares issued at December 31, 2022 and December 31, 2021, respectively; 61,036,787 and 50,255,614 shares outstanding at December 31, 2022 and December 31, 2021, respectively	6,000	5,000
Additional paid-in capital	930,425,000	706,233,000
Accumulated other comprehensive loss	(1,086,000)	(255,000)
Accumulated deficit	(719,764,000)	(408,306,000)
Total stockholders’ equity	209,581,000	297,677,000
Total liabilities and stockholders’ equity	$ 449,274,000	$ 408,152,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares, issued (in shares)	61,052,250	50,345,755
Common stock, shares outstanding (in shares)	61,036,787	50,255,614

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues:
Total revenues	$ 3,686	$ 0	$ 0
Operating expenses:
Cost of sales	754	0	0
Research and development	182,435	145,558	115,308
Selling, general and administrative	122,124	60,971	21,337
Total operating expenses	305,313	206,529	136,645
Loss from operations	(301,627)	(206,529)	(136,645)
Other income (expense):
Other income, net	5,821	173	967
Interest expense	(15,652)	0	0
Total other income (expense)	(9,831)	173	967
Net loss	(311,458)	(206,356)	(135,678)
Other comprehensive loss:
Unrealized loss on marketable securities	(831)	(253)	(1)
Comprehensive loss	$ (312,289)	$ (206,609)	$ (135,679)
Per share information:
Net loss per share, basic (in USD per share)	$ (5.66)	$ (4.18)	$ (3.80)
Net loss per share, diluted (in USD per share)	$ (5.66)	$ (4.18)	$ (3.80)
Weighted-average shares used in computing net loss per share, basic (in shares)	55,032,265	49,405,575	35,668,152
Weighted-average shares used in computing net loss per share, diluted (in shares)	55,032,265	49,405,575	35,668,152
Product revenue, net
Revenues:
Total revenues	$ 3,686	$ 0	$ 0

Consolidated Statements of Conv

Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands	Total	IPO	Secondary Equity Public Offering	Private placement	ATM Program	Common Stock	Common Stock IPO	Common Stock Secondary Equity Public Offering	Common Stock Private placement	Common Stock ATM Program	Additional Paid-In Capital	Additional Paid-In Capital IPO	Additional Paid-In Capital Secondary Equity Public Offering	Additional Paid-In Capital Private placement	Additional Paid-In Capital ATM Program	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance, convertible preferred stock (in shares) at Dec. 31, 2019	24,385,388
Beginning balance at Dec. 31, 2019	$ 166,491
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of preferred stock into common stock upon initial public offering (in shares)	(24,385,388)
Conversion of preferred stock into common stock upon initial public offering	$ (166,491)
Ending balance, convertible preferred stock (in shares) at Dec. 31, 2020	0
Ending balance at Dec. 31, 2020	$ 0
Beginning balance (in shares) at Dec. 31, 2019						2,120,853
Beginning balance at Dec. 31, 2019	(65,029)					$ 0					$ 1,244					$ (1)	$ (66,272)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of preferred stock into common stock upon initial public offering (in shares)						24,385,388
Conversion of preferred stock into common stock upon initial public offering	166,491					$ 2					166,489
Issuance of shares of common stock, net of issuance costs (in shares)							10,781,250	4,000,000	1,400,000
Issuance of shares of common stock, net of issuance costs		$ 167,241	$ 93,360	$ 35,000			$ 1					$ 167,240	$ 93,360	$ 35,000
Issuance of common stock upon the exercise of stock options (in shares)						140,226
Issuance of common stock upon the exercise of stock options	430										430
Vesting of founder shares subject to repurchase (in shares)						137,863
Lapse of repurchase rights related to common stock issued pursuant to early exercises (in shares)						338,670
Lapse of repurchase rights related to common stock issued pursuant to early exercises	247					$ 1					246
Shares issued pursuant to the ESPP (in shares)						34,188
Shares issued pursuant to the ESPP	617										617
Stock-based compensation expense	7,943										7,943
Unrealized loss on marketable securities	(1)															(1)
Net loss	(135,678)																(135,678)
Ending balance (in shares) at Dec. 31, 2020						43,338,438
Ending Balance at Dec. 31, 2020	270,621					$ 4					472,569					(2)	(201,950)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares of common stock, net of issuance costs (in shares)						6,325,000
Issuance of shares of common stock, net of issuance costs	207,490					$ 1					207,489
Issuance of common stock upon the exercise of stock options (in shares)						257,060
Issuance of common stock upon the exercise of stock options	1,265										1,265
Issuance of common stock upon the vesting of restricted stock awards/units (in shares)						37,362
Lapse of repurchase rights related to common stock issued pursuant to early exercises (in shares)						249,239
Lapse of repurchase rights related to common stock issued pursuant to early exercises	176										176
Shares issued pursuant to the ESPP (in shares)						48,515
Shares issued pursuant to the ESPP	842										842
Stock-based compensation expense	23,892										23,892
Unrealized loss on marketable securities	(253)															(253)
Net loss	(206,356)																(206,356)
Ending balance (in shares) at Dec. 31, 2021						50,255,614
Ending Balance at Dec. 31, 2021	297,677					$ 5					706,233					(255)	(408,306)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares of common stock, net of issuance costs (in shares)						8,625,000				882,353
Issuance of shares of common stock, net of issuance costs	161,657				$ 14,366	$ 1					161,656				$ 14,366
Issuance of shares of common stock related to the acquisition of Ducentis Biotherapeutics (in shares)						610,258
Issuance of shares of common stock related to the acquisition of Ducentis Biotherapeutics	$ 12,468										12,468
Issuance of common stock upon the exercise of stock options (in shares)	331,890					331,890
Issuance of common stock upon the exercise of stock options	$ 1,016										1,016
Issuance of common stock upon the vesting of restricted stock awards/units (in shares)						118,174
Lapse of repurchase rights related to common stock issued pursuant to early exercises (in shares)						75,293
Lapse of repurchase rights related to common stock issued pursuant to early exercises	82										82
Shares issued pursuant to the ESPP (in shares)						138,821
Shares issued pursuant to the ESPP	1,922										1,922
Stock-based compensation expense	32,682										32,682
Unrealized loss on marketable securities	(831)															(831)
Net loss	(311,458)																(311,458)
Ending balance (in shares) at Dec. 31, 2022						61,037,403
Ending Balance at Dec. 31, 2022	$ 209,581					$ 6					$ 930,425					$ (1,086)	$ (719,764)

Consolidated Statements of Co_2

Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock issuance costs	$ 10,844
IPO
Stock issuance costs			$ 16,040
Secondary Equity Public Offering
Stock issuance costs		$ 603	$ 6,640
ATM Program
Stock issuance costs	$ 634

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (311,458)	$ (206,356)	$ (135,678)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	622	454	122
Non-cash lease expense	319	309	333
Amortization of intangible assets	312	0	0
Acquired in-process research and development	29,630	0	0
Net amortization/accretion on marketable securities	(2,253)	3,454	72
Non-cash interest expense	2,606	0	0
Stock-based compensation	32,682	23,892	7,943
Loss on disposal of property and equipment	0	0	42
Changes in operating assets and liabilities:
Accounts receivable, net	(8,458)	0	0
Inventories	(7,514)	0	0
Prepaid expenses and other current assets	3,472	(7,329)	(3,412)
Accounts payable	1,565	245	5,674
Accrued liabilities	1,193	10,461	11,877
Operating lease liabilities	(433)	243	(6)
Net cash used in operating activities	(257,715)	(174,627)	(113,033)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities	(415,389)	(292,508)	(279,103)
Proceeds from maturities of marketable securities	351,473	217,550	97,600
Purchases of property and equipment	(333)	(995)	(321)
Acquisition of in-process research and development	(15,450)	0	0
Milestone payment for intangible asset	(7,500)	0
Net cash used in investing activities	(87,199)	(75,953)	(181,824)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock upon exercise of stock options	1,016	1,265	526
Proceeds from issuance of shares under ATM, net of issuance costs	14,455	0	0
Proceeds from initial public offering, net of issuance costs	0	0	168,642
Proceeds from issuance of common stock, net of issuance costs	161,592	207,490	128,360
Proceeds from issuance of common stock for ESPP	1,922	842	617
Proceeds from long-term debt	125,000	73,987	0
Payment of debt issuance costs	(2,187)	(1,637)	0
Net cash provided by financing activities	301,798	281,947	298,145
Net (decrease) increase in cash, cash equivalents and restricted cash	(43,116)	31,367	3,288
Cash, cash equivalents and restricted cash at beginning of period	97,991	66,624	63,336
Cash, cash equivalents and restricted cash at end of period	54,875	97,991	66,624
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:
Interest expense paid in cash	12,636	142	0
Acquired in-process research and development in exchange for the issuance of common stock	12,468	0	0
Conversion of preferred stock to common stock and APIC	0	0	166,491
Right-of-use asset obtained in exchange for lease liability	0	0	3,617
Reduction in right-of-use asset upon reassessment of lease term	$ 0	$ 0	$ 123

Organization and Description of

Organization and Description of Business	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Organization and Description of Business Arcutis Biotherapeutics, Inc., or the Company, is an early commercial-stage biopharmaceutical company focused on developing and commercializing treatments for dermatological diseases with high unmet medical needs. The Company received U.S. Food and Drug Administration (FDA) approval of its first product, ZORYVE ® (roflumilast) cream 0.3%, on July 29, 2022, for the treatment of individuals with plaque psoriasis, including intertriginous psoriasis, in individuals 12 years of age and older, and began commercialization in August 2022. The Company’s current portfolio is comprised of highly differentiated topical and systemic treatments with significant potential to treat immune-mediated dermatological diseases and conditions. The Company believes it has built the industry's leading platform for dermatologic product development. The Company’s strategy is to focus on validated biological targets and to use our drug development platform and deep dermatology expertise to develop differentiated products that have the potential to address the major shortcomings of existing therapies in its targeted indications. The Company believes this strategy uniquely positions it to rapidly advance its goal of bridging the treatment innovation gap in dermatology, while maximizing its probability of technical success. Initial Public Offering and Follow-On Financings On February 4, 2020, the Company closed an initial public offering (IPO) issuing and selling 10,781,250 shares of common stock at a public offering price of $17.00 per share, including 1,406,250 shares sold pursuant to the underwriters’ full exercise of their option to purchase additional shares. The aggregate net proceeds received by the Company from the offering were approximately $167.2 million, after deducting underwriting discounts, commissions, and offering related transaction costs . Upon the closing of the IPO, all of the outstanding shares of convertible preferred stock automatically converted into shares of common stock. Subsequent to the closing of the IPO, there were no shares of convertible preferred stock outstanding. On October 6, 2020, the Company completed a public offering of 4,000,000 shares of common stock at an offering price of $25.00 per share, receiving aggregate net proceeds of approximately $93.4 million after deducting the underwriting discounts, commissions, and offering related transaction costs. In addition, the Company concurrently sold 1,400,000 shares of common stock in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended, at a price per share equal to the public offering price, receiving net proceeds of $35.0 million. On February 5, 2021, the Company completed a public offering of 6,325,000 shares of common stock at an offering price of $35.00 per share, including 825,000 shares sold pursuant to the underwriters full exercise of their option to purchase additional shares. The aggregate net proceeds received by the Company were approximately $207.5 million, after deducting underwriting discounts, commissions, and offering related transaction costs. On August 5, 2022, the Company completed a public offering of 8,625,000 shares of common stock at an offering price of $20.00 per share, including 1,125,000 shares sold pursuant to the underwriters full exercise of their option to purchase additional shares. The aggregate net proceeds received by the Company were approximately $161.6 million, after deducting underwriting discounts, commissions, and offering related transaction costs. At-the-Market (ATM) Offerings On May 6, 2021, the Company entered into a sales agreement (Sales Agreement) with Cowen and Company, LLC (Cowen), under which the Company may from time to time issue and sell shares of its common stock through ATM offerings for an aggregate offering price of up to $100.0 million. Cowen will act as the Company's sales agent for the ATM program and is entitled to compensation for its services equal to 3% of the gross proceeds of any shares of common stock sold under the Sales Agreement. In March, 2022, the Company sold 882,353 shares under the ATM for $17.00 per share and received $14.5 million in net proceeds. Liquidity The Company has incurred significant losses and negative cash flows from operations since its inception and had an accumulated deficit of $719.8 million and $408.3 million as of December 31, 2022 and 2021, respectively. The Company had cash, cash equivalents, restricted cash, and marketable securities of $410.8 million and $388.6 million as of December 31, 2022 and 2021, respectively. Upon FDA approval of ZORYVE, $125.0 million of additional funding became available under the Loan Agreement which the Company drew down and received in August 2022. After this draw down, the Company has $200.0 million outstanding under the Loan Agreement as of December 31, 2022, with an additional $25.0 million in funding that may become available subject to the satisfaction of specified conditions. See Note 8. In August 2022, the Company received net proceeds of approximately $161.6 million from a public offering of its common stock. In March 2022, the Company received net proceeds of $14.5 million from the sale of stock under our ATM facility. Prior to selling common stock in its IPO, the Company had historically financed its operations primarily through the sale of its convertible preferred stock. Management expects to continue to incur operating losses. The Company believes that its existing capital resources will be sufficient to meet the projected operating requirements for at least 12 months from the date of issuance of its financial statements. If the Company's available cash and marketable securities balances, amounts available under the Loan Agreement and anticipated future cash flows from operations are insufficient to satisfy its liquidity requirements, the Company may need to raise additional capital to fund its operations. No assurance can be given as to whether additional needed financing will be available on terms acceptable to the Company, if at all. If sufficient funds on acceptable terms are not available when needed, the Company may be required to curtail certain planned activities. Failure to manage discretionary spending or raise additional financing, as needed, may adversely impact the Company’s ability to achieve its intended business objectives and have an adverse effect on its results of operations and future prospects. Coronavirus Outbreak In March 2020, the World Health Organization declared a pandemic related to the global novel coronavirus disease 2019 (COVID-19) outbreak. The Company is monitoring the impact COVID-19 may have on the clinical development of its product candidates, including potential delays or modifications to its ongoing and planned trials, as well as its commercial activities. The Company believes that the rapid spread of the Omicron variant in late 2021 and early 2022 has likely had a minor impact on the enrollment of our clinical trials. Because of this likely impact along with the inherent challenges of enrolling young children in clinical trials, the Company has updated its expected timeline for providing topline data for the INTEGUMENT-PED trial, in atopic dermatitis subjects between two and five years of age, to 2023. The Company cannot at this time predict the specific extent, duration, or full impact that the COVID-19 outbreak will have on its financial condition and operations, including ongoing and planned clinical trials and commercial activities.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). The condensed consolidated financial statements include our wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, management evaluates such estimates and assumptions for continued reasonableness. In particular, management makes estimates with respect to revenue recognition, accruals for research and development activities, stock-based compensation expense, and income taxes. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. Actual results could differ from those estimates. Segments To date, the Company has viewed its financial information on an aggregate basis for the purposes of evaluating financial performance and allocating the Company’s resources. Accordingly, the Company has determined that it operates in one segment. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of money market funds, commercial paper, U.S. Treasury securities, and short-term corporate debt securities. Restricted Cash As of December 31, 2022 and 2021, the Company held $1.2 million and $1.5 million, respectively, of restricted cash as collateral for a letter of credit related to our amended office space lease. See Note 7. Marketable Securities Marketable securities consist of investment grade short to intermediate-term fixed income investments that have been classified as available-for-sale and are carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. Management determines the appropriate classification of its investments in fixed income securities at the time of purchase. Available-for-sale securities with original maturities beyond three months at the date of purchase, including those that have maturity dates beyond one year from the balance sheet date, are classified as current assets on the consolidated balance sheets due to their highly liquid nature and availability for use in current operations. Unrealized gains and losses are excluded from earnings and are reported as a component of other comprehensive income (loss). Realized gains and losses as well as credit losses, if any, on marketable securities are included in other income, net. The Company evaluated the underlying credit quality and credit ratings of the issuers during the period. To date, no such credit losses have occurred or have been recorded. The cost of investments sold is based on the specific-identification method. Unrealized gains and losses on marketable securities are reported as a component of accumulated other comprehensive income (loss) on the consolidated balance sheets. Interest on marketable securities is included in other income, net. Trade Receivables, net The Company’s trade accounts receivable consists of amounts due primarily from pharmaceutical wholesalers and specialty pharmacy providers in the United States (collectively, its "Customers") related to sales of ZORYVE and have standard payment terms. For certain Customers, the trade accounts receivable for the Customer is net of distribution service fees, prompt pay discounts, and other adjustments. The Company monitors the financial performance and creditworthiness of its Customers so that it can properly assess and respond to changes in their credit profile. The Company will reserve against trade accounts receivable for estimated credit losses that may arise and any amounts determined to be uncollectible will be written off against the reserve when it is probable that the receivable will not be collected. The reserve amount for estimated losses was not material as of December 31, 2022. Inventory The Company values its inventories at the lower-of-cost or net realizable value. The Company determines the cost of its inventories, which includes costs related to products held for sale in the ordinary course of business, products in process of production for such sale, and items to be currently consumed in the production of goods to be available for sale, on a first-in, first-out (FIFO) basis. Due to the nature of the Company’s supply chain process, inventory that is owned by the Company is physically stored at third-party warehouses, logistics providers, and contract manufacturers. The Company performs an assessment of the recoverability of capitalized inventory during each reporting period, and writes down any excess and obsolete inventories to their net realizable value in the period in which the impairment is first identified. If they occur, such impairment charges are recorded as a component of cost of sales in the consolidated statements of operations. The Company capitalizes inventory costs associated with products following regulatory approval when future commercialization is considered probable and the future economic benefit is expected to be realized. Products which may be used in clinical development programs are excluded from inventory and their costs are charged to research and development expense in the consolidated statement of operations as incurred. Prior to the initial date regulatory approval is received, costs related to the production of inventory are recorded as research and development expense on the Company’s consolidated statements of operations in the period incurred. As of December 31, 2022, the Company had inventory, mostly at the raw materials stage, with a value of approximately $14.1 million which was previously expensed, which is expected to sell over the next two years. As a result, cost of sales will reflect a lower average per unit cost of materials over this time period. Intangible Assets, net The Company had no intangible assets as of December 31, 2021. The Company paid a milestone payment of $7.5 million to AstraZeneca in the third quarter of 2022 related to the FDA approval and launch of ZORYVE. This milestone payment was capitalized as an intangible asset and will be amortized to cost of sales over its useful life of 10 years from the date of first commercial sale, as this is the minimum amount of time that the related License Agreement will be in effect. See Note 6. Amortization expense for the year ended December 31, 2022 was immaterial. Estimated future amortization expense for the intangible assets subsequent to December 31, 2022 is as follows: Amounts 2023 750 2024 750 2025 750 2026 750 2027 750 Thereafter 3,438 Total amortization $ 7,188 The Company evaluates its long-lived assets, including intangibles, for impairment whenever events or changes in circumstance indicate that the carrying value of an asset might not be fully recoverable by comparing the fair value of the intangible asset based on the undiscounted net cash flows over the remaining useful life with its carrying value. If the fair value is less than the carrying amount, an impairment loss is recognized in operating results. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, and marketable securities. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company is exposed to credit risk in the event of a default by the financial institutions holding its cash to the extent recorded on the consolidated balance sheets. Management believes the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Fair Value Measurement The Company’s financial instruments, in addition to those presented in Note 3, include cash equivalents, accounts payable, accrued liabilities, and long-term debt. The carrying amount of cash equivalents, accounts payable, and accrued liabilities approximate their fair values due to their short maturities. As the long-term debt is subject to variable interest rates that are based on market rates which regularly reset, the Company believes that the carrying value of the long-term debt approximates its fair value. Assets and liabilities recorded at fair value on a recurring basis on the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets which range from two Leases The Company determines if an arrangement is or contains a lease at inception. Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The classification of the Company’s leases as operating or finance leases, along with the initial measurement and recognition of the associated ROU assets and lease liabilities, is performed at the lease commencement date. The measurement of lease liabilities is based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, based on the information available at commencement date, to determine the present value of lease payments when its leases do not provide an implicit rate. The Company uses the implicit rate when readily determinable. The ROU asset is based on the measurement of the lease liability, includes any lease payments made prior to or on lease commencement and is adjusted for lease incentives and initial direct costs incurred, as applicable. Lease expense for the Company’s operating leases is recognized on a straight-line basis over the lease term. The Company considers a lease term to be the non-cancelable period that it has the right to use the underlying asset, including any periods where it is reasonably assured the Company will exercise the option to extend the contract. Periods covered by an option to extend are included in the lease term if the lessor controls the exercise of that option. The Company’s lease agreements includes lease and non-lease components and the Company has elected to not separate such components for all classes of assets. Further, the Company elected the short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to leases with terms of 12 months or less (short-term leases) for all classes of assets. Nonclinical and Clinical Accruals and Costs The Company records accrued liabilities for estimated costs of research and development activities conducted by third-party service providers, which include the conduct of nonclinical studies, clinical trials, and contract manufacturing activities. These costs are a significant component of the Company’s research and development expenses. The Company accrues for these costs based on factors such as estimates of the work completed and in accordance with agreements established with its third-party service providers under the service agreements. The Company makes significant judgments and estimates in determining the accrued liabilities balance in each reporting period. As actual costs become known, the Company adjusts its accrued liabilities. For the years ended December 31, 2022, 2021 and 2020, the Company has not experienced any material differences between accrued costs and actual costs incurred. Convertible Preferred Stock Prior to its IPO, the Company classified its outstanding convertible preferred stock outside of stockholders’ equity (deficit) on its consolidated balance sheets as the requirements of triggering a deemed liquidation event, as defined within its amended and restated certificate of incorporation, were not entirely within the Company’s control. In the event of such a deemed liquidation event, the proceeds from the event were to be distributed in accordance with the liquidation preferences, provided that the holders of convertible preferred stock had not converted their shares into common stock. The Company recorded the issuance of convertible preferred stock at the issuance price less related issuance costs. The Company did not adjust the carrying values of the convertible preferred stock to the liquidation preferences of such shares because of the uncertainty as to whether or when a deemed liquidation event may have occurred. In connection with the IPO in February 2020, the Company’s outstanding shares of convertible preferred stock were automatically converted into 24,385,388 shares of common stock. Revenues Pursuant to Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when a customer obtains control of promised goods or services. The Company records the amount of revenue that reflects the consideration that it expects to receive in exchange for those goods or services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services that it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. The Company recognizes as revenue the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. Product Revenue, Net The Company sells its product to its Customers in the United States. The Company’s Customers subsequently resell the products to pharmacies, health care providers, and patients. In accordance with ASC 606, the Company recognizes net product revenues from sales when the Customers obtain control of the Company’s products, which typically occurs upon delivery to the Customer. The Company’s payment terms are generally between 31 - 65 days. Revenues from product sales are recorded at the net sales price, or “transaction price,” which includes estimates of variable consideration that result from (a) invoice discounts for prompt payment and distribution service fees, (b) government and private payer rebates, chargebacks, discounts and fees, (c) product returns and (d) costs of co-pay assistance programs for patients, as well as other incentives. Reserves are established for the estimates of variable consideration based on the amounts earned or to be claimed on the related sales. The reserves are classified as reductions to trade receivables, net if payable to a Customer or accrued liabilities if payable to a third- party. Where appropriate, the Company utilizes the expected value method to determine the appropriate amount for estimates of variable consideration based on factors such as the Company’s historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. The amount of variable consideration that is included in the transaction price may be constrained and is included in net product revenues only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results vary from the Company’s estimates, the Company adjusts these estimates, which would affect net product revenue and earnings in the period such variances become known. Distribution Service Fees : The Company engages with wholesalers to distribute its products to end customers. The Company pays the wholesalers a fee for services such as: data reporting, inventory management, chargeback administration, and service level commitment. The Company estimates the amount of distribution services fees to be paid to the Customers and adjusts the transaction price with the amount of such estimate at the time of sale to the Customer. Prompt Pay Discounts : The Company provides its Customers with a percentage discount on their invoice if the Customers pay within the agreed upon timeframe. The Company estimates the probability of Customers paying promptly based on the percentage of discount outlined in the agreement, and deducts the full amount of these discounts from its gross product revenues and accounts receivable at the time such revenues are recognized. Product Returns : The Company provides Customers a return credit in the amount of the purchase price paid by Customers for all products returned in accordance with the Company’s returned goods policy. In the initial sales period, the Company estimates its provision for sales returns based on industry data and adjusts the transaction price for such estimate at the time of sale to the Customer. Once sufficient history has been collected for product returns, the Company will utilize that history to inform our returns estimate. Once the product is returned, it is destroyed. The Company does not record a right-of-return asset. Chargeback : A chargeback is the difference between the manufacturer's invoice price to the wholesaler and the wholesaler’s customer's contract price. The wholesaler tracks these sales and "charges back" the manufacturer for the difference between the negotiated prices paid between the wholesaler's customers and wholesaler's acquisition cost. The Company estimates the percentage of goods sold that are eligible for chargeback and adjusts the transaction price for such discount at the time of sale to the Customer. Co-payment Assistance : Patients who meet certain eligibility requirements may receive co-payment assistance. The Company records contra-revenue expense for co-payment assistance based on actual program participation and estimates of program redemption using data provided by third-party administrators. Cost of Sales Cost of sales includes direct and indirect costs related to the manufacturing and distribution of ZORYVE, including raw materials, third-party manufacturing costs, packaging services, freight-in, third-party royalties payable on the Company’s net product revenues, and amortization of certain intangible assets associated with ZORYVE. Cost of sales may also include period costs related to certain inventory warehouse and distribution operations and inventory adjustment charges. The Company began capitalizing inventory costs upon FDA approval of ZORYVE on July 29, 2022. As a result, manufacturing and other inventory costs incurred prior to FDA approval of ZORYVE were expensed and, therefore, are not included in cost of sales. Research and Development Research and development expenses include costs directly attributable to the conduct of research and development programs, including the cost of salaries, payroll taxes, employee benefits, license fees, stock-based compensation expense, materials, supplies, and the cost of services provided by outside contractors. All costs associated with research and development are expensed as incurred. Payments made prior to the receipt of goods or services to be used in research and development are capitalized until the goods are received or services are rendered. Such payments are evaluated for current or long-term classification based on when they will be realized. The Company has entered into, and may continue to enter into, license agreements to access and utilize certain technology. In each case, the Company evaluates if the license agreement results in the acquisition of an asset or a business. To date, none of the Company’s license agreements have been considered an acquisition of a business. For asset acquisitions, the upfront payments to acquire such licenses, as well as any future milestone payments made before product approval that do not meet the definition of a derivative, are immediately recognized as research and development expense when paid or become payable, provided there is no alternative future use of the rights in other research and development projects. Stock-Based Compensation The Company accounts for share-based payments at fair value. The fair value of stock options is measured using the Black-Scholes option-pricing model. For share-based awards that vest subject to the satisfaction of a service requirement, the fair value measurement date for such awards is the date of grant and the expense is recognized on a straight-line basis, over the expected vesting period. For share-based awards that vest subject to a performance condition, the Company will recognize compensation cost for awards if and when the Company concludes that it is probable that the awards with a performance condition will be achieved on an accelerated attribution method. The Company accounts for forfeitures as they occur. Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period of enactment. The Company records a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. Due to the Company’s historical operating performance and the recorded cumulative net losses in prior fiscal periods, the net deferred tax assets have been fully offset by a valuation allowance. The Company recognizes the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained upon examination by the tax authorities, based on the merits of the position. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. To date, there have been no interest or penalties incurred in relation to the unrecognized tax benefits. Variable Interest Entities The Company reviews agreements it enters into with third-party entities, pursuant to which the Company may have a variable interest in the entity, in order to determine if the entity is a variable interest entity (VIE). If the entity is a VIE, the Company assesses whether or not it is the primary beneficiary of that entity. In determining whether the Company is the primary beneficiary of an entity, the Company applies a qualitative approach that determines whether it has both (i) the power to direct the economically significant activities of the entity and (ii) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to that entity. If the Company determines it is the primary beneficiary of a VIE, it consolidates that VIE into the Company’s consolidated financial statements. The Company’s determination about whether it should consolidate such VIEs is made continuously as changes to existing relationships or future transactions may result in a consolidation or deconsolidation event. The Company currently does not consolidate any VIEs. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, without consideration for potential dilutive shares of common stock. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share since the effects of potentially dilutive securities are antidilutive. Shares of common stock subject to repurchase are excluded from the weighted-average shares. Recently Adopted Accounting Pronouncements There have been no new accounting pronouncements issued or effective that are expected to have a material impact on the Company's consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 53,641 $ — $ — $ 53,641 Commercial paper — 177,099 — 177,099 Corporate debt securities — 13,821 — 13,821 U.S. Treasury securities 165,028 — — 165,028 Total assets $ 218,669 $ 190,920 $ — $ 409,589 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 95,145 $ — $ — $ 95,145 Commercial paper — 119,413 — 119,413 Corporate debt securities — 114,324 — 114,324 U.S. Treasury securities 58,177 — — 58,177 Total assets $ 153,322 $ 233,737 $ — $ 387,059 ______________ (1) This balance includes cash requirements settled on a nightly basis. Money market funds and U.S. Treasury securities are valued based on quoted market prices in active markets, with no valuation adjustment. Commercial paper and corporate debt securities are valued taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; prepayment/default projections based on historical data; and other observable inputs. The following table summarizes the estimated value of the Company’s cash, cash equivalents and marketable securities, and the gross unrealized holding gains and losses (in thousands): December 31, 2022 Amortized Unrealized Unrealized Estimated Cash and cash equivalents: Money market funds (1) $ 53,641 $ — $ — $ 53,641 Total cash and cash equivalents $ 53,641 $ — $ — $ 53,641 Marketable securities: Commercial paper $ 177,099 — — $ 177,099 Corporate debt securities 13,890 — (69) 13,821 U.S. Treasury securities 166,045 7 (1,024) 165,028 Total marketable securities $ 357,034 $ 7 $ (1,093) $ 355,948 ______________ (1) This balance includes cash requirements settled on a nightly basis. December 31, 2021 Amortized Unrealized Unrealized Estimated Cash and cash equivalents: Money market funds (1) $ 95,145 $ — $ — $ 95,145 Corporate debt securities 1,304 — — 1,304 Total cash and cash equivalents $ 96,449 $ — $ — $ 96,449 Marketable securities: Commercial paper $ 119,413 $ — $ — $ 119,413 Corporate debt securities 113,145 — (125) 113,020 U.S. Treasury securities 58,307 — (130) 58,177 Total marketable securities $ 290,865 $ — $ (255) $ 290,610 ______________ (1) This balance includes cash requirements settled on a nightly basis. Realized gains or losses on investments for the years ended December 31, 2022 and 2021 were not material. As of December 31, 2022 and 2021, unrealized losses on marketable securities were not material, and accordingly, no allowance for credit losses were recorded. As of December 31, 2022 and 2021, all securities have a maturity of 18 months or less and all securities with gross unrealized losses have been in a continuous loss position for less than one year.

Balance Sheet Components

Balance Sheet Components	12 Months Ended
	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories The components of inventory are summarized as follows (in thousands): December 31, 2022 2021 Raw materials $ 5,659 $ — Work in progress 395 — Finished goods 1,460 — Total inventories $ 7,514 $ — Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2022 2021 Prepaid co-pay assistance program $ 3,226 $ — Prepaid insurance 956 518 Prepaid clinical trial costs 172 5,629 Other prepaid expenses and current assets 6,257 8,025 Total prepaid expenses and other current assets $ 10,611 $ 14,172 Accrued Liabilities Accrued liabilities consist of the following (in thousands): December 31, 2022 2021 Accrued compensation $ 14,000 $ 9,130 Clinical trial accruals 7,896 13,217 Accrued sales deductions 1,567 — Accrued expenses and other current liabilities 4,860 3,193 Total accrued liabilities $ 28,323 $ 25,540

Property and Equipment, net

Property and Equipment, net	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net consists of the following (in thousands): December 31, 2022 2021 Computer hardware $ 983 $ 775 Furniture and fixtures 379 346 Software 104 104 Leasehold improvements 1,568 1,568 Property and equipment, gross 3,034 2,793 Less accumulated depreciation (1,153) (532) Property and equipment, net $ 1,881 $ 2,261 Depreciation expense was $0.6 million, $0.5 million, and $0.1 million for the years ended December 31, 2022, 2021, and 2020 respectively. Leasehold improvements are depreciated over the term of the lease, which is the shorter of the improvements' expected useful lives and the lease term. All other fixed asset depreciation is recorded using the straight-line method over the estimated useful lives of the assets ( two

License Agreements & Acquisitio

License Agreements & Acquisition	12 Months Ended
	Dec. 31, 2022
License Agreements And Acquisition Disclosure [Abstract]
License Agreements & Acquisition	License Agreements & Acquisition AstraZeneca License Agreement In July 2018, the Company entered into an exclusive license agreement, or the AstraZeneca License Agreement, with AstraZeneca AB (AstraZeneca), granting the Company a worldwide exclusive license, with the right to sublicense through multiple tiers, under certain AstraZeneca-controlled patent rights, know-how and regulatory documentation, to research, develop, manufacture, commercialize and otherwise exploit products containing roflumilast in topical forms, as well as delivery systems sold with or for the administration of roflumilast, or collectively, the AZ-Licensed Products, for all diagnostic, prophylactic and therapeutic uses for human dermatological indications, or the Dermatology Field. Under this agreement, the Company has sole responsibility for development, regulatory, and commercialization activities for the AZ-Licensed Products in the Dermatology Field, at its expense, and it shall use commercially reasonable efforts to develop, obtain and maintain regulatory approvals for, and commercialize the AZ-Licensed Products in the Dermatology Field in each of the United States, Italy, Spain, Germany, the United Kingdom, France, China, and Japan. The Company paid AstraZeneca an upfront non-refundable cash payment of $1.0 million and issued 484,388 shares of Series B convertible preferred stock, valued at $3.0 million on the date of the AstraZeneca License Agreement, which were both recorded in research and development expense. The Company subsequently paid AstraZeneca the first milestone cash payment of $2.0 million upon the completion of a Phase 2b study of topical roflumilast cream in plaque psoriasis in August 2019 for the achievement of positive Phase 2 data for an AZ-Licensed Product, which was recorded in research and development expense. In the third quarter of 2022, we paid $7.5 million to AstraZeneca as a result of the approval of ZORYVE, which was recorded as an intangible asset. The Company is amortizing the intangible asset to cost of sales over its useful life of 10 years from the date of first commercial sale as this is the minimum amount of time that the related License Agreement will be in effect. Amortization expense during the year ended December 31, 2022 was not material. The Company has agreed to make additional cash payments to AstraZeneca of up to an aggregate of $5.0 million upon the achievement of specified regulatory approval milestones with respect to the AZ-Licensed Products, and payments up to an additional aggregate amount of $15.0 million upon the achievement of certain aggregate worldwide net sales milestones, of which $5.0 million will become payable when the Company achieves $100.0 million in worldwide sales. With respect to any AZ-Licensed Products the Company commercializes under the AstraZeneca License Agreement, it will pay AstraZeneca a low to high single-digit percentage royalty rate on the Company’s, its affiliates’ and its sublicensees’ net sales of such AZ-Licensed Products, subject to specified reductions, until, as determined on an AZ-Licensed Product-by-AZ-Licensed Product and country-by-country basis, the later of the date of the expiration of the last-to-expire AstraZeneca-licensed patent right containing a valid claim in such country and ten years from the first commercial sale of such AZ-Licensed Product in such country. As a result of the commercialization of ZORYVE in August 2022, the Company began accruing royalties payable to AstraZeneca, which are recorded in cost of sales and accrued liabilities, Royalty expense during the year ended December 31, 2022 was not material. There were no payments made or payable in connection with AZ-Licensed Products for the years ended December 31, 2021 and 2020. Hengrui Exclusive Option and License Agreement In January 2018, the Company entered into an exclusive option and license agreement, or the Hengrui License Agreement, with Jiangsu Hengrui Medicine Co., Ltd. (Hengrui), whereby Hengrui granted the Company an exclusive option to obtain certain exclusive rights to research, develop, and commercialize products containing the compound designated by Hengrui as ivarmacitinib, a Janus kinase type 1 inhibitor, in topical formulations for the treatment of skin diseases, disorders, and conditions in the United States, Japan, Canada, and the European Union (including for clarity the United Kingdom). The Company made a $0.4 million upfront non-refundable cash payment to Hengrui upon execution of the Hengrui Option and License Agreement, which was recorded as research and development expense. In December 2019, the Company exercised its exclusive option under the agreement, for which it made a $1.5 million cash payment, which was recorded in research and development expense, and also contemporaneously amended the agreement to expand the territory to additionally include Canada. In addition, the Company has agreed to make cash payments of up to an aggregate of $20.5 million upon achievement of specified clinical development and regulatory approval milestones with respect to the licensed products and cash payments of up to an additional aggregate of $200.0 million in sales-based milestones based on certain aggregate annual net sales volumes with respect to a licensed product. With respect to any products the Company commercializes under the Hengrui License Agreement, it will pay tiered royalties to Hengrui on net sales of each licensed product by the Company, or its affiliates, or its sublicensees, ranging from mid single-digit to sub-teen percentage rates based on tiered annual net sales bands subject to specified reductions. The Company is obligated to pay royalties until the later of (1) expiration of the last valid claim of the licensed patent rights covering such licensed product in such country and (2) expiration of regulatory exclusivity for the relevant licensed product in the relevant country, on a licensed product-by-licensed product and country-by-country basis. Additionally, the Company is obligated to pay Hengrui a specified percentage, ranging from the low-thirties to the sub-teens, of certain non-royalty sublicensing income it receives from sublicensees of its rights to the licensed products, such percentage decreasing as the development stage of the licensed products advance. In June 2022, the Company entered into a side letter agreement with Hengrui and one of its subsidiaries to extend certain rights and obligations under the Hengrui License Agreement to the subsidiary under specified circumstances, including a change of control of such subsidiary. There were no payments made or due in connection with Hengrui for the years ended December 31, 2022, 2021, and 2020. Hawkeye (lolyx Therapeutics) Collaboration Agreement In June 2019, the Company entered into a collaboration agreement, or Hawkeye Agreement, with Hawkeye Therapeutics, Inc. (Hawkeye), a related party with common ownership, for the development of one or more new applications of roflumilast. The Hawkeye Agreement grants Hawkeye an exclusive license to certain intellectual property developed under the agreement as it relates to the applications. Contemporaneously with the execution of the Hawkeye Agreement, the Company entered into a stock purchase agreement, purchasing 995,000 shares of Hawkeye’s common stock at $0.0001 per share, representing 19.9% of the outstanding common stock of Hawkeye at the time of the purchase. In the event that Hawkeye issues shares of Series A convertible preferred stock with proceeds over $5.0 million, Hawkeye is required to issue to the Company a number of fully-paid fully-vested shares of common stock determined by dividing (i) $2,000,000 by (ii) an amount equal to the cash price per share for Series A convertible preferred stock. Other than the potential issuance of this common stock, there are no upfront payments, milestones, or royalties pursuant to the Hawkeye Agreement. The Company determined that Hawkeye is a VIE for which consolidation is not required as it is not the primary beneficiary. Ducentis Biotherapeutics LTD Acquisition On September 7, 2022, the Company entered into a Share Purchase Agreement with Ducentis Biotherapeutics LTD (Ducentis), pursuant to which the Company acquired (the “Acquisition”) all of the outstanding equity interests in Ducentis for (i) 610,258 shares of the Company common stock valued at approximately $12.5 million and $15.9 million in cash, inclusive of liabilities acquired, and (ii) contingent payments, the amount of which is indeterminable until achieved, which may become payable upon the achievement of certain development, regulatory, and commercial milestones. The Company currently estimates that these contingent payments may be up to an aggregate of approximately $400 million (although the actual amount may differ depending on whether the applicable milestones are achieved). In addition, if applicable, the Company will make payments amounting to a mid-single-digit percentage of any annual net sales of Ducentis’s products exceeding $1.5 billion. As of December 31, 2022, none of the milestones were probable of achievement and, accordingly, no amounts have been recognized in the accompanying consolidated financial statements with respect to these contingent payments. Under the terms of the Share Purchase Agreement, the Company will develop and seek FDA approval of a therapeutic product containing Ducentis’s DS-234 product candidate, now ARQ-234, for an atopic dermatitis indication, and if FDA approval of ARQ-234 is obtained by the Company, to launch it in the United States. The Company accounted for this purchase as an asset acquisition as substantially all of the fair value of the gross assets acquired was concentrated in a single identifiable asset, in-process research and development (“IPR&D”). The IPR&D asset has no alternative future use and relates to intellectual property rights related to ARQ-234. In addition to the $12.5 million value of stock issued and cash paid of $15.9 million, including $1.2 million allocated to liabilities acquired, the Company also incurred $1.2 million in transaction costs related to the Acquisition. As such, during the third quarter of 2022, the Company recorded a charge to research and development expense in the amount of $29.6 million. The acquired IPR&D expense was not tax deductible.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Operating Lease The Company leases a facility in Westlake Village, California under an operating lease that commenced in February 2019 and was amended in April 2020 in order to relocate to a new expanded space comprising 22,643 square feet. The Company recognized the ROU asset and lease liability for the new space on May 1, 2020. The lease payment term for the new space began on December 30, 2020. The lease payments terminate 91 months thereafter, with a renewal option for a term of five years. The Company will have a one-time option to cancel the lease after month 67. The renewal and one-time cancellation options have not been considered in the determination of the ROU asset or lease liability as the Company did not consider it reasonably certain it would exercise these options. The lease is subject to fixed rate escalation increases with an initial base rent of $76,000 per month, and includes rent free periods aggregating approximately one year. As a result, the Company recognizes rent expense on a straight-line basis for the full amount of the commitment including the minimum rent increases over the life of the lease and the free rent period. The amended lease agreement provided for a leasehold improvement allowance up to $1.25 million, which the Company fully utilized by incurring related costs. This amount, along with $320,000 of additional costs incurred for leasehold improvements beyond the allowance, were capitalized and included in property and equipment as of December 31, 2020. The amended lease agreement also required the Company to have an available letter of credit of $1.5 million upon occupying the space, which is allowed to be reduced throughout the lease period as rent obligations are met. Accordingly, in November 2020, the Company entered into a letter of credit for $1.5 million, which it secured with a restricted cash account in the same amount. In March 2022, the Company reduced the line of credit and related restricted cash account to $1.2 million. All leasehold improvements will be depreciated over the remaining term of the lease. The minimum annual rental payments of the Company’s operating lease liability as of December 31, 2022 are as follows (in thousands): Amounts 2023 $ 965 2024 994 2025 1,024 2026 1,054 2027 1,087 2028 653 Total minimum lease payments $ 5,777 Less: Amounts representing interest (1,003) Present value of future minimum lease payments $ 4,774 Current portion operating lease liability 657 Operating lease liability, noncurrent 4,117 Total operating lease liability $ 4,774 Straight-line rent expense recognized for operating leases was $716,000, $686,000, and $602,000 for the years ended December 31, 2022, 2021, and 2020, respectively. There were no significant variable lease payments, including non-lease components such as common area maintenance fees, recognized as rent expense for operating leases for the years ended December 31, 2022, 2021, and 2020. The following information represents supplemental disclosure for the consolidated statements of cash flows related to the Company’s operating lease (in thousands): December 31, 2022 2021 2020 Cash flows from operating activities Cash paid for amounts included in the measurement of lease liabilities $ 781 $ 114 $ 192 The following summarizes additional information related to the operating lease: December 31, 2022 Weighted-average remaining lease term (in years) 5.6 Weighted-average discount rate 7.0 % Manufacturing Agreements The Company has entered into manufacturing supply agreements for the commercial supply of ZORYVE which include certain minimum purchase commitments. Firm future purchase commitments under these agreements are approximately $3.5 million for 2023 and $0.7 million per year for 2024 and 2025. This amount does not represent all of the Company’s anticipated purchases, but instead represents only the contractually obligated minimum purchases or firm commitments of non-cancelable minimum amounts. Indemnification In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless, and defend an indemnified party for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. The Company has never incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by the provisions of the Company's Bylaws and the Delaware General Corporation Law. The Company currently has directors’ and officers’ insurance coverage that reduces its exposure and enables the Company to recover a portion of any future amounts paid. The Company believes any potential loss exposure under these indemnification agreements in excess of applicable insurance coverage is minimal. License Agreements The terms of certain of our license agreements require us to pay potential future milestone payments based on product development success. The amount and timing of such obligations are unknown or uncertain. See Note 6.

Long-term debt

Long-term debt	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Long-term debt	Long-term debt On December 22, 2021, the Company entered into a Loan Agreement with SLR and the lenders party thereto. The lenders agreed to extend term loans to the Company in an aggregate principal amount of up to $225.0 million, comprised of (i) a tranche A term loan of $75.0 million, (ii) a tranche B-1 term loan of $50.0 million, (iii) a tranche B-2 term loan of up to $75.0 million, available in minimum increments of $15.0 million, and (iv) a tranche C term loan of up to $25.0 million (Term Loans). As security for the obligations under the Loan Agreement, the Company granted SLR, for the benefit of the lenders, a continuing security interest in substantially all of the Company's assets, including its intellectual property, subject to certain exceptions. The tranche A term loan under the Loan Agreement was funded on December 22, 2021 in the amount of $75.0 million. With the approval of ZORYVE on July 29,2022, the tranche B term loans were funded and the Company received $125.0 million on August 2, 2022. The tranche C term loan is available following the achievement of a net product revenue milestone of $110.0 million, calculated on a trailing six month basis. The tranche C term loan will remain available for funding until September 30, 2024. Principal amounts outstanding under the Term Loans will accrue interest at a floating rate equal to the applicable rate in effect from time to time, as determined by SLR on the third business day prior to the funding date of the applicable Term Loan and on the first business day of the month prior to each payment date of each Term Loan. The applicable rate is a per annum interest rate equal to 7.45% plus the greater of (a) 0.10% and (b) the per annum rate published by the Intercontinental Exchange Benchmark Administration Ltd. (or on any successor or substitute published rate) for a term of one month, subject to a replacement with an alternate benchmark rate and spread in certain circumstances. On December 31, 2022, the rate was 11.62%. The maturity date for each term loan is January 1, 2027. Commencing on February 1, 2022, interest payments are payable monthly following the funding of any Term Loan. Any principal amounts outstanding under the Term Loans, if not repaid sooner, are due and payable on January 1, 2027, or the Maturity Date. The Company may voluntarily prepay principal amounts outstanding under the Term Loans in minimum increments of $5.0 million, subject to a prepayment premium of (i) 3.0% of the principal amount of such Term Loan so prepaid prior to December 22, 2022, (ii) 2.0% of the principal amount of such Term Loan so prepaid after December 22, 2022 and prior to December 22, 2023, or (iii) 1.0% of the principal amount of such Term Loan so prepaid after December 22, 2023 and prior to December 22, 2025. If the Term Loans are accelerated due to, among others, the occurrence of a bankruptcy or insolvency event, the Company is required to make mandatory prepayments of (i) all principal amounts outstanding under the Term Loans, plus accrued and unpaid interest thereon through the prepayment date, (ii) any fees applicable by reason of such prepayment, (iii) the prepayment premiums set forth in the paragraph above, plus (iv) all other obligations that are due and payable, including expenses and interest at the Default Rate (as defined below) with respect to any past due amounts. The Loan Agreement contains customary representations and warranties and customary affirmative and negative covenants, including, among others, requirements as to financial reporting and insurance and restrictions on the Company’s ability to dispose of its business or property, to change its line of business, to liquidate or dissolve, to enter into any change in control transaction, to merge or consolidate with any other entity or to acquire all or substantially all the capital stock or property of another entity, to incur additional indebtedness, to incur liens on its property, to pay any dividends or other distributions on capital stock other than dividends payable solely in capital stock or to redeem capital stock. The Company has also agreed to a financial covenant whereby, beginning with the month ending December 31, 2023, the Company must generate net product revenue in excess of specified amounts for applicable measuring periods; provided, however, that such financial covenant shall not apply if the Company’s average market capitalization over the trailing five day period prior to the last day of any measurement month is equal to or in excess of $400.0 million. The Company was in compliance with all covenants under the Loan Agreement as of December 31, 2022. In addition, the Loan Agreement contains customary events of default that entitle the lenders to cause any indebtedness under the Loan Agreement to become immediately due and payable, and to exercise remedies against us and the collateral securing the Term Loans. Under the Loan Agreement, an event of default will occur if, among other things, the Company fails to make payments under the Loan Agreement, the Company breaches any of our covenants under the Loan Agreement, subject to specified cure periods with respect to certain breaches, the lenders determine that a material adverse change has occurred, or the Company or the Company's assets become subject to certain legal proceedings, such as bankruptcy proceedings. Upon the occurrence and for the duration of an event of default, an additional default interest rate, or the Default Rate, equal to 4.0% per annum will apply to all obligations owed under the Loan Agreement. The prepayment upon default and other potential additional interest provisions under the Loan Agreement were determined to be a compound embedded derivative instrument to be bifurcated from the loan and accounted for as a separate liability for accounting purposes under the guidance in ASC 815, Derivatives and Hedging. At the inception of the Loan Agreement and through December 31, 2022, the fair value of the embedded derivative was determined to be immaterial and will be remeasured at fair value each reporting period with any future changes in fair value reported in earnings. I n connection with the Loan Agreement, the Company paid a closing fee of $1.0 million on December 22, 2021, and is further obligated to pay (i) a final fee equal to 6.95% of the aggregate original principal amount of the Term Loans funded upon the earliest to occur of the Maturity Date, the acceleration of any Term Loan and the prepayment, refinancing, substitution, or replacement of any Term Loan and (ii) a certain amount of lenders’ expenses incurred in connection with the execution of the Loan Agreement. Additionally, in connection with the Loan Agreement, the Company entered into an Exit Fee Agreement, whereby the Company agreed to pay an exit fee in the amount 3.0% of each Term Loan funded upon (i) any change of control transaction or (ii) a revenue milestone, calculated on a trailing six month basis. Notwithstanding the prepayment or termination of the Term Loan, the exit fee will expire 10 years from the date of the Loan Agreement. The debt issuance costs have been recorded as a debt discount which are being accreted to interest expense through the maturity date of the term loan. Interest expense is calculated using the effective interest method, and is inclusive of non-cash amortization of debt issuance costs. The final maturity payment of $13.9 million is recognized over the life of the term loan through interest expense. At December 31, 2022, the effective interest rate was 13.79%. Interest expense relating to the term loan was $15.7 million for the year ended December 31, 2022, and immaterial for the year ended December 31, 2021. The following summarizes additional information related to our long-term debt (in thousands): December 31, 2022 2021 Long-term debt, gross $ 200,000 $ 75,000 Accrued final fee 1,871 — Unamortized debt issuance costs (4,102) (2,650) Long-term debt, net $ 197,769 $ 72,350 The contractual maturities of our long term debt related to principal and final fees is $213.9 million and is due January 1, 2027.

Convertible Preferred Stock and

Convertible Preferred Stock and Stockholders' Equity	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Convertible Preferred Stock and Stockholders' Equity	Convertible Preferred Stock and Stockholders’ Equity Convertible Preferred Stock In connection with the Company's IPO in February 2020, all of the Company’s outstanding shares of convertible preferred stock were automatically converted into 24,385,388 shares of common stock. Common Stock The holders of the Company’s common stock have one vote for each share of common stock. Common stockholders are entitled to dividends when, as, and if declared by the board of directors. The holders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. As of December 31, 2022, no dividends had been declared by the board of directors. The Company reserved the following shares of common stock for issuance as follows: December 31, 2022 2021 Options issued and outstanding 7,476,223 5,757,957 Common stock awards available for grant under employee incentive plans 3,784,386 2,068,004 Restricted stock units outstanding 1,576,529 335,196 Total common stock reserved 12,837,138 8,161,157 Authorized Share Capital On February 4, 2020, the Company’s certificate of incorporation was amended and restated to provide for 300,000,000 authorized shares of common stock with a par value of $0.0001 per share and 10,000,000 authorized shares of preferred stock with a par value of $0.0001 per share. There were no shares of preferred stock outstanding as of December 31, 2022 and 2021.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based CompensationIn January 2020, the Company’s board of directors approved the 2020 Equity Incentive Plan (2020 Plan), which became effective January 30, 2020 in connection with the IPO. The 2020 Plan serves as the successor incentive award plan to the Company’s 2017 Equity Incentive Plan (2017 Plan) and initially reserved 2,134,000 shares of common stock available for issuance pursuant to a variety of stock-based compensation awards, including stock options, stock appreciation rights, restricted stock awards, restricted stock unit (RSU) awards, and other stock-based awards, plus 1,550,150 shares of common stock that were reserved for issuance pursuant to future awards under the 2017 Plan at the time the 2020 Plan became effective, plus shares represented by awards outstanding under the 2017 Plan that are forfeited or lapsed unexercised and which following the effective date of the 2020 Plan are not issued under the 2017 Plan. In addition, the 2020 Plan reserve will increase on January 1 of each year beginning in 2021 through 2030, by an amount equal to the lesser of (a) four percent of the shares of stock outstanding (on an as converted basis) on the day immediately prior to the date of increase and (b) such smaller number of shares of stock as determined by our board of directors; provided, however, that no more than 11,000,000 shares of stock may be issued upon the exercise of incentive stock options. Accordingly, on January 1, 2023, 2022 and 2021, the plan reserve increased by 2,442,090, 2,013,830 and 1,747,112 shares, respectively. As of December 31, 2022, the Company had 1,048,775 shares available for future grant under the 2020 Plan. The 2020 Plan provides for the Company to sell or issue common stock or restricted common stock, or to grant incentive stock options or nonqualified stock options for the purchase of common stock, to employees, members of the board of directors, and consultants of the Company under terms and provisions established by the board of directors. Under the terms of the 2020 Plan, options may be granted at an exercise price not less than fair market value. The Company generally grants stock-based awards with service conditions. Options granted typically vest over a four-year period but may be granted with different vesting terms. Following the Company’s IPO and in connection with the effectiveness of the Company’s 2020 Plan, the 2017 Plan terminated and no further awards will be granted under that plan. However, all outstanding awards under the 2017 Plan will continue to be governed by their existing terms. In December 2021, the Company’s board of directors approved the 2022 Employment Inducement Incentive Plan (2022 Plan). The 2022 Plan initially reserved 1,250,000 shares of common stock for issuance pursuant to a variety of stock-based compensation awards, including stock options, stock appreciation rights, restricted stock awards, RSU awards, and other stock-based awards. In November 2022, the plan reserve was increased by 1,500,000. As of December 31, 2022, the Company had 1,665,900 shares available for future grant under the plan. Stock Option Activity The following summarizes option activity (in thousands, except share amounts): Number of Weighted- Average Exercise Price Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance—December 31, 2021 5,757,957 19.06 8.37 34,887 Granted 2,263,200 20.12 Exercised (331,890) 3.06 Forfeited (201,510) 24.61 Expired (11,534) 27.82 Balance—December 31, 2022 7,476,223 19.93 7.98 18,667 Exercisable—12/31/2022 (1) 3,398,758 16.97 7.19 16,185 ______________ (1) Options exercisable includes early exercisable options. The aggregate intrinsic value is calculated as the difference between the exercise price of the options and the fair value of the Company’s common stock as of December 31, 2022. The intrinsic value of options exercised for the year ended December 31, 2022 was $5.6 million. The total grant-date fair value of the options vested during the year ended December 31, 2022 was $25.8 million. The weighted-average grant-date fair value of employee options granted during the year ended December 31, 2022 was $14.08. Restricted Stock Unit Activity The following table summarizes information regarding our RSUs: Number of Units Weighted-Average Balance—December 31, 2021 335,196 $ 29.26 Granted 1,433,128 $ 19.24 Vested (120,595) $ 27.83 Forfeited (71,200) $ 18.94 Unvested Balance—December 31, 2022 1,576,529 $ 20.73 The grant date fair value of an RSU equals the closing price of our common stock on the grant date. RSUs generally vest equally over four years. There were no RSU grants prior to January 1, 2020. Stock-Based Compensation Expense Stock-based compensation expense included in the statements of operations and comprehensive loss was as follows (in thousands): Year Ended December 31, 2022 2021 2020 Research and development $ 13,034 $ 8,478 $ 3,503 Selling, general and administrative 19,648 15,414 4,440 Total stock-based compensation expense $ 32,682 $ 23,892 $ 7,943 As of December 31, 2022, there was $58.3 million of total unrecognized compensation cost related to unvested options that are expected to vest, which is expected to be recognized over a weighted-average period of 2.6 years. As of December 31, 2022, there was $25.6 million of total unrecognized compensation cost related to RSUs that is expected to vest, which is expected to be recognized over a weighted-average period of 3.1 years. In March 2021, in connection with the retirement of the former Chief Financial Officer, the Company modified the terms of this individual’s historical stock awards. As a result of the modifications, the Company recognized approximately $5.3 million of incremental stock-based compensation expense during the period, which is included in selling, general and administrative expenses. In determining the fair value of the stock options granted, the Company uses the Black-Scholes option-pricing model and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment. Fair value of common stock— The Company uses its closing stock price as reported on Nasdaq on the grant date for the fair value of its stock. Expected Term —The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding. The Company uses the simplified method (based on the mid-point between the vesting date and the end of the contractual term) to determine the expected term. Expected Volatility —Prior to 2022, the Company did not yet have sufficient trading history for its common stock to solely use its own historical volatility. Therefore, the expected volatility was estimated based on a combination of its own historical common stock volatility as well as the average historical volatilities for comparable publicly traded pharmaceutical companies over a period equal to the expected term of the stock option grants. The comparable companies were chosen based on their similar size, stage in the life cycle, and area of specialty. The Company applied that process until a sufficient amount of historical information regarding the volatility of its own stock price became available. Beginning in 2022, having over two years of trading history, the Company began using solely its own historical stock price for expected volatility. Risk-Free Interest Rate —The risk-free interest rate is based on the U.S. Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term of option. Dividend Yield —The Company has never paid dividends on its common stock and has no plans to pay dividends on its common stock. Therefore, the Company used an expected dividend yield of zero. The fair value of stock option awards granted was estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions: Year Ended December 31, 2022 2021 2020 Expected term (in years) 5.4 – 6.1 5.5 – 6.2 5.5 – 6.8 Expected volatility 77.9 – 82.1% 80.6 – 85.2% 78.4% – 80.8% Risk-free interest rate 1.4 – 4.2% 0.6 – 1.3% 0.3 – 1.4% Dividend yield —% —% —% Early Exercise of Employee Options The terms of the 2017 and 2020 Plans permit certain option holders to exercise options before their options are vested, subject to certain limitations. Upon early exercise, the awards become subject to a restricted stock agreement. The shares of restricted stock granted upon early exercise of the options are subject to the same vesting provisions in the original stock option awards. Shares issued as a result of early exercise that have not vested are subject to repurchase by the Company upon termination of the purchaser’s employment, at the price paid by the purchaser. While such shares have been issued, they are not considered outstanding for accounting purposes until they vest and are therefore excluded from shares used in determining loss per share until the repurchase right lapses and the shares are no longer subject to the repurchase feature. Prior to September 30, 2022, the liability was reclassified into common stock and additional paid-in capital as the shares vested and the repurchase right lapsed. Accordingly, the Company recorded the unvested portion of the exercise proceeds of $82,000 as a liability from the early exercise in the accompanying consolidated balance sheets as of December 31, 2021. As of December 31, 2021, there were $57,000 recorded in accrued liabilities and $25,000 recorded in other long-term liabilities, respectively related to shares that were subject to repurchase. No amounts were recorded as a liability as of December 31, 2022 as the amounts were immaterial. 2020 Employee Stock Purchase Plan The Company adopted the 2020 Employee Stock Purchase Plan, or the ESPP, which became effective on January 30, 2020 in connection with the IPO. The ESPP is designed to allow the Company’s eligible employees to purchase shares of the Company’s common stock, at semi-annual intervals, with their accumulated payroll deductions. Under the ESPP, participants are offered the option to purchase shares of the Company’s common stock at a discount during a series of successive offering periods. The option purchase price will be the lower of 85% of the closing trading price per share of the Company’s common stock on the first trading date of an offering period in which a participant is enrolled or 85% of the closing trading price per share on the purchase date, which will occur on the last trading day of each offering period. The ESPP is intended to qualify under Section 423 of the U.S. Internal Revenue Service Code of 1986, as amended. The maximum number of the Company’s common stock which will be authorized for sale under the ESPP is equal to the sum of (a) 351,000 shares of common stock and (b) an annual increase on the first day of each year beginning in 2021 and ending in 2030, equal to the lesser of (i) 1% of the shares of common stock outstanding (on an as converted basis) on the last day of the immediately preceding fiscal year and (ii) such number of shares of common stock as determined by the Company’s board of directors; provided, however, no more than 5,265,000 shares of the Company’s common stock may be issued under the ESPP. Accordingly, on January 1, 2023, 2022 and 2021, the ESPP reserve increased by 610,522, 503,457, and 436,778 shares, respectively. As of December 31, 2022, the Company had 1,069,711 shares available for future grant under the ESPP.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes No provision for income taxes was recorded for the years ended December 31, 2022, 2021 and 2020. The Company has incurred NOLs only in the United States since its inception. The Company has not reflected any benefit of such NOL carryforwards in the financial statements. Reconciliation of income tax computed at federal statutory rates to the reported provision for income taxes is as follows (in thousands): Year Ended December 31, 2022 2021 2020 Tax provision at U.S. statutory rate $ (65,406) $ (43,336) $ (28,493) State income taxes, net of federal benefit (12,260) (13,394) (9,213) Research and development tax and other credits (2,968) (2,497) (2,413) Change in valuation allowance 72,149 44,675 30,708 Uncertain tax positions — 12,562 8,801 Permanent differences 1,224 1,243 616 Ducentis IPR&D 6,223 — — 162(m) limitation 1,410 757 — Other (372) (10) (6) Provision for income tax $ — $ — $ — Significant components of the Company’s deferred income taxes were as follows (in thousands): December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 105,500 $ 76,202 Intangibles 1,469 1,626 Research and development tax credits 9,302 5,832 Section 174 R&E capitalization 34,646 — Accruals and reserves 3,693 2,318 Right-of-use liability 1,221 1,336 Stock-based compensation 7,817 4,126 Gross deferred tax assets $ 163,648 $ 91,440 Deferred tax liabilities: Property and equipment $ (225) $ (296) Right-of-use asset (696) (780) Gross deferred tax liabilities $ (921) $ (1,076) Net deferred tax assets $ 162,727 $ 90,364 Less valuation allowance (162,727) (90,364) Total deferred tax assets $ — $ — Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Due to the lack of earnings history, the net deferred tax assets have been fully offset by a valuation allowance. The valuation allowance increased by approximately $72.4 million and $44.7 million during the years ended December 31, 2022 and 2021, respectively. The Company has NOL carryforwards for federal, California and other state income tax purposes of approximately $471.2 million, $388.9 million and $79.8 million, respectively, as of December 31, 2022. Of the federal NOLs, $3.5 million originated before the 2018 tax year and will expire beginning in 2036. Under the Tax Cuts and Jobs Act of 2017, the remaining $467.7 million of NOLs generated after December 31, 2017 will be carried forward indefinitely. Of the $468.7 million in state net operating loss carryforwards $14.6 million can be carried forward indefinitely and the remaining start to expire in 2030. As of December 31, 2022, the Company also had federal and California research and development tax credit carryforwards of $16.8 million and $3.6 million, respectively. The federal research and development tax credit carryforwards will begin to expire in 2037. The California research and development tax credit carryforwards are available indefinitely. Federal and California tax laws impose significant restrictions on the utilization of NOL carryforwards in the event of a change in ownership of the Company, as defined by Internal Revenue Code Section 382 and 383. The Company believes it has had ownership changes in the past, and may have additional ownership changes in the future. These ownership changes could limit its ability to use all of its NOL carryforwards, credit carryforwards, or other tax attributes. The Inflation Reduction Act 2022 (IRA) which incorporates a Corporate Alternative Minimum Tax (CAMT) was signed on August 16, 2022. The changes will be effective for the tax years beginning after December 31, 2022. The new tax will require companies to compute two separate calculations for federal income tax purposes and pay the greater of the new minimum tax or their regular tax liability. The IRA is not expected to have a material impact for the Company. Uncertain Tax Benefits No liability related to uncertain tax positions is recorded on the financial statements. The following table summarizes the activity related to the unrecognized benefits (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ 38,942 $ 20,274 $ 6,448 Increases (decreases) related to tax positions taken during a prior year 490 (6) 5 Increases related to tax positions taken during the current year 3,073 18,674 13,821 Ending balance $ 42,505 $ 38,942 $ 20,274 The reversal of the uncertain tax benefits would not affect the effective tax rate to the extent that the Company continues to maintain a full valuation allowance against its deferred tax assets. The Company does not anticipate any significant changes to unrecognized tax benefits over the next 12 months. Included in unrecognized tax benefits of $42.5 million at December 31, 2022 was $35.3 million of tax benefits that, if recognized, would reduce our annual effective tax rate, subject to valuation allowance. The Company does not expect that there will be a significant change in the unrecognized tax benefits over the next 12 months. The Company is subject to taxation in the United States and state jurisdictions where applicable. Our tax years for 2016 and forward are subject to examination by the U.S. tax authorities and our tax years for 2016 and forward are subject to examination by the California tax authorities. Due to net operating loss carryforwards and research and development credits all years effectively remain open. It is our practice to recognize interest and/or penalties related to income tax matters in income tax expense. For the years ended December 31, 2022, 2021 and 2020, the Company has not recognized any interest or penalties related to income taxes.

Net Loss Per Share

Net Loss Per Share	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: As of December 31, 2022 2021 2020 Stock options to purchase common stock 7,476,223 5,757,957 3,655,945 Early exercised options subject to future vesting 14,853 90,146 339,385 RSU's subject to future vesting 1,576,529 335,196 162,930 ESPP shares subject to future issuance 17,046 12,219 3,733 Total 9,084,651 6,195,518 4,161,993

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). The condensed consolidated financial statements include our wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, management evaluates such estimates and assumptions for continued reasonableness. In particular, management makes estimates with respect to revenue recognition, accruals for research and development activities, stock-based compensation expense, and income taxes. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. Actual results could differ from those estimates.
Segments	Segments To date, the Company has viewed its financial information on an aggregate basis for the purposes of evaluating financial performance and allocating the Company’s resources. Accordingly, the Company has determined that it operates in one segment.
Cash and Cash Equivalents and Restricted Cash	Cash and Cash Equivalents The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of money market funds, commercial paper, U.S. Treasury securities, and short-term corporate debt securities. Restricted Cash
Marketable Securities	Marketable Securities Marketable securities consist of investment grade short to intermediate-term fixed income investments that have been classified as available-for-sale and are carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. Management determines the appropriate classification of its investments in fixed income securities at the time of purchase. Available-for-sale securities with original maturities beyond three months at the date of purchase, including those that have maturity dates beyond one year from the balance sheet date, are classified as current assets on the consolidated balance sheets due to their highly liquid nature and availability for use in current operations. Unrealized gains and losses are excluded from earnings and are reported as a component of other comprehensive income (loss). Realized gains and losses as well as credit losses, if any, on marketable securities are included in other income, net. The Company evaluated the underlying credit quality and credit ratings of the issuers during the period. To date, no such credit losses have occurred or have been recorded. The cost of investments sold is based on the specific-identification method. Unrealized gains and losses on marketable securities are reported as a component of accumulated other comprehensive income (loss) on the consolidated balance sheets. Interest on marketable securities is included in other income, net.
Trade Receivables, net	Trade Receivables, net The Company’s trade accounts receivable consists of amounts due primarily from pharmaceutical wholesalers and specialty pharmacy providers in the United States (collectively, its "Customers") related to sales of ZORYVE and have standard payment terms. For certain Customers, the trade accounts receivable for the Customer is net of distribution service fees, prompt pay discounts, and other adjustments. The Company monitors the financial performance and creditworthiness of its Customers so that it can properly assess and respond to changes in their credit profile. The Company will reserve against trade accounts receivable for estimated credit losses that may arise and any amounts determined to be uncollectible will be written off against the reserve when it is probable that the receivable will not be collected. The reserve amount for estimated losses was not material as of December 31, 2022.
Inventory	Inventory The Company values its inventories at the lower-of-cost or net realizable value. The Company determines the cost of its inventories, which includes costs related to products held for sale in the ordinary course of business, products in process of production for such sale, and items to be currently consumed in the production of goods to be available for sale, on a first-in, first-out (FIFO) basis. Due to the nature of the Company’s supply chain process, inventory that is owned by the Company is physically stored at third-party warehouses, logistics providers, and contract manufacturers. The Company performs an assessment of the recoverability of capitalized inventory during each reporting period, and writes down any excess and obsolete inventories to their net realizable value in the period in which the impairment is first identified. If they occur, such impairment charges are recorded as a component of cost of sales in the consolidated statements of operations. The Company capitalizes inventory costs associated with products following regulatory approval when future commercialization is considered probable and the future economic benefit is expected to be realized. Products which may be used in clinical development
Intangible Assets, net	Intangible Assets, netThe Company had no intangible assets as of December 31, 2021. The Company paid a milestone payment of $7.5 million to AstraZeneca in the third quarter of 2022 related to the FDA approval and launch of ZORYVE. This milestone payment was capitalized as an intangible asset and will be amortized to cost of sales over its useful life of 10 years from the date of first commercial sale, as this is the minimum amount of time that the related License Agreement will be in effect.The Company evaluates its long-lived assets, including intangibles, for impairment whenever events or changes in circumstance indicate that the carrying value of an asset might not be fully recoverable by comparing the fair value of the intangible asset based on the undiscounted net cash flows over the remaining useful life with its carrying value. If the fair value is less than the carrying amount, an impairment loss is recognized in operating results.
Concentration of Credit Risk and Other Risks and Uncertainties	Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, and marketable securities. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company is exposed to credit risk in the event of a default by the financial institutions holding its cash to the extent recorded on the consolidated balance sheets. Management believes the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held.
Fair Value Measurement	Fair Value Measurement The Company’s financial instruments, in addition to those presented in Note 3, include cash equivalents, accounts payable, accrued liabilities, and long-term debt. The carrying amount of cash equivalents, accounts payable, and accrued liabilities approximate their fair values due to their short maturities. As the long-term debt is subject to variable interest rates that are based on market rates which regularly reset, the Company believes that the carrying value of the long-term debt approximates its fair value. Assets and liabilities recorded at fair value on a recurring basis on the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1—Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Property and Equipment	Property and EquipmentProperty and equipment are stated at cost less accumulated depreciation. Depreciation on property and equipment is calculated using the straight-line method over the estimated useful lives of the assets which range from two
Leases	Leases The Company determines if an arrangement is or contains a lease at inception. Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The classification of the Company’s leases as operating or finance leases, along with the initial measurement and recognition of the associated ROU assets and lease liabilities, is performed at the lease commencement date. The measurement of lease liabilities is based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, based on the information available at commencement date, to determine the present value of lease payments when its leases do not provide an implicit rate. The Company uses the implicit rate when readily determinable. The ROU asset is based on the measurement of the lease liability, includes any lease payments made prior to or on lease commencement and is adjusted for lease incentives and initial direct costs incurred, as applicable. Lease expense for the Company’s operating leases is recognized on a straight-line basis over the lease term. The Company considers a lease term to be the non-cancelable period that it has the right to use the underlying asset, including any periods where it is reasonably assured the Company will exercise the option to extend the contract. Periods covered by an option to extend are included in the lease term if the lessor controls the exercise of that option. The Company’s lease agreements includes lease and non-lease components and the Company has elected to not separate such components for all classes of assets. Further, the Company elected the short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to leases with terms of 12 months or less (short-term leases) for all classes of assets.
Nonclinical and Clinical Accruals and Costs	Nonclinical and Clinical Accruals and CostsThe Company records accrued liabilities for estimated costs of research and development activities conducted by third-party service providers, which include the conduct of nonclinical studies, clinical trials, and contract manufacturing activities. These costs are a significant component of the Company’s research and development expenses. The Company accrues for these costs based on factors such as estimates of the work completed and in accordance with agreements established with its third-party service providers under the service agreements. The Company makes significant judgments and estimates in determining the accrued liabilities balance in each reporting period. As actual costs become known, the Company adjusts its accrued liabilities.
Convertible Preferred Stock	Convertible Preferred StockPrior to its IPO, the Company classified its outstanding convertible preferred stock outside of stockholders’ equity (deficit) on its consolidated balance sheets as the requirements of triggering a deemed liquidation event, as defined within its amended and restated certificate of incorporation, were not entirely within the Company’s control. In the event of such a deemed liquidation event, the proceeds from the event were to be distributed in accordance with the liquidation preferences, provided that the holders of convertible preferred stock had not converted their shares into common stock. The Company recorded the issuance of convertible preferred stock at the issuance price less related issuance costs. The Company did not adjust the carrying values of the convertible preferred stock to the liquidation preferences of such shares because of the uncertainty as to whether or when a deemed liquidation event may have occurred.
Revenues	Revenues Pursuant to Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when a customer obtains control of promised goods or services. The Company records the amount of revenue that reflects the consideration that it expects to receive in exchange for those goods or services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration to which it is entitled in exchange for the goods or services that it transfers to the customer. Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. The Company recognizes as revenue the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. Product Revenue, Net The Company sells its product to its Customers in the United States. The Company’s Customers subsequently resell the products to pharmacies, health care providers, and patients. In accordance with ASC 606, the Company recognizes net product revenues from sales when the Customers obtain control of the Company’s products, which typically occurs upon delivery to the Customer. The Company’s payment terms are generally between 31 - 65 days. Revenues from product sales are recorded at the net sales price, or “transaction price,” which includes estimates of variable consideration that result from (a) invoice discounts for prompt payment and distribution service fees, (b) government and private payer rebates, chargebacks, discounts and fees, (c) product returns and (d) costs of co-pay assistance programs for patients, as well as other incentives. Reserves are established for the estimates of variable consideration based on the amounts earned or to be claimed on the related sales. The reserves are classified as reductions to trade receivables, net if payable to a Customer or accrued liabilities if payable to a third- party. Where appropriate, the Company utilizes the expected value method to determine the appropriate amount for estimates of variable consideration based on factors such as the Company’s historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. The amount of variable consideration that is included in the transaction price may be constrained and is included in net product revenues only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results vary from the Company’s estimates, the Company adjusts these estimates, which would affect net product revenue and earnings in the period such variances become known. Distribution Service Fees : The Company engages with wholesalers to distribute its products to end customers. The Company pays the wholesalers a fee for services such as: data reporting, inventory management, chargeback administration, and service level commitment. The Company estimates the amount of distribution services fees to be paid to the Customers and adjusts the transaction price with the amount of such estimate at the time of sale to the Customer. Prompt Pay Discounts : The Company provides its Customers with a percentage discount on their invoice if the Customers pay within the agreed upon timeframe. The Company estimates the probability of Customers paying promptly based on the percentage of discount outlined in the agreement, and deducts the full amount of these discounts from its gross product revenues and accounts receivable at the time such revenues are recognized. Product Returns : The Company provides Customers a return credit in the amount of the purchase price paid by Customers for all products returned in accordance with the Company’s returned goods policy. In the initial sales period, the Company estimates its provision for sales returns based on industry data and adjusts the transaction price for such estimate at the time of sale to the Customer. Once sufficient history has been collected for product returns, the Company will utilize that history to inform our returns estimate. Once the product is returned, it is destroyed. The Company does not record a right-of-return asset. Chargeback : A chargeback is the difference between the manufacturer's invoice price to the wholesaler and the wholesaler’s customer's contract price. The wholesaler tracks these sales and "charges back" the manufacturer for the difference between the negotiated prices paid between the wholesaler's customers and wholesaler's acquisition cost. The Company estimates the percentage of goods sold that are eligible for chargeback and adjusts the transaction price for such discount at the time of sale to the Customer. Co-payment Assistance : Patients who meet certain eligibility requirements may receive co-payment assistance. The Company records contra-revenue expense for co-payment assistance based on actual program participation and estimates of program redemption using data provided by third-party administrators.
Cost of Sales	Cost of Sales Cost of sales includes direct and indirect costs related to the manufacturing and distribution of ZORYVE, including raw materials, third-party manufacturing costs, packaging services, freight-in, third-party royalties payable on the Company’s net product revenues, and amortization of certain intangible assets associated with ZORYVE. Cost of sales may also include period costs related to certain inventory warehouse and distribution operations and inventory adjustment charges. The Company began capitalizing inventory costs upon FDA approval of ZORYVE on July 29, 2022. As a result, manufacturing and other inventory costs incurred prior to FDA approval of ZORYVE were expensed and, therefore, are not included in cost of sales.
Research and Development	Research and Development Research and development expenses include costs directly attributable to the conduct of research and development programs, including the cost of salaries, payroll taxes, employee benefits, license fees, stock-based compensation expense, materials, supplies, and the cost of services provided by outside contractors. All costs associated with research and development are expensed as incurred. Payments made prior to the receipt of goods or services to be used in research and development are capitalized until the goods are received or services are rendered. Such payments are evaluated for current or long-term classification based on when they will be realized.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for share-based payments at fair value. The fair value of stock options is measured using the Black-Scholes option-pricing model. For share-based awards that vest subject to the satisfaction of a service requirement, the fair value measurement date for such awards is the date of grant and the expense is recognized on a straight-line basis, over the expected vesting period. For share-based awards that vest subject to a performance condition, the Company will recognize compensation cost for awards if and when the Company concludes that it is probable that the awards with a performance condition will be achieved on an accelerated attribution method. The Company accounts for forfeitures as they occur.
Income Taxes	Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period of enactment. The Company records a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. Due to the Company’s historical operating performance and the recorded cumulative net losses in prior fiscal periods, the net deferred tax assets have been fully offset by a valuation allowance. The Company recognizes the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained upon examination by the tax authorities, based on the merits of the position. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. To date, there have been no interest or penalties incurred in relation to the unrecognized tax benefits.
Variable Interest Entities	Variable Interest Entities The Company reviews agreements it enters into with third-party entities, pursuant to which the Company may have a variable interest in the entity, in order to determine if the entity is a variable interest entity (VIE). If the entity is a VIE, the Company assesses whether or not it is the primary beneficiary of that entity. In determining whether the Company is the primary beneficiary of an entity, the Company applies a qualitative approach that determines whether it has both (i) the power to direct the economically significant activities of the entity and (ii) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to that entity. If the Company determines it is the primary beneficiary of a VIE, it consolidates that VIE into the Company’s consolidated financial statements. The Company’s determination about whether it should consolidate such VIEs is made continuously as changes to existing relationships or future transactions may result in a consolidation or deconsolidation event. The Company currently does not consolidate any VIEs.
Net Loss Per Share	Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, without consideration for potential dilutive shares of common stock. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common share equivalents outstanding for the period determined using the treasury-stock method. Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share since the effects of potentially dilutive securities are antidilutive. Shares of common stock subject to repurchase are excluded from the weighted-average shares.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements There have been no new accounting pronouncements issued or effective that are expected to have a material impact on the Company's consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Estimated future amortization expense for the intangible assets subsequent to December 31, 2022 is as follows: Amounts 2023 750 2024 750 2025 750 2026 750 2027 750 Thereafter 3,438 Total amortization $ 7,188

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value of Assets Measured on a Recurring Basis	The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 53,641 $ — $ — $ 53,641 Commercial paper — 177,099 — 177,099 Corporate debt securities — 13,821 — 13,821 U.S. Treasury securities 165,028 — — 165,028 Total assets $ 218,669 $ 190,920 $ — $ 409,589 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 95,145 $ — $ — $ 95,145 Commercial paper — 119,413 — 119,413 Corporate debt securities — 114,324 — 114,324 U.S. Treasury securities 58,177 — — 58,177 Total assets $ 153,322 $ 233,737 $ — $ 387,059 ______________ (1) This balance includes cash requirements settled on a nightly basis.
Summary of Cash and Cash Equivalents	The following table summarizes the estimated value of the Company’s cash, cash equivalents and marketable securities, and the gross unrealized holding gains and losses (in thousands): December 31, 2022 Amortized Unrealized Unrealized Estimated Cash and cash equivalents: Money market funds (1) $ 53,641 $ — $ — $ 53,641 Total cash and cash equivalents $ 53,641 $ — $ — $ 53,641 Marketable securities: Commercial paper $ 177,099 — — $ 177,099 Corporate debt securities 13,890 — (69) 13,821 U.S. Treasury securities 166,045 7 (1,024) 165,028 Total marketable securities $ 357,034 $ 7 $ (1,093) $ 355,948 ______________ (1) This balance includes cash requirements settled on a nightly basis. December 31, 2021 Amortized Unrealized Unrealized Estimated Cash and cash equivalents: Money market funds (1) $ 95,145 $ — $ — $ 95,145 Corporate debt securities 1,304 — — 1,304 Total cash and cash equivalents $ 96,449 $ — $ — $ 96,449 Marketable securities: Commercial paper $ 119,413 $ — $ — $ 119,413 Corporate debt securities 113,145 — (125) 113,020 U.S. Treasury securities 58,307 — (130) 58,177 Total marketable securities $ 290,865 $ — $ (255) $ 290,610 ______________ (1) This balance includes cash requirements settled on a nightly basis.
Summary of Marketable Securities	The following table summarizes the estimated value of the Company’s cash, cash equivalents and marketable securities, and the gross unrealized holding gains and losses (in thousands): December 31, 2022 Amortized Unrealized Unrealized Estimated Cash and cash equivalents: Money market funds (1) $ 53,641 $ — $ — $ 53,641 Total cash and cash equivalents $ 53,641 $ — $ — $ 53,641 Marketable securities: Commercial paper $ 177,099 — — $ 177,099 Corporate debt securities 13,890 — (69) 13,821 U.S. Treasury securities 166,045 7 (1,024) 165,028 Total marketable securities $ 357,034 $ 7 $ (1,093) $ 355,948 ______________ (1) This balance includes cash requirements settled on a nightly basis. December 31, 2021 Amortized Unrealized Unrealized Estimated Cash and cash equivalents: Money market funds (1) $ 95,145 $ — $ — $ 95,145 Corporate debt securities 1,304 — — 1,304 Total cash and cash equivalents $ 96,449 $ — $ — $ 96,449 Marketable securities: Commercial paper $ 119,413 $ — $ — $ 119,413 Corporate debt securities 113,145 — (125) 113,020 U.S. Treasury securities 58,307 — (130) 58,177 Total marketable securities $ 290,865 $ — $ (255) $ 290,610 ______________ (1) This balance includes cash requirements settled on a nightly basis.

Balance Sheet Components (Table

Balance Sheet Components (Tables)	12 Months Ended
	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Summary of Inventories	The components of inventory are summarized as follows (in thousands): December 31, 2022 2021 Raw materials $ 5,659 $ — Work in progress 395 — Finished goods 1,460 — Total inventories $ 7,514 $ —
Summary of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2022 2021 Prepaid co-pay assistance program $ 3,226 $ — Prepaid insurance 956 518 Prepaid clinical trial costs 172 5,629 Other prepaid expenses and current assets 6,257 8,025 Total prepaid expenses and other current assets $ 10,611 $ 14,172
Summary of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): December 31, 2022 2021 Accrued compensation $ 14,000 $ 9,130 Clinical trial accruals 7,896 13,217 Accrued sales deductions 1,567 — Accrued expenses and other current liabilities 4,860 3,193 Total accrued liabilities $ 28,323 $ 25,540

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment, net consists of the following (in thousands): December 31, 2022 2021 Computer hardware $ 983 $ 775 Furniture and fixtures 379 346 Software 104 104 Leasehold improvements 1,568 1,568 Property and equipment, gross 3,034 2,793 Less accumulated depreciation (1,153) (532) Property and equipment, net $ 1,881 $ 2,261

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Operating Lease Payments	The minimum annual rental payments of the Company’s operating lease liability as of December 31, 2022 are as follows (in thousands): Amounts 2023 $ 965 2024 994 2025 1,024 2026 1,054 2027 1,087 2028 653 Total minimum lease payments $ 5,777 Less: Amounts representing interest (1,003) Present value of future minimum lease payments $ 4,774 Current portion operating lease liability 657 Operating lease liability, noncurrent 4,117 Total operating lease liability $ 4,774
Operating Lease Supplemental Cash Flow Information	The following information represents supplemental disclosure for the consolidated statements of cash flows related to the Company’s operating lease (in thousands): December 31, 2022 2021 2020 Cash flows from operating activities Cash paid for amounts included in the measurement of lease liabilities $ 781 $ 114 $ 192 The following summarizes additional information related to the operating lease: December 31, 2022 Weighted-average remaining lease term (in years) 5.6 Weighted-average discount rate 7.0 %

Long-term debt (Tables)

Long-term debt (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Summary of Long-Term Debt	The following summarizes additional information related to our long-term debt (in thousands): December 31, 2022 2021 Long-term debt, gross $ 200,000 $ 75,000 Accrued final fee 1,871 — Unamortized debt issuance costs (4,102) (2,650) Long-term debt, net $ 197,769 $ 72,350

Convertible Preferred Stock a_2

Convertible Preferred Stock and Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Components of Shares of Stock for Issuance	The Company reserved the following shares of common stock for issuance as follows: December 31, 2022 2021 Options issued and outstanding 7,476,223 5,757,957 Common stock awards available for grant under employee incentive plans 3,784,386 2,068,004 Restricted stock units outstanding 1,576,529 335,196 Total common stock reserved 12,837,138 8,161,157

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Stock Option Activity	The following summarizes option activity (in thousands, except share amounts): Number of Weighted- Average Exercise Price Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance—December 31, 2021 5,757,957 19.06 8.37 34,887 Granted 2,263,200 20.12 Exercised (331,890) 3.06 Forfeited (201,510) 24.61 Expired (11,534) 27.82 Balance—December 31, 2022 7,476,223 19.93 7.98 18,667 Exercisable—12/31/2022 (1) 3,398,758 16.97 7.19 16,185 ______________ (1) Options exercisable includes early exercisable options.
Restricted Stock Unit Activity	The following table summarizes information regarding our RSUs: Number of Units Weighted-Average Balance—December 31, 2021 335,196 $ 29.26 Granted 1,433,128 $ 19.24 Vested (120,595) $ 27.83 Forfeited (71,200) $ 18.94 Unvested Balance—December 31, 2022 1,576,529 $ 20.73
Stock-Based Compensation Expense	Stock-based compensation expense included in the statements of operations and comprehensive loss was as follows (in thousands): Year Ended December 31, 2022 2021 2020 Research and development $ 13,034 $ 8,478 $ 3,503 Selling, general and administrative 19,648 15,414 4,440 Total stock-based compensation expense $ 32,682 $ 23,892 $ 7,943
Assumptions in Calculating Stock Option Awards	The fair value of stock option awards granted was estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions: Year Ended December 31, 2022 2021 2020 Expected term (in years) 5.4 – 6.1 5.5 – 6.2 5.5 – 6.8 Expected volatility 77.9 – 82.1% 80.6 – 85.2% 78.4% – 80.8% Risk-free interest rate 1.4 – 4.2% 0.6 – 1.3% 0.3 – 1.4% Dividend yield —% —% —%

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation	Reconciliation of income tax computed at federal statutory rates to the reported provision for income taxes is as follows (in thousands): Year Ended December 31, 2022 2021 2020 Tax provision at U.S. statutory rate $ (65,406) $ (43,336) $ (28,493) State income taxes, net of federal benefit (12,260) (13,394) (9,213) Research and development tax and other credits (2,968) (2,497) (2,413) Change in valuation allowance 72,149 44,675 30,708 Uncertain tax positions — 12,562 8,801 Permanent differences 1,224 1,243 616 Ducentis IPR&D 6,223 — — 162(m) limitation 1,410 757 — Other (372) (10) (6) Provision for income tax $ — $ — $ —
Schedule of Deferred Tax Assets and Liabilities	Significant components of the Company’s deferred income taxes were as follows (in thousands): December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 105,500 $ 76,202 Intangibles 1,469 1,626 Research and development tax credits 9,302 5,832 Section 174 R&E capitalization 34,646 — Accruals and reserves 3,693 2,318 Right-of-use liability 1,221 1,336 Stock-based compensation 7,817 4,126 Gross deferred tax assets $ 163,648 $ 91,440 Deferred tax liabilities: Property and equipment $ (225) $ (296) Right-of-use asset (696) (780) Gross deferred tax liabilities $ (921) $ (1,076) Net deferred tax assets $ 162,727 $ 90,364 Less valuation allowance (162,727) (90,364) Total deferred tax assets $ — $ —
Schedule of Unrecognized Tax Benefits Roll Forward	The following table summarizes the activity related to the unrecognized benefits (in thousands): Year Ended December 31, 2022 2021 2020 Beginning balance $ 38,942 $ 20,274 $ 6,448 Increases (decreases) related to tax positions taken during a prior year 490 (6) 5 Increases related to tax positions taken during the current year 3,073 18,674 13,821 Ending balance $ 42,505 $ 38,942 $ 20,274

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Summary of Potentially Antidilutive Shares Excluded from the Calculation of Diluted Net Loss Per Share	The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: As of December 31, 2022 2021 2020 Stock options to purchase common stock 7,476,223 5,757,957 3,655,945 Early exercised options subject to future vesting 14,853 90,146 339,385 RSU's subject to future vesting 1,576,529 335,196 162,930 ESPP shares subject to future issuance 17,046 12,219 3,733 Total 9,084,651 6,195,518 4,161,993

Organization and Description _2

Organization and Description of Business (Details) $ / shares in Units, $ in Thousands

1 Months Ended

12 Months Ended

Aug. 05, 2022 USD ($) $ / shares shares

May 06, 2021 USD ($)

Feb. 05, 2021 USD ($) $ / shares shares

Oct. 06, 2020 USD ($) $ / shares shares

Feb. 04, 2020 USD ($) $ / shares shares

Aug. 31, 2022 USD ($)

Mar. 31, 2022 USD ($) $ / shares shares

Dec. 31, 2022 USD ($)

Dec. 31, 2021 USD ($)

Dec. 31, 2020 USD ($) shares

Aug. 02, 2022 USD ($)

Feb. 05, 2020 shares

Dec. 31, 2019 shares

Subsidiary, Sale of Stock [Line Items]

Proceeds from initial public offering, net of issuance costs

$ 0

$ 0

$ 168,642

Convertible preferred stock, shares outstanding (in shares) | shares

0

0

24,385,388

Proceeds from issuance of common stock

161,592

207,490

$ 128,360

Accumulated deficit

(719,764)

(408,306)

Cash, cash equivalents, restricted cash and marketable securities

410,800

388,600

Long-term debt, gross

200,000

75,000

Long-term debt

197,769

$ 72,350

Loan agreement | Secured debt

Subsidiary, Sale of Stock [Line Items]

Long-term debt, gross

125,000

Long-term debt

$ 200,000

Remaining borrowing capacity

$ 25,000

IPO

Subsidiary, Sale of Stock [Line Items]

Proceeds from initial public offering, net of issuance costs

$ 167,200

IPO | Common Stock

Subsidiary, Sale of Stock [Line Items]

Number of shares issued in transaction (in shares) | shares

10,781,250

Stock price (in USD per share) | $ / shares

$ 17

Underwriters' option

Subsidiary, Sale of Stock [Line Items]

Proceeds from issuance of common stock

$ 161,600

Underwriters' option | Common Stock

Subsidiary, Sale of Stock [Line Items]

Number of shares issued in transaction (in shares) | shares

1,125,000

825,000

1,406,250

Secondary Equity Public Offering

Subsidiary, Sale of Stock [Line Items]

Proceeds from issuance of common stock

$ 93,400

Secondary Equity Public Offering | Common Stock

Subsidiary, Sale of Stock [Line Items]

Number of shares issued in transaction (in shares) | shares

4,000,000

Stock price (in USD per share) | $ / shares

$ 25

Private placement

Subsidiary, Sale of Stock [Line Items]

Proceeds from issuance of common stock

$ 35,000

Private placement | Common Stock

Subsidiary, Sale of Stock [Line Items]

Number of shares issued in transaction (in shares) | shares

1,400,000

Third Equity Public Offering

Subsidiary, Sale of Stock [Line Items]

Proceeds from issuance of common stock

$ 207,500

Third Equity Public Offering | Common Stock

Subsidiary, Sale of Stock [Line Items]

Number of shares issued in transaction (in shares) | shares

6,325,000

Stock price (in USD per share) | $ / shares

$ 35

Fourth Equity Public Offering

Subsidiary, Sale of Stock [Line Items]

Proceeds from issuance of common stock

$ 161,600

Fourth Equity Public Offering | Common Stock

Subsidiary, Sale of Stock [Line Items]

Number of shares issued in transaction (in shares) | shares

8,625,000

Stock price (in USD per share) | $ / shares

$ 20

At-The-Market

Subsidiary, Sale of Stock [Line Items]

Proceeds from issuance of common stock

$ 14,500

At-The-Market | Cowen | Common Stock

Subsidiary, Sale of Stock [Line Items]

Number of shares issued in transaction (in shares) | shares

882,353

Stock price (in USD per share) | $ / shares

$ 17

Proceeds from issuance of common stock

$ 14,500

Issuance of shares of common stock for sales agreement

$ 100,000

Share sales agreement, percentage of gross sales price

0.03

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details)	1 Months Ended	3 Months Ended	12 Months Ended
	Feb. 29, 2020 shares	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) segment	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($) shares
Property, Plant and Equipment [Line Items]
Number of operating segments (segment) | segment			1
Restricted cash			$ 1,234,000	$ 1,542,000
Allowance for credit loss			0	0
Inventory, noncurrent			14,100,000
Intangible assets, net			7,188,000	0
Intangible assets, milestone payment		$ 7,500,000
Tangible asset impairment charges			0	0	$ 0
Unrecognized tax benefits, income tax penalties and interest expense			$ 0	$ 0	$ 0
Patents
Property, Plant and Equipment [Line Items]
Intangible asset, useful life			10 years
Common Stock
Property, Plant and Equipment [Line Items]
Shares issued as a result of conversion of promissory notes (in shares) | shares	24,385,388				24,385,388
Minimum
Property, Plant and Equipment [Line Items]
Useful life			2 years
Payment terms (in days)			31 days
Maximum
Property, Plant and Equipment [Line Items]
Useful life			5 years
Payment terms (in days)			65 days

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Finite-Lived Intangible Assets, Future Amortization Expense (Details) - Subsequent Event $ in Thousands	Jan. 01, 2023 USD ($)
Finite-Lived Intangible Assets [Line Items]
2023	$ 750
2024	750
2025	750
2026	750
2027	750
Thereafter	3,438
Total amortization	$ 7,188

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 53,641	$ 96,449
Total assets	409,589	387,059
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents and debt securities, available for sale	177,099	119,413
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents and debt securities, available for sale	13,821	114,324
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents and debt securities, available for sale	165,028	58,177
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	53,641	95,145
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	218,669	153,322
Level 1 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents and debt securities, available for sale	0	0
Level 1 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents and debt securities, available for sale	0	0
Level 1 | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents and debt securities, available for sale	165,028	58,177
Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	53,641	95,145
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	190,920	233,737
Level 2 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents and debt securities, available for sale	177,099	119,413
Level 2 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents and debt securities, available for sale	13,821	114,324
Level 2 | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents and debt securities, available for sale	0	0
Level 2 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Level 3 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents and debt securities, available for sale	0	0
Level 3 | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents and debt securities, available for sale	0	0
Level 3 | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents and debt securities, available for sale	0	0
Level 3 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 0	$ 0

Fair Value Measurements - Estim

Fair Value Measurements - Estimated Value of Cash and Cash Equivalents and Marketable Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 53,641,000	$ 96,449,000
Cash and cash equivalents, estimated fair value	53,641,000	96,449,000
Debt Securities, Available-for-sale [Line Items]
Amortized cost	357,034,000	290,865,000
Unrealized gains	7,000	0
Unrealized losses	(1,093,000)	(255,000)
Estimated fair value	355,948,000	290,610,000
Realized gains (losses) on investments	0	0
Unrealized loss on marketable securities	0	0
Allowance for credit loss	0	0
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized cost	177,099,000	119,413,000
Unrealized gains	0	0
Unrealized losses	0	0
Estimated fair value	177,099,000	119,413,000
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	13,890,000	113,145,000
Unrealized gains	0	0
Unrealized losses	(69,000)	(125,000)
Estimated fair value	13,821,000	113,020,000
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	166,045,000	58,307,000
Unrealized gains	7,000	0
Unrealized losses	(1,024,000)	(130,000)
Estimated fair value	165,028,000	58,177,000
Money market funds
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	53,641,000	95,145,000
Cash and cash equivalents, estimated fair value	$ 53,641,000	95,145,000
Corporate debt securities
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents		1,304,000
Cash and cash equivalents, estimated fair value		$ 1,304,000

Balance Sheet Components - Inve

Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 5,659	$ 0
Work in progress	395	0
Finished goods	1,460	0
Total inventories	$ 7,514	$ 0

Balance Sheet Components - Prep

Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Prepaid co-pay assistance program	$ 3,226	$ 0
Prepaid insurance	956	518
Prepaid clinical trial costs	172	5,629
Other prepaid expenses and current assets	6,257	8,025
Total prepaid expenses and other current assets	$ 10,611	$ 14,172

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]
Accrued compensation	$ 14,000	$ 9,130
Clinical trial accruals	7,896	13,217
Accrued sales deductions	1,567	0
Accrued expenses and other current liabilities	4,860	3,193
Total accrued liabilities	$ 28,323	$ 25,540

Property and Equipment, net - S

Property and Equipment, net - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,034	$ 2,793
Less accumulated depreciation	(1,153)	(532)
Property and equipment, net	1,881	2,261
Computer hardware
Property, Plant and Equipment [Line Items]
Property and equipment, gross	983	775
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	379	346
Software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	104	104
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,568	$ 1,568

Property and Equipment, net - N

Property and Equipment, net - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Depreciation	$ 622	$ 454	$ 122
Minimum
Property, Plant and Equipment [Line Items]
Useful life	2 years
Minimum | Property, plant and equipment, excluding leasehold improvements
Property, Plant and Equipment [Line Items]
Useful life	2 years
Maximum
Property, Plant and Equipment [Line Items]
Useful life	5 years
Maximum | Property, plant and equipment, excluding leasehold improvements
Property, Plant and Equipment [Line Items]
Useful life	5 years

License Agreements & Acquisit_2

License Agreements & Acquisition - AstraZeneca (Details) - USD ($)	1 Months Ended			3 Months Ended	12 Months Ended
	Aug. 31, 2022	Aug. 31, 2019	Jul. 31, 2018	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Patents
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Intangible asset, useful life					10 years
AstraZeneca
Research and Development Arrangement, Contract to Perform for Others [Line Items]
License agreement, cash payment		$ 2,000,000	$ 1,000,000			$ 0	$ 0
Product milestone payment for first product approval				$ 7,500,000
Maximum milestone payments for licensed products					$ 5,000,000
Maximum milestone payments for net worldwide sales					15,000,000
Future payable milestone payment					5,000,000
Annual net sales					$ 100,000,000
AstraZeneca | Patents
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Intangible asset, useful life	10 years
AstraZeneca | Series B Preferred Stock
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Issuance of convertible preferred stock, net of issuance costs (in shares)			484,388
Issuance of convertible preferred stock, net of issuance costs			$ 3,000,000

License Agreements & Acquisit_3

License Agreements & Acquisition - Hengrui (Details) - Hengrui - USD ($)	1 Months Ended		12 Months Ended
	Dec. 31, 2019	Jan. 31, 2018	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Research and Development Arrangement, Contract to Perform for Others [Line Items]
License agreement, cash payment	$ 1,500,000	$ 400,000	$ 0	$ 0	$ 0
Maximum milestone payments for licensed products			20,500,000
Maximum milestone payments for net worldwide sales			$ 200,000,000

License Agreements & Acquisit_4

License Agreements & Acquisition - Hawkeye (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2022	Dec. 31, 2021	Feb. 04, 2020
Variable Interest Entity [Line Items]
Common stock, par value (in USD per share)		$ 0.0001	$ 0.0001	$ 0.0001
Hawkeye
Variable Interest Entity [Line Items]
Number of shares held in VIE (in shares)	995,000
Ownership percentage of VIE	19.90%
Collaboration agreement, threshold of proceeds from stock issuance for additional consideration	$ 5,000,000
Collaborative arrangement, numerator for determining additional consideration	$ 2,000,000
Payments, milestones or royalties		$ 0
Hawkeye
Variable Interest Entity [Line Items]
Common stock, par value (in USD per share)	$ 0.0001

License Agreements & Acquisit_5

License Agreements & Acquisition - Ducentis Acquisition (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
	Sep. 07, 2022	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Asset Acquisition [Line Items]
Acquisition of in-process research and development			$ 15,450	$ 0	$ 0
Research and development			$ 182,435	$ 145,558	$ 115,308
Ducentis Biotherapeutics LTD Equity Interests
Asset Acquisition [Line Items]
Equity interest issued or issuable, number of shares (in shares)	610,258
Acquisition of in-process research and development	$ 15,900
Future payable milestone payment	400,000
Annual net sales	1,500,000
Liabilities acquired	1,200
Asset acquisition, transaction costs	1,200
Research and development		$ 29,600
Ducentis Biotherapeutics LTD Equity Interests | Common Stock
Asset Acquisition [Line Items]
Consideration transferred, equity interest issued and issuable	$ 12,500

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details)	1 Months Ended	12 Months Ended
	Apr. 30, 2020 USD ($) ft²	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Mar. 31, 2022 USD ($)	Nov. 30, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Restricted cash		$ 1,234,000	$ 1,542,000
Straight-line rent expense		716,000	686,000	$ 602,000
Variable lease cost		0	$ 0	0
Purchase obligation, next year		3,500,000
Purchase obligation, year two		700,000
Purchase obligation, year three		$ 700,000
Westlake Village, California Lease Arrangement
Lessee, Lease, Description [Line Items]
Square footage of leased space (in square feet) | ft²	22,643
Lease term (in months)	91 months
Renewal term	5 years
Lease term prior to termination option	67 months
Initial base rent	$ 76,000
Free rent period	1 year
Tenant improvement allowance	$ 1,250,000
Capitalization of leasehold improvements				$ 320,000
Available letter of credit	$ 1,500,000
Restricted cash					$ 1,200,000	$ 1,500,000

Commitments and Contingencies_2

Commitments and Contingencies - Operating Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
2023	$ 965
2024	994
2025	1,024
2026	1,054
2027	1,087
2028	653
Total minimum lease payments	5,777
Less: Amounts representing interest	(1,003)
Present value of future minimum lease payments	4,774
Current portion operating lease liability	657	$ 433
Operating lease liability, noncurrent	4,117	$ 4,774
Total operating lease liability	$ 4,774

Commitments and Contingencies_3

Commitments and Contingencies - Operating Lease Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 781	$ 114	$ 192

Commitments and Contingencies_4

Commitments and Contingencies - Operating Lease Additional Information (Details)	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Weighted-average remaining lease term (in years)	5 years 7 months 6 days
Weighted-average discount rate	7%

Long-term debt - Narrative (Det

Long-term debt - Narrative (Details) - USD ($)			12 Months Ended
	Aug. 02, 2022	Dec. 22, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Payment of debt issuance costs			$ 2,187,000	$ 1,637,000	$ 0
Maturity, due 2027			$ 213,900,000
Secured debt | Loan agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 225,000,000
Stated interest rate		7.45%
Basis spread on variable rate		0.10%
Interest rate at end of period			11.62%
Market capitalization		$ 400,000,000
Default rate		4%
Payment of debt issuance costs		$ 1,000,000
Final fee		6.95%
Exit fee		3%
Exit fee, period used for calculation of fee		6 months
Exit fee expiration period		10 years
Deferred final fee		$ 13,900,000
Effective interest rate			13.79%
Interest expense			$ 15,700,000	$ 0
Secured debt | Loan agreement | Tranche A term loan
Debt Instrument [Line Items]
Maximum borrowing capacity		75,000,000
Proceeds from issuance of debt		75,000,000
Secured debt | Loan agreement | Tranche B-1 term loan
Debt Instrument [Line Items]
Maximum borrowing capacity		50,000,000
Secured debt | Loan agreement | Tranche B-2 term loan
Debt Instrument [Line Items]
Maximum borrowing capacity		75,000,000
Incremental amount available for borrowing		15,000,000
Secured debt | Loan agreement | Tranche C term loan
Debt Instrument [Line Items]
Maximum borrowing capacity		25,000,000
Net product revenue milestone		$ 110,000,000
Milestone period		6 months
Secured debt | Loan agreement | Tranche B term loan
Debt Instrument [Line Items]
Proceeds from issuance of debt	$ 125,000,000
Secured debt | Loan agreement | Prior to December 22, 2022
Debt Instrument [Line Items]
Prepayment premium		3%
Secured debt | Loan agreement | After December 22, 2002 and prior to December 22, 2023
Debt Instrument [Line Items]
Prepayment premium		2%
Secured debt | Loan agreement | After December 22, 2023 and prior to December 22, 2025
Debt Instrument [Line Items]
Prepayment premium		1%
Secured debt | Loan agreement | Minimum
Debt Instrument [Line Items]
Periodic principal payment		$ 5,000,000

Long-term debt - Summary of Lon

Long-term debt - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Long-term debt, gross	$ 200,000	$ 75,000
Accrued final fee	1,871	0
Unamortized debt issuance costs	(4,102)	(2,650)
Long-term debt	$ 197,769	$ 72,350

Convertible Preferred Stock a_3

Convertible Preferred Stock and Stockholders' Equity - Narrative (Details)	1 Months Ended	12 Months Ended
	Feb. 29, 2020 shares	Dec. 31, 2020 shares	Dec. 31, 2022 USD ($) vote $ / shares shares	Dec. 31, 2021 $ / shares shares	Feb. 04, 2020 $ / shares shares
Class of Stock [Line Items]
Votes per share of common stock (in votes) | vote			1
Dividends declared | $			$ 0
Common stock, shares authorized (in shares)			300,000,000	300,000,000	300,000,000
Common stock, par value (in USD per share) | $ / shares			$ 0.0001	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized (in shares)					10,000,000
Convertible preferred stock, par value (In USD per share) | $ / shares					$ 0.0001
Preferred stock, shares outstanding (in shares)			0	0
Common Stock
Class of Stock [Line Items]
Conversion of preferred stock into common stock upon initial public offering (in shares)	24,385,388	24,385,388

Convertible Preferred Stock a_4

Convertible Preferred Stock and Stockholders' Equity - Shares of Common Stock for Issuance (Details) - shares	Dec. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Common stock reserved (in shares)	12,837,138	8,161,157
Options issued and outstanding
Class of Stock [Line Items]
Common stock reserved (in shares)	7,476,223	5,757,957
Common stock awards available for grant under employee incentive plans
Class of Stock [Line Items]
Common stock reserved (in shares)	3,784,386	2,068,004
Restricted stock units outstanding
Class of Stock [Line Items]
Common stock reserved (in shares)	1,576,529	335,196

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands					1 Months Ended			12 Months Ended
	Jan. 01, 2023	Jan. 01, 2022	Jan. 01, 2021	Jan. 30, 2020	Nov. 30, 2022	Mar. 31, 2021	Aug. 31, 2016	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved (in shares)								12,837,138	8,161,157
Intrinsic value of options exercised during the period								$ 5,600
Grant date fair value of options vested during the period								$ 25,800
Grant date fair value of options vested during the period (in USD per share)								$ 14.08
Stock-based compensation expense								$ 32,682	$ 23,892	$ 7,943
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost								$ 58,300
Recognition period for unrecognized compensation costs related to unvested options expected to vest								2 years 7 months 6 days
Expected dividend yield								0%	0%	0%
RSU's subject to future vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved (in shares)								1,576,529	335,196
Vesting period of stock-based awards granted								4 years
Granted (in shares)								1,433,128			0
Unrecognized compensation cost								$ 25,600
Recognition period for unrecognized compensation costs related to unvested options expected to vest								3 years 1 month 6 days
Stock options to purchase common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental cost of plan modification						$ 5,300
Restricted stock | First anniversary date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage							25%
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in shares available for grant, percentage of shares outstanding				1%
Purchase price of common stock, as a percentage of closing trading price per share				85%
Stock-based compensation expense								$ 880	$ 442
Employee Stock Purchase Plan | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized (in shares)		503,457	436,778
Shares available for grant (in shares)								1,069,711
Number of shares authorized for sale under the ESPP (in shares)				351,000
Maximum shares to be issued				5,265,000
Employee Stock Purchase Plan | Common Stock | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized (in shares)	610,522
2020 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved (in shares)				2,134,000
Increase in shares available for grant, percentage of shares outstanding				4%
Based number of options issuable (in shares)				11,000,000
Number of additional shares authorized (in shares)		2,013,830	1,747,112
Shares available for grant (in shares)								1,048,775
Expected dividend yield								0%
2020 Equity Incentive Plan | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized (in shares)	2,442,090
2020 Equity Incentive Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of stock-based awards granted								4 years
2017 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved (in shares)				1,550,150
Early exercise liability									82
Early exercise liability, current									57
Early exercise liability, noncurrent									$ 25
2022 Employment Inducement Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved (in shares)								1,250,000
Number of additional shares authorized (in shares)					1,500,000
Shares available for grant (in shares)								1,665,900

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Number of Options
Beginning balance, number of options (in shares)	5,757,957
Granted (in shares)	2,263,200
Exercised (in shares)	(331,890)
Forfeited (in shares)	(201,510)
Expired (in shares)	(11,534)
Ending balance, number of options (in shares)	7,476,223	5,757,957
Weighted- Average Exercise Price
Beginning balance, weighted-average exercise price (in USD per share)	$ 19.06
Granted (in USD per share)	20.12
Exercised (in USD per share)	3.06
Forfeited (in USD per share)	24.61
Expired (in USD per share)	27.82
Ending balance, weighted-average exercise price (in USD per share)	$ 19.93	$ 19.06
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Exercisable (in shares)	3,398,758
Exercisable, Weighted-Average Exercise Price (in USD per share)	$ 16.97
Remaining Contractual Term (Years)	7 years 11 months 23 days	8 years 4 months 13 days
Remaining contractual term, exercisable (years)	7 years 2 months 8 days
Aggregate Intrinsic Value	$ 18,667	$ 34,887
Intrinsic value, exercisable	$ 16,185

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Unit Activity (Details) - RSU's subject to future vesting - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2019
Number of Units
Beginning balance (in shares)	335,196
Granted (in shares)	1,433,128	0
Vested (in shares)	(120,595)
Forfeited (in shares)	(71,200)
Ending balance (in shares)	1,576,529
Weighted-Average Grant Date Fair Value
Beginning balance (in USD per share)	$ 29.26
Granted (in USD per share)	19.24
Vested (in USD per share)	27.83
Forfeited (in USD per share)	18.94
Ending balance (in USD per share)	$ 20.73

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 32,682	$ 23,892	$ 7,943
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	13,034	8,478	3,503
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 19,648	$ 15,414	$ 4,440

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions in Calculating Stock Option Awards (Details) - Stock Options	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, minimum	77.90%	80.60%	78.40%
Expected volatility, maximum	82.10%	85.20%	80.80%
Risk-free interest rate, minimum	1.40%	0.60%	0.30%
Risk-free interest rate, maximum	4.20%	1.30%	1.40%
Dividend yield	0%	0%	0%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years 4 months 24 days	5 years 6 months	5 years 6 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 1 month 6 days	6 years 2 months 12 days	6 years 9 months 18 days

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Contingency [Line Items]
Provision for income tax	$ 0	$ 0	$ 0
Increase in valuation allowance	72,400,000	44,700,000
Operating loss carryforwards, subject to expiration	3,500,000
Operating loss carryforwards, not subject to expiration	467,700,000
Liability related to uncertain tax positions	0	0	0
Unrecognized tax benefits	42,505,000	38,942,000	20,274,000	$ 6,448,000
Unrecognized tax benefits that would Impact effective tax rate	35,300,000
Unrecognized tax benefits, income tax penalties and interest expense	0	$ 0	$ 0
Federal
Income Tax Contingency [Line Items]
Operating loss carryforwards	471,200,000
Federal | Research tax credit carryforward
Income Tax Contingency [Line Items]
Tax credit carryforwards	16,800,000
State
Income Tax Contingency [Line Items]
Operating loss carryforwards	468,700,000
Operating loss carryforwards, subject to expiration	14,600,000
State | California
Income Tax Contingency [Line Items]
Operating loss carryforwards	388,900,000
State | Excluding California
Income Tax Contingency [Line Items]
Operating loss carryforwards	79,800,000
State | Research tax credit carryforward
Income Tax Contingency [Line Items]
Tax credit carryforwards	$ 3,600,000

Income Taxes - Schedule of Effe

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Tax provision at U.S. statutory rate	$ (65,406,000)	$ (43,336,000)	$ (28,493,000)
State income taxes, net of federal benefit	(12,260,000)	(13,394,000)	(9,213,000)
Research and development tax and other credits	(2,968,000)	(2,497,000)	(2,413,000)
Change in valuation allowance	72,149,000	44,675,000	30,708,000
Uncertain tax positions	0	12,562,000	8,801,000
Permanent differences	1,224,000	1,243,000	616,000
Ducentis IPR&D	6,223,000	0	0
162(m) limitation	1,410,000	757,000	0
Other	(372,000)	(10,000)	(6,000)
Provision for income tax	$ 0	$ 0	$ 0

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Net operating loss carryforwards	$ 105,500	$ 76,202
Intangibles	1,469	1,626
Research and development tax credits	9,302	5,832
Section 174 R&E capitalization	34,646	0
Accruals and reserves	3,693	2,318
Right-of-use liability	1,221	1,336
Stock-based compensation	7,817	4,126
Gross deferred tax assets	163,648	91,440
Deferred tax liabilities:
Property and equipment	(225)	(296)
Right-of-use asset	(696)	(780)
Gross deferred tax liabilities	(921)	(1,076)
Deferred tax assets, net:
Net deferred tax assets	162,727	90,364
Less valuation allowance	(162,727)	(90,364)
Total deferred tax assets	$ 0	$ 0

Income Taxes - Schedule of Unre

Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	$ 38,942	$ 20,274	$ 6,448
Increases related to tax positions taken during a prior year	490		5
Decreases related to tax positions taken during a prior year		(6)
Increases related to tax positions taken during the current year	3,073	18,674	13,821
Ending balance	$ 42,505	$ 38,942	$ 20,274

Net Loss Per Share (Details)

Net Loss Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive shares excluded from the calculation of net loss per share (in shares)	9,084,651	6,195,518	4,161,993
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive shares excluded from the calculation of net loss per share (in shares)	7,476,223	5,757,957	3,655,945
Early exercised options subject to future vesting
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive shares excluded from the calculation of net loss per share (in shares)	14,853	90,146	339,385
RSU's subject to future vesting
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive shares excluded from the calculation of net loss per share (in shares)	1,576,529	335,196	162,930
ESPP shares subject to future issuance
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially antidilutive shares excluded from the calculation of net loss per share (in shares)	17,046	12,219	3,733