Galecto (GLTO) 10-Q 28 Apr 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	Apr. 26, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-39655
Entity Registrant Name	GALECTO, INC.
Entity Central Index Key	0001800315
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	37-1957007
Entity Address, Address Line One	75 State Street
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02109
City Area Code	+45
Local Phone Number	70 70 52 10
Title of 12(b) Security	Common Stock, par value $0.00001 per share
Trading Symbol	GLTO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		25,673,474

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 25,068	$ 32,786
Marketable securities	28,179	27,438
Prepaid expenses and other current assets	3,881	3,686
Total current assets	57,128	63,910
Marketable securities, non-current	3,964	5,832
Operating lease right-of-use asset	704	810
Equipment, net	345	357
Other assets, non-current	2,489	2,279
Total assets	64,630	73,188
Current liabilities
Accounts payable	3,550	3,350
Accrued expenses and other current liabilities	10,513	7,757
Total current liabilities	14,063	11,107
Operating lease liabilities, non-current	234	328
Total liabilities	14,297	11,435
Commitments and contingencies (Note 9)
Stockholders’ equity
Preferred stock, par value of $0.00001 per share; 10,000,000 shares authorized at March 31, 2023 and December 31, 2022; no shares issued or outstanding as of March 31, 2023 and December 31, 2022
Common stock, par value of $0.00001 per share; 300,000,000 shares authorized at March 31, 2023 and December 31, 2022; 25,673,474 and 25,652,392 shares issued and outstanding at March 31, 2023 and December 31,2022, respectively
Additional paid-in capital	281,190	279,733
Accumulated deficit	(230,730)	(217,736)
Accumulated other comprehensive loss	(127)	(244)
Total stockholders’ equity	50,333	61,753
Total liabilities and stockholders' equity	$ 64,630	$ 73,188

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, authorized	300,000,000	300,000,000
Common stock, issued	25,673,474	25,652,392
Common stock, outstanding	25,673,474	25,652,392

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating expenses
Research and development	$ 10,362	$ 13,235
General and administrative	3,130	3,704
Total operating expenses	13,492	16,939
Loss from operations	(13,492)	(16,939)
Other income (expense), net
Interest income, net	434	61
Foreign exchange transaction gain (loss), net	64	(60)
Total other income , net	498	1
Net loss	$ (12,994)	$ (16,938)
Net loss per common share, basic	$ (0.51)	$ (0.67)
Net loss per common share, diluted	$ (0.51)	$ (0.67)
Weighted-average number of shares used in computing net loss per common share, basic	25,672,902	25,261,832
Weighted-average number of shares used in computing net loss per common share, diluted	25,672,902	25,261,832
Other comprehensive loss, net of tax
Currency translation gain (loss)	$ 25	$ (170)
Unrealized gain (loss) on marketable securities	92	(205)
Other comprehensive gain (loss), net of tax	117	(375)
Total comprehensive loss	$ (12,877)	$ (17,313)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2021	$ 117,223		$ 273,655	$ (156,112)	$ (320)
Beginning balance (in shares) at Dec. 31, 2021		25,261,832
Stock-based compensation expense	1,404		1,404
Other comprehensive gain (loss), net	(375)				(375)
Net loss	(16,938)			(16,938)
Ending balance at Mar. 31, 2022	101,314		275,059	(173,050)	(695)
Ending balance (in shares) at Mar. 31, 2022		25,261,832
Beginning balance at Dec. 31, 2022	61,753		279,733	(217,736)	(244)
Beginning balance (in shares) at Dec. 31, 2022		25,652,392
Stock-based compensation expense	1,434		1,434
Issuance of common stock; net of issuance costs	23		23
Issuance of common stock; net of issuance costs (in shares)		21,082
Other comprehensive gain (loss), net	117				117
Net loss	(12,994)			(12,994)
Ending balance at Mar. 31, 2023	$ 50,333		$ 281,190	$ (230,730)	$ (127)
Ending balance (in shares) at Mar. 31, 2023		25,673,474

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (12,994,000)	$ (16,938,000)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation	18,000	8,000
Stock-based compensation	1,434,000	1,404,000
Amortization of premiums and discounts on marketable securities	(154,000)	264,000
Amortization of right of use lease asset	121,000	110,000
Accretion of lease liability	16,000	16,000
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(194,000)	6,478,000
Other assets, noncurrent	(212,000)	(770,000)
Accounts payable	200,000	1,684,000
Accrued expenses and other current liabilities	2,779,000	1,061,000
Operating lease liabilities	(148,000)	(114,000)
Net cash used in operating activities	(9,134,000)	(6,797,000)
Cash flows from investing activities:
Purchases of marketable securities	(12,751,000)	(26,385,000)
Proceeds from sale of marketable securities	14,125,000	16,221,000
Purchases of property and equipment		(43,000)
Net cash provided by (used in) investing activities	1,374,000	(10,207,000)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of issuance costs	23,000
Net cash provided by financing activities	23,000
Net decrease in cash, cash equivalents and restricted cash	(7,737,000)	(17,004,000)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	19,000	(171,000)
Cash, cash equivalents and restricted cash, beginning of period	32,786,000	62,563,000
Cash, cash equivalents and restricted cash, end of period	$ 25,068,000	$ 45,388,000

Description of Business, Organi

Description of Business, Organization and Liquidity	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business, Organization and Liquidity	1. DESCRIPTION OF BUSINESS, ORGANIZATION AND LIQUIDITY Business and Organization Galecto, Inc., together with its consolidated subsidiaries (the “Company” or “Galecto”), is a clinical-stage biotechnology company developing novel therapeutics that are designed to target the biological processes that lie at the heart of fibrotic diseases and cancer. The Company’s initial focus is on the development of small molecule inhibitors of galectin-3 and lysyl oxidase-like 2 ("LOXL2”), which play key roles in regulating fibrosis and cancer. As of March 31, 2023, the Company’s wholly owned subsidiaries were PharmAkea, Inc. or PharmAkea, Galecto Securities Corporation, and Galecto Biotech AB, a Swedish company. Galecto Biotech ApS, a Danish operating company, is a wholly-owned subsidiary of Galecto Biotech AB. Risks and uncertainties The Company is subject to risks common to companies in the biotechnology industry, including, but not limited to, new technological innovations, protection of proprietary technology, dependence on key personnel, compliance with government regulations and the need to obtain additional financing. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure and extensive compliance reporting capabilities. The Company’s product candidates are in development. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained, that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees and consultants. Liquidity and management plans Since inception, the Company has devoted substantially all its efforts to business planning, research and development, recruiting management and technical staff and raising capital, and has financed its operations primarily through the issuance of redeemable convertible preferred shares, debt financings, the Company’s initial public offering (“IPO”) and sales of the Company's common stock in "at-the-market" offerings. As of March 31, 2023, the Company had an accumulated deficit of $ 230.7 million, from recurring losses since inception in 2011. The Company has incurred recurring losses and has no sales as none of its product candidates have obtained the necessary regulatory approval for commercialization and to be marketed as approved products. The Company expects to continue to incur losses as a result of costs and expenses related to the Company’s clinical development and corporate general and administrative activities. The Company had negative cash flows from operating activities during the three months ended March 31, 2023 and 2022 of $ 9.1 million and $ 6.8 million, respectively, and current projections indicate that the Company will have continued negative cash flows for the foreseeable future as it continues to develop its product candidates. Net losses incurred for the three months ended March 31, 2023 and 2022 were $ 13.0 million and $ 16.9 million, respectively. At March 31, 2023, the Company’s cash, cash equivalents and marketable securities amounted to $ 57.2 million and current assets amounted to $ 57.1 million and current liabilities amounted to $ 14.1 million. At December 31, 2022 , the Company’s cash, cash equivalents and marketable securities amounted to $ 66.1 million, current assets amounted to $ 63.9 million and current liabilities amounted to $ 11.1 million. In the future, the Company will consider the following ways to fund its operations including: (1) raising additional capital through equity and/or debt financings; (2) new commercial relationships to help fund future clinical trial costs (i.e. licensing and partnerships); (3) reducing spending on one or more research and development programs by discontinuing development; and/or (4) restructuring operations to change its overhead structure. Volatility in equity capital markets may adversely affect the market price of the Company’s shares of common stock, which may materially and adversely affect the Company’s ability to fund its business through public or private sales of equity securities. The Company’s future liquidity needs, and ability to address those needs, will largely be determined by the success of its product candidates, key developments and regulatory events.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying interim condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The accompanying interim condensed consolidated financial statements as of March 31, 2023 and for the three months ended March 31, 2023 and 2022, and related interim information contained within the notes to the interim condensed consolidated financial statements, are unaudited. In management’s opinion, the unaudited interim condensed consolidated financial statements have been prepared on the same basis as the Company’s audited consolidated financial statements and include all adjustments (including normal recurring adjustments) necessary for the fair presentation of the Company’s financial position as of March 31, 2023, results of operations, statement of stockholders’ equity for the three months ended March 31, 2023 and 2022 and its cash flows for the three months ended March 31, 2023 and 2022. All intercompany balances and transactions have been eliminated. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the Securities and Exchange Commission (“SEC”) on March 9, 2023 ("2022 Consolidated Financial Statements"). The results for the three months ended March 31, 2023 are not necessarily indicative of the results expected for the full fiscal year or any interim period. For the three months ended March 31, 2023, there have been no changes to the significant accounting policies as disclosed in Note 2 to the 2022 Consolidated Financial Statements. Recently issued accounting standards The Company periodically reviews new accounting standards that are issued and has not identified any new standards that it believes merit further discussion or would have a significant impact on its financial statements.

Investments

Investments	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Investments	3. INVESTMENTS Cash in excess of the Company’s immediate requirements is invested in accordance with the Company’s investment policy that primarily seeks to maintain adequate liquidity and preserve capital. A summary of the Company’s available-for-sale investments as of March 31, 2023 and December 31, 2022 consisted of the following (in thousands): At March 31, 2023 Amortized Gross Unrealized Gross Unrealized Fair Marketable securities: Cost Gains Losses Value Corporate bonds $ 28,269 $ — $ ( 90 ) $ 28,179 Total $ 28,269 $ — $ ( 90 ) $ 28,179 Marketable securities, noncurrent: Corporate bonds $ 4,047 $ — $ ( 83 ) $ 3,964 Total $ 4,047 $ — $ ( 83 ) $ 3,964 At December 31, 2022 Amortized Gross Unrealized Gross Unrealized Fair Marketable securities: Cost Gains Losses Value Corporate bonds $ 27,573 $ — $ ( 135 ) $ 27,438 Total $ 27,573 $ — $ ( 135 ) $ 27,438 Marketable securities, noncurrent: Corporate bonds $ 5,963 $ — $ ( 131 ) $ 5,832 Total $ 5,963 $ — $ ( 131 ) $ 5,832

Property and Equipment, Net

Property and Equipment, Net	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	4. PROPERTY AND EQUIPMENT, NET Property and equipment as of March 31, 2023 consisted of the following (in thousands): March 31, December 31, 2023 2022 Equipment $ 425 $ 419 Less: accumulated depreciation ( 80 ) ( 62 ) Equipment, net $ 345 $ 357 Depreciation expense for the three months ended March 31, 2023 and 2022 was $ 18,000 and $ 8,000 , respectively.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) 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 are performed in a manner to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company classified its money market funds within Level 1 because their fair values are based on their quoted market prices. The Company classified its debt securities within Level 2 because their fair values are determined using alternative pricing sources or models that utilized market observable inputs. A summary of the assets that are measured at fair value as of March 31, 2023 and December 31, 2022 is as follows (in thousands): Fair Value Measurement at Assets: Carrying Quoted Prices in Significant Significant Money market funds (1) $ 17,017 $ 17,017 $ — $ — Debt securities 32,143 — 32,143 — Total $ 49,160 $ 17,017 $ 32,143 $ — Fair Value Measurement at Assets: Carrying Quoted Prices in Significant Significant Money market funds (1) $ 16,445 16,445 — — Debt securities 33,270 — 33,270 — Total $ 49,715 $ 16,445 $ 33,270 $ — (1) Money market funds with maturities of 90 days or less at the date of purchase are included within cash and cash equivalents in the accompanying condensed consolidated balance sheets and are recognized at fair value .

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	3 Months Ended
	Mar. 31, 2023
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid Expenses and Other Current Assets	6. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following (in thousands): March 31, December 31, 2023 2022 Contract research and development costs $ 1,938 $ 1,450 Research and development tax credit receivable 804 792 Prepaid insurance costs 560 805 Value-added tax refund receivable 418 587 Other 161 52 Total prepaid expenses and other current assets $ 3,881 $ 3,686

Leases

Leases	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leases	7. LEASES The Company has the following operating leases: Location Primary Use Lease Renewal Option Copenhagen, Denmark Corporate headquarters January 2025 None London, United Kingdom Office space February 2024 None Gothenburg, Sweden Office space May 2023 None Stevenage, United Kingdom Laboratory space August 2025 None The Company has no finance leases and has elected to apply the short-term lease exception to all leases of one year or less. Rent expense for the three months ended March 31, 2023 and 2022 was $ 0.1 million during both periods. Quantitative information regarding the Company’s leases for the three months ended March 31, 2023 and 2022 was as follows: Three Months Ended Lease Cost 2023 2022 Operating lease cost (in thousands) $ 137 $ 126 Other Information Operating cash flows paid for amounts included (in thousands) $ 148 $ 114 Operating lease liabilities arising from obtaining (in thousands) $ — $ — As of March 31, 2023 and December 31, 2022 , the weighted average remaining lease term for operating leases was 1.6 years and 1.8 years, respectively. As of March 31, 2023 and December 31, 2022 , the weighted average discount rate for operating leases was 8 % for both periods. Operating lease liabilities at March 31, 2023 are as follows (in thousands): Operating Future Lease Payments Leases 2023 (excluding the period ended March 31, 2023) $ 384 2024 299 2025 52 2026 — 2027 — Total lease payments 735 Less: imputed interest ( 49 ) Total lease liabilities $ 686

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following (in thousands): March 31, December 31, 2023 2022 Contract research and development costs $ 8,394 $ 6,145 Employee compensation costs 1,121 597 Operating lease liabilities, current 452 476 Other liabilities 546 539 Total accrued expenses and other current liabilities $ 10,513 $ 7,757

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. COMMITMENTS AND CONTINGENCIES During the period ended March 31, 2023, there were no material changes to the Company’s commitments and contingencies as disclosed in Note 9 of the 2022 Consolidated Financial Statements. Further, the Company’s commitments related to lease agreements are disclosed in Note 7 to the Company’s unaudited interim condensed consolidated financial statements.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	10. STOCK-BASED COMPENSATION Employee equity plan In March 2020, the Company's Board of Directors and stockholders approved the 2020 Stock Option and Grant Plan (“2020 Plan”). Holders of stock options under the 2020 Plan shall be entitled to exercise the vested portion of the stock option during the term of the grant. If a qualified exit, as defined in the 2020 Plan, occurs, then all of the holders' unvested options shall vest immediately. In October 2020, the Company's Board of Directors and stockholders approved the 2020 Equity Incentive Plan (“2020 Equity Plan”). Following the adoption of the 2020 Equity Plan, no further options are available to be issued under the 2020 Plan. Stock options granted under the 2020 Equity Plan generally vest over a four-year period and expire ten years from the grant date. The shares available for grant under the 2020 Equity Plan will cumulatively increase by 5 percent of the number of shares of common stock issued and outstanding on January 1 st each year. At March 31, 2023 , the Company had 395,602 shares available for future grant under the 2020 Equity Plan. The following table sets forth the activity for the Company’s stock options during the three months ended March 31, 2023: Number of Weighted- Weighted- Aggregate Outstanding at December 31, 2022 5,778,885 $ 5.43 7.9 $ — Granted 1,797,350 1.22 — 425,460 Cancelled ( 25,766 ) 2.40 — 11,445 Outstanding at March 31, 2023 7,550,469 $ 4.44 8.2 $ 1,430,221 Vested and expected to vest at March 31, 2023 7,246,327 $ 4.40 8.4 $ 1,430,221 Vested and exercisable at March 31, 2023 3,356,935 $ 5.36 7.2 $ 44,205 The weighted-average grant date fair value of all stock options granted for the three months ended March 31, 2023 was $ 0.94 . The intrinsic value at March 31, 2023 and December 31, 2022 was based on the closing price of the Company’s common stock on that date of $ 1.99 and $ 1.15 per share, respectively. In November 2022, the Company's Board of Directors approved the 2022 Inducement Plan (the “Inducement Plan”), which allows for the grant of equity awards to be made to a new employee where the equity award is a material inducement to an employee entering into employment with the Company. The Inducement Plan was adopted by the Company's Board of Directors without stockholder approval pursuant to Nasdaq Listing Rule 5635(c)(4). A total of 250,000 shares of the Company's common stock have been reserved for issuance under the Inducement Plan. As of March 31, 2023, no shares have been issued under the Inducement Plan. Stock-based compensation The grant date fair value of stock options vested during the three months ended March 31, 2023 and 2022 was $ 2.2 million and $ 3.0 million, respectively. Total unrecognized compensation expense related to unvested options granted under the Company’s stock-based compensation plan was $ 11.1 million at March 31, 2023 , which is expected to be recognized over a weighted average period of 2.2 years. The Company recorded stock-based compensation expense related to the issuance of stock as follows (in thousands): Three Months Ended 2023 2022 Research and development $ 684 $ 653 General and administrative 750 751 Total stock-based compensation $ 1,434 $ 1,404 The Company uses a Black-Scholes option pricing model to determine fair value of its stock options. The Black-Scholes option pricing model includes various assumptions, including the fair value of common shares, expected life of stock options, the expected volatility based on the historical volatility of a publicly traded set of peer companies and the expected risk-free interest rate based on the implied yield on a U.S. Treasury security. The fair values of the options granted were estimated using the following assumptions: Three Months Ended March 31, 2023 2022 Risk-free interest rate 3.8 % 1.5 % Expected term (in years) 6.1 6.1 Expected volatility 90.7 % 90.2 % Expected dividend yield — —

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Loss Per Share	11. NET LOSS PER SHARE Basic and diluted net loss per share is calculated as follows (in thousands except share and per share amounts): Three Months Ended 2023 2022 Net loss $ ( 12,994 ) $ ( 16,938 ) Weighted-average number of shares used in computing net loss 25,672,902 25,261,832 Net loss per common share, basic and diluted $ ( 0.51 ) $ ( 0.67 ) The following outstanding potentially dilutive securities have been excluded from the calculation of diluted net loss per share, as their effect is anti-dilutive: Three Months Ended 2023 2022 Stock options to purchase common stock 7,550,469 5,647,478

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	12. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date on which the unaudited interim condensed consolidated financial statements were issued. The Company has concluded that no subsequent events have occurred that require disclosure to the unaudited interim condensed consolidated financial statements.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Recently issued accounting standards	Recently issued accounting standards The Company periodically reviews new accounting standards that are issued and has not identified any new standards that it believes merit further discussion or would have a significant impact on its financial statements.

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Summary of Available-for-Sale Investments	A summary of the Company’s available-for-sale investments as of March 31, 2023 and December 31, 2022 consisted of the following (in thousands): At March 31, 2023 Amortized Gross Unrealized Gross Unrealized Fair Marketable securities: Cost Gains Losses Value Corporate bonds $ 28,269 $ — $ ( 90 ) $ 28,179 Total $ 28,269 $ — $ ( 90 ) $ 28,179 Marketable securities, noncurrent: Corporate bonds $ 4,047 $ — $ ( 83 ) $ 3,964 Total $ 4,047 $ — $ ( 83 ) $ 3,964 At December 31, 2022 Amortized Gross Unrealized Gross Unrealized Fair Marketable securities: Cost Gains Losses Value Corporate bonds $ 27,573 $ — $ ( 135 ) $ 27,438 Total $ 27,573 $ — $ ( 135 ) $ 27,438 Marketable securities, noncurrent: Corporate bonds $ 5,963 $ — $ ( 131 ) $ 5,832 Total $ 5,963 $ — $ ( 131 ) $ 5,832

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	Property and equipment as of March 31, 2023 consisted of the following (in thousands): March 31, December 31, 2023 2022 Equipment $ 425 $ 419 Less: accumulated depreciation ( 80 ) ( 62 ) Equipment, net $ 345 $ 357

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Summary of Assets Measured at Fair Value	A summary of the assets that are measured at fair value as of March 31, 2023 and December 31, 2022 is as follows (in thousands): Fair Value Measurement at Assets: Carrying Quoted Prices in Significant Significant Money market funds (1) $ 17,017 $ 17,017 $ — $ — Debt securities 32,143 — 32,143 — Total $ 49,160 $ 17,017 $ 32,143 $ — Fair Value Measurement at Assets: Carrying Quoted Prices in Significant Significant Money market funds (1) $ 16,445 16,445 — — Debt securities 33,270 — 33,270 — Total $ 49,715 $ 16,445 $ 33,270 $ — (1) Money market funds with maturities of 90 days or less at the date of purchase are included within cash and cash equivalents in the accompanying condensed consolidated balance sheets and are recognized at fair value .

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Prepaid Expense and Other Assets, Current [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following (in thousands): March 31, December 31, 2023 2022 Contract research and development costs $ 1,938 $ 1,450 Research and development tax credit receivable 804 792 Prepaid insurance costs 560 805 Value-added tax refund receivable 418 587 Other 161 52 Total prepaid expenses and other current assets $ 3,881 $ 3,686

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Summary of Operating Leases	The Company has the following operating leases: Location Primary Use Lease Renewal Option Copenhagen, Denmark Corporate headquarters January 2025 None London, United Kingdom Office space February 2024 None Gothenburg, Sweden Office space May 2023 None Stevenage, United Kingdom Laboratory space August 2025 None
Quantitative Information Regarding Leases	Quantitative information regarding the Company’s leases for the three months ended March 31, 2023 and 2022 was as follows: Three Months Ended Lease Cost 2023 2022 Operating lease cost (in thousands) $ 137 $ 126 Other Information Operating cash flows paid for amounts included (in thousands) $ 148 $ 114 Operating lease liabilities arising from obtaining (in thousands) $ — $ —
Summary of Operating Lease Liabilities	Operating lease liabilities at March 31, 2023 are as follows (in thousands): Operating Future Lease Payments Leases 2023 (excluding the period ended March 31, 2023) $ 384 2024 299 2025 52 2026 — 2027 — Total lease payments 735 Less: imputed interest ( 49 ) Total lease liabilities $ 686

Accrued Expenses And Other Cu_2

Accrued Expenses And Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consist of the following (in thousands): March 31, December 31, 2023 2022 Contract research and development costs $ 8,394 $ 6,145 Employee compensation costs 1,121 597 Operating lease liabilities, current 452 476 Other liabilities 546 539 Total accrued expenses and other current liabilities $ 10,513 $ 7,757

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Stock Options Activity	The following table sets forth the activity for the Company’s stock options during the three months ended March 31, 2023: Number of Weighted- Weighted- Aggregate Outstanding at December 31, 2022 5,778,885 $ 5.43 7.9 $ — Granted 1,797,350 1.22 — 425,460 Cancelled ( 25,766 ) 2.40 — 11,445 Outstanding at March 31, 2023 7,550,469 $ 4.44 8.2 $ 1,430,221 Vested and expected to vest at March 31, 2023 7,246,327 $ 4.40 8.4 $ 1,430,221 Vested and exercisable at March 31, 2023 3,356,935 $ 5.36 7.2 $ 44,205
Summary of Stock-based Compensation Expense	The Company recorded stock-based compensation expense related to the issuance of stock as follows (in thousands): Three Months Ended 2023 2022 Research and development $ 684 $ 653 General and administrative 750 751 Total stock-based compensation $ 1,434 $ 1,404
Summary of Fair Value Assumptions of Options Granted	The fair values of the options granted were estimated using the following assumptions: Three Months Ended March 31, 2023 2022 Risk-free interest rate 3.8 % 1.5 % Expected term (in years) 6.1 6.1 Expected volatility 90.7 % 90.2 % Expected dividend yield — —

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Loss Per Share	Basic and diluted net loss per share is calculated as follows (in thousands except share and per share amounts): Three Months Ended 2023 2022 Net loss $ ( 12,994 ) $ ( 16,938 ) Weighted-average number of shares used in computing net loss 25,672,902 25,261,832 Net loss per common share, basic and diluted $ ( 0.51 ) $ ( 0.67 )
Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Loss Per Share	The following outstanding potentially dilutive securities have been excluded from the calculation of diluted net loss per share, as their effect is anti-dilutive: Three Months Ended 2023 2022 Stock options to purchase common stock 7,550,469 5,647,478

Description of Business, Orga_2

Description of Business, Organization and Liquidity - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Description Of Business Organization And Liquidity [Line Items]
Accumulated deficit	$ 230,730		$ 217,736
Net loss	(12,994)	$ (16,938)
Cash, cash equivalents and marketable securities	57,200		66,100
Current assets	57,128		63,910
Current liabilities	14,063		$ 11,107
Clinical Development and Corporate General and Administrative Activities
Description Of Business Organization And Liquidity [Line Items]
Net loss	$ (9,100)	$ (6,800)

Investments - Summary of Availa

Investments - Summary of Available-for-Sale Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Available for Sale Securities [Line Items]
Debt Securities, Available-for-sale, Type [Extensible List]	us-gaap:CorporateDebtSecuritiesMember	us-gaap:CorporateDebtSecuritiesMember
Investments - Current
Schedule of Available for Sale Securities [Line Items]
Amortized Cost	$ 28,269	$ 27,573
Gross Unrealized Losses	(90)	(135)
Fair Value	28,179	27,438
Investments - Noncurrent
Schedule of Available for Sale Securities [Line Items]
Amortized Cost	4,047	5,963
Gross Unrealized Losses	(83)	(131)
Fair Value	$ 3,964	$ 5,832

Property and Equipment, Net - S

Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property Plant And Equipment [Line Items]
Total property and equipment	$ 425	$ 419
Less: accumulated depreciation	(80)	(62)
Equipment, net	$ 345	$ 357

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 18,000	$ 8,000

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Assets Measured at Fair Value (Details) - USD ($) $ in Thousands		Mar. 31, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value		$ 49,160	$ 49,715
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	[1]	17,017	16,445
Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value		32,143	33,270
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value		17,017	16,445
Level 1 | Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	[1]	17,017	16,445
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value		32,143	33,270
Level 2 | Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value		$ 32,143	$ 33,270
[1] Money market funds with maturities of 90 days or less at the date of purchase are included within cash and cash equivalents in the accompanying condensed consolidated balance sheets and are recognized at fair value

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Prepaid Expense and Other Assets, Current [Abstract]
Contract research and development costs	$ 1,938	$ 1,450
Research and development tax credit receivable	804	792
Prepaid insurance costs	560	805
Value-added tax refund receivable	418	587
Other	161	52
Total prepaid expenses and other current assets	$ 3,881	$ 3,686

Leases - Summary of Operating L

Leases - Summary of Operating Leases (Details)	3 Months Ended
	Mar. 31, 2023
Copenhagen, Denmark
Operating Leased Assets [Line Items]
Operating lease, expiration date	Jan. 31, 2025
Operating lease,renewal option	None
London,United Kingdom
Operating Leased Assets [Line Items]
Operating lease, expiration date	Feb. 29, 2024
Operating lease,renewal option	None
Gothenburg, Sweden
Operating Leased Assets [Line Items]
Operating lease, expiration date	May 31, 2023
Operating lease,renewal option	None
Stevenage, United Kingdom
Operating Leased Assets [Line Items]
Operating lease, expiration date	Aug. 31, 2025
Operating lease,renewal option	None

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Leases [Line Items]
Rent expense	$ 0.1	$ 0.1
Weighted average remaining lease term for operating leases	1 year 7 months 6 days		1 year 9 months 18 days
Weighted average discount rate for operating leases	8%		8%

Leases - Quantitative Informati

Leases - Quantitative Information Regarding Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Lease Cost
Operating lease cost (in thousands)	$ 137	$ 126
Operating cash flows paid for amounts included in the measurement of lease liabilities (in thousands)	$ 148	$ 114

Leases - Summary of Operating_2

Leases - Summary of Operating Lease Liabilities (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Future Lease Payments
2023 (excluding the period ended March 31, 2023)	$ 384
2024	299
2025	52
Total lease payments	735
Less: imputed interest	(49)
Total lease liabilities	$ 686

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Contract research and development costs	$ 8,394	$ 6,145
Employee compensation costs	1,121	597
Operating lease liabilities, current	$ 452	$ 476
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities and Other Liabilities	Accrued Liabilities and Other Liabilities
Other liabilities	$ 546	$ 539
Total accrued expenses and other current liabilities	$ 10,513	$ 7,757

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Oct. 31, 2020	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Nov. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance and sale of common stock		$ 23
Number of options, granted		1,797,350
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value of stock options granted		$ 0.94
Intrinsic value per share of stock options		$ 1.99		$ 1.15
Fair value of stock options vested		$ 2,200	$ 3,000
2020 Plan | Unvested Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		$ 11,100
2020 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant	0
2020 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant		395,602
2020 Equity Incentive Plan | Unvested Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense that is expected to be recognized over a weighted-average period		2 years 2 months 12 days
2020 Equity Incentive Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period	4 years
Stock options, expiration period	10 years
Percentage increase of number of shares of common stock issued and outstanding	5%
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of aggregate shares of common stock sold		21,082
Common Stock | 2022 Inducement Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant					250,000
Shares issued		0

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Options Activity (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Number of Options, Outstanding	5,778,885
Number of Options, Granted	1,797,350
Number of Options, Cancelled	(25,766)
Number of Options, Outstanding	7,550,469	5,778,885
Number of Options, Vested and expected to vest	7,246,327
Number of Options, Vested and exercisable	3,356,935
Weighted average exercise price per share, Outstanding	$ 5.43
Weighted average exercise price per share, Granted	1.22
Weighted average exercise price per share, Cancelled	2.40
Weighted average exercise price per share, Outstanding	4.44	$ 5.43
Weighted average exercise price per share, Vested and expected	4.40
Weighted average exercise price per share, Vested and exercisable	$ 5.36
Weighted average remaining contractual term (in years), Outstanding	8 years 2 months 12 days	7 years 10 months 24 days
Weighted average remaining contractual term (in years), Vested and expected to vest	8 years 4 months 24 days
Weighted average remaining contractual term (in years), Vested and exercisable	7 years 2 months 12 days
Aggregate intrinsic value, Granted	$ 425,460
Aggregate intrinsic value, Cancelled	11,445
Aggregate intrinsic value, Outstanding	1,430,221
Aggregate intrinsic value, Vested and expected to vest	1,430,221
Aggregate intrinsic value, Vested and exercisable	$ 44,205

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Stock-based Compensation Expenses Related to Issuance of Stock (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 1,434	$ 1,404
Research and Development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	684	653
General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 750	$ 751

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Fair Value Assumptions of Options Granted (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]
Risk-free interest rate	3.80%	1.50%
Expected term (in years)	6 years 1 month 6 days	6 years 1 month 6 days
Expected volatility	90.70%	90.20%
Expected dividend yield	0%	0%

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net loss	$ (12,994)	$ (16,938)
Weighted-average number of shares used in computing net loss per common share, basic	25,672,902	25,261,832
Weighted-average number of shares used in computing net loss per common share, diluted	25,672,902	25,261,832
Net loss per common share, basic	$ (0.51)	$ (0.67)
Net loss per common share, diluted	$ (0.51)	$ (0.67)

Net Loss Per Share - Schedule_2

Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock Options to Purchase Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	7,550,469	5,647,478