Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 07, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FUSN | ||
Entity Registrant Name | Fusion Pharmaceuticals Inc. | ||
Entity Central Index Key | 0001805890 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Common Stock, Shares Outstanding | 43,331,138 | ||
Entity Public Float | $ 273.8 | ||
Entity File Number | 001-39344 | ||
Entity Tax Identification Number | 00-0000000 | ||
Entity Address, Address Line One | 270 Longwood Rd., S. | ||
Entity Address, City or Town | Hamilton | ||
Entity Address, State or Province | ON | ||
Entity Address, Country | CA | ||
Entity Address, Postal Zip Code | L8P 0A6 | ||
City Area Code | 289 | ||
Local Phone Number | 799-0891 | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | CA | ||
Title of 12(b) Security | Common shares, no par value per share | ||
Security Exchange Name | NASDAQ | ||
ICFR Auditor Attestation Flag | false | ||
Documents Incorporated by Reference | Part III of this Annual Report on Form 10-K incorporates by reference certain information from the registrant’s definitive proxy statement for its 2022 annual meeting of shareholders, which the registrant intends to file pursuant to Regulation 14A with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year end of December 31, 2021. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K. | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 52,898 | $ 90,517 |
Accounts receivable | 357 | |
Short-term investments | 147,897 | 131,882 |
Prepaid expenses and other current assets | 9,941 | 5,340 |
Restricted cash | 669 | 425 |
Total current assets | 211,762 | 228,164 |
Property and equipment, net | 2,967 | 1,967 |
Deferred tax assets | 1,645 | 653 |
Restricted cash | 1,222 | 1,466 |
Long-term investments | 19,987 | 77,082 |
Operating lease right-of-use assets | 6,486 | |
Other non-current assets | 8,202 | 1,344 |
Total assets | 252,271 | 310,676 |
Current liabilities: | ||
Accounts payable | 2,195 | 3,399 |
Accrued expenses | 7,563 | 4,659 |
Income taxes payable | 2,799 | |
Deferred revenue | 1,538 | 1,000 |
Operating lease liabilities | 1,215 | |
Total current liabilities | 12,511 | 11,857 |
Deferred rent, net of current portion | 11 | |
Income taxes payable, net of current portion | 297 | 295 |
Deferred revenue, net of current portion | 2,500 | 4,000 |
Operating lease liabilities, net of current portion | 5,507 | |
Total liabilities | 20,815 | 16,163 |
Commitments and contingencies (Note 15) | ||
Shareholders’ equity: | ||
Common shares, no par value, unlimited shares authorized as of December 31, 2021 and 2020; 43,073,727 shares and 41,725,797 shares issued and outstanding as of December 31, 2021 and 2020, respectively | ||
Additional paid-in capital | 425,821 | 407,672 |
Accumulated other comprehensive (loss) income | (115) | 44 |
Accumulated deficit | (194,250) | (113,203) |
Total shareholders’ equity | 231,456 | 294,513 |
Total liabilities and shareholders’ equity | $ 252,271 | $ 310,676 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, no par value | ||
Common stock, shares issued | 43,073,727 | 41,725,797 |
Common stock, shares outstanding | 43,073,727 | 41,725,797 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Total revenue | $ 1,440 | |
Type of Revenue [Extensible List] | us-gaap:CollaborativeArrangementMember | us-gaap:CollaborativeArrangementMember |
Operating expenses: | ||
Research and development | $ 56,357 | $ 17,191 |
General and administrative | 27,098 | 20,744 |
Total operating expenses | 83,455 | 37,935 |
Loss from operations | (82,015) | (37,935) |
Other income (expense): | ||
Change in fair value of preferred share tranche right liability | (32,722) | |
Change in fair value of preferred share warrant liability | (6,399) | |
Interest income, net | 381 | 327 |
Other income, net | 469 | 1,007 |
Total other income (expense), net | 850 | (37,787) |
Loss before benefit (provision) for income taxes | (81,165) | (75,722) |
Income tax benefit (provision) | 118 | (2,611) |
Net loss | (81,047) | (78,333) |
Unrealized (loss) gain on investments | (159) | 44 |
Comprehensive loss | (81,206) | (78,289) |
Reconciliation of net loss to net loss attributable to common shareholders: | ||
Net loss | (81,047) | (78,333) |
Dividends paid to preferred shareholders in the form of warrants issued | (1,382) | |
Net loss attributable to common shareholders | $ (81,047) | $ (79,715) |
Net loss per share attributable to common shareholders—basic and diluted | $ (1.90) | $ (3.62) |
Weighted-average common shares outstanding—basic and diluted | 42,598,843 | 22,033,269 |
Consolidated Statements of Non-
Consolidated Statements of Non-Controlling Interest, Convertible Preferred Shares and Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Asset purchase agreements [Member] | Class B Convertible Preferred Shares and Class B Preferred Exchangeable Shares [Member] | Non-Controlling Interest in Fusion Pharmaceuticals (Ireland) Limited [Member] | Non-Controlling Interest in Fusion Pharmaceuticals (Ireland) Limited [Member]Class B Preferred Exchangeable Shares and Class B Preferred Share Tranche Right [Member] | Class A And B Convertible Preferred Stock | Class A And B Convertible Preferred StockClass B Convertible Preferred Shares and Class B Preferred Share Tranche Right [Member] | Common Shares [Member] | Common Shares [Member]Asset purchase agreements [Member] | Additional Paid-in Capital | Additional Paid-in CapitalAsset purchase agreements [Member] | Additional Paid-in CapitalClass B Convertible Preferred Shares and Class B Preferred Exchangeable Shares [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Class B Convertible Preferred Shares and Class B Preferred Exchangeable Shares [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2019 | $ (33,488) | $ 20,961 | $ 71,592 | $ 1,286 | $ (34,774) | ||||||||||
Beginning Balance (in shares) at Dec. 31, 2019 | 73,125,790 | 1,929,555 | |||||||||||||
Issuance of Class B convertible/exchangeable preferred shares and Class B preferred share tranche right, net of issuance costs | $ 6,722 | $ 65,676 | |||||||||||||
Issuance of Class B convertible/exchangeable preferred shares and Class B preferred share tranche right, net of issuance costs (in shares) | 43,404,956 | ||||||||||||||
Initial fair value of Class B convertible preferred share tranche right liability | $ (1,105) | ||||||||||||||
Issuance of warrants to purchase Class B convertible preferred shares and Class B preferred exchangeable shares as a non-cash dividend to preferred shareholders | $ (1,382) | $ (1,286) | $ (96) | ||||||||||||
Reclassification of Class B convertible preferred share and preferred exchangeable share tranche right liability upon settlement | 4,257 | 35,311 | |||||||||||||
Conversion of Class A and B preferred exchangeable shares into Class A and B convertible preferred shares | $ (31,940) | $ 31,940 | |||||||||||||
Conversion of Class A and B preferred exchangeable shares into Class A and B convertible preferred shares (in shares) | 28,874,378 | ||||||||||||||
Conversion of Class A and B convertible preferred shares into common shares | 203,414 | $ (203,414) | 203,414 | ||||||||||||
Conversion of Class A and B convertible preferred shares into common shares (in shares) | (145,405,124) | 27,234,489 | |||||||||||||
Conversion of convertible preferred share warrants into common share warrants | 7,781 | 7,781 | |||||||||||||
Issuance of common shares upon closing of initial public offering, net of offering costs and underwriter fees / asset purchase agreements | 193,053 | 193,053 | |||||||||||||
IIssuance of common shares upon closing of initial public offering, net of offering costs and underwriter fees / asset purchase agreements, shares | 12,500,000 | ||||||||||||||
Issuance of common shares upon exercise of common share warrants (in shares) | 38,340 | ||||||||||||||
Issuance of common shares upon exercise of stock options | 56 | 56 | |||||||||||||
Issuance of common shares upon exercise of stock options (in shares) | 23,413 | ||||||||||||||
Share-based compensation expense | 3,368 | 3,368 | |||||||||||||
Unrealized (loss) gain on investments | 44 | $ 44 | |||||||||||||
Net loss | (78,333) | (78,333) | |||||||||||||
Ending Balance at Dec. 31, 2020 | 294,513 | 407,672 | (113,203) | 44 | |||||||||||
Ending Balance (in shares) at Dec. 31, 2020 | 41,725,797 | ||||||||||||||
Issuance of common shares upon closing of initial public offering, net of offering costs and underwriter fees / asset purchase agreements | $ 8,924 | $ 8,924 | |||||||||||||
IIssuance of common shares upon closing of initial public offering, net of offering costs and underwriter fees / asset purchase agreements, shares | 913,359 | ||||||||||||||
Issuance of common shares under ESPP | 124 | 124 | |||||||||||||
Issuance of common shares under ESPP (in shares) | 15,596 | ||||||||||||||
Issuance of common shares upon exercise of stock options | $ 498 | 498 | |||||||||||||
Issuance of common shares upon exercise of stock options (in shares) | 418,975 | 418,975 | |||||||||||||
Share-based compensation expense | $ 8,603 | 8,603 | |||||||||||||
Unrealized (loss) gain on investments | (159) | (159) | |||||||||||||
Net loss | (81,047) | (81,047) | |||||||||||||
Ending Balance at Dec. 31, 2021 | $ 231,456 | $ 425,821 | $ (194,250) | $ (115) | |||||||||||
Ending Balance (in shares) at Dec. 31, 2021 | 43,073,727 |
Consolidated Statements of No_2
Consolidated Statements of Non-Controlling Interest, Convertible Preferred Shares and Shareholders' Equity (Deficit) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Issuance of preferred shares and tranche right, issuance costs | $ 4,572 |
Issuance of common shares upon closing of initial public offering, offering costs and underwriter fees | 19,447 |
Class B Convertible Preferred Shares and Class B Preferred Share Tranche Right [Member] | |
Issuance of preferred shares and tranche right, issuance costs | 99 |
Class B Preferred Exchangeable Shares and Class B Preferred Share Tranche Right [Member] | |
Issuance of preferred shares and tranche right, issuance costs | $ 2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (81,047) | $ (78,333) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Share-based compensation expense | 8,603 | 3,368 |
Depreciation and amortization expense | 634 | 482 |
Non-cash lease expense | 1,073 | 25 |
Change in fair value of preferred share tranche right liability | 32,722 | |
Change in fair value of preferred share warrant liability | 6,399 | |
Amortization of premiums on investments, net | 1,653 | 410 |
Deferred tax benefit | (991) | (576) |
Common shares issued to acquire in-process research & development | 8,924 | |
Foreign exchange loss | 6 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (357) | |
Prepaid expenses and other current assets | (4,628) | (4,454) |
Other non-current assets | (6,582) | (1,344) |
Accounts payable | (1,183) | 2,558 |
Accrued expenses | 2,740 | 1,291 |
Deferred revenue | (962) | 5,000 |
Income taxes payable | (2,797) | 2,685 |
Operating lease liabilities | (826) | |
Net cash used in operating activities | (75,740) | (29,767) |
Cash flows from investing activities: | ||
Purchases of investments | (172,469) | (219,030) |
Sales and maturities of investments | 211,734 | 9,700 |
Purchases of property and equipment | (1,491) | (1,123) |
Net cash provided by (used in) investing activities | 37,774 | (210,453) |
Cash flows from financing activities: | ||
Proceeds from issuance of Class B convertible preferred shares and Class B preferred share tranche right, net of issuance costs | 65,676 | |
Proceeds from issuance of Class B preferred exchangeable shares of Fusion Pharmaceuticals (Ireland) Limited and Class B preferred share tranche right, net of issuance costs | 6,722 | |
Proceeds from the issuance of common shares upon closing of initial public offering, net of underwriter fees | 197,625 | |
Payment of offering costs | (275) | (4,572) |
Proceeds from issuance of common shares upon exercise of stock options and ESPP | 622 | 56 |
Net cash provided by financing activities | 347 | 265,507 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (37,619) | 25,287 |
Cash, cash equivalents and restricted cash at beginning of period | 92,408 | 67,121 |
Cash, cash equivalents and restricted cash at end of period | 54,789 | 92,408 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 3,961 | 501 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 1,166 | |
Increase in right-of-use assets and operating lease liabilities from operating lease modifications | 911 | |
Supplemental disclosure of non-cash investing and financing activities: | ||
Purchases of property and equipment included in accounts payable and accrued expenses | $ 178 | 35 |
Issuance of warrants to purchase Class B preferred shares and Class B preferred exchangeable shares as a non-cash dividend to preferred shareholders | $ 1,382 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of the Business and Basis of Presentation | 1. Nature of the Business and Basis of Presentation Fusion Pharmaceuticals Inc., together with its consolidated subsidiaries (“Fusion” or the “Company”), is a clinical-stage oncology company focused on developing next-generation radiopharmaceuticals as precision medicines. The Company was formed and subsequently incorporated as Fusion Pharmaceuticals Inc. in December 2014 The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, successful discovery and development of its product candidates, development by competitors of new technological innovations, dependence on key personnel, the ability to attract and retain qualified employees, protection of proprietary technology, compliance with governmental regulations, the impact of the COVID-19 pandemic, the ability to secure additional capital to fund operations and commercial success of its product candidates. Product candidates currently under development will require extensive preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel, and infrastructure and extensive compliance-reporting capabilities. Even if the Company’s drug development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its wholly-owned subsidiary, Fusion Pharmaceuticals US Inc. The Company’s Irish subsidiary, Fusion Pharmaceuticals (Ireland) Unlimited Company, was majority-owned until June 2020 at which time it became a wholly-owned subsidiary and was subsequently re-registered in Ireland as an unlimited company in December 2020. As a result of consolidating the Irish subsidiary as majority-owned until June 2020, the Company reflected a non-controlling interest on the consolidated balance sheet; however, the Company did not recognize a non-controlling interest in the consolidated statements of operations and comprehensive loss as the majority-owned subsidiary had no operating activities and was an extension of the parent company. The Company's Irish subsidiary was liquidated and dissolved in September 2021. All intercompany accounts and transactions have been eliminated in consolidation. Reverse Share Split On June 19, 2020, the Company effected a one-for-5.339 reverse share split of its issued and outstanding common shares and a proportional adjustment to the existing conversion ratios for each class of the Company’s Preferred Shares (see Note 9) and Preferred Exchangeable Shares (see Note 9). Accordingly, all share and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this reverse share split and adjustment of the preferred share conversion ratios. Initial Public Offering On June 25, 2020, the Company completed an initial public offering (“IPO”) of its common shares and issued and sold 12,500,000 common shares at a public offering price of $17.00 per share, resulting in net proceeds of $193.1 million after deducting underwriting fees, and after deducting offering costs. Upon closing of the IPO, the Company’s outstanding preferred exchangeable shares automatically converted into convertible preferred shares then the outstanding convertible preferred shares automatically converted into shares of common shares (see Note 9). Upon conversion of the convertible preferred shares, the Company reclassified the carrying value of the convertible preferred shares to common shares and additional paid-in capital. In addition, the warrants to purchase the Company’s convertible preferred shares and warrants to purchase preferred exchangeable shares of the Company’s Irish subsidiary were converted into warrants to purchase the Company’s common shares upon the closing of the IPO. As a result, the warrant liability was remeasured a final time on the closing date of the IPO and reclassified to shareholders’ equity (deficit) (see Note 9). In connection with the IPO on June 25, 2020, the Company filed an amended and restated articles of the corporation under laws governed by the Canada Business Corporations Act to authorize unlimited common shares with no par value. Basis of Presentation The accompanying consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the ordinary course of business. Since inception, the Company has funded its operations primarily with proceeds from sales of its convertible preferred shares, including borrowings under a convertible promissory note, which converted into convertible preferred shares, proceeds from sales of its Irish subsidiary’s preferred exchangeable shares, and most recently with the proceeds from the IPO completed in June 2020. The Company has incurred recurring losses since its inception, including net losses of $81.0 million and $78.3 million for the years ended December 31, 2021 and 2020, respectively. In addition, as of December 31, 2021, the Company had an accumulated deficit of $194.3 million. The Company expects to continue to generate operating losses for the foreseeable future. As of the issuance date of these consolidated financial statements, the Company expects that its cash, cash equivalents and investments will be sufficient to fund its operating expenses and capital expenditure requirements for at least the next 12 months. The future viability of the Company is dependent on its ability to raise additional capital to finance its operations. Impact of the COVID-19 Pandemic The worldwide COVID-19 pandemic has caused many governments to implement measures to slow the spread of the outbreak through quarantines, travel restrictions, heightened border security and other measures. The impact of this pandemic has been, and will likely continue to be, extensive in many aspects of society, which has resulted, and will likely continue to result, in significant disruptions to the global economy as well as businesses and capital markets around the world. The future progression of the pandemic and its effects on the Company’s business and operations are uncertain. In response to public health directives and orders and to help minimize the risk of the virus to employees, the Company has taken precautionary measures, including implementing work-from-home policies for certain employees. The impact of the virus and variants thereof, including work-from-home policies, may negatively impact productivity, disrupt the Company’s business, and delay its preclinical research and clinical trial activities and its development program timelines, the magnitude of which will depend, in part, on the length and severity of the restrictions and other limitations on the Company’s ability to conduct its business in the ordinary course. Specifically, the Company has experienced material delays in patient recruitment and enrollment in its ongoing Phase 1 clinical trial of FPI-1434 and FPI-1966 as a result of continued resourcing issues related to COVID-19 at trial sites and potentially due to concerns among patients about participating in clinical trials during a public health emergency. The Company may not be able to enroll additional patient cohorts on its planned timeline due to disruptions at its clinical trial sites and is unable to predict how the COVID-19 pandemic may affect its ability to successfully progress its clinical programs in the future. Other impacts to the Company’s business may include temporary closures of its suppliers or other third parties upon whom the Company relies and disruptions or restrictions on its employees’ ability to travel. Any prolonged material disruption to the Company’s employees, suppliers or other third parties upon whom the Company relies could adversely impact the Company’s preclinical research and clinical trial activities, financial condition and results of operations, including its ability to obtain additional financing. The Company is monitoring the potential impact of the COVID-19 pandemic, including variants thereof, on its business and consolidated financial statements. To date, the Company has not incurred impairment losses in the carrying values of its assets as a result of the pandemic and it is not aware of any specific related event or circumstance that would require it to revise its estimates reflected in these consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, the accrual of research and development expenses, valuations of share-based awards, revenue recognition and the valuations of common shares, preferred share tranche rights and preferred share warrants prior to the closing of the IPO. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions. Foreign Currency and Currency Translation The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s operating company in Canada, operating company in the U.S. and non-operating company in Ireland (dissolved in September 2021) is also the U.S. dollar. As a result, the Company records no cumulative translation adjustments related to translation of unrealized foreign exchange gains or losses. For the remeasurement of local currencies to the U.S. dollar functional currency of the Canadian and Irish entities, assets and liabilities are translated into U.S. dollars at the exchange rate in effect on the balance sheet date, and income items and expenses are translated into U.S. dollars at the average exchange rate in effect during the period. Resulting transaction gains (losses) are included in other income (expense), net in the consolidated statements of operations and comprehensive loss, as incurred. Adjustments that arise from exchange rate changes on transactions denominated in a currency other than the local currency are included in other income (expense), net in the consolidated statements of operations and comprehensive loss, as incurred. During the years ended December 31, 2021 and 2020, the Company recorded $0.2 million and $0.6 million, respectively, of foreign currency gains in the consolidated statements of operations and comprehensive loss. Concentrations of Credit Risk and of Significant Suppliers Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and investments. The Company’s cash equivalents and investments as of December 31, 2021 consisted of money market funds, U.S. and Canadian government agency securities, corporate bonds, municipal bonds and commercial paper. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The Company relies, and expects to continue to rely, on a small number of vendors to manufacture supplies and to process its product candidates for its development programs. These programs could be adversely affected by a significant interruption in the manufacturing process. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of standard checking accounts, money market accounts, and all highly liquid investments with an original maturity of three months or less at the date of purchase. As of December 31, 2021 and 2020, the Company was required to maintain separate cash balances of $0.3 million to collateralize corporate credit cards with a bank, which was classified as restricted cash, current, on its consolidated balance sheets. The Company also maintained a $0.1 million guaranteed investment certificate to fulfill certain contractual obligations which was classified as restricted cash, current, as of December 31, 2021 and 2020. In connection with the Company’s lease agreement entered into in October 2019 (see Note 14), the Company maintains a letter of credit of $1.5 million for the benefit of the landlord. As of December 31, 2021, $0.3 million and $1.2 million of the underlying cash balance collateralizing this letter of credit was classified as restricted cash, current and non-current, respectively, on the Company’s consolidated balance sheets based on the release date of the restrictions of this cash. As of December 31, 2020, the entire underlying cash balance collateralizing this letter of credit was classified as restricted cash, non-current on the Company’s consolidated balance sheets. As of December 31, 2021 and 2020, the cash, cash equivalents and restricted cash of $54.8 million and $92.4 million, respectively, presented in the consolidated statements of cash flows included cash and cash equivalents of $52.9 million and $90.5 million, respectively, and restricted cash of $1.9 million for both periods. Investments The Company determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determination at each balance sheet date. The Company classifies its investments as current or non-current based on each instrument’s underlying maturity date. Investments with original maturities of greater than three months and less than twelve months are classified as current and are included in short-term investments in the consolidated balance sheets. Investments with remaining maturities greater than one year from the balance sheet date are classified as non-current and are included in long-term investments in the consolidated balance sheets. The Company’s investments are classified as available-for-sale, are reported at fair value and consist of U.S. and Canadian government agency debt securities, corporate bonds, and commercial paper. Unrealized gains and losses are included in other comprehensive income (loss) as a component of shareholders’ equity (deficit) until realized. Amortization and accretion of premiums and discounts are recorded in interest income (expense). Realized gains and losses on debt securities are included in other income (expense), net. If any adjustment to fair value reflects a decline in value of the investment, the Company considers all available evidence to evaluate the extent to which the decline is other than temporary and, if so, marks the investment to market on the Company’s consolidated statements of operations and comprehensive loss. Deferred Offering Costs The Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of an equity financing, these costs are recorded as a reduction of the proceeds from the offering, either as a reduction to the carrying value of the preferred exchangeable shares or convertible preferred shares or in shareholders’ equity (deficit) as a reduction of additional paid-in capital generated as a result of the offering. Should an in-process equity financing be abandoned, the deferred offering costs would be expensed immediately as a charge to operating expenses in the consolidated statements of operations and comprehensive loss. Offering costs of $4.6 million incurred during 2020 have been recorded in shareholders’ equity (deficit) as a reduction of the gross proceeds generated from the Company’s initial public offering of common shares. The Company recorded $0.3 million of deferred offering costs as of December 31, 2021 in other non-current assets and did not record any deferred offering costs as of December 31, 2020. Collaborative Arrangements The Company considers the nature and contractual terms of arrangements and assesses whether an arrangement involves a joint operating activity pursuant to which the Company is an active participant and is exposed to significant risks and rewards dependent on the commercial success of the activity. If the Company is an active participant and is exposed to significant risks and rewards dependent on the commercial success of the activity, the Company accounts for such arrangement as a collaborative arrangement under ASC 808, Collaborative Arrangements For arrangements determined to be within the scope of ASC 808 where a collaborative partner is not a customer for certain research and development activities, the Company accounts for payments received for the reimbursement of research and development costs as a contra-expense in the period such expenses are incurred. This reflects the joint risk sharing nature of these activities within a collaborative arrangement. The Company classifies payments owed or receivables recorded as other current liabilities or prepaid expenses and other current assets, respectively, in the Company’s consolidated balance sheets. If payments from the collaborative partner to the Company represent consideration from a customer in exchange for distinct goods and services provided, then the Company accounts for those payments within the scope of ASC 606, Revenue from Contracts with Customers Revenue from Contracts with Customers In accordance with ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, it performs the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract , (iii) determine the transaction price , (iv) allocate the transaction price to the performance obligations within the contract and (v) recognize revenue when (or as) the Company satisfies a performance obligation . The Company only applies the five-step model to contracts when it determines that it is probable it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within the contract to determine whether each promised good or service is a performance obligation. The promised goods or services in the Company’s arrangements typically consist of a license to the Company’s intellectual property and/or research and development services. The Company may provide customers with options to additional items in such arrangements, which are accounted for separately when the customer elects to exercise such options, unless the option provides a material right to the customer. Performance obligations are promises in a contract to transfer a distinct good or service to the customer that (i) the customer can benefit from on its own or together with other readily available resources, and (ii) is separately identifiable from other promises in the contract. Goods or services that are not individually distinct performance obligations are combined with other promised goods or services until such combined group of promises meet the requirements of a performance obligation. The Company determines transaction price based on the amount of consideration the Company expects to receive for transferring the promised goods or services in the contract. Consideration may be fixed, variable, or a combination of both. At contract inception for arrangements that include variable consideration, the Company estimates the probability and extent of consideration it expects to receive under the contract utilizing either the most likely amount method or expected amount method, whichever best estimates the amount expected to be received. The Company then considers any constraints on the variable consideration and includes in the transaction price variable consideration to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company then allocates the transaction price to each performance obligation based on the relative standalone selling price and recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) control is transferred to the customer and the performance obligation is satisfied. For performance obligations which consist of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. The Company records amounts as accounts receivable when the right to consideration is deemed unconditional. Amounts received, or that are unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract are recognized as deferred revenue. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as the current portion of deferred revenue. Amounts not expected to be recognized as revenue within the 12 months following the balance sheet date are classified as deferred revenue, net of current portion. The Company’s revenue generating arrangements typically include upfront license fees, milestone payments and/or royalties. If a license is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from nonrefundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. At the inception of an agreement that includes research and development milestone payments, the Company evaluates each milestone to determine when and how much of the milestone to include in the transaction price. The Company first estimates the amount of the milestone payment that the Company could receive using either the expected value or the most likely amount approach. The Company primarily uses the most likely amount approach as this approach is generally most predictive for milestone payments with a binary outcome. Then, the Company considers whether any portion of the estimated amount is subject to the variable consideration constraint (that is, whether it is probable that a significant reversal of cumulative revenue would not occur upon resolution of the uncertainty). The Company updates the estimate of variable consideration included in the transaction price at each reporting date which includes updating the assessment of the likely amount of consideration and the application of the constraint to reflect current facts and circumstances. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company will recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). For the year ended December 31, 2021, the Company recorded $1.4 million of revenue under collaboration agreements. Please refer to Note 3, “Collaboration Agreement” for additional details regarding revenue recognition under the AstraZeneca Agreement. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense is recognized using the straight-line method over the estimated useful life of each asset, as follows: Estimated Useful Life Laboratory equipment 5 years Computer hardware and software 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or 10 years Estimated useful lives are periodically assessed to determine if changes are appropriate. Maintenance and repairs are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost of these assets and related accumulated depreciation or amortization are removed from the accounts and any resulting gains or losses are included in loss from operations in the period of disposal. Costs for capital assets not yet placed into service are capitalized as construction-in-progress and depreciated once placed into service. Business Combinations In determining whether an acquisition should be accounted for as a business combination or asset acquisition, the Company first determines whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this is the case, the single identifiable asset or the group of similar assets is not deemed to be a business, and is instead deemed to be an asset. If this is not the case, the Company then further evaluates whether the single identifiable asset or group of similar identifiable assets and activities includes, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. If so, the Company concludes that the single identifiable asset or group of similar identifiable assets and activities is a business. The Company accounts for business combinations using the acquisition method of accounting. Application of this method of accounting requires that (i) identifiable assets acquired (including identifiable intangible assets) and liabilities assumed generally be measured and recognized at fair value as of the acquisition date and (ii) the excess of the purchase price over the net fair value of identifiable assets acquired and liabilities assumed be recognized as goodwill, which is not amortized for accounting purposes but is subject to testing for impairment at least annually. Acquired in-process research and development (“IPR&D”) is recognized at fair value and initially characterized as an indefinite-lived intangible asset, irrespective of whether the acquired IPR&D has an alternative future use. Transaction costs related to business combinations are expensed as incurred. Determining the fair value of assets acquired and liabilities assumed in a business combination requires management to use significant judgment and estimates, especially with respect to intangible assets. During the measurement period, which extends no later than one year from the acquisition date, the Company may record certain adjustments to the carrying value of the assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, all adjustments are recorded in the consolidated statements of operations as operating expenses or income. To date, the Company has not recorded any acquisitions as a business combination. Asset Acquisitions The Company measures and recognizes asset acquisitions that are not deemed to be business combinations based on the cost to acquire the assets, which includes transaction costs. Goodwill is not recognized in asset acquisitions. In an asset acquisition, the cost allocated to acquire IPR&D with no alternative future use is charged to expense at the acquisition date. Contingent consideration in asset acquisitions payable in the form of cash is recognized when payment becomes probable and reasonably estimable, unless the contingent consideration meets the definition of a derivative, in which case the amount becomes part of the asset acquisition cost when acquired. Contingent consideration payable in the form of a fixed number of the Company’s own shares is measured at fair value as of the acquisition date and recognized when the issuance of the shares becomes probable. Upon recognition of the contingent consideration payment, the amount is included in the cost of the acquired asset or group of assets, or, if related to IPR&D with no alternative future use, charged to expense. Impairment of Long-Lived Assets Long-lived assets consist of property and equipment. Long-lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset group for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset group to its carrying value. An impairment loss would be recognized in loss from operations when estimated undiscounted future cash flows expected to result from the use of an asset group are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset group over its fair value. The Company did not record any impairment losses on long-lived assets during the years ended December 31, 2021 and 2020. Fair Value Measurements Certain assets and liabilities of the Company are carried at fair value under GAAP. 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 must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. Prior to the settlement of the Company’s preferred share tranche right liability and prior to the conversion of the Company’s preferred share warrant liability, these instruments were carried at fair value, determined according to Level 3 inputs in the fair value hierarchy described above (see Note 4). The Company’s cash equivalents and investments are carried at fair value, determined according to the fair value hierarchy described above (see Note 4). The carrying values of the Company’s amounts due for Canadian harmonized sales tax, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these liabilities. Segment Information The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. The Company’s focus is on the development of next-generation radiopharmaceuticals as precision medicines for hard-to-treat cancers. Research and Development Costs Research and development costs are expensed as incurred. Research and development expenses consist of costs incurred in performing research and development activities, including costs for salaries and bonuses, employee benefits, subcontractors, facility-related expenses, depreciation and amortization, share-based compensation, third-party license fees, laboratory supplies, and external costs of outside vendors engaged to conduct discovery, preclinical and clinical development activities and clinical trials as well as to manufacture clinical trial materials, and other costs. The Company recognizes external research and development costs based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its service providers. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses. Such prepaid expenses are recognized as an expense when the goods have been delivered or the related services have been performed, or when it is no longer expected that the goods will be delivered or the services rendered. Upfront payments under license agreements are expensed as research and development expense upon receipt of the license, and annual maintenance fees under license agreements are expensed in the period in which they are incurred. Milestone payments under license agreements are accrued, with a corresponding expense being recognized, in the period in which the milestone is determined to be probable of achievement and the related amount is reasonably estimable. Research, Development and Manufacturing Contract Costs and Accruals The Company has entered into various research, development and manufacturing contracts with research institutions and other companies. These agreements are generally cancelable, and related costs are recorded as research and development expenses as incurred. The Company records accruals for estimated ongoing research, development and manufacturing costs. When billing terms under these contracts do not coincide with the timing of when the work is performed, the Company is required to make estimates of outstanding obligations to those third parties as of period end. Any accrual estimates are based on a number of factors, including the Company’s knowledge of the progress towards completion of the research, development and manufacturing activities, invoicing to date under the contracts, communication from the research institutions and other companies of any actual costs incurred during the period that have not yet been invoiced and the costs included in the contracts. Significant judgments and estimates may be made in determining the accrued balances at the end of any reporting period. Actual results could differ from the estimates made by the Company. The historical accrual estimates made by the Company have not been materially different from the actual costs. Patent Costs All patent-related costs incurred in connection with filing and prosecuting patent applications are expensed as incurred due to the uncertainty about the recovery of the expenditure. Amounts incurred are classified as general and administrative expenses. Share-Based Compensation The Company measures stock options with service-based vesting granted to employees, non-employees and directors based on the fair value on the date of grant using the Black Scholes option pricing model. Compensation expense for employee and director awards is recognized over the requisite service period, which is generally the vesting period of the award. Compensation expense for non-employee awards is recognized in the same manner as if the Company had paid cash in exchange for the goods or services, which is generally the vesting period of the award. The Company uses the straight-line method to record the expense of awards with only service-based vesting conditions. The Company has elected to account for forfeitures as they occur. The Company has not issued any share-based awards with performance-based vesting conditions that are within the control of the Company and that may be considered probable prior to occurrence or with market-based vesting conditions. The Company classifies share-based compensation expense in its consolidated statements of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. Preferred Share Tranche Right Liability The subscription agreements for the Company’s Class B convertible preferred shares (see Note 9) and its Irish subsidiary’s Class B preferred exchangeable shares (see Note 9) provided investors the right, or obligated investors, to participate in subsequent offerings of Class B convertible preferred shares or Class B preferred exchangeable shares together with Class B special voting shares in the event that specified development or regulatory milestones were achieved (the “Class B preferred share tranche right liability”). The Company classified these preferred share tranche rights as a liability on its consolidated balance sheets as each preferred share tranche right was a freestanding financial instrument that may have required the Company to transfer assets upon the achievement of specified milestone events. Each preferred share tranche right liability was initially recorded at fair value upon the date of issuance of each preferred share tranche right and was subsequently remeasured to fair value at each reporting date. Changes in the fair value of the preferred share tranche right liability were recognized as a component of other income (expense) in the consolidated statement of operations and comprehensive loss. Changes in the fair value of the preferred share tranche right liability were recognized until the respective preferred share tranche right was settled upon achievement of the specified milestones or it expired. On May 15, 2020, the Company achieved the specified regulatory milestone associated with the Class B preferred share tranche right (see Note 9), which triggered the requirement of the Class B shareholders to participate in the Milestone Financing. Upon closing of the Milestone Financing on June 2, 2020, the Company issued and sold 36,806,039 Class B preferred shares at a price of $1.5154 per share and 4,437,189 Class B special voting shares at a price of $0.000001 per share and the Company’s Irish subsidiary issued and sold 4,437,189 Class B preferred exchangeable shares at a price of $1.5154 per share, for aggregate gross proceeds of $62.5 million. The Class B preferred share tranche right liability (see Note 9) was settled in connection with the achievement of the regulatory milestone associated with the Class B preferred share tranche right. Specifically, the fair value of the Class B preferred share tranche right liability was remeasured for the last time as of the Milestone Financing closing date, resulting in the Company recognizing a loss in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2020 of $32.7 million for the change in the fair value of the tranche right liability between December 31, 2019 and June 2, 2020. Immediately thereafter, the balance of the Class B preferred share tranche right liability of $39.6 million was reclassified to Class B convertible preferred shares in an amount of $35.3 million and to non-controlling interest in the Company’s Irish subsidiary in an amount of $4.3 million on the consolidated balance sheet. Preferred Share Warrant Liability The Company classified warrants to purchase its convertible preferred shares and warrants to purchase preferred exchangeable shares of Upon the closing of the IPO, the warrants to purchase its convertible preferred shares and warrants to purchase preferred exchangeable shares of the Company’s Irish subsidiary were converted into warrants |
Collaboration Agreement
Collaboration Agreement | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaboration Agreement | 3 . Collaboration Agreement Strategic Collaboration Agreement with AstraZeneca UK Limited On October 30, 2020, the Company and AstraZeneca entered into the AstraZeneca Agreement pursuant to which the Company and AstraZeneca will work to jointly discover, develop and commercialize next-generation alpha-emitting radiopharmaceuticals and combination therapies for the treatment of cancer globally by leveraging the Company’s Targeted Alpha Therapies, or TATs, platform and expertise in radiopharmaceuticals with AstraZeneca’s leading portfolio of antibodies and cancer therapeutics, including DNA damage response inhibitors, or DDRis. Each party retains full ownership over its existing assets. The AstraZeneca Agreement consists of two distinct collaboration programs: novel TATs and combination therapies. Under the AstraZeneca Agreement, the parties may develop up to three novel TATs (the “Novel TATs Collaboration”). The parties will also evaluate up to five potential combination strategies involving the Company’s existing assets, including the Company’s lead candidate FPI-1434, in combination with certain of AstraZeneca’s existing therapeutics for the treatment of various cancers (the “Combination Therapies Collaboration”). The AstraZeneca Agreement expires on a TAT-by-TAT and combination-by-combination basis upon the later of the expiration of development and exclusivity obligations relating to such TAT or combination or, if such TAT or combination is commercialized as a product under the AstraZeneca Agreement, the expiration of the commercial life of such product. The Company and AstraZeneca can each terminate the AstraZeneca Agreement for the other party’s uncured material breach following the applicable notice period. Each of the Company and AstraZeneca may also terminate the AstraZeneca Agreement with respect to any TAT or combination product if such party determines that the continued development of such TAT or combination product is not commercially viable, or for a material safety issue with respect to such TAT or combination product. Novel TATs Collaboration As part of the Novel TATs Collaboration, the parties may develop up to three novel TATs. The Company and AstraZeneca will share development costs equally (with each party responsible for the cost of its own supply in connection with such development). Either party has the right to opt out of the co-development and co-commercialization arrangement at pre-determined timepoints and obtain exclusive rights to a novel TAT in exchange for milestone payments to the other party of up to $145.0 million per novel TAT and a low or high single-digit royalties on future sales (depending on the opt out time point). If neither party opts out, and unless otherwise agreed by the parties, AstraZeneca will lead worldwide commercialization activities for the novel TATs, subject to the Company’s option to co-promote the TATs in the U.S. All profits and losses resulting from such commercialization activities will be shared equally. In January 2022, the Company announced the nomination of the first novel TAT candidate under the Novel TATs Collaboration, a bispecific antibody owned by AstraZeneca radiolabeled with 225 The Novel TATs Collaboration is within the scope of ASC 808 as the Company and AstraZeneca are both active participants in the research and development activities and are exposed to significant risks and rewards that are dependent on commercial success of the activities of the arrangement. The research and development activities are a unit of account under the scope of ASC 808 and are not promises to a customer under the scope of ASC 606. The Company records its portion of the research and development expenses as the related expenses are incurred. All payments received or amounts due from AstraZeneca for reimbursement of shared costs are accounted for as an offset to research and development expense. For the year ended December 31, 2021, the Company incurred $3.1 million in gross research and development expenses relating to the Novel TATs Collaboration which was offset by $1.6 million in amounts due from AstraZeneca for reimbursement of shared costs. As of December 31, 2021 , the Company recorded $ 1.4 million due from AstraZeneca for reimbursement of shared costs in prepaid expenses and other current assets. Combination Therapies Collaboration As part of the Combination Therapies Collaboration, the parties will evaluate up to five potential combination strategies involving the Company’s existing assets, including the Company’s lead candidate FPI-1434, in combination with certain of AstraZeneca’s existing therapeutics for the treatment of various cancers. The Company received an upfront payment of $5.0 million from AstraZeneca in December 2020 associated with the Combination Therapies Collaboration. AstraZeneca will fully fund all research and development activities for the combination strategies, until such point as the Company may opt-in to the clinical development activities. The Company also has the right to opt-out of clinical development activities relating to these combination therapies. In such instance, the Company will be responsible for repaying its share of the development costs via a royalty on the additional combination sales only if its drug is approved on the basis of clinical development solely conducted by AstraZeneca, in which case the royalty payments shall also include a variable risk premium based on the number of the Company’s product candidates to have received regulatory approval at that time. Each party will have the sole right, on a country-by-country basis, to commercialize its respective contributed compound as a component of any combination therapy for which such party’s contributed compound may be commercialized under a separate marketing authorization from the other party’s contributed compound to such combination therapy. The parties will negotiate in good faith on a combination therapy-by-combination therapy basis the terms and conditions to co-commercialize any combination therapy that is to be commercialized under a single marketing authorization. During the period of time commencing with the inclusion of an available molecular target in the selection pool for development as a combination therapy and ending upon the end of the nomination period or earlier removal of such combination target from such pool, the Company will not undertake any preclinical or clinical studies combining the Company’s TAT platform with any compound modulating the activity of such combination target. Following selection of a target under the AstraZeneca Agreement and payment of an exclusivity fee by AstraZeneca, and provided that AstraZeneca enrolls its first patient in a clinical trial as further defined in the AstraZeneca Agreement within a pre-defined period of time of such selection, the Company will not undertake any preclinical or clinical studies combining the Company’s TAT platform with compounds modulating the same combination target for the duration of the evaluation period for such combination target, as further defined in the AstraZeneca Agreement. Within a certain time period following initiation of the evaluation period with respect to a combination target, AstraZeneca has the exclusive right to undertake, alone or in collaboration with the Company, all further clinical or preclinical combination studies with respect to a combination target by paying certain exclusivity fees. The Company is eligible to receive future payments of up to $40.0 million, including those for the achievement of certain clinical milestones and exclusivity fees. The Company determined the research and development activities associated with the Combination Therapies Collaboration are a key component of its central operations and AstraZeneca has contracted with the Company to obtain goods and services which are an output of the Company’s ordinary activities in exchange for consideration. Further, the Company does not share the risks and rewards of the underlying research activities making AstraZeneca a customer for the Combination Therapies Collaboration which falls within the scope of ASC 606. To determine the appropriate amount of revenue to be recognized under ASC 606, the Company performed the following steps: (i) identify the promised goods or services in the contract, (ii) determine whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract, (iii) measure the transaction price, including the constraint on variable consideration, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when (or as) the Company satisfies each performance obligation. Under ASC 606 the Company accounts for (i) the license it conveyed to AstraZeneca with respect to certain intellectual property and (ii) the obligations to perform research and development services as part of the Combination Therapies Collaboration as a single performance obligation under the AstraZeneca Agreement. The Company concluded AstraZeneca’s right to purchase exclusive options to obtain certain development, manufacturing and commercialization rights represent customer options that are not performance obligations as they do not contain any discounts or other rights that would be considered a material right in the arrangement. Such options will be accounted for upon AstraZeneca’s election. The Company determined the transaction price under ASC 606 at the inception of the AstraZeneca Agreement to be the $5.0 million upfront payment. The cost reimbursement payments for all costs incurred by the Company under the Combination Therapies Collaboration represent variable consideration that is not constrained. Additionally, the clinical milestone payments represent variable consideration that is constrained . In making this assessment, the Company considered several factors, including the fact that achievement of the milestones are outside its control and contingent upon the future success of clinical trials and AstraZeneca’s actions. The payments related to the achievement of certain clinical milestones do not relate to separate, distinct performance obligations. Under ASC 606, the Company recognizes revenue using the cost-to-cost method, which it believes best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Under this method, revenue is recorded as a percentage of the estimated transaction price based on the extent of progress towards completion. Under ASC 606, the estimated transaction price includes variable consideration that is not constrained. The Company does not include variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when any uncertainty associated with the variable consideration is resolved. The estimate of the Company’s measurement of progress and estimate of variable consideration to be included in the transaction price will be updated at each reporting date as a change in estimate. For the clinical milestone payments, the Company utilizes the most likely amount method to determine the amounts recognized and timing of recognition. Once the constraint is removed, the clinical milestone payments will be accounted for with the research and development services for the purposes of revenue recognition which will occur over time as the services are provided. Upon the achievement of any milestone for specified clinical development events, the Company will utilize the same cost-to-cost model with a cumulative catch-up recognized in the period in which any such event occurs. The Company will re-evaluate the transaction price at the end of each reporting period and as uncertain events are resolved, or other changes in circumstances occur, adjust its estimate of the transaction price if necessary. As of December 31, 2020, the Company recorded the upfront fee as a contract liability for deferred revenue in its consolidated balance sheet as it had yet to provide any services under the AstraZeneca Agreement. The following table presents changes in the Company’s accounts receivable and contract liabilities for the year ended December 31, 2021 (in thousands): Balance as of Balance as of December 31, 2020 Additions Deductions December 31, 2021 Accounts receivable $ — $ 478 $ (121 ) $ 357 Contract liabilities: Deferred revenue $ 5,000 $ — $ (962 ) $ 4,038 During the years ended December 31, 2021 and 2020, the Company recognized the following revenue (in thousands): Year Ended December 31, 2021 2020 Revenue recognized in the period from: Amounts included in deferred revenue at the beginning of the period $ 962 $ — The current portion of deferred revenue and deferred revenue, net of current portion, are $1.5 million and $2.5 million as of December 31, 2021, respectively, which reflects the Company’s estimate of the revenue it expects to recognize within the next 12 months and beyond 12 months, respectively. The Company expects to recognize the revenue associated with the AstraZeneca Agreement in subsequent periods through the year ending December 31, 2024. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4 . Fair Value Measurements The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level of the fair value hierarchy used to determine such fair values (in thousands): Fair Value Measurements at December 31, 2021 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 11,490 $ — $ — $ 11,490 Investments: Commercial paper — 19,041 — 19,041 Corporate bonds — 21,941 — 21,941 Municipal bonds — 14,866 — 14,866 Canadian Government agency debt securities — 3,320 — 3,320 U.S. Government agency debt securities — 108,716 — 108,716 $ 11,490 $ 167,884 $ — $ 179,374 Fair Value Measurements at December 31, 2020 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 19,277 $ — $ — $ 19,277 Commercial paper — 1,000 — 1,000 Corporate bonds — 950 — 950 Canadian Government agency debt securities — 2,347 — 2,347 Investments: Commercial paper — 34,471 — 34,471 Corporate bonds — 26,857 — 26,857 Municipal bonds — 1,090 — 1,090 Canadian Government agency debt securities — 9,457 — 9,457 U.S. Government agency debt securities — 137,089 — 137,089 $ 19,277 $ 213,261 $ — $ 232,538 During the years ended December 31, 2021 and 2020, there were no transfers between Level 1, Level 2 and Level 3. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 5 . Investments Investments consisted of the following (in thousands): December 31, 2021 Amortized Cost Fair Value Due within one year or less $ 147,945 $ 147,897 Due after one year through three years 20,054 19,987 $ 167,999 $ 167,884 December 31, 2020 Amortized Cost Fair Value Due within one year or less $ 131,857 $ 131,882 Due after one year through three years 77,063 77,082 $ 208,920 $ 208,964 As of December 31, 2021, the amortized cost and estimated fair value of investments, by contractual maturity, was as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Current Non- Current Commercial paper $ 19,041 $ 1 $ (1 ) $ 19,041 $ 19,041 $ — Corporate bonds 21,929 32 (20 ) 21,941 17,444 4,497 Municipal bonds 14,878 — (12 ) 14,866 14,866 — Canadian Government agency debt securities 3,287 33 — 3,320 3,320 — U.S. Government agency debt securities 108,864 — (148 ) 108,716 93,226 15,490 $ 167,999 $ 66 $ (181 ) $ 167,884 $ 147,897 $ 19,987 As of December 31, 2020, the amortized cost and estimated fair value of investments, by contractual maturity, was as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Current Non- Current Commercial paper $ 34,474 $ 1 $ (4 ) $ 34,471 $ 34,471 $ — Corporate bonds 26,855 22 (20 ) 26,857 9,446 17,411 Municipal bonds 1,090 — — 1,090 1,090 — Canadian Government agency debt securities 9,405 52 — 9,457 6,154 3,303 U.S. Government agency debt securities 137,096 8 (15 ) 137,089 80,721 56,368 $ 208,920 $ 83 $ (39 ) $ 208,964 $ 131,882 $ 77,082 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid Expense and Other Assets Current | 6 . Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2021 2020 Prepaid external research and development expenses $ 5,030 $ 1,606 Prepaid insurance 2,144 2,067 Prepaid software subscriptions 302 146 Income tax receivable 308 — Interest receivable 350 504 Other receivable due from AstraZeneca 1,396 — Canadian harmonized sales tax receivable 178 290 Other 233 727 $ 9,941 $ 5,340 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 7 . Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): December 31, 2021 2020 Laboratory equipment $ 3,327 $ 1,764 Computer hardware and software 171 218 Furniture and fixtures 70 70 Construction-in-progress 704 662 4,272 2,714 Less: Accumulated depreciation (1,305 ) (747 ) $ 2,967 $ 1,967 Depreciation and amortization expense related to property and equipment was $0.6 million and $0.5 million for the years ended December 31, 2021 and 2020, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 8 . Accrued Expenses Accrued expenses consisted of the following (in thousands): December 31, 2021 2020 Accrued employee compensation and benefits $ 3,301 $ 2,551 Accrued external research and development expenses 3,635 1,037 Accrued professional and consulting fees 627 1,023 Other — 48 $ 7,563 $ 4,659 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity | 9 . Equity Common Shares On June 19, 2020, the Company effected a one-for-5.339 On June 30, 2020, the Company closed its IPO of common shares and issued and sold 12,500,000 shares of common shares at a public offering price of $17.00 per share, resulting in net proceeds of approximately $193.1 million after deducting underwriting fees and offering costs. Upon the closing of the IPO, all outstanding voting and non-voting common shares were converted to a single class of common shares authorized by the Company’s articles of the corporation, as amended and restated. On July 2, 2021, the Company entered into an Open Market Sales Agreement SM As of December 31, 2021, the Company’s articles of the corporation, as amended and restated, authorized the Company to issue unlimited common shares, each with no Each common share entitles the holder to one vote on all matters submitted to a vote of the Company’s shareholders. Common shareholders are entitled to receive dividends, if any, as may be declared by the board of directors. Through December 31, 2021, no cash dividends had been declared or paid by the Company. Convertible Preferred Shares Prior to the IPO, the Company issued Class A convertible preferred shares (the “Class A preferred shares”) and Class B convertible preferred shares (the “Class B preferred shares” and, together with the Class A preferred shares, the “Preferred Shares”). In March 2019, the Company completed its first closing of its Class B preferred shares and issued and sold 30,207,129 Class B preferred shares at a price of $1.5154 per share for gross proceeds of $45.8 million (the “2019 Preferred Share Financing”). In January 2020, the Company executed the First Amendment to the Class B Subscription Agreement (“Amended Class B Subscription Agreement”) whereby the Canada Pension Plan Investment Board (“CPP”) agreed to purchase an aggregate of $20.0 million of Class B preferred shares, at a price of $1.5154 per share, in two tranches. In January 2020, the Company issued and sold to CPP 6,598,917 Class B preferred shares, resulting in gross proceeds of $10.0 million (the “Additional Class B Closing”). The Company incurred issuance costs of $0.1 million in connection with this transaction. The rights and preferences of the Class B preferred shares sold under the Additional Class B Closing were the same as the rights and preferences of the Class B preferred shares issued and sold by the Company in March 2019. Accordingly, under the terms of the Amended Class B Subscription Agreement, upon the earlier occurrence of a specified development or specified regulatory milestone, CPP was obligated to purchase an additional 6,598,917 Class B preferred shares at a price of $1.5154 per share. The Company concluded that these rights or obligations of CPP to participate in the Milestone Financing of Class B preferred shares met the definition of a freestanding financial instrument that was required to be recorded as a liability at fair value as (i) the instruments are legally detachable and separately exercisable from the Class B preferred shares and (ii) the rights will require the Company to transfer assets upon future closings of the Class B preferred shares. Upon the Additional Class B Closing in January 2020, the Company recorded an additional liability for the preferred share tranche right of $1.1 million and a corresponding reduction to the carrying value of the Class B preferred shares. In May 2020, the Company achieved the specified regulatory milestone associated with the Class B preferred share tranche right, which triggered the requirement of the Class B shareholders to participate in the Milestone Financing. Upon closing of the Milestone Financing on June 2, 2020, the Company issued and sold 36,806,039 Class B preferred shares at a price of $1.5154 per share for aggregate proceeds of $55.8 million. The Class B preferred share tranche right liability was settled in connection with the achievement of the regulatory milestone associated with the Class B preferred share tranche right. Specifically, the fair value of the Class B preferred share tranche right liability was remeasured for the last time as of the Milestone Financing closing date, resulting in the Company recognizing a loss in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2020 of $32.7 million for the change in the fair value of the tranche right liability between December 31, 2019 and June 2, 2020. Immediately thereafter, the balance of the Class B preferred share tranche right liability of $39.6 million was reclassified to Class B convertible preferred shares in an amount of $35.3 million and to non-controlling interest in Fusion Pharmaceuticals (Ireland) Limited in an amount of $4.3 million on the consolidated balance sheet. Upon the closing of the IPO, the Company converted the then outstanding Class A and Class B preferred shares into common shares at a conversion ratio of 5.339 Preferred Share to one common share. Preferred Exchangeable Shares and Special Voting Shares In connection with each issuance and sale of its Class A preferred shares and Class B preferred shares, the Company’s Irish subsidiary issued and sold Class A and Class B preferred exchangeable shares (together, the “Preferred Exchangeable Shares”) to investors. Simultaneously with the issuance and sale of the Preferred Exchangeable Shares, the Company issued and sold its Class A and Class B special voting shares (together, the “Special Voting Shares”) to the same investors. Prior to the IPO, the Company’s Irish subsidiary’s amended constitution authorized it to issue an aggregate of 28,874,378 Preferred Exchangeable Shares and 29,747,987 Preferred Exchangeable Shares, respectively, with a par value of $0.001 per share. Prior to the IPO, the Company’s articles of the corporation, as amended and restated, authorized the Company to issue an aggregate of 28,874,378 Special Voting Shares and 29,747,987 Special Voting Shares, respectively, with a cash redemption value of $ 0.000001 per share. In March 2019, in connection with the first closing of Class B preferred shares, as described above, the Company’s Irish subsidiary issued and sold 4,437,189 Class B preferred exchangeable shares at a price of $1.5154 per share and the Company issued and sold 4,437,189 Class B special voting shares at a price of $0.000001 per share for aggregate gross proceeds of $6.7 million (the “2019 Preferred Exchangeable Share Financing”). In May 2020, the Company achieved the specified regulatory milestone associated with the Class B preferred share tranche right, which triggered the requirement of the Class B shareholders to participate in the Milestone Financing. Upon closing of the Milestone Financing on June 2, 2020, the Company issued and sold 4,437,189 Class B special voting shares at a price of $0.000001 per share and the Company’s Irish subsidiary issued and sold 4,437,189 Class B preferred exchangeable shares at a price of $1.5154 per share, for aggregate gross proceeds of $6.7 million. Upon the closing of the IPO, the Company converted all of the outstanding Class A and Class B preferred exchangeable shares and Special Voting Shares into Class A and Class B preferred shares on a one-for-one basis then converted the Class A and Class B preferred shares into common shares at a conversion ratio of 5.339 Preferred Share to one common share. Warrants In January 2020, in conjunction with the Company’s execution of the Amended Class B Subscription Agreement, the Company issued to the existing holders of Class B convertible preferred shares (excluding the investor in the Additional Class B Closing in January 2020) warrants to purchase 3,126,391 Class B convertible preferred shares, at an exercise price of $1.5154 per share, and Fusion Pharmaceuticals (Ireland) Limited issued to the existing holders of Class B preferred exchangeable shares warrants to purchase 873,609 Class B preferred exchangeable shares, at an exercise price of $1.5154 per share (collectively the “Preferred Share Warrants”). If the warrants to purchase Class B preferred exchangeable shares are exercised, at that same time, the shareholder is obligated to purchase from the Company an equal number of Class B special voting shares at a price of $0.000001 per share. The Preferred Share Warrants were issued for no consideration, and the specified exercise prices of each warrant are subject to adjustment for share dividends, share splits, combination or other similar recapitalization transactions as provided under the terms of the warrants. The Preferred Share Warrants were immediately exercisable and expire two years from the date of issuance or upon the earlier occurrence of specified qualifying events, which include the consummation of a Deemed Liquidation Event and the closing of a qualifying share sale (as defined in the articles of the corporation, as amended and restated). Upon the closing of a qualified public offering, on specified terms, all outstanding warrants to purchase Class B convertible preferred shares of the Company and warrants to purchase Class B preferred exchangeable shares of Fusion Pharmaceuticals (Ireland) Limited will become warrants to purchase common shares of the Company. Upon issuance of the Preferred Share Warrants in January 2020, the Company recorded on its consolidated balance sheet a preferred share warrant liability of $1.4 million, equal to the issuance-date fair value of the Preferred Share Warrants, as well as a corresponding decrease of $1.3 million to additional paid-in capital, reducing that to zero, and an increase of $0.1 million to accumulated deficit for the remainder. The issuance of the Preferred Share Warrants was treated as a deemed dividend to existing preferred shareholders for purposes of the Company’s calculation of net loss per share attributable to common shareholders, and, as such, the aggregate value of the dividend to existing preferred shareholders was deducted from the Company’s net loss when computing net loss per share attributable to common shareholders (see Note 13). The Company remeasures the fair value of the liability associated with the Preferred Share Warrants at each reporting date and records any adjustments as a component of other income (expense) in the consolidated statements of operations and comprehensive loss. Upon the closing of the IPO, the warrants to purchase 3,126,391 of its convertible preferred shares and warrants to purchase 873,609 preferred exchangeable shares of the Company’s Irish subsidiary were converted into warrants to purchase 749,197 shares of the Company’s common shares at an exercise price of $8.10 per share. As a result, the warrant liability was remeasured a final time on the closing date of the IPO and reclassified to shareholders’ equity (deficit) as the warrants qualify for equity classification. For the year ended December 31, 2020, the Company recognized a loss of $6.4 million as a component of other income (expense) in the consolidated statement of operations and comprehensive loss to reflect an increase in fair value of the Preferred Share Warrant. On August 17, 2020, a holder of common share warrants exercised 97,381 common share warrants through a cashless exercise and the Company issued 38,340 common shares with the remaining 59,041 warrants being cancelled to settle the exercise price. As of December 31, 2021 , 651,816 common share warrants remained outstanding. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 1 0 . Share-based Compensation 2020 Stock Option and Incentive Plan On June 18, 2020, the Company’s board of directors adopted the 2020 Stock Option and Incentive Plan (the “2020 Plan”), which became effective on June 24, 2020. The 2020 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards, cash-based awards and dividend equivalent rights to the Company’s officers, employees, non-employee directors and consultants. The number of shares initially reserved for issuance under the 2020 Plan was 4,273,350, which was cumulatively increased on January 1, 2021 and shall be cumulatively increased each January 1 thereafter by 4% of the number of the Company’s common shares outstanding on the immediately preceding December 31 or such lesser number of shares determined by the Company’s compensation committee of the board of directors. The common shares underlying any awards that are forfeited, cancelled, held back upon exercise or settlement of an award to satisfy the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without the issuance of shares, expire or are otherwise terminated (other than by exercise) under the 2020 Plan and the 2017 Plan will be added back to the common shares available for issuance under the 2020 Plan. The total number of common shares reserved for issuance under the 2020 Plan was 6,156,825 shares as of December 31, 2021. As of December 31, 2021, 2,479,682 shares, remained available for future grant under the 2020 Plan. Shares that are expired, forfeited, canceled or otherwise terminated without having been fully exercised will be available for future grant under the 2020 Plan. 2017 Equity Incentive Plan The Company’s 2017 Equity Incentive Plan (the “2017 Plan”) provides for the Company to grant incentive stock options or nonqualified stock options, restricted share awards and restricted share units to employees, officers, directors and non-employee consultants of the Company. As of December 31, 2021 and 2020, no shares remained available for future grant under the 2017 Plan. Shares that are expired, forfeited, canceled or otherwise terminated without having been fully exercised will be available for future grant under the 2020 Plan. 2020 Employee Share Purchase Plan On June 18, 2020, the Company’s board of directors adopted the 2020 Employee Share Purchase Plan (the “ESPP”), which became effective on June 24, 2020. A total of 450,169 common shares were reserved for issuance under this plan. In addition, the number of common shares that may be issued under the ESPP was automatically increased on January 1, 2021 and shall be automatically increased each January 1 thereafter by the lesser of (i) 900,338 common shares, (ii) 1% of the number of the Company’s common shares outstanding on the immediately preceding December 31 and (iii) such lesser number of shares as determined by the Company’s compensation committee of the board of directors. As of December 31, 2021, 15,596 shares were issued under the ESPP. The total number of common shares reserved for issuance under the ESPP was 867,427 shares as of December 31, 2021. Stock Option Valuation The fair value of stock option grants is estimated using the Black-Scholes option-pricing model. The Company historically has been a private company and lacks company-specific historical and implied volatility information. Therefore, it estimates its expected share volatility based on the historical volatility of a publicly traded set of peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded share price. For options with service-based vesting conditions, the expected term of the Company’s stock options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The expected term of stock options granted to non-employee consultants is equal to the contractual term of the option award. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. The following table presents, on a weighted-average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted: Year Ended December 31, 2021 2020 Risk-free interest rate 0.91 % 0.66 % Expected term (in years) 6.1 6.0 Expected volatility 66.7 % 65.5 % Expected dividend yield 0 % 0 % Stock Options The following table summarizes the Company’s stock option activity since December 31, 2020: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Outstanding as of December 31, 2020 5,607,244 $ 6.45 8.2 $ 36,628 Granted 3,196,400 9.79 Exercised (418,975 ) 1.19 Forfeited/cancelled (338,963 ) 11.40 Outstanding as of December 31, 2021 8,045,706 $ 7.84 8.2 $ 6,597 Vested and expected to vest as of December 31, 2021 7,909,106 $ 7.77 8.2 $ 6,597 Options exercisable as of December 31, 2021 3,133,096 $ 4.87 7.0 $ 5,470 Included in the table above are 1,018,800 options outstanding as of December 31, 2021 that were granted outside of either the 2020 Plan or the 2017 Plan. The grants were made pursuant to the NASDAQ inducement grant exception in accordance with NASDAQ Listing Rule 5635(c)(4). The aggregate intrinsic value of options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common shares for those options that had exercise prices lower than the fair value of the Company’s common shares. The intrinsic value for stock options exercised during the years ended December 31, 2021 and 2020 was $3.4 million and $0.2 million, respectively. The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2021 and 2020 was $5.87 and $6.91 per share, respectively. Share-based Compensation Share-based compensation expense was classified in the consolidated statements of operations and comprehensive loss as follows (in thousands): Year Ended December 31, 2021 2020 Research and development expenses $ 2,735 $ 908 General and administrative expenses 5,868 2,460 $ 8,603 $ 3,368 As of December 31, 2021, total unrecognized share-based compensation expense related to unvested share-based awards was $24.6 million, which is expected to be recognized over a weighted-average period of 2.7 years. Additionally, as of December 31, 2021, the Company has unrecognized share-based compensation expense of $1.0 million related to unvested stock options with performance-based vesting conditions for which performance has not been deemed probable. |
License Agreements and Asset Ac
License Agreements and Asset Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
License Agreement [Abstract] | |
License Agreements and Asset Acquisitions | 1 1 . License Agreements and Asset Acquisitions License Agreement with the Centre for Probe Development and Commercialization Inc. In November 2015, the Company entered into a license agreement with the Centre for Probe Development and Commercialization Inc. (“CPDC”), a related party (see Note 17) (the “CPDC Agreement”). Under the agreement, the Company was granted an exclusive, sublicensable, nontransferable, worldwide license under CPDC’s patent rights related to CPDC’s radiopharmaceutical linker technology to develop, market, make, use and sell certain products for all disease indications and uses in humans, whether diagnostic or therapeutic. The Company has the right to grant sublicenses of its rights. The CPDC Agreement was amended in 2017; however, there were no material changes to the terms of the CPDC Agreement. Also in 2017, the Company entered into a second license agreement with CPDC, under which the Company was granted an exclusive, sublicensable, worldwide license under CPDC’s patent rights related to certain CPDC radiopharmaceutical linker technology to develop, market, make, use and sell certain products for all disease indications and uses in humans. The Company has the right to grant sublicenses of its rights. The Company has no obligations under any of the agreements with CPDC to make any milestone payments or to pay any royalties or annual maintenance fees to CPDC. During the years ended December 31, 2021 and 2020, the Company did not make any payments to CPDC or recognize any research and development expenses under the license agreements with CPDC. License Agreement with ImmunoGen, Inc. In December 2016, the Company entered into a license agreement with ImmunoGen, Inc. (“ImmunoGen”) (the “ImmunoGen Agreement”). Under the agreement, the Company was granted an exclusive, sublicensable, worldwide license under ImmunoGen’s patent rights to use, develop, manufacture and commercialize any radiopharmaceutical conjugate that includes a certain compound and any resulting commercialized products. The Company has the right to grant sublicenses of its rights. Under the ImmunoGen Agreement, the Company paid an upfront fee of $0.2 million to ImmunoGen. In addition, the Company is obligated to make aggregate milestone payments to ImmunoGen of up to $15.0 million upon the achievement of specified development and regulatory milestones and of up to $35.0 million upon the achievement of specified sales milestones. The Company is also obligated to pay tiered royalties of a low to mid single-digit percentage based on annual net sales by the Company and any of its affiliates and sublicensees. Royalties will be paid by the Company on a country-by-country basis beginning upon the first commercial sale in such country until ten years following the date of the first commercial sale in the United States and five years following the date of the first commercial sale in all non-U.S. countries. In addition, the Company is responsible for all costs and expenses incurred related to the development, manufacture, regulatory approval and commercialization of all licensed products. Prior to regulatory approval of a licensed product in any country, the Company has the right to terminate the agreement upon 90 days’ prior written notice to ImmunoGen. Upon receipt of its first regulatory approval of a licensed product in any country, the Company has the right to terminate the agreement upon 180 days’ prior written notice to ImmunoGen. If the Company or ImmunoGen fails to comply with any of its obligations or otherwise breaches the agreement, the other party may terminate the agreement. The ImmunoGen Agreement expires upon the expiration date of the last-to-expire royalty term. During the years ended December 31, 2021 and 2020, the Company did not make any payments to ImmunoGen or recognize any research and development expenses under the ImmunoGen Agreement. Asset Acquisition from and License Agreement with MediaPharma S.r.l. In May 2019, the Company and MediaPharma S.r.l. (“MediaPharma”) entered into an asset acquisition and license agreement. Under the agreement, the Company purchased all rights, title and interest to MediaPharma’s, and any of its affiliates’ and sublicensees’, patents to perform research and to develop, manufacture and commercialize a specified antibody that binds to targets for the prevention, treatment and diagnosis of all diseases and conditions. The Company accounted for this purchase as an asset acquisition. At the same time, the Company granted MediaPharma an exclusive, fully paid, worldwide, sublicensable license to use the specified compound for research, development, manufacturing and commercialization of a bispecific antibody drug conjugate, but not for use as a radiopharmaceutical. In connection with the asset acquisition, the Company paid an upfront fee of $0.2 million to MediaPharma. In addition, the Company is obligated to make aggregate milestone payments to MediaPharma of up to $1.5 million upon the achievement of specified development milestones and of up to $23.0 million upon the achievement of specified sales milestones. The Company is also obligated to pay royalties of a low single-digit percentage based on annual net sales by the Company. Royalties will be paid by the Company on a country-by-country basis beginning upon the first commercial sale in such country and will expire, on a country-by-country basis, upon the earlier of (i) eight years from the first commercial sale of a licensed product in such country, (ii) the date upon which all issued patents under the agreement have expired or (iii) the date upon which a product highly similar in composition to the licensed product and having no clinically meaningful differences is sold or marketed for sale in such country by a third party. The Company is not entitled to any payments from MediaPharma for use of the license to the specified compound granted to MediaPharma. During the years ended December 31, 2021 and 2020, the Company did not make any payments to MediaPharma or recognize any research and development expenses under the MediaPharma Agreement. Asset Acquisition from Rainier Therapeutics, Inc. and License Agreement with Genentech, Inc. On March 10, 2020 (the “Closing”), the Company and Rainier Therapeutics, Inc. (“Rainier”) entered into an asset acquisition agreement (the “Rainier Agreement”). Under the agreement, the Company purchased all rights, title and interest to Rainier’s, and any of its affiliates’ and sublicensees’, patents and other tangible and intangible assets to perform research and to develop, manufacture and commercialize a specified compound of antibody molecules that bind to targets for the prevention, treatment and diagnosis of all diseases and conditions only using such compound as an antibody drug conjugate. The Company concluded to account 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, the license rights. In connection with the asset acquisition, the Company paid an upfront fee of $1.0 million to Rainier and recognized this amount as research and development expense in the consolidated statement of operations and comprehensive loss during the year ended December 31, 2020, as the IPR&D acquired had no alternative future use as of the acquisition date. Unless the Rainier Agreement was terminated pursuant to its terms, which termination initially could not have occurred later than eight months following the Closing (the “Outside Date”), the Company was obligated to pay Rainier an additional amount of $3.5 million and to issue 313,359 of the Company’s common shares on the Outside Date. Since the Rainier Agreement was not terminated by the Outside Date, as further described below, the Company is also obligated to make aggregate milestone payments to Rainier of up to $22.5 million and to issue up to 156,679 of the Company’s common shares upon the achievement of specified development and regulatory milestones, of which a $2.0 million milestone payment and the issuance of 156,679 common shares are due upon the first patient dosed in a Phase 1 study of FPI-1966, and of up to $42.0 million upon the achievement of specified sales milestones. In the event the Company enters into a transaction with a non-affiliated party relating to the license or sale of substantially all the Company’s rights to develop the specified compound of antibody molecules, the Company will be obligated to pay Rainier a specified percentage of the revenue from such transaction, in an amount ranging from 10% to 30%, based on how long after the Closing the transaction takes place. The Rainier Agreement could have been terminated at any time prior to the Outside Date upon 30 days’ notice by the Company to Rainier or upon the mutual written consent of both parties. On October 8, 2020, the Company and Rainier entered into a first amendment to the Rainier Agreement (the “First Amended Rainier Agreement”) to extend certain terms of the Rainier Agreement. Specifically, the Outside Date, was amended such that termination may not occur later than eleven months following the Closing, or February 10, 2021 (the “Revised Outside Date”). On February 8, 2021, the Company and Rainier entered into a second amendment to the First Amended Rainier Agreement, as amended (the “Second Amended Rainier Agreement”). Pursuant to the Second Amended Rainier Agreement, the Outside Date was further amended such that termination may not occur later than July 1, 2021, and such amendment was made in consideration for early payment of the additional $3.5 million owed to Rainier which the Company paid and recorded as research and development expense during the year ended December 31, 2021. On May 26, 2021, the Company notified Rainier of its intent to continue development of the asset and issued 313,359 of its common shares to Rainier on July 1, 2021. During the year ended December 31, 2021, the Company recognized $6.1 million of research and development expense associated with the payment of $3.5 million and the issuance of 313,359 of its common shares as noted above. During the year ended December 31, 2020 , the Company paid an upfront fee of $ 1.0 million to Rainier and recognized this as an expense as noted above. In connection with the Rainier Agreement, in March 2020, the Company was assigned all of Rainier’s rights and obligations under an exclusive license agreement between BioClin Therapeutics, Inc. and Genentech, Inc. (“Genentech”) (the “Genentech License Agreement”). Pursuant to the Genentech License Agreement, the Company has an exclusive, worldwide, sublicensable license to make, use, research, develop, sell and import certain intellectual property and technology of Genentech relating to a specified antibody and any mutant antibody thereof (the “Licensed Antibodies”), including any products that contain a Licensed Antibody as an active ingredient (the “Products”), for all human uses. Pursuant to the Genentech License Agreement, the Company is obligated to use commercially reasonable efforts to develop and commercialize at least one Product and the Company is solely responsible for the costs associated with the development, manufacturing, regulatory approval and commercialization of any Products. The manufacture of the antibody by any third-party contract manufacturing organization must be approved in advance by Genentech. Additionally, Genentech retains the right to use the Licensed Antibodies solely to research and develop molecules other than the Licensed Antibodies. Under Genentech License Agreement, the Company is obligated to make aggregate milestone payments to Genentech of up to $44.0 million upon the achievement of specified sales milestones. The Company is also obligated to pay to Genentech tiered royalties of a mid to high single-digit percentage based on annual net sales by the Company, and any of its affiliates and sublicensees, for the specified compound of antibody molecules and of a mid to high single-digit percentage based on annual net sales by the Company, and any of its affiliates and sublicensees, for any other compound containing mutant antibody molecules of the specified compound. In addition, the Company is obligated to pay to Genentech royalties of a low single-digit percentage based on quarterly net sales in any country in which the specified compound is not covered by a valid patent claim, and those sales will not be subject to the tiered royalties described above. All royalties may be reduced if the Company obtains a license under a third-party patent that includes the specified compound. Royalties will be paid by the Company on a country-by-country basis beginning upon the first commercial sale in such country until the later of (i) ten years following the date of the first commercial sale of a Product or (ii) the date the specified compound is no longer covered by an enforceable patent. Upon the expiration of the royalty term, the Company will have a fully paid-up license. The Company has the right to terminate the Genentech License Agreement upon written notice to Genentech if the Company determines in its sole discretion that development or commercialization of Products is not economically or scientifically feasible or appropriate. In addition, if the Company or Genentech fails to comply with any of its obligations or otherwise breaches the agreement, the other party may terminate the agreement. The Genentech License Agreement expires on the date on which all obligations under the agreement related to milestone payments or royalties have passed or expired. During the years ended December 31, 2021 and 2020, the Company did not make any payments to Genentech or recognize any research and development expenses under the Genentech License Agreement. Collaboration Agreement and Supply Agreement with TRIUMF Innovations, Inc. On December 10, 2020, the Company entered into a Collaboration Agreement and Supply Agreement with TRIUMF Innovations Inc. and TRIUMF JV (collectively, “the TRIUMF entities”) for the development, production and supply of actinium-225 to the Company. Under the Collaboration Agreement as executed in December 2020, the Company is obligated to pay the TRIUMF entities an aggregate of $5.0 million CAD upon the achievement of certain milestones. The Collaboration Agreement contemplated that the parties would enter into an amendment thereto to expand the scope of the project and provide for additional milestone payments. As of December 31, 2021, the TRIUMF entities had achieved certain milestones under the Collaboration Agreement totaling $3.0 million CAD (equivalent to $2.3 million at the time of payment) which was paid during the year ended December 31, 2021 and are being recognized as research and development expense over the period of performance by the TRIUMF entities. During the year ended December 31, 2021, the Company recognized the amortization of $2.0 million as research and development expense under the Collaboration Agreement. As previously contemplated, on August 12, 2021, the parties amended the Collaboration Agreement in order to expand the scope of the project and the Company agreed to make an additional financial investment of up to $15.0 million CAD in connection with development of new process technology for the manufacture of actinium-225 upon the achievement of certain milestones under an amendment to the Collaboration Agreement (the “Amended Collaboration Agreement”). In connection with the Amended Collaboration Agreement, the parties have formed a company (“NewCo”) to hold certain intellectual property derived from the collaboration. NewCo is jointly owned and managed by the Company and the TRIUMF entities and its purpose is to manufacture actinium-225 for the research, clinical and commercial needs of the Company, and in certain circumstances, other third parties. The supply of actinium-225 by NewCo to the Company shall be done under a commercial supply agreement, to be negotiated by NewCo and the Company. The Company is expected to purchase at least 50 % of its annual actinium-225 requirements from NewCo, unless NewCo is unable to supply such necessary quantities to the Company, in which case the Company may use other actinium-225 suppliers to meet its commercial needs. As of December 31, 2021 , there were no assets held by NewCo. As of December 31, 2021, the TRIUMF entities had achieved certain milestones under the Amended Collaboration Agreement totaling $5.0 million CAD (equivalent to $3.9 million at the time of payment) which was paid during the year ended December 31, 2021 and is being recognized as research and development expense over the period of performance by the TRIUMF entities. During the year ended December 31, 2021, the Company recognized the amortization of $0.2 million as research and development expense under the Amended Collaboration Agreement. The Company recorded $1.7 million and $2.3 million of milestone payments in prepaid expenses and other current assets and other non-current assets, respectively, as of December 31, 2021 based on its estimate of costs to be incurred over the 12 months following the balance sheet date for both the Collaboration Agreement and the Amended Collaboration Agreement. Asset Acquisition from Ipsen Pharma SAS On March 1, 2021, the Company and Ipsen Pharma SAS (“Ipsen”) announced that the parties had entered into an asset purchase agreement (the “Ipsen Agreement”) whereby the Company agreed to acquire Ipsen’s intellectual property and assets related to IPN-1087, a small molecule targeting neurotensin receptor 1 (“NTSR1”), a protein expressed on multiple solid tumor types. The Company intends to combine its expertise and proprietary TAT platform with IPN-1087 to create an alpha-emitting radiopharmaceutical targeting solid tumors expressing NTSR1. The Company and Ipsen submitted a pre-merger notification and report form with the United States Federal Trade Commission and the Antitrust Division of the United States Department of Justice in accordance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”). The acquisition closed after completion of this antitrust review on April 1, 2021. The Company concluded to account 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, the license rights. Upon closing of the asset acquisition, the Company paid €0.6 million ($0.8 million at the date of payment) and issued an aggregate of 600,000 common shares to Ipsen under a share purchase agreement which was entered into concurrently with the Ipsen Agreement. Such common shares were issued pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The Company is also obligated to pay Ipsen up to an additional €67.5 million upon the achievement of certain development and regulatory milestones; low single digit royalties on potential future net sales; and up to €350.0 million in net sales milestones, in each case, relating to products covered by the asset purchase agreement. The Company is responsible for paying to a third-party licensor up to a total of €70.0 million in development milestones for up to three indications and mid to low double-digit royalties on potential future net sales of products covered by the license agreement. During the year ended December 31, 2021, the Company recognized $6.4 million of research and development expense associated with the issuance of 600,000 of its common shares upon closing pursuant to the Ipsen Agreement. Additionally, during the year ended December 31, 2021, the Company paid $0.8 million which was recognized as research and development expense. The Ipsen Agreement includes a royalty step down whereby royalties owed to Ipsen will be reduced by certain percentages not to exceed 50%, in the aggregate, of the royalty owed under certain circumstances relating to loss of patent exclusivity, loss of regulatory exclusivity or generics entering a market. Under the asset purchase agreement Ipsen has agreed not to develop a molecule that targets NTSR1 and combines at least one NTSR1 binding moiety and a radionuclide or cytotoxic agent until the earlier of (i) the seventh anniversary of the closing date or (ii) the date of data base lock after completion of the first phase 3 clinical trial for IPN-1087. Agreement with Merck & Co. On May 5, 2021, the Company entered into an agreement with two subsidiaries of Merck & Co. (“Merck”). Pursuant to the agreement, Merck will provide to the Company, at no cost, its anti-PD-1 (programmed death receptor-1) therapy, KEYTRUDA® (pembrolizumab) to evaluate in combination with the Company’s lead candidate, FPI-1434. The planned Phase 1 combination trial will evaluate safety, tolerability and pharmacokinetics of FPI-1434 in combination with pembrolizumab and is expected to initiate approximately six to nine months after achieving the recommended Phase 2 dose in the ongoing Phase 1 study of FPI-1434 monotherapy. Under the agreement, the Company will sponsor, fund and conduct the combination trial in accordance with an agreed-upon protocol and Merck agreed to manufacture and supply its compound, at its cost and for no charge to the Company, for use in the clinical trial. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 2 . Income Taxes The Company is domiciled in Canada and is primarily subject to taxation in that country. During the years ended December 31, 2021 and 2020, the Company recorded no income tax benefits for the net operating losses incurred or for the research and development tax credits generated in Canada in each period due to its uncertainty of realizing a benefit from those items. During the year ended December 31, 2021, the Company recorded a tax benefit primarily due to Income (loss) before benefit (provision) for income taxes consisted of the following (in thousands): Year Ended December 31, 2021 2020 Canada $ (82,327 ) $ (68,792 ) Foreign (U.S. and Ireland) 1,162 (6,930 ) Loss before benefit (provision) for income taxes $ (81,165 ) $ (75,722 ) The Company’s current and deferred income tax benefit (provision) consisted of the following (in thousands): Year Ended December 31, 2021 2020 Current income tax (provision): Canada $ (2 ) $ (9 ) Foreign (U.S. and Ireland) (871 ) (3,178 ) Total current income tax (provision) (873 ) (3,187 ) Deferred income tax benefit: Canada — — Foreign (U.S. and Ireland) 991 576 Total deferred income tax benefit 991 576 Total income tax benefit (provision) $ 118 $ (2,611 ) A reconciliation of the Canadian federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2021 2020 Canadian federal statutory income tax rate (26.5 )% (26.5 )% Foreign income tax rate differential (0.1 ) 0.1 Foreign income taxes (0.1 ) — Capital gains on intellectual property transfer from Ireland — 4.2 Capital losses on foreign exchange — (0.7 ) Other permanent differences (0.9 ) 2.6 Transfer of intellectual property to Canada — (1.7 ) Change in fair value of preferred share tranche right liability — 11.4 Change in fair value of preferred share warrant liability — 2.2 Income tax credits (2.3 ) (0.8 ) Share-based compensation 1.5 — Change in valuation allowance 28.3 12.6 Effective income tax rate (0.1 )% 3.4 % Net deferred tax assets consisted of the following (in thousands): December 31, 2021 2020 Deferred tax assets: Canadian net operating loss carryforwards $ 27,196 $ 12,246 Canadian capitalized research and development expenditure pool 5,268 2,945 Canadian research and development tax credit carryforwards 2,964 1,766 Intangibles 5,717 1,450 Deferred revenue 1,070 1,325 Reserves and accruals 2,648 1,728 Operating lease liabilities 1,642 — Other 286 — Total deferred tax assets 46,791 21,460 Valuation allowance (43,562 ) (20,598 ) Net deferred tax assets $ 3,229 $ 862 Deferred tax liabilities: Operating lease right-of-use assets (1,584 ) — Other — (209 ) Total deferred tax liabilities (1,584 ) (209 ) Net deferred tax assets $ 1,645 $ 653 As of December 31, 2021, the Company had $102.6 million of Canadian net operating loss carryforwards that begin to expire in 2035. In addition, the Company had $3.8 million of Canadian research and development tax credit carryforwards that begin to expire in 2037 as well as a capitalized research and development expenditure pool of $19.9 million that can be carried forward indefinitely. As of December 31, 2021, the Company also has U.S. state tax credits of $0.1 million that begin to expire in 2036. The Company has evaluated the positive and negative evidence bearing upon its ability to realize its deferred tax assets, which primarily consist of net operating loss carryforwards. The Company has considered its history of cumulative net losses in Canada, estimated future taxable income and prudent and feasible tax planning strategies and has concluded that it is more likely than not that the Company will not realize the benefits of its Canadian deferred tax assets as of December 31, 2021 and 2020. Based on its evaluation, the Company has recorded a full valuation allowance against its net deferred tax assets in Canada as of December 31, 2021 and 2020. As a result of the decision to liquidate the Irish subsidiary, the Irish deferred tax assets were reduced to zero as of December 31, 2020. The liquidation and dissolution of the Company’s Irish subsidiary was completed in September 2021. The Company’s valuation allowance increased during the years ended December 31, 2021 and 2020 due primarily to the generation of Canadian net operating loss carryforwards, as follows (in thousands): Year Ended December 31, 2021 2020 Valuation allowance as of beginning of year $ 20,598 $ 9,810 Increases recorded to income tax provision 22,964 9,550 Increases recorded to equity — 1,238 Valuation allowance as of end of year $ 43,562 $ 20,598 As of December 31, 2021 and 2020, the Company had liabilities for uncertain tax positions of $0.3 million which, if recognized, would impact the Company’s tax provision and effective income tax rate. The Company’s policy is to record interest and penalties related to income taxes as part of its income tax provision. As of each of December 31, 2021 and 2020, the Company had accrued interest or penalties related to uncertain tax position of less than $0.1 million. The Company does not expect its uncertain tax positions to change significantly over the next twelve months. Changes in the Company’s unrecognized tax benefits from uncertain tax positions consisted of the following (in thousands): December 31, 2021 2020 Unrecognized tax benefits as of beginning of year $ 254 $ 254 Additions for tax positions of prior years — — Unrecognized tax benefits as of end of year $ 254 $ 254 The Company files tax returns in Canada and foreign jurisdictions. With few exceptions, the Company is subject to Canadian federal, provincial and foreign tax examinations by tax authorities for the tax years ended December 31, 2016 and subsequent years. As of December 31, 2021 and 2020, income taxes on undistributed earnings of the Company’s U.S. subsidiary have not been provided for as the Company plans to indefinitely reinvest these amounts in the United States. The cumulative undistributed foreign earnings were not material as of December 31, 2021 and 2020. Additionally, while the Company is no longer indefinitely reinvested in the Irish subsidiary as of December 31, 2020, any distribution would be a return of capital and not result in a material tax expense. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 1 3 . Net Loss per Share Net Loss per Share Attributable to Common Shareholders Basic and diluted net loss per share attributable to common shareholders was calculated as follows (in thousands, except share and per share amounts): Year Ended December 31, 2021 2020 Numerator: Net loss $ (81,047 ) $ (78,333 ) Dividends paid to preferred shareholders in the form of warrants issued — (1,382 ) Net loss attributable to common shareholders $ (81,047 ) $ (79,715 ) Denominator: Weighted-average common shares outstanding—basic and diluted 42,598,843 22,033,269 Net loss per share attributable to common shareholders—basic and diluted $ (1.90 ) $ (3.62 ) The Company’s potentially dilutive securities, which include stock options, convertible preferred shares, preferred exchangeable shares and common share warrants, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common shareholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common shareholders for the periods indicated because including them would have had an anti-dilutive effect: Year Ended December 31, 2021 2020 Options to purchase common shares 8,045,706 5,607,244 Warrants to purchase common shares 651,816 651,816 8,697,522 6,259,060 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 14. Leases In January 2018, the Company entered into an operating lease for office space in Boston, Massachusetts, which was to expire in July 2023 In August 2018, the Company entered into an operating lease for office space in Hamilton, Ontario. This lease was amended in September 2020 (“New Lease Commencement Date”) and expires in August 2030 five-year In October 2019, the Company entered into an operating lease for office space in Boston, Massachusetts, which expires February 2026 On March 16, 2021, the Company entered into an amendment to its lease for office space in Boston, Massachusetts to expand the area under lease (“Expansion Premises”) and extend the term of the premises currently under lease (“Original Premises”) to align with the lease end date for the Expansion Premises. The additional rent for the Expansion Premises was determined to be commensurate with the additional right-of-use and is accounted for as a new operating lease that was recognized on the Company’s balance sheet since the Company was able to access the Expansion Premises upon execution of the amendment. The Company has made certain improvements to the Expansion Premises, for which the landlord will provide the Company an allowance of up to $0.2 million which was recorded as a reduction to operating lease right-of-use assets and operating lease liabilities as of December 31, 2021. The rental payments for the Expansion Space commenced on January 1, 2022. The lease end date for the Original Premises and the Expansion Premises is April 30, 2027, with no option to extend the lease term. The lease modification for the extension of the Original Premises and the recognition of the Expansion Premises resulted in increases to the Company’s right-of-use asset balance, which was obtained in exchange for operating lease liabilities, of $0.9 million and $1.2 million, respectively On June 1, 2021, the Company entered into a lease for a manufacturing facility in Hamilton, Ontario. The Company currently expects the rent for the manufacturing facility, which is under construction, to commence in October 2022, approximately two months after the anticipated delivery date of the premises. The Company currently expects the lease end date for the manufacturing facility to be in September 2037 five-year The components of operating lease cost, which are included within operating expenses in the accompanying consolidated statements of operations and comprehensive loss, are as follows (in thousands): Year Ended December 31, 2021 Operating lease cost $ 1,393 Variable lease cost 25 Total lease cost $ 1,418 In accordance with ASC 840, rent expense was $1.1 million for the year ended December 31, 2020. The following table summarizes supplemental information for the Company’s operating leases: As of December 31, 2021 Weighted-average remaining lease term (in years) 5.2 Weighted average discount rate 4.9 % Cash paid for amounts included in the measurement of lease liabilities (in thousands) $ 1,146 As of December 31, 2021, the future maturities of operating lease liabilities are as follows (in thousands): Year Ending December 31, 2022 $ 1,245 2023 1,463 2024 1,499 2025 1,537 2026 1,469 Thereafter 425 Total lease payments $ 7,638 Less: imputed interest (916 ) Total lease liabilities $ 6,722 Future minimum lease payments due under operating leases as of December 31, 2020 were as follows (in thousands): Year Ending December 31, 2021 $ 1,127 2022 1,158 2023 1,190 2024 1,221 2025 1,253 Thereafter 361 Total $ 6,310 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 5 . Commitments and Contingencies Manufacturing Commitments In January 2019, and as amended in September 2020, the Company entered into an agreement with CPDC, a related party (see Note 17), to manufacture clinical trial materials. As of December 31, 2021, the Company had non-cancelable minimum purchase commitments under the agreement totaling $0.4 million over the following twelve months. In May 2019, the Company entered into an agreement with a third-party contract manufacturing organization to manufacture clinical trial materials. As of December 31, 2021, the Company had non-cancelable minimum purchase commitments under the agreement totaling $0.6 million over the following twelve months. License Agreements The Company has entered into license agreements with various parties under which it is obligated to make contingent and non-contingent payments (see Note 11). Indemnification Agreements In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors and certain of its executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not currently aware of any indemnification claims and has not accrued any liabilities related to such obligations in its consolidated financial statements as of December 31, 2021 or 2020. Legal Proceedings The Company is not a party to any litigation and does not have contingency reserves established for any litigation liabilities. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to such legal proceedings. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | 1 6 . Benefit Plans The Company has an established a defined contribution savings plan under Section 401(k) of the U.S. Internal Revenue Code of 1986, as amended. This plan covers all U.S. employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Matching contributions to the plan may be made at the discretion of the Company’s board of directors. The Company made contributions of $0.2 million and $0.1 million to the plan during the years ended December 31, 2021 and 2020, respectively. In 2020, the Company also established a group retirement savings plan registered with the Canada Revenue Agency. This plan covers all Canadian employees who meet the eligibility requirements under the Income Tax Act (Canada) and allows members to defer a portion of their annual compensation on a pre-tax basis. Matching contributions to the plan may be made at the discretion of the Company’s board of directors. The Company made contributions of $0.1 million during each of the years ended December 31, 2021 and 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 1 7 . Related Party Transactions The Company’s chief executive officer, founder and member of the board of directors, John Valliant, Ph.D., is a member of the board of directors at CPDC. The Company has entered into license agreements with CPDC (see Note 11). In addition, the Company has entered into a Master Services Agreement and a Supply Agreement with CPDC, under which CPDC provides services to the Company related to preclinical and manufacturing services, administrative support services and access to laboratory facilities. In connection with the Supply Agreement, the Company is obligated to pay CPDC an amount of $0.2 million per quarter, or $0.8 million in the aggregate per year, plus fees for materials, packaging and distribution of products supplied to the Company, unless the agreement is terminated by the Company. The Company recognized expenses in connection with the services performed in the normal course of business under the Master Services Agreement and the Supply Agreement in the consolidated statements of operations and comprehensive loss as follows (in thousands): Year Ended December 31, 2021 2020 Research and development expenses $ 1,724 $ 1,140 General and administrative expenses 44 57 $ 1,768 $ 1,197 During the years ended December 31, 2021 and 2020, the Company made payments to CPDC in connection with the services described above of $1.7 million and $1.1 million, respectively. Amounts due to CPDC by the Company in connection with the services described above totaled $0.5 million and $0.3 million as of December 31, 2021 and 2020, respectively, which amounts were included in accounts payable and accrued expenses on the consolidated balance sheets. In addition to costs incurred in connection with the services described above, the Company also reimbursed CPDC for purchases on the Company’s behalf from parties with which the Company did not have an account. During the years ended December 31, 2021 and 2020, the Company made payments to CPDC of $0.2 million and $0.1 million, respectively, for reimbursement of these pass-through costs. During the year ended December 31, 2021, the Company recorded $0.2 million of lab equipment purchased from CPDC which they acquired from third-party vendors on its behalf. In connection with the Company entering into a lease for a manufacturing facility in Hamilton, Ontario (see Note 14), the Company entered into an agreement with CPDC for services relating to certain aspects of the validation of the manufacturing facility which is currently under construction. During the year ended December 31, 2021, the Company paid $3.0 million CAD (equivalent to $2.5 million at the time of payment) which was recorded as research and development expense. |
Geographical Information
Geographical Information | 12 Months Ended |
Dec. 31, 2021 | |
Geographic Areas Long Lived Assets [Abstract] | |
Geographical Information | 1 8 . Geographical Information The Company has operating companies in the United States and Canada. Information about the Company’s long-lived assets, consisting solely of property and equipment, net, by geographic region was as follows (in thousands): December 31, 2021 2020 United States $ 541 $ 103 Canada 2,426 1,864 $ 2,967 $ 1,967 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 9 . Subsequent Events Lease Agreement On January 12, 2022, the Company entered into a lease agreement, which was subsequently amended on February 10, 2022, for additional office space in Hamilton, Ontario. The amended lease agreement provides for occupancy of 4,087 square feet of office space beginning in February 2022 through August 2030 five-year |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Reverse Share Split | Reverse Share SplitOn June 19, 2020, the Company effected a one-for-5.339 reverse share split of its issued and outstanding common shares and a proportional adjustment to the existing conversion ratios for each class of the Company’s Preferred Shares (see Note 9) and Preferred Exchangeable Shares (see Note 9). Accordingly, all share and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this reverse share split and adjustment of the preferred share conversion ratios. |
Initial Public Offering | Initial Public Offering On June 25, 2020, the Company completed an initial public offering (“IPO”) of its common shares and issued and sold 12,500,000 common shares at a public offering price of $17.00 per share, resulting in net proceeds of $193.1 million after deducting underwriting fees, and after deducting offering costs. Upon closing of the IPO, the Company’s outstanding preferred exchangeable shares automatically converted into convertible preferred shares then the outstanding convertible preferred shares automatically converted into shares of common shares (see Note 9). Upon conversion of the convertible preferred shares, the Company reclassified the carrying value of the convertible preferred shares to common shares and additional paid-in capital. In addition, the warrants to purchase the Company’s convertible preferred shares and warrants to purchase preferred exchangeable shares of the Company’s Irish subsidiary were converted into warrants to purchase the Company’s common shares upon the closing of the IPO. As a result, the warrant liability was remeasured a final time on the closing date of the IPO and reclassified to shareholders’ equity (deficit) (see Note 9). In connection with the IPO on June 25, 2020, the Company filed an amended and restated articles of the corporation under laws governed by the Canada Business Corporations Act to authorize unlimited common shares with no par value. |
Basis of Presentation | Basis of Presentation |
Impact of the COVID-19 Pandemic | Impact of the COVID-19 Pandemic The worldwide COVID-19 pandemic has caused many governments to implement measures to slow the spread of the outbreak through quarantines, travel restrictions, heightened border security and other measures. The impact of this pandemic has been, and will likely continue to be, extensive in many aspects of society, which has resulted, and will likely continue to result, in significant disruptions to the global economy as well as businesses and capital markets around the world. The future progression of the pandemic and its effects on the Company’s business and operations are uncertain. In response to public health directives and orders and to help minimize the risk of the virus to employees, the Company has taken precautionary measures, including implementing work-from-home policies for certain employees. The impact of the virus and variants thereof, including work-from-home policies, may negatively impact productivity, disrupt the Company’s business, and delay its preclinical research and clinical trial activities and its development program timelines, the magnitude of which will depend, in part, on the length and severity of the restrictions and other limitations on the Company’s ability to conduct its business in the ordinary course. Specifically, the Company has experienced material delays in patient recruitment and enrollment in its ongoing Phase 1 clinical trial of FPI-1434 and FPI-1966 as a result of continued resourcing issues related to COVID-19 at trial sites and potentially due to concerns among patients about participating in clinical trials during a public health emergency. The Company may not be able to enroll additional patient cohorts on its planned timeline due to disruptions at its clinical trial sites and is unable to predict how the COVID-19 pandemic may affect its ability to successfully progress its clinical programs in the future. Other impacts to the Company’s business may include temporary closures of its suppliers or other third parties upon whom the Company relies and disruptions or restrictions on its employees’ ability to travel. Any prolonged material disruption to the Company’s employees, suppliers or other third parties upon whom the Company relies could adversely impact the Company’s preclinical research and clinical trial activities, financial condition and results of operations, including its ability to obtain additional financing. The Company is monitoring the potential impact of the COVID-19 pandemic, including variants thereof, on its business and consolidated financial statements. To date, the Company has not incurred impairment losses in the carrying values of its assets as a result of the pandemic and it is not aware of any specific related event or circumstance that would require it to revise its estimates reflected in these consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, the accrual of research and development expenses, valuations of share-based awards, revenue recognition and the valuations of common shares, preferred share tranche rights and preferred share warrants prior to the closing of the IPO. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions. |
Foreign Currency and Currency Translation | Foreign Currency and Currency Translation The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s operating company in Canada, operating company in the U.S. and non-operating company in Ireland (dissolved in September 2021) is also the U.S. dollar. As a result, the Company records no cumulative translation adjustments related to translation of unrealized foreign exchange gains or losses. For the remeasurement of local currencies to the U.S. dollar functional currency of the Canadian and Irish entities, assets and liabilities are translated into U.S. dollars at the exchange rate in effect on the balance sheet date, and income items and expenses are translated into U.S. dollars at the average exchange rate in effect during the period. Resulting transaction gains (losses) are included in other income (expense), net in the consolidated statements of operations and comprehensive loss, as incurred. Adjustments that arise from exchange rate changes on transactions denominated in a currency other than the local currency are included in other income (expense), net in the consolidated statements of operations and comprehensive loss, as incurred. During the years ended December 31, 2021 and 2020, the Company recorded $0.2 million and $0.6 million, respectively, of foreign currency gains in the consolidated statements of operations and comprehensive loss. |
Concentration of Credit Risk and of Significant Suppliers | Concentrations of Credit Risk and of Significant Suppliers Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and investments. The Company’s cash equivalents and investments as of December 31, 2021 consisted of money market funds, U.S. and Canadian government agency securities, corporate bonds, municipal bonds and commercial paper. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The Company relies, and expects to continue to rely, on a small number of vendors to manufacture supplies and to process its product candidates for its development programs. These programs could be adversely affected by a significant interruption in the manufacturing process. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of standard checking accounts, money market accounts, and all highly liquid investments with an original maturity of three months or less at the date of purchase. As of December 31, 2021 and 2020, the Company was required to maintain separate cash balances of $0.3 million to collateralize corporate credit cards with a bank, which was classified as restricted cash, current, on its consolidated balance sheets. The Company also maintained a $0.1 million guaranteed investment certificate to fulfill certain contractual obligations which was classified as restricted cash, current, as of December 31, 2021 and 2020. In connection with the Company’s lease agreement entered into in October 2019 (see Note 14), the Company maintains a letter of credit of $1.5 million for the benefit of the landlord. As of December 31, 2021, $0.3 million and $1.2 million of the underlying cash balance collateralizing this letter of credit was classified as restricted cash, current and non-current, respectively, on the Company’s consolidated balance sheets based on the release date of the restrictions of this cash. As of December 31, 2020, the entire underlying cash balance collateralizing this letter of credit was classified as restricted cash, non-current on the Company’s consolidated balance sheets. As of December 31, 2021 and 2020, the cash, cash equivalents and restricted cash of $54.8 million and $92.4 million, respectively, presented in the consolidated statements of cash flows included cash and cash equivalents of $52.9 million and $90.5 million, respectively, and restricted cash of $1.9 million for both periods. |
Investments | Investments The Company determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determination at each balance sheet date. The Company classifies its investments as current or non-current based on each instrument’s underlying maturity date. Investments with original maturities of greater than three months and less than twelve months are classified as current and are included in short-term investments in the consolidated balance sheets. Investments with remaining maturities greater than one year from the balance sheet date are classified as non-current and are included in long-term investments in the consolidated balance sheets. The Company’s investments are classified as available-for-sale, are reported at fair value and consist of U.S. and Canadian government agency debt securities, corporate bonds, and commercial paper. Unrealized gains and losses are included in other comprehensive income (loss) as a component of shareholders’ equity (deficit) until realized. Amortization and accretion of premiums and discounts are recorded in interest income (expense). Realized gains and losses on debt securities are included in other income (expense), net. If any adjustment to fair value reflects a decline in value of the investment, the Company considers all available evidence to evaluate the extent to which the decline is other than temporary and, if so, marks the investment to market on the Company’s consolidated statements of operations and comprehensive loss. |
Deferred Offering Costs | Deferred Offering Costs The Company capitalizes certain legal, professional accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of an equity financing, these costs are recorded as a reduction of the proceeds from the offering, either as a reduction to the carrying value of the preferred exchangeable shares or convertible preferred shares or in shareholders’ equity (deficit) as a reduction of additional paid-in capital generated as a result of the offering. Should an in-process equity financing be abandoned, the deferred offering costs would be expensed immediately as a charge to operating expenses in the consolidated statements of operations and comprehensive loss. Offering costs of $4.6 million incurred during 2020 have been recorded in shareholders’ equity (deficit) as a reduction of the gross proceeds generated from the Company’s initial public offering of common shares. The Company recorded $0.3 million of deferred offering costs as of December 31, 2021 in other non-current assets and did not record any deferred offering costs as of December 31, 2020. |
Collaborative Arrangements | Collaborative Arrangements The Company considers the nature and contractual terms of arrangements and assesses whether an arrangement involves a joint operating activity pursuant to which the Company is an active participant and is exposed to significant risks and rewards dependent on the commercial success of the activity. If the Company is an active participant and is exposed to significant risks and rewards dependent on the commercial success of the activity, the Company accounts for such arrangement as a collaborative arrangement under ASC 808, Collaborative Arrangements For arrangements determined to be within the scope of ASC 808 where a collaborative partner is not a customer for certain research and development activities, the Company accounts for payments received for the reimbursement of research and development costs as a contra-expense in the period such expenses are incurred. This reflects the joint risk sharing nature of these activities within a collaborative arrangement. The Company classifies payments owed or receivables recorded as other current liabilities or prepaid expenses and other current assets, respectively, in the Company’s consolidated balance sheets. If payments from the collaborative partner to the Company represent consideration from a customer in exchange for distinct goods and services provided, then the Company accounts for those payments within the scope of ASC 606, Revenue from Contracts with Customers |
Revenue from Contracts with Customers | Revenue from Contracts with Customers In accordance with ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, it performs the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract , (iii) determine the transaction price , (iv) allocate the transaction price to the performance obligations within the contract and (v) recognize revenue when (or as) the Company satisfies a performance obligation . The Company only applies the five-step model to contracts when it determines that it is probable it will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within the contract to determine whether each promised good or service is a performance obligation. The promised goods or services in the Company’s arrangements typically consist of a license to the Company’s intellectual property and/or research and development services. The Company may provide customers with options to additional items in such arrangements, which are accounted for separately when the customer elects to exercise such options, unless the option provides a material right to the customer. Performance obligations are promises in a contract to transfer a distinct good or service to the customer that (i) the customer can benefit from on its own or together with other readily available resources, and (ii) is separately identifiable from other promises in the contract. Goods or services that are not individually distinct performance obligations are combined with other promised goods or services until such combined group of promises meet the requirements of a performance obligation. The Company determines transaction price based on the amount of consideration the Company expects to receive for transferring the promised goods or services in the contract. Consideration may be fixed, variable, or a combination of both. At contract inception for arrangements that include variable consideration, the Company estimates the probability and extent of consideration it expects to receive under the contract utilizing either the most likely amount method or expected amount method, whichever best estimates the amount expected to be received. The Company then considers any constraints on the variable consideration and includes in the transaction price variable consideration to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company then allocates the transaction price to each performance obligation based on the relative standalone selling price and recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) control is transferred to the customer and the performance obligation is satisfied. For performance obligations which consist of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. The Company records amounts as accounts receivable when the right to consideration is deemed unconditional. Amounts received, or that are unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract are recognized as deferred revenue. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as the current portion of deferred revenue. Amounts not expected to be recognized as revenue within the 12 months following the balance sheet date are classified as deferred revenue, net of current portion. The Company’s revenue generating arrangements typically include upfront license fees, milestone payments and/or royalties. If a license is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from nonrefundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. At the inception of an agreement that includes research and development milestone payments, the Company evaluates each milestone to determine when and how much of the milestone to include in the transaction price. The Company first estimates the amount of the milestone payment that the Company could receive using either the expected value or the most likely amount approach. The Company primarily uses the most likely amount approach as this approach is generally most predictive for milestone payments with a binary outcome. Then, the Company considers whether any portion of the estimated amount is subject to the variable consideration constraint (that is, whether it is probable that a significant reversal of cumulative revenue would not occur upon resolution of the uncertainty). The Company updates the estimate of variable consideration included in the transaction price at each reporting date which includes updating the assessment of the likely amount of consideration and the application of the constraint to reflect current facts and circumstances. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company will recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). For the year ended December 31, 2021, the Company recorded $1.4 million of revenue under collaboration agreements. Please refer to Note 3, “Collaboration Agreement” for additional details regarding revenue recognition under the AstraZeneca Agreement. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense is recognized using the straight-line method over the estimated useful life of each asset, as follows: Estimated Useful Life Laboratory equipment 5 years Computer hardware and software 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or 10 years Estimated useful lives are periodically assessed to determine if changes are appropriate. Maintenance and repairs are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost of these assets and related accumulated depreciation or amortization are removed from the accounts and any resulting gains or losses are included in loss from operations in the period of disposal. Costs for capital assets not yet placed into service are capitalized as construction-in-progress and depreciated once placed into service. |
Business Combinations | Business Combinations In determining whether an acquisition should be accounted for as a business combination or asset acquisition, the Company first determines whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this is the case, the single identifiable asset or the group of similar assets is not deemed to be a business, and is instead deemed to be an asset. If this is not the case, the Company then further evaluates whether the single identifiable asset or group of similar identifiable assets and activities includes, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. If so, the Company concludes that the single identifiable asset or group of similar identifiable assets and activities is a business. The Company accounts for business combinations using the acquisition method of accounting. Application of this method of accounting requires that (i) identifiable assets acquired (including identifiable intangible assets) and liabilities assumed generally be measured and recognized at fair value as of the acquisition date and (ii) the excess of the purchase price over the net fair value of identifiable assets acquired and liabilities assumed be recognized as goodwill, which is not amortized for accounting purposes but is subject to testing for impairment at least annually. Acquired in-process research and development (“IPR&D”) is recognized at fair value and initially characterized as an indefinite-lived intangible asset, irrespective of whether the acquired IPR&D has an alternative future use. Transaction costs related to business combinations are expensed as incurred. Determining the fair value of assets acquired and liabilities assumed in a business combination requires management to use significant judgment and estimates, especially with respect to intangible assets. During the measurement period, which extends no later than one year from the acquisition date, the Company may record certain adjustments to the carrying value of the assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, all adjustments are recorded in the consolidated statements of operations as operating expenses or income. To date, the Company has not recorded any acquisitions as a business combination. |
Asset Acquisitions | Asset Acquisitions The Company measures and recognizes asset acquisitions that are not deemed to be business combinations based on the cost to acquire the assets, which includes transaction costs. Goodwill is not recognized in asset acquisitions. In an asset acquisition, the cost allocated to acquire IPR&D with no alternative future use is charged to expense at the acquisition date. Contingent consideration in asset acquisitions payable in the form of cash is recognized when payment becomes probable and reasonably estimable, unless the contingent consideration meets the definition of a derivative, in which case the amount becomes part of the asset acquisition cost when acquired. Contingent consideration payable in the form of a fixed number of the Company’s own shares is measured at fair value as of the acquisition date and recognized when the issuance of the shares becomes probable. Upon recognition of the contingent consideration payment, the amount is included in the cost of the acquired asset or group of assets, or, if related to IPR&D with no alternative future use, charged to expense. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets consist of property and equipment. Long-lived assets to be held and used are tested for recoverability whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset group for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset group to its carrying value. An impairment loss would be recognized in loss from operations when estimated undiscounted future cash flows expected to result from the use of an asset group are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset group over its fair value. The Company did not record any impairment losses on long-lived assets during the years ended December 31, 2021 and 2020. |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities of the Company are carried at fair value under GAAP. 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 must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. Prior to the settlement of the Company’s preferred share tranche right liability and prior to the conversion of the Company’s preferred share warrant liability, these instruments were carried at fair value, determined according to Level 3 inputs in the fair value hierarchy described above (see Note 4). The Company’s cash equivalents and investments are carried at fair value, determined according to the fair value hierarchy described above (see Note 4). The carrying values of the Company’s amounts due for Canadian harmonized sales tax, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these liabilities. |
Segment Information | Segment Information The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. The Company’s focus is on the development of next-generation radiopharmaceuticals as precision medicines for hard-to-treat cancers. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. Research and development expenses consist of costs incurred in performing research and development activities, including costs for salaries and bonuses, employee benefits, subcontractors, facility-related expenses, depreciation and amortization, share-based compensation, third-party license fees, laboratory supplies, and external costs of outside vendors engaged to conduct discovery, preclinical and clinical development activities and clinical trials as well as to manufacture clinical trial materials, and other costs. The Company recognizes external research and development costs based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its service providers. Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses. Such prepaid expenses are recognized as an expense when the goods have been delivered or the related services have been performed, or when it is no longer expected that the goods will be delivered or the services rendered. Upfront payments under license agreements are expensed as research and development expense upon receipt of the license, and annual maintenance fees under license agreements are expensed in the period in which they are incurred. Milestone payments under license agreements are accrued, with a corresponding expense being recognized, in the period in which the milestone is determined to be probable of achievement and the related amount is reasonably estimable. |
Research, Development and Manufacturing Contract Costs and Accruals | Research, Development and Manufacturing Contract Costs and Accruals The Company has entered into various research, development and manufacturing contracts with research institutions and other companies. These agreements are generally cancelable, and related costs are recorded as research and development expenses as incurred. The Company records accruals for estimated ongoing research, development and manufacturing costs. When billing terms under these contracts do not coincide with the timing of when the work is performed, the Company is required to make estimates of outstanding obligations to those third parties as of period end. Any accrual estimates are based on a number of factors, including the Company’s knowledge of the progress towards completion of the research, development and manufacturing activities, invoicing to date under the contracts, communication from the research institutions and other companies of any actual costs incurred during the period that have not yet been invoiced and the costs included in the contracts. Significant judgments and estimates may be made in determining the accrued balances at the end of any reporting period. Actual results could differ from the estimates made by the Company. The historical accrual estimates made by the Company have not been materially different from the actual costs. |
Patent Costs | Patent Costs All patent-related costs incurred in connection with filing and prosecuting patent applications are expensed as incurred due to the uncertainty about the recovery of the expenditure. Amounts incurred are classified as general and administrative expenses. |
Share-Based Compensation | Share-Based Compensation The Company measures stock options with service-based vesting granted to employees, non-employees and directors based on the fair value on the date of grant using the Black Scholes option pricing model. Compensation expense for employee and director awards is recognized over the requisite service period, which is generally the vesting period of the award. Compensation expense for non-employee awards is recognized in the same manner as if the Company had paid cash in exchange for the goods or services, which is generally the vesting period of the award. The Company uses the straight-line method to record the expense of awards with only service-based vesting conditions. The Company has elected to account for forfeitures as they occur. The Company has not issued any share-based awards with performance-based vesting conditions that are within the control of the Company and that may be considered probable prior to occurrence or with market-based vesting conditions. The Company classifies share-based compensation expense in its consolidated statements of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified. |
Preferred Share Tranche Right Liability and Preferred Share Warrant Liability | Preferred Share Tranche Right Liability The subscription agreements for the Company’s Class B convertible preferred shares (see Note 9) and its Irish subsidiary’s Class B preferred exchangeable shares (see Note 9) provided investors the right, or obligated investors, to participate in subsequent offerings of Class B convertible preferred shares or Class B preferred exchangeable shares together with Class B special voting shares in the event that specified development or regulatory milestones were achieved (the “Class B preferred share tranche right liability”). The Company classified these preferred share tranche rights as a liability on its consolidated balance sheets as each preferred share tranche right was a freestanding financial instrument that may have required the Company to transfer assets upon the achievement of specified milestone events. Each preferred share tranche right liability was initially recorded at fair value upon the date of issuance of each preferred share tranche right and was subsequently remeasured to fair value at each reporting date. Changes in the fair value of the preferred share tranche right liability were recognized as a component of other income (expense) in the consolidated statement of operations and comprehensive loss. Changes in the fair value of the preferred share tranche right liability were recognized until the respective preferred share tranche right was settled upon achievement of the specified milestones or it expired. On May 15, 2020, the Company achieved the specified regulatory milestone associated with the Class B preferred share tranche right (see Note 9), which triggered the requirement of the Class B shareholders to participate in the Milestone Financing. Upon closing of the Milestone Financing on June 2, 2020, the Company issued and sold 36,806,039 Class B preferred shares at a price of $1.5154 per share and 4,437,189 Class B special voting shares at a price of $0.000001 per share and the Company’s Irish subsidiary issued and sold 4,437,189 Class B preferred exchangeable shares at a price of $1.5154 per share, for aggregate gross proceeds of $62.5 million. The Class B preferred share tranche right liability (see Note 9) was settled in connection with the achievement of the regulatory milestone associated with the Class B preferred share tranche right. Specifically, the fair value of the Class B preferred share tranche right liability was remeasured for the last time as of the Milestone Financing closing date, resulting in the Company recognizing a loss in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2020 of $32.7 million for the change in the fair value of the tranche right liability between December 31, 2019 and June 2, 2020. Immediately thereafter, the balance of the Class B preferred share tranche right liability of $39.6 million was reclassified to Class B convertible preferred shares in an amount of $35.3 million and to non-controlling interest in the Company’s Irish subsidiary in an amount of $4.3 million on the consolidated balance sheet. Preferred Share Warrant Liability The Company classified warrants to purchase its convertible preferred shares and warrants to purchase preferred exchangeable shares of Upon the closing of the IPO, the warrants to purchase its convertible preferred shares and warrants to purchase preferred exchangeable shares of the Company’s Irish subsidiary were converted into warrants to purchase shares of the Company’s common shares. As a result, the warrant liability was remeasured a final time on the closing date of the IPO and reclassified to shareholders’ equity (deficit) as the warrants qualify for equity classification. |
Leases | Leases Prior to January 1, 2021, the Company accounted for leases in accordance with ASC 840, Leases term. The Company classified deferred rent as current and noncurrent liabilities based on the portion of the deferred rent that was scheduled to mature within the proceeding twelve months. Effective January 1, 2021, the Company accounts for leases in accordance with ASC 842, Leases A right-of-use asset represents the economic benefit conveyed to the Company by the right to use the underlying asset over the lease term. A lease liability represents the obligation to make lease payments arising from the lease. The Company records amortization of operating right-of-use assets and accretion of lease liabilities as a single lease cost on a straight-line basis over the lease term. The Company elected the practical expedient to not separate lease and non-lease components and therefore measures each lease payment as the total of the fixed lease and associated non-lease components. Lease liabilities are measured at the lease commencement date and calculated as the present value of the future lease payments in the contract using the rate implicit in the contract, when available. If an implicit rate is not readily determinable, the Company uses its incremental borrowing rate measured as the rate at which the Company could borrow, on a fully collateralized basis, a commensurate loan in the same currency over a period consistent with the lease term at the commencement date. Right-of-use assets are measured as the lease liability plus initial direct costs and prepaid lease payments, less lease incentives granted by the lessor. The lease term is measured as the noncancelable period in the contract, adjusted for any options to extend or terminate when it is reasonably certain the Company will extend the lease term via such options based on an assessment of economic factors present as of the lease commencement date. The Company elected the practical expedient to not recognize leases with a lease term of twelve months or less. The Company assesses its right-of-use assets for impairment consistent with the assessment performed for long-lived assets used in operations. If an impairment is recognized on operating lease right-of-use assets, the lease liability continues to be recognized using the same effective interest method as before the impairment and the operating lease right-of-use asset is amortized over the remaining term of the lease on a straight-line basis. The Company’s operating leases are presented in the consolidated balance sheet as operating lease right-of-use assets, classified as noncurrent assets, and operating lease liabilities, classified as current and noncurrent liabilities based on the discounted lease payments to be made within the proceeding twelve months. Variable costs associated with a lease, such as maintenance and utilities, are not included in the measurement of the lease liabilities and right-of-use assets but rather are expensed when the events determining the amount of variable consideration to be paid have occurred. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the consolidated financial statements or in the Company’s tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes, based upon the weight of available evidence, that it is more likely than not that all or a portion of the deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more likely than not to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the consolidated financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss includes net loss as well as other changes in shareholders’ equity (deficit) that result from transactions and economic events other than those with shareholders. For the years ended December 31, 2021 and 2020, unrealized gains and losses on investments are included in other comprehensive income (loss) as a component of shareholders’ equity (deficit) until realized. |
Net Loss per Share | Net Loss per Share The Company follows the two-class method when computing net income (loss) per share as the Company has issued shares that meet the definition of participating securities. The two-class method determines net income (loss) per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common shareholders for the period to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. Basic net income (loss) per share attributable to common shareholders is computed by dividing the net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) attributable to common shareholders is computed by adjusting net income (loss) attributable to common shareholders to reallocate undistributed earnings based on the potential impact of dilutive securities. Diluted net income (loss) per share attributable to common shareholders is computed by dividing the diluted net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding for the period, including potential dilutive common shares. For purpose of this calculation, outstanding stock options, warrants and convertible preferred shares are considered potential dilutive common shares. The Company’s convertible preferred shares contractually entitle the holders of such shares to participate in dividends but do not contractually require the holders of such shares to participate in losses of the Company. Accordingly, in periods in which the Company reports a net loss attributable to common shareholders, such losses are not allocated to such participating securities. In periods in which the Company reported a net loss attributable to common shareholders, diluted net loss per share attributable to common shareholders is the same as basic net loss per share attributable to common shareholders, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. The Company reported a net loss attributable to common shareholders for the years ended December 31, 2021 and 2020. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), as subsequently amended, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors), and replaces the existing guidance in ASC 840, Leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine the recognition pattern of lease expense over the term of the lease. In addition, a lessee is required to record (i) a right-of-use asset and a lease liability on its balance sheet for all leases with accounting lease terms of more than 12 months regardless of whether it is an operating or financing lease and (ii) lease expense in its consolidated statement of operations for operating leases and amortization and interest expense in its consolidated statement of operations for financing leases. Leases with a term of 12 months or less may be accounted for similar to existing guidance for operating leases under ASC 840. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), which added an optional transition method that allows companies to adopt the standard as of the beginning of the year of adoption as opposed to the earliest comparative period presented. The Company early adopted the new leasing standard effective January 1, 2021, using the alternative modified retrospective transition approach applied to leases existing as of January 1, 2021. As a result, prior periods are presented in accordance with the previous guidance in ASC 840. The Company has elected to apply the package of practical expedients requiring no reassessment of whether any expired or existing contracts are or contain leases, the lease classification of any expired or existing leases, or the capitalization of initial direct costs for any existing leases. Additionally, the Company has elected not to separate lease and non-lease components and not to recognize leases with an initial term of twelve months or less. The cumulative effect of the adoption of ASC 842 on the Company’s consolidated balance sheets as of January 1, 2021 was as follows (in thousands): Balance as of Impact of Balance as of December 31, 2020 Adoption January 1, 2021 Prepaid expenses and other current assets $ 5,340 $ (26 ) $ 5,314 Operating lease right-of-use assets $ — $ 5,664 $ 5,664 Total assets $ 310,676 $ 5,638 $ 316,314 Operating lease liabilities $ — $ 959 $ 959 Deferred rent, net of current portion $ 11 $ (11 ) $ — Operating lease liabilities, net of current portion $ — $ 4,690 $ 4,690 Total liabilities $ 16,163 $ 5,638 $ 21,801 The adoption of ASC 842 did not have a material impact on the Company’s consolidated statements of operations and comprehensive loss, statements of non-controlling interest, convertible preferred shares and shareholders’ equity (deficit) or statements of cash flows as of January 1, 2021. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) as part of its Simplification Initiative to reduce the cost and complexity in accounting for income taxes. ASU 2019-12 removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of GAAP. The guidance is effective for the Company for interim and annual periods beginning after December 15, 2022, with early adoption permitted. We adopted ASU 2019-12 effective January 1, 2021, which did not have a material impact on our consolidated financial statements. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company qualifies as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 and has elected to “opt in” to the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and nonpublic companies, the Company will adopt the new or revised standard at the time nonpublic companies adopt the new or revised standard and will do so until such time that the Company either (i) irrevocably elects to “opt out” of such extended transition period or (ii) no longer qualifies as an emerging growth company. The Company may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments—Credit Losses Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief In May 2021, the FASB issued ASU No. 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options permitted. The adoption of ASU 2021- 04 is not anticipated to materially impact the Company’s consolidated financial statements. In November 2021, the FASB issued ASU 2021-10 , Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Estimated Useful Life of Asset | Depreciation and amortization expense is recognized using the straight-line method over the estimated useful life of each asset, as follows: Estimated Useful Life Laboratory equipment 5 years Computer hardware and software 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or 10 years Property and equipment, net consisted of the following (in thousands): December 31, 2021 2020 Laboratory equipment $ 3,327 $ 1,764 Computer hardware and software 171 218 Furniture and fixtures 70 70 Construction-in-progress 704 662 4,272 2,714 Less: Accumulated depreciation (1,305 ) (747 ) $ 2,967 $ 1,967 |
Schedule of Cumulative Effect of Adoption of ASC 842 on Company's Consolidated Balance Sheets | The cumulative effect of the adoption of ASC 842 on the Company’s consolidated balance sheets as of January 1, 2021 was as follows (in thousands): Balance as of Impact of Balance as of December 31, 2020 Adoption January 1, 2021 Prepaid expenses and other current assets $ 5,340 $ (26 ) $ 5,314 Operating lease right-of-use assets $ — $ 5,664 $ 5,664 Total assets $ 310,676 $ 5,638 $ 316,314 Operating lease liabilities $ — $ 959 $ 959 Deferred rent, net of current portion $ 11 $ (11 ) $ — Operating lease liabilities, net of current portion $ — $ 4,690 $ 4,690 Total liabilities $ 16,163 $ 5,638 $ 21,801 |
Collaboration Agreement (Tables
Collaboration Agreement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Changes in the Accounts Receivable and Contract Liabilities | The following table presents changes in the Company’s accounts receivable and contract liabilities for the year ended December 31, 2021 (in thousands): Balance as of Balance as of December 31, 2020 Additions Deductions December 31, 2021 Accounts receivable $ — $ 478 $ (121 ) $ 357 Contract liabilities: Deferred revenue $ 5,000 $ — $ (962 ) $ 4,038 |
Schedule of Revenue Recognized | During the years ended December 31, 2021 and 2020, the Company recognized the following revenue (in thousands): Year Ended December 31, 2021 2020 Revenue recognized in the period from: Amounts included in deferred revenue at the beginning of the period $ 962 $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis and indicates the level of the fair value hierarchy used to determine such fair values (in thousands): Fair Value Measurements at December 31, 2021 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 11,490 $ — $ — $ 11,490 Investments: Commercial paper — 19,041 — 19,041 Corporate bonds — 21,941 — 21,941 Municipal bonds — 14,866 — 14,866 Canadian Government agency debt securities — 3,320 — 3,320 U.S. Government agency debt securities — 108,716 — 108,716 $ 11,490 $ 167,884 $ — $ 179,374 Fair Value Measurements at December 31, 2020 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 19,277 $ — $ — $ 19,277 Commercial paper — 1,000 — 1,000 Corporate bonds — 950 — 950 Canadian Government agency debt securities — 2,347 — 2,347 Investments: Commercial paper — 34,471 — 34,471 Corporate bonds — 26,857 — 26,857 Municipal bonds — 1,090 — 1,090 Canadian Government agency debt securities — 9,457 — 9,457 U.S. Government agency debt securities — 137,089 — 137,089 $ 19,277 $ 213,261 $ — $ 232,538 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Investments | Investments consisted of the following (in thousands): December 31, 2021 Amortized Cost Fair Value Due within one year or less $ 147,945 $ 147,897 Due after one year through three years 20,054 19,987 $ 167,999 $ 167,884 December 31, 2020 Amortized Cost Fair Value Due within one year or less $ 131,857 $ 131,882 Due after one year through three years 77,063 77,082 $ 208,920 $ 208,964 |
Amortized Cost and Estimated Fair Value of Investments by Contractual Maturity | As of December 31, 2021, the amortized cost and estimated fair value of investments, by contractual maturity, was as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Current Non- Current Commercial paper $ 19,041 $ 1 $ (1 ) $ 19,041 $ 19,041 $ — Corporate bonds 21,929 32 (20 ) 21,941 17,444 4,497 Municipal bonds 14,878 — (12 ) 14,866 14,866 — Canadian Government agency debt securities 3,287 33 — 3,320 3,320 — U.S. Government agency debt securities 108,864 — (148 ) 108,716 93,226 15,490 $ 167,999 $ 66 $ (181 ) $ 167,884 $ 147,897 $ 19,987 As of December 31, 2020, the amortized cost and estimated fair value of investments, by contractual maturity, was as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Current Non- Current Commercial paper $ 34,474 $ 1 $ (4 ) $ 34,471 $ 34,471 $ — Corporate bonds 26,855 22 (20 ) 26,857 9,446 17,411 Municipal bonds 1,090 — — 1,090 1,090 — Canadian Government agency debt securities 9,405 52 — 9,457 6,154 3,303 U.S. Government agency debt securities 137,096 8 (15 ) 137,089 80,721 56,368 $ 208,920 $ 83 $ (39 ) $ 208,964 $ 131,882 $ 77,082 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Schedule of Prepaid Expense and Other Assets Current Table | Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2021 2020 Prepaid external research and development expenses $ 5,030 $ 1,606 Prepaid insurance 2,144 2,067 Prepaid software subscriptions 302 146 Income tax receivable 308 — Interest receivable 350 504 Other receivable due from AstraZeneca 1,396 — Canadian harmonized sales tax receivable 178 290 Other 233 727 $ 9,941 $ 5,340 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Estimated Useful Life of Asset | Depreciation and amortization expense is recognized using the straight-line method over the estimated useful life of each asset, as follows: Estimated Useful Life Laboratory equipment 5 years Computer hardware and software 3 years Furniture and fixtures 5 years Leasehold improvements Shorter of lease term or 10 years Property and equipment, net consisted of the following (in thousands): December 31, 2021 2020 Laboratory equipment $ 3,327 $ 1,764 Computer hardware and software 171 218 Furniture and fixtures 70 70 Construction-in-progress 704 662 4,272 2,714 Less: Accumulated depreciation (1,305 ) (747 ) $ 2,967 $ 1,967 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): December 31, 2021 2020 Accrued employee compensation and benefits $ 3,301 $ 2,551 Accrued external research and development expenses 3,635 1,037 Accrued professional and consulting fees 627 1,023 Other — 48 $ 7,563 $ 4,659 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Fair Value of Options Estimated on Date of Grant Using Black-Scholes Option Pricing Model | The following table presents, on a weighted-average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted: Year Ended December 31, 2021 2020 Risk-free interest rate 0.91 % 0.66 % Expected term (in years) 6.1 6.0 Expected volatility 66.7 % 65.5 % Expected dividend yield 0 % 0 % |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity since December 31, 2020: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Outstanding as of December 31, 2020 5,607,244 $ 6.45 8.2 $ 36,628 Granted 3,196,400 9.79 Exercised (418,975 ) 1.19 Forfeited/cancelled (338,963 ) 11.40 Outstanding as of December 31, 2021 8,045,706 $ 7.84 8.2 $ 6,597 Vested and expected to vest as of December 31, 2021 7,909,106 $ 7.77 8.2 $ 6,597 Options exercisable as of December 31, 2021 3,133,096 $ 4.87 7.0 $ 5,470 |
Summary of Stock Based Compensation Expense | Share-based compensation expense was classified in the consolidated statements of operations and comprehensive loss as follows (in thousands): Year Ended December 31, 2021 2020 Research and development expenses $ 2,735 $ 908 General and administrative expenses 5,868 2,460 $ 8,603 $ 3,368 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (loss) Before Benefit (Provision) For Income Taxes | Income (loss) before benefit (provision) for income taxes consisted of the following (in thousands): Year Ended December 31, 2021 2020 Canada $ (82,327 ) $ (68,792 ) Foreign (U.S. and Ireland) 1,162 (6,930 ) Loss before benefit (provision) for income taxes $ (81,165 ) $ (75,722 ) |
Schedule of Components of Current and Deferred Income Taxes | The Company’s current and deferred income tax benefit (provision) consisted of the following (in thousands): Year Ended December 31, 2021 2020 Current income tax (provision): Canada $ (2 ) $ (9 ) Foreign (U.S. and Ireland) (871 ) (3,178 ) Total current income tax (provision) (873 ) (3,187 ) Deferred income tax benefit: Canada — — Foreign (U.S. and Ireland) 991 576 Total deferred income tax benefit 991 576 Total income tax benefit (provision) $ 118 $ (2,611 ) |
Schedule of Income Tax Provision based on Effective Income Tax Rate and Statutory Tax Rate | A reconciliation of the Canadian federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2021 2020 Canadian federal statutory income tax rate (26.5 )% (26.5 )% Foreign income tax rate differential (0.1 ) 0.1 Foreign income taxes (0.1 ) — Capital gains on intellectual property transfer from Ireland — 4.2 Capital losses on foreign exchange — (0.7 ) Other permanent differences (0.9 ) 2.6 Transfer of intellectual property to Canada — (1.7 ) Change in fair value of preferred share tranche right liability — 11.4 Change in fair value of preferred share warrant liability — 2.2 Income tax credits (2.3 ) (0.8 ) Share-based compensation 1.5 — Change in valuation allowance 28.3 12.6 Effective income tax rate (0.1 )% 3.4 % |
Schedule of Deferred Tax Assets | Net deferred tax assets consisted of the following (in thousands): December 31, 2021 2020 Deferred tax assets: Canadian net operating loss carryforwards $ 27,196 $ 12,246 Canadian capitalized research and development expenditure pool 5,268 2,945 Canadian research and development tax credit carryforwards 2,964 1,766 Intangibles 5,717 1,450 Deferred revenue 1,070 1,325 Reserves and accruals 2,648 1,728 Operating lease liabilities 1,642 — Other 286 — Total deferred tax assets 46,791 21,460 Valuation allowance (43,562 ) (20,598 ) Net deferred tax assets $ 3,229 $ 862 Deferred tax liabilities: Operating lease right-of-use assets (1,584 ) — Other — (209 ) Total deferred tax liabilities (1,584 ) (209 ) Net deferred tax assets $ 1,645 $ 653 |
Summary of Valuation Allowance | The Company’s valuation allowance increased during the years ended December 31, 2021 and 2020 due primarily to the generation of Canadian net operating loss carryforwards, as follows (in thousands): Year Ended December 31, 2021 2020 Valuation allowance as of beginning of year $ 20,598 $ 9,810 Increases recorded to income tax provision 22,964 9,550 Increases recorded to equity — 1,238 Valuation allowance as of end of year $ 43,562 $ 20,598 |
Reconciliation of Changes in Unrecognized Tax Benefits | Changes in the Company’s unrecognized tax benefits from uncertain tax positions consisted of the following (in thousands): December 31, 2021 2020 Unrecognized tax benefits as of beginning of year $ 254 $ 254 Additions for tax positions of prior years — — Unrecognized tax benefits as of end of year $ 254 $ 254 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss per Share | Basic and diluted net loss per share attributable to common shareholders was calculated as follows (in thousands, except share and per share amounts): Year Ended December 31, 2021 2020 Numerator: Net loss $ (81,047 ) $ (78,333 ) Dividends paid to preferred shareholders in the form of warrants issued — (1,382 ) Net loss attributable to common shareholders $ (81,047 ) $ (79,715 ) Denominator: Weighted-average common shares outstanding—basic and diluted 42,598,843 22,033,269 Net loss per share attributable to common shareholders—basic and diluted $ (1.90 ) $ (3.62 ) |
Summary of Potential Common Shares Excluded from Calculation of Diluted Net Loss per Share | The Company’s potentially dilutive securities, which include stock options, convertible preferred shares, preferred exchangeable shares and common share warrants, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common shareholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common shareholders for the periods indicated because including them would have had an anti-dilutive effect: Year Ended December 31, 2021 2020 Options to purchase common shares 8,045,706 5,607,244 Warrants to purchase common shares 651,816 651,816 8,697,522 6,259,060 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Component of Operating Lease Cost | The components of operating lease cost, which are included within operating expenses in the accompanying consolidated statements of operations and comprehensive loss, are as follows (in thousands): Year Ended December 31, 2021 Operating lease cost $ 1,393 Variable lease cost 25 Total lease cost $ 1,418 |
Summary of Supplemental Information of Operating Lease | The following table summarizes supplemental information for the Company’s operating leases: As of December 31, 2021 Weighted-average remaining lease term (in years) 5.2 Weighted average discount rate 4.9 % Cash paid for amounts included in the measurement of lease liabilities (in thousands) $ 1,146 |
Summary of Future Maturities of Operating Lease Liabilities | As of December 31, 2021, the future maturities of operating lease liabilities are as follows (in thousands): Year Ending December 31, 2022 $ 1,245 2023 1,463 2024 1,499 2025 1,537 2026 1,469 Thereafter 425 Total lease payments $ 7,638 Less: imputed interest (916 ) Total lease liabilities $ 6,722 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments due under operating leases as of December 31, 2020 were as follows (in thousands): Year Ending December 31, 2021 $ 1,127 2022 1,158 2023 1,190 2024 1,221 2025 1,253 Thereafter 361 Total $ 6,310 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Recognized Expenses in Connection with Services Performed Under Master Services Agreement and Supply Agreement | The Company recognized expenses in connection with the services performed in the normal course of business under the Master Services Agreement and the Supply Agreement in the consolidated statements of operations and comprehensive loss as follows (in thousands): Year Ended December 31, 2021 2020 Research and development expenses $ 1,724 $ 1,140 General and administrative expenses 44 57 $ 1,768 $ 1,197 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Geographic Areas Long Lived Assets [Abstract] | |
Schedule of Long-lived Assets by Geographic Areas | The Company has operating companies in the United States and Canada. Information about the Company’s long-lived assets, consisting solely of property and equipment, net, by geographic region was as follows (in thousands): December 31, 2021 2020 United States $ 541 $ 103 Canada 2,426 1,864 $ 2,967 $ 1,967 |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2020 | Jun. 25, 2020 | Jun. 19, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2020 |
Subsidiary Sale Of Stock [Line Items] | ||||||
Formation and incorporation date | Dec. 31, 2014 | |||||
Reverse share split, description | one-for-5.339 | |||||
Net loss | $ 81,047 | $ 78,333 | ||||
Accumulated deficit | $ 194,250 | $ 113,203 | $ (100) | |||
Initial Public Offering [Member] | Common Shares [Member] | ||||||
Subsidiary Sale Of Stock [Line Items] | ||||||
Shares issued and sold, date | Jun. 25, 2020 | |||||
Shares issued and sold | 12,500,000 | 12,500,000 | ||||
Shares issued and sold, per share | $ 17 | $ 17 | ||||
Net proceeds of common shares | $ 193,100 | $ 193,100 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jun. 02, 2020 | Jan. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2019 |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Foreign currency transaction gains | $ 200,000 | $ 600,000 | ||||
Letters of credit | $ 1,500,000 | |||||
Restricted cash, current | 669,000 | 425,000 | ||||
Restricted cash | 1,222,000 | 1,466,000 | ||||
Cash, cash equivalents and restricted cash | 54,800,000 | 92,400,000 | ||||
Cash and cash equivalents | 52,900,000 | 90,500,000 | ||||
Restricted Cash | 1,900,000 | 1,900,000 | ||||
Deferred offering costs | 300,000 | 0 | ||||
Issuance of common shares upon closing of initial public offering, offering costs and underwriter fees | 19,447,000 | |||||
Change in fair value of preferred share tranche right liability | $ (32,722,000) | |||||
Preferred Class B [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Preferred stock shares issued | 36,806,039 | |||||
Preferred stock price per share | $ 1.5154 | $ 1.5154 | $ 1.5154 | |||
Aggregate gross proceeds | $ 55,800,000 | $ 10,000,000 | $ 45,800,000 | |||
Change in fair value of preferred share tranche right liability | 32,700,000 | |||||
Preferred share tranche right liability | $ 1,100,000 | 39,600,000 | ||||
Class B Special Voting Shares [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Preferred stock shares issued | 4,437,189 | |||||
Preferred stock price per share | $ 0.000001 | |||||
Class B Preferred Exchangable Shares [Member] | Ireland Subsidiary | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Preferred stock shares issued | 4,437,189 | |||||
Preferred stock price per share | $ 1.5154 | |||||
Aggregate gross proceeds | $ 62,500,000 | |||||
Class B Convertible Preferred Shares [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Preferred share tranche right liability | $ 35,300,000 | |||||
Class B Convertible Preferred Shares [Member] | Ireland Subsidiary | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Preferred stock shares issued | 4,437,189 | 4,437,189 | 28,874,378 | 29,747,987 | ||
Preferred stock price per share | $ 0.000001 | $ 1.5154 | $ 0.001 | $ 0.001 | ||
Increase in noncontrolling interest | $ 4,300,000 | |||||
Astra Zeneca U K Limited | Strategic Collaboration Agreement [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Revenue under collaboration agreement | 1,400,000 | |||||
Common Shares [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Issuance of common shares upon closing of initial public offering, offering costs and underwriter fees | $ 4,600,000 | |||||
Collateralized Securities [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Restricted cash, current | 300,000 | |||||
Restricted cash | 1,200,000 | |||||
Guaranteed Investment Certificate [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Restricted cash, current | 100,000 | 100,000 | ||||
Collateralize Credit Cards [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Restricted cash, current | $ 300,000 | $ 300,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Life of Asset (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Laboratory Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture And Fixture [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Leassehold Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | Shorter of lease term or 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Cumulative Effect of Adoption of ASC 842 on Company's Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Mar. 16, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Summary Of Significant Accounting Policies [Line Items] | ||||
Prepaid expenses and other current assets | $ 9,941 | $ 5,340 | ||
Operating lease right-of-use assets | 6,486 | $ 900 | ||
Total assets | 252,271 | 310,676 | ||
Operating lease liabilities | 1,215 | |||
Deferred rent, net of current portion | 11 | |||
Operating lease liabilities, net of current portion | 5,507 | |||
Total liabilities | $ 20,815 | 16,163 | ||
Impact of Adoption [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Prepaid expenses and other current assets | (26) | |||
Operating lease right-of-use assets | 5,664 | |||
Total assets | 5,638 | |||
Operating lease liabilities | 959 | |||
Deferred rent, net of current portion | (11) | |||
Operating lease liabilities, net of current portion | 4,690 | |||
Total liabilities | $ 5,638 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Prepaid expenses and other current assets | $ 5,314 | |||
Operating lease right-of-use assets | 5,664 | |||
Total assets | 316,314 | |||
Operating lease liabilities | 959 | |||
Operating lease liabilities, net of current portion | 4,690 | |||
Total liabilities | $ 21,801 |
Collaboration Agreement - Addit
Collaboration Agreement - Additional Information (Detail) | Oct. 30, 2020USD ($)collaboration | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Research and development | $ 56,357,000 | $ 17,191,000 | |
Prepaid expenses and other current assets | 9,941,000 | 5,340,000 | |
Deferred revenue, current | 1,538,000 | 1,000,000 | |
Deferred revenue, non-current | 2,500,000 | $ 4,000,000 | |
Astra Zeneca U K Limited | Strategic Collaboration Agreement [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Maximum amount for milestones payments to other party | $ 145,000,000 | ||
Research and development | 3,100,000 | ||
Research and development expense offset | 1,600,000 | ||
Prepaid expenses and other current assets | 1,400,000 | ||
Upfront payment received | 5,000,000 | ||
Maximum amount of payments to be received for development milestones | 40,000,000 | ||
Deferred revenue, current | 1,500,000 | ||
Deferred revenue, non-current | $ 2,500,000 | ||
Astra Zeneca U K Limited | Strategic Collaboration Agreement [Member] | Novel TATs And Combination Therapies [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Number of collaborative areas | collaboration | 2 |
Collaboration Agreement - Sched
Collaboration Agreement - Schedule of Changes in the Accounts Receivable and Contract Liabilities (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Contract assets: | |
Additions | $ 478 |
Deductions | (121) |
Ending balance | 357 |
Contract liabilities: | |
Beginning balance | 5,000 |
Deductions | (962) |
Ending balance | $ 4,038 |
Collaboration Agreement - Sch_2
Collaboration Agreement - Schedule of Revenue Recognized (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Contract With Customer Asset And Liability [Abstract] | |
Amounts included in deferred revenue at the beginning of the period | $ 962 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments | ||
Investments | $ 179,374 | $ 232,538 |
Corporate Bond Securities [Member] | ||
Cash equivalents | ||
Cash equivalents | 950 | |
Investments | ||
Investments | 21,941 | 26,857 |
Municipal Bonds [Member] | ||
Investments | ||
Investments | 14,866 | 1,090 |
Level 1 | ||
Investments | ||
Investments | 11,490 | 19,277 |
Level 2 | ||
Investments | ||
Investments | 167,884 | 213,261 |
Level 2 | Corporate Bond Securities [Member] | ||
Cash equivalents | ||
Cash equivalents | 950 | |
Investments | ||
Investments | 21,941 | 26,857 |
Level 2 | Municipal Bonds [Member] | ||
Investments | ||
Investments | 14,866 | 1,090 |
Money Market Funds [Member] | ||
Cash equivalents | ||
Cash equivalents | 11,490 | 19,277 |
Money Market Funds [Member] | Level 1 | ||
Cash equivalents | ||
Cash equivalents | 11,490 | 19,277 |
Commercial Paper [Member] | ||
Cash equivalents | ||
Cash equivalents | 1,000 | |
Investments | ||
Investments | 19,041 | 34,471 |
Commercial Paper [Member] | Level 2 | ||
Cash equivalents | ||
Cash equivalents | 1,000 | |
Investments | ||
Investments | 19,041 | 34,471 |
Canadian Government Agency Debt Securities [Member] | ||
Cash equivalents | ||
Cash equivalents | 2,347 | |
Investments | ||
Investments | 3,320 | 9,457 |
Canadian Government Agency Debt Securities [Member] | Level 2 | ||
Cash equivalents | ||
Cash equivalents | 2,347 | |
Investments | ||
Investments | 3,320 | 9,457 |
U.S. Government Agency Debt Securities [Member] | ||
Investments | ||
Investments | 108,716 | 137,089 |
U.S. Government Agency Debt Securities [Member] | Level 2 | ||
Investments | ||
Investments | $ 108,716 | $ 137,089 |
Investments - Schedule of Inves
Investments - Schedule of Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | ||
Amortized Cost, Due within one year or less | $ 147,945 | $ 131,857 |
Amortized Cost, Due after one year through three years | 20,054 | 77,063 |
Amortized Cost, Investments | 167,999 | 208,920 |
Available-for-sale securities, debt maturities, Fair Value [Abstract] | ||
Fair Value, Due within one year or less | 147,897 | 131,882 |
Fair Value, Due after one year through three years | 19,987 | 77,082 |
Fair value, Investments | $ 167,884 | $ 208,964 |
Investments - Amortized Cost an
Investments - Amortized Cost and Estimated Fair Value of Investments by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Investments, Amortized Cost | $ 167,999 | $ 208,920 |
Available-for-sale Investments, Gross Unrealized Gains | 66 | 83 |
Available-for-sale Investments, Gross Unrealized Losses | (181) | (39) |
Available-for-sale Investments, Fair Value | 167,884 | 208,964 |
Available-for-sale Investments, Current | 147,897 | 131,882 |
Available-for-sale Investments, Non Current | 19,987 | 77,082 |
Commercial Paper [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Investments, Amortized Cost | 19,041 | 34,474 |
Available-for-sale Investments, Gross Unrealized Gains | 1 | 1 |
Available-for-sale Investments, Gross Unrealized Losses | (1) | (4) |
Available-for-sale Investments, Fair Value | 19,041 | 34,471 |
Available-for-sale Investments, Current | 19,041 | 34,471 |
Corporate Bond Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Investments, Amortized Cost | 21,929 | 26,855 |
Available-for-sale Investments, Gross Unrealized Gains | 32 | 22 |
Available-for-sale Investments, Gross Unrealized Losses | (20) | (20) |
Available-for-sale Investments, Fair Value | 21,941 | 26,857 |
Available-for-sale Investments, Current | 17,444 | 9,446 |
Available-for-sale Investments, Non Current | 4,497 | 17,411 |
Municipal Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Investments, Amortized Cost | 14,878 | 1,090 |
Available-for-sale Investments, Gross Unrealized Losses | (12) | |
Available-for-sale Investments, Fair Value | 14,866 | 1,090 |
Available-for-sale Investments, Current | 14,866 | 1,090 |
Canadian Government Agency Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Investments, Amortized Cost | 3,287 | 9,405 |
Available-for-sale Investments, Gross Unrealized Gains | 33 | 52 |
Available-for-sale Investments, Fair Value | 3,320 | 9,457 |
Available-for-sale Investments, Current | 3,320 | 6,154 |
Available-for-sale Investments, Non Current | 3,303 | |
U.S. Government Agency Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale Investments, Amortized Cost | 108,864 | 137,096 |
Available-for-sale Investments, Gross Unrealized Gains | 8 | |
Available-for-sale Investments, Gross Unrealized Losses | (148) | (15) |
Available-for-sale Investments, Fair Value | 108,716 | 137,089 |
Available-for-sale Investments, Current | 93,226 | 80,721 |
Available-for-sale Investments, Non Current | $ 15,490 | $ 56,368 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid external research and development expenses | $ 5,030 | $ 1,606 |
Prepaid insurance | 2,144 | 2,067 |
Prepaid software subscriptions | 302 | 146 |
Income tax receivable | 308 | |
Interest receivable | 350 | 504 |
Other receivable due from AstraZeneca | 1,396 | |
Canadian harmonized sales tax receivable | 178 | 290 |
Other | 233 | 727 |
Prepaid expenses and other current assets | $ 9,941 | $ 5,340 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment gross | $ 4,272 | $ 2,714 |
Less: Accumulated depreciation | (1,305) | (747) |
Property and equipment, Net | 2,967 | 1,967 |
Laboratory Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment gross | 3,327 | 1,764 |
Computer Hardware And Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment gross | 171 | 218 |
Furniture And Fixture [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment gross | 70 | 70 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment gross | $ 704 | $ 662 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization expense | $ 0.6 | $ 0.5 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued employee compensation and benefits | $ 3,301 | $ 2,551 |
Accrued external research and development expenses | 3,635 | 1,037 |
Accrued professional and consulting fees | 627 | 1,023 |
Other | 48 | |
Accrued expenses | $ 7,563 | $ 4,659 |
Equity - Additional Information
Equity - Additional Information (Detail) | Jul. 02, 2021USD ($) | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 25, 2020USD ($)$ / sharesshares | Jun. 19, 2020 | Jun. 02, 2020USD ($)$ / sharesshares | Jan. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Aug. 17, 2020shares |
Class Of Stock [Line Items] | ||||||||||
Reverse share split, description | one-for-5.339 | |||||||||
Stockholders equity note stock split conversion ratio | 0.187 | |||||||||
Common stock, no par value | $ / shares | ||||||||||
Common stock, voting rights description | Each common share entitles the holder to one vote on all matters submitted to a vote of the Company’s shareholders. | |||||||||
Cash dividends | $ 0 | |||||||||
Issuance of preferred shares and tranche right, issuance costs | 275,000 | $ 4,572,000 | ||||||||
Number of shares issuable upon exercise of outstanding warrants (in shares) | shares | 749,197 | |||||||||
Weighted-average exercise price per share (in dollars per share) | $ / shares | $ 8.10 | |||||||||
Expiration period | 2 years | |||||||||
Preferred share warrant liability | $ 1,400,000 | |||||||||
Decrease in additional Paid in Capital | 1,300,000 | |||||||||
Accumulated deficit | $ 100,000 | $ (194,250,000) | $ (113,203,000) | |||||||
Common stock, shares issued | shares | 43,073,727 | 41,725,797 | ||||||||
Preferred Class B [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Sold and issued of common stock | shares | 36,806,039 | 6,598,917 | 30,207,129 | |||||||
Preferred stock price per share | $ / shares | $ 1.5154 | $ 1.5154 | $ 1.5154 | |||||||
Aggregate gross proceeds | $ 55,800,000 | $ 10,000,000 | $ 45,800,000 | |||||||
Purchase an aggregate preferred share | 20,000,000 | |||||||||
Issuance of preferred shares and tranche right, issuance costs | 100,000 | |||||||||
Preferred share tranche right liability | $ 1,100,000 | $ 39,600,000 | ||||||||
Loss on tranche liability contract | $ 32,700,000 | |||||||||
Preferred shares tranche liability | $ 39,600,000 | |||||||||
Preferred stock shares issued | shares | 36,806,039 | |||||||||
Preferred Class B [Member] | Canada Pension Plan Investment Board | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Sold and issued of common stock | shares | 6,598,917 | |||||||||
Preferred stock price per share | $ / shares | $ 1.5154 | |||||||||
Class B Convertible Preferred Shares [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Stockholders equity note stock split conversion ratio | 0.05339 | |||||||||
Preferred share tranche right liability | $ 35,300,000 | |||||||||
Preferred shares tranche liability | $ 35,300,000 | |||||||||
Class B Convertible Preferred Shares [Member] | Ireland Subsidiary [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Preferred stock price per share | $ / shares | $ 0.000001 | $ 1.5154 | $ 0.001 | $ 0.001 | ||||||
Increase in noncontrolling interest | $ 4,300,000 | |||||||||
Preferred stock shares issued | shares | 4,437,189 | 4,437,189 | 28,874,378 | 29,747,987 | ||||||
Class B Convertible Preferred Shares and Class B Preferred Share Tranche Right [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Issuance of preferred shares and tranche right, issuance costs | $ 99,000 | |||||||||
Number of shares issuable upon exercise of outstanding warrants (in shares) | shares | 3,126,391 | |||||||||
Weighted-average exercise price per share (in dollars per share) | $ / shares | $ 1.5154 | |||||||||
Class B Preferred Exchangable Shares [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Number of shares issuable upon exercise of outstanding warrants (in shares) | shares | 873,609 | |||||||||
Weighted-average exercise price per share (in dollars per share) | $ / shares | $ 1.5154 | |||||||||
Class B Preferred Exchangable Shares [Member] | Ireland Subsidiary [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Preferred stock price per share | $ / shares | $ 1.5154 | |||||||||
Aggregate gross proceeds | $ 62,500,000 | |||||||||
Preferred stock shares issued | shares | 4,437,189 | |||||||||
Open Market Sales Agreement [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Net proceeds of common shares | $ 0 | |||||||||
Open Market Sales Agreement [Member] | Maximum [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Net proceeds of common shares | $ 100,000,000 | |||||||||
Compensation percentage of gross proceeds | 3.00% | |||||||||
Class B Special Voting Shares [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Preferred stock price per share | $ / shares | $ 0.000001 | |||||||||
Class B Special Voting Shares [Member] | Class B Convertible Preferred Shares [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Stockholders equity note stock split conversion ratio | 0.05339 | |||||||||
Preferred stock price per share | $ / shares | $ 1.5154 | $ 0.000001 | $ 0.000001 | $ 0.000001 | ||||||
Aggregate gross proceeds | $ 6,700,000 | $ 6,700,000 | ||||||||
Preferred stock shares issued | shares | 4,437,189 | 4,437,189 | 28,874,378 | 29,747,987 | ||||||
Warrant Liability [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Loss related to increase in fair value of the Preferred Share Warrants | $ 6,400,000 | |||||||||
Common share warrants, exercised | shares | 97,381 | |||||||||
Common stock, shares issued | shares | 38,340 | |||||||||
Number of warrants cancelled | shares | 59,041 | |||||||||
Common share warrants remained outstanding | shares | 651,816 | |||||||||
Initial Public Offering [Member] | Common Shares [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Shares issued and sold, date | Jun. 25, 2020 | |||||||||
Shares issued and sold | shares | 12,500,000 | 12,500,000 | ||||||||
Shares issued and sold, per share | $ / shares | $ 17 | $ 17 | ||||||||
Net proceeds of common shares | $ 193,100,000 | $ 193,100,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jun. 18, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Intrinsic value for stock options exercised | $ 3.4 | $ 0.2 | |
Weighted average grant-date fair value of stock options granted | $ 5.87 | $ 6.91 | |
Aggregate unrecognized share-based compensation expense | $ 24.6 | ||
Unrecognized share-based compensation expense, weighted average period expects for recognition | 2 years 8 months 12 days | ||
Outside Stock Option Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of options, granted | 1,018,800 | ||
2020 Stock Option and incentive plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock reserved for future issuance | 6,156,825 | 4,273,350 | |
Stock incentive plan description | cumulatively increased on January 1, 2021 and shall be cumulatively increased each January 1 thereafter by 4% of the number of the Company’s common shares outstanding on the immediately preceding December 31 or such lesser number of shares determined by the Company’s compensation committee of the board of directors. | ||
Annual percentage increase in common stock reserved for future issuance | 4.00% | ||
Number of shares remained available for future grant | 2,479,682 | ||
2020 Employee Share Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock reserved for future issuance | 867,427 | 450,169 | |
Stock incentive plan description | the number of common shares that may be issued under the ESPP was automatically increased on January 1, 2021 and shall be automatically increased each January 1 thereafter by the lesser of (i) 900,338 common shares, (ii) 1% of the number of the Company’s common shares outstanding on the immediately preceding December 31 and (iii) such lesser number of shares as determined by the Company’s compensation committee of the board of directors | ||
Annual percentage increase in common stock reserved for future issuance | 1.00% | ||
Maximum annual increase in common stock reserved for future issuance | 900,338 | ||
Shares, issued | 15,596 | ||
Performance Based Vesting [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Aggregate unrecognized share-based compensation expense | $ 1 |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value of Options Estimated on Date of Grant Using Black-Scholes Option Pricing Model (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rate | 0.91% | 0.66% |
Expected term (in years) | 6 years 1 month 6 days | 6 years |
Expected volatility | 66.70% | 65.50% |
Expected dividend yield | 0.00% | 0.00% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Shares, Beginning balance | 5,607,244 | |
Number of Shares, Granted | 3,196,400 | |
Number of Shares, Exercised | (418,975) | |
Number of Shares, Forfeited/cancelled | (338,963) | |
Number of Shares, Ending balance | 8,045,706 | 5,607,244 |
Number of Shares, Options vested and expected to vest | 7,909,106 | |
Number of Shares, Options exercisable | 3,133,096 | |
Weighted Average Exercise Price, Beginning balance | $ 6.45 | |
Weighted Average Exercise Price, Granted | 9.79 | |
Weighted Average Exercise Price, Exercised | 1.19 | |
Weighted Average Exercise Price, Forfeited/cancelled | 11.40 | |
Weighted Average Exercise Price, Ending balance | 7.84 | $ 6.45 |
Weighted Average Exercise Price, Options vested and expected to vest | 7.77 | |
Weighted Average Exercise Price, Options exercisable | $ 4.87 | |
Weighted-Average Remaining Contractual Term, Outstanding | 8 years 2 months 12 days | 8 years 2 months 12 days |
Weighted Average Remaining Contractual Term, Options vested and expected to vest | 8 years 2 months 12 days | |
Weighted Average Remaining Contractual Term, Options exercisable | 7 years | |
Aggregate Intrinsic Value | $ 6,597 | $ 36,628 |
Aggregate Intrinsic Value, Options vested and expected to vest | 6,597 | |
Aggregate Intrinsic Value, Options exercisable | $ 5,470 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 8,603 | $ 3,368 |
Research and Development Expense [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 2,735 | 908 |
General and Administrative Expense [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 5,868 | $ 2,460 |
License Agreements and Asset _2
License Agreements and Asset Acquisitions - Additional Information (Detail) € in Millions | Aug. 12, 2021CAD ($) | Mar. 01, 2021USD ($) | Mar. 01, 2021EUR (€)shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2021CAD ($)shares |
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Research and development | $ 56,357,000 | $ 17,191,000 | ||||
Assets held | $ 252,271,000 | $ 310,676,000 | ||||
Common stock, shares issued | shares | 43,073,727 | 41,725,797 | 43,073,727 | |||
CPDC [Member] | Research and License Agreement [Member] | Research and Development Expense [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Milestone payment | $ 0 | $ 0 | ||||
ImmunoGen [Member] | Research and License Agreement [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Upfront license fee paid | 200,000 | |||||
ImmunoGen [Member] | Research and License Agreement [Member] | Maximum [Member] | Development And Regulatory Milestone [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Performance milestone payments based on successful development | 15,000,000 | |||||
ImmunoGen [Member] | Research and License Agreement [Member] | Maximum [Member] | Sales Based Milestone [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Performance milestone payments based on successful development | 35,000,000 | |||||
ImmunoGen [Member] | Research and License Agreement [Member] | Research and Development Expense [Member] | Development And Regulatory Milestone [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Upfront license fee paid | 0 | 0 | ||||
MediaPharma [Member] | Asset Acquisition and License Agreement [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Upfront license fee paid | 200,000 | |||||
Research and development | 0 | 0 | ||||
MediaPharma [Member] | Asset Acquisition and License Agreement [Member] | Maximum [Member] | Development And Regulatory Milestone [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Performance milestone payments based on successful development | 1,500,000 | |||||
MediaPharma [Member] | Asset Acquisition and License Agreement [Member] | Maximum [Member] | Sales Based Milestone [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Performance milestone payments based on successful development | 23,000,000 | |||||
Rainier Therapeutics, Inc. [Member] | Asset Acquisition and License Agreement [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Milestone payment | 2,000,000 | |||||
Additional amount payable under agreement | $ 3,500,000 | |||||
Non-voting common stock, issued | shares | 313,359 | 313,359 | ||||
Rainier Therapeutics, Inc. [Member] | Asset Acquisition and License Agreement [Member] | Development And Regulatory Milestone [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Performance milestone payments based on successful development | $ 22,500,000 | |||||
Non-voting common stock, issued | shares | 156,679 | 156,679 | ||||
Rainier Therapeutics, Inc. [Member] | Asset Acquisition and License Agreement [Member] | Sales Based Milestone [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Performance milestone payments based on successful development | $ 42,000,000 | |||||
Rainier Therapeutics, Inc. [Member] | Asset Acquisition and License Agreement [Member] | Phase1 | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Non-voting common stock, issued | shares | 156,679 | 156,679 | ||||
Rainier Therapeutics, Inc. [Member] | Asset Acquisition and License Agreement [Member] | Maximum [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Potential future payment as percentage of amount the Company receives under sublicense agreements | 30.00% | 30.00% | ||||
Rainier Therapeutics, Inc. [Member] | Asset Acquisition and License Agreement [Member] | Minimum [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Potential future payment as percentage of amount the Company receives under sublicense agreements | 10.00% | 10.00% | ||||
Rainier Therapeutics, Inc. [Member] | Asset Acquisition and License Agreement [Member] | Research and Development Expense [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Upfront license fee paid | 1,000,000 | |||||
Research and development | $ 6,100,000 | |||||
Additional amount payable under agreement | $ 3,500,000 | |||||
Non-voting common stock, issued | shares | 313,359 | 313,359 | ||||
Payment of research and development expenses | $ 3,500,000 | |||||
Genentech, Inc. [Member] | Asset Acquisition and License Agreement [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Research and development | 0 | $ 0 | ||||
Genentech, Inc. [Member] | Asset Acquisition and License Agreement [Member] | Maximum [Member] | Sales Based Milestone [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Performance milestone payments based on successful development | 44,000,000 | |||||
TRIUMF Innovations Inc. [Member] | Asset Acquisition and License Agreement [Member] | Accounts Payable [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Total milestone payment achieved | 2,300,000 | $ 3,000,000 | ||||
TRIUMF Innovations Inc. [Member] | Asset Acquisition and License Agreement [Member] | Development And Regulatory Milestone [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Performance milestone payments based on successful development | 5,000,000 | |||||
TRIUMF Innovations Inc. [Member] | Asset Acquisition and License Agreement [Member] | Maximum [Member] | Actinium-225 [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Additional financial investment | $ 15,000,000 | |||||
TRIUMF Innovations Inc. [Member] | Asset Acquisition and License Agreement [Member] | Minimum [Member] | Actinium-225 [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Percentage of annual requirements | 50.00% | |||||
TRIUMF Innovations Inc. [Member] | Asset Acquisition and License Agreement [Member] | Research and Development Expense [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Amortization expenses | 2,000,000 | |||||
TRIUMF Innovations Inc. [Member] | Amended Collaboration Agreement [Member] | Accounts Payable [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Total milestone payment achieved | 3,900,000 | $ 5,000,000 | ||||
TRIUMF Innovations Inc. [Member] | Amended Collaboration Agreement [Member] | Research and Development Expense [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Amortization expenses | 200,000 | |||||
TRIUMF Innovations Inc. [Member] | Collaboration Agreement and Amended Collaboration Agreement [Member] | Prepaid Expenses and Other Current Assets [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Milestone payment | 1,700,000 | |||||
TRIUMF Innovations Inc. [Member] | Collaboration Agreement and Amended Collaboration Agreement [Member] | Other Non-current Assets [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Milestone payment | 2,300,000 | |||||
NewCo [Member] | Asset Acquisition and License Agreement [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Assets held | 0 | |||||
Ipsen Pharma S A S | Asset Acquisition and License Agreement [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Upfront license fee paid | $ 800,000 | € 0.6 | ||||
Research and development | $ 6,400,000 | |||||
Non-voting common stock, issued | shares | 600,000 | 600,000 | ||||
Common stock, shares issued | shares | 600,000 | |||||
Additional amount to be paid upon achievment of development and regulatory milestone | € | € 67.5 | |||||
Additional amount to be paid on net sales | € | 350 | |||||
Third party licensor fees payable | € | € 70 | |||||
Acquisition of inventory | $ 800,000 | |||||
Ipsen Pharma S A S | Asset Acquisition and License Agreement [Member] | Maximum [Member] | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Decrease in percentage of royalties | 50.00% |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Benefit (Provision) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Canada | $ (82,327) | $ (68,792) |
Foreign (U.S. and Ireland) | 1,162 | (6,930) |
Loss before benefit (provision) for income taxes | $ (81,165) | $ (75,722) |
Income Taxes - Provision for Cu
Income Taxes - Provision for Current and Deferred Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current income tax (provision): | ||
Canada | $ (2) | $ (9) |
Foreign (U.S. and Ireland) | (871) | (3,178) |
Total current income tax (provision) | (873) | (3,187) |
Deferred income tax benefit: | ||
Foreign (U.S. and Ireland) | 991 | 576 |
Total deferred income tax benefit | 991 | 576 |
Total income tax benefit (provision) | $ 118 | $ (2,611) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Provision based on Effective Income Tax Rate and Statutory Tax Rate (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Canadian federal statutory income tax rate | (26.50%) | (26.50%) |
Foreign income tax rate differential | $ (100) | $ 100 |
Foreign income taxes | (100) | |
Capital gains on intellectual property transfer from Ireland | 4,200 | |
Capital losses on foreign exchange | (700) | |
Other permanent differences | (900) | 2,600 |
Transfer of intellectual property to Canada | (1,700) | |
Change in fair value of preferred share tranche right liability | 11,400 | |
Change in fair value of preferred share warrant liability | 2,200 | |
Income tax credits | (2,300) | (800) |
Share-based compensation | 1,500 | |
Change in valuation allowance | $ 28,300 | $ 12,600 |
Effective income tax rate | (0.10%) | 3.40% |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | |||
Canadian net operating loss carryforwards | $ 27,196 | $ 12,246 | |
Canadian capitalized research and development expenditure pool | 5,268 | 2,945 | |
Canadian research and development tax credit carryforwards | 2,964 | 1,766 | |
Intangibles | 5,717 | 1,450 | |
Deferred revenue | 1,070 | 1,325 | |
Reserves and accruals | 2,648 | 1,728 | |
Operating lease liabilities | 1,642 | ||
Other | 286 | ||
Total deferred tax assets | 46,791 | 21,460 | |
Valuation allowance | (43,562) | (20,598) | $ (9,810) |
Net deferred tax assets | 3,229 | 862 | |
Deferred tax liabilities: | |||
Operating lease right-of-use assets | (1,584) | ||
Other | (209) | ||
Total deferred tax liabilities | (1,584) | (209) | |
Net deferred tax assets | $ 1,645 | $ 653 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 102.6 | |
Operating loss carryforwards expiration date | Dec. 31, 2035 | |
Tax credit carryforward amount | $ 3.8 | |
Tax credit carryforward expiration date | Dec. 31, 2037 | |
Capitalised research and development carryforward amount | $ 19.9 | |
Liabilities on uncertain tax position | 0.3 | $ 0.3 |
Maximum [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Accrued interest on uncertain tax position | $ 0.1 | $ 0.1 |
U.S. | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforward expiration date | Dec. 31, 2037 | |
State tax credits amount | $ 0.1 |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Valuation allowance as of beginning of year | $ 20,598 | $ 9,810 |
Increases recorded to income tax provision | 22,964 | 9,550 |
Increases recorded to equity | 1,238 | |
Valuation allowance as of end of year | $ 43,562 | $ 20,598 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Changes in Company's Unrecogniozed Tax Benefit from Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits as of beginning of year | $ 254 | $ 254 |
Additions for tax positions of prior years | 0 | 0 |
Unrecognized tax benefits as of end of year | $ 254 | $ 254 |
Net Loss per Share - Basic and
Net Loss per Share - Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | ||
Net loss | $ (81,047) | $ (78,333) |
Dividends paid to preferred shareholders in the form of warrants issued | (1,382) | |
Net loss attributable to common shareholders | $ (81,047) | $ (79,715) |
Denominator: | ||
Weighted-average common shares outstanding—basic and diluted | 42,598,843 | 22,033,269 |
Net loss per share attributable to common shareholders—basic and diluted | $ (1.90) | $ (3.62) |
Net Loss per Share - Summary of
Net Loss per Share - Summary of Potential Common Shares Excluded from Calculation of Diluted Net Loss per Share (Detail) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from calculation of diluted net loss per share | 8,697,522 | 6,259,060 |
Options to purchase common shares [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from calculation of diluted net loss per share | 8,045,706 | 5,607,244 |
Warrant Liability [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potential common shares excluded from calculation of diluted net loss per share | 651,816 | 651,816 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | Jun. 01, 2021 | Mar. 16, 2021 | Jul. 31, 2020 | Oct. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee Lease Description [Line Items] | ||||||
Non-cancelable minimum purchase commitments | $ 100 | $ 400 | ||||
Lease expiration date | Jul. 31, 2023 | |||||
Operating lease expiration period | Sep. 30, 2037 | Feb. 28, 2026 | Aug. 31, 2030 | |||
Operating lease additional lease period | 5 years | 5 years | ||||
Operating lease termination notice period | 12 months | |||||
Operating lease, option to extend by lessee | false | |||||
Lessee, operating lease, description | In August 2018, the Company entered into an operating lease for office space in Hamilton, Ontario. This lease was amended in September 2020 (“New Lease Commencement Date”) and expires in August 2030 with a termination option upon twelve months written notice any time after the fifth anniversary of the New Lease Commencement Date. If the termination option is not exercised, the Company may exercise a renewal option to extend the term for an additional five-year period to August 2035. As the Company is not reasonably certain to extend the lease beyond the allowable termination date, the lease term was determined to end in August 2026 for the purposes of measuring this lease | |||||
Restricted cash | $ 1,900 | $ 1,900 | ||||
Restricted cash, current | 669 | 425 | ||||
Restricted cash, noncurrent | $ 1,222 | 1,466 | ||||
Allowance for lease improvements | $ 200 | |||||
Lease improvements and expansions, description | The rental payments for the Expansion Space commenced on January 1, 2022. | |||||
Lease, option to extend | The Company currently expects the rent for the manufacturing facility, which is under construction, to commence in October 2022, approximately two months after the anticipated delivery date of the premises. The Company currently expects the lease end date for the manufacturing facility to be in September 2037, with a five-year renewal option. | The lease end date for the Original Premises and the Expansion Premises is April 30, 2027, with no option to extend the lease term. | ||||
Operating lease right-of-use assets | 900 | $ 6,486 | ||||
Increase in operating lease liability | $ 1,200 | 6,722 | ||||
Lease and rental expense | $ 1,100 | |||||
Other Non-current Assets [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Prepaid rent | 2,100 | |||||
Canada, Dollars | ||||||
Lessee Lease Description [Line Items] | ||||||
Sales-type lease, initial direct cost expense | $ 2,500 | |||||
United States of America, Dollars | ||||||
Lessee Lease Description [Line Items] | ||||||
Sales-type lease, initial direct cost expense | $ 2,100 | |||||
Letter of Credit [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Restricted cash | 1,500 | |||||
Restricted cash, current | 300 | |||||
Restricted cash, noncurrent | $ 1,200 |
Leases - Component of Operating
Leases - Component of Operating Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Lease Cost [Abstract] | |
Operating lease cost | $ 1,393 |
Variable lease cost | 25 |
Total lease cost | $ 1,418 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Information, Operating Lease (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 5 years 2 months 12 days |
Weighted average discount rate | 4.90% |
Cash paid for amounts included in the measurement of lease liabilities (in thousands) | $ 1,146 |
Leases - Summary of Future Matu
Leases - Summary of Future Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Mar. 16, 2021 |
Operating Lease Liabilities Payments Due [Abstract] | ||
2022 | $ 1,245 | |
2023 | 1,463 | |
2024 | 1,499 | |
2025 | 1,537 | |
2026 | 1,469 | |
Thereafter | 425 | |
Total lease payments | 7,638 | |
Less: imputed interest | (916) | |
Increase in operating lease liability | $ 6,722 | $ 1,200 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments for Operating Lease (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 1,127 |
2022 | 1,158 |
2023 | 1,190 |
2024 | 1,221 |
2025 | 1,253 |
Thereafter | 361 |
Total | $ 6,310 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Jul. 31, 2020 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-cancelable minimum purchase commitments | $ 0.1 | $ 0.4 |
CPDC [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-cancelable minimum purchase commitments | $ 0.6 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Savings Plan [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution amount | $ 0.2 | $ 0.1 |
Retirement Savings Plan [Member] | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution amount | $ 0.1 | $ 0.1 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |||
Research and development | $ 56,357 | $ 17,191 | |
CPDC [Member] | |||
Related Party Transaction [Line Items] | |||
Payment related to supply agreement per quarter | 200 | ||
Payment related to supply agreement aggregate per year | 800 | ||
Amounts of transaction related to service | 1,700 | 1,100 | |
Amount due to related parties | 500 | 300 | |
Payment for reimbursement of pass through costs | 200 | 100 | |
Payment for lab equipment | 200 | ||
Research and development | 1,724 | $ 1,140 | |
CPDC [Member] | CA-ON | |||
Related Party Transaction [Line Items] | |||
Research and development | $ 2,500 | $ 3 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Recognized Expenses in Connection with Services Performed Under Master Services Agreement and Supply Agreement (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Research and development expenses | $ 56,357 | $ 17,191 |
General and administrative expenses | 27,098 | 20,744 |
CPDC [Member] | ||
Related Party Transaction [Line Items] | ||
Research and development expenses | 1,724 | 1,140 |
General and administrative expenses | 44 | 57 |
Total operating expenses | $ 1,768 | $ 1,197 |
Geographical Information - Sche
Geographical Information - Schedule of Long-lived Assets by Geographic Areas (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment, net | $ 2,967 | $ 1,967 |
United States [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment, net | 541 | 103 |
Canada [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment, net | $ 2,426 | $ 1,864 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - ft² | Feb. 10, 2022 | Jun. 01, 2021 | Oct. 31, 2019 | Dec. 31, 2021 |
Subsequent Event [Line Items] | ||||
Operating lease expiration period | Sep. 30, 2037 | Feb. 28, 2026 | Aug. 31, 2030 | |
Lessee, operating lease, description | In August 2018, the Company entered into an operating lease for office space in Hamilton, Ontario. This lease was amended in September 2020 (“New Lease Commencement Date”) and expires in August 2030 with a termination option upon twelve months written notice any time after the fifth anniversary of the New Lease Commencement Date. If the termination option is not exercised, the Company may exercise a renewal option to extend the term for an additional five-year period to August 2035. As the Company is not reasonably certain to extend the lease beyond the allowable termination date, the lease term was determined to end in August 2026 for the purposes of measuring this lease | |||
Lease Beginning in February 2022 through August 2030 [Member] | ||||
Subsequent Event [Line Items] | ||||
Lessee, operating lease, description | The amended lease agreement provides for occupancy of 4,087 square feet of office space beginning in February 2022 through August 2030 with a five-year renewal option and contains rent escalation provisions throughout the term of the lease | |||
Lease Beginning in February 2022 through August 2030 [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Office space | 4,087 | |||
Term of renewal option | 5 years | |||
Operating lease expiration period | Aug. 31, 2030 |