Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | KYMR | |
Entity Registrant Name | KYMERA THERAPEUTICS, INC. | |
Entity Central Index Key | 0001815442 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | No | |
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 | 51,387,136 | |
Entity Shell Company | false | |
Entity File Number | 001-39460 | |
Entity Tax Identification Number | 81-2992166 | |
Entity Address, Address Line One | 200 Arsenal Yards Blvd | |
Entity Address, Address Line Two | Suite 230 | |
Entity Address, City or Town | Watertown | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02472 | |
City Area Code | 857 | |
Local Phone Number | 285-5300 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 156,819 | $ 31,004 |
Marketable securities (Note 4) | 379,567 | 265,198 |
Accounts receivable—due from related parties | 0 | 577 |
Contract assets—due from related parties | 1,573 | 856 |
Prepaid expenses and other current assets | 5,772 | 4,704 |
Total current assets | 543,731 | 302,339 |
Marketable securities, non-current (Note 4) | 74,692 | 162,531 |
Property and equipment, net (Note 6) | 12,184 | 10,841 |
Right-of-use assets, operating leases | 9,540 | 9,845 |
Other non-current assets | 716 | 30 |
Restricted cash | 1,590 | 1,589 |
Total assets | 642,453 | 487,175 |
Current liabilities: | ||
Accounts payable | 5,033 | 4,368 |
Accrued expenses (Note 8) | 19,219 | 10,330 |
Deferred revenue | 66,234 | 92,552 |
Operating lease liabilities | 2,443 | 2,572 |
Finance lease liabilities | 1,189 | 689 |
Other current liabilities | 375 | 106 |
Total current liabilities | 94,493 | 110,617 |
Non-current liabilities | ||
Deferred revenue, net of current portion | 49,939 | 77,838 |
Operating lease liabilities, net of current portion | 13,463 | 14,128 |
Finance lease liabilities, net of current portion | 1,347 | 604 |
Other non-current liabilities | 76 | 100 |
Total liabilities | 159,318 | 203,287 |
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized as of September 30, 2021 and December 31, 2020; 0 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 0 | |
Common stock, $0.0001 par value; 150,000,000 shares authorized as of September 30, 2021 and December 31, 2020, 51,311,921 and 44,592,288 shares issued at September 30, 2021 and December 31, 2020, respectively; 51,256,553 and 44,482,186 shares outstanding at September 30, 2021 and December 31, 2020, respectively | 5 | 4 |
Additional paid-in capital | 678,358 | 412,777 |
Accumulated deficit | (195,082) | (128,765) |
Accumulated other comprehensive loss | (146) | (128) |
Total stockholders’ equity | 483,135 | 283,888 |
Total liabilities and stockholders’ equity | $ 642,453 | $ 487,175 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 150,000,000 | 150,000,000 |
Common stock, issued | 51,311,921 | 44,592,288 |
Common Stock, outstanding | 51,256,553 | 44,482,186 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Collaboration Revenue—from related parties | $ 20,336 | $ 14,533 | $ 57,557 | $ 21,249 |
Revenue from Contract with Customer, Product and Service [Extensible List] | kymr:CollaborationsRevenueMember | kymr:CollaborationsRevenueMember | kymr:CollaborationsRevenueMember | kymr:CollaborationsRevenueMember |
Operating expenses: | ||||
Research and development | $ 38,306 | $ 15,778 | $ 99,488 | $ 41,713 |
General and administrative | 10,667 | 6,838 | 24,605 | 13,058 |
Total operating expenses | 48,973 | 22,616 | 124,093 | 54,771 |
Loss from operations | (28,637) | (8,083) | (66,536) | (33,522) |
Other income (expense): | ||||
Interest and other Income | 125 | 125 | 343 | 702 |
Interest and other expense | (70) | (28) | (124) | (88) |
Total other income: | 55 | 97 | 219 | 614 |
Net loss | (28,582) | (7,986) | (66,317) | (32,908) |
Other comprehensive loss: | ||||
Unrealized loss on marketable securities | (146) | (195) | (18) | (170) |
Total comprehensive loss | (28,728) | (8,181) | (66,335) | (33,078) |
Reconciliation of net loss to net loss attributable to common stockholders: | ||||
Net Loss | (28,582) | (7,986) | (66,317) | (32,908) |
Deemed dividend from exchange of convertible preferred stock | 0 | 0 | 0 | (9,050) |
Net loss attributable to common stockholders | $ (28,582) | $ (7,986) | $ (66,317) | $ (41,958) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.56) | $ (0.39) | $ (1.42) | $ (5.11) |
Weighted average common stock outstanding, basic and diluted | 50,714,846 | 20,677,392 | 46,841,636 | 8,211,003 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) | Total | Series Seed Convertible Preferred Stock | Series A Convertible Preferred Stock | Series B Convertible Preferred Stock | Series B-1 Convertible Preferred Stock | Series C Convertible Preferred Stock | Common Stock | Additional Paid In Capital | Accumulated Deficit | Accumulated Other Comprehensive Gain (Loss) | Initial Public Offering | Initial Public OfferingCommon Stock | Initial Public OfferingAdditional Paid In Capital | Private Placement | Private PlacementCommon Stock | Private PlacementAdditional Paid In Capital |
Temporary Equity, Beginning Balance, Shares at Dec. 31, 2019 | 3,000,000 | 14,720,126 | 14,827,580 | 3,059,695 | ||||||||||||
Temporary Equity, Beginning Balance at Dec. 31, 2019 | $ 5,900,000 | $ 29,237,000 | $ 59,918,000 | $ 14,025,000 | ||||||||||||
Beginning Balance at Dec. 31, 2019 | $ (74,406,000) | $ 2,044,000 | $ (76,456,000) | $ 6,000 | ||||||||||||
Beginning Balance, Shares at Dec. 31, 2019 | 1,929,516 | |||||||||||||||
Vesting of Series A Preferred Stock in connection with collaboration arrangement (Note 5) | $ 222,000 | |||||||||||||||
Vesting of Series A Preferred Stock in connection with collaboration arrangement (Note 5), Shares | 110,788 | |||||||||||||||
Issuance of Preferred Stock, net of issuance costs | $ 4,800,000 | $ 88,180,000 | ||||||||||||||
Issuance of Preferred Stock, net of issuance costs, Shares | 1,182,265 | 13,539,141 | ||||||||||||||
Exchange of Series A Convertible Preferred Stock for Series C Preferred Convertible Preferred Stock | (9,049,000) | (2,333,000) | (6,716,000) | |||||||||||||
Temporary Equity, Exchange of Series A Convertible Preferred Stock for Series C Preferred Convertible Preferred Stock, Shares | (1,988,802) | 1,988,802 | ||||||||||||||
Temporary Equity, Exchange of Series A Convertible Preferred Stock for Series C Preferred Convertible Preferred Stock | $ (3,950,000) | $ 13,000,000 | ||||||||||||||
Exercise of stock options | 138,000 | 138,000 | ||||||||||||||
Exercise of stock options, Shares | 67,623 | |||||||||||||||
Vesting restricted stock | 110,000 | 110,000 | ||||||||||||||
Vesting restricted stock, Shares | 161,187 | |||||||||||||||
Stock-based compensation expense | 3,363,000 | 3,363,000 | ||||||||||||||
Unrealized gain (loss) on marketable securities | (170,000) | (170,000) | ||||||||||||||
Issuance of shares | $ 182,748,000 | $ 1,000 | $ 182,747,000 | $ 13,527,000 | $ 13,527,000 | |||||||||||
Issuance of shares, Shares | 9,987,520 | 676,354 | ||||||||||||||
Conversion of convertible preferred stock into common stock | 211,332,000 | $ (5,900,000) | $ (25,509,000) | $ (64,718,000) | $ (14,025,000) | $ (101,180,000) | $ 3,000 | 211,329,000 | ||||||||
Conversion of convertible preferred stock into common stock, Shares | (3,000,000) | (12,842,112) | (16,009,845) | (3,059,695) | (15,527,943) | 31,625,534 | ||||||||||
Net Loss | (32,908,000) | (32,908,000) | ||||||||||||||
Ending Balance at Sep. 30, 2020 | 294,685,000 | $ 4,000 | 410,925,000 | (116,080,000) | (164,000) | |||||||||||
Ending Balance, Shares at Sep. 30, 2020 | 44,447,734 | |||||||||||||||
Temporary Equity, Beginning Balance, Shares at Dec. 31, 2019 | 3,000,000 | 14,720,126 | 14,827,580 | 3,059,695 | ||||||||||||
Temporary Equity, Beginning Balance at Dec. 31, 2019 | $ 5,900,000 | $ 29,237,000 | $ 59,918,000 | $ 14,025,000 | ||||||||||||
Beginning Balance at Dec. 31, 2019 | (74,406,000) | 2,044,000 | (76,456,000) | 6,000 | ||||||||||||
Beginning Balance, Shares at Dec. 31, 2019 | 1,929,516 | |||||||||||||||
Ending Balance at Dec. 31, 2020 | 283,888,000 | $ 4,000 | 412,777,000 | (128,765,000) | (128,000) | |||||||||||
Ending Balance, Shares at Dec. 31, 2020 | 44,482,186 | |||||||||||||||
Temporary Equity, Beginning Balance, Shares at Jun. 30, 2020 | 3,000,000 | 12,842,112 | 16,009,845 | 3,059,695 | 15,527,943 | |||||||||||
Temporary Equity, Beginning Balance at Jun. 30, 2020 | $ 5,900,000 | $ 25,509,000 | $ 64,718,000 | $ 14,025,000 | $ 101,180,000 | |||||||||||
Beginning Balance at Jun. 30, 2020 | (107,289,000) | 774,000 | (108,094,000) | 31,000 | ||||||||||||
Beginning Balance, Shares at Jun. 30, 2020 | 2,035,956 | |||||||||||||||
Exercise of stock options | 110,000 | 110,000 | ||||||||||||||
Exercise of stock options, Shares | 51,518 | |||||||||||||||
Vesting restricted stock | 111,000 | 111,000 | ||||||||||||||
Vesting restricted stock, Shares | 70,852 | |||||||||||||||
Stock-based compensation expense | 2,328,000 | 2,328,000 | ||||||||||||||
Unrealized gain (loss) on marketable securities | (195,000) | (195,000) | ||||||||||||||
Issuance of shares | 182,747,000 | $ 1,000 | 182,746,000 | 13,527,000 | 13,527,000 | |||||||||||
Issuance of shares, Shares | 9,987,520 | 676,354 | ||||||||||||||
Conversion of convertible preferred stock into common stock | 211,332,000 | $ (5,900,000) | $ (25,509,000) | $ (64,718,000) | $ (14,025,000) | $ (101,180,000) | $ 3,000 | 211,329,000 | ||||||||
Conversion of convertible preferred stock into common stock, Shares | (3,000,000) | (12,842,112) | (16,009,845) | (3,059,695) | (15,527,943) | 31,625,534 | ||||||||||
Net Loss | (7,986,000) | (7,986,000) | ||||||||||||||
Ending Balance at Sep. 30, 2020 | 294,685,000 | $ 4,000 | 410,925,000 | (116,080,000) | (164,000) | |||||||||||
Ending Balance, Shares at Sep. 30, 2020 | 44,447,734 | |||||||||||||||
Beginning Balance at Dec. 31, 2020 | 283,888,000 | $ 4,000 | 412,777,000 | (128,765,000) | (128,000) | |||||||||||
Beginning Balance, Shares at Dec. 31, 2020 | 44,482,186 | |||||||||||||||
Exercise of stock options | 5,875,000 | $ 1,000 | 5,874,000 | |||||||||||||
Exercise of stock options, Shares | 1,193,773 | |||||||||||||||
Vesting restricted stock, Shares | 54,736 | |||||||||||||||
Issuance of shares under employee stock purchase plan | 307,000 | 307,000 | ||||||||||||||
Issuance of shares under employee stock purchase plan, Shares | 7,680 | |||||||||||||||
Stock-based compensation expense | 16,294,000 | 16,294,000 | ||||||||||||||
Unrealized gain (loss) on marketable securities | (18,000) | (18,000) | ||||||||||||||
Issuance of shares | 240,760,000 | 240,760,000 | 2,346,000 | 2,346,000 | ||||||||||||
Issuance of shares, Shares | 5,468,250 | 49,928 | ||||||||||||||
Net Loss | (66,317,000) | (66,317,000) | ||||||||||||||
Ending Balance at Sep. 30, 2021 | 483,135,000 | $ 5,000 | 678,358,000 | (195,082,000) | (146,000) | |||||||||||
Ending Balance, Shares at Sep. 30, 2021 | 51,256,553 | |||||||||||||||
Beginning Balance at Jun. 30, 2021 | 258,104,000 | $ 5,000 | 424,599,000 | (166,500,000) | ||||||||||||
Beginning Balance, Shares at Jun. 30, 2021 | 45,327,681 | |||||||||||||||
Exercise of stock options | 3,257,000 | 3,257,000 | ||||||||||||||
Exercise of stock options, Shares | 392,540 | |||||||||||||||
Vesting restricted stock, Shares | 18,154 | |||||||||||||||
Stock-based compensation expense | 7,396,000 | 7,396,000 | ||||||||||||||
Unrealized gain (loss) on marketable securities | (146,000) | (146,000) | ||||||||||||||
Issuance of shares | $ 240,760,000 | $ 240,760,000 | $ 2,346,000 | $ 2,346,000 | ||||||||||||
Issuance of shares, Shares | 5,468,250 | 49,928 | ||||||||||||||
Net Loss | (28,582,000) | (28,582,000) | ||||||||||||||
Ending Balance at Sep. 30, 2021 | $ 483,135,000 | $ 5,000 | $ 678,358,000 | $ (195,082,000) | $ (146,000) | |||||||||||
Ending Balance, Shares at Sep. 30, 2021 | 51,256,553 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Underwriting discounts, offering costs and issuance costs | $ 16,207 | $ 17,003 | $ 16,207 | $ 17,003 |
Series B Preferred Stock | ||||
Underwriting discounts, offering costs and issuance costs | 0 | |||
Series C Preferred Stock | ||||
Underwriting discounts, offering costs and issuance costs | $ 320 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net loss | $ (66,317) | $ (32,908) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 16,294 | 3,363 |
Depreciation and amortization | 1,708 | 1,266 |
Premiums and discounts on available-for-sale marketable securities | 4,171 | 0 |
Loss on disposal of property and equipment | 18 | |
Non-cash research and development expense | 332 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (1,068) | (1,440) |
Receivables—due from related parties | 577 | |
Contract asset—due from related parties | (717) | (577) |
Accounts payable | 1,082 | 523 |
Accrued expenses and other current liabilities | 8,803 | 2,268 |
Deferred revenue | (54,217) | 129,328 |
Operating lease right-of-use assets | 305 | 8,330 |
Operating lease liabilities | (794) | (2,287) |
Other assets and liabilities | (439) | |
Net cash (used in) provided by operating activities | (90,594) | 108,198 |
Investing activities | ||
Purchase of property and equipment, net | (1,096) | (7,659) |
Purchases of investments | (292,006) | (460,939) |
Maturities of investments | 261,286 | 50,000 |
Net cash used in investing activities | (31,816) | (418,598) |
Financing activities | ||
Proceeds from stock option exercises | 5,874 | 138 |
Proceeds from employee stock purchase plan | 307 | |
Payments of offering costs in connection with initial public offering | (397) | |
Payments on finance leases | (693) | (402) |
Proceeds from initial public offering, net of underwritting discounts and offering costs | 182,748 | |
Proceeds fromconcurrent private placement, initial public offering | 13,527 | |
Proceeds from follow on offering, net of underwriting discounts and offering costs | 240,788 | |
Proceeds from concurrent private placement, follow on | 2,347 | |
Net cash provided by financing activities | 248,226 | 288,992 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 125,816 | (21,408) |
Cash, cash equivalents and restricted cash at beginning of period | 32,593 | 77,789 |
Cash, cash equivalents and restricted cash at end of period | 158,409 | 56,381 |
Supplemental disclosure of cash flow activities | ||
Cash paid for interest | 106 | 88 |
Supplemental disclosure of noncash investing and financing activities | ||
Property and equipment purchases included in accounts payable and accrued expenses | 65 | 797 |
Purchase of property and equipment through finance lease | 1,918 | |
Offering costs included in accrued expenses | 28 | |
Supplemental disclosure of noncash operating activities | ||
Tenant improvements included in other assets | 139 | |
Reduction of right-of-use asset and liability due to lease modification | 2,161 | |
Cash and cash equivalents | 156,819 | 54,593 |
Restricted cash | 1,590 | 1,788 |
Total cash, cash equivalents, and restricted cash | 158,409 | 56,381 |
Series B Convertible Preferred Stock | ||
Financing activities | ||
Proceeds from the issuance of Convertible Preferred Stock, net of issuance costs | 4,800 | |
Series C Convertible Preferred Stock | ||
Financing activities | ||
Proceeds from the issuance of Convertible Preferred Stock, net of issuance costs | $ 88,181 |
Organization and Nature of Busi
Organization and Nature of Business | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Nature of Business | 1. Organization and Nature of Business Kymera Therapeutics, Inc., together with its subsidiary Kymera Securities Corporation, is referred to on a consolidated basis as the “Company”. The Company is a biopharmaceutical company focused on discovering and developing small molecule therapeutics that selectively degrade disease-causing proteins by harnessing the body’s own natural cellular process, a method known as targeted protein degradation. The Company has devoted its efforts principally to research and development since formation. The Company has not yet completed product development, filed for or obtained regulatory approvals for any products, nor verified the market acceptance and demand for such products. As a result, the Company is subject to a number of risks common to emerging companies in the biotech industry. Principal among these risks are the uncertainties of the product discovery and development process, dependence on key individuals, development of the same or similar technological innovations by the Company’s competitors, protection of proprietary technology, compliance with government regulations and approval requirements, the Company’s ability to access capital and uncertainty of market acceptance of products. The Company has historical net losses and anticipates that it will continue to incur losses for the foreseeable future and had an accumulated deficit of $ 195.1 million as of September 30, 2021. The Company has funded these losses principally through issuance of common stock, including its follow-on offering and concurrent private placement completed in July 2021 ("Follow-on Offering"), initial public offering (“IPO”), which was completed in August 2020, preferred stock, convertible notes and from cash proceeds received in connection with the Company’s collaboration agreements with Vertex Pharmaceuticals Incorporated (“Vertex”) and Genzyme Corporation (“Sanofi”) (see Note 5). The Company expects to continue to incur operating losses and negative cash flows until such time as it generates a level of revenue that is sufficient to support its cost structure. As of September 30, 2021, the Company had cash, cash equivalents and marketable securities of $ 611.1 million. The Company believes these cash, cash equivalents and marketable securities will be sufficient to fund its operations and capital expenditure requirements through at least twelve months from the issuance of these condensed consolidated financial statements. The Company expects to finance the future research and development costs of its product portfolio with its existing cash, cash equivalents and marketable securities, or through strategic financing opportunities that could include, but are not limited to future offerings of its equity, collaboration agreements, or the incurrence of debt. However, there is no guarantee that any of these strategic or financing opportunities will be executed or realized on favorable terms, if at all, and some could be dilutive to existing stockholders. If the Company fails to obtain additional future capital, it may be unable to complete its planned preclinical studies and clinical trials. Reverse Stock Split On August 20, 2020, the Board approved a 1-for- 1.5949 reverse stock split of the Company’s issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for each of the Company’s outstanding series of preferred stock. All share and per share amounts in the accompanying condensed consolidated financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this reverse stock split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid-in capital. Initial Public Offering On August 20, 2020, the Company’s registration statement on Form S-1 relating to its initial public offering of its common stock was declared effective by the Securities and Exchange Commission (“SEC”). In the IPO, which closed on August 25, 2020, the Company issued and sold 9,987,520 shares of common stock, including full exercise of the underwriters’ over-allotment option to purchase an additional 1,302,720 shares, at a public offering price of $ 20.00 per share and the aggregate gross proceeds before deducting underwriting discounts and commissions, and other estimated offering expenses payable by the Company, were approximately $ 199.8 million. Concurrent with the IPO, the Company issued and sold 676,354 shares of common stock at $ 20.00 per share in a private placement to Vertex and the aggregate proceeds were $ 13.5 million. Follow-on Public Offering On July 6, 2021, the Company completed a follow-on offering of its common stock and issued and sold 5,468,250 shares of common stock, including full exercise of the underwriters’ over-allotment option to purchase an additional 713,250 shares, at a public offering price of $ 47.00 per share. The aggregate gross proceeds before deducting underwriting discounts and commissions, and other estimated offering expenses payable by the Company were approximately $ 257.0 million. Concurrent with the follow-on offering, the Company issued and sold 49,928 shares of common stock at $ 47.00 per share in a private placement to Vertex and the aggregate proceeds were $ 2.3 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described in this note, and elsewhere in the accompanying condensed consolidated financial statements and notes. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary Kymera Securities Corporation. All intercompany transactions and balances have been eliminated in consolidation. Basis of Presentation The unaudited interim condensed consolidated financial statements of the Company included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) as found in the Accounting Standards Codification (“ASC”), Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 11, 2021. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements as of and for the year ended December 31, 2020, and, in the opinion of management, reflect all adjustments necessary, all of which were normal and recurring, for the fair statement of the Company’s financial position as of September 30, 2021, the results of operations for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 30, 2021 and 2020. The results for the nine months ended September 30, 2021 are not necessarily indicative of the results for the year ended December 31, 2021 or for any future period. Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements for the three and nine months ended September 30, 2021 are consistent with those discussed in Note 2 to the consolidated financial statements in the 2020 Annual Report on Form 10-K. Recent Accounting Pronouncements Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is intended to simplify the accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard was effective beginning January 1, 2021. The Company adopted this standard as of January 1, 2021 and it did not have a material impact on its financial position or results of operation . Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements . The new standard requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. It also limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. As an emerging growth company, the Company expects to delay adoption until January 1, 2023 and is evaluating the impact that the adoption of ASU 2016-13 will have on its condensed consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The following table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values as of September 30, 2021 and December 31, 2020 (in thousands): Fair Value Measurements at Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market fund $ 139,640 $ — $ — $ 139,640 Corporate bonds 6,002 — — 6,002 Marketable securities, current US treasuries 166,240 — — 166,240 Corporate bonds — 213,326 — 213,326 Marketable securities, non-current US treasuries 13,501 — — 13,501 Corporate bonds — 61,191 — 61,191 Restricted cash 1,590 — — 1,590 Total $ 326,973 $ 274,517 $ — $ 601,490 Fair Value Measurements at Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market fund $ 19,943 $ — $ — $ 19,943 Corporate bonds — 10,499 — 10,499 Marketable securities, current US treasuries 192,275 — — 192,275 Corporate bonds — 72,923 — 72,923 Marketable securities, non-current US treasuries 132,589 — — 132,589 Corporate bonds — 29,942 — 29,942 Restricted cash 1,589 — — 1,589 Total $ 346,396 $ 113,364 $ — $ 459,760 During the nine months ended September 30, 2021 and the year ended December 31, 2020, there were no transfers between Level 1, Level 2 and Level 3. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2021 | |
Marketable Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities The following table summarizes the available-for-sale debt securities held at September 30, 2021 and December 31, 2020 and (in thousands): Description Amortized Unrealized Unrealized Fair September 30, 2021 U.S. treasury securities $ 179,723 $ 23 $ ( 5 ) $ 179,741 Corporate securities 274,682 5 ( 169 ) 274,518 Total $ 454,405 $ 28 $ ( 174 ) $ 454,259 Description Amortized Unrealized Unrealized Fair December 31, 2020 U.S. treasury securities $ 324,917 $ — $ ( 53 ) $ 324,864 Corporate securities 102,946 — ( 81 ) 102,865 Total $ 427,863 $ — $ ( 134 ) $ 427,729 As of September 30, 2021, the Company held 79 securities that had been in an unrealized loss position for less than 12 months with an aggregate fair value of $ 286.6 million. As of December 31, 2020, the Company held 65 securities that had been in an unrealized loss position for less than 12 months with an aggregate fair value of $ 392.2 million. As of September 30, 2021, the Company had 77 securities with a fair value of $ 379.6 million with a contractual maturity of less than 12 months and 24 securities with a fair value of $ 74.7 million with a contractual maturity of greater than 12 months. As of December 31, 2020, the Company had 48 securities with a fair value of $ 295.6 million with a contractual maturity of less than 12 months and 25 securities with a fair value of $ 162.5 million with a contractual maturity of greater than 12 months. There were no sales of marketable securities during the three and nine months ending September 30, 2021 and 2020. The Company evaluates securities for other-than-temporary impairments based on quantitative and qualitative factors, and considered the decline in market value for the 79 securities in an unrealized loss position as of September 30, 2021 to be primarily attributable to the then current economic and market conditions. The Company neither intends to sell these investments nor concludes that it is more-likely-than-not that the Company will have to sell them before recovery of their carrying values. The Company also believes that it will be able to collect both principal and interest amounts due to it at maturity. |
Collaborations
Collaborations | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaborations | 5. Collaborations Sanofi Collaboration Arrangement Agreement Terms On July 7, 2020, the Company entered into a collaboration agreement, or the Sanofi Agreement, with Sanofi, to co-develop drug candidates directed to two biological targets. Under the Sanofi Agreement, the Company granted to Sanofi a worldwide exclusive license to develop, manufacture and commercialize certain lead compounds generated during the collaboration directed against IRAK4, or Collaboration Target 1, and one additional undisclosed target in an undisclosed field of use, or Collaboration Target 2. Such license is exercisable on a collaboration target-by-collaboration target basis only after specified milestones. For compounds directed against IRAK4, the field of use includes diagnosis, treatment, cure, mitigation or prevention of any diseases, disorders or conditions, excluding oncology and immune-oncology. Pursuant to the Sanofi Agreement, the Company is responsible for discovery and preclinical research and conducting a phase 1 clinical trial for at least one degrader directed against IRAK4 plus up to three backup degraders. With respect to both targets, Sanofi is responsible for development, manufacturing, and commercialization of product candidates after a specified development milestone occurs with respect to each collaboration candidate. In addition, pursuant to the Sanofi Agreement, Sanofi will grant to the Company an exclusive option, or Opt-In Right, exercisable on a collaboration target-by-collaboration target basis that will include the right to (i) to fund 50% of the United States development costs for collaboration products directed against such target in the applicable field of use and (ii) share equally in the net profits and net losses of commercializing collaboration products directed against such target in the applicable field of use in the United States. In addition, if the Company exercises the Opt-In Right, Sanofi will grant to the Company an exclusive option, applicable to each collaboration target, which upon exercise will allow the Company to conduct certain co-promotion activities in the field in the United States. The Sanofi Agreement, unless earlier terminated, will expire on a product-by-product basis on the date of expiration of all payment obligations under the Sanofi Agreement with respect to such product. The Company or Sanofi may terminate the agreement upon the other party’s material breach or insolvency or for certain patent challenges. In addition, Sanofi may terminate the Sanofi Agreement for convenience or for a material safety event upon advance prior written notice, and the Company may terminate the Sanofi Agreement with respect to any collaboration candidate if, following Sanofi’s assumption of responsibility for the development, commercialization or manufacturing of collaboration candidates with respect to a particular target, Sanofi ceases to exploit any collaboration candidates directed to such target for a specified period. In consideration for the exclusive licenses granted to Sanofi under the Sanofi Agreement, Sanofi paid to the Company an upfront payment of $ 150.0 million. The Company will also be reimbursed for certain research activities for a certain backup degrader under the IRAK4 program as well as contract manufacturing costs for the led 474 program, unless certain criteria are not met for an initial IRAK4 degrader. In addition to the upfront payment and the reimbursements, the Company is eligible to receive certain development milestone payments of up to $ 1.48 billion in the aggregate, of which more than $ 1.0 billion relates to the IRAK4 program, upon the achievement of certain developmental or regulatory events. The Company will be eligible to receive certain commercial milestone payments up to $ 700.0 million in the aggregate, of which $ 400.0 million relate to the IRAK4 program, which are payable upon the achievement of certain net sales thresholds. The Company will be eligible to receive tiered royalties for each program on net sales ranging from the high-single digits to high teens, subject to low-single digits upward adjustments in certain circumstances. Accounting Treatment The Company analyzed the discovery and pre-clinical research activities as well as the exclusive license grants under the Sanofi Agreement and concluded that the arrangement was indicative of a vendor-customer relationship and would be accounted for under ASC 606. The Company identified the following material promises under the arrangement: (1) research services for Collaboration Target 1, (2) research license for Collaboration Target 1, (3) exclusive license for Collaboration Target 1, (4) research services for Collaboration Target 2, (5) research license for Collaboration Target 2, (6) exclusive license for Collaboration Target 2, (7) option to extend the research term, and (8) optional research services during the development period. The Company determined that Collaboration Targets 1 and 2 are distinct from each other. The research associated with degraders directed to each target is at different stages and the licensed field, should development activities be successful, are different from each other. As such, all promises associated with each target are considered distinct from promises associated with the other target. The research and development services for each collaboration target were determined not to be distinct from the research license and the exclusive license and have been combined into a single performance obligation for each collaboration target. That is, two performance obligations were identified, the combined research services, research license and exclusive license for Collaboration Target 1 and the combined research services, research license and exclusive license for Collaboration Target 2. The exclusive license for each target is not distinct from the pre-clinical and clinical research and development services under the Sanofi Agreement, primarily due to the highly specialized nature of the research and novel technology involved with developing protein degraders – the pre-clinical activities and studies and first phase 1 clinical trial could not be conducted by another party in the manner required. The option to extend the research term and optional research services during the development period were evaluated as material rights. The fees associated with each option are at or above the standalone selling price. As such, the underlying options are not performance obligations and fees associated with each option are excluded from the transaction price until the underlying option is exercised. The Company determined the total transaction price to be $ 150.0 million, which consists solely of the upfront payment. All milestone payments and option payments are constrained as the achievement of such milestones are contingent upon the success of the underlying research and development activities and are generally outside the control of the Company. The reimbursement of costs for the IRAK4 backup degrader is also treated as constrained variable consideration as the criteria for reimbursement may not always be met, under which circumstances the Company would be responsible for the costs related to the backup degrader. Upon becoming unconstrained, the reimbursement consideration will be added to the transaction price and allocated to Collaboration Target 1. The Company allocated the upfront payment to each performance obligation based on the relative standalone selling price, as follows: Collaboration Target 1: $ 120.0 million Collaboration Target 2: $ 30.0 million The Company determined the allocation of the $ 150.0 million transaction price between Collaboration Target 1 and Collaboration Target 2 based on the value of the research and development for the programs from projected research and development costs for each collaboration target plus a developer’s profit and the total potential milestones for each collaboration target. The Company recognizes revenue associated with each performance obligation as the research and development services are provided using an input method, according to costs incurred as related to the research and development activities for each individual program and the costs expected to be incurred in the future to satisfy that individual performance obligation. The transfer of control occurs over this time period and, in management’s judgment, is the best measure of progress towards satisfying each performance obligation. The amounts received that have not yet been recognized as revenue are deferred as a contract liability on the Company’s consolidated balance sheet and will be recognized over the remaining research and development period until the performance obligation is satisfied. Reimbursement consideration added to the t ransaction price will be recognized as revenue on the same pattern as Collaboration Target 1, with a cumulative catch-up upon becoming unconstrained. The performance obligation has not been fully satisfied as of September 30, 2021. In the three months ended September 30, 2021, the Company recognized $ 16.5 million in revenue under the Sanofi Agreement, of which $ 14.5 million was associated with Collaboration Target 1 and $ 2.0 million was associated with Collaboration Target 2. In the nine months ended September 30, 2021, the Company recognized $ 42.5 million in revenue under the Sanofi Agreement, of which $ 36.0 million was associated with Collaboration Target 1 and $ 6.5 million was associated with Collaboration Target 2. In the three and nine months ended September 30, 2020, the Company recognized $ 10.9 million in revenue under the Sanofi Agreement, of which $ 10.2 million was associated with Collaboration Target 1 and $ 0.7 million was associated with Collaboration Target 2. The aggregate amount of the transaction price allocated to the Company’s unsatisfied performance obligations and recorded in deferred revenue at September 30, 2021 and December 31, 2020 is $ 93.5 million and $ 132.6 million, respectively. During the nine months ended September 30, 2021, the Company received $ 3.2 million in cost reimbursement payments. No milestone or royalty payments have been received under the Sanofi Agreement. As of September 30, 2021, the Company recorded unbilled accounts receivable of $ 1.6 million related to reimbursable research and development costs under the Sanofi Agreement for activities performed during the third quarter of 2021. As of September 30, 2021, the Company did no t have any research and development costs under the Sanofi Agreement for activities performed during the third quarter of 2021 in accounts receivable. The Company will recognize the deferred revenue related to the research and development services based on a cost input method, as described, over the remaining research term, which is a maximum of 2.5 years as of September 30, 2021. Any consideration related to performance based milestones will be recognized when the risk of probable reversal is resolved, at which point the Company shall adjust the transaction price determined for the agreement accordingly and recognize revenue on a cumulative-catch up basis, reallocating the revised arrangement consideration to the performance obligations. Any consideration related to sales milestone payments and royalties will be recognized when the related milestone events or sales occur and therefore are recognized at the later of when the related sales occur or the relevant performance obligation is satisfied. As part of its evaluation of constraining the milestones, the Company considered numerous factors, including the fact that the achievement of the research and development milestones are contingent upon the results of the underlying research and development activities and are thus outside of the control of the Company. Sanofi participated in the Company’s Series B Convertible Preferred Stock offering and as a result of this, is considered a related party. Vertex Agreement On May 9, 2019 (the “Effective Date”), the Company entered into a collaboration agreement (the “Vertex Agreement”) with Vertex to advance small molecule protein degraders against up to six targets. Under the Vertex Agreement, Vertex has the exclusive option to license the rights to the product candidates developed for the designated targets at which point Vertex will control development and commercialization. Pursuant to the Vertex Agreement, the Company is only responsible for discovery and preclinical research on the targets, and Vertex is responsible for development, manufacturing, and commercialization of the product candidates after it exercises its option to license. The initial research term of the collaboration is four ( 4 ) years, extendable for an additional one ( 1 ) year period upon mutual agreement by the parties and payment by Vertex of certain per-target fees. Vertex provided the Company with a non-refundable upfront payment of $ 50.0 million and purchased 3,059,695 shares of the Company’s Series B-1 Convertible Preferred Stock (the “Series B-1 Preferred Stock”) at $ 6.54 a share, pursuant to a separate, but simultaneously executed Share Purchase Agreement. The shares were purchased at a premium of $ 5.9 million, which was included in the transaction price and will be recognized as revenue over the period of performance. As a result of this purchase, Vertex is considered a related party. The Company is eligible to receive up to $ 170.0 million in payments per target, including development, regulatory and commercial milestones as well as option exercise payments. In addition, Vertex is obligated to pay the Company tiered royalties on future net sales on any products that may result from the Vertex Agreement. None of the payments under the Vertex Agreement are refundable. The Company may also perform follow-on research for an optioned target upon Vertex’s request and at Vertex’s expense. The term of the Vertex Agreement began on the Effective Date and expires upon the expiration of all payment obligations from Vertex to Company under the Vertex Agreement or, if Vertex does not exercise any of its options, the lapse of all Vertex’s option rights under the Vertex Agreement. Vertex also has the ability to terminate for convenience with prior written notice to the Company, and either party may terminate for an uncured material breach. Accounting Treatment The Company analyzed the joint research activities required under the Vertex Agreement and concluded that the arrangement was indicative of a vendor-customer relationship and would be accounted for under ASC 606. The Company identified the following material promises under the arrangement: (1) the non-exclusive, royalty-free research license; (2) the research and development services to be performed on up to six targets; and (3) the option to license each of the targets for development, manufacturing, and commercialization efforts. The research and development services were determined not to be distinct from the research and development license and have been combined into a single performance obligation. The Company determined that the option to license the targets in the future was not priced at a discount, and that the option exercise fee for each target is at or above the standalone selling price for research at this stage of development; as such, the options and the underlying licenses are excluded from the performance obligation and the option exercise fees are excluded from the transaction price until the underlying option is exercised. As part of its evaluation of constraining the research and development milestones, the Company considered numerous factors, including the fact that the achievement of the research and development milestones is contingent upon the results of the underlying research and development activities and is thus outside of the control of the Company. At the commencement of the arrangement, two units of accounting were identified: the issuance of 3,059,695 shares of the Series B-1 Preferred Stock and the research activities the Company will perform over the Research Term. The Company determined the total transaction price to be $ 55.9 million, which consists of $ 5.9 million attributed to the premium from the shares of Series B-1 Preferred Stock sold to Vertex and the $ 50.0 million upfront payment. To determine the fair value of the Series B-1 Preferred Stock issued to Vertex, the Company performed a valuation of the shares of the Company’s common and preferred stock, which took into consideration recent financings, and the Company’s recent development and future exit strategies, as well as a discount for lack of marketability. The Company recognizes revenue associated with the performance obligation as the research and development services are provided using an input method, according to the costs incurred as related to the research and development activities on each program and the costs expected to be incurred in the future to satisfy the performance obligation. The transfer of control occurs over this time period and, in management’s judgment, is the best measure of progress towards satisfying the performance obligation. The amounts received that have not yet been recognized as revenue are deferred as a contract liability on the Company’s consolidated balance sheet and will be recognized over the remaining research and development period until the performance obligation is satisfied. The performance obligation has not been fully satisfied as September 30, 2021. During the three months ended September 30, 2021 and 2020, the Company recognized $ 3.8 million and $ 3.6 million, respectively, under the Vertex Agreement. During the nine months ended September 30, 2021 and 2020, the Company recognized $ 15.1 million and $ 10.3 million respectively, in revenue under the Vertex Agreement. All $ 15.1 million revenue recognized in the nine months ended September 30, 2021 was recognized from amounts that were recorded in deferred revenue as of December 31, 2020. The aggregate amount of the transaction price allocated to the Company’s unsatisfied performance obligation and recorded in deferred revenue at September 30, 2021 and December 31, 2020 is $ 22.7 million and $ 37.7 million, respectively. The Company will recognize the deferred revenue related to the research and development services based on a cost input method, over the remaining research term, which is a maximum of 1.3 years as of September 30, 2021. Any consideration related to sales milestone payments (including royalties) will be recognized when the related milestone events or sales occur and therefore is recognized at the later of when the related sales occur or the relevant performance obligation is satisfied. Compound Collaboration In October 2017, the Company entered into a collaboration agreement (the “Collaboration”) with a pharmaceutical company to jointly identify, research and conduct preclinical development of collaboration compounds against specified collaboration targets to identify drug candidates. Under the terms of the Collaboration, both parties provided one another with a non-exclusive, royalty-free, sub-licensable research and development license to each party’s intellectual property to develop five agreed-upon collaboration targets, as well as an exclusive, royalty-bearing development and commercialization license to sell any licensed products that stem from such research. The parties also have the ability to nominate additional collaboration targets if agreed-upon, as long as there are no more than five targets at any given time. In exchange for the non-exclusive license rights, the Company provided the pharmaceutical company with an equity grant and is required to make tiered royalty payments based on net sales of all products licensed under the agreement in the low single-digit percentages. In conjunction with the Collaboration, the Company initially issued 886,305 Series A Preferred Units (“Series A Preferred Units”) to the pharmaceutical company. On November 1, 2018, these Series A Preferred Units were exchanged on a one-for-one basis for shares of Series A Convertible Preferred Stock (the “Series A Preferred Stock”). These shares vested in equal installments over three years and the Company recorded expense over the vesting period based on the fair value of the shares under the Collaboration. The Company recorded $ 0.3 million to research and development expense related to the vesting of 166,183 shares of Series A Preferred Stock for the nine months ended September 30, 2020. As of December 31, 2020, all shares under the Collaboration were fully vested and all expenses had been recognized. The royalty payments are contingent and as such are not being recorded until incurred. The Company determined that the license is representative of an in-process research and development asset, with no future alternative use. As such, the Company recorded the expense related to the vesting of shares of Series A Preferred Stock as research and development expense in the Company’s condensed consolidated statements of operations and comprehensive loss. The Collaboration can be terminated by either party for convenience with 60 -days written notice and may also be terminated in the event of a material breach. The following table presents the changes in accounts receivable, contract assets and liabilities for the nine months ended September 30, 2021 (in thousands): Balance at Additions Deductions Balance at Accounts receivable and contract assets: Billed receivables - Sanofi $ 577 $ 2,622 $ ( 3,199 ) $ — Unbilled receivables - Sanofi 856 3,339 ( 2,622 ) 1,573 Total accounts receivable and contract assets $ 1,433 $ 5,961 $ ( 5,821 ) $ 1,573 Contract liabilities: Deferred revenue - Vertex $ 37,748 $ — $ ( 15,086 ) $ 22,662 Deferred revenue - Sanofi 132,642 3,339 ( 42,470 ) 93,511 Total contract liabilities $ 170,390 $ 3,339 $ ( 57,556 ) $ 116,173 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment Property and equipment consists of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Lab and office equipment under finance right-of-use asset $ 3,969 $ 2,771 Lab equipment 2,434 1,636 Computer equipment 266 89 Furniture & fixtures 943 861 Leasehold improvements 7,731 7,599 Assets not yet in service 68 32 Total property and equipment 15,411 12,988 Less accumulated depreciation ( 3,227 ) ( 2,147 ) Property and equipment, net $ 12,184 $ 10,841 Depreciation expense for the three months ended September 30, 2021 and 2020 was $ 0.7 million and $ 0.5 million, respectively. Depreciation expense for the nine months ended September 30, 2021 and 2020 was $ 1.7 million and $ 1.3 million, respectively. Included in property and equipment is lab and office equipment right-of-use assets under finance leases with a cost basis of $ 4.0 million and $ 2.8 million as of September 30, 2021 and December 31, 2020, respectively and accumulated amortization expense of $ 1.2 million for both periods. Amortization expense related to right-of-use assets during the three months ended September 30, 2021 and 2020 was $ 0.3 million and $ 0.2 million, respectively. Amortization expense related to right-of-use assets during the nine months ended September 30, 2021 and 2020 was $ 0.7 million and $ 0.5 million, respectively . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | 7. Leases In February 2018, the Company entered into a noncancelable facility lease agreement (the “Lease”) for 9,836 square feet of research and development and office space in Cambridge, Massachusetts. In March 2020, the Company signed a termination agreement for this lease which was determined to be a lease modification that resulted in a reduction of the right-of-use asset and liability of $ 2.2 million. The lease termination was effective July 31, 2020 at which point the Company no longer had any obligations under the Lease. In accordance with the Lease, the Company was required to maintain a security deposit and provided a letter of credit to the landlord for $ 0.2 million, which was subsequently collected in October 2020 following the Company’s release from the security deposit and letter of credit. In April 2019, the Company entered into a facility sublease agreement (the “Sublease”) for 1,471 square feet of office space in Cambridge, Massachusetts. The term of the Sublease began on June 24, 2019 and terminated on June 30, 2020, and following termination, the Company had no further obligations under the Sublease. The Sublease required the Company to share in prorated operating expenses and property taxes based upon actual amounts incurred; those amounts were considered variable lease costs and, therefore, are not included in the measurement of the lease and are instead recognized to expense as incurred. In October 2019, the Company entered into a noncancelable facility lease agreement (the “New Lease”) for 34,522 square feet of research and development and office space in Watertown, Massachusetts. The term of the New Lease is 120 months and expires on March 31, 2030 . The New Lease has an option to be extended for an additional five years . The New Lease is not reasonably certain to be extended and as such the additional term is not included in the measurement of the lease. The New Lease includes a rent escalation clause, and rent expense is being recorded on a straight-line basis. The Company was eligible for and received a tenant incentive allowance of $ 5.5 million in 2020 as the tenant improvements were completed. The full allowance amount had been collected from the landlord as of December 31, 2020. In accordance with the New Lease, the Company is required to maintain a security deposit and provided a letter of credit to the landlord for $ 1.6 million, which is classified as restricted cash on the condensed consolidated balance sheets as of September 30, 2021. The Company’s finance lease obligations consist of certain property and equipment financed through finance leases. The components of the lease costs for the three and nine months ended September 30, 2021 and 2020, were as follows (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Operating lease costs $ 524 $ 606 $ 1,571 $ 2,195 Finance lease costs: Amortization of right-to-use assets, finance leases 279 183 650 539 Interest expense for finance lease liabilities 52 29 106 94 Variable lease costs 358 216 743 431 Total lease costs $ 1,213 $ 1,034 $ 3,070 $ 3,259 Supplemental cash flow information relating to the Company’s leases for the nine months ended September 30, 2021 and 2020 was as follows (in thousands): Nine Months Ended 2021 2020 Cash paid for amounts included in the measurement Operating cash flows used in (provided by) $ 2,060 $ ( 3,793 ) Operating cash flows used in finance leases $ 593 $ 437 Financing cash flows used in finance leases $ 106 $ 94 Weighted average remaining lease terms and discount rates as of September 30, 2021 and 2020 were as follows: Nine Months Ended 2021 2020 Remaining lease term: Operating lease 8.59 years 9.59 years Finance lease 2.61 years 2.99 years Discount Rate: Operating lease 10.50 % 10.50 % Finance lease 8.75 % 8.1 % The undiscounted future lease payments for operating and finance leases as of September 30, 2021, were as follows (in thousands): Fiscal Year Operating Finance 2021 (excluding the first, second and third quarter) $ 631 $ 309 2022 2,581 1,183 2023 2,659 969 2024 2,732 345 2025 2,814 — Thereafter 12,925 — Total minimum lease payments 24,342 2,806 Less amounts representing interest or imputed interest ( 8,436 ) ( 270 ) Present value of lease liabilities $ 15,906 $ 2,536 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities Current [Abstract] | |
Accrued Expenses | 8. Accrued Expenses Accrued expenses consist of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Research and development expenses $ 12,603 $ 5,821 Payroll and payroll-related 3,866 2,918 Professional fees 2,193 1,585 Other 557 6 Accrued expenses $ 19,219 $ 10,330 |
Other Commitments and Contingen
Other Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Other Commitments and Contingencies | 9. Other Commitments and Contingencies Legal Proceedings In the ordinary course of business, the Company may be subject to legal proceedings, claims and litigation as the Company operates in an industry susceptible to patent legal claims. The Company accounts for estimated losses with respect to legal proceedings and claims when such losses are probable and estimable. Legal costs associated with these matters are expensed when incurred. The Company is not currently a party to any legal proceedings. Indemnification Arrangements As permitted under Delaware law, the Company has agreements whereby it indemnifies its investors, employees, officers, and directors (collectively, the “Indemnified Parties”) for certain events or occurrences while the Indemnified Parties are, or were serving, at its request in such capacity. The term of the indemnification period is for the Indemnified Parties’ lifetime. The Company believes the estimated fair value of these indemnification agreements is minimal. The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with any U.S. patent or any copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company is not aware of any claims under indemnification arrangements, and it has no t accrued any liabilities related to such obligations as of September 30, 2021 or December 31, 2020. |
Convertible Preferred Stock
Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Convertible Preferred Stock | 10. Convertible Preferred Stock In January 2020, the Company issued 1,182,265 shares of Series B Preferred Stock at $ 4.06 per share to complete the second closing of the Series B Preferred Stock issuance for total proceeds of $ 4.8 million. The issuance costs related to the second tranche were insignificant. In March 2020, the Company executed a Series C Preferred Stock Purchase Agreement (the “Series C SPA”) to issue 13,539,141 shares of Series C Convertible Preferred Stock (the “Series C Preferred Stock”) at a purchase price of $ 6.5366 per share for a total consideration of $ 88.2 million, net of issuance costs of $ 0.3 million. In conjunction with the Series C SPA, the Company exchanged 1,988,802 shares of Series A Convertible Preferred Stock (the “Series A Preferred Stock”) for an equal number of shares of Series C Preferred Stock related to a transaction amongst investors. This resulted in a total issuance of 15,527,943 shares of Series C Preferred Stock. The fair value of the shares of Series C Preferred Stock issued exceeded the carrying value of the shares of Series A Preferred Stock exchanged by $ 9.1 million, which was recognized as a deemed dividend through a reduction of $ 2.3 million to additional paid-in capital and an increase of $ 6.7 million to the accumulated deficit. The $ 9.1 million deemed dividend increased the net loss for the nine months ended September 30, 2020 to arrive at net loss attributable to common stockholders in the calculation of earnings per share. Immediately prior to the IPO, the Company’s Articles of Association (the “Articles”), as further amended and restated (the “2018 Amended Articles”), authorized a total of 52,483,788 shares of convertible preferred stock with a par value of $ 0.0001 per share, of which 3,000,000 shares have been designated as Series Seed Convertible Preferred Stock, 14,886,305 shares have been designated as Series A Preferred Stock, 16,009,845 shares have been designated as Series B Preferred Stock (the “Series B Preferred Stock”), 3,059,695 shares have been designated as Series B-1 Preferred Stock and 15,527,943 shares have been designated as Series C Preferred Stock. The Series A, Series B, Series B-1 and Series C Preferred Stock are collectively referred to as the Convertible Preferred Stock. In connection with the Company’s August 21, 2020 IPO all issued and outstanding 50,439,595 shares of Convertible Preferred Stock were converted into 31,625,534 shares of the Company’s common stock and are no longer issued or outstanding following the completion of the offering. |
Equity-Based Compensation
Equity-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | 11. Equity-Based Compensation 2018 Stock Option and Grant Plan In November 2018, the Company adopted, and its stockholders approved, the 2018 Stock Option and Grant Plan (the “2018 Plan”), which provides for the granting of stock options and other equity-based awards at the discretion of the Board of Directors or any subcommittee of the Board of Directors to the Company’s employees, officers, directors, and independent contractors. No further grants will be made under the 2018 Plan. However, the 2018 Plan will continue to govern outstanding equity awards granted thereunder. To the extent outstanding options granted under the 2018 Plan are cancelled, forfeited or otherwise terminated without being exercised and would otherwise have been returned to the share reserve under the 2018 Plan, the number of shares underlying such awards will be available for future grant under the 2020 Stock Option and Incentive Plan. 2020 Stock Option and Incentive Plan In August 2020, the Company and its stockholders approved the 2020 Stock Option and Incentive Plan (the “2020 Plan”), which became effective on August 20, 2020. The 2020 Plan replaced the 2018 Plan as the Company’s Board of Directors has determined not to make additional awards under the 2018 Plan following the closing of the Company’s IPO. The 2020 Plan allows the Company to make equity-based and cash-based incentive awards to its officers, employees, directors and consultants. The Company has initially reserved 4,457,370 shares of its common stock for the issuance of awards under the 2020 Plan, which includes the shares of common stock remaining available for issuance under its 2018 Plan as of the business day immediately prior to the effective date of the registration statement. The 2020 Plan provides that the number of shares reserved and available for issuance will automatically increase on January 1, 2021 and each January 1 thereafter, by 4 % of the Company’s outstanding number of shares of common stock on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s compensation committee. These limits are subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. As of September 30, 2021, there were an aggregate of 2,945,752 shares remaining available for future grants. 2020 Employee Stock Purchase Plan In August 2020, the Company and its stockholders approved the 2020 Employee Stock Purchase Plan (the “2020 ESPP”), which became effective August 20, 2020. The 2020 ESPP initially reserves and authorizes the issuance of up to a total of 445,653 shares of common stock to participating employees. The 2020 ESPP provides that the number of shares reserved and available for issuance will automatically increase on January 1, 2021 and each January 1 thereafter through January 1, 2030, by the least of (i) 438,898 shares of common stock, (ii) 1 % of the Company’s outstanding number of shares of common stock on the immediately preceding December 31 or (iii) such lesser number of shares of common stock as determined by the administrator of the 2020 ESPP. The number of shares reserved under the 2020 ESPP is subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. Stock Options A summary of stock option activity under the 2020 Plan during the nine months ended September 30, 2021 is as follows (in thousands except share and per share data): Number of Weighted Weighted Aggregate Outstanding at December 31, 2020 5,832,712 $ 8.17 9.08 $ 314,001 Granted 2,155,337 50.46 Exercised ( 1,193,773 ) 4.92 Forfeited ( 168,721 ) 14.20 Outstanding at September 30, 2021 6,625,555 $ 22.36 8.75 $ 241,651 Exercisable at September 30, 2021 1,728,951 $ 10.50 8.34 $ 83,403 The i ntrinsic value of stock options exercised during the three months ended September 30, 2021 and 2020 was $ 18.7 million and $ 0.5 million, respectively. The i ntrinsic value of stock options exercised during the nine months ended September 30, 2021 and 2020 was $ 55.8 million and $ 0.5 million, respectively. The weighted-average fair value of options granted during the three months ended September 30, 2021 and 2020 was $ 35.38 and $ 12.04 , respectively. The weighted-average fair value of options granted during the nine months ended September 30, 2021 and 2020 was $ 29.55 and $ 7.63 , respectively. As of September 30, 2021, the total unrecognized stock-based compensation expense for unvested stock options was $ 71.9 million, which is expected to be recognized over 2.7 years. The following table outlines our equity-based compensation expense for stock options for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Research and development $ 3,255 $ 635 $ 7,713 $ 1,263 General and administrative 3,995 1,638 8,222 1,927 Total equity-based compensation $ 7,250 $ 2,273 $ 15,935 $ 3,190 The weighted-average assumptions that the Company used in the Black-Scholes option pricing model to determine the grant date fair value of stock options granted to employees and non-employees for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Expected term (in years) 6.06 5.96 5.86 6.10 Volatility 66 % 77 % 66 % 78 % Risk-free interest rate 0.91 % 0.35 % 0.90 % 0.51 % Dividend yield 0.00 % 0.00 % 0.00 % 0.00 % Restricted Common Stock The Company has granted shares of restricted common stock with service-based and performance-based vesting conditions. A summary of restricted stock activity under the 2018 Plan during the nine months ended September 30, 2021 is as follows: Number of Grant Date Unvested at December 31, 2020 110,104 $ 1.60 Vested ( 54,736 ) 1.60 Unvested at September 30, 2021 55,368 $ 1.60 No restricted stock awards were granted during the three or nine months ended September 30, 2021 and 2020. As of September 30, 2021, the total unrecognized stock-based compensation expense for unvested restricted stock was $ 0.1 million, which is expected to be recognized over approximately one year . During the three months ended September 30, 2021 and 2020, the Company recognized an immaterial amount of equity-based compensation expense for restricted stock. During both the nine months ended September 30, 2021 and 2020, the Company recognized approximately $ 0.1 million for restricted stock of which approximately $ 0.1 million and an immaterial amount were included in research and development and general and administrative expense, respectively. Equity-Based Compensation Expense Total equity-based compensation expense recorded as research and development and general and administrative expenses for employees, directors, and non-employees during the three and nine months ended September 30, 2021 and 2020 is as follows (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Research and development $ 3,377 $ 685 $ 8,019 $ 1,422 General and administrative 4,019 1,643 8,275 1,941 Total equity-based compensation $ 7,396 $ 2,328 $ 16,294 $ 3,363 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. Related-Party Transactions In addition to the collaborations discussed in Note 5, the Company had the following related party transactions for the period presented in the accompanying condensed consolidated financial statements, which have not otherwise been discussed in these notes to the condensed consolidated financial statements. The Company made payments of $ 0.8 million to an investor for rent expenses during the nine months ended September 30, 2020. No such payments were made during the three or nine months ended September 30, 2021. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes Income taxes for the three and nine months ended September 30, 2021 and 2020 have been calculated based on an estimated annual effective tax rate and certain discrete items. For the three and nine months ended September 30, 2021 and 2020, no income tax was recorded. On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. Among other things, the CARES Act permits corporate taxpayers to carryback net operating losses (“NOLs”) originating in 2018 through 2020 to each of the five preceding tax years. Further, the CARES Act removed the 80 % taxable income limitation on utilization of those NOLs allowing corporate taxpayers to fully utilize NOL carryforwards to offset taxable income in 2018, 2019 or 2020. Such changes may result in the generation of refunds of previously paid income taxes which are expected to be received over the next eighteen months . The Company has never been examined by the Internal Revenue Service or any other jurisdiction for any tax years and, as such, all years within the applicable statutes of limitations are potentially subject to audit. |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 14. Net Loss per Share Net Loss per Share Basic and diluted loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding (in thousands, except for share and per share data): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Numerator: Net loss $ ( 28,582 ) $ ( 7,986 ) $ ( 66,317 ) $ ( 32,908 ) Deemed dividend from exchange of convertible preferred — — — ( 9,050 ) Net loss attributable to common stockholders $ ( 28,582 ) $ ( 7,986 ) $ ( 66,317 ) $ ( 41,958 ) Denominator: Weighted average common shares outstanding, basic and 50,714,846 20,677,392 46,841,636 8,211,003 Net loss per share, basic and diluted $ ( 0.56 ) $ ( 0.39 ) $ ( 1.42 ) $ ( 5.11 ) The Company’s potentially dilutive securities, which include convertible preferred stock, restricted stock, and stock options, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following from the computation of diluted net loss per share attributable to common stockholders at September 30, 2021 and 2020 because including them would have had an anti-dilutive effect: Nine Months Ended 2021 2020 Unvested restricted stock 55,368 133,317 Options to purchase common stock 6,625,555 5,651,725 Total 6,680,923 5,785,042 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events On October 1, 2021, the Company filed an automatically effective registration statement on Form S-3 (the “Registration Statement”) with the SEC which registers the offering, issuance and sale of an unspecified amount of common stock, preferred stock, debt securities, warrants and/or units of any combination thereof. The Company simultaneously entered into an equity distribution agreement with Cowen and Company, LLC, as sales agent, to provide for the issuance and sale by the Company of up to $ 250.0 million of common stock from time to time in “at-the-market” offerings under the Registration Statement and related prospectus filed with the Registration Statement (the “ATM Program”). No such sales have been made under the ATM Program. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary Kymera Securities Corporation. All intercompany transactions and balances have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements of the Company included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) as found in the Accounting Standards Codification (“ASC”), Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 11, 2021. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements as of and for the year ended December 31, 2020, and, in the opinion of management, reflect all adjustments necessary, all of which were normal and recurring, for the fair statement of the Company’s financial position as of September 30, 2021, the results of operations for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 30, 2021 and 2020. The results for the nine months ended September 30, 2021 are not necessarily indicative of the results for the year ended December 31, 2021 or for any future period. |
Significant Accounting Policies | Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements for the three and nine months ended September 30, 2021 are consistent with those discussed in Note 2 to the consolidated financial statements in the 2020 Annual Report on Form 10-K. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is intended to simplify the accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The new standard was effective beginning January 1, 2021. The Company adopted this standard as of January 1, 2021 and it did not have a material impact on its financial position or results of operation . Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements . The new standard requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. It also limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. As an emerging growth company, the Company expects to delay adoption until January 1, 2023 and is evaluating the impact that the adoption of ASU 2016-13 will have on its condensed consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Recurring Basis | The following table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values as of September 30, 2021 and December 31, 2020 (in thousands): Fair Value Measurements at Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market fund $ 139,640 $ — $ — $ 139,640 Corporate bonds 6,002 — — 6,002 Marketable securities, current US treasuries 166,240 — — 166,240 Corporate bonds — 213,326 — 213,326 Marketable securities, non-current US treasuries 13,501 — — 13,501 Corporate bonds — 61,191 — 61,191 Restricted cash 1,590 — — 1,590 Total $ 326,973 $ 274,517 $ — $ 601,490 Fair Value Measurements at Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market fund $ 19,943 $ — $ — $ 19,943 Corporate bonds — 10,499 — 10,499 Marketable securities, current US treasuries 192,275 — — 192,275 Corporate bonds — 72,923 — 72,923 Marketable securities, non-current US treasuries 132,589 — — 132,589 Corporate bonds — 29,942 — 29,942 Restricted cash 1,589 — — 1,589 Total $ 346,396 $ 113,364 $ — $ 459,760 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Marketable Securities [Abstract] | |
Summary of Available-for-Sale Debt Securities | The following table summarizes the available-for-sale debt securities held at September 30, 2021 and December 31, 2020 and (in thousands): Description Amortized Unrealized Unrealized Fair September 30, 2021 U.S. treasury securities $ 179,723 $ 23 $ ( 5 ) $ 179,741 Corporate securities 274,682 5 ( 169 ) 274,518 Total $ 454,405 $ 28 $ ( 174 ) $ 454,259 Description Amortized Unrealized Unrealized Fair December 31, 2020 U.S. treasury securities $ 324,917 $ — $ ( 53 ) $ 324,864 Corporate securities 102,946 — ( 81 ) 102,865 Total $ 427,863 $ — $ ( 134 ) $ 427,729 |
Collaborations (Tables)
Collaborations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Change in Accounts Receivable, Contract Asset and Liabilities | The following table presents the changes in accounts receivable, contract assets and liabilities for the nine months ended September 30, 2021 (in thousands): Balance at Additions Deductions Balance at Accounts receivable and contract assets: Billed receivables - Sanofi $ 577 $ 2,622 $ ( 3,199 ) $ — Unbilled receivables - Sanofi 856 3,339 ( 2,622 ) 1,573 Total accounts receivable and contract assets $ 1,433 $ 5,961 $ ( 5,821 ) $ 1,573 Contract liabilities: Deferred revenue - Vertex $ 37,748 $ — $ ( 15,086 ) $ 22,662 Deferred revenue - Sanofi 132,642 3,339 ( 42,470 ) 93,511 Total contract liabilities $ 170,390 $ 3,339 $ ( 57,556 ) $ 116,173 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consists of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Lab and office equipment under finance right-of-use asset $ 3,969 $ 2,771 Lab equipment 2,434 1,636 Computer equipment 266 89 Furniture & fixtures 943 861 Leasehold improvements 7,731 7,599 Assets not yet in service 68 32 Total property and equipment 15,411 12,988 Less accumulated depreciation ( 3,227 ) ( 2,147 ) Property and equipment, net $ 12,184 $ 10,841 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Components of Lease Costs | The components of the lease costs for the three and nine months ended September 30, 2021 and 2020, were as follows (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Operating lease costs $ 524 $ 606 $ 1,571 $ 2,195 Finance lease costs: Amortization of right-to-use assets, finance leases 279 183 650 539 Interest expense for finance lease liabilities 52 29 106 94 Variable lease costs 358 216 743 431 Total lease costs $ 1,213 $ 1,034 $ 3,070 $ 3,259 |
Supplemental Cash Flow Information Relating to Leases | Supplemental cash flow information relating to the Company’s leases for the nine months ended September 30, 2021 and 2020 was as follows (in thousands): Nine Months Ended 2021 2020 Cash paid for amounts included in the measurement Operating cash flows used in (provided by) $ 2,060 $ ( 3,793 ) Operating cash flows used in finance leases $ 593 $ 437 Financing cash flows used in finance leases $ 106 $ 94 |
Summary of Weighted Average Remaining Lease Terms and Discount Rates | Weighted average remaining lease terms and discount rates as of September 30, 2021 and 2020 were as follows: Nine Months Ended 2021 2020 Remaining lease term: Operating lease 8.59 years 9.59 years Finance lease 2.61 years 2.99 years Discount Rate: Operating lease 10.50 % 10.50 % Finance lease 8.75 % 8.1 % |
Summary of Undiscounted Future Lease Payments for Operating and Finance Leases | The undiscounted future lease payments for operating and finance leases as of September 30, 2021, were as follows (in thousands): Fiscal Year Operating Finance 2021 (excluding the first, second and third quarter) $ 631 $ 309 2022 2,581 1,183 2023 2,659 969 2024 2,732 345 2025 2,814 — Thereafter 12,925 — Total minimum lease payments 24,342 2,806 Less amounts representing interest or imputed interest ( 8,436 ) ( 270 ) Present value of lease liabilities $ 15,906 $ 2,536 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses consist of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Research and development expenses $ 12,603 $ 5,821 Payroll and payroll-related 3,866 2,918 Professional fees 2,193 1,585 Other 557 6 Accrued expenses $ 19,219 $ 10,330 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Stock Option Activity | A summary of stock option activity under the 2020 Plan during the nine months ended September 30, 2021 is as follows (in thousands except share and per share data): Number of Weighted Weighted Aggregate Outstanding at December 31, 2020 5,832,712 $ 8.17 9.08 $ 314,001 Granted 2,155,337 50.46 Exercised ( 1,193,773 ) 4.92 Forfeited ( 168,721 ) 14.20 Outstanding at September 30, 2021 6,625,555 $ 22.36 8.75 $ 241,651 Exercisable at September 30, 2021 1,728,951 $ 10.50 8.34 $ 83,403 |
Summary of Equity-Based Compensation Expense | Total equity-based compensation expense recorded as research and development and general and administrative expenses for employees, directors, and non-employees during the three and nine months ended September 30, 2021 and 2020 is as follows (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Research and development $ 3,377 $ 685 $ 8,019 $ 1,422 General and administrative 4,019 1,643 8,275 1,941 Total equity-based compensation $ 7,396 $ 2,328 $ 16,294 $ 3,363 |
Summary of Weighted-Average Assumptions | The weighted-average assumptions that the Company used in the Black-Scholes option pricing model to determine the grant date fair value of stock options granted to employees and non-employees for the three and nine months ended September 30, 2021 and 2020 were as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Expected term (in years) 6.06 5.96 5.86 6.10 Volatility 66 % 77 % 66 % 78 % Risk-free interest rate 0.91 % 0.35 % 0.90 % 0.51 % Dividend yield 0.00 % 0.00 % 0.00 % 0.00 % |
Summary of Restricted Stock Activity | The Company has granted shares of restricted common stock with service-based and performance-based vesting conditions. A summary of restricted stock activity under the 2018 Plan during the nine months ended September 30, 2021 is as follows: Number of Grant Date Unvested at December 31, 2020 110,104 $ 1.60 Vested ( 54,736 ) 1.60 Unvested at September 30, 2021 55,368 $ 1.60 |
Stock Options | |
Summary of Equity-Based Compensation Expense | The following table outlines our equity-based compensation expense for stock options for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Research and development $ 3,255 $ 635 $ 7,713 $ 1,263 General and administrative 3,995 1,638 8,222 1,927 Total equity-based compensation $ 7,250 $ 2,273 $ 15,935 $ 3,190 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Loss Per Share | Basic and diluted loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding (in thousands, except for share and per share data): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Numerator: Net loss $ ( 28,582 ) $ ( 7,986 ) $ ( 66,317 ) $ ( 32,908 ) Deemed dividend from exchange of convertible preferred — — — ( 9,050 ) Net loss attributable to common stockholders $ ( 28,582 ) $ ( 7,986 ) $ ( 66,317 ) $ ( 41,958 ) Denominator: Weighted average common shares outstanding, basic and 50,714,846 20,677,392 46,841,636 8,211,003 Net loss per share, basic and diluted $ ( 0.56 ) $ ( 0.39 ) $ ( 1.42 ) $ ( 5.11 ) |
Schedule of Diluted Net Loss Per Share Attributable to Common Stockholders Anti-Diluted Effect | The Company excluded the following from the computation of diluted net loss per share attributable to common stockholders at September 30, 2021 and 2020 because including them would have had an anti-dilutive effect: Nine Months Ended 2021 2020 Unvested restricted stock 55,368 133,317 Options to purchase common stock 6,625,555 5,651,725 Total 6,680,923 5,785,042 |
Organization and Nature of Bu_2
Organization and Nature of Business - Additional Information (Details) | Jul. 06, 2021USD ($)$ / sharesshares | Aug. 25, 2020USD ($)$ / sharesshares | Aug. 20, 2020 | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Organization and Nature of Business [Line Items] | |||||
Accumulated deficit | $ 195,082,000 | $ 128,765,000 | |||
Cash, cash equivalents and marketable securities | $ 611,100,000 | ||||
Reverse stock split, description | On August 20, 2020, the Board approved a 1-for-1.5949 reverse stock split of the Company’s issued and outstanding shares of common stock and a proportional adjustment to the existing conversion ratios for each of the Company’s outstanding series of preferred stock. All share and per share amounts in the accompanying condensed consolidated financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this reverse stock split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid-in capital. | ||||
Reverse stock split | 1.5949 | ||||
Initial Public Offering | |||||
Organization and Nature of Business [Line Items] | |||||
Stock Issued During Period Shares New Issues | shares | 9,987,520 | ||||
Common stock per share | $ / shares | $ 20 | ||||
Gross proceeds from issuance initial public offering | $ 199,800,000 | ||||
Private Placement | Vertex Pharmaceuticals Incorporated | |||||
Organization and Nature of Business [Line Items] | |||||
Stock Issued During Period Shares New Issues | shares | 49,928 | 676,354 | |||
Common stock per share | $ / shares | $ 47 | $ 20 | |||
Aggregate proceeds from issuance of private placement | $ 2,300,000 | $ 13,500,000 | |||
Underwriters | |||||
Organization and Nature of Business [Line Items] | |||||
Stock Issued During Period Shares New Issues | shares | 713,250 | 1,302,720 | |||
Follow-on Offering | |||||
Organization and Nature of Business [Line Items] | |||||
Net proceeds from sale of common stock in public offering | $ 257,000 | ||||
Stock Issued During Period Shares New Issues | shares | 5,468,250 | ||||
Common stock per share | $ / shares | $ 47 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | Sep. 30, 2021 |
Significant Accounting Policies [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Accounting standards update, adoption date | Jan. 1, 2021 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities | $ 454,259 | $ 427,729 |
Fair Value, Recurring | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Restricted cash | 1,590 | 1,589 |
Total | 601,490 | 459,760 |
Fair Value, Recurring | Money Market Fund | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 139,640 | 19,943 |
Fair Value, Recurring | Corporate Bonds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 6,002 | 10,499 |
Short-term investments | 213,326 | 72,923 |
Long-term investments | 61,191 | 29,942 |
Fair Value, Recurring | US Treasuries | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Short-term investments | 166,240 | 192,275 |
Long-term investments | 13,501 | 132,589 |
Fair Value, Recurring | Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Restricted cash | 1,590 | 1,589 |
Total | 326,973 | 346,396 |
Fair Value, Recurring | Level 1 | Money Market Fund | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 139,640 | 19,943 |
Fair Value, Recurring | Level 1 | Corporate Bonds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 6,002 | |
Fair Value, Recurring | Level 1 | US Treasuries | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Short-term investments | 166,240 | 192,275 |
Long-term investments | 13,501 | 132,589 |
Fair Value, Recurring | Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total | 274,517 | 113,364 |
Fair Value, Recurring | Level 2 | Corporate Bonds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 10,499 | |
Short-term investments | 213,326 | 72,923 |
Long-term investments | $ 61,191 | $ 29,942 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 | $ 0 |
Fair value, assets, level 2 to level 1 transfers, amount | 0 | 0 |
Fair value assets, level 1 to level 3 transfers, amount | 0 | 0 |
Fair value assets, level 3 to level 1 transfers, amount | 0 | 0 |
Fair value assets, level 3 to level 2 transfers, amount | 0 | 0 |
Fair value assets, level 2 to level 3 transfers, amount | $ 0 | $ 0 |
Marketable Securities - Summary
Marketable Securities - Summary of Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 454,405 | $ 427,863 |
Unrealized Gains | 28 | |
Unrealized Losses | (174) | (134) |
Fair Value | 454,259 | 427,729 |
U.S. Treasury Securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 179,723 | 324,917 |
Unrealized Gains | 23 | |
Unrealized Losses | (5) | (53) |
Fair Value | 179,741 | 324,864 |
Corporate Securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 274,682 | 102,946 |
Unrealized Gains | 5 | |
Unrealized Losses | (169) | (81) |
Fair Value | $ 274,518 | $ 102,865 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($)Security | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Security | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Security | |
Marketable Securities [Abstract] | |||||
Number of available-for-sale debt securities, continuous unrealized loss position for less than 12 months | Security | 79 | 79 | 65 | ||
Aggregate fair value of available-for-sale debt securities, continuous unrealized loss position for less than 12 months | $ | $ 286,600,000 | $ 286,600,000 | $ 392,200,000 | ||
Number of available-for-sale debt securities, contractual maturity of less than 12 months | Security | 77 | 48 | |||
Fair value of available-for-sale debt securities, contractual maturity of less than 12 months | $ | 379,600,000 | $ 379,600,000 | $ 295,600,000 | ||
Number of available-for-sale debt securities, contractual maturity of greater than 12 months | Security | 24 | 25 | |||
Fair value of available-for-sale debt securities, contractual maturity of greater than 12 months | $ | 74,692,000 | $ 74,692,000 | $ 162,531,000 | ||
Sales of marketable securities | $ | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of securities decline in market value for in an unrealized loss position | Security | 79 |
Collaborations - Additional Inf
Collaborations - Additional Information (Details) | Aug. 20, 2020 | Jul. 07, 2020USD ($) | May 09, 2019USD ($)$ / sharesshares | Nov. 01, 2018 | Oct. 31, 2017shares | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($)shares | Dec. 31, 2020USD ($)shares |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Research and development | $ 38,306,000 | $ 15,778,000 | $ 99,488,000 | $ 41,713,000 | ||||||
Revenue recognized | 20,336,000 | 14,533,000 | 57,557,000 | 21,249,000 | ||||||
Stock split, conversion ratio | 1.5949 | |||||||||
Sanofi Agreement | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront payment | $ 150,000,000 | |||||||||
Collaboration agreement transaction price | 150,000,000 | |||||||||
Revenue recognized recorded in deferred revenue | 16,500,000 | 10,900,000 | 42,500,000 | 10,900,000 | ||||||
Unsatisfied performance obligation | 93,500,000 | 93,500,000 | $ 132,600,000 | |||||||
Cost reimbursement payment received | 3,200,000 | |||||||||
Milestone receivable | 0 | 0 | ||||||||
Royalty receivable | 0 | 0 | ||||||||
Unbilled accounts receivable | 1,600,000 | 1,600,000 | ||||||||
Research and development | $ 0 | |||||||||
Remaining research term of collaboration | 2 years 6 months | |||||||||
Sanofi Agreement | Collaboration Target 1 | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Collaboration agreement transaction price | 120,000,000 | |||||||||
Revenue recognized recorded in deferred revenue | 14,500,000 | 10,200,000 | $ 36,000,000 | 10,200,000 | ||||||
Sanofi Agreement | Collaboration Target 2 | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Collaboration agreement transaction price | 30,000,000 | |||||||||
Revenue recognized recorded in deferred revenue | 2,000,000 | 700,000 | 6,500,000 | 700,000 | ||||||
Sanofi Agreement | Maximum | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Development milestone payments | 1,480,000,000 | |||||||||
Commercial Milestone Payments | 700,000,000 | |||||||||
Sanofi Agreement | Minimum | IRAK4 Program | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Development milestone payments | 1,000,000,000 | |||||||||
Commercial Milestone Payments | $ 400,000,000 | |||||||||
Vertex Agreement | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Revenue recognized recorded in deferred revenue | 15,100,000 | |||||||||
Unsatisfied performance obligation | 22,700,000 | 22,700,000 | 37,700,000 | |||||||
Initial research term of collaboration | 4 years | |||||||||
Extended research term of collaboration | 1 year | |||||||||
Revenue recognized | $ 3,800,000 | $ 3,600,000 | $ 15,100,000 | 10,300,000 | ||||||
Vertex Agreement | Series B-1 Preferred Stock | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Collaboration agreement transaction price | $ 55,900,000 | |||||||||
Non refundable upfront payment received | $ 50,000,000 | |||||||||
Issuance of shares, Shares | shares | 3,059,695 | |||||||||
Stock issued price per share | $ / shares | $ 6.54 | |||||||||
Preferred stock premium | $ 5,900,000 | |||||||||
Vertex Agreement | Maximum | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Eligible to receive payments including development, regulatory and commercial milestones | $ 170,000,000 | |||||||||
Revenue remaining research term | 1 year 3 months 18 days | 1 year 3 months 18 days | ||||||||
Compound Collaboration | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Written notice period to terminate collaboration agreement | 60 days | |||||||||
Compound Collaboration | Series A Preferred Units | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Research and development | $ 300,000 | $ 300,000 | ||||||||
Issuance of shares, Shares | shares | 886,305 | |||||||||
Stock split, conversion ratio | 100 | |||||||||
Share-based compensation vesting period | 3 years | |||||||||
Number of shares vested | shares | 166,183 | 166,183 |
Collaborations - Change in Acco
Collaborations - Change in Accounts Receivable, Contract Asset and Liabilities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Accounts receivable and contract assets, Beginning balance | $ 1,433 |
Accounts receivable and contract assets, Additions | 5,961 |
Accounts receivable and contract assets, Deductions | (5,821) |
Accounts receivable and contract assets, Ending balance | 1,573 |
Contract Liabilities, Beginning balance | 170,390 |
Contract Liabilities, Additions | 3,339 |
Contract Liabilities, Deductions | (57,556) |
Contract Liabilities, Ending balance | 116,173 |
Billed Receivables - Sanofi | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Accounts receivable and contract assets, Beginning balance | 577 |
Accounts receivable and contract assets, Additions | 2,622 |
Accounts receivable and contract assets, Deductions | (3,199) |
Unbilled Receivables - Sanofi | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Accounts receivable and contract assets, Beginning balance | 856 |
Accounts receivable and contract assets, Additions | 3,339 |
Accounts receivable and contract assets, Deductions | (2,622) |
Accounts receivable and contract assets, Ending balance | 1,573 |
Deferred Revenue - Vertex | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Contract Liabilities, Beginning balance | 37,748 |
Contract Liabilities, Deductions | (15,086) |
Contract Liabilities, Ending balance | 22,662 |
Deferred Revenue - Sanofi | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Contract Liabilities, Beginning balance | 132,642 |
Contract Liabilities, Additions | 3,339 |
Contract Liabilities, Deductions | (42,470) |
Contract Liabilities, Ending balance | $ 93,511 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 15,411 | $ 12,988 |
Less accumulated depreciation | (3,227) | (2,147) |
Property and equipment, net | 12,184 | 10,841 |
Lab and Office Equipment Under Finance Right of Use Asset | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,969 | 2,771 |
Lab Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 2,434 | 1,636 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 266 | 89 |
Furniture & Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 943 | 861 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 7,731 | 7,599 |
Assets Not Yet in Service | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 68 | $ 32 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | |||||
Depreciation expense | $ 700 | $ 500 | $ 1,700 | $ 1,300 | |
Property and equipment right of use assets under finance leases with cost basis | 15,411 | 15,411 | $ 12,988 | ||
Amortization expense related to right-of-use assets | 279 | $ 183 | 650 | $ 539 | |
Lab and Office Equipment Under Finance Right of Use Asset | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment right of use assets under finance leases with cost basis | 3,969 | 3,969 | 2,771 | ||
Accumulated amortization | $ 1,200 | $ 1,200 | $ 1,200 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 1 Months Ended | |||||
Mar. 31, 2020USD ($) | Oct. 31, 2019USD ($)ft² | Apr. 30, 2019ft² | Sep. 30, 2021USD ($) | Oct. 31, 2020USD ($) | Feb. 28, 2018ft² | |
Cambridge, Massachusetts | Noncancelable Facility Lease Agreement | ||||||
Lessee Lease Description [Line Items] | ||||||
Area of office space | ft² | 9,836 | |||||
Reduction of right-of-use asset and liability due to lease modification | $ 2.2 | |||||
Lease termination date | Jul. 31, 2020 | |||||
Cambridge, Massachusetts | Noncancelable Facility Lease Agreement | Prepaid Expenses and Other Current Assets | Letter of Credit | ||||||
Lessee Lease Description [Line Items] | ||||||
Security deposit | $ 0.2 | |||||
Cambridge, Massachusetts | Facility Sublease Agreement | ||||||
Lessee Lease Description [Line Items] | ||||||
Area of office space | ft² | 1,471 | |||||
Sublease commencement date | Jun. 24, 2019 | |||||
Watertown, Massachusetts | Noncancelable Facility Lease Agreement | ||||||
Lessee Lease Description [Line Items] | ||||||
Area of office space | ft² | 34,522 | |||||
Lease term | 120 months | |||||
Lease expiration date | Mar. 31, 2030 | |||||
Lease additional term | 5 years | |||||
Tenant incentive allowance receivable | $ 5.5 | |||||
Watertown, Massachusetts | Noncancelable Facility Lease Agreement | Restricted Cash | Letter of Credit | ||||||
Lessee Lease Description [Line Items] | ||||||
Security deposit | $ 1.6 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease costs | $ 524 | $ 606 | $ 1,571 | $ 2,195 |
Amortization expense related to right-of-use assets | 279 | 183 | 650 | 539 |
Interest expense for finance lease liabilities | 52 | 29 | 106 | 94 |
Variable lease costs | 358 | 216 | 743 | 431 |
Total lease costs | $ 1,213 | $ 1,034 | $ 3,070 | $ 3,259 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Relating to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||
Operating cash flows used in (provided by) operating leases | $ 2,060 | $ (3,793) |
Operating cash flows used in finance leases | 593 | 437 |
Financing cash flows used in finance leases | $ 106 | $ 94 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Terms and Discount Rates (Details) | Sep. 30, 2021 | Sep. 30, 2020 |
Leases [Abstract] | ||
Operating lease, remaining lease term | 8 years 7 months 2 days | 9 years 7 months 2 days |
Finance lease, remaining lease term | 2 years 7 months 9 days | 2 years 11 months 26 days |
Operating lease, discount rate | 10.50% | 10.50% |
Finance lease, discount rate | 8.75% | 8.10% |
Leases - Summary of Undiscounte
Leases - Summary of Undiscounted Future Lease Payments for Operating and Finance Leases (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Operating Leases | |
2021 (excluding the first, second and third quarter) | $ 631 |
2022 | 2,581 |
2023 | 2,659 |
2024 | 2,732 |
2025 | 2,814 |
Thereafter | 12,925 |
Total minimum lease payments | 24,342 |
Less amounts representing interest or imputed interest | (8,436) |
Present value of lease liabilities | 15,906 |
Finance Leases | |
2021 (excluding the first, second and third quarter) | 309 |
2022 | 1,183 |
2023 | 969 |
2024 | 345 |
2025 | 0 |
Thereafter | 0 |
Total minimum lease payments | 2,806 |
Less amounts representing interest or imputed interest | (270) |
Present value of lease liabilities | $ 2,536 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Research and development expenses | $ 12,603 | $ 5,821 |
Payroll and payroll-related | 3,866 | 2,918 |
Professional fees | 2,193 | 1,585 |
Other | 557 | 6 |
Accrued expenses | $ 19,219 | $ 10,330 |
Other Commitments and Conting_2
Other Commitments and Contingencies - Additional Information (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Indemnified Parties | ||
Loss Contingencies [Line Items] | ||
Liabilities accrued | $ 0 | $ 0 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 21, 2020 | Mar. 31, 2020 | Jan. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Aug. 20, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Temporary Equity [Line Items] | |||||||||||
Convertible Preferred Stock, par or stated value per share | $ 6.5366 | $ 6.5366 | |||||||||
Stock issuance costs | $ 16,207 | $ 17,003 | $ 16,207 | $ 17,003 | |||||||
Deemed dividend from exchange of convertible preferred stock | $ 0 | $ 0 | 0 | 9,050 | |||||||
Common Stock | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Conversion of stock, shares issued and outstanding | 50,439,595 | ||||||||||
Series B Convertible Preferred Stock | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Convertible Preferred Stock, issued | 1,182,265 | ||||||||||
Convertible Preferred Stock, par or stated value per share | $ 4.06 | ||||||||||
Proceeds from issuance of convertible preferred stock | $ 4,800 | 4,800 | |||||||||
Stock issuance costs | 0 | ||||||||||
Convertible Preferred Stock, authorized | 16,009,845 | ||||||||||
Convertible Preferred Stock, outstanding | 16,009,845 | 14,827,580 | |||||||||
Series C Convertible Preferred Stock | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Convertible Preferred Stock, issued | 15,527,943 | 15,527,943 | |||||||||
Proceeds from issuance of convertible preferred stock | 88,181 | ||||||||||
Stock issuance costs | 320 | ||||||||||
Shares issued upon exchange of Series A convertible preferred stock | 1,988,802 | 1,988,802 | |||||||||
Deemed dividend from exchange of convertible preferred stock | $ 9,100 | $ 9,100 | |||||||||
Reduction of additional paid-in-capital related to temporary equity deemed dividend | 2,300 | ||||||||||
Increase in accumulated deficit related to temporary equity deemed dividend | $ 6,700 | ||||||||||
Convertible Preferred Stock, authorized | 15,527,943 | ||||||||||
Convertible Preferred Stock, outstanding | 15,527,943 | ||||||||||
Series C Convertible Preferred Stock | Series C SPA | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Convertible Preferred Stock, issued | 13,539,141 | 13,539,141 | |||||||||
Proceeds from issuance of convertible preferred stock | $ 88,200 | ||||||||||
Stock issuance costs | $ 300 | ||||||||||
Convertible Preferred Stock | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Convertible Preferred Stock, issued | 0 | ||||||||||
Convertible Preferred Stock, par or stated value per share | $ 0.0001 | ||||||||||
Convertible Preferred Stock, authorized | 52,483,788 | ||||||||||
Number of preferred Stock converted to common stock | 31,625,534 | ||||||||||
Convertible Preferred Stock, outstanding | 0 | ||||||||||
Series Seed Convertible Preferred Stock | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Convertible Preferred Stock, authorized | 3,000,000 | ||||||||||
Convertible Preferred Stock, outstanding | 3,000,000 | 3,000,000 | |||||||||
Series A Convertible Preferred Stock | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Convertible Preferred Stock, authorized | 14,886,305 | ||||||||||
Convertible Preferred Stock, outstanding | 12,842,112 | 14,720,126 | |||||||||
Series B-1 Convertible Preferred Stock | |||||||||||
Temporary Equity [Line Items] | |||||||||||
Convertible Preferred Stock, authorized | 3,059,695 | ||||||||||
Convertible Preferred Stock, outstanding | 3,059,695 | 3,059,695 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Aug. 20, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Equity-based compensation expense | $ 7,396 | $ 2,328 | $ 16,294 | $ 3,363 | |
Research and Development Expense | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Equity-based compensation expense | 3,377 | 685 | 8,019 | 1,422 | |
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Intrinsic value of stock options exercised | $ 18,700 | $ 500 | $ 55,800 | $ 500 | |
Weighted-average fair value of options granted | $ 35.38 | $ 12.04 | $ 29.55 | $ 7.63 | |
Unrecognized stock-based compensation expense | $ 71,900 | $ 71,900 | |||
Unrecognized compensation cost, recognition period | 2 years 8 months 12 days | ||||
Equity-based compensation expense | 7,250 | $ 2,273 | $ 15,935 | $ 3,190 | |
Stock Options | Research and Development Expense | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Equity-based compensation expense | 3,255 | $ 635 | $ 7,713 | 1,263 | |
Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Unrecognized compensation cost, recognition period | 1 year | ||||
Unrecognized stock-based compensation expense | $ 100 | $ 100 | |||
Equity-based compensation expense | 100 | 100 | |||
Restricted Stock | Research and Development Expense | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Equity-based compensation expense | $ 100 | $ 100 | |||
2020 Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares authorized for issuance under plan | 4,457,370 | ||||
Maximum number of shares to be issued, percentage | 4.00% | ||||
Shares remaining available for future grants | 2,945,752 | 2,945,752 | |||
2020 ESPP | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares authorized for issuance under plan | 445,653 | ||||
Share-based compensation, description | The 2020 ESPP provides that the number of shares reserved and available for issuance will automatically increase on January 1, 2021 and each January 1 thereafter through January 1, 2030, by the least of (i) 438,898 shares of common stock, (ii) 1% of the Company’s outstanding number of shares of common stock on the immediately preceding December 31 or (iii) such lesser number of shares of common stock as determined by the administrator of the 2020 ESPP. | ||||
2020 ESPP | Lesser of Potential Outcome 1 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of additional shares authorized | 438,898 | ||||
2020 ESPP | Lesser of Potential Outcome 2 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Maximum number of shares to be issued, percentage | 1.00% | ||||
2018 Plan | Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted | 0 | 0 | 0 | 0 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Stock Option Activity (Details) - 2020 Plan $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at beginning of period | shares | 5,832,712 | |
Granted | shares | 2,155,337 | |
Exercised | shares | (1,193,773) | |
Forfeited | shares | (168,721) | |
Outstanding at end of period | shares | 6,625,555 | 5,832,712 |
Exercisable at September 30, 2021 | shares | 1,728,951 | |
Weighted Average Strike Price Per Option | ||
Outstanding at beginning of period | $ / shares | $ 8.17 | |
Granted | $ / shares | 50.46 | |
Exercised | $ / shares | 4.92 | |
Forfeited | $ / shares | 14.20 | |
Outstanding at end of period | $ / shares | 22.36 | $ 8.17 |
Exercisable at September 30, 2021 | $ / shares | $ 10.50 | |
Weighted Average Remaining Contractual Term (in years) | ||
Outstanding | 8 years 9 months | 9 years 29 days |
Exercisable at September 30, 2021 | 8 years 4 months 2 days | |
Aggregate Intrinsic Value | ||
Outstanding at beginning of period | $ | $ 314,001 | |
Outstanding at end of period | $ | 241,651 | $ 314,001 |
Exercisable at September 30, 2021 | $ | $ 83,403 |
Equity-Based Compensation - S_2
Equity-Based Compensation - Summary of Equity-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation | $ 7,396 | $ 2,328 | $ 16,294 | $ 3,363 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation | 3,377 | 685 | 8,019 | 1,422 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation | 4,019 | 1,643 | 8,275 | 1,941 |
Stock Options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation | 7,250 | 2,273 | 15,935 | 3,190 |
Stock Options | Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation | 3,255 | 635 | 7,713 | 1,263 |
Stock Options | General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total equity-based compensation | $ 3,995 | $ 1,638 | $ 8,222 | $ 1,927 |
Equity-Based Compensation - S_3
Equity-Based Compensation - Summary of Weighted-Average Assumptions (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Expected term (in years) | 6 years 21 days | 5 years 11 months 15 days | 5 years 10 months 9 days | 6 years 1 month 6 days |
Volatility | 6.60% | 77.00% | 66.00% | 78.00% |
Risk-free interest rate | 0.91% | 0.35% | 0.90% | 0.51% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Equity-Based Compensation - S_4
Equity-Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock - 2018 Plan | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of Units Outstanding | |
Unvested at beginning of period | shares | 110,104 |
Vested | shares | (54,736) |
Unvested at end of period | shares | 55,368 |
Grant Date Fair Value per Share | |
Unvested at beginning of period | $ / shares | $ 1.60 |
Vested | $ / shares | 1.60 |
Unvested at end of period | $ / shares | $ 1.60 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Investor | |||
Related Party Transaction [Line Items] | |||
Rent expenses | $ 0 | $ 0 | $ 0.8 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Line Items] | ||||
Income tax expense (benefit) | $ 0 | $ 0 | $ 0 | $ 0 |
Net operating loss carryforwards period CARES Act | 5 years | |||
Net operating loss carryforwards percentage limitations on use CARES Act | 80.00% | |||
Expected income tax refund period CARES Act | 18 months | |||
Earliest Tax Year | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards year CARES Act | 2018 | |||
Latest Tax Year | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryforwards year CARES Act | 2020 |
Net Loss per Share - Summary of
Net Loss per Share - Summary of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net Loss | $ (28,582) | $ (7,986) | $ (66,317) | $ (32,908) |
Deemed dividend from exchange of convertible preferred stock | 0 | 0 | 0 | (9,050) |
Net loss attributable to common stockholders | $ (28,582) | $ (7,986) | $ (66,317) | $ (41,958) |
Weighted average common shares outstanding, basic and diluted | 50,714,846 | 20,677,392 | 46,841,636 | 8,211,003 |
Net loss per share, basic and diluted | $ (0.56) | $ (0.39) | $ (1.42) | $ (5.11) |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Diluted Net Loss Per Share Attributable to Common Stockholders Anti-Diluted Effect (Details) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive stock | 6,680,923 | 5,785,042 |
Unvested Restricted Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive stock | 55,368 | 133,317 |
Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive stock | 6,625,555 | 5,651,725 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) | Oct. 01, 2021 | Jul. 06, 2021 |
Follow-on Offering | ||
Subsequent Event [Line Items] | ||
Gross proceeds from issuance of common stock | $ 257,000 | |
At-the-Market Offerings | Subsequent Events | ||
Subsequent Event [Line Items] | ||
Gross proceeds from issuance of common stock | $ 250,000,000 |