Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
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 | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 51,724,179 | |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 33,733 | $ 47,976 |
Marketable securities (Note 4) | 387,079 | 394,442 |
Contract assets | 1,263 | 135 |
Prepaid expenses and other current assets | 9,307 | 8,720 |
Total current assets | 431,382 | 451,273 |
Marketable securities, non-current (Note 4) | 102,478 | 125,187 |
Property and equipment, net (Note 6) | 11,759 | 11,881 |
Right-of-use assets, operating leases | 9,307 | 9,426 |
Other non-current assets | 2,022 | 2,022 |
Restricted cash | 6,112 | 6,116 |
Total assets | 563,060 | 605,905 |
Current liabilities: | ||
Accounts payable | 2,567 | 4,005 |
Accrued expenses (Note 8) | 20,777 | 22,971 |
Deferred revenue | 60,852 | 61,739 |
Operating lease liabilities | 2,480 | 2,461 |
Finance lease liabilities | 1,087 | 1,138 |
Other current liabilities | 576 | 228 |
Total current liabilities | 88,339 | 92,542 |
Non-current liabilities | ||
Deferred revenue, net of current portion | 31,823 | 39,295 |
Operating lease liabilities, net of current portion | 12,978 | 13,224 |
Finance lease liabilities, net of current portion | 927 | 1,140 |
Other non-current liabilities | 273 | 66 |
Total liabilities | 134,340 | 146,267 |
Stockholders’ equity: | ||
Common stock, $0.0001 par value; 150,000,000 shares authorized as of March 31, 2022 and December 31, 2021, 51,716,194 and 51,573,924 shares issued at March 31, 2022 and December 31, 2021, respectively; 51,692,666 and 51,536,181 shares outstanding at March 31, 2022 and December 31, 2021, respectively | 5 | 5 |
Additional paid-in capital | 697,597 | 689,275 |
Accumulated deficit | (265,666) | (228,982) |
Accumulated other comprehensive loss | (3,216) | (660) |
Total stockholders’ equity | 428,720 | 459,638 |
Total liabilities and stockholders’ equity | $ 563,060 | $ 605,905 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 150,000,000 | 150,000,000 |
Common stock, issued | 51,716,194 | 51,573,924 |
Common Stock, outstanding | 51,692,666 | 51,536,181 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Collaboration Revenue—from related parties | $ 9,622 | $ 18,702 |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | us-gaap:RevenueFromRelatedParties | us-gaap:RevenueFromRelatedParties |
Operating expenses: | ||
Research and development | $ 35,944 | $ 25,962 |
General and administrative | 10,611 | 5,909 |
Total operating expenses | 46,555 | 31,871 |
Loss from operations | (36,933) | (13,169) |
Other income (expense): | ||
Interest and other Income | 290 | 118 |
Interest and other expense | (41) | (24) |
Total other income: | 249 | 94 |
Net loss | (36,684) | (13,075) |
Other comprehensive loss: | ||
Unrealized loss on marketable securities | (2,556) | 115 |
Total comprehensive loss | (39,240) | (12,960) |
Reconciliation of net loss to net loss attributable to common stockholders: | ||
Net loss attributable to common stockholders | $ (36,684) | $ (13,075) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.71) | $ (0.29) |
Weighted average common stock outstanding, basic and diluted | 51,651,125 | 44,649,572 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid In Capital | Accumulated Deficit | Accumulated Other Comprehensive Gain (Loss) |
Beginning Balance at Dec. 31, 2020 | $ 283,888 | $ 4 | $ 412,777 | $ (128,765) | $ (128) |
Shares, Outstanding, Beginning Balance at Dec. 31, 2020 | 44,482,186 | ||||
Exercise of stock options | 1,147 | 1,147 | |||
Exercise of stock options, Shares | 378,762 | ||||
Vesting restricted stock, Shares | 18,428 | ||||
Stock-based compensation expense | 3,172 | 3,172 | |||
Unrealized gain (loss) on marketable securities | 115 | 115 | |||
Net Loss | (13,075) | (13,075) | |||
Ending Balance at Mar. 31, 2021 | 275,247 | $ 4 | 417,096 | (141,840) | (13) |
Shares, Outstanding, Ending Balance at Mar. 31, 2021 | 44,879,376 | ||||
Beginning Balance at Dec. 31, 2021 | 459,638 | $ 5 | 689,275 | (228,982) | (660) |
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 | 51,536,181 | ||||
Exercise of stock options | 449 | 449 | |||
Exercise of stock options, Shares | 142,270 | ||||
Vesting restricted stock, Shares | 14,215 | ||||
Stock-based compensation expense | 7,873 | 7,873 | |||
Unrealized gain (loss) on marketable securities | (2,556) | (2,556) | |||
Net Loss | (36,684) | (36,684) | |||
Ending Balance at Mar. 31, 2022 | $ 428,720 | $ 5 | $ 697,597 | $ (265,666) | $ (3,216) |
Shares, Outstanding, Ending Balance at Mar. 31, 2022 | 51,692,666 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities | ||
Net loss | $ (36,684) | $ (13,075) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 7,873 | 3,172 |
Depreciation and amortization | 687 | 485 |
Premiums and discounts on available-for-sale marketable securities | 1,175 | 1,279 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (586) | (816) |
Receivables—due from related parties | (279) | |
Contract asset—due from related parties | (1,128) | (22) |
Accounts payable | (1,437) | 4,150 |
Accrued expenses and other current liabilities | (2,278) | 235 |
Deferred revenue | (8,359) | (17,822) |
Operating lease right-of-use assets | 119 | 95 |
Operating lease liabilities | (227) | (368) |
Other assets and liabilities | 550 | 143 |
Net cash (used in) provided by operating activities | (40,295) | (22,823) |
Investing activities | ||
Purchase of property and equipment, net | (482) | (164) |
Purchases of investments | (80,118) | (16,013) |
Maturities of investments | 106,463 | 60,500 |
Net cash used in investing activities | 25,863 | 44,323 |
Financing activities | ||
Proceeds from stock option exercises | 449 | 1,147 |
Payments of offering costs in connection with initial public offering | (397) | |
Payments on finance leases | (264) | (155) |
Net cash provided by financing activities | 185 | 595 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (14,247) | 22,095 |
Cash, cash equivalents and restricted cash at beginning of period | 54,092 | 32,593 |
Cash, cash equivalents and restricted cash at end of period | 39,845 | 54,688 |
Supplemental disclosure of cash flow activities | ||
Cash paid for interest | 46 | 24 |
Supplemental disclosure of noncash investing and financing activities | ||
Property and equipment purchases included in accounts payable and accrued expenses | 126 | 259 |
Supplemental disclosure of noncash operating activities | ||
Cash and cash equivalents | 33,733 | 53,098 |
Restricted cash | 6,112 | 1,590 |
Total cash, cash equivalents, and restricted cash | $ 39,845 | $ 54,688 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2022 | |
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 $ 265.7 million as of March 31, 2022. The Company has funded these losses principally through issuance of preferred stock, convertible notes, common stock, including its initial public offering and concurrent private placement completed in August 2020 (“IPO”), follow-on offering and concurrent private placement completed in July 2021 ("Follow-on Offering"), 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 March 31, 2022, the Company had cash, cash equivalents and marketable securities of $ 523.3 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. 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 | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021 included in the Company’s Annual Report on Form 10-K, filed with the SEC on February 24, 2022. 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, 2021, 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 March 31, 2022, and the results of operations and cash flows for the three months ended March 31, 2022 and 2021. The results for the three months ended March 31, 2022 are not necessarily indicative of the results for the year ended December 31, 2022 or for any future period. Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements for the three months ended March 31, 2022 are consistent with those discussed in Note 2 to the consolidated financial statements in the 2021 Annual Report on Form 10-K. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 (in thousands): Fair Value Measurements at Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market fund $ 26,857 $ — $ — $ 26,857 Marketable securities, current US treasuries 150,382 — — 150,382 US government agencies 49,357 — — 49,357 Corporate bonds — 187,340 — 187,340 Marketable securities, non-current US treasuries 16,287 — — 16,287 US government agencies 39,096 — — 39,096 Corporate bonds — 47,095 — 47,095 Restricted cash 6,112 — — 6,112 Total $ 288,091 $ 234,435 $ — $ 522,526 Fair Value Measurements at Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market fund $ 43,182 $ — $ — $ 43,182 Marketable securities, current US treasuries 169,481 — — 169,481 US government agencies 32,170 — — 32,170 Corporate bonds — 192,791 — 192,791 Marketable securities, non-current US treasuries 17,172 — — 17,172 US government agencies 47,363 — — 47,363 Corporate bonds — 60,652 — 60,652 Restricted cash 6,116 — — 6,116 Total $ 315,484 $ 253,443 $ — $ 568,927 During the three months ended March 31, 2022 and the year ended December 31, 2021, there were no transfers between Level 1, Level 2 and Level 3. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2022 | |
Marketable Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities The following table summarizes the available-for-sale debt securities held at March 31, 2022 and December 31, 2021 (in thousands): Description Amortized Unrealized Unrealized Fair March 31, 2022 U.S. treasury securities $ 167,060 $ 6 $ ( 397 ) $ 166,669 US government agencies 89,615 — ( 1,162 ) 88,453 Corporate securities 236,092 — ( 1,657 ) 234,435 Total $ 492,767 $ 6 $ ( 3,216 ) $ 489,557 Description Amortized Unrealized Unrealized Fair December 31, 2021 U.S. treasury securities $ 186,700 $ — $ ( 45 ) $ 186,655 US government agencies 79,657 — ( 125 ) 79,532 Corporate securities 253,929 1 ( 488 ) 253,442 Total $ 520,286 $ 1 $ ( 658 ) $ 519,629 As of March 31, 2 022, the Company held 121 securities that had been in an unrealized loss position for less than 12 months with an aggregate fair value of $ 467.0 million. As of December 31, 2021, the Company held 113 securities that had been in an unrealized loss position for less than 12 months with an aggregate fair value of $ 515.4 million. As of March 31, 2022, the Company had 86 securities with a fair value of $ 387.1 million with a contractual maturity of less than 12 months and 38 securities with a fair value of $ 102.5 million with a contractual maturity of greater than 12 months. As of December 31, 2021, the Company had 79 securities with a fair value of $ 394.4 million with a contractual maturity of less than 12 months and 37 securities with a fair value of $ 125.2 million with a contractual maturity of greater than 12 months. There were no sales of marketable securities during the three months ending March 31, 2022 and 2021. The Company is required to determine whether a decline in the fair value below the amortized cost basis of available-for-sale securities is due to credit-related factors. At each reporting date, the Company performs an evaluation of impairment to determine if any unrealized losses are the result of credit losses. Impairment is assessed at the individual security level. Factors considered in determining whether a loss resulted from a credit loss or other factors include the Company’s intent and ability to hold the investment until the recovery of its amortized cost basis, the extent to which the fair value is less than the amortized cost basis, the length of time and extent to which fair value has been less than the cost basis, the financial condition of the issuer, any historical failure of the issuer to make scheduled interest or principal payments, any changes to the rating of the security by a rating agency, any adverse legal or regulatory events affecting the issuer or issuer’s industry, and any significant deterioration in economic conditions Unrealized losses on available-for-sale securities presented in the previous table have not been recognized in the condensed consolidated statements of operations because the securities are high credit quality, investment grade securities that the Company does not intend to sell and will not be required to sell prior to their anticipated recovery, and the decline in fair value is attributable to factors other than credit losses. Based on its evaluation, the Company determined it does no t have any credit losses related to its available-for-sale securities as of March 31, 2022 and December 31, 2021. |
Collaborations
Collaborations | 3 Months Ended |
Mar. 31, 2022 | |
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 relates 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 obligations have not been fully satisfied as of March 31, 2022. In the three months ended March 31, 2022, the Company recognized $ 6.6 million in revenue under the Sanofi Agreement, of which $ 4.2 million was associated with Collaboration Target 1 and $ 2.4 million was associated with Collaboration Target 2. In the three months ended March 31, 2021, the Company recognize d $ 11.6 million in revenue under the Sanofi Agreement, of which $ 9.5 million was associated with Collaboration Target 1 an d $ 2.1 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 March 31, 2022 and December 31, 2021 is $ 76.4 million and $ 81.8 million, respectively. During the three months ended March 31, 2022, the Company received $ 0.1 million in cost reimbursement payments. No milestone or royalty payments have been received under the Sanofi Agreement. As of March 31, 2022, the Company recorded a contract asset for unbilled accounts receivable of $ 1.3 million related to reimbursable research and development costs under the Sanofi Agreement for activities performed during the first quarter of 2022. As of March 31, 2022, the Company did no t have any research and development costs under the Sanofi Agreement for activities performed during the first quarter of 2022 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 2.0 years as of March 31, 2022. 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. 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 March 31, 2022. During the three months ended March 31, 2022 and 2021, the Company recognized $ 3.0 million and $ 7.1 million, respectively, under the Vertex Agreement. All $ 3.0 million of revenue recognized in the three months ended March 31, 2022 was recognized from amounts that were recorded in deferred revenue as of December 31, 2021. The aggregate amount of the transaction price allocated to the Company’s unsatisfied performance obligation and recorded in deferred revenue at March 31, 2022 and December 31, 2021 is $ 16.2 million and $ 19.2 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 0.8 years as of March 31, 2022. 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. 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 was terminated by the parties effective April 27, 2022 . The following table presents the changes in accounts receivable, contract ass ets and contract liabilities for the three months ended March 31, 2022 (in thousands): Balance at Additions Deductions Balance at Accounts receivable and contract assets: Billed receivables - Sanofi $ — $ 135 $ ( 135 ) $ — Unbilled receivables - Sanofi 135 1,263 ( 135 ) 1,263 Total accounts receivable and contract assets $ 135 $ 1,398 $ ( 270 ) $ 1,263 Contract liabilities: Deferred revenue - Vertex $ 19,212 $ — $ ( 2,981 ) $ 16,231 Deferred revenue - Sanofi 81,822 1,263 ( 6,641 ) 76,444 Total contract liabilities $ 101,034 $ 1,263 $ ( 9,622 ) $ 92,675 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment Property and equipment consists of the following as of March 31, 2022 and December 31, 2021 (in thousands): March 31, December 31, Lab and office equipment under finance right-of-use asset $ 3,969 $ 3,969 Lab equipment 3,034 2,805 Computer equipment 298 273 Furniture & fixtures 1,063 943 Leasehold improvements 7,741 7,741 Assets not yet in service 256 66 Total property and equipment 16,361 15,797 Less accumulated depreciation ( 4,602 ) ( 3,916 ) Property and equipment, net $ 11,759 $ 11,881 Depreciation expense for the three months ended March 31, 2022 and 2021 wa s $ 0.7 million and $ 0.5 million, respectively. Included in property and equipment is lab and office equipment right-of-use assets under finance leases with a cost basis o f $ 4.0 million and $ 4.0 million and accumulated amortization expense of $ 1.8 million a nd $ 1.5 million a s of March 31, 2022 and December 31, 2021, respectively. Amortization expense related to right-of-use assets during the three months ended March 31, 2022 and 2021 was $ 0.3 million and $ 0.2 million, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | 7. Leases In October 2019, the Company entered into a noncancelable facility lease agreement (the “the 2019 Lease”) for 34,522 square feet of research and development and office space in Watertown, Massachusetts. The term of the 2019 Lease is 120 months and expires on March 31, 2030 . The 2019 Lease has an option to be extended for an additional five years . The lease is not reasonably certain to be extended and as such the additional term is not included in the measurement of the lease. The 2019 Lease includes a rent escalation clause, and rent expense is being recorded on a straight-line basis. In accordance with the lease agreement, the Company is required to maintain a security deposit and provided a letter of credit to the landlord for $ 1.6 million, which is recorded in restricted cash as of March 31, 2022 and December 31, 2021. In December 2021, the Company entered into a noncancelable lease (the "2021 Lease") for 100,624 square feet of office and laboratory space in Watertown, Massachusetts, which the Company expects to begin occupying in November 2023 . The 2021 Lease is subject to base rent of $ 0.8 million per month beginning two months after the commencement date, plus the Company’s ratable share of taxes, maintenance and other operating expenses. Base rent is subject to a 3 % annual increase over the lease term of approximately 134 months following the commencement date. The Company also has two consecutive options to extend the term of the lease for five years each at then-market rates. The 2021 Lease also includes a tenant improvement allowance of approximately $ 20.1 million. In connection with the signing of the 2021 Lease, the Company issued a letter of credit for $ 4.5 million which is classified as restricted cash as of March 31, 2022 and December 31, 2021. The Company also paid first month’s rent of $ 0.8 million upon execution of the 2021 Lease in December 2021 which is classified as other non-current assets as of March 31, 2022 and December 31, 2021 . As of March 31, 2022, the Company has not taken control of the space associated with the 2021 Lease and therefore, the Company has not recorded a right of use asset or lease liability related to the space as of March 31, 2022. 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 months ended March 31, 2022 and 2021, were as follows (in thousands): Three Months Ended 2022 2021 Operating lease costs $ 524 $ 524 Finance lease costs: Amortization of right-to-use assets, finance leases 279 178 Interest expense for finance lease liabilities 46 24 Variable lease costs 329 232 Total lease costs $ 1,178 $ 958 Supplemental cash flow information relating to the Company’s leases for the three months ended March 31, 2022 and 2021, were as follows (in thousands): Three Months Ended 2022 2021 Cash paid for amounts included in the measurement Operating cash flows used in operating leases $ 631 $ 797 Operating cash flows used in finance leases $ 264 $ 155 Financing cash flows used in finance leases $ 46 $ 24 Weighted average remaining lease terms and discount rates as of March 31, 2022 and 2021 were as follows: Three Months Ended 2022 2021 Remaining lease term: Operating lease 8.09 years 9.09 years Finance lease 2.10 years 2.60 years Discount Rate: Operating lease 10.50 % 10.50 % Finance lease 8.75 % 8.12 % The undiscounted future lease payments for operating and finance leases as of March 31, 2022, were as follows (in thousands): Fiscal Year Operating Finance 2022 (excluding the first quarter) $ 1,950 $ 874 2023 2,659 969 2024 2,732 343 2025 2,814 — 2026 2,898 — Thereafter 10,027 — Total minimum lease payments 23,080 2,186 Less amounts representing interest or imputed interest ( 7,622 ) ( 172 ) Present value of lease liabilities $ 15,458 $ 2,014 Excluded from the table above are all future payments related to the 2021 lease. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | 8. Accrued Expenses Accrued expenses consist of the following as of March 31, 2022 and December 31, 2021 (in thousands): March 31, December 31, Research and development expenses $ 16,169 $ 15,169 Payroll and payroll-related 2,287 6,033 Professional fees 1,977 1,417 Other 344 352 Accrued expenses $ 20,777 $ 22,971 |
Other Commitments and Contingen
Other Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 or December 31, 2021. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | 10. 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 March 31, 2022, there were an aggregate of 4,024,494 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 lesser 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. As of March 31, 2022, there were an aggregate 1,303,762 shares remaining available for future grants. Stock Options A summary of stock option activity under the 2020 Plan during the three months ended March 31, 2022 is as follows (in thousands except share and per share data): Number of Weighted Weighted Aggregate Outstanding at December 31, 2021 6,239,182 $ 23.91 8.56 $ 246,933 Granted 1,202,466 40.66 Exercised ( 142,270 ) 3.16 Forfeited ( 179,854 ) 32.62 Outstanding at March 31, 2022 7,119,524 $ 26.94 8.59 $ 131,553 Exercisable at March 31, 2022 2,220,906 $ 15.33 8.00 $ 63,215 The i ntrinsic value of stock options exercised during the three months ended March 31, 2022 and 2021 was $ 6.2 million and $ 19.9 million, respectively. The weighted-average fair value of options granted during the three months ended March 31, 2022 and 2021 was $ 22.96 a nd $ 29.25 , respectively. As of March 31, 2022, the total unrecognized stock-based compensation expense for unvested st ock options was $ 82.7 million, with a weighted average recognition period of 2.6 years. The following table outlines our equity-based compensation expense for stock options for the three months ended March 31, 2022 and 2021: Three Months Ended 2022 2021 Research and development $ 3,689 $ 1,676 General and administrative 3,912 1,439 Total equity-based compensation $ 7,601 $ 3,115 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 months ended March 31, 2022 and 2021 were as follows: Three Months Ended 2022 2021 Expected term (in years) 5.81 5.81 Volatility 62 % 66 % Risk-free interest rate 1.59 % 0.84 % Dividend yield 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 during the three months ended March 31, 2022 is as follows: Number of Grant Date Unvested at December 31, 2021 37,745 $ 1.60 Granted 97,974 38.53 Vested ( 14,215 ) 1.60 Unvested at March 31, 2022 121,504 $ 31.38 The Company granted 97,974 shares of restricted common stock during the three months ended March 31, 2022. No restricted stock awards were granted during the three months ended March 31, 2021. As of March 31, 2022, the total unrecognized stock-based compensation expense for unvested restricted stock was $ 3.7 million with a weighted average recognition period of 2.9 years. During the three months ended March 31, 2022 the Company recognized approximately $ 0.1 million for restricted stock of which an immaterial amount were included in research and development and general and administrative expense, respectively. During the three months ended March 31, 2021, the Company recognized an immaterial amount of equity-based compensation expense for restricted stock. 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 months ended March 31, 2022 and 2021 is as follows (in thousands): Three Months Ended 2022 2021 Research and development $ 3,906 $ 1,725 General and administrative 3,967 1,447 Total equity-based compensation $ 7,873 $ 3,172 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related-Party Transactions Other than the collaborations discussed in Note 5, the Company had no related party transactions for the periods presented in the accompanying condensed consolidated financial statements, which have not otherwise been discussed in these notes to the condensed consolidated financial statements. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Income taxes for the three months ended March 31, 2022 and 2021 have been calculated based on an estimated annual effective tax rate and certain discrete items. For the three ended March 31, 2022 and 2021, 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 2019, 2020 or 2021. 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 | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 13. 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 2022 2021 Numerator: Net loss attributable to common stockholders $ ( 36,684 ) $ ( 13,075 ) Denominator: Weighted average common shares outstanding, basic and 51,651,125 44,649,572 Net loss per share, basic and diluted $ ( 0.71 ) $ ( 0.29 ) 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 March 31, 2022 and 2021 because including them would have had an anti-dilutive effect: Three Months Ended 2022 2021 Unvested restricted stock 121,504 91,676 Options to purchase common stock 7,119,524 6,822,467 Total 7,241,028 6,914,143 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021 included in the Company’s Annual Report on Form 10-K, filed with the SEC on February 24, 2022. 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, 2021, 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 March 31, 2022, and the results of operations and cash flows for the three months ended March 31, 2022 and 2021. The results for the three months ended March 31, 2022 are not necessarily indicative of the results for the year ended December 31, 2022 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 months ended March 31, 2022 are consistent with those discussed in Note 2 to the consolidated financial statements in the 2021 Annual Report on Form 10-K. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 (in thousands): Fair Value Measurements at Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market fund $ 26,857 $ — $ — $ 26,857 Marketable securities, current US treasuries 150,382 — — 150,382 US government agencies 49,357 — — 49,357 Corporate bonds — 187,340 — 187,340 Marketable securities, non-current US treasuries 16,287 — — 16,287 US government agencies 39,096 — — 39,096 Corporate bonds — 47,095 — 47,095 Restricted cash 6,112 — — 6,112 Total $ 288,091 $ 234,435 $ — $ 522,526 Fair Value Measurements at Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market fund $ 43,182 $ — $ — $ 43,182 Marketable securities, current US treasuries 169,481 — — 169,481 US government agencies 32,170 — — 32,170 Corporate bonds — 192,791 — 192,791 Marketable securities, non-current US treasuries 17,172 — — 17,172 US government agencies 47,363 — — 47,363 Corporate bonds — 60,652 — 60,652 Restricted cash 6,116 — — 6,116 Total $ 315,484 $ 253,443 $ — $ 568,927 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Marketable Securities [Abstract] | |
Summary of Available-for-Sale Debt Securities | The following table summarizes the available-for-sale debt securities held at March 31, 2022 and December 31, 2021 (in thousands): Description Amortized Unrealized Unrealized Fair March 31, 2022 U.S. treasury securities $ 167,060 $ 6 $ ( 397 ) $ 166,669 US government agencies 89,615 — ( 1,162 ) 88,453 Corporate securities 236,092 — ( 1,657 ) 234,435 Total $ 492,767 $ 6 $ ( 3,216 ) $ 489,557 Description Amortized Unrealized Unrealized Fair December 31, 2021 U.S. treasury securities $ 186,700 $ — $ ( 45 ) $ 186,655 US government agencies 79,657 — ( 125 ) 79,532 Corporate securities 253,929 1 ( 488 ) 253,442 Total $ 520,286 $ 1 $ ( 658 ) $ 519,629 |
Collaborations (Tables)
Collaborations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 ass ets and contract liabilities for the three months ended March 31, 2022 (in thousands): Balance at Additions Deductions Balance at Accounts receivable and contract assets: Billed receivables - Sanofi $ — $ 135 $ ( 135 ) $ — Unbilled receivables - Sanofi 135 1,263 ( 135 ) 1,263 Total accounts receivable and contract assets $ 135 $ 1,398 $ ( 270 ) $ 1,263 Contract liabilities: Deferred revenue - Vertex $ 19,212 $ — $ ( 2,981 ) $ 16,231 Deferred revenue - Sanofi 81,822 1,263 ( 6,641 ) 76,444 Total contract liabilities $ 101,034 $ 1,263 $ ( 9,622 ) $ 92,675 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consists of the following as of March 31, 2022 and December 31, 2021 (in thousands): March 31, December 31, Lab and office equipment under finance right-of-use asset $ 3,969 $ 3,969 Lab equipment 3,034 2,805 Computer equipment 298 273 Furniture & fixtures 1,063 943 Leasehold improvements 7,741 7,741 Assets not yet in service 256 66 Total property and equipment 16,361 15,797 Less accumulated depreciation ( 4,602 ) ( 3,916 ) Property and equipment, net $ 11,759 $ 11,881 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Costs | The components of the lease costs for the three months ended March 31, 2022 and 2021, were as follows (in thousands): Three Months Ended 2022 2021 Operating lease costs $ 524 $ 524 Finance lease costs: Amortization of right-to-use assets, finance leases 279 178 Interest expense for finance lease liabilities 46 24 Variable lease costs 329 232 Total lease costs $ 1,178 $ 958 |
Supplemental Cash Flow Information Relating to Leases | Supplemental cash flow information relating to the Company’s leases for the three months ended March 31, 2022 and 2021, were as follows (in thousands): Three Months Ended 2022 2021 Cash paid for amounts included in the measurement Operating cash flows used in operating leases $ 631 $ 797 Operating cash flows used in finance leases $ 264 $ 155 Financing cash flows used in finance leases $ 46 $ 24 |
Summary of Weighted Average Remaining Lease Terms and Discount Rates | Weighted average remaining lease terms and discount rates as of March 31, 2022 and 2021 were as follows: Three Months Ended 2022 2021 Remaining lease term: Operating lease 8.09 years 9.09 years Finance lease 2.10 years 2.60 years Discount Rate: Operating lease 10.50 % 10.50 % Finance lease 8.75 % 8.12 % |
Summary of Undiscounted Future Lease Payments for Operating and Finance Leases | The undiscounted future lease payments for operating and finance leases as of March 31, 2022, were as follows (in thousands): Fiscal Year Operating Finance 2022 (excluding the first quarter) $ 1,950 $ 874 2023 2,659 969 2024 2,732 343 2025 2,814 — 2026 2,898 — Thereafter 10,027 — Total minimum lease payments 23,080 2,186 Less amounts representing interest or imputed interest ( 7,622 ) ( 172 ) Present value of lease liabilities $ 15,458 $ 2,014 Excluded from the table above are all future payments related to the 2021 lease. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued expenses consist of the following as of March 31, 2022 and December 31, 2021 (in thousands): March 31, December 31, Research and development expenses $ 16,169 $ 15,169 Payroll and payroll-related 2,287 6,033 Professional fees 1,977 1,417 Other 344 352 Accrued expenses $ 20,777 $ 22,971 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Stock Option Activity | A summary of stock option activity under the 2020 Plan during the three months ended March 31, 2022 is as follows (in thousands except share and per share data): Number of Weighted Weighted Aggregate Outstanding at December 31, 2021 6,239,182 $ 23.91 8.56 $ 246,933 Granted 1,202,466 40.66 Exercised ( 142,270 ) 3.16 Forfeited ( 179,854 ) 32.62 Outstanding at March 31, 2022 7,119,524 $ 26.94 8.59 $ 131,553 Exercisable at March 31, 2022 2,220,906 $ 15.33 8.00 $ 63,215 |
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 months ended March 31, 2022 and 2021 is as follows (in thousands): Three Months Ended 2022 2021 Research and development $ 3,906 $ 1,725 General and administrative 3,967 1,447 Total equity-based compensation $ 7,873 $ 3,172 |
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 months ended March 31, 2022 and 2021 were as follows: Three Months Ended 2022 2021 Expected term (in years) 5.81 5.81 Volatility 62 % 66 % Risk-free interest rate 1.59 % 0.84 % Dividend yield 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 during the three months ended March 31, 2022 is as follows: Number of Grant Date Unvested at December 31, 2021 37,745 $ 1.60 Granted 97,974 38.53 Vested ( 14,215 ) 1.60 Unvested at March 31, 2022 121,504 $ 31.38 |
Stock Options | |
Summary of Equity-Based Compensation Expense | The following table outlines our equity-based compensation expense for stock options for the three months ended March 31, 2022 and 2021: Three Months Ended 2022 2021 Research and development $ 3,689 $ 1,676 General and administrative 3,912 1,439 Total equity-based compensation $ 7,601 $ 3,115 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 2021 Numerator: Net loss attributable to common stockholders $ ( 36,684 ) $ ( 13,075 ) Denominator: Weighted average common shares outstanding, basic and 51,651,125 44,649,572 Net loss per share, basic and diluted $ ( 0.71 ) $ ( 0.29 ) |
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 March 31, 2022 and 2021 because including them would have had an anti-dilutive effect: Three Months Ended 2022 2021 Unvested restricted stock 121,504 91,676 Options to purchase common stock 7,119,524 6,822,467 Total 7,241,028 6,914,143 |
Organization and Nature of Bu_2
Organization and Nature of Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 06, 2021 | Aug. 25, 2020 | Mar. 31, 2022 | Dec. 31, 2021 |
Organization and Nature of Business [Line Items] | ||||
Accumulated deficit | $ 265,666 | $ 228,982 | ||
Cash, cash equivalents and marketable securities | $ 523,300 | |||
Initial Public Offering | ||||
Organization and Nature of Business [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 9,987,520 | |||
Common stock per share | $ 20 | |||
Gross proceeds from issuance initial public offering | $ 199,800 | |||
Private Placement | Vertex Pharmaceuticals Incorporated | ||||
Organization and Nature of Business [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 49,928 | 676,354 | ||
Common stock per share | $ 47 | $ 20 | ||
Aggregate proceeds from issuance of private placement | $ 2,300 | $ 13,500 | ||
Underwriters | ||||
Organization and Nature of Business [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 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 | 5,468,250 | |||
Common stock per share | $ 47 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | Mar. 31, 2022 |
Significant Accounting Policies [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities | $ 489,557 | $ 519,629 |
Fair Value, Recurring | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Restricted cash | 6,112 | 6,116 |
Total | 522,526 | 568,927 |
Fair Value, Recurring | Money Market Fund | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 26,857 | 43,182 |
Fair Value, Recurring | US government agencies | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities, current | 49,357 | 32,170 |
Marketable securities, non-current | 39,096 | 47,363 |
Fair Value, Recurring | Corporate Bonds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities, current | 187,340 | 192,791 |
Marketable securities, non-current | 47,095 | 60,652 |
Fair Value, Recurring | US Treasuries | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities, current | 150,382 | 169,481 |
Marketable securities, non-current | 16,287 | 17,172 |
Fair Value, Recurring | Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Restricted cash | 6,112 | 6,116 |
Total | 288,091 | 315,484 |
Fair Value, Recurring | Level 1 | Money Market Fund | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | 26,857 | 43,182 |
Fair Value, Recurring | Level 1 | US government agencies | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities, current | 49,357 | 32,170 |
Marketable securities, non-current | 39,096 | 47,363 |
Fair Value, Recurring | Level 1 | Corporate Bonds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities, current | ||
Marketable securities, non-current | ||
Fair Value, Recurring | Level 1 | US Treasuries | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities, current | 150,382 | 169,481 |
Marketable securities, non-current | 16,287 | 17,172 |
Fair Value, Recurring | Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Restricted cash | ||
Total | 234,435 | 253,443 |
Fair Value, Recurring | Level 2 | Money Market Fund | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | ||
Fair Value, Recurring | Level 2 | US government agencies | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities, current | ||
Marketable securities, non-current | ||
Fair Value, Recurring | Level 2 | Corporate Bonds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities, current | 187,340 | 192,791 |
Marketable securities, non-current | 47,095 | $ 60,652 |
Fair Value, Recurring | Level 2 | US Treasuries | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities, current | ||
Marketable securities, non-current | ||
Fair Value, Recurring | Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Restricted cash | ||
Total | ||
Fair Value, Recurring | Level 3 | Money Market Fund | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents | ||
Fair Value, Recurring | Level 3 | US government agencies | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities, current | ||
Marketable securities, non-current | ||
Fair Value, Recurring | Level 3 | Corporate Bonds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities, current | ||
Marketable securities, non-current | ||
Fair Value, Recurring | Level 3 | US Treasuries | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Marketable securities, current | ||
Marketable securities, non-current |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 492,767 | $ 520,286 |
Unrealized Gains | 6 | 1 |
Unrealized Losses | (3,216) | (658) |
Fair Value | 489,557 | 519,629 |
U.S. Treasury Securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 167,060 | 186,700 |
Unrealized Gains | 6 | |
Unrealized Losses | (397) | (45) |
Fair Value | 166,669 | 186,655 |
US Government Corporations and Agencies Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 89,615 | 79,657 |
Unrealized Gains | ||
Unrealized Losses | (1,162) | (125) |
Fair Value | 88,453 | 79,532 |
Corporate Securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 236,092 | 253,929 |
Unrealized Gains | 1 | |
Unrealized Losses | (1,657) | (488) |
Fair Value | $ 234,435 | $ 253,442 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)Security | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)Security | |
Marketable Securities [Abstract] | |||
Number of available-for-sale debt securities, continuous unrealized loss position for less than 12 months | Security | 121 | 113 | |
Aggregate fair value of available-for-sale debt securities, continuous unrealized loss position for less than 12 months | $ 467,000,000 | $ 515,400,000 | |
Number of available-for-sale debt securities, contractual maturity of less than 12 months | Security | 86 | 79 | |
Fair value of available-for-sale debt securities, contractual maturity of less than 12 months | $ 387,100,000 | $ 394,400,000 | |
Number of available-for-sale debt securities, contractual maturity of greater than 12 months | Security | 38 | 37 | |
Fair value of available-for-sale debt securities, contractual maturity of greater than 12 months | $ 102,478,000 | $ 125,187,000 | |
Sales of marketable securities | 0 | $ 0 | |
Available-for-sale securities, credit losses | $ 0 | $ 0 |
Collaborations - Additional Inf
Collaborations - Additional Information (Details) | Jul. 07, 2020USD ($) | May 09, 2019USD ($)$ / sharesshares | Nov. 01, 2018 | Oct. 31, 2017shares | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Collaboration termination date | Apr. 27, 2022 | ||||||
Research and development | $ 35,944,000 | $ 25,962,000 | |||||
Revenue recognized | 9,622,000 | 18,702,000 | |||||
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 | 6,600,000 | ||||||
Unsatisfied performance obligation | 76,400,000 | $ 81,800,000 | |||||
Cost reimbursement payment received | 100,000 | ||||||
Milestone receivable | 0 | ||||||
Royalty receivable | 0 | ||||||
Unbilled accounts receivable | 1,300,000 | ||||||
Research and development | $ 0 | ||||||
Remaining research term of collaboration | 2 years | ||||||
Revenue recognized | $ 11,600,000 | 11,600,000 | |||||
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 | 4,200,000 | ||||||
Revenue recognized | 9,500,000 | 9,500,000 | |||||
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 | 2,400,000 | ||||||
Revenue recognized | 2,100,000 | 2,100,000 | |||||
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 | 3,000,000 | ||||||
Unsatisfied performance obligation | 16,200,000 | $ 19,200,000 | |||||
Initial research term of collaboration | 4 years | ||||||
Extended research term of collaboration | 1 year | ||||||
Revenue recognized | $ 3,000,000 | $ 7,100,000 | |||||
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 | 9 months 18 days | ||||||
Compound Collaboration | Series A Preferred Units | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Issuance of shares, Shares | shares | 886,305 | ||||||
Stock split, conversion ratio | 100 | ||||||
Share-based compensation vesting period | 3 years |
Collaborations - Change in Acco
Collaborations - Change in Accounts Receivable, Contract Asset and Liabilities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Accounts receivable and contract assets, Beginning balance | $ 135 |
Accounts receivable and contract assets, Additions | 1,398 |
Accounts receivable and contract assets, Deductions | (270) |
Accounts receivable and contract assets, Ending balance | 1,263 |
Contract Liabilities, Beginning balance | 101,034 |
Contract Liabilities, Additions | 1,263 |
Contract Liabilities, Deductions | (9,622) |
Contract Liabilities, Ending balance | 92,675 |
Billed Receivables - Sanofi | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Accounts receivable and contract assets, Beginning balance | 0 |
Accounts receivable and contract assets, Additions | 135 |
Accounts receivable and contract assets, Deductions | (135) |
Accounts receivable and contract assets, Ending balance | 0 |
Unbilled Receivables - Sanofi | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Accounts receivable and contract assets, Beginning balance | 135 |
Accounts receivable and contract assets, Additions | 1,263 |
Accounts receivable and contract assets, Deductions | (135) |
Accounts receivable and contract assets, Ending balance | 1,263 |
Deferred Revenue - Vertex | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Contract Liabilities, Beginning balance | 19,212 |
Contract Liabilities, Additions | |
Contract Liabilities, Deductions | (2,981) |
Contract Liabilities, Ending balance | 16,231 |
Deferred Revenue - Sanofi | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Contract Liabilities, Beginning balance | 81,822 |
Contract Liabilities, Additions | 1,263 |
Contract Liabilities, Deductions | (6,641) |
Contract Liabilities, Ending balance | $ 76,444 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 16,361 | $ 15,797 |
Less accumulated depreciation | (4,602) | (3,916) |
Property and equipment, net | 11,759 | 11,881 |
Lab and Office Equipment Under Finance Right of Use Asset | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,969 | 3,969 |
Lab Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,034 | 2,805 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 298 | 273 |
Furniture & Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 1,063 | 943 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 7,741 | 7,741 |
Assets Not Yet in Service | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 256 | $ 66 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Property Plant And Equipment [Line Items] | |||
Depreciation expense | $ 700 | $ 500 | |
Property and equipment right of use assets under finance leases with cost basis | 16,361 | $ 15,797 | |
Amortization expense related to right-of-use assets | 279 | $ 178 | |
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 | |
Accumulated amortization | $ 1,800 | $ 1,500 |
Leases - Additional Information
Leases - Additional Information (Details) - Watertown, Massachusetts $ in Millions | Dec. 20, 2021USD ($)ft² | Oct. 31, 2019ft² | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Lessee Lease Description [Line Items] | ||||
Lease term | 134 months | |||
Noncancelable Facility Lease Agreement | ||||
Lessee Lease Description [Line Items] | ||||
Area of office space | ft² | 100,624 | 34,522 | ||
Lease term | 120 months | |||
Lease expiration date | Mar. 31, 2030 | |||
Lease additional term | 5 years | 5 years | ||
Tenant incentive allowance receivable | $ 20.1 | |||
Base Rent | $ 0.8 | |||
Annual increase percentage of rent | 3.00% | |||
Rent paid | $ 0.8 | $ 0.8 | ||
Noncancelable Facility Lease Agreement | Restricted Cash | Letter of Credit | 2019 Lease | ||||
Lessee Lease Description [Line Items] | ||||
Security deposit | 1.6 | 1.6 | ||
Noncancelable Facility Lease Agreement | Restricted Cash | Letter of Credit | 2021 Lease | ||||
Lessee Lease Description [Line Items] | ||||
Security deposit | $ 4.5 | $ 4.5 | ||
Facility Sublease Agreement | ||||
Lessee Lease Description [Line Items] | ||||
Lease commencement date | Nov. 30, 2023 |
Leases - Components of Lease Co
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating lease costs | $ 524 | $ 524 |
Amortization expense related to right-of-use assets | 279 | 178 |
Interest expense for finance lease liabilities | 46 | 24 |
Variable lease costs | 329 | 232 |
Total lease costs | $ 1,178 | $ 958 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Relating to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating cash flows used in operating leases | $ 631 | $ 797 |
Operating cash flows used in finance leases | 264 | 155 |
Financing cash flows used in finance leases | $ 46 | $ 24 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Terms and Discount Rates (Details) | Mar. 31, 2022 | Mar. 31, 2021 |
Leases [Abstract] | ||
Operating lease, remaining lease term | 8 years 1 month 2 days | 9 years 1 month 2 days |
Finance lease, remaining lease term | 2 years 1 month 6 days | 2 years 7 months 6 days |
Operating lease, discount rate | 10.50% | 10.50% |
Finance lease, discount rate | 8.75% | 8.12% |
Leases - Summary of Undiscounte
Leases - Summary of Undiscounted Future Lease Payments for Operating and Finance Leases (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Operating Leases | |
2022 (excluding the first quarter) | $ 1,950 |
2023 | 2,659 |
2024 | 2,732 |
2025 | 2,814 |
2026 | 2,898 |
Thereafter | 10,027 |
Total minimum lease payments | 23,080 |
Less amounts representing interest or imputed interest | (7,622) |
Present value of lease liabilities | 15,458 |
Finance Leases | |
2022 (excluding the first quarter) | 874 |
2023 | 969 |
2024 | 343 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Total minimum lease payments | 2,186 |
Less amounts representing interest or imputed interest | (172) |
Present value of lease liabilities | $ 2,014 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Research and development expenses | $ 16,169 | $ 15,169 |
Payroll and payroll-related | 2,287 | 6,033 |
Professional fees | 1,977 | 1,417 |
Other | 344 | 352 |
Accrued expenses | $ 20,777 | $ 22,971 |
Other Commitments and Conting_2
Other Commitments and Contingencies - Additional Information (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Indemnified Parties | ||
Loss Contingencies [Line Items] | ||
Liabilities accrued | $ 0 | $ 0 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Aug. 20, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Equity-based compensation expense | $ 7,873 | $ 3,172 | |
Research and Development Expense | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Equity-based compensation expense | 3,906 | 1,725 | |
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Intrinsic value of stock options exercised | $ 6,200 | $ 19,900 | |
Weighted-average fair value of options granted | $ 22.96 | $ 29.25 | |
Unrecognized stock-based compensation expense | $ 82,700 | ||
Unrecognized compensation cost, recognition period | 2 years 7 months 6 days | ||
Equity-based compensation expense | $ 7,601 | 3,115 | |
Stock Options | Research and Development Expense | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Equity-based compensation expense | $ 3,689 | 1,676 | |
Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost, recognition period | 2 years 10 months 24 days | ||
Granted | 97,974 | ||
Unrecognized stock-based compensation expense | $ 3,700 | ||
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 | 4,024,494 | ||
2020 ESPP | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares remaining available for future grants | 1,303,762 | ||
Share-based compensation, description | 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 lesser 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 | ||
2018 Plan | Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted | 97,974 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Stock Option Activity (Details) - 2020 Plan - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at beginning of period | 6,239,182 | |
Granted | 1,202,466 | |
Exercised | (142,270) | |
Forfeited | (179,854) | |
Outstanding at end of period | 7,119,524 | 6,239,182 |
Exercisable at March 31, 2022 | 2,220,906 | |
Weighted Average Strike Price Per Option | ||
Outstanding at beginning of period | $ 23.91 | |
Granted | 40.66 | |
Exercised | 3.16 | |
Forfeited | 32.62 | |
Outstanding at end of period | 26.94 | $ 23.91 |
Exercisable at March 31, 2021 | $ 15.33 | |
Weighted Average Remaining Contractual Term (in years) | ||
Outstanding | 8 years 7 months 2 days | 8 years 6 months 21 days |
Exercisable at March 31, 2021 | 8 years | |
Aggregate Intrinsic Value | ||
Outstanding at beginning of period | $ 246,933 | |
Outstanding at end of period | 131,553 | $ 246,933 |
Exercisable at March 31, 2021 | $ 63,215 |
Equity-Based Compensation - S_2
Equity-Based Compensation - Summary of Equity-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total equity-based compensation | $ 7,873 | $ 3,172 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total equity-based compensation | 3,906 | 1,725 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total equity-based compensation | 3,967 | 1,447 |
Stock Options | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total equity-based compensation | 7,601 | 3,115 |
Stock Options | Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total equity-based compensation | 3,689 | 1,676 |
Stock Options | General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total equity-based compensation | $ 3,912 | $ 1,439 |
Equity-Based Compensation - S_3
Equity-Based Compensation - Summary of Weighted-Average Assumptions (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Expected term (in years) | 5 years 9 months 21 days | 5 years 9 months 21 days |
Volatility | 62.00% | 66.00% |
Risk-free interest rate | 1.59% | 0.84% |
Dividend yield | 0.00% | 0.00% |
Equity-Based Compensation - S_4
Equity-Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Units Outstanding | |
Granted | 97,974 |
2018 Plan | |
Number of Units Outstanding | |
Unvested at beginning of period | 37,745 |
Granted | 97,974 |
Vested | (14,215) |
Unvested at end of period | 121,504 |
Grant Date Fair Value per Share | |
Unvested at beginning of period | $ / shares | $ 1.60 |
Granted | $ / shares | 38.53 |
Vested | $ / shares | 1.60 |
Unvested at end of period | $ / shares | $ 31.38 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Line Items] | ||
Income tax expense (benefit) | $ 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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net Loss | $ (36,684) | $ (13,075) |
Net loss attributable to common stockholders | $ (36,684) | $ (13,075) |
Weighted average common shares outstanding, basic and diluted | 51,651,125 | 44,649,572 |
Net loss per share, basic and diluted | $ (0.71) | $ (0.29) |
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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive stock | 7,241,028 | 6,914,143 |
Unvested Restricted Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive stock | 121,504 | 91,676 |
Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive stock | 7,119,524 | 6,822,467 |