Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HRTX | |
Entity Registrant Name | HERON THERAPEUTICS, INC. /DE/ | |
Entity Central Index Key | 0000818033 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 119,714,575 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-33221 | |
Entity Tax Identification Number | 94-2875566 | |
Entity Address, Address Line One | 4242 Campus Point Court | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92121 | |
City Area Code | 858 | |
Local Phone Number | 251-4400 | |
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 $0.01 per share | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 27,090 | $ 15,364 |
Short-term investments | 32,932 | 69,488 |
Accounts receivable, net | 51,448 | 52,049 |
Inventory | 52,059 | 54,573 |
Prepaid expenses and other current assets | 14,630 | 13,961 |
Total current assets | 178,159 | 205,435 |
Property and equipment, net | 21,512 | 22,160 |
Right-of-use lease assets | 7,071 | 7,645 |
Other assets | 14,136 | 15,711 |
Total assets | 220,878 | 250,951 |
Current liabilities: | ||
Accounts payable | 4,065 | 3,225 |
Accrued clinical and manufacturing liabilities | 21,273 | 24,468 |
Accrued payroll and employee liabilities | 9,510 | 13,416 |
Other accrued liabilities | 40,290 | 38,552 |
Current lease liabilities | 2,762 | 2,694 |
Total current liabilities | 77,900 | 82,355 |
Non-current lease liabilities | 4,831 | 5,499 |
Non-current convertible notes payable, net | 149,335 | 149,284 |
Other non-current liabilities | 241 | 241 |
Total liabilities | 232,307 | 237,379 |
Stockholders' equity (deficit): | ||
Common stock | 1,193 | 1,191 |
Additional paid-in capital | 1,815,592 | 1,807,855 |
Accumulated other comprehensive income (loss) | 9 | (19) |
Accumulated deficit | (1,828,223) | (1,795,455) |
Total stockholders' equity (deficit) | (11,429) | 13,572 |
Total liabilities and stockholders' equity (deficit) | $ 220,878 | $ 250,951 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Net product sales | $ 29,615 | $ 23,457 |
Operating expenses: | ||
Cost of product sales | 16,854 | 11,355 |
Research and development | 13,817 | 42,070 |
General and administrative | 10,853 | 9,533 |
Sales and marketing | 21,154 | 23,422 |
Total operating expenses | 62,678 | 86,380 |
Loss from operations | (33,063) | (62,923) |
Other income (expense), net | 295 | (965) |
Net loss | (32,768) | (63,888) |
Other comprehensive loss: | ||
Unrealized gains (losses) on short-term investments | 28 | (2) |
Comprehensive loss | $ (32,740) | $ (63,890) |
Basic net loss per share | $ (0.27) | $ (0.63) |
Shares used in computing basic net loss per share | 119,246 | 102,123 |
Diluted net loss per share | $ (0.27) | $ (0.63) |
Shares used in computing diluted net loss per share | 119,246 | 102,123 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at Dec. 31, 2021 | $ 77,570 | $ 1,020 | $ 1,689,987 | $ (6) | $ (1,613,431) |
Balance (in shares) at Dec. 31, 2021 | 102,005 | ||||
Issuance of common stock under equity incentive plan | (637) | $ 1 | (638) | ||
Issuance of common stock under equity incentive plan (in shares) | 138 | ||||
Stock-based compensation expense | 10,915 | 10,915 | |||
Net loss | (63,888) | (63,888) | |||
Net unrealized gain (loss) on short-term investments | (2) | (2) | |||
Comprehensive loss | (63,890) | ||||
Balance at Mar. 31, 2022 | 23,958 | $ 1,021 | 1,700,264 | (8) | (1,677,319) |
Balance (in shares) at Mar. 31, 2022 | 102,143 | ||||
Balance at Dec. 31, 2022 | 13,572 | $ 1,191 | 1,807,855 | (19) | (1,795,455) |
Balance (in shares) at Dec. 31, 2022 | 119,155 | ||||
Issuance of common stock under equity incentive plan | (208) | $ 2 | (210) | ||
Issuance of common stock under equity incentive plan (in shares) | 125 | ||||
Stock-based compensation expense | 7,947 | 7,947 | |||
Net loss | (32,768) | (32,768) | |||
Net unrealized gain (loss) on short-term investments | 28 | 28 | |||
Comprehensive loss | (32,740) | ||||
Balance at Mar. 31, 2023 | $ (11,429) | $ 1,193 | $ 1,815,592 | $ 9 | $ (1,828,223) |
Balance (in shares) at Mar. 31, 2023 | 119,280 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net loss | $ (32,768) | $ (63,888) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 7,947 | 10,915 |
Depreciation and amortization | 718 | 721 |
Amortization of debt issuance costs | 51 | 50 |
(Accretion of discount) amortization of premium on short-term investments | (474) | 104 |
Impairment of property and equipment | 154 | 47 |
Loss on disposal of property and equipment | 96 | |
Change in operating assets and liabilities: | ||
Accounts receivable | 601 | (5,604) |
Inventory | 2,514 | (8,088) |
Prepaid expenses and other assets | 906 | (405) |
Accounts payable | 840 | 4,423 |
Accrued clinical and manufacturing liabilities | (3,195) | 13,561 |
Accrued payroll and employee liabilities | (3,906) | (3,049) |
Other accrued and other non-current liabilities | 1,712 | 7,178 |
Net cash used in operating activities | (24,900) | (43,939) |
Investing activities: | ||
Purchases of short-term investments | (13,942) | (38,023) |
Maturities and sales of short-term investments | 51,000 | 49,957 |
Purchases of property and equipment | (224) | (1,044) |
Proceeds from the sale of property and equipment | 56 | |
Net cash provided by investing activities | 36,834 | 10,946 |
Financing activities: | ||
Payments for stock issued under the equity incentive plan | (208) | (637) |
Net cash used in financing activities | (208) | (637) |
Net increase (decrease) in cash and cash equivalents | 11,726 | (33,630) |
Cash and cash equivalents at beginning of year | 15,364 | 90,541 |
Cash and cash equivalents at end of period | $ 27,090 | $ 56,911 |
Business
Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business | 1. Business We are a commercial-stage biotechnology company focused on improving the lives of patients by developing and commercializing therapeutic innovations that improve medical care. Our advanced science, patented technologies, and innovative approach to drug discovery and development have allowed us to create and commercialize a portfolio of products that aim to advance the standard of care for acute care and oncology patients. ZYNRELEF (bupivacaine and meloxicam) extended-release solution (“ZYNRELEF”) is approved in the U.S., 31 European countries and Canada for the management of postoperative pain. APONVIE (aprepitant) injectable emulsion (“APONVIE”) is approved in the U.S. for the prevention of postoperative nausea and vomiting and became commercially available in March 2023. CINVANTI (aprepitant) injectable emulsion (“CINVANTI”) and SUSTOL (granisetron) extended-release injection (“SUSTOL”) are both approved in the United States (“U.S.”) for the prevention of chemotherapy-induced nausea and vomiting. HTX-034, an investigational agent, is our next-generation product candidate which has been evaluated for the management of postoperative pain. We paused the development of HTX-034 to focus on the efficacy supplement to further expand the ZYNRELEF indication to broadly include soft tissue and orthopedic surgical procedures. We have incurred significant operating losses and negative cash flows from operations. As of March 31, 2023 we had an accumulated deficit of $ 1.8 billion and cash, cash equivalents and short-term investments of $ 60.0 million. In addition, our net loss for the three months ended March 31, 2023 was $ 32.8 million. These factors raise substantial doubt regarding our ability to continue as a going concern for a period of at least one year from the date this Quarterly Report on Form 10-Q is filed with the U.S. Securities and Exchange Commission (“SEC”). In order to meet our cash requirements, we may be required to obtain additional funds and if we are not able to obtain adequate funds, we may be required to delay, reduce the scope of, or eliminate activities to support our Products and reduce personnel and related costs, which could have a material adverse effect on our business. Our capital requirements and liquidity for the next twelve months will depend on numerous factors, including but not limited to: the degree of commercial success of our Products; the impact of competitive products; the timing and cost to manufacture our Products; the costs associated with the U.S. commercial launch of ZYNRELEF and APONVIE; the time, cost and outcome involved in seeking a further expanded label for ZYNRELEF in the U.S.; our ability to establish and maintain strategic collaborations or partnerships for research, development, clinical testing, manufacturing and marketing of our Products and product candidates; and general market conditions. Management’s view of our liquidity relies on estimates and assumptions about the market opportunity for the expanded U.S. label of ZYNRELEF, which estimates and assumptions are subject to significant uncertainty. We may not be able to raise sufficient additional capital when needed on favorable terms, or at all. If we are unable to obtain adequate funds, we may be required to curtail significantly or cease our operations. If we issue additional equity securities or securities convertible into equity securities to raise funds, our stockholders will suffer dilution of their investment, and such issuance may adversely affect the market price of our common stock. Any new debt financing we enter into may involve covenants that restrict our operations. These restrictive covenants may include, among other things, limitations on borrowing and specific restrictions on the use of our assets, as well as prohibitions on our ability to create liens, pay dividends, redeem capital stock or make investments. In the event that additional funds are obtained through arrangements with collaborative partners, these arrangements may require us to relinquish rights to some of our technologies, product candidates or Products on terms that are not favorable to us or require us to enter into a collaboration arrangement that we would otherwise seek to develop and commercialize ourselves. If adequate funds are not available, we may default on our indebtedness, which could have a material adverse effect on our business. The accompanying condensed consolidated financial statements have been prepared assuming we will continue to operate as a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business, and do not reflect any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may results from uncertainty related to its ability to continue as a going concern. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for other quarters or the year ending December 31, 2022. The condensed consolidated balance sheet as of December 31, 2022 has been derived from the audited financial statements as of that date, but does not include all of the information and disclosures required by GAAP. For more complete financial information, these condensed consolidated financial statements and the notes thereto should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 , which was filed with the SEC on March 29, 2023. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting Policies | 3. Accounting Policies Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Heron Therapeutics, Inc. and its wholly-owned subsidiary, Heron Therapeutics B.V., which was organized in the Netherlands in March 2015. Heron Therapeutics B.V. has no operations and no material assets or liabilities, and there have been no significant transactions related to Heron Therapeutics B.V. since its inception. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Our significant accounting policies that involve significant judgment and estimates include revenue recognition, investments, inventory and the related reserves, accrued clinical liabilities, income taxes and stock-based compensation. Actual results could differ materially from those estimates. Cash, Cash Equivalents and Short-term Investments Cash and cash equivalents consist of cash and highly liquid investments with contractual maturities of three months or less from the original purchase date. Short-term investments consist of securities with contractual maturities of greater than three months from the original purchase date. Securities with contractual maturities greater than one year are classified as short-term investments on the condensed consolidated balance sheets, as we have the ability, if necessary, to liquidate these securities to meet our liquidity needs in the next 12 months. We have classified our short-term investments as available-for-sale securities in the accompanying condensed consolidated financial statements. Available-for-sale securities are stated at fair market value, with net changes in unrealized gains and losses reported in other comprehensive loss and realized gains and losses included in other income (expense). The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in interest income. Concentration of Credit Risk Cash, cash equivalents and short-term investments are financial instruments that potentially subject us to concentrations of credit risk. We deposit our cash in financial institutions. At times, such deposits may be in excess of insured limits. We have not experienced any losses in such accounts and believe we are not exposed to significant risk with respect to our cash, cash equivalents and short-term investments. We may also invest our excess cash in money market funds, U.S. government and agencies, corporate debt securities and commercial paper. We have established guidelines relative to our diversification of our cash investments and their maturities in an effort to maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates. ZYNRELEF, APONVIE, CINVANTI and SUSTOL (collectively, our “Products”) are distributed in the U.S. through a limited number of specialty distributors and full line wholesalers (collectively, “Customers”) that resell to healthcare providers and hospitals, the end users of our Products. The following table includes the percentage of net product sales and accounts receivable balances for our three major Customers, each of which comprised 10% or more of our net product sales: Net Product Sales Accounts Three Months Ended As of Customer A 41.3 % 47.7 % Customer B 39.5 % 37.1 % Customer C 17.9 % 14.4 % Total 98.7 % 99.2 % Accounts Receivable, Net Accounts receivable are recorded at the invoice amount, net of an allowance for credit losses. The allowance for credit losses reflects accounts receivable balances that are believed to be uncollectible. In estimating the allowance for credit losses, we consider: (1) our historical experience with collections and write-offs; (2) the credit quality of our Customers and any recent or anticipated changes thereto; (3) the outstanding balances and past due amounts from our Customers; and (4) reasonable and supportable forecast of economic conditions expected to exist throughout the contractual term of the receivable. We offered extended payment terms to our Customers in connection with our product launch of APONVIE in March 2023. As of March 31, 2023 and December 31, 2022, we determined that an allowance for credit losses was not required. For the three months ended March 31, 2023 and 2022, we did not have any material write-offs of accounts receivable balances. Inventory Inventory is stated at the lower of cost or estimated net realizable value on a first-in, first-out, or FIFO, basis. We periodically analyze our inventory levels and write down inventory that has become obsolete, inventory that has a cost basis in excess of its estimated realizable value and inventory quantities that are in excess of expected sales requirements as cost of product sales. The determination of whether inventory costs will be realizable requires estimates by management. If actual market conditions are less favorable than projected by management, additional write-downs of inventory may be required, which would be recorded as cost of product sales. Leases We determine if an arrangement is a lease or contains lease components at inception. Operating leases with an initial term greater than 12 months are recorded as lease liabilities with corresponding right-of-use (“ROU”) lease assets on the condensed consolidated balance sheets. ROU lease assets represent our right to use the underlying assets over the lease term, and lease liabilities represent the present value of our obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The ROU lease assets equal the lease liabilities, less unamortized lease incentives, unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease. The lease term includes any option to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with both lease and non-lease components, which are generally accounted for separately. Revenue Recognition Revenue is recognized in accordance with the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). Topic 606 is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Product Sales Our Products are distributed in the U.S. through a limited number of Customers that resell to healthcare providers and hospitals, the end users of our Products. Revenue is recognized in an amount that reflects the consideration we expect to receive in exchange for our Products. To determine revenue recognition for contracts with customers within the scope of Topic 606, we perform the following 5 steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations of the contract(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract(s); and (v) recognize revenue when (or as) we satisfy the performance obligations. We recognize revenue from product sales when there is a transfer of control of the product to our Customers. We typically determine transfer of control based on when the product is delivered, and title passes to our Customers. Product Sales Allowances We recognize product sales allowances as a reduction of product sales in the same period the related revenue is recognized. Product sales allowances are based on amounts owed or to be claimed on the related sales. Such variable consideration includes estimates that take into consideration the terms of our agreements with Customers, historical product returns, rebates or discounts taken, the shelf life of the product and specific known market events, such as competitive pricing and new product introductions. If actual future results vary from our estimates, we may need to adjust these estimates, which could have an effect on product sales and earnings in the period of adjustment. Our product sales allowances include: • Product Returns—We allow our Customers to return product for credit for up to 12 months after its product expiration date. As such, there may be a significant period of time between the time the product is shipped and the time the credit is issued on returned product. • Distributor Fees—We pay distribution service fees to our Customers based on a contractually fixed percentage of the wholesale acquisition costs and fees for data. These fees are paid no later than two months after the quarter in which product was shipped. • Group Purchasing Organization (“GPO”) Discounts and Rebates—We offer cash discounts to GPO members. These discounts are taken when the GPO members purchase product from our Customers, who then charge back to us the discount amount. Additionally, we offer volume and contract-tier rebates to GPO members. Rebates are based on actual purchase levels during the quarterly rebate purchase period. • GPO Administrative Fees—We pay administrative fees to GPOs for services and access to data. These fees are based on contracted terms and are paid after the quarter in which the product was purchased by the GPOs’ members. • Medicaid Rebates—We participate in Medicaid rebate programs, which provide assistance to certain low-income patients based on each individual state’s guidelines regarding eligibility and services. Under the Medicaid rebate programs, we pay a rebate to each participating state, generally within three months after the quarter in which the product was sold. We believe our estimated allowance for product returns requires a high degree of judgment and is subject to change based on our experience and certain quantitative and qualitative factors. We believe our estimated allowances for distributor fees, GPO discounts, rebates and administrative fees and Medicaid rebates do not require a high degree of judgment because the amounts are settled within a relatively short period of time. Our product sales allowances and related accruals are evaluated each reporting period and adjusted when trends or significant events indicate that a change in estimate is appropriate. Changes in product sales allowance estimates could materially affect our results of operations and financial position. The following table provides disaggregated net product sales (in thousands): For the Three Months Ended March 31, 2023 2022 CINVANTI net product sales $ 22,855 $ 20,343 SUSTOL net product sales 2,983 2,061 ZYNRELEF net product sales 3,533 1,053 APONVIE net product sales 244 — Total net product sales $ 29,615 $ 23,457 The following table provides a summary of activity with respect to our product returns, distributor fees and discounts, rebates and administrative fees, which are included in other accrued liabilities on the condensed consolidated balance sheets (in thousands): Product Distributor Discounts, Total Balance at December 31, 2022 $ 3,336 $ 4,180 $ 25,801 $ 33,317 Provision 565 5,371 40,380 46,316 Payments/credits ( 339 ) ( 4,451 ) ( 40,234 ) ( 45,024 ) Balance at March 31, 2023 $ 3,562 $ 5,100 $ 25,947 $ 34,609 Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net changes in unrealized gains and losses on available-for-sale securities are included in other comprehensive income (loss) and represent the difference between our net loss and comprehensive loss for both periods presented. Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration of common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, restricted stock units, warrants and shares of common stock underlying convertible notes are considered to be common stock equivalents and are included in the calculation of diluted net loss per share only when their effect is dilutive. Because we have incurred a net loss for both periods presented in the unaudited condensed consolidated statements of operations and comprehensive loss, the following common stock equivalents were not included in the computation of net loss per share because their effect would be anti-dilutive (in thousands): March 31, 2023 2022 Stock options outstanding 21,376 18,705 Restricted stock units outstanding 3,851 2,530 Warrants outstanding 8,548 — Shares of common stock underlying convertible notes 9,819 9,819 Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that we adopt as of the specified effective date. We have evaluated recently issued accounting pronouncements and do no t believe any will have a material impact on our consolidated financial statements or related financial statement disclosures. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The FASB ASC Topic 820, Fair Value Measurements and Disclosures , establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: • Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We measure cash, cash equivalents and short-term investments at fair value on a recurring basis. The fair values of such assets were as follows (in thousands): Fair Value Measurements at Reporting Date Using Balance at Quoted Prices Significant Significant Cash and money market funds $ 25,095 $ 25,095 $ — $ — U.S. treasury bills and government agency obligations 22,734 22,734 — — U.S. commercial paper 1,995 — 1,995 — Foreign commercial paper 10,198 — 10,198 — Total $ 60,022 $ 47,829 $ 12,193 $ — Fair Value Measurements at Reporting Date Using Balance at Quoted Prices Significant Significant Cash and money market funds $ 13,867 $ 13,867 $ — $ — U.S. treasury bills and government agency obligations 35,715 35,715 — — U.S. corporate debt securities 1,497 — 1,497 — U.S. commercial paper 5,481 — 5,481 — Foreign commercial paper 28,292 — 28,292 — Total $ 84,852 $ 49,582 $ 35,270 $ — We have no t transferred any investment securities between the three levels of the fair value hierarchy. As of March 31, 2023 , cash equivalents included $ 2.0 million of available-for-sale securities with contractual maturities of three months or less and short-term investments included $ 32.9 million of available-for-sale securities with contractual maturities of three months to one year. As of December 31, 2022 , cash equivalents included $ 1.5 million of available-for-sale securities with contractual maturities of three months or less and short-term investments included $ 69.5 million of available-for-sale securities with contractual maturities of three months to one year. The money market funds as of March 31, 2023 and December 31, 2022 are included in cash and cash equivalents on the condensed consolidated balance sheets. A company may elect to use fair value to measure accounts and loans receivable, available-for-sale and held-to-maturity securities, equity method investments, accounts payable, guarantees and issued debt. Other eligible items include firm commitments for financial instruments that otherwise would not be recognized at inception and non-cash warranty obligations where a warrantor is permitted to pay a third party to provide the warranty goods or services. If the use of fair value is elected, any upfront costs and fees related to the item such as debt issuance costs must be recognized in earnings and cannot be deferred. The fair value election is irrevocable and generally made on an instrument-by-instrument basis, even if a company has similar instruments that it elects not to measure based on fair value. Unrealized gains and losses on existing items for which fair value has been elected are reported as a cumulative adjustment to beginning retained earnings and any changes in fair value are recognized in earnings. We have elected to not apply the fair value option to our financial assets and liabilities. Financial instruments, including cash, cash equivalents, receivables, inventory, prepaid expenses, other current assets, accounts payable and accrued expenses are carried at cost, which is considered to be representative of their respective fair values because of the short-term maturity of these instruments. Short-term available-for-sale investments are carried at fair value. Our convertible notes outstanding at March 31, 2023 and December 31, 2022 do not have a readily available ascertainable market value, however, the carrying value is considered to approximate its fair value. |
Short-term Investments
Short-term Investments | 3 Months Ended |
Mar. 31, 2023 | |
Short Term Investments [Abstract] | |
Short-term Investments | 5. Short-term Investments The following is a summary of our short-term investments (in thousands): March 31, 2023 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value U.S. treasury bills and government agency obligations $ 22,726 $ 8 $ — $ 22,734 Foreign commercial paper 10,198 — — 10,198 Total $ 32,924 $ 8 $ — $ 32,932 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value U.S. treasury bills and government agency obligations $ 35,734 $ — $ ( 19 ) $ 35,715 U.S. commercial paper 5,481 — — 5,481 Foreign commercial paper 28,292 — — 28,292 Total $ 69,507 $ — $ ( 19 ) $ 69,488 The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. We regularly monitor and evaluate the realizable value of our marketable securities. We did no t recognize any impairment losses during the three months ended March 31, 2023 and 2022. Unrealized gains and losses associated with our investments are reported in accumulated other comprehensive income (loss). Realized gains and losses associated with our investments, if any, are reported in the statements of operations and comprehensive loss. We did no t recognize any realized gains or losses during the three months ended March 31, 2023 and 2022. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | 6. Inventory Inventory consists of the following (in thousands): March 31, 2023 December 31, 2022 Raw materials $ 16,409 $ 15,137 Work in process 17,913 20,723 Finished goods 17,737 18,713 Total inventory $ 52,059 $ 54,573 As of March 31, 2023 , total inventory included $ 27.5 million related to ZYNRELEF, $ 21.0 million related to CINVANTI, $ 2.3 million related to SUSTOL and $ 1.3 million related to APONVIE. As of December 31, 2022 , total inventory included $ 30.9 million related to ZYNRELEF, $ 19.9 million related to CINVANTI, $ 2.6 million related to SUSTOL and $ 1.2 million for APONVIE. For the three months ended March 31, 2023, cost of product sales included charges of $ 5.3 million resulting primarily from the write-off of short-dated ZYNRELEF inventory. There was no comparable activity for the three months ended March 31, 2022. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 7. Leases As of March 31, 2023, we had an operating lease for 52,148 square feet of laboratory and office space in San Diego, California, with a lease term that expires on December 31, 2025 . In October 2021, we entered into a sublease agreement to sublet 23,873 square feet of laboratory and office space. The space was delivered to the subtenant in March 2022. As a result of the sublease agreement, our one 5 -year option to renew this lease on expiration applies only with respect to our remaining 28,275 square feet of laboratory and office space. During the three months ended March 31, 2023 and 2022, we recognized $ 0.7 million of operating lease expense and we paid $ 0.7 million for our operating lease for both periods. Annual future minimum lease payments as of March 31, 2023 are as follows (in thousands): 2023 $ 2,231 2024 3,030 2025 3,097 2026 — Total future minimum lease payments $ 8,358 Less: discount ( 765 ) Total lease liabilities $ 7,593 |
Reorganizations
Reorganizations | 3 Months Ended |
Mar. 31, 2023 | |
Reorganizations [Abstract] | |
Reorganizations | 8. Reorganizations In June 2022, we implemented a restructuring plan under which we provided employees one-time severance payments upon termination, continuation of benefits for a specific period of time, outplacement services and certain stock award modifications. The total amount incurred for these activities was $ 5.4 million, $ 5.0 million of which was primarily for severance and $ 0.4 million of which was for non-cash, stock-based compensation expense related to stock award modifications. As of March 31, 2023, we have paid $ 5.0 million of the total cash severance charges. We have accounted for these expenses in accordance with the FASB ASC Topic 420, Exit or Disposal Cost Obligations . |
Convertible Notes
Convertible Notes | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 9. Convertible Notes Senior Unsecured Convertible Notes In May 2021, we entered into a note purchase agreement with funds affiliated with Baker Bros. Advisors LP for a private placement of $ 150.0 million in Senior Unsecured Convertible Notes (“Notes”). We received a total of $ 149.0 million, net of issuance costs, from the issuance of these Notes. The Notes were issued at par. The Notes bear interest at a rate of 1.5 % per annum, payable in cash semi-annually in arrears on June 15 th and December 15 th of each year, beginning on December 15, 2021 . The Notes mature on May 26, 2026 , unless earlier converted, redeemed or repurchased. The Notes will be subject to redemption at our option, between May 24, 2024 and May 24, 2025, but only if the last reported sale price per share of our common stock exceeds 250 % of the conversion price for a specified period of time, or on or after May 24, 2025 if the last reported sale price per share of our common stock exceeds 200 % of the conversion price for a specified period of time. The redemption price will be equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest. Upon conversion, we will settle the Notes in shares of our common stock. The initial conversion rate for the Notes is 65.4620 shares per $ 1,000 principal amount of the Notes (equivalent to an initial conversion price of $ 15.276 per share of common stock). If a holder of the Notes converts upon a make-whole fundamental change or company redemption, the holder may be eligible to receive a make-whole premium through an increase to the conversion rate. In May 2021, we filed a registration statement with the SEC to register for resale 12.4 million shares of our common stock underlying the Notes, including the maximum number of shares of common stock issuable under the make-whole premium. The Notes were accounted for in accordance with ASC Subtopic 470-20, Debt with Conversion and Other Options (“ASC 470-20”) and ASC Subtopic 815-40, Contracts in Entity’s Own Equity (“ASC 815-40”). Under ASC 815-40, to qualify for equity classification (or non-bifurcation, if embedded), the instrument (or embedded feature) must be both (1) indexed to the issuer’s stock and (2) meet the requirements of the equity classification guidance. Based upon our analysis, it was determined that the Notes do contain embedded features indexed to our own stock, but do not meet the requirements for bifurcation, and therefore do not need to be separately accounted for as an equity component. Since the embedded conversion feature meets the equity scope exception from derivative accounting, and, also since the embedded conversion option does not need to be separately accounted for as an equity component under ASC 470-20, the proceeds received from the issuance of the Notes were recorded as a liability on the condensed consolidated balance sheets. We incurred issuance costs related to the Notes of $ 1.0 million, which we recorded as debt issuance costs and are included as a reduction to the Notes on the condensed consolidated balance sheets. The debt issuance costs are being amortized to interest expense using the effective interest rate method over the term of the Notes, resulting in an effective interest rate of 1.6 %. For the three months ended March 31, 2023, interest expense related to the Notes was $ 614,000 , which included $ 563,000 related to the stated interest rate and $ 51,000 related to the amortization of debt issuance costs. For the three months ended March 31, 2022, interest expense related to the Notes was $ 613,000 , which included $ 563,000 related to the stated interest rate and $ 50,000 related to the amortization of debt issuance costs. As of March 31, 2023, the carrying value of the Notes was $ 149.3 million, which is comprised of the $ 150.0 million principal amount of the Notes outstanding, less debt issuance costs of $ 0.7 million. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity On August 8, 2022, we entered into an agreement to sell 16.1 million shares of our common stock in a private placement at a purchase price of $ 3.10 per share ( “ Private Placement ” ). In addition, as a component of the Private Placement, we agreed to sell 8.5 million pre-funded warrants to purchase shares of our common stock at a purchase price of $ 3.0999 per share. The pre-funded warrants have an exercise price of $ 0.0001 per share. The total net proceeds from the sale of the common stock and pre-funded warrants is $ 75.1 million (net of $ 1.4 million in issuance costs). The Private Placement closed on August 10, 2022. In October 2022, we filed a registration statement with the SEC to register for resale 24.6 million shares of our common stock. The registration statement was declared effective on October 18, 2022. |
Equity Incentive Plan
Equity Incentive Plan | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity Incentive Plan | 11. Equity Incentive Plan Option Plan Activity The following table summarizes the stock option activity for the three months ended March 31, 2023: Shares Weighted- Weighted- Outstanding at December 31, 2022 20,749 $ 14.61 6.44 Granted 1,588 $ 2.92 Exercised — $ — Expired and forfeited ( 961 ) $ 15.52 Outstanding at March 31, 2023 21,376 $ 13.70 5.61 The following table summarizes the restricted stock unit activity (“RSUs”) for the three months ended March 31, 2023: Shares Weighted-Average Grant Date Fair Value Outstanding at December 31, 2022 3,167 $ 6.46 Granted 1,408 $ 2.58 Released ( 195 ) $ 10.13 Expired and forfeited ( 529 ) $ 3.16 Outstanding at March 31, 2023 3,851 $ 5.31 Stock-based Compensation The following table summarizes stock-based compensation expense related to stock-based payment awards granted pursuant to all of our equity compensation arrangements (in thousands): Three Months Ended 2023 2022 Research and development $ 2,939 $ 4,563 General and administrative 2,329 3,002 Sales and marketing 2,679 3,350 Total stock-based compensation expense $ 7,947 $ 10,915 As of March 31, 2023 , there was $ 38.8 million of total unrecognized compensation cost related to non-vested, stock-based payment awards granted under all of our equity compensation plans and all non-plan option grants. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. We expect to recognize this compensation cost over a weighted-average period of 2.0 years. The fair value of RSUs is estimated based on the closing market price of our common stock on the date of the grant. RSUs generally vest quarterly over a four-year period. We estimated the fair value of each option grant on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions: For the Three Months Ended March 31, 2023 2022 Risk-free interest rate 3.7 % 2.1 % Dividend yield 0.0 % 0.0 % Volatility 63.9 % 59.1 % Expected life (years) 6 6 We estimated the fair value of each purchase right granted under our 1997 Employee Stock Purchase Plan, as amended, at the beginning of each new offering period using the Black-Scholes option pricing model. There were no new offering periods during the three months ended March 31, 2023 and 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Deferred income tax assets and liabilities are recognized for temporary differences between financial statements and income tax carrying values using tax rates in effect for the years such differences are expected to reverse. Due to uncertainties surrounding our ability to generate future taxable income and consequently realize such deferred income tax assets, a full valuation allowance has been established. We continue to maintain a full valuation allowance against our deferred tax assets as of March 31, 2023. The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will be recognized when it is more likely than not of being sustained. The disclosures regarding uncertain tax positions included in our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on March 29, 2023, continue to be accurate for the three months ended March 31, 2023 . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events In April 2023, we implemented changes to our leadership structure. In connection with these changes, we provided or will provide these executive officers with one-time severance payments upon termination, continued benefits for a specified period of time, and certain stock option modifications. The anticipated total expense for these activities is $ 8.9 million, $ 2.8 million of which is primarily for severance and $ 6.1 million of which is for non-cash, stock-based compensation expense. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for other quarters or the year ending December 31, 2022. The condensed consolidated balance sheet as of December 31, 2022 has been derived from the audited financial statements as of that date, but does not include all of the information and disclosures required by GAAP. For more complete financial information, these condensed consolidated financial statements and the notes thereto should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 , which was filed with the SEC on March 29, 2023. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Heron Therapeutics, Inc. and its wholly-owned subsidiary, Heron Therapeutics B.V., which was organized in the Netherlands in March 2015. Heron Therapeutics B.V. has no operations and no material assets or liabilities, and there have been no significant transactions related to Heron Therapeutics B.V. since its inception. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Our significant accounting policies that involve significant judgment and estimates include revenue recognition, investments, inventory and the related reserves, accrued clinical liabilities, income taxes and stock-based compensation. Actual results could differ materially from those estimates. |
Cash, Cash Equivalents and Short-term Investments | Cash, Cash Equivalents and Short-term Investments Cash and cash equivalents consist of cash and highly liquid investments with contractual maturities of three months or less from the original purchase date. Short-term investments consist of securities with contractual maturities of greater than three months from the original purchase date. Securities with contractual maturities greater than one year are classified as short-term investments on the condensed consolidated balance sheets, as we have the ability, if necessary, to liquidate these securities to meet our liquidity needs in the next 12 months. We have classified our short-term investments as available-for-sale securities in the accompanying condensed consolidated financial statements. Available-for-sale securities are stated at fair market value, with net changes in unrealized gains and losses reported in other comprehensive loss and realized gains and losses included in other income (expense). The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in interest income. |
Concentration of Credit Risk | Concentration of Credit Risk Cash, cash equivalents and short-term investments are financial instruments that potentially subject us to concentrations of credit risk. We deposit our cash in financial institutions. At times, such deposits may be in excess of insured limits. We have not experienced any losses in such accounts and believe we are not exposed to significant risk with respect to our cash, cash equivalents and short-term investments. We may also invest our excess cash in money market funds, U.S. government and agencies, corporate debt securities and commercial paper. We have established guidelines relative to our diversification of our cash investments and their maturities in an effort to maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates. ZYNRELEF, APONVIE, CINVANTI and SUSTOL (collectively, our “Products”) are distributed in the U.S. through a limited number of specialty distributors and full line wholesalers (collectively, “Customers”) that resell to healthcare providers and hospitals, the end users of our Products. The following table includes the percentage of net product sales and accounts receivable balances for our three major Customers, each of which comprised 10% or more of our net product sales: Net Product Sales Accounts Three Months Ended As of Customer A 41.3 % 47.7 % Customer B 39.5 % 37.1 % Customer C 17.9 % 14.4 % Total 98.7 % 99.2 % |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable are recorded at the invoice amount, net of an allowance for credit losses. The allowance for credit losses reflects accounts receivable balances that are believed to be uncollectible. In estimating the allowance for credit losses, we consider: (1) our historical experience with collections and write-offs; (2) the credit quality of our Customers and any recent or anticipated changes thereto; (3) the outstanding balances and past due amounts from our Customers; and (4) reasonable and supportable forecast of economic conditions expected to exist throughout the contractual term of the receivable. We offered extended payment terms to our Customers in connection with our product launch of APONVIE in March 2023. As of March 31, 2023 and December 31, 2022, we determined that an allowance for credit losses was not required. For the three months ended March 31, 2023 and 2022, we did not have any material write-offs of accounts receivable balances. |
Inventory | Inventory Inventory is stated at the lower of cost or estimated net realizable value on a first-in, first-out, or FIFO, basis. We periodically analyze our inventory levels and write down inventory that has become obsolete, inventory that has a cost basis in excess of its estimated realizable value and inventory quantities that are in excess of expected sales requirements as cost of product sales. The determination of whether inventory costs will be realizable requires estimates by management. If actual market conditions are less favorable than projected by management, additional write-downs of inventory may be required, which would be recorded as cost of product sales. |
Leases | Leases We determine if an arrangement is a lease or contains lease components at inception. Operating leases with an initial term greater than 12 months are recorded as lease liabilities with corresponding right-of-use (“ROU”) lease assets on the condensed consolidated balance sheets. ROU lease assets represent our right to use the underlying assets over the lease term, and lease liabilities represent the present value of our obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The ROU lease assets equal the lease liabilities, less unamortized lease incentives, unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease. The lease term includes any option to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with both lease and non-lease components, which are generally accounted for separately. |
Revenue Recognition | Revenue Recognition Revenue is recognized in accordance with the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). Topic 606 is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Product Sales Our Products are distributed in the U.S. through a limited number of Customers that resell to healthcare providers and hospitals, the end users of our Products. Revenue is recognized in an amount that reflects the consideration we expect to receive in exchange for our Products. To determine revenue recognition for contracts with customers within the scope of Topic 606, we perform the following 5 steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations of the contract(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract(s); and (v) recognize revenue when (or as) we satisfy the performance obligations. We recognize revenue from product sales when there is a transfer of control of the product to our Customers. We typically determine transfer of control based on when the product is delivered, and title passes to our Customers. Product Sales Allowances We recognize product sales allowances as a reduction of product sales in the same period the related revenue is recognized. Product sales allowances are based on amounts owed or to be claimed on the related sales. Such variable consideration includes estimates that take into consideration the terms of our agreements with Customers, historical product returns, rebates or discounts taken, the shelf life of the product and specific known market events, such as competitive pricing and new product introductions. If actual future results vary from our estimates, we may need to adjust these estimates, which could have an effect on product sales and earnings in the period of adjustment. Our product sales allowances include: • Product Returns—We allow our Customers to return product for credit for up to 12 months after its product expiration date. As such, there may be a significant period of time between the time the product is shipped and the time the credit is issued on returned product. • Distributor Fees—We pay distribution service fees to our Customers based on a contractually fixed percentage of the wholesale acquisition costs and fees for data. These fees are paid no later than two months after the quarter in which product was shipped. • Group Purchasing Organization (“GPO”) Discounts and Rebates—We offer cash discounts to GPO members. These discounts are taken when the GPO members purchase product from our Customers, who then charge back to us the discount amount. Additionally, we offer volume and contract-tier rebates to GPO members. Rebates are based on actual purchase levels during the quarterly rebate purchase period. • GPO Administrative Fees—We pay administrative fees to GPOs for services and access to data. These fees are based on contracted terms and are paid after the quarter in which the product was purchased by the GPOs’ members. • Medicaid Rebates—We participate in Medicaid rebate programs, which provide assistance to certain low-income patients based on each individual state’s guidelines regarding eligibility and services. Under the Medicaid rebate programs, we pay a rebate to each participating state, generally within three months after the quarter in which the product was sold. We believe our estimated allowance for product returns requires a high degree of judgment and is subject to change based on our experience and certain quantitative and qualitative factors. We believe our estimated allowances for distributor fees, GPO discounts, rebates and administrative fees and Medicaid rebates do not require a high degree of judgment because the amounts are settled within a relatively short period of time. Our product sales allowances and related accruals are evaluated each reporting period and adjusted when trends or significant events indicate that a change in estimate is appropriate. Changes in product sales allowance estimates could materially affect our results of operations and financial position. The following table provides disaggregated net product sales (in thousands): For the Three Months Ended March 31, 2023 2022 CINVANTI net product sales $ 22,855 $ 20,343 SUSTOL net product sales 2,983 2,061 ZYNRELEF net product sales 3,533 1,053 APONVIE net product sales 244 — Total net product sales $ 29,615 $ 23,457 The following table provides a summary of activity with respect to our product returns, distributor fees and discounts, rebates and administrative fees, which are included in other accrued liabilities on the condensed consolidated balance sheets (in thousands): Product Distributor Discounts, Total Balance at December 31, 2022 $ 3,336 $ 4,180 $ 25,801 $ 33,317 Provision 565 5,371 40,380 46,316 Payments/credits ( 339 ) ( 4,451 ) ( 40,234 ) ( 45,024 ) Balance at March 31, 2023 $ 3,562 $ 5,100 $ 25,947 $ 34,609 |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net changes in unrealized gains and losses on available-for-sale securities are included in other comprehensive income (loss) and represent the difference between our net loss and comprehensive loss for both periods presented. |
Net Loss per Share | Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration of common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, restricted stock units, warrants and shares of common stock underlying convertible notes are considered to be common stock equivalents and are included in the calculation of diluted net loss per share only when their effect is dilutive. Because we have incurred a net loss for both periods presented in the unaudited condensed consolidated statements of operations and comprehensive loss, the following common stock equivalents were not included in the computation of net loss per share because their effect would be anti-dilutive (in thousands): March 31, 2023 2022 Stock options outstanding 21,376 18,705 Restricted stock units outstanding 3,851 2,530 Warrants outstanding 8,548 — Shares of common stock underlying convertible notes 9,819 9,819 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that we adopt as of the specified effective date. We have evaluated recently issued accounting pronouncements and do no t believe any will have a material impact on our consolidated financial statements or related financial statement disclosures. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Percentage of Net Product Sales and Accounts Receivable Balance | The following table includes the percentage of net product sales and accounts receivable balances for our three major Customers, each of which comprised 10% or more of our net product sales: Net Product Sales Accounts Three Months Ended As of Customer A 41.3 % 47.7 % Customer B 39.5 % 37.1 % Customer C 17.9 % 14.4 % Total 98.7 % 99.2 % |
Schedule of Disaggregated Net Product Sales | The following table provides disaggregated net product sales (in thousands): For the Three Months Ended March 31, 2023 2022 CINVANTI net product sales $ 22,855 $ 20,343 SUSTOL net product sales 2,983 2,061 ZYNRELEF net product sales 3,533 1,053 APONVIE net product sales 244 — Total net product sales $ 29,615 $ 23,457 |
Summary of Activity to Product Returns, Distributor Fees and Discounts, Rebates and Administrative Fees | The following table provides a summary of activity with respect to our product returns, distributor fees and discounts, rebates and administrative fees, which are included in other accrued liabilities on the condensed consolidated balance sheets (in thousands): Product Distributor Discounts, Total Balance at December 31, 2022 $ 3,336 $ 4,180 $ 25,801 $ 33,317 Provision 565 5,371 40,380 46,316 Payments/credits ( 339 ) ( 4,451 ) ( 40,234 ) ( 45,024 ) Balance at March 31, 2023 $ 3,562 $ 5,100 $ 25,947 $ 34,609 |
Common Stock Equivalents Excluded From Computation of Net Loss Per Share | Because we have incurred a net loss for both periods presented in the unaudited condensed consolidated statements of operations and comprehensive loss, the following common stock equivalents were not included in the computation of net loss per share because their effect would be anti-dilutive (in thousands): March 31, 2023 2022 Stock options outstanding 21,376 18,705 Restricted stock units outstanding 3,851 2,530 Warrants outstanding 8,548 — Shares of common stock underlying convertible notes 9,819 9,819 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | We measure cash, cash equivalents and short-term investments at fair value on a recurring basis. The fair values of such assets were as follows (in thousands): Fair Value Measurements at Reporting Date Using Balance at Quoted Prices Significant Significant Cash and money market funds $ 25,095 $ 25,095 $ — $ — U.S. treasury bills and government agency obligations 22,734 22,734 — — U.S. commercial paper 1,995 — 1,995 — Foreign commercial paper 10,198 — 10,198 — Total $ 60,022 $ 47,829 $ 12,193 $ — Fair Value Measurements at Reporting Date Using Balance at Quoted Prices Significant Significant Cash and money market funds $ 13,867 $ 13,867 $ — $ — U.S. treasury bills and government agency obligations 35,715 35,715 — — U.S. corporate debt securities 1,497 — 1,497 — U.S. commercial paper 5,481 — 5,481 — Foreign commercial paper 28,292 — 28,292 — Total $ 84,852 $ 49,582 $ 35,270 $ — |
Short-term Investments (Tables)
Short-term Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Short Term Investments [Abstract] | |
Summary of Short-term Investments | The following is a summary of our short-term investments (in thousands): March 31, 2023 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value U.S. treasury bills and government agency obligations $ 22,726 $ 8 $ — $ 22,734 Foreign commercial paper 10,198 — — 10,198 Total $ 32,924 $ 8 $ — $ 32,932 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value U.S. treasury bills and government agency obligations $ 35,734 $ — $ ( 19 ) $ 35,715 U.S. commercial paper 5,481 — — 5,481 Foreign commercial paper 28,292 — — 28,292 Total $ 69,507 $ — $ ( 19 ) $ 69,488 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following (in thousands): March 31, 2023 December 31, 2022 Raw materials $ 16,409 $ 15,137 Work in process 17,913 20,723 Finished goods 17,737 18,713 Total inventory $ 52,059 $ 54,573 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Summary of Future Minimum Lease Payments | Annual future minimum lease payments as of March 31, 2023 are as follows (in thousands): 2023 $ 2,231 2024 3,030 2025 3,097 2026 — Total future minimum lease payments $ 8,358 Less: discount ( 765 ) Total lease liabilities $ 7,593 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the stock option activity for the three months ended March 31, 2023: Shares Weighted- Weighted- Outstanding at December 31, 2022 20,749 $ 14.61 6.44 Granted 1,588 $ 2.92 Exercised — $ — Expired and forfeited ( 961 ) $ 15.52 Outstanding at March 31, 2023 21,376 $ 13.70 5.61 |
Summary of Restricted Stock Unit Activity | The following table summarizes the restricted stock unit activity (“RSUs”) for the three months ended March 31, 2023: Shares Weighted-Average Grant Date Fair Value Outstanding at December 31, 2022 3,167 $ 6.46 Granted 1,408 $ 2.58 Released ( 195 ) $ 10.13 Expired and forfeited ( 529 ) $ 3.16 Outstanding at March 31, 2023 3,851 $ 5.31 |
Summary of Stock-Based Compensation Expense related to Stock-Based Payment Awards Granted | The following table summarizes stock-based compensation expense related to stock-based payment awards granted pursuant to all of our equity compensation arrangements (in thousands): Three Months Ended 2023 2022 Research and development $ 2,939 $ 4,563 General and administrative 2,329 3,002 Sales and marketing 2,679 3,350 Total stock-based compensation expense $ 7,947 $ 10,915 |
Summary of Fair Value of Option Grant on Grant Date Using Black-Scholes Option Pricing Model | We estimated the fair value of each option grant on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions: For the Three Months Ended March 31, 2023 2022 Risk-free interest rate 3.7 % 2.1 % Dividend yield 0.0 % 0.0 % Volatility 63.9 % 59.1 % Expected life (years) 6 6 |
Business - Additional Informati
Business - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) Country | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Business [Line Items] | |||
Accumulated deficit | $ (1,828,223) | $ (1,795,455) | |
Cash, cash equivalents and short-term investments | 60,000 | ||
Net loss | $ 32,768 | $ 63,888 | |
H T X011 | European Countries and Canada | |||
Business [Line Items] | |||
Number of countries approved the drug | Country | 31 |
Accounting Policies - Percentag
Accounting Policies - Percentage of Net Product Sales and Accounts Receivable Balance (Details) - Customer Concentration Risk | 3 Months Ended |
Mar. 31, 2023 | |
Revenue Benchmark | Largest Customer | |
Product Information [Line Items] | |
Concentration risk percentage | 41.30% |
Revenue Benchmark | Second Largest Customer | |
Product Information [Line Items] | |
Concentration risk percentage | 39.50% |
Revenue Benchmark | Third Largest Customer | |
Product Information [Line Items] | |
Concentration risk percentage | 17.90% |
Revenue Benchmark | Total Customer | |
Product Information [Line Items] | |
Concentration risk percentage | 98.70% |
Accounts Receivable | Largest Customer | |
Product Information [Line Items] | |
Concentration risk percentage | 47.70% |
Accounts Receivable | Second Largest Customer | |
Product Information [Line Items] | |
Concentration risk percentage | 37.10% |
Accounts Receivable | Third Largest Customer | |
Product Information [Line Items] | |
Concentration risk percentage | 14.40% |
Accounts Receivable | Total Customer | |
Product Information [Line Items] | |
Concentration risk percentage | 99.20% |
Accounting Policies - Summary o
Accounting Policies - Summary of Disaggregated Net Product Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Product Information [Line Items] | ||
Net product sales | $ 29,615 | $ 23,457 |
CINVANTI | ||
Product Information [Line Items] | ||
Net product sales | 22,855 | 20,343 |
SUSTOL | ||
Product Information [Line Items] | ||
Net product sales | 2,983 | 2,061 |
ZYNRELEF | ||
Product Information [Line Items] | ||
Net product sales | 3,533 | $ 1,053 |
APONVIE | ||
Product Information [Line Items] | ||
Net product sales | $ 244 |
Accounting Policies - Summary_2
Accounting Policies - Summary of Activity to Product Returns, Distributor Fees and Discounts, Rebates and Administrative Fees (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Product Information [Line Items] | |
Balance | $ 33,317 |
Provision | 46,316 |
Payments/credits | (45,024) |
Balance | 34,609 |
Product Returns | |
Product Information [Line Items] | |
Balance | 3,336 |
Provision | 565 |
Payments/credits | (339) |
Balance | 3,562 |
Distributor Fees | |
Product Information [Line Items] | |
Balance | 4,180 |
Provision | 5,371 |
Payments/credits | (4,451) |
Balance | 5,100 |
Discounts, Rebates and Administrative Fees | |
Product Information [Line Items] | |
Balance | 25,801 |
Provision | 40,380 |
Payments/credits | (40,234) |
Balance | $ 25,947 |
Accounting Policies - Common St
Accounting Policies - Common Stock Equivalents Excluded From Computation of Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement, Option | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares excluded (in shares) | 21,376 | 18,705 |
Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares excluded (in shares) | 3,851 | 2,530 |
Warrant | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares excluded (in shares) | 8,548 | |
Convertible Debt Securities | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Shares excluded (in shares) | 9,819 | 9,819 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Details) | Mar. 31, 2023 |
Accounting Standards Update 2020-06 | |
Product Information [Line Items] | |
Change in accounting principle, accounting standards update, immaterial effect | true |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 32,932 | $ 69,488 |
U.S. Treasury Bills and Government Agency Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 22,734 | 35,715 |
U.S. Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 5,481 | |
Fair Value, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 60,022 | 84,852 |
Fair Value, Recurring | Foreign Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,198 | 28,292 |
Fair Value, Recurring | U.S. Treasury Bills and Government Agency Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 22,734 | 35,715 |
Fair Value, Recurring | U.S. Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,497 | |
Fair Value, Recurring | U.S. Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,995 | 5,481 |
Fair Value, Recurring | Cash and Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and money market funds | 25,095 | 13,867 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 47,829 | 49,582 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury Bills and Government Agency Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 22,734 | 35,715 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and money market funds | 25,095 | 13,867 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 12,193 | 35,270 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Foreign Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,198 | 28,292 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,497 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 1,995 | $ 5,481 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Financial instruments transferred among fair value hierarchy levels | $ 0 | |
Cash equivalents included of available-for-sale securities | 2,000,000 | $ 1,500,000 |
Available for sale securities with contractual maturities of three months to one year. | $ 32,900,000 | $ 69,500,000 |
Short-term Investments - Summar
Short-term Investments - Summary of Short-term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | $ 32,924 | $ 69,507 |
Available-for-sale securities, gross unrealized gains | 8 | |
Available-for-sale securities, gross unrealized losses | (19) | |
Available-for-sale securities | 32,932 | 69,488 |
U.S. Treasury Bills and Government Agency Obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 22,726 | 35,734 |
Available-for-sale securities, gross unrealized gains | 8 | |
Available-for-sale securities, gross unrealized losses | (19) | |
Available-for-sale securities | 22,734 | 35,715 |
U.S. Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 5,481 | |
Available-for-sale securities | 5,481 | |
Foreign Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale securities, amortized cost | 10,198 | 28,292 |
Available-for-sale securities | $ 10,198 | $ 28,292 |
Short-term Investments - Additi
Short-term Investments - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Short Term Investments [Abstract] | ||
Debt securities, impairment losses | $ 0 | $ 0 |
Debt securities, available-for-sale, realized gain (loss) | $ 0 | $ 0 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 16,409 | $ 15,137 |
Work in process | 17,913 | 20,723 |
Finished goods | 17,737 | 18,713 |
Total inventory | $ 52,059 | $ 54,573 |
Inventory - Additional Informat
Inventory - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Inventory [Line Items] | ||
Total inventory | $ 52,059 | $ 54,573 |
ZYNRELEF | ||
Inventory [Line Items] | ||
Total inventory | 27,500 | 30,900 |
Cost of product sales, charges | 5,300 | |
CINVANTI | ||
Inventory [Line Items] | ||
Total inventory | 21,000 | 19,900 |
SUSTOL | ||
Inventory [Line Items] | ||
Total inventory | 2,300 | 2,600 |
APONVIE | ||
Inventory [Line Items] | ||
Total inventory | $ 1,300 | $ 1,200 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 USD ($) ft² | Mar. 31, 2022 USD ($) | Oct. 31, 2021 ft² | |
Sublease Agreement | |||
Lessee Lease Description [Line Items] | |||
Area of real estate property | 23,873 | ||
San Diego, California | |||
Lessee Lease Description [Line Items] | |||
Area of real estate property | 52,148 | ||
Lease expiration date | Dec. 31, 2025 | ||
Lessee, operating lease, renewal term | 5 years | ||
Remaining area of real estate property | 28,275 | ||
Lessee, operating lease, existence of option to extend | true | ||
Operating lease expense | $ | $ 0.7 | $ 0.7 | |
Operating lease cash payments | $ | $ 0.7 | $ 0.7 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 2,231 |
2024 | 3,030 |
2025 | 3,097 |
Total future minimum lease payments | 8,358 |
Less: discount | (765) |
Total lease liabilities | $ 7,593 |
Reorganizations - Additional In
Reorganizations - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Jun. 30, 2022 | Mar. 31, 2023 | |
Restructuring charges, total | $ 5.4 | |
Employee Severance | ||
Restructuring charges, total | 5 | |
Employee Severance | 2021 Restructuring Plan | ||
Payments for restructuring charges | $ 5 | |
Accelerated Non-Cash Stock Option Expense | ||
Restructuring charges, total | $ 0.4 |
Convertible Notes - Additional
Convertible Notes - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
May 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 51,000 | $ 50,000 | |
Common Stock | |||
Debt Instrument [Line Items] | |||
Initial conversion price/rate | $ 15.276 | ||
Notes | |||
Debt Instrument [Line Items] | |||
Convertible debt issuable in connection with private placement | $ 150,000,000 | ||
Net proceeds from convertible notes financing | $ 149,000,000 | ||
Debt instrument, interest rate | 1.50% | ||
Debt instrument, maturity date | May 26, 2026 | ||
Debt instrument, frequency of periodic payment | semi-annually | ||
Debt instrument, date of first required payment | Dec. 15, 2021 | ||
Initial conversion price/rate | $ 65.4620 | ||
Debt instrument conversion ratio multiple of principal | $ 1,000 | ||
Common shares registered for resale in connection with convertible notes | 12,400,000 | ||
Debt issuance costs incurred | $ 1,000,000 | ||
Effective interest rate | 1.60% | ||
Interest expense | $ 614,000 | 613,000 | |
Interest expense, debt, excluding amortization | 563,000 | 563,000 | |
Amortization of debt issuance costs | 51,000 | $ 50,000 | |
Carrying value of debt | 149,300,000 | ||
Debt instrument, face amount | 150,000,000 | ||
Debt issuance costs | $ 700,000 | ||
Notes | Redemption Between May 24, 2024 and May 24, 2025 | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption period, stock price exceeds in percentage of conversion price | 250% | ||
Notes | Redemption On or After May 24, 2025 | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption period, stock price exceeds in percentage of conversion price | 200% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Oct. 18, 2022 | Aug. 08, 2022 |
Class Of Stock [Line Items] | ||
Common shares registered for resale | 24.6 | |
Private Placement | ||
Class Of Stock [Line Items] | ||
Shares of common stock sold | 16.1 | |
Purchase price per share | $ 3.10 | |
Proceeds from issuance of common stock and pre-funded warrants | $ 75.1 | |
Stock issuance cost | $ 1.4 | |
Pre-funded Warrants | ||
Class Of Stock [Line Items] | ||
Purchase price per share | $ 3.0999 | |
Class of warrant or right, number of securities called by warrants or rights | 8.5 | |
Class of warrant or right, exercise price of warrants or rights | $ 0.0001 |
Equity Incentive Plan - Summary
Equity Incentive Plan - Summary of Stock Option Activity (Details) - $ / shares shares in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||
Number of shares outstanding | 20,749 | |
Number of shares granted | 1,588 | |
Number of shares expired and forfeited | (961) | |
Number of shares outstanding | 21,376 | 20,749 |
Number of shares outstanding, weighted average exercise price | $ 14.61 | |
Number of shares granted, weighted average exercise price | 2.92 | |
Number of shares expired and forfeited, weighted average exercise price | 15.52 | |
Number of shares outstanding, weighted average exercise price | $ 13.70 | $ 14.61 |
Number of shares outstanding, weighted average remaining contractual term (Years) | 5 years 7 months 9 days | 6 years 5 months 8 days |
Equity Incentive Plan - Summa_2
Equity Incentive Plan - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares outstanding | shares | 3,167 |
Number of shares granted | shares | 1,408 |
Number of shares released | shares | (195) |
Number of shares expired and forfeited | shares | (529) |
Number of shares outstanding | shares | 3,851 |
Number of shares outstanding, weighted average grant date fair value | $ / shares | $ 6.46 |
Number of shares granted, weighted average grant date fair value | $ / shares | 2.58 |
Number of shares released, weighted average grant date fair value | $ / shares | 10.13 |
Number of shares expired and forfeited, weighted average grant date fair value | $ / shares | 3.16 |
Number of shares outstanding, weighted average grant date fair value | $ / shares | $ 5.31 |
Equity Incentive Plan - Summa_3
Equity Incentive Plan - Summary of Stock-Based Compensation Expense related to Stock-Based Payment Awards Granted (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 7,947 | $ 10,915 |
Research and Development Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 2,939 | 4,563 |
General and Administrative Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 2,329 | 3,002 |
Sales and Marketing Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 2,679 | $ 3,350 |
Equity Incentive Plan - Additio
Equity Incentive Plan - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Class Of Stock [Line Items] | |
Total unrecognized compensation cost related to non-vested, stock-based payment awards | $ 38.8 |
Total unrecognized compensation cost, expect to recognize over weighted average period | 2 years |
Restricted Stock Units | |
Class Of Stock [Line Items] | |
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years |
Equity Incentive Plan - Summa_4
Equity Incentive Plan - Summary of Fair Value of Option Grant on Grant Date Using Black-Scholes Option Pricing Model (Details) - Share-based Payment Arrangement, Option | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 3.70% | 2.10% |
Dividend yield | 0% | 0% |
Volatility | 63.90% | 59.10% |
Expected life (years) | 6 years | 6 years |
Subsequent Events Additional In
Subsequent Events Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2023 | Jun. 30, 2022 | |
Subsequent Event [Line Items] | ||
Restructuring Charges | $ 5.4 | |
Employee Severance | ||
Subsequent Event [Line Items] | ||
Restructuring Charges | $ 5 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Restructuring Charges | $ 8.9 | |
Subsequent Event | Employee Severance | ||
Subsequent Event [Line Items] | ||
Restructuring Charges | 2.8 | |
Subsequent Event | Non-Cash, Stock-based Compensation Expense | ||
Subsequent Event [Line Items] | ||
Restructuring Charges | $ 6.1 |