Kodiak Sciences (KOD) 10-Q14 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Jul. 31, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Trading Symbol	KOD
Entity Registrant Name	KODIAK SCIENCES INC.
Entity Central Index Key	0001468748
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		52,453,163
Entity File Number	001-38682
Entity Tax Identification Number	27-0476525
Entity Address, Address Line One	1200 Page Mill Road
Entity Address, City or Town	Palo Alto
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94304
City Area Code	650
Local Phone Number	281-0850
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common stock, par value $0.0001
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 378,670	$ 190,433
Marketable securities	0	288,500
Prepaid expenses and other current assets	8,289	7,072
Total current assets	386,959	486,005
Restricted cash	6,324	6,324
Property and equipment, net	130,121	56,384
Operating lease right-of-use asset	57,251	59,369
Other assets	9,004	58,546
Total assets	589,659	666,628
Current liabilities:
Accounts payable	12,347	9,130
Accrued and other current liabilities	54,044	33,440
Operating lease liability	7,851	9,926
Total current liabilities	74,242	52,496
Operating lease liability, net of current portion	76,939	77,807
Liability related to sale of future royalties	100,000	99,996
Other liabilities	0	162
Total liabilities	251,181	230,461
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	0	0
Common stock, $0.0001 par value, 490,000,000 shares authorized at June 30, 2023 and December 31, 2022; 52,453,163 and 52,333,850 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	5	5
Additional paid-in capital	1,381,481	1,329,509
Accumulated other comprehensive income (loss)	0	(1,307)
Accumulated deficit	(1,043,008)	(892,040)
Total stockholders’ equity	338,478	436,167
Total liabilities and stockholders’ equity	$ 589,659	$ 666,628

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) (unaudited) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	490,000,000	490,000,000
Common stock, shares issued	52,453,163	52,333,850
Common stock, shares outstanding	52,453,163	52,333,850

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating expenses
Research and development	$ 66,961	$ 73,744	$ 123,481	$ 149,921
General and administrative	17,871	18,324	35,966	37,914
Total operating expenses	84,832	92,068	159,447	187,835
Loss from operations	(84,832)	(92,068)	(159,447)	(187,835)
Interest income	4,683	1,494	8,300	1,570
Interest expense	(4)	(5)	(8)	(10)
Other income (expense), net	(35)	(49)	187	(62)
Net loss	$ (80,188)	$ (90,628)	$ (150,968)	$ (186,337)
Net loss per common share, basic	$ (1.53)	$ (1.74)	$ (2.88)	$ (3.57)
Net loss per common share, diluted	$ (1.53)	$ (1.74)	$ (2.88)	$ (3.57)
Weighted-average shares of common stock outstanding used in computing net loss per common share, Basic	52,378,729	52,218,773	52,358,279	52,195,972
Weighted-average shares of common stock outstanding used in computing net loss per common share, Diluted	52,378,729	52,218,773	52,358,279	52,195,972
Other comprehensive income (loss)
Change in unrealized gains (losses) related to available-for-sale debt securities, net of tax	$ 96	$ (1,869)	$ 1,307	$ (1,869)
Total other comprehensive income (loss)	96	(1,869)	1,307	(1,869)
Comprehensive loss	$ (80,092)	$ (92,497)	$ (149,661)	$ (188,206)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning Balance at Dec. 31, 2021	$ 663,320	$ 5	$ 1,221,532	$ 0	$ (558,217)
Beginning balance, shares at Dec. 31, 2021		51,826,257
Issuance of common stock upon exercise of stock options	1,678		1,678
Issuance of common stock upon exercise of stock options, shares		110,043
Issuance of common stock upon vesting of restricted stock units, shares		3,581
Stock-based compensation expense	28,095		28,095
Net loss	(95,709)				(95,709)
Ending Balance at Mar. 31, 2022	597,384	$ 5	1,251,305	0	(653,926)
Ending balance, shares at Mar. 31, 2022		51,939,881
Beginning Balance at Dec. 31, 2021	663,320	$ 5	1,221,532	0	(558,217)
Beginning balance, shares at Dec. 31, 2021		51,826,257
Other comprehensive lncome	(1,869)
Net loss	(186,337)
Ending Balance at Jun. 30, 2022	530,931	$ 5	1,277,349	(1,869)	(744,554)
Ending balance, shares at Jun. 30, 2022		52,024,621
Beginning Balance at Mar. 31, 2022	597,384	$ 5	1,251,305	0	(653,926)
Beginning balance, shares at Mar. 31, 2022		51,939,881
Issuance of common stock upon exercise of stock options	2		2
Issuance of common stock upon exercise of stock options, shares		320
Issuance of common stock upon vesting of restricted stock units, shares		74,148
Stock based compensation expense related to ESPP	64		64
Issuance of common stock pursuant to employee stock purchase plans, shares		10,272
Other comprehensive lncome	(1,869)			1,869
Stock-based compensation expense	25,978		25,978
Net loss	(90,628)				(90,628)
Ending Balance at Jun. 30, 2022	530,931	$ 5	1,277,349	(1,869)	(744,554)
Ending balance, shares at Jun. 30, 2022		52,024,621
Beginning Balance at Dec. 31, 2022	436,167	$ 5	1,329,509	(1,307)	(892,040)
Beginning balance, shares at Dec. 31, 2022		52,333,850
Issuance of common stock upon exercise of stock options	9		9
Issuance of common stock upon exercise of stock options, shares		1,098
Issuance of common stock upon vesting of restricted stock units, shares		9,793
Other comprehensive lncome	1,211			1,211
Stock-based compensation expense	25,980		25,980
Net loss	(70,780)				(70,780)
Ending Balance at Mar. 31, 2023	392,587	$ 5	1,355,498	(96)	(962,820)
Ending balance, shares at Mar. 31, 2023		52,344,741
Beginning Balance at Dec. 31, 2022	436,167	$ 5	1,329,509	(1,307)	(892,040)
Beginning balance, shares at Dec. 31, 2022		52,333,850
Other comprehensive lncome	1,307
Net loss	(150,968)
Ending Balance at Jun. 30, 2023	338,478	$ 5	1,381,481	0	(1,043,008)
Ending balance, shares at Jun. 30, 2023		52,453,163
Beginning Balance at Mar. 31, 2023	392,587	$ 5	1,355,498	(96)	(962,820)
Beginning balance, shares at Mar. 31, 2023		52,344,741
Issuance of common stock upon exercise of stock options	51		51
Issuance of common stock upon exercise of stock options, shares		6,430
Issuance of common stock upon vesting of restricted stock units, shares		76,152
Stock based compensation expense related to ESPP	131		131
Issuance of common stock pursuant to employee stock purchase plans, shares		25,840
Other comprehensive lncome	96			(96)
Stock-based compensation expense	25,801		25,801
Net loss	(80,188)				(80,188)
Ending Balance at Jun. 30, 2023	$ 338,478	$ 5	$ 1,381,481	$ 0	$ (1,043,008)
Ending balance, shares at Jun. 30, 2023		52,453,163

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities
Net loss	$ (150,968)	$ (186,337)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	8,568	1,075
Stock-based compensation	51,781	54,073
Net amortization (accretion) of premium (discount) on marketable securities	(846)	(314)
Settlement of derivative contracts	(314)	0
Amortization of operating lease right-of-use asset	3,745	3,742
Amortization of issuance costs	4	26
Changes in assets and liabilities:
Prepaid expenses and other current assets	3,964	(2,165)
Other assets	181	10,235
Accounts payable	3,549	12,864
Accrued and other current liabilities	(4,274)	1,545
Operating lease liability	(4,570)	6,959
Net cash provided by (used in) operating activities	(89,180)	(98,297)
Cash flows from investing activities
Purchase of property and equipment	(13,640)	(25,690)
Deposits on property and equipment	(77)	(8,785)
Purchase of marketable securities	(49,347)	(427,766)
Maturities of marketable securities	340,000	0
Proceeds from derivative activity	314	0
Net cash provided by (used in) investing activities	277,250	(462,241)
Net cash provided by (used in) financing activities
Proceeds from issuance of common stock upon options exercise	60	1,680
Proceeds from issuance of common stock pursuant to employee stock purchase plans	131	64
Principal payments of tenant improvement allowance payable	(24)	(24)
Net cash provided by financing activities	167	1,720
Net increase (decrease) in cash, cash equivalents and restricted cash	188,237	(558,818)
Cash, cash equivalents and restricted cash, at beginning of period	196,757	737,834
Cash, cash equivalents and restricted cash, at end of period	384,994	179,016
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets
Cash and cash equivalents	378,670	172,692
Restricted cash	6,324	6,324
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations, Total	384,994	179,016
Supplemental disclosures of non-cash investing and financing information:
Operating lease right-of-use asset obtained in exchange for operating lease liability	1,473	74
Purchase of property and equipment under accounts payable and accruals	$ 27,662	$ 9,718

The Company

The Company	6 Months Ended
The Company	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	1. The Company Kodiak Sciences Inc. (the “Company”) is a clinical stage biopharmaceutical company committed to researching, developing and commercializing transformative therapeutics to treat high prevalence retinal diseases. The Company devotes substantially all of its resources to the research and development of its product platforms and product candidates including activities to conduct clinical studies of its product candidates, manufacture product candidates and provide general and administrative support for these operations. Liquidity As of June 30, 2023, the Company had cash and cash equivalents of $ 378.7 million. Although the Company has incurred significant operating losses since inception and expects to continue to incur operating losses and negative operating cash flows for the foreseeable future, the Company believes that the cash and cash equivalents will be sufficient to meet the anticipated operating and capital expenditure requirements for the 12 months following the date of this Quarterly Report on Form 10-Q.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to interim periods. The condensed consolidated financial statements, in the opinion of management, include all normal and recurring adjustments necessary to state fairly the Company's financial position and results of operations for the reported periods. These condensed consolidated financial statements have been prepared on a basis substantially consistent with, and should be read in conjunction with the audited financial statements for the year ended December 31, 2022 and notes thereto, the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 28, 2023. Certain information and note disclosures normally included in the audited financial statements prepared in accordance with GAAP have been condensed or omitted from this report. The results of operations for any interim period are not necessarily indicative of the results for the year ending December 31, 2023, or for any future period. The accompanying condensed consolidated financial statements reflect the operations of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Reclassification Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and expenses during the reporting period. Such estimates include, but are not limited to, accrued research and development and stock-based compensation. Actual results could differ from those estimates . Risks and Uncertainties Global economic and business activities continue to face widespread macroeconomic uncertainties, including health epidemics, labor shortages, bank failures, inflation and monetary supply shifts, recession risks and potential disruptions from the Russia-Ukraine conflict. The Company continues to actively monitor the impact of these macroeconomic factors on its financial condition, liquidity, operations, and workforce. The extent of the impact of these factors on the Company’s operational and financial performance, including its ability to execute its business strategies and initiatives in the expected timeframe, will depend on future developments, which are uncertain and cannot be predicted; however, any continued or renewed disruption resulting from these factors could negatively impact the Company’s business. The Company’s future results of operations involve a number of risks and uncertainties common to clinical stage companies in the biotechnology industry. The Company’s product candidates are in development and the Company operates in an environment of rapid change in technology and substantial competition from other pharmaceutical and biotechnology companies. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s potential drug candidates, uncertainty of market acceptance of any of the Company’s product candidates that receive regulatory approval, competition from new technological innovations, substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals, contract manufacturer and research organizations, and other suppliers. Products developed by the Company require approvals from the U.S. Food and Drug Administration (“FDA”) or other international regulatory agencies prior to commercial sales. There can be no assurance that any of the Company’s product candidates will receive the necessary approvals. If the Company is denied approval, approval is delayed or the Company is unable to maintain approvals, it could have a materially adverse impact on the Company. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to complete clinical trials, launch and commercialize any product candidates for which it receives regulatory approval. There can be no assurance that such financing will be available or will be on terms acceptable by the Company. Summary of Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements for the three and six months ended June 30, 2023, are consistent with those discussed in Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 , except as noted below within the “Recent Accounting Pronouncements” section. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB"), under its Accounting Standards Codification ("ASC") or other standard setting bodies, and adopted by the Company as of the specified effective date. There have been no new accounting pronouncements issued nor adopted during the three and six months ended June 30, 2023 that are of significance to the Company.

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	6 Months Ended
Accrued and Other Current Liabilities	Jun. 30, 2023
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued and Other Current Liabilities	3. Accrued and Other Current Liabilities Accrued and other current liabilities consist of the following (in thousands): June 30, December 31, Accrued property and equipment $ 26,873 $ 1,893 Accrued clinical trial and related costs 16,052 18,334 Accrued salaries and benefits 4,331 6,033 Accrued manufacturing and research & development costs 3,531 5,978 Accrued legal fees and professional fees 531 283 Accrued other liabilities 2,726 919 Total accrued and other current liabilities $ 54,044 $ 33,440

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements The following tables present the Company’s fair value hierarchy for assets measured at fair value on a recurring basis (in thousands): Fair Value Measurements at June 30, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 368,661 $ — $ — $ 368,661 Marketable securities: U.S. treasury securities — — — — Total $ 368,661 $ — $ — $ 368,661 Fair Value Measurements at December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 173,617 $ — $ — $ 173,617 Marketable securities: U.S. treasury securities — 288,500 — 288,500 Total $ 173,617 $ 288,500 $ — $ 462,117 As of June 30, 2023 , the fair value of the liability related to sale of future royalties is based on the Company's current estimates of future royalties expected to be paid to Baker Bros. Advisors, LP (“BBA”), which are considered Level 3 inputs.

Marketable Securities

Marketable Securities	6 Months Ended
Marketable Securities	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	5. Marketable Securities Marketable securities are classified as available-for-sale. The Company obtains fair value measurement data from third party pricing services and understands the valuation methods and data sources to validate this information. The following table presents the Company's marketable securities by major security type (in thousands): As of December 31, 2022 Amortized Unrealized Unrealized Fair U.S. treasury securities $ 289,807 $ — $ ( 1,307 ) $ 288,500 Total $ 289,807 $ — $ ( 1,307 ) $ 288,500 As of June 30, 2023, there were no marketable securities. There were no reclassifications out of accumulated other comprehensive income (loss), impairment charges or recoveries and no allowance for credit losses recorded during the six months ended June 30, 2023 .

Derivatives

Derivatives	6 Months Ended
Derivatives	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	6. Derivatives The Company uses certain derivative instruments, that are not designated as hedges for accounting purposes, which include foreign currency forward contracts. As of June 30, 2023 , these derivatives have been net settled.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Ursus Facility In August 2020, the Company and its wholly-owned subsidiary Kodiak Sciences GmbH entered into a manufacturing agreement with Lonza Ltd (“Lonza”) for the clinical and commercial supply of the Company’s antibody biopolymer conjugate drug substance which included a custom-built manufacturing facility. The manufacturing agreement has an initial term of eight years , and the Company has the right to extend the term up to a total of 16 years. The Company and Lonza each have the ability to terminate this agreement upon the occurrence of certain conditions. In April 2021, the agreement was amended to provide for greater manufacturing flexibility, to define a comprehensive mandate as an antibody biopolymer conjugates manufacturing facility to be used for the Company’s antibody biopolymer conjugates pipeline, at clinical as well as commercial scales, across a broad capacity range under the tight quality controls required for ophthalmology and retinal medicines, and to allow for future process and equipment changes as needed. The Company expanded and finalized the design and scope of the antibody biopolymer conjugates manufacturing facility with a revised estimated capital contribution of approximately 75.0 million Swiss Francs. Over the period from 2022 through 2030, manufacturing payments totaling approximately 150.0 million Swiss Francs may be incurred for the potential clinical and commercial supply of tarcocimab and other antibody biopolymer conjugates medicines based on the amended agreement. The Company concluded that this agreement contained an embedded lease as the custom-built manufacturing suite would be dedicated for the Company’s use. On January 31, 2023, the custom-built manufacturing suite was commissioned as a cGMP facility. The consideration was allocated to lease and non-lease components as this agreement contained a significant service component (manufacturing services). The Company recognized an operating lease right-of-use asset and corresponding liability based on the present value of remaining lease payments discounted at the Company’s estimated incremental borrowing rate of 6.3 % over the remaining lease term of 7.2 years. The Company determined that the renewal options were not reasonably certain at lease inception. The Company recognized $ 0.2 million and $ 0.3 million as part of operating lease costs during the three and six months ended June 30, 2023, respectively. Fixed assets of approximately 75.0 million Swiss Francs, equivalent to $ 81.7 million, in leasehold improvements and machinery and equipment, were placed in service and capitalized as of January 31, 2023. As of June 30, 2023 , $2 6.8 million of these fixed assets were unpaid and recorded to accrued property and equipment under accrued and other current liabilities on the condensed consolidated balance sheet. Manufacturing Agreements The Company has entered into service and equipment purchase agreements in the normal course of business with various providers, pursuant to which such providers agreed to perform activities in connection with the manufacturing process of certain materials. These agreements, and any related amendments, state that planned activities and purchases that are included in the signed work orders are, in some cases, binding and, hence, obligate the Company to pay the full price of the work order upon satisfactory delivery of products and services or obligate the Company to the binding amount regardless of whether such planned activities are in fact performed. Per the terms of the agreements, the Company has the option to cancel signed orders at any time upon written notice, which may or may not be subject to payment of a cancellation fee. The level of cancellation fees may be dependent on the timing of the written notice in relation to the commencement date of the work, with the maximum cancellation amount dependent on the agreement or the work order. Other Funding Commitments In the normal course of business, the Company enters into agreements with third-parties for services to be provided to the Company. Generally, these agreements provide for termination upon notice, with specified amounts due upon termination based on the timing of termination and the terms of the agreement. The actual amounts and timing of payments under these agreements are uncertain and contingent upon the initiation and completion of services to be provided to the Company. The Company has also entered into various cancellable license agreements for certain technology. The Company may be obligated to make payments on future sales of specified products associated with such license agreements. Such payments are dependent on future product sales and are not estimable. Legal Proceedings From time to time, the Company may become involved in legal proceedings arising from the ordinary course of its business. Management is currently not aware of any matters that could have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company records a legal liability when it believes that it is both probable that a liability may be imputed, and the amount of the liability can be reasonably estimated. Significant judgment by the Company is required to determine both probability and the estimated amount. Indemnification To the extent permitted under Delaware law, the Company has agreed to indemnify its directors and officers for certain events or occurrences while the director or officer is, or was serving, at the Company’s request in such capacity. The indemnification period covers all pertinent events and occurrences during the director’s or officer’s service. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is not specified in the agreements; however, the Company has director and officer insurance coverage that reduces its exposure and enables the Company to recover a portion of any future amounts paid. The Company believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	8. Stock-Based Compensation In January 2023 and 2022 , the number of shares of common stock available for issuance under the 2018 Equity Incentive Plan (the "2018 Plan") was increased by approximately 2.1 million and 2.1 million shares, respectively, as a result of the automatic increase provision in the 2018 Plan. Stock Options Stock option activity, including stock options and performance-based stock options under the 2021 Long-Term Performance Incentive Plan (“2021 LTPIP”), 2018 Plan and 2015 Plan is summarized as follows : Number Weighted Weighted Aggregate Outstanding at December 31, 2022 16,542,107 $ 51.48 7.91 $ 5,410 Granted 3,257,000 $ 7.16 Exercised ( 7,528 ) $ 7.96 Forfeited or canceled ( 47,798 ) $ 25.88 Outstanding at June 30, 2023 19,743,781 $ 44.25 7.79 $ 5,023 Restricted Shares Restricted share activity, including restricted stock awards, restricted stock units, and performance-based restricted stock units, under the 2018 Plan is summarized as follows: Number of Weighted Unvested at December 31, 2022 280,522 $ 60.17 Granted 23,250 $ 6.76 Vested ( 85,945 ) $ 63.52 Canceled ( 4,850 ) $ 44.16 Unvested at June 30, 2023 212,977 $ 53.35 Stock-Based Compensation Expense Stock-based compensation is classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Research and development $ 14,660 $ 14,109 $ 29,360 $ 30,084 General and administrative 11,141 11,869 22,421 23,989 Total stock-based compensation $ 25,801 $ 25,978 $ 51,781 $ 54,073

Net Loss per Common Share

Net Loss per Common Share	6 Months Ended
Net Loss per Common Share	Jun. 30, 2023
Earnings Per Share [Abstract]
Net Loss per Common Share	9. Net Loss per Common Share The following common share equivalents were excluded from the computation of diluted net loss per common share for the periods presented because their inclusion would have been antidilutive: As of June 30, 2023 2022 Outstanding stock options 19,743,781 14,239,338 Unvested restricted shares 212,977 292,763 Total 19,956,758 14,532,101

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	10. Subsequent Events On July 24, 2023, the Company announced topline results from three Phase 3 studies of tarcocimab, its novel antibody biopolymer conjugate. Based on these data, and despite demonstrating potential, the Company announced a business decision to discontinue further development of tarcocimab. The Company continues to assess a variety of strategic and operational alternatives relating to the tarcocimab program, including the possibility that additional clinical trials may be conducted in the future, as well as the potential impact to the financial statements; however, the full impact cannot be ascertained at this time.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2023
Accounting Policies [Abstract]
Basis Of Presentation And Principles Of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to interim periods. The condensed consolidated financial statements, in the opinion of management, include all normal and recurring adjustments necessary to state fairly the Company's financial position and results of operations for the reported periods. These condensed consolidated financial statements have been prepared on a basis substantially consistent with, and should be read in conjunction with the audited financial statements for the year ended December 31, 2022 and notes thereto, the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 28, 2023. Certain information and note disclosures normally included in the audited financial statements prepared in accordance with GAAP have been condensed or omitted from this report. The results of operations for any interim period are not necessarily indicative of the results for the year ending December 31, 2023, or for any future period. The accompanying condensed consolidated financial statements reflect the operations of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated.
Reclassification	Reclassification Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and expenses during the reporting period. Such estimates include, but are not limited to, accrued research and development and stock-based compensation. Actual results could differ from those estimates .
Risk and Uncertainties	Risks and Uncertainties Global economic and business activities continue to face widespread macroeconomic uncertainties, including health epidemics, labor shortages, bank failures, inflation and monetary supply shifts, recession risks and potential disruptions from the Russia-Ukraine conflict. The Company continues to actively monitor the impact of these macroeconomic factors on its financial condition, liquidity, operations, and workforce. The extent of the impact of these factors on the Company’s operational and financial performance, including its ability to execute its business strategies and initiatives in the expected timeframe, will depend on future developments, which are uncertain and cannot be predicted; however, any continued or renewed disruption resulting from these factors could negatively impact the Company’s business. The Company’s future results of operations involve a number of risks and uncertainties common to clinical stage companies in the biotechnology industry. The Company’s product candidates are in development and the Company operates in an environment of rapid change in technology and substantial competition from other pharmaceutical and biotechnology companies. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s potential drug candidates, uncertainty of market acceptance of any of the Company’s product candidates that receive regulatory approval, competition from new technological innovations, substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals, contract manufacturer and research organizations, and other suppliers. Products developed by the Company require approvals from the U.S. Food and Drug Administration (“FDA”) or other international regulatory agencies prior to commercial sales. There can be no assurance that any of the Company’s product candidates will receive the necessary approvals. If the Company is denied approval, approval is delayed or the Company is unable to maintain approvals, it could have a materially adverse impact on the Company. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to complete clinical trials, launch and commercialize any product candidates for which it receives regulatory approval. There can be no assurance that such financing will be available or will be on terms acceptable by the Company.
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements for the three and six months ended June 30, 2023, are consistent with those discussed in Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 , except as noted below within the “Recent Accounting Pronouncements” section.
Recent accounting pronouncements	Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB"), under its Accounting Standards Codification ("ASC") or other standard setting bodies, and adopted by the Company as of the specified effective date. There have been no new accounting pronouncements issued nor adopted during the three and six months ended June 30, 2023 that are of significance to the Company.

Accrued and Other Current Lia_2

Accrued and Other Current Liabilities (Tables)	6 Months Ended
Accrued and Other Current Liabilities (Tables)	Jun. 30, 2023
Accounts Payable and Accrued Liabilities, Current [Abstract]
Schedule of Accrued and Other Current Liabilities	Accrued and other current liabilities consist of the following (in thousands): June 30, December 31, Accrued property and equipment $ 26,873 $ 1,893 Accrued clinical trial and related costs 16,052 18,334 Accrued salaries and benefits 4,331 6,033 Accrued manufacturing and research & development costs 3,531 5,978 Accrued legal fees and professional fees 531 283 Accrued other liabilities 2,726 919 Total accrued and other current liabilities $ 54,044 $ 33,440

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Summary of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present the Company’s fair value hierarchy for assets measured at fair value on a recurring basis (in thousands): Fair Value Measurements at June 30, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 368,661 $ — $ — $ 368,661 Marketable securities: U.S. treasury securities — — — — Total $ 368,661 $ — $ — $ 368,661 Fair Value Measurements at December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 173,617 $ — $ — $ 173,617 Marketable securities: U.S. treasury securities — 288,500 — 288,500 Total $ 173,617 $ 288,500 $ — $ 462,117

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
Marketable Securities (Tables)	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Summary of Marketable Securities	The following table presents the Company's marketable securities by major security type (in thousands): As of December 31, 2022 Amortized Unrealized Unrealized Fair U.S. treasury securities $ 289,807 $ — $ ( 1,307 ) $ 288,500 Total $ 289,807 $ — $ ( 1,307 ) $ 288,500

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
Stock-Based Compensation (Tables)	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of stock options and performance-based stock options under 2021 LTPIP, 2018 Plan and 2015 Plan.	Stock option activity, including stock options and performance-based stock options under the 2021 Long-Term Performance Incentive Plan (“2021 LTPIP”), 2018 Plan and 2015 Plan is summarized as follows : Number Weighted Weighted Aggregate Outstanding at December 31, 2022 16,542,107 $ 51.48 7.91 $ 5,410 Granted 3,257,000 $ 7.16 Exercised ( 7,528 ) $ 7.96 Forfeited or canceled ( 47,798 ) $ 25.88 Outstanding at June 30, 2023 19,743,781 $ 44.25 7.79 $ 5,023
Summary of Restricted Shares	Restricted share activity, including restricted stock awards, restricted stock units, and performance-based restricted stock units, under the 2018 Plan is summarized as follows: Number of Weighted Unvested at December 31, 2022 280,522 $ 60.17 Granted 23,250 $ 6.76 Vested ( 85,945 ) $ 63.52 Canceled ( 4,850 ) $ 44.16 Unvested at June 30, 2023 212,977 $ 53.35
Summary of Stock-based Compensation for Options and Restricted Shares Classified in Condensed Consolidated Statements of Operations and Comprehensive Loss	Stock-based compensation is classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Research and development $ 14,660 $ 14,109 $ 29,360 $ 30,084 General and administrative 11,141 11,869 22,421 23,989 Total stock-based compensation $ 25,801 $ 25,978 $ 51,781 $ 54,073

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	6 Months Ended
Net Loss per Common Share (Tables)	Jun. 30, 2023
Earnings Per Share [Abstract]
Summary of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss per Common Share	The following common share equivalents were excluded from the computation of diluted net loss per common share for the periods presented because their inclusion would have been antidilutive: As of June 30, 2023 2022 Outstanding stock options 19,743,781 14,239,338 Unvested restricted shares 212,977 292,763 Total 19,956,758 14,532,101

The Company - Additional Inform

The Company - Additional Information (Details) $ in Millions	Jun. 30, 2023 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash, cash equivalents and marketable securities	$ 378.7

Accrued and Other Current Lia_3

Accrued and Other Current Liabilities - Schedule of Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued property and equipment	$ 26,873	$ 1,893
Accrued clinical trial and related costs	16,052	18,334
Accrued salaries and benefits	4,331	6,033
Accrued manufacturing and research & development costs	3,531	5,978
Accrued legal fees and professional fees	531	283
Accrued other liabilities	2,726	919
Total accrued and other current liabilities	$ 54,044	$ 33,440

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Fair Value Hierarchy for Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	$ 368,661	$ 462,117
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	368,661	173,617
U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	0	288,500
Quoted Price in Active Markets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	368,661	173,617
Quoted Price in Active Markets (Level 1) \| Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	368,661	173,617
Quoted Price in Active Markets (Level 1) \| U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	0	0
Significant Observable Inputs (Level 2)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	0	288,500
Significant Observable Inputs (Level 2) \| Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Significant Observable Inputs (Level 2) \| U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	0	288,500
Significant Unobservable Inputs (Level 3)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	0	0
Significant Unobservable Inputs (Level 3) \| Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Significant Unobservable Inputs (Level 3) \| U.S. Treasury Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	$ 0	$ 0

Marketable Securities - Summary

Marketable Securities - Summary of Marketable Securities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Marketable Securities [Line Items]
Amortized Cost, current	$ 289,807
Unrealized Gains, Current	0
Unrealized Losses, Current	(1,307)
Fair Value, current	288,500
U.S. Treasury Securities
Marketable Securities [Line Items]
Amortized Cost, current	289,807
Unrealized Gains, Current	0
Unrealized Losses, Current	(1,307)
Fair Value, current	$ 288,500

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended
	Aug. 31, 2020	Jun. 30, 2023	Jun. 30, 2023
Commitments And Contingencies Disclosure [Line Items]
Operating lease cost		$ 0.2	$ 0.3
Subordinated Borrowing, Interest Rate			6.30%
Manufacturing agreement capital contributions fixed assets		75	$ 75
Manufacturing Agreement Expense			$ 150
Manufacturing agreement initial term			7 years 2 months 12 days
Lease liabilities		6.8	$ 6.8
Lonza
Commitments And Contingencies Disclosure [Line Items]
Manufacturing agreement capital contributions fixed assets		75	75
leasehold improvements and machinery and equipment		$ 81.7	$ 81.7
Manufacturing Agreement \| Clinical and Commercial Supply of Drug Substance \| Maximum \| Lonza
Commitments And Contingencies Disclosure [Line Items]
Manufacturing agreement initial term	8 years
Manufacturing agreement term that can be extended	16 years

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - shares	1 Months Ended
	Jan. 31, 2023	Jan. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of common stock available for issuance increased	2,100,000	2,100,000

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Options Activity Under 2018 Plan and 2015 Equity Incentive Plan (Details) - 2018 Plan, 2015 Equity Incentive Plan and 2021 LTPIP $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Number of Options
Beginning balance \| shares	16,542,107
Granted \| shares	3,257,000
Exercised \| shares	(7,528)
Forfeited or canceled \| shares	(47,798)
Ending balance \| shares	19,743,781	16,542,107
Weighted Average Exercise Price
Beginning balance \| $ / shares	$ 51.48
Granted \| $ / shares	7.16
Exercised \| $ / shares	7.96
Forfeited or canceled \| $ / shares	25.88
Ending balance \| $ / shares	$ 44.25	$ 51.48
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value
Weighted Average Remaining Contractual Term (in years)	7 years 9 months 14 days	7 years 10 months 28 days
Aggregate Intrinsic Value \| $	$ 5,023	$ 5,410

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Restricted Shares (Details) - Restricted Shares	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, beginning balance \| shares	280,522
Granted \| shares	23,250
Vested \| shares	(85,945)
Canceled \| shares	(4,850)
Unvested, ending balance \| shares	212,977
Weighted Average Grant Date Fair Value
Unvested, beginning balance \| $ / shares	$ 60.17
Granted \| $ / shares	6.76
Vested \| $ / shares	63.52
Canceled \| $ / shares	44.16
Unvested, ending balance \| $ / shares	$ 53.35

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Stock-based Compensation for Options and Restricted Shares Classified in Condensed Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 25,801	$ 25,978	$ 51,781	$ 54,073
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	14,660	14,109	29,360	30,084
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 11,141	$ 11,869	$ 22,421	$ 23,989

Net Loss per Common Share - Sum

Net Loss per Common Share - Summary of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss per Common Share (Details) - shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per common share	19,956,758	14,532,101
Outstanding Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per common share	19,743,781	14,239,338
Unvested Restricted Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net loss per common share	212,977	292,763