Xenon Pharmaceuticals (XENE) 10-Q9 May 242024 Q1 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2024	May 06, 2024
Cover [Abstract]
Entity Registrant Name	XENON PHARMACEUTICALS INC.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Common Stock, Shares Outstanding		75,468,883
Entity Central Index Key	0001582313
Entity Filer Category	Large Accelerated Filer
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity File Number	001-36687
Entity Tax Identification Number	98-0661854
Entity Address, Address Line One	200-3650 Gilmore Way
Entity Address, City or Town	Burnaby
Entity Address, State or Province	BC
Entity Address, Country	CA
Entity Address, Postal Zip Code	V5G 4W8
City Area Code	604
Local Phone Number	484-3300
Title of 12(b) Security	Common Shares, without par value
Trading Symbol	XENE
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	Z4
Document Quarterly Report	true
Document Transition Report	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 58,896	$ 148,643
Marketable securities (note 6)	640,706	489,439
Accounts receivable	833	874
Prepaid expenses and other current assets	6,769	6,006
Total current assets	707,204	644,962
Marketable securities, long-term (note 6)	185,836	292,792
Operating lease right-of-use asset, net (note 7)	8,884	9,193
Property, plant and equipment, net	9,393	9,653
Deferred tax assets	400	802
Prepaid expenses, long-term	7,306	7,396
Total assets	919,023	964,798
Current liabilities:
Accounts payable and accrued expenses (note 8)	20,900	25,974
Operating lease liability (note 7)	1,323	1,299
Total current liabilities	22,223	27,273
Operating lease liability, long-term (note 7)	9,102	9,604
Total liabilities	31,325	36,877
Shareholders’ equity:
Common shares, without par value; unlimited shares authorized; issued and outstanding: 75,549,681 (December 31, 2023 - 75,370,977) (note 9)	1,438,961	1,436,374
Additional paid-in capital	163,577	156,764
Accumulated deficit	(713,071)	(665,140)
Accumulated other comprehensive loss	(1,769)	(77)
Total shareholders' equity	887,698	927,921		$ 721,497
Total liabilities and shareholders’ equity	$ 919,023	$ 964,798
Commitments and contingencies (note 10)

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common shares, without par value
Common shares, shares authorized	Unlimited	Unlimited
Common shares, Issued	75,459,681	75,370,977
Common shares, Outstanding	75,459,681	75,370,977

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating expenses:
Research and development	$ 44,250	$ 39,516
General and administrative	14,791	9,535
Total operating expenses	59,041	49,051
Loss from operations	(59,041)	(49,051)
Other income:
Interest income	11,355	5,423
Unrealized fair value gain on trading securities		1,878
Foreign exchange gain	167	313
Other income	11,522	7,614
Loss before income taxes	(47,519)	(41,437)
Income tax expense	(412)	(290)
Net loss	(47,931)	(41,727)
Other comprehensive income (loss):
Unrealized gain (loss) on available-for-sale securities (note 6)	(1,692)	1,180
Comprehensive loss	$ (49,623)	$ (40,547)
Net loss per common share (note 4):
Basic	$ (0.62)	$ (0.63)
Diluted	$ (0.62)	$ (0.63)
Weighted-average common shares outstanding (note 4):
Basic	77,594,599	65,724,681
Diluted	77,594,599	65,724,681

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Shares [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at Dec. 31, 2022	$ 721,497	$ 1,065,136	$ 142,108	$ (482,747)	$ (3,000)
Balance (in Shares) at Dec. 31, 2022		62,587,701
Net loss for the period	(41,727)			(41,727)
Conversion of pre-funded warrants to common shares (note 9b)		$ 7,379	(7,379)
Conversion of pre-funded warrants to common shares (note 9b) (in shares)		425,000
Stock-based compensation expense	$ 5,994		5,994
Issued pursuant to exercise of stock options		$ 635	(635)
Issued pursuant to exercise of stock options (in Shares)	113,677	94,319
Other comprehensive income (loss) (note 6)	$ 1,180				1,180
Balance at Mar. 31, 2023	686,944	$ 1,073,150	140,088	(524,474)	(1,820)
Balance (in Shares) at Mar. 31, 2023		63,107,020
Balance at Dec. 31, 2023	927,921	$ 1,436,374	156,764	(665,140)	(77)
Balance (in Shares) at Dec. 31, 2023		75,370,977
Net loss for the period	(47,931)			(47,931)
Stock-based compensation expense	$ 9,400		9,400
Issued pursuant to exercise of stock options		$ 2,587	(2,587)
Issued pursuant to exercise of stock options (in Shares)	180,424	88,704
Other comprehensive income (loss) (note 6)	$ (1,692)				(1,692)
Balance at Mar. 31, 2024	$ 887,698	$ 1,438,961	$ 163,577	$ (713,071)	$ (1,769)
Balance (in Shares) at Mar. 31, 2024		75,459,681

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating activities:
Net loss	$ (47,931)	$ (41,727)
Items not involving cash:
Depreciation	599	354
Deferred income tax expense	403	288
Stock-based compensation	9,400	5,994
Unrealized foreign exchange (gain) loss	4	(5)
Unrealized fair value gain on trading securities		(1,878)
Changes in operating assets and liabilities:
Accounts receivable	38	226
Prepaid expenses and other current assets	(673)	2,931
Accounts payable and accrued expenses	(5,018)	(594)
Net cash used in operating activities	(43,178)	(34,411)
Investing activities:
Purchases of property, plant and equipment	(188)	(2,206)
Purchases of marketable securities	(176,848)	(108,282)
Proceeds from marketable securities	130,834	157,110
Net cash provided by (used in) investing activities	(46,202)	46,622
Financing activities:
Effect of exchange rate changes on cash and cash equivalents	(367)	59
Increase (decrease) in cash and cash equivalents	(89,747)	12,270
Cash and cash equivalents, beginning of period	148,643	57,242
Cash and cash equivalents, end of period	58,896	69,512
Supplemental disclosures:
Cash paid for operating lease	411	406
Supplemental disclosures of non-cash transactions:
Fair value of stock options exercised on a cashless basis	$ 2,587	635
Fair value of pre-funded warrants exercised		7,379
Increase in operating lease liability and accounts receivable related to lease incentives claimed in the period		$ 1,482

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (47,931)	$ (41,727)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Nature of the Business

Nature of the Business	3 Months Ended
Nature of the Business	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of the Business	1. Nature of the business: Xenon Pharmaceuticals Inc. (the “Company”), incorporated in 1996 under the predecessor to the Business Corporations Act (British Columbia) and continued federally in 2000 under the Canada Business Corporations Act, is a neuroscience-focused biopharmaceutical company committed to improving the lives of people living with neurological and psychiatric disorders. The Company has incurred significant operating losses since inception. As of March 31, 2024 , the Company had an accumulated deficit of $ 713,071 and a net loss of $ 47,931 for the three months ended March 31, 2024. Management expects to continue to incur significant expenses in excess of revenue and to incur operating losses for the foreseeable future. To date, the Company has financed its operations primarily through the sale of equity securities, funding received from collaboration and license agreements, and debt financings. Until such time as the Company can generate substantial product revenue, if ever, management expects to finance the Company’s cash needs through a combination of collaboration agreements, equity and debt financings. The continuation of research and development activities and the future commercialization of its products are dependent on the Company’s ability to successfully raise additional funds when needed. It is not possible to predict either the outcome of future research and development programs or the Company’s ability to continue to fund these programs in the future.

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	2. Basis of presentation: These unaudited interim consolidated financial statements are presented in U.S. dollars and include the accounts of the Company and its wholly-owned subsidiary, Xenon Pharmaceuticals USA Inc., a Delaware corporation. All intercompany transactions and balances have been eliminated on consolidation. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these consolidated financial statements do not include all of the information and footnotes required for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2023 included in the Company’s 2023 Annual Report on Form 10-K filed with the SEC and with the securities commissions in British Columbia, Alberta and Ontario on February 29, 2024. These unaudited interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three months ended March 31, 2024 and 2023 are not necessarily indicative of results that can be expected for a full year. These unaudited interim consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company included in the Company’s 2023 Annual Report on Form 10-K for the year ended December 31, 2023, with the exception of the policy described in note 3 below.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
Significant Accounting Policies	Mar. 31, 2024
Accounting Policies [Abstract]
Significant Accounting Policies	3. Significant accounting policies: (a) Stock based compensation: The Company grants performance share unit awards (“PSUs”) to certain employees and officers. PSUs vest upon the achievement of certain predefined company-specific performance-based criteria. PSUs are measured at the closing market price of the Company’s common shares on the date of grant. Stock-based compensation expense for PSUs is amortized on a straight-line basis over the requisite service period of each separately vesting tranche of the award once it is probable that the performance condition will be achieved.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	3 Months Ended
Net Income (Loss) Per Common Share	Mar. 31, 2024
Earnings Per Share [Abstract]
Net Income (Loss) Per Common Share	4. Net income (loss) per common share: The weighted average number of common shares used in the basic and diluted net income (loss) per common share calculations includes the weighted-average pre-funded warrants outstanding during the period as they are exercisable at any time for nominal cash consideration. The treasury stock method is used to compute the dilutive effect of the Company’s stock options, performance share units and warrants. Under this method, the incremental number of common shares used in computing diluted net income (loss) per common share is the difference between the number of common shares assumed issued and purchased using assumed proceeds. For the three months ended March 31, 2024 and 2023, diluted net loss per share attributable to common shareholders is the same as basic net loss per share attributable to common shareholders, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
Fair Value of Financial Instruments	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	5. Fair value of financial instrument s: The fair value hierarchy consists of the following three levels: • Level 1 - Unadjusted quoted prices in active markets for identical instruments. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). • Level 3 - Inputs are unobservable and reflect the Company’s assumptions as to what market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available. The Company’s cash and cash equivalents and marketable securities are measured at fair value on a recurring basis. The level of the fair value hierarchy utilized to determine such fair values consisted of the following: March 31, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents Cash and money market fund $ 58,896 $ — $ — $ 58,896 $ 148,643 $ — $ — $ 148,643 Marketable securities Guaranteed investment certificates 15,068 — — 15,068 7,684 — — 7,684 U.S. treasuries 283,764 — — 283,764 252,982 — — 252,982 U.S. government securities — 63,036 — 63,036 — 97,912 — 97,912 Commercial paper — 183,130 — 183,130 — 119,108 — 119,108 Corporate debt securities — 281,544 — 281,544 — 304,545 — 304,545 Total $ 357,728 $ 527,710 $ — $ 885,438 $ 409,309 $ 521,565 $ — $ 930,874 The fair values of the Company’s U.S. government securities, commercial paper and corporate debt securities are based on prices obtained from independent pricing sources. Securities with validated quotes from pricing services are reflected within Level 2, as they are primarily based on observable pricing for similar assets or other market observable inputs. Typical inputs used by these pricing services include, but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers or estimates of cash flow, prepayment spreads and default rates. As of March 31, 2024 and December 31, 2023, the Company does not hold any securities classified as Level 3.

Marketable Securities

Marketable Securities	3 Months Ended
Marketable Securities	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	6. Marketable securities As of March 31, 2024, the Company had $ 826,542 of available-for-sale securities (December 31, 2023 – trading securities of $ 13,867 and available-for-sale-securities of $ 768,364 ). Amortized cost, unrealized gain (loss) recognized in accumulated other comprehensive income (loss) and fair value of available-for-sale securities consisted of the following: March 31, 2024 December 31, 2023 Amortized Unrealized Fair Amortized Unrealized Fair Contractual maturity of 0 to 1 years: Guaranteed investment certificates $ 15,151 $ ( 83 ) $ 15,068 $ 7,549 $ 135 $ 7,684 U.S. treasuries 235,677 ( 235 ) 235,442 192,193 ( 249 ) 191,944 U.S. government securities 63,258 ( 222 ) 63,036 98,092 ( 180 ) 97,912 Commercial paper 183,218 ( 88 ) 183,130 119,041 67 119,108 Corporate debt securities 143,924 106 144,030 58,824 100 58,924 Contractual maturity of 1 to 3 years: U.S. treasuries 48,507 ( 185 ) 48,322 53,294 243 53,537 Corporate debt securities 137,586 ( 72 ) 137,514 238,458 797 239,255 Total $ 827,321 $ ( 779 ) $ 826,542 $ 767,451 $ 913 $ 768,364 Allowance for credit losses or impairment on these marketable securities have not been recognized as these securities are high credit quality, investment grade securities that the Company does not intend to sell and will not be required to sell prior to their anticipated recovery, and the decline in fair value is primarily due to changes in interest rates.

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2024
Leases [Abstract]
Leases	7. Leases: The Company has an operating lease for research laboratories and office space in Burnaby, British Columbia which expires on June 30, 2032 , and two renewal options for 5 -years each which were not considered in the determination of the right-of-use asset and lease liability. The Company has an additional operating lease for office space in Needham, Massachusetts ("Needham Lease"), which commenced in October 2022. The Needham Lease is for a 62-month term and an option to terminate one year prior to the expiry date , which was not considered in the determination of the right-of-use asset and lease liability. The cost components of the operating leases were as follows for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Lease Cost Operating lease expense $ 412 $ 412 Variable lease expense (1) 208 197 Lease Term and Discount Rate Weighted average remaining lease term (years) 7.09 7.98 Weighted average discount rate 3.87 % 3.92 % (1) Variable lease costs are payments that vary because of changes in facts or circumstances and include common area maintenance and property taxes related to the premises. Variable lease costs are excluded from the calculation of minimum lease payments. Future minimum lease payments as of March 31, 2024 were as follows: Year ending December 31: 2024 $ 1,269 2025 1,747 2026 1,815 2027 1,802 2028 1,102 2029 and thereafter 4,193 Total future minimum lease payments $ 11,928 Less: imputed interest ( 1,503 ) Present value of lease liabilities $ 10,425

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	3 Months Ended
Accounts Payable and Accrued Expenses	Mar. 31, 2024
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	8. Accounts payable and accrued expenses: Accounts payable and accrued expenses consisted of the following: March 31, December 31, 2024 2023 Trade payables $ 6,430 $ 8,598 Employee compensation, benefits, and related accruals 3,819 7,425 Consulting and contracted research 8,942 8,824 Professional fees 1,603 780 Other 106 347 Total $ 20,900 $ 25,974

Share Capital

Share Capital	3 Months Ended
Share Capital	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
Share Capital	9. Share capital: (a) Financing: In August 2020, the Company entered into an “at-the-market” equity offering sales agreement, amended as of March 2022, with Jefferies LLC and Stifel, Nicolaus & Company, Incorporated pursuant to which the Company may sell common shares from time to time. In January 2021, the Company sold an aggregate of 733,000 common shares for proceeds of $ 10,693 , net of commissions and transaction expenses pursuant to a prospectus supplement filed in August 2020 (“August 2020 ATM”). The Company may sell common shares having gross proceeds of up to $ 250,000 , from time to time, pursuant to a new prospectus supplement filed in March 2022 (“March 2022 ATM”), replacing the August 2020 ATM. As of March 31, 2024, the Company has sold an aggregate of 855,685 common shares for proceeds of $ 29,508 , net of commissions and transaction expenses under the March 2022 ATM. (b) Pre-funded warrants: The following table summarizes the pre-funded warrants activity for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Outstanding, beginning of period 2,173,081 3,103,864 Exercised — ( 425,003 ) Outstanding, end of period 2,173,081 2,678,861 Each pre-funded warrant is exercisable for the purchase of a common share at the holder's discretion at an exercise price of $ 0.0001 , subject to certain post-exercise beneficial ownership limitations as provided under the terms of the pre-funded warrant. In January 2023, the Company issued 425,000 common shares upon the exercise of 425,003 pre-funded warrants pursuant to a net exercise mechanism under the warrants. Pre-funded warrants to purchase 2,173,081 (March 31, 2023 – 2,678,861 ) common shares are not included in the number of issued and outstanding common shares as of March 31, 2024. (c) Stock-based compensation: Stock Options The following table presents stock option activity for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 Weighted Average 2023 Weighted Average Outstanding, beginning of period 8,894,502 23.56 7,117,782 18.75 Granted 1,983,525 44.53 1,866,548 34.29 Exercised (1) ( 180,424 ) 23.42 ( 113,677 ) 6.49 Forfeited, cancelled or expired ( 18,911 ) 30.87 ( 73,400 ) 28.49 Outstanding, end of period 10,678,692 27.45 8,797,253 22.12 Exercisable, end of period 5,419,295 18.27 4,104,317 14.04 (1) During the three months ended March 31, 2024, the Company issued 88,704 ( 2023 – 94,319 ) common shares for the cashless exercise of 180,424 ( 2023 – 113,677 ) stock options. The fair value of each stock option granted is estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended March 31, 2024 2023 Average risk-free interest rate 4.05 % 3.87 % Expected volatility 67 % 69 % Average expected term (in years) 5.92 6.13 Expected dividend yield 0 % 0 % Weighted average fair value of stock options granted $ 27.89 $ 22.19 Performance Share Units In March 2024, 192,000 PSUs were granted to officers and certain employees. The vesting conditions, vesting period and expiry of the PSUs are determined by the board of directors, subject to the terms of the Amended and Restated 2014 Equity Incentive Plan. PSUs vest upon the achievement of certain predefined company-specific performance-based criteria on or before December 31, 2027, subject to continued employment to each performance objective achievement date. No PSUs vested during the three months ended March 31, 2024.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and contingencies: (a) Asset purchase agreement with 1st Order Pharmaceuticals, Inc. (“1st Order”): In April 2017, the Company acquired azetukalner (XEN1101) from 1st Order pursuant to an asset purchase agreement. In August 2020, the Company and 1st Order amended the asset purchase agreement to amend certain definitions in the agreement and to modify the payment schedule for certain milestones. Through March 31, 2024, the Company has paid $ 2,000 based on progress against these milestones. Future potential payments to 1st Order include up to $ 6,000 in regulatory milestones. There are no royalty obligations to 1st Order. (b) Guarantees and indemnifications: The Company has entered into license and research agreements with third parties that include indemnification provisions that are customary in the industry. These indemnification provisions generally require the Company to compensate the other party for certain damages and costs incurred as a result of third-party claims or damages arising from these transactions. The maximum amount of potential future indemnification is unlimited; however, the Company currently holds commercial and product liability insurance. This insurance limits the Company’s exposure and may enable it to recover a portion of any future amounts paid. Historically, the Company has not made any indemnification payments under such agreements and the Company believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations for any period presented.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Stock based compensation	(a) Stock based compensation: The Company grants performance share unit awards (“PSUs”) to certain employees and officers. PSUs vest upon the achievement of certain predefined company-specific performance-based criteria. PSUs are measured at the closing market price of the Company’s common shares on the date of grant. Stock-based compensation expense for PSUs is amortized on a straight-line basis over the requisite service period of each separately vesting tranche of the award once it is probable that the performance condition will be achieved.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
Fair Value of Financial Instruments (Tables)	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis	The level of the fair value hierarchy utilized to determine such fair values consisted of the following: March 31, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents Cash and money market fund $ 58,896 $ — $ — $ 58,896 $ 148,643 $ — $ — $ 148,643 Marketable securities Guaranteed investment certificates 15,068 — — 15,068 7,684 — — 7,684 U.S. treasuries 283,764 — — 283,764 252,982 — — 252,982 U.S. government securities — 63,036 — 63,036 — 97,912 — 97,912 Commercial paper — 183,130 — 183,130 — 119,108 — 119,108 Corporate debt securities — 281,544 — 281,544 — 304,545 — 304,545 Total $ 357,728 $ 527,710 $ — $ 885,438 $ 409,309 $ 521,565 $ — $ 930,874

Marketable Securities (Tables)

Marketable Securities (Tables)	3 Months Ended
Marketable Securities (Tables)	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Summary of Amortized Cost, Unrealized Gain (Loss) Recognized in AOCI and Fair Value of Available-for-Sale Securities	Amortized cost, unrealized gain (loss) recognized in accumulated other comprehensive income (loss) and fair value of available-for-sale securities consisted of the following: March 31, 2024 December 31, 2023 Amortized Unrealized Fair Amortized Unrealized Fair Contractual maturity of 0 to 1 years: Guaranteed investment certificates $ 15,151 $ ( 83 ) $ 15,068 $ 7,549 $ 135 $ 7,684 U.S. treasuries 235,677 ( 235 ) 235,442 192,193 ( 249 ) 191,944 U.S. government securities 63,258 ( 222 ) 63,036 98,092 ( 180 ) 97,912 Commercial paper 183,218 ( 88 ) 183,130 119,041 67 119,108 Corporate debt securities 143,924 106 144,030 58,824 100 58,924 Contractual maturity of 1 to 3 years: U.S. treasuries 48,507 ( 185 ) 48,322 53,294 243 53,537 Corporate debt securities 137,586 ( 72 ) 137,514 238,458 797 239,255 Total $ 827,321 $ ( 779 ) $ 826,542 $ 767,451 $ 913 $ 768,364

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2024
Leases [Abstract]
Schedule of Cost Components of Operating Lease	The cost components of the operating leases were as follows for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Lease Cost Operating lease expense $ 412 $ 412 Variable lease expense (1) 208 197 Lease Term and Discount Rate Weighted average remaining lease term (years) 7.09 7.98 Weighted average discount rate 3.87 % 3.92 % (1) Variable lease costs are payments that vary because of changes in facts or circumstances and include common area maintenance and property taxes related to the premises. Variable lease costs are excluded from the calculation of minimum lease payments.
Future Minimum Lease Payments	Future minimum lease payments as of March 31, 2024 were as follows: Year ending December 31: 2024 $ 1,269 2025 1,747 2026 1,815 2027 1,802 2028 1,102 2029 and thereafter 4,193 Total future minimum lease payments $ 11,928 Less: imputed interest ( 1,503 ) Present value of lease liabilities $ 10,425

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	3 Months Ended
Accounts Payable and Accrued Expenses (Tables)	Mar. 31, 2024
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consisted of the following: March 31, December 31, 2024 2023 Trade payables $ 6,430 $ 8,598 Employee compensation, benefits, and related accruals 3,819 7,425 Consulting and contracted research 8,942 8,824 Professional fees 1,603 780 Other 106 347 Total $ 20,900 $ 25,974

Share Capital (Tables)

Share Capital (Tables)	3 Months Ended
Share Capital (Tables)	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule Of Pre-Funded Warrants Activity	The following table summarizes the pre-funded warrants activity for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Outstanding, beginning of period 2,173,081 3,103,864 Exercised — ( 425,003 ) Outstanding, end of period 2,173,081 2,678,861
Stock Option Activity	The following table presents stock option activity for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 Weighted Average 2023 Weighted Average Outstanding, beginning of period 8,894,502 23.56 7,117,782 18.75 Granted 1,983,525 44.53 1,866,548 34.29 Exercised (1) ( 180,424 ) 23.42 ( 113,677 ) 6.49 Forfeited, cancelled or expired ( 18,911 ) 30.87 ( 73,400 ) 28.49 Outstanding, end of period 10,678,692 27.45 8,797,253 22.12 Exercisable, end of period 5,419,295 18.27 4,104,317 14.04 (1) During the three months ended March 31, 2024, the Company issued 88,704 ( 2023 – 94,319 ) common shares for the cashless exercise of 180,424 ( 2023 – 113,677 ) stock options.
Fair Value Assumptions for Stock Options	The fair value of each stock option granted is estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended March 31, 2024 2023 Average risk-free interest rate 4.05 % 3.87 % Expected volatility 67 % 69 % Average expected term (in years) 5.92 6.13 Expected dividend yield 0 % 0 % Weighted average fair value of stock options granted $ 27.89 $ 22.19

Nature of the Business (Details

Nature of the Business (Details) - USD ($) $ in Thousands	3 Months Ended
Nature of the Business (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 713,071		$ 665,140
Net loss	$ 47,931	$ 41,727

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - Recurring Basis [Member] - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	$ 885,438	$ 930,874
Level 1 [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	357,728	409,309
Level 2 [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	527,710	521,565
Cash and Money Market Fund [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Cash and cash equivalents	58,896	148,643
Cash and Money Market Fund [Member] \| Level 1 [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Cash and cash equivalents	58,896	148,643
Guaranteed Investment Certificates [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	15,068	7,684
Guaranteed Investment Certificates [Member] \| Level 1 [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	15,068	7,684
U.S. Treasuries [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	283,764	252,982
U.S. Treasuries [Member] \| Level 1 [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	283,764	252,982
U.S. Government Securities [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	63,036	97,912
U.S. Government Securities [Member] \| Level 2 [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	63,036	97,912
Commercial Paper [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	183,130	119,108
Commercial Paper [Member] \| Level 2 [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	183,130	119,108
Corporate Debt Securities [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	281,544	304,545
Corporate Debt Securities [Member] \| Level 2 [Member]
Financial Assets Measured at Fair Value on a Recurring Basis [Line Items]
Financial assets	$ 281,544	$ 304,545

Marketable Securities - Additio

Marketable Securities - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Trading marketable securities		$ 13,867
Trading securities available-for-sale	$ 826,542	$ 768,364

Marketable Securities - Summary

Marketable Securities - Summary of Amortized Cost, Unrealized Gain (Loss) Recognized in AOCI and Fair Value of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 827,321	$ 767,451
Unrealized Gain (Loss)	(779)	913
Fair Value	826,542	768,364
Guaranteed Investment Certificates [Member]
Schedule Of Available For Sale Securities [Line Items]
Contractual maturity of 0 to 1 years, Amortized Cost	15,151	7,549
Contractual maturity of 0 to 1 years, Unrealized Gain (Loss)	(83)	135
Contractual maturity of 0 to 1 years, Fair Value	15,068	7,684
U.S. Treasuries [Member]
Schedule Of Available For Sale Securities [Line Items]
Contractual maturity of 0 to 1 years, Amortized Cost	235,677	192,193
Contractual maturity of 0 to 1 years, Unrealized Gain (Loss)	(235)	(249)
Contractual maturity of 0 to 1 years, Fair Value	235,442	191,944
Contractual maturity of 1 to 3 years, Amortized Cost	48,507	53,294
Contractual maturity of 1 to 3 years, Unrealized Gain (Loss)	(185)	243
Contractual maturity of 1 to 3 years, Fair Value	48,322	53,537
U.S. Government Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Contractual maturity of 0 to 1 years, Amortized Cost	63,258	98,092
Contractual maturity of 0 to 1 years, Unrealized Gain (Loss)	(222)	(180)
Contractual maturity of 0 to 1 years, Fair Value	63,036	97,912
Commercial Paper [Member]
Schedule Of Available For Sale Securities [Line Items]
Contractual maturity of 0 to 1 years, Amortized Cost	183,218	119,041
Contractual maturity of 0 to 1 years, Unrealized Gain (Loss)	(88)	67
Contractual maturity of 0 to 1 years, Fair Value	183,130	119,108
Corporate Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Contractual maturity of 0 to 1 years, Amortized Cost	143,924	58,824
Contractual maturity of 0 to 1 years, Unrealized Gain (Loss)	106	100
Contractual maturity of 0 to 1 years, Fair Value	144,030	58,924
Contractual maturity of 1 to 3 years, Amortized Cost	137,586	238,458
Contractual maturity of 1 to 3 years, Unrealized Gain (Loss)	(72)	797
Contractual maturity of 1 to 3 years, Fair Value	$ 137,514	$ 239,255

Leases (Details)

Leases (Details)	3 Months Ended
Leases (Details)	Mar. 31, 2024 Lease Option	Oct. 31, 2022
Burnaby, British Columbia [Member]
Lessee Lease Description [Line Items]
Number of operating leases	1
Operating lease expiration date	Jun. 30, 2032
Operating lease, number of renewal options \| Option	2
Operating lease, description	The Company has an operating lease for research laboratories and office space in Burnaby, British Columbia which expires on June 30, 2032, and two renewal options for 5-years each which were not considered in the determination of the right-of-use asset and lease liability.
Burnaby, British Columbia [Member] \| First Renewal Option [Member]
Lessee Lease Description [Line Items]
Operating lease extension term	5 years
Burnaby, British Columbia [Member] \| Second Renewal Option [Member]
Lessee Lease Description [Line Items]
Operating lease extension term	5 years
Needham Massachusetts [Member]
Lessee Lease Description [Line Items]
Number of operating leases	1
Operating lease term		62 months
Operating lease, option to terminate	option to terminate one year prior to the expiry date
Operating lease, description	The Company has an additional operating lease for office space in Needham, Massachusetts ("Needham Lease"), which commenced in October 2022. The Needham Lease is for a 62-month term and an option to terminate one year prior to the expiry date, which was not considered in the determination of the right-of-use asset and lease liability.

Leases - Schedule of Cost Compo

Leases - Schedule of Cost Components of Operating Lease (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease expense	$ 412	$ 412
Variable lease expense	$ 208	$ 197
Weighted average remaining lease term (years)	7 years 1 month 2 days	7 years 11 months 23 days
Weighted average discount rate	3.87%	3.92%

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2024	$ 1,269
2025	1,747
2026	1,815
2027	1,802
2028	1,102
2029 and thereafter	4,193
Total future minimum lease payments	11,928
Less: imputed interest	(1,503)
Present value of lease liabilities	$ 10,425

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Trade payables	$ 6,430	$ 8,598
Employee compensation, benefits, and related accruals	3,819	7,425
Consulting and contracted research	8,942	8,824
Professional fees	1,603	780
Other	106	347
Total	$ 20,900	$ 25,974

Share Capital (Details)

Share Capital (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended	25 Months Ended
	Mar. 31, 2024	Jan. 31, 2023	Jan. 31, 2021	Mar. 31, 2024	Mar. 31, 2024	Mar. 31, 2023
Share Capital [Line Items]
Warrants outstanding to purchase common stock	2,173,081			2,173,081	2,173,081	2,678,861
Warrants exercise price per common share	$ 0.0001			$ 0.0001	$ 0.0001	$ 0.0001
Performance Share Units [Member]
Share Capital [Line Items]
Shares granted	192,000
Shares vested				0
Common Shares [Member]
Share Capital [Line Items]
Pre-funded warrants exercised		425,003
Common stock issued upon conversion of pre-funded warrants		425,000
Jefferies and Stifel [Member] \| ATM [Member]
Share Capital [Line Items]
Sale proceeds of common shares			$ 10,693		$ 29,508
Jefferies and Stifel [Member] \| ATM [Member] \| Maximum [Member]
Share Capital [Line Items]
Gross proceeds from issuable of common stock				$ 250,000
Jefferies and Stifel [Member] \| ATM [Member] \| Common Shares [Member]
Share Capital [Line Items]
Shares issued			733,000		855,685

Share Capital - Schedule of Pre

Share Capital - Schedule of Pre-Funded Warrants (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Outstanding, beginning	2,173,081	3,103,864
Exercised	0	(425,003)
Outstanding, ending	2,173,081	2,678,861

Share Capital - Stock Option Ac

Share Capital - Stock Option Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Number of Options Outstanding, Beginning balance	8,894,502	7,117,782
Number of Options, Granted	1,983,525	1,866,548
Number of Options, Exercised	(180,424)	(113,677)
Number of Options, Forfeited, cancelled or expired	(18,911)	(73,400)
Number of Options Outstanding, Ending balance	10,678,692	8,797,253
Number of Options Exercisable, End of period	5,419,295	4,104,317
Weighted Average Exercise Price Outstanding, Beginning of period	$ 23.56	$ 18.75
Weighted Average Exercise Price, Granted	44.53	34.29
Weighted Average Exercise Price, Exercised	23.42	6.49
Weighted Average Exercise Price, Forfeited, cancelled and expired	30.87	28.49
Weighted Average Exercise Price Outstanding, End of period	27.45	22.12
Weighted Average Exercise Price, Exercisable, End of period	$ 18.27	$ 14.04

Share Capital - Stock Option _2

Share Capital - Stock Option Activity (Parenthetical) (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Common stock issued for cashless exercise	88,704	94,319
Cashless exercise of stock options	180,424	113,677

Share Capital - Fair Value Assu

Share Capital - Fair Value Assumptions for Stock Options (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Fair Value Assumptions For Stock Options [Abstract]
Average risk-free interest rate	4.05%	3.87%
Expected volatility	67%	69%
Average expected term (in years)	5 years 11 months 1 day	6 years 1 month 17 days
Expected dividend yield	0%	0%
Weighted average fair value of stock options granted	$ 27.89	$ 22.19

Commitments and Contingencies (

Commitments and Contingencies (Details) - Asset Purchase Agreement [Member] - 1st Order Pharmaceuticals, Inc. [Member]	3 Months Ended
	Mar. 31, 2024 USD ($)
Commitments And Contingencies [Line Items]
Milestone payment paid	$ 2,000,000
Royalty obligations	0
Regulatory Milestone [Member] \| Maximum [Member]
Commitments And Contingencies [Line Items]
Future potential payments	$ 6,000,000