Document and Entity Information - USD ($) |
12 Months Ended | ||
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Dec. 31, 2018 |
Jan. 31, 2019 |
Jun. 30, 2018 |
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Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | VICL | ||
Entity Registrant Name | VICAL INC | ||
Entity Central Index Key | 0000819050 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 21,820,195 | ||
Entity Public Float | $ 19,828,148 |
Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2018 |
Dec. 31, 2017 |
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Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 21,817,000 | 21,802,000 |
Common stock, shares outstanding | 21,817,000 | 21,802,000 |
Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Revenues: | |||
Contract revenue | $ 1,582 | $ 13,401 | $ 12,804 |
License and royalty revenue | 40 | 418 | 1,727 |
Total revenues | 1,622 | 13,819 | 14,531 |
Operating expenses: | |||
Research and development | 12,327 | 14,391 | 10,355 |
Manufacturing and production | 1,436 | 6,479 | 6,291 |
General and administrative | 7,505 | 6,335 | 7,062 |
Total operating expenses | 21,268 | 27,205 | 23,708 |
Loss from operations | (19,646) | (13,386) | (9,177) |
Other income: | |||
Investment and other income, net | 3,392 | 426 | 204 |
Net loss | $ (16,254) | $ (12,960) | $ (8,973) |
Basic and diluted net loss per share | $ (0.74) | $ (1.01) | $ (0.90) |
Weighted average shares used in computing basic and diluted net loss per share | 21,842 | 12,888 | 10,019 |
Statements of Comprehensive Loss - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (16,254) | $ (12,960) | $ (8,973) |
Unrealized gain (loss) on available-for-sale and long-term marketable securities: | |||
Unrealized gain (loss) arising during holding period, net of tax benefit of $37, $56 and $0 for years ended December 31, 2018, 2017 and 2016, respectively | 150 | 97 | (15) |
Other comprehensive gain (loss) | 150 | 97 | (15) |
Total comprehensive loss | $ (16,104) | $ (12,863) | $ (8,988) |
Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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Statement Of Income And Comprehensive Income [Abstract] | |||
Unrealized gain (loss) arising during holding period, tax benefit | $ 37 | $ 56 | $ 0 |
Organization and Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies |
1. Organization and Summary of Significant Accounting Policies Organization and Business Activity Vical Incorporated, or the Company, a Delaware corporation, was incorporated in April 1987 and has devoted substantially all of its resources since that time to its research and development programs. The Company researches and develops biopharmaceutical products, including those based on its patented DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases. All of the Company’s potential products are in research and development phases. No revenues have been generated from the sale of any such products, nor are any such revenues expected for at least the next several years. The Company earns revenue from research and development agreements with pharmaceutical collaborators and from contract manufacturing agreements. Most of the Company’s product candidates will require significant additional research and development efforts, including extensive preclinical and clinical testing. All product candidates that advance to clinical testing will require regulatory approval prior to commercial use, and will require significant costs for commercialization. There can be no assurance that the Company’s research and development efforts, or those of its collaborators, will be successful. The Company expects to continue to incur substantial losses and not generate positive cash flows from operations for at least the next several years. No assurance can be given that the Company can generate sufficient product revenue to become profitable or generate positive cash flows from operations. Basis of Presentation These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make informed estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes. Actual results could differ materially from those estimates. Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash and highly liquid securities with original maturities at the date of acquisition of ninety days or less and can be liquidated without prior notice or penalty. Investments with an original maturity of more than ninety days are considered marketable securities and have been classified by management as available-for-sale. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date which reflects management’s intention to use the proceeds from sales of these securities to fund its operations, as necessary. Such investments are carried at fair value, with unrealized gains and losses included as a separate component of stockholders’ equity. Realized gains and losses from the sale of available-for-sale securities or the amounts, net of tax, reclassified out of accumulated other comprehensive income (loss), if any, are determined on a specific identification basis. Restricted Cash The Company was required to maintain a letter of credit securing an amount equal to twelve months of the then current monthly installment of base rent for the original term of the lease for its facilities, which ended on August 31, 2017. In July 2016, the term of the lease was extended for 16 months through December 2018. During the extended term, the Company was required to maintain a letter of credit securing an amount equal to $0.2 million. At December 31, 2017, restricted cash of $0.2 million was pledged as collateral for the letter of credit. The letter of credit expired on December 31, 2018 and, therefore, no cash was pledged as collateral as of that date. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents, marketable securities and receivables. The Company invests its excess cash in debt instruments of financial institutions and of corporations with above average credit ratings, in U.S. government obligations, and in money market funds and certificates of deposits at financial institutions. Property and Equipment Property and equipment is recorded at cost and depreciation is computed using the straight-line method over the estimated useful lives of the assets. Assets acquired pursuant to capital lease arrangements and leasehold improvements are amortized using the straight-line method over the shorter of the life of the remaining lease term or the remaining useful life of the asset. Manufacturing equipment has estimated useful lives of 5 to 10 years. All other property and equipment have estimated useful lives of 3 to 5 years. Maintenance and repairs of property and equipment are expensed as incurred. Intangible Assets Intangible assets include certain costs related to patent applications. The Company capitalizes license fees paid to acquire access to proprietary technology if the technology is expected to have alternative future use in multiple research and development projects. The cost of licensed technology rights is amortized using the straight-line method over the estimated useful life of the technology. Certain costs related to patent applications are amortized over the estimated economic lives of the patents, which is generally 20 years and typically commences at the time the patent application is filed. As of December 31, 2018, the Company had no capitalized patent costs. Amortization expense for licensed technology and capitalized patent cost is included in research and development expenses. Impairment of Long-lived Assets The Company reviews long-lived assets for impairment at least annually, quarterly for intangible assets, and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Should an impairment exist, the impairment loss would be measured based on the excess of the carrying amount of the asset over the asset’s estimated fair value and the loss recognized in current earnings. The Company recognized research and development expense of approximately $0.7 million, $0.0 million and $0.4 million for the years ended December 31, 2018, 2017 and 2016, respectively, related to patents for which the value was deemed to be impaired. Revenue Recognition The Company recognizes revenue when control of its products and services is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Research and Development Costs Research and development costs are expensed as incurred. Research and development costs include salaries and personnel-related costs, supplies and materials, outside services, costs of conducting preclinical and clinical trials, facilities costs and amortization of intangible assets. The Company accounts for its clinical trial costs by estimating the total cost to treat a patient in each clinical trial, and accruing this total cost for the patient over the estimated treatment period, which corresponds with the period over which the services are performed, beginning when the patient enrolls in the clinical trial. This estimated cost includes payments to the site conducting the trial, and patient-related lab and other costs related to the conduct of the trial. Cost per patient varies based on the type of clinical trial, the site of the clinical trial, the method of administration of the treatment, and the number of treatments that a patient receives. Treatment periods vary depending on the clinical trial. The Company makes revisions to the clinical trial cost estimates in the current period, as clinical trials progress. Manufacturing and Production Costs Manufacturing and production costs include expenses related to manufacturing contracts and expenses for the production of plasmid DNA for use in the Company’s research and development efforts. Manufacturing expenses related to manufacturing contracts are deferred and expensed when the related revenue is recognized. Deferred contract costs at December 31, 2018 and 2017 were $0.0 million and $10.5 million, respectively. Production expenses related to the Company’s research and development efforts are expensed as incurred. Net Loss Per Share Basic and diluted net loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares used to compute diluted loss per share excludes any assumed exercise of stock options, and the assumed issuance of common stock under RSUs, as the effect would be antidilutive. Common stock equivalents of 7.2 million, 1.8 million and 7,350 for the years ended December 31, 2018, 2017 and 2016, respectively, were excluded from the calculation because of their antidilutive effect. Fair Value of Financial Instruments The carrying amounts of cash, cash equivalents, restricted cash, marketable securities, receivables, accounts payable and accrued expenses at December 31, 2018 and 2017, are considered to approximate fair value because of the short term nature of those items. Income Taxes The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. There were no unrecognized tax benefits recorded by the Company as of the date of adoption in 2007. There are no unrecognized tax benefits included in the balance sheets that would, if recognized, affect the effective tax rate. Deferred income taxes result primarily from temporary differences between financial and tax reporting. Deferred tax assets and liabilities are determined based on the difference between the financial statement bases and the tax bases of assets and liabilities using enacted tax rates. A valuation allowance is established to reduce a deferred tax asset to the amount that is expected more likely than not to be realized. The Tax Cuts and Jobs Act (“the Act”) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21%. Pursuant to the Securities and Exchange Commission Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), we have finalized the accounting for the income tax effects of the Tax Legislation and believe the disclosures made in the financial statements as of December 31, 2017 are still accurate. Comprehensive Loss Comprehensive loss consists of net loss and certain changes in equity that are excluded from net loss. Comprehensive loss for the years ended December 31, 2018, 2017 and 2016, has been reflected in the accompanying Statements of Comprehensive Loss. Accumulated other comprehensive income (loss), which is included in stockholders’ equity, represents unrealized gains and losses on marketable securities. Business Segments The Company operates in one business segment, which is within the United States, and is dedicated to research and development of biopharmaceutical products. Stock-Based Compensation The Company records its compensation expense associated with stock options and other forms of equity compensation based on their fair value at the date of grant using the Black-Scholes-Merton option pricing model. Stock-based compensation expense includes amortization related to stock option awards based on the estimated grant date fair value. The compensation expense related to stock options is recognized ratably over the vesting period of the options. In addition, the Company records expense related to RSUs granted based on the fair value of those awards on the grant date. The fair value related to the RSUs is amortized to expense over the vesting term of those awards. Stock-based compensation expense related to stock options and RSUs for the year ended December 31, 2016 includes an estimate of 8.75% for forfeitures. Effective January 1, 2017, the Company adopted ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” which allowed the Company to change its methodology for recording forfeitures from estimated forfeitures to actual forfeitures and recorded an adjustment to beginning retained earnings of $0.1 million. The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton valuation model using the assumptions noted in the following table. The expected life of options is based on the Company’s observed historical exercise patterns. The expected volatility of stock options is based upon the historical volatility of the Company’s stock commensurate with the expected life of the option. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the option. The dividend yield reflects that the Company has not paid any cash dividends since inception and does not intend to pay any cash dividends in the foreseeable future.
Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The Company adopted the new standard effective January 1, 2018 using the modified retrospective method applied to contracts not completed as of December 31, 2017. As it relates to process validation lots and stock piling lots completed but not delivered as of December 31, 2017 at the request of a customer, the Company concluded that, under ASC 606, the criteria for transfer of control were met prior to January 1, 2018 and as a result, the Company recorded an adjustment as of January 1, 2018 to recognize previously deferred revenue of $11.4 million and previously deferred contract costs of $10.5 million, with an adjustment to retained earnings of $0.9 million. There was no tax impact, as the effect of the implementation for tax purposes was offset by the valuation allowance. The impact of adoption on the Company’s income statement and balance sheet as of December 31, 2018 and for the 12 months then ended was as follows (in thousands):
In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The new standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months and will require both lessees and lessors to disclose certain key information about lease transactions. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company will adopt the new standard in the first quarter of 2019. While the Company is continuing to assess the potential impacts of the new standard, the Company estimates that the adoption of ASU No. 2016-02 will have no significant impact on its financial statements. |
Short-Term Marketable Securities |
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Investments Debt And Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term Marketable Securities |
2. Short-Term Marketable Securities The following is a summary of short-term marketable securities classified as available-for-sale (in thousands):
At December 31, 2018, none of these securities were scheduled to mature outside of one year. There were no net realized gains (losses) on sales of available-for-sale securities for the years ended December 31, 2018, 2017 and 2016. None of these investments have been in a continuous unrealized loss position for more than 12 months as of December 31, 2018 and 2017. |
Long-Term Investments |
12 Months Ended |
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Dec. 31, 2018 | |
Investments All Other Investments [Abstract] | |
Long-Term Investments |
3. Long-Term Investments As of December 31, 2018, the Company held an auction rate security with a par value of $2.5 million. This auction rate security has not experienced a successful auction since the liquidity issues experienced in the global credit and capital markets in 2008. As a result the security is classified as a long-term investment as it is scheduled to mature in 2038. The security was rated BBB by Standard and Poor’s as of December 31, 2018. The security continues to pay interest according to its stated terms. The valuation of the Company’s auction rate security is subject to uncertainties that are difficult to predict. The fair value of the security is estimated utilizing a discounted cash flow analysis. The key drivers of the valuation model include the expected term, collateral underlying the security investment, the creditworthiness of the counterparty, the timing of expected future cash flows, discount rates, liquidity and the expected holding period. The security was also compared, when possible, to other observable market data for securities with similar characteristics. As of December 31, 2018, the inputs used in the Company’s discounted cash flow analysis assumed an interest rate of 6.71%, an estimated redemption period of five years and a discount rate of 1.0%. Based on the valuation of the security, the Company has recognized cumulative losses of $0.4 million as of December 31, 2018, none of which were realized during the year ended December 31, 2018. The losses, when recognized, are included in investment and other income. The market value of the security has partially recovered. Included in other comprehensive (loss) income are unrealized gains (losses) of $139,000, $108,000 and $(6,000) for the years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018, the Company had recorded cumulative unrealized gains of $0.6 million. The resulting carrying value of the auction rate security at December 31, 2018, was $2.4 million. Any future decline in market value may result in additional losses being recognized. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
4. Fair Value Measurements The Company measures fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Cash equivalents, marketable securities and long-term investments measured at fair value are classified in the table below in one of the three categories described above (in thousands):
The Company’s investments in U.S. treasury securities, certificates of deposit and money market funds are valued based on publicly available quoted market prices for identical securities as of December 31, 2018. The Company determines the fair value of other government-sponsored enterprise related securities with the aid of valuations provided by third parties using proprietary valuation models and analytical tools. These valuation models and analytical tools use market pricing or similar instruments that are both objective and publicly available, including matrix pricing or reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids and/or offers. The Company validates the valuations received from its primary pricing vendors for its level 2 securities by examining the inputs used in that vendor’s pricing process and determines whether they are reasonable and observable. The Company also compares those valuations to recent reported trades for those securities. The Company did not adjust any of the valuations received from these third parties with respect to any of its level 2 securities at December 31, 2018. The valuation of the Company’s investment in auction rate securities is more fully described in Note 3. Activity for assets measured at fair value using significant unobservable inputs (Level 3) is presented in the table below (in thousands):
Total cumulative unrealized losses of $0.1 million relate to Level 3 assets still held as of December 31, 2018, none of which were recognized during the years ended December 31, 2018, 2017 and 2016. The losses, when recognized, are included in investment and other income.
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Other Balance Sheet Accounts |
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Other Balance Sheet Accounts |
5. Other Balance Sheet Accounts Property and equipment consisted of the following at December 31 (in thousands):
Depreciation and amortization of equipment and leasehold improvements for the years ended December 31, 2018, 2017 and 2016, was $0.1 million, $0.6 million and $0.9 million, respectively. Intangible assets consisted of the following at December 31 (in thousands):
Amortization of licensed technology rights and patent application costs was $0.1 million for each of the years ended December 31, 2018, 2017 and 2016. Accounts payable and accrued expenses consisted of the following at December 31 (in thousands):
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Significant Contract, License and Royalty Agreements |
12 Months Ended |
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Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Significant Contract, License and Royalty Agreements |
6. Significant Contract, License and Royalty Agreements Contracts Astellas In July 2011, the Company entered into license agreements with Astellas, granting Astellas exclusive, worldwide, royalty-bearing licenses under certain of the Company’s know-how and intellectual property to develop and commercialize certain products containing plasmids encoding certain forms of glycoprotein B and/or phosphoprotein 65. Under the terms of the license agreements, Astellas paid a nonrefundable upfront license fee of $25.0 million. In 2012, the Company received a $10.0 million milestone payment upon finalization of the trial design for a Phase 3 registration trial of ASP0113 in hematopoietic stem cell transplant recipients. The Company identified the deliverables at the inception of the agreements. The Company determined that the license and related know-how, the development and regulatory services and the drug product supply individually represent separate units of accounting, because each deliverable has standalone value. The best estimated selling prices for these units of accounting was determined based on market conditions, the terms of comparable collaborative arrangements for similar technology in the pharmaceutical and biotechnology industry and entity-specific factors, such as the terms of the Company’s previous collaborative agreements, the Company’s pricing practices and pricing objectives and the nature of the research and development services to be performed for the partner. The arrangement consideration was allocated to the deliverables based on the relative selling price method. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable; therefore, the amount allocated to the licenses was limited to the extent of cash received. As a result, during the years ended December 31, 2018, 2017 and 2016, the Company recognized $0.0 million, $0.3 million and $1.5 million, respectively, related to the license fee and know-how. The Company recognized the amounts allocated to research and development services as revenues under the agreements as the related services were delivered and as reimbursements were received. During the years ended December 31, 2018, 2017 and 2016, the Company recognized $1.2 million, $12.9 million and $10.1 million, respectively, of revenue related to contract services delivered. The Company recognized as revenue the amounts allocated to the sales of drug product when the sale of that drug product had met all required specifications and the related title and risk of loss and damages passed to Astellas. During the years ended December 31, 2018, 2017 and 2016, the Company recognized $0.0 million, $0.0 million and $2.4 million, respectively, of revenue related to drug product delivered. In January 2018, Astellas announced the results from a Phase 3 trial of ASP0113 in approximately 515 CMV seropositive subjects undergoing HCT procedures. Top-line results from the Phase 3 study demonstrated that the trial did not meet its primary endpoint in CMV end organ disease. Based on these results, Astellas determined to cease further clinical development of ASP0113 and has terminated the license agreement. In-licensing Agreements Astellas In March 2015, the Company entered into a license agreement with Astellas which grants to the Company exclusive worldwide license to develop and commercialize a novel antifungal, VL-2397. As consideration for the rights under the license, the Company issued 86,121 shares of our common stock to Astellas and made an up-front payment of $250,000 in cash. The License Agreement provides for potential development, regulatory and sales milestone payments totaling up to $99.0 million, the vast majority of which are payable upon achievement of commercial and sales milestones, and single-digit royalties on net sales of commercial products. The Company is responsible for the worldwide development, manufacturing and commercialization of licensed products, at the Company’s cost, and we are required to use commercially reasonable efforts with respect to such development and commercialization activities. The license agreement, unless terminated earlier, will continue until expiration of Vical’s royalty obligations with respect to licensed products. Either party may terminate the license agreement earlier if the other party materially breaches the agreement and does not cure the breach within a specified notice period, or upon the other party’s insolvency. Astellas may terminate the license agreement earlier if Vical or any of its affiliates or sublicensees oppose or challenge any of the licensed patents. Vical may terminate the license agreement on a country-by-country basis for reasonable scientific, regulatory, commercial, financial, ethical or other reasons. Milestone Payments The Company may be required to make future payments to its licensors based on the achievement of milestones set forth in various in-licensing agreements. In most cases, these milestone payments are based on the achievement of development or regulatory milestones, including the exercise of options to obtain licenses related to specific disease targets, commencement of various phases of clinical trials, filing of product license applications, approval of product licenses from the FDA or a foreign regulatory agency, and the first commercial sale of a related product. Payment for the achievement of milestones under the Company’s in-license agreements is highly speculative and subject to a number of contingencies. The aggregate amount of additional milestone payments that the Company could be required to pay under its active in-license agreements in place at December 31, 2018, is approximately $99.0 million. These amounts assume that all remaining milestones associated with the milestone payments are met. In the event that product license approval for any of the related products is obtained, the Company may be required to make royalty payments in addition to these milestone payments. Although the Company believes that some of the milestones contained in its in-license agreements may be achieved, it is highly unlikely that a significant number of them will be achieved. Because the milestones are contingent the Company is not in a position to reasonably estimate how much, if any, of the potential milestone payments will ultimately be paid. Additionally, under the in-license agreements, many of the milestone events are related to progress in clinical trials which the Company estimates will take several years to achieve. |
Commitments and Contingencies |
12 Months Ended |
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Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies |
7. Commitments and Contingencies Facility Leases The Company occupied approximately 68,400 square feet of manufacturing, research laboratory and office space until July 2018 when the Company entered into an agreement with Genopis, Inc. (“Genopis”) to sell the Company’s idle manufacturing assets for $1.7 million. As part of the agreement, Genopis agreed to sublease 51,400 square feet of the Company’s facility through the remaining term of the Company’s lease which expired on December 31, 2018. Genopis was also required to sign a long-term lease with the facility’s landlord beginning on January 1, 2019. Genopis agreed to sublease 17,000 square feet of the facility to the Company at no cost for the one-year period ending on December 31, 2019. A gain on the sale of assets of $2.3 million was recorded, with $1.1 million attributable to the fair value of rent for the space that the Company is occupying at no cost. The amount was recorded to deferred rent expense in Receivables and Other Assets and is being amortized as rent expense through December 31, 2019. Rent expense for the years ended December 31, 2018, 2017 and 2016 was $1.5 million, $2.4 million, and $2.6 million, respectively. At December 31, 2018, there were no future minimum rental payments due by the Company.
Other Contingencies In the ordinary course of business, the Company may become a party to additional lawsuits involving various matters. The Company is unaware of any such lawsuits presently pending against it which, individually or in the aggregate, are deemed to be material to the Company’s financial condition or results of operations. The Company prosecutes its intellectual property vigorously to obtain the broadest valid scope for its patents. Due to uncertainty of the ultimate outcome of these matters, the impact on future operating results or the Company’s financial condition is not subject to reasonable estimates. |
Stockholders' Equity |
12 Months Ended |
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Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity |
8. Stockholders’ Equity As of the date of this filing the Company has on file a shelf registration statement that allows it to raise up to an additional $40.0 million from the sale of common stock, preferred stock, debt securities and/or warrants. Specific terms of any offering under the shelf registration statements and the securities involved would be established at the time of sale. In November 2017, the Company sold 9,194,286 shares of its common stock in a public offering at a price of $1.75 per share, including an overallotment of 2,142,857 shares issued at a price of $1.75 per share, and pre-funded warrants to purchase 7,234,285 shares of common stock at a purchase price of $1.74 per share. Net proceeds from the offering, after deducting underwriting discounts and commissions and other offering expenses payable by the Company, totaled $26.4 million. The pre-funded warrants have an exercise price of $0.01 per share and are immediately exercisable and may be exercised at any time. In October 2016, we entered into an At-The-Market Issuance Sales Agreement, or the ATM Agreement, with IFS Securities, Inc. (doing business as Brinson Patrick, a division of IFS Securities, Inc.), or BP, under which we could issue and sell up to $10.0 million of shares of our common stock from time to time. The ATM expired in October 2018. For the 12 months ended December 31, 2017, we sold 1,509,370 shares under the ATM Agreement and received gross proceeds of $4.3 million. We sold no shares under the agreement in 2018. On August 1, 2016, the Company entered into a stock purchase agreement with AnGes, Inc., or AnGes, an existing stockholder, to purchase 1,841,420 shares of the Company’s common stock in a private placement. The shares were sold at a price of $4.24 per share. Gross proceeds totaled approximately $7.8 million. The private placement closed on August 2, 2016. The shares are subject to a two-year lock-up period during which they may not be sold and AnGes has agreed to not increase its ownership position beyond 19.9% and to refrain from taking certain other actions with respect to the Company’s stock, subject to certain conditions. AnGes is entitled to have a representative attend meetings of the Company’s Board of Directors in a non-voting capacity and may in the future be entitled to have a representative appointed to the Company’s Board of Directors, subject to certain conditions. AnGes has also agreed to vote its shares in accordance with the recommendations of the Company’s Board of Directors for so long as it continues to hold a specified percentage of the Company’s outstanding common stock. The Company also agreed under certain circumstances in the future to register the private placement shares for resale by AnGes. |
Stock Based Compensation |
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Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation |
9. Stock Based Compensation The Company has a stock-based compensation plan which is described below. Total stock-based compensation expense of $0.4 million, $0.8 million and $1.0 million was recognized for the years ended December 31, 2018, 2017 and 2016, respectively. Total stock-based compensation expense was allocated to research and development, manufacturing and production and general and administrative expense as follows (in thousands):
Stock Incentive Plan The Company has a stock incentive plan, under which 3,370,000 shares of common stock, subject to adjustment as provided in the plan, are reserved for issuance to employees, non-employee directors and consultants of the Company. As of December 31, 2018 there were 2,927,509 shares reserved for future issuance under the plan. The plan provides for the grant of incentive and nonstatutory stock options and the direct award or sale of shares, including restricted stock. The exercise price of stock options must equal at least the fair market value of the underlying common stock on the date of grant. The maximum term of options granted under the plan is ten years. Except for annual grants to non-employee directors which vest at the next annual meeting, options generally vest 25% on the first anniversary of the date of grant, with the balance vesting quarterly over the remaining three years. The plan also limits the number of options that may be granted to any plan participant in a single calendar year to 1,300,000 shares. The Company has granted RSUs to executive officers, other executives, and employees under the stock incentive plan. There were no RSUs granted in the years ended December 31, 2018, 2017 or 2016. These RSUs generally vest 25% on the first anniversary date of the grant, with the remaining rights vesting quarterly over the remaining three years and, once vested, allow the participants to acquire the underlying shares of common stock at par value. The participants are not entitled to sell or transfer any unvested RSUs and are not entitled to vote or receive dividends on any shares of common stock covered by the RSUs prior to the acquisition of such shares. Granted but unvested RSUs are forfeited at termination of employment. Compensation expense related to the RSUs for the years ended December 31, 2018, 2017, and 2016 was approximately $23,000, $95,000 and $316,000, respectively. The following table summarizes stock option transactions under the Company’s stock incentive plans for the years ended December 31, 2018, 2017 and 2016:
The number of underlying shares and weighted average exercise price of options exercisable at December 31, 2018, 2017 and 2016, were 1,222,876 shares at $13.71, 1,005,400 shares at $18.72, and 808,639 shares at $23.43, respectively. The weighted average remaining contractual term of options outstanding and options exercisable at December 31, 2018, was 6.6 years and 5.5 years, respectively. The weighted average remaining contractual term of vested and unvested options expected to vest at December 31, 2018, was 6.6 years. The aggregate intrinsic value of options outstanding and options exercisable at December 31, 2018 was $0.0 million and $0.0 million, respectively. As of December 31, 2018, the total unrecognized compensation cost related to unvested options was $0.2 million, which is expected to be recognized over a weighted-average period of 1.39 years. The weighted average grant-date fair value of options granted during the years ended December 31, 2018, 2017 and 2016, was $0.81, $1.21 and $1.85 per share, respectively. There were no options exercised during the years ended December 31, 2018, 2017 or 2016. At December 31, 2018, there were 1,000,068 shares available for grant under the Company’s stock incentive plans. A summary of the outstanding RSUs as of December 31, 2018, and changes during the year then ended is presented below:
There were no RSUs granted in the years ended December 31, 2018, 2017 or 2016. As of December 31, 2018, the total unrecognized compensation cost related to unvested RSUs was $1,000, which is expected to be recognized over a weighted average period of one year. The aggregate grant-date fair value of shares subject to RSUs vested during the years ended December 31, 2018, 2017 and 2016, was $0.1 million, $0.3 million and $0.8 million, respectively. As of December 31, 2018, there were 27,809 shares of common stock underlying RSUs that were fully vested but the issuance of such shares has been deferred. |
Related Party Transaction |
12 Months Ended |
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Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transaction |
10. Related Party Transaction On April 4, 2017, the Company entered into a research collaboration agreement with AnGes. As of the date of the transaction, AnGes held 18.6% of the outstanding stock of the Company. Pursuant to the collaboration agreement, AnGes agreed to make a non-refundable payment to the Company of $750,000 and the Company agreed to conduct certain research activities related to a development program targeting chronic hepatitis B. An amendment to the agreement was executed in September 2018 that added an additional non-refundable payment from AnGes to the Company of $145,000. In exchange for the payments, AnGes received an option to negotiate exclusive rights in Japan related to the program. The parties also agreed to share the costs of prosecuting and maintaining intellectual property rights arising from the research program after such costs reach a specified limit. The decision to sell, license or sublicense rights is a contingent event within the Company’s control. There are no guarantees for any outcomes of the research activities, no purchase obligations required by the Company and no debt or equity arrangements connected with the research activities. There are no other written or oral side agreements between the Company and AnGes that indicate that the funding of the research activities will be repaid. The Company is responsible for the conduct of the research activities. The upfront payments were deferred and recognized as contract revenue as the related research costs are incurred. Contract revenue relating to this collaboration of $0.4 million and $0.5 million was recognized in the years ended December 31, 2018 and 2017, respectively. |
Restructuring Costs |
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Restructuring Costs |
11. Restructuring Costs In January 2018, the Company and Astellas announced that ASP0113 did not meet its primary endpoint in a Phase 3 clinical study in CMV end organ disease, after which Astellas informed the Company that it was terminating further development. As a result, the Company restructured its operations to conserve capital, which included a staff reduction of 40 employees and the write-off of certain intangible assets. The Company recorded charges for one-time employee termination benefits of $1.1 million and for intangible asset impairments of $0.3 million during the twelve months ended December 31, 2018. Overhead costs associated with the former manufacturing facility of $1.2 million have been recognized as general and administrative expense during the twelve months ended December 31, 2018. The following table summarizes the components of the restructuring charges (in thousands):
The following table sets forth the accrual activity for employee termination benefits for the 12 months ended December 31, 2018 (in thousands). No additional charges are expected to be incurred.
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Sale of Manufacturing Assets |
12 Months Ended |
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Dec. 31, 2018 | |
Sale Of Manufacturing Assets [Abstract] | |
Sale of Manufacturing Assets |
12. Sale of Manufacturing Assets In July 2018, the Company entered into an agreement with Genopis to sell the Company’s idle manufacturing assets for $1.7 million. As part of the agreement, Genopis agreed to sublease 51,400 square feet of the Company’s facility through the remaining term of the Company’s lease, which expired on December 31, 2018. Genopis was also required to sign a long-term lease with the facility’s landlord beginning on January 1, 2019. Genopis agreed to sublease 17,000 square feet of the facility (consisting of lab and office space) to the Company at no cost for the one-year period ending on December 31, 2019. A gain on the sale of assets of $2.3 million was recorded and is included in Investment and Other Income, Net. The gain includes $1.1 million for the fair value of rent for the lab and office space that the Company is occupying at no cost, with the offset recorded to deferred rent expense in Receivables and Other Assets. |
Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
13. Income Taxes At December 31, 2018, the Company had deferred tax assets of $87.4 million. Due to uncertainties surrounding the Company’s ability to generate future taxable income to realize these assets, a full valuation allowance has been established to offset the net deferred tax asset. Pursuant to Sections 382 and 383 of the Internal Revenue Code, or IRC, annual use of the Company’s net operating loss and credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period. The Company determined that such an ownership change occurred on December 29, 2006, as defined in the provisions of Section 382 of the IRC as a result of various stock issuances used to finance the Company’s operations. Such ownership change resulted in annual limitations on the utilization of tax attributes, including net operating loss carryforwards and tax credits. The Company estimates that $94.6 million of its net operating loss carryforwards were effectively eliminated under Section 382 for federal tax purposes. A portion of the remaining net operating losses limited by Section 382 become available each year. The Company also estimates that $11.8 million of its research and development credits and other tax credits were effectively eliminated under Section 383 for federal purposes. The Company’s Section 382 analysis was completed through December 31, 2011. The Company has not, however, conducted a Section 382 study for any periods subsequent to December 31, 2011, and as such, the Company cannot provide any assurance that a change in ownership within the meaning of the IRC has not occurred since that date. There is a risk that additional changes in ownership could have occurred since that date. If a change in ownership were to have occurred, additional net operating loss and tax credit carryforwards could be eliminated or restricted. If eliminated, the related asset would be removed from the deferred tax asset schedule with a corresponding reduction in the valuation allowance. Deferred income taxes result primarily from temporary differences between financial and tax reporting. Deferred tax assets and liabilities are determined based on the difference between the financial statement basis and the tax basis of assets and liabilities using enacted tax rates. A valuation allowance is established to reduce deferred tax assets to the amount that is expected more likely than not to be realized.
Significant components of the Company’s deferred tax assets as of December 31, 2018 and 2017 are listed below. A valuation allowance of $87.4 million and $83.6 million at December 31, 2018 and 2017, respectively, has been recognized to offset the net deferred tax assets as realization of such assets is uncertain. Amounts for the years ended December 31 were as follows (in thousands):
The reconciliation between the provision for income taxes and income taxes computed using the U.S. federal statutory corporate tax rate were as follows for the years ended December 31 (in thousands):
As of December 31, 2018 and 2017, the Company had available federal net operating loss carryforwards of approximately $331.3 million and $319.1 million, respectively. The net operating loss generated in 2018 of $18.8 million will carry forward indefinitely and be available to offset up to 80% of future taxable income each year. Net operating losses generated prior to 2018 will expire from 2019 through 2038. In addition, the Company had federal research and development credit and orphan drug credit carryforwards of $27.1 million and $26.3 million as of December 31, 2018 and 2017, respectively, to reduce future federal income taxes, if any. These carryforwards expire from 2019 through 2038 and are subject to review and possible adjustment by the Internal Revenue Service. The Company also has available California state net operating loss carryforwards of approximately $264.6 million and $254.9 million as of December 31, 2018 and 2017, respectively, which expire from 2028 to 2038. In addition, the Company had California research and development credits of approximately $9.3 million and $8.8 million as of December 31, 2018 and 2017, respectively, to reduce future California income tax, if any. The California research and development credits do not expire. All federal and state net operating loss and credit carryforwards listed above are reflected before the reduction for amounts effectively eliminated under Sections 382 and 383. Based upon statute, federal and state losses and credits are expected to expire as follows (in millions):
In March 2016, the FASB issued Accounting Standards Update No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies how several aspects of share-based payments are accounted for and presented in the financial statements. ASU 2016-09 was effective for public companies for annual reporting periods beginning after December 15, 2016. Upon adoption of this ASU as of January 1, 2017, unrecognized excess tax benefits of approximately $(0.2) million were recognized with the impact recorded to retained earnings including a corresponding change to the valuation allowance. The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduced the U.S. federal corporate tax rate from 35% to 21% beginning in 2018. The Company applied the guidance in SAB 118 when accounting for the enactment-date effects of the Act in 2017 and throughout 2018. As of December 31, 2017, the Company remeasured certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future (which is generally 21%), by recording a provisional amount of $34.4 million, which was fully offset by the valuation allowance. Upon further analysis of certain aspects of the Act and refinement of our calculations during the twelve months ended December 31, 2018, the Company determined that no adjustment was necessary to the provisional amount. The Company recognizes liabilities for uncertain tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. While the Company believes that it has appropriate support for the positions taken on its tax returns, the Company regularly assesses the potential outcome of examinations by tax authorities in determining the adequacy of its provision for income taxes. The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):
As of December 31, 2018 and 2017, the Company had gross unrecognized tax benefits of $19.5 million and $17.8 million, respectively, none of which would affect the effective tax rate. The Company does not anticipate any significant decreases in its unrecognized tax benefits over the next 12 months. The Company’s policy is to recognize the interest expense and/or penalties related to income tax matters as a component of income tax expense. The Company had no accrual for interest or penalties on its balance sheets at December 31, 2018 or December 31, 2017, and has not recognized interest and/or penalties in its statements of operations for any of the years ended December 31, 2018, 2017 or 2016. The Company is subject to taxation in the United States and state jurisdictions where applicable. The Company’s tax years for 1998 and forward are subject to examination by the United States and California tax authorities due to the carryforward of unutilized net operating losses and R&D credits.
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Employee Benefit Plan |
12 Months Ended |
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Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan |
14. Employee Benefit Plan The Company has a defined contribution savings plan under section 401(k) of the IRC. The plan covers substantially all employees. The Company matches employee contributions made to the plan according to a specified formula. The Company’s matching contributions totaled approximately $0.1 million, $0.2 million and $0.1 million for the years ended December 31, 2018, 2017 and 2016, respectively.
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Summary of (Unaudited) Quarterly Financial Information |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of (Unaudited) Quarterly Financial Information |
15. Summary of (Unaudited) Quarterly Financial Information The following is a summary of the Company’s (unaudited) quarterly results of operations for the years ended December 31 (in thousands, except per share amounts):
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Subsequent Event |
12 Months Ended |
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Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event |
16. Subsequent Event
In February 2019, the Company decided to discontinue the Phase 2 clinical trial of VL-2397. As a result, the Company will be restructuring its operations to conserve capital, which will include a staff reduction and may include a write-off of certain assets. The Company will record these restructuring charges during the three months ended March 31, 2019.
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Organization and Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Business Activity |
Organization and Business Activity Vical Incorporated, or the Company, a Delaware corporation, was incorporated in April 1987 and has devoted substantially all of its resources since that time to its research and development programs. The Company researches and develops biopharmaceutical products, including those based on its patented DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases. All of the Company’s potential products are in research and development phases. No revenues have been generated from the sale of any such products, nor are any such revenues expected for at least the next several years. The Company earns revenue from research and development agreements with pharmaceutical collaborators and from contract manufacturing agreements. Most of the Company’s product candidates will require significant additional research and development efforts, including extensive preclinical and clinical testing. All product candidates that advance to clinical testing will require regulatory approval prior to commercial use, and will require significant costs for commercialization. There can be no assurance that the Company’s research and development efforts, or those of its collaborators, will be successful. The Company expects to continue to incur substantial losses and not generate positive cash flows from operations for at least the next several years. No assurance can be given that the Company can generate sufficient product revenue to become profitable or generate positive cash flows from operations. |
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Basis of Presentation |
Basis of Presentation These financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. |
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Use of Estimates |
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make informed estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes. Actual results could differ materially from those estimates. |
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Cash, Cash Equivalents and Marketable Securities |
Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash and highly liquid securities with original maturities at the date of acquisition of ninety days or less and can be liquidated without prior notice or penalty. Investments with an original maturity of more than ninety days are considered marketable securities and have been classified by management as available-for-sale. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date which reflects management’s intention to use the proceeds from sales of these securities to fund its operations, as necessary. Such investments are carried at fair value, with unrealized gains and losses included as a separate component of stockholders’ equity. Realized gains and losses from the sale of available-for-sale securities or the amounts, net of tax, reclassified out of accumulated other comprehensive income (loss), if any, are determined on a specific identification basis. |
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Restricted Cash |
Restricted Cash The Company was required to maintain a letter of credit securing an amount equal to twelve months of the then current monthly installment of base rent for the original term of the lease for its facilities, which ended on August 31, 2017. In July 2016, the term of the lease was extended for 16 months through December 2018. During the extended term, the Company was required to maintain a letter of credit securing an amount equal to $0.2 million. At December 31, 2017, restricted cash of $0.2 million was pledged as collateral for the letter of credit. The letter of credit expired on December 31, 2018 and, therefore, no cash was pledged as collateral as of that date. |
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Concentrations of Credit Risk |
Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents, marketable securities and receivables. The Company invests its excess cash in debt instruments of financial institutions and of corporations with above average credit ratings, in U.S. government obligations, and in money market funds and certificates of deposits at financial institutions. |
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Property and Equipment |
Property and Equipment Property and equipment is recorded at cost and depreciation is computed using the straight-line method over the estimated useful lives of the assets. Assets acquired pursuant to capital lease arrangements and leasehold improvements are amortized using the straight-line method over the shorter of the life of the remaining lease term or the remaining useful life of the asset. Manufacturing equipment has estimated useful lives of 5 to 10 years. All other property and equipment have estimated useful lives of 3 to 5 years. Maintenance and repairs of property and equipment are expensed as incurred. |
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Intangible Assets |
Intangible Assets Intangible assets include certain costs related to patent applications. The Company capitalizes license fees paid to acquire access to proprietary technology if the technology is expected to have alternative future use in multiple research and development projects. The cost of licensed technology rights is amortized using the straight-line method over the estimated useful life of the technology. Certain costs related to patent applications are amortized over the estimated economic lives of the patents, which is generally 20 years and typically commences at the time the patent application is filed. As of December 31, 2018, the Company had no capitalized patent costs. Amortization expense for licensed technology and capitalized patent cost is included in research and development expenses. |
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Impairment of Long-lived Assets |
Impairment of Long-lived Assets The Company reviews long-lived assets for impairment at least annually, quarterly for intangible assets, and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Should an impairment exist, the impairment loss would be measured based on the excess of the carrying amount of the asset over the asset’s estimated fair value and the loss recognized in current earnings. The Company recognized research and development expense of approximately $0.7 million, $0.0 million and $0.4 million for the years ended December 31, 2018, 2017 and 2016, respectively, related to patents for which the value was deemed to be impaired. |
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Revenue Recognition |
Revenue Recognition The Company recognizes revenue when control of its products and services is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products and services. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. |
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Research and Development Costs |
Research and Development Costs Research and development costs are expensed as incurred. Research and development costs include salaries and personnel-related costs, supplies and materials, outside services, costs of conducting preclinical and clinical trials, facilities costs and amortization of intangible assets. The Company accounts for its clinical trial costs by estimating the total cost to treat a patient in each clinical trial, and accruing this total cost for the patient over the estimated treatment period, which corresponds with the period over which the services are performed, beginning when the patient enrolls in the clinical trial. This estimated cost includes payments to the site conducting the trial, and patient-related lab and other costs related to the conduct of the trial. Cost per patient varies based on the type of clinical trial, the site of the clinical trial, the method of administration of the treatment, and the number of treatments that a patient receives. Treatment periods vary depending on the clinical trial. The Company makes revisions to the clinical trial cost estimates in the current period, as clinical trials progress. |
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Manufacturing and Production Costs |
Manufacturing and Production Costs Manufacturing and production costs include expenses related to manufacturing contracts and expenses for the production of plasmid DNA for use in the Company’s research and development efforts. Manufacturing expenses related to manufacturing contracts are deferred and expensed when the related revenue is recognized. Deferred contract costs at December 31, 2018 and 2017 were $0.0 million and $10.5 million, respectively. Production expenses related to the Company’s research and development efforts are expensed as incurred. |
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Net Loss Per Share |
Net Loss Per Share Basic and diluted net loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares used to compute diluted loss per share excludes any assumed exercise of stock options, and the assumed issuance of common stock under RSUs, as the effect would be antidilutive. Common stock equivalents of 7.2 million, 1.8 million and 7,350 for the years ended December 31, 2018, 2017 and 2016, respectively, were excluded from the calculation because of their antidilutive effect. |
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Fair Value of Financial Instruments |
Fair Value of Financial Instruments The carrying amounts of cash, cash equivalents, restricted cash, marketable securities, receivables, accounts payable and accrued expenses at December 31, 2018 and 2017, are considered to approximate fair value because of the short term nature of those items. |
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Income Taxes |
Income Taxes The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. There were no unrecognized tax benefits recorded by the Company as of the date of adoption in 2007. There are no unrecognized tax benefits included in the balance sheets that would, if recognized, affect the effective tax rate. Deferred income taxes result primarily from temporary differences between financial and tax reporting. Deferred tax assets and liabilities are determined based on the difference between the financial statement bases and the tax bases of assets and liabilities using enacted tax rates. A valuation allowance is established to reduce a deferred tax asset to the amount that is expected more likely than not to be realized. The Tax Cuts and Jobs Act (“the Act”) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21%. Pursuant to the Securities and Exchange Commission Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), we have finalized the accounting for the income tax effects of the Tax Legislation and believe the disclosures made in the financial statements as of December 31, 2017 are still accurate. |
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Comprehensive Loss |
Comprehensive Loss Comprehensive loss consists of net loss and certain changes in equity that are excluded from net loss. Comprehensive loss for the years ended December 31, 2018, 2017 and 2016, has been reflected in the accompanying Statements of Comprehensive Loss. Accumulated other comprehensive income (loss), which is included in stockholders’ equity, represents unrealized gains and losses on marketable securities. |
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Business Segments |
Business Segments The Company operates in one business segment, which is within the United States, and is dedicated to research and development of biopharmaceutical products. |
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Stock-Based Compensation |
Stock-Based Compensation The Company records its compensation expense associated with stock options and other forms of equity compensation based on their fair value at the date of grant using the Black-Scholes-Merton option pricing model. Stock-based compensation expense includes amortization related to stock option awards based on the estimated grant date fair value. The compensation expense related to stock options is recognized ratably over the vesting period of the options. In addition, the Company records expense related to RSUs granted based on the fair value of those awards on the grant date. The fair value related to the RSUs is amortized to expense over the vesting term of those awards. Stock-based compensation expense related to stock options and RSUs for the year ended December 31, 2016 includes an estimate of 8.75% for forfeitures. Effective January 1, 2017, the Company adopted ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” which allowed the Company to change its methodology for recording forfeitures from estimated forfeitures to actual forfeitures and recorded an adjustment to beginning retained earnings of $0.1 million. The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton valuation model using the assumptions noted in the following table. The expected life of options is based on the Company’s observed historical exercise patterns. The expected volatility of stock options is based upon the historical volatility of the Company’s stock commensurate with the expected life of the option. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the option. The dividend yield reflects that the Company has not paid any cash dividends since inception and does not intend to pay any cash dividends in the foreseeable future.
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Recent Accounting Pronouncements |
Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The Company adopted the new standard effective January 1, 2018 using the modified retrospective method applied to contracts not completed as of December 31, 2017. As it relates to process validation lots and stock piling lots completed but not delivered as of December 31, 2017 at the request of a customer, the Company concluded that, under ASC 606, the criteria for transfer of control were met prior to January 1, 2018 and as a result, the Company recorded an adjustment as of January 1, 2018 to recognize previously deferred revenue of $11.4 million and previously deferred contract costs of $10.5 million, with an adjustment to retained earnings of $0.9 million. There was no tax impact, as the effect of the implementation for tax purposes was offset by the valuation allowance. The impact of adoption on the Company’s income statement and balance sheet as of December 31, 2018 and for the 12 months then ended was as follows (in thousands):
In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The new standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months and will require both lessees and lessors to disclose certain key information about lease transactions. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company will adopt the new standard in the first quarter of 2019. While the Company is continuing to assess the potential impacts of the new standard, the Company estimates that the adoption of ASU No. 2016-02 will have no significant impact on its financial statements. |
Organization and Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used to Estimate the Fair Value of Each Option Award | The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton valuation model using the assumptions noted in the following table.
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Summary of Impact of Adoption of New Accounting Standard on Income Statement and Balance Sheet | The impact of adoption on the Company’s income statement and balance sheet as of December 31, 2018 and for the 12 months then ended was as follows (in thousands)
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Short-Term Marketable Securities (Tables) |
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Investments Debt And Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Short-Term Marketable Securities |
The following is a summary of short-term marketable securities classified as available-for-sale (in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Cash Equivalents, Marketable Securities and Long-Term Investments Measured at Fair Value |
Cash equivalents, marketable securities and long-term investments measured at fair value are classified in the table below in one of the three categories described above (in thousands):
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Summary of Activity for Assets Measured at Fair Value Using Significant Unobservable Inputs |
Activity for assets measured at fair value using significant unobservable inputs (Level 3) is presented in the table below (in thousands):
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Other Balance Sheet Accounts (Tables) |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Property and Equipment |
Property and equipment consisted of the following at December 31 (in thousands):
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Summary of Intangible Assets |
Intangible assets consisted of the following at December 31 (in thousands):
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Summary of Accounts Payable and Accrued Expenses |
Accounts payable and accrued expenses consisted of the following at December 31 (in thousands):
|
Stock Based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Total Stock-Based Compensation Expense | Total stock-based compensation expense was allocated to research and development, manufacturing and production and general and administrative expense as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Transactions under Company's Stock Incentive Plans |
The following table summarizes stock option transactions under the Company’s stock incentive plans for the years ended December 31, 2018, 2017 and 2016:
|
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Summary of Outstanding RSUs |
A summary of the outstanding RSUs as of December 31, 2018, and changes during the year then ended is presented below:
|
Restructuring Costs (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring And Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Components of Restructuring Charges | The following table summarizes the components of the restructuring charges (in thousands):
|
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Schedule of Accrual Activity for Employee Termination Benefits |
The following table sets forth the accrual activity for employee termination benefits for the 12 months ended December 31, 2018 (in thousands). No additional charges are expected to be incurred.
|
Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Deferred Tax Assets |
Amounts for the years ended December 31 were as follows (in thousands):
|
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Reconciliation Between Provision for Income Taxes and Income Taxes |
The reconciliation between the provision for income taxes and income taxes computed using the U.S. federal statutory corporate tax rate were as follows for the years ended December 31 (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Expected Expiry of Net Operating Losses and Tax Credits | Based upon statute, federal and state losses and credits are expected to expire as follows (in millions):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity Related to Unrecognized Tax Benefits |
The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands):
|
Summary of (Unaudited) Quarterly Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Company's (Unaudited) Quarterly Results of Operations |
The following is a summary of the Company’s (unaudited) quarterly results of operations for the years ended December 31 (in thousands, except per share amounts):
|
Organization and Summary of Significant Accounting Policies - Summary of Fair Value of Share-Based Compensation, Stock Options (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Assumed risk-free interest rate | 2.34% | 1.86% | 1.44% |
Assumed volatility | 60.00% | 72.00% | 72.00% |
Average expected option life | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Organization and Summary of Significant Accounting Policies - Summary of Impact of Adoption of New Accounting Standard on Income Statement and Balance Sheet (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Jan. 01, 2018 |
|
Revenues: | ||||||||||||
Contract revenue | $ 1,582 | $ 13,401 | $ 12,804 | |||||||||
Operating expenses: | ||||||||||||
Manufacturing and production | 1,436 | 6,479 | 6,291 | |||||||||
Net loss | $ (3,605) | $ (1,511) | $ (4,868) | $ (6,270) | $ (3,728) | $ (3,088) | $ (3,320) | $ (2,824) | (16,254) | (12,960) | $ (8,973) | |
Assets | ||||||||||||
Deferred contract costs | 0 | 10,502 | 0 | 10,502 | ||||||||
Liabilities | ||||||||||||
Deferred revenue | 30 | 11,700 | 30 | 11,700 | ||||||||
Equity | ||||||||||||
Accumulated deficit | (442,064) | $ (426,738) | (442,064) | $ (426,738) | ||||||||
ASU No. 2014-09 [Member] | ||||||||||||
Assets | ||||||||||||
Deferred contract costs | $ 10,500 | |||||||||||
Liabilities | ||||||||||||
Deferred revenue | $ 11,400 | |||||||||||
ASU No. 2014-09 [Member] | Balances Without Adoption of ASC 606 [Member] | ||||||||||||
Revenues: | ||||||||||||
Contract revenue | 13,012 | |||||||||||
Operating expenses: | ||||||||||||
Manufacturing and production | 11,938 | |||||||||||
Net loss | (15,326) | |||||||||||
Assets | ||||||||||||
Deferred contract costs | 0 | 0 | ||||||||||
Liabilities | ||||||||||||
Deferred revenue | 30 | 30 | ||||||||||
Equity | ||||||||||||
Accumulated deficit | (442,064) | (442,064) | ||||||||||
ASU No. 2014-09 [Member] | Effect of Change Increase/(Decrease) [Member] | ||||||||||||
Revenues: | ||||||||||||
Contract revenue | (11,430) | |||||||||||
Operating expenses: | ||||||||||||
Manufacturing and production | (10,502) | |||||||||||
Net loss | 928 | |||||||||||
Assets | ||||||||||||
Deferred contract costs | 0 | 0 | ||||||||||
Liabilities | ||||||||||||
Deferred revenue | 0 | 0 | ||||||||||
Equity | ||||||||||||
Accumulated deficit | $ 0 | $ 0 |
Short-Term Marketable Securities - Summary of Short-Term Marketable Securities (Detail) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 36,219 | $ 35,687 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 18 | 29 |
Market Value | 36,201 | 35,658 |
U.S. treasuries [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 36,219 | 34,462 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 18 | 29 |
Market Value | $ 36,201 | 34,433 |
Certificates of deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,225 | |
Unrealized Gain | 0 | |
Unrealized Loss | 0 | |
Market Value | $ 1,225 |
Short-Term Marketable Securities - Additional Information (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Investments Debt And Equity Securities [Abstract] | |||
Available-for-sale securities maturing outside of one year | $ 0 | ||
Net realized gains (losses) on sales of available-for-sale securities | 0 | $ 0 | $ 0 |
Available-for-sale securities in a continuous unrealized loss position more than 12 months | $ 0 | $ 0 |
Long-Term Investments - Additional Information (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Investment [Line Items] | |||
Auction rate securities held, at par value | $ 2,500,000 | ||
Maturity of long-term investment | 2038 | ||
Recognized cumulative losses | $ 400,000 | ||
Unrealized gains (losses) on auction rate securities | 139,000 | $ 108,000 | $ (6,000) |
Cumulative unrealized gains | 600,000 | ||
Carrying value of auction rate security | $ 2,386,000 | $ 2,209,000 | |
Assumed interest rate | 6.71% | ||
Estimated redemption period | 5 years | ||
Recognized cumulative losses realized | $ 0 | ||
Discount Rate [Member] | |||
Investment [Line Items] | |||
Fair value input discount rate | 1.0 |
Fair Value Measurements - Summary of Activity for Assets Measured at Fair Value Using Significant Unobservable Inputs (Detail) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Fair Value Disclosures [Abstract] | |
Balance at December 31, 2017 | $ 2,209 |
Total net realized gains included in earnings | 0 |
Total net unrealized gains included in other comprehensive income | 177 |
Net transfers in and/out of Level 3 | 0 |
Balance at December 31, 2018 | 2,386 |
Amount of total losses for the period included in net loss attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2018 | $ 0 |
Fair Value Measurements - Additional Information (Detail) - Level 3 [Member] - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Total cumulative unrealized losses related to Level3 assets | $ 100,000 | ||
Unrealized losses | $ 0 | $ 0 | $ 0 |
Other Balance Sheet Accounts - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total of property and equipment | $ 3,270 | $ 25,052 |
Less accumulated depreciation and amortization | (3,170) | (24,446) |
Property and equipment, net | 100 | 606 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total of property and equipment | 3,270 | 16,908 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total of property and equipment | $ 0 | $ 8,144 |
Other Balance Sheet Accounts - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation and amortization of equipment and leasehold improvements | $ 0.1 | $ 0.6 | $ 0.9 |
Amortization of licensed technology rights and patent application costs | $ 0.1 | $ 0.1 | $ 0.1 |
Other Balance Sheet Accounts - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Net total of intangible assets | $ 0 | $ 703 |
Patent application costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total of summary of intangible assets | 0 | 1,500 |
Accumulated amortization | $ 0 | $ (797) |
Other Balance Sheet Accounts - Summary of Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Payables And Accruals [Abstract] | ||
Employee compensation | $ 1,768 | $ 2,654 |
Clinical trial accruals | 1,000 | 1,017 |
Accounts payable | 412 | 1,213 |
Other accrued liabilities | 371 | 333 |
Total accounts payable and accrued expenses | $ 3,551 | $ 5,217 |
Stock Based Compensation - Summary of Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 361 | $ 756 | $ 990 |
Cash received from RSU grants | 1 | ||
Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 154 | 239 | 290 |
Manufacturing and production [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | (67) | 124 | 111 |
General and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 274 | $ 393 | $ 589 |
Stock Based Compensation - Summary of Stock Option Transactions under Company's Stock Incentive Plans (Detail) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Shares Outstanding, Beginning Balance | 1,724,671 | 1,202,801 | 945,584 |
Shares, Granted | 547,701 | 590,200 | 339,975 |
Shares, Exercised | 0 | 0 | 0 |
Shares, Forfeited | (376,816) | (68,330) | (82,758) |
Shares Outstanding, Ending Balance | 1,895,556 | 1,724,671 | 1,202,801 |
Shares Vested and unvested options expected to vest as of December 31, 2018 | 1,895,556 | ||
Weighted Average Exercise Price, Beginning Balance | $ 12.19 | $ 17.61 | $ 23.27 |
Weighted Average Exercise Price, Granted | 1.77 | 2.30 | 3.51 |
Weighted Average Exercise Price, Exercised | 0 | 0 | 0 |
Weighted Average Exercise Price, Forfeited | 10.00 | 22.17 | 24.37 |
Weighted Average Exercise Price, Ending Balance | 9.61 | $ 12.19 | $ 17.61 |
Weighted Average Exercise Price, Vested and unvested options expected to vest as of December 31, 2018 | $ 9.61 |
Stock Based Compensation - Summary of Outstanding RSUs (Detail) - Restricted stock units (RSUs) [Member] - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares Unvested, Beginning Balance | 21,204 | ||
Shares, Granted | 0 | 0 | 0 |
Shares, Vested | (16,187) | ||
Shares, Cancelled | (942) | ||
Shares Unvested, Ending Balance | 4,075 | 21,204 | |
Weighted Average Grant-Date Fair Value per Share, Unvested, Beginning Balance | $ 10.43 | ||
Weighted Average Grant-Date Fair Value per Share, Granted | 0 | ||
Weighted Average Grant-Date Fair Value per Share, Vested | 5.96 | ||
Weighted Average Grant-Date Fair Value per Share, Cancelled | 10.30 | ||
Weighted Average Grant-Date Fair Value per Share, Unvested, Ending Balance | $ 10.20 | $ 10.43 |
Related Party Transaction - Additional Information (Detail) - Research Collaboration Agreement [Member] - AnGes MG, Inc [Member] - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Apr. 04, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2018 |
|
Related Party Transaction [Line Items] | ||||
Percentage of common stock outstanding | 18.60% | |||
Non- refundable amount receivable under research collaboration agreement | $ 750,000 | $ 145,000 | ||
Contract revenue | $ 400,000 | $ 500,000 |
Restructuring Costs - Additional Information (Detail) $ in Thousands |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2018
Employee
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Restructuring Cost And Reserve [Line Items] | ||||
Number of staff reduced | Employee | 40 | |||
One-time employee termination benefits | $ 1,100 | |||
Overhead costs associated with manufacturing facility | 1,436 | $ 6,479 | $ 6,291 | |
Intangible asset impairment charges | 267 | |||
General and administrative [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Overhead costs associated with manufacturing facility | $ 1,200 |
Restructuring Costs - Summary of Components of Restructuring Charges (Detail) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Restructuring Cost And Reserve [Line Items] | |
Employee Termination Benefits | $ 1,124 |
Asset Impairments | 267 |
Total | 1,391 |
Research and development [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Employee Termination Benefits | 272 |
Asset Impairments | 267 |
Total | 539 |
Manufacturing and production [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Employee Termination Benefits | 735 |
Total | 735 |
General and administrative [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Employee Termination Benefits | 117 |
Total | $ 117 |
Restructuring Costs - Schedule of Accrual Activity for Employee Termination Benefits (Detail) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Restructuring And Related Activities [Abstract] | |
Balance at December 31, 2017 | $ 0 |
Accruals | 1,124 |
Payments | (1,124) |
Balance at December 31, 2018 | $ 0 |
Income Taxes - Summary of Deferred Tax Assets (Detail) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Net operating losses | $ 63,933 | $ 59,756 |
Credit carryovers | 11,304 | 10,527 |
Depreciation and amortization | 10,635 | 10,893 |
Deferred revenue | 0 | 634 |
Accruals and reserves | 275 | 450 |
Other | 1,242 | 1,350 |
Total deferred tax assets | 87,389 | 83,610 |
Less valuation allowance | (87,389) | (83,610) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Reconciliation Between Provision for Income Taxes and Income Taxes (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Computed “expected” tax benefit | $ (3,421) | $ (4,425) | $ (3,051) |
State income taxes, net of federal benefit | (676) | (268) | (534) |
Tax effect of: | |||
Change in valuation allowance | 2,632 | (31,665) | (6,030) |
Impact of Tax Cuts and Jobs Act | 0 | 34,439 | 0 |
Rate change | 0 | 0 | 0 |
Expiration of prior year credits and net operating losses | 1,386 | 1,256 | 692 |
Research and development and other tax credit carryovers | (1,320) | 0 | 0 |
Stock compensation | 121 | 458 | 491 |
Uncertain tax positions | 1,357 | 276 | 9,010 |
Other | (79) | (71) | (578) |
Provision for income taxes | $ 0 | $ 0 | $ 0 |
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 17,836 | $ 17,561 | $ 4,340 |
Increases (decreases) related to prior year tax positions | 48 | (140) | 12,348 |
Increases related to current year tax positions | 1,616 | 415 | 873 |
Ending balance | $ 19,500 | $ 17,836 | $ 17,561 |
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Compensation And Retirement Disclosure [Abstract] | |||
Company's contributions towards employee benefit plan | $ 0.1 | $ 0.2 | $ 0.1 |
Summary of (Unaudited) Quarterly Financial Information - Summary of Company's (Unaudited) Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 124 | $ 47 | $ 735 | $ 716 | $ 3,953 | $ 3,240 | $ 3,421 | $ 3,205 | $ 1,622 | $ 13,819 | $ 14,531 |
Total operating expenses | 4,075 | 4,113 | 5,863 | 7,217 | 7,834 | 6,421 | 6,832 | 6,118 | 21,268 | 27,205 | 23,708 |
Net income (loss) | $ (3,605) | $ (1,511) | $ (4,868) | $ (6,270) | $ (3,728) | $ (3,088) | $ (3,320) | $ (2,824) | $ (16,254) | $ (12,960) | $ (8,973) |
Basic and diluted net loss per share | $ (0.17) | $ (0.07) | $ (0.22) | $ (0.29) | $ (0.21) | $ (0.27) | $ (0.30) | $ (0.25) | $ (0.74) | $ (1.01) | $ (0.90) |