0000950170-21-003477 | 10-Q | XBRL Viewer

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Equity Incentive Plans and Stock-Based Compensation - Summary of Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options outstanding, Beginning Balance \| shares	3,996,174
Options, Granted \| shares	1,534,842
Options, Exercised \| shares	(61,768)
Options, Forfeited and cancelled \| shares	(209,302)
Options outstanding, Ending Balance \| shares	5,259,946	3,996,174
Options, Exercisable \| shares	2,149,552
Weighted Average Exercise Price, Options outstanding Beginning Balance \| $ / shares	$ 9.03
Weighted Average Exercise Price, Granted \| $ / shares	27.42
Weighted Average Exercise Price, Exercised \| $ / shares	2.86
Weighted Average Exercise Price, Forfeited and Cancelled \| $ / shares	21.20
Weighted Average Exercise Price, Options outstanding Ending Balance \| $ / shares	13.99	$ 9.03
Weighted Average Exercise Price, Exercisable \| $ / shares	$ 6.34
Weighted Average Remaining Contractual Term (in years), Options outstanding	8 years 2 months 12 days	8 years 6 months
Weighted Average Remaining Contractual Term (in years), Exercisable	7 years 3 months 18 days
Aggregate Intrinsic Value, Options outstanding \| $	$ 47,735	$ 99,107
Aggregate Intrinsic Value, Exercisable \| $	$ 31,542

Equity Incentive Plans and Stock-Based Compensation - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($) shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation expense related to outstanding unvested stock-based awards \| $	$ 38.6
Total unrecognized compensation expense related to outstanding unvested stock-based awards expected to be recognized over weighted-average remaining service period	2 years 7 months 20 days
2020 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares available for future issuance \| shares	1,938,448

Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 6,703	$ 6,466
Less accumulated depreciation	(4,878)	(4,485)
Total property and equipment, net	1,825	1,981
Lab Equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	4,641	4,396
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,710	1,710
Computer Hardware and Software
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	212	220
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 140	$ 140

BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 241,126	$ 78,446
Short-term investments, available-for-sale	48,393	215,154
Prepaid expenses and other current assets	3,330	3,097
Total current assets	292,849	296,697
Investments, available-for-sale	6,956
Property and equipment, net	1,825	1,981
Other assets	12,550	319
Total assets	314,180	298,997
Current liabilities:
Accounts payable	419	757
Accrued liabilities	11,484	8,245
Total current liabilities	11,903	9,002
Other long-term liabilities	10,741	219
Total liabilities	22,644	9,221
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock, $0.0001 par value; 200,000,000 shares authorized; no shares issued and outstanding at September 30, 2021 and December 31, 2020
Common stock, $0.0001 par value; 1,000,000,000 shares authorized; 39,331,585 and 36,672,415 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	4	4
Additional paid-in capital	513,871	456,196
Accumulated deficit	(222,337)	(166,393)
Accumulated other comprehensive loss	(2)	(31)
Total stockholders' equity	291,536	289,776
Total liabilities and stockholders' equity	$ 314,180	$ 298,997

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions of the Securities and Exchange Commission (SEC) on Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in

annual financial statements prepared in accordance with GAAP, have been omitted. The accompanying unaudited financial statements include all known adjustments necessary for a fair presentation of the results as required by GAAP. These adjustments consist primarily of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Operating results for the interim period are not necessarily indicative of future results.

In March 2020, the World Health Organization declared the novel coronavirus disease, or COVID-19, outbreak a global pandemic. To limit the spread of COVID-19, governments have taken various actions including the issuance of stay-at-home orders and physical distancing guidelines. Accordingly, businesses have adjusted, reduced or suspended operating activities. A portion of the Company’s workforce continues to work from home. Disruptions caused by the COVID-19 pandemic, including the effects of the stay-at-home orders and work-from-home policies, have impacted productivity, have resulted in increased operational expenses, certain adjustments to the operations of the Company’s clinical trials, the temporary suspension of enrollment of new patients at certain of the Company’s clinical trial sites, and delays in certain supply chain activities and collecting and analyzing data from patients in the Company’s clinical trials, and may further disrupt the business and delay the development programs and regulatory timelines, the magnitude of which will depend, in part, on the length and severity of the restrictions and other limitations on the Company’s ability to conduct business in the ordinary course. As a result, research and development expenses and general and administrative expenses may vary significantly if there is an increased impact from COVID-19 on the costs and timing associated with the conduct of the clinical trials and other related business activities.

The accompanying unaudited financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2020, which are included in the Company’s Annual Report on Form 10-K filed with the SEC. Furthermore, the Company’s significant accounting policies are disclosed in the audited financial statements for the periods ended December 31, 2020 and 2019, included in the Company’s Annual Report on Form 10-K. Since the date of those financial statements, there have been no changes to its significant accounting policies, except as noted below.

Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments with maturities of 90 days or less at the time of purchase that are readily convertible into cash as cash equivalents. These investments may include money market funds, securities issued by U.S. Government agencies, corporate debt securities and commercial paper.

Cash that is restricted and not available for general operations is considered restricted cash. The Company's restricted cash is in connection to property leases and restrictions will be removed at the respective lease expiration.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the balance sheet to the total of the amount presented in the statement of cash flows, in thousands:


	Nine Months Ended September 30,
	2021		2020
Cash and cash equivalents	$	241,126	$	62,031
Restricted cash included in other assets		468		—
Total cash, cash equivalents and restricted cash presented in the statement of cash flows	$	241,594	$	62,031

Recently Adopted Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) under its accounting standards codification (ASC) or other standard setting bodies and adopted by the Company as of the specified effective date, unless otherwise discussed below.

In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether the lease is effectively a financed purchase by the lessee. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. ASC 842 provides a lessee with an option to not account for leases with a term of 12 months or less as leases in the scope of the new standard. ASC 842 supersedes the previous leases standard, ASC 840 Leases. ASC 842 requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. In July 2018, the FASB issued supplemental adoption guidance and clarification to ASC 842 within ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. ASU No. 2018-11 provides another transition method in addition to the existing modified retrospective transition method by allowing entities to initially apply the new leasing standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of accumulated deficit in the period of adoption. On January 1, 2021, the Company early adopted ASC 842 using the modified retrospective approach. Accordingly, prior period financial information and disclosures have not been adjusted and continue to be reported in accordance with the Company’s historical accounting under the previous lease standard. In addition, the Company elected the package of practical

expedients available for existing contracts, which allowed it to carry forward historical assessments of lease identification, lease classification, and initial direct costs. As a result of adopting ASC 842, the Company recognized right-of-use assets and lease liabilities of $1.7 million and $2.5 million, respectively, on January 1, 2021, which are related to our facility operating leases (Note 9). The difference between the right-of-use assets and lease liabilities is primarily attributed to the elimination of deferred rent and unamortized lease incentives. There was no adjustment to the opening balance of accumulated deficit as a result of the adoption of ASC 842.

The Company determines if an arrangement is or contains a lease at inception. The Company’s operating leases with an initial term greater than one year are accounted for with operating lease right-of-use assets, operating lease liabilities and operating lease liabilities, less current portion, which are included in other assets, accrued liabilities and other long-term liabilities, respectively, on the balance sheet as of September 30, 2021. Right-of-use assets represent the right to use an underlying asset during the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date, based on the present value of lease payments over the lease term. In determining the net present value of lease payments, the Company uses its incremental borrowing rate which represents an estimated rate of interest that the Company would have to pay to borrow equivalent funds on a collateralized basis at the lease commencement date.

The Company’s operating leases may include options to extend the lease which are included in the lease term when it is reasonably certain that we will exercise a renewal option. Operating lease expense is recognized on a straight-line basis over the expected lease term.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) (ASC 326): Measurement of Credit Losses on Financial Instruments, which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The guidance is effective for public business entities for annual periods beginning after December 15, 2019, including interim periods within those years. For all other entities, the standard is effective for annual periods beginning after December 15, 2022 and interim periods, therein. Early adoption is permitted. The Company early adopted the new standard in the first quarter of 2021, using the modified retrospective approach. The adoption did not have a material impact on its financial statements.

In accordance with ASU 2016-13, the Company will no longer evaluate whether its available-for-sale investments in an unrealized loss position are other than temporarily impaired. Instead, the Company will assess whether such unrealized loss positions are credit-related. The credit-related portion of unrealized losses, and any subsequent improvements, are recorded in interest income through an allowance account. Unrealized gains and losses that are not credit-related are included in accumulated other comprehensive income (loss).

Equity Incentive Plans and Stock-Based Compensation - Summary of Fair Value of Stock Options Estimated Using Black-Scholes Merton Option Pricing Model Assumptions (Details) - Stock Option - $ / shares	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate, minimum	0.60%	3.17%
Risk-free interest rate, maximum	1.15%	4.45%
Expected volatility, minimum	82.88%	88.01%
Expected volatility, maximum	88.43%	95.11%
Expected dividend yield	0.00%	0.00%
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock price	$ 16.61	$ 16.00
Expected term (in years)	5 years 6 months	5 years 6 months
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock price	$ 35.67	$ 35.92
Expected term (in years)	6 years 29 days	6 years 29 days

License Agreements

9 Months Ended

Sep. 30, 2021

License Agreements [Abstract]

License Agreements

3. License Agreements

Mirati License Agreement

On August 3, 2020, the Company entered into a license agreement (Mirati License Agreement) with Mirati Therapeutics, Inc (Mirati). Under the Mirati License Agreement, Mirati granted the Company a worldwide, exclusive, sublicensable, royalty-free license under Mirati’s rights to certain patents and patent applications directed to certain small molecule compounds that bind to and inhibit PRC2 and certain related know-how, in each case, to develop and commercialize certain licensed compounds and licensed products incorporating any such compounds. Under the Mirati License Agreement, the Company is wholly responsible for development and commercialization of licensed products. In addition, the Company is obligated to use commercially reasonable efforts to develop and commercialize at least one licensed product in certain major markets.

The Company’s financial obligation under the Mirati License Agreement was comprised of an upfront payment of 588,235 shares of ORIC common stock, valued at approximately $13.0 million based upon the closing price of the Company’s common stock on the acquisition date. The number of shares issued was based on a price of $34.00 per share, representing a premium of 10% to the 60-day trailing volume-weighted average trading price of the Company’s common stock. The shares were issued in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended, for transactions by an issuer not involving any public offering. During the eighteen-month period following the date of the agreement, Mirati is subject to certain transfer restrictions, and the parties agreed to negotiate and enter into a registration rights agreement, with respect to the shares. The Company is not obligated to pay Mirati milestones or royalties.

Unless earlier terminated, the Mirati License Agreement will continue in effect on a country-by-country and licensed product-by-licensed product basis until the later of (a) the expiration of the last valid claim of a licensed patent covering such licensed product in such country or (b) ten years after the first commercial sale of such licensed product in such country. Following the

expiration of the Mirati License Agreement, the Company will retain its licenses under the intellectual property Mirati licensed to it on a royalty-free basis. ORIC and Mirati may each terminate the Mirati License Agreement if the other party materially breaches the terms of such agreement, subject to specified notice and cure provisions, or enters into bankruptcy or insolvency proceedings. Mirati may terminate the agreement if the Company challenges any of the patent rights licensed to the Company by Mirati or it discontinues development of licensed products for a specified period of time. The Company also has the right to terminate the Mirati License Agreement without cause by providing prior notice to Mirati.

The Company recorded the transaction as an asset purchase as management concluded that all of the value received was related to a single identifiable asset. Further, as the asset was in early development at the time the license was acquired, the Company concluded that there was no alternative future use for the asset and recorded a charge to acquired in-process research and development at the closing of the transaction in August 2020 for the full $13.0 million value assigned to the shares issued in connection with Mirati License Agreement.

Voronoi License Agreement

On October 19, 2020, the Company entered into a license and collaboration agreement (Voronoi License Agreement) with Voronoi Inc. (Voronoi). The Voronoi License Agreement gives the Company access to Voronoi’s preclinical stage EGFR and HER2 exon 20 insertion mutation program, including a lead product candidate now designated as ORIC-114. Under the Voronoi License Agreement, Voronoi granted the Company an exclusive, sublicensable license under Voronoi’s rights to certain patent applications directed to certain small molecule compounds that bind to EGFR and HER2 with one or more exon 20 insertion mutations and certain related know-how, in each case, to develop and commercialize certain licensed compounds and licensed products incorporating any such compound worldwide (other than in the People’s Republic of China, Hong Kong, Macau and Taiwan) (the ORIC Territory). Under the Voronoi License Agreement, Voronoi has the right to perform certain mutually agreed upon development activities. Except for Voronoi's right to participate in such development activities, the Company is wholly responsible for development and commercialization of licensed products in the ORIC Territory. In addition, the Company is obligated to use commercially reasonable efforts to develop and commercialize at least one licensed product in certain major markets in the ORIC Territory.

The Company’s financial obligations under the Voronoi License Agreement included an upfront payment comprised of a $5.0 million cash payment and the issuance to Voronoi of 283,259 shares of the Company’s common stock, valued at approximately $6.8 million, issued pursuant to a stock issuance agreement (Stock Agreement) entered into between the parties on October 19, 2020. The number of shares issued pursuant to the Stock Agreement was based on a price of $28.24 per share, representing a premium of 25% to the 30-day trailing volume weighted average trading price of the Company’s common stock. The shares were issued in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended, for transactions by an issuer not involving any public offering.

Under the Voronoi License Agreement, Voronoi will be responsible for certain research and development costs up to a predetermined threshold. Upon achievement of the predetermined threshold, Voronoi has the option to opt-out of participation in and funding of future development activities. If Voronoi decides not to exercise the opt-out provision, the parties would share certain future research and development costs equally in the Republic of Korea. The Company is also obligated to make milestone payments to Voronoi upon the achievement of certain events. Upon the achievement of certain development and regulatory milestones with respect to the first licensed product, the Company is obligated to pay Voronoi up to a maximum of $111.0 million. Upon the achievement of certain commercial milestones with respect to the first licensed product, the Company is obligated to pay Voronoi up to a maximum of $225.0 million. If the Company pursues a second licensed product, the Company would pay Voronoi up to an additional $272.0 million in success-based milestones. In addition, the Company is obligated to pay royalties on net sales of licensed products in the ORIC Territory.

Unless earlier terminated, the Voronoi License Agreement will continue in effect until the expiration of all royalty payment obligations. Following the expiration of the Voronoi License Agreement, the Company will retain its licenses under the intellectual property Voronoi licensed to it on a royalty-free basis. The Company and Voronoi may each terminate the Voronoi License Agreement if the other party materially breaches the terms of such agreement, subject to specified notice and cure provisions, or enters into bankruptcy or insolvency proceedings. Voronoi may also terminate the agreement if the Company discontinues development of licensed products for a specified period of time. The Company also has the right to terminate the Voronoi License Agreement without cause by providing prior notice to Voronoi.

If Voronoi terminates the Voronoi License Agreement for cause, or if the Company terminates the Voronoi License Agreement without cause, then the Company is obligated to grant a nonexclusive license to Voronoi under certain of the Company’s patents and know-how and to assign to Voronoi certain of its regulatory filings for licensed compounds and licensed products.

The Company recorded the transaction as an asset purchase as management concluded that all of the value received was related to a specific identifiable asset related to EGFR and HER2. Further, as the asset was in early development at the time the license was acquired, the Company concluded that there was no alternative future use for the asset and recorded a charge to acquired in-process research and development expense of $11.8 million at the closing of the transaction in October 2020, which consisted of the $5.0 million cash payment plus the $6.8 million value assigned to the shares issued in connection with Voronoi License Agreement.

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (55,944)	$ (45,444)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	668	736
Stock-based compensation expense	9,354	3,589
Non-cash stock consideration, acquisition		12,971
Loss on fixed asset disposals	2
Amortization of premium on investments, net	1,201	33
Changes in operating assets and liabilities:
Prepaid expenses and other assets	1,010	(1,599)
Accounts payable and accrued other liabilities	452	2,271
Net cash used in operating activities	(43,257)	(27,443)
Cash flows from investing activities:
Acquisitions of property and equipment	(550)	(256)
Purchases of investments	(32,866)	(124,640)
Sales and maturities of investments	191,500
Proceeds from notes receivable		193
Net cash provided by (used in) investing activities	158,084	(124,703)
Cash flows from financing activities:
Proceeds from issuance of common stock	50,000	138,000
Issuance costs associated with financings	(1,852)	(12,692)
Payment of deferred offering costs		(394)
Proceeds from stock option exercises	173	104
Net cash provided by financing activities	48,321	125,018
Net increase (decrease) in cash, cash equivalents and restricted cash	163,148	(27,128)
Cash, cash equivalents and restricted cash at beginning of period	78,446	89,159
Cash, cash equivalents and restricted cash at end of period	241,594	62,031
Supplemental disclosure of non-cash investing and financing activities:
Amounts accrued for purchase of property and equipment	$ 42	132
Conversion of preferred stock to common stock		$ 178,058

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accrued Liabilities Current [Abstract]
Accrued clinical and manufacturing costs	$ 5,748	$ 3,072
Lease liabilities - short-term	1,798
Accrued compensation	3,263	3,723
Other accruals	675	904
Deferred rent - short-term		546
Total accrued liabilities	$ 11,484	$ 8,245

Equity Incentive Plans and Stock-Based Compensation - Summary of Total Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 3,397	$ 1,681	$ 9,354	$ 3,589
Research and development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,250	592	3,608	1,406
General and administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 2,147	$ 1,089	$ 5,746	$ 2,183

Property and Equipment, Net

9 Months Ended

Sep. 30, 2021

Property Plant And Equipment [Abstract]

Property and Equipment, Net

4. Property and Equipment, net

Property and equipment, net consisted of the following (in thousands):


	September 30, 2021			December 31, 2020
Lab equipment	$	4,641		$	4,396
Leasehold improvements		1,710			1,710
Computer hardware and software		212			220
Furniture and fixtures		140			140
Total property and equipment, gross		6,703			6,466
Less accumulated depreciation		(4,878	)		(4,485	)
Total property and equipment, net	$	1,825		$	1,981

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2021

Commitments And Contingencies Disclosure [Abstract]

Summary of Future Lease Payments of Operating Lease Liabilities

Future lease payments of operating lease liabilities as of September 30, 2021 were as follows (in thousands):


	Operating Leases
2021 remaining 3 months	$	492
2022		1,956
2023		2,390
2024		2,474
2025		2,561
Thereafter		6,432
Total minimum lease payments		16,305
Less: interest		3,766
Present value of lease liabilities	$	12,539

Summary of Future Minimum Lease Payments under Non-cancelable Operating Leases

Future minimum lease payments under non-cancelable operating leases as of December 31, 2020 were as follows (in thousands):



Year ending December 31,	Operating Leases
2021	$	1,942
2022		686
Total minimum lease payments	$	2,628

Equity Incentive Plans and Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Option Activity

The following table summarizes the option activity for the nine months ended September 30, 2021:


	Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2020		3,996,174		$	9.03		8.5	$	99,107
Granted		1,534,842			27.42
Exercised		(61,768	)		2.86
Forfeited and cancelled		(209,302	)		21.20
Outstanding at September 30, 2021		5,259,946		$	13.99		8.2	$	47,735
Exercisable at September 30, 2021		2,149,552		$	6.34		7.3	$	31,542

Summary of Outstanding Shares of Potential Dilutive Securities Excluded from Computation of Diluted Net Loss per Share

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Options to purchase common stock		5,259,946		3,959,693		5,259,946		3,959,693
Total		5,259,946		3,959,693		5,259,946		3,959,693

Summary of Fair Value of Stock Options Estimated Using Black-Scholes Merton Option Pricing Model Assumptions

The fair value of stock option awards to employees, executives, directors, and other service providers was estimated at the date of grant using the Black-Scholes Merton option pricing model with the following assumptions:


	Nine Months Ended September 30,
	2021	2020
Stock price	$16.61 - $35.67	$16.00 - $35.92
Risk-free interest rate	0.60% - 1.15%	3.17% - 4.45%
Expected volatility	82.88% - 88.43%	88.01% - 95.11%
Expected term (in years)	5.50 - 6.08	5.50 - 6.08
Expected dividend yield	0%	0%

Summary of Total Stock-based Compensation Expense

The table below summarizes the total stock-based compensation expense included in the Company’s statements of operations and comprehensive loss for stock options for the periods presented (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Research and development	$	1,250	$	592	$	3,608	$	1,406
General and administrative		2,147		1,089		5,746		2,183
Total stock-based compensation expense	$	3,397	$	1,681	$	9,354	$	3,589

Description of the Business

9 Months Ended

Sep. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of the Business

1. Description of the Business

ORIC Pharmaceuticals, Inc. (ORIC or the Company) is a clinical-stage biopharmaceutical company dedicated to improving patients’ lives by Overcoming Resistance In Cancer. The Company was incorporated in Delaware in August 2014 and has offices in South San Francisco and San Diego, California. The Company’s principal operations are in the United States and the Company operates in one segment.

Since inception, the Company has devoted its primary efforts to raising capital, internal research and development activities and business development efforts, and has incurred significant operating losses and negative cash flows from operations. In August 2020, the Company licensed from Mirati Therapeutics, Inc. development and commercialization rights to an allosteric inhibitor program directed towards the polycomb repressive complex 2 (PRC2) and in October 2020, the Company licensed from Voronoi Inc. development and commercialization rights to a brain penetrant, orally bioavailable, irreversible inhibitor designed to selectively target epidermal growth factor receptor (EGFR) and human epidermal growth factor receptor 2 (HER2) with high potency against exon 20 insertion mutations.

As of September 30, 2021, the Company had an accumulated deficit of $222.3 million. Through September 30, 2021, all of the Company’s financial support has been provided by proceeds from the issuance of common stock and from the sale of convertible preferred stock.

As the Company continues its expansion, it may seek additional financing and/or strategic investments, however, there can be no assurance that any additional financing or strategic investments will be available to the Company on acceptable terms, if at all. If events or circumstances occur such that the Company does not obtain additional funding, it will most likely be required to reduce its plans and/or certain discretionary spending, which could have a material adverse effect on the Company’s ability to achieve its intended business objectives. The accompanying financial statements do not include any adjustments that might be necessary if it were unable to continue as a going concern. Management believes that it has sufficient working capital on hand to fund operations through at least the next twelve months from the date of the issuance of these financial statements.

At-The-Market Sales Agreement and Offering

On May 6, 2021, the Company entered into an "at the market" (ATM) sales agreement with Jefferies LLC as the Company's sales agent, under which the Company may offer and sell from time to time up to $150 million of shares of the Company's common stock in negotiated transactions or transactions that are deemed to be an ATM offering. On July 8, 2021, the Company raised gross proceeds of $50.0 million through the sale of 2,597,402 shares in an ATM offering, with participation based on unsolicited interest received from a healthcare specialist fund. The Company sold such shares at a purchase price per share of $19.25, a premium to the market price at the time of sale. After deducting commissions and other offering expenses related to the ATM offering of $1.9 million, the net proceeds to the Company from the transaction were $48.1 million.

Secondary Public Offering

On November 17, 2020, the Company completed a secondary public offering selling 5,796,000 shares of common stock, which included the full exercise by the underwriters of their option to purchase up to 756,000 additional shares, at a price of $23.00 per share, resulting in gross proceeds of $133.3 million. After deducting underwriting discounts and commissions and other offering expenses related to the secondary public offering of approximately $8.5 million, the net proceeds to the Company from the transaction were $124.8 million.

Initial Public Offering and Related Transaction

On April 28, 2020, the Company completed an initial public offering (IPO) selling 8,625,000 shares of common stock, which included the full exercise by the underwriters of their option to purchase up to 1,125,000 additional shares, at a price of $16.00 per share resulting in gross proceeds of $138.0 million. After deducting underwriting discounts and commissions and other offering expenses related to the IPO of $12.8 million, the net proceeds to the Company from the transaction were $125.2 million. In connection with the IPO, all shares of convertible preferred stock outstanding at the time of the IPO converted into 19,278,606 shares of common stock. On April 21, 2020, the Company amended its certificate of incorporation to effect a one-for-four reverse stock split of its issued and outstanding common and convertible preferred stock. The accompanying financial statements and related notes give retroactive effect, where applicable, to the reverse stock split.

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)	Sep. 30, 2021	Jan. 01, 2021	Dec. 31, 2020
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Right-of-use assets	$ 12,000,000.0
Lease liabilities	12,539,000
Adjustment to opening balance of accumulated deficit	$ (222,337,000)		$ (166,393,000)
ASU No. 2016-02
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Right-of-use assets		$ 1,700,000
Lease liabilities		2,500,000
Change in accounting principle, accounting standards update, early adoption	true
Change in accounting principle, accounting standards update, adopted	true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2021
Change in accounting principle, accounting standards update, immaterial effect	true
ASU No. 2016-02 \| Cumulative Effect, Period of Adoption, Adjustment
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Adjustment to opening balance of accumulated deficit		$ 0
ASU No. 2016-13
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, early adoption	true
Change in accounting principle, accounting standards update, immaterial effect	true

Investments, Available-for-Sale - Schedule of Cost, Gross Unrealized Holding Gains, Gross Unrealized Holding Losses and Fair Value of Available for Sale Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Short-term Investments
Schedule Of Available For Sale Securities [Line Items]
Investments, available-for-sale, Amortized Cost	$ 48,392	$ 215,185
Investments, available-for-sale, Unrealized Gains	1
Investments, available-for-sale, Unrealized Losses		(31)
Investments, available-for-sale, Estimated Fair Value	48,393	215,154
Long Term Investments
Schedule Of Available For Sale Securities [Line Items]
Investments, available-for-sale, Amortized Cost	6,959
Investments, available-for-sale, Unrealized Losses	(3)
Investments, available-for-sale, Estimated Fair Value	6,956
U.S. Treasury Securities \| Short-term Investments
Schedule Of Available For Sale Securities [Line Items]
Investments, available-for-sale, Amortized Cost	47,656	215,185
Investments, available-for-sale, Unrealized Gains	1
Investments, available-for-sale, Unrealized Losses		(31)
Investments, available-for-sale, Estimated Fair Value	47,657	$ 215,154
U.S. Treasury Securities \| Long Term Investments
Schedule Of Available For Sale Securities [Line Items]
Investments, available-for-sale, Amortized Cost	6,006
Investments, available-for-sale, Unrealized Losses	(3)
Investments, available-for-sale, Estimated Fair Value	6,003
Certificates of deposit \| Short-term Investments
Schedule Of Available For Sale Securities [Line Items]
Investments, available-for-sale, Amortized Cost	736
Investments, available-for-sale, Estimated Fair Value	736
Certificates of deposit \| Long Term Investments
Schedule Of Available For Sale Securities [Line Items]
Investments, available-for-sale, Amortized Cost	953
Investments, available-for-sale, Estimated Fair Value	$ 953

BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	200,000,000	200,000,000
Preferred stock, shares, issued	0	0
Preferred stock, shares, outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares, issued	39,331,585	36,672,415
Common stock, shares, outstanding	39,331,585	36,672,415

License Agreements - Additional Information (Details) $ / shares in Units, $ in Thousands			1 Months Ended
	Oct. 19, 2020 USD ($) Product $ / shares shares	Aug. 03, 2020 USD ($) Product $ / shares shares	Oct. 31, 2020 USD ($)	Aug. 31, 2020 USD ($)	Sep. 30, 2021 USD ($) shares	Dec. 31, 2020 USD ($) shares
License Agreements [Line Items]
Number of licensed products obliged to develop and commercialize \| Product	1	1
Upfront payment shares issued \| shares					39,331,585	36,672,415
Upfront payment value					$ 4	$ 4
Mirati Therapeutics, Inc
License Agreements [Line Items]
Number of period the agreement in effect		10 years
Mirati Therapeutics, Inc \| Private Placement \| Acquired In-Process Research and Development Expense
License Agreements [Line Items]
License agreement shares issued value related to acquired assets charge				$ 13,000
Mirati Therapeutics, Inc \| Private Placement \| Common Stock
License Agreements [Line Items]
Upfront payment shares issued \| shares		588,235
Upfront payment value		$ 13,000
Issue price per share \| $ / shares		$ 34.00
Premium percentage		10.00%
Stock transfer restrictions period		18 months
Voronoi Inc. \| Development And Regulatory Milestone
License Agreements [Line Items]
License agreement maximum milestone payment obligation to pay	$ 111,000
Voronoi Inc. \| Commercial Milestone
License Agreements [Line Items]
License agreement maximum milestone payment obligation to pay	225,000
Voronoi Inc. \| Success Based Milestones
License Agreements [Line Items]
License agreement, additional milestone payment	$ 272,000
Voronoi Inc. \| Private Placement
License Agreements [Line Items]
License agreement charge related to acquired assets			$ 11,800
Voronoi Inc. \| Private Placement \| Acquired In-Process Research and Development Expense
License Agreements [Line Items]
License agreement shares issued value related to acquired assets charge			6,800
License agreement cash payment related to acquired assets charge			$ 5,000
Voronoi Inc. \| Private Placement \| Common Stock
License Agreements [Line Items]
Upfront payment shares issued \| shares	283,259
Upfront payment value	$ 6,800
Issue price per share \| $ / shares	$ 28.24
Premium percentage	25.00%
Upfront cash payment	$ 5,000

Description of the Business - Additional Information (Details) $ / shares in Units, $ in Thousands					3 Months Ended		9 Months Ended
	Jul. 08, 2021 USD ($) $ / shares shares	May 06, 2021 USD ($)	Nov. 17, 2020 USD ($) $ / shares shares	Apr. 28, 2020 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) shares	Jun. 30, 2020 shares	Sep. 30, 2021 USD ($) Segments	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Description Of Business [Line Items]
Number of operating segments \| Segments							1
Accumulated deficit					$ 222,337		$ 222,337		$ 166,393
Proceeds from issuance of common stock pursuant to public offering							$ 50,000	$ 138,000
At-The-Market Sales Agreement and Offering
Description Of Business [Line Items]
Sale of Stock, Number of Shares Issued in Transaction \| shares	2,597,402
Proceeds from issuance of common stock pursuant to public offering	$ 50,000
Sale of Stock, Price Per Share \| $ / shares	$ 19.25
At-The-Market Sales Agreement and Offering \| Maximum
Description Of Business [Line Items]
Sales of common stock		$ 150,000
Common Stock
Description Of Business [Line Items]
Shares of common stock issued \| shares					2,597,402
Proceeds from issuance of common stock pursuant to initial public offering				$ 138,000
Underwriting discounts and commissions and other offering expenses				12,800
Net proceeds from IPO				$ 125,200
Convertible preferred stock outstanding converted into shares of common stock \| shares				19,278,606
Reverse stock split				one-for-four
Reverse stock split ratio				0.25
Common Stock \| Initial Public Offering
Description Of Business [Line Items]
Shares of common stock issued \| shares				8,625,000		8,625,000
Price per share of common stock \| $ / shares				$ 16.00
Common Stock \| Option to Purchase Additional Shares \| Maximum
Description Of Business [Line Items]
Shares of common stock issued \| shares			756,000	1,125,000
Common Stock \| Secondary Public Offering
Description Of Business [Line Items]
Shares of common stock issued \| shares			5,796,000
Price per share of common stock \| $ / shares			$ 23.00
Underwriting discounts and commissions and other offering expenses			$ 8,500
Gross proceeds from secondary public offering excluding underwriting discounts and commissions and other offering expenses			133,300
Proceeds from issuance of common stock pursuant to public offering			$ 124,800
Common Stock \| At-The-Market Sales Agreement and Offering
Description Of Business [Line Items]
Underwriting discounts and commissions and other offering expenses	$ 1,900
Proceeds from issuance of common stock pursuant to public offering	$ 48,100

Accrued Liabilities

9 Months Ended

Sep. 30, 2021

Accrued Liabilities Current [Abstract]

Accrued Liabilities

5. Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):



	September 30, 2021		December 31, 2020
Accrued clinical and manufacturing costs	$	5,748	$	3,072
Lease liabilities - short-term		1,798	—
Accrued compensation		3,263		3,723
Other accruals		675		904
Deferred rent - short-term	—			546
Total accrued liabilities	$	11,484	$	8,245

Property and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2021

Property Plant And Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):


	September 30, 2021			December 31, 2020
Lab equipment	$	4,641		$	4,396
Leasehold improvements		1,710			1,710
Computer hardware and software		212			220
Furniture and fixtures		140			140
Total property and equipment, gross		6,703			6,466
Less accumulated depreciation		(4,878	)		(4,485	)
Total property and equipment, net	$	1,825		$	1,981

Investments, Available-for-Sale (Tables)

9 Months Ended

Sep. 30, 2021

Investments Debt And Equity Securities [Abstract]

Schedule of Cost, Gross Unrealized Holding Gains, Gross Unrealized Holding Losses and Fair Value of Available for Sale Investments

The Company's available-for-sale investments consisted of the following (in thousands):


September 30, 2021	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
U.S. treasury securities	$	47,656	$	1	$	—		$	47,657
Certificates of deposit		736		—		—			736
Short-term investments, available-for-sale	$	48,392	$	1	$	—		$	48,393

U.S. treasury securities	$	6,006	$	—	$	(3	)	$	6,003
Certificates of deposit		953		—		—			953
Investments, available-for-sale	$	6,959	$	—	$	(3	)	$	6,956

December 31, 2020
U.S. treasury securities	$	215,185	$	—	$	(31	)	$	215,154
Short-term investments, available-for-sale	$	215,185	$	—	$	(31	)	$	215,154

STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands	Total	Initial Public Offering	Convertible Preferred Stock	Common Stock	Common Stock Initial Public Offering	Additional Paid-in Capital	Additional Paid-in Capital Initial Public Offering	Accumulated Deficit	Accumulated Other Comprehensive Gain (Loss)
Beginning Balance at Dec. 31, 2019			$ 178,058
Beginning Balance (in shares) at Dec. 31, 2019			19,278,606
Beginning Balance at Dec. 31, 2019	$ (90,084)					$ 2,606		$ (92,690)
Beginning Balance (in shares) at Dec. 31, 2019				1,984,222
Exercise of common stock options	12					12
Exercise of common stock options (in shares)				13,433
Stock-based compensation expense	527					527
Net loss	(8,872)							(8,872)
Ending Balance at Mar. 31, 2020			$ 178,058
Ending Balance (in shares) at Mar. 31, 2020			19,278,606
Ending Balance at Mar. 31, 2020	(98,417)					3,145		(101,562)
Ending Balance (in shares) at Mar. 31, 2020				1,997,655
Beginning Balance at Dec. 31, 2019			$ 178,058
Beginning Balance (in shares) at Dec. 31, 2019			19,278,606
Beginning Balance at Dec. 31, 2019	(90,084)					2,606		(92,690)
Beginning Balance (in shares) at Dec. 31, 2019				1,984,222
Unrealized (loss) gain on available-for-sale investments	(29)
Ending Balance at Sep. 30, 2020	184,375			$ 3		322,535		(138,134)	(29)
Ending Balance (in shares) at Sep. 30, 2020				30,545,165
Beginning Balance at Mar. 31, 2020			$ 178,058
Beginning Balance (in shares) at Mar. 31, 2020			19,278,606
Beginning Balance at Mar. 31, 2020	(98,417)					3,145		(101,562)
Beginning Balance (in shares) at Mar. 31, 2020				1,997,655
Issuance of common stock		$ 138,000			$ 1		$ 137,999
Issuance of common stock (in shares)					8,625,000
Exercise of common stock options	39					39
Exercise of common stock options (in shares)				23,200
Stock-based compensation expense	1,381					1,381
Issuance costs associated with initial public offering		$ (12,790)					$ (12,790)
Conversion to common stock			$ (178,058)
Conversion to common stock (in shares)			(19,278,606)
Conversion to common stock	178,058			$ 2		178,056
Conversion to common stock (in shares)				19,278,606
Net loss	(11,024)							(11,024)
Ending Balance at Jun. 30, 2020
Ending Balance (in shares) at Jun. 30, 2020
Ending Balance at Jun. 30, 2020	195,247			$ 3		307,830		(112,586)
Ending Balance (in shares) at Jun. 30, 2020				29,924,461
Exercise of common stock options	53					53
Exercise of common stock options (in shares)				32,469
Stock-based compensation expense	1,681					1,681
Issuance of common stock related to acquisition	12,971					12,971
Issuance of common stock related to acquisition, shares				588,235
Unrealized (loss) gain on available-for-sale investments	(29)								(29)
Net loss	(25,548)							(25,548)
Ending Balance at Sep. 30, 2020	184,375			$ 3		322,535		(138,134)	(29)
Ending Balance (in shares) at Sep. 30, 2020				30,545,165
Beginning Balance at Dec. 31, 2020	$ 289,776			$ 4		456,196		(166,393)	(31)
Beginning Balance (in shares) at Dec. 31, 2020	36,672,415			36,672,415
Exercise of common stock options	$ 16					16
Exercise of common stock options (in shares)				18,411
Stock-based compensation expense	2,744					2,744
Unrealized (loss) gain on available-for-sale investments	48								48
Net loss	(16,509)							(16,509)
Ending Balance at Mar. 31, 2021	276,075			$ 4		458,956		(182,902)	17
Ending Balance (in shares) at Mar. 31, 2021				36,690,826
Beginning Balance at Dec. 31, 2020	$ 289,776			$ 4		456,196		(166,393)	(31)
Beginning Balance (in shares) at Dec. 31, 2020	36,672,415			36,672,415
Exercise of common stock options (in shares)	61,768
Unrealized (loss) gain on available-for-sale investments	$ 29
Ending Balance at Sep. 30, 2021	$ 291,536			$ 4		513,871		(222,337)	(2)
Ending Balance (in shares) at Sep. 30, 2021	39,331,585			39,331,585
Beginning Balance at Mar. 31, 2021	$ 276,075			$ 4		458,956		(182,902)	17
Beginning Balance (in shares) at Mar. 31, 2021				36,690,826
Exercise of common stock options	58					58
Exercise of common stock options (in shares)				24,786
Stock-based compensation expense	3,213					3,213
Unrealized (loss) gain on available-for-sale investments	(14)								(14)
Net loss	(21,009)							(21,009)
Ending Balance at Jun. 30, 2021	258,323			$ 4		462,227		(203,911)	3
Ending Balance (in shares) at Jun. 30, 2021				36,715,612
Issuance of common stock	50,000					50,000
Issuance of common stock (in shares)				2,597,402
Issuance costs associated with offering of common stock	(1,852)					1,852
Exercise of common stock options	99					99
Exercise of common stock options (in shares)				18,571
Stock-based compensation expense	3,397					3,397
Unrealized (loss) gain on available-for-sale investments	(5)								(5)
Net loss	(18,426)							(18,426)
Ending Balance at Sep. 30, 2021	$ 291,536			$ 4		$ 513,871		$ (222,337)	$ (2)
Ending Balance (in shares) at Sep. 30, 2021	39,331,585			39,331,585

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 241,126	$ 78,446	$ 62,031
Restricted cash included in other assets	468
Total cash, cash equivalents and restricted cash presented in the statement of cash flows	$ 241,594	$ 78,446	$ 62,031	$ 89,159

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2021	Nov. 03, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Registrant Name	ORIC PHARMACEUTICALS, INC.
Trading Symbol	ORIC
Entity Central Index Key	0001796280
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		39,381,866
Entity File Number	001-39269
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-1787157
Entity Address, Address Line One	240 E. Grand Ave
Entity Address, Address Line Two	2nd Floor
Entity Address, City or Town	South San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94080
City Area Code	650
Local Phone Number	388-5600
Document Quarterly Report	true
Document Transition Report	false

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash


	Nine Months Ended September 30,
	2021		2020
Cash and cash equivalents	$	241,126	$	62,031
Restricted cash included in other assets		468		—
Total cash, cash equivalents and restricted cash presented in the statement of cash flows	$	241,594	$	62,031

Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Accrued Liabilities Current [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):



	September 30, 2021		December 31, 2020
Accrued clinical and manufacturing costs	$	5,748	$	3,072
Lease liabilities - short-term		1,798	—
Accrued compensation		3,263		3,723
Other accruals		675		904
Deferred rent - short-term	—			546
Total accrued liabilities	$	11,484	$	8,245

Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

Cash, Cash Equivalents and Restricted Cash


	Nine Months Ended September 30,
	2021		2020
Cash and cash equivalents	$	241,126	$	62,031
Restricted cash included in other assets		468		—
Total cash, cash equivalents and restricted cash presented in the statement of cash flows	$	241,594	$	62,031

Recently Adopted Accounting Pronouncements

Equity Incentive Plans and Stock-Based Compensation - Summary of Outstanding Shares of Potential Dilutive Securities Excluded from Computation of Diluted Net Loss per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti dilutive securities excluded from computation of net loss per share	5,259,946	3,959,693	5,259,946	3,959,693
Options to Purchase Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti dilutive securities excluded from computation of net loss per share	5,259,946	3,959,693	5,259,946	3,959,693

Equity Incentive Plans and Stock-Based Compensation

9 Months Ended

Sep. 30, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Incentive Plans and Stock-Based Compensation

8. Equity Incentive Plans and Stock-Based Compensation

As of September 30, 2021, there were 1,938,448 shares available for future issuance under the 2020 Equity Incentive Plan.

The following table summarizes the option activity for the nine months ended September 30, 2021:


	Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2020		3,996,174		$	9.03		8.5	$	99,107
Granted		1,534,842			27.42
Exercised		(61,768	)		2.86
Forfeited and cancelled		(209,302	)		21.20
Outstanding at September 30, 2021		5,259,946		$	13.99		8.2	$	47,735
Exercisable at September 30, 2021		2,149,552		$	6.34		7.3	$	31,542


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Options to purchase common stock		5,259,946		3,959,693		5,259,946		3,959,693
Total		5,259,946		3,959,693		5,259,946		3,959,693

Stock-Based Compensation Expense


	Nine Months Ended September 30,
	2021	2020
Stock price	$16.61 - $35.67	$16.00 - $35.92
Risk-free interest rate	0.60% - 1.15%	3.17% - 4.45%
Expected volatility	82.88% - 88.43%	88.01% - 95.11%
Expected term (in years)	5.50 - 6.08	5.50 - 6.08
Expected dividend yield	0%	0%

The total unrecognized compensation expense related to outstanding unvested stock-based awards as of September 30, 2021, was $38.6 million, which is expected to be recognized over a weighted-average remaining service period of 2.64 years.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Research and development	$	1,250	$	592	$	3,608	$	1,406
General and administrative		2,147		1,089		5,746		2,183
Total stock-based compensation expense	$	3,397	$	1,681	$	9,354	$	3,589

Investments, Available-for-Sale

9 Months Ended

Sep. 30, 2021

Investments Debt And Equity Securities [Abstract]

Investments, Available-for-Sale

6. Investments, Available-for-Sale

The Company’s investment policy defines allowable investments and establishes guidelines relating to credit quality, diversification, and maturities of its investments to preserve principal and maintain liquidity. In accordance with the Company’s investment policy, it has invested funds in available-for-sale investments as of September 30, 2021 and December 31, 2020.

The Company's available-for-sale investments consisted of the following (in thousands):


September 30, 2021	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
U.S. treasury securities	$	47,656	$	1	$	—		$	47,657
Certificates of deposit		736		—		—			736
Short-term investments, available-for-sale	$	48,392	$	1	$	—		$	48,393

U.S. treasury securities	$	6,006	$	—	$	(3	)	$	6,003
Certificates of deposit		953		—		—			953
Investments, available-for-sale	$	6,959	$	—	$	(3	)	$	6,956

December 31, 2020
U.S. treasury securities	$	215,185	$	—	$	(31	)	$	215,154
Short-term investments, available-for-sale	$	215,185	$	—	$	(31	)	$	215,154

The Company has determined that there were no material declines in fair value of its investments due to credit-related factors as of September 30, 2021 and December 31, 2020. Credit loss is limited due to the nature of the investments.

Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

7. Fair Value Measurements

The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined 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. 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. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair-value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets;

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The carrying amounts of the Company’s interest receivable, included in prepaid expenses and other current assets, accounts payable and accrued liabilities are generally considered to be representative of their fair value because of their short-term nature. The Company’s investments, which may include money market funds and available-for-sale investments consisting of U.S. treasury securities, certificates of deposit and high-quality, marketable debt instruments of corporations and government sponsored enterprises, are measured at fair value in accordance with the fair value hierarchy.

Following are the major categories of assets measured at fair value on a recurring basis (in thousands):


	Fair Value Measurements
	Fair Value		Level 1		Level 2		Level 3		Total
September 30, 2021
Money market funds (1)	$	241,126	$	241,126	$	—	$	—	$	241,126
U.S. treasury securities		53,660		53,660		—		—		53,660
Certificates of deposit		1,689		1,689		—		—		1,689
Total	$	296,475	$	296,475	$	—	$	—	$	296,475
December 31, 2020
Money market funds (1)	$	78,446	$	78,446	$	—	$	—	$	78,446
U.S. treasury securities		215,154		215,154		—		—		215,154
Total	$	293,600	$	293,600	$	—	$	—	$	293,600

(1) Included in cash and cash equivalents in accompanying balance sheet.

No transfers between levels occurred during either of the reporting periods presented.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Operating expenses:
Research and development	$ 12,899	$ 8,831	$ 40,113	$ 23,808
Acquired in-process research and development		12,971		12,971
General and administrative	5,557	3,800	15,953	9,125
Total operating expenses	18,456	25,602	56,066	45,904
Loss from operations	(18,456)	(25,602)	(56,066)	(45,904)
Other income:
Interest income, net	30	10	107	276
Other income		44	15	184
Total other income	30	54	122	460
Net loss	(18,426)	(25,548)	(55,944)	(45,444)
Other comprehensive gain (loss):
Unrealized (loss) gain on available-for-sale investments	(5)	(29)	29	(29)
Comprehensive loss	$ (18,431)	$ (25,577)	$ (55,915)	$ (45,473)
Net loss per share, basic and diluted	$ (0.47)	$ (0.84)	$ (1.49)	$ (2.52)
Weighted-average shares outstanding, basic and diluted	39,008,114	30,314,904	37,471,740	18,022,068

Fair Value Measurements - Additional Information (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Transfer between level 1 to 2	$ 0	$ 0
Transfer between level 2 to 1	0	0
Transfer between level 2 to 3	0	0
Transfer between level 3 to 2	0	0
Transfer between level 1 to 3	0	0
Transfer between level 3 to 1	$ 0	$ 0

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value on Recurring Basis

Following are the major categories of assets measured at fair value on a recurring basis (in thousands):


	Fair Value Measurements
	Fair Value		Level 1		Level 2		Level 3		Total
September 30, 2021
Money market funds (1)	$	241,126	$	241,126	$	—	$	—	$	241,126
U.S. treasury securities		53,660		53,660		—		—		53,660
Certificates of deposit		1,689		1,689		—		—		1,689
Total	$	296,475	$	296,475	$	—	$	—	$	296,475
December 31, 2020
Money market funds (1)	$	78,446	$	78,446	$	—	$	—	$	78,446
U.S. treasury securities		215,154		215,154		—		—		215,154
Total	$	293,600	$	293,600	$	—	$	—	$	293,600

(1) Included in cash and cash equivalents in accompanying balance sheet.

Commitment and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	9 Months Ended
	Oct. 31, 2021	Aug. 31, 2021	Sep. 30, 2021	Sep. 30, 2021	Jan. 01, 2021
Lessor, Lease, Description [Line Items]
Accrued Liabilities			$ 1,800	$ 1,800
Lease liabilities			12,539	12,539
Long-term Debt			10,700	10,700
Operating lease costs			$ 500	1,200
Cash paid for operating lease				$ 1,500
Weighted average discount rate			8.20%	8.20%
Weighted-average remaining lease term			6 years 7 months 9 days	6 years 7 months 9 days
Right-of-use assets			$ 12,000	$ 12,000
ASU No. 2016-02
Lessor, Lease, Description [Line Items]
Lease liabilities					$ 2,500
Right-of-use assets					$ 1,700
South San Francisco, California
Lessor, Lease, Description [Line Items]
Operating lease, renewal term			1 year	1 year
Extend the lease term		May 2028
San Diego, California
Lessor, Lease, Description [Line Items]
Operating lease, renewal term			36 months	36 months
Extend the lease term	February 2022

Fair Value Measurements - Schedule of Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, Fair Value	$ 296,475	$ 293,600
Money Market Funds
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, Fair Value	241,126	78,446
U.S. Treasury Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, Fair Value	53,660	215,154
Certificates of deposit
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, Fair Value	1,689
Level 1
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, Fair Value	296,475	293,600
Level 1 \| Money Market Funds
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, Fair Value	241,126	78,446
Level 1 \| U.S. Treasury Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, Fair Value	53,660	215,154
Level 1 \| Certificates of deposit
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, Fair Value	1,689
Fair Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, Fair Value	296,475	293,600
Fair Value \| Money Market Funds
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, Fair Value	241,126	78,446
Fair Value \| U.S. Treasury Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, Fair Value	53,660	$ 215,154
Fair Value \| Certificates of deposit
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, Fair Value	$ 1,689

Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Operating Leases

The Company has operating leases for office and lab space in South San Francisco, California and office space in San Diego, California. In August 2021, the Company entered into a lease amendment for the South San Francisco facility that extended the lease term until May 2028. The lease amendment includes the option to extend the lease for one additional year. In October 2021, the Company entered into a lease amendment for the current San Diego facility that extended the lease expiration from December 2021 to February 2022. Additionally, in September 2021, the Company entered into a lease agreement for a new San Diego facility with a term of 36 months that is expected to commence in February 2022. The leases may require the Company to pay property taxes, insurance and common area maintenance. These payments are recognized as variable lease costs in the period they are incurred and are not included within lease liabilities.

As a result of the lease amendment for the South San Francisco facility, the Company's operating lease right-of-use assets and lease liabilities increased during the quarterly period. The right-of-use assets were $12.0 million as of September 30, 2021 and are recorded in the balance sheet in other assets. Lease liabilities are recorded in accrued liabilities and other long-term liabilities in the balance sheet and as of September 30, 2021 were $1.8 million and $10.7 million, respectively.

Operating lease costs for the three and nine months ended September 30, 2021 were approximately $0.5 million and $1.2 million, respectively. Cash paid for our operating leases for the nine months ended September 30, 2021 was $1.5 million. The weighted average discount rate used was 8.2% and the weighted-average remaining lease term for all operating leases was 6.61 years.

Future lease payments of operating lease liabilities as of September 30, 2021 were as follows (in thousands):


	Operating Leases
2021 remaining 3 months	$	492
2022		1,956
2023		2,390
2024		2,474
2025		2,561
Thereafter		6,432
Total minimum lease payments		16,305
Less: interest		3,766
Present value of lease liabilities	$	12,539

Future minimum lease payments under non-cancelable operating leases as of December 31, 2020 were as follows (in thousands):



Year ending December 31,	Operating Leases
2021	$	1,942
2022		686
Total minimum lease payments	$	2,628

Litigation

From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business. The Company believes there is no threatened litigation or litigation pending that could have, individually or in the aggregate, a material adverse effect on the Company’s financial position, results of operations or cash flows.

Commitment and Contingencies - Summary of Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2021	$ 1,942
2022	686
Total minimum lease payments	$ 2,628

Commitment and Contingencies - Summary of Future Lease Payments of Operating Lease Liabilities (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2021 remaining 3 months	$ 492
2022	1,956
2023	2,390
2024	2,474
2025	2,561
Thereafter	6,432
Total minimum lease payments	16,305
Less: interest	3,766
Present value of lease liabilities	$ 12,539