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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Nov. 05, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Trading Symbol	ZYME
Entity Registrant Name	Zymeworks Inc.
Entity Central Index Key	0001403752
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		31,966,770

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 28,375	$ 35,946
Short-term investments (note 4)	121,626	51,851
SR&ED receivables	1,002	2,092
Accounts receivables	253	238
Prepaid expenses and other current assets	2,543	2,208
Total current assets	153,799	92,335
Acquired in-process research and development (note 5)	18,396	18,396
Goodwill (note 5)	12,016	12,016
Long-term prepaid assets	1,162	1,215
Property and equipment, net	6,385	7,178
Intangible assets, net	2,260	748
Deferred tax assets	241	67
Deferred financing fees	181
Total assets	194,440	131,955
Current liabilities:
Accounts payable and accrued liabilities (note 6)	10,477	9,053
Warrant liabilities (note 7b)		1,348
Fair value of liability classified options (note 2c)	13,208	3,945
Other current liabilities (note 6)	277	315
Total current liabilities	23,962	14,661
Other long term liabilities (note 6)	808	866
Total liabilities	24,770	15,527
Shareholders' equity:
Common shares, no par value; unlimited authorized shares at September 30, 2018 and December 31, 2017, respectively; 31,962,680 and 25,444,006 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively (note 8a)	319,890	222,991
Additional paid-in capital	10,984	8,812
Accumulated other comprehensive loss	(6,659)	(6,659)
Accumulated deficit	(154,545)	(108,716)
Total shareholders' equity	169,670	116,428
Total liabilities and shareholders' equity	$ 194,440	$ 131,955

Consolidated Balance Sheets (Parenthetical) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common shares, authorized	Unlimited	Unlimited
Common shares, no par value	$ 0	$ 0
Common shares, issued	31,962,680	25,444,006
Common shares, outstanding	31,962,680	25,444,006

Consolidated Statements of Loss and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue
Research and developmental collaborations (note 9)	$ 2,054	$ 119	$ 24,094	$ 1,691
Operating expenses:
Research and development	14,142	11,525	42,595	28,872
Government grants and credits				(218)
Net research and development	14,142	11,525	42,595	28,654
General and administrative	7,447	5,291	23,161	13,835
Impairment on acquired IPR&D (note 5)				1,536
Total operating expenses	21,589	16,816	65,756	44,025
Loss from operations	(19,535)	(16,697)	(41,662)	(42,334)
Other (expense) income
Interest and other expense	(166)	(2)	(166)	(408)
Change in fair value of warrant liabilities (note 7b)		187	(3,565)	2,320
Accretion on long-term debt				(248)
Interest and other income	1,131	210	1,648	588
Foreign exchange (loss) gain	(79)	107	(205)	232
Loss on debt extinguishment (note 7a)				(3,114)
Change in contingent consideration (note 10)	(53)		(53)
Total other income (expense), net	833	502	(2,341)	(630)
Loss before income taxes	(18,702)	(16,195)	(44,003)	(42,964)
Income tax (expense) recovery	(168)	(35)	(2,000)	(197)
Deferred income tax (expense) recovery	119	(15)	174	22
Net loss and comprehensive loss	$ (18,751)	$ (16,245)	$ (45,829)	$ (43,139)
Net loss per common share (note 2d):
Basic	$ (0.59)	$ (0.64)	$ (1.63)	$ (2.20)
Diluted	$ (0.59)	$ (0.65)	$ (1.63)	$ (2.32)
Weighted-average common shares outstanding (note 2d):
Basic	31,959,206	25,339,272	28,119,872	19,857,449
Diluted	31,959,206	25,349,210	28,119,872	19,969,002

Consolidated Statement of Changes in Shareholders' Equity - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands	Total	Common Shares [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Additional Paid-in Capital [Member]
Beginning balance at Dec. 31, 2017	$ 116,428	$ 222,991	$ (108,716)	$ (6,659)	$ 8,812
Beginning balance, shares at Dec. 31, 2017	25,444,006	25,444,006
Issuance of common shares on exercise of options (note 8e)	$ 683	$ 982			(299)
Issuance of common shares on exercise of options, shares	79,824	79,824
Issuance of common shares through employee share purchase plan (note 8f)	$ 252	$ 252
Issuance of common shares through employee share purchase plan, shares		22,489
Share-based compensation	2,471				2,471
Issuance of common shares on exercise of warrants (note 7b)	4,913	$ 4,913
Issuance of common shares on exercise of warrants (note ),shares		206,361
Issuance of common shares in connection with public offering, net of offering costs of $7,056 (note 1)	90,752	$ 90,752
Issuance of common shares in connection with public offering, net of offering costs of $7,056 (note 1), shares		6,210,000
Net loss	(45,829)		(45,829)
Ending balance at Sep. 30, 2018	$ 169,670	$ 319,890	$ (154,545)	$ (6,659)	$ 10,984
Ending balance, shares at Sep. 30, 2018	31,962,680	31,962,680

Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Statement of Stockholders' Equity [Abstract]
Issuance of common shares in connection with public offering, net of offering costs	$ 7,056

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Loss for the period	$ (45,829)	$ (43,139)
Items not involving cash:
Depreciation of property and equipment	1,400	1,213
Amortization of intangible assets	1,094	781
Accretion on long-term debt		248
Loss on extinguishment of debt		3,114
Share-based compensation (note 8e)	11,943	2,971
Deferred income tax (recovery) expense	(174)	(22)
Impairment on acquired IPR&D		1,536
Change in fair value of warrant liabilities (note 7b)	3,565	(2,320)
Change in fair value of contingent consideration (note 10)	53
Unrealized foreign exchange loss (gain)	254	(181)
Changes in non-cash operating working capital:
Accounts receivable	(15)	2,467
SR&ED and IRAP receivables	1,088	2
Prepaid expenses and other current assets	(280)	(1,222)
Accounts payable and accrued liabilities	1,018	(4,101)
Income taxes payable	(45)	(143)
Net cash used in operating activities	(25,928)	(38,796)
Cash flows from financing activities:
Proceeds from initial public offering, net of issuance costs (note 1)		56,104
Proceeds from subsequent public offering, net of issuance costs (note 1)	90,752
Issuance of common shares on exercise of options (note 8e)	581	525
Issuance of common shares on exercise of warrants (note 7b)		1,018
Issuance of common shares through employee share purchase plan (note 8f)	252
Repayment of debt (note 7a)		(7,814)
Capital lease payments	(8)	(7)
Net cash from financing activities	91,577	49,826
Cash flows from investing activities:
Short-term investments	(69,881)	(12,647)
Acquisition of property and equipment	(544)	(1,633)
Acquisition of intangible assets	(2,607)	(1,082)
Net cash used in investing activities	(73,032)	(15,362)
Effect of exchange rate changes on cash and cash equivalents	(188)	227
Net change in cash and cash equivalents	(7,571)	(4,105)
Cash and cash equivalents, beginning of period	35,946	16,437
Cash and cash equivalents, end of period	28,375	12,332
Supplemental disclosure of non-cash investing and finance items:
Share issue costs and deferred financing fees in accounts payable and accrued liabilities	153
Acquisition of fixed assets in accounts payable and accrued liabilities	63	$ 409
Cashless exercise of warrants	$ 4,913

Nature of Operations	9 Months Ended
Nature of Operations	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	1. Nature of Operations Zymeworks Inc. (the “Company” or “Zymeworks”) was incorporated on September 8, 2003 under the laws of the Canada Business Corporations Act. On October 22, 2003, the Company was registered as an extra-provincial company under the Company Act (British Columbia). On May 2, 2017, the Company continued under the Business Corporations Act (British Columbia). Zymeworks is a clinical-stage biopharmaceutical company dedicated to the discovery, development and commercialization of next-generation multifunctional biotherapeutics. Since its inception, the Company has devoted substantially all of its resources to research and development activities, including developing its therapeutic platforms, identifying and developing potential product candidates and undertaking preclinical studies and clinical trials. The Company supports these activities through general and administrative support, as well as by raising capital, conducting business planning and protecting its intellectual property. *Share Consolidation* On April 13, 2017, the Company effected a 1 for 2.3866 share consolidation (reverse share split) of the Company’s issued and outstanding common shares and redeemable convertible preferred shares. Accordingly, (i) every 2.3866 common shares were combined into one common share, (ii) every 2.3866 redeemable convertible preferred shares were combined into one redeemable convertible preferred share, (iii) the number of common shares into which each outstanding option and warrant to purchase common shares and the number of preferred shares into which each outstanding warrant to purchase preferred shares is exercisable were proportionately decreased on a 1 for 2.3866 basis, and (iv) the exercise price for each such outstanding option and warrant to purchase common shares or preferred shares were proportionately increased on a 1 for 2.3866 basis. All of the share numbers, share prices, and exercise prices in these financial statements have been adjusted, on a retroactive basis, to reflect this 1 for 2.3866 reverse share split. *Initial Public Offering* On April 27, 2017, the Company’s registration statement on Form F-1 (File No. 333-217100) relating to its initial public offering (“IPO”) of its common shares was declared effective by the U.S. Securities and Exchange Commission (“SEC”) and a final base PREP prospectus was filed with the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada. A supplemented PREP prospectus containing pricing information and other important information relating to the common shares was also filed with the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada. The Company’s common shares began trading on the New York Stock Exchange (“NYSE”) and Toronto Stock Exchange (“TSX”) on April 28, 2017. The public offering price of the shares sold in the IPO was $13.00 per share. The IPO closed on May 3, 2017, pursuant to which the Company sold 4,894,467 shares of common shares including the sale of 394,467 shares of common shares to the underwriters upon their partial exercise of their over-allotment option to purchase additional shares on May 31, 2017. The Company received net proceeds of approximately $54.2 million, after underwriting discounts, commissions and offering expenses. Immediately prior to the consummation of the IPO, all outstanding shares of redeemable convertible preferred stock were converted into 7,098,194 common shares (note 8c) and the Redeemable Convertible Class A Preferred Shares Warrants were converted into common share warrants to purchase up to 398,076 common shares of the Company at an exercise price of $8.67 per share (note 7a). *Subsequent Public Offering* On May 24, 2018, the Company’s U.S. shelf registration statement on Form F-10 (File No. 333-224623) was declared effective by the SEC and a final base shelf prospectus was filed with the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada. The U.S. shelf registration statement and Canadian base shelf prospectus allow Zymeworks to issue securities with a total aggregate offering price of up to $250 million pursuant to prospectus supplements. On June 6, 2018, the Company filed with the SEC, as well as with the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada, a preliminary prospectus supplement to complete an underwritten public offering of $85.0 million of its common shares plus an over-allotment option for the underwriters to purchase up to an additional $12.8 million of its common shares (the “Offering”). On June 7, 2018, the Company filed a final prospectus supplement relating to the Offering with the SEC, as well as with the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada, setting forth an offering price of $15.75 per share. The Offering closed on June 11, 2018 pursuant to which the Company sold 6,210,000 shares of common shares including the sale of 810,000 shares of common shares to the underwriters upon their full exercise of their over-allotment option. The Company received net proceeds of approximately $90.8 million, after underwriting discounts, commissions and offering expenses.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

a. Basis of Presentation

The accompanying interim condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC for interim financial information. Accordingly, these financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the audited financial statements and notes for the year ended December 31, 2017.

These unaudited interim financial statements reflect all adjustments, consisting solely of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three and nine months ended September 30, 2018 and 2017 are not necessarily indicative of results that can be expected for a full year. These unaudited interim financial statements follow the same significant accounting policies as those described in the notes to the audited financial statements of the Company for the year ended December 31, 2017, except for the new accounting guidance adopted during the period (note 3).

All amounts expressed in the consolidated financial statements of the Company and the accompanying notes thereto are expressed in thousands of U.S. dollars, except for per share data and where otherwise indicated. References to “$” are to U.S. dollars and references to “C$” are to Canadian dollars.

b. Use of Estimates

The preparation of the financial statements in accordance with U.S. GAAP requires the Company to make estimates and judgments in certain circumstances that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. In preparing these consolidated financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements, giving due consideration to materiality. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, Scientific Research and Experimental Development (“SR&ED”) Program and Industrial Research Assistance Program (“IRAP”), share-based compensation, warrants, accrual of expenses, preclinical study accruals, valuation allowance for deferred taxes, other contingencies and valuation of assets acquired in a business combination. Management bases its estimates on historical experience or on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from these estimates.

c. Financial instruments

Fair value of financial instruments

The Company measures certain financial instruments and other items at fair value.

To determine the fair value, the Company uses the fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use to value an asset or liability and are developed based on market data obtained from independent sources. Unobservable inputs are inputs based on assumptions about the factors market participants would use to value an asset or liability. The three levels of inputs that may be used to measure fair value are as follows:

•

Level 1 inputs are quoted market prices for identical instruments available in active markets.

•

Level 2 inputs are inputs other than Level 1 prices, such as prices for a similar asset or liability that are observable either directly or indirectly. If the asset or liability has a contractual term, the input must be observable for substantially the full term. An example includes quoted market prices for similar assets or liabilities in active markets.

•

Level 3 inputs are unobservable inputs for the asset or liability and will reflect management’s assumptions about market assumptions that would be used to price the asset or liability.

Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.

The Company’s financial instruments consist of cash and cash equivalents, short-term investments, amounts receivable, accounts payable and accrued liabilities, warrants, capital lease obligations, liability classified options and other long-term liabilities.

The carrying values of cash and cash equivalents, short-term investments, amounts receivable and accounts payable and accrued liabilities approximate their fair values due to the immediate or short-term maturity of these financial instruments. Based on the borrowing rates available to the Company for debt with similar terms and consideration of default and credit risk using Level 2 inputs, the carrying value of the Company’s capital lease obligations as of September 30, 2018 approximates its fair value. As quoted prices for the warrants and liability classified stock options are not readily available, the Company has used a Black-Scholes pricing model to estimate fair value, which utilizes level 3 inputs as defined above. Other long-term liabilities for contingent consideration related to business acquisitions are recorded at fair value on the acquisition date and adjusted quarterly to fair value. Changes in the fair value of contingent consideration liabilities can result from changes in anticipated milestone payments and changes in assumed discount periods and rates. These inputs are unobservable in the market and therefore categorized as level 3 inputs as defined above.

The following tables present information about the Company’s liabilities that are measured at fair value on a recurring basis, and indicates the fair value hierarchy of the valuation techniques used to determine such fair value:


	September 30, 2018		Level 1		Level 2		Level 3
Liabilities
Liability classified stock options	$	13,208	$	—	$	—	$	13,208
Warrant liabilities		—		—		—		—
Liability for contingent consideration (note 10)		523		—		—		523

Total	$	13,731	$	—	$	—	$	13,731


	December 31, 2017		Level 1		Level 2		Level 3
Liabilities
Liability classified stock options	$	3,945	$	—	$	—	$	3,945
Warrant liabilities		1,348		—		—		1,348
Liability for contingent consideration (note 10)		470						470

Total	$	5,763	$	—	$	—	$	5,763

The following table presents the changes in fair value of the Company’s warrant liabilities:


	Liability at beginning of the period		Increase (decrease) in fair value of warrants		Exercise of warrants			Liability at end of the period
Three months ended September 30, 2018	$	—	$	—	$	—		$	—
Nine months ended September 30, 2018	$	1,348	$	3,565	$	(4,913	)	$	—

The following table presents the changes in fair value of the liability classified stock options:


	Liability at beginning of the period		Increase (decrease) in fair value of liability classified stock options		Exercise of options			Unrealized foreign currency loss (gain)			Liability at end of the period
Three months ended September 30, 2018	$	11,265	$	1,791	$	(26	)	$	178		$	13,208
Nine months ended September 30, 2018	$	3,945	$	9,403	$	(102	)	$	(38	)	$	13,208

The change in fair value of liability classified stock options for the period is presented within research and development expenses and general and administrative expenses.

d. Net loss per share

The Company follows the two-class method when computing net loss per common share as the Company issued redeemable convertible Class A preferred shares in January 2016 that meet the definition of participating securities. The two-class method determines net loss per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common shareholders for the year to be allocated between common and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company’s redeemable convertible Class A preferred shares were non-cumulative, contractually entitle the holders of such shares to participate in dividends, but do not contractually require the holders of such shares to participate in losses of the Company. Accordingly, in periods in which the Company reports a net loss or a net loss attributable to common shareholders resulting from preferred share dividends, net losses are not allocated to participating securities. The Company reported a net loss attributable to common shareholders for all periods presented. The redeemable convertible Class A preferred shares were converted into common share in conjunction with the Company’s IPO.

Basic net loss per share attributable to common shareholders is computed by dividing the net loss attributable to common shareholders by the weighted average number of common shares outstanding for the year. Diluted net loss per share attributable to common shareholders is computed by adjusting net loss attributable to common shareholders to reallocate undistributed earnings based on the potential impact of dilutive securities, including outstanding redeemable convertible Class A preferred shares, stock options and warrants. Diluted net loss per share attributable to common shareholders is computed by dividing the diluted net loss attributable to common shareholders by the weighted-average number of common shares outstanding for the year, including potential dilutive common shares assuming the dilutive effect of outstanding instruments. The if-converted method is used to determine the dilutive effect of the Company’s redeemable convertible Class A preferred shares. The treasury stock method is used to determine the dilutive effect of the Company’s stock option grants and warrants. ASC 260 “Earnings Per Share” requires an adjustment to the numerator for any income or loss related to ASC 815 liability classified warrants and stock options, if dilutive, if they are presumed to be share settled. The redeemable convertible Class A preferred shares and stock options outstanding were all excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive.


	Three Months Ended September 30,						Nine months Ended September 30,
	2018			2017			2018			2017
Numerator:
Net loss attributable to common shareholders:	$	(18,751	)	$	(16,245	)	$	(45,829	)	$	(43,139	)
Deemed dividend due to beneficial conversion feature	$	—		$	—		$	—		$	(520	)

Basic	$	(18,751	)	$	(16,245	)	$	(45,829	)	$	(43,659	)
Adjustment for change in fair value of ASC 815 liability classified stock options and warrant		—			(222	)		—			(2,627	)

Diluted	$	(18,751	)	$	(16,467	)	$	(45,829	)	$	(46,286	)
Denominator:
Weighted-average common shares outstanding:
Basic		31,959,206			25,339,272			28,119,872			19,857,449
Adjustment for dilutive effect of liability classified stock options and warrants		—			9,938			—			111,553

Diluted		31,959,206			25,349,210			28,119,872			19,969,002
Net loss per common share—basic	$	(0.59	)	$	(0.64	)	$	(1.63	)	$	(2.20	)
Net loss per common share—diluted	$	(0.59	)	$	(0.65	)	$	(1.63	)	$	(2.32	)

Recent Accounting Pronouncements	9 Months Ended
Recent Accounting Pronouncements	Sep. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	3. Recent Accounting Pronouncements Initial adoption of new accounting pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The standard, as subsequently amended, is intended to clarify the principles for recognizing revenue for U.S. GAAP by creating a new Topic 606, Revenue from Contracts with Customers and it supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and supersedes some cost guidance included in Subtopic 605-35, Revenue Recognition — Construction-Type and Production-Type Contracts. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements subject to the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within each contract and identifies performance obligations that are distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to each performance obligation when (or as) the performance obligation is satisfied. For a complete discussion of accounting for license, collaboration and other revenues, see note 9, “Research, Collaboration and Licensing Agreements”. The Company adopted the new standard effective January 1, 2018, as required, using the modified retrospective approach. The adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows as of the adoption date or for the three and nine months ended September 30, 2018. Recent accounting pronouncements not yet adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10 and ASU 2018-11 (collectively, Topic 842). Topic 842 requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. The new guidance retains a distinction between finance leases and operating leases, with cash payments from operating leases classified within operating activities in the statement of cash flows. It also requires lessees to recognize all leases, including operating leases, with a term greater than 12 months on the balance sheet, for the obligations created by those leases and an offsetting right of use asset. The accounting for lessors will remain largely unchanged from the existing accounting standards. Topic 842 will be effective for fiscal years and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test, which required an entity to determine the fair value of its assets and liabilities at the impairment testing date. ASU 2017-04 is effective for public companies’ annual periods, including interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting. ASU 2017-09 provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The new guidance is effective for fiscal years beginning after December 15, 2018. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception. The ASU was issued to address the complexity associated with applying U.S. GAAP for certain financial instruments with characteristics of liabilities and equity. The ASU, among other things, eliminates the need to consider the effects of down round features when analyzing convertible debt, warrants and other financing instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. The amendments are effective for fiscal years beginning after December 15, 2018, and should be applied retrospectively. Early adoption is permitted, including adoption in an interim period. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, the objective of which is to improve the financial reporting accounting principles. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any period after issuance. For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this update. The amended presentation and disclosure guidance is required only prospectively. The Company is currently assessing the impact the adoption of the standard will have on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02), which allows companies to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017, from accumulated other comprehensive income to retained earnings. The guidance is effective in the first quarter of fiscal year, 2020, and earlier adoption is permitted. The adoption of this standard is not expected to have a significant effect on the Company’s consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share- Based Payment Accounting. The amendments in this ASU expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. This new guidance is effective for the Company in fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted. The Company is currently assessing the impact the adoption of the standard will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU eliminate, add and modify certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard is effective for the Company in fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted. The Company is currently assessing the impact the adoption of the standard will have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other — Internal-Use Software (Subtopic 350-40). This ASU addresses customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted. The amendments in this ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is evaluating the effect of adopting this new accounting guidance, but does not expect adoption will have a material impact on the Company’s consolidated financial statements. The Company has reviewed other recent accounting pronouncements and concluded that they are either not applicable to the business, or that no material effect is expected on the consolidated financial statements as a result of future adoption.

Short-Term Investments	9 Months Ended
Short-Term Investments	Sep. 30, 2018
Investments Schedule [Abstract]
Short-Term Investments	4. Short-Term Investments Short-term investments consist of guaranteed investment certificates (“GICs”) and term deposits held at financial institutions in accordance with the Company’s treasury policy. These GICs and term deposits bear interest rates of 2%-3% per annum with a maturity up to 12 months. The Company may redeem GIC investments 30 days after deposit without penalty.

Acquisition of Kairos

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Acquisition of Kairos

5. Acquisition of Kairos

Description of the Transaction

On March 18, 2016, the Company completed the acquisition of all remaining issued and outstanding shares of Kairos Therapeutics Inc. (“Kairos”), for $24,778 (C$32,257). This consideration was comprised of $23,043 (C$30,000) in common shares of the Company, and $1,733 (C$2,257) in cash, pursuant to a net working capital adjustment determined at closing. Prior to this acquisition the Company had a 19.99% equity interest in Kairos. The Company recognized IPR&D and Goodwill as part of the purchase price allocation.

Impairment Evaluation for Intangible Assets and Goodwill

All IPR&D acquired in the Kairos business combination is classified as indefinite-lived and is not currently being amortized. IPR&D becomes definite-lived upon the completion of the associated research and development efforts, and will be amortized from that time over an estimated useful life based on respective patent terms. The Company evaluates the recoverable amount of intangible assets on an annual basis and performs an annual evaluation of goodwill as of December 31 each year, unless there is an event or change in the business that could indicate impairment, in which case earlier testing is performed.

For the year ended December 31, 2016, the Company recorded an impairment charge of $768 for the discontinuance of the Co-Development program with Oxford BioTherapeutics (“OBT Co-Development”). Furthermore, for the three months ended March 31, 2017, the Company recorded an impairment charge of $1,536 related to the fair value of IPR&D recognized in relation to the Research Collaboration Agreement with OBT (“OBT Technology Swap Agreement”) as the Company chose not to advance the associated research and development projects within the research term which expired on February 11, 2017.

The Company concluded that there were no impairment indicators related to IPR&D for the three and nine months ended September 30, 2018. The following table summarizes the carrying value of IPR&D, net of impairment:


	Acquired IPR&D		Impairment			Net
Balance at December 31, 2016		20,700		(768	)		19,932
Change during the year		—		(1,536	)		(1,536	)

Balance at December 31, 2017		20,700		(2,304	)		18,396
Change during the period		—		—			—

Balance at September 31, 2018		20,700		(2,304	)		18,396

The Company performed its annual impairment test for goodwill as of December 31, 2017. As part of the evaluation of the recoverability of goodwill, the Company identified only one reporting unit to which the total carrying amount of goodwill has been assigned. As at December 31, 2017, the Company performed a qualitative assessment for impairment of goodwill, considering factors including industry and market conditions, macro-economic conditions, and the excess of market capitalization over the carrying value of the net assets at December 31, 2017, and concluded that it was not more likely than not that the fair value of the reporting unit was less than its carrying value. Consequently, the step 1 quantitative test was not required.

Liabilities

9 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Liabilities

6. Liabilities

Accounts payable and accrued liabilities consisted of the following:


	September 30, 2018		December 31, 2017
Trade payables	$	1,221	$	1,664
Accrued research expenses		6,361		4,708
Employee compensation and vacation accruals		2,055		1,981
Accrued legal and professional fees		644		308
Payable to CDRD Ventures Inc. (“CVI”) for Kairos SR&ED receivable		—		165
Other		196		227

Total	$	10,477	$	9,053

Other current liabilities consisted of the following:


	September 30, 2018		December 31, 2017
Current portion of lease inducements	$	148		147
Current portion of capital lease liability		16		10
Current income tax liability		113	$	158

Total	$	277	$	315

Other long-term liabilities consisted of the following:


	September 30, 2018		December 31, 2017
Liability for contingent consideration (note 10)	$	523	$	470
Lease inducements		239		344
Capital lease liability		46		52

Total	$	808	$	866

Warrant liabilities and long-term debt

9 Months Ended

Sep. 30, 2018

Text Block [Abstract]

Warrant liabilities and long-term debt

7. Warrant liabilities and long-term debt

a. Perceptive Debt

Description of transaction:

On June 2, 2016, the Company entered into a Credit Agreement (the “Perceptive Debt”) with Perceptive Credit Opportunities Fund L.P. and PCOF Phoenix II Fund L.P. (collectively, the “Perceptive”). The total credit facility was for $15.0 million consisting of Tranche A and Tranche B term loans for $7.5 million each. The Tranche A term loan was made available to the Company on June 2, 2016, with total net proceeds received of $6,953, after deducting commissions, legal and other administrative costs. The interest rate on the Tranche A term loan was LIBOR plus an applicable margin of 10% per annum with LIBOR to be a minimum of 1% with monthly interest payments. $225 monthly principal payments were originally scheduled to commence on June 2, 2018, with the remaining outstanding principal balance to be paid on June 2, 2020. Under the Credit Agreement, the Company had the option to settle the loan earlier, subject to certain early payment premiums. On June 6, 2017, the Company exercised its option to repay the total outstanding debt ahead of the maturity date.

On June 2, 2016, pursuant to the terms of the Perceptive Debt, the Company also issued Warrant Certificates which entitled Perceptive Credit Opportunities Fund, L.P. to purchase up to 295,009 Redeemable Convertible Class A Preferred Shares of the Company at an exercise price of $11.69 per share, with an expiry term of five years (the “Perceptive Warrants”). These warrants were classified as liabilities and were recorded at their estimated fair value as they contained a down-round provision and because the shares underlying the warrants could have obligated the Company to transfer assets to the holders at a future date under certain circumstances, such as a deemed liquidation event. Changes in fair value are recorded in the consolidated statements of loss and comprehensive loss.

The warrants were initially recorded at their fair value at issuance of $3,266 and the residual balance of the original principal, $4,234, has been recorded as long-term debt. The long-term debt was being accreted to its face value of $7,500 over the four-year term of the Perceptive Debt. On August 3, 2016, the Warrant Certificates were assigned to Perceptive Credit Holdings, LP, an affiliate of Perceptive.

Immediately prior to the consummation of the IPO, in conjunction with the conversion of the Company’s Redeemable Convertible Class A Preferred Shares into common shares (note 8c), the Redeemable Convertible Class A Preferred Share Warrants were converted on a 1.349367-for-1 basis into common share warrants to purchase up to 398,076 common shares of the Company at an exercise price of $8.67 per share. These common share warrants were classified as liabilities as they contained a down-round provision and because of the understanding that in compliance with applicable securities laws, the warrants required the issuance of registered securities upon exercise and did not sufficiently preclude an implied right to net cash settlement.

Early Repayment of the Perceptive Debt:

On June 6, 2017 (the “Repayment Date”), the Company exercised its option to repay the total outstanding debt ahead of the maturity date, pursuant to the terms of the Credit Agreement. On the Repayment Date, the Company paid $7,814 which consisted of the $7,500 outstanding principal balance, a $300 early repayment premium as well as $14 in legal fees. At the time of repayment, all liabilities and obligations of the Company and Perceptive terminated automatically. The repayment did not affect Perceptive’s rights, in connection with the Perceptive Warrants which remained outstanding until exercised.

From January 1, 2017 to June 6, 2017, the Company recorded $360 in interest expense, $248 in accretion expense and $35 in amortization of debt issue costs.


	Nine months ended September 30, 2017
Long term debt at January 1, 2017	$	4,810
Less: unamortized debt issue costs at January 1, 2017		(393	)

Long term debt at January 1, 2017, net of deferred charges		4,417
Accretion during the period up to the Repayment Date		248
Amortization of debt issue costs during the period up to the Repayment Date		35

Carrying value of long term debt on the Repayment Date, net of deferred charges		4,700
Repayment, including repayment premium and expenses		(7,814	)

Loss on debt extinguishment	$	(3,114	)

b. Warrant liabilities

Warrant liabilities from Perceptive warrants (note 7a) were $nil and $1,348 as of September 30, 2018 and December 31, 2017, respectively.

On May 10, 2018, Perceptive exercised a portion of its warrants to purchase 178,076 common shares of the Company on a cashless basis, resulting in a net issuance of 79,481 common shares to Perceptive.

On June 4, 2018, Perceptive exercised the remaining warrants to purchase 220,000 common shares of the Company on a cashless basis, resulting in a net issuance of 126,880 common shares to Perceptive.

The fair value of the Perceptive warrants increased $3,565 during the period from January 1, 2018 leading up to the exercise of these warrants.

As of September 30, 2017, the estimated fair value of the Perceptive warrants was determined using the Black-Scholes option pricing model with the following assumptions:


Dividend yield	0	%
Expected volatility	67.07	%
Risk-free interest rate	1.72	%
Expected term	5.91 years

Redeemable Convertible Class A Preferred Shares, and Shareholders' Equity

9 Months Ended

Sep. 30, 2018

Federal Home Loan Banks [Abstract]

Redeemable Convertible Class A Preferred Shares, and Shareholders' Equity

8. Redeemable Convertible Class A Preferred Shares, and Shareholders’ Equity

The number of shares and per share amounts are presented in actual amounts.

a. Authorized

On May 2, 2017, the Company’s new Articles of Incorporation were issued under which the Company has an unlimited number of voting Common Shares and Preferred Shares without par value.

Under the Company’s former Articles of Incorporation dated December 21, 2015, the Company had 6,413,265 authorized Redeemable Convertible Class A Preferred Shares.

b. Redeemable Convertible Class A Preferred Shares

The rights and preferences of the Redeemable Convertible Class A Preferred Shares were as follows:

The Class A preferred shares accrued dividends at 8% per annum non-cumulative, payable only as, when and if, declared by the Board of Directors of the Company (the “Board”). In addition, holders of the Class A preferred shares would have been entitled to receive, when and as declared by the Board, dividends in an amount equal to any dividend per common share declared by the Board on the common shares multiplied by the number of common shares that would be issued in exchange for the Class A preferred shares upon conversion.

Optional conversion: Each Class A preferred share was convertible at any time at the option of the holders into common shares, which is determined by dividing the Class A original issue price of $11.69 per share by the Class A conversion price in effect at the time of the conversion.

Mandatory conversion: Upon either a) the closing of the sale of common shares to the public at a price of at least 1.4 times the Class A original issue price of $11.69 per share in a firm-commitment underwritten public offering resulting in at least $50 million of gross proceeds, or b) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least a majority of the then outstanding Class A Preferred Share, all outstanding Class A preferred shares would have been automatically converted into common shares at the effective conversion rate. However, in the event the common share public issuance price is less than 1.5 times the Class A original issue price of $11.69 per share, then immediately prior to, and contingent upon such conversion, the Class A conversion price would be automatically adjusted to equal the lesser of (a) the quotient obtained by dividing the per share price in such public offering by 1.5 and (b) the Class A conversion price in effect as of immediately prior to such public offering.

Upon the liquidation, dissolution, reorganization or winding-up of the Company, holders of Class A preferred shares were entitled to receive, before any distribution or payment on the common shares, an amount equal to the greater of:


(i)	(a)	if such event occurred prior to January 7, 2017, 1.25 times the Class A original issue price of $11.69 per share,

	(b)	if such event occurred after January 7, 2017, 1.5 times the Class A original issue price of $11.69 per share,

under both cases plus any dividends declared but unpaid

(ii)	amount per share payable had all Class A preferred shares been converted into common shares in accordance with the conversion mechanism.

The preferences over common shareholders would have ceased to exist upon conversion of preferred shares into common shares.

Each preferred shareholder was entitled to the number of votes that such shareholder would be entitled to if such preferred shares were converted to common shares.

The Company assessed the issued Class A preferred shares for any beneficial conversion features or embedded derivatives, including the conversion option, that would require bifurcation from the applicable series of preferred shares and receive separate accounting treatment. On the date of the issuance of preferred shares, the fair value of the common shares into which the Class A preferred shares were convertible was less than the effective conversion price of such shares and, as such, there was no intrinsic value of the conversion option on the commitment date. There was a contingent beneficial conversion feature that would have become applicable if an initial public offering was completed at an issue price in excess of the conversion price within one year of the date the preferred shares were issued.

Prior to the IPO, the Company classified its preferred shares outside of permanent equity as the redemption of such shares was not solely under the control of the Company.

c. Conversion of Redeemable Convertible Class A Preferred Shares to Common Shares

Immediately prior to the consummation of the IPO, all outstanding Redeemable Convertible Class A Preferred Shares were converted into 7,098,194 common shares on a 1-for-1.349367 basis. No Redeemable Convertible Class A Preferred Shares were outstanding as of December 31, 2017.

The IPO was completed at $13.00 per share issued which resulted in an adjustment to the conversion price and a beneficial conversion feature related to the Class A preferred shares as the fair value of the common shares at the commitment date exceeded the effective conversion price at the IPO date. This beneficial conversion feature of $520 was recorded as an increase to additional paid-in capital and the resulting deemed dividend was reflected as an increase in accumulated deficit.

d. Preferred Shares

As of September 30, 2018 and December 31, 2017, no preferred shares were issued or outstanding, respectively.

The rights and preferences of the unissued Preferred Shares are as follows:

Holders of Preferred Shares will be entitled to preference with respect to payment of dividends over the Common Shares and any other shares ranking junior to the Preferred Shares with respect to payment of dividends.

In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or any other distribution of the assets of the Company among its shareholders for the purpose of winding up its affairs, the holders of the Preferred Shares will be entitled to preference over the Common Shares and any other shares ranking junior to the Preferred Shares with respect to the repayment of capital paid up on and the payment of unpaid dividends accrued on the Preferred Shares.

The Preferred Shares may also be given such other preferences over the Common Shares and any other shares ranking junior to the Preferred Shares as may be fixed by directors’ resolution as to the respective series authorized to be issued.

e. Stock-Based Compensation

Original Stock Option Plan:

On July 14, 2006, the shareholders approved an employee stock option plan (the “Original Plan”). The Original Plan provides for the granting of options to directors, officers, employees and consultants. Options to purchase common shares may be granted at an exercise price of each option equal to the last private issuance of common shares immediately preceding the date of the grant. The total number of options outstanding is not to exceed 20% of the issued common shares of the Company.

Options granted under the Original Plan are exercisable at various dates over their ten-year life. New common shares are issued when options are exercised.

For options issued to employees, the shares available for issuance under the Original Plan vest over 4 years. Shares available for issuance under the Original Plan issued to directors vest over 3 years, and shares available for issuance under the Original Plan issued to consultants and members of the Scientific Advisory Board vest immediately upon issuance.

The exercise prices of the Company’s stock options are denominated in Canadian dollars. The U.S. dollar amounts have been translated using the period end rate or the average rate for the period, as applicable, and have been provided for information purposes.

New Stock Option Plan:

On April 10, 2017, the Company’s shareholders approved a new stock option plan, which became effective immediately prior to the consummation of the IPO. This plan allowed for the grant of options to directors, officers, employees and consultants in U.S. or Canadian dollars, and also permitted the Company to grant incentive stock options (“ISOs”), within the meaning of Section 422 of the Code, to its employees. On June 7, 2018, the Company’s shareholders approved an amendment and restatement of this plan (this plan, as amended and restated, the “New Plan”), which includes an article that allows the Company to grant restricted shares, restricted share units (“RSU”) and other share-based awards, in addition to options. All restricted share, RSU or other share-based award terms and conditions will be specified in future grant agreements. To date, no restricted shares, RSUs or other share-based awards have been granted.

The maximum number of common shares reserved for issuance under the New Plan is 5,686,097, which includes 3,686,097 shares issuable upon exercise of options outstanding as of March 31, 2018. Beginning in 2019 and ending in 2028, this maximum number may be increased on the first day of each calendar year by up to 4.0% of the number of outstanding shares on the last day of the immediately preceding calendar year. ISOs may be granted with respect to a maximum fixed amount equal to 20% of the shares reserved for issuance under the New Plan as of June 7, 2018.

All options granted under the New Plan will have an exercise price determined and approved by the Board on the date of the grant, which shall not be less than the market price of the common shares at such time. For the purposes of the New Plan, the market price of a common share shall be the closing sale price of a share on the grant date reported by the stock exchange with the greatest trading volume or, if such day is not a trading day, the closing sale price reported for the immediately preceding trading day. The Company may convert a market price denominated in Canadian currency into United States currency and vice versa and such converted amount shall be the market price.

An option shall be exercisable during a period established by the Board which shall commence on the date of the grant and shall terminate not later than ten years after the date of the granting of the option. The New Plan provides that the exercise period shall automatically be extended if the date on which it is scheduled to terminate shall fall during a black-out period. In such cases, the extended exercise period shall terminate on the tenth business day after the last day of the black-out period, provided that the exercise period shall in no case be extended beyond the tenth anniversary of the date the option was granted. All options shall vest in accordance with the terms of their grant agreements.

The following table summarizes the Company’s stock options granted in Canadian dollars under the Original Plan and the New Plan:


	Number of Options			Weighted- Average Exercise Price (C$)		Weighted- Average Exercise Price ($)		Weighted- Average Contractual Term (years)		Aggregate intrinsic value (C$)		Aggregate intrinsic value ($)
Outstanding, December 31, 2017		2,263,712			14.24		11.35		7.53		1,455		1,160
Granted		285,025			16.43		12.76
Expired		(5,395	)		13.60		10.56
Exercised		(79,824	)		8.80		6.83
Forfeited		(39,577	)		18.58		14.43

Outstanding, September 30, 2018		2,423,941			14.58		11.27		7.26		15,035		11,614

The following table summarizes the Company’s stock options granted in U.S. dollars under the New Plan:


	Number of Options			Weighted- Average Exercise Price ($)		Weighted- Average Contractual Term (years)		Aggregate intrinsic value ($)
Outstanding, December 31, 2017		636,595			9.70		9.46		15
Granted		753,783			12.79
Expired		—			—
Exercised		—			—
Forfeited		(7,600	)		9.85

Outstanding, September 30, 2018		1,382,778			11.34		9.16		6,088

The Company received cash proceeds of $581 (C$750) from stock options exercised.

The stock options expire at various dates from February 5, 2019 to August 14, 2028.

The estimated fair value of options granted to officers, directors, employees and consultants is amortized over the vesting period. Stock-based compensation expense for equity classified instruments, as well as the financial statement impact of the periodic revaluation of liability classified equity instruments (note 2c), is recorded in research and development expenses, general and administration expenses and finance expense (income) as follows:


	Three Months Ended September 30,					Nine months Ended September 30,
	2018		2017			2018		2017
Research and development expenses:
Stock-based compensation for equity classified instruments	$	691	$	684		$	1,724	$	730
Change in fair value of liability classified equity instruments		496		(507	)		1,966		419

	$	1,187	$	177		$	3,690	$	1,149
General and administrative expenses:
Stock-based compensation for equity classified instruments	$	1,093	$	889		$	2,758	$	1,785
Change in fair value of liability classified equity instruments		1,304		578			5,342		345

	$	2,397	$	1,467		$	8,100	$	2,130
Finance expense (income):
Stock-based compensation for equity classified instruments	$	—	$	1		$	1	$	—
Change in fair value of liability classified equity instruments		39		(35	)		152		(308	)

	$	39	$	(34	)	$	153	$	(308	)

The estimated fair value of stock options granted in Canadian dollars under the Original Plan and the New Plan was determined using the Black-Scholes option pricing model with the following weighted-average assumptions:


	Nine months Ended September 30,
	2018			2017
Dividend yield		0	%		0	%
Expected volatility		66.0	%		66.4	%
Risk-free interest rate		2.17	%		1.47	%
Expected average life of options		5.91 years			6.61 years

The estimated fair value of stock options granted in U.S. dollars under the New Plan was determined using the Black-Scholes option pricing model with the following weighted-average assumptions:


	Nine months Ended September 30,
	2018			2017
Dividend yield		0	%		0	%
Expected volatility		66.0	%		65.9	%
Risk-free interest rate		2.64	%		1.84	%
Expected average life of options		5.87 years			5.89 years

Expected Volatility — Volatility is a measure of the amount by which a financial variable such as a share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. As the Company does not yet have sufficient history of its own volatility, the Company has identified several public entities of similar complexity and stage of development and calculates historical volatility using the volatility of these companies.

Risk-Free Interest Rate — This rate is from the Government of Canada and U.S. Federal Reserve marketable bonds for the month prior to each option grant during the year, having a term that most closely resembles the expected life of the option.

Expected Term — This is the period of time that the options granted are expected to remain unexercised. Options granted have a maximum term of ten years. The Company estimates the expected life of the option term to be six years. The Company uses the simplified method to calculate the average expected term, which represents the average of the vesting period and the contractual term.

Share Fair Value — Options granted after the Company’s IPO, are issued at the fair market value of the Company’s stock at the date the grant is approved by the Board. Before the IPO, the Company granted stock options at exercise prices not less than the fair value of its common shares as determined by the Board, with input from management. Management estimated the fair value of its common shares based on a number of objective and subjective factors, including the most recently available valuation of common shares prepared by independent valuation specialists, external market considerations affecting the biotechnology industry and the historic prices at which the Company sold common shares.

The weighted-average Black-Scholes option pricing assumptions for liability classified stock options are as follows:


	September 30, 2018			September 30, 2017
Dividend yield		0	%		0	%
Expected volatility		66.5	%		66.5	%
Risk-free interest rate		1.55	%		1.55	%
Expected average option term		5.89 years			5.89 years
Number of liability classified stock options outstanding		1,441,163			1,525,286

At September 30, 2018, the unamortized compensation expense related to unvested options was $8,624 (C$11,163). The remaining unamortized compensation expense as of September 30, 2018 will be recognized over a weighted-average period of 2.0 years.

f. Employee Stock Purchase Plan:

On April 10, 2017, the employee stock purchase plan, (“ESPP”), was approved by the shareholders of the Company and became effective immediately prior to the consummation of the IPO. On June 7, 2018, certain amendments to the ESPP were approved by shareholders. Prior to these amendments, the ESPP allowed eligible employees to acquire common shares at a discounted purchase price of 85% of the market value of the Company’s common shares on the purchase date. The ESPP, as amended, allows eligible employees to acquire common shares at a discounted purchase price of the lesser of (i) 85% of the market price of a common share on the first day of the applicable purchase period and (ii) 85% of the market price of a common share on the purchase date. The ESPP qualifies as an “employee stock purchase plan” within the meaning of Section 423 of the Code for employees who are United States taxpayers.

The ESPP is implemented through a series of offerings under which eligible employees are granted rights to purchase the Company’s common shares at the end of specified purchase periods at a discounted purchase price. The Company currently holds offerings consisting of a single six-month purchase period commencing on January 1 and July 1 of each calendar year, with a single purchase date at the end of the purchase period on June 30 and December 31 of each calendar year. The first six-month purchase period commenced on July 1, 2017.

Eligible employees are able to contribute up to 15% of their gross base earnings for purchases under the ESPP through regular payroll deductions. Purchases of shares under the ESPP are limited for each employee at $25 worth of the Company’s common shares (determined using the lesser of (i) the market price of a common share on the first day of the applicable purchase period and (ii) the market price of a common share on the purchase date) for each year such purchase right is outstanding.

Common shares purchased under the ESPP will be issued from treasury at a purchase price equal to 85% of the applicable market price of a common share, all in accordance with applicable laws and the terms and conditions of the ESPP. For the purposes of the ESPP, the market price of a common share is defined as the closing sale price of a share on such date reported by the stock exchange with the greatest trading volume or, if such day is not a trading day, the closing sale price reported for the immediately preceding trading day.

The number of common shares reserved for issuance under the ESPP shall not exceed 272,350 common shares, plus the number of common shares that are automatically added on January 1st of each year, commencing on (and including) January 1, 2018 and ending on (and including) January 1, 2027, in an amount equal to the lesser of (i) 1% of the total number of common shares issued and outstanding on December 31st of the preceding calendar year, and (ii) 419,000 common shares. As this plan is considered compensatory, a charge of $68 has been recorded to research and development expense and general and administrative expense accounts for the difference between the fair market value and the discounted price. As of September 30, 2018, total amount contributed by the ESPP participants is $113.

Research, Collaboration and Licensing Agreements

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Research, Collaboration and Licensing Agreements

9. Research, Collaboration and Licensing Agreements

The Company has entered into a number of collaboration and licensing agreements which are under the scope of ASC 606, under which it licensed its therapeutic platforms to its strategic partners. The terms of these arrangements typically include one or more of the following types of payments to the Company:

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non-refundable, upfront license and platform technology access fees;

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research, development and regulatory milestone payments;

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commercial milestone payments; and

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royalties on net sales of licensed products.

In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements, the Company performs the following steps: (i) identification of the promised deliverables in the contract; (ii) determination of whether the promised deliverables are performance obligations including whether they are distinct; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations based on the stand-alone selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract, which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success.

Licenses of intellectual property including platform technology access: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from non-refundable, upfront fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses where licenses are not distinct from other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, upfront fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition.

Milestone payments: At the inception of each arrangement that includes research, development or regulatory milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license, collaboration and other revenues and earnings in the period of adjustment. The process of successfully achieving the criteria for the milestone payments is highly uncertain. Consequently, there is a significant risk that the Company may not earn all of the milestone payments from each of its strategic partners.

Research and development milestones in the Company’s collaboration agreements may include some, but not necessarily all, of the following types of events:

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completion of preclinical research and development work leading to selection of product candidates;

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initiation of Phase 1, Phase 2 and Phase 3 clinical trials; and

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achievement of certain other technical, scientific or development criteria.

Regulatory milestone payments may include the following types of events:

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filing of regulatory applications for marketing approval in the United States, Europe or Japan, including Investigational New Drug (“IND”) applications and Biologics License Application (“BLA”); and

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marketing approval in major markets, such as the United States, Europe or Japan.

Royalties and commercial milestones: For arrangements that include sales-based royalties, including commercial milestone payments based on pre-specified level of sales, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Achievement of these royalties and commercial milestones may solely depend upon performance of the licensee. Since inception to date, the Company has not recognized any royalty revenue or commercial milestone from any of its out-licensing arrangements.

Research support payments: Payments by the licensees in exchange for research activities performed by the Company on behalf of the licensee are recognized upon performance of such activities at rates consistent with prevailing market rates.

If the expectation at contract inception is such that the period between payment by the licensee and the completion of related performance obligations will be one year or less, the Company assumes that the contract does not have a significant financing component.

Strategic Partnership Revenue

The following table presents summarized revenue recognized from the Company’s strategic partnerships.


	Three Months Ended September 30,				Nine months Ended September 30,
	2018		2017		2018		2017
Merck:
Research support payments	$	—	$	—	$	—	$	1
Lilly:
Research support payments		—		—		—		15
Milestone revenue		2,000		—		2,000		—
Daiichi Sankyo:
Research support payments		—		119		—		665
Milestone revenue		—		—		—		1,000
Upfront technology access fee		—		—		18,000		—
Celgene:
Option exercise fee		—		—		4,000		—
Other		54		—		94		10

	$	2,054	$	119	$	24,094	$	1,691

As at January 1, 2018 and September 30, 2018, contract assets and contract liabilities from research, collaboration and licensing agreements were $nil.

Research and License Agreement with Merck Sharp & Dohme Research Ltd. (“Merck”)

On August 22, 2011, the Company entered into a Research and License Agreement with Merck providing Merck a worldwide license to develop and commercialize novel bispecific antibodies generated through use of the Company’s Azymetric platform toward certain exclusive therapeutic targets. Both companies will collaborate to advance the therapeutic platforms, with Merck working to progress the bispecific therapeutic antibody candidates through clinical development and commercialization. No joint development activities to advance the therapeutic platforms have occurred since inception and Merck no longer has a right to such joint activities. In 2013, Merck was also provided with a limited, non-exclusive license to EFECT, to be used together with the Azymetric platform for developing products.

On December 3, 2014, the Company and Merck jointly amended the agreement, including amending certain terms and exclusivities contained therein. Under the terms of the amended agreement, the Company receives funding for certain internal and external research costs incurred in the project. Additionally, the amendment removed a $2.0 million research milestone from the total milestones the Company would be eligible to receive over the life of the agreement. The new research funding terms were priced at market rate, and the Company concluded that the original agreement was not materially modified. Accordingly, the amendments did not impact the determination of units of accounting or the allocation of the arrangement consideration.

Upon the execution of the agreement, the Company received a one-time, non-refundable upfront payment of $1.25 million. Over the life of the agreement, the Company is eligible to receive payments up to $190.75 million, comprised of the $1.25 million upfront payment, $3.5 million for research phase successes, up to $6.0 million for completion of IND-enabling studies, up to $66.0 million for development milestones and up to $114.0 million for commercial milestones. In addition, the Company is eligible to receive tiered royalty payments on sales of products. Merck will have exclusive worldwide commercialization rights to products derived from the agreement. The events and conditions resulting in payments for research, development and commercial milestones solely depend on Merck’s performance.

The Company assessed this arrangement in accordance with ASC 606 and concluded that the contract counterparty, Merck, is a customer. The Company identified the following promised goods and services at the inception of the Merck agreement: (1) the research license, (2) the commercial license, (3) the transfer of the Company’s platform technology (Azymetric) (4) research services and technical assistance in connection with the transfer of platform technology to Merck, and (5) research activities to be performed on behalf of Merck. The Company concluded that the licenses and platform technologies together are distinct. Accordingly, the deliverables (1) through (4) were considered as a single performance obligation and the upfront payment of $1.25 million has been allocated to this performance obligation. The upfront payment was recorded as deferred revenue and recognized into revenue on a straight-line basis from October 1, 2011 through June 30, 2012, the period over which the Company performed the procedures for transferring the Company’s know-how and technology and related technical assistance during the transfer process. The research activities to be performed on behalf of Merck after the transfer of the technology are also determined to have stand-alone value as Merck or another third party could provide these services without the Company’s assistance. The revenue from this deliverable is recognized upon performance of such activities at rates consistent with prevailing market rates.

In order to evaluate the appropriate transaction price, the Company determined that the upfront amount constituted the entirety of the consideration to be included in the transaction price and to be allocated to the performance obligations based on the Company’s best estimate of their relative stand-alone selling prices. The Company estimated the best estimate of selling price of the licenses and technology platform based on comparable license and collaboration arrangements. The best estimate of selling price for the other deliverables was estimated using internal estimates of cost to perform the specific services plus a normal profit margin for providing the services.

At execution, the transaction price included only the $1.25 million upfront consideration received. None of the research and development milestones has been included in the transaction price, as all milestone amounts were fully constrained. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestones is outside the control of the Company and contingent upon success in future clinical trials and the licensee’s efforts. Any consideration related to sales-based milestones (including royalties) will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to Merck and therefore have also been excluded from the transaction price. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

The consideration otherwise allocable to delivered units is limited to the amount that is not contingent on the delivery of additional items or fulfillment of other performance conditions. Consequently, the arrangement consideration related to the research activities to be performed on behalf of Merck after the transfer of the technology was excluded from the allocation arrangement consideration because the consideration and performance are contingent upon Merck requesting performance of the services and these services are priced at an estimated fair value.

The agreement contains customary termination rights for Merck and the Company including the right for Merck to terminate the agreement in its sole discretion with advance notice to the Company. The agreement will terminate on the later of: (a) the expiry of the last patent covering a Merck licensed product excluding methods of making the product; or (b) the expiry of the royalty payment obligations by Merck. During the research term, the agreement will terminate if the antibodies do not achieve all the research milestones or if Merck elects to not further develop the antibodies after the research term.

The Company received and recorded non-refundable milestone payments from Merck in the amounts of $2.0 million and $1.5 million on September 20, 2012 and April 22, 2013, respectively. These milestone payments were received upon the achievement of certain development activities during the course of the research program and were recorded as revenue upon achievement of the milestone as the Company had no remaining performance obligations under the arrangement. No additional milestone payments or royalties have been received to date.

During the nine months ended September 30, 2018, the Company recorded $nil in research support payments from Merck, under the terms of the amended agreement.

Licensing and Collaboration Agreement with Eli Lilly and Company (“Lilly”)

On December 17, 2013, the Company entered into a Licensing and Collaboration Agreement with Lilly to develop novel bispecific antibody therapeutics using the Company’s proprietary Azymetric platform. The Company will apply its Azymetric platform in combination with Lilly’s proprietary targets to create novel bispecific antibodies which Lilly will have the right to develop and commercialize worldwide.

Upon the execution of the agreement, the Company received a one-time, non-refundable upfront payment of $1.0 million. Over the life of the agreement, the Company will receive funding for internal and external research costs incurred on behalf of Lilly on the project, and is eligible to receive potential milestone payments for each product, comprised of $1.0 million for research phase success, $2.0 million for IND submission, $8.0 million for development milestones and up to $40.0 million for commercial milestones. In addition, the Company is eligible to receive tiered royalty payments on the sale of products. Lilly will have exclusive worldwide commercialization rights to products derived from the collaboration. The Company determined that other than the research milestone, the events and conditions resulting in payments for development and commercial milestones solely depend on Lilly’s performance.

The Company assessed this arrangement in accordance with ASC 606 and concluded that the contract counterparty, Lilly, is a customer. The Company identified the following promised goods and services at the inception of the Lilly agreement: (1) the research license, (2) the commercial license, (3) the transfer of the Company’s platform technology (Azymetric), (4) the research services and technical assistance to be provided by the Company in connection with the transfer of intellectual property to Lilly, and (5) research activities to be performed on behalf of Lilly. The Company concluded that the licenses and platform technology together are distinct. Accordingly, the deliverables (1) through (4) were considered as a single performance obligation and the upfront payment of $1.0 million has been allocated to this performance obligation. The payment was recorded as deferred revenue and recognized into revenue on a straight-line basis from December 31, 2013 to June 30, 2014, the period over which the Company performed the procedures for transferring the Company’s know-how and technology and related technical assistance during the transfer process. The research activities to be performed on behalf of Lilly after the transfer of the technology are also determined to be distinct as Lilly or another third party could provide these services without the Company’s assistance. The revenue from this deliverable is recognized upon performance of such activities at rates consistent with prevailing market rates.

At execution, the transaction price included only the $1.0 million upfront consideration received. None of the research and development milestones has been included in the transaction price, as all milestone amounts were fully constrained. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestones is outside the control of the Company and contingent upon success in future clinical trials and the licensee’s efforts. Any consideration related to sales-based milestones (including royalties) will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to Lilly and therefore have also been excluded from the transaction price. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

The consideration otherwise allocable to delivered units is limited to the amount that is not contingent on the delivery of additional items or fulfillment of other performance conditions. Consequently, the arrangement consideration related to the research activities to be performed on behalf of Lilly after the transfer of the technology was excluded from the allocation arrangement consideration because the consideration and performance are contingent upon Lilly requesting performance of the services and these services are priced at an estimated fair value.

The agreement contains customary termination rights for Lilly and the Company including the right for Lilly to terminate the agreement in its sole discretion with advance notice to us. The agreement will terminate on a product-by-product and country-by-country basis upon the later of the product being no longer covered by certain patents related to the Lilly licensed product, or 10 years after the first commercial sale of the Lilly licensed product in such a country.

On December 11, 2015, the Company recorded non-refundable substantive research milestone revenue from Lilly in the amount of $1.0 million upon the achievement of certain research activities during the course of the research program. Subsequently, on August 31, 2018, the Company recorded a non-refundable fee of $2.0 million which was received upon Lilly’s filing of IND application to the FDA for a bispecific antibody enabled by the Azymetric platform.

During the nine months ended September 30, 2018, the Company recorded $nil in research support revenue from Lilly.

Licensing and Collaboration Agreement with Lilly

On October 22, 2014, the Company entered into a second Licensing and Collaboration Agreement with Lilly to develop novel bispecific antibody therapeutics using the Company’s proprietary Azymetric platform. This agreement did not alter or amend the initial agreement entered into on December 17, 2013. Under the terms of this agreement, the Company will apply its Azymetric platform in combination with Lilly’s proprietary targets to create novel bispecific antibodies which Lilly will develop and commercialize. In 2017 Lilly nominated a bispecific antibody from this agreement for preclinical development and discontinued the research of two other bispecific antibodies due to strategic portfolio realignment in those particular disease areas. Each of the two agreements with Lilly were negotiated independently and the deliverables covered by the respective contracts are unrelated to one another as they cover different product candidates. Accordingly, the second Licensing and Collaboration Agreement with Lilly has been accounted for as a new arrangement.

The Company is eligible to receive potential milestone payments totaling up to $125.0 million, comprised of up to $2.0 million for research success milestone, up to $8.0 million for IND submission milestones, up to $20.0 million for development milestones and up to $95.0 million for commercial milestones. In addition, the Company is eligible to receive tiered royalty payments on the sale of products. Lilly will have exclusive worldwide commercialization rights to products derived from the collaboration. No license, research, development and commercial milestones or royalty payments have been received to date. The Company determined that other than the research milestone, the events and conditions resulting in payments for development and commercial milestones solely depend on Lilly’s performance.

The Company assessed this arrangement in accordance with ASC 606 and concluded that the contract counterparty, Lilly, is a customer. At execution, there was no upfront fee received. None of the research and development milestones has been included in the transaction price, as all milestone amounts were fully constrained. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestones is outside the control of the Company and contingent upon success in future clinical trials and the licensee’s efforts. Any consideration related to sales-based milestones (including royalties) will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to Lilly and therefore have also been excluded from the transaction price. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

The agreement contains customary termination rights for Lilly and the Company with advance notice to the Company, in addition to (i) both Lilly and the Company have certain rights to terminate on a program by program basis due to scientific failure, (ii) Lilly can terminate the agreement on a target pair by target pair basis in its sole discretion after the payment of the initial license fee for such a target pair, (iii) Lilly can terminate the agreement or specific target pairs due to an incurable material breach by the Company, and under specific conditions, Lilly shall have certain rights to continue the research, development and commercialization of products with their license payment, milestone and royalty obligations reduced by 50% and (iv) Lilly shall have the right to terminate the agreement or specific target pairs in the event of the Company undergoing a change of control, while retaining certain rights. If the affected research programs have not completed specific research stages, Lilly’s obligations to the license payments, milestones and royalties shall be reduced in a tiered fashion ranging from 25-75%.

On December 1, 2016, the Company recorded a non-refundable fee of $2.0 million which was received upon achievement of a critical success criteria point milestone under the research plan.

No other research, development or commercial milestone payments or royalties have been received to date.

Licensing and Collaboration Agreement with Celgene Corporation & Celgene Alpine Investment Co. LLC (“Celgene”)

On December 23, 2014, the Company entered into an agreement with Celgene to develop novel bispecific antibody therapeutics using the Company’s proprietary Azymetric platform. The Company will apply its Azymetric platform in combination with Celgene’s proprietary targets to create novel bispecific antibodies for which Celgene has an option to develop and commercialize a certain number of products (“Commercial License Option”).

Upon the execution of the Agreement, the Company received a one-time, non-refundable payment of $8.0 million. Over the life of the agreement, the Company is eligible to receive potential milestone payments totaling up to $164.0 million per each therapeutic candidate, comprised of a payment of $7.5 million upon Celgene exercising a Commercial License Option, up to $101.5 million for development milestones and up to $55.0 million for commercial milestones. In addition, the Company is eligible to receive tiered royalties calculated upon the global net sales of the resulting products. Celgene will have exclusive worldwide commercialization rights to products derived from the agreement if Celgene elects to exercise a Commercial License Option for each product. The Company determined that, the events and conditions resulting in payments for research, development and commercial milestones solely depend on Celgene’s performance.

The Company assessed this arrangement in accordance with ASC 606 and concluded that the contract counterparty, Celgene, is a customer. The Company identified the following promised goods and services at the inception of the Celgene agreement: (1) the non-exclusive research license, (2) the transfer of the Company’s platform technology (Azymetric) and relevant know-how, and (3) technical assistance if required by Celgene in connection with the transfer of technology. The Company concluded that the license and platform technology together are distinct. Accordingly, all the deliverables are considered a single performance obligation and the upfront payment of $8.0 million has been allocated to this performance obligation. The upfront payment was recognized as revenue ratably over the six-month period ended June 30, 2015, the period during which the Company transferred its technical know-how and technology to Celgene.

At execution, the transaction price included only the $8.0 million upfront consideration received. None of the research and development milestones has been included in the transaction price, as all milestone amounts were fully constrained. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestones is outside the control of the Company and contingent upon success in future clinical trials and the licensee’s efforts. Any consideration related to sales-based milestones (including royalties) will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to Celgene and therefore have also been excluded from the transaction price. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur. The Company concluded that, at the inception of the agreement, Celgene’s option to obtain a Commercial License did not represent a deliverable because it is a substantive option and does not contain a significant or incremental discount.

The agreement contains customary termination rights for Celgene and the Company including the right of Celgene to terminate the agreement in its entirety or on a product-by-product basis in its sole discretion with advance notice to the Company. The agreement will terminate on a product-by-product and country-by-country basis upon the later of the expiration of the last-expiring patent related to the Celgene licensed product, or 10 years after the first commercial sale of the Celgene licensed product in such a country. If Celgene does not exercise its option for the commercial license, the agreement will terminate on a product-by-product basis for which the option was not exercised.

On April 22, 2018, Celgene exercised its right to increase the number of potential products it can develop and commercialize from eight to ten and extended the research program term by 24 months until April 2020, for which the Company received an expansion fee of $4.0 million and is eligible to receive up to $164.0 million per additional product in development and commercial milestones plus royalties on worldwide sales in accordance with the terms of the licensing and collaboration agreement. The research period extension commenced on April 22, 2018.

No development or commercial milestone payments or royalties have been received to date.

Collaboration and License Agreement with GlaxoSmithKline Intellectual Property Development Ltd. (“GSK”)

On December 1, 2015, the Company entered into a Collaboration and License Agreement with GSK for the research, development, and commercialization of novel Fc-engineered monoclonal and bispecific antibody therapeutics, which have been optimized for specific therapeutic effects. The Company and GSK will collaborate to further develop the Company’s Effector Function Enhancement and Control Technology (EFECT) platform through the design, engineering, and testing of novel engineered Fc domains tailored to induce specific antibody-mediated immune responses.

At the conclusion of the research collaboration, both GSK and the Company will have the right to develop and commercialize monoclonal and bispecific antibody candidates that incorporate the Company’s optimized immune-modulating Fc domains.

Under the terms of the agreement, GSK will have the right to develop a minimum of four products across multiple disease areas, and the Company will be eligible to receive research, development, and commercial milestones of up to $110.0 million for each product. In addition, the Company is eligible to receive tiered sales royalties. Under the terms of the agreement, each party is liable for their own internal and external research costs incurred in the project. Furthermore, the Company will have the right to develop up to four products with the intellectual property arising from the collaboration without any royalty or milestone payment to GSK. The Company determined that, the events and conditions resulting in payments for research, development and commercial milestones solely depend on GSK’s performance.

The Company assessed this arrangement in accordance with ASC 606 and concluded that the contract counterparty, GSK, is a customer. At execution, there was no upfront fee received. None of the research and development milestones has been included in the transaction price, as all milestone amounts were fully constrained. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestones is outside the control of the Company and contingent upon success in future clinical trials and the licensee’s efforts. Any consideration related to sales-based milestones (including royalties) will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to GSK and therefore have also been excluded from the transaction price. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

The agreement contains customary termination rights for GSK and the Company including the right for GSK to terminate the agreement in its sole discretion with advance notice to us, after the research period has advanced beyond a specified stage, and allowing the parties to terminate the agreement by mutual agreement during the research period. If GSK elects not to advance any product into research and development, the agreement will terminate at the end of the research period. If GSK elects to advance one or more products incorporating intellectual property generated under the research period for further research and development, the agreement will terminate on a product-by-product and country-by-country basis upon the latter of the product being no longer covered by a patent related to the GSK licensed product, or 10 years after the first commercial sale of the GSK licensed product in such a country.

No development or commercial milestone payments or royalties have been received to date.

Platform Technology Transfer and License Agreement with GSK

On April 21, 2016, the Company entered into a Platform Technology Transfer and License Agreement with GSK for the research, development, and commercialization of novel bispecific antibodies enabled using the Company’s Azymetric platform. Each of the two agreements with GSK were negotiated independently and the deliverables covered by the respective contracts utilize different therapeutic platforms and are unrelated to one another. Accordingly, the Platform Technology and License Agreement with GSK has been accounted for as a new arrangement.

Upon execution of the agreement, the Company received a technology access fee of $6.0 million on May 3, 2016. The Company is also eligible to receive up to $30.0 million in research milestone payments; up to $152.0 million in development milestone payments; and up to $720.0 million in commercial sales milestone payments. In addition, the Company is entitled to receive tiered royalties on potential sales. The Company determined that, the events and conditions resulting in payments for research, development and commercial milestones solely depend on GSK’s performance.

The Company assessed this arrangement in accordance with ASC 606 and concluded that the contract counterparty, GSK, is a customer. The Company identified the following promised goods and services at the inception of the GSK agreement: (1) the non-exclusive research license, (2) commercial license (3) transfer of the Company’s platform technology (Azymetric) and relevant know-how, (4) technical assistance if required by GSK in connection with the transfer of technology, and (5) the obligation to provide future technology improvement and updates, when and if available. The Company concluded that the licenses and platform technologies together are distinct. Accordingly, deliverables (1) through (4) were considered as a single performance obligation and the technology access fee of $6.0 million has been allocated to this performance obligation and has been recognized as revenue upon completion of the transfer of the Company’s technology and technical know-how to GSK.

In order to evaluate the appropriate transaction price, the Company determined that the upfront amount constituted the entirety of the consideration to be included in the transaction price and to be allocated to the performance obligations based on the Company’s best estimate of their relative stand-alone selling prices. The Company estimated the best estimate of selling price of the licenses and technology platform based on comparable license and collaboration arrangements. The Company concluded that the best estimate of selling price for the obligation to deliver future technology improvements and updates was a nominal amount, as the Company has no intention of performing and has made no commitment to perform or provide additional update work on the applicable technology platform. Accordingly, no arrangement consideration was allocated to this deliverable.

At execution, the transaction price included only the $6.0 million upfront consideration received. None of the research and development milestones has been included in the transaction price, as all milestone amounts were fully constrained. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestones is outside the control of the Company and contingent upon success in future clinical trials and the licensee’s efforts. Any consideration related to sales-based milestones (including royalties) will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to GSK and therefore have also been excluded from the transaction price. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

The agreement contains customary termination rights for GSK and the Company including the right for GSK to terminate the agreement in its sole discretion with advance notice to the Company. Termination provisions allow for GSK to terminate the agreement or specific antibody sequence pairs due to an incurable material breach by the Company, and under specific conditions, GSK shall have certain rights to continue the research, development, and commercialization of products with their license payment, milestone, and royalty obligations reduced by 50%.

No research, development or commercial milestone payments or royalties have been received to date.

Collaboration and Cross License Agreement with Daiichi Sankyo, Co., Ltd. (“Daiichi Sankyo”)

On September 26, 2016, the Company entered into a Collaboration and Cross License Agreement with Daiichi Sankyo for the research, development, and commercialization of novel bispecific antibodies enabled using the Company’s Azymetric and EFECT platforms. Additionally, the Company will license immuno-oncology antibodies from Daiichi Sankyo, with the right to research, develop and commercialize multiple products globally in exchange for royalties on product sales. Under the agreement, Daiichi Sankyo will have the option to develop and commercialize a single bispecific immuno-oncology therapeutic.

Upon execution of the agreement, the Company received a technology access fee of $2.0 million. The Company is also eligible to receive up to $66.9 million in research and development milestone payments and commercial license option; and up to $80.0 million in commercial sales milestone payments. In addition, the Company is eligible to receive tiered royalties on potential product sales. The Company determined that other than a research milestone for $1.0 million, the events and conditions resulting in payments for research, development and commercial milestones solely depend on Daiichi Sankyo’s performance.

The Company assessed this arrangement in accordance with ASC 606 and concluded that the contract counterparty, Daiichi Sankyo, is a customer. The Company identified the following promised goods and services at the inception of the Daiichi Sankyo agreement: (1) the research license, (2) the transfer of the Company’s platform technologies (Azymetric and EFECT) and relevant know-how, and (3) research activities to be performed on behalf of Daiichi Sankyo. The Company concluded that the licenses and platform technologies together are distinct and the licenses are functional intellectual property because the Company’s platform technologies are not expected to substantively change during the licensing period. Accordingly, the deliverables (1) and (2) were considered as a single performance obligation and the technology access fee of $2.0 million was allocated to this performance obligation and was recognized as revenue at a point in time upon delivery of the licenses and transfer of the relevant technology. The research activities to be performed on behalf of Daiichi Sankyo after the transfer of the technology are also determined to be distinct as Daiichi Sankyo or another third party could provide these services without the Company’s assistance. The revenue to be received from Daiichi Sankyo from delivery of these services is recognized upon performance of such activities at rates consistent with prevailing market rates. The Company concluded that, at the inception of the agreement, Daiichi Sankyo’s option to obtain a Commercial License did not represent a deliverable because it is a substantive option and did not contain a significant or incremental discount.

At execution, the transaction price included only the $2.0 million upfront consideration received. None of the research and development milestones has been included in the transaction price, as all milestone amounts were fully constrained. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestones is outside the control of the Company and contingent upon success in future clinical trials and the licensee’s efforts. Any consideration related to sales-based milestones (including royalties) will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to Daiichi Sankyo and therefore have also been excluded from the transaction price. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

The consideration otherwise allocable to delivered units is limited to the amount that is not contingent on the delivery of additional items or fulfillment of other performance conditions. Consequently, the arrangement consideration related to the research activities to be performed on behalf of Daiichi Sankyo after the transfer of the technology was excluded from the allocation arrangement consideration because the consideration and performance are contingent upon Daiichi Sankyo requesting performance of the services and these services are priced at an estimated fair value.

The agreement contains customary termination rights for Daiichi Sankyo and the Company including the right for Daiichi Sankyo to terminate the rights to the Company’s therapeutic platforms in its sole discretion with advance notice to the Company and for the Company to terminate the Company’s rights to Daiichi Sankyo’s antibodies with advance notice to Daiichi Sankyo. The agreement shall terminate, with respect to Daiichi Sankyo’s license, if Daiichi Sankyo fails to exercise its option or, on a product-by-product basis, until expiration of Daiichi Sankyo’s royalty obligations.

On June 26, 2017, the Company recorded non-refundable milestone revenue from Daiichi Sankyo in the amount of $1.0 million upon the achievement of a research milestone.

During the nine months ended September 30, 2018, the Company recorded $nil in research support revenue from Daiichi Sankyo (2017: $665).

Second License Agreement with Daiichi Sankyo

In May 2018, the Company entered into a second license agreement with Daiichi Sankyo to research, develop and commercialize two bispecific antibodies generated through the use of the Azymetric and EFECT platforms. Under the terms of the agreement, the Company granted Daiichi Sankyo a worldwide, royalty-bearing, antibody sequence pair-specific, exclusive license to research, develop and commercialize certain products. Under the agreement, Daiichi Sankyo will be solely responsible for the research, development, manufacturing and commercialization of the products.

Upon execution of the agreement, the Company received a non-refundable upfront technology access fee of $18.0 million. The Company is also eligible to receive up to $126.7 million in development milestone payments and up to $340.0 million in commercial milestone payments. In addition, the Company is eligible to receive tiered royalties ranging from the low single digits up to 10% on product sales, with the royalty term being, on a product-by-product and country-by-country basis, either (i) for as long as there is Zymeworks platform patent coverage on products, or (ii) for 10 years beginning from the first commercial sale, whichever period is longer. If there is no Zymeworks patent coverage on products, royalty rates may be reduced.

At execution, the transaction price included only the $18.0 million upfront consideration received. None of the research and development milestones has been included in the transaction price, as all milestone amounts were fully constrained. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestones is outside the control of the Company and contingent upon success in future clinical trials and the licensee’s efforts. Any consideration related to sales-based milestones (including royalties) will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to Daiichi Sanyo and therefore have also been excluded from the transaction price. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

The agreement contains customary termination rights for Daiichi Sankyo and the Company including the right for Daiichi Sankyo to terminate the agreement in its sole discretion with advance notice to the Company. The agreement will terminate, on a product-by-product basis on the expiry of the royalty term for the product.

No development or commercial milestone payments or royalties have been received to date.

Collaboration and License Agreement with Janssen Biotech, Inc. (“Janssen”)

On November 13, 2017, the Company entered into a Collaboration and License Agreement with Janssen to research, develop and commercialize up to six bispecific antibodies generated through the use of the Azymetric and EFECT platforms. Under the terms of the agreement, we granted Janssen a worldwide, royalty-bearing, antibody sequence pair-specific exclusive license to research, develop and commercialize certain products. Janssen also has the option to develop two additional bispecific antibodies under this agreement subject to a future option payment. Under the agreement, Janssen will be solely responsible for the research, development, manufacturing and commercialization of the products.

Upon execution of the agreement, the Company received a non-refundable upfront fee of $50.0 million. The Company is also eligible to receive up to $282.0 million in development milestone payments and up to $1,119.0 million in commercial milestone payments. In addition, Company is eligible to receive tiered royalties in the mid-single digits on product sales, with the royalty term being, on a product-by-product and country-by-country basis, either (i) for as long as there is Zymeworks platform patent coverage on products, or (ii) for 10 years, beginning from the first commercial sale, whichever period is longer. If there is no Zymeworks patent coverage on products, royalty rates may be potentially reduced. Janssen has the right, prior to the first dosing of a patient in a Phase 3 clinical trial for a product, to buy down the royalty relating to such product by one percentage point with a payment of $10.0 million. The Company determined that, the events and conditions resulting in payments for research, development and commercial milestones solely depend on Janssen’s performance.

The Company assessed this arrangement in accordance with ASC 606 and concluded that the contract counterparty, Janssen, is a customer. The Company identified the following promised goods and services at the inception of the Janssen agreement: (1) the research and commercial license, (2) the transfer of the Company’s platform technologies (Azymetric and EFECT) and relevant know-how. The Company concluded that the licenses and platform technologies together are distinct. Accordingly, the deliverables (1) and (2) were considered as a single performance obligation and the upfront fee of $50.0 million was allocated to this performance obligation and was recognized as revenue upon delivery of the licenses and transfer of the relevant technology.

At execution, the transaction price included only the $50.0 million upfront consideration received. None of the research and development milestones has been included in the transaction price, as all milestone amounts were fully constrained. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestones is outside the control of the Company and contingent upon success in future clinical trials and the licensee’s efforts. Any consideration related to sales-based milestones (including royalties) will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to Janssen and therefore have also been excluded from the transaction price. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

The agreement contains customary termination rights for Janssen and the Company including the right for Janssen to terminate the agreement in its sole discretion with advance notice to the Company. The agreement will terminate, on a product-by-product basis on the expiry of the royalty term for the product. Furthermore, if Janssen does not designate an antibody sequence pair during the research program term, the agreement will also terminate.

No research, development or commercial milestone payments or royalties have been received to date.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

Lease Commitments

The Company leases office premises in Vancouver, British Columbia and Seattle, Washington that expire in August 2021 and February 2022, respectively. The Company has also entered into a lease for laboratory space in Vancouver, British Columbia that will expire in August 2021. The leases contain rent escalation clauses. The Company also leases office equipment under capital lease agreements. Future minimum lease payments under the non-cancellable operating leases and capital leases at September 30, 2018 are as follows:


	Payments due by period
	Less Than 1 Year		1 to 2 Years		2 to 3 Years		3 to 4 Years		4 to 5 Years		Total
	(dollars in thousands)
Capital lease obligations	$	23	$	24	$	19	$	3	$	1	$	70
Operating lease obligations		1,940		1,951		1,842		218		—		5,951

Total contractual obligations	$	1,963	$	1,975	$	1,861	$	221	$	1	$	6,021

Other Commitments

The Company has entered into research collaboration agreements with strategic partners in the ordinary course of operations that may include contractual milestone payments related to the achievement of pre-specified research, development, regulatory and commercialization events and indemnification provisions, which are common in such agreements. Pursuant to the agreements, the Company is obligated to make research and development and regulatory milestone payments upon the occurrence of certain events and royalty payments based on net sales. The maximum amount of potential future indemnification is unlimited, however, the Company currently holds commercial and product liability insurance. This insurance limits the Company’s liability and may enable it to recover a portion of any future amounts paid. Historically, the Company has not made any indemnification payments under such agreements and the Company believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations for any period presented.

In August 2016, the Company entered into a license agreement with Innovative Targeting Solutions Inc., or ITS, to use ITS’ protein engineering technology for the development and commercialization of antibody and protein therapeutics. Pursuant to the agreement, the Company agreed to pay an aggregate of $12.0 million in annual licensing fees to ITS over a five-year period. Licensing fees paid to ITS are recorded in intangible assets and amortized over a twelve-month period. The Company may also be required to make payments to ITS upon the achievement of certain development and commercial milestones, as well as royalty payments on net sales.

In connection with the Kairos acquisition, the Company may be required to make future payments to CVI upon the direct achievement of certain development milestones for products incorporating certain Kairos intellectual property, as well as royalty payments on the net sales of such products. For out-licensed products and technologies incorporating certain Kairos intellectual property, the Company may be required to pay CVI a mid-single digit percentage of the future revenue as a result of a revenue sharing agreement. As of September 30, 2018, the contingent consideration had an estimated fair value of approximately $523, which has been recorded within other long-term liabilities (note 6) (December 31, 2017: $470). The contingent consideration was calculated using a probability weighted assessment of the likelihood the milestones would be met, a probability adjusted discount rate that reflects the stage of the development and time to complete the development. Contingent consideration is a financial liability and measured at its fair value at each reporting period, with any changes in fair value from the previous reporting period recorded in the statement of loss and comprehensive loss.

Contingencies

From time to time, the Company may be subject to various legal proceedings and claims related to matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred.

Subsequent events	9 Months Ended
Subsequent events	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent events	11. Subsequent events On October 23, 2018, the Company entered into a licensing and research collaboration Agreement with LEO Pharma A/S (“LEO”) whereby the Company granted LEO a worldwide, royalty-bearing, antibody sequence pair-specific exclusive license to research, develop and commercialize two novel bispecific antibodies, generated through the use of the Azymetric and EFECT platforms, for dermatology. The Company will retain rights to develop antibodies resulting from this collaboration in all other therapeutic areas. The Company will receive an upfront payment of $5.0 million. In addition, (i) for the first therapeutic candidate, the Company is eligible to receive preclinical and development milestone payments of $74.0 million and commercial milestone payments of $157.0 million together with tiered royalties on potential future sales, and (ii) for the second therapeutic candidate, the Company is eligible to receive preclinical and development milestone payments of $86.5 million and commercial milestone payments of $157.0 million together with tiered royalties on potential future sales. For products developed by Zymeworks, LEO is eligible to receive commercial milestone payments and royalties on potential future sales. Under the agreement, Zymeworks and LEO will be jointly responsible for certain research activities with Zymeworks’ costs to be fully reimbursed by LEO. LEO will be solely responsible for the development, manufacturing, and commercialization of the products in dermatology.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation

a. Basis of Presentation

Use of Estimates

b. Use of Estimates

Financial instruments

c. Financial instruments

Fair value of financial instruments

The Company measures certain financial instruments and other items at fair value.

•

Level 1 inputs are quoted market prices for identical instruments available in active markets.

•

Level 3 inputs are unobservable inputs for the asset or liability and will reflect management’s assumptions about market assumptions that would be used to price the asset or liability.


	September 30, 2018		Level 1		Level 2		Level 3
Liabilities
Liability classified stock options	$	13,208	$	—	$	—	$	13,208
Warrant liabilities		—		—		—		—
Liability for contingent consideration (note 10)		523		—		—		523

Total	$	13,731	$	—	$	—	$	13,731


	December 31, 2017		Level 1		Level 2		Level 3
Liabilities
Liability classified stock options	$	3,945	$	—	$	—	$	3,945
Warrant liabilities		1,348		—		—		1,348
Liability for contingent consideration (note 10)		470						470

Total	$	5,763	$	—	$	—	$	5,763

The following table presents the changes in fair value of the Company’s warrant liabilities:


	Liability at beginning of the period		Increase (decrease) in fair value of warrants		Exercise of warrants			Liability at end of the period
Three months ended September 30, 2018	$	—	$	—	$	—		$	—
Nine months ended September 30, 2018	$	1,348	$	3,565	$	(4,913	)	$	—

The following table presents the changes in fair value of the liability classified stock options:


	Liability at beginning of the period		Increase (decrease) in fair value of liability classified stock options		Exercise of options			Unrealized foreign currency loss (gain)			Liability at end of the period
Three months ended September 30, 2018	$	11,265	$	1,791	$	(26	)	$	178		$	13,208
Nine months ended September 30, 2018	$	3,945	$	9,403	$	(102	)	$	(38	)	$	13,208

Net loss per share

d. Net loss per share


	Three Months Ended September 30,						Nine months Ended September 30,
	2018			2017			2018			2017
Numerator:
Net loss attributable to common shareholders:	$	(18,751	)	$	(16,245	)	$	(45,829	)	$	(43,139	)
Deemed dividend due to beneficial conversion feature	$	—		$	—		$	—		$	(520	)

Basic	$	(18,751	)	$	(16,245	)	$	(45,829	)	$	(43,659	)
Adjustment for change in fair value of ASC 815 liability classified stock options and warrant		—			(222	)		—			(2,627	)

Diluted	$	(18,751	)	$	(16,467	)	$	(45,829	)	$	(46,286	)
Denominator:
Weighted-average common shares outstanding:
Basic		31,959,206			25,339,272			28,119,872			19,857,449
Adjustment for dilutive effect of liability classified stock options and warrants		—			9,938			—			111,553

Diluted		31,959,206			25,349,210			28,119,872			19,969,002
Net loss per common share—basic	$	(0.59	)	$	(0.64	)	$	(1.63	)	$	(2.20	)
Net loss per common share—diluted	$	(0.59	)	$	(0.65	)	$	(1.63	)	$	(2.32	)

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis


	September 30, 2018		Level 1		Level 2		Level 3
Liabilities
Liability classified stock options	$	13,208	$	—	$	—	$	13,208
Warrant liabilities		—		—		—		—
Liability for contingent consideration (note 10)		523		—		—		523

Total	$	13,731	$	—	$	—	$	13,731


	December 31, 2017		Level 1		Level 2		Level 3
Liabilities
Liability classified stock options	$	3,945	$	—	$	—	$	3,945
Warrant liabilities		1,348		—		—		1,348
Liability for contingent consideration (note 10)		470						470

Total	$	5,763	$	—	$	—	$	5,763

Schedule of Changes in Fair Value of Warrant Liabilities

The following table presents the changes in fair value of the Company’s warrant liabilities:


	Liability at beginning of the period		Increase (decrease) in fair value of warrants		Exercise of warrants			Liability at end of the period
Three months ended September 30, 2018	$	—	$	—	$	—		$	—
Nine months ended September 30, 2018	$	1,348	$	3,565	$	(4,913	)	$	—

Schedule of Changes in Fair Value of Liability Classified Stock Options

The following table presents the changes in fair value of the liability classified stock options:


	Liability at beginning of the period		Increase (decrease) in fair value of liability classified stock options		Exercise of options			Unrealized foreign currency loss (gain)			Liability at end of the period
Three months ended September 30, 2018	$	11,265	$	1,791	$	(26	)	$	178		$	13,208
Nine months ended September 30, 2018	$	3,945	$	9,403	$	(102	)	$	(38	)	$	13,208

Summary of Calculation of Diluted Loss Per Share

The redeemable convertible Class A preferred shares and stock options outstanding were all excluded from the calculation of diluted loss per share because their inclusion would have been anti-dilutive.


	Three Months Ended September 30,						Nine months Ended September 30,
	2018			2017			2018			2017
Numerator:
Net loss attributable to common shareholders:	$	(18,751	)	$	(16,245	)	$	(45,829	)	$	(43,139	)
Deemed dividend due to beneficial conversion feature	$	—		$	—		$	—		$	(520	)

Basic	$	(18,751	)	$	(16,245	)	$	(45,829	)	$	(43,659	)
Adjustment for change in fair value of ASC 815 liability classified stock options and warrant		—			(222	)		—			(2,627	)

Diluted	$	(18,751	)	$	(16,467	)	$	(45,829	)	$	(46,286	)
Denominator:
Weighted-average common shares outstanding:
Basic		31,959,206			25,339,272			28,119,872			19,857,449
Adjustment for dilutive effect of liability classified stock options and warrants		—			9,938			—			111,553

Diluted		31,959,206			25,349,210			28,119,872			19,969,002
Net loss per common share—basic	$	(0.59	)	$	(0.64	)	$	(1.63	)	$	(2.20	)
Net loss per common share—diluted	$	(0.59	)	$	(0.65	)	$	(1.63	)	$	(2.32	)

Acquisition of Kairos (Tables)

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Summary of Carrying Value of IPR&D, Net of Impairment

The following table summarizes the carrying value of IPR&D, net of impairment:


	Acquired IPR&D		Impairment			Net
Balance at December 31, 2016		20,700		(768	)		19,932
Change during the year		—		(1,536	)		(1,536	)

Balance at December 31, 2017		20,700		(2,304	)		18,396
Change during the period		—		—			—

Balance at September 31, 2018		20,700		(2,304	)		18,396

Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consisted of the following:


	September 30, 2018		December 31, 2017
Trade payables	$	1,221	$	1,664
Accrued research expenses		6,361		4,708
Employee compensation and vacation accruals		2,055		1,981
Accrued legal and professional fees		644		308
Payable to CDRD Ventures Inc. (“CVI”) for Kairos SR&ED receivable		—		165
Other		196		227

Total	$	10,477	$	9,053

Schedule of Other Current Liabilities

Other current liabilities consisted of the following:


	September 30, 2018		December 31, 2017
Current portion of lease inducements	$	148		147
Current portion of capital lease liability		16		10
Current income tax liability		113	$	158

Total	$	277	$	315

Schedule of Other Long-term Liabilities

Other long-term liabilities consisted of the following:


	September 30, 2018		December 31, 2017
Liability for contingent consideration (note 10)	$	523	$	470
Lease inducements		239		344
Capital lease liability		46		52

Total	$	808	$	866

Warrant liabilities and long-term debt (Tables)

9 Months Ended

Sep. 30, 2018

Text Block [Abstract]

Summary of Debt

From January 1, 2017 to June 6, 2017, the Company recorded $360 in interest expense, $248 in accretion expense and $35 in amortization of debt issue costs.


	Nine months ended September 30, 2017
Long term debt at January 1, 2017	$	4,810
Less: unamortized debt issue costs at January 1, 2017		(393	)

Long term debt at January 1, 2017, net of deferred charges		4,417
Accretion during the period up to the Repayment Date		248
Amortization of debt issue costs during the period up to the Repayment Date		35

Carrying value of long term debt on the Repayment Date, net of deferred charges		4,700
Repayment, including repayment premium and expenses		(7,814	)

Loss on debt extinguishment	$	(3,114	)

Summary of Assumptions used in Estimating Fair value of Warrants determined using Black-Scholes Option Pricing Model

As of September 30, 2017, the estimated fair value of the Perceptive warrants was determined using the Black-Scholes option pricing model with the following assumptions:


Dividend yield	0	%
Expected volatility	67.07	%
Risk-free interest rate	1.72	%
Expected term	5.91 years

Redeemable Convertible Class A Preferred Shares, and Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2018

Summary of Stock Options Granted

The following table summarizes the Company’s stock options granted in Canadian dollars under the Original Plan and the New Plan:


	Number of Options			Weighted- Average Exercise Price (C$)		Weighted- Average Exercise Price ($)		Weighted- Average Contractual Term (years)		Aggregate intrinsic value (C$)		Aggregate intrinsic value ($)
Outstanding, December 31, 2017		2,263,712			14.24		11.35		7.53		1,455		1,160
Granted		285,025			16.43		12.76
Expired		(5,395	)		13.60		10.56
Exercised		(79,824	)		8.80		6.83
Forfeited		(39,577	)		18.58		14.43

Outstanding, September 30, 2018		2,423,941			14.58		11.27		7.26		15,035		11,614

Schedule of Stock-based Compensation Expense for Equity Classified Instruments

Stock-based compensation expense for equity classified instruments, as well as the financial statement impact of the periodic revaluation of liability classified equity instruments (note 2c), is recorded in research and development expenses, general and administration expenses and finance expense (income) as follows:


	Three Months Ended September 30,					Nine months Ended September 30,
	2018		2017			2018		2017
Research and development expenses:
Stock-based compensation for equity classified instruments	$	691	$	684		$	1,724	$	730
Change in fair value of liability classified equity instruments		496		(507	)		1,966		419

	$	1,187	$	177		$	3,690	$	1,149
General and administrative expenses:
Stock-based compensation for equity classified instruments	$	1,093	$	889		$	2,758	$	1,785
Change in fair value of liability classified equity instruments		1,304		578			5,342		345

	$	2,397	$	1,467		$	8,100	$	2,130
Finance expense (income):
Stock-based compensation for equity classified instruments	$	—	$	1		$	1	$	—
Change in fair value of liability classified equity instruments		39		(35	)		152		(308	)

	$	39	$	(34	)	$	153	$	(308	)

New Stock Option Plan [Member]

Summary of Stock Options Granted

The following table summarizes the Company’s stock options granted in U.S. dollars under the New Plan:


	Number of Options			Weighted- Average Exercise Price ($)		Weighted- Average Contractual Term (years)		Aggregate intrinsic value ($)
Outstanding, December 31, 2017		636,595			9.70		9.46		15
Granted		753,783			12.79
Expired		—			—
Exercised		—			—
Forfeited		(7,600	)		9.85

Outstanding, September 30, 2018		1,382,778			11.34		9.16		6,088

Schedule of Estimated Fair Value of Stock Options Assumptions

The estimated fair value of stock options granted in U.S. dollars under the New Plan was determined using the Black-Scholes option pricing model with the following weighted-average assumptions:


	Nine months Ended September 30,
	2018			2017
Dividend yield		0	%		0	%
Expected volatility		66.0	%		65.9	%
Risk-free interest rate		2.64	%		1.84	%
Expected average life of options		5.87 years			5.89 years

Employee Stock Option [Member]

Schedule of Estimated Fair Value of Stock Options Assumptions


	Nine months Ended September 30,
	2018			2017
Dividend yield		0	%		0	%
Expected volatility		66.0	%		66.4	%
Risk-free interest rate		2.17	%		1.47	%
Expected average life of options		5.91 years			6.61 years

Liability Classified Stock Options [Member]

Schedule of Estimated Fair Value of Stock Options Assumptions

The weighted-average Black-Scholes option pricing assumptions for liability classified stock options are as follows:


	September 30, 2018			September 30, 2017
Dividend yield		0	%		0	%
Expected volatility		66.5	%		66.5	%
Risk-free interest rate		1.55	%		1.55	%
Expected average option term		5.89 years			5.89 years
Number of liability classified stock options outstanding		1,441,163			1,525,286

Research, Collaboration and Licensing Agreements (Tables)

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Revenue Recognized from Strategic Partnerships

The following table presents summarized revenue recognized from the Company’s strategic partnerships.


	Three Months Ended September 30,				Nine months Ended September 30,
	2018		2017		2018		2017
Merck:
Research support payments	$	—	$	—	$	—	$	1
Lilly:
Research support payments		—		—		—		15
Milestone revenue		2,000		—		2,000		—
Daiichi Sankyo:
Research support payments		—		119		—		665
Milestone revenue		—		—		—		1,000
Upfront technology access fee		—		—		18,000		—
Celgene:
Option exercise fee		—		—		4,000		—
Other		54		—		94		10

	$	2,054	$	119	$	24,094	$	1,691

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Lease Payments Under Non-Cancellable Operating Leases and Capital Leases

Future minimum lease payments under the non-cancellable operating leases and capital leases at September 30, 2018 are as follows:


	Payments due by period
	Less Than 1 Year		1 to 2 Years		2 to 3 Years		3 to 4 Years		4 to 5 Years		Total
	(dollars in thousands)
Capital lease obligations	$	23	$	24	$	19	$	3	$	1	$	70
Operating lease obligations		1,940		1,951		1,842		218		—		5,951

Total contractual obligations	$	1,963	$	1,975	$	1,861	$	221	$	1	$	6,021

Nature of Operations - Additional Information (Detail)							9 Months Ended
Nature of Operations - Additional Information (Detail)	Jun. 11, 2018 USD ($) shares	Jun. 06, 2018 USD ($) shares	May 31, 2017 shares	May 03, 2017 USD ($) shares	Apr. 28, 2017 $ / shares shares	Apr. 13, 2017	Sep. 30, 2018	Jun. 07, 2018 $ / shares	May 24, 2018 USD ($)
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Date of incorporation							Sep. 08, 2003
Description on share consolidation						(i) every 2.3866 common shares were combined into one common share, (ii) every 2.3866 redeemable convertible preferred shares were combined into one redeemable convertible preferred share, (iii) the number of common shares into which each outstanding option and warrant to purchase common shares and the number of preferred shares into which each outstanding warrant to purchase preferred shares is exercisable were proportionately decreased on a 1 for 2.3866 basis, and (iv) the exercise price for each such outstanding option and warrant to purchase common shares or preferred shares were proportionately increased on a 1 for 2.3866 basis.
Common stock issued upon conversion of redeemable convertible preferred stock					7,098,194
Number of shares issuable upon exercise of outstanding warrants					398,076
Warrant exercise price \| $ / shares					$ 8.67
Final prospectus supplement, shares price \| $ / shares					13.00
Maximum [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Aggregate offering price \| $									$ 250,000,000
IPO [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Share issued, price per share \| $ / shares					13.00
Number of shares issued				4,894,467
Net proceeds from issuance \| $				$ 54,200,000
Over-Allotment Option [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of shares issued to underwriters	810,000		394,467
Offering [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of shares issued	6,210,000
Net proceeds from issuance \| $	$ 90,800,000
Preliminary prospectus supplement, shares authorized		85,000,000
Final prospectus supplement, shares price \| $ / shares								$ 15.75
Offering [Member] \| Maximum [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Over-allotment option exercised \| $		$ 12,800,000
Redeemable Convertible Preferred Stock [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Reverse share split, conversion ratio						0.419006117
Final prospectus supplement, shares price \| $ / shares					$ 11.69
Common Shares [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Reverse share split, conversion ratio						0.419006117

Summary of Significant Accounting Policies - Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Liabilities
Financial liabilities measured at fair value	$ 13,731	$ 5,763
Liability Classified Stock Options [Member]
Liabilities
Financial liabilities measured at fair value	13,208	3,945
Liability for Contingent Consideration [Member]
Liabilities
Financial liabilities measured at fair value	523	470
Warrant Liabilities [Member]
Liabilities
Financial liabilities measured at fair value		1,348
Level 3 [Member]
Liabilities
Financial liabilities measured at fair value	13,731	5,763
Level 3 [Member] \| Liability Classified Stock Options [Member]
Liabilities
Financial liabilities measured at fair value	13,208	3,945
Level 3 [Member] \| Liability for Contingent Consideration [Member]
Liabilities
Financial liabilities measured at fair value	$ 523	470
Level 3 [Member] \| Warrant Liabilities [Member]
Liabilities
Financial liabilities measured at fair value		$ 1,348

Summary of Significant Accounting Policies - Schedule of Changes in Fair Value of Warrant Liabilities (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Fair Value Disclosures [Abstract]
Liability at beginning of the period	$ 1,348
Increase (decrease) in fair value of warrants	3,565
Exercise of warrants	$ (4,913)

Summary of Significant Accounting Policies - Schedule of Changes in Fair Value of Liability Classified Stock Options (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability at beginning of the period		$ 3,945
Liability at end of the period	$ 13,208	13,208
Liability Classified Stock Options [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability at beginning of the period	11,265	3,945
Increase (decrease) in fair value of liability classified stock options	1,791	9,403
Exercise of options	(26)	(102)
Unrealized foreign currency loss (gain)	178	(38)
Liability at end of the period	$ 13,208	$ 13,208

Summary of Significant Accounting Policies - Summary of Calculation of Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Net loss attributable to common shareholders:	$ (18,751)	$ (16,245)	$ (45,829)	$ (43,139)
Deemed dividend due to beneficial conversion feature				(520)
Basic	(18,751)	(16,245)	(45,829)	(43,659)
Adjustment for change in fair value of ASC 815 liability classified stock options and warrant		(222)		(2,627)
Diluted	$ (18,751)	$ (16,467)	$ (45,829)	$ (46,286)
Weighted-average common shares outstanding:
Basic	31,959,206	25,339,272	28,119,872	19,857,449
Adjustment for dilutive effect of liability classified stock options and warrants		9,938		111,553
Diluted	31,959,206	25,349,210	28,119,872	19,969,002
Net loss per common share-basic	$ (0.59)	$ (0.64)	$ (1.63)	$ (2.20)
Net loss per common share-diluted	$ (0.59)	$ (0.65)	$ (1.63)	$ (2.32)

Short-Term Investments - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018
Short-Term Investments [Line Items]
Short-term investments maturity term	12 months
Description on short-term investments maturity	The Company may redeem GIC investments 30 days after deposit without penalty.
Minimum [Member]
Short-Term Investments [Line Items]
Short-term investments interest rate	2.00%
Maximum [Member]
Short-Term Investments [Line Items]
Short-term investments interest rate	3.00%

Acquisition of Kairos - Additional Information (Detail) $ in Thousands			3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 18, 2016 USD ($)	Mar. 18, 2016 CAD ($)	Sep. 30, 2018 USD ($)	Mar. 31, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of intangible assets and goodwill						$ 1,536,000
IPR&D [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of intangible assets and goodwill			$ 0	$ 1,536,000	$ 0		$ 768,000
Kairos [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Consideration transferred	$ 24,778,000	$ 32,257
Cash consideration in connection with acquisition	$ 1,733,000	$ 2,257
Equity interest percentage before acquisition	19.99%	19.99%
Kairos [Member] \| Common Shares [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Common shares issued in connection with acquisition	$ 23,043,000	$ 30,000

Acquisition of Kairos - Summary of Carrying Value of IPR&D, Net of Impairment (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Acquired Indefinite-lived Intangible Assets [Line Items]
Beginning balance	$ 18,396
Ending balance	18,396	$ 18,396
IPR&D [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Acquired IPR&D, beginning balance	20,700	20,700
Acquired IPR&D, Change during the period
Acquired IPR&D, ending balance	20,700	20,700
Beginning balance	(2,304)	(768)
Change during the period		(1,536)
Ending balance	(2,304)	(2,304)
Beginning balance	18,396	19,932
Change during the period		(1,536)
Ending balance	$ 18,396	$ 18,396

Liabilities - Schedule of Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounts Payable and Accrued Liabilities, Current [Abstract]
Trade payables	$ 1,221	$ 1,664
Accrued research expenses	6,361	4,708
Employee compensation and vacation accruals	2,055	1,981
Accrued legal and professional fees	644	308
Payable to CDRD Ventures Inc. ("CVI") for Kairos SR&ED receivable		165
Other	196	227
Total	$ 10,477	$ 9,053

Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Other Liabilities, Current [Abstract]
Current portion of lease inducements	$ 148	$ 147
Current portion of capital lease liability	16	10
Current income tax liability	113	158
Total	$ 277	$ 315

Liabilities - Schedule of Other Long-term Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Other Liabilities, Noncurrent [Abstract]
Liability for contingent consideration (note 10)	$ 523	$ 470
Lease inducements	239	344
Capital lease liability	46	52
Total	$ 808	$ 866

Warrant Liabilities and Long-term Debt - Perceptive Debt - Additional Information (Detail)				5 Months Ended	9 Months Ended
	Jun. 06, 2017 USD ($)	Apr. 28, 2017 $ / shares shares	Jun. 02, 2016 USD ($) $ / shares shares	Jun. 06, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Line of Credit Facility [Line Items]
Interest rate description					LIBOR plus an applicable margin of 10% per annum with LIBOR to be a minimum of 1% with monthly interest payments.
Monthly principal payments			$ 225,000
Warrants issued to purchase shares \| shares		398,076
Warrants exercise price \| $ / shares		$ 8.67
Warrant liabilities from perceptive warrants					$ 0		$ 1,348,000
Residual balance of original principal recorded as long-term debt						$ 4,700,000
Conversion of redeemable convertible class A preferred share warrants into common share warrants					1.349367-for-1 basis
Conversion ratio		1.349367
Repayment of debt						7,814,000
Accretion expense						248,000
Amortization of debt issue costs						$ 35,000
Perceptive Debt [Member]
Line of Credit Facility [Line Items]
Credit facility			15,000,000
Warrant liabilities from perceptive warrants			3,266,000
Residual balance of original principal recorded as long-term debt			$ 4,234,000
Debt principal balance	$ 7,500,000			$ 7,500,000
Term of debt			4 years
Repayment of debt	7,814,000
Early repayment premium	300,000
Legal fees	$ 14,000
Interest expense				360,000
Accretion expense				248,000
Amortization of debt issue costs				$ 35,000
Perceptive Debt [Member] \| Long-term Debt [Member]
Line of Credit Facility [Line Items]
Debt principal balance			$ 7,500,000
Redeemable Convertible Class A Preferred Shares [Member]
Line of Credit Facility [Line Items]
Warrants issued to purchase shares \| shares			295,009
Warrants exercise price \| $ / shares			$ 11.69
Redeemable Convertible Class A Preferred Shares [Member] \| Warrant Liabilities [Member]
Line of Credit Facility [Line Items]
Conversion ratio		1.349367
LIBOR [Member]
Line of Credit Facility [Line Items]
Debt, basis spread on variable rate			10.00%
Floor interest rate			1.00%
Tranche A Term Loans [Member]
Line of Credit Facility [Line Items]
Net proceeds received			$ 6,953,000
Tranche A Term Loans [Member] \| Perceptive Debt [Member]
Line of Credit Facility [Line Items]
Credit facility			7,500,000
Tranche B Term Loans [Member] \| Perceptive Debt [Member]
Line of Credit Facility [Line Items]
Credit facility			$ 7,500,000

Warrant liabilities and long-term debt - Summary of Debt (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($)
Debt Instruments [Abstract]
Long term debt at January 1, 2017	$ 4,810
Less: unamortized debt issue costs at January 1, 2017	(393)
Long term debt at January 1, 2017, net of deferred charges	4,417
Accretion during the period up to the Repayment Date	248
Amortization of debt issue costs during the period up to the Repayment Date	35
Carrying value of long term debt on the Repayment Date, net of deferred charges	4,700
Repayment, including repayment premium and expenses	(7,814)
Loss on debt extinguishment	$ (3,114)

Warrant Liabilities and Long-term Debt - Warrant Liabilities - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jun. 04, 2018	May 10, 2018	Dec. 31, 2017	Apr. 28, 2017
Line of Credit Facility [Line Items]
Warrant liabilities from perceptive warrants		$ 0				$ 1,348,000
Warrants issued to purchase shares							398,076
Increase in fair value of warrants	$ (187,000)	3,565,000	$ (2,320,000)
Perceptive Warrants [Member]
Line of Credit Facility [Line Items]
Warrants issued to purchase shares				220,000	178,076
Common stock issued upon exercise of warrants				126,880	79,481
Increase in fair value of warrants		$ 3,565,000

Warrant Liabilities and Long-term Debt - Summary of Assumptions Used in Estimating Fair Value of Warrants Determined Using Black-Scholes Option Pricing Model (Detail) - Perceptive Warrants [Member] - Valuation Technique, Option Pricing Model [Member]	Sep. 30, 2017 yr
Measurement Input, Expected Dividend Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value measurement input	0.00
Measurement Input, Price Volatility [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value measurement input	0.6707
Measurement Input, Risk Free Interest Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value measurement input	0.0172
Measurement Input, Expected Term [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value measurement input	5.91

Redeemable Convertible Class A Preferred Shares, and Shareholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands			9 Months Ended
	Apr. 28, 2017 USD ($) $ / shares shares	Jul. 14, 2006	Sep. 30, 2018 USD ($) shares	Sep. 30, 2018 CAD ($) shares	Sep. 30, 2017	Dec. 31, 2017 shares	Dec. 21, 2015 shares
Temporary Equity [Line Items]
Redeemable convertible preferred shares, authorized							6,413,265
Share issued price per share \| $ / shares	$ 13.00
Gross proceeds from conversion \| $	$ 50,000,000
Mandatory conversion description			Upon either a) the closing of the sale of common shares to the public at a price of at least 1.4 times the Class A original issue price of $11.69 per share in a firm-commitment underwritten public offering resulting in at least $50 million of gross proceeds, or b) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least a majority of the then outstanding Class A Preferred Share, all outstanding Class A preferred shares would have been automatically converted into common shares at the effective conversion rate. However, in the event the common share public issuance price is less than 1.5 times the Class A original issue price of $11.69 per share, then immediately prior to, and contingent upon such conversion, the Class A conversion price would be automatically adjusted to equal the lesser of (a) the quotient obtained by dividing the per share price in such public offering by 1.5 and (b) the Class A conversion price in effect as of immediately prior to such public offering.	Upon either a) the closing of the sale of common shares to the public at a price of at least 1.4 times the Class A original issue price of $11.69 per share in a firm-commitment underwritten public offering resulting in at least $50 million of gross proceeds, or b) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least a majority of the then outstanding Class A Preferred Share, all outstanding Class A preferred shares would have been automatically converted into common shares at the effective conversion rate. However, in the event the common share public issuance price is less than 1.5 times the Class A original issue price of $11.69 per share, then immediately prior to, and contingent upon such conversion, the Class A conversion price would be automatically adjusted to equal the lesser of (a) the quotient obtained by dividing the per share price in such public offering by 1.5 and (b) the Class A conversion price in effect as of immediately prior to such public offering.
Conversion of preferred stock to common stock	7,098,194
Share conversion ratio	1.349367
Beneficial conversion feature \| $	$ 520,000
Preferred stock, shares issued			0			0
Preferred stock, shares outstanding			0			0
Shares granted with respect to maximum fixed amount equal, percentage		20.00%
Options granted under original plan exercisable period			10 years	10 years
Shares available for issuance under the Original Plan vesting period		4 years
Proceeds from stock options exercised			$ 581,000	$ 750
Expected average life of options			5 years 10 months 28 days	5 years 10 months 28 days	6 years 7 months 9 days
Unamortized compensation expense related to unvested options			$ 8,624,000	$ 11,163
Remaining unamortized compensation expense, weighted-average period			2 years	2 years
Total amount contributed by ESPP participants \| $			$ 113,000
Minimum [Member]
Temporary Equity [Line Items]
Stock options expiration date			Feb. 05, 2019	Feb. 05, 2019
Maximum [Member]
Temporary Equity [Line Items]
Stock options expiration date			Aug. 14, 2028	Aug. 14, 2028
New Stock Option Plan [Member]
Temporary Equity [Line Items]
Shares granted with respect to maximum fixed amount equal, percentage			20.00%	20.00%
Maximum number of common shares reserved for issuance			5,686,097
Shares issuable upon exercise of stock options			3,686,097
Maximum number of common shares reserved for issuance increase in percentage			4.00%	4.00%
Expected average life of options			5 years 10 months 13 days	5 years 10 months 13 days	5 years 10 months 20 days
Employee Stock Option [Member]
Temporary Equity [Line Items]
Expected average life of options			6 years	6 years
Employees Stock Purchase Plan [Member]
Temporary Equity [Line Items]
Shares granted with respect to maximum fixed amount equal, percentage			1.00%	1.00%
Percentage of discounted purchase price of average market price			85.00%	85.00%
Share-based compensation arrangement by share-based payment award, plan modification, description and terms			On June 7, 2018, certain amendments to the ESPP were approved by shareholders. Prior to these amendments, the ESPP allowed eligible employees to acquire common shares at a discounted purchase price of 85% of the market value of the Company’s common shares on the purchase date. The ESPP, as amended, allows eligible employees to acquire common shares at a discounted purchase price of the lesser of (i) 85% of the market price of a common share on the first day of the applicable purchase period and (ii) 85% of the market price of a common share on the purchase date.	On June 7, 2018, certain amendments to the ESPP were approved by shareholders. Prior to these amendments, the ESPP allowed eligible employees to acquire common shares at a discounted purchase price of 85% of the market value of the Company’s common shares on the purchase date. The ESPP, as amended, allows eligible employees to acquire common shares at a discounted purchase price of the lesser of (i) 85% of the market price of a common share on the first day of the applicable purchase period and (ii) 85% of the market price of a common share on the purchase date.
Maximum eligible employees contribution under ESPP			15.00%
Purchase of shares under ESPP, maximum limit for each employee \| $			$ 25,000
Additional common shares authorized for issuance			419,000	419,000
Compensation charge \| $			$ 68,000
Employees Stock Purchase Plan [Member] \| Prior To Amendment [Member]
Temporary Equity [Line Items]
Percentage of discounted purchase price of average market price			85.00%	85.00%
Employees Stock Purchase Plan [Member] \| After Amendment [Member]
Temporary Equity [Line Items]
Percentage of discounted purchase price of average market price			85.00%	85.00%
Employees Stock Purchase Plan [Member] \| Maximum [Member]
Temporary Equity [Line Items]
Number of common shares reserved for issuance			272,350
Director [Member]
Temporary Equity [Line Items]
Shares available for issuance under the Original Plan vesting period		3 years
Redeemable Convertible Preferred Stock [Member]
Temporary Equity [Line Items]
Accrued dividends percentage	8.00%
Share issued price per share \| $ / shares	$ 11.69

Redeemable Convertible Class A Preferred Shares, and Shareholders' Equity - Summary of Stock Options Granted (Detail) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2018 USD ($) $ / shares shares	Sep. 30, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Sep. 30, 2018 CAD ($)	Dec. 31, 2017 CAD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options Outstanding, Beginning balance	2,263,712	2,263,712
Number of Options, Granted	285,025	285,025
Number of Options, Expired	(5,395)	(5,395)
Number of Options, Exercised	(79,824)	(79,824)
Number of Options, Forfeited	(39,577)	(39,577)
Number of Options Outstanding, Ending balance	2,423,941	2,423,941	2,263,712	2,263,712
Weighted-Average Exercise Price, Outstanding, Beginning balance \| (per share)	$ 11.35	$ 14.24
Weighted-Average Exercise Price, Granted \| (per share)	12.76	16.43
Weighted-Average Exercise Price, Expired \| (per share)	10.56	13.60
Weighted-Average Exercise Price, Exercised \| (per share)	6.83	8.80
Weighted-Average Exercise Price, Forfeited \| (per share)	14.43	18.58
Weighted-Average Exercise Price, Outstanding, Ending balance \| (per share)	$ 11.27	$ 14.58	$ 11.35	$ 14.24
Weighted-Average Contractual Term, Outstanding	7 years 3 months 4 days	7 years 3 months 4 days	7 years 6 months 11 days	7 years 6 months 11 days
Aggregate intrinsic value Outstanding	$ 11,614	$ 11,614	$ 1,160	$ 1,160	$ 15,035	$ 1,455
New Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options Outstanding, Beginning balance	636,595	636,595
Number of Options, Granted	753,783	753,783
Number of Options, Forfeited	(7,600)	(7,600)
Number of Options Outstanding, Ending balance	1,382,778	1,382,778	636,595	636,595
Weighted-Average Exercise Price, Outstanding, Beginning balance \| $ / shares	$ 9.70
Weighted-Average Exercise Price, Granted \| $ / shares	12.79
Weighted-Average Exercise Price, Forfeited \| $ / shares	9.85
Weighted-Average Exercise Price, Outstanding, Ending balance \| $ / shares	$ 11.34		$ 9.70
Weighted-Average Contractual Term, Outstanding	9 years 1 month 28 days	9 years 1 month 28 days	9 years 5 months 16 days	9 years 5 months 16 days
Aggregate intrinsic value Outstanding \| $	$ 6,088	$ 6,088	$ 15	$ 15

Redeemable Convertible Class A Preferred Shares, and Shareholders' Equity - Schedule of Stock-based Compensation Expense for Equity Classified Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Research and development expenses	$ 14,142	$ 11,525	$ 42,595	$ 28,872
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation for equity classified instruments	691	684	1,724	730
Change in fair value of liability classified equity instruments	496	(507)	1,966	419
Research and development expenses	1,187	177	3,690	1,149
General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation for equity classified instruments	1,093	889	2,758	1,785
Change in fair value of liability classified equity instruments	1,304	578	5,342	345
General and administrative expenses	2,397	1,467	8,100	2,130
Finance Expense (Income) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation for equity classified instruments		1	1
Change in fair value of liability classified equity instruments	39	(35)	152	(308)
Finance expenses	$ 39	$ (34)	$ 153	$ (308)

Redeemable Convertible Class A Preferred Shares, and Shareholders' Equity - Schedule of Estimated Fair Value of Stock Options Assumptions (Detail) - shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Expected volatility	66.00%	66.40%
Risk-free interest rate	2.17%	1.47%
Expected average life of options	5 years 10 months 28 days	6 years 7 months 9 days
Number of stock options	2,423,941		2,263,712
Liability Classified Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Expected volatility	66.50%	66.50%
Risk-free interest rate	1.55%	1.55%
Expected average life of options	5 years 10 months 20 days	5 years 10 months 20 days
Number of stock options	1,441,163	1,525,286
New Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Expected volatility	66.00%	65.90%
Risk-free interest rate	2.64%	1.84%
Expected average life of options	5 years 10 months 13 days	5 years 10 months 20 days
Number of stock options	1,382,778		636,595

Research, Collaboration and Licensing Agreements - Schedule Of Collaborative Arrangements and Noncollaborative Arrangement Transactions (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recognized	$ 2,054	$ 119	$ 24,094	$ 1,691
Merck Sharp & Dohme Research Ltd. [Member] \| Research Support Payments [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recognized				1
Eli Lilly and Company [Member] \| Research Support Payments [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recognized				15
Eli Lilly and Company [Member] \| Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recognized	2,000		2,000
Daiichi Sankyo, Co., Ltd. [Member] \| Up-front Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recognized			18,000
Daiichi Sankyo, Co., Ltd. [Member] \| Research Support Payments [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recognized		$ 119		665
Daiichi Sankyo, Co., Ltd. [Member] \| Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recognized				1,000
Celgene [Member] \| License Option [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recognized			4,000
Other [Member] \| Service, Other [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue recognized	$ 54		$ 94	$ 10

Research, Collaboration and Licensing Agreements - Additional Information - Merck (Detail) - USD ($)				3 Months Ended		9 Months Ended
	Dec. 03, 2014	Apr. 22, 2013	Sep. 20, 2012	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2012	Jan. 01, 2018
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract assets				$ 0		$ 0			$ 0
Contract liabilities				0		0			$ 0
Revenue				2,054,000	$ 119,000	24,094,000	$ 1,691,000
Merck Sharp & Dohme Research Ltd. [Member] \| Research Support Payments [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue							$ 1,000
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Milestone removed from total milestones	$ 2,000,000
Remaining performance obligation				$ 0		0
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Research Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		$ 1,500,000	$ 2,000,000
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Investigational New Drug [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue						0
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue						0
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue						0
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Royalty [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue						0
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Research Support Payments [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue						$ 0
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Eligible to Receive [Member] \| Research Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	3,500,000
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Eligible to Receive [Member] \| Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	190,750,000
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Investigational New Drug [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	6,000,000
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	66,000,000
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	114,000,000
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Up-front Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities	$ 1,250,000
Performance obligation recognized								$ 1,250,000
Merck Sharp & Dohme Research Ltd. [Member] \| Research and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Up-front Technology Access Fee [Member] \| Eligible to Receive [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue								$ 1,250,000

Research, Collaboration and Licensing Agreements - Additional Information - Lilly (Detail) - USD ($)				3 Months Ended		6 Months Ended	9 Months Ended
	Aug. 31, 2018	Dec. 11, 2015	Dec. 17, 2013	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2014	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities				$ 0			$ 0		$ 0
Revenue				$ 2,054,000	$ 119,000		24,094,000	$ 1,691,000
Eli Lilly and Company [Member] \| Research Support Payments [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue								$ 15,000
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project One [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Licensing agreement term			10 years
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project One [Member] \| Research Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 2,000,000	$ 1,000,000
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project One [Member] \| Research Support Payments [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue							$ 0
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project One [Member] \| Eligible to Receive [Member] \| Research Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			$ 1,000,000
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project One [Member] \| Eligible to Receive [Member] \| Investigational New Drug [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			2,000,000
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project One [Member] \| Eligible to Receive [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			8,000,000
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project One [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			40,000,000
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project One [Member] \| Up-front Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities			$ 1,000,000
Performance obligation recognized						$ 1,000,000

Research, Collaboration and Licensing Agreements - Additional Information - Lilly Two (Detail) - USD ($)			3 Months Ended		9 Months Ended
	Dec. 01, 2016	Oct. 22, 2014	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			$ 2,054,000	$ 119,000	$ 24,094,000	$ 1,691,000
Contract liabilities			$ 0		0		$ 0
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of milestone and royalty obligation		50.00%
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member] \| Research Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 2,000,000
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member] \| Investigational New Drug [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue					0
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue					0
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue					$ 0
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member] \| Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of milestone and royalty obligation		75.00%
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member] \| Minimum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of milestone and royalty obligation		25.00%
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member] \| Up-front Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities		$ 0
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member] \| Eligible to Receive [Member] \| Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		125,000,000
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Research Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		2,000,000
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Investigational New Drug [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		8,000,000
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		20,000,000
Eli Lilly and Company [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Project Two [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		$ 95,000,000

Research, Collaboration and Licensing Agreements - Additional Information - Celgene (Detail)				3 Months Ended		6 Months Ended	9 Months Ended
	Apr. 22, 2018 USD ($) Product	Apr. 21, 2018 Product	Dec. 23, 2014 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2015 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Jan. 01, 2018 USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities				$ 0			$ 0		$ 0
Revenue				$ 2,054,000	$ 119,000		24,094,000	$ 1,691,000
Celgene [Member] \| License Option [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue							4,000,000
Celgene [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Number of potential products to developed and commercialized \| Product	10	8
Extended research program term	24 months
Collaborative agreement expansion fee	$ 4,000,000
Extended research program maturity period	2020-04
Celgene [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue							0
Celgene [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue							0
Celgene [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Royalty [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue							$ 0
Celgene [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Milestone payment	$ 164,000,000
Celgene [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Eligible to Receive [Member] \| License Option [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			$ 7,500,000
Celgene [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Eligible to Receive [Member] \| Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			164,000,000
Celgene [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			101,500,000
Celgene [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			55,000,000
Celgene [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Up-front Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities			$ 8,000,000
Performance obligation recognized						$ 8,000,000
Licensing agreement term			10 years

Research, Collaboration and Licensing Agreements - Additional Information - GSK (Detail) - USD ($)		3 Months Ended		9 Months Ended
	Dec. 01, 2015	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		$ 2,054,000	$ 119,000	$ 24,094,000	$ 1,691,000
Contract liabilities		$ 0		0		$ 0
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Licensing agreement term	10 years
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue				0
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue				0
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Royalty [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue				$ 0
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Up-front Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities	$ 0
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Eligible to Receive [Member] \| Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 110,000,000

Research, Collaboration and Licensing Agreements - Additional Information - GSK Two (Detail) - USD ($)			3 Months Ended		9 Months Ended
	May 03, 2016	Apr. 21, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities			$ 0		$ 0		$ 0
Revenue			$ 2,054,000	$ 119,000	24,094,000	$ 1,691,000
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| Platform Technology Transfer and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of milestone and royalty obligation		50.00%
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| Platform Technology Transfer and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities	$ 6,000,000
Performance obligation recognized	$ 6,000,000
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| Platform Technology Transfer and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Research Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue					0
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| Platform Technology Transfer and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue					0
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| Platform Technology Transfer and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Commercial Sales Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue					0
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| Platform Technology Transfer and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Royalty [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue					$ 0
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| Platform Technology Transfer and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Research Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		$ 30,000,000
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| Platform Technology Transfer and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		152,000,000
Glaxo Smith Kline Intellectual Property Development Ltd [Member] \| Platform Technology Transfer and License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Commercial Sales Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		$ 720,000,000

Research, Collaboration and Licensing Agreements - Additional Information - Daiichi Sankyo (Detail) - USD ($)			3 Months Ended		9 Months Ended
	Jun. 26, 2017	Sep. 26, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			$ 2,054,000	$ 119,000	$ 24,094,000	$ 1,691,000
Daiichi Sankyo, Co., Ltd [Member] \| Cross License Agreement [Member] \| Collaborative Arrangement [Member] \| Research Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 1,000,000
Daiichi Sankyo, Co., Ltd [Member] \| Cross License Agreement [Member] \| Collaborative Arrangement [Member] \| Research Support Payments [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Research support revenue					$ 0	$ 665,000
Daiichi Sankyo, Co., Ltd [Member] \| Cross License Agreement [Member] \| Collaborative Arrangement [Member] \| Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		$ 2,000,000
Daiichi Sankyo, Co., Ltd [Member] \| Cross License Agreement [Member] \| Collaborative Arrangement [Member] \| Research, Development, Commercial License Option Milestone [Member] \| Eligible to Receive [Member] \| Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		66,900,000
Daiichi Sankyo, Co., Ltd [Member] \| Cross License Agreement [Member] \| Collaborative Arrangement [Member] \| Commercial Milestones [Member] \| Eligible to Receive [Member] \| Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		$ 80,000,000

Research, Collaboration and Licensing Agreements - Additional Information - Daiichi Sankyo Two (Detail) - USD ($)		3 Months Ended		9 Months Ended
	May 30, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities		$ 0		$ 0		$ 0
Revenue		$ 2,054,000	$ 119,000	24,094,000	$ 1,691,000
Daiichi Sankyo, Co., Ltd [Member] \| License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue				0
Daiichi Sankyo, Co., Ltd [Member] \| License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue				0
Daiichi Sankyo, Co., Ltd [Member] \| License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Royalty [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue				$ 0
Daiichi Sankyo, Co., Ltd [Member] \| License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Eligible to Receive [Member] \| Royalty [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Royalty agreement term	10 years
Daiichi Sankyo, Co., Ltd [Member] \| License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 126,700,000
Daiichi Sankyo, Co., Ltd [Member] \| License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 340,000,000
Daiichi Sankyo, Co., Ltd [Member] \| License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Royalty [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Royalty percentage earned from sales of product	10.00%
Daiichi Sankyo, Co., Ltd [Member] \| License Agreement [Member] \| Non-collaborative Arrangement Transactions [Member] \| Up-front Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities	$ 18,000,000
Performance obligation recognized	$ 18,000,000

Research, Collaboration and Licensing Agreements - Additional Information - Janssen (Detail) - USD ($)		3 Months Ended		9 Months Ended
	Nov. 13, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities		$ 0		$ 0		$ 0
Revenue		$ 2,054,000	$ 119,000	24,094,000	$ 1,691,000
Janssen Biotech, Inc. [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue				0
Janssen Biotech, Inc. [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue				0
Janssen Biotech, Inc. [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Royalty [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue				0
Janssen Biotech, Inc. [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Research Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue				$ 0
Janssen Biotech, Inc. [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Eligible to Receive [Member] \| Royalty [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Royalty agreement term	10 years
Payment for royalty	$ 10,000,000
Royalty payment percentage	1.00%
Janssen Biotech, Inc. [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 282,000,000
Janssen Biotech, Inc. [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Eligible to Receive [Member] \| Maximum [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	1,119,000,000
Janssen Biotech, Inc. [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Up-front Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Contract liabilities	50,000,000
Performance obligation recognized	$ 50,000,000

Commitments and Contingencies - Future Minimum Lease Payments Under Non-Cancellable Operating Leases and Capital Leases (Detail) $ in Thousands	Sep. 30, 2018 USD ($)
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
Capital lease obligations, less than 1 year	$ 23
Capital lease obligations, 1 to 2 years	24
Capital lease obligations, 2 to 3 years	19
Capital lease obligations, 3 to 4 years	3
Capital lease obligations, 4 to 5 years	1
Capital lease obligations, Total	70
Operating lease obligations, less than 1 year	1,940
Operating lease obligations, 1 to 2 years	1,951
Operating lease obligations, 2 to 3 years	1,842
Operating lease obligations, 3 to 4 years	218
Operating lease obligations, 4 to 5 years	0
Operating lease obligations, Total	5,951
Total contractual obligations, less than 1 year	1,963
Total contractual obligations, 1 to 2 years	1,975
Total contractual obligations, 2 to 3 years	1,861
Total contractual obligations, 3 to 4 years	221
Total contractual obligations, 4 to 5 years	1
Total contractual obligations	$ 6,021

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Aug. 31, 2016	Sep. 30, 2018	Dec. 31, 2017
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
Aggregate payment for annual licensing fees	$ 12,000
Annual licensing fees payment period		Five-year period
Amortization period of intangible assets	12 months
Estimated fair value of contingent consideration		$ 523	$ 470

Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] - Collaborative Arrangement [Member] - LEO Pharma [Member] - Research and License Agreement [Member] $ in Millions	Oct. 23, 2018 USD ($)
Subsequent Event [Line Items]
Research, develop and commercialize antibodies number	2
Upfront payment received	$ 5.0
Project One [Member]
Subsequent Event [Line Items]
Preclinical and development milestone payments	74.0
Commercial milestone payments	157.0
Project Two [Member]
Subsequent Event [Line Items]
Preclinical and development milestone payments	86.5
Commercial milestone payments	$ 157.0