0001193125-20-058902 | 10-K | XBRL Viewer

Adjustment for change in fair value of ASC 815 liability classified stock options and warrant

(145,437)

(36,556)

(10,926)

(2,757)

Weighted-average common shares outstanding:

$ (145,437)

$ (36,556)

$ (13,683)

Adjustment for dilutive effect of liability classified stock options and warrants

^[1]

38,022,014

29,089,896

21,249,414

71,795

Net loss per common share – basic

38,022,014

29,089,896

21,321,209

$ (3.83)

$ (1.26)

$ (0.51)

Net loss per common share – diluted

$ (3.83)

$ (1.26)

$ (0.64)

[1]

Weighted average number of common shares used in the basic earnings per share calculation for the three and nine months ended December 31, 2019 includes the pre-funded warrants issued in connection with the Company’s June 2019 offering as the warrants are exercisable at any time and for nominal cash consideration.

Leases - Additional Information (Detail) $ in Thousands	12 Months Ended
Leases - Additional Information (Detail) $ in Thousands	Dec. 31, 2019 USD ($)
Lease description	The Company entered into a lease on January 25, 2019 in Vancouver to serve as the Company’s future head office, including both office and laboratory space. The commencement date of this lease depends upon completion of construction of the building and is currently estimated to be no later than September 1, 2021. This lease has an initial term of ten years, with two five-year extension options.
Weighted Average Remaining Lease Term	4 years 3 months 18 days
Operating lease expense	$ 2,845
Fixed lease payment	2,639
Variable lease payment	$ 251
BRITISH COLUMBIA
Lease Expiration Date	Aug. 01, 2021
Canada, Dollars
Discount Rate	4.60%
United States of America, Dollars
Discount Rate	2.90%

Financial Instruments - Schedule of Changes in Fair Value of Liability Classified Stock Options (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability at beginning of the period	$ 12,603
Reclassification to liabilities from equity	0	$ 0
Liability at end of the period	45,569	12,603
Liability Classified Stock Options [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability at beginning of the period	12,603	3,945
Reclassification to liabilities from equity	119	0
Increase (decrease) in fair value of liability classified stock options	35,994	9,451
Exercise of options	(3,804)	(142)
Unrealized foreign currency loss (gain)	657	(651)
Liability at end of the period	$ 45,569	$ 12,603

Property and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

. Property and Equipment

Property and equipment consist of the following:


	December 31,
	2019			2018
Computer hardware	$	2,438		$	1,439
Furniture and fixtures		1,248			747
Office equipment		729			535
Laboratory equipment		6,628			5,270
Leasehold improvements		6,374			3,377
Construction in progress		915			221

Property and equipment	$	18,332		$	11,589
Less accumulated depreciation		(7,232	)		(5,105	)

Property and equipment, net	$	11,100		$	6,484

During the year ended December 31, 2019, the Company entered into a new capital lease for office equipment of $12 (2018 – $10). Total assets under capital lease were $84 and $72 at December 31, 2019 and 2018, respectively; accumulated depreciation for these assets w

$70 and $56 at December 31, 2019 and 2018, respectively. As of December 31, 2019, the total future minimum lease payments for the capital leases

re $57 (2018 – $62).

Depreciation expense on property and equipment for the years ended December 31, 2019, 2018 and 2017 was $2,312, $1,880 and $1,681, respectively.

Leases - Schedule of Balance Sheet Classification of Lease Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
Current portion	$ 1,282
Long-term portion	5,599
Operating lease liabilities	6,881	$ 3,561
Current portion included in other current liabilities	10		$ 15
Long-term portion included in other long-term liabilities	46		42
Total finance lease liabilities	56		57
Total lease liabilities	$ 6,937		$ 57

Other expense, net -Schedule Of Other Non operating Income Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Income and Expenses [Abstract]
Foreign exchange (loss) gain	$ (567)	$ 72	$ 97
Change in fair value of warrant liabilities (note 10)		(3,565)	2,450
Loss on debt extinguishment (note 10)			(3,114)
Accretion expense			(248)
Other	(173)	(166)	(422)
Total	$ (740)	$ (3,659)	$ (1,237)

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

15. Income Taxes

a. Income tax (expense) recovery is comprised of the following:


	Year Ended December 31,
	2019			2018			2017
Current income tax expense	$	(1,373	)	$	(2,188	)	$	(429	)
Deferred income tax recovery (expense)		1,955			17			(15	)

Income tax recovery (expense)	$	582		$	(2,171	)	$	(444	)

Current income tax expense for the years ended December 31, 2019, 2018 and 2017 arose from the operations of Zymeworks Biopharmaceuticals Inc., the Company’s wholly owned subsidiary in the United States, and from the withholding taxes paid by the Company abroad in 2019, 2018 and 2017.

b. Income tax expense (recovery) varies from the amounts that would be computed by applying the expected Canadian income tax rate of 27% (2018: 27%, 2017: 26%) to loss before income taxes as shown in the following tables:


	Year Ended December 31,
	2019			2018			2017
Computed taxes at Canadian tax rate	$	39,453		$	9,284		$	2,587
Non-deductible expenses		(13,020	)		(4,311	)		(259	)
Difference between domestic and foreign tax rate		104			14			11
Effect of change in tax rates		(10	)		(2	)		860
Adjustments to prior year		(39	)		(543	)		313
Change in valuation allowance		(29,057	)		(9,340	)		(8,510	)
Share issuance costs in equity		3,578			1,906			2,547
Change in recognition and measurement of tax positions		(2,391	)		(672	)		—
Changes due to SR&ED		2,200			1,668			1,973
Other		(236	)		(175	)		34

Income tax recovery (expen se)	$	582		$	(2,171	)	$	(444	)

c. Deferred income tax assets and liabilities result from the temporary differences between the amounts of assets and liabilities recognized for financial statement and income tax purposes. The significant components of the deferred income tax assets and liabilities are as follows:


	December 31, 2019			December 31, 2018
Deferred tax assets:
Non-capital losses carried forward	$	33,016		$	6,680
Deferred revenue		8,894			9,848
Share issue costs		5,473			3,428
Property and equipment		1,731			1,167
Research and development deductions and credits		21,813			20,749
Contingent consideration		264			191
Stock options		1,242			220
Operating lease liability		1,540			—

Other		348			314

	$	74,321		$	42,597
Deferred tax liabilities:
Property and equipment		(583	)		(54	)
IPR&D		(4,760	)		(4,967	)
Operating lease right-of-use assets		(1,016	)		—
Other		(408	)		(132	)

	$	(6,767	)	$	(5,153	)

		67,554			37,444
Less: valuation allowance		(66,744	)		(37,360	)

Net deferred tax assets (liabilities)	$	810		$	84
Deferred tax asset	$	1,218		$	198
Deferred tax liability		(408	)		(114	)
Net deferred tax assets (liability)	$	810		$	84

The realization of deferred income tax assets is dependent upon the generation of sufficient taxable income during future periods in which the temporary differences are expected to reverse. The valuation allowance is reviewed on a quarterly basis and if the assessment of the “more likely than not” criterion changes, the valuation allowance is adjusted accordingly.

d. At December 31, 2019, the Company has net operating losses carried forward for tax purposes in Canada, which are available to reduce taxable income of future years of approximately $122.3 million (December 31, 2018: $24.7 million) expiring commencing 2035 through 2039.

At December 31, 2019, the Company also has unclaimed tax deductions for scientific research and experimental development expenditures of approximately $58.2 million (

December 31,

2018: $50.3 million), with no expiry. At December 31, 2019, the Company has approximately $8.1 million (

December 31,

2018: $9.0 million) of investment tax credits available to offset Canadian federal and provincial taxes payable expiring commencing in 2029 through 2039.

e. The investment tax credits and

non-capital

losses for income tax purposes expire as follows:


Expiry date	Investment tax credits		Non-capital losses
2029		1,078		—
2030		—		—
2031		—		—
2032		—		—
2033		—		—
2034		230		—
2035		1,068		3,961
2036		878		24,578
2037		1,587		10,625


Expiry date	Investment tax credits		Non-capital losses
2038		1,485		—
2039		1,749		83,117

	$	8,075	$	122,281

f. A reconciliation of total unrecognized tax benefits for the years ended December 31, 2019, 2018, and 2017 are as follows:


	Year Ended December 31,
	2019		2018		2017
Balance, beginning of year	$	672	$	—	$	—
Increases related to prior year tax positions		—		142		—
Increases related to current year tax positions		2,391		530		—

Balance, end of year	$	3,063	$	672	$	—

Included in the balance of unrecognized tax benefits at December 31, 2019 and 2018 are potential benefits of $nil that, if recognized, would affect the effective tax rate on income from continuing operations. Recognition of these potential benefits would result in a deferred tax asset in the form of net operating loss carry-forward, which would be subject to a valuation allowance based on conditions existing at the reporting date.

The Company recognizes interest expense and penalties related to unrecognized tax benefits within the provision for income tax expense on the consolidated statements of loss and comprehensive loss.

The Company currently files income tax returns in Canada and the U

, the jurisdiction

in which the Company believes that it is subject to tax. Further, while the statute of limitations in each jurisdiction where an income tax return has been filed generally limits the examination period, as a result of loss carry-forwards, the limitation period for examination generally does not expire until several years after the loss carry-forwards are utilized. Other than routine audits by tax authorities for tax credits and tax refunds that

the Company has

claimed, management is not aware of any other material income tax examination currently in progress by any taxing jurisdiction. Tax years ranging from 2006 to 2019 remain subject to Canadian income tax examinations. Tax years ranging from 2016 to 2019 remain subject to U.S. income tax examinations.

Financial Instruments - Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Liabilities
Financial liabilities measured at fair value	$ 46,547	$ 13,310
Liability Classified Stock Options [Member]
Liabilities
Financial liabilities measured at fair value	45,569	12,603
Liability for Contingent Consideration [Member]
Liabilities
Financial liabilities measured at fair value	978	707
Level 3 [Member]
Liabilities
Financial liabilities measured at fair value	46,547	13,310
Level 3 [Member] \| Liability Classified Stock Options [Member]
Liabilities
Financial liabilities measured at fair value	45,569	12,603
Level 3 [Member] \| Liability for Contingent Consideration [Member]
Liabilities
Financial liabilities measured at fair value	$ 978	$ 707

Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

. Intangible Assets

Intangible assets consist of the following:


	December 31,
	2019			2018
Computer software and research license	$	12,985		$	5,429
Less accumulated amortization		(6,928	)		(3,815	)

Intangible assets, net	$	6,057		$	1,614

Amortization expense on intangible assets for the years ended December 31, 2019, 2018 and 2017 was $3,113, $1,750 and $1,058, respectively.

Research, Collaboration and Licensing Agreements - Additional Information - Janssen (Detail) - USD ($)		12 Months Ended
	Nov. 13, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		$ 29,544,000	$ 53,019,000	$ 51,762,000
Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		0
Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		0
Royalty [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		$ 0
Janssen Biotech, Inc. [Member] \| Up-front Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue				50,000,000
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]
Revenue				$ 50,000,000.0
Janssen Biotech, Inc. [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Development Milestone [Member] \| Eligible to Receive [Member] \| Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 282,000,000.0
Janssen Biotech, Inc. [Member] \| 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	$ 1,120,000,000
Janssen Biotech, Inc. [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| Royalty [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Royalty agreement term	10 years
Payment for royalty	$ 10,000,000.0
Janssen Biotech, Inc. [Member] \| License Agreement [Member] \| Collaborative Arrangement [Member] \| License and Milestone Payments [Member] \| Eligible to Receive [Member] \| Maximum [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 1,450,000,000

Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Computer software and research license	$ 12,985	$ 5,429
Less accumulated amortization	(6,928)	(3,815)
Intangible assets, net	$ 6,057	$ 1,614

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Recovery)

Income tax (expense) recovery is comprised of the following:


	Year Ended December 31,
	2019			2018			2017
Current income tax expense	$	(1,373	)	$	(2,188	)	$	(429	)
Deferred income tax recovery (expense)		1,955			17			(15	)

Income tax recovery (expense)	$	582		$	(2,171	)	$	(444	)

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (recovery) varies from the amounts that would be computed by applying the expected Canadian income tax rate of 27% (2018: 27%, 2017: 26%) to loss before income taxes as shown in the following tables:


	Year Ended December 31,
	2019			2018			2017
Computed taxes at Canadian tax rate	$	39,453		$	9,284		$	2,587
Non-deductible expenses		(13,020	)		(4,311	)		(259	)
Difference between domestic and foreign tax rate		104			14			11
Effect of change in tax rates		(10	)		(2	)		860
Adjustments to prior year		(39	)		(543	)		313
Change in valuation allowance		(29,057	)		(9,340	)		(8,510	)
Share issuance costs in equity		3,578			1,906			2,547
Change in recognition and measurement of tax positions		(2,391	)		(672	)		—
Changes due to SR&ED		2,200			1,668			1,973
Other		(236	)		(175	)		34

Income tax recovery (expen se)	$	582		$	(2,171	)	$	(444	)

Schedule of Significant Components of the Deferred Income Tax Assets and Liabilities

The significant components of the deferred income tax assets and liabilities are as follows:


	December 31, 2019			December 31, 2018
Deferred tax assets:
Non-capital losses carried forward	$	33,016		$	6,680
Deferred revenue		8,894			9,848
Share issue costs		5,473			3,428
Property and equipment		1,731			1,167
Research and development deductions and credits		21,813			20,749
Contingent consideration		264			191
Stock options		1,242			220
Operating lease liability		1,540			—

Other		348			314

	$	74,321		$	42,597
Deferred tax liabilities:
Property and equipment		(583	)		(54	)
IPR&D		(4,760	)		(4,967	)
Operating lease right-of-use assets		(1,016	)		—
Other		(408	)		(132	)

	$	(6,767	)	$	(5,153	)

		67,554			37,444
Less: valuation allowance		(66,744	)		(37,360	)

Net deferred tax assets (liabilities)	$	810		$	84
Deferred tax asset	$	1,218		$	198
Deferred tax liability		(408	)		(114	)
Net deferred tax assets (liability)	$	810		$	84

Schedule of Expiry Details of Investment Tax Credits, Non-Capital Losses and Net Operating Losses for Income Tax Purposes

The investment tax credits and

non-capital

losses for income tax purposes expire as follows:


Expiry date	Investment tax credits		Non-capital losses
2029		1,078		—
2030		—		—
2031		—		—
2032		—		—
2033		—		—
2034		230		—
2035		1,068		3,961
2036		878		24,578
2037		1,587		10,625


Expiry date	Investment tax credits		Non-capital losses
2038		1,485		—
2039		1,749		83,117

	$	8,075	$	122,281

Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of total unrecognized tax benefits for the years ended December 31, 2019, 2018, and 2017 are as follows:


	Year Ended December 31,
	2019		2018		2017
Balance, beginning of year	$	672	$	—	$	—
Increases related to prior year tax positions		—		142		—
Increases related to current year tax positions		2,391		530		—

Balance, end of year	$	3,063	$	672	$	—

Payment of long-term debt and exercise of liability classified warrants (Tables)

12 Months Ended

Dec. 31, 2019

Investments, All Other Investments [Abstract]

Summary of Debt


	Year ended December 31, 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	)

Income Taxes - Summary of Significant Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Non-capital losses carried forward	$ 33,016	$ 6,680
Deferred revenue	8,894	9,848
Share issue costs	5,473	3,428
Property and equipment	1,731	1,167
Research and development deductions and credits	21,813	20,749
Contingent consideration	264	191
Stock options	1,242	220
Operating lease liability	1,540
Other	348	314
Deferred Tax Assets, Gross	74,321	42,597
Deferred tax liabilities:
Property and equipment	(583)	(54)
IPR&D	(4,760)	(4,967)
Operating lease right-of-use assets	(1,016)
Other	(408)	(132)
Deferred tax liabilities, Gross	(6,767)	(5,153)
Deferred Tax Assets (Liabilitites) Before Valuation Allowance	67,554	37,444
Deferred Tax Assets, Valuation Allowance	(66,744)	(37,360)
Net deferred tax assets (liabilities)	810	84
Deferred tax asset	1,218	198
Deferred tax liabilities	(408)	(114)
Net deferred tax assets (liability)	810	84
Deferred Tax Net [Member]
Deferred tax liabilities:
Net deferred tax assets (liabilities)	810	84
Net deferred tax assets (liability)	$ 810	$ 84

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

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


	December 31, 2019		Level 1		Level 2		Level 3
Liabilities
Liability classified stock options	$	45,569	$	—	$	—	$	45,569
Liability for contingent consideration		978		—		—		978

Total	$	46,547	$	—	$	—	$	46,547


	December 31, 2018		Level 1		Level 2		Level 3
Liabilities
Liability classified stock options	$	12,603	$	—	$	—	$	12,603
Liability for contingent consideration		707		—		—		707

Total	$	13,310	$	—	$	—	$	13,310

Summary of Changes in Fair Value of the Company's Liability for Contingent Consideration

The following table presents the changes in fair value of the Company’s liability for contingent consideration:


	Liability at the beginning of the period		Increase (decrease) in fair value of liability for contingent consideration		Liability at end of the period
Year ended December 31, 2019	$	707	$	271	$	978
Year ended December 31, 2018	$	470	$	237	$	707

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 the beginning of the period		Reclassification to liability from equity		Increase (decrease) in fair value of warrant liabilities		Exercise of warrants			Liability at end of the period
Year ended December 31, 2019	$	—	$	—	$	—	$	—		$	—
Year ended December 31, 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 liability classified stock options:


	Liability at beginning of the period		Reclassification to liabilities from equity		Increase (decrease) in fair value of liability classified stock options		Exercise of options			Unrealized foreign currency loss (gain)			Liability at end of the period
Year ended December 31, 2019	$	12,603	$	119	$	35,994	$	(3,804	)	$	657		$	45,569
Year ended December 31, 2018	$	3,945	$	—	$	9,451	$	(142	)	$	(651	)	$	12,603

Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Dec. 31, 2019	Feb. 27, 2020	Jun. 30, 2019
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	ZYMEWORKS INC.
Trading Symbol	ZYME
Entity Central Index Key	0001403752
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Address, State or Province	BC
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Shares
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		45,518,869
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Public Float			$ 851.7
Entity File Number	001-38068
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	47-2569713
Entity Address, Address Line One	Suite 540—1385 West 8th Avenue
Entity Address, City or Town	Vancouver
Entity Address, Postal Zip Code	V6H 3V9
Local Phone Number	678-1388
City Area Code	604
Document Annual Report	true
Document Transition Report	false

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Components of Property and Equipment

Property and equipment consist of the following:


	December 31,
	2019			2018
Computer hardware	$	2,438		$	1,439
Furniture and fixtures		1,248			747
Office equipment		729			535
Laboratory equipment		6,628			5,270
Leasehold improvements		6,374			3,377
Construction in progress		915			221

Property and equipment	$	18,332		$	11,589
Less accumulated depreciation		(7,232	)		(5,105	)

Property and equipment, net	$	11,100		$	6,484

Other expense, net

12 Months Ended

Dec. 31, 2019

Other Income and Expenses [Abstract]

Other expense, net

14.

Other expense, net

Other expenses consist of the following:


	Year ended December 31,
	2019			2018			2017
Foreign exchange (loss) gain	$	(567	)	$	72		$	97
Change in fair value of warrant liabilities (note 10)		—			(3,565	)		2,450
Loss on debt extinguishment (note 10)		—			—			(3,114	)
Accretion expense		—			—			(248	)
Other		(173	)		(166	)		(422	)

	$(740)			$(3,659)			$(1,237)

Research, Collaboration and Licensing Agreements - Additional Information - LEO (Detail) - USD ($)		12 Months Ended
	Oct. 23, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		$ 29,544,000	$ 53,019,000	$ 51,762,000
Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		0
Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		$ 0
LEO Pharma [Member] \| Up-front Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			5,000,000
LEO Pharma [Member] \| Research and License Agreement [Member] \| Collaborative Arrangement [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 0
LEO Pharma [Member] \| Research and License Agreement [Member] \| Collaborative Arrangement [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	0
LEO Pharma [Member] \| Research and License Agreement [Member] \| Collaborative Arrangement [Member] \| Investigational New Drug [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 0
LEO Pharma [Member] \| Research and License Agreement [Member] \| Collaborative Arrangement [Member] \| First Therapeutic [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Royalty payments on future global net sales	20.00%
LEO Pharma [Member] \| Research and License Agreement [Member] \| Collaborative Arrangement [Member] \| First Therapeutic [Member] \| Maximum [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 74,000,000.0
LEO Pharma [Member] \| Research and License Agreement [Member] \| Collaborative Arrangement [Member] \| First Therapeutic [Member] \| Maximum [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	157,000,000.0
LEO Pharma [Member] \| Research and License Agreement [Member] \| Collaborative Arrangement [Member] \| Second Therapeutic [Member] \| Maximum [Member] \| Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	86,500,000
LEO Pharma [Member] \| Research and License Agreement [Member] \| Collaborative Arrangement [Member] \| Second Therapeutic [Member] \| Maximum [Member] \| Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 157,000,000.0
LEO Pharma [Member] \| Research and License Agreement [Member] \| Collaborative Arrangement [Member] \| Up-front Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			$ 5,000,000.0

Consolidated Balance Sheets (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common shares, no par value	$ 0	$ 0
Common shares, issued	39,564,529	31,977,668
Common shares, outstanding	39,564,529	31,977,668
Common Stock, Shares Authorized, Unlimited [Fixed List]	Unlimited	Unlimited

Nature of Operations	12 Months Ended
Nature of Operations	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	1. Nature of Operations Zymeworks Inc. (the “Company” or “Zymeworks”) is a clinical-stage biopharmaceutical company dedicated to the development of next-generation multifunctional biotherapeutics. 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). 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 by 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.

Other expense, net (Tables)

12 Months Ended

Dec. 31, 2019

Other Income and Expenses [Abstract]

Schedule of Other Nonoperating Income (Expense)

Other expenses consist of the following:


	Year ended December 31,
	2019			2018			2017
Foreign exchange (loss) gain	$	(567	)	$	72		$	97
Change in fair value of warrant liabilities (note 10)		—			(3,565	)		2,450
Loss on debt extinguishment (note 10)		—			—			(3,114	)
Accretion expense		—			—			(248	)
Other		(173	)		(166	)		(422	)

	$(740)			$(3,659)			$(1,237)

Subsequent event	12 Months Ended
Subsequent event	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent events	19 . Subsequent event On January 27 , 2020, the Company closed a public offering pursuant to which the Company sold 4,924,729 common shares , including the sale of 900,000 common shares to the underwriters upon their full exercise of their over-allotment option , at $46.50 per common share and 1,075,271 pre-funded warrants in lieu of common shares at $46.4999 per pre-funded warrant. Net proceeds were approximately $ 301.0 million, after underwriting discounts, commissions and offering expenses.

Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued liabilities consist of the following:


	December 31,
	2019		2018
Trade payables	$	5,349	$	2,599
Accrued research expenses		24,262		6,633
Employee compensation and vacation accruals		5,009		2,926
Accrued legal and professional fees		231		556
Other		840		689

Total	$	35,691	$	13,403

Schedule of Other Long-term Liabilities

Other

long term

liabilities consisted of the following:


	December 31,
	2019		2018
Liability for contingent consideration (note 18 )	$	978	$	707
Lease inducements		—		197
Finance lease liability (note 1 6 )		46		42

Total	$	1,024	$	946

Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Stockholders' Equity Note [Abstract]

Shareholders' Equity

11. Shareholders’ Equity

a.	Equity Offerings

Initial Public Offering

The Company closed its initial public offering (“IPO”) on May 3, 2017, pursuant to which the Company sold 4,894,467 common shares including the sale of 394,467 common shares to the underwriters upon their partial exercise of their over-allotment option to purchase additional shares on May 31, 2017.

The public offering price of the shares sold in the IPO was $13.00 per share. The Company received net proceeds of approximately $54.2 million, after underwriting discounts, commissions and offering expenses

of $9.4 million

. 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 11

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 10).

2018 Public Offering

On June 11, 2018, the Company closed an offering

pursuant to which the Company sold

6,210,000

common shares including the sale of

810,000

common shares to the underwriters upon their full exercise of their over-allotment option

at an offering price of $15.75 per share

. The Company received net proceeds of approximately $

90.8

million, after underwriting discounts, commissions and offering expenses

of $7.1 million

2019 Public Offering

On June 24, 2019, the Company closed an

offering

pursuant to which the Company sold 7,013,892 common shares including the sale of 1,458,336 common shares to the underwriters upon their full exercise of their over-allotment option

at an offering price of $18.00 per common share

and 4,166,690

Pre-Funded

Warrants

(note 11d)

in lieu of common shares

at $17.9999 per Pre-Funded Warrant

. Net proceeds were approximately $188.0 million, after underwriting discounts, commissions and offering expenses

of $13.2 million

b.	Authorized

On May

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

2015

, the Company had

6,413,265

authorized Redeemable Convertible Class A Preferred Shares.

c .	Preferred Shares and Redeemeable Convertible Class A Preferred Shares

As of December 31, 2019 and 2018, 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.

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.

Prior to the IPO, the Company issued Redeemable Convertible Class A Preferred Shares (“Class A Preferred 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

Class A Preferred Shares

outside of permanent equity as the redemption of such shares was not solely under the control of the Company.

Immediately prior to the consummation of the IPO, all outstanding Class A Preferred Shares were converted into 7,098,194 common shares on a

1-for-1.349367

basis. 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.

As a result of conversion the Company issued 7,098,194 common shares in exchange for 5,260,404 Class A Preferred Shares. The

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 .	Pre-Funded Warrants

On June 24, 2019, the Company completed a public offe

ing of 7,013,892 common shares at $18.00 per share

issued

re-

unded

arrants at a price of $17.9999 per

re-

unded

arrant which granted holders of warrants

the right

to purchase up to 4,166,690 common shares of the Company, at an exercise price of $0.0001 per share (the “Exercise Price”). The

Pre-Funded

Warrants are exercisable by the holders at any time on or after the original issue date. The

Pre-Funded

Warrants do not expire unless they are exercised or settled in accordance with the

Pre-Funded

arrant agreement.

As the Pre-Funded Warrants meet the condition for equity classification, proceeds from issuance of the Pre-Funded Warrants, net of any transaction costs, are recorded in additional paid-in capital. Upon exercise of the Pre-Funded Warrants, the historical costs recorded in additional paid-in capital along with the Exercise Price collected from holders will be recorded in common shares.

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. Common shares are issued from treasury when options are exercised.

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

The exercise prices of the Company’s stock options

under the Original Plan

are denominated in Canadian dollars. The U.S. dollar amounts have been translated using the period end rate or the average

foreign exchange

rate for the period, as applicable, and have been provided for information purposes. Upon the effectiveness of the Company’s New Stock Option Plan described below, no further options were issuable under the Original Plan. However, all outstanding options granted under the Original Plan remain outstanding, subject to the terms of the Original Plan and the applicable grant documents, until such outstanding options are exercised or they terminate or expire by their terms.

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 Internal Revenue 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 stock 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 stock-based awards have been granted.

The maximum number of common shares reserved for issuance under the New Plan is 5,686,097, which includes 3,985,768 shares issuable upon exercise of

stock

options outstanding as of December 31, 2018. Beginning in

019 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 dollars into United States dollars 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		326,975			16.51		12.74
Expired		(7,908	)		16.22		12.52
Exercised		(94,812	)		8.81		6.80
Forfeited		(41,977	)		18.09		13.96

Outstanding, December 31, 2018		2,445,990			14.66		10.74		6.99		14,421		10,571
Granted		358,800			22.92		17.14
Expired		(1,047	)		4.75		3.65
Exercised		(403,553	)		12.53		9.46
Forfeited		(43,777	)		18.42		13.91

Outstanding, December 31, 2019		2,356,413			16.21		12.46		6.70		101,404		77,807
December 31, 2019
Exercisable		1,623,284			14.49		11.12		5.89		72,648		55,743
Vested and expected to vest		2,317,044			16.15		12.39		6.67		99,860		76,622

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		910,783			13.03
Expired		—			—
Exercised		—			—
Forfeited		(7,600	)		9.82

Outstanding, December 31, 2018		1,539,778			11.67		9.02		4,876
Granted		1,501,750			19.89
Expired		—			—
Exercised		(126,108	)		13.32
Forfeited		(62,074	)		14.91

Outstanding, December 31, 2019		2,853,346			15.85		8.66		84,481
December 31, 2019
Exercisable		712,423			11.21		7.66		24,403
Vested and expected to vest		2,738,378			15.79		8.60		81,255

The Company received cash proceeds of $5,498 (C$6,683) (2018: $682 (C$883), 2017: $965 (C$1,250)) from stock options exercised.

The stock options expire at various dates from June 30, 2020 to November 7, 2029.A summary of the

non-vested

stock option activity and related information of the Company’s stock options granted in Canadian dollars is as follows:


	Number of options			Weighted-average grant date fair value (C$)		Weighted- average grant date fair value (US$)
Non-vested, December 31, 2018		899,079			10.25		7.51
Options granted		358,800			14.89		11.42
Options vested		(482,042	)		28.06		21.53
Options forfeited and cancelled		(42,708	)		16.43		12.60

Non-vested, December 31, 2019		733,129			16.03		12.30

A summary of the

non-vested

stock option activity and related information of the Company’s stock options granted in U.S. dollars is as follows:


	Number of options			Weighted- average grant date fair value (US$)
Non-vested, December 31, 2018		1,254,428			7.31
Options granted		1,501,750			13.01
Options vested		(553,181	)		7.43
Options forfeited and cancelled		(62,074	)		9.63

Non-vested, December 31, 2019		2,140,923			11.21

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 2), is recorded in research and development expenses, general and administration expenses and finance expense (income) as follows:


	Year Ended December 31,
	2019		2018		2017
Research and development expenses:
Stock-based compensation for equity classified instruments	$	5,939	$	2,203	$	913
Change in fair value of liability classified equity instruments		8,358		2,032		492

	$	14,297	$	4,235	$	1,405
General and administrative expenses:
Stock-based compensation for equity classified instruments	$	6,737	$	3,693	$	1,852
Change in fair value of liability classified equity instruments		27,470		5,362		486

	$	34,207	$	9,055	$	2,338
Finance expense (income):
Stock-based compensation for equity classified instruments	$	—	$	1	$	—
Change in fair value of liability classified equity instruments		166		150		(314	)

	$	166	$	151	$	(314	)

For the year ended December 31, 2019,

stock

-based compensation expense

$12,676 was recorded in additional

paid-in

capital and the remaining balance was recorded in the liability classified stock options and ESPP liability accounts (2018: $3,876 in additional

paid-in

capital and the remaining balance in liability classified stock options and ESPP liability accounts, 2017: $4,827 in additional

paid-in

capital and the remaining balance in liability classified stock options account).


	Year ended December 31,
	2019			2018			2017
Dividend yield		0	%		0	%		0	%
Expected volatility		73.59	%		66.25	%		66.25	%
Risk-free interest rate		1.47	%		2.18	%		1.44	%
Forfeiture rate		5.37	%		5.37	%		4.75	%
Expected average life of options		6.05 years			5.91 years			5.90 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:


	Year ended December 31,
	2019			2018			2017
Dividend yield		0	%		0	%		0	%
Expected volatility		73.15	%		66.78	%		65.89	%
Risk-free interest rate		2.23	%		2.69	%		1.84	%
Forfeiture rate		5.37	%		5.37	%		4.75	%
Expected average life of options		6.03 years			5.88 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 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 outstanding at December 31, 2019 and 2018 are as follows:


	December 31, 2019			December 31, 2018
Dividend yield		0	%		0	%
Expected volatility		76.09	%		72.27	%
Risk-free interest rate		1.68	%		1.94	%
Forfeiture rate		5.37	%		5.37	%
Expected average option term		3.38 years			3.59 years
Number of liability classified share options outstanding		1,249,365			1,437,163

The total intrinsic value of stock options exercised during the years ended December 31, 2019, 2018 and 2017 was $9,416, $2,388 and $1,550 respectively. At December 31, 2019, the unamortized compensation expense related to unvested options was $16,720. The remaining unamortized compensation expense as of December 31, 2019 will be recognized over a weighted-average period of 1.8 years.

f .	Employee Stock Purchase Plan:

On April 10, 2017, the

Company’s shareholders approved an

employee stock purchase plan (“ESPP

”) which

became effective immediately prior to the consummation of the

Company’s

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 Company currently holds offerings consisting of a single

six-month

purchase period commencing on

January

and July

of each calendar year, with a single purchase date at the end of the purchase period on June

and December

of each calendar year.

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

thousand

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.

As this plan is considered compensatory

, the Company recognizes compensation expense on these awards based on their estimated grant date fair value using the Black-Scholes option pricing model. The Company recognizes compensation expense in the consolidated statements of loss and comprehensive loss on a straight-line basis over the requisite service period.

For the year ended December 31, 2019, the

Company

recorded

compensation expense of $326 (2018: $114) in

research and development expense and general and administrative expense accounts. As of December 31, 2019, total amount contributed by the ESPP participants

and not yet settled

is $435

(December 31, 2018: $359).

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

, Zymeworks Biopharmaceuticals Inc., which was incorporated in the State of Washington on December 5, 2014. All inter-company accounts and transactions have been eliminated

consolidation.

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

Foreign Currency

Use of Estimates

Revenue Recognition

Effective January 1, 2018, the Company adopted on a modified retrospective basis Accounting Standards Codification Topic 606,

Revenue from Contracts with Customers

•

non-refundable,

upfront license and platform technology access fees;

•

research, development and regulatory milestone payments;

•

research support payments; and

•

royalties and commercial milestone payments.

Non-refundable,

upfront license and platform technology access fees

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 revenue from

non-refundable,

upfront fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the related revenue recognition accordingly.

Research, development and regulatory milestone payments

re-evaluates

catch-up

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

•

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

•

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

•

achievement of certain other technical, scientific or development criteria.

Regulatory milestone payments may include the following types of events:

•

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

Research support and other payments

Royalties and commercial milestone payments

For arrangements that include sales-based royalties, including commercial milestone payments based on

pre-specified

Contract assets and liabilities

Contract Assets and Liabilities

Contract assets are mainly comprised of trade receivables net of allowance for doubtful debts, which includes amounts billed and currently due from customers.

Cash and Cash Equivalents

Short-Term Investments

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable

nd Allowance for Doubtful Accoun

Deferred Financing Costs

Deferred Financing

Fees

Deferred financing

fees

consist of

amount

upon closing of such tra

nsaction.

Segment Information

Property and Equipment

The Company records depreciation using the straight-line method over the estimated useful lives of the property and equipment as follows:


Asset Class		Rate
Computer hardware		3 years
Office equipment		3 years
Furniture and fixtures		5 years
Laboratory equipment		7 years
Leasehold improvements		Shorter of the initial lease term or useful life

Property and equipment acquired or disposed of during the year are depreciated proportionately for the period they are in use.

Patents and Intellectual Property Costs

related to

approved products or if there are alternative future uses

the underlying

technol

ogy

. No patent or intellectual property costs have been capitalized to date.

Impairment of Long-Lived Assets

held-for-sale.

Government Grants and Credits

Research and Development Costs

stock-based

compensation expense, and costs associated with nonclinical activities and regulatory approvals.

Clinical Trial Expense Accruals

the

Income Taxes

Interest and tax penalties are expensed as incurred.

Stock-Based Compensation

paid-in

capital or other income and expenses (ASC 815 awards) for the period.

•

Upon the change of the compensation currency for certain executives from Canadian dollars to U.S. dollars effective January

2017

options

held by such executives which

were

previously classified as equity awards per ASC

718

with a total fair value of $7,371

ASC

718

, upon the change in classification, the change in fair value of the options while they were classified as equity is recorded as an adjustment to the

statement of loss

•

Upon the change of the compensation currency for a certain executive from Canadian dollars to U.S. dollars effective January 1,

paid-in

Business Combination and Goodwill

Business Combinations and Goodwill

Acquired In-Process Research and Development and Definite-lived Intangible Assets

Acquired

In-Process

Research and Development (IPR&D) and Definite-lived Intangible Assets

Net Loss Per Share

Net loss per share

if-converted

Payment of long-term debt and exercise of liability classified warrants

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Payment of long-term debt and exercise of liability classified warrants

10. Payment of long-term debt

and exercise of liability classified warrants

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, “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. Under the Credit Agreement, the Company had the option to settle the loan earlier, subject to certain early payment premiums.

ursuant 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

re recorded in the consolidated statements of loss and comprehensive loss.

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 11

), 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.

Early Repayment of the Perceptive Debt and exercise of warrants:

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

2017

to June

2017

, the Company recorded $

360

in interest expense, $

248

in accretion expense and $

in amortization of debt issue costs.


	Year ended December 31, 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	)

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.

Leases

12 Months Ended

Dec. 31, 2019

Research and development collaborations (note 13)

Leases

16. Leases

The Company leases separate office and laboratory space in Vancouver, British Columbia, with terms of each

lease expiring in August 2021. The Company entered into a lease on January 25, 2019 in Vancouver to serve as the Company’s future head office, including both office and laboratory space. The commencement date of this lease depends upon completion of construction of the building and is currently estimated to be no later than September 1, 2021. This lease has an initial term of ten years, with two five-year extension options. In addition, the Company leases office space in Seattle, Washington which expires in February 2022. On February 25, 2019, the Company entered into a new lease for office space in Seattle. The commencement date of this lease was July 30, 2019 for a portion of the space and is April 1, 2020, subject to adjustment related to ongoing construction, for the remaining portion of the space. The expiration date of the lease is September 30, 2025. None of the optional extension periods have been included in the determination of the

right-of-use

asset or the lease liability for operating leases as the Company did not consider it reasonably certain that the Company would exercise any such options.

The balance sheet classification of the Company’s lease liabilities was as follows:


	December 31, 2019		December 31, 2018
Operating lease liabilities:
Current portion	$	1,282	$	—
Long-term portion		5,599		—

Total operating lease liabilities		6,881	$	—

Finance lease liabilities:
Current portion included in other current liabilities		10		15
Long-term portion included in other long-term liabilities		46		42

Total finance lease liabilities		56		57

Total lease liabilities	$	6,937	$	57

Lease payments for the year ended December 31, 2019 were $1.6 million and have been included in net cash provided by operating activities in the consolidated statement of cash flows.

As of December 31, 2019, the future minimum lease payments of the Company’s operating lease liabilities were as follows:


	Operating leases
Within 1 year	$	1,438
1 to 2 years		2,076
2 to 3 years		1,007
3 to 4 years		991
4 to 5 years		1,019
Thereafter		781

Total operating lease payments		7,312
Less:
Imputed interest		(431	)

Operating lease liabilities	$	6,881

As of December 31, 2019, the weighted average remaining lease term is 4.3 years and the discount rate used to determine the operating lease liability was 4.6% for leases in Canadian dollar

and 2.9% for leases in U.S. dollar

During the

year

ended December 31, 2019, the Company incurred total operating lease expenses of $2,845, which included lease expenses associated with fixed lease payments of $2,639, and variable payments associated with

ommon area maintenance and similar expenses of $251.

The Company also leases office equipment under finance lease agreements. As of December 31, 2019, the future minimum lease payments of the Company’s finance lease liabilities were as follows:


	Finance leases
Within 1 year	$	31
1 to 2 years		16
2 to 3 years		6
3 to 4 years		3
4 to 5 years		1
Thereafter		—

Total finance lease payments		57
Less:
Imputed interest		(1	)

Finance lease liabilities	$	56

Consolidated Statements of Loss and Comprehensive Loss - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Revenue

$ 29,544

$ 53,019

$ 51,762

Operating expenses

Research and development, net of government grants and credits

115,900

56,926

41,144

General and administrative

64,177

29,457

18,550

Impairment on acquired IPR&D (note 6)

768

1,536

Total operating expenses

180,845

86,383

61,230

Loss from operations

(151,301)

(33,364)

(9,468)

Other income (expense):

Interest and other income

6,022

2,638

743

Other expense, net (note 14)

(740)

(3,659)

(1,237)

Total other income (expense), net

5,282

(1,021)

(494)

Loss before income taxes

(146,019)

(34,385)

(9,962)

Income tax recovery (expense), net (note 15)

582

(2,171)

(444)

Net loss and comprehensive loss

$ (145,437)

$ (36,556)

$ (10,406)

Net loss per common share (note 4):

$ (3.83)

$ (1.26)

$ (0.51)

Weighted-average common shares outstanding (note 4):

$ (3.83)

$ (1.26)

$ (0.64)

^[1]

38,022,014

29,089,896

21,249,414

Organization, Consolidation and Presentation of Financial Statements [Abstract]

38,022,014

29,089,896

21,321,209

[1]

Payment of long-term debt and exercise of liability classified warrants - Perceptive Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands				5 Months Ended	12 Months Ended
	Jun. 06, 2017 USD ($)	Apr. 28, 2017 $ / shares shares	Jun. 02, 2016 USD ($) $ / shares shares	Jun. 06, 2017 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jun. 24, 2019 $ / shares	Jun. 04, 2018 shares	May 10, 2018 shares
Line of Credit Facility [Line Items]
Warrants issued to purchase shares \| shares		398,076
Warrants exercise price \| $ / shares		$ 8.67					$ 0.0001
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 (note 10)						$ (7,814)
Accretion expense						248
Amortization of debt issue costs						35
Increase (decrease) in fair value of warrants					$ 3,565	$ (2,450)
Perceptive Warrants [Member]
Line of Credit Facility [Line Items]
Warrants issued to purchase shares \| shares								220,000	178,076
Common stock issued upon exercise of warrants \| shares								126,880	79,481
Increase (decrease) in fair value of warrants					$ 3,565
Perceptive Debt [Member]
Line of Credit Facility [Line Items]
Credit facility			$ 15,000
Debt principal balance	$ 7,500			$ 7,500
Repayment of debt (note 10)	(7,814)
Early repayment premium	300
Legal fees	$ 14
Interest expense				360
Accretion expense				248
Amortization of debt issue costs				$ 35
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
Warrants expiry term			5 years
Redeemable Convertible Class A Preferred Shares [Member] \| Warrant liabilities [Member]
Line of Credit Facility [Line Items]
Conversion ratio			1.349367
Tranche A Term Loans [Member]
Line of Credit Facility [Line Items]
Net proceeds received			$ 6,953
Tranche A Term Loans [Member] \| Perceptive Debt [Member]
Line of Credit Facility [Line Items]
Credit facility			7,500
Tranche B Term Loans [Member] \| Perceptive Debt [Member]
Line of Credit Facility [Line Items]
Credit facility			$ 7,500

Research, Collaboration and Licensing Agreements - Additional Information - Daiichi Sankyo Two (Detail) - USD ($)		12 Months Ended
	May 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		$ 29,544,000	$ 53,019,000	$ 51,762,000
Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		0
Commercial Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		0
Royalty [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue		0
Daiichi Sankyo, Co., Ltd [Member] \| Up-front Technology Access Fee [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			$ 18,000,000
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]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 484,700,000
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	$ 340,000,000.0
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%

Research, Collaboration and Licensing Agreements - Additional Information - Lilly Two (Detail) - USD ($)			12 Months Ended			62 Months Ended
	Dec. 31, 2019	Oct. 22, 2014	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			$ 29,544,000	$ 53,019,000	$ 51,762,000
Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue			0
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] \| Research and Development Milestone [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue						$ 10,000,000.0
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		$ 125,000,000.0
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	$ 20,000,000.0
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	$ 95,000,000.0

Research, Collaboration and Licensing Agreements

12 Months Ended

Dec. 31, 2019

Research, Collaboration and Licensing Agreements

13. Research, Collaboration and Licensing Agreements

Revenue recognized from the Company’s strategic partnerships is summarized as follows:


	Year ended December 31,
	2019		2018		2017
Janssen:
Recognition of upfront fee	$	—	$	—	$	50,000
Merck:
Milestone revenue		2,000		—		—
Lilly:
Milestone revenue		8,000		2,000		—
BMS:
Option exercise fee		7,500		4,000		—
Daiichi Sankyo:
Technology access fee		—		18,000		—
Milestone revenue		—		—		1,000
Commercial license option fee		3,500
LEO:
Recognition of upfront fee		—		5,000	$	—
BeiGene:
Recognition of upfront fee		3,530		23,530	$	—
Iconic:
Milestone revenue		1,000		—	$	—
Research support payments and other payments		4,014		489		762

	$	29,544	$	53,019	$	51,762

Contract Assets and Liabilities

As at December 31, 2019 and 2018, contract assets from research, collaboration and licensing agreements were $nil and

$nil

respectively and contract liabilities

were

32,941

and $36,471, respectively. Contract liabilities relate to deferred revenue from the BeiGene agreement described below.

2019 Agreements:

License Agreement with Iconic Therapeutics, Inc. (“Iconic”)

On May 13, 2019, the Company entered into a license agreement with Iconic to develop and commercialize an antibody-drug conjugate

(ICON-2)

targeting tissue factor generated through the use of the Company’s ZymeLink platform. Under the terms of this agreement, the Company granted Iconic a worldwide, royalty-bearing, antibody sequence-specific, exclusive license to develop and commercialize certain products. Iconic is responsible for the development, manufacturing, and commercialization of the products.

Pursuant to this agreement, the Company is eligible to receive development and commercial milestone payments and tiered royalties on worldwide net sales. From contract inception to December 31, 2019, the Company has received $1.0 million in milestone payments. This agreement also provides the Company with co-promotion rights with increased royalties for products generated from this collaboration. If Iconic sublicenses the program, in lieu of co-promotion rights, the Company will receive a share of the revenue Iconic receives from any partners as well as tiered royalties on worldwide net sales.

2018 and prior agreements:

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, which was amended and restated in December 2014, to develop and commercialize three bispecific antibodies generated through the use of the Company’s Azymetric and EFECT platforms. Under the terms of the agreement, the Company granted Merck a worldwide, royalty-bearing antibody sequence pair exclusive license to research, develop and commercialize certain licensed products. The amendments did not impact the determination of units of accounting or the allocation of the arrangement consideration.

Over the life of the agreement, the Company is eligible to receive payments up to $190.75 million, for various license and milestone payments including an upfront payment. From contract inception to December 31, 2019, the Company has received an upfront payment of $1.25 million and research and development related payments totaling $5.5 million. The Company is eligible to receive additional payments for completion of investigational new drug (“IND”) enabling studies of up to $4.0 million, development milestone payments of up to $66.0 million and commercial milestone payments of up to $114.0 million. In addition, the Company is eligible to receive tiered royalties in the low to

mid-single

digits on product sales. 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.

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.

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.

The Company is eligible to receive up to $52.0 million for various license and milestone payments. From contract inception to December 31, 2019, the Company has received an upfront payment of $1.0 million and research and development related payments of $3.0 million. The Company is eligible to receive additional development milestone payments of up to $8.0 million and commercial milestone payments of up to $40.0 million. In addition, the Company is eligible to receive tiered royalties in the low to

mid-single

digits on product sales. 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. 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.

Lilly was a related party during 2018 but was not considered to be a related party as of December 31, 2018 and thereafter.

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 Lilly was granted a worldwide, royalty-bearing antibody sequence pair-specific license to

research, develop and commercialize certain licensed products. 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 up to $125.0 million in various license and milestone payments. From contract inception to December 31, 2019, the Company has received research and development related payments totaling $10.0 million. The Company is eligible to receive additional development milestone payments of up to $20.0 million and commercial milestone payments of up to $95.0 million. In addition, the Company is eligible to receive tiered royalties in the low to mid-single digits on product sales. 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.

Licensing and Collaboration Agreement with Celgene Corporation & Celgene Alpine Investment Co. LLC (formerly “Celgene” and now a Bristol-Myers Squibb company, “BMS”)

On December 23, 2014, the Company entered into an agreement with Celgene

(now”BMS”)

to develop novel

bispecific

antibody therapeutics using the Company’s proprietary

Azymetric

platform. The Company will apply its

Azymetric

platform in combination with

BMS

’

proprietary targets to create novel

bispecific

antibodies for which

BMS

has an option to develop and commercialize a certain number of products (“Commercial License Option”).

Upon the execution of the Agreement, the Company received an upfront payment

of $8.0 million

and

an expansion fee of $4.0 million. BMS has the right to exercise options on up to ten programs and if BMS opts in on a program, the Company is eligible to receive up

$164.0 million

per

product candidate (up to $1.64 billion for all ten programs), comprised of a commercial license option payment

of $7.5 million

development milestone payments of up

to $101.5 million

and commercial milestone payments of up

to $55.0 million

From contract inception to December 31, 2019, BMS has exercised one commercial license option and the Company has received a total of $7.5 million in product candidate-specific payments. After conclusion of BMS’s research period, BMS will be solely responsible for the research, development, manufacturing and commercialization of the products. In addition, the Company is eligible to receive tiered royalties calculated upon the global net sales of the resulting products. BMS will have exclusive worldwide commercialization rights to products derived from the agreement if BMS 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 BMS’s performance.

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 up to $1.1 billion, including 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.

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. In May 2019, this agreement was expanded to provide GSK access to the Company’s unique heavy-light chain pairing technology under the Azymetric platform. This may include bispecific antibodies incorporating new engineered Fc regions generated under the 2015 GSK agreement.

The Company is eligible to receive up to $1.1 billion in milestone and other payments. From contract inception to December 31, 2019, the Company has received an upfront technology access fee payment

of $6.0 million

The Company is also eligible to receive research milestone payments of up

to $37.5 million

development milestone payments of up

to $183.5

million

and

commercial milestone payments of up

to $867.0 million

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.

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.

The Company is also eligible to $149.9 million in milestone and other payments. From contract inception to December 31, 2019, the Company has received an upfront technology access fee payment of $2.0 million and research and commercial option related payments totaling $4.5 million. The Company is also eligible to receive additional development milestone payments of up to $63.4 million, and commercial milestone payments of up to $80.0 million. In addition, the Company is eligible to receive tiered royalties ranging from the low single digits up to 10% on product sales. The Company also has

non-exclusive

rights to develop and commercialize up to three products using Daiichi Sankyo’s proprietary immune-oncology antibodies, with royalties in the low single digits to be paid to Daiichi Sankyo on sales of such products. Daiichi Sankyo is solely responsible for the research, development, manufacturing and commercialization of the products. Under the

non-exclusive

immuno-oncology antibody license to Zymeworks, Zymeworks is solely responsible for all research, development and commercialization of the resulting products.

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 Company’s 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.

The Company is also eligible to receive up to $484.7 million in various milestone and other payments. From contract inception to December 31, 2019, the Company received an upfront technology access fee payment of

$18.0 million.

The Company is also eligible to receive development milestone payments totaling up

to $126.7 million

and commercial milestone payments of up to

$340.0 million

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.

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, the Company 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.

The Company is eligible to $1.45 billion in various license and milestone payments. From contract inception to December 31, 2019, the Company has received an upfront payment of $50.0 million. The Company is also eligible to receive development milestone payments of up to $282.0 million and commercial milestone payments of up to $1.12 billion. 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.

Research and License Agreement with LEO Pharma A/S (“LEO”)

On October 23, 2018, the Company entered into a collaboration agreement with LEO. The Company granted LEO a worldwide, royalty-bearing, antibody sequence pair-specific exclusive license to research, develop and commercialize two bispecific antibodies, generated through the use of the Company’s Azymetric and EFECT platforms, for dermatologic indications. The Company will retain rights to develop antibodies resulting from this collaboration in all other therapeutic areas. The Company and LEO are jointly responsible for certain research activities, with the Company’s cost to be fully reimbursed by LEO. Each party is solely responsible for the development, manufacturing, and commercialization of their own products.

Pursuant to this agreement, the Company received an upfront payment of $5.0 million

in 2018

. In addition, (i) for the first therapeutic candidate, the Company is eligible to receive preclinical and development milestone

payments of up to $74.0 million and commercial milestone payments of up to $157.0 million together with tiered royalties on future sales of up to 20% in the United States and up to high single digits elsewhere, and (ii) for the second therapeutic candidate, the Company is eligible to receive preclinical and development milestone payments of up to $86.5 million and commercial milestone payments of up to $157.0 million together with tiered royalties on future sales of up to low double digits globally. For products developed by

the Comp

any

outside of dermatology, LEO is eligible to receive commercial milestone payments and up to single-digit royalties on future sales

development or commercial milestone payments or royalties have been received to date.

Collaboration and License Agreements with BeiGene, Ltd. (“BeiGene”)

On November 26, 2018, the Company entered into three concurrent agreements with BeiGene whereby the Company granted BeiGene royalty-bearing exclusive licenses for the research, development and commercialization of its bispecific therapeutic candidates, ZW25 (“ZW25 Agreement”) and ZW49 (“ZW49 Agreement”) in Asia (excluding Japan but including the People’s Republic of China, South Korea and other countries), Australia and New Zealand. In addition, the Company also granted BeiGene a worldwide, royalty-bearing, antibody sequence pair-specific license to research, develop and commercialize globally three bispecific antibodies generated through the use of the

Company’s

Azymetric and EFECT platforms.

Pursuant to these agreements,

he Company

received an upfront payment of $60.0 million in 2018 for the totality of the rights described. The Company considered the fair value of performance obligations based on the Company’s best estimate of their relative stand-alone selling prices, and allocated $40.0 million of transaction price to the License and Collaboration Agreements for ZW25 and ZW49 while $20.0 million has been allocated to the Company’s performance obligations under the Research and Licensing Agreement for Azymetric and EFECT Platforms.

License and Collaboration Agreements for ZW25 and ZW49

The Company is also eligible to receive development and commercial milestone payments of up to $390 million, together with tiered royalties from high single digits and up to 20% on future sales of the products. No development or commercial milestone payments or royalties have been received to date. Under the agreements, the Company and BeiGene are collaborating on certain global clinical studies and both the Companys and BeiGene will be independently conducting clinical studies in their own respective territories. Each of the Company and BeiGene are responsible for all the development and commercialization costs in their own territories.

In relation to the ZW25 Agreement, the Company identified the following promised goods and services at the inception of the BeiGene agreement that are material: development and commercial licenses, initial transfer of the Company’s technologies and relevant

know-how,

continuing technology transfer, participation in the Joint Steering Committee (“JSC”) and other

sub-committees,

manufacturing technology transfer, provision of development supply, provision of commercial supply, and transfer of future rights related to the development and commercial license. The Company concluded that the licenses and initial technology transfer are distinct together while the continuing technology transfer and the Company’s participation to the JSC and other

sub-committees’

activities together are distinct. Remaining deliverables were individually determined to be distinct.

Development and commercial licenses as well as initial transfer of technologies and relevant

know-how

were considered as a single performance obligation. The consideration of $7.1 million allocated to these performance obligations

was

recognized as revenue over a

two-month

period during which the delivery of the license and transfer of the relevant technology occurred. Deliverables of continuing technology transfer and participation in the JSC and other

sub-committees

together were considered as a single performance obligation and the consideration allocated to this performance obligation will be recognized as revenue over time as these

performance obligations are completed. Remaining deliverables are considered individually distinct and the revenue will be recognized as delivery or transfer of future rights to BeiGene occurs.

In relation to the ZW49 Agreement, the Company identified the following promised goods and services at the inception of the BeiGene agreement that are material: development and commercial licenses, initial transfer of the Company’s technologies and relevant

know-how,

continuing technology transfer, participation in the JSC and other

sub-committees,

manufacturing technology transfer, provision of development supply, provision of commercial supply, and transfer of future rights related to the development and commercial license. The Company concluded that the licenses and initial technology transfer together are distinct together while the continuing technology transfer and the Company’s participation to the JSC and other

sub-committees’

activities together are distinct. Manufacturing technology transfer, provisions of development supply and commercial supply were individually determined to be distinct.

Development and commercial licenses as well as initial transfer of technologies and relevant

know-how

were considered as a single performance obligation while continuing technology transfer and participation in the JSC and other

sub-committees

together were considered as a single performance obligation. Remaining deliverables were considered individually distinct. No performance obligations were completed by the Company as of December 31, 2019 as the initial transfer of technologies and relevant

know-how

is not going to start until the completion of the Company’s

Phase-1

clinical studies for ZW49. Accordingly, no revenue was recognized from the ZW49 Agreement to date.

As of December

2019

the Company recorded

32,941

the

upfront fees from the

and

agreements as deferred revenue on the Company’s consolidated

balance sheet

(

December 31, 2018

: $

36,471

). Amounts not expected to be recognized as revenue within the next twelve months of the consolidated balance sheet date are classified as long-term deferred revenue.

Research and Licensing Agreement for Azymetric and EFECT Platforms

For the development and commercialization licenses of up to three bispecific antibody therapeutics using the

Company’s

Azymetric and EFECT platforms, the Company received an upfront payment of $20.0 million. The Company is also eligible to receive development and commercial milestone payments of up to $702.0 million. In addition, the Company is eligible to receive tiered royalties in the

mid-single

digits on product sales. No development or commercial milestone payments or royalties have been received to date. BeiGene is solely responsible for the research, development, manufacturing, and commercialization of the products.

Shareholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands, $ in Thousands								12 Months Ended						120 Months Ended
	Jun. 24, 2019 USD ($) $ / shares shares	Jun. 11, 2018 USD ($) $ / shares shares	Jun. 07, 2018	May 31, 2017 shares	May 03, 2017 USD ($) $ / shares shares	Apr. 28, 2017 USD ($) $ / shares shares	Jul. 14, 2006	Dec. 31, 2019 USD ($) shares	Dec. 31, 2019 CAD ($) shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2018 CAD ($) shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2017 CAD ($) shares	Dec. 31, 2028	Dec. 21, 2015 shares
Temporary Equity [Line Items]
Redeemable convertible preferred shares, authorized															6,413,265
Convertible preferred stock outstanding						5,260,404
Share issued price per share \| $ / shares						$ 13.00
Conversion of preferred stock to common stock						7,098,194
Share conversion ratio						1.349367
Beneficial conversion feature \| $						$ 520
Preferred stock, shares issued								0		0
Preferred stock, shares outstanding								0		0
Unamortized compensation expense related to unvested options \| $								$ 16,720
Remaining unamortized compensation expense, weighted-average period								1 year 9 months 18 days	1 year 9 months 18 days
Warrant exercise price \| $ / shares	$ 0.0001					$ 8.67
Stock-based compensation \| $								$ 12,676		$ 3,876		$ 4,827
Number of shares issuable upon exercise of outstanding warrents						398,076
underwriting discounts, commissions and offering expenses \| $					$ 9,400
Common Shares [Member]
Temporary Equity [Line Items]
Conversion of preferred stock to common stock												7,098,194	7,098,194
Number of shares issued								7,013,892	7,013,892	6,210,000	6,210,000	4,894,467	4,894,467
Offering [Member]
Temporary Equity [Line Items]
Share issued price per share \| $ / shares	18.00	$ 15.75
Warrants issued price per pre funded warrant \| $ / shares	$ 17.9999
Number of shares issued	7,013,892
Number of shares issued	7,013,892	6,210,000
Net proceeds from issuance \| $ \| $	$ 188,000	$ 90,800
underwriting discounts, commissions and offering expenses \| $	$ 13,200	$ 7,100
Over-Allotment Option [Member]
Temporary Equity [Line Items]
Pre funded warrants issued in lieu of common shares to underwriters	4,166,690
Number of shares issued to underwriters	1,458,336	810,000		394,467
IPO [Member]
Temporary Equity [Line Items]
Number of shares issued					4,894,467
Share issued, price per share \| $ / shares					$ 13.00
Net proceeds from issuance \| $ \| $					$ 54,200
Original Stock Option Plan [Member]
Temporary Equity [Line Items]
Shares granted with respect to maximum fixed amount equal, percentage							20.00%
Shares available for issuance under the Original Plan vesting period							4 years
New Stock Option Plan [Member]
Temporary Equity [Line Items]
Proceeds from stock options exercised								$ 5,498	$ 6,683	$ 682	$ 883	$ 965	$ 1,250
Option exercised intrinsic value \| $								$ 9,416		$ 2,388		$ 1,550
U.S Dollar Under the New Option Stock Plan [Member]
Temporary Equity [Line Items]
Shares granted with respect to maximum fixed amount equal, percentage			20.00%
Maximum number of common shares reserved for issuance										5,686,097
Shares issuable upon exercise of stock options										3,985,768
Maximum number of common shares reserved for issuance increase in percentage														4.00%
Employees Stock Purchase Plan [Member]
Temporary Equity [Line Items]
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. 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.	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.
Maximum eligible employees contribution under ESPP								15.00%
Purchase of shares under ESPP, maximum limit for each employee \| $								$ 25
Total amount contributed by ESPP participants \| $								435		$ 359
Compensation charge \| $								$ 326		$ 114
Director [Member]
Temporary Equity [Line Items]
Shares available for issuance under the Original Plan vesting period							3 years

Recent Accounting Pronouncements (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Changes and Error Corrections [Abstract]

Schedule of Impact on Company's Balance Sheet Due to Adoption of Accounting Pronouncements

The impact of the adoption of Topic 842 on the accompanying

onsolidated

alance

heet as of January 1, 2019 was as follows:


	December 31, 2018		Adjustments Due to the Adoption of Topic 842			January 1, 2019
Operating lease right-of-use assets (1)	$	—	$	3,222		$	3,222
Total lease inducements (2)		333		(333	)		—
Total operating lease liabilities (3)		—		3,561			3,561

(1)	Right-of-use assets include operating leases. Right-of-use assets for finance leases are included in property and equipment

(2)	Included in current and long-term other liabilities (note 9)

(3)	Includes current and non-current operating lease liabilities

The impact of the adoption of Topic 842 on the consolidated statements of loss and comprehensive loss for the year ended December 31, 2019 was as follows:


	As reported		Effect of Adoption of Topic 842 Higher / (Lower)		Balances Without the Adoption of Topic 842
Operating expenses for the year ended December 31, 2019	$	180,845	$	311	$	180,534

Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2019

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

3. Recent Accounting Pronouncements

Adoption of Topic 842 (Leases)

On January 1, 2019 the Company adopted Topic 842 using the modified retrospective approach with a cumulative-effect adjustment to accumulated deficit as of January 1, 2019 in accordance with ASU No.

2018-11,

Leases (Topic 842)—Targeted Improvements

. Results for the

year

ended

Dec

ember

, 2019 are presented under Topic 842. Prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under previous lease guidance, ASC Topic 840:

Leases

(“Topic 840”). The Company elected certain practical expedients permitted under the transition guidance within the new standard, including not to separate

non-lease

components in determining operating lease liability.

The impact of the adoption of Topic 842 on the accompanying

onsolidated

alance

heet as of January 1, 2019 was as follows:


	December 31, 2018		Adjustments Due to the Adoption of Topic 842			January 1, 2019
Operating lease right-of-use assets (1)	$	—	$	3,222		$	3,222
Total lease inducements (2)		333		(333	)		—
Total operating lease liabilities (3)		—		3,561			3,561

(1)	Right-of-use assets include operating leases. Right-of-use assets for finance leases are included in property and equipment

(2)	Included in current and long-term other liabilities (note 9)

(3)	Includes current and non-current operating lease liabilities

The adjustments due to the adoption of Topic 842 primarily related to the recognition of operating lease

right-of-use

assets and operating lease liabilities. No adjustment was made to accumulated deficit as of January 1, 2019.

The Company evaluated its facility leases and determined that, effective upon the adoption of Topic 842, they were all operating leases. The Company performed an evaluation of its other contracts with customers and suppliers in accordance with Topic 842 and determined that, except for the facility and equipment leases described above, none of its contracts contain a lease. The impact of the adoption of Topic 842 on the consolidated statements of loss and comprehensive loss for the year ended December 31, 2019 was as follows:


	As reported		Effect of Adoption of Topic 842 Higher / (Lower)		Balances Without the Adoption of Topic 842
Operating expenses for the year ended December 31, 2019	$	180,845	$	311	$	180,534

See note 16 in these consolidated financial statements for additional disclosures.

Adoption of other pronouncements

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 those fiscal years. The Company adopted this standard as of January 1, 2019. Adoption of this new accounting standard did not have

a significant

impact on the Company’s consolidated financial statements.

Recent accounting pronouncements not yet adopted

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 those fiscal years. 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 those fiscal years. 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 impact is expected on the consolidated financial statements as a result of future adoption.

Short-term Investments	12 Months Ended
Short-term Investments	Dec. 31, 2019
Investments, All Other Investments [Abstract]
Short-Term Investments	5 . Short-term Investments Short-term investments consist of guaranteed investment certificates (“GICs”) and term deposits held at financial institutions purchased in accordance with the Company’s treasury policy. These GICs and term deposits bear interest at 2%-3% per annum and have maturities of up to 12 months.

Payment of long-term debt and exercise of liability classified warrants - Summary of Debt (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Jan. 01, 2017
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)

Financial Instruments - Schedule of Changes in Fair Value of Warrant Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Liability at the beginning of the period	$ 0	$ 1,348
Reclassification to liability from equity	0	0
Increase (decrease) in fair value of warrant liabilities		3,565
Exercise of warrants		(4,913)
Liability at end of the period	$ 0	$ 0

Recent Accounting Pronouncements - Impact of the Adoption of Topic 842 On Balance Sheet (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating lease right-of-use assets	$ 5,400	$ 3,222
Total lease inducements			$ 333
Total operating lease liabilities	$ 6,881	3,561
Adjustments Due To The Adoption Of Topic 842 [Member]
Operating lease right-of-use assets		3,222
Total lease inducements		(333)
Total operating lease liabilities		$ 3,561

Net Loss per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Summary of Calculation of Diluted Loss Per Share

Net loss per share for the years ended December 31, 2019, 2018 and 2017 was as follows:


	Year Ended December 31,
	2019			2018			2017
Numerator :
Net loss attributable to common shareholders:	$	(145,437	)	$	(36,556	)	$	(10,406	)
Deemed dividend due to beneficial conversion feature		—			—			(520	)

Basic	$	(145,437	)	$	(36,556	)	$	(10,926	)
Adjustment for change in fair value of ASC 815 liability classified stock options and warrant		—			—			(2,757	)

Diluted	$	(145,437	)	$	(36,556	)	$	(13,683	)
Denominator:
Weighted-average common shares outstanding:
Basic (*)		38,022,014			29,089,896			21,249,414
Adjustment for dilutive effect of liability classified stock options and warrants		—			—			71,795

Diluted		38,022,014			29,089,896			21,321,209
Net loss per common share – basic	$	(3.83	)	$	(1.26	)	$	(0.51	)
Net loss per common share – diluted	$	(3.83	)	$	(1.26	)	$	(0.64	)

(*): Weighted average number of common shares used in the basic earnings per share calculation for the year ended December 31, 2019 includes the

pre-funded

warrants issued in connection with the Company’s June 2019 offering as the warrants are exercisable at any time and for nominal cash consideration.

Liabilities - Schedule of Other Long-term Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other Liabilities, Noncurrent [Abstract]
Liability for contingent consideration (note 18)	$ 978	$ 707
Lease inducements	0	197
Finance lease liability (note 16)	46	42
Total	$ 1,024	$ 946

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of Estimated Useful Lives

The Company records depreciation using the straight-line method over the estimated useful lives of the property and equipment as follows:


Asset Class		Rate
Computer hardware		3 years
Office equipment		3 years
Furniture and fixtures		5 years
Laboratory equipment		7 years
Leasehold improvements		Shorter of the initial lease term or useful life

Subsequent event - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Jan. 27, 2020	Jun. 24, 2019	Jun. 11, 2018	Apr. 28, 2017
Subsequent Event [Line Items]
Final prospectus supplement, shares price				$ 13.00
Offering [Member]
Subsequent Event [Line Items]
Final prospectus supplement, shares price		$ 18.00	$ 15.75
Warrants issued price per pre funded warrant		$ 17.9999
Number of shares issued		7,013,892	6,210,000
Net proceeds from issuance \| $		$ 188.0	$ 90.8
Subsequent Event [Member] \| Offering [Member]
Subsequent Event [Line Items]
Final prospectus supplement, shares price	$ 46.50
Warrants issued price per pre funded warrant	$ 46.4999
Number of shares issued	4,924,729
Number of shares issued to underwriters	900,000
Pre funded warrants issued in lieu of common shares to underwriters	1,075,271
Net proceeds from issuance \| $	$ 301.0

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net loss	$ (145,437)	$ (36,556)	$ (10,406)
Items not involving cash:
Depreciation of property and equipment	2,312	1,880	1,681
Amortization of intangible assets	3,113	1,750	1,058
Impairment on acquired IPR&D	768		1,536
Stock-based compensation (note 11e)	48,996	13,441	3,429
Amortization of operating lease right-of-use assets	1,906
Deferred income tax (recovery) expense	(726)	(17)	15
Change in fair value of contingent consideration (note 18)	271	237	470
Change in fair value of warrant liabilities (note 10)		3,565	(2,450)
Accretion on long-term debt			248
Loss on debt extinguishment			3,114
Unrealized foreign exchange loss/(gain)	504	(48)	(254)
Changes in non-cash operating working capital:
Accounts receivable	(1,828)	(119)	2,409
Prepaid expenses and other current assets	(8,680)	(251)	(202)
Accounts payable and accrued liabilities	21,572	3,684	(358)
Operating lease liabilities	(795)
Deferred revenue	(3,530)	36,471
Income taxes payable	(299)	140	(71)
Net cash (used in) provided by operating activities	(81,853)	24,177	219
Cash flows from financing activities:
Proceeds from initial public offering, net of issuance costs (note 11a)			55,791
Proceeds from subsequent public offerings, net of issuance costs (note 11a)	188,231	90,752
Issuance of common shares on exercise of options (note 11e)	5,498	682	965
Issuance of common shares on exercise of warrants (note 10)			1,018
Issuance of common shares through employee stock purchase plan (note 11h)	598	233
Repayment of debt (note 10)			(7,814)
Deferred financing fees	(650)	(225)
Finance lease payments	(16)	(11)	(9)
Net cash provided by financing activities	193,661	91,431	49,951
Cash flows from investing activities:
Purchase of short-term investments	(11,714)	(105,626)	(27,767)
Acquisition of property and equipment	(6,322)	(803)	(2,015)
Acquisition of intangible assets	(7,556)	(2,617)	(1,106)
Net cash used in investing activities	(25,592)	(109,046)	(30,888)
Effect of exchange rate changes on cash and cash equivalents	30	(303)	227
Net change in cash and cash equivalents	86,246	6,259	19,509
Cash and cash equivalents, beginning of year	42,205	35,946	16,437
Cash and cash equivalents, end of year	128,451	42,205	35,946
Supplemental disclosure of non-cash investing and finance items:
Leased assets obtained in exchange for operating lease liabilities	7,026
Acquisition of property and equipment in accounts payable and accrued liabilities	$ 607	382	$ 123
Cashless exercise of warrants (note 10)		$ 4,913

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Balance Sheet Classification of Lease Liabilities

The balance sheet classification of the Company’s lease liabilities was as follows:


	December 31, 2019		December 31, 2018
Operating lease liabilities:
Current portion	$	1,282	$	—
Long-term portion		5,599		—

Total operating lease liabilities		6,881	$	—

Finance lease liabilities:
Current portion included in other current liabilities		10		15
Long-term portion included in other long-term liabilities		46		42

Total finance lease liabilities		56		57

Total lease liabilities	$	6,937	$	57

Schedule of Maturities of Operating Lease Liabilities

As of December 31, 2019, the future minimum lease payments of the Company’s operating lease liabilities were as follows:


	Operating leases
Within 1 year	$	1,438
1 to 2 years		2,076
2 to 3 years		1,007
3 to 4 years		991
4 to 5 years		1,019
Thereafter		781

Total operating lease payments		7,312
Less:
Imputed interest		(431	)

Operating lease liabilities	$	6,881

Schedule of Maturities of Finance Lease Liabilities

The Company also leases office equipment under finance lease agreements. As of December 31, 2019, the future minimum lease payments of the Company’s finance lease liabilities were as follows:


	Finance leases
Within 1 year	$	31
1 to 2 years		16
2 to 3 years		6
3 to 4 years		3
4 to 5 years		1
Thereafter		—

Total finance lease payments		57
Less:
Imputed interest		(1	)

Finance lease liabilities	$	56

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consist of the following:


	December 31,
	2019			2018
Computer software and research license	$	12,985		$	5,429
Less accumulated amortization		(6,928	)		(3,815	)

Intangible assets, net	$	6,057		$	1,614

Income Taxes - Schedule of Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Balance, beginning of year	$ 672
Increases related to prior year tax positions	0	142
Increases related to current year tax positions	2,391	530
Balance, end of year	$ 3,063	$ 672

Nature of Operations - Additional Information (Detail)	12 Months Ended
Nature of Operations - Additional Information (Detail)	Dec. 31, 2019
Date of incorporation	Sep. 08, 2003

Research, Collaboration and Licensing Agreements - Additional Information - Iconic (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 29,544	$ 53,019	$ 51,762
Iconic Therapeutics Inc [Member] \| Milestone Payment [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenue	$ 1,000

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Aug. 31, 2016
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
Aggregate payment for annual licensing fees	$ 0	$ 12,000
Annual licensing fees payment period	five-year period

Shareholders' Equity - Schedule of Estimated Fair Value of Stock Options Assumptions (Detail) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%	0.00%
Expected volatility	73.59%	66.25%	66.25%
Risk-free interest rate	1.47%	2.18%	1.44%
Forfeiture rate	5.37%	5.37%	4.75%
Expected average life of options	6 years 18 days	5 years 10 months 28 days	5 years 10 months 24 days
Liability Classified Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Expected volatility	76.09%	72.27%
Risk-free interest rate	1.68%	1.94%
Forfeiture rate	5.37%	5.37%
Expected average life of options	3 years 4 months 17 days	3 years 7 months 2 days
Number of share options outstanding	1,249,365	1,437,163
U.S Dollar Under the New Option Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%	0.00%
Expected volatility	73.15%	66.78%	65.89%
Risk-free interest rate	2.23%	2.69%	1.84%
Forfeiture rate	5.37%	5.37%	4.75%
Expected average life of options	6 years 10 days	5 years 10 months 17 days	5 years 10 months 20 days
Number of share options outstanding	2,853,346	1,539,778	636,595

Government Grants and Credits (Tables)

12 Months Ended

Dec. 31, 2019