0001564590-20-051443 | 10-Q | XBRL Viewer | Xenon Pharmaceuticals INC

(11,341)

476

Issued pursuant to exercise of of stock options (in Shares)

$ 117

(59)

21,233

Balance at Mar. 31, 2019

92,313

$ 7,732

$ 266,040

38,932

(219,401)

(990)

Balance (in Shares) at Mar. 31, 2019

1,016,000

25,771,954

Balance at Dec. 31, 2018

103,295

$ 7,732

$ 265,923

38,515

(207,885)

(990)

Balance (in Shares) at Dec. 31, 2018

1,016,000

25,750,721

Issued pursuant to exercise of of stock options (in Shares)

$ (30,219)

^[2]

174,811

Balance at Sep. 30, 2019

$ 74,564

$ 7,732

$ 266,425

39,676

(238,279)

(990)

Balance (in Shares) at Sep. 30, 2019

1,016,000

25,868,594

Balance at Dec. 31, 2018

103,295

$ 7,732

$ 265,923

38,515

(207,885)

(990)

Balance (in Shares) at Dec. 31, 2018

1,016,000

25,750,721

Balance at Dec. 31, 2019

91,977

$ 7,732

$ 294,244

40,646

(249,655)

(990)

Balance (in Shares) at Dec. 31, 2019

1,016,000

28,139,228

Balance at Mar. 31, 2019

92,313

$ 7,732

$ 266,040

38,932

(219,401)

(990)

Balance (in Shares) at Mar. 31, 2019

1,016,000

25,771,954

(10,007)

470

Issued pursuant to exercise of of stock options (in Shares)

$ 22

(11)

3,102

Balance at Jun. 30, 2019

82,787

$ 7,732

$ 266,062

39,391

(229,408)

(990)

Balance (in Shares) at Jun. 30, 2019

1,016,000

25,775,056

(8,871)

630

Issued pursuant to exercise of of stock options (in Shares)

$ 18

$ 363

(345)

148,948

^[2]

93,538

Balance at Sep. 30, 2019

$ 74,564

$ 7,732

$ 266,425

39,676

(238,279)

(990)

Balance (in Shares) at Sep. 30, 2019

1,016,000

25,868,594

Balance at Dec. 31, 2019

91,977

$ 7,732

$ 294,244

40,646

(249,655)

(990)

Balance (in Shares) at Dec. 31, 2019

1,016,000

28,139,228

Issuance of common shares, net of issuance costs (note 10a)

(7,484)

102,456

$ 102,456

Issuance of common shares, net of issuance costs (note 10a) (in shares)

6,759,187

1,015

Issued pursuant to exercise of of stock options (in Shares)

$ 607

(593)

57,857

Balance at Mar. 31, 2020

187,978

$ 7,732

$ 397,307

41,068

(257,139)

(990)

Balance (in Shares) at Mar. 31, 2020

1,016,000

34,956,272

Balance at Dec. 31, 2019

91,977

$ 7,732

$ 294,244

40,646

(249,655)

(990)

Balance (in Shares) at Dec. 31, 2019

1,016,000

28,139,228

Issued pursuant to exercise of of stock options (in Shares)

$ (16,514)

^[2]

153,417

Balance at Sep. 30, 2020

$ 182,023

$ 7,732

$ 397,654

43,796

(266,169)

(990)

Balance (in Shares) at Sep. 30, 2020

1,016,000

34,994,946

Balance at Mar. 31, 2020

187,978

$ 7,732

$ 397,307

41,068

(257,139)

(990)

Balance (in Shares) at Mar. 31, 2020

1,016,000

34,956,272

(175)

1,472

Issued pursuant to exercise of of stock options (in Shares)

$ 345

(322)

38,518

Balance at Jun. 30, 2020

189,298

$ 7,732

$ 397,652

42,218

(257,314)

(990)

Balance (in Shares) at Jun. 30, 2020

1,016,000

34,994,790

(8,855)

$ 1,580

1,580

Issued pursuant to exercise of of stock options (in Shares)

$ 2

(2)

375

^[2]

156

Balance at Sep. 30, 2020

$ 182,023

$ 7,732

$ 397,654

$ 43,796

$ (266,169)

$ (990)

Balance (in Shares) at Sep. 30, 2020

1,016,000

34,994,946

[1]	Our accumulated other comprehensive loss is entirely related to historical cumulative translation adjustments from the application of U.S. dollar reporting when the functional currency of the Company was the Canadian dollar.
[2]	During the nine months ended September 30, 2020, 10,715 stock options were exercised for the same number of common shares for cash (nine months ended September 30, 2019 – 23,625). In the same period, the Company issued 85,816 common shares (nine months ended September 30, 2019 – 94,248) for the cashless exercise of 142,702 stock options (nine months ended September 30, 2019 – 151,186).

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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Organization Consolidation And Presentation Of Financial Statements [Abstract]

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Operating activities:
Net loss	$ (16,514)	$ (30,219)
Items not involving cash:
Depreciation	442	283
Amortization of discount on term loan	216	388
Deferred income tax recovery	(240)	(73)
Stock-based compensation	4,067	1,567
Unrealized foreign exchange gain	(451)	(161)
Unrealized gain on marketable securities	(228)	(134)
Loss on repayment of term loan (note 9)	988
Changes in operating assets and liabilities:
Accounts receivable	(827)	(54)
Prepaid expenses and other current assets	421	208
Accounts payable and accrued expenses	122	3,694
Deferred revenue	(23,006)
Net cash used in operating activities	(35,010)	(24,501)
Investing activities:
Purchases of property, plant and equipment	(1,809)	(645)
Purchases of marketable securities	(213,560)	(76,064)
Proceeds from marketable securities	155,346	70,818
Net cash used in investing activities	(60,023)	(5,891)
Financing activities:
Repayment of term loan and repayment fees (note 9)	(16,743)
Issuance of common shares, net of issuance costs (note 10a)	102,456
Issuance of common shares pursuant to exercise of stock options	37	87
Net cash provided by financing activities	85,750	87
Effect of exchange rate changes on cash and cash equivalents	(372)	222
Decrease in cash and cash equivalents	(9,655)	(30,083)
Cash and cash equivalents, beginning of period	24,755	67,754	$ 67,754
Cash and cash equivalents, end of period	15,100	37,671	$ 24,755
Supplemental disclosures:
Interest paid	339	702
Interest received	3,058	1,938
Cash paid for operating lease	469	469
Supplemental disclosures of non-cash transactions:
Fair value of stock options exercised on a cashless basis	$ 878	$ 354

Nature of the Business

9 Months Ended

Sep. 30, 2020

Nature of the Business

1.	Nature of the business:

Xenon Pharmaceuticals Inc. (the “Company”), incorporated in 1996 under the predecessor to the Business Corporations Act (British Columbia) and continued federally in 2000 under the Canada Business Corporation Act, is a clinical stage biopharmaceutical company focused on developing innovative therapeutics to improve the lives of patients with neurological disorders, with a focus on epilepsy.

The Company has incurred significant operating losses since inception. As of September 30, 2020, the Company had an accumulated deficit of $266,169 and a $16,514 net loss for the nine months ended September 30, 2020. Management expects to continue to incur significant expenses in excess of revenue and to incur operating losses for the foreseeable future. To date, the Company has financed its operations primarily through funding received from collaboration and license agreements, private placements of common and preferred shares, public offerings of common shares, debt financings, and government funding.

Until such time as the Company can generate substantial product revenue, if ever, management expects to finance the Company’s cash needs through a combination of collaboration agreements, equity and debt financings. The continuation of research and development activities and the future commercialization of its products are dependent on the Company’s ability to successfully raise additional funds when needed. It is not possible to predict either the outcome of future research and development programs or the Company’s ability to continue to fund these programs in the future.

Basis of Presentation

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Basis of Presentation

2.	Basis of presentation:

These consolidated financial statements are presented in U.S. dollars.

The Company has one wholly-owned subsidiary as of September 30, 2020, Xenon Pharmaceuticals USA Inc., which was incorporated in Delaware on December 2, 2016.

These unaudited interim consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany transactions and balances have been eliminated on consolidation. Certain information has been reclassified to conform with the financial statement presentation adopted for the current year.

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, these consolidated financial statements do not include all of the information and footnotes required for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2019 and included in the Company’s 2019 Annual Report on Form 10-K filed with the SEC and with the securities commissions in British Columbia, Alberta and Ontario on March 9, 2020.

These unaudited interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of operations for the three and nine month periods ended September 30, 2020 and 2019 are not necessarily indicative of results that can be expected for a full year. These unaudited interim consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company included in the Company’s 2019 Annual Report on Form 10-K for the year ended December 31, 2019, with the exception of the policies described in notes 3 and 4 below.

Use of Estimates

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Use of Estimates

3.	Use of estimates:

The preparation of the unaudited interim consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant areas of estimates include, but are not limited to, revenue recognition including estimated timing of completion of performance obligations, the determination of stock-based compensation and the amounts recorded as accrued liabilities. These estimates and assumptions take into account historical and forward looking factors that the Company believes are reasonable, including but not limited to the potential impacts arising from the novel coronavirus (“COVID-19”) and pandemic public and private sector policies and initiatives aimed at reducing its transmission.

There was no material impact to the Company’s consolidated financial statements as of and for the three and nine months ended September 30, 2020 with respect to COVID-19; however, the full extent to which the pandemic may have a direct or indirect impact to our business, results of operations and financial condition, including revenue, expenses, research and clinical development plans and timelines, depends on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19, as well as the economic impact on local, regional, national and global markets. Actual results could differ materially from these estimates. Estimates and assumptions are reviewed quarterly. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Changes in Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Accounting Changes And Error Corrections [Abstract]

Changes in Significant Accounting Policies

4.	Changes in significant accounting policies:

In November 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements—Share-Based Consideration Payable to a Customer. These amendments clarify that companies must measure and classify share-based payment awards to a customer following the guidance in Topic 718. A company will classify awards as liabilities or equity following the guidance in Topic 718, and measure them at their grant-date fair value. The awards will be recorded as a reduction to revenue or an expense based on the guidance in Topic 606. If a company intends to provide an award to a customer and the grant date has not occurred, the transaction price guidance in Topic 606 should be followed to estimate the fair value of the award. A company must adjust the fair value estimate each reporting date until a grant date is achieved and recognize changes in the grant-date fair value of an award as a result of changes in the expected outcome of a service or a performance condition as a reduction in the transaction price. If the terms of the award are modified after the grantee vests in the award and is no longer a customer, the award may be subject to other guidance. The Company has adopted this standard as of January 1, 2020 on a retrospective basis. The adoption of the standard had no impact on the Company’s consolidated balance sheets, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows.

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

5.	Net income (loss) per common share:

For the three and nine months ended September 30, 2020 and 2019, basic net income (loss) per common share are calculated using the two-class method required for participating securities which includes 1,016,000 Series 1 Preferred Shares as a separate class for the respective periods (three and nine months ended September 30, 2019 – 1,016,000). The convertible preferred shares entitle the holders to participate in dividends and in earnings and losses of the Company on an equivalent basis as common shares. Accordingly, undistributed earnings (losses) are allocated to common shares and participating preferred shares based on the weighted-average shares of each class outstanding during the period.

The treasury stock method is used to compute the dilutive effect of the Company’s stock options and warrants. Under this method, the incremental number of common shares used in computing diluted net income (loss) per common share is the difference between the number of common shares assumed issued and purchased using assumed proceeds.

The if-converted method is used to compute the dilutive effect of the Company’s convertible preferred shares. Under the if-converted method, dividends on the preferred shares, if applicable, are added back to earnings attributable to common shareholders, and the preferred shares and paid-in kind dividends are assumed to have been converted at the share price applicable at the end of the period. The if-converted method is applied only if the effect is dilutive.

For the three and nine months ended September 30, 2020 and 2019, all stock options, warrants and convertible preferred shares were anti-dilutive and were excluded from the diluted weighted average common shares outstanding for the period.

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

6.	Fair value of financial instruments:

Certain financial instruments and other items are measured at fair value.

To determine the fair value, the Company uses the fair value hierarchy for inputs used to measure fair value of financial assets and liabilities. This hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels: Level 1 (highest priority), Level 2, and Level 3 (lowest priority).

•

Level 1 - Unadjusted quoted prices in active markets for identical instruments.

•

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

•

Level 3 - Inputs are unobservable and reflect the Company’s assumptions as to what market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available.

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

The Company’s Level 1 assets include cash and cash equivalents and marketable securities with quoted prices in active markets. The carrying amount of accounts receivables, accounts payable and accrued expenses approximates fair value due to the nature and short-term of those instruments.

Accounts Payable and Accrued Expenses

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

+ References + Details

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

Leases:

The Company has one operating lease for research laboratories and office space in Burnaby, British Columbia for a 120-month term from April 1, 2012 to March 31, 2022.

The cost components of the operating lease were as follows for the three and nine month periods ended September 30, 2020 and 2019:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Lease Cost
Operating lease expense	$	151		$	109		$	411		$	328
Variable lease expense⁽¹⁾		137			136			404			404
Lease Term and Discount Rate
Remaining lease term (years)	1.5			2.5			1.5			2.5
Discount rate		3.75	%		3.75	%		3.75	%		3.75	%

⁽¹⁾

^{Variable lease costs are payments that vary because of changes in facts or circumstances and include common area maintenance and property taxes related to the premises. Variable lease costs are excluded from the calculation of minimum lease payments.}

Future minimum lease payments as of September 30, 2020 were as follows:

Year ending December 31:
2020	$	158
2021		599
2022		47
Total future minimum lease payments	$	804
Less: imputed interest		(20	)
Present value of lease liabilities	$	784

Accounts Payable and Accrued Expenses

9 Months Ended

Sep. 30, 2020

Payables And Accruals [Abstract]

8.	Accounts payable and accrued expenses:

Accounts payable and accrued expenses consisted of the following:

	September 30,		December 31,
	2020		2019
Trade payables	$	2,198	$	2,473
Employee compensation, benefits, and related accruals		2,629		2,892
Consulting and contracted research		3,774		3,104
Professional fees		196		154
Other		78		195
Total	$	8,875	$	8,818

Term Loan

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Term Loan

9.	Term loan:

In August 2018, the Company entered into an Amended and Restated Loan and Security Agreement (the “Amended and Restated Loan Agreement”) with Silicon Valley Bank (the “Bank”), pursuant to which the Bank agreed to extend a term loan to the Company with a principal amount of $15,500.

In May 2020, the Company repaid the total outstanding term loan balance ahead of the maturity date. The repayment consisted of (i) the outstanding principal balance, (ii) a final payment fee of $1,008, which was partially accrued up to the date of repayment, and (iii) a prepayment fee of $225. At the time of repayment, all liabilities and obligations under the Amended and Restated Loan Agreement terminated automatically. The Company recorded a loss on repayment of the term loan of $988, which represents the difference between the carrying value of the term loan on the repayment date and the amount paid to extinguish the term loan. The repayment did not affect the Bank’s rights in connection with the warrant to the Bank to purchase 40,000 of our common shares at a price per common share of $9.79 which will remain outstanding until exercised or expired in August 2028.

Share Capital

9 Months Ended

Sep. 30, 2020

Stockholders Equity Note [Abstract]

Share Capital

10.	Share capital:

(a)

Financing:

In November 2019, the Company entered into an at-the-market equity offering sales agreement with Jefferies LLC (“Jefferies”) and Stifel, Nicolaus & Company, Incorporated (“Stifel”) to sell common shares of the Company having aggregate gross proceeds of up to $50,000, from time to time, through an “at-the-market” equity offering program under which Jefferies and Stifel would act as sales agents. As of December 31, 2019, the Company had sold 805,643 common shares under the sales agreement for proceeds of approximately $10,771, net of commissions paid, but excluding transaction expenses. In January 2020, the Company sold an additional 2,446,687 common shares for proceeds of approximately $37,979, net of commissions paid, but excluding transaction expenses.

In January 2020, the Company entered into an underwriting agreement with Jefferies, Stifel and Guggenheim Securities, LLC, relating to an underwritten public offering of 3,750,000 common shares sold by the Company at a public offering price of $16.00 per common share, and granted the underwriters an option for a period of 30 days to purchase up to an additional 562,500 common shares. The public offering was completed on January 27, 2020, and the Company received net proceeds of $56,700, net of underwriting discounts and commissions, but before offering expenses. The underwriters exercised their option in full in February 2020 and the Company received additional net proceeds of $8,460, net of underwriting discounts and commissions, but before offering expenses.

In August 2020, the Company entered into an at-the-market equity offering sales agreement with Jefferies and Stifel to sell common shares of the Company having aggregate gross proceeds of up to $100,000, from time to time, through an “at-the-market” equity offering program under which Jefferies and Stifel would act as sales agents. As of September 30, 2020, no common shares have been sold under the sales agreement.

(b)

Exchange agreement with certain funds affiliated with BVF Partners L.P. (collectively, “BVF”):

In March 2018, the Company and BVF entered into an exchange agreement pursuant to which the Company issued to BVF 2,868,000 Series 1 Preferred Shares in exchange for 2,868,000 common shares which were subsequently cancelled by the Company.

The Company filed articles of amendment creating an unlimited number of Series 1 Preferred Shares. The Series 1 Preferred Shares are convertible into common shares on a one-for-one basis subject to the holder, together with its affiliates, beneficially owning no more than 9.99% of the total number of common shares issued and outstanding immediately after giving effect to such conversion (the “Beneficial Ownership Limitation”). The holder may reset the Beneficial Ownership Limitation to a higher or lower number, not to exceed 19.99% of the total number of common shares issued and outstanding immediately after giving effect to such conversion, upon providing written notice to the Company which will be effective 61 days after delivery of such notice. Each Series 1 Preferred Share is also convertible into one common share at any time at the Company’s option without payment of additional consideration, provided that prior to any such conversion, the holder, together with its affiliates, beneficially owns less than 5.00% of the total number of common shares issued and outstanding and such conversion will not result in the holder, together with its affiliates, beneficially holding more than 5.00% of the total number of common shares issued and outstanding immediately after giving effect to such conversion. In the event of a change of control, holders of Series 1 Preferred Shares shall be issued one common share for each outstanding Series 1 Preferred Share held immediately prior to the change of control (without regard to the Beneficial Ownership Limitation), and following such conversion, will be entitled to receive the same kind and amount of securities, cash or property that a holder of common shares is entitled to receive in connection with such change of control.

The Series 1 Preferred Shares rank equally to the common shares in the event of liquidation, dissolution or winding up or other distribution of the assets of the Company among its shareholders and the holders of the Series 1 Preferred Shares are entitled to vote together with the common shares on an as-converted basis and as a single class, subject in the case of each holder of the Series 1 Preferred Shares to the Beneficial Ownership Limitation. Any Series 1 Preferred Shares that are ineligible to be converted into common shares due to the Beneficial Ownership Limitation, measured as of a given record date that applies for a shareholder meeting or ability to act by written consent, shall be deemed to be non-voting securities of the Company. Holders of Series 1 Preferred Shares are entitled to receive dividends (without regard to the Beneficial Ownership Limitation) on the same basis as the holders of common shares. The Company may not redeem the Series 1 Preferred Shares.

The Company recorded the issuance of Series 1 Preferred Shares and corresponding cancellation of common shares at $7.61 per share, the estimated weighted average cost at which BVF acquired the common shares. The Series 1 Preferred Shares are recorded wholly as equity under ASC 480, with no bifurcation of conversion feature from the host contract, given that the Series 1 Preferred Shares cannot be cash settled and have no redemption features.

During the year ended December 31, 2018, BVF converted 1,852,000 Series 1 Preferred Shares in exchange for an equal number of common shares of the Company.

BVF was a related party of the Company prior to the closing of the exchange agreement, and continues to be a related party as of September 30, 2020 and thereafter.

(c)

Stock-based compensation:

In June 2020, the shareholders of the Company approved the Amended and Restated 2014 Equity Incentive Plan (the “Amended and Restated 2014 Plan”) amending certain provisions of the Company’s 2014 Equity Incentive Plan (the “2014 Plan”). The annual automatic share increase provision of the 2014 Plan was eliminated and the number of common shares available for issuance was increased by 4,000,000 over the existing share reserve under the 2014 Plan. The number of common shares that can be issued through restricted share awards, restricted share unit awards, or performance share awards was amended to be limited to 1,000,000 common shares, in the aggregate. Other amendments were made to terms of the 2014 Plan with respect to repricing, change of control and payment of dividends and other distributions.

In connection with the shareholder approval of the Amended and Restated 2014 Plan, the Company’s non-shareholder-approved 2019 Inducement Equity Incentive Plan (the “2019 Inducement Plan”) was terminated. No further options will be granted under the 2019 Inducement Plan, and the 2019 Inducement Plan will continue to govern the options granted thereunder.

The following table presents stock option activity for the period:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Outstanding, beginning of period		4,595,432			2,663,788			3,534,236			2,671,906
Granted		194,400			1,180,175			1,440,050			1,202,075
Exercised⁽¹⁾		(375	)		(148,948	)		(153,417	)		(174,811	)
Forfeited, cancelled or expired		(3,363	)		(43,096	)		(34,775	)		(47,251	)
Outstanding, end of period		4,786,094			3,651,919			4,786,094			3,651,919
Exercisable, end of period		2,324,090			1,846,826			2,324,090			1,846,826

⁽¹⁾

^{During the nine months ended September 30, 2020, 10,715 stock options were exercised for the same number of common shares for cash (nine months ended September 30, 2019 – 23,625). In the same period, the Company issued 85,816 common shares (nine months ended September 30, 2019 – 94,248) for the cashless exercise of 142,702 stock options (nine months ended September 30, 2019 – 151,186).}

The fair value of each stock option granted is estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Average risk-free interest rate		0.40	%		1.76	%		0.72	%		1.77	%
Expected volatility		68	%		69	%		68	%		69	%
Average expected term (in years)		6.64			7.04			6.79			7.03
Expected dividend yield		0	%		0	%		0	%		0	%
Weighted average fair value of stock options granted	$	7.03		$	6.24		$	7.46		$	6.22

Revenue

9 Months Ended

Sep. 30, 2020

Revenue From Contract With Customer [Abstract]

Revenue

11.

Revenue:

Revenue was as follows for the three and nine month periods ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Neurocrine Biosciences:
Recognition of the transaction price	$	5,246	$	—	$	23,006	$	—
Research and development services		1,308		—		4,010		—
Flexion:
Recognition of the transaction price		—		3,000		—		3,000
Milestone payment		—		500		—		500
Total collaboration revenue	$	6,554	$	3,500	$	27,016	$	3,500

(a)

Neurocrine Biosciences Inc. (“Neurocrine Biosciences”):

In December 2019, the Company entered into a License and Collaboration Agreement with Neurocrine Biosciences. Pursuant to this agreement, the Company granted an exclusive license to XEN901, now known as NBI-921352, and an exclusive license to pre-clinical compounds for development, XEN393, XPC’535 and XPC’391 (collectively, the “DTCs”). The agreement also includes a two-year research collaboration to discover, identify and develop additional novel Nav1.6 and Nav1.2/1.6 inhibitors (“Research Compounds”), with an option to extend for an additional year. The Company and Neurocrine Biosciences are collaborating on the conduct of two collaboration programs: (a) a joint research collaboration to discover, identify and preclinically develop Research Compounds (the “Research Program”) and (b) a collaborative development program for XEN901 and two DTCs selected by the joint steering committee (the “Initial Development Program”).

At execution of the agreement, Neurocrine Biosciences paid the Company an upfront cash payment of $30,000 and a $20,000 equity investment in the Company. The equity investment was measured at fair value of $16,667 on the date of issuance and the resulting premium $3,333, together with the upfront cash payment totaling $33,333, was the transaction price of the arrangement for allocation to the performance obligations. The agreement includes the following performance obligations: (i) an exclusive license to XEN901 with associated technology and know-how transfer, (ii) an exclusive license to the DTCs with associated know-how transfer, (iii) a license to Research Compounds and research services under the Research Program, (iv) development services under the Initial Development Program for XEN901, and (v) development services under the Initial Development Program for the DTCs. The total transaction price of $33,333 was allocated to performance obligation (v) based on its estimated standalone selling price determined based on internal development plans and budget, with the balance allocated to performance obligations (i) and (ii) by the residual approach. The Company allocated the transaction price as follows: $28,807 to performance obligations (i) and (ii), which performance obligations are delivered concurrently and are being recognized as revenue over an approximate five quarter period from the signing of the agreement, which is the expected period to complete the delivery of the licenses and transfer of the relevant technology and know-how, and $4,526 to performance obligation (v) which is being recognized as revenue over an approximate seven quarter period beginning the first quarter of 2020 which is the expected period to complete the development services.

The arrangement consideration related to the services under performance obligations (iii) and (iv) to be performed on behalf of Neurocrine Biosciences were excluded from the initial transaction price allocation because the consideration and performance are contingent upon Neurocrine Biosciences requesting performance of the services and these services are priced at an estimated fair value. None of the at-risk substantive performance milestones, including development, regulatory and sales-based milestones, were included in the transaction price, as all milestone amounts are outside the control of the Company and contingent upon Neurocrine Biosciences’s efforts and success in future clinical trials. The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

During the three and nine month periods ended September 30, 2020, the Company recognized $6,554 and $27,016 of revenue, respectively, which comprised of $4,898 and $22,182, respectively, associated with (i) the exclusive license to XEN901 and (ii) the exclusive license to the DTCs; $1,308 and $4,010, respectively, for the research and development services under (iii) the Research Program and (iv) the Initial Development Program for XEN901; and $348 and $824, respectively, for (v) development services under the Initial Development Program for the DTCs. As of September 30, 2020, there is $1,382 of accounts receivable and $7,446 of deferred revenue related to the Neurocrine Collaboration Agreement, which is classified as current on the balance sheet based on the period the services are expected to be delivered.

The Company has an option to co-fund 50% of the development costs of XEN901 or another product candidate in the U.S., exercisable upon achievement of certain milestones, in exchange for increased U.S. royalties. The Company has not exercised this option as of September 30, 2020.

Neurocrine Biosciences was a related party as of December 31, 2019 but was not considered a related party as of September 30, 2020.

(b)

Flexion Therapeutics Inc. (“Flexion”):

In September 2019, the Company entered into an agreement with Flexion pursuant to which Flexion acquired all rights with respect to XEN402, and a related compound (collectively “XEN402”), including certain regulatory documentation, intellectual property rights, reports, data and all quantities of XEN402 owned or controlled by the Company. XEN402 is a sodium channel inhibitor that the Company previously developed with its collaborator Teva Pharmaceuticals Industries Ltd.

Flexion paid the Company upfront consideration of $3,000. In addition, the Company will also be eligible for various CMC, development and regulatory milestone payments of up to $9,000 through initiation of a Phase 2 proof-of-concept clinical trial, of which $500 related to the initiation of the first GLP toxicology study was included in the recognized transaction price at September 30, 2019. Following successful proof-of-concept, the Company may be entitled to future clinical development and global regulatory approval milestone payments of up to $40,750, commercial milestone payments of up to $75,000, as well as future royalties ranging from mid-single to low-double digit percentages. These additional amounts will be recognized as determinable.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Income Taxes

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

12.	Income taxes:

Income tax (expense) recovery for the three and nine months ended September 30, 2020 and 2019 arose from the operations of Xenon Pharmaceuticals USA Inc., the Company’s wholly-owned subsidiary in the United States. Deferred income tax assets recorded on the consolidated balance sheets as of September 30, 2020 and December 31, 2019 resulted from the temporary differences between the amounts of assets and liabilities recognized for financial statement and income tax purposes related to the operations of Xenon Pharmaceuticals USA Inc. 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.

Commitments And Contingencies Disclosure [Abstract]

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies

13.	Commitments and contingencies:

(a)

Priority access agreement with Medpace Inc. (“Medpace”):

In August 2015, the Company entered into a priority access agreement with Medpace for the provision of certain clinical development services, under which the Company has committed to using Medpace non-exclusively for clinical development services over the five year term of the agreement which ended in August 2020. The Company has committed to $7,000 of services over the term of the agreement of which $3,243 of services have been received and $3,757 remains committed as of September 30, 2020. As the Company did not meet the commitment to retain Medpace for $7,000 of services prior to August 2020, the Company is required to provide Medpace the exclusive right to perform all subsequent outsourced clinical development work until such $7,000 commitment has been satisfied, subject to the availability of appropriate Medpace resources and reasonable service rates. If the Company decides not to retain Medpace for the provision of clinical development services, the Company may satisfy its obligations under the priority access agreement by paying Medpace an amount equal to half of the unsatisfied portion.

(b)

License, manufacture and supply agreement:

In March 2017, the Company entered into a license, manufacture and supply agreement with a pharmaceutical contract manufacturing organization for the access and use of certain regulatory documents as well as for the manufacture and supply of clinical and commercial drug product to support the development of XEN007. Under the terms of the agreement, the Company will be required to pay a low single-digit percentage royalty on net sales of any products developed and commercialized under the agreement.

(c)

Asset purchase agreement with 1st Order Pharmaceuticals, Inc. (“1st Order”):

In April 2017, the Company acquired XEN1101 (previously known as 1OP2198) from 1st Order pursuant to an asset purchase agreement. In August 2020, the Company and 1stOrder amended the asset purchase agreement to amend certain definitions in the agreement and to modify the payment schedule for certain milestones. Future potential payments to 1st Order related to the XEN1101 program include up to $1,200 in clinical development milestones, up to $6,000 in regulatory milestones, and $500 in other milestones. To date, the Company has paid $300 based on progress against these milestones. There are no royalty obligations to 1st Order.

(d)

License agreement

In July 2017, the Company entered into a license agreement with a pharmaceutical company for the access and use of certain regulatory documents to support the development of XEN007. Future potential payments include $2,000 in clinical development milestones, up to $7,000 in regulatory milestones, plus a low-to-mid single-digit percentage royalty on net sales of any products developed and commercialized under the agreement. No amounts have been accrued to date based on the progress against these milestones.

(e)

Guarantees and indemnifications:

The Company has entered into license and research agreements with third parties that include indemnification provisions that are customary in the industry. These indemnification provisions generally require the Company to compensate the other party for certain damages and costs incurred as a result of third party claims or damages arising from these transactions.

The maximum amount of potential future indemnification is unlimited; however, the Company currently holds commercial and product liability insurance. This insurance limits the Company’s exposure and may enable it to recover a portion of any future amounts paid. Historically, the Company has not made any indemnification payments under such agreements and the Company believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations for any period presented.

Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Schedule of Cost Components of Operating Lease

The cost components of the operating lease were as follows for the three and nine month periods ended September 30, 2020 and 2019:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Lease Cost
Operating lease expense	$	151		$	109		$	411		$	328
Variable lease expense⁽¹⁾		137			136			404			404
Lease Term and Discount Rate
Remaining lease term (years)	1.5			2.5			1.5			2.5
Discount rate		3.75	%		3.75	%		3.75	%		3.75	%

⁽¹⁾

Future Minimum Lease Payments

Future minimum lease payments as of September 30, 2020 were as follows:

Year ending December 31:
2020	$	158
2021		599
2022		47
Total future minimum lease payments	$	804
Less: imputed interest		(20	)
Present value of lease liabilities	$	784

Accounts Payable and Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2020

Payables And Accruals [Abstract]

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	September 30,		December 31,
	2020		2019
Trade payables	$	2,198	$	2,473
Employee compensation, benefits, and related accruals		2,629		2,892
Consulting and contracted research		3,774		3,104
Professional fees		196		154
Other		78		195
Total	$	8,875	$	8,818

Share Capital (Tables)

9 Months Ended

Sep. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Option Activity

The following table presents stock option activity for the period:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Outstanding, beginning of period		4,595,432			2,663,788			3,534,236			2,671,906
Granted		194,400			1,180,175			1,440,050			1,202,075
Exercised⁽¹⁾		(375	)		(148,948	)		(153,417	)		(174,811	)
Forfeited, cancelled or expired		(3,363	)		(43,096	)		(34,775	)		(47,251	)
Outstanding, end of period		4,786,094			3,651,919			4,786,094			3,651,919
Exercisable, end of period		2,324,090			1,846,826			2,324,090			1,846,826

⁽¹⁾

Fair Value Assumptions for Stock Options

The fair value of each stock option granted is estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Average risk-free interest rate		0.40	%		1.76	%		0.72	%		1.77	%
Expected volatility		68	%		69	%		68	%		69	%
Average expected term (in years)		6.64			7.04			6.79			7.03
Expected dividend yield		0	%		0	%		0	%		0	%
Weighted average fair value of stock options granted	$	7.03		$	6.24		$	7.46		$	6.22

Revenue (Tables)

9 Months Ended

Sep. 30, 2020

Revenue From Contract With Customer [Abstract]

Schedule of Collaboration Revenue

Revenue was as follows for the three and nine month periods ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Neurocrine Biosciences:
Recognition of the transaction price	$	5,246	$	—	$	23,006	$	—
Research and development services		1,308		—		4,010		—
Flexion:
Recognition of the transaction price		—		3,000		—		3,000
Milestone payment		—		500		—		500
Total collaboration revenue	$	6,554	$	3,500	$	27,016	$	3,500

Nature of the Business (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Nature of the Business (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Accumulated deficit	$ 266,169						$ 266,169		$ 249,655
Net loss	$ 8,855	$ 175	$ 7,484	$ 8,871	$ 10,007	$ 11,341	$ 16,514	$ 30,219

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Remaining lease term (years)

Basis of Presentation (Details)	9 Months Ended
Basis of Presentation (Details)	Sep. 30, 2020
Xenon Pharmaceuticals USA Inc. [Member]
Basis Of Presentation [Line Items]
Date of incorporation	Dec. 02, 2016

Net Income (Loss) Per Common (Details) - shares	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Preferred shares, issued	1,016,000	1,016,000
Series1 Preferred Shares
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Preferred shares, issued	1,016,000		1,016,000

Leases (Details) - Burnaby, British Columbia [Member]	9 Months Ended
Leases (Details) - Burnaby, British Columbia [Member]	Sep. 30, 2020 Lease
Lessee Lease Description [Line Items]
Number of operating leases	1
Operating lease term	120 months
Operating lease expiration date	Mar. 31, 2022
Operating lease, description	The Company has one operating lease for research laboratories and office space in Burnaby, British Columbia for a 120-month term from April 1, 2012 to March 31, 2022.

Leases - Schedule of Cost Components of Operating Lease (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2020

Sep. 30, 2019

Leases [Abstract]

Operating lease expense

$ 151

$ 109

$ 411

$ 328

Variable lease expense

^[1]

$ 137

$ 136

$ 404

1 year 6 months

2 years 6 months

1 year 6 months

2 years 6 months

Discount rate

3.75%

[1]	Variable lease costs are payments that vary because of changes in facts or circumstances and include common area maintenance and property taxes related to the premises. Variable lease costs are excluded from the calculation of minimum lease payments.

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2020	$ 158
2021	599
2022	47
Total future minimum lease payments	804
Less: imputed interest	(20)
Present value of lease liabilities	$ 784

Accounts Payable and Accrued Expenses - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Payables And Accruals [Abstract]
Trade payables	$ 2,198	$ 2,473
Employee compensation, benefits, and related accruals	2,629	2,892
Consulting and contracted research	3,774	3,104
Professional fees	196	154
Other	78	195
Total	$ 8,875	$ 8,818

Term Loan (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	May 31, 2020	Sep. 30, 2020	Aug. 31, 2018
Debt Instrument [Line Items]
Loss on repayment of term loan (note 9)		$ (988)
Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument, final payment fee	$ 1,008
Debt instrument prepayment fee	$ 225
Warrants outstanding to purchase common stock		40,000
Warrants exercise price per common share		$ 9.79
Warrants outstanding to purchase common stock expiration period		2028-08
Loss on repayment of term loan (note 9)		$ 988
Silicon Valley Bank [Member] \| Term Loan [Member] \| Loan Agreement [Member]
Debt Instrument [Line Items]
Aggregate principal amount of debt instrument			$ 15,500

Share Capital (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended						3 Months Ended	9 Months Ended	12 Months Ended
	Aug. 31, 2020	Jun. 30, 2020	Feb. 29, 2020	Jan. 31, 2020	Nov. 30, 2019	Mar. 31, 2018	Mar. 31, 2020	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Share Capital [Line Items]
Sale proceeds of common shares								$ 102,456
Amount offered for issuance of common stock							$ 102,456
Two Thousand Fourteen Plan [Member]
Share Capital [Line Items]
Common stock reserved for issuance		4,000,000
Number of restricted share awards, restricted share unit awards or performance awards available for issue		1,000,000
Series1 Preferred Shares
Share Capital [Line Items]
Conversion of shares										1,852,000
Common Shares [Member]
Share Capital [Line Items]
Conversion of shares										1,852,000
BVF Partners L.P [Member] \| Exchange Agreement [Member]
Share Capital [Line Items]
Estimated weighted average cancellation price per share of common stock						$ 7.61
BVF Partners L.P [Member] \| Exchange Agreement [Member] \| Series1 Preferred Shares
Share Capital [Line Items]
Shares issued						2,868,000
Preferred shares convertible into common shares						one-for-one
Maximum beneficial ownership limitation percentage for conversion of common stock issued and outstanding						9.99%
Maximum beneficial ownership limitation upon notice, percentage for conversion of common stock issued and outstanding						19.99%
Maximum beneficial percentage hold for conversion of number Of common stock issued and outstanding						5.00%
Minimum beneficial percentage hold for conversion of number Of common stock issued and outstanding.						5.00%
BVF Partners L.P [Member] \| Exchange Agreement [Member] \| Common Shares [Member]
Share Capital [Line Items]
Shares cancelled						2,868,000
Common Shares [Member]
Share Capital [Line Items]
Shares issued							6,759,187
Amount offered for issuance of common stock							$ 102,456
Jefferies and Stifel [Member] \| At-The-Market Equity Offering [Member]
Share Capital [Line Items]
Sale proceeds of common shares				$ 37,979					$ 10,771
Jefferies and Stifel [Member] \| At-The-Market Equity Offering [Member] \| Maximum [Member]
Share Capital [Line Items]
Sale proceeds of common shares					$ 50,000
Amount offered for issuance of common stock	$ 100,000
Jefferies and Stifel [Member] \| At-The-Market Equity Offering [Member] \| Common Shares [Member]
Share Capital [Line Items]
Shares issued				2,446,687				0	805,643
Jefferies, Stifel and Guggenheim Securities, LLC [Member] \| Underwritten Public Offering [Member]
Share Capital [Line Items]
Sale proceeds of common shares				$ 56,700
Additional proceeds from issuance of common stock				$ 8,460
Jefferies, Stifel and Guggenheim Securities, LLC [Member] \| Underwritten Public Offering [Member] \| Common Shares [Member]
Share Capital [Line Items]
Shares issued			562,500	3,750,000
Shares price				$ 16.00

Share Capital - Stock Option Activity (Details) - shares

3 Months Ended

9 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2020

Sep. 30, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Number of Options Outstanding, Beginning balance

4,595,432

2,663,788

3,534,236

2,671,906

Number of Options, Granted

194,400

1,180,175

1,440,050

1,202,075

Number of Options, Exercised

^[1]

(375)

(148,948)

(153,417)

(174,811)

Number of Options, Forfeited, cancelled or expired

(3,363)

(43,096)

(34,775)

(47,251)

Number of Options Outstanding, Ending balance

4,786,094

3,651,919

4,786,094

3,651,919

Number of Options Exercisable, End of period

2,324,090

1,846,826

2,324,090

1,846,826

[1]

During the nine months ended September 30, 2020, 10,715 stock options were exercised for the same number of common shares for cash (nine months ended September 30, 2019 – 23,625). In the same period, the Company issued 85,816 common shares (nine months ended September 30, 2019 – 94,248) for the cashless exercise of 142,702 stock options (nine months ended September 30, 2019 – 151,186).

Share Capital - Stock Option Activity (Parenthetical) (Details) - shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Options exercised for Number of Common Shares for cash	10,715	23,625
Common stock issued for cashless exercise	85,816	94,248
Cashless exercise of stock options	142,702	151,186

Share Capital - Fair Value Assumptions for Stock Options (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Fair Value Assumptions For Stock Options [Abstract]
Average risk-free interest rate	0.40%	1.76%	0.72%	1.77%
Expected volatility	68.00%	69.00%	68.00%	69.00%
Average expected term (in years)	6 years 7 months 20 days	7 years 14 days	6 years 9 months 14 days	7 years 10 days
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Weighted average fair value of stock options granted	$ 7.03	$ 6.24	$ 7.46	$ 6.22

Revenue - Schedule of Collaboration Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation Of Revenue [Line Items]
Revenue	$ 6,554	$ 3,500	$ 27,016	$ 3,500
Neurocrine Biosciences [Member] \| Collaboration Revenue [Member]
Disaggregation Of Revenue [Line Items]
Recognition of the transaction price	5,246		23,006
Research and development services	1,308		4,010
Revenue	$ 6,554	3,500	$ 27,016	3,500
Flexion [Member] \| Collaboration Revenue [Member]
Disaggregation Of Revenue [Line Items]
Recognition of the transaction price		3,000		3,000
Milestone payment		$ 500		$ 500

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
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