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Commitments and Contingencies | 6 Months Ended
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Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Lease Obligations In May 2018, the Company entered into an operating lease for its corporate headquarters in South San Francisco (the "Headquarters Lease"). In April 2023, the Company entered into a finance lease for its clinical manufacturing site in Salt Lake City (the "SLC Lease"). Both leases are further described in Note 7, "Commitments and Contingencies," to the consolidated financial statements in the Company's 2024 Annual Report on Form 10-K. Within the total ROU assets for the SLC Lease, the Company recorded assets of $44.4 million and $41.6 million as of June 30, 2025 and December 31, 2024, respectively, which were purchased by the Company but are considered to be owned by the landlord. The current finance lease liability is included in other accrued costs and current liabilities in the Condensed Consolidated Balance Sheet as of June 30, 2025. There were no changes to the terms of the leases recognized under ASC 842 during the three and six months ended June 30, 2025 or 2024. Operating lease costs, excluding variable lease costs, were $1.9 million and $3.8 million for the three and six months ended June 30, 2025, respectively, and $1.9 million and $3.9 million for the three and six months ended June 30, 2024, respectively. Variable lease costs related to the operating lease were $1.2 million and $2.5 million for the three and six months ended June 30, 2025, respectively, and $1.2 million and $2.3 million for the three and six months ended June 30, 2024, respectively. Finance lease costs representing amortization of ROU assets and interest on lease liability were $0.9 million and $0.2 million, respectively, for the three months ended June 30, 2025, and $1.8 million and $0.4 million, respectively, for the six months ended June 30, 2025. There was no finance lease costs for the three and six months ended June 30, 2024. The following tables contain a summary of other information pertaining to the Company’s leases for the periods presented (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Operating cash flows from operating lease | $ | 2,948 |  |  | $ | 2,854 |  |  | $ | 5,833 |  |  | $ | 5,647 |
| As of June 30,
| 2025 |  | 2024
Weighted-average remaining lease term (in years): |  |  |
Operating lease | 3.8 years |  | 4.8 years
Finance lease | 13.8 years |  | —
Weighted-average discount rate applied (%): |  |  |
Operating lease | 9.0% |  | 9.0%
Finance lease | 13.7% |  | —%
The following table reconciles the undiscounted cash flows for the next five years and total of the remaining years to the operating and finance lease liabilities recorded in the Condensed Consolidated Balance Sheet as of June 30, 2025 (in thousands):
Year Ended December 31: |  | Operating Lease |  | Finance Lease
2025 (six months) |  | $ | 5,960 |  |  | $ | 1,736 |
2026 |  | 12,182 |  |  | 794 |
2027 |  | 12,584 |  |  | 811 |
2028 |  | 13,001 |  |  | 829 |
2029 |  | 4,381 |  |  | 848 |
Thereafter |  | — |  |  | 8,814 |
Total undiscounted lease payments |  | 48,108 |  |  | 13,832 |
Less: present value adjustment |  | (7,127) |  |  | — |
Less: imputed interest |  | — |  |  | (6,840) |
Total future minimum lease payments |  | $ | 40,981 |  |  | $ | 6,992 |
Indemnification In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to vendors, lessors, business partners, board members, officers, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company, negligence or willful misconduct of the Company, violations of law by the Company, or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon the Company to provide indemnification under such agreements, and thus, there are no claims that the Company is aware of that could have a material effect on the Company’s Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations and Comprehensive Loss, or Condensed Consolidated Statements of Cash Flows. Commitments Effective September 2017, the Company entered into a Development and Manufacturing Services Agreement as amended (“DMSA”) with Lonza Sales AG (“Lonza”) for the development and manufacture of biologic products. Under the DMSA, the Company will execute purchase orders based on project plans authorizing Lonza to provide development and manufacturing services with respect to certain of the Company's antibody and enzyme products, and will pay for the services provided and batches delivered in accordance with the DMSA and project plan. Unless earlier terminated, the DMSA will expire when all development and manufacturing services are completed, which is not expected to be before January 2028. As of June 30, 2025 and December 31, 2024, the Company had total non-cancellable purchase commitments under the DMSA of $9.1 million and $36.7 million, respectively. During the three months ended June 30, 2025 and 2024, the Company incurred costs of $1.3 million and $6.2 million, respectively, and made payments of $4.9 million and $16.8 million, respectively, for the development and manufacturing services rendered under the DMSA. During the six months ended June 30, 2025 and 2024, the Company incurred costs of $3.9 million and $22.6 million, respectively, and made payments of $10.9 million and $30.3 million, respectively, for the development and manufacturing services rendered under the DMSA. In the normal course of business, the Company enters into other firm purchase commitments primarily related to research and development activities. The Company had contractual obligations under certain clinical and manufacturing agreements other than the DMSA of $57.8 million and $24.1 million, as of June 30, 2025 and December 31, 2024, respectively, with certain amounts subject to cost sharing with Takeda. Contingencies From time to time, the Company may be involved in lawsuits, arbitration, claims, investigations and proceedings consisting of intellectual property, employment and other matters which arise in the ordinary course of business. The Company records accruals for loss contingencies to the extent that the Company concludes that it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated.

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