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Balance Sheet Components | 12 Months Ended
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Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Balance Sheet Components | 8. Balance Sheet Components Cash and Cash Equivalents Cash and cash equivalents consisted of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Cash |  | $ | 63,396 |  |  | $ | 135,819 |
Commercial paper |  |  | 36,016 |  |  |  | — |
Money market funds |  |  | 12,288 |  |  |  | 19,881 |
U.S. government bonds |  |  | 1,988 |  |  |  | — |
Total cash and cash equivalents |  | $ | 113,688 |  |  | $ | 155,700 |
At December 31, 2023 and 2022, a total of $32.2 million and $92.5 million, respectively, of the Company’s cash and cash equivalents were held outside of the U.S. in its foreign subsidiaries to be used primarily for its China operations. Investments The Company’s investments consist primarily of available-for-sale debt investments. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s investments by major investments type are summarized in the tables below (in thousands):
|  | December 31, 2023 |
|  | Amortized Cost |  |  | Gross Unrealized Holding Gains |  |  | Gross Unrealized Holding Losses |  |  | Estimated Fair Value |
Corporate bonds |  | $ | 13,988 |  |  | $ | 9 |  |  | $ | (5 | ) |  | $ | 13,992 |
Commercial paper |  |  | 52,273 |  |  |  | — |  |  |  | — |  |  |  | 52,273 |
U.S. government bonds |  |  | 45,783 |  |  |  | 20 |  |  |  | — |  |  |  | 45,803 |
Agency bonds |  |  | 9,830 |  |  |  | 1 |  |  |  | (1 | ) |  |  | 9,830 |
Total investments |  | $ | 121,874 |  |  | $ | 30 |  |  | $ | (6 | ) |  | $ | 121,898 |
|  | December 31, 2022 |
|  | Amortized Cost |  |  | Gross Unrealized Holding Gains |  |  | Gross Unrealized Holding Losses |  |  | Estimated Fair Value |
Corporate bonds |  | $ | 83,080 |  |  | $ | — |  |  | $ | (1,072 | ) |  | $ | 82,008 |
Commercial paper |  |  | 57,381 |  |  |  | — |  |  |  | — |  |  |  | 57,381 |
U.S. government bonds |  |  | 112,547 |  |  |  | 5 |  |  |  | (1,207 | ) |  |  | 111,345 |
Agency bonds |  |  | 11,690 |  |  |  | — |  |  |  | (222 | ) |  |  | 11,468 |
Asset-backed securities |  |  | 2,484 |  |  |  | — |  |  |  | (10 | ) |  |  | 2,474 |
Foreign government bonds |  |  | 5,007 |  |  |  | — |  |  |  | (27 | ) |  |  | 4,980 |
Convertible promissory note |  |  | 1,000 |  |  |  | — |  |  |  | — |  |  |  | 1,000 |
Total investments |  | $ | 273,189 |  |  | $ | 5 |  |  | $ | (2,538 | ) |  | $ | 270,656 |
The following table summarizes, for all available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position (in thousands):
|  | December 31, 2023 |
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Estimated Fair Value |  |  | Gross Unrealized Holding Losses |  |  | Estimated Fair Value |  |  | Gross Unrealized Holding Losses |  |  | Estimated Fair Value |  |  | Gross Unrealized Holding Losses |
Corporate bonds |  | $ | — |  |  | $ | — |  |  | $ | 3,495 |  |  | $ | (5 | ) |  | $ | 3,495 |  |  | $ | (5 | )
U.S. government bonds |  |  | 4,984 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,984 |  |  |  | — |
Agency bonds |  |  | 4,987 |  |  |  | (1 | ) |  |  | — |  |  |  | — |  |  |  | 4,987 |  |  |  | (1 | )
Total |  | $ | 9,971 |  |  | $ | (1 | ) |  | $ | 3,495 |  |  | $ | (5 | ) |  | $ | 13,466 |  |  | $ | (6 | )
|  | December 31, 2022 |
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Estimated Fair Value |  |  | Gross Unrealized Holding Losses |  |  | Estimated Fair Value |  |  | Gross Unrealized Holding Losses |  |  | Estimated Fair Value |  |  | Gross Unrealized Holding Losses |
Corporate bonds |  | $ | 6,738 |  |  | $ | (147 | ) |  | $ | 75,270 |  |  | $ | (925 | ) |  | $ | 82,008 |  |  | $ | (1,072 | )
U.S. government bonds |  |  | 22,326 |  |  |  | (13 | ) |  |  | 67,909 |  |  |  | (1,194 | ) |  |  | 90,235 |  |  |  | (1,207 | )
Agency bonds |  |  | — |  |  |  | — |  |  |  | 11,468 |  |  |  | (222 | ) |  |  | 11,468 |  |  |  | (222 | )
Asset-backed securities |  |  | 2,474 |  |  |  | (10 | ) |  |  | — |  |  |  | — |  |  |  | 2,474 |  |  |  | (10 | )
Foreign government bonds |  |  | — |  |  |  | — |  |  |  | 4,980 |  |  |  | (27 | ) |  |  | 4,980 |  |  |  | (27 | )
Total |  | $ | 31,538 |  |  | $ | (170 | ) |  | $ | 159,627 |  |  | $ | (2,368 | ) |  | $ | 191,165 |  |  | $ | (2,538 | )
The contractual maturities of all available-for-sale investments were with in one year as of December 31, 2023. The Company periodically reviews its available-for-sale investments for other-than-temporary impairment. The Company considers factors such as the duration, severity and the reason for the decline in value, the potential recovery period and its intent to sell. For debt securities, the Company also considers whether (i) it is more likely than not that the Company will be required to sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses. During the three years ended December 31, 2023, the Company did no t recognize any other-than-temporary impairment loss. Inventories Inventories consisted of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Raw materials |  | $ | 1,376 |  |  | $ | 1,241 |
Work-in-progress |  |  | 34,614 |  |  |  | 36,003 |
Finished goods |  |  | 5,575 |  |  |  | 3,192 |
Total inventories |  | $ | 41,565 |  |  | $ | 40,436 |
The provision to write-down excess and obsolete inventory were immaterial as of December 31, 2023 and December 31, 2022. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Contract assets |  | $ | 26,481 |  |  | $ | 17,488 |
Deferred revenues from associated contracts |  |  | (26,481 | ) |  |  | (17,488 | )
Net contract assets |  |  | — |  |  |  | — |
Insurance proceeds receivable for litigation settlement |  |  | 28,500 |  |  |  |
Prepaid assets |  |  | 6,644 |  |  |  | 9,730 |
Other current assets |  |  | 6,711 |  |  |  | 4,353 |
Total prepaid expenses and other current assets |  | $ | 41,855 |  |  | $ | 14,083 |
The unbilled contract assets as of December 31, 2023 and 2022 included $22.5 million and $17.5 million, respectively, related to unbilled co-development revenue under the AstraZeneca China Amendment. In addition, the unbilled contract assets as of December 31, 2023 included the $4.0 million unbilled regulatory milestone payment under the AstraZeneca China Agreement. See the AstraZeneca China Agreement section in Note 3, Collaboration Agreements, License Agreement and Revenues, for details. As of December 31, 2023, the Company recorded a $28.5 million receivable in prepaid expenses and other current assets, corresponding to the accrued litigation settlement of the same amount related to the Company’s agreement in principle with plaintiffs to settle the class action lawsuit. As the Company maintains insurance that covers exposure related to the class action lawsuit, this amount is fully recoverable under the Company’s insurance policies. The determination that the recorded receivables are probable of collection is based on the terms of the applicable insurance policies and communications with the insurers. See the Accrued and Other Current Liabilities section below, and the Legal Proceedings and Other Matters section in Note 12, Commitments and Contingencies, for details. Property and Equipment Property and equipment consisted of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Leasehold improvements |  | $ | 102,109 |  |  | $ | 102,580 |
Laboratory equipment |  |  | 22,757 |  |  |  | 21,175 |
Machinery |  |  | 9,454 |  |  |  | 9,642 |
Computer equipment |  |  | 9,490 |  |  |  | 9,486 |
Furniture and fixtures |  |  | 6,184 |  |  |  | 6,200 |
Construction in progress |  |  | 62 |  |  |  | 204 |
Total property and equipment |  | $ | 150,056 |  |  | $ | 149,287 |
Less: accumulated depreciation |  |  | (136,930 | ) |  |  | (128,682 | )
Property and equipment, net |  | $ | 13,126 |  |  | $ | 20,605 |
Depreciation expense for the years ended December 31, 2023, 2022 and 2021 was $9.5 million, $10.0 million and $10.2 million, respectively. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following (in thousands):
|  | December 31, |
|  | 2023 |  |  | 2022 |
Preclinical and clinical trial accruals |  | $ | 27,663 |  |  | $ | 57,780 |
API and bulk drug product price true-up |  |  | 50,978 |  |  |  | 75,055 |
Litigation settlement |  |  | 28,500 |  |  |  | — |
Payroll and related accruals |  |  | 20,267 |  |  |  | 22,562 |
Accrued co-promotion expenses - current |  |  | 10,309 |  |  |  | 36,677 |
Roxadustat profit share to AstraZeneca |  |  | 7,084 |  |  |  | 7,280 |
Property taxes and other taxes |  |  | 6,615 |  |  |  | 7,691 |
Professional services |  |  | 7,103 |  |  |  | 5,480 |
Current portion of liability related to sale of future revenues |  |  | 5,654 |  |  |  | — |
Accrued restructuring charge |  |  | 3,697 |  |  |  | — |
Other |  |  | 5,021 |  |  |  | 7,248 |
Total accrued and other current liabilities |  | $ | 172,891 |  |  | $ | 219,773 |
The accrued liabilities of $51.0 million for API and bulk drug product price true-up as of December 31, 2023 resulted from changes in estimated variable consideration associated with the API shipments fulfilled under the terms of the Astellas Japan Amendment, the bulk drug product transferred under the terms of the Astellas Europe Agreement and the Astellas EU Supply Agreement, and the bulk drug product shipments to AstraZeneca under the terms of the AstraZeneca Master Supply Agreement. See the Drug Product Revenue, Net section in Note 3, Collaboration Agreements, License Agreement and Revenues, for details. As of December 31, 2023, the accrued litigation settlement of $28.5 million was related to the Company’s agreement in principle with plaintiffs to settle the class action lawsuit. See the Prepaid Expenses and Other Current Assets section above, and the Legal Proceedings and Other Matters section in Note 12, Commitments and Contingencies, for details. On July 14, 2023, the Company approved a restructuring plan (the “Plan”) to lower the Company’s operating expenses. The Plan included a reduction to the Company’s U.S. workforce of approximately 32%. As a result, the Company recorded a total of $12.6 million non-recurring restructuring charge during the third quarter of 2023, primarily consisting of notice period and severance payments, accrued vacation, and employee benefits contributions. During the year ended December 31, 2023, total cash payments under the Plan was $8.9 million. The remaining accrued restructuring charge was $3.7 million as of December 31, 2023 and will be substantially paid out by early 2024. The Plan is in connection with the Company’s efforts to streamline operations to align with the Company’s business goals.

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