0001654151-24-000018 | 10-Q | XBRL Viewer | Deciphera Pharmaceuticals INC

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	125,000,000	125,000,000
Common stock, shares issued (in shares)	82,158,670	80,503,338
Common stock, shares outstanding (in shares)	82,158,670	80,503,338

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 29, 2024, the Company, Ono, and Topaz Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (Merger Sub), entered into an Agreement and Plan of Merger (the Merger Agreement). Pursuant to the Merger Agreement, and upon the terms and subject to the conditions therein, Merger Sub will commence a cash tender offer (the Offer) to acquire all of the issued and outstanding shares of the Company’s common stock, at a price per share of $25.60, net to the seller in cash, without interest and subject to any withholding of taxes required by applicable law. Following the consummation of the Offer, Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation. The merger is expected to close in the third quarter of 2024. If the Merger Agreement is terminated by the Company under certain circumstances specified in the Merger Agreement, the Company will be required to pay Parent a termination fee of $78.8 million.

Revenues (Tables)

3 Months Ended

Mar. 31, 2024

Disaggregation of Product Revenues, Net [Line Items]

Analysis Of Amount Of And Change In Product Revenue Reserves.

Activity in each of the product revenue allowance and reserve categories is summarized as follows:


(in thousands)	Trade discounts and allowances		Chargebacks and administrative fees		Government rebates and other incentives		Returns		Total
Balance as of December 31, 2023	$	754	$	880	$	24,866	$	1,095	$	27,595
Provision related to sales in the current year	1,312		3,879		5,682		1,026		11,899
Adjustments related to prior period sales	—		—		—		(164)		(164)
Credits and payments made during the period	(1,097)		(3,654)		(2,787)		(521)		(8,059)
Balance as of March 31, 2024	$	969	$	1,105	$	27,761	$	1,436	$	31,271

Summary Of Total Product Revenue Reserves Included In The Consolidated Balance Sheets

The total reserves described above are summarized as components of the Company's consolidated balance sheets as follows:


(in thousands)	As of March 31, 2024		As of December 31, 2023
Reduction of accounts receivable, net	$	1,999	$	1,528
Component of accrued expenses and other current liabilities	29,272		26,067
Total revenue-related reserves	$	31,271	$	27,595

Product revenues, net

Disaggregation of Product Revenues, Net [Line Items]

Disaggregation of Product Revenue

Net product revenues by geography consisted of the following and are attributable to individual countries based on the location of the customer:


	Three Months Ended March 31,
(in thousands)		2024		2023
U.S.		$	31,836	$	24,624
Rest of world		10,714		8,598
Total product revenues, net		$	42,550	$	33,222

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Revenues - Total Reserves Summarized (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue-related reserves	$ 31,271	$ 27,595
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Revenue-related reserves	31,271	27,595
Accounts Receivable
Revenue from Contract with Customer [Abstract]
Revenue-related reserves	1,999	1,528
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Revenue-related reserves	1,999	1,528
Accrued Expenses And Other Current Liabilities
Revenue from Contract with Customer [Abstract]
Revenue-related reserves	29,272	26,067
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Revenue-related reserves	$ 29,272	$ 26,067

Other Consolidated Financial Statement Detail - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid external research and development expenses	$ 12,767	$ 12,729
Prepaid selling, general, and administrative expenses	8,062	5,811
Short-term interest receivable	1,413	1,772
Other current assets	1,386	1,406
Total prepaid expenses and other current assets	$ 23,628	$ 21,718

Marketable Securities and Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Commercial paper \| Letter of Credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certificate of deposit held to secure letter of credit associated with lease and credit card	$ 3.1	$ 3.1

Subsequent Events (Details) - Merger Agreement - Subsequent Event $ / shares in Units, $ in Millions	Apr. 29, 2024 USD ($) $ / shares
Subsequent Event [Line Items]
Business acquisition, share price (in dollars per share) \| $ / shares	$ 25.60
Termination fee amount \| $	$ 78.8

Nature of the Business and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Potential Dilutive Securities

The following potential dilutive securities, presented based on amounts outstanding at the end of each reporting period, have been excluded from the calculation of diluted net loss per share because including them would have had an anti-dilutive impact:


	As of March 31,
	2024	2023
Options to purchase common stock	10,091,606	9,256,574
Unvested restricted stock units	3,122,494	2,930,554
Employee stock purchase plan shares	84,623	61,307
Total	13,298,723	12,248,435

Restricted stock units that are outstanding and contain performance-based vesting criteria for which the performance conditions have not been met are excluded from the presentation of common stock equivalents outstanding in the chart above.

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Total revenues	$ 44,999	$ 33,445
Cost and operating expenses:
Cost of sales	2,088	488
Research and development	57,834	54,765
Selling, general, and administrative	33,924	31,449
Total cost and operating expenses	93,846	86,702
Loss from operations	(48,847)	(53,257)
Other income:
Interest and other income, net	3,764	3,648
Total other income, net	3,764	3,648
Net loss	$ (45,083)	$ (49,609)
Net loss per share—diluted (in dollars per share)	$ (0.52)	$ (0.60)
Net loss per share—basic (in dollars per share)	$ (0.52)	$ (0.60)
Weighted average common shares outstanding—diluted (in shares)	87,388,106	82,676,624
Weighted average common shares outstanding—basic (in shares)	87,388,106	82,676,624
Comprehensive loss:
Net loss	$ (45,083)	$ (49,609)
Other comprehensive income (loss):
Unrealized gains (losses) on marketable securities	(206)	709
Currency translation adjustment	(273)	93
Total other comprehensive income (loss)	(479)	802
Total comprehensive loss	(45,562)	(48,807)
Share-based compensation expense	10,174	12,514
Product revenues, net
Total revenues	42,550	33,222
Collaboration revenues
Total revenues	$ 2,449	$ 223

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Pay vs Performance Disclosure
Net loss	$ (45,083)	$ (49,609)	$ (194,900)

- Definition

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

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Stock-Based Awards - Classification of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 10,174	$ 12,514
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	0	0
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	4,731	5,455
Selling, general, and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 5,443	$ 7,059

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+ Details

Nature of the Business and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of the Business and Summary of Significant Accounting Policies

Nature of the Business

Deciphera Pharmaceuticals, Inc. (the Company) is a biopharmaceutical company focused on discovering, developing, and commercializing important new medicines to improve the lives of people with cancer. Leveraging its proprietary switch-control inhibitor platform and deep expertise in kinase biology, the Company designs kinase inhibitors to target the switch pocket region of the kinase with the goal of developing potentially transformative medicines. Through its patient-inspired approach, the Company seeks to develop a broad portfolio of innovative medicines to improve treatment outcomes. QINLOCK, the Company's switch-control tyrosine kinase inhibitor, was discovered using its proprietary drug discovery platform and designed for the treatment of gastrointestinal stromal tumor (GIST). QINLOCK is approved in Australia, Canada, China, the European Union (EU), Hong Kong, Iceland, Israel, Liechtenstein, Macau, New Zealand, Norway, Singapore, Switzerland, Taiwan, the United Kingdom (U.K.), and the United States (U.S.) for the treatment of fourth-line GIST. The Company wholly owns QINLOCK and all of its drug candidates with the exception of a development and commercialization out-license agreement for QINLOCK in Greater China. In addition to QINLOCK, the Company has developed a robust pipeline of novel drug candidates using its switch-control kinase inhibitor platform, including vimseltinib and DCC-3116.

The Company is subject to risks and uncertainties common to companies in the biotechnology industry, including, but not limited to, development by competitors of new technological innovations, dependence on key personnel, market acceptance and the successful commercialization of QINLOCK or any of the Company's current or future drug candidates for which it receives marketing approval, protection of proprietary technology, ability to complete late-stage clinical trials, ability to obtain and maintain regulatory approvals, compliance with government regulations, and the ability to secure additional capital to fund operations. QINLOCK and the Company's drug candidates currently under development will require significant additional research and development efforts, including extensive preclinical and/or clinical testing and regulatory approval. In addition to supporting its research and development efforts, the Company will be required to invest in the Company's commercial capabilities and infrastructure, to support its commercialization of QINLOCK, the Company's first approved drug, and any current or future drug candidate for which the Company obtains marketing approval. These efforts require significant amounts of additional capital, adequate personnel and infrastructure, and extensive compliance-reporting capabilities. Even if the Company's drug development and commercialization efforts are successful, it is uncertain when, if ever, the Company will realize sufficient revenue to result in a profit from product sales of QINLOCK or any current or future drug candidates for which it receives marketing approval.

In April 2022, the Company entered into an underwriting agreement with J.P. Morgan Securities LLC and Jefferies, LLC (Jefferies), as representatives of the several underwriters named therein, relating to the issuance and sale of an aggregate of 7,501,239 shares of its common stock at a public offering price of $10.00 per share to certain investors. In addition, the Company issued and sold pre-funded warrants to purchase 9,748,761 shares of its common stock at a public offering price of $9.99 per pre-funded warrant, which equals the public offering price per share of the common stock less the $0.01 exercise price per share of each pre-funded warrant. The offering closed on April 29, 2022, resulting in net proceeds of $163.4 million, after deducting underwriting discounts and commissions and other offering expenses.

During the three months ended March 31, 2024 and 2023, 914,001 and 2,427,693 shares of pre-funded warrants were exercised, respectively, resulting in net proceeds of less than $0.1 million during each period. As of March 31, 2024, there were 5,514,269 pre-funded warrants outstanding.

In January 2023, the Company entered into an underwriting agreement with J.P. Morgan Securities LLC, Jefferies, Cowen and Company, LLC, and Guggenheim Securities, LLC, as representatives of the several underwriters named therein, relating to the issuance and sale of an aggregate of 7,986,111 shares of its common stock at a public offering price of $18.00 per share. The offering closed on January 24, 2023, resulting in net proceeds of $134.5 million, after deducting underwriting discounts and commissions and other offering expenses.

In May 2023, the Company entered into an Open Market Sale AgreementSM (the Sales Agreement) with Jefferies, pursuant to which the Company may issue and sell shares having aggregate offering proceeds of up to $200.0 million from time to time through Jefferies as its sales agent. Upon delivery of a placement notice and subject to the terms and conditions of the Sales Agreement, Jefferies may sell shares by any method permitted by law deemed to be an "at the market offering" as defined in Rule

415(a)(4) promulgated under the Securities Act of 1933, as amended. The Company may sell shares in amounts and at times to be determined by the Company from time to time subject to the terms and conditions of the Sales Agreement, but it has no obligation to sell any shares under the Sales Agreement. The Company or Jefferies may suspend or terminate the offering of shares upon notice to the other party and subject to other conditions.

During the three months ended March 31, 2024, no shares were issued by the Company under the Sales Agreement. As of March 31, 2024, there was up to $185.0 million available for future issuance under the Sales Agreement.

Basis of Presentation

The accompanying consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets, and the satisfaction of liabilities and commitments in the ordinary course of business. Since inception, the Company has incurred recurring losses, including net losses of $45.1 million and $194.9 million for the three months ended March 31, 2024 and the year ended December 31, 2023, respectively. As of March 31, 2024, the Company had an accumulated deficit of $1.5 billion. The Company expects to continue to generate operating losses for the foreseeable future. The Company expects that its cash, cash equivalents, and marketable securities of $299.3 million as of March 31, 2024, together with anticipated product, royalty, and supply revenues, but excluding any potential future milestones received under its collaboration or license agreements will be sufficient to fund its operating expenses and capital expenditure requirements through at least 12 months from the issuance date of these consolidated financial statements.

If the pending transaction (see Merger Agreement defined within Note 8, Subsequent Events) with Ono Pharmaceutical Co., Ltd., a Japanese company (kabushiki kaisha) (Parent or Ono), does not close, the future viability of the Company will be dependent on its ability to raise additional capital to fund its operations and the Company will need to obtain substantial additional funding in connection with continuing operations. If the Company is unable to raise capital when needed, or on attractive terms, it could be forced to delay, reduce, or further terminate its research or drug development programs or certain commercialization efforts. Although management continues to pursue these plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continuing operations, if at all.

These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.

Unaudited Interim Financial Information

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (GAAP).

The consolidated balance sheet as of December 31, 2023 was derived from audited financial statements, but does not include all disclosures required by GAAP. The accompanying unaudited consolidated financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the Company's audited financial statements and the notes thereto for the year ended December 31, 2023 included in the Company's Form 10-K on file with the SEC.

In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company's consolidated financial position as of March 31, 2024, consolidated results of operations and comprehensive loss for the three months ended March 31, 2024 and 2023, and consolidated cash flows for the three months ended March 31, 2024 and 2023, have been made. The consolidated results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2024.

The significant accounting policies used in preparation of these consolidated financial statements for the three months ended March 31, 2024 are consistent with those discussed in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements in the Company's Form 10-K for the year ended December 31, 2023.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, product revenue reserves, the accrual for research and development expenses, and the valuation of stock-based option awards. Estimates are periodically reviewed in light of changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.

Net Loss per Share

Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding, including pre-funded warrants, for the period. Diluted net income (loss) per share is computed by dividing the diluted net income (loss) by the weighted average number of common shares and potential dilutive common shares assuming the dilutive effect as determined using the treasury stock method.

For periods in which the Company has reported net losses, diluted net loss per common share is the same as basic net loss per common share, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. The Company reported a net loss for the three months ended March 31, 2024 and 2023.


	As of March 31,
	2024	2023
Options to purchase common stock	10,091,606	9,256,574
Unvested restricted stock units	3,122,494	2,930,554
Employee stock purchase plan shares	84,623	61,307
Total	13,298,723	12,248,435

Other Consolidated Financial Statement Detail (Tables)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:


(in thousands)	As of March 31, 2024		As of December 31, 2023
Prepaid external research and development expenses	$	12,767	$	12,729
Prepaid selling, general, and administrative expenses	8,062		5,811
Short-term interest receivable	1,413		1,772
Other current assets	1,386		1,406
Total prepaid expenses and other current assets	$	23,628	$	21,718

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


(in thousands)	As of March 31, 2024		As of December 31, 2023
Revenue-related reserves	$	29,272	$	26,067
External research and development expenses	16,236		16,095
Payroll and related expenses	7,918		20,519
Professional fees	6,013		5,669
Other	957		1,945
Total accrued expenses and other current liabilities	$	60,396	$	70,295

Marketable Securities and Fair Value Measurements - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Marketable Securities [Line Items]
Amortized Cost	$ 208,497	$ 269,623
Gross Unrealized Gains	29	169
Gross Unrealized Losses	(449)	(384)
Estimated Fair Value	208,077	269,408
U.S. government securities
Marketable Securities [Line Items]
Total Cash equivalents	1,996
U.S. government securities \| Level 1
Marketable Securities [Line Items]
Total Cash equivalents	0
U.S. government securities \| Level 2
Marketable Securities [Line Items]
Total Cash equivalents	1,996
U.S. government securities \| Level 3
Marketable Securities [Line Items]
Total Cash equivalents	0
Money market funds
Marketable Securities [Line Items]
Total Cash equivalents	43,773	29,829
Money market funds \| Level 1
Marketable Securities [Line Items]
Total Cash equivalents	0	0
Money market funds \| Level 2
Marketable Securities [Line Items]
Total Cash equivalents	43,773	29,829
Money market funds \| Level 3
Marketable Securities [Line Items]
Total Cash equivalents	0	0
U.S. government securities
Marketable Securities [Line Items]
Amortized Cost, due within one year	80,831	39,542
Gross Unrealized Gains, due within one year	4	30
Gross Unrealized Losses, due within one year	(176)	(11)
Estimated Fair Value, due within one year	80,659	39,561
Estimated Fair Value	100,298	39,561
U.S. government securities \| Level 1
Marketable Securities [Line Items]
Estimated Fair Value	0	0
U.S. government securities \| Level 2
Marketable Securities [Line Items]
Estimated Fair Value	100,298	39,561
U.S. government securities \| Level 3
Marketable Securities [Line Items]
Estimated Fair Value	0	0
Corporate debt securities
Marketable Securities [Line Items]
Amortized Cost, due within one year		82,934
Amortized Cost, due after one year through five years	19,790	15,060
Gross Unrealized Gains, due within one year		26
Gross Unrealized Gains, due after one year through five years	5	64
Gross Unrealized Losses, due within one year		(123)
Gross Unrealized Losses, due after one year through five years	(156)	(5)
Estimated Fair Value, due within one year		82,837
Estimated Fair Value, due after one year through five years	19,639	15,119
Estimated Fair Value		97,956
Corporate debt securities \| Level 1
Marketable Securities [Line Items]
Estimated Fair Value		0
Corporate debt securities \| Level 2
Marketable Securities [Line Items]
Estimated Fair Value		97,956
Corporate debt securities \| Level 3
Marketable Securities [Line Items]
Estimated Fair Value		0
Commercial paper
Marketable Securities [Line Items]
Amortized Cost, due within one year	28,294	2,500
Gross Unrealized Gains, due within one year	3	0
Gross Unrealized Losses, due within one year	(17)	(1)
Estimated Fair Value, due within one year	28,280	2,499
Estimated Fair Value	28,280	2,499
Commercial paper \| Level 1
Marketable Securities [Line Items]
Estimated Fair Value	0	0
Commercial paper \| Level 2
Marketable Securities [Line Items]
Estimated Fair Value	28,280	2,499
Commercial paper \| Level 3
Marketable Securities [Line Items]
Estimated Fair Value	0	0
Corporate debt securities
Marketable Securities [Line Items]
Amortized Cost, due within one year	72,448	97,889
Amortized Cost, due after one year through five years	7,134	31,698
Gross Unrealized Gains, due within one year	6	15
Gross Unrealized Gains, due after one year through five years	11	34
Gross Unrealized Losses, due within one year	(94)	(93)
Gross Unrealized Losses, due after one year through five years	(6)	(151)
Estimated Fair Value, due within one year	72,360	97,811
Estimated Fair Value, due after one year through five years	7,139	31,581
Estimated Fair Value	79,499	129,392
Corporate debt securities \| Level 1
Marketable Securities [Line Items]
Estimated Fair Value	0	0
Corporate debt securities \| Level 2
Marketable Securities [Line Items]
Estimated Fair Value	79,499	129,392
Corporate debt securities \| Level 3
Marketable Securities [Line Items]
Estimated Fair Value	$ 0	$ 0

Marketable Securities and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Investments, All Other Investments [Abstract]

Schedule of Marketable Securities

The following tables present marketable securities by contractual maturity and security type:


As of March 31, 2024 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Due within one year:
U.S. government securities	$	80,831	$	4	$	(176)	$	80,659

Corporate debt securities	72,448		6		(94)		72,360
Commercial paper	28,294		3		(17)		28,280
Due after one year through five years:
U.S. government securities	19,790		5		(156)		19,639
Corporate debt securities	7,134		11		(6)		7,139
Total	$	208,497	$	29	$	(449)	$	208,077


As of December 31, 2023 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Due within one year:
U.S. government securities	$	97,889	$	15	$	(93)	$	97,811
Corporate debt securities	82,934		26		(123)		82,837
Commercial paper	39,542		30		(11)		39,561
Certificates of deposit	2,500		—		(1)		2,499
Due after one year through five years:
U.S. government securities	31,698		34		(151)		31,581
Corporate debt securities	15,060		64		(5)		15,119
Total	$	269,623	$	169	$	(384)	$	269,408

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

The following tables present information about the Company's financial assets measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values:


As of March 31, 2024 (in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	—	$	43,773	$	—	$	43,773

Commercial paper	—		1,996		—		1,996

Marketable securities:

U.S. government securities	—		100,298		—		100,298
Corporate debt securities	—		79,499		—		79,499
Commercial paper	—		28,280		—		28,280
Total	$	—	$	253,846	$	—	$	253,846


As of December 31, 2023 (in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	—	$	29,829	$	—	$	29,829


Marketable securities:
U.S. government securities	—		129,392		—		129,392
Corporate debt securities	—		97,956		—		97,956
Commercial paper	—		39,561		—		39,561
Certificates of deposit	—		2,499		—		2,499
Total	$	—	$	299,237	$	—	$	299,237

Marketable Securities and Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Investments, All Other Investments [Abstract]

Marketable Securities and Fair Value Measurements

The following tables present marketable securities by contractual maturity and security type:


As of March 31, 2024 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Due within one year:
U.S. government securities	$	80,831	$	4	$	(176)	$	80,659

Corporate debt securities	72,448		6		(94)		72,360
Commercial paper	28,294		3		(17)		28,280
Due after one year through five years:
U.S. government securities	19,790		5		(156)		19,639
Corporate debt securities	7,134		11		(6)		7,139
Total	$	208,497	$	29	$	(449)	$	208,077


As of December 31, 2023 (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Due within one year:
U.S. government securities	$	97,889	$	15	$	(93)	$	97,811
Corporate debt securities	82,934		26		(123)		82,837
Commercial paper	39,542		30		(11)		39,561
Certificates of deposit	2,500		—		(1)		2,499
Due after one year through five years:
U.S. government securities	31,698		34		(151)		31,581
Corporate debt securities	15,060		64		(5)		15,119
Total	$	269,623	$	169	$	(384)	$	269,408


As of March 31, 2024 (in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	—	$	43,773	$	—	$	43,773

Commercial paper	—		1,996		—		1,996

Marketable securities:

U.S. government securities	—		100,298		—		100,298
Corporate debt securities	—		79,499		—		79,499
Commercial paper	—		28,280		—		28,280
Total	$	—	$	253,846	$	—	$	253,846


As of December 31, 2023 (in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	—	$	29,829	$	—	$	29,829


Marketable securities:
U.S. government securities	—		129,392		—		129,392
Corporate debt securities	—		97,956		—		97,956
Commercial paper	—		39,561		—		39,561
Certificates of deposit	—		2,499		—		2,499
Total	$	—	$	299,237	$	—	$	299,237

The tables above exclude certificates of deposit totaling $3.1 million as of both March 31, 2024 and December 31, 2023 that the Company held to secure a letter of credit associated with its leases and to secure a credit card account. The certificates of deposit are measured at carrying value in the consolidated balance sheets in other long-term assets and long-term investments—restricted and approximate fair value. For additional information on the letter of credit associated with the Company's leases, please read Note 7, Leases, to the consolidated financial statements in the Company's Form 10-K for the year ended December 31, 2023.

The fair value of Level 2 instruments classified as cash equivalents and marketable securities were determined through third-party pricing services. The pricing services use many observable market inputs to determine value, including reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates, and other industry and economic events. The Company performs validation procedures to ensure the reasonableness of this data. The Company performs its own review of prices received from the independent pricing services by comparing these prices to other sources. After completing the validation procedures, the Company did not adjust or override any fair value measurements provided by the pricing services as of March 31, 2024 and December 31, 2023

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	During the quarter ended March 31, 2024, Daniel Martin, our Chief Commercial Officer and an executive officer, and Jama Pitman, our Chief Development Officer and an executive officer, each adopted a trading arrangement for the sale of securities of the Company’s common stock (Rule 10b5-1 Trading Plan) that is intended to satisfy the affirmative defense conditions of Securities Exchange Act Rule 10b5-1(c). Mr. Martin’s Rule 10b5-1 Trading Plan was adopted on January 10, 2024 and will continue until December 31, 2024 unless earlier terminated or modified. Under Mr. Martin's Rule 10b5-1 Trading Plan, an aggregate number of 79,308 securities can be sold or purchased during the duration of the Rule 10b5-1 Trading Plan. Ms. Pitman’s Rule 10b5-1 Trading Plan was adopted on February 8, 2024 and will continue until April 30, 2025 unless earlier terminated or modified. Under Ms. Pitman's Rule 10b5-1 Trading Plan, an aggregate number of 106,917 securities can be sold or purchased during the duration of the Rule 10b5-1 Trading Plan. In April 2024, Mr. Martin and Ms. Pitman terminated their Rule 10b5-1 Trading Plans adopted during the quarter ended March 31, 2024.
Daniel Martin [Member]
Trading Arrangements, by Individual
Name	Daniel Martin
Title	Chief Commercial Officer and an executive officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	January 10, 2024
Termination Date	April 2024
Aggregate Available	79,308
Jama Pitman [Member]
Trading Arrangements, by Individual
Name	Jama Pitman
Title	Chief Development Officer and an executive officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	February 8, 2024
Termination Date	April 2024
Aggregate Available	106,917

Stock-Based Awards (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Classification of Stock-Based Compensation Expense

Stock-based compensation expense was classified in the consolidated statements of operations and comprehensive loss as follows:


	Three Months Ended March 31,
(in thousands)		2024		2023
Research and development		$	4,731	$	5,455
Selling, general, and administrative		5,443		7,059
Total stock-based compensation		$	10,174	$	12,514

Stock-Based Awards

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Awards

Equity Plans

The Company grants stock-based awards under its 2017 Stock Option and Incentive Plan (the 2017 Plan) and is authorized to issue common stock under its 2017 Employee Stock Purchase Plan (ESPP). In February 2024 and 2023, the Company granted performance-based restricted stock unit awards under the 2017 Plan. No performance-based restricted stock units vested, no performance-based restricted stock units were forfeited, and no stock-based compensation expense was recognized related to performance-based restricted stock units during the three months ended March 31, 2024 and 2023. The Company also has outstanding stock options under its 2015 Equity Incentive Plan but is no longer granting awards under this plan. As of March 31, 2024, 2,119,578 shares of common stock were available for issuance under the 2017 Plan. As of March 31, 2024, 2,619,550 shares of common stock were available for issuance to participating employees under the ESPP.

In January 2022, the Company adopted an inducement plan (the Inducement Plan) pursuant to which the Company initially reserved 800,000 shares of common stock to be used exclusively for grants of equity-based awards to individuals who were not previously employees or directors of the Company, as an inducement material to the individual’s entry into employment with the Company within the meaning of Rule 5635(c)(4) of the Marketplace Rules of the Nasdaq Stock Market, Inc. In February 2024 and 2023, the Inducement Plan was amended and the number of shares reserved for issuance under the Inducement Plan was increased by 355,600 and 270,000, respectively. As of March 31, 2024, 800,000 shares of common stock were available for issuance under the Inducement Plan.

Stock-based compensation expense was classified in the consolidated statements of operations and comprehensive loss as follows:


	Three Months Ended March 31,
(in thousands)		2024		2023
Research and development		$	4,731	$	5,455
Selling, general, and administrative		5,443		7,059
Total stock-based compensation		$	10,174	$	12,514

As of March 31, 2024, total unrecognized compensation cost related to the unvested share-based awards was $78.1 million, which is expected to be recognized over a weighted average of 2.3 years.

Stock-Based Awards - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Feb. 29, 2024	Feb. 28, 2023	Jan. 01, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to unvested share-based awards	$ 78,100
Unrecognized compensation cost related to unvested share-based awards, period for recognition	2 years 3 months 18 days
Share-based compensation expense	$ 10,174	$ 12,514
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0	$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period	0	0
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period	0	0
2017 Stock Option and Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares)	2,119,578
Employee Stock Purchase Plan (ESPP)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares)	2,619,550
Inducement Plan \| Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance (in shares)	800,000		355,600	270,000	800,000

Revenues - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2019
Revenue from External Customer [Line Items]
Revenues	$ 44,999	$ 33,445
Zai License Agreement \| Development Milestone \| Maximum
Revenue from External Customer [Line Items]
License agreement milestone	38,000
Zai License Agreement \| Development And Commercial Milestone \| Maximum
Revenue from External Customer [Line Items]
License agreement milestone	173,000
Zai License Agreement \| Commercial Milestone \| Maximum
Revenue from External Customer [Line Items]
License agreement milestone	135,000
Product revenues, net
Revenue from External Customer [Line Items]
Revenues	42,550	33,222
Collaboration revenues
Revenue from External Customer [Line Items]
Revenues	2,449	$ 223
Collaboration revenues \| Zai License Agreement \| Upfront Payment
Revenue from External Customer [Line Items]
Revenues			$ 20,000
Collaboration revenues \| Zai License Agreement \| Development Milestone
Revenue from External Customer [Line Items]
Revenues	$ 12,000

Nature of the Business and Summary of Significant Accounting Policies - Summary of Potential Dilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive securities excluded from computation of diluted net loss per common share (in shares)	13,298,723	12,248,435
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive securities excluded from computation of diluted net loss per common share (in shares)	10,091,606	9,256,574
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive securities excluded from computation of diluted net loss per common share (in shares)	3,122,494	2,930,554
Employee stock purchase plan shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potential dilutive securities excluded from computation of diluted net loss per common share (in shares)	84,623	61,307

Inventory (Tables)

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Schedule of Inventory

Capitalized inventory consisted of the following:


(in thousands)	As of March 31, 2024		As of December 31, 2023
Raw materials	$	4,934	$	4,934
Work in process	16,968		18,253
Finished goods	4,130		2,957
Total inventory	$	26,032	$	26,144

Long-term inventory, which consists of raw materials, is included in other long-term assets and long-term investments—restricted in the consolidated balance sheets. As of both March 31, 2024 and December 31, 2023, $4.9 million was classified as non-current.

Inventory written down as a result of excess, obsolescence, unmarketability, or other reasons is charged to cost of sales. During the three months ended March 31, 2024 and 2023, there were no amounts in inventory written down as a result of excess, obsolescence, unmarketability, or other reasons.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments Associated with Commercial Supply Agreements The Company has entered into commercial supply agreements related to the supply of QINLOCK that require the Company to make binding forecasts for a certain amount of purchases. The related cancellation clauses would as a general matter require the Company to pay the full amount of these binding forecasts. As of March 31, 2024, the Company's contractual commitments for its commercial supply agreements were $9.0 million which are expected to be paid within one year. Legal Proceedings The Company is not currently a party to any material legal proceedings. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses the costs related to its legal proceedings as they are incurred. Indemnification Agreements In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors and senior management 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 or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. The Company is not aware of any claims under indemnification arrangements, and it has not accrued any liabilities related to such obligations in its consolidated financial statements as of March 31, 2024 or December 31, 2023.

Inventory (Details) - USD ($)	3 Months Ended
Inventory (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 4,934,000	$ 4,934,000
Work in process	16,968,000	18,253,000
Finished goods	4,130,000	2,957,000
Total inventory	26,032,000	$ 26,144,000
Inventory, Noncurrent	4,900,000
Inventory written down	$ 0

Revenues

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenues

Net Product Revenues

To date, the Company's only source of product revenues has been from the sales of QINLOCK.

Net product revenues by geography consisted of the following and are attributable to individual countries based on the location of the customer:


	Three Months Ended March 31,
(in thousands)		2024		2023
U.S.		$	31,836	$	24,624
Rest of world		10,714		8,598
Total product revenues, net		$	42,550	$	33,222

Activity in each of the product revenue allowance and reserve categories is summarized as follows:


(in thousands)	Trade discounts and allowances		Chargebacks and administrative fees		Government rebates and other incentives		Returns		Total
Balance as of December 31, 2023	$	754	$	880	$	24,866	$	1,095	$	27,595
Provision related to sales in the current year	1,312		3,879		5,682		1,026		11,899
Adjustments related to prior period sales	—		—		—		(164)		(164)
Credits and payments made during the period	(1,097)		(3,654)		(2,787)		(521)		(8,059)
Balance as of March 31, 2024	$	969	$	1,105	$	27,761	$	1,436	$	31,271

The total reserves described above are summarized as components of the Company's consolidated balance sheets as follows:


(in thousands)	As of March 31, 2024		As of December 31, 2023
Reduction of accounts receivable, net	$	1,999	$	1,528
Component of accrued expenses and other current liabilities	29,272		26,067
Total revenue-related reserves	$	31,271	$	27,595

Collaboration Revenues

Zai License Agreement

In June 2019, the Company entered into a license agreement (Zai License Agreement) with Zai Lab (Shanghai) Co., Ltd. (Zai), pursuant to which the Company granted Zai exclusive rights to develop and commercialize the Licensed Products in the Territory. The Company retains exclusive rights to, among other things, develop, manufacture, and commercialize the Licensed Products outside the Territory.

Pursuant to the terms of the Zai License Agreement, as of March 31, 2024 the Company has received an upfront cash payment of $20.0 million and three development milestone payments totaling $12.0 million and will be eligible to receive up to $173.0 million in potential development and commercial milestone payments, consisting of up to $38.0 million of development milestones and up to $135.0 million of commercial milestones. In addition, during the term of the Zai License Agreement, Zai will be obligated to pay the Company tiered percentage royalties ranging from low to high teens on annual net sales of the Licensed Products in the Territory, subject to adjustments in specified circumstances. Additionally, certain costs incurred by the Company associated with the Zai License Agreement are reimbursed by Zai.

During the three months ended March 31, 2024 and 2023, the Company recognized royalty revenues under the Zai License Agreement, which the Company began recognizing in the second quarter of 2021 following the approval from the China National Medical Products Administration (China NMPA).

Please read Note 3, Revenues, to the consolidated financial statements in the Company's Form 10-K for the year ended December 31, 2023 for further details on the Zai License Agreement.

Zai Supply Agreement

In February 2020, the Company entered into a Supply Agreement (the Zai Supply Agreement) with Zai, as required by terms in the Zai License Agreement, pursuant to which the Company will supply the Licensed Products to Zai for use in the Territory for clinical trials as well as commercial inventory, if QINLOCK obtained regulatory approval in the Territory. QINLOCK was approved in the People's Republic of China (the PRC), Hong Kong, and Taiwan in 2021, and Macau and Singapore in 2023. Subject to the Zai Supply Agreement, costs incurred by the Company for clinical and commercial supply are reimbursed by Zai.

During the second quarter of 2021, following the approvals of QINLOCK in the PRC and Hong Kong in March 2021, the Company began recognizing revenues associated with sales of commercial inventory of QINLOCK under the Zai Supply Agreement.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
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-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (a)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Organization, Consolidation and Presentation of Financial Statements

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other Consolidated Financial Statement Detail

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:


(in thousands)	As of March 31, 2024		As of December 31, 2023
Prepaid external research and development expenses	$	12,767	$	12,729
Prepaid selling, general, and administrative expenses	8,062		5,811
Short-term interest receivable	1,413		1,772
Other current assets	1,386		1,406
Total prepaid expenses and other current assets	$	23,628	$	21,718

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


(in thousands)	As of March 31, 2024		As of December 31, 2023
Revenue-related reserves	$	29,272	$	26,067
External research and development expenses	16,236		16,095
Payroll and related expenses	7,918		20,519
Professional fees	6,013		5,669
Other	957		1,945
Total accrued expenses and other current liabilities	$	60,396	$	70,295

Interest Income

For the three months ended March 31, 2024 and 2023, interest income was $3.6 million and $3.9 million, respectively.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Cash flows from operating activities:
Net loss	$ (45,083)	$ (49,609)	$ (194,900)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Stock-based compensation expense	10,174	12,514
Depreciation expense	450	608
Noncash lease expense	1,147	1,102
Net (accretion) amortization of (discounts) premium on marketable securities	(1,653)	(1,566)
Changes in operating assets and liabilities:
Accounts receivable	(878)	77
Inventory	(918)	(1,258)
Prepaid expenses and other current assets	(1,967)	(4,061)
Other long-term assets	(140)	0
Accounts payable	(6,944)	993
Accrued expenses and other current liabilities	(8,196)	(7,464)
Operating lease liabilities	(857)	(791)
Net cash flows used in operating activities	(54,585)	(49,455)
Cash flows from investing activities:
Purchases of marketable securities	(20,264)	(122,860)
Maturities of marketable securities	83,041	87,021
Sales of marketable securities	0	785
Purchases of property and equipment	(146)	(360)
Net cash flows provided by (used in) investing activities	62,631	(35,414)
Cash flows from financing activities:
Proceeds from offerings of common stock, net of underwriting discounts and commissions	0	135,125
Proceeds from Warrant Exercises	9	24
Payments of Stock Issuance Costs	0	(634)
Proceeds from stock option exercises and employee stock purchase plan	513	171
Net cash flows provided by financing activities	522	134,686
Net (decrease) increase in cash and cash equivalents	8,568	49,817
Effect of exchange rate changes on cash and cash equivalents	(847)	79
Cash and cash equivalents at beginning of period	83,507	64,741	64,741
Cash and cash equivalents at end of period	$ 91,228	$ 114,637	$ 83,507

Revenues - Net Product Revenues by Geography (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Product Revenues, Net [Line Items]
Total revenues	$ 44,999	$ 33,445
Product revenues, net
Disaggregation of Product Revenues, Net [Line Items]
Total revenues	42,550	33,222
Product revenues, net \| U.S.
Disaggregation of Product Revenues, Net [Line Items]
Total revenues	31,836	24,624
Product revenues, net \| Rest of world
Disaggregation of Product Revenues, Net [Line Items]
Total revenues	$ 10,714	$ 8,598

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 30
-Subparagraph (a)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
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-Paragraph 32
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 40
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Revenues - Product Revenue Allowance and Reserve Categories (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	$ 27,595
Provision related to sales in the current year	11,899
Adjustments related to prior period sales	(164)
Credits and payments made during the period	(8,059)
Ending balance	31,271
Trade discounts and allowances
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	754
Provision related to sales in the current year	1,312
Adjustments related to prior period sales	0
Credits and payments made during the period	(1,097)
Ending balance	969
Chargebacks and administrative fees
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	880
Provision related to sales in the current year	3,879
Adjustments related to prior period sales	0
Credits and payments made during the period	(3,654)
Ending balance	1,105
Government rebates and other incentives
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	24,866
Provision related to sales in the current year	5,682
Adjustments related to prior period sales	0
Credits and payments made during the period	(2,787)
Ending balance	27,761
Returns
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	1,095
Provision related to sales in the current year	1,026
Adjustments related to prior period sales	(164)
Credits and payments made during the period	(521)
Ending balance	$ 1,436

Other Consolidated Financial Statement Detail - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Investment Income, Interest	$ 3.6	$ 3.9

Commitments and Contingencies - Additional Information (Details) $ in Millions	Mar. 31, 2024 USD ($)
Supply Commitment
Other Commitments [Line Items]
Supply commitment amount	$ 9.0

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Warrant
Beginning balance (in shares) at Dec. 31, 2022		67,637,351
Beginning balance at Dec. 31, 2022	$ 341,691	$ 676	$ 1,575,361	$ (983)	$ (1,233,363)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued during period, shares, new issues (in shares)		7,986,111				2,427,693
Stock issued during period, value, new issues	134,491	$ 80	134,411			$ 24
Issuance of common stock under stock option and incentive and employee stock purchase plans (in shares)		456,597
Issuance of common stock under stock option and incentive plans	171	$ 5	166
Stock-based compensation expense	12,514		12,514
Other comprehensive income (loss)	802			802
Net loss	(49,609)				(49,609)
Ending balance (in shares) at Mar. 31, 2023		78,507,752
Ending balance at Mar. 31, 2023	440,084	$ 785	1,722,452	(181)	(1,282,972)
Beginning balance (in shares) at Dec. 31, 2022		67,637,351
Beginning balance at Dec. 31, 2022	341,691	$ 676	1,575,361	(983)	(1,233,363)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(194,900)
Ending balance (in shares) at Dec. 31, 2023		80,503,338
Ending balance at Dec. 31, 2023	350,916	$ 805	1,777,839	577	(1,428,305)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued during period, shares, new issues (in shares)						914,001
Stock issued during period, value, new issues						$ 9
Issuance of common stock under stock option and incentive and employee stock purchase plans (in shares)		741,331
Issuance of common stock under stock option and incentive plans	513	$ 7	506
Stock-based compensation expense	10,174		10,174
Other comprehensive income (loss)	(479)			(479)
Net loss	(45,083)				(45,083)
Ending balance (in shares) at Mar. 31, 2024		82,158,670
Ending balance at Mar. 31, 2024	$ 316,050	$ 821	$ 1,788,519	$ 98	$ (1,473,388)

Marketable Securities and Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Marketable securities:
Total Marketable Securities	$ 208,077	$ 269,408
Total	253,846	299,237
Corporate debt securities
Marketable securities:
Total Marketable Securities	79,499	129,392
U.S. government securities
Marketable securities:
Total Marketable Securities	100,298	39,561
Corporate debt securities
Marketable securities:
Total Marketable Securities		97,956
Commercial paper
Marketable securities:
Total Marketable Securities	28,280	2,499
Money market funds
Cash equivalents:
Total Cash equivalents	43,773	29,829
U.S. government securities
Cash equivalents:
Total Cash equivalents	1,996
Level 1
Marketable securities:
Total	0	0
Level 1 \| Corporate debt securities
Marketable securities:
Total Marketable Securities	0	0
Level 1 \| U.S. government securities
Marketable securities:
Total Marketable Securities	0	0
Level 1 \| Corporate debt securities
Marketable securities:
Total Marketable Securities		0
Level 1 \| Commercial paper
Marketable securities:
Total Marketable Securities	0	0
Level 1 \| Money market funds
Cash equivalents:
Total Cash equivalents	0	0
Level 1 \| U.S. government securities
Cash equivalents:
Total Cash equivalents	0
Level 2
Marketable securities:
Total	253,846	299,237
Level 2 \| Corporate debt securities
Marketable securities:
Total Marketable Securities	79,499	129,392
Level 2 \| U.S. government securities
Marketable securities:
Total Marketable Securities	100,298	39,561
Level 2 \| Corporate debt securities
Marketable securities:
Total Marketable Securities		97,956
Level 2 \| Commercial paper
Marketable securities:
Total Marketable Securities	28,280	2,499
Level 2 \| Money market funds
Cash equivalents:
Total Cash equivalents	43,773	29,829
Level 2 \| U.S. government securities
Cash equivalents:
Total Cash equivalents	1,996
Level 3
Marketable securities:
Total	0	0
Level 3 \| Corporate debt securities
Marketable securities:
Total Marketable Securities	0	0
Level 3 \| U.S. government securities
Marketable securities:
Total Marketable Securities	0	0
Level 3 \| Corporate debt securities
Marketable securities:
Total Marketable Securities		0
Level 3 \| Commercial paper
Marketable securities:
Total Marketable Securities	0	0
Level 3 \| Money market funds
Cash equivalents:
Total Cash equivalents	0	$ 0
Level 3 \| U.S. government securities
Cash equivalents:
Total Cash equivalents	$ 0

Nature of the Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets, and the satisfaction of liabilities and commitments in the ordinary course of business. Since inception, the Company has incurred recurring losses, including net losses of $45.1 million and $194.9 million for the three months ended March 31, 2024 and the year ended December 31, 2023, respectively. As of March 31, 2024, the Company had an accumulated deficit of $1.5 billion. The Company expects to continue to generate operating losses for the foreseeable future. The Company expects that its cash, cash equivalents, and marketable securities of $299.3 million as of March 31, 2024, together with anticipated product, royalty, and supply revenues, but excluding any potential future milestones received under its collaboration or license agreements will be sufficient to fund its operating expenses and capital expenditure requirements through at least 12 months from the issuance date of these consolidated financial statements. If the pending transaction (see Merger Agreement defined within Note 8, Subsequent Events) with Ono Pharmaceutical Co., Ltd., a Japanese company (kabushiki kaisha) (Parent or Ono), does not close, the future viability of the Company will be dependent on its ability to raise additional capital to fund its operations and the Company will need to obtain substantial additional funding in connection with continuing operations. If the Company is unable to raise capital when needed, or on attractive terms, it could be forced to delay, reduce, or further terminate its research or drug development programs or certain commercialization efforts. Although management continues to pursue these plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continuing operations, if at all. These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.
Unaudited Interim Financial Information	Unaudited Interim Financial Information These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (GAAP). The consolidated balance sheet as of December 31, 2023 was derived from audited financial statements, but does not include all disclosures required by GAAP. The accompanying unaudited consolidated financial statements as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the Company's audited financial statements and the notes thereto for the year ended December 31, 2023 included in the Company's Form 10-K on file with the SEC. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company's consolidated financial position as of March 31, 2024, consolidated results of operations and comprehensive loss for the three months ended March 31, 2024 and 2023, and consolidated cash flows for the three months ended March 31, 2024 and 2023, have been made. The consolidated results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2024.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, product revenue reserves, the accrual for research and development expenses, and the valuation of stock-based option awards. Estimates are periodically reviewed in light of changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.
Net Loss per Share	Net Loss per Share Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding, including pre-funded warrants, for the period. Diluted net income (loss) per share is computed by dividing the diluted net income (loss) by the weighted average number of common shares and potential dilutive common shares assuming the dilutive effect as determined using the treasury stock method. For periods in which the Company has reported net losses, diluted net loss per common share is the same as basic net loss per common share, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. The Company reported a net loss for the three months ended March 31, 2024 and 2023.

Inventory

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Inventory

Capitalized inventory consisted of the following:


(in thousands)	As of March 31, 2024		As of December 31, 2023
Raw materials	$	4,934	$	4,934
Work in process	16,968		18,253
Finished goods	4,130		2,957
Total inventory	$	26,032	$	26,144

Nature of the Business and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended		12 Months Ended
	May 03, 2023	Apr. 29, 2022	Jan. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Jan. 24, 2023	Apr. 26, 2022
Nature Of Business And Basis Of Presentation [Line Items]
Stock issued during period, value, new issues		$ 163,400	$ 134,500		$ 134,491
Net loss				$ (45,083)	(49,609)	$ (194,900)
Accumulated deficit				(1,473,388)		$ (1,428,305)
Investments and cash				299,300
Proceeds from Warrant Exercises				$ 9	$ 24
Class of Warrant or Right, Outstanding				5,514,269
Common Stock
Nature Of Business And Basis Of Presentation [Line Items]
Number of shares issued and sold (in shares)		7,501,239	7,986,111		7,986,111
Offering price of common stock and warrants issued (in dollars per share)							$ 18.00	$ 10.00
Stock issued during period, value, new issues					$ 80
Warrant
Nature Of Business And Basis Of Presentation [Line Items]
Number of shares issued and sold (in shares)		9,748,761		914,001	2,427,693
Offering price of common stock and warrants issued (in dollars per share)								9.99
Exercise price of warrants issued								$ 0.01
Stock issued during period, value, new issues				$ 9	$ 24
Proceeds from Warrant Exercises				100	$ 100
Open Market Sale Agreement
Nature Of Business And Basis Of Presentation [Line Items]
Offering proceeds	$ 200,000
Remaining Authorized Amount for Future Issuance as Per the Sales Agreement				$ 185,000
Open Market Sale Agreement \| Common Stock
Nature Of Business And Basis Of Presentation [Line Items]
Number of shares issued and sold (in shares)				0

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2024	May 06, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-38219
Entity Registrant Name	DECIPHERA PHARMACEUTICALS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	30-1003521
Entity Address, Address Line One	200 Smith Street
Entity Address, City or Town	Waltham
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02451
City Area Code	781
Local Phone Number	209-6400
Title of 12(b) Security	Common Stock, $0.01 Par Value Per Share
Trading Symbol	DCPH
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		86,475,972
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001654151
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer

Other Consolidated Financial Statement Detail - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule of Accrued Expenses and Other Current Liabilities
Revenue-related reserves	$ 31,271	$ 27,595
External research and development expenses	16,236	16,095
Payroll and related expenses	7,918	20,519
Professional fees	6,013	5,669
Other	957	1,945
Total accrued expenses and other current liabilities	60,396	70,295
Accrued Expenses And Other Current Liabilities
Schedule of Accrued Expenses and Other Current Liabilities
Revenue-related reserves	$ 29,272	$ 26,067

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 91,228	$ 83,507
Short-term marketable securities	181,299	222,709
Accounts receivable, net	32,684	31,952
Inventory	21,098	21,210
Prepaid expenses and other current assets	23,628	21,718
Total current assets	349,937	381,096
Long-term marketable securities	26,778	46,699
Other long-term assets and long-term investments—restricted	8,133	8,277
Property and equipment, net	5,155	5,421
Operating lease assets	30,925	32,073
Total assets	420,928	473,566
Current liabilities:
Accounts payable	19,459	26,476
Accrued expenses and other current liabilities	60,396	70,295
Operating lease liabilities	3,574	3,504
Total current liabilities	83,429	100,275
Operating lease liabilities, net of current portion	21,449	22,375
Total liabilities	104,878	122,650
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock, $0.01 par value per share; 5,000,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.01 par value per share; 125,000,000 shares authorized; 82,158,670 shares and 80,503,338 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	821	805
Additional paid-in capital	1,788,519	1,777,839
Accumulated other comprehensive income (loss)	98	577
Accumulated deficit	(1,473,388)	(1,428,305)
Total stockholders' equity	316,050	350,916
Total liabilities and stockholders' equity	$ 420,928	$ 473,566