Accrued Restructuring |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accrued Restructuring |
4. Accrued Restructuring In December 2019, the Company commenced a reorganization plan to reduce its operating costs and better align its workforce with the needs of its business following the Company’s November 25, 2019 announcement that it had halted clinical development of seladelpar. As of March 31, 2020, and December 31, 2019, the restructuring liability is included in current liabilities on the condensed consolidated balance sheet. The Company incurred $0.1 million of restructuring charges for the three months ended March 31, 2020. Restructuring charges incurred to date under this plan primarily consisted of employee termination benefits and contract termination costs primarily associated with nonrefundable prepayments and exit fees relating to third-party manufacturers that the Company contracted with for clinical supplies. Employee termination benefits include severance costs, employee-related benefits, supplemental one-time
termination payments, and non-cash share-based compensation expense related to the acceleration of stock options. Charges and other costs related to the workforce reduction and structure realignment are presented as restructuring charges in the consolidated statements of operations and comprehensive loss. Substantially all cash payments are expected to be paid out by the end of 2020. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the restructuring.The following table summarizes the accrued restructuring liabilities and utilization by cost type associated with the restructuring activities during the three months ended March 31, 2020 (in thousands):
The Company also recognized in restructuring charges $48,000 pertaining to nonrefundable prepaid research and development costs for clinical trial materials no longer expected be delivered. |
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