0001193125-21-151732 | 10-Q | XBRL Viewer | Global Blood Therapeutics INC

Net Loss per Share (Tables)

3 Months Ended

Mar. 31, 2021

Potentially Dilutive Securities that were Not Included in Diluted Net Loss per Share Calculations

The following securities were not included in the diluted net loss per share calculations because their effect was anti-dilutive:


	Three Months Ended March 31,
	2021		2020
Options to purchase common stock		3,814,842		4,133,721
Restricted stock units		3,517,827		2,691,159

Total		7,332,669		6,824,880

Stock-Based Compensation - Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 19,948	$ 16,367
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	4,879	5,350
Selling, general and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 15,069	$ 11,017

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Summary of supplemental information related to leases

Supplemental information related to leases for the period reported is as follows (in thousands, except weighted-average remaining lease term and weighted-average discount rate):


	Three Months Ended March 31,
	2021			2020
Cash paid for amounts included in the measurement of lease liabilities		2,904			1,153
Weighted-average remaining lease term of operating leases (in years)		9.0			10
Weighted-average discount rate of operating leases		8.66	%		8.66	%

Schedule of Lessee, Operating Lease, Liability, Maturity

As of March 31, 2021, the maturities of our operating lease liabilities were as follows (in thousands):


Year ending December 31,	Amount
2021 (nine months)		8,937
2022		12,222
2023		12,584
2024		12,948
2025		13,368
Thereafter		60,507

Total lease payments		120,566
Less: Imputed interest		(37,667	)

Present value of operating lease liabilities	$	82,899

Commitments and Contingencies - Lessee Operating Lease Liability Maturity (Detail) $ in Thousands	Mar. 31, 2021 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2021 (nine months)	$ 8,937
2022	12,222
2023	12,584
2024	12,948
2025	13,368
Thereafter	60,507
Total lease payments	120,566
Less: Imputed interest	(37,667)
Present value of operating lease liabilities	$ 82,899

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis

The following table summarizes our financial assets measured at fair value on a recurring basis (in thousands):


	March 31, 2021
	Total		Level 1		Level 2		Level 3
Financial Assets:
Money market funds	$	389,448	$	389,448	$	—	$	—
Corporate debt securities		19,639		—		19,639		—
U.S. government agency securities		6,802		—		6,802		—
Certificates of deposits		241		—		241		—
U.S. government securities		10,054		—		10,054		—

Total financial assets	$	426,184	$	389,448	$	36,736	$	—


	December 31, 2020
	Total		Level 1		Level 2		Level 3
Financial Assets:
Money market funds	$	486,174	$	486,174	$	—	$	—
Corporate debt securities		29,804		—		29,804		—
U.S. government agency securities		15,943		—		15,943		—
Certificates of deposits		243		—		243		—
U.S. government securities		20,136		—		20,136		—

Total financial assets	$	552,300	$	486,174	$	66,126	$	—

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended		3 Months Ended
	Aug. 31, 2018 USD ($) ft²	Mar. 31, 2017 ft²	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)
Commitment And Contingencies [Line Items]
Facility size \| ft²	164,150	67,185
Initial term		10 years
Future minimum rental payments under the Lease term	$ 121,500,000
Operating lease term	10 years
Operating lease term, optional extension	10 years
Repayment of tenant inducement allowance	$ 4,100,000
Contingency losses			$ 0
Provisions for loss contingency			0
Operating Lease Cost			3,200,000	$ 3,100,000
variable lease cost			700,000	700,000
Acceleration of depreciation expenses			$ 0
Maximum [Member]
Commitment And Contingencies [Line Items]
Operating lease remaining lease term			10 years
Minimum [Member]
Commitment And Contingencies [Line Items]
Operating lease remaining lease term			1 year
Leasehold Improvements [Member]
Commitment And Contingencies [Line Items]
Property palnt and equipment additions			$ 32,300,000
Depreciation expense				$ 1,900,000
Lease Agreements [Member] \| Maximum [Member]
Commitment And Contingencies [Line Items]
Tenant inducement	$ 27,900,000

Stock-Based Compensation

3 Months Ended

Mar. 31, 2021

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

8. Stock-Based Compensation

We have three stock-based compensation plans – the Amended and Restated 2017 Inducement Equity Plan, or 2017 Inducement Plan, the Amended and Restated 2015 Stock Option and Incentive Plan, or 2015 Plan, and the 2012 Stock Option and Grant Plan, or 2012 Plan. As of March 31, 2021, there were 2,114,286 shares reserved under the 2017 Inducement Plan and 4,809,892 shares

reserved under the 2015 Plan for the future issuance of equity awards. Upon adoption of the 2015 Plan in July 2015, no new awards or grants are permitted under the 2012 Plan. See Note 10 to the Consolidated Financial Statements included in our Annual Report on Form

10-K

for the year ended December 31, 2020, for additional information related to these stock-based compensation plans.

Stock Options

The following summarizes option activity under the 2017 Inducement Plan, 2015 Plan and 2012 Plan:


	Number of Options			Weighted- Average Exercise Price
Outstanding — December 31, 2020		3,327,330		$	42.07
Options granted		576,768			44.48
Options exercised		(47,763	)		23.24
Options canceled		(41,493	)		57.37

Outstanding — March 31, 2021		3,814,842		$	42.51

The fair values of stock options granted to employees were calculated using the following assumptions:


	Three Months Ended March 31,
	2021	2020
Expected term (in years)	5.8-6.1	6.1
Volatility	72.6%-72.7%	69.6%-69.9%
Risk-free interest rate	0.9%-1.0%	1.4%-1.8%
Dividend yield	—	—

Restricted Stock Units

The following table summarizes activity of restricted stock units, or RSUs, granted to employees with service-based vesting under the 2017 Inducement Plan and 2015 Plan and related information:


	Number of RSUs			Weighted- Average Grant Date Fair Value
Non-vested units — December 31, 2020		2,210,356		$	57.80
RSUs granted		1,255,399			44.87
RSUs vested		(267,629	)		54.41
RSUs forfeited		(94,999	)		56.87

Non-vested units — March 31, 2021		3,103,127		$	52.89

Market-Condition Awards Granted to Employees

2020 Market-Condition RSU Awards

The Compensation Committee of our Board of Directors granted, effective June 1, 2020, awards of up to an aggregate of 414,700 RSUs to certain of our senior management, including our executive officers, under the 2015 Plan, the vesting of which is contingent upon the achievement of three escalating stock price targets, which we refer to as the 2020 Market-Condition RSU Awards. Upon the achievement of the respective stock price targets, 50% of the RSUs allotted to that tranche will vest, while the remaining 50% will vest on the first anniversary of the date the stock price target was achieved, subject to the employee’s continued employment or other service relationship with us through such vesting date. Under the terms of the awards, if the stock price targets are not achieved for all or some of the tranches on or before June 30, 2024, the unvested awards will be automatically terminated and forfeited. The compensation cost for the RSUs with a market condition is not reversed when the market condition is not satisfied. The target prices and vesting tranches are set forth in the table below:


Stock Price Targets	Number of Units Allotted
$109.20		82,940
$145.60		145,145
$182.00		186,615

The grant date fair value of the 2020 Market-Condition RSU Awards was estimated using a Monte Carlo simulation model, which includes variables such as the expected volatility of the Company’s share price and interest rates to generate potential future outcomes. We recognize the related compensation expense on a straight-line basis over the applicable derived service periods, which are the estimated periods of time that would be required to satisfy the market conditions.

For the three months ended March 31, 2021, no 2020 Market-Condition RSU Awards were granted, vested, or forfeited. The number of units outstanding was 414,700 and 414,700 as of March 31, 2021 and December 31, 2020, respectively. The weighted average grant date fair value was $49.95 and $49.95 was of March 31, 2021 and December 31, 2020, respectively. The aggregate intrinsic value for the outstanding 2020 Market-Condition RSU Awards was $16.9 million as of March 31, 2021.

At March 31, 2021, total unrecognized compensation expense related to

non-vested

2020 Market-Condition RSU Awards was $

9.9

million, which is expected to be recognized over their respective remaining derived service periods. The weighted average derived service period is

0.96

years. For the three months ended March 31, 2021, we recognized $

3.1

million in stock-based compensation expense related to the 2020 Market-Condition RSU Awards.

Stock-Based Compensation Expense

Total stock-based compensation recognized by function included in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Research and development	$	4,879	$	5,350
Selling, general and administrative		15,069		11,017

Total stock-based compensation expense	$	19,948	$	16,367

Balance Sheet Components - Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Balance Sheet Components [Abstract]
Raw materials	$ 10,632	$ 11,273
Work-in-process	28,656	26,994
Finished goods	2,979	1,956
Total inventories	$ 42,267	$ 40,223

Balance Sheet Components

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

5. Balance Sheet Components

Inventories

Inventories consist of the following (in thousands):


	March 31, 2021		December 31, 2020
Raw materials	$	10,632	$	11,273
Work-in-process		28,656		26,994
Finished goods		2,979		1,956

Total inventories	$	42,267	$	40,223

For the quarter ended March 31, 2021, we have capitalized $430,000

of share-based compensation expense and

$45,000

of depreciation expenses to our inventories. For the quarter ended March 31, 2020, we have capitalized $337,000 of share-based compensation expense and $96,000 of depreciation expenses to our inventories. See Note 8—Share-based Compensation for details on share-based compensation expenses recognized during the quarter ended March 31, 2021.

Property and Equipment

Property and equipment consists of the following (in thousands):


	March 31, 2021			December 31, 2020
Laboratory equipment	$	12,264		$	11,922
Computer equipment		3,024			3,023
Leasehold improvements		32,281			32,281
Construction-in-progress		1,788			517

Total property and equipment		49,357			47,743
Less: accumulated depreciation and amortization		(11,307	)		(9,861	)

Property and equipment, net	$	38,050		$	37,882

Accrued liabilities

Accrued liabilities consist of the following (in thousands):


	March 31, 2021		December 31, 2020
Accrued research and development costs	$	8,121	$	10,677
Accrued manufacturing costs		7,631		9,125
Accrued professional and consulting services		5,199		4,107
Accrued sales deductions		7,010		6,405
Other		884		819

Total accrued liabilities	$	28,845	$	31,133

Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Balance Sheet Components [Abstract]
Share based compensation expense capitalized	$ 430,000	$ 337,000
Capitalized depreciation expenses	$ 45,000	$ 96,000

Long-term Debt-Schedule of Future payments of principal and interest on the Term Loan (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract]
2021 (nine months)	$ 10,125
2022	13,500
2023	62,813
2024	58,313
2025	53,812
Total minimum payments	198,563
Less amount representing interest	(45,563)
Less amount representing Paydown Fee	(3,000)
Long-term debt, gross	150,000
Discount on notes payable	(1,539)
Accretion of Paydown Fee	591
Long-term debt	$ 149,052	$ 148,815

Available-for-Sale Securities - Summary of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Available for sale securities, Amortized Cost	$ 426,063	$ 551,998
Available for sale securities, Unrealized Gains	121	302
Available for sale securities, Estimated Fair Value	426,184	552,300
Corporate Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available for sale securities, Amortized Cost	19,563	29,641
Available for sale securities, Unrealized Gains	76	163
Available for sale securities, Estimated Fair Value	19,639	29,804
U.S. Government Agency Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available for sale securities, Amortized Cost	6,800	15,906
Available for sale securities, Unrealized Gains	2	37
Available for sale securities, Estimated Fair Value	6,802	15,943
Money Market Funds [Member]
Debt Securities, Available-for-sale [Line Items]
Available for sale securities, Amortized Cost	389,448	486,174
Available for sale securities, Estimated Fair Value	389,448	486,174
Certificates of Deposits [Member]
Debt Securities, Available-for-sale [Line Items]
Available for sale securities, Amortized Cost	240	241
Available for sale securities, Unrealized Gains	1	2
Available for sale securities, Estimated Fair Value	241	243
U.S. Government Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available for sale securities, Amortized Cost	10,012	20,036
Available for sale securities, Unrealized Gains	42	100
Available for sale securities, Estimated Fair Value	$ 10,054	$ 20,136

Available-for-Sale Securities

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Available-for-Sale Securities

Available-for-Sale

Securities

Estimated fair values of

available-for-sale

securities are generally based on prices obtained from commercial pricing services. The following table is a summary of

available-for-sale

securities recorded in cash and cash equivalents, restricted cash, or marketable securities in our condensed consolidated balance sheets (in thousands):


	March 31, 2021								December 31, 2020
	Amortized Cost		Unrealized Gains		Unrealized (Losses)		Estimated Fair Value		Amortized Cost		Unrealized Gains		Unrealized (Losses)		Estimated Fair Value
Financial Assets:
Money market funds	$	389,448	$	—	$	—	$	389,448	$	486,174	$	—	$	—	$	486,174
Corporate debt securities		19,563		76		—		19,639		29,641		163		—		29,804
U.S. government agency securities		6,800		2		—		6,802		15,906		37		—		15,943
Certificates of deposits		240		1		—		241		241		2		—		243
U.S. government securities		10,012		42		—		10,054		20,036		100		—		20,136

Total	$	426,063	$	121	$	—	$	426,184	$	551,998	$	302	$	—	$	552,300

The following table summarizes the classification of the

available-for-sale

securities on our condensed consolidated balance sheets (in thousands):


	March 31, 2021		December 31, 2020
Cash and cash equivalents	$	389,448	$	486,174
Short-term marketable securities		36,736		66,126

Total	$	426,184	$	552,300

We do not intend to sell the investments that are in an unrealized loss position, and it is unlikely that we will be required to sell the investments before recovery of their amortized cost basis, which may be maturity.

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2021

Stock Option Activity

The following summarizes option activity under the 2017 Inducement Plan, 2015 Plan and 2012 Plan:


	Number of Options			Weighted- Average Exercise Price
Outstanding — December 31, 2020		3,327,330		$	42.07
Options granted		576,768			44.48
Options exercised		(47,763	)		23.24
Options canceled		(41,493	)		57.37

Outstanding — March 31, 2021		3,814,842		$	42.51

Valuation Assumptions for Stock Awards

The fair values of stock options granted to employees were calculated using the following assumptions:


	Three Months Ended March 31,
	2021	2020
Expected term (in years)	5.8-6.1	6.1
Volatility	72.6%-72.7%	69.6%-69.9%
Risk-free interest rate	0.9%-1.0%	1.4%-1.8%
Dividend yield	—	—

Stock-based Compensation Expense Recognized

Total stock-based compensation recognized by function included in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Research and development	$	4,879	$	5,350
Selling, general and administrative		15,069		11,017

Total stock-based compensation expense	$	19,948	$	16,367

Summary of Share-based Compensation Arrangements by Share-based Payment Award

The target prices and vesting tranches are set forth in the table below:


Stock Price Targets	Number of Units Allotted
$109.20		82,940
$145.60		145,145
$182.00		186,615

Restricted Stock Units [Member]

Non-Vested Restricted Stock Activity

The following table summarizes activity of restricted stock units, or RSUs, granted to employees with service-based vesting under the 2017 Inducement Plan and 2015 Plan and related information:


	Number of RSUs			Weighted- Average Grant Date Fair Value
Non-vested units — December 31, 2020		2,210,356		$	57.80
RSUs granted		1,255,399			44.87
RSUs vested		(267,629	)		54.41
RSUs forfeited		(94,999	)		56.87

Non-vested units — March 31, 2021		3,103,127		$	52.89

Stock-Based Compensation - Plan Summary - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Jun. 01, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average derived service period		11 months 15 days
Stock-based compensation		$ 19,948	$ 16,367
Market Condition Awards Granted to Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		9,900
Stock-based compensation		$ 3,100
2017 Inducement Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance		2,114,286
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance		4,809,892
2015 Plan [Member] \| Market Condition Awards Granted to Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares granted in period		0
Number of shares Non-vested period		414,700		414,700
Weighted-Average Grant Date Fair Value		$ 49.95		$ 49.95
Non-vested units, Aggregate Intrinsic Value		$ 16,900
Number of Units granted		0
Number of Units vested		0
Number of shares forfeited		0
2015 Plan [Member] \| 2020 Market-Condition RSU Awards [Member] \| Senior Management [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares granted in period	414,700
Number of Units granted	414,700

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 445,310	$ 494,766
Short-term marketable securities	36,736	66,126
Accounts receivable, net	18,265	17,500
Inventories	42,267	40,223
Prepaid expenses and other current assets	15,554	13,548
Total current assets	558,132	632,163
Property and equipment, net	38,050	37,882
Operating lease right-of-use assets	50,085	50,722
Restricted cash	2,420	2,436
Other assets, noncurrent	1,211	799
Total assets	649,898	724,002
Current liabilities:
Accounts payable	10,376	19,078
Accrued liabilities	28,845	31,133
Accrued compensation	14,709	23,985
Operating lease liabilities, current	5,037	4,836
Total current liabilities	58,967	79,032
Long-term debt	149,052	148,815
Operating lease liabilities, noncurrent	77,862	79,176
Other liabilities, noncurrent	822	822
Total liabilities	286,703	307,845
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized as of March 31, 2021 (unaudited) and December 31, 2020; no shares issued and outstanding
Common stock, $0.001 par value, 150,000,000 shares authorized as of March 31, 2021 (unaudited) and December 31, 2020, respectively; 62,240,050 and 61,898,090 shares issued and outstanding as of March 31, 2021 (unaudited) and December 31, 2020, respectively	62	62
Additional paid-in capital	1,424,411	1,402,262
Accumulated other comprehensive income	121	302
Accumulated deficit	(1,061,399)	(986,469)
Total stockholders' equity	363,195	416,157
Total liabilities and stockholders' equity	$ 649,898	$ 724,002

Stock-Based Compensation - Stock Option Activity (Detail)	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance, outstanding, Number of Options \| shares	3,327,330
Options granted, Number of Options \| shares	576,768
Options exercised, Number of Options \| shares	(47,763)
Options canceled, Number of Options \| shares	(41,493)
Ending balance, outstanding, Number of Options \| shares	3,814,842
Weighted- Average Exercise Price
Beginning balance, Outstanding, Weighted-Average Exercise Price \| $ / shares	$ 42.07
Options granted, Weighted-Average Exercise Price \| $ / shares	44.48
Options exercised, Weighted-Average Exercise Price \| $ / shares	23.24
Options canceled, Weighted-Average Exercise Price \| $ / shares	57.37
Ending balance, Outstanding, Weighted-Average Exercise Price \| $ / shares	$ 42.51

Long-term Debt - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Nov. 30, 2020	Dec. 31, 2019	Dec. 17, 2019
Long term debt	$ 149,052		$ 148,815
Debt issuance costs paid	$ 26	$ 85
Unamortized dedt discount				$ 200
Term Loan
Debt additional borrowing capacity				75,000
Debt Instrument, Term	72 months
Debt Instrument, Basis Spread on Variable Rate	7.00%
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate	2.00%
Debt Instrument Additional Interest Rate On Debt Default	3.00%
Debt Instrument Periodic Payment Of Interest	Interest on amounts outstanding are payable quarterly in arrears
Debt Instrument Periodic Payment Of Interest Term	39 months
Debt additional paydown fee	2.00%
Debt issuance costs paid	$ 1,100
Other debt issuance cost paid	500
Unamortized issuance costs and debt discounts	1,500
Debt additional paydown fee	$ 1,100
Term Loan \| Maximum
Debt prepayment fee	3.00%
Term Loan \| Minimum
Debt prepayment fee	1.00%
Secured Debt
Debt maximum borrowing capacity						$ 75,000
Debt additional borrowing capacity						$ 75,000
Long term debt				$ 75,000	$ 75,000

Long-term Debt (Tables)

3 Months Ended

Mar. 31, 2021

Text Block [Abstract]

Schedule of Future payments of principal and interest on the Term Loan

Future payments of principal and interest on the Term Loan as of March 31, 2021 (in thousands):


2021 (nine months)		10,125
2022		13,500
2023		62,813
2024		58,313
2025		53,812

Total minimum payments		198,563
Less amount representing interest		(45,563	)
Less amount representing Paydown Fee		(3,000	)

Long-term debt, gross		150,000
Discount on notes payable		(1,539	)
Accretion of Paydown Fee		591

Long-term debt	$	149,052

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]
Beginning Balance at Dec. 31, 2019	$ 578,694	$ 61	$ 1,316,795	$ 754	$ (738,916)
Beginning Balance, Shares at Dec. 31, 2019		60,644,380
Issuance of common stock upon exercise of stock options	967		967
Issuance of common stock upon exercise of stock options, Shares		33,937
Issuance of common stock upon vesting of restricted share units, net of shares withheld for employee taxes	(2,099)		(2,099)
Issuance of common stock upon vesting of restricted share units, net of shares withheld for employee taxes, Shares		160,594
Issuance of common stock pursuant to ESPP purchases	1,870		1,870
Issuance of common stock pursuant to ESPP purchases, Shares		47,460
Stock-based compensation	16,705		16,705
Net unrealized gain on marketable securities	461			461
Net loss	(73,026)				(73,026)
Ending Balance at Mar. 31, 2020	523,572	$ 61	1,334,238	1,215	(811,942)
Ending Balance, Shares at Mar. 31, 2020		60,886,371
Beginning Balance at Dec. 31, 2020	416,157	$ 62	1,402,262	302	(986,469)
Beginning Balance, Shares at Dec. 31, 2020		61,898,090
Issuance of common stock upon exercise of stock options	$ 1,110		1,110
Issuance of common stock upon exercise of stock options, Shares	47,763	47,763
Issuance of common stock upon vesting of restricted share units, net of shares withheld for employee taxes	$ (1,897)		(1,897)
Issuance of common stock upon vesting of restricted share units, net of shares withheld for employee taxes, Shares		229,087
Issuance of common stock pursuant to ESPP purchases	2,558		2,558
Issuance of common stock pursuant to ESPP purchases, Shares		65,110
Stock-based compensation	20,378		20,378
Net unrealized gain on marketable securities	(181)			(181)
Net loss	(74,930)				(74,930)
Ending Balance at Mar. 31, 2021	$ 363,195	$ 62	$ 1,424,411	$ 121	$ (1,061,399)
Ending Balance, Shares at Mar. 31, 2021		62,240,050

Stock-Based Compensation - Summary of Share-based Compensation Arrangements by Share-based Payment Award (Detail) - 2020 Market-Condition RSU Awards [Member]	Mar. 31, 2021 $ / shares shares
Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Targets \| $ / shares	$ 109.20
Number of Units Allotted \| shares	82,940
Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Targets \| $ / shares	$ 145.60
Number of Units Allotted \| shares	145,145
Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price Targets \| $ / shares	$ 182.00
Number of Units Allotted \| shares	186,615

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	62,240,050	61,898,090
Common stock, shares outstanding	62,240,050	61,898,090

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2021	Apr. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Entity Registrant Name	Global Blood Therapeutics, Inc.
Entity Filer Category	Large Accelerated Filer
Trading Symbol	GBT
Entity Emerging Growth Company	false
Entity Small Business	false
Document Transition Report	false
Entity Common Stock, Shares Outstanding		62,266,753
Document Quarterly Report	true
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes
Entity File Number	001-37539
Entity Tax Identification Number	27-4825712
Entity Shell Company	false
Entity Address, Address Line One	181 Oyster Point Boulevard
Entity Address, City or Town	South San Francisco
Entity Address, State or Province	CA
City Area Code	650
Local Phone Number	741-7700
Entity Address, Postal Zip Code	94080
Title of 12(b) Security	Common Stock
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001629137
Current Fiscal Year End Date	--12-31

Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

7. Commitments and Contingencies

Leases

We have operating leases for our headquarters in South San Francisco, where we have office and research and development laboratory facilities, and equipment. Our leases have remaining lease terms of 1 to 10 years. Most of these leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases include renewal options at our election, with renewal terms that can extend the lease term from 1 to 10 years. These optional periods have not been considered in the determination of the

right-of-use

assets, or ROU assets, or lease liabilities associated with these leases as we did not consider it reasonably certain that we would exercise the options.

Lease costs included in operating expense in

the condensed consolidated statement

of operations and comprehensive loss in relation to these operating leases were $3.2 million and $3.1 million for the three months ended March 31, 2021, and 2020, respectively. Included in these lease costs were variable lease costs, which were not included within the measurement of our operating ROU assets and operating lease liabilities in the amount of $0.7 million and $0.7 million for the three months ended March 31, 2021, and 2020, respectively. The variable lease cost is comprised primarily of our cost in certain research and development arrangements that contain embedded equipment, and our proportionate share of operating expenses, property taxes, and insurance in relation with our facility lease. These costs are classified as operating lease expense due to our election to not separate lease and

non-lease

components.

Supplemental information related to leases for the period reported is as follows (in thousands, except weighted-average remaining lease term and weighted-average discount rate):


	Three Months Ended March 31,
	2021			2020
Cash paid for amounts included in the measurement of lease liabilities		2,904			1,153
Weighted-average remaining lease term of operating leases (in years)		9.0			10
Weighted-average discount rate of operating leases		8.66	%		8.66	%

The majority of our l

ase costs are driven by our operating lease for our headquarters, where we have office and research and development laboratory facilities.

In March 2017, we entered into a noncancelable operating lease, or Original Lease, for approximately 67,185 square feet of space in South San Francisco, California, or Prior Premises. The Original Lease term commenced in November 2017 as we gained control over physical access to the Prior Premises

for a 10-year period.

In August 2018, we entered into an amendment to the Original Lease, or Lease Amendment, to relocate the leased premises from the Prior Premises to a

to-be-constructed

building consisting of approximately 164,150 rentable square feet of space, or Substitute Premises, when the Substitute Premises were ready for occupancy, or Substitute Premises Payment Commencement Date. The Lease Amendment has a contractual term, or Substitute Premises Term, of 10 years from the Substitute Premises Payment Commencement Date. The Lease Amendment grants us an option to extend the Lease Amendment for an additional

10-year

period. Future minimum rental payments under the Lease Amendment during the

10-year

term are $121.5 million in the aggregate. Under the Lease Amendment, we are obligated to pay to the landlord certain costs, including taxes and operating expenses. The Lease Amendment also provides a tenant inducement allowance of up to $27.9 million, of which $4.1 million, if utilized, would be repaid to the landlord in the form of additional monthly rent with interest applied. As of March 31, 2021, we have capitalized $32.3 million of costs within property and equipment, net for construction of leasehold improvements at the Substitute Premises, which were mostly acquired with the tenant inducement provided under the Lease Amendment.

After relocating to the Substitute

Premises

, we surrendered and delivered the Prior Premises to the landlord in May 2020, upon which time we had no further obligations with respect to the Prior Premises other than with respect to the Initial Allowance, which we will repay to the landlord in the form of additional monthly rent with interest applied over the term of the Original Lease through November 2027. Upon signing of the Lease Amendment, we

re-evaluated

the remaining useful life of the leasehold improvements at the Prior Premises and started to amortize the leasehold improvements over the remaining period of expected use, resulting in an acceleration of depreciation expenses for approximately $1.9 million for the three months ended March 31, 2020. No

acceleration of depreciation

expense was recorded for the three months ended March 31, 2021.

As of March 31, 2021, the maturities of our operating lease liabilities were as follows (in thousands):


Year ending December 31,	Amount
2021 (nine months)		8,937
2022		12,222
2023		12,584
2024		12,948
2025		13,368
Thereafter		60,507

Total lease payments		120,566
Less: Imputed interest		(37,667	)

Present value of operating lease liabilities	$	82,899

The operating leases require us to share in prorated operating expenses and property taxes based upon actual amounts incurred; those amounts are not fixed for future periods and, therefore, are not included in the future commitments listed above.

Contingencies

In the ordinary course of business, we may be subject to legal claims and regulatory actions that could have a material adverse effect on our business or financial position. We assess our potential liability in such situations by analyzing potential outcomes, assuming various litigation, regulatory and settlement strategies. If we determine a loss is probable and its amount can be reasonably estimated, we accrue an amount equal to the estimated loss.

No losses and no provision for a loss contingency have been recorded to date.

Balance Sheet Components - Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 49,357	$ 47,743
Less: accumulated depreciation and amortization	(11,307)	(9,861)
Property and equipment, net	38,050	37,882
Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	12,264	11,922
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	3,024	3,023
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	32,281	32,281
Construction-in-Progress [Member]
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 1,788	$ 517

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Preparation and Presentation of Financial Information	Basis of Preparation and Presentation of Financial Information The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and, accordingly, the balance sheet as of December 31, 2020, has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. These unaudited interim condensed consolidated financial statements have been prepared on the same basis as our annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair presentation of our financial information. The results of operations for the three months ended March 31, 2021, are not necessarily indicative of the results to be expected for the year ending December 31, 2021, or for any other interim period or for any other future year. The accompanying unaudited interim condensed consolidated financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2020, included in our Annual Report on Form 10-K, filed with the SEC on February 24, 2021.
Use of Estimates	Use of Estimates The preparation of the accompanying unaudited interim condensed consolidated financial statements in accordance with U.S. GAAP requires us 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 consolidated financial statements, and the reported amounts of variable consideration and costs and expenses during the reporting period. We base our estimates and assumptions on historical experience when available and on various factors that we believe to be reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Our actual results could differ from these estimates under different assumptions or conditions.
Concentration of Risk	Concentration of Risk Credit Risk We invest in a variety of financial instruments and, by our Board approved investment policy, limit the amount of credit exposure with any one issuer, industry or geographic area for investments other than instruments backed by the U.S. federal government. Major Customers We have entered into distribution agreements with certain limited specialty pharmacies and specialty distributors. For the three months ended March 31, 2021, our two largest customers represented approximately 85% of our product revenue and approximately 78% of our accounts receivable balance at March 31, 2021. Major Suppliers We do not currently have any of our own manufacturing facilities, and therefore depend on an outsourced manufacturing strategy for the production of Oxbryta for commercial use and for the production of our product candidates for clinical trials. We have contracts in place with one third-party manufacturer that is approved for the commercial production of Oxbryta and one third-party supplier that is approved for Oxbryta’s active pharmaceutical ingredient. Although there are potential sources of supply other than our existing manufacturers and suppliers, any new supplier would be required to qualify under applicable regulatory requirements.
Principles of Consolidation	Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation.
Significant Accounting Policies	Significant Accounting Policies Except as noted below, there have been no material revisions in our significant accounting policies described in Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020.
Accounting Pronouncements Adopted	Accounting Pronouncements Adopted In December 2019, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes . The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, and the applicable amendments will be applied on a prospective basis. We adopted ASU No. 2019-12 in the first quarter of 2021 and applied the guidance prospectively. The only aspect of ASU 2019-12 that is currently applicable to us is the removal of the exception related to intraperiod tax allocation. We began applying the general methodology regarding the intraperiod allocation of tax expense in 2021. After the adoption of ASU 2019-12, in periods where we have a loss from continuing operations, the amount of taxes attributable to continuing operations will be determined without regard to the tax effect of other items, including changes in unrealized gains related to marketable securities. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements. In August 2020, FASB issued A S U No. 2020-08, Codification Improvement to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs . The new guidance states that an entity should reevaluate whether a callable debt security is within scope of Topic 310-20. ASU 2020-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. We adopted ASU No. 2020-08 in the first quarter of 2021 and applied the guidance prospectively. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements.
Accounting Pronouncement Issued But Not Yet Adopted	Accounting Pronouncement Issued But Not Yet Adopted In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). The new guidance contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives, and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. We continue to evaluate the impact of the guidance and may apply the elections as applicable as changes occur .

Fair Value Measurements - Fair Value Assets Measured on Recurring Basis (Detail) - Fair Value Measurements, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	$ 426,184	$ 552,300
U.S. Government Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	10,054	20,136
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	389,448	486,174
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	36,736	66,126
Level 2 [Member] \| U.S. Government Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	10,054	20,136
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	389,448	486,174
Money Market Funds [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	389,448	486,174
Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	19,639	29,804
Corporate Debt Securities [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	19,639	29,804
U.S. Government Agency Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	6,802	15,943
U.S. Government Agency Securities [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	6,802	15,943
Certificates of Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	241	243
Certificates of Deposits [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial assets, fair value	$ 241	$ 243

Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Inventories

Inventories consist of the following (in thousands):


	March 31, 2021		December 31, 2020
Raw materials	$	10,632	$	11,273
Work-in-process		28,656		26,994
Finished goods		2,979		1,956

Total inventories	$	42,267	$	40,223

Property and Equipment, Net

Property and equipment consists of the following (in thousands):


	March 31, 2021			December 31, 2020
Laboratory equipment	$	12,264		$	11,922
Computer equipment		3,024			3,023
Leasehold improvements		32,281			32,281
Construction-in-progress		1,788			517

Total property and equipment		49,357			47,743
Less: accumulated depreciation and amortization		(11,307	)		(9,861	)

Property and equipment, net	$	38,050		$	37,882

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


	March 31, 2021		December 31, 2020
Accrued research and development costs	$	8,121	$	10,677
Accrued manufacturing costs		7,631		9,125
Accrued professional and consulting services		5,199		4,107
Accrued sales deductions		7,010		6,405
Other		884		819

Total accrued liabilities	$	28,845	$	31,133

Summary of Significant Accounting Policies - Additional Information (Detail) - Customer Concentration Risk [Member] - Two Major Customers [Member]	3 Months Ended
	Mar. 31, 2021
Revenue, Product and Service Benchmark [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	85.00%
Accounts Receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration risk percentage	78.00%

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues [Abstract]
Product sales, net	$ 39,043	$ 14,118
Costs and operating expenses:
Cost of sales	584	135
Research and development	50,857	39,773
Selling, general and administrative	58,966	47,662
Total costs and operating expenses	110,407	87,570
Loss from operations	(71,364)	(73,452)
Other income (expense):
Interest income	329	2,856
Interest expenses	(3,689)	(2,314)
Other expenses, net	(206)	(116)
Total other income (expense), net	(3,566)	426
Net loss	(74,930)	(73,026)
Other comprehensive income:
Net unrealized gain (loss) on marketable securities, net of tax	(181)	461
Comprehensive loss	$ (75,111)	$ (72,565)
Basic and diluted net loss per common share	$ (1.21)	$ (1.20)
Weighted-average number of shares used in computing basic and diluted net loss per common share	62,101,070	60,787,710

Organization	3 Months Ended
Organization	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Global Blood Therapeutics, Inc., or the Company, we, us, or our, was incorporated in Delaware in February 2011 and commenced operations in May 2012. We are a biopharmaceutical company dedicated to the discovery, development and delivery of life-changing treatments that provide hope to underserved patient communities. In late November 2019, we received U.S. Food and Drug Administration, or FDA, accelerated approval for our first medicine, Oxbryta ® (voxelotor) tablets for the treatment of sickle cell disease, or SCD, in adults and children 12 years of age and older. In early December 2019, we began to make Oxbryta available to patients through our specialty pharmacy partner network. Our principal operations are based in South San Francisco, California, and we operate in one segment. Need for Additional Capital In the course of our development activities, we have sustained operating losses and we expect such losses to continue over the next several years. Our ultimate success depends on the outcome of our commercialization of Oxbryta and research and development activities. Since inception through March 31, 2021, we have incurred cumulative net losses of $1.06 billion. We expect to incur additional losses for the foreseeable future to commercialize Oxbryta and conduct product research and development, and expect to potentially raise additional capital to fully implement our business plan. If needed, we intend to raise such capital through borrowings, the issuance of additional equity, and potentially through strategic alliances with partner companies or other transactions. However, if such financing is not available at adequate levels, we will need to re-evaluate our operating plans. We believe that our existing cash and cash equivalents and marketable securities will be sufficient to fund our cash requirements for at least 12 months subsequent to the issuance of these financial statements.

Stock-Based Compensation - Summary of RSU Activity Granted to Employees with Service-Based Vesting (Detail) - 2017 Inducement Plan and 2015 Plan [Member] - RSU [Member]	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning Balance - Non-vested market-condition awards \| shares	2,210,356
RSUs granted, Number of RSUs \| shares	1,255,399
RSUs vested, Number of RSUs \| shares	(267,629)
RSUs forfeited, Number of RSUs \| shares	(94,999)
Ending Balance - Non-vested market-condition awards \| shares	3,103,127
Beginning Balance - Non-vested units, Weighted-Average Grant Date Fair Value \| $ / shares	$ 57.80
RSUs granted, Weighted-Average Grant Date Fair Value \| $ / shares	44.87
RSUs vested, Weighted-Average Grant Date Fair Value \| $ / shares	54.41
RSUs forfeited, Weighted-Average Grant Date Fair Value \| $ / shares	56.87
Ending Balance - Non-vested units, Weighted-Average Grant Date Fair Value \| $ / shares	$ 52.89

Long-term Debt

3 Months Ended

Mar. 31, 2021

Disclosure Text Block [Abstract]

Long-term Debt

6. Long-term Debt

Term Loan

On December 17, 2019, we entered into the Loan Agreement, or Term Loan, with funds managed by Pharmakon Advisors LP, which are BioPharma Credit PLC, as collateral agent, Biopharma Credit Investments V (Master) LP, as a lender, and BPCR Limited Partnership, as a lender, and collectively, the Lenders, for a senior secured credit facility consisting of an initial tranche of $75.0 million and the option to draw an additional $75.0 million until December 31, 2020. The first tranche, in the amount of $75.0 million, was funded in connection with the closing date of the Term Loan in December 2019, and the second tranche in the amount of $75.0 million was funded in November 2020.

The Term Loan carries a

72-month

term. The Term Loan bears interest at a floating per annum interest rate equal to 7.00% plus the greater of (a) the

3-month

LIBOR rate and (b) 2%. In the event we default, the interest rate would be 3% above the rate that is otherwise applicable thereto. Interest on amounts outstanding are payable quarterly in arrears. The Term Loan repayment schedule provides for interest only payments for the first 39 months, followed by consecutive equal quarterly payments of principal and interest commencing in March 2023 and continuing through the maturity in December 2025.

We have the option to prepay all or a portion of the borrowed amounts under the Term Loan. If we exercise this option, we must pay a prepayment fee between 1% and 3% of the principal amount being prepaid depending on the timing of the prepayment, or Prepayment Fee. If the prepayment occurs before December 2022, we must also pay an amount equal to the sum of all interest that would have accrued and been payable from date of prepayment through December 2022, or Make Whole Amount. We are obligated to pay an additional fee to the Lenders determined by multiplying the principal amount being paid or prepaid multiplied by 2%, or Paydown Fee, when such payments are made.

In the event of default or change in control, all unpaid principal and all accrued and unpaid interest amounts (if any) become immediately due and payable, at which point, we will be subject to the Prepayment Fee, the Make Whole Amount (if any) and the Paydown Fee. Events of default include, but are not limited to, a payment default, a material adverse change, and insolvency. The obligations under the Term Loan are secured by a first priority security interest in and a lien on substantially all of our assets, subject to certain exceptions.

Debt issuance costs paid directly to the Lenders of $1.1 million and the other debt issuance costs of $0.5 million were treated as discounts on the Term Loan. These debt discounts along with the Paydown Fee are being amortized or accreted to interest expenses throughout the life of the Term Loan using the effective interest rate method. In addition, we paid the Lenders $1.1 million for the option to draw the additional $75.0 million, which was capitalized as a deferred asset and amortized on a straight-line basis through December 31, 2020. Any remaining unamortized amount was reclassed to debt discount at the time of closing of the second tranche of the Term Loan. We closed the second tranche of the Term Loan in November 2020, and $0.2 million of the unamortized deferred asset related to the option to draw the second tranche was reclassed as the discount on the notes payable. As of March 31, 2021, there were unamortized issuance costs and debt discounts of $1.5 million, which were recorded as a direct deduction from the Term Loan on the condensed consolidated balance sheet.

Future payments of principal and interest on the Term Loan as of March 31, 2021 (in thousands):


2021 (nine months)		10,125
2022		13,500
2023		62,813
2024		58,313
2025		53,812

Total minimum payments		198,563
Less amount representing interest		(45,563	)
Less amount representing Paydown Fee		(3,000	)

Long-term debt, gross		150,000
Discount on notes payable		(1,539	)
Accretion of Paydown Fee		591

Long-term debt	$	149,052

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Preparation and Presentation of Financial Information The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and, accordingly, the balance sheet as of December 31, 2020, has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. These unaudited interim condensed consolidated financial statements have been prepared on the same basis as our annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair presentation of our financial information. The results of operations for the three months ended March 31, 2021, are not necessarily indicative of the results to be expected for the year ending December 31, 2021, or for any other interim period or for any other future year. The accompanying unaudited interim condensed consolidated financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2020, included in our Annual Report on Form 10-K, filed with the SEC on February 24, 2021. Use of Estimates The preparation of the accompanying unaudited interim condensed consolidated financial statements in accordance with U.S. GAAP requires us 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 consolidated financial statements, and the reported amounts of variable consideration and costs and expenses during the reporting period. We base our estimates and assumptions on historical experience when available and on various factors that we believe to be reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Our actual results could differ from these estimates under different assumptions or conditions. Concentration of Risk Credit Risk We invest in a variety of financial instruments and, by our Board approved investment policy, limit the amount of credit exposure with any one issuer, industry or geographic area for investments other than instruments backed by the U.S. federal government. Major Customers We have entered into distribution agreements with certain limited specialty pharmacies and specialty distributors. For the three months ended March 31, 2021, our two largest customers represented approximately 85% of our product revenue and approximately 78% of our accounts receivable balance at March 31, 2021. Major Suppliers We do not currently have any of our own manufacturing facilities, and therefore depend on an outsourced manufacturing strategy for the production of Oxbryta for commercial use and for the production of our product candidates for clinical trials. We have contracts in place with one third-party manufacturer that is approved for the commercial production of Oxbryta and one third-party supplier that is approved for Oxbryta’s active pharmaceutical ingredient. Although there are potential sources of supply other than our existing manufacturers and suppliers, any new supplier would be required to qualify under applicable regulatory requirements. Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. Significant Accounting Policies Except as noted below, there have been no material revisions in our significant accounting policies described in Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020. Accounting Pronouncements Adopted In December 2019, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes . The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, and the applicable amendments will be applied on a prospective basis. We adopted ASU No. 2019-12 in the first quarter of 2021 and applied the guidance prospectively. The only aspect of ASU 2019-12 that is currently applicable to us is the removal of the exception related to intraperiod tax allocation. We began applying the general methodology regarding the intraperiod allocation of tax expense in 2021. After the adoption of ASU 2019-12, in periods where we have a loss from continuing operations, the amount of taxes attributable to continuing operations will be determined without regard to the tax effect of other items, including changes in unrealized gains related to marketable securities. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements. In August 2020, FASB issued A S U No. 2020-08, Codification Improvement to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs . The new guidance states that an entity should reevaluate whether a callable debt security is within scope of Topic 310-20. ASU 2020-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. We adopted ASU No. 2020-08 in the first quarter of 2021 and applied the guidance prospectively. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements. Accounting Pronouncement Issued But Not Yet Adopted