epzm-10q_20200630.htm
false 2020 Q2 0001571498 --12-31 Large Accelerated Filer true P7Y4M P12Y2M12D 28071000 P8Y3M7D P6Y9M29D 0001571498 2020-01-01 2020-06-30 xbrli:shares 0001571498 2020-07-30 iso4217:USD 0001571498 2020-06-30 0001571498 2019-12-31 iso4217:USD xbrli:shares xbrli:pure 0001571498 us-gaap:ProductMember 2020-04-01 2020-06-30 0001571498 us-gaap:ProductMember 2020-01-01 2020-06-30 0001571498 epzm:CollaborationRevenueMember 2020-04-01 2020-06-30 0001571498 epzm:CollaborationRevenueMember 2019-04-01 2019-06-30 0001571498 epzm:CollaborationRevenueMember 2020-01-01 2020-06-30 0001571498 epzm:CollaborationRevenueMember 2019-01-01 2019-06-30 0001571498 2020-04-01 2020-06-30 0001571498 2019-04-01 2019-06-30 0001571498 2019-01-01 2019-06-30 0001571498 2018-12-31 0001571498 2019-06-30 0001571498 us-gaap:CommonStockMember 2018-12-31 0001571498 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001571498 us-gaap:RetainedEarningsMember 2018-12-31 0001571498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001571498 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001571498 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001571498 2019-01-01 2019-03-31 0001571498 us-gaap:PreferredStockMember 2019-01-01 2019-03-31 0001571498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001571498 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001571498 us-gaap:CommonStockMember 2019-03-31 0001571498 us-gaap:PreferredStockMember 2019-03-31 0001571498 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001571498 us-gaap:RetainedEarningsMember 2019-03-31 0001571498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001571498 2019-03-31 0001571498 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001571498 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001571498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001571498 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001571498 us-gaap:CommonStockMember 2019-06-30 0001571498 us-gaap:PreferredStockMember 2019-06-30 0001571498 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001571498 us-gaap:RetainedEarningsMember 2019-06-30 0001571498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001571498 us-gaap:CommonStockMember 2019-12-31 0001571498 us-gaap:PreferredStockMember 2019-12-31 0001571498 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001571498 us-gaap:RetainedEarningsMember 2019-12-31 0001571498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001571498 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001571498 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001571498 2020-01-01 2020-03-31 0001571498 us-gaap:CommonStockMember epzm:SeriesAConvertiblePreferredStockMember 2020-01-01 2020-03-31 0001571498 us-gaap:PreferredStockMember epzm:SeriesAConvertiblePreferredStockMember 2020-01-01 2020-03-31 0001571498 us-gaap:AdditionalPaidInCapitalMember epzm:SeriesAConvertiblePreferredStockMember 2020-01-01 2020-03-31 0001571498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001571498 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001571498 us-gaap:CommonStockMember 2020-03-31 0001571498 us-gaap:PreferredStockMember 2020-03-31 0001571498 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001571498 us-gaap:RetainedEarningsMember 2020-03-31 0001571498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001571498 2020-03-31 0001571498 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001571498 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001571498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001571498 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001571498 us-gaap:CommonStockMember 2020-06-30 0001571498 us-gaap:PreferredStockMember 2020-06-30 0001571498 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001571498 us-gaap:RetainedEarningsMember 2020-06-30 0001571498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001571498 epzm:TAZVERIKMember 2020-01-01 2020-06-30 0001571498 us-gaap:SalesRevenueNetMember 2020-01-01 2020-06-30 0001571498 us-gaap:AccountsReceivableMember 2020-01-01 2020-06-30 0001571498 epzm:RoyaltyPharmaAndPharmakonAdvisorsMember 2020-01-01 2020-06-30 0001571498 us-gaap:IPOMember 2020-01-01 2020-06-30 0001571498 epzm:EisaiMember 2020-01-01 2020-03-31 0001571498 epzm:EisaiMember 2020-01-01 2020-06-30 0001571498 epzm:TAZVERIKMember epzm:ChargebacksDiscountsAndFeesMember 2020-01-01 2020-06-30 0001571498 epzm:TAZVERIKMember epzm:GovernmentAndOtherRebatesMember 2020-01-01 2020-06-30 0001571498 epzm:TAZVERIKMember epzm:ReturnsMember 2020-01-01 2020-06-30 0001571498 epzm:TAZVERIKMember epzm:ChargebacksDiscountsAndFeesMember 2020-06-30 0001571498 epzm:TAZVERIKMember epzm:GovernmentAndOtherRebatesMember 2020-06-30 0001571498 epzm:TAZVERIKMember epzm:ReturnsMember 2020-06-30 0001571498 epzm:TAZVERIKMember 2020-06-30 epzm:Customer 0001571498 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember 2020-01-01 2020-06-30 0001571498 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember 2020-04-01 2020-06-30 0001571498 epzm:TAZVERIKMember 2019-04-01 2019-06-30 0001571498 epzm:TAZVERIKMember 2019-01-01 2019-06-30 0001571498 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember epzm:CustomerOneMember 2020-04-01 2020-06-30 0001571498 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember epzm:CustomerOneMember 2020-01-01 2020-06-30 0001571498 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember epzm:CustomerTwoMember 2020-04-01 2020-06-30 0001571498 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember epzm:CustomerTwoMember 2020-01-01 2020-06-30 0001571498 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember epzm:CustomerThreeMember 2020-04-01 2020-06-30 0001571498 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember epzm:CustomerThreeMember 2020-01-01 2020-06-30 0001571498 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember epzm:CustomerFourMember 2020-04-01 2020-06-30 0001571498 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember epzm:CustomerFourMember 2020-01-01 2020-06-30 0001571498 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember epzm:CustomerOneMember 2020-01-01 2020-06-30 0001571498 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember epzm:CustomerTwoMember 2020-01-01 2020-06-30 0001571498 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember epzm:CustomerThreeMember 2020-01-01 2020-06-30 0001571498 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember epzm:CustomerFourMember 2020-01-01 2020-06-30 0001571498 us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember epzm:CustomerFiveMember 2020-01-01 2020-06-30 0001571498 us-gaap:LetterOfCreditMember epzm:TechnologySquareMember 2020-06-30 0001571498 us-gaap:LetterOfCreditMember epzm:TechnologySquareMember 2019-06-30 0001571498 us-gaap:LetterOfCreditMember epzm:HampshireStreetMember 2020-06-30 0001571498 us-gaap:CommercialPaperMember 2020-06-30 0001571498 us-gaap:CorporateNoteSecuritiesMember 2020-06-30 0001571498 us-gaap:USTreasuryAndGovernmentMember 2020-06-30 0001571498 us-gaap:CommercialPaperMember 2019-12-31 0001571498 us-gaap:CorporateNoteSecuritiesMember 2019-12-31 0001571498 us-gaap:USTreasuryAndGovernmentMember 2019-12-31 epzm:Security 0001571498 us-gaap:CommercialPaperMember 2020-01-01 2020-06-30 0001571498 us-gaap:CorporateNoteSecuritiesMember 2020-01-01 2020-06-30 0001571498 us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001571498 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001571498 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001571498 us-gaap:CommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001571498 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001571498 us-gaap:CorporateNoteSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001571498 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateNoteSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001571498 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001571498 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2020-06-30 0001571498 us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001571498 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001571498 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001571498 us-gaap:CommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001571498 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001571498 us-gaap:CorporateNoteSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001571498 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateNoteSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001571498 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001571498 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0001571498 epzm:InitialTermMember 2020-01-01 2020-06-30 0001571498 epzm:ExtendedTermMember 2020-01-01 2020-06-30 0001571498 epzm:CambridgeMember epzm:BMRHampshireLLCMember 2019-08-16 2019-08-16 0001571498 epzm:CambridgeMember epzm:BMRHampshireLLCMember 2019-08-16 epzm:OptionTarget 0001571498 epzm:GskMember 2011-01-01 2011-01-01 0001571498 epzm:GskMember epzm:CollaborationRevenueMember 2011-01-01 2013-12-31 0001571498 epzm:GskMember 2020-06-30 0001571498 epzm:GskMember 2020-01-01 2020-06-30 0001571498 epzm:GskMember 2011-01-01 2019-12-31 0001571498 epzm:EisaiMember 2015-03-01 2015-03-31 0001571498 epzm:EisaiMember 2020-06-30 0001571498 epzm:EisaiMember epzm:FirstSubmissionOfNewDrugApplicationOrMarketingAuthorizationApplicationMember 2020-06-30 0001571498 epzm:EisaiMember 2019-01-01 2019-06-30 0001571498 epzm:EisaiMember epzm:SecondSubmissionOfNewDrugApplicationOrMarketingAuthorizationApplicationMember 2019-06-30 0001571498 epzm:EisaiMember epzm:SecondSubmissionOfNewDrugApplicationOrMarketingAuthorizationApplicationMember 2019-12-31 0001571498 epzm:EisaiMember 2019-06-30 0001571498 epzm:EisaiMember epzm:SecondSubmissionOfNewDrugApplicationOrMarketingAuthorizationApplicationMember 2020-01-31 0001571498 epzm:EisaiMember epzm:SecondSubmissionOfNewDrugApplicationOrMarketingAuthorizationApplicationMember 2020-06-30 0001571498 epzm:EisaiMember 2020-04-01 2020-06-30 0001571498 epzm:EisaiMember 2019-04-01 2019-06-30 0001571498 epzm:EisaiMember 2019-12-31 0001571498 us-gaap:CollaborativeArrangementMember epzm:RocheMember 2018-03-31 0001571498 us-gaap:CollaborativeArrangementMember epzm:RocheMember 2020-06-30 0001571498 epzm:RocheMember 2019-07-31 0001571498 epzm:SignedAmendmentMember epzm:RocheMember 2019-07-31 0001571498 epzm:FourthAmendmentMember epzm:RocheMember 2019-07-31 0001571498 epzm:RocheMember us-gaap:SubsequentEventMember 2020-09-30 0001571498 us-gaap:SubsequentEventMember 2020-09-30 0001571498 epzm:RocheMember 2020-01-01 2020-06-30 0001571498 epzm:BoehringerIngelheimInternationalGmbHMember 2018-11-01 2018-11-30 0001571498 epzm:BoehringerIngelheimInternationalGmbHMember 2018-11-30 epzm:Installment 0001571498 epzm:BoehringerIngelheimInternationalGmbHMember 2020-06-30 0001571498 srt:MaximumMember epzm:BoehringerIngelheimInternationalGmbHMember 2018-11-30 0001571498 epzm:BoehringerIngelheimInternationalGmbHMember 2020-01-01 2020-06-30 0001571498 epzm:BoehringerIngelheimInternationalGmbHMember 2019-01-01 2019-09-30 0001571498 epzm:BoehringerIngelheimInternationalGmbHMember 2019-09-30 0001571498 epzm:BoehringerIngelheimInternationalGmbHMember 2019-12-31 0001571498 epzm:BoehringerIngelheimInternationalGmbHMember 2020-04-01 2020-06-30 0001571498 epzm:BoehringerIngelheimInternationalGmbHMember 2019-04-01 2019-06-30 0001571498 epzm:BoehringerIngelheimInternationalGmbHMember 2019-01-01 2019-06-30 0001571498 epzm:BoehringerIngelheimInternationalGmbHMember 2019-06-30 0001571498 epzm:CelgeneMember 2020-01-01 2020-06-30 0001571498 epzm:CelgeneMember 2020-06-30 0001571498 epzm:LoanAgreementMember 2019-11-04 epzm:Tranche 0001571498 epzm:TrancheANotePayableMember epzm:LoanAgreementMember 2019-11-04 0001571498 epzm:TrancheBNotePayableMember epzm:LoanAgreementMember 2019-11-04 0001571498 epzm:TrancheCNotePayableMember epzm:LoanAgreementMember 2019-11-04 0001571498 epzm:TrancheANotePayableMember epzm:LoanAgreementMember 2020-06-30 0001571498 epzm:TrancheBNotePayableMember epzm:LoanAgreementMember 2020-06-30 0001571498 epzm:LoanAgreementMember srt:MaximumMember 2020-06-30 0001571498 epzm:LoanAgreementMember 2020-01-01 2020-06-30 0001571498 epzm:RPIPurchaseAgreementMember 2019-11-04 0001571498 epzm:RPIPurchaseAgreementMember srt:MaximumMember 2019-11-04 2019-11-04 0001571498 epzm:RPIPurchaseAgreementMember 2019-11-04 2019-11-04 0001571498 epzm:RPIPurchaseAgreementMember epzm:AchievementOfSpecifiedLevelsOfAnnualNetSalesOfLicensedProductsMember 2019-11-04 2019-11-04 0001571498 epzm:RPIPurchaseAgreementMember 2020-02-01 2020-02-29 0001571498 epzm:RPIAndAffiliatesMember 2020-06-30 0001571498 epzm:RPIAndAffiliatesMember 2019-12-31 0001571498 epzm:RPIPurchaseAgreementMember epzm:LoanAgreementMember 2020-01-01 2020-06-30 0001571498 epzm:RPIPurchaseAgreementMember epzm:LoanAgreementMember 2020-06-30 0001571498 epzm:RPIPurchaseAgreementMember epzm:TrancheANotePayableMember epzm:LoanAgreementMember 2020-06-30 0001571498 epzm:RPIPurchaseAgreementMember 2020-01-01 2020-06-30 0001571498 us-gaap:RoyaltyArrangementMember 2020-01-01 2020-06-30 0001571498 us-gaap:RoyaltyArrangementMember 2020-06-30 0001571498 epzm:TazemetostatMember us-gaap:RoyaltyArrangementMember 2020-01-01 2020-06-30 0001571498 epzm:LoanAgreementsMember 2019-11-04 0001571498 epzm:LoanAgreementsMember srt:MaximumMember 2019-11-04 0001571498 epzm:LoanAgreementsMember epzm:TrancheTermLoanMember epzm:BioPharmaCreditInvestmentsVMasterLPMember 2020-04-01 2020-06-30 0001571498 epzm:LoanAgreementsMember epzm:TrancheTermLoanMember epzm:BioPharmaCreditInvestmentsVMasterLPMember 2020-01-01 2020-06-30 0001571498 epzm:RPIPurchaseAgreementMember 2019-11-30 0001571498 us-gaap:CommonStockMember 2020-02-01 2020-02-29 0001571498 epzm:SeriesAConvertiblePreferredStockMember 2019-03-06 0001571498 epzm:SeriesAConvertiblePreferredStockMember 2019-03-06 2019-03-06 0001571498 epzm:SeriesAConvertiblePreferredStockMember 2020-06-30 0001571498 epzm:SeriesAConvertiblePreferredStockMember 2020-01-01 2020-06-30 0001571498 us-gaap:PreferredStockMember 2020-02-01 2020-02-29 0001571498 us-gaap:CommonStockMember 2020-02-01 2020-02-29 0001571498 epzm:RPIPurchaseAgreementMember srt:MaximumMember 2019-11-01 2019-11-30 0001571498 epzm:RPIPurchaseAgreementMember 2019-11-01 2019-11-30 0001571498 epzm:RPIPurchaseAgreementMember us-gaap:AdditionalPaidInCapitalMember 2019-11-01 2019-11-30 0001571498 epzm:RestrictedStockUnitsMember 2020-04-01 2020-06-30 0001571498 epzm:RestrictedStockUnitsMember 2019-04-01 2019-06-30 0001571498 epzm:RestrictedStockUnitsMember 2020-01-01 2020-06-30 0001571498 epzm:RestrictedStockUnitsMember 2019-01-01 2019-06-30 0001571498 us-gaap:ResearchAndDevelopmentExpenseMember 2020-04-01 2020-06-30 0001571498 us-gaap:ResearchAndDevelopmentExpenseMember 2019-04-01 2019-06-30 0001571498 us-gaap:ResearchAndDevelopmentExpenseMember 2020-01-01 2020-06-30 0001571498 us-gaap:ResearchAndDevelopmentExpenseMember 2019-01-01 2019-06-30 0001571498 us-gaap:GeneralAndAdministrativeExpenseMember 2020-04-01 2020-06-30 0001571498 us-gaap:GeneralAndAdministrativeExpenseMember 2019-04-01 2019-06-30 0001571498 us-gaap:GeneralAndAdministrativeExpenseMember 2020-01-01 2020-06-30 0001571498 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-06-30 0001571498 us-gaap:EmployeeStockOptionMember 2020-04-01 2020-06-30 0001571498 us-gaap:EmployeeStockOptionMember 2019-04-01 2019-06-30 0001571498 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001571498 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0001571498 epzm:ServiceBasedRestrictedStockUnitsMember srt:ExecutiveOfficerMember 2020-01-01 2020-06-30 0001571498 epzm:ServiceBasedRestrictedStockUnitsMember 2020-01-01 2020-06-30 0001571498 epzm:ServiceBasedRestrictedStockUnitsMember 2019-12-31 0001571498 epzm:ServiceBasedRestrictedStockUnitsMember 2020-06-30 0001571498 epzm:ServiceBasedRestrictedStockUnitsMember 2020-04-01 2020-06-30 0001571498 epzm:ServiceBasedRestrictedStockUnitsMember 2019-01-01 2019-06-30 0001571498 epzm:ServiceBasedRestrictedStockUnitsMember 2019-04-01 2019-06-30 0001571498 epzm:PerformanceBasedRestrictedStockUnitsMember 2019-01-01 2019-12-31 0001571498 epzm:PerformanceBasedRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2019-01-01 2019-12-31 0001571498 epzm:PerformanceBasedRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2019-01-01 2019-12-31 0001571498 epzm:PerformanceBasedRestrictedStockUnitsMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2019-01-01 2019-12-31 0001571498 epzm:PerformanceBasedRestrictedStockUnitsMember epzm:ShareBasedCompensationAwardTrancheFourMember 2019-01-01 2019-12-31 0001571498 epzm:PerformanceBasedRestrictedStockUnitsMember 2019-12-31 0001571498 epzm:PerformanceBasedRestrictedStockUnitsMember 2020-01-01 2020-06-30 0001571498 epzm:PerformanceBasedRestrictedStockUnitsMember 2020-04-01 2020-06-30 0001571498 epzm:PerformanceBasedRestrictedStockUnitsMember 2020-06-30 0001571498 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-06-30 0001571498 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0001571498 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-06-30 0001571498 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-06-30 0001571498 epzm:EmployeeStockPurchasePlanMember 2020-01-01 2020-06-30 0001571498 epzm:EmployeeStockPurchasePlanMember 2019-01-01 2019-06-30 0001571498 us-gaap:ConvertiblePreferredStockMember 2020-01-01 2020-06-30 0001571498 us-gaap:ConvertiblePreferredStockMember 2019-01-01 2019-06-30 0001571498 us-gaap:WarrantMember 2020-01-01 2020-06-30

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2020

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                      to                     

Commission File Number: 001-35945

 

EPIZYME, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

26-1349956

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

400 Technology Square, Cambridge, Massachusetts

02139

(Address of principal executive offices)

(Zip code)

617-229-5872

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common stock, $0.0001 par value

EPZM

Nasdaq Global Select Market

The number of shares outstanding of the registrant’s common stock as of July 30, 2020: 101,478,267 shares. 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

 

Non-accelerated filer

 

  

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act). 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

 

 

 


 

PART I — FINANCIAL INFORMATION

 

 

 

Item 1. Financial Statements. — Unaudited

4

 

 

Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019

4

 

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2020 and 2019

5

 

 

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2020 and 2019

6

 

 

Condensed Consolidated Statements of Stockholders Equity

7

 

 

Notes to Condensed Consolidated Financial Statements

8

 

 

Item  2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

28

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

38

 

 

Item 4. Controls and Procedures

38

 

 

PART II — OTHER INFORMATION

 

 

 

Item 1A. Risk Factors

39

 

 

Item 6. Exhibits

72

 

 

Signatures

73

 

Epizyme® and TAZVERIK® are registered trademarks of Epizyme, Inc. in the United States and other countries. Epizyme, Inc. has also submitted trademark applications for Epizyme™ and/or TAZVERIK™ in the United States and/or other countries. All other trademarks, service marks or other tradenames appearing in this Quarterly Report on Form 10-Q are the property of their respective owners.

 

 


 

Forward-looking Information

This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. These statements may be identified by such forward-looking terminology as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar statements or variations of such terms. Our forward-looking statements are based on a series of expectations, assumptions, estimates and projections about our company, are not guarantees of future results or performance and involve substantial risks and uncertainty. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements. Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including the risks and uncertainties inherent in our statements regarding:

 

our plans to develop and commercialize novel epigenetic therapies for patients with cancer and other serious diseases;

 

the commercial launch of TAZVERIK;

 

our ongoing and planned clinical trials, including the timing of initiation and enrollment in the trials, the timing of availability of data from the trials and the anticipated results of the trials;

 

the timing of and our ability to apply for, obtain and maintain regulatory approvals for our product candidates;

 

our ability to achieve anticipated milestones under our collaborations;

 

the rate and degree of market acceptance and clinical utility of our products;

 

our commercialization, marketing and manufacturing capabilities and strategy;

 

the impact of the COVID-19 pandemic on our business, results of operations, and financial condition;

 

our intellectual property position; and

 

our estimates regarding expenses, future revenue, capital requirements and needs for additional financing.

All of our forward-looking statements are made as of the date of this Quarterly Report on Form 10-Q only. In each case, actual results may differ materially from such forward-looking information. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of or any material adverse change in one or more of the risk factors or risks and uncertainties referred to in this Quarterly Report on Form 10-Q or included in our other public disclosures or our other periodic reports or other documents or filings filed with or furnished to the Securities and Exchange Commission, or the SEC, could materially and adversely affect our business, prospects, financial condition and results of operations. Except as required by law, we do not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections or other circumstances affecting such forward-looking statements occurring after the date of this Quarterly Report on Form 10-Q, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. Any public statements or disclosures by us following this Quarterly Report on Form 10-Q which modify or impact any of the forward-looking statements contained in this Quarterly Report on Form 10-Q will be deemed to modify or supersede such statements in this Quarterly Report on Form 10-Q.

Our management’s discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, which have been prepared by us in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim periods and with Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended, or the Exchange Act. This discussion and analysis should be read in conjunction with these unaudited condensed consolidated financial statements and the notes thereto as well as in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, or our Annual Report. The three months ended June 30, 2020 and 2019 are referred to as the second quarter of 2020 and 2019, respectively.

Note regarding certain references in this Quarterly Report on Form 10-Q

Unless otherwise stated or the context indicates otherwise, all references herein to “Epizyme,” “Epizyme, Inc.,” “we,” “us,” “our,” “our company,” “the Company” and similar references refer to Epizyme, Inc. and its wholly owned subsidiary, Epizyme Securities Corporation.

In addition, unless otherwise stated or the context indicates otherwise, all references in this Quarterly Report on Form 10-Q to “TAZVERIK® (tazemetostat),” “TAZVERIK®” and “TAZVERIK” refer to tazemetostat in the context of the commercially-available product for which we received accelerated approval from the FDA in January 2020 for epithelioid sarcoma and in June 2020 for follicular lymphoma, as more fully described herein; whereas, unless otherwise stated or the context indicates otherwise, all references herein to “tazemetostat” refer to tazemetostat in the context of the product candidate for which we are exploring further applications and indications, as more fully described herein. 

3


 

PART I – FINANCIAL INFORMATION

Item 1.

Financial Statements

EPIZYME, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Amounts in thousands, except per share data)

 

 

 

June 30,

2020

 

 

December 31,

2019

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

117,152

 

 

$

139,482

 

Marketable securities

 

 

204,910

 

 

 

241,605

 

Accounts receivable, net

 

 

1,747

 

 

 

2,567

 

Inventory

 

 

9,864

 

 

 

 

Prepaid expenses and other current assets

 

 

20,991

 

 

 

15,523

 

Total current assets

 

 

354,664

 

 

 

399,177

 

Property and equipment, net

 

 

2,268

 

 

 

2,219

 

Operating lease assets

 

 

19,448

 

 

 

21,206

 

Intangible assets, net

 

 

49,079

 

 

 

 

Restricted cash and other assets

 

 

1,924

 

 

 

1,987

 

Total assets

 

$

427,383

 

 

$

424,589

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

4,583

 

 

$

8,782

 

Accrued expenses

 

 

22,050

 

 

 

22,549

 

Current portion of operating lease obligation

 

 

3,878

 

 

 

3,039

 

Other current liabilities

 

 

144

 

 

 

16

 

Total current liabilities

 

 

30,655

 

 

 

34,386

 

Operating lease obligation, net of current portion

 

 

17,686

 

 

 

19,120

 

Deferred revenue, net of current portion

 

 

3,806

 

 

 

3,806

 

Long-term debt, net of debt discount

 

 

68,464

 

 

 

23,309

 

Other long-term liabilities

 

 

21

 

 

 

38

 

Liability related to sale of future royalties

 

 

13,388

 

 

 

12,793

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 5,000 shares authorized; 338 shares and

350 shares issued and outstanding, respectively (equivalent to 3,378 shares and 3,500 shares of common stock, respectively, upon conversion at a 10:1 ratio)

 

 

36,127

 

 

 

37,432

 

Common stock, $0.0001 par value; 150,000 shares and 125,000 shares authorized, respectively; 101,464 shares and 97,783 shares issued and outstanding, respectively

 

 

10

 

 

 

10

 

Additional paid-in capital

 

 

1,123,173

 

 

 

1,050,695

 

Accumulated other comprehensive income

 

 

460

 

 

 

19

 

Accumulated deficit

 

 

(866,407

)

 

 

(757,019

)

Total stockholders’ equity

 

 

293,363

 

 

 

331,137

 

Total liabilities and stockholders’ equity

 

$

427,383

 

 

$

424,589

 

 

See notes to condensed consolidated financial statements.

4


 

EPIZYME, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

(Amounts in thousands, except per share data)

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue, net

 

$

2,234

 

 

$

 

 

$

3,519

 

 

$

 

Collaboration revenue

 

 

233

 

 

 

5,900

 

 

 

303

 

 

 

13,791

 

Total revenue

 

 

2,467

 

 

 

5,900

 

 

 

3,822

 

 

 

13,791

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

 

 

1,022

 

 

 

 

 

 

1,637

 

 

 

 

Research and development

 

 

26,352

 

 

 

40,907

 

 

 

51,516

 

 

 

67,803

 

Selling, general and administrative

 

 

32,659

 

 

 

15,698

 

 

 

59,584

 

 

 

27,684

 

Total operating expenses

 

 

60,033

 

 

 

56,605

 

 

 

112,737

 

 

 

95,487

 

Operating loss

 

 

(57,566

)

 

 

(50,705

)

 

 

(108,915

)

 

 

(81,696

)

Other income, net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest (expense) income, net

 

 

(569

)

 

 

2,253

 

 

 

187

 

 

 

3,911

 

Other (expense), net

 

 

(15

)

 

 

(13

)

 

 

(64

)

 

 

(19

)

Non-cash interest expense related to sale of future royalties

 

 

(301

)

 

 

 

 

 

(596

)

 

 

 

Other (expense) income, net

 

 

(885

)

 

 

2,240

 

 

 

(473

)

 

 

3,892

 

Net loss

 

$

(58,451

)

 

$

(48,465

)

 

$

(109,388

)

 

$

(77,804

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on available-for-sale securities

 

 

535

 

 

 

216

 

 

 

441

 

 

 

302

 

Comprehensive loss

 

$

(57,916

)

 

$

(48,249

)

 

$

(108,947

)

 

$

(77,502

)

Reconciliation of net loss to net loss attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(58,451

)

 

$

(48,465

)

 

$

(109,388

)

 

$

(77,804

)

Accretion of convertible preferred stock

 

 

 

 

 

 

 

 

 

 

 

(2,940

)

Net loss attributable to common stockholders

 

$

(58,451

)

 

$

(48,465

)

 

$

(109,388

)

 

$

(80,744

)

Net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.58

)

 

$

(0.53

)

 

$

(1.09

)

 

$

(1.04

)

Diluted

 

$

(0.58

)

 

$

(0.53

)

 

$

(1.09

)

 

$

(1.04

)

Weighted-average common shares outstanding used in net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

101,104

 

 

 

90,876

 

 

 

100,360

 

 

 

77,315

 

Diluted

 

 

101,104

 

 

 

90,876

 

 

 

100,360

 

 

 

77,315

 

 

See notes to condensed consolidated financial statements.

5


 

EPIZYME, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in thousands)

 

 

 

Six Months Ended

June 30,

 

 

 

2020

 

 

2019

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net loss

 

$

(109,388

)

 

$

(77,804

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,362

 

 

 

416

 

Stock-based compensation

 

 

14,802

 

 

 

7,939

 

Amortization of discount on investments

 

 

(362

)

 

 

(1,759

)

Amortization of debt discount

 

 

169

 

 

 

 

Loss on disposal of property and equipment

 

 

19

 

 

 

 

Non-cash interest expense associated with the sale of future royalties

 

 

596

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

820

 

 

 

6,794

 

Inventory

 

 

(9,864

)

 

 

 

Prepaid expenses and other current assets

 

 

(5,468

)

 

 

(1,942

)

Accounts payable

 

 

(4,221

)

 

 

2,092

 

Accrued expenses

 

 

(499

)

 

 

(1,972

)

Deferred revenue

 

 

128

 

 

 

(7,041

)

Operating lease assets

 

 

1,758

 

 

 

1,255

 

Operating lease liabilities

 

 

(595

)

 

 

(1,290

)

Other assets and liabilities

 

 

47

 

 

 

(141

)

Net cash used in operating activities

 

 

(110,696

)

 

 

(73,453

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of available-for-sale securities

 

 

(94,120

)

 

 

(297,904

)

Maturities of available-for-sale securities

 

 

131,616

 

 

 

168,548

 

Purchase of intangible asset

 

 

(50,000

)

 

 

 

Purchases of property and equipment

 

 

(329

)

 

 

(190

)

Net cash used in investing activities

 

 

(12,833

)

 

 

(129,546

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock, net of commissions

 

 

 

 

 

122,992

 

Proceeds from issuance of preferred stock, net of commissions

 

 

 

 

 

37,433

 

Payment of offering costs

 

 

(79

)

 

 

(264

)

Proceeds from the issuance of debt

 

 

45,000

 

 

 

 

Payment of debt issuance costs

 

 

(93

)

 

 

 

Proceeds from the issuance of common stock in connection with the exercise of the put option, net of financing costs

 

 

49,915

 

 

 

 

Proceeds from stock options exercised

 

 

5,810

 

 

 

1,739

 

Issuance of shares under employee stock purchase plan

 

 

646

 

 

 

360

 

Net cash provided by financing activities

 

 

101,199

 

 

 

162,260

 

Net increase in cash, cash equivalents and restricted cash

 

 

(22,330

)

 

 

(40,739

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

140,991

 

 

 

87,133

 

Cash, cash equivalents and restricted cash, end of period

 

$

118,661

 

 

$

46,394

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$

 

 

$

45

 

Interest paid

 

$

2,182

 

 

$

 

Property and equipment included in accounts payable or accruals

 

$

181

 

 

$

208

 

 

See notes to condensed consolidated financial statements

 

6


 

EPIZYME, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY

(Amounts in thousands, except share amounts)

 

 

 

Common Stock

 

 

Preferred Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income (Loss)

 

 

Equity

 

Balance at December 31, 2018

 

 

79,175,380

 

 

$

8

 

 

 

 

 

$

 

 

$

819,779

 

 

$

(586,724

)

 

$

(54

)

 

$

233,009

 

Issuance of common stock (net of commissions and offering costs of $284)

 

 

11,500,000

 

 

 

1

 

 

 

 

 

 

 

 

 

122,707

 

 

 

 

 

 

 

 

 

122,708

 

Issuance of series A convertible preferred stock, net of commissions and

   beneficial conversion charge

 

 

 

 

 

 

 

 

350,000

 

 

 

34,492

 

 

 

2,940

 

 

 

 

 

 

 

 

 

37,432

 

Accretion of series A convertible preferred stock

 

 

 

 

 

 

 

 

 

 

 

2,940

 

 

 

(2,940

)

 

 

 

 

 

 

 

 

 

Exercise of stock options and vesting of restricted stock units

 

 

89,726

 

 

 

 

 

 

 

 

 

 

 

 

886

 

 

 

 

 

 

 

 

 

886

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,211

 

 

 

 

 

 

 

 

 

3,211

 

Issuance of shares under employee stock purchase plan

 

 

37,972

 

 

 

 

 

 

 

 

 

 

 

360

 

 

 

 

 

 

 

 

 

360

 

Unrealized gain on available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

86

 

 

 

86

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(29,339

)

 

 

 

 

 

(29,339

)

Balance at March 31, 2019

 

 

90,803,078

 

 

$

9

 

 

 

350,000

 

 

$

37,432

 

 

$

946,943

 

 

$

(616,063

)

 

$

32

 

 

$

368,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of stock options and vesting of restricted stock units

 

 

208,749

 

 

 

 

 

 

 

 

 

 

 

 

853

 

 

 

 

 

 

 

 

 

853

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,681

 

 

 

 

 

 

 

 

 

4,681

 

Issuance of shares of common stock in lieu of board fees

 

 

3,812

 

 

 

 

 

 

 

 

 

 

 

 

47

 

 

 

 

 

 

 

 

 

47

 

Unrealized gain on available for sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

216

 

 

 

216

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(48,465

)

 

 

 

 

 

(48,465

)

Balance at June 30, 2019

 

 

91,015,639

 

 

$

9

 

 

 

350,000

 

 

$

37,432

 

 

$

952,524

 

 

$

(664,528

)

 

$

248

 

 

$

325,685