Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Reduction in Force

On April 4, 2022, the Board of Directors of the Company approved a reduction of the Company’s workforce by approximately 42% across all areas of the Company (47% inclusive of the closing of the majority of open positions) following the receipt of a CRL from the FDA to the Company’s NDA for vadadustat for the treatment of anemia due to CKD in adult patients. This

workforce reduction will be substantially completed by the end of the second quarter of 2022. On May 5, 2022, the Company implemented a further reduction in workforce consisting of several members of management. This workforce reduction is expected to be substantially complete by the end of January 2023. These actions reflect the Company’s determination to refocus its strategic priorities around its commercial product, Auryxia®, and its development portfolio, and are steps in a cost savings plan to significantly reduce the Company’s expense profile in line with being a single commercial product company. The Company plans to seek to effect additional measures to further reduce its operating expenses and increase revenue from Auryxia.

Affected employees in the workforce reductions were offered separation benefits, including severance payments, healthcare coverage and related benefits. The Company expects to record restructuring charges of approximately $16.5 million in the aggregate primarily related to one-time termination benefits and contractual termination benefits including severance, non-cash stock-based compensation expense, healthcare and related benefits primarily in the second quarter of 2022. The Company may incur additional costs not currently contemplated due to events associated with or resulting from the workforce reduction. The charge that the Company expects to incur in connection with the workforce reductions is an estimate and is subject to a number of assumptions, and actual results may differ materially.

At-the-Market Facility Agreement

On April 7, 2022, the Company entered into an Open Market Sale AgreementSM, or the sales agreement, with Jefferies LLC, or Jefferies, as agent, for the offer and sale of common stock at current market prices in amounts to be determined from time to time. Also, on April 7, 2022, the Company filed a prospectus supplement relating to the sales agreement, pursuant to which it is able to offer and sell under the sales agreement up to $26.0 million of its common stock at current market prices from time to time. From the date of filing of the prospectus supplement through the date of the filing of this Quarterly Report on Form 10-Q, the Company has not sold any shares of its common stock under this program.