Subsequent Events

3 Months Ended

Mar. 31, 2017

Disclosure Text Block

Subsequent Events

11. Subsequent Events

Follow-On Public Offering

On April 4, 2017, the Company closed the April 2017 follow-on public offering and received net proceeds of $215.6 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company.

Lease Agreement

On April 28, 2017, the Company entered into a lease agreement (the Lease Agreement) with UP 45/75 Sidney Street, LLC (Landlord) for approximately 99,833 rentable square feet of office and laboratory space located at 45 Sidney Street in Cambridge, Massachusetts. The initial term of the Lease Agreement will be for a 146 month period, which the Company currently anticipates will commence on October 1, 2017. The Lease Agreement also provides the Company with an option to extend the lease for two consecutive five-year periods. During the initial term of the Lease Agreement, the Company’s monthly base rent will start at approximately $641,000 beginning on the commencement date through the 14 month anniversary of the commencement date. The monthly base rent will increase by 3.0% on the 14 month anniversary of the commencement date and will increase by an additional 3.0% on an annual basis for the remainder of the initial term up to a maximum monthly base rent of approximately $887,000. The Landlord has also agreed to provide the Company with a tenant improvement allowance of approximately $14.2 million for improvements to be made to the premises. The Company will be obligated to maintain a security deposit with the Landlord in the amount of $3.5 million, which is subject to reduction by up to $1.0 million during the term of the Lease Agreement, subject to the satisfaction of specified terms and conditions.