Restructuring and Related Activities

3 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

Restructuring

In November 2021, the Company announced a corporate restructuring intended to prioritize clinical development of select programs, streamline commercial operations, maintain a focus on discovery research, and extend its cash runway. The corporate restructuring included a workforce reduction of approximately 35%, or approximately 140 positions, as well as discontinuation costs such as contract termination fees and non-cancellable commitments related to the rebastinib and ripretinib programs. These amounts will be substantially incurred and paid by the end of 2022.

The Company recognized a one-time charge in the fourth quarter of 2021 of approximately $26.2 million. This charge included approximately $9.8 million of employee-related termination costs and approximately $16.4 million of discontinuation costs such as contract termination fees and non-cancellable commitments related to the rebastinib and ripretinib programs. For the year ended December 31, 2021, approximately $22.2 million and $4.0 million is recognized in research and development expenses and selling, general, and administrative expenses, respectively, on the Company's consolidated statements of operations and comprehensive loss. The restructuring reserve was included in accrued expenses and other in the Company’s consolidated balance sheets.

The following table summarizes the charges and spending related to the Company’s restructuring efforts during 2021:

(in thousands)	Workforce Reduction		Pipeline Programs		Total
Restructuring charges incurred during the fourth quarter of 2021	$	9,835	$	16,335	$	26,170
Amounts previously included in prepaid and other current assets	—		(2,927)		(2,927)
Reserves established	9,835		13,408		23,243
Amounts paid through December 31, 2021	(2,452)		—		(2,452)
Restructuring reserve as of December 31, 2021	$	7,383	$	13,408	$	20,791