COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Manufacturing Agreement In May 2026, the Company entered into a commercial manufacturing services agreement with WuXi Biologics (Hong Kong) Limited (“WuXi”), for the non-exclusive commercial manufacture of the Company’s veligrotug drug substance and drug product (the “WuXi Commercial Supply Agreement”). The WuXi Commercial Supply Agreement has an initial five-year term and automatically renews for successive five-year periods unless either party provides written notice of non-renewal at least two years prior to the expiration of the then-current term. Under the WuXi Commercial Supply Agreement, each month the Company is required to provide WuXi with a rolling forecast schedule detailing batch volume requirements for veligrotug drug substance and drug product. The volume requirements are binding for a period of twelve months with respect to drug substance and nine months with respect to drug product. In addition to service fees, the Company is required to pay variable pass-through costs based on costs incurred by WuXi to procure materials in connection with the manufacturing services. As of June 30, 2026, the Company had outstanding non-cancelable purchase commitments of approximately $14.1 million under the agreement. Indemnification Agreements In the ordinary course of business, the Company may provide indemnification of varying scope and terms to its vendors, lessors, contract research organizations (“CROs”), business partners and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. The Company has not incurred any material costs as a result of such indemnifications and is not currently aware of any indemnification claims. Legal Proceedings The Company, from time to time, may be party to litigation arising in the ordinary course of business. The Company was not subject to any material legal proceedings during the three months ended June 30, 2026 and, to the best of its knowledge, no material legal proceedings are currently pending or threatened. Payments Upon Termination The Company enters into contracts in the normal course of business with CROs, contract development and manufacturing organizations (“CDMOs”) and other third parties for preclinical studies, clinical trials and manufacturing services. These contracts typically do not contain minimum purchase commitments and are generally cancelable by the Company upon written notice. Payments due upon cancellation consist of payments for services provided or expenses incurred, including noncancelable obligations of the Company's service providers, up to the date of cancellation and, in the case of certain arrangements with CROs and CDMOs, may include noncancelable fees. Under such agreements, the exact amounts owed by the Company in the event of termination will be based on the timing of the termination and the exact terms of the agreement. As of June 30, 2026, the Company has not recognized any amounts related to these contingencies as the amount and timing of such payments are not fixed and estimable.
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