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Beam Therapeutics Takes $155M In-Process R&D Expense Hit To Bottomline, But Receives Buy Rating From Redburn Partners

05/11/2021 12:16
  • Beam Therapeutics Inc (NASDAQ: BEAMreported a wider Q1 net loss of $201.6 million compared to $31.7 million a year ago, on higher R&D costs of $190.1 million, up from $21.5 million in Q1 2020.
  • It includes $155 million of expense related to in-process research and development acquired from Guide Therapeutics Inc in February this year.
  • Beam ended Q1 with cash and equivalents of $503.5 million.
  • The company also presented data at ASGCT on its proprietary lipid nanoparticle (LNP) formulation showing efficient in vivo base editing in hepatocytes of non-human primates (NHPs).
  • Beam evaluated various LNP formulations and mRNA production processes to improve in vivo editing in the livers of NHPs from less than 10% initially to 52% at a total RNA dose of 1.5 mg/kg.
  • These formulations were also well tolerated by NHPs at 1.5 mg/kg with mild and transient liver enzyme elevations.
  • Initial data also demonstrated the stability of LNPs at -20 degrees Celsius after 8 weeks.
  • "These data demonstrate that our LNPs are well tolerated in NHPs and can achieve levels of editing of hepatocytes that we expect would be therapeutic for many genetic diseases," said Giuseppe Ciaramella, President & Chief Scientific Officer.
  • The company said that it is on track to submit an Investigational New Drug application for BEAM-101 and initiate IND-enabling studies for BEAM-102 and BEAM-201 and nominate the first development candidate from the liver portfolio in the second half of 2021.
  • Redburn Partners INITIATED COVERAGE on Beam Therapeutics with a 'Buy' rating.
  • Price Action: BEAM shares are up 8.69% at $69.7 on the last check Tuesday.