BEAM to Reprioritize Portfolio, Slash Jobs, Shares Tank
Beam Therapeutics Inc. BEAM announced strategic restructuring, including the reprioritization of its current portfolio of pipeline candidates, and business operations realignment. The company will focus on the development of its pipeline candidates using gene editing technology.
As part of the reprioritization, BEAM is looking to reduce its current headcount by 20%, which is likely to be completed later in the ongoing quarter. Owing to this, the company expects to incur a one-time cash expenditure related to severance of around $6.6 million in the fourth quarter of 2023.
Importantly, the restructuring and reprioritization efforts are expected to reduce the company’s operating expenses and extend the cash runway into 2026.
Shares of Beam Therapeutics lost 11.7% on Thursday, following the announcement of the news. The stock has plunged 53.1% year to date compared with the industry’s decline of 19.8%.
Image Source: Zacks Investment Research
Following the latest portfolio prioritization, BEAM will mainly focus on the development of its leading ex-vivo genome-editing candidate, BEAM-101, for the treatment of sickle cell disease (SCD). The candidate is currently being evaluated in the phase I/II BEACON study for the given indication, with initial data from the same expected in 2024.
The company will also focus on developing in vivo base editor BEAM-302 for the treatment of alpha-1 antitrypsin deficiency (AATD). BEAM is also looking to initiate a clinical study on BEAM-301 for the treatment of glycogen storage disease 1a (GSD1a) in the United States.
The company has initiated IND-enabling studies for both BEAM-302 and BEAM-301 and plans to submit a regulatory application to begin clinical studies in the first quarter of 2024 and first half of 2024, respectively.
The company is also considering various partnership opportunities for the continued development of its ex vivo CAR-T programs like BEAM-201 and other allogeneic cell therapies.
BEAM-201 is being developed for treating patients with T-cell leukemia and T-cell lymphoblastic lymphoma, a severe disease affecting children and adults, and potentially other CD7+ malignancies.
In the absence of a marketed product, BEAM’s collaboration deals help access capabilities and resources to support the ongoing therapeutic programs.
Beam Therapeutics Inc. Price
Beam Therapeutics Inc. price | Beam Therapeutics Inc. Quote
Zacks Rank & Stocks to Consider
BEAM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare sector are Neurocrine Biosciences, Inc. NBIX, CRISPR Therapeutics AG CRSP and MEI Pharma, Inc. MEIP, sporting a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, 2023 earnings estimates for Neurocrine Biosciences have risen from $2.17 to $2.19. During the same period, estimates for 2024 have risen from $4.77 to $4.86. Year to date, shares of NBIX have lost 7%.
Earnings of Neurocrine Biosciences beat estimates in one of the last four quarters and missed the same on the other three occasions. NBIX delivered a four-quarter negative average earnings surprise of 105.45%.
In the past 60 days, estimates for CRISPR Therapeutics’ 2023 loss per share have improved from $5.11 to $4.66. During the same period, loss per share estimates for 2024 have narrowed from $6.64 to $6.34. Year to date, shares of CRSP have lost 2.1%.
Earnings of CRISPR Therapeutics beat estimates in each of the last four quarters. CRSP delivered a four-quarter average earnings surprise of 39.19%.
In the past 60 days, estimates for MEI Pharma’s 2023 loss per share have improved from $6.54 to $4.89. During the same period, loss per share estimates for 2024 have narrowed from $5.14 to $4.02. Year to date, shares of MEIP have rallied 41.8%.
Earnings of MEI Pharma beat estimates in three of the trailing four quarters and met the same on the other occasion. On average, MEIP came up with an average four-quarter earnings surprise of 53.58%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Beam Therapeutics Inc. (BEAM) : Free Stock Analysis Report
Neurocrine Biosciences, Inc. (NBIX) : Free Stock Analysis Report
MEI Pharma, Inc. (MEIP) : Free Stock Analysis Report
CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report
