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Beam Therapeutics Inc. (BEAM - Free Report) incurred a loss of $1.22 per share in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of $1.37. The company had recorded a loss of $1.56 per share in the year-ago quarter.
Beam’s total revenues, comprising license and collaboration revenues, came in at $17.2 million in the third quarter compared with $15.8 million in the year-ago period. The top line surpassed the Zacks Consensus Estimate of $14 million.
Quarter in Detail
Research and development expenses amounted to $100 million in the third quarter, up almost 17.2% from the year-ago quarter’s level.
General and administrative expenses totaled $25.4 million, increasing around 16.5% year over year.
As of Sep 30, 2023, BEAM had cash, cash equivalents and marketable securities worth $1 billion compared with $1.1 billion as of Jun 30, 2023.
Shares of Beam have plunged 41.1% in the year-to-date period compared with the industry’s 20.9% decline.
Image Source: Zacks Investment Research
Management believes that its cash balance of $1 billion (as of September 2023-end), along with payments and investment proceeds from Eli Lilly (LLY - Free Report) , is enough to fund operations through the second half of 2026.
Per the earning press release, in October 2023, Beam announced that Lilly acquired certain rights under Beam’s amended collaboration agreement with Verve Therapeutics, including Beam’s opt-in rights to co-develop Verve’s base editing programs for cardiovascular disease.
Following this, Beam received an upfront payment of $200 as well as a $50 million equity investment from LLY. BEAM is also eligible to receive potential development milestone payments of $350 million from Lilly.
Also, last month, Beam announced a strategic restructuring to streamline its current portfolio of pipeline candidates and business operations.
Owing to the restructuring, BEAM is planning to reduce its current headcount by 20%. As a result, the company expects to incur a one-time cash expenditure related to severance of around $6.6 million later in the fourth quarter of 2023.
Beam is developing its leading ex-vivo genome-editing candidate, BEAM-101, for the treatment of sickle cell disease (SCD). Following portfolio prioritization, BEAM will mainly focus on the development of BEAM-101.
The candidate is currently being evaluated in the phase I/II BEACON study for treating SCD, with the first patient likely to be treated by 2023-end. Initial data from the study is expected in 2024.
This apart, Beam is also developing in vivo base editor BEAM-302 for the treatment of alpha-1 antitrypsin deficiency. Regulatory applications to begin clinical studies on BEAM-302 in ex-U.S. markets are expected to be filed in the first quarter of 2024. The company will file an investigational new drug (IND) application with the FDA to begin clinical studies on BEAM-302 in the United States soon after.
Meanwhile, the company is looking to initiate a clinical study on BEAM-301 for the treatment of glycogen storage disease 1a in the United States. An IND application for BEAM-301 is expected to be filed in the first half of 2024.
Beam is evaluating BEAM-201 in a phase I/II study for treating patients with T-cell leukemia and T-cell lymphoblastic lymphoma, a severe disease affecting children and adults, and potentially other CD7+ malignancies. Initial data from the same is anticipated in 2024.
Beam Therapeutics Inc. Price, Consensus and EPS Surprise
In the past 60 days, estimates for Dynavax Technologies’ 2023 loss per share have narrowed from 24 cents to 12 cents. Meanwhile, during the same period, earnings per share estimates for 2024 have improved from 2 cents to 18 cents. Year to date, shares of DVAX have rallied 24.8%.
Earnings of Dynavax Technologies beat estimates in two of the last three quarters while missing the same on the remaining two occasions. DVAX delivered a four-quarter average earnings surprise of 24.28%.
In the past 60 days, Ligand Pharmaceuticals’ earnings per share estimates for 2023 have improved from $4.98 to $5.10. During the same period, earnings per share estimates for 2024 have moved up from $4.26 to $4.59. Year to date, shares of LGND have lost 21.8%.
Earnings of Ligand Pharmaceuticals beat estimates in three of the trailing four quarters and missed the same on the other occasion. On average, LGND came up with a four-quarter earnings surprise of 52.47%.
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Beam Therapeutics (BEAM) Q3 Earnings & Revenues Beat Estimates
Beam Therapeutics Inc. (BEAM - Free Report) incurred a loss of $1.22 per share in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of $1.37. The company had recorded a loss of $1.56 per share in the year-ago quarter.
Beam’s total revenues, comprising license and collaboration revenues, came in at $17.2 million in the third quarter compared with $15.8 million in the year-ago period. The top line surpassed the Zacks Consensus Estimate of $14 million.
Quarter in Detail
Research and development expenses amounted to $100 million in the third quarter, up almost 17.2% from the year-ago quarter’s level.
General and administrative expenses totaled $25.4 million, increasing around 16.5% year over year.
As of Sep 30, 2023, BEAM had cash, cash equivalents and marketable securities worth $1 billion compared with $1.1 billion as of Jun 30, 2023.
Shares of Beam have plunged 41.1% in the year-to-date period compared with the industry’s 20.9% decline.
Management believes that its cash balance of $1 billion (as of September 2023-end), along with payments and investment proceeds from Eli Lilly (LLY - Free Report) , is enough to fund operations through the second half of 2026.
Per the earning press release, in October 2023, Beam announced that Lilly acquired certain rights under Beam’s amended collaboration agreement with Verve Therapeutics, including Beam’s opt-in rights to co-develop Verve’s base editing programs for cardiovascular disease.
Following this, Beam received an upfront payment of $200 as well as a $50 million equity investment from LLY. BEAM is also eligible to receive potential development milestone payments of $350 million from Lilly.
Also, last month, Beam announced a strategic restructuring to streamline its current portfolio of pipeline candidates and business operations.
Owing to the restructuring, BEAM is planning to reduce its current headcount by 20%. As a result, the company expects to incur a one-time cash expenditure related to severance of around $6.6 million later in the fourth quarter of 2023.
Beam is developing its leading ex-vivo genome-editing candidate, BEAM-101, for the treatment of sickle cell disease (SCD). Following portfolio prioritization, BEAM will mainly focus on the development of BEAM-101.
The candidate is currently being evaluated in the phase I/II BEACON study for treating SCD, with the first patient likely to be treated by 2023-end. Initial data from the study is expected in 2024.
This apart, Beam is also developing in vivo base editor BEAM-302 for the treatment of alpha-1 antitrypsin deficiency. Regulatory applications to begin clinical studies on BEAM-302 in ex-U.S. markets are expected to be filed in the first quarter of 2024. The company will file an investigational new drug (IND) application with the FDA to begin clinical studies on BEAM-302 in the United States soon after.
Meanwhile, the company is looking to initiate a clinical study on BEAM-301 for the treatment of glycogen storage disease 1a in the United States. An IND application for BEAM-301 is expected to be filed in the first half of 2024.
Beam is evaluating BEAM-201 in a phase I/II study for treating patients with T-cell leukemia and T-cell lymphoblastic lymphoma, a severe disease affecting children and adults, and potentially other CD7+ malignancies. Initial data from the same is anticipated in 2024.
Beam Therapeutics Inc. Price, Consensus and EPS Surprise
Beam Therapeutics Inc. price-consensus-eps-surprise-chart | Beam Therapeutics Inc. Quote
Zacks Rank & Other Stocks to Consider
Beam currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the healthcare sector are Dynavax Technologies Corporation (DVAX - Free Report) and Ligand Pharmaceuticals Incorporated (LGND - Free Report) , 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, estimates for Dynavax Technologies’ 2023 loss per share have narrowed from 24 cents to 12 cents. Meanwhile, during the same period, earnings per share estimates for 2024 have improved from 2 cents to 18 cents. Year to date, shares of DVAX have rallied 24.8%.
Earnings of Dynavax Technologies beat estimates in two of the last three quarters while missing the same on the remaining two occasions. DVAX delivered a four-quarter average earnings surprise of 24.28%.
In the past 60 days, Ligand Pharmaceuticals’ earnings per share estimates for 2023 have improved from $4.98 to $5.10. During the same period, earnings per share estimates for 2024 have moved up from $4.26 to $4.59. Year to date, shares of LGND have lost 21.8%.
Earnings of Ligand Pharmaceuticals beat estimates in three of the trailing four quarters and missed the same on the other occasion. On average, LGND came up with a four-quarter earnings surprise of 52.47%.