Beam Therapeutics Reports Wider Losses and Lower Revenues in Q3 2024

Beam Therapeutics Inc. (BEAM - Free Report) reported a loss of $1.17 per share for the third quarter of 2024, which was larger than the Zacks Consensus Estimate, which predicted a loss of $1.13. In comparison, the company had a loss of $1.22 per share during the same quarter last year.

In terms of revenue, Beam generated a total of $14.3 million in the third quarter, down from $17.2 million in the same quarter of the previous year. This revenue figure also fell short of analysts' expectations, which had estimated revenues of $15 million.

Overview of Beam's Q3 Performance

The research and development (R&D) expenses for Beam Therapeutics were $94.3 million during the third quarter, reflecting a decrease of nearly 5.8% compared to the previous year's figures. However, general and administrative expenses increased by about 4.3% year over year, totaling $26.5 million.

As of September 30, 2024, Beam had cash, cash equivalents, and marketable securities amounting to $925.8 million, down from $1.2 billion as of June 30, 2024. The company indicated that its current cash reserves are expected to fund operations through 2027.

This year, Beam's shares have decreased by 12%, compared to a smaller decline of 3.8% in the broader industry.

Pipeline Developments at Beam

Beam is focusing on its leading ex-vivo genome-editing candidate, BEAM-101, which is currently in the phase I/II BEACON study targeting adult patients with sickle cell disease (SCD). More than 35 patients have been enrolled in the study, with eight patients already receiving treatment with BEAM-101.

During the earnings conference call, management noted that initial findings from the BEACON study indicate that BEAM-101 may show significant clinical differentiation compared to existing SCD therapies. Preliminary data as of July 2, 2024, suggested that the safety profile of BEAM-101 aligns with conventional busulfan conditioning and autologous hematopoietic stem cell transplantation.

Despite these positive indications, it was reported that one patient passed away four months post-treatment due to respiratory failure. However, after reviewing the case, the FDA and the Data Safety Monitoring Committee found that the death was likely associated with busulfan conditioning, rather than BEAM-101.

This insight may have positively influenced investor sentiment, leading to an increase in the stock price during pre-market trading on November 6.

Moreover, detailed data from this study is expected to be shared at a scientific conference later in 2024. Beam is also progressing in its genetic disease pipeline with the development of BEAM-301 and BEAM-302. The company has successfully completed the dosing of the first cohort in a phase I/II study for BEAM-302, which is intended for treating alpha-1 antitrypsin deficiency. Initial clinical data from this study is anticipated in 2025.

Additionally, Beam is preparing for the activation of sites for the phase I/II study involving BEAM-301, which is an investigational in vivo base editing medicine aimed at treating glycogen storage disease Type Ia. Patient dosing is projected to commence in 2025 in the United States.

Beam’s Stock Position and Comparisons

Currently, Beam Therapeutics holds a Zacks Rank of #3 (Hold). In contrast, some higher-ranked stocks within the biotech sector include CRISPR Therapeutics AG, Atea Pharmaceuticals, Inc., and Amicus Therapeutics, Inc., each of which carries a Zacks Rank of #2 (Buy).

In the past two months, the loss per share estimates for CRISPR Therapeutics in 2024 have slightly improved from $5.58 to $5.55, with a decrease in estimates from $4.98 to $4.94 for 2025. Shares of CRSP have dropped 19.5% year to date.

Atea’s loss per share estimates for 2024 have decreased from $2.55 to $2.22, and from $2.58 to $1.80 for 2025, with shares having appreciated by 9.8% so far this year.

For Amicus, earnings per share estimates for 2024 have slightly increased from 21 cents to 22 cents and from 50 cents to 53 cents for 2025. The stock has seen a decline of 17.2% year to date.

Earnings, Revenues, Stock, Healthcare