Beam Therapeutics Inc (NASDAQ:BEAM) Q3 2024 Earnings Conference Call November 5, 2024 8:30 AM ET Company Participants Holly Manning - Vice President of Investor Relations & External Communications John Evans - Chief Executive Officer Giuseppe Ciaramella - President Amy Simon - Chief Medical Officer Conference Call Participants Gena Wang - Barclays Dae Gon Ha - Stifel Eric Joseph - JPMorgan Kostas Biliouris - BMO Capital Markets Samantha Semenkow - Citi Sami Corwin - William Blair Luca Issi - RBC Capital Mic ...

Clinical Trials and Programs - BEAM-101 Phase 1/2 clinical trial for sickle cell disease has enrolled 35 patients, with 8 dosed and 7 expected to present additional data at ASH[81][82] - BEAM-101 demonstrated rapid and robust HbF induction (>60%) and HbS reduction (≤36%) in non-transfused blood for patients with at least one month of follow-up[81] - ESCAPE program aims to reduce toxicity in HSCT with BEAM-103 and BEAM-104, with Phase 1-enabling preclinical studies anticipated by end of 2024[83] - Preclinical data for ESCAPE in non-human primates showed robust long-term engraftment and high HbF expression, with additional data expected at ASH[83] - BEAM-302 Phase 1/2 trial for AATD has completed dosing of the first cohort, with initial clinical data expected in 2025[86] - BEAM-201 Phase 1/2 trial for T-cell malignancies showed complete responses in 2 of 3 patients at CAR-T cell doses >200 million, with additional data expected at ASH[90] Collaborations and Partnerships - The company entered into a four-year research collaboration with Pfizer in December 2021, focusing on in vivo base editing programs for three targets related to rare genetic diseases of the liver, muscle, and central nervous system[93] - Under the Pfizer collaboration, the company has the right to opt into a global co-development and co-commercialization agreement for one program, sharing net profits and costs with Pfizer in a 35%/65% ratio[93] - In October 2023, the company received a $200.0 million payment from Eli Lilly and is eligible for up to $350.0 million in future development-stage payments under the Lilly Agreement[95] - The company sold 2,004,811 shares of common stock to Eli Lilly at $24.94 per share, totaling approximately $50 million, representing a 15% premium to the 30-day volume-weighted average price[96] Financial Performance and Expenses - The company's net losses for the nine months ended September 30, 2024, were $286.4 million, compared to $275.3 million for the same period in 2023[102] - As of September 30, 2024, the company had an accumulated deficit of $1.5 billion[102] - The company recognized $33.5 million in license and collaboration revenue for the nine months ended September 30, 2024, compared to $61.5 million for the same period in 2023[103] - The company expects research and development expenses to increase substantially as it advances programs through preclinical and clinical development[106] - The company anticipates increased general and administrative expenses to support expanded research and development activities and public company compliance costs[107] - License and collaboration revenue decreased by $2.9 million to $14.3 million in Q3 2024 compared to $17.2 million in Q3 2023, driven by lower research activities[109] - Research and development expenses decreased by $5.8 million to $94.3 million in Q3 2024, primarily due to a $7.0 million reduction in external R&D expenses and a $2.3 million decrease in employee-related costs[110] - General and administrative expenses increased by $1.1 million to $26.5 million in Q3 2024, mainly due to a $1.7 million rise in employee-related costs and a $0.6 million increase in stock-based compensation[112] - Net loss for Q3 2024 was $96.7 million, slightly higher than the $96.1 million loss in Q3 2023[109] - License and collaboration revenue for the nine months ended September 30, 2024, was $33.5 million, down $28.1 million from $61.5 million in the same period in 2023[113] - Research and development expenses for the nine months ended September 30, 2024, decreased by $31.2 million to $266.1 million, driven by a $35.8 million reduction in external R&D expenses[114] - General and administrative expenses for the nine months ended September 30, 2024, increased by $9.3 million to $82.9 million, primarily due to a $4.6 million rise in stock-based compensation and a $3.5 million increase in personnel-related expenses[115] - Net loss for the nine months ended September 30, 2024, was $286.4 million, compared to $275.3 million in the same period in 2023[113] - Interest and other income for the nine months ended September 30, 2024, increased by $3.6 million to $38.2 million, driven by higher market rates[116] - The fair value of non-controlling equity investments resulted in a $13.0 million expense for the nine months ended September 30, 2024, compared to a $17.9 million expense in the same period in 2023[116] Revenue and Funding - The company's revenue to date has been primarily derived from license and collaboration agreements, with no revenue from product sales expected in the near future[103] - Company has not generated any revenue from product sales since inception in January 2017 and expects significant operating losses for the foreseeable future[117] - Company sold 10,860,992 shares of common stock under amended Sales Agreement at an average price of $51.93 per share for aggregate gross proceeds of $564.0 million[117] - Company received $200.0 million upfront payment from Lilly Agreement and is eligible for up to $350.0 million in potential future development-stage payments[117] - Company had $925.8 million in cash, cash equivalents, and marketable securities as of September 30, 2024[117] - Net cash used in operating activities for the nine months ended September 30, 2024 was $270.9 million, including a net loss of $286.4 million[120] - Cash provided by investing activities for the nine months ended September 30, 2024 was $58.7 million, primarily from net maturities of marketable securities[120] - Net cash provided by financing activities for the nine months ended September 30, 2024 was $4.3 million, mainly from proceeds from the issuance of common stock[120] - Company expects operating expenses to increase over the next twelve months due to clinical-stage development and biologics license application readiness activities[121] - Company's cash, cash equivalents, and marketable securities as of September 30, 2024 are expected to fund operations for at least the next 12 months[122] - Aggregate future minimum commitments under office and laboratory leases as of September 30, 2024 are $231.5 million[124] Manufacturing and Facilities - Company established a 100,000 square foot manufacturing facility in Research Triangle Park, NC, supporting clinical programs and potential commercial supply[91]

Beam Therapeutics Inc. (BEAM) came out with a quarterly loss of $1.17 per share versus the Zacks Consensus Estimate of a loss of $1.13. This compares to loss of $1.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.54%. A quarter ago, it was expected that this company would post a loss of $1.13 per share when it actually produced a loss of $1.11, delivering a surprise of 1.77%.Over the last four quarters, the company has su ...

Financial Performance - Cash, cash equivalents, and marketable securities totaled $925.8 million as of September 30, 2024, down from $1.2 billion as of December 31, 2023[3] - Research and Development (R&D) expenses were $94.3 million for Q3 2024, a decrease of 5.8% from $100.1 million in Q3 2023[3] - General and Administrative (G&A) expenses increased to $26.5 million in Q3 2024, compared to $25.4 million in Q3 2023[3] - The net loss for Q3 2024 was $96.7 million, or $1.17 per share, compared to a net loss of $96.1 million, or $1.22 per share, in Q3 2023[3] - The company expects its cash position to fund operations into 2027, supporting key milestones for multiple programs[4] Clinical Trials and Developments - A total of 35 patients have been enrolled in the BEACON Phase 1/2 trial of BEAM-101, with eight patients dosed[1] - The first cohort dosing for the BEAM-302 trial in alpha-1 antitrypsin deficiency has been completed, with initial clinical data expected in 2025[1] - Beam anticipates initiating Phase 1-enabling preclinical studies for ESCAPE by the end of 2024[2] - Beam has nominated BEAM-103 and BEAM-104 as development candidates for its ESCAPE technology, targeting sickle cell disease and beta-thalassemia[1] - The company will present additional data from the BEACON trial and ESCAPE at the ASH Annual Meeting in December 2024[2]

Initial Clinical Data for BEAM-101 and Preclinical Non-human Primate Data for ESCAPE Accepted for Presentation at American Society of Hematology (ASH) Annual Meeting 35 Patients Enrolled and Eight Patients Dosed in BEACON Phase 1/2 Trial of BEAM-101 in Sickle Cell Disease First Cohort Dosing Completed in Phase 1/2 Trial of BEAM-302 in Alpha-1 Antitrypsin Deficiency; Initial Clinical Data Expected in 2025 Ended Third Quarter 2024 with $925.8 Million in Cash, Cash Equivalents and Marketable Securities; Expect ...

It has been about a month since the last earnings report for Beam Therapeutics Inc. (BEAM) . Shares have lost about 1.6% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Beam Therapeutics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Beam Therapeutics Q2 Earning ...

Beam Therapeutics Inc. (BEAM) incurred a loss of $1.11 per share in the second quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of $1.13. The company had recorded a loss of $1.08 per share in the year-ago quarter. Total revenues, comprising license and collaboration revenues, came in at $11.7 million in the second quarter compared with $20.1 million reported in the year-ago period. The top line missed the Zacks Consensus Estimate of $14 million. Quarter in Detail Research and developmen ...

PART I Financial Information [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q2 and H1 2024 financial statements show decreased assets, net losses, and $1.0 billion in cash and equivalents [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $292,763 | $435,895 | | Marketable securities | $715,402 | $753,981 | | **Total Current Assets** | **$1,029,440** | **$1,211,043** | | **Total Assets** | **$1,261,266** | **$1,459,714** | | **Liabilities & Equity** | | | | Total Current Liabilities | $177,333 | $205,565 | | **Total Liabilities** | **$407,172** | **$478,385** | | **Total Stockholders' Equity** | **$854,094** | **$981,329** | [Condensed Consolidated Statements of Operations and Other Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Other%20Comprehensive%20Loss) Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | License and collaboration revenue | $11,772 | $20,116 | $19,182 | $44,324 | | Research and development | $87,041 | $97,608 | $171,859 | $197,254 | | General and administrative | $29,626 | $24,656 | $56,350 | $48,146 | | Loss from operations | ($104,895) | ($102,148) | ($209,027) | ($201,076) | | **Net loss** | **($91,051)** | **($82,776)** | **($189,720)** | **($179,236)** | | **Net loss per common share** | **($1.11)** | **($1.08)** | **($2.31)** | **($2.41)** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($182,756) | ($194,484) | | Net cash provided by (used in) investing activities | $34,029 | ($16,029) | | Net cash provided by financing activities | $3,030 | $205,958 | | **Net change in cash, cash equivalents and restricted cash** | **($145,697)** | **($4,555)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company expects its cash, cash equivalents, and marketable securities of **$1.0 billion** as of June 30, 2024, will be sufficient to fund operations for at least the next 12 months[17](index=17&type=chunk) - On July 19, 2024, the company entered into a settlement agreement with a research institution, agreeing to an upfront payment of **$15.0 million** and future success payments. As of June 30, 2024, a liability of **$20.2 million** was accrued for this matter[35](index=35&type=chunk) - The company has accrued approximately **$21.6 million** of contingent obligations that may be due to licensors associated with payments received under the Lilly Agreement, with discussions ongoing[36](index=36&type=chunk) - Under agreements with Harvard and Broad Institute, the company may owe up to an additional **$90.0 million** each in success payments. As of June 30, 2024, the fair value of these liabilities was **$3.9 million** for Harvard and **$4.3 million** for Broad Institute[37](index=37&type=chunk)[39](index=39&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses base editing technology, clinical program updates, H1 2024 net loss, and a 12-month cash runway [Overview](index=32&type=section&id=Overview) - Beam is a biotechnology company focused on creating precision genetic medicines using its proprietary base editing technology, which targets a single base in the genome without making a double-stranded DNA break[61](index=61&type=chunk) - The company is advancing a multi-wave strategy for hematological diseases, starting with ex vivo editing (BEAM-101), followed by improved non-genotoxic conditioning (ESCAPE program), and ultimately in vivo editing via HSC-targeted LNPs[62](index=62&type=chunk) - Key clinical program updates: - **BEAM-101 (Sickle Cell):** All three patients in the sentinel cohort of the BEACON trial have been dosed and achieved engraftment. Data from sentinel and expansion cohorts are expected in Q4 2024[64](index=64&type=chunk) - **BEAM-302 (AATD):** The first patient was dosed in the Phase 1/2 trial in June 2024, with initial clinical data expected in 2025[67](index=67&type=chunk) - **BEAM-301 (GSD1a):** Received FDA clearance for its IND in July 2024; patient dosing is expected to start in early 2025[68](index=68&type=chunk) - **BEAM-201 (T-cell Leukemia):** Multiple patients have been dosed in the Phase 1/2 trial, with an initial clinical dataset expected in Q4 2024[69](index=69&type=chunk) - The company's 100,000 sq. ft. cGMP manufacturing facility in North Carolina initiated operations in late 2023 to support clinical programs[70](index=70&type=chunk) [Results of operations](index=41&type=section&id=Results%20of%20operations) Comparison of Results of Operations (in thousands) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | License and collaboration revenue | $11,772 | $20,116 | $19,182 | $44,324 | | Research and development | $87,041 | $97,608 | $171,859 | $197,254 | | General and administrative | $29,626 | $24,656 | $56,350 | $48,146 | | **Net loss** | **($91,051)** | **($82,776)** | **($189,720)** | **($179,236)** | - License and collaboration revenue decreased by **$8.3 million** for Q2 2024 and **$25.1 million** for H1 2024 compared to the same periods in 2023, primarily due to a lower level of research activities on collaboration programs[84](index=84&type=chunk)[88](index=88&type=chunk) - Research and development expenses decreased by **$10.6 million** for Q2 2024 and **$25.4 million** for H1 2024 compared to the prior year periods. This was mainly driven by reduced external R&D expenses and employee costs following strategic reprioritization, partially offset by increased clinical activities for BEAM-101 and BEAM-302[85](index=85&type=chunk)[90](index=90&type=chunk) - General and administrative expenses increased by **$5.0 million** for Q2 2024 and **$8.2 million** for H1 2024 compared to the prior year periods, primarily due to higher stock-based compensation, employee-related costs, and legal fees[87](index=87&type=chunk)[90](index=90&type=chunk) [Liquidity and capital resources](index=46&type=section&id=Liquidity%20and%20capital%20resources) - As of June 30, 2024, the company had **$1.0 billion** in cash, cash equivalents, and marketable securities[92](index=92&type=chunk) - The company believes its current cash position is sufficient to fund operating expenses and capital expenditures for at least the next 12 months from the financial statement issuance date[98](index=98&type=chunk) - The company utilizes an At-The-Market (ATM) sales agreement, which was amended to allow for the sale of up to an additional **$800.0 million** in common stock. As of June 30, 2024, the company has sold shares for aggregate gross proceeds of **$564.0 million** under the amended agreement[92](index=92&type=chunk) - In October 2023, the company received a **$200.0 million** upfront payment from Eli Lilly and sold **$50.0 million** of common stock to Lilly in a concurrent private placement[92](index=92&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate sensitivity on its $1.0 billion investment portfolio, with no material impact expected from rate changes - The company's primary market risk exposure is to interest rate changes on its **$1.0 billion** in cash, cash equivalents, and marketable securities[101](index=101&type=chunk) - Management believes an immediate **10%** change in interest rates would not materially affect the fair market value of its investment portfolio due to its short-term duration[101](index=101&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2024, with no material changes to internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2024[102](index=102&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2024, that have materially affected, or are reasonably likely to materially affect, internal controls[103](index=103&type=chunk) PART II Other Information [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings - As of the filing date, the company is not subject to any material legal proceedings[104](index=104&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) The report refers to the Risk Factors section in the company's 2023 Form 10-K for a detailed discussion of potential risks - The report refers to the Risk Factors section in the company's 2023 Form 10-K for a detailed discussion of potential risks[105](index=105&type=chunk) [Item 5. Other Information](index=53&type=section&id=Item%205.%20Other%20Information) The company announced a new Treasurer and principal accounting officer, and disclosed Rule 10b5-1 trading plans by its CEO and President - Bethany Cavanagh, SVP of Finance, was appointed as Treasurer and principal accounting officer, effective upon the resignation of CFO Terry-Ann Burrell on August 9, 2024[106](index=106&type=chunk) - CEO John Evans adopted a Rule 10b5-1 trading plan on June 14, 2024, for the potential sale of up to **200,000 shares**[108](index=108&type=chunk) - President Giuseppe Ciaramella adopted a Rule 10b5-1 trading plan on June 28, 2024, for the potential sale of up to **102,220 shares**[108](index=108&type=chunk) [Item 6. Exhibits](index=55&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, agreement amendments, and officer certifications

Beam Therapeutics Inc. (BEAM) came out with a quarterly loss of $1.11 per share versus the Zacks Consensus Estimate of a loss of $1.13. This compares to loss of $1.08 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 1.77%. A quarter ago, it was expected that this company would post a loss of $1.45 per share when it actually produced a loss of $1.21, delivering a surprise of 16.55%. Over the last four quarters, the company has ...

Exhibit 99.1 Beam Therapeutics Reports Pipeline Updates and Second Quarter 2024 Financial Results U.S. Food and Drug Administration Cleared Investigational New Drug (IND) Application for BEAM-301 in Glycogen Storage Disease Type Ia (GSDIa) More than 20 Patients Enrolled and Six Patients Dosed in BEACON Phase 1/2 Trial of BEAM-101 in Severe Sickle Cell Disease Initial Clinical Data for BEAM-101 and Preclinical Non-human Primate Data for ESCAPE Submitted for Presentation at the American Society of Hematology ...