Editas Medicine(US:EDIT)2023-02-21 16:00Financial Performance - The company reported net losses of $220.4 million, $192.5 million, and $116.0 million for the years ended December 31, 2022, 2021, and 2020, respectively, with an accumulated deficit of $1.1 billion as of December 31, 2022[559]. - The net loss for the year ended December 31, 2022, was $(220,432) thousand, an increase of 15% from $(192,502) thousand for the year ended December 31, 2021[580]. - Net loss for 2022 was $220,432,000, compared to a net loss of $192,502,000 in 2021, reflecting an increase in loss of about 14.5%[628]. - The company reported a comprehensive loss of $223,540,000 in 2022, compared to $192,949,000 in 2021, an increase of about 15.8%[631]. - Net loss per share, basic and diluted, increased from $(2.85) in 2021 to $(3.21) in 2022[628]. Revenue Generation - The company has not generated any revenue from product sales and does not expect to do so for the foreseeable future, having recognized $18.8 million in revenue related to its collaboration with BMS in 2022[562]. - Collaboration and other research and development revenues decreased by $5.8 million, to $19.7 million for the year ended December 31, 2022, from $25.5 million for the year ended December 31, 2021, primarily due to fewer programs licensed under the collaboration with BMS[582]. - The Company recognized $18.8 million, $24.7 million, and $11.3 million of revenue related to BMS for the years ended December 31, 2022, 2021, and 2020, respectively[740]. - No revenue was recognized related to Allergan for the years ended December 31, 2021 and 2022[747]. Expenses and Costs - The company anticipates significant increases in research and development expenses as it progresses its clinical trials and preclinical studies for other research programs[568]. - Research and development expenses increased by $32.5 million, to $175.0 million for the year ended December 31, 2022, from $142.5 million for the year ended December 31, 2021, with external research and development expenses rising by 48%[583]. - General and administrative expenses decreased by approximately $5.5 million, to $70.7 million for the year ended December 31, 2022, from $76.2 million for the year ended December 31, 2021, primarily due to decreased stock-based compensation expenses[584]. - The company expects general and administrative expenses to increase as it supports continued research and development activities and potential commercialization of product candidates[570]. Cash Flow and Liquidity - As of December 31, 2022, the company had cash, cash equivalents, and marketable securities of $437.4 million, with an aggregate of $898.0 million raised through public offerings[587]. - Net cash used in operating activities was $(177,349) thousand for the year ended December 31, 2022, compared to $(163,803) thousand for the year ended December 31, 2021[591]. - The company expects its existing cash, cash equivalents, and marketable securities as of December 31, 2022, to fund operations into 2025, but acknowledges significant risks and uncertainties in this forecast[600]. - The company anticipates increased expenses related to the clinical development of EDIT-301 and other research programs, necessitating substantial additional funding to support ongoing operations[599]. - Cash, cash equivalents, and restricted cash decreased from $207,396,000 at the end of 2021 to $145,399,000 at the end of 2022, a decline of approximately 30%[636]. Collaborations and Agreements - The company has received an aggregate of $130.0 million in payments from its collaboration with BMS, which includes initial upfront and milestone payments[562]. - The total transaction price for the BMS Collaboration Agreement as of December 31, 2022, was approximately $117.5 million, including a $70.0 million Amendment Fee[738]. - The Company is obligated to make payments up to $20.0 million for each target program and aggregated sales milestones up to $90.0 million under the Termination Agreements with Allergan[743]. - The Company is required to pay a mid single-digit percentage royalty on net sales of licensed products, with the obligation expiring upon the later of patent expiration or the tenth anniversary of the first commercial sale[724]. Assets and Liabilities - Total assets decreased from $677,483,000 in 2021 to $514,321,000 in 2022, a decline of approximately 24.1%[625]. - Total liabilities increased from $123,841,000 in 2021 to $153,641,000 in 2022, an increase of about 24.1%[625]. - Stockholders' equity decreased from $553,642,000 in 2021 to $360,680,000 in 2022, a decline of approximately 34.8%[625]. Clinical Trials and Research Programs - The company is on track to dose a total of 20 patients in the RUBY trial for its lead program, EDIT-301, by the end of 2023, with clinical updates expected in mid-2023 and at the end of 2023[552]. - The company has paused patient enrollment in its EDIT-101 program due to the small identified responder patient population[555]. - The company has achieved human proof of concept for its EDIT-101 program for inherited retinal diseases but has not identified a viable responder patient population[555]. Market Risks and Future Outlook - The company is exposed to market risk related to changes in interest rates, with cash and cash equivalents of $141.5 million and marketable securities of $295.8 million as of December 31, 2022[607]. - The company does not expect to generate significant recurring revenue until it obtains regulatory approval for and commercializes a product candidate[599]. - The company may need to rely on equity offerings, debt financings, and collaborations to finance its cash needs, which could dilute stockholder ownership[603].