Editas Medicine(EDIT) - 2020 Q3 - Quarterly Report

Revenue and Financial Performance - The company has not generated any revenue from product sales and does not expect to do so for the foreseeable future[86] - As of September 30, 2020, the company recorded $96.3 million of deferred revenue, with $79.3 million classified as long-term[86] - The company incurred net losses of $53.5 million and $96.0 million for the nine months ended September 30, 2020 and 2019, respectively, with an accumulated deficit of $602.7 million[83] - The company anticipates continued significant operating losses for the foreseeable future and does not expect to be profitable for the year ending December 31, 2020[83] - Net loss for the nine months ended September 30, 2020, was $53.5 million, a 44% improvement compared to a net loss of $96.0 million for the same period in 2019[113] - Interest income for the nine months ended September 30, 2020, decreased by 58% to $2.4 million compared to $5.7 million in the same period of 2019[113] - Net cash used in operating activities was approximately $139.7 million for the nine months ended September 30, 2020, compared to $81.7 million for the same period in 2019[129] - The company raised an aggregate of $648.7 million in net proceeds through public offerings and at-the-market offerings as of September 30, 2020[126] Research and Development - The company expects significant increases in research and development expenses as it progresses clinical development of EDIT-101 and other programs[95] - The company has initiated a Phase 1/2 clinical trial for EDIT-101, targeting approximately 18 patients, but enrollment has been slowed due to COVID-19[77] - The company plans to submit an IND for EDIT-301 for sickle cell disease by the end of 2020[77] - Research and development expenses rose by $11.2 million to $33.9 million for the three months ended September 30, 2020, with significant increases in process and platform development expenses[104] - Total research and development expenses increased by 55% to $96.5 million for the nine months ended September 30, 2020, compared to $62.1 million for the same period in 2019[119] - Research and development expenses for the nine months ended September 30, 2020, increased by $34.4 million to $96.5 million, primarily due to the obligation to fund all costs related to the LCA10 program following the termination of the agreement with Allergan[116] Collaboration and Revenue Recognition - Following the termination of the collaboration with Allergan, the company regained full global rights to develop and commercialize EDIT-101 and is obligated to make a one-time payment of $20 million[81] - The company recognized $63.2 million of previously deferred revenue related to Allergan during the third quarter of 2020[87] - The company has received an aggregate of $120 million from its collaboration with Juno Therapeutics, primarily from upfront and milestone payments[86] - Collaboration and other research and development revenues increased by $59.0 million to $62.8 million for the three months ended September 30, 2020, primarily due to the recognition of $59.9 million of previously deferred revenue from the termination of the strategic alliance with Allergan[103] Operating Expenses - General and administrative expenses increased by $4.2 million to $19.9 million for the three months ended September 30, 2020, driven by higher professional service expenses related to the Allergan agreement termination[109] - Total operating expenses for the nine months ended September 30, 2020, were $148.3 million, a 35% increase from $109.7 million in the same period of 2019[113] - General and administrative expenses increased by 9% to $51.8 million for the nine months ended September 30, 2020, compared to $47.6 million for the same period in 2019[121] - The company anticipates that general and administrative expenses will continue to be significant due to ongoing patent-related expenses and costs associated with operating as a public company[97] Cash and Funding - As of September 30, 2020, the company had cash, cash equivalents, and marketable securities totaling $541.3 million[126] - As of September 30, 2020, the company had cash and cash equivalents of $279.6 million, primarily in money market mutual funds and marketable securities totaling $215.7 million[148] - The company anticipates needing substantial additional funding to support ongoing operations and research activities[141] Market and Economic Conditions - The company's primary exposure to market risk is interest rate sensitivity, with an immediate 100 basis point change in interest rates not expected to materially affect the fair market value of investments due to their short-term maturities[148] - Substantially all total liabilities as of September 30, 2020 were denominated in U.S. dollars, indicating no material exposure to foreign currency exchange rate risk[149] - The company does not believe that inflation had a material effect on its business or financial condition during the nine months ended September 30, 2020 or 2019[147]