Editas Medicine(EDIT)2025-03-05 21:21Financial Performance - The company reported net losses of $237.1 million, $153.2 million, and $220.4 million for the years ended December 31, 2024, 2023, and 2022 respectively, with an accumulated deficit of $1.5 billion as of December 31, 2024[587]. - The net loss for the year ended December 31, 2024, was $237.1 million, compared to a net loss of $153.2 million in 2023, reflecting a 55% increase in losses[608]. - The net loss for 2024 was $237.1 million, compared to a net loss of $153.2 million in 2023, indicating a worsening of approximately 55%[662]. - The company reported a net loss per share of $2.88 for 2024, compared to $2.02 for 2023, indicating a deterioration in per-share performance[662]. - Total liabilities rose from $150.1 million in 2023 to $207.3 million in 2024, an increase of approximately 38%[659]. - The accumulated deficit increased to $1.47 billion in 2024 from $1.23 billion in 2023, reflecting a growth of about 19%[659]. - The total stockholders' equity decreased significantly from $349.1 million in 2023 to $134.3 million in 2024, a decline of approximately 62%[659]. Revenue Generation - The company has not generated any revenue from product sales to date and does not expect to do so for the foreseeable future[588]. - In 2024, the company recognized $18.1 million of revenue related to its collaboration with BMS, with $6.5 million being previously deferred revenue[589]. - Collaboration and other research and development revenues decreased by $45.8 million, to $32.3 million for the year ended December 31, 2024, from $78.1 million for the year ended December 31, 2023, a decline of 59%[609]. - The company has not recognized any royalty revenue from collaboration or strategic alliance arrangements to date[704]. Research and Development - The company expects research and development expenses to increase significantly as it continues its preclinical studies and prepares for clinical development[596]. - Research and development expenses increased by $21.6 million, to $199.2 million for the year ended December 31, 2024, representing a 12% increase from $177.7 million in 2023[610]. - Employee-related expenses within research and development increased by 15%, from $47.4 million in 2023 to $54.2 million in 2024[610]. - External research and development expenses surged by 47%, from $53.3 million in 2023 to $78.5 million in 2024[610]. - The company anticipates a decrease in expenses over the next few years due to the discontinuation of the reni-cel program, but will continue to incur significant expenses for research and development[631]. Cash Flow and Liquidity - Net cash used in operating activities was approximately $210.3 million for the year ended December 31, 2024, compared to $132.2 million in 2023, primarily due to increased research efforts and clinical activities[624][625]. - The company expects its existing cash and marketable securities will fund operations into the second quarter of 2027, but significant additional funding will be needed for ongoing research and development[632]. - The company had cash, cash equivalents, and marketable securities totaling $269.9 million as of December 31, 2024[678]. - The company raised an aggregate of $1.0 billion in net proceeds through public offerings and had cash, cash equivalents, and marketable securities of $269.9 million[618][620]. - Cash flow from investing activities for 2024 was $162.1 million, compared to a net cash used of $3.7 million in 2023[671]. Expenses and Charges - General and administrative expenses rose by approximately $2.3 million, to $72.0 million for the year ended December 31, 2024, a 3% increase from $69.7 million in 2023[611]. - Restructuring charges amounted to $12.2 million for the year ended December 31, 2024, with no equivalent charges in 2023, marking a 100% increase[615]. - The Company recorded $21,000,000 in operating lease costs for the year ended December 31, 2024, compared to $15,200,000 in 2023, marking a 38.0% increase[748]. Collaborations and Agreements - The company has entered into a collaboration and license agreement in 2024 to access LNPs targeting the liver, enhancing its gene editing platform[583]. - The 2024 Amendment to the collaboration agreement with BMS extends the partnership to November 2026, allowing BMS to select up to three new gene targets for research[768]. - The total transaction price under the 2024 Amendment is approximately $56.7 million, with no milestone or extension term fees included as of December 31, 2024[771]. - The Company has granted Beam Therapeutics an exclusive license for the development and commercialization of base editing therapies, with options for additional licenses[775]. Market and Risk Factors - The company is exposed to market risk related to changes in interest rates, with cash and cash equivalents of $131.5 million and marketable securities of $138.4 million as of December 31, 2024[642]. - The Company has not experienced any credit losses and did not have an allowance for credit losses as of December 31, 2024 and 2023[691]. - The Company has not had any write-offs of bad debt and did not have an allowance for doubtful accounts as of December 31, 2024 and 2023[692]. Asset Management - Total current assets decreased from $340.8 million in 2023 to $289.3 million in 2024, a decline of approximately 15%[659]. - The Company recorded cash equivalents and marketable securities totaling $269,913,000 as of December 31, 2024, compared to $427,135,000 as of December 31, 2023, indicating a decrease of approximately 37%[740]. - The Company holds no securities with remaining maturities greater than one year as of December 31, 2024[742].