Editas Medicine(EDIT) - 2025 Q3 - Quarterly Report

Financial Performance - The company reported net losses of $154.4 million and $191.7 million for the nine months ended September 30, 2025 and 2024, respectively, with an accumulated deficit of $1.6 billion as of September 30, 2025[87]. - The company anticipates significant operating losses to continue for the foreseeable future, with no expectation of profitability for the year ending December 31, 2025[87]. - Net loss for the three months ended September 30, 2025, was $25.1 million, a 60% improvement from a net loss of $62.1 million for the same period in 2024[104]. - Total operating expenses for the three months ended September 30, 2025, were $32.1 million, down 51% from $65.7 million in the same period in 2024[104]. - Total operating expenses for the nine months ended September 30, 2025, were $168.0 million, a decrease of 19% from $206.3 million in the same period in 2024[114]. 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, with $154.0 million received from collaboration with BMS[88]. - The company recognized $7.5 million of revenue related to its collaboration with BMS during the three months ended September 30, 2025, compared to no revenue recognized in the same period of 2024[88]. - Collaboration and other research and development revenues increased to $7.5 million for the three months ended September 30, 2025, compared to $0.1 million for the same period in 2024, primarily due to a milestone achievement under the collaboration with BMS[105]. - For the nine months ended September 30, 2025, collaboration and other research and development revenues increased to $15.8 million from $1.7 million in the same period in 2024, an increase of $14.1 million[115]. Research and Development - The company plans to submit an investigational new drug application for its lead candidate EDIT-401 by mid-2026, aiming for initial human proof-of-concept data by the end of 2026[81]. - In preclinical studies, EDIT-401 achieved LDL-C reductions equal to or exceeding 90% within 48 hours of a single dose, with a six-fold mean increase in LDLR protein in the liver[80]. - The company is focusing resources on advancing the EDIT-401 program while optimizing its cost structure by discontinuing the reni-cel program[82]. - The company expects research and development expenses to increase as it progresses its development programs and prepares for clinical trials[94]. - Research and development expenses decreased by $88.1 million to $62.5 million for the nine months ended September 30, 2025, a 58% reduction compared to $150.6 million for the same period in 2024[117]. Expenses and Cost Management - Research and development expenses decreased by $27.9 million to $19.8 million for the three months ended September 30, 2025, a reduction of 58% compared to $47.6 million for the same period in 2024[106]. - General and administrative expenses decreased by $5.8 million to $12.3 million for the three months ended September 30, 2025, a decline of 32% compared to $18.1 million for the same period in 2024[108]. - General and administrative expenses decreased by $17.1 million to $38.6 million for the nine months ended September 30, 2025, representing a 31% decrease from $55.6 million in 2024[119]. - The company anticipates general and administrative expenses will remain flat in the near future to support ongoing research and development activities[97]. - Restructuring and impairment charges for the nine months ended September 30, 2025, amounted to $66.9 million, reflecting the company's strategic changes[114]. Cash Flow and Financing - Net cash used in operating activities was approximately $128.9 million for the nine months ended September 30, 2025, compared to $159.5 million in 2024, reflecting a decrease of 19%[131]. - Net cash provided by investing activities was approximately $138.6 million for the nine months ended September 30, 2025, compared to $131.2 million in 2024, showing an increase of 6%[133]. - As of September 30, 2025, the company had raised an aggregate of $1.0 billion in net proceeds through the sale of shares of common stock[125]. - Cash, cash equivalents, and marketable securities totaled $165.6 million as of September 30, 2025[125]. - The company expects to fund its operating expenses and capital expenditure requirements into the third quarter of 2027 with existing cash and proceeds from the ATM Facility[139]. Market Risks and Obligations - The company is exposed to market risk related to changes in interest rates, but an immediate 100 basis point change would not materially affect the fair market value of its investments[148]. - The company has contractual obligations that include potential milestone payments and success fees related to licensed intellectual property[146]. - The company may need to relinquish valuable rights to technologies or revenue streams if it raises funds through collaborations or licensing arrangements[143]. - The company has future minimum lease payments totaling $22.4 million, with $2.0 million due in 2025[144]. - The company has no material exposure to foreign currency exchange rate risk as total liabilities were primarily denominated in U.S. dollars[149].