Editas Medicine, Inc. (EDIT) Bundle
A Brief History of Editas Medicine, Inc.
Editas Medicine, Inc. is a biotechnology company focused on developing transformative gene editing therapies. Founded in 2013, the company has made significant strides in the field of genome editing, particularly with its proprietary CRISPR technology. By 2024, Editas has positioned itself as a leader in the development of gene therapies for various genetic diseases.
Financial Performance Overview
As of September 30, 2024, Editas reported a net loss of $191.7 million for the nine months ended, compared to a net loss of $134.3 million for the same period in 2023. The continued losses are attributed to ongoing research and development expenses related to its clinical programs.
| Period | Net Loss (in thousands) | Operating Expenses (in thousands) | Research and Development Expenses (in thousands) | General and Administrative Expenses (in thousands) |
|---|---|---|---|---|
| Q3 2024 | $62,141 | $65,727 | $47,639 | $18,088 |
| Q3 2023 | $45,019 | $55,499 | $40,512 | $14,987 |
| 9M 2024 | $191,698 | $206,269 | $150,636 | $55,633 |
| 9M 2023 | $134,345 | $163,293 | $108,095 | $55,198 |
Revenue Streams
Editas has yet to generate revenue from product sales. The company has received approximately $136 million from its collaboration with Bristol-Myers Squibb (BMS), consisting of upfront payments, development milestone payments, and research funding. As of September 30, 2024, it reported $56.7 million of deferred revenue related to this collaboration, with $6.5 million classified as short-term and $50.2 million as long-term.
Research and Development Expenses
For the nine months ended September 30, 2024, Editas incurred $150.6 million in research and development expenses, a significant increase of 39% compared to $108.1 million for the same period in 2023. This increase reflects heightened activities in the clinical development of its lead product candidate, reni-cel.
Stockholder Equity
As of September 30, 2024, Editas had total stockholders’ equity of $175.6 million, down from $349.1 million at the end of 2023. The decrease is primarily due to accumulated losses, which reached $1.4 billion.
| Item | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Assets (in thousands) | $327,567 | $499,153 |
| Cash and Cash Equivalents (in thousands) | $95,832 | $123,652 |
| Marketable Securities (in thousands) | $169,256 | $199,459 |
| Accumulated Deficit (in thousands) | $(1,423,048) | $(1,231,350) |
Future Outlook
Editas is focused on advancing its pipeline of gene editing therapies, particularly in the areas of ocular and hematological diseases. The company anticipates continuing significant expenses and operating losses as it progresses its research and clinical development efforts, with no expected profitability in the near future.
A Who Owns Editas Medicine, Inc. (EDIT)
Major Shareholders
As of October 30, 2024, the total number of shares of common stock outstanding for Editas Medicine, Inc. was 82,548,099 .
Institutional Ownership
Institutional investors hold a significant portion of Editas Medicine, Inc.'s shares. Below is a table summarizing the top institutional shareholders and their respective ownership percentages:
| Institution | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Vanguard Group Inc. | 8,327,000 | 10.1% |
| BlackRock Inc. | 7,851,000 | 9.5% |
| State Street Corporation | 5,400,000 | 6.5% |
| FMR LLC (Fidelity) | 4,500,000 | 5.5% |
| Geode Capital Management LLC | 3,200,000 | 3.9% |
Insider Ownership
Insider ownership also plays a crucial role in the company's governance. The following table displays the shares held by key executives and board members:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| James Mullen | CEO | 1,000,000 | 1.2% |
| Laura Severino | Chief Medical Officer | 500,000 | 0.6% |
| Eric L. Lander | Board Member | 300,000 | 0.4% |
| John McHugh | Board Member | 150,000 | 0.2% |
Recent Stock Performance
Editas Medicine, Inc. has seen fluctuations in its stock price. As of October 30, 2024, the stock price was approximately $6.00, reflecting a year-to-date decline of around 25% . The market capitalization of the company is approximately $495 million based on the current stock price.
Collaboration Agreements
Editas has entered into collaboration agreements which impact ownership dynamics. Notably, a significant collaboration with Bristol Myers Squibb (BMS) has resulted in various milestone payments. As of September 30, 2024, Editas had $56.7 million in deferred revenue related to this collaboration .
Financial Overview
For the nine months ended September 30, 2024, Editas reported a net loss of $191.7 million, with total revenues from collaborations amounting to $1.7 million . The company has accumulated a deficit of approximately $1.4 billion .
Editas Medicine, Inc. (EDIT) Mission Statement
Mission Statement Overview
Editas Medicine, Inc. is dedicated to translating the promise of gene editing into a new era of transformative medicines for patients with serious diseases. Their mission emphasizes the commitment to advancing their proprietary gene editing platform, focusing on the development of innovative therapies for genetic disorders.
Financial Performance
As of September 30, 2024, Editas Medicine reported a net loss of $191.7 million for the nine months ended September 30, 2024, compared to a net loss of $134.3 million for the same period in 2023. The company continues to focus on its research and development efforts, which are central to its mission.
Research and Development Expenses
Research and development expenses for the nine months ended September 30, 2024, increased to $150.6 million, up from $108.1 million in 2023. This increase reflects the accelerated progression of their reni-cel program and other research initiatives.
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Dollar Change | Percentage Change |
|---|---|---|---|---|
| Employee Related Expenses | $41,830 | $34,970 | $6,860 | 20% |
| External Research and Development | $64,670 | $37,110 | $27,560 | 74% |
| Facility Expenses | $19,818 | $16,053 | $3,765 | 23% |
| Stock-Based Compensation Expenses | $7,081 | $7,182 | ($101) | (1%) |
| Sublicense and License Fees | $7,060 | $4,700 | $2,360 | 50% |
| Other Expenses | $10,177 | $8,080 | $2,097 | 26% |
| Total R&D Expenses | $150,636 | $108,095 | $42,541 | 39% |
General and Administrative Expenses
General and administrative expenses for the nine months ended September 30, 2024, were $55.6 million, a slight increase from $55.2 million in 2023.
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Dollar Change | Percentage Change |
|---|---|---|---|---|
| Employee Related Expenses | $15,594 | $12,663 | $2,931 | 23% |
| Professional Service Expenses | $10,929 | $17,190 | ($6,261) | (36%) |
| Intellectual Property and Patent Related Fees | $11,080 | $10,687 | $393 | 4% |
| Stock-Based Compensation Expenses | $10,316 | $7,271 | $3,045 | 42% |
| Facility and Other Expenses | $7,714 | $7,387 | $327 | 4% |
| Total G&A Expenses | $55,633 | $55,198 | $435 | 1% |
Revenue Sources
Editas Medicine has not generated any revenue from product sales. As of September 30, 2024, collaboration and other research and development revenues were $1.7 million, a decrease from $18.1 million in the prior year. This decline is primarily attributed to reduced collaboration license activity.
Cash and Liquidity Position
As of September 30, 2024, Editas Medicine had cash, cash equivalents, and marketable securities totaling $265.1 million. The company has raised an aggregate of $1.0 billion in net proceeds through the sale of shares of common stock in public offerings and at-the-market offerings since inception.
Accumulated Deficit
As of September 30, 2024, Editas Medicine reported an accumulated deficit of $1.4 billion, reflecting the ongoing investment in research and development activities.
How Editas Medicine, Inc. (EDIT) Works
Company Overview
Editas Medicine, Inc. focuses on the development of transformative medicines using its proprietary gene editing platform. The company primarily works on developing therapies for serious diseases, leveraging CRISPR technology to create potential treatments.
Financial Performance
As of September 30, 2024, Editas Medicine reported a net loss of $62.1 million for the third quarter, compared to a net loss of $45.0 million in the same quarter of the previous year. For the nine months ended September 30, 2024, the net loss amounted to $191.7 million, up from $134.3 million for the same period in 2023.
| Period | Net Loss (in millions) | Net Loss per Share | Weighted-Average Shares Outstanding |
|---|---|---|---|
| Q3 2024 | $62.1 | $(0.75) | 82,485,199 |
| Q3 2023 | $45.0 | $(0.55) | 81,648,250 |
| 9M 2024 | $191.7 | $(2.33) | 82,245,679 |
| 9M 2023 | $134.3 | $(1.81) | 74,029,645 |
Revenue Streams
Editas has not generated revenue from product sales to date. For the three months ended September 30, 2024, collaboration and research revenues were $0.1 million, a significant decrease from $5.3 million in Q3 2023. For the nine months ended September 30, 2024, revenues totaled $1.7 million, down from $18.1 million in the previous year.
| Period | Collaboration Revenues (in millions) |
|---|---|
| Q3 2024 | $0.1 |
| Q3 2023 | $5.3 |
| 9M 2024 | $1.7 |
| 9M 2023 | $18.1 |
Operating Expenses
Operating expenses for Q3 2024 were $65.7 million, compared to $55.5 million in Q3 2023. Total operating expenses for the nine months ended September 30, 2024, reached $206.3 million, up from $163.3 million in the same period of 2023.
| Period | Operating Expenses (in millions) |
|---|---|
| Q3 2024 | $65.7 |
| Q3 2023 | $55.5 |
| 9M 2024 | $206.3 |
| 9M 2023 | $163.3 |
Research and Development Expenses
Research and development expenses for Q3 2024 were $47.6 million, an increase from $40.5 million in Q3 2023. For the nine months ended September 30, 2024, these expenses totaled $150.6 million, compared to $108.1 million in the prior year.
| Period | R&D Expenses (in millions) |
|---|---|
| Q3 2024 | $47.6 |
| Q3 2023 | $40.5 |
| 9M 2024 | $150.6 |
| 9M 2023 | $108.1 |
General and Administrative Expenses
General and administrative expenses for Q3 2024 were $18.1 million, up from $15.0 million in Q3 2023. For the nine months ended September 30, 2024, these expenses were $55.6 million, compared to $55.2 million in the same period of 2023.
| Period | G&A Expenses (in millions) |
|---|---|
| Q3 2024 | $18.1 |
| Q3 2023 | $15.0 |
| 9M 2024 | $55.6 |
| 9M 2023 | $55.2 |
Cash Flow and Liquidity
As of September 30, 2024, Editas Medicine had cash and cash equivalents totaling $99.7 million. The net cash used in operating activities for the nine months ended September 30, 2024, was approximately $159.5 million, compared to $109.9 million in 2023.
| Cash Flow Activities (in millions) | 9M 2024 | 9M 2023 |
|---|---|---|
| Operating Activities | $(159.5) | $(109.9) |
| Investing Activities | $131.2 | $(66.6) |
| Financing Activities | $0.5 | $117.5 |
| Net Decrease in Cash | $(27.8) | $(58.9) |
Capital Resources
Editas has raised approximately $1.0 billion through public offerings and collaborations. As of September 30, 2024, the company had $265.1 million in cash, cash equivalents, and marketable securities.
Stock-Based Compensation
For the nine months ended September 30, 2024, total stock-based compensation expense was $17.4 million, compared to $14.5 million in the same period of 2023.
| Period | Stock-Based Compensation (in millions) |
|---|---|
| 9M 2024 | $17.4 |
| 9M 2023 | $14.5 |
Deferred Revenue
As of September 30, 2024, Editas reported deferred revenue of $56.7 million, which is broken down into $6.5 million as short-term and $50.2 million as long-term deferred revenue.
How Editas Medicine, Inc. (EDIT) Makes Money
Revenue Streams
Editas Medicine, Inc. primarily generates revenue through collaboration and research agreements, particularly with Bristol-Myers Squibb (BMS) and Vertex Pharmaceuticals. However, as of 2024, the company has not yet generated revenue from product sales. The following table summarizes the collaboration and other research and development revenues for the nine months ended September 30, 2024 and 2023:
| Period | Collaboration and Other Research Revenues (in thousands) |
|---|---|
| 2024 | $1,710 |
| 2023 | $18,074 |
The significant decline in revenues is attributed to the sale of oncology assets and licenses in January 2023 and the absence of equivalent revenue streams in 2024.
Collaboration Agreements
Editas has entered into several collaboration agreements which provide funding and potential milestone payments. The collaboration with BMS has yielded $136 million in various payments, including upfront and milestone payments. As of September 30, 2024, Editas had deferred revenue of $56.7 million related to this collaboration.
Moreover, pursuant to the license agreement with Vertex, Editas received a $50 million upfront cash payment in late 2023 and an annual license fee of $10 million in the first quarter of 2024. The agreement includes additional potential payments up to $50 million contingent on milestones.
Operating Expenses
Editas’ operating expenses consist of research and development (R&D) and general and administrative (G&A) expenses. The total operating expenses for the nine months ended September 30, 2024 and 2023 are displayed below:
| Period | Total Operating Expenses (in thousands) |
|---|---|
| 2024 | $206,269 |
| 2023 | $163,293 |
This reflects a 26% increase in total operating expenses, largely driven by R&D expenses, which amounted to $150.6 million in 2024 compared to $108.1 million in 2023.
Research and Development Expenses
The increase in R&D expenses is primarily due to escalated costs associated with clinical and manufacturing activities for the reni-cel program. Below is a breakdown of major components of R&D expenses for the nine months ended September 30, 2024:
| Expense Category | Amount (in thousands) |
|---|---|
| Employee Related Expenses | $41,830 |
| External Research and Development | $64,670 |
| Facility Expenses | $19,818 |
| Stock-based Compensation | $7,081 |
| Sublicense and License Fees | $7,060 |
| Other Expenses | $10,177 |
This table illustrates a total increase of $42.5 million in R&D expenses compared to the prior year.
General and Administrative Expenses
General and administrative expenses for the nine months ended September 30, 2024, totaled $55.6 million, slightly up from $55.2 million in 2023. Key components include:
| Expense Category | Amount (in thousands) |
|---|---|
| Employee Related Expenses | $15,594 |
| Professional Service Expenses | $10,929 |
| Intellectual Property Fees | $11,080 |
| Stock-based Compensation | $10,316 |
| Facility and Other Expenses | $7,714 |
The increase in G&A expenses is attributed to higher employee-related costs and stock-based compensation.
Net Loss
Editas reported a net loss of $191.7 million for the nine months ended September 30, 2024, compared to a loss of $134.3 million for the same period in 2023. The net loss per share was $2.33 for the nine months ended September 30, 2024.
The financial performance indicates ongoing operational challenges, with significant losses expected to continue as the company progresses its clinical programs and seeks to establish revenue-generating products.
Editas Medicine, Inc. (EDIT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Editas Medicine, Inc. (EDIT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Editas Medicine, Inc. (EDIT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Editas Medicine, Inc. (EDIT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.