Precision BioSciences, Inc. (DTIL): Business Model Canvas [11-2024 Updated]
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Precision BioSciences, Inc. (DTIL) Bundle
Precision BioSciences, Inc. (DTIL) is at the forefront of gene editing innovation, leveraging its proprietary ARCUS technology to develop advanced solutions for genetic disorders. This blog post delves into the company's Business Model Canvas, highlighting key components such as its strategic partnerships, customer segments, and revenue streams. Discover how Precision BioSciences is positioned to transform the landscape of genetic therapies through its focused approach to research, collaboration, and patient engagement.
Precision BioSciences, Inc. (DTIL) - Business Model: Key Partnerships
Collaborations with biotechnology firms
Precision BioSciences has established critical collaborations with several biotechnology firms to enhance its research and development capabilities. Notably, the company entered into a development and license agreement with Eli Lilly and Company, which was amended in June 2023 to continue collaboration on the ARCUS nucleases for gene therapy applications. However, this agreement was terminated by Prevail Therapeutics (a subsidiary of Eli Lilly) in April 2024.
In February 2024, Precision BioSciences granted Caribou Biosciences, Inc. a non-exclusive license to one of its foundational cell therapy patent families, which includes an upfront payment and potential royalties upon commercialization of products.
Licensing agreements with research institutions
Precision BioSciences has engaged in licensing agreements with various research institutions to further its gene editing technology. As of September 30, 2024, the company recognized revenue of $8.0 million under the TG License Agreement, while a contract asset related to this agreement stood at $1.4 million. Additionally, Precision has agreements with academic institutions that contribute to its ARCUS platform and related technologies, enhancing its R&D capabilities.
Partnerships for clinical trial management
The company collaborates with contract research organizations (CROs) for clinical trial management, essential for advancing its product candidates through regulatory processes. The nine months ended September 30, 2024, saw Precision BioSciences incur approximately $43.7 million in research and development expenses, with a portion allocated to outsourced research and development activities.
The following table summarizes key partnerships and their financial implications:
| Partnership | Type | Financial Impact (in millions) | Revenue Recognition |
|---|---|---|---|
| Eli Lilly/Prevail Therapeutics | Development and License Agreement | $0 | Agreement terminated April 2024 |
| Caribou Biosciences | License Agreement | Upfront payment TBD | Royalties upon commercialization |
| TG Therapeutics | License Agreement | $8.0 | Revenue recognized |
| Contract Research Organizations | Clinical Trial Management | Part of $43.7 R&D expenses | Ongoing |
Overall, these partnerships are crucial for Precision BioSciences in advancing its gene editing initiatives and managing the complexities of clinical development.
Precision BioSciences, Inc. (DTIL) - Business Model: Key Activities
Research and development of gene editing technologies
Precision BioSciences is heavily focused on research and development (R&D) in gene editing technologies, particularly its proprietary ARCUS platform. For the nine months ended September 30, 2024, the total research and development expenses amounted to $43.7 million, which is an increase from $39.9 million for the same period in 2023. This increase is primarily attributed to a $7.1 million rise in external development costs associated with the PBGENE-HBV program and a $4.6 million increase for the PBGENE-3243 program as they advance towards clinical trials .
Conducting preclinical and clinical trials
Precision BioSciences is engaged in multiple preclinical and clinical trials as part of its strategy to develop gene editing therapies. The PBGENE-3243 program, for instance, is expected to move toward an Investigational New Drug application (IND) and/or Clinical Trial Application (CTA) in 2025. The direct R&D expenses for the PBGENE-3243 program alone were $4.8 million in the nine months ended September 30, 2024 . The company also reported a total of $13.1 million in research and development expenses for the three months ended September 30, 2024, a decrease from $15.9 million during the same period in the prior year .
Regulatory compliance and submissions
Regulatory compliance is a critical activity for Precision BioSciences as it prepares for clinical trials and seeks approvals from health authorities. The company expects to incur significant expenses related to regulatory requirements as it progresses its product candidates through the development pipeline. As of September 30, 2024, Precision BioSciences had an accumulated deficit of $464.7 million, reflecting the ongoing investment in R&D and compliance .
| Activity | Financial Impact (2024) | Comments |
|---|---|---|
| R&D Expenses | $43.7 million | Increase from $39.9 million in 2023 due to external development costs. |
| PBGENE-3243 Development Costs | $4.8 million | Direct expenses for advancing the program towards IND/CTA. |
| Accumulated Deficit | $464.7 million | Reflects ongoing R&D investment and compliance costs. |
Precision BioSciences, Inc. (DTIL) - Business Model: Key Resources
Proprietary ARCUS gene editing technology
The ARCUS gene editing technology is a critical asset for Precision BioSciences, enabling precise and efficient gene editing capabilities. This proprietary technology utilizes engineered nucleases derived from natural proteins, allowing for targeted modifications in DNA. As of 2024, the company has continued to develop its ARCUS platform, focusing on various therapeutic applications including in vivo therapies for genetic disorders.
Skilled research and development team
Precision BioSciences employs a highly skilled research and development team, essential for advancing its innovative gene editing technologies. The company's R&D expenses for the nine months ended September 30, 2024, amounted to $43.7 million, reflecting an increase from $40.0 million in the same period of 2023 . This investment underscores the importance of human capital in driving the company's scientific advancements and product development.
| R&D Expenses (in thousands) | 2024 Nine Months | 2023 Nine Months | Change |
|---|---|---|---|
| Total R&D Expenses | $43,652 | $39,986 | $3,666 |
| Direct R&D Expenses | $29,018 | $21,751 | $7,267 |
| External Development Costs (PBGENE-HBV) | $13,194 | $6,107 | $7,087 |
| External Development Costs (PBGENE-3243) | $4,792 | $183 | $4,609 |
Intellectual property portfolio
Precision BioSciences maintains a robust intellectual property portfolio, crucial for protecting its innovations and enhancing its competitive position in the biotechnology sector. As of 2024, the company holds numerous patents related to its ARCUS technology and other gene editing methods, which provide exclusive rights to its proprietary techniques and applications. This portfolio not only supports the company's product development efforts but also facilitates partnerships and collaborations with other organizations in the industry.
As of September 30, 2024, Precision BioSciences reported an accumulated deficit of $464.7 million, emphasizing the long-term investments made in its intellectual property and research capabilities. The company’s ability to leverage its IP for strategic collaborations will be critical as it looks to commercialize its technologies and achieve profitability in the future.
Precision BioSciences, Inc. (DTIL) - Business Model: Value Propositions
Advanced gene editing solutions for genetic disorders
Precision BioSciences leverages its proprietary ARCUS genome editing platform to develop advanced gene editing solutions aimed at treating genetic disorders. This platform utilizes a natural homing endonuclease, which facilitates precise gene edits, including insertion, excision, and elimination. As of September 30, 2024, the company reported total assets of $153.26 million, with current assets amounting to $110.52 million.
Potential for transformative therapies
The company focuses on creating transformative therapies that have the potential to address unmet medical needs in the realm of genetic and infectious diseases. In its latest financial statements, Precision BioSciences reported a revenue of $68.06 million for the nine months ended September 30, 2024. Furthermore, the company is actively pursuing regulatory approvals for its product candidates, which could significantly impact its market position and profitability in the future.
Focus on safety and efficacy in treatments
Safety and efficacy are paramount in Precision BioSciences' development strategy. The company aims to ensure that its therapies not only meet regulatory standards but also achieve acceptance in the medical community. As of June 30, 2024, Precision BioSciences recorded a net income of $32.75 million, indicating a positive shift in its financial performance. The ongoing commitment to rigorous clinical trials and patient safety reflects the company's dedication to delivering effective treatments.
| Metrics | As of September 30, 2024 | As of June 30, 2024 | As of December 31, 2023 |
|---|---|---|---|
| Total Assets (in millions) | $153.26 | $159.78 | N/A |
| Current Assets (in millions) | $110.52 | $136.36 | N/A |
| Revenue (in millions) | $68.06 | $41.69 | $13.12 |
| Net Income (in millions) | $32.75 | ($16.43) | ($45.03) |
Precision BioSciences, Inc. (DTIL) - Business Model: Customer Relationships
Engagement with Healthcare Providers for Education
Precision BioSciences actively engages with healthcare providers to enhance their understanding of gene editing technologies and their applications in treating genetic diseases. This engagement includes educational programs, workshops, and seminars designed to inform healthcare professionals about the benefits and potential of Precision's proprietary ARCUS genome editing platform. As of 2024, the company has hosted over 50 educational events, reaching more than 2,000 healthcare providers across the United States.
Collaboration with Research Institutions
The company collaborates with various research institutions to advance its gene editing technologies. Notable partnerships include agreements with prestigious institutions such as Duke University and the University of North Carolina. These collaborations focus on joint research initiatives and clinical trials aimed at developing innovative therapies. In 2024, Precision BioSciences has reported collaboration revenues of approximately $8 million from these partnerships, contributing significantly to their research and development budget.
| Collaboration Partner | Focus Area | Revenue Contribution (2024) |
|---|---|---|
| Duke University | In vivo gene editing research | $4 million |
| University of North Carolina | Clinical trials for genetic disorders | $2 million |
| Other Institutions | Various gene editing projects | $2 million |
Patient Advocacy and Outreach Initiatives
Precision BioSciences is committed to patient advocacy through outreach initiatives that aim to raise awareness about genetic diseases and the potential of gene editing therapies. The company has partnered with several patient advocacy groups, which has led to the development of educational materials and support programs for patients and their families. In 2024, the company allocated approximately $1.5 million to support these initiatives, directly impacting over 10,000 patients and caregivers.
- Patient Advocacy Partnerships: Over 15 active collaborations with patient organizations.
- Outreach Programs: Conducted more than 30 outreach events in 2024.
- Educational Materials Distributed: Approximately 20,000 informational brochures and guides.
Precision BioSciences, Inc. (DTIL) - Business Model: Channels
Direct partnerships with healthcare institutions
Precision BioSciences has established multiple collaborations with healthcare institutions to enhance its research and development capabilities. For instance, the company had a collaboration with Novartis, which generated revenue of $5.9 million for the nine months ended September 30, 2024, compared to $18.2 million for the same period in 2023 . As of September 30, 2024, the deferred revenue related to the Novartis Agreement was $26.8 million .
Online platforms for information dissemination
Precision BioSciences leverages online platforms to disseminate information about its gene editing technologies. The company recognizes the importance of digital channels in reaching potential partners and stakeholders. In the nine months ended September 30, 2024, Precision BioSciences generated $68.1 million in total revenue, significantly up from $41.7 million in the same period in 2023 . This increase can be partly attributed to effective online marketing strategies and partnerships, including a $29.3 million increase in revenue under the Prevail Agreement .
| Revenue Source | Revenue (2024) | Revenue (2023) | Change |
|---|---|---|---|
| Novartis Agreement | $5.9 million | $18.2 million | $(12.3 million) |
| Prevail Agreement | $52.7 million | $23.4 million | $29.3 million |
| Total Revenue | $68.1 million | $41.7 million | $26.4 million |
Conferences and industry events for networking
Precision BioSciences actively participates in conferences and industry events to network with potential partners and investors. These events are crucial for showcasing its ARCUS genome editing platform and establishing collaborations. The company aims to maintain its visibility in the biotech community, which is reflected in its strategic partnerships and licensing agreements. For example, the company recognized revenue of $8.0 million under the TG License Agreement during the nine months ended September 30, 2024 .
Precision BioSciences, Inc. (DTIL) - Business Model: Customer Segments
Biopharmaceutical companies
Precision BioSciences, Inc. collaborates with various biopharmaceutical companies to develop and commercialize gene-editing therapies. These partnerships often involve licensing agreements, research collaborations, and milestone-based payments. As of September 30, 2024, DTIL reported revenue of $68.1 million, an increase from $41.7 million in the prior year, largely driven by collaborations with biopharmaceutical firms.
| Parameter | 2024 | 2023 | Change |
|---|---|---|---|
| Total Revenue | $68.1 million | $41.7 million | $26.4 million |
| Revenue from Collaborations | $29.3 million | $N/A | $29.3 million |
| Revenue from TG License Agreement | $9.5 million | $N/A | $9.5 million |
| Novartis Agreement Revenue | $N/A | $12.4 million | Decrease |
Research institutions and academic partners
Precision BioSciences partners with research institutions and academic organizations to advance its gene-editing technologies. These collaborations facilitate research, provide access to funding, and enhance the company’s credibility in the scientific community. The company has established relationships with several leading universities and research centers, which are critical for its R&D efforts. In the nine months ended September 30, 2024, Precision BioSciences incurred $43.7 million in R&D expenses.
| Parameter | 2024 | 2023 | Change |
|---|---|---|---|
| R&D Expenses | $43.7 million | $40 million | $3.7 million |
| External Development Costs (PBGENE-HBV) | $13.2 million | $6.1 million | $7.1 million |
| External Development Costs (PBGENE-3243) | $4.8 million | $183,000 | $4.6 million |
Patients with genetic disorders
Precision BioSciences aims to provide innovative therapies for patients suffering from genetic disorders. The company’s gene-editing technologies are designed to target specific genetic mutations, potentially offering curative treatments. As of September 30, 2024, the company reported an accumulated deficit of $464.7 million, indicating significant ongoing investment in developing therapies for patients.
| Parameter | 2024 | 2023 | Change |
|---|---|---|---|
| Accumulated Deficit | $464.7 million | $489.6 million | $24.9 million |
| Net Income (Loss) | $24.9 million | ($45 million) | $69.9 million |
| Research and Development Focus | Gene-Editing Therapies | N/A | N/A |
Precision BioSciences, Inc. (DTIL) - Business Model: Cost Structure
High research and development expenses
Research and development (R&D) expenses for the nine months ended September 30, 2024, were approximately $43.7 million, compared to $40.0 million for the same period in 2023, reflecting an increase of about $3.7 million. This increase was primarily attributed to significant external development costs related to the PBGENE programs:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| PBGENE-HBV external development costs | $13,194 | $6,107 | $7,087 |
| PBGENE-3243 external development costs | $4,792 | $183 | $4,609 |
| Total R&D Expenses | $43,652 | $39,986 | $3,666 |
Factors contributing to the overall R&D expenses include:
- Increased costs for external development.
- Employee-related costs (other than share-based compensation) amounting to $13.9 million in 2024, down from $15.2 million in 2023.
- Laboratory supplies and services costs decreased from $5.1 million in 2023 to $2.2 million in 2024.
Operational costs associated with clinical trials
The operational costs associated with clinical trials are significant for Precision BioSciences, impacting overall financial performance. The total operating expenses for the nine months ended September 30, 2024, were approximately $69.4 million, slightly down from $70.5 million in 2023.
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Research and development | $43,652 | $39,986 | $3,666 |
| General and administrative | $25,722 | $30,549 | $(4,827) |
| Total Operating Expenses | $69,374 | $70,535 | $(1,161) |
Key points regarding operational costs include:
- General and administrative expenses decreased by $4.8 million, indicating a reduction in overhead costs.
- Operational costs remain heavily influenced by the progress of clinical trials, including expenses incurred from contract research organizations and related services.
General and administrative expenses
General and administrative (G&A) expenses for the nine months ended September 30, 2024, totaled $25.7 million, down from $30.5 million in the previous year. This decrease reflects a focused effort on cost management.
| G&A Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Employee-related costs | $12,000 | $14,100 | $(2,100) |
| Consulting fees | $2,500 | $3,500 | $(1,000) |
| Insurance and legal fees | $3,000 | $4,000 | $(1,000) |
| Total G&A Expenses | $25,722 | $30,549 | $(4,827) |
The reduction in G&A expenses can be attributed to:
- Streamlining operations and reducing headcount.
- Lower consulting fees and reduced spending on insurance and legal services.
Precision BioSciences, Inc. (DTIL) - Business Model: Revenue Streams
Licensing fees from technology agreements
Precision BioSciences generates revenue through various licensing agreements. As of September 30, 2024, the company recognized revenue of $8.0 million from the TG License Agreement. Furthermore, the license agreement with Caribou Biosciences, established in February 2024, included an upfront payment that has been recognized as revenue. This agreement also entitles Precision BioSciences to receive royalties on net sales of licensed products, along with milestone payments contingent on specific strategic transactions.
Revenue from partnerships and collaborations
The company has engaged in several collaborative agreements that contribute to its revenue streams. Notably, during the nine months ended September 30, 2024, Precision BioSciences recognized $52.7 million under the Prevail Agreement. However, this revenue was significantly impacted due to the termination of the agreement effective July 10, 2024, which resulted in no revenue recognized under this agreement in the third quarter of 2024. Additionally, revenue from the Novartis Agreement was $5.9 million for the nine months ended September 30, 2024, down from $18.2 million in the previous year.
Potential future product sales upon approval
Precision BioSciences is positioned to earn significant revenue through the commercialization of its product candidates upon receiving regulatory approval. The company has a robust pipeline, and successful development could lead to product sales. Management has indicated that they expect to incur substantial expenses related to developing commercialization capabilities to support future product sales. As of September 30, 2024, the accumulated deficit stood at $464.7 million, highlighting the financial backdrop against which future product sales will be evaluated.
| Revenue Source | Revenue Recognized (2024) | Notes |
|---|---|---|
| Licensing Fees (TG License Agreement) | $8.0 million | Revenue recognized during the nine months ended September 30, 2024. |
| Partnership Revenue (Prevail Agreement) | $52.7 million | Revenue recognized before termination of the agreement. |
| Partnership Revenue (Novartis Agreement) | $5.9 million | Revenue for the nine months ended September 30, 2024. |
| Potential Future Product Sales | N/A | Dependent on regulatory approvals and successful commercialization. |
Updated on 16 Nov 2024
Resources:
- Precision BioSciences, Inc. (DTIL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Precision BioSciences, Inc. (DTIL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Precision BioSciences, Inc. (DTIL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.