Beam Therapeutics Announces Portfolio Prioritization and Strategic Restructuring Focused on Potential Near-term Value Drivers and Long-term Growth of Precision Genetic Medicines Pipeline
October 19 2023 - 8:45AM
Beam Therapeutics Inc. (Nasdaq: BEAM), a biotechnology company
developing precision genetic medicines through base editing, today
announced portfolio priorities and plans to streamline its business
operations to support potential near-term value drivers and
long-term growth. This plan includes cost reduction initiatives
that align with the company’s near-term goals, and the anticipated
cost savings are expected to extend its revised operating plan into
2026.
“From the beginning, Beam’s strategy has been to develop base
editing technology broadly across a diverse portfolio of programs
and delivery modalities, and our science and pipeline continue to
progress across the board. In this challenging market environment,
however, we need to make the difficult decision to focus our
resources on those clinical programs and research areas we believe
have the highest potential for near-term value creation, while
continuing to build a strong company for the future,” said John
Evans, chief executive officer of Beam. “We are grateful for the
dedication and innumerable contributions of our impacted
colleagues. We understand the challenge this presents for them and
are fully committed to supporting them throughout this
process.”
“Base editing represents a potentially best-in-class gene
editing technology designed to provide differentiated benefits for
patients, as exemplified by our sickle cell disease and alpha-1
antitrypsin deficiency development programs,” continued Mr. Evans.
“Looking ahead, while our pipeline and research efforts will be
more streamlined, we expect to continue our track record of
generating innovative new base editing programs and creative
partnership opportunities. We are steadfast in our mission to bring
new precision genetic medicines to patients suffering from serious
diseases.”
Beam outlined the following key strategic decisions for its
portfolio of pipeline programs:
- Prioritize development of its ex vivo and in vivo sickle cell
disease programs, including BEAM-101, its Engineered Stem Cell
Antibody Paired Evasion (ESCAPE) non-genotoxic conditioning
strategy, and in vivo delivery to hematopoietic stem cells
(HSCs).
- Prioritize development of its in vivo base editor BEAM-302 for
the treatment of alpha-1 antitrypsin deficiency (AATD).
- Conduct an initial BEAM-301 clinical trial for the treatment of
glycogen storage disease 1a (GSD1a) at a select number of sites in
the United States.
- Generate a focused clinical dataset for BEAM-201 for the
treatment of T-ALL and seek potential partnership for this and
other potential ex vivo CAR-T programs, including Beam’s ongoing
research into creating next-generation allogeneic cell therapies
with multiplex base editing.
- Focus near-term research and platform investments on specific
applications leveraging Beam’s in vivo editing capabilities in the
liver targeting both rare genetic and common disorders, as well as
select opportunities in hematology and immunology/oncology. The
company’s hepatitis B virus program will be paused and designated
for partnering given the requirement of specialized development and
commercial capabilities.
In alignment with its portfolio prioritization, Beam intends to
undertake efforts to streamline its operational expenses and
increase efficiencies:
- Beam plans a reduction in headcount of approximately 100
employees, about 20% of its current workforce, which is anticipated
to be completed in the fourth quarter of 2023.
- Related to the workforce reduction, Beam expects to incur
one-time costs of approximately $6.6 million, of which nearly all
are cash expenditures related to severance and are anticipated to
be incurred in the fourth quarter of 2023.
- The combination of these anticipated cost savings, and the
company’s balance of cash, cash equivalents and investment
securities of $1.1 billion as of June 30, 2023, are now expected to
fund its revised operating plan into 2026.
About Beam TherapeuticsBeam Therapeutics
(Nasdaq: BEAM) is a biotechnology company committed to establishing
the leading, fully integrated platform for precision genetic
medicines. To achieve this vision, Beam has assembled a platform
that includes a suite of gene editing and delivery technologies and
is in the process of building internal manufacturing capabilities.
Beam’s suite of gene editing technologies is anchored by base
editing, a proprietary technology that is designed to enable
precise, predictable and efficient single base changes, at targeted
genomic sequences, without making double-stranded breaks in the
DNA. This has the potential to enable a wide range of potential
therapeutic editing strategies that Beam is using to advance a
diversified portfolio of base editing programs. Beam is a
values-driven organization committed to its people, cutting-edge
science, and a vision of providing life-long cures to patients
suffering from serious diseases.
Cautionary Note Regarding Forward-Looking
StatementsThis press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned not to place undue
reliance on these forward-looking statements, including, but not
limited to, statements related to: our pre-clinical and clinical
development plans and timing expectations; expectations related to
the cost and timing of our portfolio prioritization and strategic
restructuring; our expected cash runway, including the potential
impact of the portfolio prioritization and strategic restructuring
on our expected cash runway; the potential impact of the portfolio
prioritization and strategic restructuring on our operations and
development timelines; the therapeutic applications and potential
of our technology; our plans, and anticipated timing, to advance
our clinical trials and programs; our ability to seek, establish
and maintain a collaboration or partnership to develop our programs
with a collaborator or partner; and our ability to develop
life-long, curative, precision genetic medicines for patients
through base editing. Each forward-looking statement is subject to
important risks and uncertainties that could cause actual results
to differ materially from those expressed or implied in such
statement, including, without limitation, risks and uncertainties
related to: risks related to our ability to successfully achieve
the benefits of the portfolio prioritization and strategic
restructuring; our ability to develop, obtain regulatory approval
for, and commercialize our product candidates, which may take
longer or cost more than planned; our ability to raise additional
funding, which may not be available; our ability to obtain,
maintain and enforce patent and other intellectual property
protection for our product candidates; the potential impact of
pandemics and other health emergencies, including their impact on
the global supply chain; the uncertainty that our product
candidates will receive regulatory approval necessary to initiate
human clinical studies; that preclinical testing of our product
candidates and preliminary or interim data from preclinical studies
and clinical trials may not be predictive of the results or success
of ongoing or later clinical trials; that initiation and enrollment
of, and anticipated timing to advance, our clinical trials may take
longer than expected; that our product candidates may experience
manufacturing or supply interruptions or failures; risks related to
competitive products; and the other risks and uncertainties
identified under the headings “Risk Factors Summary” and “Risk
Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2022, our Quarterly Report on Form 10-Q for the
quarter ended June 30, 2023, and in any subsequent filings with the
Securities and Exchange Commission. These forward-looking
statements speak only as of the date of this press release. Factors
or events that could cause our actual results to differ may emerge
from time to time, and it is not possible for us to predict all of
them. We undertake no obligation to update any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as may be required by applicable
law.
Contacts:
Investors:Chelcie ListerTHRUST Strategic
Communicationschelcie@thrustsc.com
Media:Dan Budwick1ABdan@1abmedia.com
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