Editas Medicine Announces Fourth Quarter and Full Year 2023 Results and Business Updates
Editas Medicine, Inc. (EDIT) reports financial results and business updates for Q4 and full year 2023. The company made progress in its reni-cel program for Sickle Cell Disease and Beta Thalassemia, with promising data shared and enrollment ongoing. Editas also entered a license agreement with Vertex Pharmaceuticals for Cas9 gene editing technology. Financially, the company has a strong position with cash, cash equivalents, and marketable securities expected to fund operations into 2026.
Positive
Editas Medicine is making significant progress towards commercialization in 2023.
The company is enrolling and dosing patients in the reni-cel program, with promising data shared.
Editas entered a license agreement with Vertex Pharmaceuticals for Cas9 gene editing technology.
Financially, Editas has a strong position with cash, cash equivalents, and marketable securities to fund operations into 2026.
The recent financial results and business updates from Editas Medicine highlight a strategic move towards becoming a commercial-stage company with a focus on gene editing therapies. The company's alignment with the FDA on the RUBY trial being a single Phase 1/2/3 trial for BLA filing is significant. This could shorten the regulatory timeline and potentially expedite the commercial availability of reni-cel for sickle cell disease and transfusion-dependent beta thalassemia. The financial position of Editas, with a runway into 2026, is robust due to the upfront payment from the license agreement with Vertex Pharmaceuticals and anticipated annual license fees. This provides Editas with a cushion to continue its R&D without the immediate need for additional capital raising.
The increase in collaboration and other R&D revenues, primarily from the Vertex agreement, is a positive indicator of the company's ability to monetize its intellectual property. The reduction in general and administrative expenses due to decreased patent and legal costs reflects a streamlined operational approach. However, investors should monitor the company's R&D expenses, which have increased due to sublicense payments. The balance between investing in R&D and maintaining financial health will be crucial for Editas' sustained growth and investor confidence.
Editas Medicine's progress in the RUBY and EdiTHAL trials represents a significant advancement in the treatment of hemoglobinopathies using gene editing technologies. The company's reni-cel (renizgamglogene autogedtemcel) therapy is at the forefront of addressing genetic diseases like sickle cell disease and beta thalassemia, which currently have limited treatment options. The data presented at the ASH Annual Meeting indicates a commitment to transparency and scientific rigor, which is crucial in gaining trust from the medical community and potential partners.
While the clinical data set to be presented in mid-2024 will be a critical milestone for evaluating the safety and efficacy of reni-cel, the impact on the company's valuation and the broader gene editing sector will depend on the robustness of the data. The in vivo preclinical proof-of-concept for an undisclosed indication by year-end could also represent a new frontier for Editas' pipeline expansion and diversification. Stakeholders should consider the potential long-term implications of successful in vivo gene editing treatments, which could revolutionize the therapeutic landscape for genetic disorders.
Editas Medicine's strategic collaborations, such as the licensing agreement with Vertex Pharmaceuticals for Cas9 gene editing technology, signal a competitive edge in the gene editing market. This collaboration not only provides immediate financial benefits but also positions Editas as a key player in the field of gene editing for hemoglobinopathies. The market for gene editing therapies is rapidly evolving and Editas' ability to establish early partnerships and generate revenue through licensing agreements is indicative of a proactive business development strategy.
Investors should note the potential market impact of Editas' therapies, given the high unmet need in the treatment of severe sickle cell disease and transfusion-dependent beta thalassemia. The success of the RUBY and EdiTHAL trials could lead to a significant market share for Editas in these therapeutic areas. However, it is essential to consider the competitive landscape, as other companies are also developing gene editing therapies. The differentiation of Editas' therapies in terms of safety, efficacy and cost will be key factors in determining their market success.
02/28/2024 - 07:00 AM
Company aligned with FDA that RUBY is a single Phase 1/2/3 trial
On track to present additional clinical data from the RUBY trial and the EdiTHAL trial of reni-cel in mid-2024 and additional updates by year-end 2024
Initiated enrollment in the adolescent cohort in the RUBY trial
Entered into a license agreement providing Vertex Pharmaceuticals a non-exclusive license for Cas9
Strong financial position with operational runway expected into 2026
CAMBRIDGE, Mass., Feb. 28, 2024 (GLOBE NEWSWIRE) -- Editas Medicine, Inc. (Nasdaq: EDIT), a clinical-stage genome editing company, today reported financial results for the fourth quarter and full year 2023 and provided business updates.
“I am proud of our team’s execution in 2023 as we made significant progress in our path toward becoming a commercial-stage company. In the fourth quarter, we continued to enroll and dose patients in our reni-cel program, sharing promising data from a larger patient cohort, and continuing to advance towards a BLA filing. We also created value for Editas through business development, leveraging our strong IP portfolio via sublicenses to other pharmaceutical and biotechnology companies developing gene editing medicines,” commented Gilmore O’Neill, M.B., M.M.Sc., President and Chief Executive Officer, Editas Medicine. “We entered 2024 with great momentum and focus on developing clinically differentiated, transformational medicines for people living with serious, previously untreatable diseases and working toward our long-term vision of becoming a leader in vivo programmable gene editing medicine.”
Recent Achievements and Outlook
Ex Vivo Hemoglobinopathies
Reni-cel (renizgamglogene autogedtemcel, previously EDIT-301) for Severe Sickle Cell Disease (SCD) Alignment with the U.S. Food and Drug Administration (FDA) that RUBY is now considered the Phase 1/2/3 trial to support a BLA filing. The Company continues to enroll and dose patients in the adult cohort of the RUBY trial. The Company initiated enrollment in the adolescent cohort of the RUBY trial. The Company remains on-track to present a substantive clinical data set of sickle cell patients with considerable clinical follow-up in the RUBY trial in mid-2024 and further data by year-end 2024. In December, the Company presented safety and efficacy data from 11 patients in the RUBY trial in a Company-sponsored webinar and in a poster at the American Society of Hematology (ASH) Annual Meeting. Reni-cel for Transfusion-dependent Beta Thalassemia (TDT) The Company continues to enroll and dose patients in the EdiTHAL trial for TDT. The Company remains on-track to present additional clinical data from the EdiTHAL trial in mid-2024 and further data by year-end 2024. In December, the Company presented safety and efficacy data from 6 patients in the EdiTHAL trial in a Company-sponsored webinar and in a poster at the ASH Annual Meeting. In Vivo Medicines
The Company is on track to establish in vivo preclinical proof-of-concept for an undisclosed indication by year-end. In 2023, Editas Medicine strengthened and focused its discovery organization to build an in vivo gene editing pipeline. Business Development
In December, Editas Medicine entered into a license agreement with Vertex Pharmaceuticals, providing Vertex a non-exclusive license for the Company's Cas9 gene editing technology for ex vivo gene editing medicines targeting the BCL11A gene in the fields of sickle cell disease and beta thalassemia, including Vertex’s CASGEVY™ (exagamglogene autotemcel). Under the terms of the agreement, Editas Medicine received an upfront payment and is eligible to receive an additional $50 million contingent upfront payment as well as annual license fees, which may include certain sales-based annual license fee increases, through 2034. Fourth Quarter and Full Year 2023 Financial Results
Cash, cash equivalents, and marketable securities as of December 31, 2023, were $427.1 million compared to $446.4 million as of September 30, 2023. The Company expects the existing cash, cash equivalents, and marketable securities together with the near-term annual license fees and the contingent upfront payment payable under our license agreement with Vertex Pharmaceuticals, Incorporated, to fund operating expenses and capital expenditures into 2026.
Fourth Quarter 2023
For the three months ended December 31, 2023, net loss attributable to common stockholders was $18.9 million , or $0.23 per share, compared to net loss of $60.7 million , or $0.88 per share, for the same period in 2022. Collaboration and other research and development revenues increased to $60.0 million for the three months ended December 31, 2023, compared to $6.5 million for the same period in 2022. The increase was primarily attributable to payments received under our license agreement with Vertex. Research and development expenses increased by $17.6 million to $69.6 million for the three months ended December 31, 2023, compared to $52.0 million for the same period in 2022. The increase is primarily attributable to sublicense payments made in connection with the Vertex license agreement offset by savings from our re-prioritization and targeted focus on our reni-cel program. General and administrative expenses decreased by $3.5 million to $14.5 million for the three months ended December 31, 2023, compared to $18.0 million for the same period in 2022. The decrease was primarily driven by reduced patent and legal costs. Full Year 2023
For the full year 2023, net loss attributable to common stockholders was $153.2 million , or $2.02 per share, compared to $220.4 million , or $3.21 per share, for the same period in 2022. Collaboration and other research and development revenues were $78.1 million for 2023, compared to $19.7 million for 2022. The $58.4 million increase was primarily attributable to payments received under our license agreement with Vertex. Research and development expenses increased by $2.7 million to $177.7 million for 2023, compared to $175.0 million for 2022. The increase is primarily attributable to sublicense payments made in connection with the Vertex license agreement, partially offset by decreased external expense resulting from our strategic reprioritization and targeted focus on our reni-cel program. General and administrative expenses were $69.7 million for 2023, compared to $70.7 million for 2022. The $1.0 million decrease relates to decreased stock compensation expense partially offset by an increase in professional services to support strategic initiatives and business development activities. Upcoming Events
TD Cowen 44th Annual Health Care Conference Leerink Partners Global Biopharma Conference Barclays 26th Annual Global Healthcare Conference Conference Call www.editasmedicine.com , and a replay will be available approximately two hours after its completion.
About Editas Medicine www.editasmedicine.com .
Forward-Looking Statements in vivo proof-of-concept for an undisclosed indication by year-end 2024, the timing for the Company’s receipt and presentation of data from its clinical trials and preclinical studies, including clinical data updates for the RUBY and EdiTHAL trials in mid-2024 and by year-end 2024, potential of, and expectations for, the Company’s product candidates, the timing or likelihood of regulatory filings and approvals, the Company’s expectations regarding commercial readiness, and the Company’s expectations regarding cash runway. The Company may not actually achieve the plans, intentions, or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various important factors, including: uncertainties inherent in the initiation and completion of pre-clinical studies and clinical trials, including the RUBY and EdiTHAL trials, and clinical development of the Company’s product candidates, including reni-cel; availability and timing of results from pre-clinical studies and clinical trials; whether interim results from a clinical trial will be predictive of the final results of the trial or the results of future trials; expectations for regulatory approvals to conduct trials or to market products and availability of funding sufficient for the Company’s foreseeable and unforeseeable operating expenses and capital expenditure requirements. These and other risks are described in greater detail under the caption “Risk Factors” included in the Company’s most recent Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as updated by the Company’s subsequent filings with the Securities and Exchange Commission, and in other filings that the Company may make with the Securities and Exchange Commission in the future. Any forward-looking statements contained in this press release represent the Company’s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. Except as required by law, the Company explicitly disclaims any obligation to update any forward-looking statements.
EDITAS MEDICINE, INC. Consolidated Statement of Operations (amounts in thousands, except share and per share data) (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 Collaboration and other research and development revenues 60,049 6,536 78,123 19,712 Operating expenses: Research and development 69,556 51,998 177,651 174,958 General and administrative 14,455 17,984 69,653 70,704 Total operating expenses 84,011 69,982 247,304 245,662 Operating loss (23,962 ) (63,446 ) (169,181 ) (225,950 ) Other income, net: Other (expense) income, net (14 ) 1,289 (1,604 ) 1,293 Interest income, net 5,102 1,419 17,566 4,225 Total other income, net 5,088 2,708 15,962 5,518 Net loss $ (18,874 ) $ (60,738 ) $ (153,219 ) $ (220,432 ) Net loss per share, basic and diluted $ (0.23 ) $ (0.88 ) $ (2.02 ) $ (3.21 ) Weighted-average common shares outstanding, basic and diluted 81,710,470 68,793,157 75,965,633 68,664,822
EDITAS MEDICINE, INC. Selected Consolidated Balance Sheet Items (amounts in thousands) (Unaudited) December 31, December 31, 2023 2022 Cash, cash equivalents, and marketable securities $ 427,135 $ 437,371 Working capital 277,612 296,644 Total assets 499,153 514,321 Deferred revenue, net of current portion 60,667 60,667 Total stockholders' equity 349,097 360,680
What are Editas Medicine's achievements in 2023?
In 2023, Editas Medicine made significant progress towards commercialization, enrolling and dosing patients in the reni-cel program and sharing promising data.
What license agreement did Editas Medicine enter into in December?
In December, Editas Medicine entered a license agreement with Vertex Pharmaceuticals for Cas9 gene editing technology.
What are Editas Medicine's financial results for Q4 2023?
For Q4 2023, Editas Medicine reported a net loss of $18.9 million, with collaboration and R&D revenues increasing to $60.0 million.
What is Editas Medicine's financial outlook?
Editas Medicine has a strong financial position with cash expected to fund operations into 2026.
What upcoming events is Editas Medicine planning to participate in?
Editas Medicine plans to participate in investor events like the TD Cowen 44th Annual Health Care Conference and the Leerink Partners Global Biopharma Conference.
