Beam Therapeutics Inc. [BEAM] Filings

10-Q 1 beam-20230630.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO

Commission File Number 001-39208

Beam Therapeutics Inc.

(Exact name of Registrant as specified in its Charter)


Delaware	81-5238376
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

238 Main Street Cambridge, MA	02142
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (857) 327-8775

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange
on which registered

Common Stock, par value $0.01 per share

BEAM

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

The number of shares of registrant’s common stock outstanding as of August 1, 2023 was 79,199,501.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Such forward-looking statements reflect, among other things:

•

our current expectations and anticipated results of operations;

•

our expectations regarding the initiation, timing, progress and results of our clinical trials, including our Phase 1/2 clinical trial designed to assess the safety and efficacy of BEAM-101 for the treatment of sickle cell disease, which we refer to as our BEACON trial, and our Phase 1/2 clinical trial designed to assess the safety and efficacy of BEAM-201 for the treatment of relapsed, refractory T-cell acute lymphoblastic leukemia/T cell lymphoblastic lymphoma;

•

our expectations regarding the initiation, timing, progress and results of our research and development programs and preclinical studies, including our expectations that we will submit regulatory applications for BEAM-302 in the first quarter of 2024 and BEAM-301 in the first half of 2024;

•

our ability to develop and maintain a sustainable portfolio of product candidates;

•

our ability to develop life-long, curative, precision genetic medicines for patients through base editing;

•

our ability to create a hub for partnering with other companies;

•

our plans for preclinical studies for product candidates in our pipeline;

•

our ability to advance any product candidates that we may develop and successfully complete any clinical trials or preclinical studies, including the manufacture of any such product candidates;

•

our ability to pursue a broad suite of clinically validated delivery modalities;

•

our expectations regarding our ability to generate additional novel lipid nanoparticles that we believe could accelerate novel nonviral delivery of gene editing or other nucleic acid payloads to tissues beyond the liver and our ability to expand the reach of our programs;

•

the scope of protection we are able to establish and maintain for intellectual property rights covering our product candidates and technology;

•

developments related to our competitors and our industry;

•

the expected timing, progress and success of our collaborations with third parties, including any future payments we may receive under our collaboration and license agreements, and our ability to identify and enter into future license agreements and collaborations;

•

developments related to base editing technologies;

•

our ability to successfully develop our delivery modalities and obtain and maintain approval for our product candidates;

•

our ability to successfully establish and maintain a commercial-scale current Good Manufacturing Practice, or cGMP, manufacturing facility and our expectations that we will initiate cGMP compliant operations in late 2023;

•

regulatory developments in the United States and foreign countries;

•

our ability to attract and retain key scientific and management personnel;

•

our expectations regarding the strategic and other potential benefits of any acquisition of additional technologies;

•

our estimates regarding the period over which we believe that our existing cash, cash equivalents and marketable securities, will be sufficient to fund our operating expenses and capital expenditure requirements; and

•

the impact on our business of macro-economic conditions, as well as the prevailing level of macro-economic, business, and operational uncertainty, including as a result of geopolitical events or other global or regional events.

All of these statements are subject to known and unknown important risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, or industry results to differ materially from those expressed or implied by such forward-looking statements. Therefore, any statements contained herein that are not statements of historical fact may be forward-looking statements and should be evaluated as such. Without limiting the foregoing, the words “anticipate,” “expect,” “suggest,” “plan,” “believe,” “intend,” “project,” “forecast,” “estimates,” “targets,” “projections,” “should,” “could,” “would,” “may,” “might,” “will,” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q and “Risk Factors Summary” and “Risk Factors” in Part I, Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, or the 2022 Form 10-K. Unless legally required, we assume no obligation to update any such forward-looking information to reflect actual results or changes in the factors affecting such forward-looking information.

When we use the terms “Beam,” the “Company,” “we,” “us” or “our” in this Quarterly Report on Form 10-Q, we mean Beam Therapeutics Inc. and its subsidiaries on a consolidated basis, unless the context indicates otherwise.

Table of Contents


		Page
PART I	Financial Information
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations and Other Comprehensive Loss	2
	Condensed Consolidated Statements of Stockholders’ Equity	3
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	36

PART II	Other Information
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 5.	Other Information	42
Item 6.	Exhibits	44
Signatures		45

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

Beam Therapeutics Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except share and per share amounts)


	June 30, 2023			December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	225,544		$	232,767
Marketable securities		847,472			845,367
Prepaid expenses and other current assets		21,789			14,762
Total current assets		1,094,805			1,092,896
Property and equipment, net		128,203			115,620
Restricted cash		15,422			12,754
Operating lease right-of-use assets		114,075			118,513
Other assets		1,382			1,931
Total assets	$	1,353,887		$	1,341,714
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	6,886		$	9,029
Accrued expenses and other current liabilities		37,519			48,059
Derivative liabilities		13,600			18,300
Current portion of deferred revenue		139,127			135,974
Current portion of lease liability		11,492			10,380
Current portion of equipment financing liability		912			1,853
Total current liabilities		209,536			223,595
Long-term lease liability		163,851			168,625
Long-term equipment financing liability		875			1,154
Contingent consideration liabilities		10,588			12,463
Long-term portion of deferred revenue		156,202			202,179
Other liabilities		1,192			224
Total liabilities		542,244			608,240
Commitments and contingencies (See Note 7, License agreements and Note 8, Collaboration and license agreements)
Stockholders’ equity:
Preferred stock, $0.01 par value; 25,000,000 shares authorized, and no shares issued or outstanding at June 30, 2023 and December 31, 2022, respectively		—			—
Common stock, $0.01 par value; 250,000,000 shares authorized, 77,953,502 and 71,277,339 issued and outstanding at June 30, 2023 and December 31, 2022, respectively		780			712
Additional paid-in capital		2,049,476			1,792,554
Accumulated other comprehensive (loss) income		(2,015	)		(2,430	)
Accumulated deficit		(1,236,598	)		(1,057,362	)
Total stockholders’ equity		811,643			733,474
Total liabilities and stockholders’ equity	$	1,353,887		$	1,341,714

The accompanying notes are an integral part of these condensed consolidated financial statements.

Beam Therapeutics Inc.

Condensed Consolidated Statements of Operations and Other Comprehensive Loss

(Unaudited)

(in thousands, except share and per share amounts)


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
License and collaboration revenue	$	20,116		$	16,652		$	44,324		$	25,084
Operating expenses:
Research and development		97,608			74,556			197,254			139,966
General and administrative		24,656			24,062			48,146			43,309
Total operating expenses		122,264			98,618			245,400			183,275
Loss from operations		(102,148	)		(81,966	)		(201,076	)		(158,191	)
Other income (expense):
Change in fair value of derivative liabilities		(900	)		12,200			4,700			25,800
Change in fair value of non-controlling equity investments		6,148			(4,124	)		(6,649	)		(11,809	)
Change in fair value of contingent consideration liabilities		2,171			(120	)		1,875			332
Interest and other income (expense), net		11,953			2,060			21,914			2,704
Total other income (expense)		19,372			10,016			21,840			17,027
Net loss	$	(82,776	)	$	(71,950	)	$	(179,236	)	$	(141,164	)
Unrealized gain (loss) on marketable securities		(1,250	)		(1,481	)		415			(4,140	)
Comprehensive loss	$	(84,026	)	$	(73,431	)	$	(178,821	)	$	(145,304	)
Net loss per common share, basic and diluted	$	(1.08	)	$	(1.02	)	$	(2.41	)	$	(2.03	)
Weighted-average common shares outstanding, basic and diluted		76,335,175			70,210,227			74,315,721			69,461,207

The accompanying notes are an integral part of these condensed consolidated financial statements.

Beam Therapeutics Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

(in thousands, except share amounts)


	Common Stock				Additional Paid-in			Accumulated Other Comprehensive			Accumulated			Total Stockholders’
	Shares		Amount		Capital			Income (Loss)			Deficit			Equity
Balance at December 31, 2021		68,389,425	$	684	$	1,594,378		$	(50	)	$	(768,274	)	$	826,738
Purchase of common stock under ESPP		28,990		—		1,412			—			—			1,412
Issuance of common stock from At-the-Market offering, net of issuance costs of $1.3 million		874,770		9		53,927			—			—			53,936
Vesting of restricted common stock		283,186		3		(3	)		—			—			—
Stock-based compensation		—		—		18,035			—			—			18,035
Exercise of common stock options		176,652		2		818			—			—			820
Other comprehensive income (loss)		—		—		—			(2,659	)		—			(2,659	)
Net loss		—		—		—			—			(69,214	)		(69,214	)
Balance at March 31, 2022		69,753,023	$	698	$	1,668,567		$	(2,709	)	$	(837,488	)	$	829,068
Issuance of common stock from At-the-Market offering, net of issuance costs of $0.6 million		374,677		4		22,296			—			—			22,300
Vesting of restricted common stock		37,118		—		—			—			—			—
Stock-based compensation		—		—		21,578			—			—			21,578
Exercise of common stock options		147,296		1		645			—			—			646
Other comprehensive income (loss)		—		—		—			(1,481	)		—			(1,481	)
Net loss		—		—		—			—			(71,950	)		(71,950	)
Balance at June 30, 2022		70,312,114	$	703	$	1,713,086		$	(4,190	)	$	(909,438	)	$	800,161

Beam Therapeutics Inc.

Condensed Consolidated Statements of Stockholders’ Equity - Continued

(Unaudited)

(in thousands, except share amounts)


	Common Stock				Additional Paid-in			Accumulated Other Comprehensive			Accumulated			Total Stockholders’
	Shares		Amount		Capital			Income (Loss)			Deficit			Equity
Balance at December 31, 2022		71,277,339	$	712	$	1,792,554		$	(2,430	)	$	(1,057,362	)	$	733,474
Purchase of common stock under ESPP		65,620		1		1,707			—			—			1,708
Issuance of common stock from At-the-Market offering, net of issuance costs of $0.2 million		2,431,770		24		93,786			—			—			93,810
Vesting of restricted common stock		284,858		3		(3	)		—			—			—
Stock-based compensation		—		—		23,917			—			—			23,917
Exercise of common stock options		375,805		4		3,388			—			—			3,392
Other comprehensive income (loss)		—		—		—			1,665			—			1,665
Net loss		—		—		—			—			(96,460	)		(96,460	)
Balance at March 31, 2023		74,435,392	$	744	$	1,915,349		$	(765	)	$	(1,153,822	)	$	761,506
Issuance of common stock from At-the-Market offering, net of issuance costs of $5.1 million		3,387,358		34		107,149			—			—			107,183
Vesting of restricted common stock		63,154		1		(1	)		—			—			—
Stock-based compensation		—		—		26,278			—			—			26,278
Exercise of common stock options		67,598		1		701			—			—			702
Other comprehensive income (loss)		—		—		—			(1,250	)		—			(1,250	)
Net loss		—		—		—			—			(82,776	)		(82,776	)
Balance at June 30, 2023		77,953,502	$	780	$	2,049,476		$	(2,015	)

Beam Therapeutics Inc. [BEAM] Filings
10-Q	[2023-08-08]
10-Q	[2023-05-10]
10-K	[2023-02-28]
10-Q	[2022-11-07]
10-Q	[2022-08-09]
10-Q	[2022-05-09]
10-K	[2022-02-28]
10-Q	[2021-11-08]
10-Q	[2021-08-10]
10-Q	[2021-05-11]
10-K	[2021-03-15]
10-Q	[2020-11-10]
S-1	[2020-09-28]
10-Q	[2020-08-12]
10-Q	[2020-05-12]
10-K	[2020-03-30]
S-1	[2019-09-27]