| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 1/6 |
| Past Performance | 0/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
BEAM Stock Overview
Beam Therapeutics Inc., a biotechnology company, develops precision genetic medicines for patients suffering from serious diseases in the United States.
Beam Therapeutics Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$63.69 |
| 52 Week High | US$116.91 |
| 52 Week Low | US$27.77 |
| Beta | 1.76 |
| 1 Month Change | 22.46% |
| 3 Month Change | 78.00% |
| 1 Year Change | -40.45% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | 239.68% |
Recent News & Updates
Beam drops 19% as FDA issues clinical hold on blood cancer candidate
Cambridge, Massachusetts-based Beam Therapeutics (NASDAQ:BEAM) announced on Monday that the FDA placed its Investigational New Drug (IND) application for BEAM-201, a CAR-T candidate for blood cancer, on clinical hold. Beam (BEAM) shares lost ~11% in the pre-market after the announcement. With the IND, the biotech has targeted BEAM-201 for the treatment of relapsed/refractory T-cell acute lymphoblastic leukemia (T-ALL)/T cell lymphoblastic lymphoma (T-LL). The FDA informed the decision on clinical hold last Friday via email, the company said, adding that an official letter from the agency in this regard is expected within 30 days. Beam (BEAM) submitted the IND for BEAM-201 at the end of June. A key holding of star fund manager Cathie Wood’s ARK Innovation ETF (ARKK), Beam (BEAM), drew a Market Perform rating from BMO Capital Markets recently.
Revisiting Beam Therapeutics Among Collaborative Catalysts
The recent 4-year partnership between Pfizer and Beam Therapeutics involves $300 million upfront to speed validation of the technology and an additional $1.05 billion in milestone payments. A recent amended agreement between Verve Therapeutics and Beam Therapeutics is a target swap that will give Beam access to Verve’s validated GalNAc-lipid nanoparticle-mediated (LNP) delivery technology. BEAM's novel CRISPR technology continues to carve a niche out in a crowded and volatile market alongside other CRISPR companies. At the time of my last publication on Beam Therapeutics (BEAM), its stock price was chopping around $82.52, and, if anything, the bear market of 2022 has only accelerated the bottoming of this gene editing leader. Recently, BMO Capital Markets initiated coverage on Beam with a "Market Perform" rating, driving the stock up >10% on the news. This came on the heels of a massive 4-year partnership announced with Pfizer (PFE) in April that delivered $300 million in upfront payments and the potential for over a billion more. While the S&P 500 and NASDAQ both remain in a technical bear market (as of writing this article), we may have seen the bottom set in for Beam and a new opportunity to accumulate a long position in anticipation of positive gene editing news in 2023. Beam Therapeutics The Beam Therapeutics gene editing platform is built to perform base edits without double stranded breaks in the target DNA, a slight variation of the classical CRISPR-cas9 system (for reference see previous articles here or other well-performed analysis by SA authors). Their portfolio has a solid foundation with flagship programs that include: BEAM-101: hematopoietic cell therapy that activates fetal hemoglobin protein for the treatment of sickle cell disease and beta-thalassemia. BEAM-102: directly correcting the hemoglobin mutation for sickle cell disease by base-editing to mimic a naturally-occurring hemoglobin variant. BEAM-201: multiplexed base editing that silences the CD7 chimeric antigen receptor T-cells for the treatment of relapsed/refractory T-cell acute lymphoblastic leukemia and T-cell lymphoblastic leukemia. Beam Therapeutics Pipeline (Beam Investor Presentation) Recent Agreements and Catalysts The Pfizer deal comes after massive obstacles for Pfizer’s own gene editing portfolio, most notably the tragic death of a patient in their Phase 1b mini-dystrophin gene therapy trial for Duchenne muscular dystrophy (DMD). Additional issues have arisen from the Roche (RHHBY) partnered hemophilia B asset that is delayed another year to 2023. Addressing these shortfalls with a step into base editing gene therapy is a natural choice for the pharmaceutical giant, captured well with their stated focus “… on in vivo base editing programs for three targets for rare genetic diseases of the liver, muscle and central nervous system.” In all, Beam receives an upfront payment of $300M, potential milestone payments up to $1.35B, and eligibility to receive royalties on global net sales for each licensed program. In addition, Beam will conduct research activities through development candidate selection for three undisclosed targets, one each in liver, muscle, and CNS, at which point Pfizer may opt in to exclusive, worldwide licenses to each development candidate (and be responsible for all development activities, potential regulatory approvals, commercialization, etc). We have a strong history in developing gene replacement therapies for rare diseases, and we see this collaboration with Beam as an opportunity to advance the next generation of gene editing therapies – an exciting scientific frontier – potentially leading to transformation for people living with rare genetic diseases. Mikael Dolsten, M.D., Ph.D., Chief Scientific Officer and President, Worldwide Research, Development and Medical of Pfizer. Surprisingly, the recent Verve-Beam agreement amendments didn’t warrant a press release, but they deserve mention here. The amendments grant Beam the target-by-target option to license Verve Therapeutics’ (VERV) GalNAc-LNP delivery technology for base editing machinery delivery, as well as additional rights to a 35% expense and profit share for an additional liver-mediated, cardiovascular target. Another big reveal in the new agreement is Verve granting Beam an exclusive, fully paid license relating to an undisclosed preclinical program being developed by Verve. All this considered, it reads as another shot on goal for the Beam Therapeutics team, with another biotech falling in line with the potential of genetic base editing.
Shareholder Returns
| BEAM | US Biotechs | US Market | |
|---|---|---|---|
| 7D | 8.2% | 9.0% | 1.1% |
| 1Y | -40.5% | -25.9% | -13.0% |
Return vs Industry: BEAM underperformed the US Biotechs industry which returned -24.5% over the past year.
Return vs Market: BEAM underperformed the US Market which returned -12.9% over the past year.
Price Volatility
| BEAM volatility | |
|---|---|
| BEAM Average Weekly Movement | 14.4% |
| Biotechs Industry Average Movement | 12.9% |
| Market Average Movement | 7.9% |
| 10% most volatile stocks in US Market | 17.1% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: BEAM is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.
Volatility Over Time: BEAM's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2017 | 394 | John Evans | https://www.beamtx.com |
Beam Therapeutics Inc., a biotechnology company, develops precision genetic medicines for patients suffering from serious diseases in the United States. The company is developing BEAM-101 for the treatment of sickle cell disease and beta thalassemia; BEAM-102 for the treatment of sickle cell disease; and BEAM-201, an allogeneic chimeric antigen receptor T cell for the treatment of relapsed/refractory T-cell acute lymphoblastic leukemia; and BEAM-301, a liver-targeted development candidate for the treatment of patients with Glycogen Storage Disease Type Ia. It also develops therapies for alpha-1 antitrypsin deficiency; ocular diseases; and other liver, muscle, and central nervous system disorders.
Beam Therapeutics Fundamentals Summary
| BEAM fundamental statistics | |
|---|---|
| Market Cap | US$4.38b |
| Earnings (TTM) | -US$238.29m |
| Revenue (TTM) | US$60.27m |
72.6x
P/S Ratio-18.4x
P/E RatioIs BEAM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| BEAM income statement (TTM) | |
|---|---|
| Revenue | US$60.27m |
| Cost of Revenue | US$99.30m |
| Gross Profit | -US$39.03m |
| Other Expenses | US$199.26m |
| Earnings | -US$238.29m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -3.47 |
| Gross Margin | -64.76% |
| Net Profit Margin | -395.37% |
| Debt/Equity Ratio | 0% |
How did BEAM perform over the long term?
See historical performance and comparisonValuation
Is BEAM undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
1/6Valuation Score 1/6
Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for BEAM?
Other financial metrics that can be useful for relative valuation.
| What is BEAM's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$4.38b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 54.8x |
| Enterprise Value/EBITDA | -31.8x |
| PEG Ratio | n/a |
Price to Book Ratio vs Peers
How does BEAM's PB Ratio compare to its peers?
| BEAM PB Ratio vs Peers |
|---|
| Company | PB | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 472.9x | ||
KRTX Karuna Therapeutics | 17.8x | 54.0% | US$7.2b |
VIR Vir Biotechnology | 2x | -38.2% | US$4.0b |
VSBC VitaSpring Biomedical | 1803.3x | n/a | US$3.4b |
NVAX Novavax | 68.5x | -21.0% | US$4.5b |
BEAM Beam Therapeutics | 5.3x | -14.8% | US$4.4b |
Price-To-Book vs Peers: BEAM is good value based on its Price-To-Book Ratio (5.3x) compared to the peer average (472.9x).
Price to Earnings Ratio vs Industry
How does BEAM's PE Ratio compare vs other companies in the US Biotechs Industry?
Price-To-Book vs Industry: BEAM is expensive based on its Price-To-Book Ratio (5.3x) compared to the US Biotechs industry average (1.8x)
Price to Book Ratio vs Fair Ratio
What is BEAM's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PB Ratio | 5.3x |
| Fair PB Ratio | n/a |
Price-To-Book vs Fair Ratio: Insufficient data to calculate BEAM's Price-To-Book Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of BEAM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: Insufficient data to calculate BEAM's fair value for valuation analysis.
Significantly Below Fair Value: Insufficient data to calculate BEAM's fair value for valuation analysis.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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Future Growth
How is Beam Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-14.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BEAM is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: BEAM is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: BEAM is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: BEAM's revenue (17.7% per year) is forecast to grow faster than the US market (8% per year).
High Growth Revenue: BEAM's revenue (17.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BEAM is forecast to be unprofitable in 3 years.
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Past Performance
How has Beam Therapeutics performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-45.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BEAM is currently unprofitable.
Growing Profit Margin: BEAM is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: BEAM is unprofitable, and losses have increased over the past 5 years at a rate of 45.2% per year.
Accelerating Growth: Unable to compare BEAM's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: BEAM is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (40.8%).
Return on Equity
High ROE: BEAM has a negative Return on Equity (-28.74%), as it is currently unprofitable.
Discover strong past performing companies
Financial Health
How is Beam Therapeutics's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: BEAM's short term assets ($1.2B) exceed its short term liabilities ($218.8M).
Long Term Liabilities: BEAM's short term assets ($1.2B) exceed its long term liabilities ($405.5M).
Debt to Equity History and Analysis
Debt Level: BEAM is debt free.
Reducing Debt: BEAM has not had any debt for past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable BEAM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: BEAM is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 7.5% per year.
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Dividend
What is Beam Therapeutics's current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate BEAM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate BEAM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if BEAM's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if BEAM's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as BEAM has not reported any payouts.
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
John Evans (44 yo)
5.33yrs
Tenure
US$13,911,975
Compensation
Mr. John M. Evans is a Director at Prime Medicine, Inc. He serves as Chief Executive Officer and Director at Beam Therapeutics Inc. since January 2018 and served as its President since January 2018 until J...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD13.91M) is above average for companies of similar size in the US market ($USD6.58M).
Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: BEAM's management team is considered experienced (3.9 years average tenure).
Board Members
Experienced Board: BEAM's board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.8%.
Top Shareholders
Company Information
Beam Therapeutics Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Beam Therapeutics Inc.
- Ticker: BEAM
- Exchange: NasdaqGS
- Founded: 2017
- Industry: Biotechnology
- Sector: Pharmaceuticals & Biotech
- Implied Market Cap: US$4.377b
- Shares outstanding: 68.72m
- Website: https://www.beamtx.com
Number of Employees
Location
- Beam Therapeutics Inc.
- 238 Main Street
- 9th Floor
- Cambridge
- Massachusetts
- 2142
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/08 00:00 |
| End of Day Share Price | 2022/08/08 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.