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Beam Therapeutics (BEAM)
NASDAQ:BEAM
US Market

Beam Therapeutics (BEAM) AI Stock Analysis

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Beam Therapeutics

(NASDAQ:BEAM)

Rating:45Neutral
Price Target:
$17.00
▲(1.19%Upside)
Beam Therapeutics' overall stock score reflects significant financial performance challenges typical of early-stage biotech companies, with high operational costs leading to ongoing losses. The technical analysis provides a mixed outlook, while valuation metrics indicate overvaluation risks. This score underscores the speculative nature of investing in BEAM at this stage.
Positive Factors
Efficacy and Safety
BEAM-101 data supports best-in-class positioning among engineered cell therapies for sickle cell disease.
Patient Outcomes
All 17 patients remained VOC/VOE-free after treatment with BEAM-101.
Negative Factors
Market Competition
Investor interest remains primarily in BEAM-302 in AATD due to the larger market opportunity.
Regulatory Approval
This program remains several years from approval in a market that has proven to be a heavy commercial lift for much larger companies.

Beam Therapeutics (BEAM) vs. SPDR S&P 500 ETF (SPY)

Beam Therapeutics Business Overview & Revenue Model

Company DescriptionBeam Therapeutics (BEAM) is a biotechnology company focused on pioneering the use of base editing to develop precision genetic medicines. The company operates within the healthcare and biotechnology sectors, aiming to create transformative therapies across a range of serious diseases, with core products centered around its proprietary base editing technology. This technology enables precise, predictable, and efficient single-base changes at targeted genomic sites, offering potential treatment options for genetic disorders, cancer, and other serious conditions.
How the Company Makes MoneyBeam Therapeutics generates revenue through strategic collaborations, licensing agreements, and development milestones with other pharmaceutical companies. The company leverages its proprietary base editing platform to enter into partnerships where it grants rights to use its technology for developing specific therapies. Beam may receive upfront payments, milestone payments based on the achievement of certain development stages, and potential royalties on sales of any successfully commercialized products. Additionally, Beam invests in its internal pipeline of therapeutic candidates, which, upon successful clinical development and regulatory approval, could yield revenue from product sales. Significant partnerships with established pharmaceutical firms also contribute to its financial growth, providing both financial support and technological validation.

Beam Therapeutics Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q3-2024)
|
% Change Since: -15.24%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of significant advancements in Beam's clinical programs, particularly in sickle cell disease and liver genetic diseases, alongside notable challenges related to patient safety in ongoing trials. While the progress in clinical data and technology development is promising, the safety concerns related to conditioning agents are a critical issue.
Q3-2024 Updates
Positive Updates
Advancements in Sickle Cell Disease Treatment
Beam Therapeutics reported initial clinical data from the BEACON trial for BEAM-101, showing a significant increase in fetal hemoglobin (HbF) and a reduction in sickle hemoglobin (HbS) in patients with sickle cell disease. Patients achieved greater than 60% HbF, reducing HbS to less than 40%, which is consistent with sickle cell trait profiles.
Progress in Liver Genetic Disease Program
Beam-302, aimed at treating alpha-1 antitrypsin deficiency (AATD), has dosed its first patient, with plans to report initial data in 2025. This program intends to address both lung and liver manifestations of the disease.
ESCAPE Technology Development
Beam has nominated development candidates for ESCAPE technology, aiming to eliminate chemotherapy in transplants. Early nonhuman primate studies show promising engraftment and HbF induction without chemotherapy.
Strong Financial Position
Beam Therapeutics reported a strong financial position, supporting ongoing and future clinical development programs.
Negative Updates
Patient Death in BEACON Trial
A patient in the BEACON trial died due to respiratory failure, likely related to busulfan conditioning. This highlights the risks associated with myeloablative conditioning in gene therapy.
Potential Safety Concerns with Conditioning
The use of busulfan in the BEACON trial has raised safety concerns, with known risks including lung injury and respiratory failure. This underscores the need for safer conditioning methods.
Company Guidance
In the Q3 2024 earnings call, Beam Therapeutics provided comprehensive updates on its clinical programs, highlighting significant progress and future expectations. The company reported that 35 patients have been enrolled in the BEACON trial for BEAM-101, with 8 patients already treated. The trial evaluates BEAM-101 for sickle cell disease, aiming for a best-in-class profile through efficient editing and induction of fetal hemoglobin (HbF) to over 60%, significantly reducing sickle hemoglobin (HbS) levels. Beam also shared promising preclinical data for its ESCAPE technology, which aims to eliminate the use of chemotherapy in stem cell transplants, potentially expanding the patient population up to fourfold. Additionally, Beam announced the completion of dosing in the first cohort of its BEAM-302 program for alpha-1 antitrypsin deficiency (AATD) and expects to report initial data in 2025. Financially, the company remains strong, supporting the continued development and potential commercialization of its pipeline.

Beam Therapeutics Financial Statement Overview

Summary
Beam Therapeutics faces significant financial challenges typical of early-stage biotechnology firms. The income statement shows consistent negative net income and EBIT, with stagnant revenue growth. The balance sheet is moderately leveraged, but the return on equity is negative. Cash flow is concerning, with negative free cash flow reflecting ongoing operational cash burn.
Income Statement
30
Negative
Beam Therapeutics shows significant challenges in profitability, with consistent negative net income and EBIT over recent periods. The gross profit margin is relatively healthy, indicating some cost control, but the net profit margin remains deeply negative due to high operating expenses. Revenue growth is stagnant, especially compared to the larger increases in operating losses, indicating a struggle to scale operations profitably.
Balance Sheet
45
Neutral
The company's balance sheet reflects moderate leverage with a debt-to-equity ratio that suggests manageable debt levels relative to equity. However, the return on equity is negative due to consistent net losses, indicating that shareholders' equity is not generating positive returns. The equity ratio indicates a stable capital structure, with a significant portion of assets funded by equity, which is a positive aspect amidst financial struggles.
Cash Flow
35
Negative
Beam Therapeutics has negative free cash flow, reflecting ongoing operational cash burn. The operating cash flow to net income ratio indicates that cash flow is less negative than net income, suggesting non-cash expenses. However, the negative free cash flow growth rate is concerning, indicating increasing cash consumption without corresponding revenue growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue63.58M63.52M377.71M60.92M51.84M24.00K
Gross Profit47.08M41.59M-59.67M38.34M35.40M-103.16M
EBITDA-399.03M-383.98M-156.47M-324.33M-392.46M-128.03M
Net Income-387.34M-376.74M-132.53M-263.59M-341.36M-256.42M
Balance Sheet
Total Assets1.47B1.10B1.46B1.34B1.47B451.68M
Cash, Cash Equivalents and Short-Term Investments1.22B850.74M1.19B1.08B965.65M299.67M
Total Debt158.13M161.43M172.69M179.00M142.35M100.23M
Total Liabilities343.78M370.28M478.38M608.24M647.72M206.12M
Stockholders Equity1.12B733.54M981.33M733.47M826.74M245.56M
Cash Flow
Free Cash Flow-360.96M-356.19M-182.93M-26.42M-113.08M-112.10M
Operating Cash Flow-351.38M-347.25M-149.19M22.53M-66.27M-95.74M
Investing Cash Flow113.38M185.01M71.84M-461.34M-294.14M-100.12M
Financing Cash Flow478.22M7.74M276.45M111.59M756.14M322.32M

Beam Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price16.80
Price Trends
50DMA
17.69
Negative
100DMA
20.91
Negative
200DMA
23.18
Negative
Market Momentum
MACD
-0.20
Negative
RSI
47.82
Neutral
STOCH
39.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEAM, the sentiment is Negative. The current price of 16.8 is below the 20-day moving average (MA) of 17.15, below the 50-day MA of 17.69, and below the 200-day MA of 23.18, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 47.82 is Neutral, neither overbought nor oversold. The STOCH value of 39.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BEAM.

Beam Therapeutics Risk Analysis

Beam Therapeutics disclosed 85 risk factors in its most recent earnings report. Beam Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Beam Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$679.99M181.41%3055.71%-18.80%
50
Neutral
$990.26M-57.92%-13.37%2.57%
46
Neutral
C$190.36M-4.26-8.56%3.09%13.53%-1.76%
45
Neutral
$1.69B-38.04%-82.38%-164.76%
45
Neutral
$2.75B-62.46%-43.10%
42
Neutral
$1.44B-69.30%-68.13%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BEAM
Beam Therapeutics
17.01
-5.56
-24.63%
NTLA
Intellia Therapeutics
9.38
-12.77
-57.65%
PHAT
Phathom Pharmaceuticals
9.59
-0.66
-6.44%
ETNB
89bio
9.82
2.22
29.21%
IMVT
Immunovant
16.00
-10.52
-39.67%

Beam Therapeutics Corporate Events

Executive/Board ChangesShareholder Meetings
Beam Therapeutics Confirms Key Decisions at Annual Meeting
Neutral
Jun 6, 2025

On June 4, 2025, Beam Therapeutics held its annual meeting of stockholders, where key decisions were made regarding the company’s leadership and operations. The election of Class II directors, the ratification of Deloitte & Touche LLP as the independent auditor, and the approval of executive compensation were all confirmed, reflecting strong shareholder support and potentially impacting the company’s governance and financial oversight.

The most recent analyst rating on (BEAM) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Beam Therapeutics stock, see the BEAM Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 13, 2025