Prime Medicine, Inc. (PRME) AI Stock Analysis

• Market Cap: $255.76M
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.08
• Revenue Growth: N/A
• EPS Growth: 20.58%
• Country: US
• Employees: 214
• Sector: Healthcare
• Sector Strength: 76
• Industry: Biotechnology
• EPS (TTM): -1.70
• Shares Outstanding: 131,160,840
• 10 Day Avg. Volume: 1,698,122
• 30 Day Avg. Volume: 1,342,517
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 85.74
• Price to Cash Flow (P/CF): 3.90
• P/FCF Ratio: 3.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.80
• Price Target Upside: 505.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Prime Medicine's stock is weighed down by significant financial performance issues including substantial operational losses and cash flow challenges. Despite this, recent positive corporate events in gene editing advancements provide some optimism for future growth. The technical analysis indicates a bearish trend, and the valuation remains unattractive due to negative earnings. Overall, the stock score reflects high risk with potential long-term opportunities contingent on successful execution of strategic initiatives.

Positive Factors

Market Expansion

The addition of the AATD program expands PRME’s total addressable market and adds meaningful catalysts.

Program Pipeline

PRME's program is considered a valuable addition to its pipeline as it could potentially deliver a best-in-class profile.

Negative Factors

Efficacy Concerns

It is noted that mouse liver is no proxy for human liver, which could impact the perceived efficacy of Prime's proprietary GalNAc LNP.

Regulatory and Competitive Risks

Risks include clinical, regulatory, commercial, competition, and dilution.

Prime Medicine, Inc. Business Overview & Revenue Model

Company Description

Prime Medicine, Inc., a biotechnology company, delivers genetic therapies to address diseases by deploying gene editing technology. It offers Prime Editors with a Prime Editor protein, comprising a fusion between a Cas protein and a reverse transcriptase enzyme; and a pegRNA, which targets the Prime Editor to a specific genomic location and provides a template for making the desired edit to the target DNA sequence. The company was incorporated in 2019 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Prime Medicine, Inc. generates revenue through several key streams. The primary source of income is likely derived from licensing agreements and partnerships with pharmaceutical and biotechnology companies interested in accessing Prime Medicine's proprietary gene-editing technology. These collaborations may involve upfront payments, milestone payments based on the progress of research and development efforts, and royalties on any commercialized products developed using their technology. Additionally, the company might receive funding from grants or government programs focused on advancing genetic research. Strategic partnerships with research institutions and healthcare organizations also contribute to its revenue model by facilitating the development and potential commercialization of new therapies.

Prime Medicine, Inc. Financial Statement Overview

Summary

Prime Medicine, Inc. operates in a high-risk biotechnology sector with substantial losses. While revenue growth is stagnant, the cash position offers some stability. The company heavily depends on equity financing to cover operational deficits, posing potential risks if external funding becomes scarce. Continuous operational losses and cash flow challenges suggest a need for strategic shifts towards profitability.

Income Statement

Prime Medicine, Inc. has shown minimal revenue generation with a slight increase in 2024. Gross profit margin is technically 100% due to revenue equaling gross profit, but the company remains unprofitable with a significant negative net income. The EBIT and EBITDA margins are negative, reflecting substantial operational losses. The revenue growth from 2023 to 2024 is notable but starts from a zero base, thus not impactful.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, benefiting from equity financing. However, the equity ratio indicates a reliance on liabilities to fund assets. The return on equity is concerning due to consistent net losses, undermining shareholder value. Despite these challenges, the cash and short-term investments provide a liquidity buffer.

Cash Flow

Prime Medicine's cash flow situation is strained, with negative operating and free cash flows. The free cash flow has improved slightly year-over-year but remains negative, indicating cash burn. The operating cash flow to net income ratio highlights inefficiencies in converting revenue to cash. Positive financing cash flow suggests reliance on external funding to sustain operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.98M	0.00	0.00	0.00	5.21M
	Gross Profit
2.98M	-147.91M	0.00	0.00	0.00
	EBIT
-202.47M	-191.29M	-116.54M	-84.47M	-932.00K
	EBITDA
-202.47M	-193.76M	-110.75M	-160.99M	-889.00K
	Net Income Common Stockholders
-195.88M	-198.13M	-121.82M	-165.37M	-3.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
185.47M	121.67M	293.92M	269.62M	53.33M
	Total Assets
297.51M	193.85M	360.31M	301.86M	54.78M
	Total Debt
40.79M	13.63M	28.75M	10.41M	17.52K
	Net Debt
-141.68M	-27.94M	-158.88M	-175.01M	-36.96M
	Total Liabilities
144.36M	60.78M	360.31M	62.30M	21.31M
	Stockholders Equity
153.15M	133.07M	-293.58M	239.56M	33.47M
Cash Flow		Free Cash Flow
-130.16M	-174.14M	-147.92M	-38.23M	-6.18M
	Operating Cash Flow
-122.86M	-165.41M	-131.83M	-34.08M	-5.54M
	Investing Cash Flow
68.46M	18.71M	-47.10M	-73.63M	-1.06M
	Financing Cash Flow
195.88M	655.00K	181.49M	269.28M	34.93M

Prime Medicine, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRME, the sentiment is Negative. The current price of 1.95 is below the 20-day moving average (MA) of 2.12, below the 50-day MA of 2.54, and below the 200-day MA of 3.87, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of 51.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRME.

Prime Medicine, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEAM	50 Neutral	$2.33B	―	-43.94%	―	-83.18%	-144.95%
Sector *	49 Neutral	$6.95B	0.67	-53.43%	2.47%	22.78%	1.44%
CRSP	46 Neutral	$3.54B	―	-19.20%	―	-89.95%	-123.71%
PRME	45 Neutral	$255.76M	―	-136.88%	―	―	20.58%
EDIT	39 Underperform	$108.70M	―	-98.10%	―	-58.64%	-40.05%
NTLA	39 Underperform	$931.66M	―	-54.00%	―	59.55%	3.09%
VERV	39 Underperform	$492.82M	―	-36.36%	―	174.98%	25.06%

Prime Medicine, Inc. Corporate Events

Prime Medicine Advances AATD Program with Promising Preclinical Results

On March 18, 2025, Prime Medicine, Inc. announced a preclinical program for treating alpha-1 antitrypsin deficiency (AATD) using its universal liver lipid nanoparticle to edit the SERPINA1 gene mutation. Initial in vivo data showed promising results with up to 72% precise correction of the gene in humanized mice, restoring over 95% of serum AAT to normal levels. The company plans to advance the AATD program through lead optimization and aims to file an investigational new drug application by mid-2026, indicating significant progress in its liver franchise and potential impact on treating both lung- and liver-associated diseases.

Prime Medicine Advances Gene Editing and Trials

Prime Medicine, Inc. has updated its corporate presentation to reflect significant advancements in its gene editing programs. The company has initiated a Phase 1/2 trial for PM359 in CGD and is progressing with Wilson’s Disease and CF programs, leveraging strategic collaborations to expand their pipeline. The company aims to achieve clinical validation and sustainable value creation, supported by new partnerships and a strong financial position.