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Prime Medicine, Inc. (PRME)
NASDAQ:PRME
US Market
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Prime Medicine, Inc. (PRME) AI Stock Analysis

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PRME

Prime Medicine, Inc.

(NASDAQ:PRME)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
$4.00
▲(4.99% Upside)
Action:Reiterated
Date:07/11/26
The score is held down primarily by weak financial fundamentals—large ongoing losses, continued cash burn, and rising leverage with declining equity. Technicals provide some support with improving near-term momentum, while valuation remains limited due to negative earnings and no dividend data. Corporate events are modestly supportive, led by the arbitration resolution reducing uncertainty.
Positive Factors
Arbitration cleared for PM647
The final arbitration award removes a material legal overhang around PM647 and clarifies Prime’s development rights. This reduces execution and IP uncertainty, enabling multi-quarter development planning, clearer partner negotiations, and lower legal risk that could otherwise delay program timelines.
Negative Factors
Sustained high cash burn
Persistently large operating and free-cash outflows indicate the company must rely on external financing or partner payments to sustain R&D. Ongoing burn raises dilution risk, constrains the pace of program advancement absent deals, and requires durable funding strategies to avoid disruption to clinical timelines.
Read all positive and negative factors
Positive Factors
Negative Factors
Arbitration cleared for PM647
The final arbitration award removes a material legal overhang around PM647 and clarifies Prime’s development rights. This reduces execution and IP uncertainty, enabling multi-quarter development planning, clearer partner negotiations, and lower legal risk that could otherwise delay program timelines.
Read all positive factors

Prime Medicine, Inc. (PRME) vs. SPDR S&P 500 ETF (SPY)

Prime Medicine, Inc. Business Overview & Revenue Model

Company Description
Prime Medicine, Inc. operates as a biotechnology firm, dedicated to delivering genetic therapies for various diseases by strategically employing advanced gene editing technology. Central to their platform is the "Prime Editor" system, which combin...
How the Company Makes Money
Prime Medicine has not broadly disclosed a stable, product-based commercial revenue stream; as a clinical-stage biotech, its revenue, when reported, is generally expected to come from payments received under collaboration and licensing arrangement...

Prime Medicine, Inc. Financial Statement Overview

Summary
Financial performance is weak: the company is heavily unprofitable with deeply negative margins, revenue declined (-12.91% TTM), and cash flow remains deeply negative with ongoing burn. Balance sheet risk has risen meaningfully with higher leverage (debt-to-equity ~1.49) and declining equity, reducing financial flexibility.
Income Statement
18
Very Negative
Balance Sheet
38
Negative
Cash Flow
24
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.03M4.63M2.98M0.000.000.00
Gross Profit-43.68M-2.69M2.98M0.000.000.00
EBITDA-190.90M-195.76M-189.75M-186.64M-120.55M-165.28M
Net Income-198.37M-201.14M-195.88M-198.13M-121.82M-165.37M
Balance Sheet
Total Assets294.73M342.73M297.51M193.85M360.31M301.86M
Cash, Cash Equivalents and Short-Term Investments135.50M177.68M190.44M121.67M293.92M269.62M
Total Debt114.51M116.43M40.79M13.63M28.75M10.41M
Total Liabilities218.03M221.87M144.36M60.78M44.04M62.30M
Stockholders Equity76.70M120.87M153.15M133.07M316.27M239.56M
Cash Flow
Free Cash Flow-158.74M-167.09M-130.16M-174.14M-147.92M-38.23M
Operating Cash Flow-156.42M-162.56M-122.86M-165.41M-131.83M-34.08M
Investing Cash Flow-17.63M-108.76M68.46M18.71M-47.10M-73.63M
Financing Cash Flow145.91M151.51M195.88M655.00K181.49M269.28M

Prime Medicine, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.81
Price Trends
50DMA
3.30
Positive
100DMA
3.51
Positive
200DMA
3.92
Negative
Market Momentum
MACD
0.26
Negative
RSI
54.15
Neutral
STOCH
56.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRME, the sentiment is Neutral. The current price of 3.81 is above the 20-day moving average (MA) of 3.49, above the 50-day MA of 3.30, and below the 200-day MA of 3.92, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 54.15 is Neutral, neither overbought nor oversold. The STOCH value of 56.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRME.

Prime Medicine, Inc. Risk Analysis

Prime Medicine, Inc. disclosed 80 risk factors in its most recent earnings report. Prime Medicine, Inc. 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

Prime Medicine, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$2.13B-16.47-56.07%3.42%-11.04%
52
Neutral
$4.52B-12.72-43.94%39.04%29.88%
52
Neutral
$425.02M-43.82%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
$764.01M-188.82%4.89%24.20%
47
Neutral
$1.09B-4.11-161.87%-6.15%
44
Neutral
$1.34B-4.97-45.27%-72.09%-754.83%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PRME
Prime Medicine, Inc.
3.78
-1.02
-21.25%
IMTX
Immatics
9.68
3.57
58.43%
RLAY
Relay Therapeutics
20.01
16.45
461.94%
TSHA
Taysha Gene Therapies
6.34
3.70
140.15%
SANA
Sana Biotechnology
3.85
-0.37
-8.77%
UPB
Upstream Bio, Inc.
7.53
-4.20
-35.81%

Prime Medicine, Inc. Corporate Events

Business Operations and StrategyLegal Proceedings
Prime Medicine resolves arbitration, clarifying PM647 development rights
Positive
Jul 8, 2026
On July 6, 2026, Prime Medicine, Inc. received a final award from an arbitration tribunal in its dispute with Beam Therapeutics, Inc. over a 2019 collaboration and license agreement. The tribunal ruled that Prime’s AATD candidate PM647 falls...
Executive/Board ChangesShareholder Meetings
Prime Medicine Stockholders Reaffirm Board and Auditor Choices
Positive
Jun 8, 2026
On June 5, 2026, Prime Medicine, Inc. held its annual meeting of stockholders via live webcast, with 140,384,724 shares represented, establishing a quorum out of 180,615,889 eligible shares. At the meeting, shareholders elected Michael Kelly and D...
Business Operations and StrategyExecutive/Board Changes
Prime Medicine Appoints Svetlana Makhni as New CFO
Positive
Apr 16, 2026
On April 7, 2026, Prime Medicine’s board appointed Svetlana Makhni, a veteran biotechnology and healthcare finance executive with more than two decades of investment banking and CFO experience, as Chief Financial Officer and principal financ...
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: Jul 11, 2026