Prime Medicine, Inc. (PRME) AI Stock Analysis

• Market Cap: $778.00M
• Dividend Yield: N/A
• Average Volume (3M): 3.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.03
• Revenue Growth: 647.13%
• EPS Growth: 26.79%
• Country: US
• Employees: 214
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.32
• Shares Outstanding: 180,510,650
• 10 Day Avg. Volume: 3,114,799
• 30 Day Avg. Volume: 3,469,140
• PEG Ratio: 0.07
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 116.10
• P/FCF Ratio: -2.66
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 132.85
• Enterprise Value/Gross Profit: -19.91
• Enterprise Value/Ebitda: -4.11
• 1Y Price Target: $6.06
• Price Target Upside: 40.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -0.93
• Revenue Forecast (FY): $18.22M

• Rating: 50 Neutral
• Price Target: $4.00 ▼(-7.19% Downside)

The score is held back primarily by weak financial performance (large ongoing losses, negative gross profit, and significant cash burn alongside rising debt). Technicals are mixed but slightly improved near-term, valuation is constrained by negative earnings, and the recent strategy update provides a moderate positive offset due to clearer development timelines and partnership emphasis.

Positive Factors

Clinical Progress

The positive clinical data for PM359 in treating chronic granulomatous disease indicates potential for successful therapy development, supporting long-term growth and market entry.

Strategic Leadership

The appointment of a new Chief Business Officer with deep experience can enhance strategic partnerships and business development, strengthening the company's competitive position.

Pipeline Development

Advancing pipeline candidates like PM647 for AATD showcases innovation and commitment to addressing genetic diseases, potentially leading to future revenue streams.

Negative Factors

Financial Performance

Ongoing large losses and negative gross profit highlight financial instability, posing risks to sustainability and necessitating continued external funding.

Cash Flow Challenges

Negative cash flow indicates persistent cash burn, requiring external financing and posing a risk to long-term operational viability without successful commercialization.

Rising Debt Levels

Rising debt levels increase financial risk and reduce flexibility, potentially limiting the company's ability to invest in R&D and strategic initiatives.

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 with substantial financial challenges, including significant operational losses and negative cash flows. While revenue growth is stagnant, the company maintains a liquidity buffer through cash and short-term investments. However, it heavily relies on equity financing to cover deficits, posing risks if external funding becomes scarce.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.98M	2.98M	0.00	0.00	0.00	5.21M
Gross Profit	-39.88M	2.98M	0.00	0.00	0.00	2.23M
EBITDA	-193.41M	-196.34M	-186.64M	-114.32M	-83.91M	-889.00K
Net Income	-197.34M	-195.88M	-198.13M	-121.82M	-165.37M	-3.41M
Balance Sheet
Total Assets	385.01M	297.51M	193.85M	360.31M	301.86M	54.78M
Cash, Cash Equivalents and Short-Term Investments	208.43M	190.44M	121.67M	293.92M	269.62M	53.33M
Total Debt	118.14M	40.79M	13.63M	28.75M	10.41M	0.00
Total Liabilities	223.19M	144.36M	60.78M	44.04M	62.30M	21.31M
Stockholders Equity	161.82M	153.15M	133.07M	316.27M	239.56M	33.47M
Cash Flow
Free Cash Flow	-115.09M	-130.16M	-174.14M	-147.92M	-38.23M	-6.18M
Operating Cash Flow	-109.06M	-122.86M	-165.41M	-131.83M	-34.08M	-5.54M
Investing Cash Flow	-88.84M	68.46M	18.71M	-47.10M	-73.63M	-1.06M
Financing Cash Flow	150.95M	195.88M	655.00K	181.49M	269.28M	34.93M

Prime Medicine, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.31
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 4.31 is above the 20-day moving average (MA) of 3.76, above the 50-day MA of 3.80, and above the 200-day MA of 3.40, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 52.55 is Neutral, neither overbought nor oversold. The STOCH value of 69.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRME.

Prime Medicine, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMTX	56 Neutral	$1.32B	-9.07	-29.01%	―	-27.61%	-69.49%
TSHA	53 Neutral	$1.38B	-13.82	-64.93%	―	-36.36%	-945.72%
UPB	52 Neutral	$1.75B	-13.53	-40.80%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SANA	51 Neutral	$1.26B	-4.81	-96.11%	―	―	31.16%
PRME	50 Neutral	$778.00M	-2.70	-112.34%	―	647.13%	26.79%
RLAY	50 Neutral	$1.40B	-4.36	-41.14%	―	-16.50%	33.02%

Prime Medicine, Inc. Corporate Events

Prime Medicine updates corporate strategy for Prime Editing platform

On January 12, 2026, Prime Medicine, Inc. released an updated corporate presentation outlining its progress and near-term plans for its Prime Editing platform, highlighting clinical-stage and preclinical programs in Wilson disease, alpha-1 antitrypsin deficiency, cystic fibrosis and chronic granulomatous disease. The company detailed timelines to file regulatory applications and initiate Phase 1 trials for its liver-focused candidates PM577 and PM647 in 2026, with initial clinical data expected in 2027, and described its intention to expand its pipeline organically around its liver franchise and through business development and strategic partnerships, including prior agreements with the Cystic Fibrosis Foundation and Bristol Myers Squibb. The presentation emphasized Prime Medicine’s view of Prime Editing as a leading, versatile gene-editing technology with broad potential across multiple disease areas, supported by emerging clinical data and ongoing regulatory interactions, and framed its disciplined clinical development and partnership strategy as key to maximizing platform impact and ensuring patient access to future therapies.

The most recent analyst rating on (PRME) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Prime Medicine, Inc. stock, see the PRME Stock Forecast page.