Prime Medicine, Inc. (PRME) AI Stock Analysis

• Market Cap: $635.54M
• Dividend Yield: N/A
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.07
• Revenue Growth: 647.13%
• EPS Growth: 26.79%
• Country: US
• Employees: 214
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.22
• Shares Outstanding: 180,552,190
• 10 Day Avg. Volume: 2,630,000
• 30 Day Avg. Volume: 2,664,018
• PEG Ratio: 0.14
• Price to Book (P/B): 4.27
• Price to Sales (P/S): 111.44
• P/FCF Ratio: -3.09
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 148.73
• Enterprise Value/Gross Profit: -256.21
• Enterprise Value/Ebitda: -3.52
• 1Y Price Target: $5.50
• Price Target Upside: 56.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.92
• Revenue Forecast (FY): $18.20M

• Rating: 50 Neutral
• Price Target: $3.50 ▼(-0.57% Downside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

Score is held back primarily by weak financial performance (large ongoing losses, significant cash burn, and increased debt), partially offset by improving technical momentum and constructive corporate updates on pipeline progress and runway. Valuation is constrained by negative earnings and no dividend support.

Positive Factors

Proprietary Platform / Competitive Advantage

Prime Editing is presented as a platform technology with broad applicability across genetic diseases. A durable platform offers scalable R&D leverage, multiple program opt-ins for partners, and potential royalty streams — creating a structural competitive moat if clinical success continues.

Diversified, clinic-focused pipeline

Multiple near-term regulatory filings and varied indications reduce single-program binary risk and increase optionality. A pipeline spanning liver, rare disease and ex vivo collaborations supports long-term value creation via internal assets or partnering/licensing opportunities.

Near-term runway / year-end cash

A reported cash balance backing operations into 2027 materially extends the company’s ability to execute planned filings and early clinical studies without immediate dilution. This runway provides time to reach value-driving milestones or secure higher-value partnerships.

Negative Factors

Large, persistent cash burn

Sustained multi-hundred-million dollar losses and deeply negative operating cash flow indicate ongoing high funding needs. Over 2-6 months this structural burn trajectory raises dilution and financing risk unless offset by material revenue or major partnerships.

Rising leverage and financing risk

Rapid debt accumulation alongside losses shifts the capital structure toward higher leverage, reducing financial flexibility. Elevated debt increases interest and covenant risks and limits the firm's ability to respond to setbacks without dilutive financing or costly debt solutions.

Limited revenue and negative margins

Commercial revenue remains negligible versus R&D and G&A spend, leaving margins deeply negative. Without scalable product revenues or recurring license streams, long-term sustainability depends on successful clinical readouts or partnerships, which are inherently binary.

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 is a clinical-stage biotechnology company; detailed, recurring product revenue is null. Its income is primarily expected to come from (1) collaboration and licensing arrangements for its Prime Editing technology (e.g., upfront payments, research funding, milestone payments tied to development/regulatory/commercial events, and royalties on sales by partners if partnered products reach market), and (2) potential future product sales if/when the company successfully develops and commercializes its own therapies. Like many development-stage biotechs, it has historically relied heavily on external financing (e.g., equity offerings) to fund R&D and operations; the specific contribution of each source and the identity/terms of significant partnerships are null if not disclosed in the referenced public materials.

Prime Medicine, Inc. Financial Statement Overview

Summary

Development-stage profile with very large, persistent losses (2025 net loss ~$201M) and heavy cash burn (2025 operating cash flow ~-$163M; FCF ~-$167M). Balance sheet is a partial offset with positive equity (~$121M), but debt rose sharply to ~$116M, increasing financing risk.

Income Statement

Prime Medicine’s income statement reflects an early-stage biotech profile: revenues are small and inconsistent (2025 revenue of ~$4.6M vs. ~$3.0M in 2024, with a decline indicated in the latest year), while losses are very large and persistent (2025 net loss of ~-$201M; EBIT and EBITDA deeply negative). Profitability is materially weak with very negative net and operating margins, indicating the cost base is far ahead of current revenue scale. A modest positive is that reported net margin improved versus 2024, but overall earnings power remains far from breakeven.

Balance Sheet

The balance sheet shows moderate financial flexibility but rising leverage risk. Equity remains positive (~$121M in 2025), yet total debt increased sharply to ~$116M in 2025 from ~$41M in 2024, pushing debt relative to equity close to 1.0. Total assets grew to ~$343M, but returns on equity are strongly negative, reflecting the ongoing losses. Strength: the company is not over-levered by absolute size for biotech, but the rapid debt build alongside sustained losses increases financing and dilution risk if cash needs persist.

Cash Flow

Cash flow is weak with significant cash burn: operating cash flow was ~-$163M in 2025 (worse than ~-$123M in 2024) and free cash flow was ~-$167M in 2025. While free cash flow loss appears less severe than 2023 and 2022 levels, it remains deeply negative and indicates continued reliance on external funding. A relative positive is that free cash flow is broadly aligned with reported net loss (cash burn roughly tracking accounting losses), but the overall trajectory still suggests substantial ongoing funding needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.63M	2.98M	0.00	0.00	0.00
Gross Profit	-2.69M	2.98M	0.00	0.00	0.00
EBITDA	-195.76M	-196.34M	-186.64M	-114.32M	-83.91M
Net Income	-201.14M	-195.88M	-198.13M	-121.82M	-165.37M
Balance Sheet
Total Assets	342.73M	297.51M	193.85M	360.31M	301.86M
Cash, Cash Equivalents and Short-Term Investments	177.68M	190.44M	121.67M	293.92M	269.62M
Total Debt	116.43M	40.79M	13.63M	28.75M	10.41M
Total Liabilities	221.87M	144.36M	60.78M	44.04M	62.30M
Stockholders Equity	120.87M	153.15M	133.07M	316.27M	239.56M
Cash Flow
Free Cash Flow	-167.09M	-130.16M	-174.14M	-147.92M	-38.23M
Operating Cash Flow	-162.56M	-122.86M	-165.41M	-131.83M	-34.08M
Investing Cash Flow	-108.76M	68.46M	18.71M	-47.10M	-73.63M
Financing Cash Flow	151.51M	195.88M	655.00K	181.49M	269.28M

Prime Medicine, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.52 is below the 20-day moving average (MA) of 3.94, below the 50-day MA of 3.86, and below the 200-day MA of 3.93, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 10.53 is Positive, 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
RLAY	59 Neutral	$1.77B	-5.25	-43.17%	―	-16.50%	33.02%
TSHA	53 Neutral	$1.26B	-16.13	-56.64%	―	-36.36%	-945.72%
UPB	52 Neutral	$468.51M	-7.51	-28.71%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IMTX	51 Neutral	$1.26B	-5.79	-39.69%	―	-27.61%	-69.49%
PRME	50 Neutral	$635.54M	-2.57	-178.61%	―	647.13%	26.79%
SANA	46 Neutral	$829.96M	-4.22	-141.99%	―	―	31.16%

Prime Medicine, Inc. Corporate Events

Prime Medicine Reports 2025 Results, Advances Gene Editing Pipeline

On March 3, 2026, Prime Medicine reported full-year 2025 financial results and outlined progress across its Prime Editing pipeline, highlighting liver-focused in vivo gene editing programs for Wilson disease and Alpha-1 antitrypsin deficiency, with investigational filings planned for the first half and mid-2026 and initial clinical data expected in 2027. The company also emphasized encouraging Phase 1/2 data for PM359 in chronic granulomatous disease published in December 2025, ongoing FDA engagement toward a potential Biologics License Application, advancement of a cystic fibrosis program and CAR-T collaborations, and a year-end 2025 cash position of $191.4 million that management expects will fund operations into 2027 despite a net loss of $201.1 million.

Prime Medicine’s 2025 results showed R&D expenses rising to $160.6 million and G&A costs increasing modestly to $52.3 million, reflecting continued investment in its in vivo liver franchise and platform while deprioritizing its CGD program and reducing R&D headcount. The combination of robust early clinical data, a diversified development portfolio and a cash runway into 2027 positions the company to seek accelerated approval for PM359 and to strengthen its standing in the competitive gene editing field, though sustained losses underscore ongoing execution and financing risk for investors and partners.

The most recent analyst rating on (PRME) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Prime Medicine, Inc. stock, see the PRME Stock Forecast page.

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.