Beam Therapeutics (BEAM) has received a new Hold rating, initiated by JonesTrading analyst, Soumit Roy.
Soumit Roy has given his Hold rating due to a combination of factors surrounding Beam Therapeutics' current position in the gene editing market and its valuation relative to clinical data. Beam Therapeutics is recognized for its base editing platform and holds a considerable enterprise value (EV) of over $1.3 billion. However, its leading indications are in highly competitive areas, namely sickle cell disease (SCD) and alpha-1 antitrypsin deficiency (AATD), where other companies are already progressing with clinical data. As Beam Therapeutics has not yet presented clinical data, and its first set of data is not expected until late 2024 for SCD and 2025 for AATD, there is a level of uncertainty that underpins the Hold rating.
Roy notes that while Beam Therapeutics could potentially establish itself as a player in the gene editing field, the company is trailing behind competitors such as Editas, which is on track to present potentially pivotal data within the same timeframe. Furthermore, Beam's implied EV is considered high when compared to peers who already have clinical data to support their valuations. The report suggests that clinical results are needed to justify Beam's market valuation and increase the probability of success (POS) estimates before considering a more favorable rating. Overall, the Hold rating reflects a cautious approach due to the absence of clinical validation and the competitive landscape that Beam operates within.
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Beam Therapeutics (BEAM) Company Description:
Beam Therapeutics, Inc. develops and commercializes DNA base editing technologies for the treatment of human disease. Its licensed technology platform, which includes access to base editing technologies and associated technologies that enhance the scope of base editing. The company was founded by David R. Liu, Feng Zhang and J. Keith Joung on January 25, 2017 and is headquartered in Cambridge, MA.