beam-10q_20200930.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM                 TO                 

Commission File Number 001-39208

 

Beam Therapeutics Inc.

(Exact name of Registrant as specified in its Charter)

 

 

Delaware

81-5238376

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

 

26 Landsdowne Street

Cambridge, MA

02139

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code: (857) 327-8775

Securities registered pursuant to Section 12(b) of the Act:

 

 

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

Common Stock, par value $0.01 per share

BEAM

Nasdaq Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES      NO  

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    YES      NO  

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES      NO  

 

The number of shares of registrant’s common stock outstanding as of November 6, 2020 was 57,965,991.

 

 

 


 

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such forward-looking statements reflect, among other things:

 

our current expectations and anticipated results of operations;

 

the initiation, timing, progress and results of our research and development programs and preclinical and clinical studies, including the expected timing of filing Investigation New Drug, or IND, applications and the therapeutic applications of our technology;

 

our ability to advance any product candidates that we may develop and successfully complete any clinical studies, including the manufacture of any such product candidates;

 

our ability to pursue a comprehensive suite of clinically validated delivery modalities;

 

our ability to quickly leverage our initial programs and to progress additional programs to create a clinical portfolio;

 

the scope of protection we are able to establish and maintain for intellectual property rights covering our product candidates and technology;

 

developments related to our competitors and our industry;

 

our ability to leverage the clinical, regulatory, and manufacturing advancements made by gene therapy and gene editing programs to accelerate our clinical trials and approval of product candidates;

 

the expected timing, progress and success of our collaborations with third parties and our ability to identify and enter into future license agreements and collaborations;

 

developments related to base editing technologies;

 

our ability to successfully develop our three distinct pipelines and obtain and maintain approval for our product candidates;

 

our ability to successfully establish and maintain a commercial-scale current Good Manufacturing Practice, or cGMP, manufacturing facility and that this facility will be operational in 2023;

 

regulatory developments in the United States and foreign countries;

 

our ability to attract and retain key scientific and management personnel; and

 

the impact of the coronavirus disease of 2019, or COVID-19, pandemic on our business.

All of these statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, or industry results to differ materially from those expressed or implied by such forward-looking statements. Therefore, any statements contained herein that are not statements of historical fact may be forward-looking statements and should be evaluated as such. Without limiting the foregoing, the words “anticipate,” “expect,” “suggest,” “plan,” “believe,” “intend,” “project,” “forecast,” “estimates,” “targets,” “projections,” “should,” “could,” “would,” “may,” “might,” “will,” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Risk Factors” in Part II, Item 1A of this report. Unless legally required, we assume no obligation to update any such forward-looking information to reflect actual results or changes in the factors affecting such forward-looking information.

When we use the terms “Beam,” the “Company,” “we,” “us” or “our” in this Quarterly Report on Form 10-Q, we mean Beam Therapeutics Inc. and its subsidiaries on a consolidated basis, unless the context indicates otherwise.

 


 

Table of Contents

 

 

 

Page

PART I

Financial Information

 

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets

1

 

Condensed Consolidated Statements of Operations and Other Comprehensive Loss

2

 

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

3

 

Condensed Consolidated Statements of Cash Flows

5

 

Notes to Condensed Consolidated Financial Statements

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

32

Item 4.

Controls and Procedures

32

 

 

 

PART II

Other Information

 

Item 1.

Legal Proceedings

33

Item 1A.

Risk Factors

33

Item 2.

Unregistered Sales of Equity Security and Uses of Proceeds

34

Item 6.

Exhibits

35

 

 

 

 


 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

Beam Therapeutics Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except share and per share amounts)

 

 

September 30,

2020

 

 

December 31,

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

137,903

 

 

$

37,221

 

Marketable securities

 

 

64,317

 

 

 

54,627

 

Prepaid expenses and other current assets

 

 

6,487

 

 

 

2,696

 

Total current assets

 

 

208,707

 

 

 

94,544

 

Property and equipment, net

 

 

29,404

 

 

 

24,290

 

Restricted cash

 

 

14,840

 

 

 

13,332

 

Operating lease right-of-use assets

 

 

21,776

 

 

 

18,957

 

Other assets

 

 

3,546

 

 

 

4,976

 

Total assets

 

$

278,273

 

 

$

156,099

 

Liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

6,569

 

 

$

7,846

 

Accrued expenses and other current liabilities

 

 

18,309

 

 

 

7,852

 

Derivative liabilities

 

 

16,500

 

 

 

7,800

 

Current portion of lease liability

 

 

4,340

 

 

 

4,337

 

Current portion of equipment financing liability

 

 

1,733

 

 

 

1,303

 

Total current liabilities

 

 

47,451

 

 

 

29,138

 

Long-term lease liability

 

 

23,810

 

 

 

21,187

 

Long-term equipment financing liability

 

 

4,448

 

 

 

4,411

 

Other liabilities

 

 

2,493

 

 

 

418

 

Total liabilities

 

 

78,202

 

 

 

55,154

 

Commitments and contingencies (See Note 7, Leases, and Note 8, License agreements)

 

 

 

 

 

 

 

 

Redeemable convertible preferred stock

 

 

 

 

 

302,049

 

Stockholders’ equity (deficit):

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value; 25,000,000 and no shares authorized, and no shares issued or outstanding at September 30, 2020 and December 31, 2019, respectively

 

 

 

 

 

 

Common stock, $0.01 par value; 250,000,000 and 205,000,000 shares authorized, 51,930,943 and 9,981,991 issued, and 50,438,740 and 7,326,185 outstanding at September 30, 2020 and December 31, 2019, respectively

 

 

504

 

 

 

73

 

Additional paid-in capital

 

 

501,698

 

 

 

1,851

 

Accumulated other comprehensive income

 

 

41

 

 

 

16

 

Accumulated deficit

 

 

(302,172

)

 

 

(203,044

)

Total stockholders’ equity (deficit)

 

 

200,071

 

 

 

(201,104

)

Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)

 

$

278,273

 

 

$

156,099

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

1


 

Beam Therapeutics Inc.

Condensed Consolidated Statements of Operations and Other Comprehensive Loss

(Unaudited)

(in thousands, except share and per share amounts)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

License revenue

 

$

6

 

 

$

6

 

 

$

18

 

 

$

12

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

29,825

 

 

 

12,543

 

 

 

70,728

 

 

 

34,402

 

General and administrative

 

 

7,502

 

 

 

5,487

 

 

 

21,251

 

 

 

14,393

 

Total operating expenses

 

 

37,327

 

 

 

18,030

 

 

 

91,979

 

 

 

48,795

 

Loss from operations

 

 

(37,321

)

 

 

(18,024

)

 

 

(91,961

)

 

 

(48,783

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of derivative liabilities

 

 

2,700

 

 

 

(1,600

)

 

 

(8,700

)

 

 

(3,600

)

Interest and other income (expense), net

 

 

169

 

 

 

619

 

 

 

1,533

 

 

 

1,907

 

Total other income (expense)

 

 

2,869

 

 

 

(981

)

 

 

(7,167

)

 

 

(1,693

)

Net loss

 

$

(34,452

)

 

$

(19,005

)

 

$

(99,128

)

 

$

(50,476

)

Unrealized (loss) gain on marketable securities

 

 

(132

)

 

 

(35

)

 

 

25

 

 

 

48

 

Comprehensive loss

 

$

(34,584

)

 

$

(19,040

)

 

$

(99,103

)

 

$

(50,428

)

Reconciliation of net loss to net loss attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(34,452

)

 

$

(19,005

)

 

$

(99,128

)

 

$

(50,476

)

Accretion of redeemable convertible preferred stock to redemption value, including dividends on preferred stock

 

 

 

 

 

(3,262

)

 

 

(1,277

)

 

 

(9,451

)

Net loss attributable to common stockholders

 

$

(34,452

)

 

$

(22,267

)

 

$

(100,405

)

 

$

(59,927

)

Net loss per common share attributable to common stockholders, basic and diluted

 

$

(0.69

)

 

$

(3.31

)

 

$

(2.31

)

 

$

(9.58

)

Weighted-average common shares used in net loss per share attributable to common stockholders, basic and diluted

 

 

50,087,747

 

 

 

6,717,792

 

 

 

43,438,919

 

 

 

6,254,069

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

2


 

Beam Therapeutics Inc.

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(Unaudited)

(in thousands, except share amounts)

 

 

Redeemable Convertible

Preferred Stock

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

(Loss) Income

 

 

Deficit

 

 

Deficit

 

Balance at December 31, 2018

 

 

119,308,387

 

 

$

251,434

 

 

 

 

5,565,368

 

 

$

56

 

 

$

7,256

 

 

 

 

 

$

(124,718

)

 

$

(117,406

)

Issuance of Series B redeemable convertible preferred stock, net of issuance costs of $0.1 million

 

 

11,308,397

 

 

 

37,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accretion of redeemable convertible preferred stock to redemption value

 

 

 

 

 

2,963

 

 

 

 

 

 

 

 

 

 

(2,963

)

 

 

 

 

 

 

 

 

(2,963

)

Vesting of restricted common stock

 

 

 

 

 

 

 

 

 

388,562

 

 

 

4

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

Issuance of common stock related to license agreement

 

 

 

 

 

 

 

 

 

16,725

 

 

 

 

 

 

113

 

 

 

 

 

 

 

 

 

113

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

869

 

 

 

 

 

 

 

 

 

869

 

Exercise of common stock options

 

 

 

 

 

 

 

 

 

12,502

 

 

 

 

 

 

7

 

 

 

 

 

 

 

 

 

7

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,610

)

 

 

(13,610

)

Balance at March 31, 2019

 

 

130,616,784

 

 

$

292,298

 

 

 

 

5,983,157

 

 

$

60

 

 

$

5,278

 

 

$

 

 

$

(138,328

)

 

$

(132,990

)

Accretion of redeemable convertible preferred stock to redemption value

 

 

 

 

 

3,226

 

 

 

 

 

 

 

 

 

 

(3,226

)

 

 

 

 

 

 

 

 

(3,226

)

Vesting of restricted common stock

 

 

 

 

 

 

 

 

 

393,440

 

 

 

4

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,073

 

 

 

 

 

 

 

 

 

2,073

 

Exercise of common stock options

 

 

 

 

 

 

 

 

 

57,496

 

 

 

1

 

 

 

47

 

 

 

 

 

 

 

 

 

48

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83

 

 

 

 

 

 

83

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,861

)

 

 

(17,861

)

Balance at June 30, 2019

 

 

130,616,784

 

 

$

295,524

 

 

 

 

6,434,093

 

 

$

65

 

 

$

4,168

 

 

$

83

 

 

$

(156,189

)

 

$

(151,873

)

Accretion of redeemable convertible preferred stock to redemption value

 

 

 

 

 

3,226

 

 

 

 

 

 

 

 

 

 

(3,262

)

 

 

 

 

 

 

 

 

(3,262

)

Vesting of restricted common stock

 

 

 

 

 

 

 

 

 

389,261

 

 

 

4

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,029

 

 

 

 

 

 

 

 

 

2,029

 

Exercise of common stock options

 

 

 

 

 

 

 

 

 

80,300

 

 

 

 

 

 

81

 

 

 

 

 

 

 

 

 

81

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(35

)

 

 

 

 

 

(35

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19,005

)

 

 

(19,005

)

Balance at September 30, 2019

 

 

130,616,784

 

 

$

298,750

 

 

 

 

6,903,654

 

 

$

69

 

 

$

3,012

 

 

$

48

 

 

$

(175,194

)

 

$

(172,065

)

3


 

Beam Therapeutics Inc.

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) - Continued

(Unaudited)

(in thousands, except share amounts)

 

 

Redeemable Convertible

Preferred Stock

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

Other

Comprehensive

 

 

Accumulated

 

 

Total

Stockholders’

(Deficit)

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

(Loss) Income

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2019

 

 

130,616,784

 

 

$

302,049

 

 

 

 

7,326,185

 

 

$

73

 

 

$

1,851

 

 

$

16

 

 

$

(203,044

)

 

$

(201,104

)

Accretion of redeemable convertible preferred stock to redemption value

 

 

 

 

 

1,277

 

 

 

 

 

 

 

 

 

 

(1,277

)

 

 

 

 

 

 

 

 

(1,277

)

Conversion of redeemable convertible preferred stock to common stock upon closing of initial public offering

 

 

(130,616,784

)

 

 

(303,326

)

 

 

 

29,127,523

 

 

 

291

 

 

 

303,035

 

 

 

 

 

 

 

 

 

303,326

 

Issuance of common stock from initial public offering, net of issuance costs of $18.7 million

 

 

 

 

 

 

 

 

 

12,176,471

 

 

 

122

 

 

 

188,201

 

 

 

 

 

 

 

 

 

188,323

 

Vesting of restricted common stock

 

 

 

 

 

 

 

 

 

387,866

 

 

 

4

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,792

 

 

 

 

 

 

 

 

 

2,792

 

Exercise of common stock options

 

 

 

 

 

 

 

 

 

59,305

 

 

 

1

 

 

 

151

 

 

 

 

 

 

 

 

 

152

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(360

)

 

 

 

 

 

(360

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(30,458

)

 

 

(30,458

)

Balance at March 31, 2020

 

 

 

 

$

 

 

 

 

49,077,350

 

 

$

491

 

 

$

494,749

 

 

$

(344

)

 

$

(233,502

)

 

$

261,394

 

Vesting of restricted common stock

 

 

 

 

 

 

 

 

 

387,870

 

 

 

4

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,769

 

 

 

 

 

 

 

 

 

2,769

 

Exercise of common stock options

 

 

 

 

 

 

 

 

 

180,517

 

 

 

1

 

 

 

359

 

 

 

 

 

 

 

 

 

360

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

517

 

 

 

 

 

 

517

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34,218

)

 

 

(34,218

)

Balance at June 30, 2020

 

 

 

 

$

 

 

 

 

49,645,737

 

 

$

496

 

 

$

497,873

 

 

$

173

 

 

$

(267,720

)

 

$

230,822

 

Vesting of restricted common stock

 

 

 

 

 

 

 

 

 

387,867

 

 

 

4

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

Issuance of common stock related to license agreement

 

 

 

 

 

 

 

 

 

175,000

 

 

 

2

 

 

 

262

 

 

 

 

 

 

 

 

 

 

 

264

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,012

 

 

 

 

 

 

 

 

 

3,012

 

Exercise of common stock options

 

 

 

 

 

 

 

 

 

230,136

 

 

 

2

 

 

 

555

 

 

 

 

 

 

 

 

 

557

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(132

)

 

 

 

 

 

(132

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34,452

)

 

 

(34,452

)

Balance at September 30, 2020

 

 

 

 

$

 

 

 

 

50,438,740

 

 

$

504

 

 

$

501,698

 

 

$

41

 

 

$

(302,172

)

 

$

200,071

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

4


 

Beam Therapeutics Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

Operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(99,128

)

 

$

(50,476

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

3,463

 

 

 

2,501

 

Amortization of investment discount (premiums)

 

 

49

 

 

 

(670

)

Stock-based compensation expense

 

 

8,573

 

 

 

4,971

 

Change in operating lease right-of-use assets

 

 

3,065

 

 

 

1,019

 

Non-cash research and development license expense, net

 

 

5,164

 

 

 

113