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Editas Medicine, Inc. (EDIT)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered collaboration and other R&D revenue of $30.6M and diluted EPS of $(0.55); sequentially stronger vs Q3’s de minimis revenue ($0.06M) but down year over year vs $60.0M in Q4 2023 .
  • Strategic pivot: company formally ended reni-cel development (December 2024) and accelerated in vivo gene upregulation programs across hematopoietic stem cells (HSCs) and liver; headcount cut ~65% to reallocate spend to in vivo .
  • Cash runway extended into Q2 2027, supported by cash/marketable securities of $269.9M at year-end 2024 and monetization of portions of Vertex-related payments; restructuring charges in Q4 were $12.2M related to reni-cel discontinuation .
  • No Q4 earnings call; management emphasizes mid-2025 declarations of two in vivo development candidates (HSC and liver) and additional target tissue disclosure by year-end 2025 as near-term catalysts .

What Went Well and What Went Wrong

What Went Well

  • Achieved in vivo preclinical proof-of-concept across multiple tissues, including effective HSC editing of HBG1/2 via targeted LNPs and high-efficiency liver editing (non-human primates), validating gene upregulation strategy and “plug ‘n play” delivery beyond liver .
  • CEO: “Our objective and strategy to become a leader in in vivo gene editing accelerated…demonstrating the potential…to achieve gene upregulation…that could potentially drive cures across tissues with a single dose” .
  • CSO: “Our progress highlights the potential of our gene upregulation strategy across multiple tissues with our ‘plug ‘n play’ program” .

What Went Wrong

  • Reni-cel program discontinued after inability to secure a commercial partner; workforce reduced ~65%, incurring Q4 restructuring charges of $12.2M and estimated total discontinuation/exit costs of ~$45–$55M included in runway planning .
  • Collaboration and R&D revenue fell year over year to $30.6M in Q4 2024 from $60.0M in Q4 2023 due to prior-year Vertex-related upfront recognition; full-year 2024 revenue was $32.3M vs $78.1M in 2023 .
  • No quarterly earnings call in Q3 and Q4, reducing real-time visibility; investors must rely on press releases and prior strategic webinar for updates .

Financial Results

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Collaboration & other R&D revenues ($USD Millions)$60.0 $0.5 $0.06 $30.6
Net loss ($USD Millions)$(18.9) $(67.6) $(62.1) $(45.4)
Diluted EPS ($USD)$(0.23) $(0.82) $(0.75) $(0.55)
Weighted-average diluted shares (Millions)81.7 82.3 82.5 82.6

Operating detail (Q4 2024 vs Q4 2023 and quarterly trend):

Metric ($USD Millions)Q4 2023Q2 2024Q3 2024Q4 2024
Research & development$69.6 $54.2 $47.6 $48.6
General & administrative$14.5 $18.2 $18.1 $16.4
Restructuring charges$0.0 $0.0 $0.0 $12.2

Selected balance and liquidity KPIs:

Metric ($USD Millions)Dec 31, 2023Sep 30, 2024Dec 31, 2024
Cash, cash equivalents & marketable securities$427.1 $265.1 $269.9
Working capital$277.6 $198.8 $212.1
Total assets$499.2 $327.6 $341.6
Deferred revenue (non-current)$60.7 $54.2 $54.2
Stockholders’ equity$349.1 $175.6 $134.3

Narrative comparisons:

  • Q4 2024 revenue decline vs Q4 2023 reflects lapping of prior Vertex upfront recognition; sequential revenue rebound vs Q3 as collaboration timing benefited Q4 .
  • Q4 2024 net loss improved sequentially vs Q3, aided by higher collaboration revenue and interest income, but included $12.2M restructuring tied to reni-cel discontinuation .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash runwayCorporateInto Q2 2026 (post DRI monetization in Q3) Into Q2 2027 (post pivot, cost actions) Raised runway (extended)
Reni-cel programCorporatePartner/out-license process underway (Q3) Development ended (Dec 2024) Lowered (program discontinued)
Restructuring & exit costsCorporateNot specified~$45–$55M total costs included in runway New disclosure
Quarterly earnings callsCorporateNo Q3 call (webinar replay) No Q4 call going forward Maintained “no call”
In vivo HSC candidateR&D milestoneUpdate in 1Q25 Declare development candidate mid-2025 Timing refined
In vivo liver candidateR&D milestoneCollaboration with Genevant; NHP POC Declare development candidate mid-2025 Timing refined
Additional cell/tissue targetR&D milestone“Plug ‘n play” exploration Establish one additional target cell/tissue by year-end 2025 New target timeline

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Q3 2024Current Period (Q4 2024)Trend
In vivo gene upregulation strategyDetailed strategy vs knockdown; AsCas12a differentiation; LNP delivery across tissues In vivo HSPC POC via tLNP; webinar update Acceleration; HSC/liver candidate declarations mid-2025; extrahepatic “plug ’n play” Strengthening focus and timelines
Reni-cel BD/CommercializationExploring partnering; BLA package benchmarking CASGEVY; commercialization learnings Out-license process initiated (Moelis); continued dosing Program discontinued; cost reallocation to in vivo Strategy pivot away from ex vivo
Regulatory/Legal (IP)CAFC process timing update sought; robust off-target dataset positioning Not a focus in Q3 pressNot emphasized in Q4 press release Deprioritized vs R&D pivot
R&D execution (HSC/liver)Orphan-first indications; proof-of-concept target selection and delivery partners HSPC in vivo POC; Genevant liver collaboration Non-human primate liver POC; humanized mice HSC POC; further data by YE 2025 Execution milestones advancing
Investor communicationsTraditional Q&A; live call No call (webinar replay) No quarterly calls going forward Reduced live interaction

Management Commentary

  • CEO (Gilmore O’Neill): “We believe the ability to provide in vivo gene editing via gene upregulation holds the potential to significantly expand the addressable therapeutic possibilities for CRISPR-based gene editing, and we are poised to make meaningful progress towards the clinic in 2025” .
  • CSO (Linda Burkly): “Our progress highlights the potential of our gene upregulation strategy across multiple tissues with our ‘plug ‘n play’ program” .
  • Strategic pivot statement: “We are transitioning to a fully in vivo company…ending development of reni-cel…to accelerate our intent to achieve in vivo human proof of concept in approximately two years” .

Q&A Highlights

Note: No Q4 earnings call; most recent Q&A themes from Q2 2024 call remain informative:

  • Reni-cel BLA readiness and differentiation vs benchmarks (CASGEVY), with FDA alignment and robust off-target/manufacturing packages under development .
  • In vivo approach specifics: tissue-targeted LNP delivery, AsCas12a fidelity, and upregulation strategy vs knockdown; indications selected for clinical translatability and orphan-first ROI (~$400–$500M market sizes) .
  • Commercial considerations: payer pathways, fertility preservation support context (CMMI carve-outs), and ex-U.S. partnering approach for eventual launches .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at the time of analysis; no quantitative estimate comparison could be made. The company did not host a Q4 earnings call and did not provide quantitative guidance metrics beyond runway and program milestones .

Key Takeaways for Investors

  • Near-term stock catalysts center on mid-2025 declarations of two in vivo development candidates (HSC and liver) and year-end 2025 disclosure of an additional target tissue; expect incremental preclinical data flow through 2025 .
  • The strategic exit from reni-cel and 65% headcount reduction meaningfully extends runway into Q2 2027 and reorients spend toward in vivo programs; monitor execution discipline vs milestone timelines .
  • Collaboration revenue is inherently lumpy and driven by partner timing; Q4 showed a rebound vs Q3, but year-over-year declines reflect lapping of Vertex-related upfront recognition .
  • Risk profile shifts from late-stage ex vivo to preclinical in vivo; delivery, editing efficiency, and regulatory path for in vivo will be key diligence areas (HSC/liver POC achieved across models) .
  • Reduced live investor engagement (no quarterly calls) heightens importance of press releases and scientific conference updates; traders should track scheduled events and data presentations .
  • Non-GAAP impacts from restructuring ($12.2M in Q4; ~$45–$55M total expected) are transitory; watch for OpEx re-base as in vivo focus matures .
  • Business development remains a lever (IP licensing, collaborations) to supplement funding for in vivo roadmap; prior monetization (DRI deal) illustrates willingness to use non-dilutive capital .