Beam to raise cash

Beam Therapeutics is kicking off a share sale, almost eight months after raising USD 207.00 million in its initial public offering on Nasdaq.

The gene-editing biotechnology company is selling 4.50 million new stocks and providing underwriters with an overallotment option for as many as 675,000 additional scrips.

Based on the last reported closing price of USD 26.76 apiece on 25th September, the total offering could fetch up to USD 138.48 million.

JPMorgan, Jefferies and Barclays are joint bookrunning managers, while Wedbush PacGrow is lead manager.

Beam’s proprietary base editing technology potentially enables an entirely new class of precision genetic medicines that targets a single base in the genome without making a double-stranded break in the DNA.

This approach uses a chemical reaction designed to create precise, predictable and efficient genetic outcomes at the targeted sequence.

Beam incurred a net loss of USD 64.68 million in the six months ended 30th June 2020, wider that the USD 30.76 million loss recorded in H1 2019.

Proceeds will fund the continued advancement of its platform technology, for research and development of its existing portfolio of base editing programmes, and for conducting preclinical trials.

Money raised will also bankroll investigational new drug-enabling studies and the potential initiation of clinical ones for certain of its current candidates, for building-out its in-house manufacturing facility, and for general corporate purposes.

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As of 30th June 2020, it had cash, equivalents, and marketable securities of USD 228.00 million.

Zephyr, the M&A database published by Bureau van Dijk, shows 1,176 capital increases targeting the pharmaceuticals, biotechnology and life sciences sectors have been announced in 2020 to date.

Companies based in the US account for 186 of these cash calls, with Moderna’s USD 1.25 billion representing the largest to date.

© Zephus Ltd

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