Beam Therapeutics Announces Pricing of Underwritten Offering

Rhea-AI Summary

Beam Therapeutics (Nasdaq: BEAM) has announced the pricing of an underwritten offering of 16,151,686 shares of common stock at $28.48 per share, along with pre-funded warrants for 1,404,988 shares at $28.47 per warrant. The offering is expected to generate approximately $500.0 million in gross proceeds.

The company plans to use the proceeds for advancing its platform technology, research and development activities, and pre-commercialization efforts. Key focus areas include the biologics license application for BEAM-101, advancement of a potential pivotal trial for BEAM-302 targeting alpha-1 antitrypsin deficiency, and development of a Phase 1/2 clinical trial for the ESCAPE conditioning platform in sickle cell disease patients.

The offering is expected to close around March 11, 2025, with J.P. Morgan, Jefferies, Cantor, Citigroup, and Wells Fargo Securities serving as joint book-running managers.

Positive

• Substantial capital raise of $500.0 million strengthens company's financial position
• Funding secured for multiple clinical programs advancement including BEAM-101, BEAM-302, and ESCAPE platform
• Strong institutional backing with major investment banks as joint book-running managers

Negative

• Significant shareholder dilution through issuance of over 17.5 million new shares and warrants
• Offering price of $28.48 represents potential discount to market price

Insights

Biotechnology Financial Analyst

Beam Therapeutics' $500 million offering represents a substantial financial reinforcement at a critical juncture in the company's development timeline. Pricing the shares at $28.48 - essentially at market with no discount - signals strong investor confidence in their base editing platform. The 17.5+ million new shares do create approximately 22% dilution for existing shareholders, but this capital infusion provides important runway for multiple advancing programs.

The strategic allocation of proceeds targets key value-creating milestones: BLA submission and pre-commercial activities for BEAM-101, advancement of a potential pivotal trial for BEAM-302 in alpha-1 antitrypsin deficiency, and progression of their ESCAPE conditioning platform for sickle cell disease. This comprehensive financing should significantly extend their cash runway while funding critical late-stage development programs.

The participation of five major investment banks as joint book-running managers (J.P. Morgan, Jefferies, Cantor, Citigroup and Wells Fargo Securities) further validates institutional confidence in Beam's scientific approach and commercial potential. For genetic medicine companies with capital-intensive development pathways, securing substantial financing without a discount demonstrates market conviction in the company's technology and pipeline progression.

CAMBRIDGE, Mass., March 10, 2025 (GLOBE NEWSWIRE) -- Beam Therapeutics Inc. (Nasdaq: BEAM), a biotechnology company developing precision genetic medicines through base editing, today announced the pricing of an underwritten offering of 16,151,686 shares of its common stock at an offering price of $28.48 per share, and, in lieu of common stock to certain investors, pre-funded warrants to purchase 1,404,988 shares of common stock at an offering price of $28.47 per pre-funded warrant, before deducting underwriter discounts and commissions and estimated offering expenses. Each pre-funded warrant will have an exercise price of $0.01 per share, will be exercisable immediately and will be exercisable until exercised in full. Gross proceeds from the offering are expected to be approximately $500.0 million. All of the securities in the offering are to be sold by Beam Therapeutics. The offering is expected to close on or about March 11, 2025, subject to customary closing conditions.

Beam Therapeutics intends to use the net proceeds from the offering for continued advancement of its platform technology, for continued research, development and pre-commercialization activities for its current portfolio of base editing programs and for other potential programs, including biologics license application submission and pre-commercial activities for BEAM-101, for clinical trials, including advancement of a potential pivotal trial for BEAM-302 for treatment of alpha-1 antitrypsin deficiency and of a potential Phase 1/2 clinical trial of the ESCAPE conditioning platform in patients with sickle cell disease, and for general corporate purposes.

J.P. Morgan, Jefferies, Cantor, Citigroup and Wells Fargo Securities are acting as joint book-running managers for the offering.

An automatically effective shelf registration statement relating to the securities offered in the offering described above was filed with the Securities and Exchange Commission (SEC) on February 28, 2024. The offering is being made only by means of a prospectus supplement and accompanying prospectus that form part of the registration statement. A preliminary prospectus relating to and describing the terms of the offering has been filed with the SEC and is available at www.sec.gov. A final prospectus supplement relating to the offering will be filed with the SEC. When available, copies of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained by contacting J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, by telephone at (877) 821-7388 or by email at Prospectus_Department@Jefferies.com; Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, NY 10022, or by e-mail at prospectus@cantor.com; Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by telephone at 1-800-831-9146; or Wells Fargo Securities, 90 South 7th Street, 5th Floor, Minneapolis, MN 55402, at 800-645-3751 (option #5) or email a request to WFScustomerservice@wellsfargo.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Beam Therapeutics
Beam Therapeutics (Nasdaq: BEAM) is a biotechnology company committed to establishing the leading, fully integrated platform for precision genetic medicines. To achieve this vision, Beam has assembled a platform with integrated gene editing, delivery and internal manufacturing capabilities. Beam’s suite of gene editing technologies is anchored by base editing, a proprietary technology that is designed to enable precise, predictable and efficient single base changes, at targeted genomic sequences, without making double-stranded breaks in the DNA. This has the potential to enable a wide range of potential therapeutic editing strategies that Beam is using to advance a diversified portfolio of base editing programs. Beam is a values-driven organization committed to its people, cutting-edge science, and a vision of providing life-long cures to patients suffering from serious diseases.

Cautionary Note Regarding Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “suggest,” “plan,” “vision,” “strategy,” “possibility,” “promise,” “believe,” “intend,” “project,” “estimates,” “targets,” “projections,” “potential,” “should,” “could,” “would,” “may,” “might,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Investors are cautioned not to place undue reliance on these forward-looking statements, including, but not limited to, statements relating to the size, structure and completion of the offering; the anticipated use of proceeds of the offering; the therapeutic applications and potential of our technology; and our ability to develop life-long, curative, precision genetic medicines for patients through base editing. Each forward-looking statement is subject to important risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statement, including, without limitation, risks and uncertainties related to: market conditions and the completion of the offering on the anticipated terms or at all; our ability to develop, obtain regulatory approval for, and commercialize our product candidates, which may take longer or cost more than planned; our ability to raise additional funding, which may not be available; our ability to obtain, maintain and enforce patent and other intellectual property protection for our product candidates; the uncertainty that our product candidates will receive regulatory approval necessary to initiate human clinical trials; that preclinical testing of our product candidates and preliminary or interim data from preclinical studies and clinical trials may not be predictive of the results or success of ongoing or later clinical trials; that initiation and enrollment of, and anticipated timing to advance, our clinical trials may take longer than expected; that our product candidates or the delivery modalities we rely on to administer them may cause serious adverse events; that our product candidates may experience manufacturing or supply interruptions or failures; risks related to competitive products; and the other risks and uncertainties identified under the headings “Risk Factors Summary” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, and in any subsequent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

Contacts:

Investors:
Holly Manning
Beam Therapeutics
hmanning@beamtx.com

Media:
Dan Budwick
1AB
dan@1abmedia.com

FAQ

How much money is Beam Therapeutics (BEAM) raising in its March 2025 stock offering?

Beam Therapeutics is raising approximately $500.0 million in gross proceeds through an offering of common stock and pre-funded warrants.

What is the pricing of BEAM's March 2025 common stock offering?

Beam Therapeutics priced its common stock at $28.48 per share for 16,151,686 shares, with additional pre-funded warrants at $28.47 each.

How will Beam Therapeutics use the proceeds from its 2025 stock offering?

The proceeds will fund platform technology advancement, research and development, pre-commercialization activities, including BEAM-101's biologics license application and clinical trials for BEAM-302 and ESCAPE platform.

When is BEAM's 2025 stock offering expected to close?

The offering is expected to close on or about March 11, 2025, subject to customary closing conditions.