Beam Therapeutics to reduce staff by 20% as it seeks to extend cash runway into 2026

Beam Therapeutics Inc. (BEAM) said Thursday it will reduce headcount by 100 employees, or about 20% of its workforce, to help it extend its cash runway into 2026. The Cambridge, Mass.-based biotech, which is developing precision genetic medicines through base editing, said it expects to book a charge of about $6.6 million in the fourth quarter, most of which will be cash and will cover the cost of severance. The company will focus its efforts on its highest priority programs, BEAM-101 and Escape for sickle cell disease and BEAM-302 for alpha-1 antitrypsin deficiency, a condition that raises the risk of developing lung and other diseases. "In this challenging market environment, however, we need to make the difficult decision to focus our resources on those clinical programs and research areas we believe have the highest potential for near-term value creation, while continuing to build a strong company for the future," Chief Executive John Evans said in a statement. The stock was down 2.5% premarket and has fallen 47% in the year to date, while the S&P 500 has gained 12%.

-Ciara Linnane

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10-19-23 0856ET

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