BEAM - After Cutting 20% of Its Staff Is Beam Therapeutics Still a Buy?
2023-10-31 10:00:00 ET
On Oct. 19, the early-stage gene-editing biotech Beam Therapeutics (NASDAQ: BEAM) announced it would be slashing its workforce by 100 employees, or around 20% of its total, while also refocusing its pipeline on the programs it assumes have the best chance of eventually becoming commercialized. Now, its shares are down 20% in the last 30 days as a result.
But that hasn't stopped portfolio managers like Cathie Wood from continuing to buy its shares even in the days following the announcement. So the question is, is this business in retreat permanently, or just regrouping to succeed in the long haul? Let's examine both possibilities to see if it's still worth buying for the right kind of investor.
There are a few things to understand about Beam's scale-down. First, the company's leaders likely anticipate that raising more funds in the near future will be more difficult than it was in the past.
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After Cutting 20% of Its Staff, Is Beam Therapeutics Still a Buy?