BEAM - Beam: Opportunity Based On SCD Data Readout In 2024

2023-10-22 06:39:03 ET

Summary

• Beam Therapeutics is progressing well with its phase 1/2 BEACON study using BEAM-101 for severe sickle cell disease treatment; Data expected in 2024.
• The company has chosen to cut out several programs to conserve cash and prioritize long-term value for shareholders; Cash runway extended into 2026.
• The global sickle cell disease market is projected to reach $9.84 billion by 2030.
• BEAM-302 is the other lead program that was chosen as part of the restructuring done by the company; IND filing of this candidate to begin phase 1 study expected Q1 of 2024.

Beam Therapeutics ( BEAM ) has made significant progress in being able to advance its pipeline forward. That's because it is in the process of running its phase 1/2 BEACON study, which is using BEAM-101 which is being advanced for the treatment of patients with severe sickle cell disease [SCD]. This program has been progressing well and the reason why I believe that this biotech may offer an opportunity for investors is because it is gearing up to report results from this study in 2024. In an effort to conserve cash and then reprioritize its pipeline, it has chosen to cut out several programs. In addition to focusing on the programs it believes that will provide shareholders with long-term value. With the cost-saving from the restructuring it enacted, along with cash of approximately $1.1 billion, it believes that it will be able to fund its operations into 2026. This is crucial, because first it will get it through the first data readout of its phase 1/2 BEAM study, which is being used to treat patients with SCD.

Secondly, it could also get it through its other study of focus, which is the advancement of BEAM-302, which is being developed for the treatment of patients with alpha-1 antitrypsin deficiency [AATD]. The advancement of this program brings about another catalyst for investors to look forward to, which is the IND filing of BEAM-302 for the treatment of this specific patient population in Q1 of 2024. It is also advancing several other programs that it hopes could create shareholder value. It intends to conduct a study using BEAM-301 for the treatment of patients with glycogen storage disease 1a [GSD1a] and also BEAM-201 for the treatment of patients with T-ALL. Whether it advances these programs going forward will highly depend upon data. However, it has indicated that it is still seeking to explore partnership opportunities to advance its other programs forward.

BEAM-302 Program Progresses With Initial Data In 2024

As I noted above, Beam Therapeutics is advancing the phase 1/2 BEACON trial , which is exploring the use of BEAM-101 for the treatment of patients with severe sickle cell disease. Sickle cell disease is when red blood cells become misshapen or start to breakdown. This disease has a host of symptoms, two of which are anemia [low red blood cells] and vaso-occlusive crisis [pain occurring as a result of blockage in blood vessel]. The global sickle cell disease market is projected to reach $9.84 billion by 2030 . The way BEAM-101 works is to collect cells from a patient, edit them ex vivo and then infuse them back into the patient. The first patient of the phase 1/2 BEACON study was enrolled back in November of 2022 . The goal of this open-label single-arm study is to enroll a total of 45 severe sickle cell disease patients in this open-label study who are going to be given BEAM-101.

The thing is that investors won't have to wait long for data, because it is expected that the company will release results from this phase 1/2 study in 2024. However, despite the pipeline reprioritization I noted above, the goal is still to advance the use of BEAM-101, along with its technology. What do I mean by its technology? Well, the initial goal is to advance the use of this cell therapy as an ex vivo approach. Should this approach go well, then it will also explore the possibility of it being able to use in vivo editing of hematopoietic stem cell [HSCs]. A good thing about this biotech is that it knows that there are certain indications which may not work with ex vivo base editing and thus may have to take the in vivo approach. From what I can see, these are the different delivery mechanisms of being able to do base editing with BEAM-101. They are as follows:

• Electroporation delivery - ex vivo base editing
• Lipid nanoparticle - in vivo base editing
• Adeno-associated virus - in vivo base editing

Thus, the technology here has potential to be quite flexible in being able to adapt to whatever target indication Beam Therapeutics is going after.

Another promising aspect is the potential for it to improve upon a conditioning agent that is required for these patients before they receive BEAM-101. That is, this biotech is advancing its ESCAPE technology. The goal of this technology is an attempt to selectively deplete diseased cells and leave the good ones to proliferate [increase in numbers]. In order to accomplish this, a base edit of an epitope of a CD117 receptor of the cells. The cells with CD117 multiple and grow, while diseased cells are depleted. The goal of this is to enable an improvement of a conditioning agent. That is, to provide a non-toxic option.

Financials

According to the 10-Q SEC Filing , Beam Therapeutics had cash, cash equivalents and marketable securities of $1.1 billion as of June 30, 2023. It believed that it would have enough cash to fund its operations at least into 2025. This was the projection when the company had to report its second quarter 2023 financial results. However, just the other day it announced a portfolio prioritization and strategic restructuring of its pipeline as I stated above. It has decided to focus on advancing BEAM-101 for the treatment of patients with severe sickle cell disease [SCD] and BEAM-302 for the treatment of patients with alpha-1 antitrypsin deficiency [AATD]. It will still push forward other programs such as BEAM-301 for the treatment of patients with glycogen storage disease 1a [GSD1a] and BEAM-201 for patients with relapsed/refractory T-cell acute lymphoblastic leukemia [T-ALL/T-cell lymphoblastic lymphoma [T-LL]. With the $1.1 billion in cash on hand, plus the restructuring of its pipeline, it believes that it should be able to fund its operations into 2026.

Risks To Business

There are several risks that investors should be aware of before investing in Beam Therapeutics. The first risk to consider would be with respect to the advancement of BEAM-101, which is being advanced as an ex vivo cell therapy for the treatment of patients with severe sickle-cell disease [SCD], in the ongoing open-label single-arm phase 1/2 BEACON study. First, there is no assurance that the use of conditioning along with BEAM-101 will be safe/tolerable. Secondly, there is no guarantee that positive efficacy measures will be achieved for this study.

A second risk to consider would then be the other program that this company has decided to focus on, which is BEAM-302 that is being advanced for the treatment of patients with alpha-1 antitrypsin deficiency [AATD]. That's because there has been no IND filed yet, so that a phase 1 study could be initiated. An IND filing of BEAM-302 for the treatment of this patient population is expected to be filed Q1 of 2024. First, there is no assurance that it will be given the green light by the FDA to initiate this study. Even if such a phase 1 study is initiated using BEAM-302, there is no guarantee that there will eventually be a successful outcome from it.

The third and final risk to consider would be with respect to the advancement of the other clinical candidates in the pipeline, which are BEAM-301 for the treatment of patients with glycogen storage disease 1a and BEAM-201 for patients with relapsed/refractory T-ALL. The risk here is that there is no guarantee that final results will be achieved for starters. Even if positive preliminary data is achieved, the continuation of these two specific clinical candidates is going to depend upon the ability for Beam Therapeutics to be able to establish partnerships for them. If it can't find partners who are willing to pay for the advancement of BEAM-301 or BEAM-201, then these programs will likely not continue on.

Conclusion

Beam Therapeutics has made great progress in being able to advance several of its base editing cell therapy programs. The most important of which, I believe, would be the use of ex-vivo cell therapy BEAM-101 being developed to treat patients with severe sickle cell disease [SCD]. I think that investors have a huge opportunity here and it all has to do with the fact that the biotech intends to release results from its phase 1/2 BEACON study in 2024. Should this data to be released at that time be positive, then it will establish proof-of-concept in using its base editing approach for cell therapy. Even though I believe this to be the most important opportunity, since BEAM-101 is the base editing technology part of its pipeline, there is another candidate to consider. This would be the advancement of BEAM-201 in a phase 1/2 study, being advanced for the treatment of patients with relapsed/refractory T-ALL/T-LL.

The first patient was recruited on September 5th of 2023 and this provides the possibility of it providing proof-of-concept for the use of an allogeneic CAR-T as part of its pipeline. Lastly, there is an intention for the biotech to provide an update on its development of next-generation allogeneic strategies for achieving cell persistence and expand the use of its cell therapies towards other indications. Such plans by Beam Therapeutics are intended to be released by the end of 2023. The bottom-line is that this biotech is even better now than ever before. Reducing programs might not be ideal, but now it has been able to expand its cash runway towards 2026. This gives it time to create several value creating events, pending that all the data it releases in the next few years are positive.

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