Here's Why You Should Invest in Beam Therapeutics Now

Beam Therapeutics Inc. BEAM is evaluating its leading ex-vivo genome-editing candidate, BEAM-101, in the phase I/II BEACON study for the treatment of adult patients with sickle cell disease, an inherited blood disorder.

BEAM's pipeline of gene editing therapies is based on its proprietary base editing technology. The company is advancing its base editing technology across three disease area portfolios, namely, hematology, immunology/oncology and genetic diseases.

Here are some reasons why investors should consider betting on Beam Therapeutics stock.

Good Rank and Rising Estimates: Beam Therapeutics currently has a Zacks Rank #2 (Buy).

In the past 90 days, the estimate for Beam Therapeutics' 2024 loss per share has narrowed from $5.53 to $4.68. During the same period, loss per share estimate for 2025 has narrowed from $5.04 to $4.66.

Hematology Program Picking Up Pace: The company is pursuing an ex vivo, autologous transplant-based approach for SCD and beta-thalassemia. It is currently developing BEAM-101 in the phase I/II BEACON study for SCD. Dosing and engraftment for the three patients in the sentinel cohort of the BEACON study have been completed. Data from multiple patients in the study is expected in the second half of 2024.

BEAM is also advancing its engineered stem cell antibody paired evasion conditioning strategy to face the toxicity challenges of autologous transplant in SCD and beta-thalassemia patients.

Both SCD and beta-thalassemia have a significant unmet medical need, and if successfully developed and commercialized, BEAM-101 can significantly boost the company's prospects.

Shares of Beam Therapeutics have plunged 11.9% year to date compared with the industry's  6.2% decline.

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Other Pipeline Candidates Progressing Well: Apart from hemoglobinopathy candidates, Beam is also expanding its genetic disease pipeline by developing BEAM-301 and BEAM-302.

The company is developing an in vivo base editor, BEAM-302, for the treatment of alpha-1 antitrypsin deficiency ("AATD"), an inherited genetic disorder that can cause early onset of emphysema and liver disease. In June 2024, BEAM dosed the first patient in the phase I/II study to evaluate BEAM-302 for the treatment of AATD. The study is designed to identify the optimal dosage of BEAM-302.

The company will file an investigational new drug ("IND") application with the FDA to begin clinical studies on BEAM-302 in the United States shortly.

BEAM is also planning to initiate a clinical study on BEAM-301 for the treatment of glycogen storage disease 1a in the United States. An IND application for BEAM-301 is expected to be filed shortly.

Successful development and potential approval for these candidates will be a huge boost for the company.

Encouraging Collaboration Deals: BEAM has established partnerships that allow collaborators to access its editing and delivery technologies.

In October 2023, the company entered into a transfer agreement with Eli Lilly, under which Lilly acquired certain assets and other rights under the Verve Agreement. Following this, Beam received an upfront payment of $200 million as well as a $50 million equity investment from Lilly.

In late 2021, Beam entered into a deal with Pfizer, focused on in vivo base-editing programs for three pre-specified targets for rare genetic diseases. The company will conduct research activities until the selection of a development candidate, after which Pfizer may opt for exclusive, worldwide licenses for each development candidate and will assume responsibility for all development activities, regulatory approvals and commercialization. In January 2022, Beam received an upfront payment of $300 million from Pfizer.

These partnerships offer financial support and potentially help BEAM accelerate the development of its pipeline candidates.

Other Stocks to Consider

Other top-ranked stocks in the healthcare sector are Adaptive Biotechnologies Corporation ADPT and RAPT Therapeutics, Inc. RAPT, each holding a Zacks Rank of 2, at present.

In the past 60 days, the estimate for Adaptive Biotechnologies' 2024 loss per share has narrowed from $1.30 to $1.29 while loss per share estimate for 2025 has narrowed from $1.09 to $1.02. Year to date, ADPT shares have lost 28.5%.

ADPT's earnings beat estimates in two of the trailing four quarters, met the same once and missed on the remaining occasion, the average surprise being 0.65%.

In the past 60 days, the estimate for RAPT Therapeutics' 2024 loss per share has narrowed from $2.94 to $2.93. Loss per share estimate for 2025 has narrowed from $2.06 to $2.05. Year to date, RAPT shares have lost 86.5%.

RAPT's earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average surprise being 3.19%.

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