TenQ

The Beam Therapeutics story

Beam Therapeutics develops base editing medicines, with its transition toward commercialization depending on risto-cel for sickle cell disease and BEAM-302 for alpha-1 antitrypsin deficiency.

Beam Therapeutics stock reportTenQ Score 9/36 · every chart and check from its filings
  • $23.47share price, last close
  • $2.4Bmarket value
  • 9/36TenQ Score checks passed

The story in brief

  • Approval preparations advance. Beam completed adult and adolescent dosing in the BEACON trial and expects a risto-cel approval application as early as the end of 2026.
  • Funding includes another draw. Beam’s operating runway into mid-2029 assumes an additional $200 million from Sixth Street alongside $1.2 billion in cash, cash equivalents, and marketable securities at June 30, 2026.
  • Growth without cash generation. Revenue rose 158.9% to $156 million over the last twelve months, but free cash flow was -$373 million.

What drives the business

  • Beam combines proprietary base editing, designed to change a single DNA base without breaking both strands, with delivery technologies and internal manufacturing, including a 100,000 square foot facility in North Carolina.
  • Its intellectual property agreements include a license with Bio Palette under which Beam sublicensed certain patents that Bio Palette licensed from Kobe University.
  • Risto-cel uses a patient’s own edited blood stem cells to increase fetal hemoglobin, and Beam reported completion of adult and adolescent dosing in its Phase 1/2 BEACON trial in the release for the quarter to June 2026.
  • BEAM-302 is designed to correct the mutation most commonly responsible for severe alpha-1 antitrypsin deficiency, and its first pivotal-cohort patient was dosed in July 2026 under a development plan intended to support a potential accelerated approval path.
  • The liver-directed pipeline also includes BEAM-304 for phenylketonuria, whose investigational application received FDA clearance in June 2026, and BEAM-301 for glycogen storage disease, with initial clinical results expected in 2026.

What the price assumes

At $24.86 per share and a market value of $2.6 billion, the reverse DCF assumption is not measurable because free cash flow and operating earnings are both negative, leaving the valuation dependent on future profits.

Revenue growth of 158.9% over the last twelve months exceeded the annual pace of 31.9% over the last three years, but neither that growth nor $156 million in revenue establishes a profitable cash flow base.

The price-to-sales ratio of 16.5x exceeds the TenQ check’s under 2.5x bar, while the free cash flow yield of -14.5% falls short of its above 3% requirement.

What could change the story

  • Clinical and regulatory outcomes remain uncertain, and an investigator attributed a previously reported BEACON patient death to busulfan conditioning as the likely cause, rather than risto-cel.
  • The runway into mid-2029 depends partly on the expected Sixth Street draw, while Beam warns that it may not achieve funding milestones under the facility.
  • An operating margin of -242.3% and free cash flow of -$373 million over the last twelve months show that revenue growth has not covered operating costs or cash needs.
  • The share count increased 41.3% over the last three years, and stock-based pay was $82 million over the last twelve months, making dilution another part of the funding picture.
  • The chief executive officer adopted a Rule 10b5-1 securities sale arrangement on June 16, 2026, lasting until June 30, 2027, unless completed or expired earlier, which does not establish whether transactions have occurred.

What to watch next

  • Beam expects updated BEACON results by the end of 2026 and a risto-cel Biologics License Application as early as the end of 2026, making safety, durability, and submission timing central milestones.
  • BEAM-302 pivotal enrollment and alpha-1 antitrypsin biomarkers evaluated over 12 months will help establish progress along its potential accelerated approval path.
  • Beam expects initial BEAM-301 clinical results in 2026, while BEAM-304 trial progress will show whether FDA clearance translates into clinical testing.
  • Subsequent cash balances, operating spending, and the additional $200 million Sixth Street draw will show whether funding remains consistent with Beam’s operating plan into mid-2029.

Sources

Back to the BEAM report