Indication intelligence, analysis and sector perception

RegMedInvestors (RMi) Research Note: Editas Medicine asset sale raises $57+ M non -dilutive financing

October 3, 2024 7:33pm

Called “Monetization Financing with DRI Healthcare Trust” as access to capital markets is shaky

EDIT sold certain future license fees and other payments owed under its Cas9 license agreement with Vertex Pharmaceuticals (VRTX)to a wholly-owned subsidiary of DRI Healthcare Trust (DRI) for an upfront cash payment of $57 million.

EDIT closed down -$0.02 with only a +$0.06 or +1.87% aftermarket indication

The Bottom Line:

The upfront cash payment strengthens balance sheet, bringing non-dilutive capital to EDIT, helping enable further pipeline development and related strategic priorities.

Under the terms of the agreement:

Editas Medicine will receive an upfront cash payment of $57 million in exchange for up to 100% of certain future annual license fees payable to Editas Medicine, ranging from $5 million to $40 million per year (inclusive of certain sales-based annual license fees that may become due) and a mid-double-digit percentage of Editas Medicine’s portion of a $50 million contingent upfront payment for which Editas Medicine is eligible under the Vertex license agreement.

In addition to a portion of any such contingent upfront payment, EDIT retains rights to fixed annual license fees for 2024 and a mid-single-digit million-dollar payment due to EDIT in the event of Vertex’s achievement of certain annual sales milestones.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

Do you have an opinion you would like to share with us? We would like to hear from you.

Please e-mail us at hwm@regmedinvestors.com.

Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

RegMed Investors (RMi) or Regmedinvestors.com content is the intellectual property of Henry McCusker. Any copying, republication or redistribution of RMI’s content, including by framing or similar means, is expressly prohibited without the prior written consent of Scimitar; who also shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. For additional information on other Scimitar media services or reposting please email hwm@regmedinvestors.com.

The information included above as well as individual companies and/or securities mentioned should be construed as guidance in RMi reviews.

The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.