We recently published a list of 8 Best Gene-Editing Stocks to Buy. In this article, we are going to take a look at where Beam Therapeutics Inc. (NASDAQ:BEAM) stands against other best gene-editing stocks to buy.

Gene editing is an advanced medical technique within gene therapy that involves precisely modifying an individual’s DNA to treat or prevent diseases. This approach directly alters genetic material to correct mutations, enhance cellular functions, or eliminate disease-causing genes. Industry experts believe that gene editing has the potential to revolutionize the treatment of genetic disorders, cancers, and various other conditions.

According to IMARC, the U.S. healthcare infrastructure has adapted to support gene-editing therapies. IQVIA reported that 114 gene therapy trials were initiated in 2023, with approximately 77% sponsored by the healthcare industry. Kella Kapnisi, Head of Cell and Gene Therapy at Team Consulting, noted that the FDA has approved 38 cell and gene therapies, many of which have reached commercialization through predominantly manual laboratory manufacturing processes.

U.S. Gene Editing Market Growth, Breakthrough Therapies, and Challenges Ahead

The U.S. gene editing market has experienced significant growth, valued at $3.19 billion in 2024, while genome editing stood at $3.55 billion in 2023. Looking ahead, projections indicate a substantial surge, with gene editing expected to reach $13.99 billion and genome editing forecasted at $16.49 billion by 2034. These growth trends reflect compound annual growth rates (CAGRs) of 15.93% and 16.6%, respectively, underscoring the increasing adoption and investment in gene-editing technologies.

Several breakthrough therapies are paving the way for advancements in gene editing. Precision BioSciences’ PBGENE-HBV represents the first FDA-cleared in vivo gene-editing trial for chronic hepatitis B. Early data from the trial indicate a 70% reduction in the hepatitis B surface antigen (HBsAg) in two out of three patients at the lowest dose (0.2 mg/kg), targeting covalently closed circular DNA (cccDNA) to address the root cause of HBV persistence. YolTech Therapeutics has also made strides with its hyperoxaluria treatment, demonstrating a 70% reduction in harmful oxalate levels in patients with primary hyperoxaluria type 1 through lipid nanoparticle-delivered gene editing. Additionally, AccurEdit’s cholesterol therapy has shown promising results, achieving a 70% reduction in LDL cholesterol with a single-dose treatment by silencing PCSK9.

The number of patients receiving gene therapies is expected to fluctuate over the next decade. In 2020, 16,244 patients were treated, with this figure projected to rise to 94,696 by 2025 before gradually declining to 65,612 by 2034 as existing patient stocks deplete. Over the next decade, an estimated 1.09 million patients could benefit from gene therapies, with cancer patients making up approximately 48% of recipients.

From a financial and economic standpoint, annual spending on gene editing therapies is anticipated to peak at $25.3 billion in 2026 before stabilizing at $21.0 billion by 2034. These therapies are projected to yield an additional 5.12 quality-adjusted life years (QALYs) per patient, with each QALY valued at $43,110. Insurance coverage is expected to play a crucial role in facilitating access, with Medicare, Medicaid, and private insurers projected to cover $8.1 billion, $5.44 billion, and $12.2 billion annually, respectively.

Despite these advancements, the gene-editing industry faces key challenges. Delivery risks remain a concern, as adverse events associated with viral vectors and conditioning regimens pose safety hurdles. Regulatory scrutiny is also increasing, with the FDA’s pending decision on Abeona Therapeutics’ recessive dystrophic epidermolysis bullosa (RDEB) therapy, expected by April 29, 2025, highlighting the evolving standards for gene-editing approvals.

Our Methodology

For this list, we scanned Insider Monkey’s database of over 1,000 hedge funds as of Q4 2024 and selected companies involved in the development and commercialization of gene-editing technologies. From there, we picked eight companies with the highest number of hedge fund investors and ranked them in ascending order.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Beam Therapeutics Inc. (NASDAQ:BEAM)

Number of Hedge Fund Holders: 35 

Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology company focused on precision genetic medicines using base editing, a technology that allows for precise, single-letter changes to DNA without cutting the strands. The company aims to develop treatments for genetic disorders, hematological diseases, and cancers. Its unique base editing technology offers a more accurate, predictable approach compared to traditional CRISPR, potentially reducing risks associated with DNA breaks.

Beam Therapeutics Inc. (NASDAQ:BEAM) recently reached a key milestone by achieving its adult enrollment target in the BEACON Phase 1/2 clinical trial of BEAM-101 for sickle cell disease. The company also presented promising early results from this trial at the 66th American Society of Hematology Annual Meeting. Additionally, the corporation plans to release initial data from its Phase 1/2 study of BEAM-302 for Alpha-1 Antitrypsin Deficiency (AATD) in the first half of 2025, solidifying its position among the best gene editing stocks in the biotech sector.

Beam Therapeutics Inc. (NASDAQ:BEAM) ended 2024 with a solid cash position of $850.7 million, supporting ongoing research and trials. R&D expenses were $101.4 million for the fourth quarter, reflecting a decrease from the previous year, which may indicate greater efficiency in its operations. General and administrative expenses were $28.7 million for Q4. However, the business reported a net loss of $90.4 million for the quarter and $376.7 million for the year, which is typical for biotech companies in the clinical stage.

The company’s revenue from licenses and collaborations significantly dropped from $316.2 million in Q4 2023 to $30.1 million in Q4 2024. This decrease warrants further investigation, as it may affect the company’s future financial stability. Despite this, Beam Therapeutics Inc. (NASDAQ:BEAM) expects its current cash reserves will fund operations into 2027, giving the company ample time to advance its key programs.

Overall, BEAM ranks 4th on our list of best gene-editing stocks to buy. While we acknowledge the potential of BEAM, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BEAM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.