Executive Summary / Key Takeaways

• Editas Medicine is strategically pivoting to become a leader in in vivo programmable gene editing, focusing on a differentiated functional upregulation approach using its proprietary AsCas12a enzyme and targeted lipid nanoparticle (tLNP) delivery.
• Recent preclinical data highlights include therapeutically relevant in vivo editing of HSCs in NHPs (58% mean editing at 5 months) and HBG1/2 in humanized mice (48%), as well as robust editing (~65%) and biomarker reduction (~80%) for an undisclosed liver target in NHPs, demonstrating progress towards development candidates.
• The Company discontinued commercialization efforts for the reni-cel ex vivo program in December 2024 to optimize costs and accelerate the in vivo strategy, resulting in significant restructuring charges in Q1 2025 but leveraging reni-cel insights for in vivo HSCs.
• Editas holds a strong IP portfolio covering Cas9 and Cas12a, actively monetized through deals like Vertex (VRTX) and DRI, contributing to an extended cash runway into the second quarter of 2027, providing critical capital for the focused in vivo pipeline.
• While facing competition from established players like CRISPR Therapeutics (CRSP), Intellia Therapeutics (NTLA), and Vertex Pharmaceuticals, Editas aims for first- or best-in-class positioning in rare/orphan diseases by avoiding direct competition with knockdown strategies and leveraging the potential for superior precision and efficiency with AsCas12a.

Setting the Scene: A Strategic Evolution in Genome Editing

Editas Medicine, Inc. is a clinical-stage biotechnology company dedicated to developing transformative genomic medicines. Operating within the dynamic and rapidly evolving genome editing industry, Editas is strategically positioning itself to become a leader in the in vivo programmable gene editing space. The Company's journey began in 2013, initially exploring a broad range of CRISPR applications, including its pioneering work with EDIT-101, the first in vivo CRISPR-based medicine dosed in humans. This early history, marked by foundational research and initial clinical exploration, has culminated in a sharpened strategic focus aimed at leveraging its core technological strengths to address serious genetic diseases.

The broader genome editing landscape is characterized by intense competition, notably from companies like CRISPR Therapeutics, Intellia Therapeutics, and Vertex Pharmaceuticals, particularly following the recent regulatory approvals of ex vivo therapies like Casgevy and Lyfgenia for sickle cell disease. These approvals underscore the immense unmet need in genetic disorders and validate the potential of gene editing, while also highlighting the complexities and costs associated with bringing these therapies to market. Editas's strategy is a direct response to this environment, seeking to differentiate itself through a focused approach on in vivo delivery and a distinct editing methodology.

Central to Editas's strategy is its proprietary gene editing platform based on CRISPR technology, specifically leveraging both Cas9 and its internally favored AsCas12a enzyme. While Cas9 is widely used across the industry, Editas highlights AsCas12a as a potentially superior tool. Preclinical data suggests AsCas12a offers significant advantages, including higher editing efficiency and substantially reduced off-target editing compared to Cas9. This enhanced precision is a critical differentiator, potentially leading to improved safety profiles and more predictable therapeutic outcomes. The Company is actively developing and optimizing targeted lipid nanoparticles (tLNPs) for efficient in vivo delivery of its gene editing cargo to specific tissues, aiming to overcome a major hurdle in the field and enable broader patient access compared to complex ex vivo approaches.

The Strategic Pivot: Focusing Capital on the In Vivo Future

In a significant strategic shift announced in December 2024 and reflected in the Q1 2025 financials, Editas discontinued the clinical development and potential commercialization of its lead ex vivo program, reni-cel, for sickle cell disease and beta thalassemia. This decision was not a reflection of the clinical data generated to date, which demonstrated promising results including robust correction of anemia and high fetal hemoglobin levels in the RUBY and EdiTHAL trials. Instead, the pivot was driven by a strategic imperative to optimize the Company's cost structure and accelerate its intent to achieve in vivo human proof of concept.

The discontinuation of the reni-cel commercialization path led to a workforce reduction of approximately 65%, impacting around 180 positions. This restructuring resulted in significant charges in the first quarter of 2025, totaling $40.9 million. These charges included $3.5 million for employee termination benefits, $28.9 million for ongoing and terminated contract costs, $4.7 million for accelerated depreciation due to changes in useful life estimates, and $3.7 million in impairment charges for assets held for sale (primarily laboratory and manufacturing equipment). The Company expects these restructuring charges to be substantially incurred through the end of 2025. While reni-cel commercialization is halted, the clinical data and manufacturing insights gained from the program remain valuable and are being leveraged to inform Editas's pursuit of next-generation in vivo gene editing medicines, particularly those targeting hematopoietic stem cells (HSCs).

Building a Differentiated In Vivo Pipeline

Editas's sharpened focus is now squarely on building a differentiated in vivo gene editing pipeline. The core of this strategy is the use of indel CRISPR technology for functional upregulation. Unlike the knockdown strategies employed by many competitors, which aim to silence a gene, Editas's approach seeks to increase the expression and function of a normal gene copy or a functional homolog. This can involve disrupting regulatory elements that repress gene expression, thereby upregulating the desired protein. This differentiated strategy allows Editas to target diseases caused by loss-of-function or deleterious mutations in a novel way, potentially avoiding direct competition with existing modalities or technologies based on knockdown.

The Company is prioritizing the development of in vivo medicines targeting HSCs and liver cells, leveraging its established capabilities in guide RNA design, its proprietary AsCas12a enzyme, and advancements in LNP delivery. Recent preclinical data presented in May and June 2025 highlight significant progress:

• For in vivo HSC editing, using a proprietary targeted LNP (tLNP), Editas demonstrated therapeutically relevant editing levels of the HBG1/2 promoter in humanized mice (48% editing in long-term HSCs after a single dose) and non-human primates (up to 47% editing, with a mean of 58% editing at five months in an ongoing study). These levels exceed the predicted threshold of ≥25% required for therapeutic benefit and support the development of an in vivo approach for beta-hemoglobinopathies, leveraging the clinically validated strategy from reni-cel. Preliminary NHP biodistribution data also showed significant de-targeting of the liver compared to standard LNPs.
• For an undisclosed liver target, preclinical studies in NHPs using AsCas12a and a liver tLNP achieved editing levels of approximately 65%, close to the theoretical maximum of 70%, with minimal off-target editing. This resulted in a robust serum biomarker reduction of approximately 80% from baseline. In mice, in vivo CRISPR editing of genetic regulatory regions for a liver target also resulted in functional upregulation and meaningful biomarker reduction.
• Furthermore, the Company announced in vivo delivery to two additional cell types in humanized mice using its proprietary LNP targeting platform, indicating the potential breadth of its delivery capabilities.

These preclinical achievements support Editas's goal to declare an in vivo development candidate via gene upregulation in HSCs and another via gene upregulation in liver cells for an undisclosed indication in mid-2025. The Company also aims to establish and disclose an extrahepatic, non-HSC target cell type or tissue by the end of 2025. This focused pipeline strategy initially targets rare and orphan diseases where Editas believes it can be first- or best-in-class, with the intention to expand to larger patient populations in the future as safety and efficacy are established.

Financial Performance and Liquidity

Editas's financial performance in the first quarter of 2025 reflects the impact of its strategic pivot and ongoing investment in the in vivo pipeline. Collaboration and other research and development revenues increased to $4.7 million for the three months ended March 31, 2025, compared to $1.1 million for the same period in 2024. This increase was primarily due to the recognition of remaining deferred revenue from the closing out of a collaboration agreement. Operating expenses totaled $80.8 million in Q1 2025, a significant increase from $68.1 million in Q1 2024, driven primarily by the $40.9 million in restructuring and impairment charges. Excluding these charges, operating expenses would have decreased, reflecting reduced R&D spending on the discontinued reni-cel program and lower G&A costs, partially offset by increased investment in the in vivo pipeline. Research and development expenses decreased by $22.2 million to $26.6 million in Q1 2025 compared to $48.8 million in Q1 2024, mainly due to lower external reni-cel costs and sublicense fees, despite increased in vivo research spending. General and administrative expenses decreased by $6.0 million to $13.4 million in Q1 2025 compared to $19.3 million in Q1 2024, driven by lower stock-based compensation, IP legal fees, and facility/professional service costs.

The net loss for the first quarter of 2025 was $76.1 million, an increase from the $62.0 million net loss in Q1 2024, primarily due to the restructuring charges. Other income, net decreased significantly to $0.1 million in Q1 2025 from $5.0 million in Q1 2024, largely due to interest accretion related to the DRI Purchase and Sale Agreement offsetting investment income.

Net cash used in operating activities was $47.8 million in Q1 2025, while net cash provided by investing activities was $56.4 million (primarily from marketable security maturities), and net cash used in financing activities was $1.4 million (driven by repayment on the sale of future revenues liability, partially offset by ATM proceeds).

Despite the net loss, Editas maintains a solid liquidity position, bolstered by strategic financing activities. As of March 31, 2025, the Company held $221 million in cash, cash equivalents, and marketable securities. The Company's cash runway has been significantly extended through recent business development deals. The December 2023 license agreement with Vertex Pharmaceuticals provided a $50 million upfront payment and ongoing annual license fees ($10 million received in Q1 2024 and Q1 2025). The October 2024 Purchase and Sale Agreement with DRI Healthcare Acquisitions LP provided $57 million in upfront cash by monetizing certain future Vertex license fees. As of May 12, 2025, Editas expects its existing cash, cash equivalents, and marketable securities to fund its operating expenses and capital expenditure requirements into the second quarter of 2027. This extended runway provides critical capital to advance the focused in vivo pipeline.

Intellectual Property and Business Development

Editas possesses a robust intellectual property portfolio, holding foundational U.S. and international patents and serving as the exclusive licensee of Broad Institute's Cas12a patent estate and Broad Institute and Harvard University's Cas9 patent estates for human medicines. This IP is viewed by management as a significant source of value and non-dilutive capital.

The Company has actively leveraged its IP through strategic business development activities. The December 2023 non-exclusive license agreement with Vertex for Cas9 technology related to BCL11A editing in SCD/TDT (including Casgevy) is a prime example, providing substantial upfront and potential future payments. The subsequent October 2024 agreement with DRI to monetize certain future Vertex payments further demonstrates the value of this IP. Other collaborations, such as the extended partnership with Bristol Myers Squibb (BMY) for alpha-beta T cell medicines using Editas's Cas9 and AsCas12a platforms, provide ongoing research funding and potential future milestones and royalties. The August 2023 non-exclusive license to Vor Bio (VOR) for ex vivo Cas9 gene-edited HSC therapies also contributes to IP monetization.

While the IP portfolio is a strength, it is also subject to risks, particularly ongoing patent interference and opposition proceedings, such as the Broad/Harvard vs. CVC dispute regarding Cas9 patents. The U.S. Court of Appeals for the Federal Circuit recently remanded this case back to the PTAB for further review, adding continued uncertainty to the timing and ultimate outcome. While these disputes do not currently impact Editas's Cas12a patents or existing Cas9 licenses, an unfavorable outcome could potentially narrow the scope of licensed rights or require obtaining licenses from third parties.

Competitive Positioning

Editas operates in a highly competitive landscape dominated by companies with significant resources and advanced pipelines. Direct competitors like CRISPR Therapeutics and Intellia Therapeutics also utilize CRISPR technology, with CRSP having achieved the first regulatory approval for a CRISPR-based therapy (Casgevy, partnered with Vertex). Vertex itself is a major player through its partnerships and commercialization strength.

Editas differentiates itself through several key aspects:

• Technological Choice: Editas's emphasis on its proprietary AsCas12a enzyme is a core differentiator. Management believes AsCas12a offers superior editing efficiency and significantly reduced off-target editing compared to the Cas9 enzyme widely used by competitors like CRSP and NTLA. This potential for higher precision could translate into a better safety profile and more predictable therapeutic outcomes.
• In Vivo Strategy: While NTLA is also focused on in vivo delivery, Editas's specific focus on functional upregulation using indel technology distinguishes its approach from the knockdown strategies often pursued by others. This opens up the possibility of targeting diseases and genetic mutations that are not amenable to knockdown, potentially allowing Editas to be first-in-class in certain indications.
• Pipeline Focus: By pivoting to a focused in vivo pipeline targeting rare and orphan diseases initially, Editas aims to carve out specific niches where its differentiated approach can have the greatest impact and probability of success, rather than directly competing head-to-head with established ex vivo therapies or broad knockdown strategies in large, crowded indications.
• IP Portfolio: Editas's foundational IP covering both Cas9 and Cas12a provides a strong competitive moat and a source of leverage in the industry, enabling licensing deals that generate non-dilutive capital and expand the reach of its technology.

Despite these differentiators, Editas faces significant challenges. Its pipeline is currently in preclinical or early clinical stages, lagging behind competitors with approved products or later-stage clinical candidates. The Company's financial position, while bolstered by recent deals, still reflects substantial operating losses and reliance on external financing, contrasting with the profitability and strong cash flow generation of a large player like Vertex. The execution risk associated with developing novel in vivo therapies and navigating complex regulatory pathways remains high. However, the strategic pivot, coupled with promising early in vivo data and an extended cash runway, positions Editas to pursue its differentiated vision in the competitive genome editing space.

Conclusion

Editas Medicine is undergoing a significant transformation, strategically pivoting to focus its resources and expertise on becoming a leader in in vivo programmable gene editing. By discontinuing the commercialization path for reni-cel, the Company has streamlined its operations, incurred necessary restructuring costs, and directed its capital towards accelerating its differentiated in vivo pipeline.

The core of Editas's investment thesis now rests on the potential of its proprietary AsCas12a enzyme, its functional upregulation strategy, and its advancements in targeted LNP delivery to create first- or best-in-class in vivo medicines for serious genetic diseases. Recent preclinical data demonstrating therapeutically relevant editing levels in HSCs and liver cells in relevant animal models provide early validation for this approach and support the goal of declaring in vivo development candidates in the near future.

Supported by a robust IP portfolio that continues to generate non-dilutive capital through strategic licensing deals, and with an extended cash runway into the second quarter of 2027, Editas has the financial capacity to pursue its focused strategy. While the Company faces intense competition and inherent risks associated with early-stage drug development and complex IP landscapes, its differentiated technological approach and clear strategic direction offer a compelling narrative for investors focused on the long-term potential of in vivo gene editing. The successful execution of the in vivo pipeline and the outcome of ongoing IP matters will be critical factors to watch as Editas seeks to translate its scientific capabilities into transformative medicines and shareholder value.