BMO Capital Says Risk/Reward For This Gene Stock Assumes Clinical Success

• BMO Capital initiated coverage on Beam Therapeutics Inc (NASDAQ:BEAM) with a Market Perform rating and a price target of 41.
• BMO writes that it appreciates the high potential of Beam's next-generation editing approach, but clinical validation is yet to be established.
• Preclinical base editing data point to a favorable benefit/risk profile.
• Also Read: Pfizer, Beam Ink Multi-Target Research Collaboration For In Vivo Base Editing Programs.
• The analyst writes that Beam's lead pipeline asset in hemoglobinopathies could face competition as other therapies may receive approval in 2023.
• Enrollment of the first patient for BEAM-101 is planned for 2H22.
• "Approval of BEAM-101 with a mild preconditioning that would make BEAM-101 more attractive to patients," BMO writes.
• The company is working on additional ex vivo and in vivo assets, with the most advanced targeting T-cell Acute Lymphoblastic Leukemia and Acute Myeloid Leukemia (IND filing in 2H22), which along with further developing/ optimizing gene-editing tools, could potentially provide long-term value.
• Price Action: BEAM shares are up 11.60% at $35.96 during the market session on the last check Friday.