aibioEditas Medicine ends reni-cel program, cuts about 180 positions (65% of workforce)
Tickers EDIT
The company expects costs of $55.0 million to $70.0 million for the discontinuation and $14.0 million to $18.0 million for the workforce reduction. It now sees cash lasting into the second quarter of 2027.
Key facts
- Company
- Editas Medicine, Inc. (NASDAQ: EDIT)
- News type
- Distress
- Primary source
- Editas Medicine, Inc. 8-K (2024-12-12)
Editas Medicine, Inc. (Nasdaq: EDIT) said its board approved on December 11, 2024, the discontinuation of clinical development of its reni-cel program for sickle cell disease and transfusion-dependent beta thalassemia. The board also approved a reduction of approximately 180 positions, or approximately 65%, of the workforce. The company says it is acting to extend its cash runway and refocus resources on in vivo pipeline development.
Editas expects to substantially complete the reduction by the end of June 2025. It expects the cost savings to extend its cash runway into the second quarter of 2027.
The company expects to incur approximately $55.0 million to $70.0 million for the discontinuation. That covers wind-down of clinical development activities, including contract termination costs, impairment charges and non-cash charges. It expects another $14.0 million to $18.0 million for the reduction, mostly severance and benefits. Editas says a significant portion of the charges should lead to future cash spending and is already reflected in its runway estimate.
On December 11, 2024, the board also ended the process to partner or out-license reni-cel. Executive Vice President and Chief Medical Officer Baisong Mei will step down effective December 31, 2024. Two directors told the company they intend to resign from the board effective that date.