Editas Medicine Secures $50M+ Financing from DRI Healthcare Trust

Editas Medicine, Inc. (Nasdaq: EDIT), a clinical-stage gene editing company, has announced the sale of anticipated future license fees and other payments related to its Cas9 license agreement with Vertex Pharmaceuticals. This deal, executed with a subsidiary of DRI Healthcare Trust (DRI), provides Editas Medicine with an upfront payment of $57 million. The capital infusion will support the company's pipeline development and strategic priorities without diluting existing shareholders' equity.

Gilmore O’Neill, President and CEO of Editas Medicine, expressed satisfaction with the partnership with DRI, highlighting that it allows the company to monetize part of the Vertex Cas9 license deal announced last December. This strategic move provides substantial capital for immediate use in advancing their pipeline of gene-editing treatments.

Under the deal's specifics, Editas Medicine will receive an upfront payment of $57 million in return for up to 100% of certain future annual license fees, which could range from $5 million to $40 million per year. This includes sales-based annual license fees that may accrue. Additionally, Editas will receive a mid-double-digit percentage of its portion of a $50 million contingent upfront payment, contingent on certain milestones under the Vertex agreement. The company retains the rights to fixed annual license fees for 2024 and a mid-single-digit million-dollar payment if Vertex achieves specified annual sales milestones.

In December 2023, Editas Medicine and Vertex entered into a license agreement granting Vertex a non-exclusive license for Editas' Cas9 gene editing technology. This agreement focuses on ex vivo gene editing medicines targeting the BCL11A gene for treating sickle cell disease and beta thalassemia, including CASGEVY® (exagamglogene autotemcel).

Editas Medicine holds exclusive licenses for specific CRISPR patent estates used in creating human medicines. These patents are owned and co-owned by prestigious institutions such as Harvard University, Broad Institute, the Massachusetts Institute of Technology, and The Rockefeller University.

TD Cowen acted as the exclusive financial advisor for Editas Medicine in this transaction, with legal counsel provided by WilmerHale. Legal advice for DRI Healthcare Trust was provided by Cravath, Swaine & Moore.

Editas Medicine focuses on transforming the potential of CRISPR/Cas12a and CRISPR/Cas9 genome editing systems into a diverse pipeline of treatments for serious diseases. The company aims to discover, develop, manufacture, and commercialize innovative, durable genomic medicines. Editas Medicine is the exclusive licensee of Broad Institute's Cas12a patent estate and the joint Cas9 patent estates of Broad Institute and Harvard University for use in human medicines.