editas medicine amends stock plan and increases authorized shares

Published 02/06/2025, 22:42
editas medicine amends stock plan and increases authorized shares

Editas Medicine , Inc. (NASDAQ:EDIT), a biotechnology company based in Cambridge, Massachusetts, announced several key developments following its annual meeting of stockholders held on May 29, 2025. These updates were detailed in a recent 8-K filing with the U.S. Securities and Exchange Commission. The company, currently valued at $149 million, maintains a strong liquidity position with more cash than debt on its balance sheet, though InvestingPro analysis indicates rapid cash burn rates that warrant attention.

At the meeting, stockholders approved an amendment and restatement of the company’s 2015 Stock Incentive Plan. The amended plan extends the term to ten years from the date of stockholder approval and removes the "evergreen" provision. It also updates the delegation of equity granting authority in accordance with current Delaware law. Furthermore, the plan now requires dividends on restricted stock and other stock-based awards to align with the underlying award’s vesting and forfeitability provisions. The amendment disallows dividend equivalents on stock options and stock appreciation rights and allows for tax withholding using shares exceeding the statutory minimum, consistent with current accounting guidance.

Additionally, stockholders approved an amendment to the company’s Restated Certificate of Incorporation. This amendment increases the number of authorized shares of capital stock from 200 million to 395 million, and the authorized shares of common stock from 195 million to 390 million. The newly authorized common stock retains the same rights as the existing common stock. This amendment took effect upon filing with the Secretary of State of Delaware on Monday.

The annual meeting also included the election of Jessica Hopfield, Ph.D., and David Scadden, M.D., as Class III directors to serve until the 2028 annual meeting. Stockholders also approved, on an advisory basis, the compensation for named executive officers and opted for an annual frequency for future advisory votes on executive compensation.

Lastly, the stockholders ratified the selection of Ernst & Young LLP as the company’s independent registered public accounting firm for the current fiscal year.

These updates were based on a press release statement filed with the SEC.

In other recent news, Editas Medicine has reported promising results from an in vivo CRISPR study, showcasing significant advancements in liver disease treatment. The study demonstrated a 70% gene editing efficiency in mice, leading to an over 80% reduction in a key disease biomarker. Similar strategies in cynomolgus monkeys resulted in over 50% gene editing and a 15-fold increase in target protein levels. Additionally, Evercore ISI has adjusted its outlook on Editas Medicine, lowering the price target to $4 from $5 while maintaining an Outperform rating, with the firm highlighting the company’s $221 million cash reserve expected to fund operations into 2027. In legal matters, the U.S. Court of Appeals partially upheld and vacated a decision concerning CRISPR/Cas9 patents, sending the case back to the PTAB for further review, though Editas’ CRISPR/Cas12a patents remain unaffected. Furthermore, Editas Medicine has appointed Amy Parison as the new Chief Financial Officer following Erick Lucera’s resignation, effective March 28, 2025. Parison, who has been with the company since January 2025, brings extensive financial experience from her previous roles at Rubius Therapeutics (OTC:RUBY) and Vertex Pharmaceuticals (NASDAQ:VRTX). The company continues to advance its pipeline of in vivo gene editing medicines, focusing on developing treatments for serious diseases.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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