Bioethics Blogs

Why Is Editas Going Public?

Editas, the gene-editing company founded by several of the scientists who developed CRISPR technology, announced on January 4th that it had filed preliminary paperwork for a public offering of stock. The filing with the Securities and Exchange Commission is extremely long, but lacks certain vital details, For instance, some clearly unanswered questions are:

  • How much cash does Editas hope to raise? There is a placeholder number of $100 million, but that is very likely to change dramatically.
  • When will this take place? “As soon as practicable after this Registration Statement is declared effective.”
  • Will anyone be cashing in? “A significant portion of our total outstanding shares is restricted from immediate resale but may be sold into the market in the near future.”

The Economist response seems acute:

As difficult sales pitches go, this one is hard to beat. This biotech company has burned through $75m in the past few years and has not yet started clinical work on a drug candidate. It says it will be many years, “if ever”, before it has something ready to commercialise. If this were not enough, not only is there a thorny patent thicket to manage but the firm must fight and win a case seeking to overturn its own intellectual-property claims on the ground that it was not the first to invent them.

The prospectus does include some new information, including the gossipy history that the company was originally incorporated as Gengine. (Gene-engine? Could we have been spared the whole “editing” metaphor? Probably not.) There is certainly more detail about its product plans and, if you can read the tables correctly, current shareholders, the largest of which, per Xconomy‘s summary, are all venture capital funds:

16.6%   Flagship Ventures
15.6%   Third Rock Ventures
15.6%   Polaris Venture Partners
  9%      Bng0 (a Bill Gates-affiliated fund)
  5.7%   Viking Global
  5.7%   Fidelity
  5.7%   Deerfield
  4.8%   CEO Katrine Bosley

The prospectus confirms that Editas hopes to begin clinical trials on a therapy for Leber congenital amaurosis in 2017.

The views, opinions and positions expressed by these authors and blogs are theirs and do not necessarily represent that of the Bioethics Research Library and Kennedy Institute of Ethics or Georgetown University.