What happened<\/p>\n
Shares of Editas Medicine (NASDAQ:EDIT) and Beam Therapeutics (NASDAQ:BEAM) rose as much as 23% and 29%, respectively, today after the pair were rumored to be considering a merger. Although investors shouldn't invest based on speculation, a merger would make sense on multiple fronts.<\/p>\n
The duo already have an agreement in place to collaborate on genetic medicines, but the struggling pipeline of Editas Medicine could receive a significant boost from Beam Therapeutics. It would also allow Editas shareholders to avoid many of the technical pitfalls of first-generation CRISPR gene-editing tools, which have yet to be adequately reflected in stock prices. Of course, the flip side is that the merger doesn't make as much sense for Beam Therapeutics.<\/p>\n
As of 12:50 p.m. EDT, both small-cap stocks had settled to gains of about 14%.<\/p>\n
Image source: Getty Images.<\/p>\n
There are multiple reasons a merger makes sense. Consider that:<\/p>\n
There's not much to the report that Editas Medicine and Beam Therapeutics are considering a merger. Only one digital publication mentions \"chatter\" without providing any follow-up details. The rumors are at least plausible given the ties to the Broad Institute and overlap of the scientific founders, but investors simply don't have much to go on. That said, a merger would make more sense for Editas Medicine than Beam Therapeutics, as the latter has a much stronger technical foundation to lean on for the long haul.<\/p>\n
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Here's Why Shares of Editas Medicine and Beam Therapeutics Are Soaring Today - Motley Fool<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" What happened Shares of Editas Medicine (NASDAQ:EDIT) and Beam Therapeutics (NASDAQ:BEAM) rose as much as 23% and 29%, respectively, today after the pair were rumored to be considering a merger. Although investors shouldn't invest based on speculation, a merger would make sense on multiple fronts Continue reading