Company: PRME
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001628280-25-008884
Chunk: 209

Company: Prime Medicine, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 209
---
 technology costs; and facilities, depreciation and other general and administrative expenses, which include direct or allocated expenses for rent and maintenance of facilities and utilities.

We anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support research and development activities; increased accounting, legal, insurance, and investor and public relations costs as we continue to operate as a public company; and additional intellectual property-related expenses as we file patent applications to protect innovations arising from our research and development activities.

Other Income (Expense) 

Other income (expense), net consists of:

•interest and other income earned on our short-term investments; and

•the change in the fair value of our short-term investment in Beam Therapeutics Inc., or Beam, a related party, in connection with the Beam Collaboration Agreement, which is discussed in greater detail in Item 1. Business, of this Annual Report on Form 10-K.

114

Results of Operations — Comparison of the Years Ended December 31, 2024 and 2023

Operating Expenses

Research and Development Expenses

Year ended December 31,(in thousands)20242023ChangeResearch and development expenses:Personnel expenses$59,988 $51,095 $8,893 Research costs41,678 59,609 (17,931)Facility related35,509 24,221 11,288 License, intellectual property fees, and other8,060 6,135 1,925 Professional and consultant fees5,919 6,845 (926)Clinical expense4,135 — 4,135 Total research and development expenses$155,289 $147,905 $7,384 

The $7.4 million increase in research and development expense for the year ended December 31, 2024 as compared to the year ended December 31, 2023 is primarily driven by:

•$11.3 million increase in facility-related expense primarily due to the expansion and build out of our laboratory space.

•$8.9 million increase in personnel expense, including an increase in stock-based compensation expense of $4.8 million, driven by the higher headcount of our research and development function as compared to the prior year;

•$4.1 million increase in clinical expenses related to PM359, our candidate to treat chronic granulomatous disease; and

•$1.9 million increase in license fees for amounts due to the Broad resulting from the BMS Collaboration Agreement.