Prime Medicine, Inc. Liquidation Value

Prime Medicine, Inc. (PRME) presents a severely negative liquidation recovery posture as of March 31, 2026. The company has no product revenue, an accumulated deficit of $937.5 million, and has formally disclosed substantial doubt about its ability to continue as a going concern within 12 months of filing. Under a liquidation lens, total assets of $294.7 million are dominated by the operating lease right-of-use asset ($123.3 million, recovery zero under liquidation haircut) and cash/investments ($135.5 million excluding restricted cash, near 100% recoverable). PP&E net book value is $18.8 million (gross $41.1 million, accumulated depreciation $22.3 million), consisting primarily of laboratory equipment and leasehold improvements; liquidation recovery at 50-60% yields roughly $9-11 million. Restricted cash of $13.7 million is collateral for leases and recovers at face. Total liquidatable asset recovery is approximately $149-151 million (cash + investments + restricted cash + haircut PP&E).

On the liability side, total liabilities are $218.0 million at face. The dominant liability is the operating lease obligation: $114.5 million present value, representing $179.1 million in undiscounted future payments through 2035+. In a liquidation, this obligation does not extinguish; lessors hold claims at or near undiscounted face value absent negotiated termination, materially worsening recovery. Current liabilities of $36.3 million include $12.3 million accounts payable, $8.1 million accrued liabilities, $8.5 million current lease, and $7.3 million current deferred revenue (related party, BMS). Non-current deferred revenue of $57.8 million (BMS collaboration) would likely be terminated and partially clawed back or extinguished upon wind-up, reducing asset value rather than serving as equity recovery. Non-current liabilities of $181.7 million are driven by the long-term operating lease ($106.0 million) and non-current deferred revenue ($57.8 million).

Net recovery to equity is deeply negative: approximately $150 million in recoverable assets against $218 million in liabilities at face, yielding an estimated equity deficiency of approximately -$68 to -$70 million under standard liquidation haircuts. This is broadly consistent with MFFAIS CLV/LLV/OLV of -$78.1 million. The Beam Therapeutics arbitration (seeking monetary damages and possible forced transfer of the AATD program) introduces an unquantified contingent liability not reflected on the balance sheet. The BMS deferred revenue ($65.1 million remaining performance obligation) is also a contingent liability in wind-up: BMS could seek repayment of unearned collaboration consideration. Neither item is separately XBRL-tagged in this filing beyond the deferred revenue balance. Q1 2026 operating cash burn was $42.7 million; at that rate, the $135.5 million in liquid assets is approximately 1.3 years of runway, consistent with the going concern disclosure. No ATM sales occurred in the quarter.