Editas Medicine Inc. (EDIT) is a clinical-stage biotechnology company involved in developing genome treatments for rare diseases. They aim to translate their genome editing technology into a novel class of human therapeutics enabling them to target precise and corrective molecular alterations for treatment at a genetic level. The company is focused on in vivo gene editing, and is currently seeking to pivot away from its expense-heavy reni-cel therapy, where it's now seeking a partner to help develop or license the treatment.
Incorporated in 2013 and located in Cambridge, Massachusetts, EDIT is partnered with big names like Bristol-Myers Squibb (BMY) on its pipeline, and has also partnered with Vertex Pharmaceuticals (VRTX) and Genevant Sciences.
Valued at $270 million by market cap, the Russell 2000 Index (RUT) component has been volatile in 2024. EDIT stock is down 68.5% this year, but spiked 8% on Tuesday as investors weighed its latest quarterly update.
Editas Reports Mixed Results
Editas Medicine reported Q3 earnings results on Nov. 4, with the loss of $62.1 million, or $0.75 per share, coming in slightly narrower than analysts' $0.76 per share estimate. However, revenue of $61,000 completely misfired against Wall Street’s $7 million estimate. The year-ago revenue was largely impacted by an upfront payment for a non-exclusive license grant for Vor Bio.
During the quarter, EDIT's R&D expenses were up 18% YoY to $47.6 million, while its general and administrative expenses totaled $18.1 million, increasing 21% YoY.
Editas ended the quarter with a cash balance of $265.1 million, down from $318.3 million in the same quarter last year. Including an upfront cash payment from DRI, the total is $322.1 million. EDIT expects its cash on hand and license payments from Vertex to fund operations into the second quarter of 2026.
Analysts See Massive Upside Ahead
Despite the ongoing cash burn as EDIT looks to zero in on a commercially viable product, analysts have high hopes for the stock to rally. The consensus rating is a “Moderate Buy,” along with a mean price target of $9.00 per share - indicating expected upside potential of 183% from the current price.
Earlier this week, Evercore analyst Liisa Bayko upgraded the stock to “outperform” from “in line,” and raised the price target from $3 to $7, citing its current status as an exclusive licensor of Cas 9 and 12a CRISPR technology required in the development of gene modification therapies.
“We believe that unlocking in vivo editing for SCD could be a game changer as it will significantly expand the addressable patient population by avoiding toxic conditioning regimens,” wrote Bayko, who raised the stock's price target to $7 - a premium of 120.8% to current levels.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
