On Tuesday, Barclays (LON:BARC) maintained its Equalweight rating on Editas Medicine (NASDAQ:EDIT) stock but reduced the price target from $7.00 to $5.00. The adjustment follows a review of the company's third-quarter 2024 performance report and its strategic update provided on October 22, 2024.
The company's management has confirmed its intention to find partners or out-license its gene-editing candidate, reni-cel (EDIT-301). Additionally, Editas Medicine is expected to stay on course with its updates for sickle cell disease (SCD) and transfusion-dependent thalassemia (TDT) at the American Society of Hematology (ASH) 2024 conference.
The forthcoming update for the Phase 1/2/3 RUBY trial in SCD will cover data from 28 patients, including hematologic parameters, vasoocclusive events (VOEs), patient-reported outcomes (PROs), and safety information.
Looking ahead, Editas Medicine anticipates providing an update on the progress and development of its in vivo pipeline in the first quarter of 2025. Barclays has taken a cautious stance, noting the mixed nature of the strategic changes and expressing an interest in future updates on the partnering or out-licensing of reni-cel. The firm is also looking for indications of competitive efficacy for the company's in vivo program targeting SCD and TDT.
In other recent news, Editas Medicine has been the subject of several analyst adjustments. Truist Securities revised its price target for the gene-editing company to $8, maintaining a Buy rating. This adjustment follows the company's third-quarter report and the upcoming presentation of updated data on its reni-cel therapy at the American Society of Hematology (ASH) meeting.
Wells Fargo (NYSE:WFC), another analyst firm, reduced its price target for Editas from $27 to $9, maintaining an Overweight rating. This adjustment was influenced by the company's disclosure of preclinical data for its in vivo hematopoietic stem and progenitor cell (HSPC) editing program.
Baird also adjusted its target for Editas Medicine to $10 from $18, keeping an Outperform rating. This change came after Editas Medicine's strategic shift towards its in vivo platform. In other developments, the company has made significant strides in gene editing treatments for sickle cell disease and beta-thalassemia.
It reported high levels of editing in hematopoietic stem and progenitor cells and secured an upfront payment of $57 million from a financing agreement with DRI Healthcare Trust. These are recent developments that investors should consider as they assess the company's prospects.
InvestingPro Insights
Recent InvestingPro data paints a challenging picture for Editas Medicine (NASDAQ:EDIT), aligning with Barclays' cautious stance. The company's market cap stands at $236.85 million, reflecting the market's current valuation of its potential.
InvestingPro Tips highlight that Editas is "quickly burning through cash" and "analysts anticipate sales decline in the current year." These insights are particularly relevant given the company's strategic shift towards finding partners or out-licensing its gene-editing candidate, reni-cel. The cash burn rate could be a critical factor in the urgency of these partnership efforts.
Additionally, the stock is "trading near 52-week low" and has "taken a big hit over the last six months," with a 49.21% price decline in that period. This downward trend mirrors the market's reaction to the company's challenges and strategic uncertainties.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Editas Medicine, providing a deeper understanding of the company's financial health and market position.
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