On Thursday, Evercore ISI adjusted its outlook on Editas Medicine (NASDAQ:EDIT), a biotechnology company specializing in gene editing. The firm's analyst has reduced the price target for the company's shares to $7.00 from the previous $15.00 while maintaining an "In Line" rating.
The revision of the price target is based on a new model for Editas Medicine. The updated model includes two significant changes. Firstly, the value of the CRISPR-Cas9 patent is now set at $1.22 per share in a risk-adjusted scenario and $5.4 per share when fully valued. Intellia Therapeutics (NASDAQ:NTLA), being the most advanced in the CRISPR-Cas9 programs, is attributed 60% of this value. Notably, Vertex Pharmaceuticals (NASDAQ:VRTX), which is already incorporated into the Editas model, is not included in this specific analysis.
The analyst notes that an appeal is currently in progress, with a decision expected in the second half of 2024. This legal proceeding could affect the valuation of the CRISPR-Cas9 license. However, the perceived risk to the license’s value is considered low by the firm.
The second alteration in the model reflects a mirrored revenue projection from Vertex Pharmaceuticals’ Casgevy for the treatment Reni-cel. This change aligns Editas Medicine's revenue expectations for Reni-cel with the performance of Casgevy, another gene-editing therapy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.