Investing.com -- Shares of Intellia Therapeutics (NASDAQ:NTLA), Inc. took a nosedive today, dropping around 20% after the company announced results from the Phase 2 study of its investigational gene-editing therapy, NTLA-2002, for hereditary angioedema (HAE).
Despite the data indicating a reduction in HAE attacks, analysts expressed caution about the therapy's competitive position and inherent risks.
Intellia's press release highlighted that the Phase 2 trial, which involved 27 participants, demonstrated a 75% to 81% reduction in monthly attack rates for patients receiving NTLA-2002.
They said eight out of eleven patients in the higher 50 mg dose group reported a complete response, remaining attack-free for up to eight months post-infusion.
The therapy was said to be well-tolerated, with no serious adverse events reported. They added that the most frequent adverse events were headache, fatigue and nasopharyngitis.
However, analysts at Baird reacted to the results by lowering their price target for Intellia's stock from $24 to $18 while maintaining a Neutral rating.
The firm noted that although the therapy provides clear benefits, the reduction in attacks may not be sufficient to overcome the perceived risks of in vivo gene editing, especially in a competitive market.
"While NTLA-2002 did provide patients with a clear benefit, we expect investors will view the ~75-80% reduction in HAE attacks as less than impressive in the context of the potential risks of in vivo gene editing and the competitive landscape in this indication," wrote the firm.
"We anticipate shares will face increasing headwinds surrounding dilution," they added.