Intellia stock holds $45 target despite AE concerns

On Thursday, Bernstein SocGen Group maintained a positive stance on Intellia Therapeutics (NASDAQ:NTLA), reiterating an Outperform rating and a price target of $45.00. The endorsement came despite the company’s announcement of a Grade 4 adverse event (AE) potentially linked to its treatment. The incident led to an 18% decline in Intellia’s stock in after-hours trading. According to InvestingPro data, the company, currently valued at $1 billion, has shown significant price volatility with a beta of 2.33.

The analyst, William Pickering, addressed the recent disclosure made by Intellia through an 8-K filing, which revealed the serious adverse event. Pickering noted that the timing of the event, occurring multiple weeks after the treatment infusion, might indicate that it is not related to the drug. However, he acknowledged that this would require further evidence to convince observers.

Pickering also relayed information from Intellia’s CFO, who assured that there is no anticipation of a clinical hold on the company’s trials. The CFO pointed to Intellia’s reaffirmation of its existing timelines and the resolution expected in the upcoming weeks. According to Pickering, the disclosure would not have been made if discussions with the FDA were still in progress. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 4.9, while holding more cash than debt on its balance sheet.

The analyst highlighted that the larger concern for investors might be the potential impact on the company’s hereditary angioedema (HAE) program rather than the transthyretin (TTR) program. This is because HAE patients are typically younger and have more at stake.

Despite the adverse event and the subsequent drop in stock value, Bernstein SocGen Group’s outlook for Intellia Therapeutics remains unchanged, with a continued expectation of positive performance. InvestingPro reveals that 13 analysts have revised their earnings upwards for the upcoming period, with analyst targets ranging from $8 to $106. Subscribers can access over 10 additional ProTips and a comprehensive Pro Research Report for deeper insights into Intellia’s financial health and market position.

In other recent news, Intellia Therapeutics has reported significant progress in its Phase 3 clinical trials, as detailed in a recent SEC filing. The company announced that enrollment for its HAELO study of NTLA-2002, aimed at treating hereditary angioedema, is on track, with plans to complete enrollment by the third quarter of 2025. Intellia also aims to submit a biologics license application in the second half of 2026, potentially leading to a U.S. commercial launch in 2027. Additionally, the MAGNITUDE-2 study for nex-z, targeting transthyretin amyloidosis with polyneuropathy, is progressing as planned, with a BLA submission anticipated by 2028.

In the MAGNITUDE study, which focuses on ATTR cardiomyopathy, approximately 365 out of 765 patients have been enrolled, with over two hundred patients already dosed. A recent adverse event involving Grade 4 liver transaminase elevations was reported but is resolving without hospitalization. Despite this, BofA Securities has reduced its price target for Intellia to $39, maintaining a Buy rating, while H.C. Wainwright reaffirmed its Buy rating with a $30 target, citing confidence in the drug’s potential benefits.

Cantor Fitzgerald has also maintained an Overweight rating with a $65 price target, suggesting the market’s reaction to the adverse event may be an overreaction. Citizens JMP has reiterated a Market Perform rating, noting that the adverse event’s impact may be mitigated by subsequent clarifications. These recent developments underscore the inherent risks and complexities of clinical trials and the varied responses from analysts regarding Intellia’s future prospects.

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