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On Thursday, Citizens JMP maintained a Market Perform rating on Intellia Therapeutics (NASDAQ:NTLA), currently valued at $1 billion, following a recent adverse event (AE) disclosure that initially caused concern among investors. While InvestingPro data shows the stock has demonstrated significant volatility, it has posted strong returns over the past month despite the AE in question, which involved a Grade 4 liver toxicity report during a clinical trial.
Silvan Tuerkcan of Citizens JMP addressed the potential volatility from the AE disclosure, noting that there were several mitigating factors that emerged after discussions with Intellia’s management. With analyst targets ranging from $8 to $106, and 13 analysts recently revising their earnings estimates upward according to InvestingPro, the market appears to maintain long-term confidence despite near-term challenges. It remains unclear whether the AE occurred in the control group or the active treatment group, although it is assumed to be related to the active arm and lipid nanoparticle (LNP) delivery.
Importantly, the patient was not hospitalized as the liver toxicity was a laboratory abnormality. A hepatologist confirmed that the event did not meet Hy’s law criteria, which would indicate a more severe liver injury. Instead, the event was classified as Grade 1 on the Drug-Induced Liver Injury (DILI) scale.
The patient’s condition has shown improvement, with liver enzyme levels decreasing to Grade 3 for alanine aminotransferase (ALT) and Grade 2 for aspartate aminotransferase (AST). It is expected that the patient will return to normal enzyme levels within 12 to 14 weeks. Additionally, the pattern of the liver enzyme elevation was unusual, resembling a similar pattern observed in an earlier phase of development for another drug, rather than typical LNP-related liver abnormalities.
Furthermore, Tuerkcan highlighted that the incidence rate of this AE does not surpass the signal found in the Phase 1/2 trial, where only one patient was recalled. This context suggests that while the disclosure of the AE caused initial concern, subsequent clarifications may reduce the impact on Intellia’s stock performance. InvestingPro analysis indicates the stock is currently undervalued, with a FAIR overall financial health score. Subscribers can access the comprehensive Pro Research Report for deeper insights into Intellia’s financial metrics, growth prospects, and risk factors.
In other recent news, Intellia Therapeutics reported better-than-expected earnings for the first quarter of 2025. The company’s earnings per share (EPS) came in at -$1.10, beating the forecasted -$1.27, while revenue reached $16.63 million, surpassing the expected $12.79 million. In clinical trial developments, Intellia announced progress in its Phase 3 trials, including the HAELO study for hereditary angioedema and the MAGNITUDE-2 study for transthyretin amyloidosis. The company plans to complete enrollment for these studies by 2025 and 2026, respectively, with hopes for potential U.S. commercial launches in the following years.
Guggenheim Securities recently adjusted its price target for Intellia, lowering it to $45 from $55, while maintaining a Buy rating. The analyst highlighted the potential market size for Intellia’s therapies and expressed optimism about trial enrollment progress. Intellia’s ongoing efforts in developing gene-editing therapies continue to attract attention, with the company emphasizing its strategic advancements and financial management. As of March 31, 2025, Intellia reported cash and marketable securities totaling $707.1 million, which is expected to fund operations into the first half of 2027.
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