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Investing.com - Baird has lowered its price target on Intellia Therapeutics (NASDAQ:NTLA) to $9.00 from $11.00 while maintaining a Neutral rating following news of an FDA clinical hold on the company’s NTLA-2001 therapy. The stock, currently trading at $13.12, has plummeted nearly 50% over the past week according to InvestingPro data.
The price target reduction comes after Intellia disclosed in an 8-K filing that the U.S. Food and Drug Administration has placed a clinical hold on NTLA-2001, one of the company’s key developmental therapies.
Baird estimates the process to restart the study will likely take at least two to three months, creating significant delays in Intellia’s development timeline.
The investment firm cited concerns about Intellia’s cash runway in light of the clinical hold, noting the extended timeline increases the risk of potential dilution for shareholders.
Despite the reduced price target, Baird maintained its Neutral rating on Intellia Therapeutics stock as it monitors the company’s response to the regulatory setback.
In other recent news, Intellia Therapeutics has faced significant developments concerning its clinical trials and stock evaluations. The U.S. Food and Drug Administration (FDA) placed a clinical hold on Intellia’s Phase 3 MAGNITUDE trials for its nexiguran ziclumeran therapy, following a reported safety event. This event involved the hospitalization of a patient due to liver enzyme issues, prompting Intellia to pause the trial. As a result, H.C. Wainwright adjusted its price target for Intellia to $25, maintaining a Buy rating, while Citizens lowered its price target to $29, retaining a Market Outperform rating. William Blair downgraded Intellia from Outperform to Market Perform after the company voluntarily paused enrollment and dosing in its studies. These developments have raised concerns about the safety of Intellia’s nex-z treatment and its impact on the broader gene-editing sector. The company is expected to receive a formal Clinical Hold Letter from the FDA within 30 days. Investors are closely monitoring these updates as they unfold.
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