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Investing.com - RBC Capital has lowered its price target on Intellia Therapeutics (NASDAQ:NTLA) to $9.00 from $14.00 while maintaining a Sector Perform rating following a patient death in the company’s TTR-CM trial. The new target aligns closely with the stock’s current price of $9.67, which has dropped significantly from its previous close of $13.57. InvestingPro data shows the company is currently undervalued based on its Fair Value assessment.
The patient, who was in his 80s with multiple comorbidities, died after experiencing a case of Hy’s Law, which involves elevated liver enzymes. This follows Intellia’s earlier report of the first Hy’s Law case that prompted RBC’s downgrade of the stock.
RBC noted that less than 1% of the approximately 650 patients enrolled in the pivotal TTR-CM trial experienced Grade 4 liver elevations. The next steps for the TTR program remain undetermined pending the FDA’s formal clinical hold letter.
The investment firm expressed skepticism about Intellia’s argument that the issue is specific to the gene rather than indicating broader platform concerns. RBC analysts pointed out that competitors like Alnylam and Ionis have established safety records in TTR knockdown, albeit with different mechanisms of action.
RBC lowered its price target to reflect a reduced probability of success for the TTR program, noting that the adverse events "tilt the risk/benefit profile unfavorably" for Intellia, especially given the availability of "safer therapeutic alternatives" from Pfizer, Alnylam, BridgeBio, and AstraZeneca/Ionis. InvestingPro data reveals Intellia holds more cash than debt on its balance sheet, though it’s quickly burning through cash with a gross profit margin of -710.58%. The company’s stock has shown significant volatility, with a 69% price gain over six months despite a 23% decline over the past year.
In other recent news, Intellia Therapeutics has been navigating several significant developments. The company announced a patient death following a Grade 4 liver-related adverse event, although the specific cause remains undetermined. This incident occurred amid Intellia’s third-quarter earnings call, where multiple cases of Grade 4 liver toxicity were revealed, leading to a pause in the MAGNITUDE clinical trial. Consequently, the U.S. Food and Drug Administration (FDA) has placed a clinical hold on this trial, impacting Intellia’s NTLA-2001 therapy as well.
In response to these developments, several financial firms have adjusted their ratings and price targets for Intellia Therapeutics. JPMorgan downgraded the company from Neutral to Underweight, lowering the price target from $12.00 to $5.00 due to liver toxicity concerns. BofA Securities also downgraded Intellia from Buy to Neutral, reducing the price target from $30.00 to $14.00 after the trial pause. Baird maintained its Neutral rating but adjusted its price target to $9.00 from $11.00, citing the FDA’s clinical hold. These updates reflect the challenges Intellia faces in its clinical trials and regulatory hurdles.
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