JMP reiterates Prime Medicine stock rating amid gene editing M&A activity

Published 18/06/2025, 10:36
JMP reiterates Prime Medicine stock rating amid gene editing M&A activity

JMP Securities reiterated its Market Outperform rating and $6.00 price target on Prime Medicine (NASDAQ:PRME) Wednesday following the announcement of the Eli Lilly (NYSE:LLY) and Verve Therapeutics merger and acquisition deal. Currently trading at $1.61, the stock sits well below its 52-week high of $6.75, while analyst targets range from $1.50 to $18.00, according to InvestingPro data.

The firm identified Prime Medicine as the "foundational leader in Prime Editing" with capabilities that expand gene editing beyond targets currently pursued by first-generation companies while providing lower risk for unwanted genomic alterations.

JMP noted that Prime Editing is extending the capabilities of base-editing, which is Verve Therapeutics’ focus area, and highlighted that Prime Medicine is concentrating on high-value, in-vivo opportunities including Wilson’s disease and AATD.

The research firm expects Prime Medicine to reach first-in-human data in 2027, matching Verve’s current development stage, but pointed out a financial challenge ahead for the company.

According to JMP’s estimates, Prime Medicine requires an additional $100-$150 million to reach proof-of-concept data for its Wilson’s Disease program, suggesting that while some dilution is likely, the company has "several non-dilutive avenues at its disposal" that could be "facilitated by today’s news."

In other recent news, Prime Medicine has faced several significant developments. Citi analysts downgraded Prime Medicine’s stock from Buy to Neutral and reduced the price target to $1.50, citing concerns about the company’s financial runway and the absence of business development deals. Meanwhile, JMP Securities cut the stock target to $6 but maintained a Market Outperform rating, emphasizing the company’s strategic shift away from Chronic Granulomatous Disease (CGD) to focus on in-vivo applications. JPMorgan also downgraded the stock to Neutral following similar strategic shifts, including a new CEO appointment and a 25% workforce reduction. Chardan Capital Markets adjusted its price target to $12 while maintaining a Buy rating, noting the promising results of Prime Medicine’s gene editing therapies despite the shift away from CGD. Additionally, Jefferies decreased its price target to $9 but upheld a Buy rating, highlighting the company’s focus on advancing in-vivo programs for Wilson’s disease and Alpha-1 Antitrypsin Deficiency (AATD). Clinical data for these programs are expected in 2027, with Investigational New Drug applications anticipated in 2026. These strategic changes reflect Prime Medicine’s efforts to optimize resources and concentrate on therapies with potentially higher commercial success.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.