On Wednesday, Citi has adjusted its outlook on Editas Medicine (NASDAQ:EDIT), a company specializing in genomic editing. The firm has lowered the price target to $15 from the previous $16 while retaining a Buy rating for the stock. The revision comes after Editas outlined its in vivo pipeline strategy, focusing on upregulating gene expression to treat rare genetic diseases. This strategy is noted to be distinct from other siRNA and CRISPR-based approaches currently being tested in clinical settings.
The Chief Scientific Officer of Editas, Linda Burkly, presented the company's strategy, suggesting a potential for Editas to achieve a first-in-class status in certain indications. Editas is on schedule to present initial preclinical proof-of-concept data by the end of 2024 for an undisclosed indication. The success of this approach is anticipated to hinge on the delivery and editing efficiency of the target gene.
Editas' management has indicated that during the year-end 2024 disclosure, they will reveal several key proof-of-concept parameters. These include the formulation details, such as lipid nanoparticles (LNPs), the criteria for selecting development candidates, and the adaptability of their technology for future indications. However, due to competitive reasons, the specific indication for which the proof-of-concept data applies may not be disclosed.
The company is also actively evaluating LNPs from various sources and is exploring next-generation delivery technologies capable of targeting tissues beyond the liver. This diligence is part of Editas' broader effort to refine its delivery mechanisms for gene editing applications.
With the price target now set at $15, reflecting a modest decrease of $1, Citi continues to recommend Editas Medicine as a Buy. The firm's positive rating underscores its confidence in the company's innovative approach to treating rare genetic disorders through gene upregulation.
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