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In a challenging year for biotech firms, Editas Medicine (NASDAQ:EDIT) Inc. has seen its stock tumble to a 52-week low, touching down at $1.12. With a current market capitalization of just $93 million, the company maintains a strong liquidity position with a current ratio of 3.75, according to InvestingPro data. The company, which specializes in gene editing technology, has faced a stark market retreat, reflecting a broader industry trend. Over the past year, Editas Medicine’s shares have plummeted, marking an 85.98% decline. This significant drop underscores investor concerns and a cooling sentiment towards the once-hot gene editing sector, as Editas Medicine grapples with both scientific hurdles and market headwinds. While the company holds more cash than debt on its balance sheet, InvestingPro analysis reveals it’s quickly burning through cash, with revenue expected to decline by 29% this year. For deeper insights into Editas Medicine’s financial health and 12 additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Editas Medicine Inc. has reported significant advancements in its gene editing technology, as well as strategic goals for the next few years. The company has made headway in editing hematopoietic stem cells (HSCs) and liver cells in non-human primates, a key step in developing treatments for diseases like sickle cell and beta thalassemia. Moreover, the company plans to nominate two in vivo development candidates by mid-2025, targeting these diseases and an undisclosed liver condition.
Simultaneously, Editas Medicine announced the departure of its Chief Medical (TASE:PMCN) Officer, Dr. Baisong Mei, effective from the end of 2024. Following his exit, Dr. Mei will enter a transition period lasting until the end of January 2025. The company’s severance benefits plan will ensure the continuation of his base salary for 12 months post-separation, among other benefits.
Recent analyst notes have seen Evercore ISI cut the price target for Editas Medicine from $7 to $5, while maintaining an Outperform rating. This adjustment follows the company’s decision to discontinue its reni-cel program, which is expected to cost about $80 million. On the other hand, Chardan Capital Markets downgraded Editas Medicine to Neutral, following the company’s shift to focus entirely on in vivo therapies. Lastly, RBC Capital Markets reduced its price target from $5 to $4, while maintaining a Sector Perform rating on the stock.
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