CAMBRIDGE, Mass. - Editas Medicine , Inc. (NASDAQ:EDIT), a gene editing company currently valued at approximately $157 million, has announced a strategic shift to prioritize its in vivo CRISPR gene editing programs, following recent pre-clinical successes. The company is set to extend its cash runway into the second quarter of 2027 and is planning to achieve human proof of concept for its in vivo treatments within approximately two years. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet, though analysts note it's quickly burning through available funds.
Editas has reported significant advancements in in vivo gene editing, including a pre-clinical proof of concept for editing the HBG1/2 promoter in hematopoietic stem cells (HSCs) in a humanized mouse model, which is a potential treatment for sickle cell disease and beta thalassemia. This was achieved with a single dose of a targeted lipid nanoparticle (tLNP) formulation. Additionally, the company has demonstrated high-efficiency liver editing in non-human primates.
As part of this strategic realignment, Editas is discontinuing the development of its reni-cel program due to the inability to secure a commercial partner. The company will consult with clinical trial sites, regulators, and other stakeholders to determine future steps for patients enrolled in the RUBY and EdiTHAL trials. InvestingPro analysis reveals the company's financial health score is currently rated as 'WEAK', with particular concerns about profitability metrics. Subscribers can access 14 additional ProTips and comprehensive financial analysis through the Pro Research Report.
To support the transition, Editas is initiating cost-saving measures, including a reduction in workforce by approximately 65% over the next six months. This will involve changes in the management team, with several members, including Chief Medical (TASE:PMCN) Officer Baisong Mei, M.D., Ph.D., leaving the company. Emma Reeve and Meeta Chatterjee, Ph.D., will resign from the Board of Directors, with Jessica Hopfield, Ph.D., set to become the Chair of the Board.
Editas' President and CEO, Gilmore O'Neill, M.B., M.M.Sc., expressed gratitude to patients, investigators, and staff for their commitment to developing medicines like reni-cel and emphasized the company's dedication to advancing in vivo treatments for sickle cell disease and beta thalassemia.
Further pre-clinical data and development timelines for these in vivo gene editing programs are expected to be shared in the first quarter of 2025. The company believes that its in vivo gene editing capabilities could significantly expand therapeutic possibilities and position Editas as a leader in the field. With the stock currently trading near its 52-week low of $1.89 and InvestingPro's Fair Value analysis suggesting the stock is undervalued, investors seeking detailed insights can access comprehensive valuation metrics and expert analysis through InvestingPro's detailed research reports, available for over 1,400 US stocks.
The information in this article is based on a press release statement from Editas Medicine.
In other recent news, Editas Medicine has been the focus of several analyst adjustments following the presentation of updated data on its Reni-cel program. Wells Fargo (NYSE:WFC) downgraded the company to Equal Weight, citing competing data from another company that could potentially influence Reni-cel's market position. Despite this, Wells Fargo noted that Editas Medicine's in vivo sickle cell disease program remains a strong candidate in its field.
BofA Securities and Evercore ISI upgraded Editas Medicine to Buy and Outperform respectively, with Evercore ISI setting a price target of $7.00. The upgrades reflect the firms' positive outlook on the company's strategic shift to focus on its in vivo hematopoietic stem cell program and its strong cash position. Chardan Capital Markets maintained their Buy rating and a price target of $12.00, reaffirming their positive outlook on the company.
These recent developments follow the company's announcement of promising results from its ongoing RUBY clinical trial for a severe sickle cell disease treatment, Reni-cel. The trial reported significant health improvements in patients, with rapid and sustained increases in fetal hemoglobin levels. However, the company plans to out-license its Reni-cel therapy to conserve cash and allocate resources more effectively.
Editas Medicine also reported third-quarter operating expenses of $65.7 million and a cash balance of $265.1 million, bolstered by a $57 million upfront cash payment from the sale of certain future license fees and payments under its Cas9 license agreement with Vertex Pharmaceuticals (NASDAQ:VRTX). The company anticipates that its current cash reserves will fund operations into the second quarter of 2026.
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