Editas Medicine shares fall as Q4 earnings miss estimates

Published 05/03/2025, 23:00
Editas Medicine shares fall as Q4 earnings miss estimates

CAMBRIDGE, Mass. - Editas Medicine , Inc. (NASDAQ:EDIT) reported fourth quarter 2024 financial results that fell short of analyst expectations, sending shares down 6.8% in after-hours trading.

The gene editing company posted a loss of $0.55 per share, wider than the $0.33 loss per share analysts had forecast. Revenue came in at $30.6 million, slightly above the consensus estimate of $29.59 million but down significantly from $60 million in the same quarter last year.

Editas attributed the revenue decline primarily to lower recognition of upfront payments compared to Q4 2023, when it executed a major licensing deal with Vertex Pharmaceuticals (NASDAQ:VRTX).

Research and development expenses decreased 30% YoY to $48.6 million, mainly due to the absence of sublicense payments related to the Vertex agreement in the prior year period. General and administrative costs rose 13% to $16.4 million.

The company also recorded $12.2 million in restructuring charges related to discontinuing development of its reni-cel program and reducing headcount by approximately 65%.

"Our objective and strategy to become a leader in in vivo gene editing accelerated in the fourth quarter," said CEO Gilmore O’Neill. He highlighted positive preclinical data demonstrating the potential of Editas’ platform technology to achieve gene upregulation across tissues.

Editas ended 2024 with $269.9 million in cash and marketable securities. The company expects its current cash position to fund operations into the second quarter of 2027.

Looking ahead, Editas aims to declare two in vivo editing development candidates by mid-2025 and establish an additional target cell type/tissue by year-end.

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

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