Intellia signs major lease for expansion, amends existing lease

Intellia Therapeutics, Inc. (NASDAQ:NTLA), a $1.23 billion market cap biotechnology company specializing in in vivo diagnostic substances, has entered into a significant lease agreement to expand its office and laboratory space in Cambridge, Massachusetts. The company’s stock has shown significant volatility, rebounding 14.5% in the past week despite a challenging six-month period. According to InvestingPro analysis, Intellia maintains a strong financial position with more cash than debt on its balance sheet. The lease, signed on Monday, February 18, 2025, with ARE-Tech Square, LLC, involves approximately 101,000 square feet at 400 Technology Square, known as 400 Tech Square.

This new space will not only supplement but eventually replace parts of Intellia’s current premises in Cambridge. The agreement also includes provisions to further expand into an additional 46,000 square feet in two phases, anticipated to be available in December 2027 and January 2028.

The initial lease term for the 400 Tech Square space is set for twelve years and three months following the rent commencement date, with an option for Intellia to extend for an additional five-year term. The company will begin paying rent approximately 14 months after the lease commencement date, which is expected to be July 1, 2025. With a healthy current ratio of 6.73, InvestingPro data indicates that Intellia’s liquid assets comfortably exceed its short-term obligations, supporting its ability to take on these new commitments. The starting base rent is projected at $108 per square foot per year, subject to annual increases and additional operating expenses and taxes. Moreover, the landlord will contribute up to $41.5 million towards construction and tenant improvements for the initial premises, with an additional contribution for the subsequent expansion space.

Concurrently, Intellia has amended its existing lease at 840 Winter Street, Waltham, Massachusetts, with ARE-Winter Street Property, LLC. This amendment will see the Winter Street lease terminate by June 30, 2028. Intellia will make lease modification payments totaling $78 million in three installments in 2025 and 2026, and will cease paying base rent and other costs for the Winter Street property after January 2025.

These strategic moves by Intellia are detailed in their SEC filings, which will be further outlined in the company’s upcoming Annual Report on Form 10-K for the period ended December 31, 2024. These developments reflect Intellia’s growth and its commitment to advancing its operations within the biotechnology hub of Cambridge. Analysts maintain a bullish outlook on the company, with price targets ranging from $10 to $106 per share. For deeper insights into Intellia’s financial health and growth prospects, investors can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Intellia Therapeutics announced several strategic changes and financial updates. The company reported a workforce reduction of approximately 27% and the discontinuation of some programs, including NTLA-3001 and its AATD program, in order to extend its financial resources into the first half of 2027. Intellia ended the fourth quarter of 2024 with approximately $862 million in cash, supporting its plans to focus on late-stage programs like NTLA-2002 for hereditary angioedema and nex-z for transthyretin amyloidosis. Morgan Stanley (NYSE:MS) downgraded Intellia’s stock from Overweight to Equalweight, citing concerns about competition and the high costs associated with gene-editing therapies, and adjusted its price target to $11.00. Meanwhile, Oppenheimer maintained an Outperform rating but reduced the price target to $40.00, reflecting the removal of certain programs from their model. BMO Capital Markets also cut its price target to $50 from $70, maintaining an Outperform rating, while BofA Securities reduced its target to $45 but kept a Buy rating. These analyst updates reflect varying levels of confidence in Intellia’s strategic focus on its late-stage clinical programs and efforts to extend its financial runway.

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