Why Editas Pharmaceuticals stock price soared 42% this week

stock medical publishing (edit 4.67%) It surged 41.6% this week, according to data from S&P Global Market Intelligence. By market close on Friday, the stock was still up 34.8%.

The catalyst that raised the profile of the gene-editing expert was the company’s quarterly report, which included a surprise announcement.

Connection with FDA

Editas Medicine on Wednesday reported better fourth-quarter results than investors had expected. The company reported a loss per share of $0.23 on revenue of $60 million. Financial results typically take a backseat to other announcements from smaller pharmaceutical developers, but Editas beat expectations, as analysts’ consensus estimates called for revenue of $7.94 million and a loss of $0.54 per share.

Perhaps more importantly, Editas reported that it had $427.1 million in cash, cash equivalents, and marketable securities as of December 31, 2023. Management said it believes this balance will be covered by short-term license fees and upfront payments. Vertex PharmaceuticalsThat would be enough to “fund operating costs and capital expenditures through 2026.”

Editas also announced that the company is partnering with the Food and Drug Administration (FDA) and that the Ruby clinical trial to test EDIT-301 (now called renizgamglogene autogedtemcel, or reni-cel) for severe sickle cell disease will be designated as a single phase. I did. 1/2/3 trials supporting the company’s anticipated submission of a biologics license application. Editas expects to have substantive data to support its submission later this year.

cheers from wall street

Following the report, Wall Street grew more confident about the company’s prospects, with several analysts rushing to raise their price targets.

analyst city They raised their price target on Editas stock from $11 to $16, while maintaining a Buy rating on the stock. Analysts cited the fourth quarter report and FDA adjustments. At the same time, Barclays analyst Gena Wang, citing fourth-quarter results, maintained an equal weight (maintain) rating and raised the stock price target to $11.

While the results are a step in the right direction, it’s important for investors to remember that Editas has only one clinical-stage program and is still more than a year away from submitting an application to the FDA. Moreover, with a market capitalization of only $860 million, Editas is still very risky.