Jefferies Upgrades Editas Medicine To Buy, Positive On Partnerships & Progress On LCA 10 IND Testing

Jefferies upgraded Editas Medicine Inc EDIT to Buy from Hold on partnerships and progress on LCA 10 IND testing.

Editas is an early stage drug development company with a focus on CRISPR/Cas9 technology, a newly emerged transformative gene-editing tool.

Editas announced collaboration with Adverum Biotechnologies Inc ADVM on AAV vectors in eye indications, which along with other partnerships further enhances the tech capability.

Moreover, the company remains on track to file LCA10 IND in 2017 for Leber Congenital Amaurosis 10, a rare genetic eye disease. Initial Phase 1 data is expected in 2018 or later, an event that could potentially establish the clinical POC for CRISPR/Cas9 as a transformative technology.

"While our PT remains unchanged, recent pullback due to lockup expiry and general weakness in the SMID cap biotech sector provides an oppt to participate in the transformative CRIPSR technology," Gena Wang wrote in a note.

On the financial front, Editas ended the second quarter with $217.7 million cash. The company reported revenues of $3.4 million versus Jefferies/consensus estimates of $3.7 million/$2.5 million.

Shares of Editas closed Tuesday at $23.28.