Gene Editing Stock's Prospects Cut In Half By Analyst, Citing Limited Value In Retina Treatment

  • Credit Suisse has downgraded Editas Medicine Inc EDIT from Outperform to Neutral with a price target of $13 from $25.
  • Thursday, Editas announced clinical data from the Phase 1/2 BRILLIANCE trial of EDIT-101, an in vivo CRISPR/Cas9 genome editing medicine.
  • Given the small population (around 300 in the U.S.), the company will pause enrollment in the BRILLIANCE trial and seek to identify a collaboration partner to continue the development of EDIT-101.
  • Credit Suisse says that Editas still maintains foundational intellectual property relating to CRISPR/Cas9 and CRISPR/Cas12a gene editing in human cells in relevant jurisdictions, which may lead to future licensing deals. 
  • The company also plans to release Phase 1/2 RUBY data for EDIT-301 in sickle cell disease later this year. However, the data will be early, and interpretation could be limited.
  • With reasonably low expectations, Editas also maintains optionality with its preclinical oncology programs.
  • Opportunities for the stock are difficult to assess and be range bound in the near term.
  • Price Action: EDIT shares are down 2.41% at $10.75 on the last check Friday.
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