Editas (EDIT) Up More Than 70% in Past 3 Months: Here’s Why

Shares of Editas Medicine, Inc. EDIT have rallied 78.7% in the past three months compared with the industry’s increase of 7.4%.

Zacks Investment Research

Zacks Investment Research

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The company has made rapid progress in the development of its lead pipeline candidate, EDIT-101, in this time frame. EDIT-101 employs CRISPR gene editing to treat Leber congenital amaurosis type 10 (LCA10) — a rare genetic illness that causes blindness. In June 2021, Editas started enrollment in the first of two planned pediatric cohorts in the phase I/II BRILLIANCE study evaluating EDIT-101 for treating LCA10.

Initial data from the same is expected next month, which will mark company’s first-ever clinical data readout for any of its pipeline candidates.

Editas will now run the pediatric mid-dose cohort and the adult high-dose cohort concurrently, with first dosing expected this summer and dosing completion anticipated in the first half of 2022.

Shares of Editas rallied particularly after the gene-editing field crossed a major milestone when Intellia Therapeutics NTLA along with its partner Regeneron, announced positive interim data from the phase I study evaluating their in vivo CRISPR genome-editing candidate, NTLA-2001, for the treatment of transthyretin amyloidosis. The data is being viewed as a breakthrough in gene-editing research.

In fact, companies that have been developing CRISPR gene-editing therapies saw their shares soar on Intellia’s encouraging interim data on NTLA-2001. Apart from Intellia, Editas Medicine, CRISPR Therapeutics CRSP and Beam Therapeutics BEAM saw their stocks go up on the above news. This has substantially pushed up Editas’ share price in the past three months.

Editas has also commenced the phase I/II RUBY study to assess the safety and efficacy of another pipeline candidate, EDIT-301, for treating sickle cell disease. The company plans to dose the first patient in the RUBY study by the end of 2021.

Editas plans to submit an investigational new drug filing to the FDA to begin clinical studies on EDIT-301 for the treatment of beta-thalassemia by 2021-end.

We note that Editas has no approved product in its portfolio at the moment. Therefore, pipeline development remains a key focus for the company. If successfully developed and upon potential approval, EDIT-101 will be a boost for the company’s growth prospects, as it will be able to generate revenues. However, stiff competition remains a headwind for Editas as several other companies are also engaged in developing candidates to address different indications using CRISPR/Cas9 gene-editing technology.

Editas Medicine, Inc. Price

Editas Medicine, Inc. Price

Editas Medicine, Inc. Price

Editas Medicine, Inc. price | Editas Medicine, Inc. Quote

Zacks Rank

Editas currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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