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Editas (EDIT) Q4 Earnings Miss Estimates, Pipeline in Focus
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Editas Medicine, Inc. (EDIT - Free Report) incurred a loss of 88 cents per share in the fourth quarter of 2022, wider than the Zacks Consensus Estimate of a loss of 84 cents. The company had reported a loss of 61 cents per share in the year-ago quarter.
Collaboration and other research and development revenues, which comprise the company’s top line, were $6.5 million in the reported quarter, down from $12.5 million reported in the year-ago quarter. The Zacks Consensus Estimate for revenues was $5 million.
The company has a collaboration agreement with Bristol-Myers (BMY - Free Report) . The company is advancing alpha-beta T-cell experimental medicines for the treatment of solid and liquid tumors in collaboration with Bristol-Myers through its wholly owned subsidiary, Juno Therapeutics, Inc.
Editas Medicine, Inc. Price, Consensus and EPS Surprise
In fourth-quarter 2022, research and development expenses were $52 million, up from the year-ago figure of $37.5 million, owing to increased clinical and manufacturing investments in the company’s EDIT-301 program, and a one-time charge incurred as part of the company pausing internal investment in EDIT-101.
General and administrative expenses were $17.9 million in the fourth quarter, up 8.8% year over year.
Editas had cash, cash equivalents and investments worth $437.4 million as of Dec 31, 2022, compared with $478.5 million as of Sep 30, 2022. Editas expects its existing cash, cash equivalents and marketable securities to fund operating expenses and capital expenditure into 2025.
Shares of Editas have lost 38.6% in the past year compared with the industry’s decline of 8.8%.
Image Source: Zacks Investment Research
Pipeline & Other Updates
Editas has no approved products in its portfolio at the moment. Therefore, pipeline development remains the key focus of the company.
The company is evaluating the safety and efficacy of its investigational gene-editing medicine, EDIT-301, for treating sickle cell disease (“SCD”). After completing sequential dosing of the first two patients, Editas Medicine has commenced parallel patient dosing in the phase I/II RUBY study for severe SCD after completing sequential dosing of the first two patients. The company is on track to dose 20 total SCD patients by year’s end.
Editas is on track to present a clinical update from the RUBY trial by mid-2023.
In December 2022, Editas Medicine announced positive safety and efficacy data from the first two patients treated in the RUBY trial, suggesting clinical proof-of-concept.
Editas is also evaluating EDIT-301 for the treatment of transfusion-dependent beta thalassemia (“TDT”). Editas Medicine is on track to dose the first patient in the phase I/II EDITHAL study for TDT in the ongoing quarter. Editas is on track to present data from the EDITHAL trial by year’s end.
Last month, Editas announced that it would discontinue internal investments in the company’s inherited retinal disease (IRD) programs, including EDIT-101 for Leber Congenital Amaurosis 10 (LCA10) and EDIT-103 for rhodopsin-associated autosomal dominant retinitis pigmentosa (RHO-adRP). Editas Medicine will seek partnerships for further development of its IRD programs.
It will discontinue internal investments in the company’s wholly owned multiplexed edited induced pluripotent stem cell (iPSC)-derived natural killer (iNK) cell programs, including EDIT-202 for solid tumors. Editas Medicine will seek a partnership to continue the development of the company’s iNK franchise.
As a result of the strategic reprioritization, the company’s headcount is being reduced by approximately 20%, which is expected to extend the company’s cash runway into 2025.
Over the past 60 days, earnings estimates for Dynavax for 2022 have increased by 11 cents to $1.95. Dynavax surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 73.15%.
Over the past 90 days, earnings estimates for KALA for 2022 have increased by 26 cents. KALA topped earnings estimates in two of the last four quarters and missed in the other two, with a four-quarter earnings surprise of 2.39%, on average.
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Editas (EDIT) Q4 Earnings Miss Estimates, Pipeline in Focus
Editas Medicine, Inc. (EDIT - Free Report) incurred a loss of 88 cents per share in the fourth quarter of 2022, wider than the Zacks Consensus Estimate of a loss of 84 cents. The company had reported a loss of 61 cents per share in the year-ago quarter.
Collaboration and other research and development revenues, which comprise the company’s top line, were $6.5 million in the reported quarter, down from $12.5 million reported in the year-ago quarter. The Zacks Consensus Estimate for revenues was $5 million.
The company has a collaboration agreement with Bristol-Myers (BMY - Free Report) . The company is advancing alpha-beta T-cell experimental medicines for the treatment of solid and liquid tumors in collaboration with Bristol-Myers through its wholly owned subsidiary, Juno Therapeutics, Inc.
Editas Medicine, Inc. Price, Consensus and EPS Surprise
Editas Medicine, Inc. price-consensus-eps-surprise-chart | Editas Medicine, Inc. Quote
In fourth-quarter 2022, research and development expenses were $52 million, up from the year-ago figure of $37.5 million, owing to increased clinical and manufacturing investments in the company’s EDIT-301 program, and a one-time charge incurred as part of the company pausing internal investment in EDIT-101.
General and administrative expenses were $17.9 million in the fourth quarter, up 8.8% year over year.
Editas had cash, cash equivalents and investments worth $437.4 million as of Dec 31, 2022, compared with $478.5 million as of Sep 30, 2022. Editas expects its existing cash, cash equivalents and marketable securities to fund operating expenses and capital expenditure into 2025.
Shares of Editas have lost 38.6% in the past year compared with the industry’s decline of 8.8%.
Image Source: Zacks Investment Research
Pipeline & Other Updates
Editas has no approved products in its portfolio at the moment. Therefore, pipeline development remains the key focus of the company.
The company is evaluating the safety and efficacy of its investigational gene-editing medicine, EDIT-301, for treating sickle cell disease (“SCD”). After completing sequential dosing of the first two patients, Editas Medicine has commenced parallel patient dosing in the phase I/II RUBY study for severe SCD after completing sequential dosing of the first two patients. The company is on track to dose 20 total SCD patients by year’s end.
Editas is on track to present a clinical update from the RUBY trial by mid-2023.
In December 2022, Editas Medicine announced positive safety and efficacy data from the first two patients treated in the RUBY trial, suggesting clinical proof-of-concept.
Editas is also evaluating EDIT-301 for the treatment of transfusion-dependent beta thalassemia (“TDT”). Editas Medicine is on track to dose the first patient in the phase I/II EDITHAL study for TDT in the ongoing quarter. Editas is on track to present data from the EDITHAL trial by year’s end.
Last month, Editas announced that it would discontinue internal investments in the company’s inherited retinal disease (IRD) programs, including EDIT-101 for Leber Congenital Amaurosis 10 (LCA10) and EDIT-103 for rhodopsin-associated autosomal dominant retinitis pigmentosa (RHO-adRP). Editas Medicine will seek partnerships for further development of its IRD programs.
It will discontinue internal investments in the company’s wholly owned multiplexed edited induced pluripotent stem cell (iPSC)-derived natural killer (iNK) cell programs, including EDIT-202 for solid tumors. Editas Medicine will seek a partnership to continue the development of the company’s iNK franchise.
As a result of the strategic reprioritization, the company’s headcount is being reduced by approximately 20%, which is expected to extend the company’s cash runway into 2025.
Zacks Rank & Other Stocks to Consider
Editas currently carries a Zacks Rank #2 (Buy). Other stocks worth considering in the biotech sector are Dynavax Technologies (DVAX - Free Report) and Kala Pharmaceuticals (KALA - Free Report) , both carrying the same rank as Editas at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past 60 days, earnings estimates for Dynavax for 2022 have increased by 11 cents to $1.95. Dynavax surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 73.15%.
Over the past 90 days, earnings estimates for KALA for 2022 have increased by 26 cents. KALA topped earnings estimates in two of the last four quarters and missed in the other two, with a four-quarter earnings surprise of 2.39%, on average.