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Editas (EDIT) Q4 Earnings & Revenues Top Estimates, Stock Up
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Editas Medicine, Inc. (EDIT - Free Report) incurred a loss of 23 cents per share in the fourth quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 52 cents. The company had reported a loss of 88 cents per share in the year-ago quarter.
Collaboration and other research and development (R&D) revenues, which comprise the company’s top line, were $60 million in the reported quarter, up significantly from $6.5 million reported in the year-ago quarter. The reported figure beat the Zacks Consensus Estimate of $13 million. The massive uptick in revenues was primarily driven by payments received under Editas’ licensing agreement with Vertex (VRTX - Free Report) during the fourth quarter.
In December 2023, Vertex in-licensed rights to Editas’ Cas9 gene editing tool to develop its newly approved sickle cell disease (SCD) gene therapy, Casgevy.
EDIT’s stock jumped about 25% in the last trading session, owing primarily to the earnings beat as well as an encouraging regulatory update regarding its late-stage RUBY study of reni-cel (renizgamglogene autogedtemcel, previously EDIT-301) for SCD.
In the past year, shares of Editas have risen 26.9% against the industry’s 6.1% decline.
Image Source: Zacks Investment Research
Quarter in Detail
In the fourth quarter of 2023, R&D expenses increased 34% to $69.6 million compared with $52 million in the year-ago period. The uptick in R&D expenses can be attributed tosublicense payments made in connection with the Vertex license agreement, offset by savings from Editas’ strategic reprioritization, including a targeted clinical and manufacturing focus on reni-cel.
General and administrative expenses were $14.5 million in the reported quarter, down 20% year over year. The decrease was on the grounds of reduced patent and legal costs.
Editas had cash, cash equivalents and investments worth $427.1 million as of Dec 31, 2023, compared with $446.4 million as of Sep 30, 2023. The company expects its existing cash, cash equivalents and marketable securities, together with the near-term annual license fees and the contingent upfront payment from Vertex, to fund operating expenses and capital expenditure in 2026.
2023 Results
Total collaboration and other R&D revenues for full-year 2023 were clocked at $78.1 million, up about 296% year over year. The reported figure beat the Zacks Consensus Estimate of $32 million.
For the full year, Editas recorded a loss of $2.02 per share, narrower than the reported loss of $3.21 in 2022 as well as the Zacks Consensus Estimate of a loss of $2.31.
Pipeline 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, reni-cel, in the RUBY study for SCD. In the earnings release, EDIT announced that it has reached alignment with the FDA on considering RUBY as a phase I/II/III study, which will support a regulatory filing for reni-cel to treat SCD.
The company continues to enroll and dose SCD patients in the adult cohort of the RUBY study. The company recently initiated enrollment in the adolescent cohort of the RUBY study. Per Editas, it is on track to report substantive data from the RUBY study in mid-2024 and further data by the end of 2024.
The company is also evaluating reni-cel for the treatment of transfusion-dependent beta thalassemia (TDT). EDIT continues to enroll and dose patients in the EdiTHAL study for TDT. The company is also on track to report additional clinical data from the EdiTHAL study in mid-2024 and further data by the end of 2024.
Editas Medicine, Inc. Price, Consensus and EPS Surprise
In the past 30 days, the Zacks Consensus Estimate for Akero Therapeutics’ 2023 loss per share has remained constant at $2.82. During the same period, the estimate for AKRO’s 2024 loss per share has remained constant at $3.34. In the past year, shares of AKRO have lost 42.2%.
AKRO beat on earnings in three of the trailing four quarters and missed the same in one, delivering an average surprise of 12.20%.
In the past 30 days, the Zacks Consensus Estimate for Adicet Bio’s 2023 loss per share has remained constant at $3.39. During the same period, the consensus estimate for Adicet Bio’s 2024 loss per share has narrowed from $2.29 to $1.81. In the past year, shares of ACET have plunged 69.6%.
ACET’s earnings beat estimates in two of the trailing four quarters and missed the same in the other two, delivering an average negative surprise of 8.36%.
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Editas (EDIT) Q4 Earnings & Revenues Top Estimates, Stock Up
Editas Medicine, Inc. (EDIT - Free Report) incurred a loss of 23 cents per share in the fourth quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 52 cents. The company had reported a loss of 88 cents per share in the year-ago quarter.
Collaboration and other research and development (R&D) revenues, which comprise the company’s top line, were $60 million in the reported quarter, up significantly from $6.5 million reported in the year-ago quarter. The reported figure beat the Zacks Consensus Estimate of $13 million. The massive uptick in revenues was primarily driven by payments received under Editas’ licensing agreement with Vertex (VRTX - Free Report) during the fourth quarter.
In December 2023, Vertex in-licensed rights to Editas’ Cas9 gene editing tool to develop its newly approved sickle cell disease (SCD) gene therapy, Casgevy.
EDIT’s stock jumped about 25% in the last trading session, owing primarily to the earnings beat as well as an encouraging regulatory update regarding its late-stage RUBY study of reni-cel (renizgamglogene autogedtemcel, previously EDIT-301) for SCD.
In the past year, shares of Editas have risen 26.9% against the industry’s 6.1% decline.
Image Source: Zacks Investment Research
Quarter in Detail
In the fourth quarter of 2023, R&D expenses increased 34% to $69.6 million compared with $52 million in the year-ago period. The uptick in R&D expenses can be attributed tosublicense payments made in connection with the Vertex license agreement, offset by savings from Editas’ strategic reprioritization, including a targeted clinical and manufacturing focus on reni-cel.
General and administrative expenses were $14.5 million in the reported quarter, down 20% year over year. The decrease was on the grounds of reduced patent and legal costs.
Editas had cash, cash equivalents and investments worth $427.1 million as of Dec 31, 2023, compared with $446.4 million as of Sep 30, 2023. The company expects its existing cash, cash equivalents and marketable securities, together with the near-term annual license fees and the contingent upfront payment from Vertex, to fund operating expenses and capital expenditure in 2026.
2023 Results
Total collaboration and other R&D revenues for full-year 2023 were clocked at $78.1 million, up about 296% year over year. The reported figure beat the Zacks Consensus Estimate of $32 million.
For the full year, Editas recorded a loss of $2.02 per share, narrower than the reported loss of $3.21 in 2022 as well as the Zacks Consensus Estimate of a loss of $2.31.
Pipeline 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, reni-cel, in the RUBY study for SCD. In the earnings release, EDIT announced that it has reached alignment with the FDA on considering RUBY as a phase I/II/III study, which will support a regulatory filing for reni-cel to treat SCD.
The company continues to enroll and dose SCD patients in the adult cohort of the RUBY study. The company recently initiated enrollment in the adolescent cohort of the RUBY study. Per Editas, it is on track to report substantive data from the RUBY study in mid-2024 and further data by the end of 2024.
The company is also evaluating reni-cel for the treatment of transfusion-dependent beta thalassemia (TDT). EDIT continues to enroll and dose patients in the EdiTHAL study for TDT. The company is also on track to report additional clinical data from the EdiTHAL study in mid-2024 and further data by the end of 2024.
Editas Medicine, Inc. Price, Consensus and EPS Surprise
Editas Medicine, Inc. price-consensus-eps-surprise-chart | Editas Medicine, Inc. Quote
Zacks Rank and Other Stocks to Consider
Editas currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the same industry are Akero Therapeutics (AKRO - Free Report) and Adicet Bio, Inc. (ACET - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 30 days, the Zacks Consensus Estimate for Akero Therapeutics’ 2023 loss per share has remained constant at $2.82. During the same period, the estimate for AKRO’s 2024 loss per share has remained constant at $3.34. In the past year, shares of AKRO have lost 42.2%.
AKRO beat on earnings in three of the trailing four quarters and missed the same in one, delivering an average surprise of 12.20%.
In the past 30 days, the Zacks Consensus Estimate for Adicet Bio’s 2023 loss per share has remained constant at $3.39. During the same period, the consensus estimate for Adicet Bio’s 2024 loss per share has narrowed from $2.29 to $1.81. In the past year, shares of ACET have plunged 69.6%.
ACET’s earnings beat estimates in two of the trailing four quarters and missed the same in the other two, delivering an average negative surprise of 8.36%.