Editas Medicine, Inc. (EDIT Quick QuoteEDIT - Free Report) announced that it has entered into a collaboration and nonexclusive license agreement with Canada-based privately held company Genevant Sciences to develop in vivo gene editing medicines. Shares of Editas were up 2.4% in after-hours trading on Oct. 21, following the announcement of the news.

The partnership aims to leverage Editas’ CRISPR Cas12a genome editing systems with Genevant’s proprietary lipid nanoparticle (LNP) technology to develop novel mRNA-LNP gene editing therapies for two undisclosed targets in EDIT’s upregulation strategy.

Per the deal, Editas will pay up to $238 million in upfront and contingent milestone payments to Genevant, while the latter will also be eligible to receive tiered royalties on future net sales upon potential approval.

Genevant has also granted Editas a nonexclusive worldwide license for the LNP technology to develop mRNA-CRISPR Cas12a-LNP products directed to two undisclosed targets in certain specified fields.

Year to date, shares of Editas have plunged 62.9% compared with the industry’s decline of 1.8%.

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EDIT's Lead Pipeline Candidate Holds Promise

Editas is evaluating the safety and efficacy of its lead gene-editing medicine, reni-cel (renizgamglogene autogedtemcel, previously EDIT-301), in phase I/II/III RUBY study for treating sickle cell disease (SCD).

The company completed enrollment and continues to dose SCD patients in the adult cohort of the RUBY study, while enrollment has been completed in the adolescent cohort of the RUBY study. Editas remains on track to report substantive data from the RUBY study by 2024-end.

Editas is also evaluating reni-cel for the treatment of transfusion-dependent beta thalassemia (TDT). The company has completed enrollment in the adult cohort and continues to dose patients in the EdiTHAL study for TDT. Additional clinical data from the EdiTHAL study is also expected to be announced by the end of 2024.

Editas has no approved products in its portfolio at the moment. Therefore, pipeline development remains the key focus of the company.

EDIT's Other Collaboration Deal

Editas has collaboration and licensing pacts with other companies for unique technologies. The company is currently using its CRISPR/Cas12a and CRISPR/Cas9 genome editing systems to develop its pipeline candidates for treatments for people living with serious diseases.

In December 2023, Editas announced that it has entered into a licensing agreement with Vertex Pharmaceuticals (VRTX Quick QuoteVRTX - Free Report) for the development of the latter’s newly approved SCD gene therapy, Casgevy (exagamglogene autotemcel [exa-cel]).

Per the terms of the agreement, VRTX obtained a non-exclusive license to utilize Editas’ Cas9 gene editing technology for ex vivo gene editing medicines targeting the BCL11A gene in the fields of SCD and beta-thalassemia, including Casgevy.

The deal with Vertex extends Editas’ cash runway into 2026. Such strategic collaborations bode well for the company.

EDIT's Zacks Rank & Stocks to Consider

Editas currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the biotech sector are ANI Pharmaceuticals, Inc. (ANIP Quick QuoteANIP - Free Report) and Elevation Oncology, Inc. (ELEV Quick QuoteELEV - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 earnings per share have moved up from $4.69 to $4.81. Earnings per share estimates for 2025 have improved from $5.37 to $5.86. Year to date, shares of ANIP have risen 7.5%.

ANIP’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 31.32%.

In the past 60 days, estimates for Elevation Oncology’s 2024 loss per share have narrowed from 86 cents to 82 cents. Loss per share estimates for 2025 have narrowed from 90 cents to 86 cents. Year to date, shares of ELEV have risen 9%.

ELEV’s earnings beat estimates in three of the trailing four quarters while missing on the remaining occasion, the average surprise being 12.05%.