Editas Medicine, Inc. (EDIT - Free Report) incurred a loss of 69 cents per share in the first quarter of 2020, narrower than the Zacks Consensus Estimate of a loss of 78 cents but wider than the year-ago loss of 60 cents.
Collaboration, and other research and development revenues comprising the company’s total revenues came in at $5.7 million, substantially up from the year-ago quarter’s $2.1 million. However, the top line slightly missed the Zacks Consensus Estimate of $6 million.
Editas has no approved product in its portfolio at the moment. The company generates collaboration revenues, and other research and development revenues. Its collaboration revenues increased in the first quarter owing to higher collaboration payments recognized under its collaboration with Allergan .
In the reported quarter, research and development expenses were $34.6 million, up 118.9% from the year-ago figure due to increased process and platform development costs, and costs related to an in-license deal inked in the quarter. General and administrative expenses also rose 1.7% to $17.8 million due to higher professional services costs.
Shares of Editas have declined 18.6% in the year so far against the industry’s increase of 3.8%.
Pipeline & Other Updates
In the absence of an approved product in Editas' portfolio, pipeline development remains in focus for the company.
The company’s lead pipeline candidate, EDIT-101, which uses CRISPR gene editing technology, is being developed for treating Leber congenital amaurosis type 10 (LCA10), a rare genetic illness that causes blindness. The disease has a significant unmet need as no therapies are presently approved to cure the same.
Editas is developing EDIT-101 in partnership with Allergan.
In March 2020, Editas and Allergan dosed the first patient in a phase I/II study of BRILLIANCE evaluating EDIT-101 for treating LCA10. The company plans to complete dosing in the adult low-dose cohort and dose at least one patient of the adult mid-dose cohort by the end of 2020.
Meanwhile, Editas is ready with the investigational new drug IND-enabling studies on EDIT-102, currenlty being developed for treating Usher Syndrome 2A. Per the company, EDIT-102 is ready for IND-enabling studies pending Allergan’s option exercise. A decision is expected by the third quarter of 2020.
Editas already initiated IND-enabling activities for EDIT-301, an experimental CRISPR medicine designed to treat sickle cell disease and beta-thalassemia by editing the beta-globin locus. The company plans to file the IND for EDIT-301 by 2020 end.
Notably, in April 2020, Editas initiated the IND-enabling activities for its allogeneic natural killer (NK) cell medicine, EDIT-201, for the treatment of solid tumor cancers.
We remind investors that in January 2020, Editas entered into a strategic collaboration, license and option agreement with Sandhill Therapeutics, Inc., to combine their respective genome editing and cell therapy technologies for discovering and developing allogeneic engineered NKcells and non-alpha beta T cell medicines to treat cancer.
Editas Medicine Inc Price, Consensus and EPS Surprise
Zacks Rank & Other Stocks to Consider
Editas currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the healthcare sector include Menlo Therapeutics Inc. (MNLO - Free Report) and Lineage Cell Therapeutics Inc (LCTX - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Menlo Therapeutics’ loss per share estimates have narrowed 38.2% for 2020 and 66.7% for 2021 over the past 60 days.
Lineage Cell’s loss per share estimates have narrowed 5.6% for 2020 and 4.8% for 2021 over the past 60 days.
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