Editas Medicine Downgraded: Analyst Sees Limited Near-Term Catalysts

BofA Securities downgraded Editas Medicine Inc EDIT, citing few value-driving catalysts in the near term.

In its third-quarter earnings release, Editas Medicine said it engaged an investment bank to lead the process of partnering or out-licensing reni-cel (renizgamglogene autogedtemcel, previously EDIT-301).

The company is developing reni-cel for sickle cell disease and transfusion-dependent Beta Thalassemia.

The company is on track to share additional clinical and patient-reported outcomes data from 28 patients in the RUBY trial for sickle cell disease at the American Society of Hematology Annual Meeting in December.

The company has completed enrollment of the adult cohort of the EdiTHAL trial for thalassemia and continues patient dosing.

The analyst notes that Editas announced a shift in focus toward in vivo development, specifically working on lipid nanoparticle (LNP) formulations for treating sickle cell disease (SCD) and thalassemia.

While preclinical data shows some progress—29% editing in hematopoietic stem and progenitor cells (HSPCs) and around 20% of red blood cells expressing fetal hemoglobin (HbF)—more evidence is needed to prove functional benefits and advance to clinical trials.

Meanwhile, competitors like Beam Therapeutics Inc BEAM and CRISPR Therapeutics AG CRSP are investing heavily in their in vivo programs for SCD and thalassemia, with better-prepared manufacturing and development for clinical trials.

Given the deprioritization of reni-cel and the increasingly competitive environment for ex vivo therapies, BofA has reduced estimates and probabilities of success in SCD and beta-thal to 10% (from 60% prior).

The analyst downgraded from Buy to Underperform, with a price target of $1, down from $13.

This intensifying competition, limited short-term clinical milestones, and declining interest in gene editing pose challenges for Editas and could pressure its stock in the near term.

Price Action: EDIT stock is down 0.41% at $2.43 at last check Monday.

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