Editas Medicine Is Beyond Skepticism, Analyst Has Confidence In Sickle Cell Therapy, Upgrades Stock

Stifel has upgraded Editas Medicine Inc EDIT, saying the company's sickle cell disease candidate, EDIT-301's progress, has received minimal credit from investors.

Analysts Dae Gon Ha and Benazir Ali have upgraded from Hold to Buy with a price target of $17, up from $9.

But with YE23's goal to dose n=20, in addition to important regulatory insights expected from CRISPR Therapeutics AG's CRSP exa-cel, EDIT-301 deserves a fresh look. 

Also Read: Editas' Gene Editing Treatment Shows Initial Safety, Efficacy In Patients With Rare Blood Disorders.

The analysts explore the varying valuations of EDIT and CRSP, focusing on comparable stages in their development. Stifel also considers the market's receptivity to subsequent gene editing innovations like EDIT-301 and the potential benefits emerging from the IP dispute.

A significant challenge could be the ongoing skepticism towards technology platforms. However, forthcoming clarifications could shift this sentiment positively. 

Exa-cel shows promise in efficacy and durability, potentially offering a cure especially beneficial for severe SCD patients, where the risk/benefit analysis of myeloablative conditioning is favorable. 

This could mean a restricted market opportunity for later entries like EDIT-301.

Yet, Stifel acknowledges these points but still finds reconciling the valuation disparity between EDIT and CRSP difficult. 

The analysts are optimistic about EDIT-301, backed by clinical and regulatory confidence.

Price Action: EDIT shares are up 11.30% at $7.70 on the last check Friday.