Editas Medicine Has To Navigate Sickle Cell Therapy Competition: Analyst

Cantor Fitzgerald has downgraded Editas Medicine Inc EDIT to Neutral from Overweight.

The analyst says that Editas' sickle cell therapy EDIT-301 is running approximately two years behind Vertex Pharmaceuticals/CRISPR Therapeutics AG's CRSP exa-cel and Bluebird Bio Inc's BLUE lovo-cel.

Editas hopes to generate clinical data on reduced organ damage, which may take years to produce.

Editas's approach revolves around setting EDIT-301 apart through two key elements - Highly selective Cas12a nuclease and a unique molecular strategy for inducing HbF. 

Regarding ex vivo gene editing, which offers quality control over off-target edits, showcasing the significance of nuclease selectivity might not be the most suitable avenue. 

Additionally, Cantor anticipates that surpassing exa-cel and lovo-cel in HbF production could pose a formidable challenge.

The analysts Eric Schmidt and Rick Bienkowsk also note that EDIT-301's ability to demonstrate clinical differentiation to these candidates is unclear.

While each of the three cell therapies designed for sickle cell disease (SCD) may demonstrate a favorable benefit-risk profile, Cantor anticipates that manufacturing challenges, intricate administration procedures, and cost considerations could restrict their adoption.

Cantir says the development of EDIT-301 is expected to be associated with limited value creation. 

As gene editing appears increasingly commoditized with multiple new entrants, any path toward IP monetization may not be straightforward.

Price Action: EDIT shares are down 4.68% at $6.92 on the last check Tuesday.