Editas Medicine, Inc. EDIT incurred a loss of 78 cents per share in the second quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 84 cents. The company had reported a loss of 81 cents per share in the year-ago quarter.
Collaboration, and other research and development revenues, comprising of the company’s top line, came in at $6.4 million in the reported quarter compared with $0.4 million in the year-ago quarter. Revenues in the second quarter grew significantly, owing to additional programs licensed by Bristol Myers Squibb.The top line also beat the Zacks Consensus Estimate of $5 million.
In second-quarter 2022, research and development expenses were $43.7 million, up 29.3% from the year-ago figure, owing to higher expenses related to clinical studies.
General and administrative expenses decreased 23.1% to $16.9 million owing to performance awards granted in 2021, while no similar expenses were recorded in the second quarter of 2022.
Editas had cash, cash equivalents and investments worth $527.6 million as of Jun 30, 2022 compared with $566.4 million as of Mar 31, 2022.
Shares of Editas were up 13.4% on Wednesday following the announcement of the earnings result. The stock has plunged 29.6% in the year compared with the industry’s decrease of 22.1%.
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Pipeline & Other Updates
Editas has no approved product in its portfolio at the moment. Therefore, pipeline development remains the key focus of the company.
The company is developing its lead pipeline candidate, EDIT-101, which employs CRISPR gene editing to treat Leber congenital amaurosis type 10 (LCA10), a rare genetic illness that causes blindness.
In April 2022, Editas dosed the first pediatric patient in phase I/II BRILLIANCE study evaluating its lead candidate, EDIT-101, for the treatment of blindness due to LCA10. Currently, there is no therapy approved for treating LCA10.
Editas continues to screen and enroll pediatric and adult patients in the BRILLIANCE study. The company has completed dosing the second patient in the pediatric mid-dose cohort of the study.
An update from the BRILLIANCE study is expected in the second half of 2022.
Editas’ other pipeline candidates are also progressing well.
The company is evaluating the safety and efficacy of its investigational gene-editing medicine, EDIT-301, for treating sickle cell disease (“SCD”). EDIT is currently enrolling participants in the phase I/II RUBY study evaluating EDIT-301 for treating SCD.
Last month, the company treated the first SCD patient with EDIT-301 with successful engraftment, demonstrating a positive initial safety profile.
The FDA has removed the partial clinical hold on the RUBY study which was previously not disclosed. The removal of the clinical hold will help Editas to include patients’ efficacy data in the marketing application for EDIT-301.
In May 2022, the FDA granted Orphan Drug designation to EDIT-301 for the treatment of transfusion-dependent beta thalassemia (TDT).
Editas plans to begin a phase I/II study to evaluate the safety, tolerability and preliminary efficacy of EDIT-301 for treating TDT patients. Dosing in the study is expected to begin later in 2022.
Editas Medicine, Inc. Price, Consensus and EPS Surprise
Editas Medicine, Inc. price-consensus-eps-surprise-chart | Editas Medicine, Inc. Quote
Zacks Rank & Stocks to Consider
Editas currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector include Beam Therapeutics Inc. BEAM, Atara Biotherapeutics, Inc. ATRA and Precision BioSciences, Inc. DTIL, all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beam Therapeutics’ loss per share estimates narrowed 0.7% for 2022 and 0.8% for 2023 in the past 60 days.
Earnings of Beam Therapeutics have surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. BEAM delivered an earnings surprise of 1.80%, on average.
Atara Biotherapeutics’ loss per share estimates narrowed 0.6% for 2022 and 13.3% for 2023 in the past 60 days.
Earnings of Atara Biotherapeutics have surpassed estimates in two of the trailing four quarters and missed on the other two occasions. ATRA delivered an earnings surprise of -12.51%, on average.
Precision BioSciences’ loss per share estimates narrowed 5.8% for 2022 and 16.2% for 2023 in the past 60 days.
Earnings of Precision BioSciences have surpassed estimates in each of the trailing four quarters. DTIL delivered an earnings surprise of 76.15%, on average.
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