Editas Medicine, Inc. EDIT incurred a loss of 71 cents per share in the first quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 79 cents. The company had reported a loss of 74 cents per share in the year-ago quarter. The reported loss per share is also narrower than our estimate of a loss of 80 cents per share.
Collaboration and other research and development revenues, which comprise the company’s top line, were $9.9 million in the reported quarter, up 45.5% from $6.8 million reported in the year-ago quarter. The Zacks Consensus Estimate for revenues was $5 million. The top line also beat our estimate of $3 million.
Editas’ stock jumped 12.04% on Friday and 6.55% during the pre-market hours today, following the better-than-expected performance in the first quarter of 2023. In the past year, shares of Editas have lost 12.1% against the industry’s 2.4% rise.
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The increase in collaboration and other research and development revenues is related to the company’s sales of its wholly-owned oncology assets and related licenses in January 2023. Notably, in January 2023, Editas Medicine and Shoreline Biosciences entered into a definitive agreement to acquire Editas’ gene editing technology. Per the terms of the agreement, Shoreline will obtain exclusive rights to Editas’ SLEEK gene editing knock-in technology, along with iNK cell programs, for incorporation into its iNK platforms and oncology in its iMACs platform. Shoreline will also receive a non-exclusive license for the AsCas12a enzyme, which has been developed by Editas.
The company also has a collaboration agreement with Bristol-Myers BMY. Editas is advancing alpha-beta T-cell experimental medicines for the treatment of solid and liquid tumors in collaboration with Bristol-Myers through its wholly-owned subsidiary, Juno Therapeutics, Inc.
Quarter in Detail
In the first quarter of 2023, research and development expenses were relatively flat year over year, amounting to $37.8 million compared with the year-ago figure of $38 million. This was due to a decrease in expenses following the strategic reprioritization of Editas’ portfolio, offset by increased investments to accelerate the development of EDIT-301.
General and administrative expenses were $23 million in the reported quarter, up 17.7% year over year, owing to increased professional services expenses to support business development activities, partially offset by a decrease in stock compensation expense.
Editas had cash, cash equivalents and investments worth $401.8 million as of Mar 31, 2023, compared with $437.4 million as of Dec 31, 2022. Editas expects its existing cash, cash equivalents and marketable securities to fund operating expenses and capital expenditure into 2025.
Editas has no approved products in its portfolio at the moment. Therefore, pipeline development remains the key focus of the company.
The company is evaluating the safety and efficacy of its investigational gene-editing medicine, EDIT-301, for treating sickle cell disease (SCD). Editas is currently continuing parallel dosing of the patients in the EDIT-301 study for SCD and remains on track to dose 20 total SCD patients by year-end, with 19 patients enrolled to date.
Editas is on track to present a clinical update from the RUBY trial by mid-2023 along with an additional update from the same study by year-end. EDIT-301 enjoys the FDA’s Orphan Drug Designation for the treatment of SCD.
Editas is also evaluating EDIT-301 for the treatment of transfusion-dependent beta thalassemia (TDT). The company dosed the first patient in the phase I/II EDITHAL study of EDIT-301, for treating TDT, in the first quarter of 2023. The patient reportedly had successful neutrophil and platelet engraftment. Editas is on track to present top-line data from the EDITHAL trial by the year end.
Editas Medicine, Inc. Price, Consensus and EPS Surprise
Editas Medicine, Inc. price-consensus-eps-surprise-chart | Editas Medicine, Inc. Quote
Zacks Rank and Stocks to Consider
Editas currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the biotech sector are Aptinyx APTX and ADMA Biologics, Inc. ADMA, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the Zacks Consensus Estimate for Aptinyx’s 2023 loss per share has narrowed from 77 cents to 47 cents. In the past year, shares of Aptinyx have fallen by 89%.
APTX beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 6.56%.
In the past 90 days, the consensus estimate for ADMA Biologics’ 2023 loss per share has narrowed from 19 cents to 14 cents. In the past year, shares of ADMA Biologics have increased by 124.7%.
ADMA beat estimates in three out of the trailing four quarters, missing the mark on one occasion, delivering an average earnings surprise of 2.88%.
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