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Editas (EDIT) Q2 Earnings Beat Estimates, Revenues Fall Y/Y

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Editas Medicine, Inc. EDIT incurred a loss of 81 cents per share in the second quarter of 2021, which was narrower than the Zacks Consensus Estimate of a loss of 85 cents per share. The company reported a loss of 43 cents in the year-ago quarter loss.

Collaboration, and other research and development revenues comprising the company’s top line came in at $0.4 million in the reported quarter, compared with $10.7 million reported in the year-ago quarter. The top line substantially missed the Zacks Consensus Estimate of $7 million.

Per the company, the significant year-over-year decrease in revenues was due to revenues recognized pursuant to an out-license agreement entered in second-quarter 2020 as well as revenues recognized under the strategic alliance with Allergan [now part of AbbVie ABBV]. No such revenues were recorded in second-quarter 2021.

In the second quarter of 2021, research and development expenses were $33.8 million, up 20.7% from the year-ago figure due to increased expenses related to clinical pipeline development. General and administrative expenses increased 56% to $22 million owing to higher stock-based compensation expenses.

Shares of Editas were up 9.4% on Wednesday following the announcement of the earnings results. However, the stock has plunged 34.3% so far this year against the industry’s increase of 1%.

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Zacks Investment Research

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Pipeline & Other Updates

Editas has no approved product in its portfolio at the moment. Therefore, pipeline development remains in key focus for 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 June 2021, Editas started enrollment in the first of two planned pediatric cohorts in the phase I/II BRILLIANCE study evaluating EDIT-101 for treating LCA10.

Initial data from the same is expected next month, which will mark company’s first-ever clinical data readout for any of its pipeline candidates.

Editas will now run the pediatric mid-dose cohort and the adult high-dose cohort concurrently, with first dosing expected this summer and dosing completion anticipated in the first half of 2022.

Editas has also commenced the phase I/II RUBY study to assess the safety and efficacy of another pipeline candidate, EDIT-301, for treating sickle cell disease. The company plans to dose the first patient in the RUBY study by the end of 2021.

Also, Editas plans to submit an investigational new drug filing to the FDA to begin clinical studies on EDIT-301 for the treatment of beta-thalassemia by 2021-end.

Editas Medicine, Inc. Price, Consensus and EPS Surprise

Editas Medicine, Inc. Price, Consensus and EPS Surprise
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). Better-ranked stocks in the biotech sector include Bio-Techne Corporation TECH and Spero Therapeutics, Inc. SPRO, 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.

Bio-Techne’s earnings estimates have been revised 0.2% upward for 2021 and 1.7% upward for 2022 over the past 60 days. The stock has rallied 53.3% year to date.

Spero Therapeutics’ loss per share estimates have narrowed by 1% for 2021 and 2% for 2022 over the past 60 days.

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