Intellia (NTLA) Beats on Q3 Earnings, Provides Pipeline Update
Intellia Therapeutics NTLA reported third-quarter 2023 loss of $1.38 per share, narrower than the Zacks Consensus Estimate of a loss of $1.52. In the year-ago quarter, Intellia incurred a loss of $1.49 per share.
The company’s total revenues, comprising only collaboration revenues, came in at $12 million compared with $13.3 million in the year-ago period. The top line missed the Zacks Consensus Estimate of $14 million.
Quarter in Details
Intellia’s collaboration revenues also missed our model estimate of $12.6 million.
Research and development expenses totaled $113.7 million, up 17.6% from the year-ago quarter’s figure. The rise was primarily due to an increase in expenses for the advancement of lead programs and personnel growth.
General and administrative expenses surged 32.8% year over year to $29.4 million due to an increase in stock-based compensation of $5.3 million.
As of Sep 30, 2023, NTLA had cash, cash equivalents and marketable securities worth $992.5 million compared with $1.1 billion as of Jun 30, 2023.
Shares of Intellia declined 12.3% in the last trading session due to the mixed nature of its earnings results. The stock has lost 28.5% in the year-to-date period compared with the industry’s 21.8% decline.
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Pipeline Updates
Intellia is developing curative therapeutics using the CRISPR/Cas9 technology. The company is evaluating its in-vivo genome-editing candidate NTLA-2001 for the treatment of transthyretin (ATTR) amyloidosis.
NTLA-2001 is part of the company’s co-development and co-promotion agreement with Regeneron Pharmaceuticals REGN. While NTLA is the lead party in the deal over NTLA-2001, REGN shares 25% of the development costs and commercial profits.
In October, Intellia received investigational new drug (IND) clearance from the FDA to initiate a pivotal phase III MAGNITUDE study to evaluate the efficacy and safety of NTLA-2001 in patients with ATTR amyloidosis with cardiomyopathy. The study’s primary endpoint is a composite endpoint of cardiovascular (CV)-related mortality and CV-related events. NTLA expects to initiate the MAGNITUDE study by the end of the year, commencing patient dosing in early 2024.
The company is also evaluating NTLA-2001 to treat hereditary ATTR amyloidosis with polyneuropathy. Intellia is currently gearing up for a pivotal phase III study of the candidate in this additional indication, including discussions with regulatory authorities.
Earlier this month, Intellia and Regeneron shared updated new positive data from its phase I study of NTLA-2001 in ATTR with cardiomyopathy patients.
The company is also evaluating NTLA-2002 in a phase I/II study for the treatment of hereditary angioedema (HAE). Intellia reported to be on track to complete enrollment in the phase II portion of its early-mid-stage study of NTLA-2002 in HAE in the fourth quarter of 2023.
NTLA is also currently planning to initiate a pivotal phase III study, including the U.S. patients, on NTLA-2002 in the HAE indication in the third quarter of 2024, contingent upon regulatory feedback.
Management informed the investors on the third-quarter earnings call that Regeneron has exercised its option to extend the existing technology collaboration term with Intellia for an additional two years until April 2026.
Intellia Therapeutics, Inc. Price and Consensus
Intellia Therapeutics, Inc. price-consensus-chart | Intellia Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Currently, Intellia has a Zacks Rank #3 (Hold).
Some better-ranked stocks worth mentioning are Apellis Pharmaceuticals APLS and Anixa Biosciences ANIX, each carrying a Zacks Rank #2 (Buy) at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Apellis’ 2023 loss per share has widened from $4.39 to $4.59. During the same time frame, the estimate for Apellis’ 2024 loss per share has narrowed from $2.41 to $1.92. Year to date, shares of APLS have lost 10.3%.
APLS beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative earnings surprise of 3.91%.
In the past 30 days, the Zacks Consensus Estimate for Anixa Biosciences’ 2023 loss per share has remained constant at 32 cents. During the same time frame, the estimate for Anixa Biosciences’ 2024 loss per share has remained constant at 37 cents. Year to date, shares of ANIX have lost 32%.
ANIX beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 26.29%.
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