Intellia (NTLA) Beats on Q4 Earnings, Provides Pipeline Update
Intellia Therapeutics, Inc. NTLA reported fourth-quarter 2023 loss of $1.46 per share, narrower than the Zacks Consensus Estimate of a loss of $1.47. In the year-ago quarter, Intellia incurred a loss of $1.40 per share.
The company’s total revenues currently comprise only collaboration revenues. NTLA reported negative revenues of $1.9 million during the fourth quarter of 2023 compared with $13.6 million reported in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $15 million.
The decrease in revenues was driven by a $10.3 million one-time revenue recognition adjustment owing to Regeneron REGN extending the technology collaboration to April 2026.
Intellia is eligible to receive a $30 million payment in April as part of the extension by REGN.
Quarter in Details
Intellia’s collaboration revenues also missed our model estimate of $8.3 million.
Research and development expenses totaled $109 million, up 9% 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 increased 22.9% year over year to $29 million due to an increase in stock-based compensation of $4.3 million.
As of Dec 31, 2023, NTLA had cash, cash equivalents and marketable securities worth $1 billion compared with $992.5 million as of Sep 30, 2023.
Shares of Intellia have lost 28% in the past year compared with the industry’s decline of 8.5%.
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Full-Year Results
In 2023, Intellia generated revenues of $36.3 million compared with $52.1 million generated in 2022.
In the same period, the company recorded a loss of $5.42 per share compared with $6.16 in 2022.
Pipeline Updates
Intellia is developing curative therapeutics using the CRISPR/Cas9 technology. The company plans to dose the first patient in the phase III MAGNITUDE study on NTLA-2001 to treat transthyretin (ATTR) amyloidosis with cardiomyopathy later in the first quarter of 2024.
NTLA-2001 is part of the company’s co-development and co-promotion agreement with Regeneron. While NTLA is the lead party in the deal over NTLA-2001, REGN shares 25% of the development costs and commercial profits.
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.
The company is evaluating NTLA-2002 in a phase I/II study for the treatment of hereditary angioedema (HAE). Intellia has completed enrollment in the phase II portion of its early-mid-stage study of NTLA-2002 in HAE.
The company plans to begin a pivotal phase III study, including the U.S. patients, on NTLA-2002 in the HAE indication in the second half of 2024, contingent upon regulatory feedback.
In November 2023, the European Commission granted orphan drug designation to NTLA-2002 for the treatment of HAE.
Intellia submitted a clinical trial application to initiate a first-in-human phase I study of NTLA-3001 in December 2023. The company plans to begin patient dosing later in 2024.
This apart, earlier this month, Intellia entered into a strategic collaboration with ReCode to develop novel gene editing therapies for cystic fibrosis.
Intellia Therapeutics, Inc. Price, Consensus and EPS Surprise
Intellia Therapeutics, Inc. price-consensus-eps-surprise-chart | Intellia Therapeutics, Inc. Quote
Zacks Rank & Other Stocks to Consider
Intellia currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the healthcare sector are Vanda Pharmaceuticals Inc. VNDA and Puma Biotechnology, Inc. PBYI, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for Vanda Pharmaceuticals’ 2024 bottom line has improved from a loss of 46 cents per share to earnings of 1 cent. In the past year, shares of VNDA have plunged 33.1%.
Vanda Pharmaceuticals’ earnings beat estimates in each of the trailing three quarters. VNDA delivered an average earnings surprise of 92.88%.
In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have improved from 64 cents to 71 cents. In the past year, shares of PBYI have risen 49.1%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.
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