[ad_1]
shares of editas medicine (NASDAQ:Edit) The stock has seen significant gains this week, soaring 41.6%, according to data from S&P Global Market Intelligence. The stock was up 34.8% as of Friday’s market close.
The company’s quarterly report, which included a surprising announcement, led to higher praise for the gene-editing expert.
Cooperation with FDA
On Wednesday, Editas Medicine announced fourth-quarter financial results that exceeded investor expectations. The company had revenue of $60 million and loss per share of $0.23. Earnings releases for smaller drug development companies typically take a backseat to other announcements, but Editas beat expectations, with analysts’ consensus estimates calling for revenue of $7.94 million and loss per share of $0.54. Ta.
Perhaps more importantly, Editas reported that it had cash, cash equivalents, and marketable securities of $427.1 million as of December 31, 2023. Management said it believes this balance includes short-term license fees and upfront payments. vertex pharmaceuticalsenough to “finance operating costs and capital expenditures through 2026.”
Editas also announced that the company is working with the Food and Drug Administration (FDA) to develop EDIT-301 (now called Lenizgamglogen autogetemcel, or Lenicel) for severe sickle cell disease. It was also announced that the Ruby trial will be designated as a single-phase trial. 1/2/3 trial to support the company’s planned biologics license application. Editas expects to have substantive data supporting its application later this year.
Cheers on Wall Street
The report boosted Wall Street’s confidence in the company’s prospects, with several analysts rushing to raise their price targets.
analyst of city raised its price target on Editas stock from $11 to $16, while maintaining a buy rating on the stock. Analysts cited the fourth quarter report and FDA coordination. At the same time, Barclays analyst Gina Wang raised her price target to $11 while maintaining an equal weight (hold) rating on the stock, citing fourth-quarter results.
While this result is a step in the right direction, the important thing for investors is that Editas only has one clinical-stage program, and it will probably still be a year or more before it submits an application to the FDA. . Additionally, Editas has a market capitalization of just $860 million, so it still carries considerable risk.
Should you invest $1,000 in Editas Medicine right now?
Before buying Editas Medicine stock, consider the following:
of Motley Fool Stock Advisor Our analyst team has identified what they believe Best 10 stocks What investors can buy right now…and Editas Medicine wasn’t among them. These 10 stocks have the potential to generate impressive returns over the next few years.
stock advisor We provide investors with an easy-to-understand blueprint for success, including guidance on portfolio construction, regular updates from analysts, and two new stocks every month.of stock advisor Since 2002, the service has more than tripled S&P 500 returns*.
See 10 stocks
*Stock Advisor will return as of February 26, 2024
Citigroup is an advertising partner of The Motley Fool’s Ascent. Danny Vena has no position in any stocks mentioned. The Motley Fool has a position in and recommends Editas Medicine and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
Why Editas Medicine’s stock price rose 42% this week Original article by The Motley Fool
[ad_2]
Source link
