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Editas Medicine Inc (EDIT)
NASDAQ:EDIT
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Editas Medicine
(NASDAQ:EDIT)
39Underperform
Positive Factors
Clinical Development
Editas is on track to potentially be the first company to advance an in vivo HSC-targeted therapy into the clinic.
Financial Performance
Editas' cash is sufficient to fund operations beyond clinical proof-of-concept in at least one indication.
Negative Factors
Company Strategy
A 65% reduction in force reflects the company's reprioritization efforts, which also led to the discontinuation of the reni-cel program as a commercial search failed to yield a partner.
Competition
Investors are waiting for human proof-of-concept before committing, especially as the competitive landscape for in vivo programs intensifies with companies like Beam and CRISPR entering the space.
Editas Medicine (EDIT) vs. S&P 500 (SPY)
Market Cap
$92.93M
Dividend YieldN/A
Average Volume (3M)3.03M
Price to Earnings (P/E)―
Beta (1Y)1.92
Revenue Growth-58.64%
EPS Growth-40.05%
CountryUS
Employees246
SectorHealthcare
Sector Strength79
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.88
Shares Outstanding82,976,280
10 Day Avg. Volume1,821,002
30 Day Avg. Volume3,026,856
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.36
Price to Cash Flow (P/CF)-0.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.14Price Target Upside204.85% Upside
Rating ConsensusHold
Number of Analyst Covering9
Editas Medicine Business Overview & Revenue Model
Company DescriptionEditas Medicine, Inc., a clinical stage genome editing company, focuses on developing transformative genomic medicines to treat a range of serious diseases. It develops a proprietary gene editing platform based on CRISPR technology. The company develops EDIT-101, which is in Phase 1/2 clinical trial for Leber Congenital Amaurosis 10 that leads to inherited childhood blindness. It also develops EDIT-102 for the treatment of Usher Syndrome 2A, which is a form of retinitis pigmentosa that also includes hearing loss; autosomal dominant retinitis pigmentosa, a progressive form of retinal degeneration; and EDIT-301 to treat sickle cell disease and transfusion-dependent beta-thalassemia. In addition, the company is developing gene-edited Natural Killer cell medicines to treat solid tumor cancers; alpha-beta T cells for multiple cancers; and gamma delta T cell therapies to treat cancer, as well as has an early discovery program to develop a therapy to treat a neurological disease. It has a research collaboration with Juno Therapeutics, Inc. to develop engineered T cells for cancer; strategic alliance and option agreement with Allergan Pharmaceuticals International Limited to discover, develop, and commercialize new gene editing medicines for a range of ocular disorders; and research collaboration with Asklepios BioPharmaceutical, Inc. to develop a therapy to treat a neurological disease, as well as research collaboration with AskBio. The company was formerly known as Gengine, Inc. and changed its name to Editas Medicine, Inc. in November 2013. Editas Medicine, Inc. was incorporated in 2013 and is based in Cambridge, Massachusetts.
How the Company Makes MoneyEditas Medicine primarily generates revenue through collaborative research and development agreements, strategic partnerships, and licensing arrangements with pharmaceutical and biotechnology companies. These partnerships often involve upfront payments, milestone payments, and potential royalties on future product sales. Additionally, the company may receive funding from government grants or other research organizations. Key factors contributing to its earnings include the successful development and commercialization of gene-editing therapies, as well as the expansion of its proprietary CRISPR technology platform.
Editas Medicine Financial Statement Overview
Summary
Editas Medicine faces financial challenges typical of biotech firms in the R&D phase. The company has shown volatile revenue with a drop to zero in 2024, persistent net losses, and negative cash flows. Although it has strong cash reserves, its reliance on external funding and declining shareholder equity are concerns.Income Statement
Editas Medicine has shown a volatile revenue trajectory with a significant drop to zero revenue in 2024 from previous levels. The company has consistently reported negative net income, leading to negative profit margins. This indicates challenges in achieving profitability, common in the biotech industry, which often requires substantial R&D investments without immediate revenue.20
Very Negative
Balance Sheet
The company's balance sheet exhibits moderate financial health with a significant cash reserve relative to its total assets. The debt-to-equity ratio is low, suggesting conservative use of debt. However, the continuous decline in stockholders' equity indicates erosion of shareholder value, which is a concern.40
Negative
Cash Flow
Editas Medicine has consistently faced negative operating and free cash flows, reflecting operational struggles and high cash burn. Although there are instances of positive financing cash flows, this is likely due to capital raises rather than operational efficiency, posing a risk to long-term sustainability.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 32.31M | 78.12M | 19.71M | 25.54M | 90.73M | Gross Profit |
| 32.31M | -99.53M | 13.38M | 20.49M | -67.26M | EBIT |
| -251.15M | -169.18M | -225.95M | -193.15M | -134.84M | EBITDA |
| -233.11M | -163.12M | -219.61M | -188.09M | -130.88M | Net Income Common Stockholders |
| -237.09M | -153.22M | -204.35M | -185.11M | -109.41M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 269.91M | 323.11M | 437.37M | 619.91M | 511.77M | Total Assets |
| 341.59M | 499.15M | 514.32M | 677.48M | 572.60M | Total Debt |
| 35.03M | 36.54M | 43.95M | 26.38M | 26.14M | Net Debt |
| -96.51M | -87.12M | -97.58M | -177.14M | -113.55M | Total Liabilities |
| 207.31M | 150.06M | 153.64M | 123.84M | 179.02M | Stockholders Equity |
| 134.27M | 349.10M | 360.68M | 553.64M | 393.59M |
| Cash Flow | Free Cash Flow | |||
| -219.11M | -136.90M | -181.47M | -171.78M | -187.00M | Operating Cash Flow |
| -210.28M | -132.18M | -177.35M | -163.80M | -179.84M | Investing Cash Flow |
| 162.15M | -3.73M | 114.07M | -54.47M | -140.52M | Financing Cash Flow |
| 56.03M | 118.04M | 1.28M | 282.11M | 224.12M |
Editas Medicine Technical Analysis
Negative
1.03
Price Trends
1.49
Negative
1.66
Negative
2.87
Negative
Market Momentum
-0.12
Positive
38.16
Neutral
4.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDIT, the sentiment is Negative. The current price of 1.03 is below the 20-day moving average (MA) of 1.31, below the 50-day MA of 1.49, and below the 200-day MA of 2.87, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 38.16 is Neutral, neither overbought nor oversold. The STOCH value of 4.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDIT.
Editas Medicine Risk Analysis
Editas Medicine disclosed 70 risk factors in its most recent earnings report. Editas Medicine reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Editas Medicine Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
46 Neutral | $2.80B | ― | -19.20% | ― | -89.95% | -123.71% | |
46 Neutral | $1.64B | ― | -43.94% | ― | -83.18% | -144.95% | |
42 Neutral | $139.84M | ― | -187.83% | ― | -67.20% | 64.66% | |
41 Neutral | $713.24M | ― | -54.00% | ― | 59.55% | 3.09% | |
39 Underperform | $92.93M | ― | -98.10% | ― | -58.64% | -40.05% | |
36 Underperform | $47.87M | ― | -295.35% | ― | 184.12% | 31.92% |
* Healthcare Sector Average
Performance Comparison
EDIT
Editas Medicine
1.03
-5.69
-84.67%
SGMO
Sangamo Biosciences
0.66
0.10
17.86%
BLUE
Bluebird Bio
4.95
-18.25
-78.66%
NTLA
Intellia Therapeutics
6.63
-18.67
-73.79%
CRSP
Crispr Therapeutics AG
32.65
-31.44
-49.06%
BEAM
Beam Therapeutics
15.27
-13.54
-47.00%
Editas Medicine Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -49.76% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The call highlighted significant progress in both clinical trials and in vivo pipeline development. Financial stability was assured despite a higher burn rate. However, challenges such as increased expenses and regulatory issues around fertility support present hurdles. Overall, the company's advancements in gene editing and robust clinical trial outcomes provide a positive outlook.Highlights
Reni-cel Clinical Trials Progress
Completed adolescent cohort enrollment for the RUBY trial, and adult cohort enrollment in the EdiTHAL trial. Clinical data from RUBY and EdiTHAL trials show promising results with all patients free from vaso-occlusive events and a high level of fetal hemoglobin.
In Vivo Pipeline Advancements
On track to establish in vivo preclinical proof of concept for an undisclosed indication by the end of the year. Strengthening in vivo discovery capabilities and pursuing a differentiated strategy for gene editing.
Financial Position
Cash, cash equivalents, and marketable securities as of June 30 were $318 million, expected to fund operations into 2026.
Manufacturing Improvements
Robust manufacturing process for reni-cel with a low failure rate, potentially reducing patient burden and cost.
Lowlights
Increased Burn Rate
Higher burn rate this quarter due to increased external R&D expenses, primarily related to clinical and manufacturing costs.
Regulatory and Market Challenges
Concerns regarding HHS decision on fertility preservation coverage for sickle cell therapies, which may affect market dynamics.
Company Guidance
During the Editas Medicine Q2 2024 earnings call, CEO Gilmore O'Neill outlined the company's strategic progress, emphasizing three main pillars: advancing reni-cel towards BLA and commercialization, building a differentiated in vivo editing pipeline, and enhancing business development with a focus on intellectual property. The RUBY trial data for sickle cell disease showed promising results, with 18 patients having follow-up periods ranging from 2.4 to 22.8 months and demonstrating robust anemia correction. The EdiTHAL trial for beta-thalassemia included data from 7 patients with 4.1 to 12.8 months follow-up. Financially, Editas reported cash, cash equivalents, and marketable securities totaling $318 million as of June 30, 2024, with a burn rate increase due to R&D expenses. They expect to fund operations into 2026. The company is also on track to establish in vivo preclinical proof of concept by year-end, with a focus on leveraging indel technology for gene upregulation, targeting rare and orphan diseases initially.Editas Medicine Corporate Events
Executive/Board Changes
Editas Medicine Announces CFO Transition
Neutral
Mar 20, 2025
On March 18, 2025, Editas Medicine announced the resignation of Erick Lucera, its Executive Vice President and Chief Financial Officer, effective March 28, 2025. Amy Parison, who has been with the company since January 2025, will succeed him, bringing extensive experience from her previous roles at Rubius Therapeutics and Vertex Pharmaceuticals. The transition includes new compensation terms for Ms. Parison, highlighting her strategic importance to the company.
Product-Related AnnouncementsBusiness Operations and Strategy
Editas Medicine Outlines 2025 Strategic Priorities and Milestones
Positive
Jan 13, 2025
Editas Medicine announced new in vivo preclinical proof of concept data and outlined its strategic priorities and key milestones for 2025, aiming to advance its gene editing technologies targeting hematopoietic stem cells and liver cells. The company plans to declare two in vivo development candidates and expand its therapeutic possibilities, positioning itself as a leader in the in vivo gene editing field with a strong financial runway into 2027.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.