Education
About Us
Working with TipRanks
Follow Us
Editas Medicine Inc (EDIT)
NASDAQ:EDIT
Top Page
Editas Medicine
(NASDAQ:EDIT)50Neutral
Positive Factors
Clinical Trials
Updated data from RUBY and EdiTHAL trials showed robust increases in total and fetal Hb with clinical benefits sustained up to the last follow-up.
Research and Development
EDIT plans to declare two in vivo development candidates, including one for HSC editing and one for liver editing, demonstrating proactive steps in R&D.
Negative Factors
Partnerships and Collaborations
EDIT announced that its discussions did not yield a commercial partner for reni-cel.
Editas Medicine (EDIT) vs. S&P 500 (SPY)
Market Cap
$146.11M
Dividend YieldN/A
Average Volume (3M)5.24M
Price to Earnings (P/E)―
Beta (1Y)1.80
Revenue Growth150.95%
EPS Growth5.48%
CountryUS
Employees265
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.56
Shares Outstanding82,548,096
10 Day Avg. Volume10,520,767
30 Day Avg. Volume5,237,560
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.37
Price to Cash Flow (P/CF)-0.70
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
$3.70Price Target Upside110.23% Upside
Rating ConsensusHold
Number of Analyst Covering15
Editas Medicine Business Overview & Revenue Model
Company DescriptionEditas Medicine (EDIT) is a biotechnology company focused on developing transformative genomic medicines using CRISPR technology. The company operates in the healthcare sector, aiming to address a range of genetic disorders by editing disease-causing genes. Editas Medicine's core products and services include research and development of therapies in areas such as ocular diseases, blood disorders, and neurodegenerative diseases.
How the Company Makes MoneyEditas Medicine makes money primarily through collaborations and partnerships with other biotechnology and pharmaceutical companies. These partnerships often involve upfront payments, milestone payments, and royalties based on the development, commercialization, and sales of their CRISPR-based therapies. Additionally, the company may generate revenue from licensing its technology and intellectual property to other entities. Funding from research grants and government entities can also contribute to its earnings. The success of their clinical trials and eventual commercialization of their therapies are significant factors that can affect their revenue model.
Editas Medicine Financial Statement Overview
Summary
Editas Medicine faces financial challenges characterized by persistent losses and negative cash flows. While gross profits show improvement, high expenses lead to negative margins. The balance sheet displays moderate leverage, yet the company's ability to generate positive returns and sustainable cash flow remains in question, posing risks to financial health.Income Statement
Editas Medicine has experienced fluctuating revenue with a recent decline from the previous year. The company consistently reports negative net income, indicating a lack of profitability. Gross profit margin is positive in the TTM, but high operating expenses result in negative EBIT and EBITDA margins, reflecting financial struggles in operational efficiency.45
Neutral
Balance Sheet
The balance sheet shows a reasonable equity ratio, indicating a fair level of financial stability. However, the company carries a debt-to-equity ratio that suggests moderate leverage. The return on equity is negative due to ongoing net losses, which signals a challenge in generating returns for shareholders.55
Neutral
Cash Flow
Editas Medicine has negative operating and free cash flows, indicating cash burn and raising concerns over cash sustainability. The operating cash flow to net income ratio is slightly above 1, suggesting that cash loss is slightly less severe than reported net losses. However, free cash flow remains significantly negative, highlighting cash flow challenges.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 61.76M | 78.12M | 19.71M | 25.54M | 90.73M | 20.53M | Gross Profit |
| 55.86M | -99.53M | 13.38M | 20.49M | -67.26M | -76.37M | EBIT |
| -228.52M | -169.18M | -225.95M | -193.15M | -134.84M | -140.92M | EBITDA |
| -219.10M | -163.12M | -219.61M | -188.09M | -130.88M | -138.09M | Net Income Common Stockholders |
| -210.57M | -153.22M | -204.35M | -185.11M | -109.41M | -123.47M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 323.11M | 323.11M | 437.37M | 619.91M | 511.77M | 457.14M | Total Assets |
| 499.15M | 499.15M | 514.32M | 677.48M | 572.60M | 508.88M | Total Debt |
| 36.54M | 36.54M | 43.95M | 26.38M | 26.14M | 29.08M | Net Debt |
| -87.12M | -87.12M | -97.58M | -177.14M | -113.55M | -209.10M | Total Liabilities |
| 150.06M | 150.06M | 153.64M | 123.84M | 179.02M | 246.45M | Stockholders Equity |
| 349.10M | 349.10M | 360.68M | 553.64M | 393.59M | 262.44M |
| Cash Flow | Free Cash Flow | ||||
| -191.35M | -136.90M | -181.47M | -171.78M | -187.00M | -46.84M | Operating Cash Flow |
| -181.76M | -132.18M | -177.35M | -163.80M | -179.84M | -40.67M | Investing Cash Flow |
| 194.03M | -3.73M | 114.07M | -54.47M | -140.52M | 12.25M | Financing Cash Flow |
| 1.03M | 118.04M | 1.28M | 282.11M | 224.12M | 131.82M |
Editas Medicine Technical Analysis
Neutral
1.76
Price Trends
1.44
Positive
2.08
Negative
3.34
Negative
Market Momentum
0.12
Positive
51.81
Neutral
13.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDIT, the sentiment is Neutral. The current price of 1.76 is above the 20-day moving average (MA) of 1.67, above the 50-day MA of 1.44, and below the 200-day MA of 3.34, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 13.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EDIT.
Editas Medicine Risk Analysis
Editas Medicine disclosed 72 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
50 Neutral | $146.11M | ― | -119.89% | ― | 150.95% | 5.48% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
49 Neutral | $3.73B | ― | -18.96% | ― | -89.95% | -123.71% | |
45 Neutral | $2.21B | ― | -51.36% | ― | -83.18% | -144.95% | |
42 Neutral | $179.37M | ― | -344.56% | ― | -74.04% | 48.16% | |
42 Neutral | $37.21M | ― | 5193.90% | ― | 144.50% | -141.91% | |
39 Underperform | $941.49M | ― | -59.52% | ― | 59.55% | 3.09% |
* Healthcare Sector Average
Performance Comparison
EDIT
Editas Medicine
1.76
-7.38
-80.74%
SGMO
Sangamo Biosciences
0.86
-0.17
-16.50%
BLUE
Bluebird Bio
3.82
-23.98
-86.26%
NTLA
Intellia Therapeutics
9.10
-21.15
-69.92%
CRSP
Crispr Therapeutics AG
43.45
-37.54
-46.35%
BEAM
Beam Therapeutics
26.44
-12.07
-31.34%
Editas Medicine Earnings Call Summary
Earnings Call Date: Nov 4, 2024 | % Change Since: -39.52% | Next Earnings Date: Mar 5, 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
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.
Product-Related AnnouncementsBusiness Operations and Strategy
Editas Medicine Shifts Focus to In Vivo Gene Editing
Neutral
Dec 12, 2024
Editas Medicine has announced a strategic shift towards focusing solely on in vivo gene editing, discontinuing its ex vivo renizgamglogene autogedtemcel program for sickle cell disease and beta thalassemia. This pivot involves reducing its workforce by 65% and is expected to extend the company’s cash runway into 2027, positioning it to achieve human proof of concept in two years and expand its therapeutic possibilities in gene editing.
Product-Related Announcements
Editas Medicine Updates RUBY Trial with Promising Results
Positive
Dec 10, 2024
Editas Medicine has updated the clinical data from its RUBY trial, showcasing promising results for its gene-edited cell medicine, reni-cel, in treating severe sickle cell disease. The trial demonstrated that reni-cel was well-tolerated and effectively increased hemoglobin levels, with most patients free from vaso-occlusive events. This highlights the potential of reni-cel as a transformative treatment option, offering hope for sustained improvements in patients’ quality of life.
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.