Editas Medicine EDIT incurred a loss of 75 cents per share in the third quarter of 2024, narrower than the Zacks Consensus Estimate of a loss of 76 cents. The company had reported a loss of 55 cents per share in the year-ago quarter.

Collaboration and other research and development (R&D) revenues, which comprise the company’s top line, were $0.1 million in the reported quarter, down from $5.3 million reported in the year-ago quarter. The reported figure missed the Zacks Consensus Estimate of $7 million. The year-over-year decline in revenues can be attributed to an upfront payment received in the year-ago quarter for a non-exclusive license grant to Vor Bio.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

EDIT’s Q3 Results in Detail

In the third quarter of 2024, R&D expenses increased 18% to $47.6 million compared with $40.5 million reported in the year-ago period. The uptick in R&D expenses can be attributed to higher clinical and manufacturing costs related to the accelerated progression of Editas’ reni-cel program as well as costs attributable to in vivo research and discovery.

General and administrative expenses were $18.1 million in the reported quarter, up 21% year over year, due to increased employee-related expenses because of a higher headcount to support business operations for progressing the reni-cel program.

Editas had cash, cash equivalents and investments worth $265.1 million as of Sept. 30, 2024, down from $318.3 million as of June 30, 2024. The company expects its existing cash, cash equivalents and marketable securities, together with the upfront cash payment from DRI and the retained portions of the payments payable under the license agreement with Vertex Pharmaceuticals VRTX, to fund operating expenses and capital expenditure into the second quarter of 2026.

In late 2023, Vertex in-licensed rights to Editas’ Cas9 gene editing tool to develop its newly approved sickle cell disease (SCD) gene therapy, Casgevy. In October 2024, Editas announced the sale of certain future license fees and payments from its Cas9 license agreement with Vertex to a DRI Healthcare Trust subsidiary, receiving $57 million in upfront cash. The company expects to use the proceeds from this sale to help enable further pipeline development and related strategic priorities.

Shares of Editas have plunged 71.6% year to date compared with the industry’s decline of 3.9%.

Image Source: Zacks Investment Research

EDIT’s Key Pipeline & Corporate Updates

Editas has no approved products in its portfolio at the moment. Therefore, pipeline development remains the key focus of the company. The company is evaluating the safety and efficacy of its investigational gene-editing medicine, reni-cel, in phase I/II/III RUBY study for treating SCD.

EDIT has completed enrollment and continues to dose SCD patients in the adult cohort of the RUBY study. The company has also completed enrollment in the adolescent cohort of the RUBY study. Editas remains on track to report substantive data from the RUBY study in December 2024 at a medical conference. The company is also evaluating reni-cel for the treatment of transfusion-dependent beta thalassemia (TDT). Editas has completed enrollment in the adult cohort and continues to dose patients in the EdiTHAL study for TDT. The company is also on track to report additional clinical data from the EdiTHAL study by the end of 2024.

However, in late October, Editas announced seeking a global partner to advance the reni-cel program or potentially out-license rights to the treatment entirely amid a significant cash crunch. Editas firmly believes that this decision is in the best interests of its patients and shareholders, as a potential partnership agreement would allow for further development and ultimately commercialization of reni-cel with or by another party, enabling the company to reduce spending in 2025 substantially.

As part of its strategic reprioritization efforts, Editas is set to focus resources on in vivo (within the living organism) pipeline development.

As disclosed earlier, the company reported achieving in vivo preclinical proof of concept for the development of an SCD and beta thalassemia therapy. This was accomplished by editing the HBG1/2 promoter in HSPCs using a proprietary targeted lipid nanoparticle for effective delivery to extrahepatic (outside the liver) tissues in a humanized mouse model. Editas plans to provide further updates on its in vivo progress and pipeline development in the first quarter of 2025 and is focused on an in vivo approach to increase gene expression to counteract loss-of-function or harmful mutations.

Editas Medicine, Inc. Price and Consensus

Editas Medicine, Inc. price-consensus-chart | Editas Medicine, Inc. Quote

EDIT’s Zacks Rank & Stocks to Consider

Editas currently carries a Zacks Rank #3 (Hold).

Some better-ranked pharma stocks are Allogene Therapeutics ALLO and Novartis NVS, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Allogene Therapeutics’ loss estimates have remained constant at $1.41 per share for 2024 over the past 60 days, while that for 2025 has narrowed from $1.46 to $1.45 per share. ALLO’s shares have lost 6.5% year to date.

Allogene Therapeutics’ earnings beat estimates in three of the trailing four quarters and matched once, delivering an average surprise of 11.82%.

Novartis’ earnings estimates have risen from $7.48 to $7.56 per share for 2024 over the past 60 days, while that for 2025 has increased from $8.30 to $8.33. NVS’ shares have risen 9.5% year to date.

Novartis’ earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.22%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Novartis AG (NVS) : Free Stock Analysis Report

Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report

Editas Medicine, Inc. (EDIT) : Free Stock Analysis Report

Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research