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Editas (EDIT) Q3 Earnings Beat Estimates, Revenues Fall Y/Y
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Editas Medicine, Inc. (EDIT - Free Report) incurred a loss of 57 cents per share in the third quarter of 2021, which was narrower than the Zacks Consensus Estimate of a loss of 86 cents per share. The company reported earnings of 12 cents in the year-ago quarter.
Collaboration and other research and development revenues, comprising the company’s top line, came in at $6.2 million in the reported quarter compared with $62.8 million in the year-ago quarter. The top line marginally beat the Zacks Consensus Estimate of $6 million.
Per the company, the significant year-over-year decrease in revenues was due to recognition of previously deferred revenues in the third quarter of 2020 owing the termination of the strategic alliance with Allergan [now part of AbbVie (ABBV - Free Report) ]. No such revenues were recorded in third-quarter 2021.
In the third quarter of 2021, research and development expenses were $29.2 million, down 13.8% from the year-ago figure. The decrease was due to a one-time in-process expense of $5 million for re-acquiring the rights to EDIT-101 from Allergan. General and administrative expenses decreased 18.6% to $16.2 million owing to lower professional service expenses.
Shares of Editas were up 8.2% on Monday following the announcement of the earnings results. However, the stock has plunged 42.2% so far this year compared with the industry’s decrease of 12.5%.
Image Source: Zacks Investment Research
Pipeline & Other Updates
Editas has no approved product in its portfolio at the moment. Therefore, pipeline development remains in key focus for the company.
The company is developing its lead pipeline candidate, EDIT-101, which employs CRISPR gene editing, to treat Leber congenital amaurosis type 10 (LCA10) — a rare genetic illness that causes blindness. In September 2021, Editas announced initial data from the phase I/II BRILLIANCE study evaluating EDIT-101 for the treatment of blindness due to LCA10.
Results from the study were based on safety and efficacy data from the first two cohorts – the adult low-dose cohort and the adult mid-dose cohort.
The company plans to complete dosing in the adult high-dose and pediatric mid-dose cohorts in the first half of 2022.
This apart, Editas is evaluating the safety and efficacy of another pipeline candidate, EDIT-301, for treating sickle cell disease. The company is currently enrolling participants in the phase I/II RUBY study and expects to begin dosing in the first half of 2022.
Also, Editas plans to submit an investigational new drug application to the FDA to begin clinical studies on EDIT-301 for the treatment of transfusion-dependent beta-thalassemia by 2021-end.
Editas Medicine, Inc. Price, Consensus and EPS Surprise
Image: Bigstock
Editas (EDIT) Q3 Earnings Beat Estimates, Revenues Fall Y/Y
Editas Medicine, Inc. (EDIT - Free Report) incurred a loss of 57 cents per share in the third quarter of 2021, which was narrower than the Zacks Consensus Estimate of a loss of 86 cents per share. The company reported earnings of 12 cents in the year-ago quarter.
Collaboration and other research and development revenues, comprising the company’s top line, came in at $6.2 million in the reported quarter compared with $62.8 million in the year-ago quarter. The top line marginally beat the Zacks Consensus Estimate of $6 million.
Per the company, the significant year-over-year decrease in revenues was due to recognition of previously deferred revenues in the third quarter of 2020 owing the termination of the strategic alliance with Allergan [now part of AbbVie (ABBV - Free Report) ]. No such revenues were recorded in third-quarter 2021.
In the third quarter of 2021, research and development expenses were $29.2 million, down 13.8% from the year-ago figure. The decrease was due to a one-time in-process expense of $5 million for re-acquiring the rights to EDIT-101 from Allergan. General and administrative expenses decreased 18.6% to $16.2 million owing to lower professional service expenses.
Shares of Editas were up 8.2% on Monday following the announcement of the earnings results. However, the stock has plunged 42.2% so far this year compared with the industry’s decrease of 12.5%.
Pipeline & Other Updates
Editas has no approved product in its portfolio at the moment. Therefore, pipeline development remains in key focus for the company.
The company is developing its lead pipeline candidate, EDIT-101, which employs CRISPR gene editing, to treat Leber congenital amaurosis type 10 (LCA10) — a rare genetic illness that causes blindness. In September 2021, Editas announced initial data from the phase I/II BRILLIANCE study evaluating EDIT-101 for the treatment of blindness due to LCA10.
Results from the study were based on safety and efficacy data from the first two cohorts – the adult low-dose cohort and the adult mid-dose cohort.
The company plans to complete dosing in the adult high-dose and pediatric mid-dose cohorts in the first half of 2022.
This apart, Editas is evaluating the safety and efficacy of another pipeline candidate, EDIT-301, for treating sickle cell disease. The company is currently enrolling participants in the phase I/II RUBY study and expects to begin dosing in the first half of 2022.
Also, Editas plans to submit an investigational new drug application to the FDA to begin clinical studies on EDIT-301 for the treatment of transfusion-dependent beta-thalassemia by 2021-end.
Editas Medicine, Inc. Price, Consensus and EPS Surprise
Editas Medicine, Inc. price-consensus-eps-surprise-chart | Editas Medicine, Inc. Quote
Zacks Rank & Stocks to Consider
Editas currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the biotech sector include Amicus Therapeutics, Inc. (FOLD - Free Report) and Agenus Inc. (AGEN - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amicus Therapeutics’ loss per share estimates have narrowed 1.3% for 2021 and 37.5% for 2022 over the past 60 days.
Agenus’ loss per share estimates have narrowed 17.8% for 2021 and 20.6% for 2022 over the past 60 days. The stock has rallied 31.4% year to date.