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Editas (EDIT) Q1 Earnings & Revenues Lag Estimates, Stock Down
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Editas Medicine, Inc. (EDIT - Free Report) incurred a loss of 76 cents per share in the first quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 63 cents. The company had reported a loss of 71 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 $1.1 million in the first quarter, down from $9.8 million reported in the year-ago quarter. The reported figure missed the Zacks Consensus Estimate of $12 million. The year-over-year decline in revenues can be attributed to the one-time sale of EDIT’s wholly-owned oncology assets and related licenses in January 2023.
Shares of Editas were down 11.4% on May 8 following the announcement of the results.
Quarter in Detail
In the first quarter of 2024, R&D expenses increased 29.1% to $48.8 million compared with $37.8 million reported in the year-ago period. The uptick in R&D expenses can be attributed to sublicense payments and license payments and higher clinical and manufacturing costs.
General and administrative expenses were $19.3 million in the reported quarter, down 16.1% year over year. The decrease was due to one-time professional service expenses related to strategic initiatives and business development activities made in 2023.
Editas had cash, cash equivalents and investments worth $376.8 million as of Mar 31, 2024, compared with $427.1 million as of Dec 31, 2023. The company expects its existing cash, cash equivalents and marketable securities, together with the near-term annual license fees and the contingent upfront payment from Vertex Pharmaceuticals (VRTX - Free Report) , to fund operating expenses and capital expenditure in 2026.
In December 2023, Vertex in-licensed rights to Editas’ Cas9 gene editing tool to develop its newly approved sickle cell disease (SCD) gene therapy, Casgevy.
Shares of Editas have plunged 50.3% year to date compared with the industry’s decline of 5.9%.
Image Source: Zacks Investment Research
Pipeline & Other Updates
Along with the earnings release, EDIT stated that earlier this week oral arguments were held before the United States Court of Appeals for the Federal Circuit regarding an appeal of the Patent Trial and Appeal Board’s (PTAB’s) previous decision. The said decision favored Broad Institute (Broad) in the U.S. patent interference involving certain specific patents for CRISPR/Cas9 editing in human cells between the University of California, the University of Vienna, and Emmanuelle Charpentier (collectively, CVC) and Broad.
The court is likely to give its decision in the second half of 2024.
On the first-quarter conference call, management stated that an appellate court decision in Broad's favor would reaffirm EDIT’s position as the exclusive licensor of the patents covering Cas9 use in human medicines in the United States.
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 (renizgamglogene autogedtemcel, previously EDIT-301), in the phase I/II/III RUBY study for treating SCD.
The company has completed enrollment and continues to dose SCD patients in the adult cohort of the RUBY study. The company has enrolled multiple patients in the adolescent cohort of the RUBY study. The company remains on track to report substantive data from the RUBY study in mid-2024 and further data by the end of 2024.
The company is also evaluating reni-cel for the treatment of transfusion-dependent beta thalassemia (TDT). Editas continues to enroll and dose patients in the EdiTHAL study for TDT. The company is also on track to report additional clinical data from the EdiTHAL study in mid-2024 and further data by 2024-end.
Editas Medicine, Inc. Price, Consensus and EPS Surprise
In the past 60 days, estimates for Ligand’s 2024 earnings per share have improved from $4.42 to $4.56. Year to date, shares of LGND have risen 12.5%.
Earnings of LGND beat estimates in each of the trailing four quarters, the average surprise being 56.02%.
In the past 60 days, estimates for Entera Bio’s 2024 loss per share have narrowed from 75 cents to 25 cents. Year to date, shares of ENTX have surged 308.3%.
ENTX’s earnings beat estimates in three of the trailing four quarters and missed the same once, the average surprise being 10.66%.
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Editas (EDIT) Q1 Earnings & Revenues Lag Estimates, Stock Down
Editas Medicine, Inc. (EDIT - Free Report) incurred a loss of 76 cents per share in the first quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 63 cents. The company had reported a loss of 71 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 $1.1 million in the first quarter, down from $9.8 million reported in the year-ago quarter. The reported figure missed the Zacks Consensus Estimate of $12 million. The year-over-year decline in revenues can be attributed to the one-time sale of EDIT’s wholly-owned oncology assets and related licenses in January 2023.
Shares of Editas were down 11.4% on May 8 following the announcement of the results.
Quarter in Detail
In the first quarter of 2024, R&D expenses increased 29.1% to $48.8 million compared with $37.8 million reported in the year-ago period. The uptick in R&D expenses can be attributed to sublicense payments and license payments and higher clinical and manufacturing costs.
General and administrative expenses were $19.3 million in the reported quarter, down 16.1% year over year. The decrease was due to one-time professional service expenses related to strategic initiatives and business development activities made in 2023.
Editas had cash, cash equivalents and investments worth $376.8 million as of Mar 31, 2024, compared with $427.1 million as of Dec 31, 2023. The company expects its existing cash, cash equivalents and marketable securities, together with the near-term annual license fees and the contingent upfront payment from Vertex Pharmaceuticals (VRTX - Free Report) , to fund operating expenses and capital expenditure in 2026.
In December 2023, Vertex in-licensed rights to Editas’ Cas9 gene editing tool to develop its newly approved sickle cell disease (SCD) gene therapy, Casgevy.
Shares of Editas have plunged 50.3% year to date compared with the industry’s decline of 5.9%.
Image Source: Zacks Investment Research
Pipeline & Other Updates
Along with the earnings release, EDIT stated that earlier this week oral arguments were held before the United States Court of Appeals for the Federal Circuit regarding an appeal of the Patent Trial and Appeal Board’s (PTAB’s) previous decision. The said decision favored Broad Institute (Broad) in the U.S. patent interference involving certain specific patents for CRISPR/Cas9 editing in human cells between the University of California, the University of Vienna, and Emmanuelle Charpentier (collectively, CVC) and Broad.
The court is likely to give its decision in the second half of 2024.
On the first-quarter conference call, management stated that an appellate court decision in Broad's favor would reaffirm EDIT’s position as the exclusive licensor of the patents covering Cas9 use in human medicines in the United States.
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 (renizgamglogene autogedtemcel, previously EDIT-301), in the phase I/II/III RUBY study for treating SCD.
The company has completed enrollment and continues to dose SCD patients in the adult cohort of the RUBY study. The company has enrolled multiple patients in the adolescent cohort of the RUBY study. The company remains on track to report substantive data from the RUBY study in mid-2024 and further data by the end of 2024.
The company is also evaluating reni-cel for the treatment of transfusion-dependent beta thalassemia (TDT). Editas continues to enroll and dose patients in the EdiTHAL study for TDT. The company is also on track to report additional clinical data from the EdiTHAL study in mid-2024 and further data by 2024-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 has a Zacks Rank #3 (Hold).
Some top-ranked stocks in the healthcare sector are Ligand Pharmaceuticals Incorporated (LGND - Free Report) and Entera Bio Ltd. (ENTX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Ligand’s 2024 earnings per share have improved from $4.42 to $4.56. Year to date, shares of LGND have risen 12.5%.
Earnings of LGND beat estimates in each of the trailing four quarters, the average surprise being 56.02%.
In the past 60 days, estimates for Entera Bio’s 2024 loss per share have narrowed from 75 cents to 25 cents. Year to date, shares of ENTX have surged 308.3%.
ENTX’s earnings beat estimates in three of the trailing four quarters and missed the same once, the average surprise being 10.66%.