Yahoo Finance Editas (EDIT) Dips on Portfolio Reprioritization, To Cut Jobs
Editas Medicine, Inc. EDIT has announced a corporate update, including the reprioritization of its current portfolio of pipeline candidates, and research and development realignment. The company will focus on the development of its pipeline candidates in hemoglobinopathies and in vivo discovery.
As part of the reprioritization, Editas is looking to reduce its current headcount by 20%. The changes in the clinical development programs, and the restructuring and reprioritization efforts are expected to bring a reduction in the company’s operating expenses and extend the cash runway into 2025.
Shares of Editas lost 8.7% on Monday, following the announcement of the news. The stock has plunged 68.1% in the past year compared with the industry’s decline of 18.7%.
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As part of the portfolio reprioritization, Editas will shift all its resources toward EDIT-301, which is now the company’s lead clinical program. The candidate is being developed for the treatment of severe sickle cell disease and transfusion-dependent beta thalassemia.
EDIT has decided to discontinue all its investments in its previously lead pipeline candidate, EDIT-101, which is developed for treating Leber congenital amaurosis type 10 (LCA10), a rare genetic illness that causes blindness.
The company also decided to discontinue its investments in other pipeline candidates, EDIT-103 for rhodopsin-associated autosomal dominant retinitis pigmentosa, as well as EDIT-202 for solid tumors.
We remind investors that in November 2022, EDIT announced data from the phase I/II BRILLIANCE study evaluating EDIT-101 for treating blindness due to LCA10. The study included safety and efficacy data from all 14 patients (12 adults and two pediatric patients) who were being treated for LCA10.
Data from the study showed that three of 14 subjects who were treated met a responder threshold, having experienced clinically meaningful improvements in best-corrected visual acuity.
Overall, the study achieved proof of concept and identified a responder population. However, two of the three responders were homozygous for IVS26 mutation, as concluded after an examination of baseline characteristics of the treatment responder patients. According to Editas, LCA10 patients homozygous for CEP290 IVS26 mutation is a small patient population of 300 in the United States.
Owing to this small patient population, which is expected to respond to the therapy, Editas decided to pause enrollment in the BRILLIANCE study. Shares of the company tanked significantly on the news.
In the absence of an approved product in its portfolio, pipeline development remains in key focus for Editas.
Zacks Rank & Stocks to Consider
Editas currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Syndax Pharmaceuticals, Inc. SNDX, Celularity Inc. CELU and Aligos Therapeutics, Inc. ALGS, all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Loss per share estimates for Syndax Pharmaceuticals have narrowed 7.2% for 2023 in the past 60 days.
Earnings of Syndax Pharmaceuticals surpassed estimates in three of the trailing four quarters and met the same on the other occasion. SNDX witnessed an earnings surprise of 95.39%, on average.
Loss per share estimates for Celularity have narrowed 17.3% for 2023 in the past 60 days.
Earnings of Celularity surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. CELU witnessed an earnings surprise of 51.01%, on average.
Loss per share estimates for Aligos Therapeutics have narrowed 5.5% for 2023 in the past 60 days.
Earnings of Aligos Therapeutics surpassed estimates in two of the trailing four quarters and missed on the remaining two occasions. ALGS witnessed an earnings surprise of 4.00%, on average.
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