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Editas Medicine Inc (EDIT)
NASDAQ:EDIT

Editas Medicine (EDIT) AI Stock Analysis

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ED

Editas Medicine

(NASDAQ:EDIT)

Rating:60Neutral
Price Target:
$2.00
▼(-11.11%Downside)
Editas Medicine's promising advancements in gene editing drive a positive outlook, contributing significantly to its score. However, financial challenges, including lack of revenue and negative cash flow, weigh heavily on the overall assessment. The technical indicators suggest strong market interest, while traditional valuation metrics remain a concern.
Positive Factors
Financial Position
Editas ended 1Q25 with $221M in cash and cash equivalents, expected to provide an operational runway into 2Q27.
Preclinical Data
Editas has shown highly promising preclinical data from their Sickle Cell Disease (SCD) and liver programs, positioning itself as a leader in in vivo editing.
Technology and Efficacy
Editas may achieve best-in-class efficacy in sickle cell disease and beta-thalassemia if successful in replicating reni-cel data.
Negative Factors
Clinical Data Timeline
The long road to initial clinical data remains a key holdup of the stock.
Financial Performance
Editas reported a net loss per share that was larger than the consensus expectations.
Legal Uncertainty
There is increasing uncertainty surrounding the Cas9 patent interference case as it has been remanded back to the PTAB for reconsideration.

Editas Medicine (EDIT) vs. SPDR S&P 500 ETF (SPY)

Editas Medicine Business Overview & Revenue Model

Company DescriptionEditas Medicine (EDIT) is a leading biotechnology company focused on developing transformative genomic medicines. The company specializes in the field of gene editing, primarily utilizing CRISPR technology, to develop treatments for a wide range of serious diseases. By applying its proprietary gene-editing platform, Editas aims to create innovative therapies that can potentially correct genetic defects at their source, offering new possibilities for patients with unmet medical needs.
How the Company Makes MoneyEditas Medicine generates revenue primarily through strategic partnerships, collaborations, and licensing agreements with other pharmaceutical and biotechnology companies. These partnerships often involve upfront payments, milestone payments, and royalties on sales of products developed using Editas' technology. Additionally, the company may receive government grants and research funding to support its R&D activities. Although Editas is still in the development stage and does not yet have commercial products, its revenue model is heavily reliant on advancing its drug candidates through clinical trials and securing regulatory approvals to eventually bring its therapies to market.

Editas Medicine Key Performance Indicators (KPIs)

Any
Any
Operating Expense Breakdown
Operating Expense Breakdown
Details core costs like R&D, marketing, and admin, offering insight into how efficiently the company runs and where it’s prioritizing investment, crucial for understanding Editas Medicine's focus on innovation and operational strategy.
Chart InsightsEditas Medicine's R&D expenses have shown volatility, with a significant drop in early 2025, possibly reflecting strategic cost management or project completion. General and Administrative expenses have gradually decreased since late 2023, indicating a focus on operational efficiency. These trends suggest a strategic shift towards optimizing resources, which could enhance financial stability and support future innovation efforts.
Data provided by:Main Street Data

Editas Medicine Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q2-2024)
|
% Change Since: 46.10%|
Next Earnings Date:Jul 30, 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.
Q2-2024 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview

Summary
Editas Medicine faces significant financial challenges typical of biotech firms in the R&D phase. Despite strong cash reserves, the lack of revenue growth and persistent losses indicate difficulties in transitioning to a commercially viable model. Continuous negative cash flow suggests an ongoing reliance on external funding.
Income Statement
20
Very Negative
Editas Medicine has shown a volatile revenue trajectory with a significant drop to zero revenue in 2024 from previous levels. The company has consistently reported negative net income, leading to negative profit margins. This indicates challenges in achieving profitability, common in the biotech industry, which often requires substantial R&D investments without immediate revenue.
Balance Sheet
40
Negative
The company's balance sheet exhibits moderate financial health with a significant cash reserve relative to its total assets. The debt-to-equity ratio is low, suggesting conservative use of debt. However, the continuous decline in stockholders' equity indicates erosion of shareholder value, which is a concern.
Cash Flow
30
Negative
Editas Medicine has consistently faced negative operating and free cash flows, reflecting operational struggles and high cash burn. Although there are instances of positive financing cash flows, this is likely due to capital raises rather than operational efficiency, posing a risk to long-term sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue35.84M32.31M78.12M19.71M25.54M90.73M
Gross Profit31.44M26.50M-99.53M13.38M20.49M-67.26M
EBITDA-246.99M-231.28M-163.12M-219.61M-188.09M-130.88M
Net Income-251.23M-237.09M-153.22M-204.35M-185.11M-109.41M
Balance Sheet
Total Assets263.65M341.59M499.15M514.32M677.48M572.60M
Cash, Cash Equivalents and Short-Term Investments220.96M269.91M323.11M437.37M619.91M511.77M
Total Debt31.13M35.03M36.54M43.95M26.38M26.14M
Total Liabilities201.23M207.31M150.06M153.64M123.84M179.02M
Stockholders Equity62.42M134.27M349.10M360.68M553.64M393.59M
Cash Flow
Free Cash Flow-215.28M-219.11M-136.90M-181.47M-171.78M-187.00M
Operating Cash Flow-208.21M-210.28M-132.18M-177.35M-163.80M-179.84M
Investing Cash Flow223.28M162.15M-3.73M114.07M-54.47M-140.52M
Financing Cash Flow54.40M56.03M118.04M1.28M282.11M224.12M

Editas Medicine Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.25
Price Trends
50DMA
1.68
Positive
100DMA
1.57
Positive
200DMA
2.05
Positive
Market Momentum
MACD
0.17
Negative
RSI
61.58
Neutral
STOCH
44.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDIT, the sentiment is Positive. The current price of 2.25 is above the 20-day moving average (MA) of 1.98, above the 50-day MA of 1.68, and above the 200-day MA of 2.05, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 61.58 is Neutral, neither overbought nor oversold. The STOCH value of 44.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDIT.

Editas Medicine Risk Analysis

Editas Medicine disclosed 70 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$185.84M-140.82%-48.37%-44.70%
51
Neutral
$7.36B0.28-61.07%2.37%17.46%1.71%
48
Neutral
$107.48M-58.55%825.97%38.32%
39
Underperform
$123.82M-26.10%30.76%
39
Underperform
$122.86M-75.60%-2.29%
39
Underperform
$106.59M-91.32%-100.00%-244.85%
33
Underperform
$127.09M-79.05%-0.42%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EDIT
Editas Medicine
2.25
-2.72
-54.73%
CLLS
Cellectis SA
1.47
-0.46
-23.83%
RAPT
RAPT Therapeutics
8.22
-16.42
-66.64%
NKTX
Nkarta
1.75
-4.38
-71.45%
NMRA
Neumora Therapeutics, Inc.
0.81
-7.94
-90.74%
CTNM
Contineum Therapeutics, Inc. Class A
4.53
-15.40
-77.27%

Editas Medicine Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Editas Medicine Unveils Promising Gene Editing Data
Positive
Jun 12, 2025

On June 12, 2025, Editas Medicine announced new in vivo data at the European Hematology Association 2025 Congress, demonstrating significant advancements in gene editing for sickle cell disease and beta thalassemia. The study showed that a single dose of their proprietary targeted lipid nanoparticle (tLNP) in non-human primates achieved a 58% mean on-target editing level in the HBG1/2 promoter region of hematopoietic stem cells, surpassing the therapeutic threshold. This development supports the potential of Editas’ approach to provide a novel treatment for these conditions, with favorable biodistribution and minimal liver targeting, enhancing the company’s position in the gene editing industry.

The most recent analyst rating on (EDIT) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Editas Medicine stock, see the EDIT Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Editas Medicine Stockholders Approve Key Amendments
Neutral
Jun 2, 2025

At the 2025 Annual Meeting of Stockholders held on May 29, Editas Medicine, Inc.’s stockholders approved significant amendments to the company’s 2015 Stock Incentive Plan, extending its term and eliminating the ‘evergreen’ provision, among other changes. Additionally, stockholders approved an increase in the number of authorized shares of the company’s capital stock, which could impact the company’s ability to raise capital and expand its operations.

The most recent analyst rating on (EDIT) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Editas Medicine stock, see the EDIT Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Editas Medicine Unveils Promising Gene Editing Data
Positive
May 14, 2025

On May 14, 2025, Editas Medicine announced new in vivo data showcasing the potential of their gene upregulation strategy in hematopoietic stem cells (HSCs) at the American Society of Gene and Cell Therapy Annual Meeting. The data demonstrated that a single dose of their proprietary targeted lipid nanoparticle (tLNP) achieved therapeutically relevant levels of HBG1/2 promoter editing in both humanized mice and non-human primates, exceeding the predicted therapeutic threshold. This approach, which targets HBG1/2 promoters to upregulate fetal hemoglobin, is in pre-clinical development for treating sickle cell disease and beta thalassemia, potentially positioning Editas Medicine as a leader in in vivo gene editing therapies.

The most recent analyst rating on (EDIT) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Editas Medicine stock, see the EDIT Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Editas Medicine Unveils In Vivo Gene Editing Data
Positive
May 13, 2025

On May 13, 2025, Editas Medicine announced in vivo proof of concept data for a liver target at the American Society of Gene and Cell Therapy Annual Meeting. The study demonstrated significant gene editing and protein upregulation in mice and monkeys, indicating potential for a first-in-class treatment for liver diseases. This advancement positions Editas as a leader in gene editing therapies, with plans to reveal more details about the target and development candidate later in the year.

The most recent analyst rating on (EDIT) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Editas Medicine stock, see the EDIT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 12, 2025