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Editas (EDIT) Q1 Earnings Miss Estimates, Revenues Beat

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Editas Medicine, Inc. EDIT incurred a loss of 86 cents per share in the first quarter of 2021, which was wider than both the Zacks Consensus Estimate of a loss of 76 cents per share and the year-ago quarter’s loss of 69 cents.

Collaboration, and other research and development revenues comprising the company’s top line came in at $6.5 million in the reported quarter, up 14% year over year. The top line also beat the Zacks Consensus Estimate of $6.3 million.

Per the company, majority of the revenues in the reported quarter were recognized under the Company’s strategic alliance with Bristol Myers Squibb BMY. Please note that, Editas, along with Bristol Myers Squibb, is advancing the development of alpha-beta T cell medicines for the treatment of solid and liquid tumors.

In the first quarter, research and development expenses were $41.9 million, up 21.1% from the year-ago figure due to increased expenses related to clinical pipeline development. General and administrative expenses increased 20.2% to $21.4 million owing to higher employee-related expenses.

Shares of Editas were up in pre-market trading following the announcement of the news. However, the stock has plunged 50.6% in the year so far, compared with the industry’s decrease of 6%.

price chart for EDIT
price chart for EDIT

Notably, Editas appointed James C. Mullen as the company’s new president and chief executive officer, with effect from Feb 15, 2021.

Pipeline & Other Updates

Editas has no approved product in its portfolio at the moment. Therefore, its 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. Editas has initiated dosing in the adult mid-dose cohort of the BRILLIANCE study which is evaluating EDIT-101 for LCA10. Initial data from the same is expected by 2021-end.

Meanwhile, In January 2021, the FDA cleared the initiation of the safety phase of Editas’ clinical study on another pipeline candidate, EDIT-301, for treating sickle cell disease (“SCD”). The company has commenced the phase I/II RUBY study to assess the safety and efficacy of EDIT-301 for SCD. Editas plans to dose the first patient in the RUBY study by the end of the ongoing year.

Also, Editas plans to submit an investigational new drug filing to the FDA for using EDIT-301 in the treatment of beta-thalassemia by 2021-end.

Editas Medicine, Inc. Price, Consensus and EPS Surprise

Editas Medicine, Inc. Price, Consensus and EPS Surprise
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 ASLAN Pharmaceuticals Limited ASLN and Nabriva Therapeutics AG NBRV, 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.

ASLAN Pharmaceuticals’ loss per share estimates have narrowed 26.3% for 2021 and 43.9% for 2022 over the past 60 days. The stock has surged 58.4% year to date.

Nabriva Therapeutics’ loss per share estimates have narrowed by 40.9% for 2021 and 45.3% for 2022 over the past 60 days.

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