Gene editing stock NTLA is poised to rise
Gene-editing company $Intellia Therapeutics(NTLA)$ has just released some new data that shows the company has the ability to continue to lead the gene-editing field. While there is still much work to be done to confirm and profit from Intellia's new findings, none of its peers have been able to cross the bridge.
New proof-of-concept stuff?
Intellia's main goal is to develop gene editing therapies that can correct congenital genetic problems. The lead project NTLA-2001 aims to treat a rare disease called transthyroxin amyloidosis (ATTR) by knocking out the gene for a dysfunctional protein that causes heart failure and shortness of breath.
Management forecasts that the market for ATTR drugs will reach $11 billion a year by 2029, which represents significant growth potential for a biotech stock like Intellia that has yet to turn a profit.
The results of the trial appear to show that it is possible to safely re-administer the drug to patients who have already been treated with gene editing therapy, giving them a more complete remission of their disease than before. So far, none of Intellia's competitors has been able to provide the same evidence.
The gene-editing stock is riskier
Intellia has yet to commercialize any of its drugs. Intellia ended the fiscal first quarter with cash, equivalents and short-term investments totaling $953 million and tracking 12-month (TTM) operating expenses of $569.9 million, giving Intellia less than two years before it needs to raise more capital.
Until then, Intellia is unlikely to get one of its projects approved for sale. In addition, with the departure of the CFO on June 26, the company's cash management and fundraising activities may be affected in the short term.
Therefore, if you are a veteran biotech investor, it is worth investing in this company. But if you think biotech stocks are too risky, it's best to stay away, and even an operator on the cutting edge of science like Intellia can run the risk of getting it wrong.
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