Intellia Therapeutics Surpasses Q3 Earnings Expectations and Announces Progress in Gene-Editing Pipeline

Intellia Therapeutics, Inc. NTLA, a pioneering genome editing company, recently disclosed its financial results for the third quarter of 2023, surpassing analysts' loss estimates but falling short on revenue expectations. The company announced a narrower loss of $1.38 per share compared to the anticipated $1.52, reflecting a slight improvement from the $1.49 per share loss reported in the same quarter of the previous year.

Financial Highlights and Stock Performance

Revenues for the period amounted to $12 million, all from collaboration, but did not meet projections, showing a slight decrease from the prior year's $13.3 million. However, NTLA's research and development costs saw an uptick to $113.7 million, fueled by furthering lead programs and expanding the workforce. The company also saw a significant 32.8% increase in general and administrative expenses, reaching $29.4 million, primarily due to elevated stock-based compensation expenses.

The financial update left its mark on Intellia's stock, which experienced a decline of 12.3% after the release of the mixed earnings results. Comparing year-to-date performance, NTLA has witnessed a 28.5% drop, which contrasts against the broader industry's 21.8% decline.

Pipeline Developments

NTLA is at the forefront of developing curative interventions using CRISPR/Cas9 technology and provided substantial updates on its gene-editing pipeline. One of its notable candidates, NTLA-2001, is undergoing evaluation for the treatment of transthyretin (ATTR) amyloidosis under a collaboration with Regeneron Pharmaceuticals REGN, with REGN sharing in the developmental cost and commercial profits.

The NTLA-2001 is making strides with a planned pivotal phase III MAGNITUDE study, having already received FDA investigational new drug clearance. The study will focus on cardiovascular outcomes in patients with ATTR amyloidosis with cardiomyopathy, with dosing expected to start in early 2024.

Beyond ATTR amyloidosis, Intellia is also progressing with its NTLA-2002 candidate, aimed at treating hereditary angioedema (HAE), with full enrollment for an ongoing phase II study anticipated by the end of 2023. Plans are in place to embark on a pivotal phase III study, pending regulatory consultation.

REGN's decision to extend its collaboration with NTLA for two more years, until April 2026, underscores the potential seen in these gene-editing endeavors.

Broader Investment Landscape

While NTLA holds a Zacks Rank #3 (Hold), investors should note other high-ranking stocks within the biopharmaceutical sector. Apellis Pharmaceuticals APLS, specializing in treatments for autoimmune and inflammatory diseases, and Anixa Biosciences ANIX, focused on oncology and infectious diseases, have better prospects with a current Zacks Rank #2 (Buy).

APLS's 2023 loss estimates have widened, while its 2024 projections improved. The stock itself has declined by 10.3% year to date. In contrast, ANIX, which has maintained its loss per share estimates, saw its stock decrease by 32% over the same period. Both companies, however, have their unique investment propositions and have demonstrated a mixed track record in earnings surprises over the past quarters.

Intellia, Earnings, Therapeutics, Biopharmaceutical, CRISPR, Gene-Editing, Pipeline, Research, Regeneron, Apellis, Anixa