TLDR
- Intellia Therapeutics stock crashed 46.3% to $13.74 per share after the company paused dosing in its MAGNITUDE trials
- The trials for nexiguran ziclumeran were halted after a patient developed severe liver enzyme and bilirubin elevations meeting Hy’s law criteria
- Chardan Capital lowered its price target from $60 to $48 while maintaining a Buy rating
- The incident is expected to delay the program by approximately one quarter
- The safety concerns may reduce confidence in the treatment compared to other ATTR therapies until mitigation measures are established
Intellia Therapeutics stock fell 46.3% on October 27, dropping $11.86 to close at $13.74 per share. The Cambridge-based gene editing company announced it was pausing its MAGNITUDE clinical trials.
Intellia Therapeutics, Inc., NTLA
The company halted both dosing and screening for nexiguran ziclumeran, its experimental ATTR amyloidosis treatment. The decision came after a patient in the trial developed severe complications.
The patient experienced elevated liver enzymes and bilirubin levels that met Hy’s law criteria. Hy’s law is a regulatory benchmark that identifies serious drug-induced liver injury with high mortality risk.
Intellia has launched a review of the incident. The company is working to understand what caused the complications and how to prevent similar events.
The pause affects the company’s lead in vivo CRISPR therapy program. Nexiguran ziclumeran uses the CRISPR/Cas9 gene editing system to target disease-causing proteins in the liver.
Trial Delay and Analyst Response
Chardan Capital responded to the news by lowering its price target on the stock. The firm cut its target from $60 to $48 per share.
Despite the reduction, Chardan maintained a Buy rating on Intellia. The firm’s average target price suggests potential upside from current levels.
Analysts expect the safety incident to delay the program by roughly one quarter. This timeline could shift depending on what the investigation reveals.
The delay pushes back Intellia’s development timeline for the treatment. ATTR amyloidosis is a rare disease caused by misfolded transthyretin protein deposits in organs and tissues.
Safety Profile Concerns
The incident raises questions about nexiguran ziclumeran’s safety compared to competing therapies. Other ATTR treatments are already on the market or in development.
Until Intellia establishes clear mitigation measures, confidence in the therapy may remain dampened. The company needs to demonstrate it can manage these safety risks.
Intellia’s stock had been trading at $25.60 before the announcement. The company’s market cap dropped to approximately $1.47 billion.
The gene editing company has collaborated with Regeneron and Novartis on various programs. These partnerships continue despite the setback in the MAGNITUDE trials.
Intellia’s financial position shows the company had $52.86 million in trailing twelve-month revenue. The company maintains a current ratio of 5.19, indicating strong liquidity.
Institutional investors hold 93.45% of the company’s shares. Insider ownership stands at 3.25%.
The stock has a beta of 2.77, reflecting high volatility relative to the broader market. This volatility was on full display with today’s sharp decline.
The company’s Altman Z-Score of 4.08 suggests it maintains adequate financial health despite operating losses. Intellia reported an operating margin of -968.69%.
The RSI-14 technical indicator stands at 63.4, while the 50-day moving average sits at $16.81. Today’s closing price fell below this moving average.
The safety review is currently underway, with results expected to inform next steps for the MAGNITUDE trials. Intellia has not provided a specific timeline for when dosing might resume.
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