Raymond James downgraded Editas Medicine (EDIT, Financials) from outperform to market perform, citing extended development timelines and uncertainties surrounding its in vivo gene-editing program.
With the next program update planned in the first quarter of 2025, the investment company highlighted Editas has now turned its attention to in vivo editing for treating sickle cell illness and beta thalassemia. Although this technique might provide a safety benefit by maybe removing the requirement for myeloablative conditioning, Raymond James voiced doubts regarding its effectiveness relative to the approved ex vivo technique.
The company also underlined that Editas is trying to out-license its reni-cel treatment, a procedure it described as difficult given the low commercialization of rival treatments. Particularly, Vertex Pharmaceuticals (VRTX, Financials) and CRISpen Therapeutics (CRSP, Financials) have created a competing treatment called Casgevy with revised sales projections shortly.
New results from a Phase 1/2/3 study of reni-cel is slated to be presented at the American Society of Hematology meeting from December 7 to 10, Raymond James also said.
As Editas negotiates strategy changes and competitive pressures in the biotechnology industry, this downgrading reflects more general questions over the feasibility and market readiness of the company's gene-editing technologies.
