Intellia Therapeutics (NASDAQ:) recently announced results from its Phase 2 study of NTLA-2002, an investigational gene-editing therapy for hereditary angioedema (HAE). While the data indicated a notable reduction in HAE attacks, the company's stock experienced a significant drop as analysts weighed the therapy's competitive position and the inherent risks associated with in vivo gene editing.
The Phase 2 trial involved 27 participants and demonstrated a 75% to 81% reduction in monthly attack rates for patients receiving NTLA-2002. Notably, eight out of eleven patients in the higher 50 mg dose group reported a complete response, remaining attack-free for up to eight months post-infusion. The therapy was reported to be well-tolerated, with the most frequent adverse events being headache, fatigue, and nasopharyngitis.
Analyst Concerns
Despite the promising results, analysts at Baird lowered their price target for Intellia's stock from $24 to $18, maintaining a Neutral rating. The firm acknowledged the clear benefits provided by the therapy but suggested that the reduction in attacks might not be compelling enough to overcome the perceived risks of in vivo gene editing, particularly in a competitive market landscape.
"While NTLA-2002 did provide patients with a clear benefit, we expect investors will view the ~75-80% reduction in HAE attacks as less than impressive in the context of the potential risks of in vivo gene editing and the competitive landscape in this indication," Baird analysts wrote.
Competitive Landscape and Future Outlook
The analysts also anticipate that Intellia's shares may face increasing headwinds related to dilution. The HAE treatment market includes several existing therapies, and the efficacy and safety profile of NTLA-2002 will need to be carefully evaluated against these alternatives to determine its potential for widespread adoption.
