Editas Medicine Inc Downgraded by Truist and Stifel

Truist and Stifel have downgraded Editas Medicine Inc (NASDAQ:EDIT) from "buy" to "hold." Truist removed its price target, citing a lack of near-term catalysts, while Stifel lowered it from $11 to $3.

On Friday, shares of Editas, a gene-editing company, fell 23% to $1.45.

Editas announced a strategic shift, discontinuing the development of reni-cel and reducing its workforce by 65%. The company intends to focus solely on in vivo therapeutic development, with clinical proof of concept expected to take at least two years.

Although Editas presented preclinical data backing its in vivo approach for hematopoietic stem cells, Truist raised concerns about competitive pressures and uncertainties surrounding the program. Truist stated that it would remain on the sidelines due to limited value-creating opportunities in the next 12-18 months.

Stifel's analyst expressed disappointment over Editas' decision to halt development after failing to secure a commercial partner, indicating that this would prompt a reevaluation of the investment thesis for the stock.