Intellia Therapeutics Stock Drops 20% After Phase 2 Results

Investing.com — Shares of Intellia Therapeutics (NASDAQ:NTLA), Inc. plummeted approximately 20% today following the announcement of results from the Phase 2 study of its experimental gene-editing therapy, NTLA-2002, aimed at treating hereditary angioedema (HAE).

Despite indicating a reduction in HAE attacks, analysts voiced concerns regarding the therapy's competitive position and inherent risks.

Intellia's press release revealed that the Phase 2 trial, which included 27 participants, showed a 75% to 81% reduction in monthly attack rates for patients treated with NTLA-2002. Eight out of eleven patients in the higher 50 mg dose group achieved complete response, remaining attack-free for up to eight months post-infusion.

The therapy was reported to be well-tolerated, with no serious adverse events recorded, though the most common side effects included headache, fatigue, and nasopharyngitis.

In reaction to the results, Baird analysts downgraded their price target for Intellia's stock from $24 to $18, maintaining a Neutral rating. They noted that while the therapy shows clear advantages, the effect of attack reduction might not suffice to counterbalance concerns surrounding the risks of in vivo gene editing, especially considering the competitive market.

The firm stated, “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.” They added that they anticipate shares will encounter increasing challenges related to dilution.