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Intellia shares target cut, maintains outperform on Q3 financials

EditorNatashya Angelica
Published 12/11/2024, 12:40 am
NTLA
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Monday (NASDAQ:MNDY) - Oppenheimer has adjusted its price target on shares of Intellia Therapeutics (NASDAQ: NASDAQ:NTLA), bringing it down to $60 from the previous $70, while retaining an Outperform rating on the stock.

The decision came after Intellia reported its third-quarter financials for 2024, which included $123.4 million in research and development expenses and $30.5 million in general and administrative expenses. The company also reported a cash reserve sufficient to fund operations into late 2026.

Intellia's recent achievements have been highlighted by Oppenheimer, noting several key developments. These include positive results from a Phase 2 study of NTLA-2002 in Hereditary Angioedema (HAE) presented at the American College of Allergy, Asthma & Immunology (ACAAI) meeting.

Moreover, the enrollment for the Phase 3 MAGNITUDE study of NTLA-2001, aimed at treating ATTR amyloidosis with cardiomyopathy, is progressing faster than anticipated.

Further advancements include the anticipated initiation of the Phase 3 MAGNITUDE-2 study of NTLA-2001 for ATTR amyloidosis with polyneuropathy by the end of the year. The company also plans to share new data from the ongoing Phase 1 study of NTLA-2001 at the American Heart Association (AHA) meeting.

Lastly, the first patient in the Phase 1/2 study of NTLA-3001 for Alpha-1 Antitrypsin Deficiency (AATD) is expected to receive dosing by year-end.

The revised price target reflects an updated model from Oppenheimer, which supports a continued positive outlook for Intellia despite the reduction. The firm's analyst maintains confidence in the company's pipeline and its potential to deliver on its strategic goals in the near future.

In other recent news, Intellia Therapeutics has reported significant updates on its clinical programs and financial status during its Third Quarter 2024 Earnings Call. The company's cash reserves have decreased to $944.7 million, primarily due to operational expenses, but are expected to fund operations until late 2026.

Notably, positive results were reported for NTLA-2002, a CRISPR-based treatment for Hereditary Angioedema, indicating potential for a functional cure with a single infusion.

The FDA has cleared the IND application for NEX-Z, a treatment for hereditary ATTR Amyloidosis with Polyneuropathy, with a Phase III study planned. The company also noted an increase in R&D expenses to $123.4 million, reflecting progress in lead programs. A Phase I/II trial of NTLA-3001 for alpha-1 antitrypsin deficiency is expected to begin dosing by the end of 2024.

These recent developments highlight Intellia's commitment to advancing its gene editing therapies and delivering new treatments for patients with genetic diseases.

InvestingPro Insights

Recent InvestingPro data provides additional context to Oppenheimer's analysis of Intellia Therapeutics (NASDAQ: NTLA). The company's market capitalization stands at $1.7 billion, reflecting investor sentiment amidst its ongoing clinical developments. Despite the promising pipeline highlighted in the article, Intellia's financials show some challenges. The company's revenue for the last twelve months as of Q3 2024 was $43.09 million, with a concerning revenue growth decline of -16.77% over the same period.

InvestingPro Tips reveal that Intellia "holds more cash than debt on its balance sheet," which aligns with the article's mention of sufficient cash reserves to fund operations into late 2026. This financial cushion is crucial for biotechnology companies like Intellia that are heavily invested in research and development. Another relevant InvestingPro Tip notes that "12 analysts have revised their earnings upwards for the upcoming period," suggesting some optimism about the company's near-term prospects despite Oppenheimer's price target reduction.

It's worth noting that InvestingPro offers 7 additional tips for Intellia Therapeutics, providing investors with a more comprehensive analysis of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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