In the latest quarter, Editas Medicine, a clinical-stage genome-editing company, reported a narrower loss and revenue growth, leading to a 20% surge in its shares to $8.44. This increase marks the largest percentage jump for the stock in over two years.
Narrowed Losses and Revenue Growth
For the third quarter, Editas Medicine reduced its loss to $45 million, or 55 cents a share, compared to $55.7 million, or 81 cents a share, in the same period last year. This positive result exceeded analysts' expectations, who had predicted a loss of 59 cents a share.
Collaboration and other research and development revenues also showed substantial growth, climbing to $5.3 million from $42,000. This outcome surpassed FactSet analysts' projection of $3.7 million.
Despite the positive performance in the quarter, Editas Medicine reported a decline in its cash, cash equivalents, and marketable securities. As of June 30, the company's funds decreased to $446.4 million compared to $480 million. However, Editas Medicine expects this stockpile to support its operating expenses and capital expenditures until the third quarter of 2025.
Advancements in EDIT-301
Chief Executive Gilmore O'Neill highlighted the significant progress made by Editas Medicine in advancing their EDIT-301 program during the third quarter. The company continued to enroll and dose patients, bringing them closer to a BLA (Biologics License Application) filing.