Send me real-time posts from this site at my email

Why Editas Medicine Stock Is Tumbling This Week

What happened

Shares of Editas Medicine (NASDAQ: EDIT) were tumbling 13% lower this week as of the market close on Thursday, based on data from S&P Global Market Intelligence. The company presented at the virtual J. P. Morgan Healthcare Conference on Wednesday. However, Editas had a generally positive message about its plans for 2022.

So why are Editas Medicine's shares falling so much? Biotech stocks, in general, have experienced declines this week. The overall sell-off appears to be dragging Editas down in the wake.

There's also a possibility that investors are concerned that CRISPR base-editing therapies will steal the thunder from the CRISPR approach that Editas uses. Editas Medicine CEO James Mullen specifically mentioned base editing in his comments at the J. P. Morgan conference and seemed a bit defensive.

Image source: Getty Images.

So what

It's hard for any stock to swim against the tide when a larger decline is underway. For investors who like Editas' prospects, the pullback this week could present a good buying opportunity. However, the stock remains highly risky with its lead pipeline candidate only in early-stage testing.

What about the threat from base editing? Perhaps there is some reason to worry over the long run. However, it's important to note that one of the leaders in base editing, Beam Therapeutics, also saw its shares fall quite a bit this week. And that decline came despite Beam picking up a key collaboration with Pfizer.

Now what

There are plenty of potential catalysts ahead for Editas. The company expects to report more results from its early-stage study of EDIT-101 in treating Leber congenital amaurosis 10, a rare genetic eye disease, in the second half of 2022. It also plans to announce initial clinical data for EDIT-301 in treating sickle cell disease this year.

10 stocks we like better than Editas Medicine
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Editas Medicine wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of January 10, 2022

Keith Speights owns Pfizer. The Motley Fool owns and recommends Editas Medicine. The Motley Fool has a disclosure policy.


Source

Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue