On Friday, BofA Securities adjusted its outlook on Intellia Therapeutics (NASDAQ:NTLA) stock, reducing the price target to $45 from the previous $50 while maintaining a Buy rating.
The decision followed Intellia's announcement of a strategic shift that includes a significant reduction in workforce and the discontinuation of the development of its AATD program, among other research-stage initiatives.
Intellia Therapeutics, which trades on NASDAQ under the ticker NTLA, has decided to reduce its workforce by 27% throughout 2025. This move is part of a broader reorganization aimed at prioritizing the company's late-stage programs. Despite the discontinuation of the AATD program reducing the overall value of the pipeline, analysts at BofA Securities believe that the focus on late-stage programs is a logical step, particularly as enrollment for these programs is advancing swiftly.
The reorganization is expected to incur an $8 million cost. However, BofA Securities views the extension of Intellia's cash runway into the first half of 2027 as a positive outcome. At the end of the fourth quarter of 2024, Intellia reported having $862 million in cash reserves. The extended runway is anticipated to support the expansion of commercialization capabilities and the establishment of leadership teams, which are considered crucial for the potential launch of two products in 2027.
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