On Friday, Stifel took a more cautious stance on Editas Medicine (NASDAQ:EDIT), downgrading the stock from Buy to Hold. The firm also significantly reduced the price target to $3.00 from the previous $11.00. This adjustment follows the company's decision to discontinue the development of its sickle cell disease treatment, reni-cel, after failing to secure a commercial partner.
The analyst from Stifel expressed disappointment in the termination of reni-cel's development, which had previously been seen as a potential source of revenue for Editas. Although the clinical profile of Editas' pipeline is evolving favorably, the decision to end reni-cel's development has led the analyst to reevaluate the investment potential of the company's stock.
Stifel had held a positive view on in vivo editing techniques compared to ex vivo methods. However, with reni-cel no longer in the picture and only a preclinical asset remaining to drive the company's valuation, the firm has decided to adopt a more neutral position on Editas Medicine.
Reflecting on past assessments, the analyst acknowledged that their initial optimism regarding the future of reni-cel and a swift recovery from the company's various setbacks may have been overly hopeful. The new stance indicates a wait-and-see approach as Editas Medicine adjusts its strategy and progresses with its remaining pipeline.
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