Investors like biotechnology stocks for their explosive growth potential. Smaller biotechs usually don’t have approved products on the market yet, and this keeps investors on their toes. Because candidate drugs that become approved translate into significant share price gains. With that in mind, EDIT stock is on the radar today.
Will shares of Editas Medicine (NASDAQ:EDIT) break out?
EDIT Stock
With a market cap of $1.10 billion, Editas Medicine is a valuable company for one that has yet to get a product to market. Shares are currently priced at $22.31 USD on the NASDAQ exchange, making this company a biotech that investors have faith in.
Hopes depend on the company’s lead candidate EDIT-101, a CRISPR gene-editing therapy. The drug will begin phase 1 clinical testing this year and aims to treat Leber congenital amaurosis type 10 (LCA10), the leading cause of genetic blindness in children. The FDA only approved the application for EDIT-101 in March, and the news caused shares to spike nearly 15%.
EDIT-101 is already a unique candidate as it will be the first CRISPR therapy administered to patients inside the body.
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It helps investor sentiment that the company has received significant attention from major biotech companies eyeing up EDIT-101’s potential. For example, last year, major pharma group Allergan (NYSE:AGN) exercised its right to develop and commercialize the CRISPR therapy for treating LCA10.
Following the FDA approval, it paid Editas a $25 million milestone payment under the terms of the pair’s agreement.
Further, major American biotech Celgene (NASDAQ:CELG) is using the CRISPR gene editing, but for fighting cancer cells.
At current prices, shares are averaging between the year-to-date highs and lows. At the end of April, shares climbed to a high of $27.76 USD, after hitting a low of $19.43 USD two months prior in February.
What are your thoughts on EDIT stock? Is this one to keep your eye on? It’s hard to tell until those trials are undertaken—so it’s all down to the waiting game now.
Featured Image: DepositPhotos © SergeyNivens
