Editas Q2 Earnings & Revenues Miss Estimates, Stock Down - Annovis Bio (NYSE:ANVS), Akero Therapeutics (NASDAQ:AKRO)

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Editas Medicine, Inc. EDIT incurred a loss of 82 cents per share in the second quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 69 cents. The company had reported a loss of 56 cents per share in the year-ago quarter. Collaboration and other research and development (R&D) revenues, which comprise the company's top line, were $0.5 million in the second quarter, down from $2.9 million reported in the year-ago quarter. The reported figure missed the Zacks Consensus Estimate of $7 million. The year-over-year decline in revenues can be attributed to reduced drug supply activity with collaborators. Shares of Editas were down 12.2% on Aug 7 following the announcement of the results. Quarter in Detail In the second quarter of 2024, R&D expenses increased 82% to $54.2 million compared with $29.8 million reported in the year-ago period. The massive uptick in R&D expenses can be attributed to higher clinical and manufacturing costs related to the accelerated progression of Editas' reni-cel program as well as costs attributable to other research activities. General and administrative expenses were $18.2 million in the reported quarter, up 6% year over year, due to higher intellectual property and patent-related fees due to increased legal activity. Editas had cash, cash equivalents and investments worth $318.3 million as of Jun 30, 2024, down from $376.8 million recorded as of Mar 31, 2024. The company expects its existing cash, cash equivalents and marketable securities, together with the near-term annual license fees and the contingent upfront payment from Vertex Pharmaceuticals VRTX, to fund operating expenses and capital expenditure in 2026. In late 2023, Vertex in-licensed rights to Editas' Cas9 gene editing tool to develop its newly approved sickle cell disease gene therapy, Casgevy. Shares of Editas have plunged 59.4% year to date compared with the industry's decline of 4.4%. Image Source: Zacks Investment Research Pipeline Updates Editas has no approved products in its portfolio at the moment. Therefore, pipeline development remains the key focus of the company. The company is evaluating the safety and efficacy of its investigational gene-editing medicine, reni-cel (renizgamglogene autogedtemcel, previously EDIT-301), in phase I/II/III RUBY study for treating SCD. EDIT has completed enrollment and continues to dose SCD patients in the adult cohort of the RUBY study. The company has completed enrollment in the adolescent cohort of the RUBY study. Editas remains on track to report substantive data from the RUBY study by the end of 2024. The company is also evaluating reni-cel for the treatment of transfusion-dependent beta thalassemia (TDT). Editas has completed enrollment in the adult cohort and continues to dose patients in the EdiTHAL study for TDT. The company is also on track to report additional clinical data from the EdiTHAL study by the end of 2024. Please note that during the reported quarter, Editas reported new positive data from the RUBY study of reni-cel in 18 patients with SCD and the EdiTHAL study of the same in seven patients with TDT. In the expected data readout from the RUBY and EdiTHAL studies by year-end, EDIT will provide additional efficacy data. Editas Medicine, Inc. Price and Consensus Editas Medicine, Inc. price-consensus-chart | Editas Medicine, Inc. Quote Zacks Rank & Stocks to Consider Editas currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Annovis Bio ANVS and Akero Therapeutics AKRO, each carrying a Zacks Rank #2 (Buy) at present. In the past 60 days, the Zacks Consensus Estimate for Annovis' 2024 loss per share has remained constant at $2.46. During the same period, the consensus estimate for 2025 loss per share has narrowed from $1.95 to $1.91. Year to date, shares of ANVS have plunged 57.1%. ANVS beat estimates in three of the trailing four quarters and missed once, delivering an average negative surprise of 1.39%. In the past 60 days, estimates for Akero Therapeutics' 2024 loss per share have narrowed from $3.87 to $3.82. During the same period, loss per share estimates for 2025 have remained constant at $4.29. Year to date, shares of AKRO have gained 1.4%. Akero's earnings beat estimates in one of the trailing four quarters, missed twice and matched once, delivering an average negative surprise of 5.10%. To read this article on Zacks.com click here.