On Wednesday, Wells Fargo (NYSE:WFC) adjusted its stance on Editas Medicine (NASDAQ:EDIT), shifting the stock's rating from Overweight to Equal Weight and reducing the price target to $4.00 from the previous $7.00. The change follows the recent presentation of data at the American Society of Hematology (ASH) meeting.
The data presented for Editas Medicine's Reni-cel's hemoglobin (Hb) outcomes appeared consistent with earlier results, featuring a larger sample size and normalized hemolytic markers. However, competing data from another company presented at ASH indicated superior hemoglobin F (HbF) induction and faster engraftment time, which could potentially influence Reni-cel's market position.
Despite this challenge, Wells Fargo noted that Editas Medicine's in vivo sickle cell disease (SCD) program remains a strong candidate to lead in its field and has the potential to significantly increase the company's value. Nonetheless, the program is still in the early stages, and the firm is awaiting further preclinical proof-of-concept results, particularly in lipid nanoparticle (LNP) delivery, as well as clarity on how differences in the payload may perform in vivo.
The revised price target of $4 reflects Wells Fargo's updated assumptions regarding Reni-cel's market penetration. The updated valuation comes as Editas Medicine continues to develop its gene-editing programs, with the industry closely monitoring the progress of such innovative treatments.
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