Shares of Editas Medicine (EDIT 5.78%) were jumping 9.4% as of 12:27 p.m. EST on Monday. The gain came after the company provided its third-quarter update earlier in the day.
Editas reported revenue in the third quarter of $62.8 million, all of which stemmed from collaboration deals. The average analysts' estimate was for revenue of $4.78 million. The company posted a net loss in Q3 of $39.1 million, or $0.57 per share. This result beat the consensus estimate of a net loss of $0.82 per share.
It's understandable that investors react enthusiastically to top- and bottom-line beats. But such financial results really don't matter all that much for clinical-stage biotech stocks like Editas.
Arguably the most important financial number in the company's Q3 update was its cash position. It reported cash, cash equivalents, and marketable securities of $657 million as of Sept. 30. The company thinks that will be enough to fund operations into 2023.
Editas is on track to complete dosing in the first half of 2022 of the adult high-dose and pediatric mid-dose cohorts in its phase 1/2 study evaluating gene-editing therapy EDIT-101 in treating genetic eye disease Leber congenital amaurosis 10.
The company also expects to begin dosing in the first half of next year in its phase 1/2 study evaluating EDIT-301 in treating sickle cell disease. Editas hopes to file an Investigational New Drug application by the end of 2021 to initiate an early stage study of the experimental therapy in treating transfusion-dependent beta-thalassemia.