What happened
Shares of Editas Medicine (EDIT -4.14%) are sliding today, down by 7.2% as of 11:26 a.m. ET. The decline came after the company announced a big shake-up with its research and development focus.
Editas stated that it won't invest any further in inherited retinal disease programs. These include previous lead pipeline candidate EDIT-101 in treating Leber congenital amaurosis 10 and EDIT-103 in treating rhodopsin-associated autosomal dominant retinitis pigmentosa. The company is also discontinuing funding of its EDIT-202 program targeting solid tumors.
In connection with these changes, Chief Scientific Officer Mark Shearman is leaving Editas effective March 31, 2023. The company has already begun to search for Shearman's replacement. It's also cutting staff by around 20%.
So what
Editas said that it plans to look for partners to develop its inherited retinal disease and induced pluripotent stem cell derived natural killer (iNK) cell programs. However, today's announcement clearly marks a major shift for the company.
Why didn't the gene-editing stock plunge more than it did on this news? Probably because many investors had already seen the writing on the wall. Editas had previously revealed that it was seeking a partner for its EDIT-301 program.
Now what
Editas now plans to focus on hemoglobinopathies and in vivo (gene-editing therapies delivered inside the body) discovery. It will prioritize funding of EDIT-301, which is being evaluated in phase 1/2 clinical testing as a potential treatment of severe sickle cell disease and transfusion-dependent beta-thalassemia. The company will also continue to work with partners Bristol Myers Squibb and Immatics N.V. to develop T-cell therapies.
