With shares down by 60% in the last three years, Editas Medicine (EDIT -2.43%) investors are experiencing a bumpy ride despite the company's impeccable gene-editing credentials. But for a biotech that's in the running to be one of the world's leading gene-therapy developers, share prices aren't an indicator of its long-term chances of success.

Hitting a home run in clinical trials could be enough to revitalize the buzz around its innovative gene-editing platform. Still, there are reasons to believe that Editas stock might not recover anytime soon, even if its ambitions remain alive. So to decide whether it's a smart purchase this year and beyond, let's look at what's on the company's radar.

No relief for shareholders is in sight

Perhaps the best argument against buying Editas stock is that its drug development pipeline is about to be rendered much less lucrative thanks to a competitor. CRISPR Therapeutics, working in conjunction with Vertex Pharmaceuticals, is on the cusp of finalizing the regulatory approval package for the pair's jointly developed gene therapies for beta thalassemia and sickle cell disease. That could lead to those therapies being commercialized quite soon.

For Editas, that's a huge problem, as its two most-advanced pipeline programs are gene therapies that are also intended to treat those two hereditary conditions. Both programs are in the early stages of clinical trials rather than the later stages, meaning that the company's attempts to penetrate the market are years away. If it succeeds in commercializing the pair, which is not guaranteed, it'll be trying to steal market share from competitors that had the benefit of a long head start. And so far it hasn't been able to demonstrate any kind of competitive advantage that might make the task easier.

There's another issue: Management appears to be in favor of continuing with development rather than cutting losses and exploring elsewhere. Per a strategic update on Jan. 9, a handful of its projects are being discontinued to refocus on beta thalassemia and sickle cell disease. Roughly 20% of Editas' staff members are being cut, and as a result, the company should have enough cash to continue with development into 2025.

But even that might not be enough time to push its two most advanced projects to commercialization. So with a very uncertain future, it's not a favorable time to buy stock, and there aren't any near-term catalysts that could reward investors who take the plunge anyway.

This biotech isn't near being dead yet

Despite all that, there's little chance that Editas will go belly-up anytime soon. It has more than $419.6 million in cash and equivalents, whereas it only spent $160.5 million on research and development (R&D) expenses over the last 12 months. Its ambition is to be a leader in gene-editing therapies that alter the genomes of living people to potentially cure them of hereditary illnesses. That could be huge, as until recently hereditary conditions were wholly incurable, without the ability to correct the underlying genetic issues causing disease.

Furthermore, the company will be getting a new chief scientific officer (CSO) at some point this year, hopefully, before its current CSO departs at the end of March. The managerial shakeup is unlikely to have any near-term positive impact, but in the long term, it could be a decisive factor if the new leader can facilitate progress on the pipeline.

It's an especially risky time to invest

There's little in the way of an investment thesis for Editas at the moment, and its risk of failure remains significant even if it can navigate the substantial risks of the drug development process with its two clinical-stage projects. It's still true that the biotech could find a path to success in the long term, given its substantial resources and impressive gene-editing platform.

But unless you're looking for a speculative purchase that might take a few years to provide any kind of return, it's probably best to invest in something else. The company's simply surviving the next few years isn't enough reason to invest.