Editas Medicine Gets Clearance For First Human Trial Of Gene-Editing Drug – Wells Fargo Sees Potential For Major Value Upside In 2027

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In studies on non-human primates, EDIT-401 reduced bad cholesterol and other harmful blood fats by around 90%.

  • Editas will begin dosing patients this year, with initial safety data due in Q1 2027.
  • EDIT-401 is designed to remove bad cholesterol from the blood after a single treatment.
  • Wells Fargo upgraded EDIT to ‘Overweight’ from ‘Equal Weight’ and raised its price target to $6, according to The Fly.

Editas Medicine (EDIT) was on investors’ radar on Thursday after Australian authorities cleared the biotech firm’s experimental gene-editing treatment for its first human clinical trial, prompting Wells Fargo to upgrade the stock.

EDIT shares gained around 4.7% before paring most of the gains.

Animal Studies Show 90% Reduction In Bad Cholesterol Level

On Thursday, Editas said it received approval to begin the Phase 1/2 Strive trial of EDIT-401 in Australia. The treatment targets heterozygous familial hypercholesterolemia, an inherited condition that causes unusually high levels of LDL, or bad cholesterol, increasing the risk of heart attacks and strokes.

The company said EDIT-401 is designed to edit the LDLR gene, helping remove bad cholesterol from the blood after a single treatment. Existing cholesterol medicines require repeated doses.

In studies on non-human primates, the drug reduced bad cholesterol and other harmful blood fats by around 90%, with cholesterol reductions maintained for 10 months.

Editas plans to begin patient dosing this year, report initial safety data in the first quarter (Q1) of 2027, and topline safety and efficacy data later in the year.

Wells Fargo Sees Potential In 2027

Following the update, Wells Fargo raised its rating on the stock to ‘Overweight’ from ‘Equal Weight’ and hiked its price target to $6 from $4, according to The Fly. This represents a 114% upside potential from current levels.

EDIT has a 12-month consensus price target of $5.9, with eight of the 13 analysts covering the stock having rated it a ‘Buy,’ three ‘Hold,’ and two ‘Sell,’ according to Fiscal.ai

Wells Fargo believes starting the trial marks an important step toward proving EDIT-401’s potential as a differentiated cholesterol treatment. The firm sees 2027 as a possible turning point for Editas’ valuation if early results show meaningful cholesterol reductions.

Editas Pipeline Includes Cancer, Sickle Cell Treatments

While EDIT-401 is the company’s lead development program, Editas is also pursuing gene-editing treatments for sickle cell disease and beta-thalassemia, two inherited blood disorders, as well as a cancer-cell therapy collaboration with Bristol Myers Squibb.

The company reported $211.6 million in cash and cash equivalents as of June 30, following a $125 million financing in May. Editas expects its existing funds to support operations into the second half of 2028.

Retail Remains Bullish On EDIT

Retail sentiment on Stocktwits around EDIT remained ‘bullish’ over the past 24 hours, amid ‘high’ message volumes.

The stock has seen some buying interest this year, gaining nearly 37%.

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