Shares of Edited by Medicine (EDIT 13.41%) were skyrocketing more than 13% in late afternoon trading on Wednesday, and it was no wonder. The company scored twice in its latest round of quarterly results, with one line item in particular standing out.
Before the markets open that day, Editas unveiled its second quarter figures. The genome-editing company’s revenue was $6.3 million. That’s pretty impressive for a clinical-stage biotech, and well above the roughly $379,000 Editas posted in the second quarter of 2021. Net loss narrowed, but only slightly, to $53.5 million. dollars ($0.78 per share) over the previous year’s deficit. of $55.3 million.
Analysts weren’t expecting this level of revenue improvement. On average, those following Editas’ shares expected the company to earn less than $4.3 million in revenue. They also believed it would show a slightly larger net loss of $0.81 per share.
Gene editing continues to be a hot area of interest in the biotech sphere these days, and Editas is taking advantage of it proportionately.
What also helps is that the company’s experimental programs are progressing. It recently dosed its first patient in a Phase 1/2 trial for its EDIT-301 targeting sickle cell disease, and during the quarter the Food and Drug Administration (FDA) granted orphan drug designation to its EDIT-301 , which aims to treat a blood disorder called beta-thalassemia.
It is extremely difficult, if not nearly impossible, for companies in the biotech sector on the very high and low to issue forecasts for future periods. Quite in the character of the industry, Editas did not do so in its latest quarterly results. Nonetheless, the company is clearly making its mark in the industry and making good progress with its pipeline. The happy reaction of investors to the quarterly results is therefore understandable.
Eric Volkman has no position in the stocks mentioned. The Motley Fool fills positions and recommends Editas Medicine. The Motley Fool has a disclosure policy.