Intellia Therapeutics (NASDAQ: NTLA) is a biotechnology company that focuses on using a CRISPR gene editing system. The company has relationships with the likes of Novartis and Regeneron. It recently published positive data from the phase 1 research of one of its leading treatments. As a result, the company’s share price has seen a lot of support in recent months. People want to know if Intellia Therapeutics is a good investment?
The bull case for Intellia Therapeutics
Investors have been paying a lot of attention to Intellia Therapeutics in recent months. The company announced positive results from initial studies in June, leading to a doubling of the stock price. On the back of this news, it managed to raise over $600 million from investors. It has plenty of cash on hand to continue funding its research and keep its cash burn under control.
Its NTLA-2001 treatment was the first of its kind to showcase clinical data in support of the treatment that is deployed in humans through the use of CRISPR gene-editing technology. The goal of this type of treatment is to precisely edit a disease-causing gene. People believe that this positive data can open the door to a new type of medicine and help lead to possible cures for genetic diseases. Intellia Therapeutics is hoping to go into the second part of its phase one trials for NTLA-2001 by the end of 2021.It has other treatments currently in the works. NTLA-2002 is a treatment for hereditary angioedema, while NTLA-5001 aims to treat acute myeloid leukemia.
The bear case for Intellia Therapeutics
As gene editing is only in its infancy and there is only very initial testing taking place in humans, there is a lot of uncertainty about the future of Intellia Therapeutics. With the share price increasing significantly over recent months, some investors are concerned that it is a costly time to buy into a speculative company.
The concern would be any major setbacks in the initial trial phases of Intellia Therapeutics’ various treatments could have a significantly negative impact on the share price.
Intellia Therapeutics is also not likely to be profitable for some time, with investors paying for future prospects. The net loss for Intellia Therapeutics in Q2 2021 was $68.8m, an increase from the net loss of $32.4m for Q2 2020.
So, should I buy Intellia Therapeutics stock?
Intellia Therapeutics’ progress to date has showcased the potential for gene editing treatments. The initial data shows the possibilities of gene-editing technology working effectively in humans.
If future results from studies are positive, it is likely that the current interest levels in this stock from investors will continue. Therefore, if you are looking for a more speculative type of long-term investment, then Intellia Therapeutics stock could be for you.
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Who is the CEO of Intellia Therapeutics?
John Leonard is the current CEO and president of Intellia Therapeutics.
Is Intellia Therapeutics profitable?
Intellia Therapeutics is yet to generate a profit since it started its operations in 2014.
Does Intellia Therapeutics pay a dividend?
No, Intellia Therapeutics does not pay a dividend to shareholders.
Contributing Writer at MyWallSt
Andrew is a contributing writer to MyWallSt. He is a full-time finance writer, having spent time working in the industry. He studied Economics and Finance and has been fascinated with the financial markets since his teens. The first stock that Andrew bought was Apple, reflecting his love for its products.