Editas Stock Set to Fly Higher on this Technology
One of our strategies for investing in high-growth stocks is to look for companies with cutting-edge technologies in emerging fields. A good example of an emerging field is genome editing, which holds lot of promise. There are few players trying to capitalize on this opportunity, so early investors willing to take the extra risk could stand to make triple-digit returns.
Editas Medicine Inc (NASDAQ:EDIT) is a leading genome editing company that is focused on treating patients who have genetically defined diseases. The company’s core capability in genome editing uses the technology known as clustered regularly interspaced short palindromic repeats (CRISPR). This technology enables the creation of molecules that efficiently edit DNA to treat diseases at the DNA level.
Editas Medicine has developed a proprietary genome editing platform based on CRISPR technology. The company develops transformative genomic medicines that have the potential to treat a broad range of serious diseases, which bodes well for EDIT stock.
The company’s “Cas9” and “Cpf1” genome editing systems can be turned into a wide range of treatments for people living with serious diseases.
Genomic medicines hold great promise as the knowledge of the human genome gets more advanced with time. Continuous progress in technologies for cell therapy, gene therapy, and genome editing has set the stage for Editas Medicine to create unprecedented medicines that have the potential to greatly benefit patients.
According to a recent report, the global genome editing market is expected to reach almost $6.3 billion by 2022, from almost $3.2 billion in 2017. This represents a compound annual growth rate (CAGR) of 14.5%. (Source: “Genome Editing/Genome Engineering Market by Technology (CRISPR, TALEN, ZFN),” MarketsandMarkets Research Private Ltd., last accessed March 23, 2018.)
The report says that the key factors driving the growth of this market are government funding, genomics projects, technological advancements, genetically modified crops, application areas of genomics, and the prevalence of cancer and infectious diseases.
Gene editing is the key for next-generation therapies, and Editas Medicine is at the forefront of this technology. Given the expected growth of this market, Editas stock appears set for higher gains.
The risk attached to EDIT stock is relatively high, because not all of the company’s experimental projects will turn out to be successful. However, it also means there could be above-average returns when events turn out in favor of Editas Medicine.
The company has a unique platform that can possibly create genome-editing molecules for almost any site in the human genome. Editas plans to continue to create and advance a broad range of experimental medicines for genetically defined and treatable diseases.
Editas Medicine announced its fourth-quarter and full-year 2017 results this month. For the quarter, the net loss came in at $36.2 million, or $0.84 per share—compared to $39.4 million, or $1.10 per share for the same period in 2016.
The company expects to have at least five clinical-stage programs by the end of 2022. Editas Medicine is currently exploring the development of a better medicine for sickle cell disease and beta-thalassemia.
Editas has the broadest access to genomic targets, with its proprietary portfolio of Cas9 and Cpf1 enzymes that may be able to directly edit about 95% of the human genome.
EDIT stock made its debut about two years back, and it has turned out impressive performances since then. Editas stock has gone up by more than 80% in the last year.
Chart courtesy of StockCharts.com
Editas stock is volatile, although it holds a lot of promise. As soon as the tide turns against it, the price will come down harder than for other stocks. But, from a long-term perspective, the stock may end up turning out triple-digit returns.
As the world enters a new era of genomic medicine, with the improved understanding of genetically defined diseases, the future looks very bright for Editas Medicine. There could be setbacks along the way for EDIT stock, but, overall, it could be a good opportunity for investors in the long term.