Intellia Therapeutics, Inc. (NTLA)

Intellia Therapeutics, Inc. (NTLA)

We’ll stay in the biotech space for the next Wood-backed stock. Using CRISPR-based technologies, Intellia Therapeutics’ goal is to develop genome editing treatments for people suffering from serious diseases. In fact, one of Intellia’s co-founders, Jennifer Doudna, was part of the team that invented the CRISPR gene editing system – a genetic engineering method in molecular biology whereby the genomes of living organisms may be altered – and along with Emmanuelle Charpentier, was awarded the 2020 Nobel Prize in Chemistry for the groundbreaking CRISPER work.

Last year, Intellia reported positive interim data from two ongoing clinical studies assessing the company’s in vivo CRISPR/Cas9 gene editing treatments; one is from the study of NTLA-2001, indicated to treat patients with ATTR (transthyretin amyloidosis) – a collaboration with Regeneron Pharmaceuticals – and the other for NTLA-2002 in hereditary angioedema (HAE).

For the former, the company plans on releasing more clinical data from the ongoing Phase 1 study of NTLA-2001 in 2023 and intends to file an IND application around mid-year to allow for the inclusion of U.S. sites in a pivotal study of the candidate.

As for NTLA-2002, the company plans to kick off the Phase 2 segment of the ongoing Phase 1/2 study during the first half of the year. An IND to get U.S. sites included in the Phase 2 study of NTLA-2002 should also be submitted during 1H.

Despite a recent uptick, the stock has severely underperformed over the past year, having shed 54% of its value. Wood evidently thinks now is the time to pounce; over the past two months, via ARKK, she purchased 181,295 shares, bringing the ETF’s total holdings to 6,744,252 shares. These are currently worth more than $291 million.

Sharing Wood’s enthusiasm, Wells Fargo’s Yanan Zhu likes the look of the shares right now and assuages investor fears on specific issues.

“We see NTLA shares as attractively valued at current price, and would note that concerns on U.S. IND filing and approval as well as on safety of the company’s in vivo gene editing programs, although understandable, are greatly overdone,” the analyst wrote. “In 2023, we see high likelihood of FDA allowing INDs for NTLA’s and other companies’ in vivo gene editing studies. Our confidence is based on FDA’s previous clearance of zinc finger nuclease (ZFN)-based gene editing INDs. We also note that the accumulation of safety data from ex-US studies of in vivo CRISPR gene editing studies could also facilitate FDA’s decision.”

Backing that stance, Zhu rates NTLA shares an Overweight (i.e. Buy) to go alongside a $120 price target. This target brings the upside potential to a whooping 177%.

Looking at the consensus breakdown, based on 7 Buy ratings vs. 4 Holds, this stock claims a Moderate Buy consensus rating. The analysts see the shares delivering returns of ~98% over the coming year, considering the average target clocks in at $85.80.