Intellia Crashes 60% in a Year: How Should You Play the Stock?

Company Performance - Intellia Therapeutics, Inc. (NTLA) has experienced a significant decline in 2024, with shares dropping 60.4%, compared to the industry's decline of 13.7% [1] - The stock has underperformed relative to the sector and the S&P 500 Index over the past five months [1] Pipeline and Collaborations - NTLA has a promising pipeline of CRISPR-based therapies, including two in late-stage development: Nexiguran ziclumeran (nex-z) and NTLA-2002 [3][4] - Nex-z is designed to inactivate the transthyretin (TTR) gene to treat ATTR amyloidosis, with a collaboration agreement with Regeneron Pharmaceuticals for its development and commercialization [3] - NTLA-2002 aims to knock out the KLKB1 gene to control hereditary angioedema (HAE) attacks with a single dose [4] Clinical Data and Investor Sentiment - Data from a phase I study of nex-z showed a 90% mean serum TTR reduction at month 12, but safety data did not impress investors, leading to a selloff [5][7][16] - The phase I/II study of NTLA-2002 reported a 75% to 81% reduction in monthly attack rates for HAE patients [18] Financial Position - NTLA ended the third quarter with cash, cash equivalents, and marketable securities totaling $944.7 million, expected to fund operations into late 2026 [9] - The company's shares currently trade at a price/book ratio of 1.28x, lower than the industry average of 3.47 [10] Market Outlook - The Zacks Consensus Estimate for NTLA's 2024 loss per share has narrowed to $5.31, indicating some adjustments in market expectations [21] - Investors remain skeptical about the recent data from NTLA's therapies, which may impact the company's future performance [23]