Meet the Beaten-Down Biotech Stock Cathie Wood Loves and Wall Street Says May Soar More Than 130%

Core Viewpoint - Intellia Therapeutics is facing significant challenges due to safety concerns regarding its lead drug candidate, nex-z, which has led to a substantial drop in its stock price, despite optimistic projections for its potential market opportunities [2][6][7]. Company Overview - Intellia Therapeutics is a small-cap biotech company focused on developing gene-editing therapies for rare diseases, with two main products in clinical trials: Lonvo-z for hereditary angioedema (HAE) and nex-z for transthyretin (ATTR) amyloidosis [3][5]. Product Development - Lonvo-z is in phase 3 clinical trials and is expected to be a one-time cure for HAE, with potential regulatory submission anticipated next year [4]. - Nex-z is undergoing two phase 3 studies but has been paused due to a significant liver damage incident in a patient, raising concerns about its safety and regulatory approval [6]. Market Potential - Intellia estimates that Lonvo-z could generate $5 billion in sales by 2028, targeting approximately 150,000 patients with HAE [9]. - For nex-z, the company projects a market opportunity of $12 billion by 2028, with a potential patient population of 250,000 to 500,000 for ATTR amyloidosis [10]. Financial Metrics - The current average price target for Intellia Therapeutics is $32.3, indicating a potential upside of 131% from its current price of $12.62 [2][11]. - The company has a market capitalization of $1 billion and a gross margin of 80.76% [11]. Investment Considerations - While there is potential for significant returns if the therapies are approved and achieve projected sales, there are concerns that the sales forecasts may be overly optimistic due to high costs and insurance coverage issues for gene-editing therapies [13]. - The recent safety issues with nex-z could hinder its approval and market entry, posing risks for investors considering the stock [14][15].