NTLA Declines 67% in a Month: Should You Buy, Sell or Hold the Stock?

Core Viewpoint - Intellia Therapeutics (NTLA) has experienced a significant decline in share price, dropping 67.3% over the past month, primarily due to regulatory challenges with its lead candidate, nex-z, and mixed third-quarter earnings results [1][4]. Financial Performance - Intellia reported mixed third-quarter results, beating earnings estimates but missing revenue expectations [4]. - The company's current revenue primarily consists of collaboration revenues from partners like Regeneron Pharmaceuticals [5]. Pipeline Developments - Nex-z, a CRISPR-based gene-edited therapy, is under evaluation in two late-stage studies for ATTR amyloidosis [5]. - The FDA has placed a clinical hold on the phase III studies for nex-z, pausing milestone guidance as the company collaborates with regulators to address the issue [7][9]. - Intellia has completed patient enrollment in the pivotal phase III HAELO study for another candidate, lonvo-z, with top-line data expected by mid-2026 [11]. Competitive Landscape - Intellia's CRISPR-based therapies face competition from other companies, such as CRISPR Therapeutics, which has already launched a CRISPR/Cas9-based therapy, and Beam Therapeutics, which is developing its own gene-editing candidates [12][13][14]. Valuation Metrics - Intellia is currently trading at a price/book ratio of 1.15, which is lower than the industry average of 3.28, indicating a discount [16]. - The Zacks Consensus Estimate for Intellia's loss per share for 2025 has narrowed from $4.14 to $4.00, and for 2026 from $4.10 to $3.61 [17]. Investment Outlook - Despite recent setbacks, a successful data readout from ongoing studies could provide upward momentum for Intellia's stock [18]. - The stock is suggested to be retained as it is trading at a discount compared to the industry, with declining loss estimates potentially keeping investor sentiment optimistic [19].