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RegMed Investors (RMi) Research Note: Editas Medicine (EDIT) prices a $125 M offering of 12.5 M shares at $10.00

June 21, 2023 4:37pm

EDIT closes down Wednesday -$0.38, -3.31% to $11.09 with a negative Thursday drop of -$1.81 to $9.28, Friday closed at $8.82, Monday was a holiday,Tuesday closed down -$0.48 to $8.36, Wednesday closed down -$0.34 to $8.02

Offering is expected to close 6/20/23

A big buck for a faltering equity … yet, clinical data

Although, EDIT announced positive preliminary safety and efficacy data from t2he first four patients with sickle cell disease (SCD) treated with EDIT-301 in the RUBY study and the first transfusion-dependent beta thalassemia (TDT) patient treated in the EdiTHAL study.

Some stats …

A 52-week high of $19.97 and a low of $6.33

A 52-week change: -8.93%

Cash position: $318.44 M

Revenue: $22.79 M

Shares outstanding: 69 M

Short percentage (%) of shares outstanding: 29.71%

Percentage (%) held by insiders: 0.37%

Percentage (%) held by institutions: 81.44%

Float: 66.78 M

Percentage (%) of float (3/31/23): 45.14%

50-day moving average: 8.75

200-day moving average: 10.20

Short ratio: 10.4

J.P. Morgan Securities LLC, Cowen and Company, LLC and Evercore Group L.L.C. are acting as joint book-running managers for the offering.

EDIT intends to grant the underwriters a 30-day option to purchase up to an additional $18.75 million of shares of its common stock. All of the shares in the offering are to be sold by Editas Medicine.

The Bottom Line: I been in the “business” for many years and … I question WHY a pricing takes so long to announces as ANY upside slips downward.

A reason for offering – P1/2 CLINICAL DATA; for the treatment of TDT. EDIT dosed the first patient in the phase I/II EdiTHAL study of EDIT-301, for treating TDT, in Q1/2023. The patient reportedly had successful neutrophil and platelet engraftment. EDIT further reported that the patient’s response to treatment with EDIT-301 resembled that of the first four RUBY patients at one and a half months post-infusion.

35 companies, 1 interpreter!

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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