EDIT - Why Editas Medicine Stock Charged Higher in January
Shares of gene-editing company Editas Medicine (NASDAQ: EDIT) rose by a healthy 11.5% over the course of January, according to data provided by S&P Global Market Intelligence . This big monthly gain stemmed from a definitive agreement between Editas and privately held Shoreline Biosciences that was announced on January 19, 2023.
Per the terms of the agreement, Shoreline will gain access to Editas' proprietary SLEEK (SeLection by Essential-gene Exon Knock-in) and AsCas12a gene-editing technologies via a licensing deal. Furthermore, Shoreline will buy Editas' preclinical gene-edited induced pluripotent stem cell- (iPSC) derived natural killer cell (iNK) programs and related manufacturing technologies. The specific financial terms of the deal weren't disclosed at the time of the announcement, however.
Earlier in January, Editas announced a reorganization plan centering around the prioritization of its lead blood disorder candidate, EDIT-301. As part of the plan, the biotech also announced a 20% workforce reduction and the culling of some of its earlier-stage assets. In light of those moves, this licensing and asset sale transaction with Shoreline wasn't totally unexpected at the time of its announcement.
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Why Editas Medicine Stock Charged Higher in January