Intellia Therapeutics Shares Have Struggled, But It's Now Go-Time (Rating Upgrade)

2025-05-12 09:07:07 ET

Summary

• Investors who've been looking for problems at Intellia Therapeutics have, during the past year, had an easy time finding them. A tendency to misinterpret helped.
• Investors complained about test results that were fine with medical experts and the FDA. The Street hated when NTLA dropped a lesser program and laid off some staff members.
• On 5/8/25, the Company reported further progress with two treatments that are now ensconced in Phase III of testing—a level only a third of new drugs reach.
• Investors still find reasons to worry, like cash burn and how expensive the treatments will be. But these are established problems for all biotech and, I think, are solvable.
• I've struggled to rate NTLA. Now, given the news about its two big projects and the absence of negative distractions, I'm going to stop trying to outthink the room—I'm raising my rating to 'Buy.'

Investing in Biotech should, it would seem, be a no-brainer.

Sure, many companies are developmental. Revenues often range from tiny to almost non-existent. Outside capital infusions keep many companies alive. Potential success in individual product development efforts can be hard to judge. Many stocks are hard to value.

But how much harder is it, really, than other areas investors love. Truthfully, how many AI fans really understand and can value efforts in that area....

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