On Monday, Oppenheimer adjusted its outlook on Intellia Therapeutics (NASDAQ:NTLA) shares by reducing the company's price target from the previous $60.00 to $40.00. Despite the decrease, the firm maintained an Outperform rating on the biotechnology company's shares. The decision came after Intellia Therapeutics announced strategic changes and a workforce reduction to extend its financial runway.
The company has chosen to discontinue the development of NTLA-3001 and several early-stage research and development programs. Alongside these program discontinuations, Intellia also revealed a workforce reduction of approximately 27%. These measures aim to prolong the company's financial resources into the first half of 2027, which is an extension from the previously forecasted late-2026. As of the end of 2024, Intellia reported having around $862 million in cash.
The revised strategy is designed to support the late-stage development and potential commercialization of its therapeutic candidates, nex-z and NTLA-2002. Intellia is prioritizing clinical execution for NTLA-2002 and nex-z, with expectations to release additional data from Phase 1/2 studies within this year. Moreover, the company is preparing to establish commercial leadership in the second half of 2025, with a Biologics License Application (BLA) filing for NTLA-2002 anticipated the following year.
Oppenheimer's updated price target reflects the removal of NTLA-3001 and other early-stage programs from their model. Despite the changes and reduced price target, the firm reaffirms its positive outlook on Intellia, highlighting the company's continued focus on advancing its leading clinical programs.
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