Yesterday, biotech company Editas Medicine (NASDAQ:EDIT) shared positive preclinical results for one of its cancer treatments. As a result, EDIT stock is up as much as 5% in morning trading.
Editas Medicine reported the results at a meeting of the American Society of Hematology.
Specifically, the results show the potential to shrink tumors in women who have ovarian cancer. The news is extremely encouraging for EDIT stock, which had declined 60% this year before today’s move higher.
What Happened With EDIT Stock
Headquartered in Cambridge, Massachusetts, Editas Medicine is focused on developing medical treatments for diseases using gene editing. The company was founded by a group of professors from Harvard University and the University of California, Berkley, and went public in 2016 with backing from Microsoft (NASDAQ:MSFT) co-founder Bill Gates. The company is primarily focused on developing treatments against cancer and has laboratory facilities located in Boulder, Colorado.
The preclinical trial results that were reported over the weekend are a significant step forward for Editas Medicine’s efforts to commercialize one of its cancer treatments.
“These data reinforce our view of the potential for our gene editing platform to optimize NK cell function, providing a promising approach to treat a wide range of solid tumors,” said Mark S. Shearman, Chief Scientific Officer of Editas Medicine in a company-issued news release.
Why It Matters
Today’s move higher is the best news that shareholders of EDIT stock have had all year. As mentioned, its share price is down 60% year to date. In the past month, the stock has fallen nearly 20%. The share price is now 71% below its 52-week high of just under $100. Editas Medicine has struggled to deliver on expectations for its various cancer treatments and to meet timelines for trials and tests of its various medications, and its share price has suffered as a result.
The positive preclinical test results for its ovarian cancer treatment are a big vote of confidence in Editas Medicine and its potential to bring a treatment to market. The results also support the practice of gene editing as a means of treating complex diseases such as cancer. For those unfamiliar, gene editing refers to the process of deleting, replacing or inserting DNA sequences in an individual’s genetic material. The goal in this process is to typically correct or treat a disease.
What’s Next for Editas Medicine
Today’s rise in EDIT stock appears to stop the bleeding in the share price for the time being. Investors will be watching to see if the gains hold and are the start of a meaningful move higher for Editas Medicine. The shares have a lot of ground to recover after their steep fall throughout the year. But today’s rise is a step in the right direction.
On the date of publication, Joel Baglole held a long position in MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.