Intellia hit with multiple downgrades following pause in phase 3 nex-z program

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FilippoBacci

At least five Wall Street firms have downgraded their ratings on Intellia Therapeutics (NASDAQ:NTLA [https://seekingalpha.com/symbol/NTLA]) in the wake of the company's announcement it was pausing enrollment in two phase three trials of exiguran ziclumeran (nex-z) after a patient experienced [https://seekingalpha.com/news/4508570-intellia-plummets-following-severe-adverse-event-phase-3-nex-z-trial] severe liver side effects.

RBC Capital Markets' Luca Issi noted that the liver toxicity report is the second for the asset as in May, the company reported a patient experienced a Grade 4 ALT/AST elevation, though it resolved on its own and no hospitalization was involved. ALT and AST are two liver enzymes.

Issi lowered his rating to sector perform and cut his price target to $14 from $21 (~5% decline based on Oct. 27 close). He added he "believes that the event today tilts risk/benefit profile unfavorably especially given an indication where there are safe clinical alternatives."

Bernstein downgraded Intellia to market-perform from outperform with a $14.50 price target. (~2% decline). Analyst William Pickering also reduced his probability of success for nex-z in the two indications in phase 3, transthyretin amyloidosis with cardiomyopathy (ATTR-CM) and transthyretin amyloidosis with polyneuropathy (ATTR-PN) to 40% from $70%. As a result, he cut his risk-adjusted top line forecast by 33%.

Guggenheim, Wells Fargo, and William Blair also issued downgrades.

Several firms, including BofA Securities, HC Wainwright, and Chardan Capital maintained buy ratings, but significantly cut price targets.

After closing down ~42% Monday, Intellia is off another ~5% in Tuesday trading.

MORE ON INTELLIA THERAPEUTICS

* Intellia Therapeutics, Inc. (NTLA) Discusses Safety Event and Protocol Pause in MAGNITUDE Clinical Trials of Nex-Z Transcript [https://seekingalpha.com/article/4833686-intellia-therapeutics-inc-ntla-discusses-safety-event-and-protocol-pause-in-magnitude]
* Crispr And Intellia: Advancing In Vivo Gene Editing As 2025 Results Strengthen Investment Outlook [https://seekingalpha.com/article/4832960-crispr-and-intellia-advancing-in-vivo-gene-editing-as-2025-results-strengthen-investment-outlook]
* Intellia Therapeutics: Full Trial Enrollment Wows Market - Underlines Buy Thesis [https://seekingalpha.com/article/4824438-intellia-therapeutics-full-trial-enrollment-wows-market-underlines-buy-thesis]
* Intellia plummets following severe adverse event in phase 3 nex-z trial [https://seekingalpha.com/news/4508570-intellia-plummets-following-severe-adverse-event-phase-3-nex-z-trial]
* Intellia Therapeutics upgraded by Citizens JMP on HAE opportunity, shares rise 6% [https://seekingalpha.com/news/4502063-intellia-therapeutics-upgraded-by-citizens-jmp-on-hae-opportunity-shares-rise-6]