Intellia Therapeutics (NTLA) – Buy Recommendation – $30.25

On May 31, 2016, the quiet period for the Intellia Therapeutics, Inc. IPO will expire. At that time, the underwriters for the IPO will be allowed to issue reports and to make recommendations on June 1, 2016.

Intellia Therapeutics is a gene-editing company that uses the CRISPR/Cas9 system in order to develop potential cures for a variety of disorders through gene therapy. It is likely that the shares of NTLA will experience at least a temporary increase following the release of the underwriter reports. We previously previewed the Intellia Therapeutics IPO on May 3, 2016.

Impressive Early Market Performance

The expected price range for NTLA was set at $16 to $18 for its May 6 IPO. The company hoped to raise $88.3 million. On its first day of trading, NTLA outperformed that expectation and instead was priced at $22 per share, well above its expected range. With that pricing, the offering of 5 million shares and an overallotment option of an additional 750,000 shares made the value of the IPO instead be up to $126.5 million. The stock has grown since then in its early market performance.

Business Overview: Gene-editing Company Using Cutting-Edge Biotech to Develop New Potential Curative Therapies

Intellia Therapeutics, Inc. describes itself as a gene-editing company. It uses a new biotechnology called the CRISPR/Cas9 system in order to edit genes. The company’s goal is to discover and develop new therapies to cure a variety of conditions by treating genes that are diseased. The company is based in Cambridge, Massachusetts.

Gene editing modifies the information contained in genes. The CRISPR/Cas9 system does so by making repairs to damaged portions, knocking out diseased portions and inserting new material. As the company disclosed in its SEC filings, this new technology has not yet been validated through clinical trials for human use. Since it is in an early stage of development, it is also uncertain whether products will be developed that can provide the therapeutic developments for which the company is striving. The company also notes that regulatory issues exist. Gene-editing therapies have not been approved in the U.S. to date, and only one gene-editing therapy has been approved in the European Union.