Analyzing Editas Medicine’s Operational Performance

Operating expenses

Editas Medicine (EDIT) incurred general and administrative expenses of $13.33 million in the third quarter—compared to $12.63 million in the third quarter of 2017. The increase was due to higher stock-based compensation and employee-related expenses during this period.

The company’s R&D (research and development) expenses decreased from $20.4 million in the third quarter of 2017 to $17.44 million in the third quarter. The decrease was due to lower sublicensing expenses and process and platform development expenses. For fiscal 2018 and 2019, Editas Medicine is expected to incur R&D expenses of $99.71 million and $115.95 million, respectively—compared to R&D expenses of $83.16 million in fiscal 2017.

Analyzing Editas Medicine’s Operational Performance

Bluebird Bio (BLUE), Regenxbio (RGNX), and Spark Therapeutics’ (ONCE) R&D expenses in fiscal 2018 are expected to be $449.54 million, $78.42 million, and $120.83 million, respectively.

Editas Medicine’s total operating expenses decreased from $33.03 million in the third quarter of 2017 to $30.78 million in the third quarter. The increased top line and the decline in operating expenses caused Editas Medicine’s operating loss to narrow from $26.75 million in the third quarter of 2017 to $16.26 million in the latest quarter.

Bottom line

Editas Medicine incurred a net interest expense of $46,000 in the third quarter of 2017. In the recent quarter, the company received a net interest income of $1.02 million.

Editas Medicine’s net loss decreased from $26.6 million in the third quarter of 2017 to $15.24 million in the latest quarter. The company had a net loss per share of $0.32 in the third quarter. Editas Medicine’s net loss per share was $0.64 in the third quarter of 2017.

Next, we’ll discuss analysts’ views on Editas Medicine stock.