It has been a colossal year for gene-editing giant Intellia Therapeutics (NASDAQ:). Recent clinical trials have shown that the biotech company is seeing positive results. As a biotech stock investors might not be shocked to learn that Intellia ranks among its peer groups as one of the top-performing stocks.

NTLA stock rose more than 170% in the past year. NTLA stock shares rose more than 600% over the past year. This is a result of investors becoming more bullish in gene editing.

Intellia, a world leader in gene-editing technology has achieved remarkable progress in the commercialization of its product. Cathie, a growth expert, has been able to get onboard in large numbers. Retail investors will be excited to hear that Cathie is buying.

CRISPR-based treatments have been used by gene editing companies to modify the genetic code of stem cells. Now, Intellia has come up with a technology that holds up COVID-19 vaccines from BioNTech (BNTX) and Moderna (NASDAQ:) to design a possible cure for rare inherited diseases.

NTLA stock was one of the hottest performers of late. It isn’t surprising that growth investors are drawn to these disruptive stocks. As these stocks get increasingly expensive, there are still valuation concerns.

At the moment, I am cautiously optimistic about NTLA stock. (See Intellia Therapeutics stock charts on TipRanks)

Future Growth Driving this Stock

Like many high-growth stocks, Intellia has been losing money of late. The market has begun to project increased revenue growth for the stock. This is likely to lead towards positive earnings in the future. The long-term pace at which Intellia’s gene editing stock can grow is the main focus for investors who look at them in general. Investors are betting on the growth of cashflow over time, which will outweigh any short-term investments.

Despite this, Intellia revenue for the past year actually was lower than it was last year. Investors betting on Intellia’s future growth potential increasingly look at data from clinical trials rather than past results. This stock appears completely disconnected from its historical fundamentals.

We’ll now look at why investors seem so focused on the latest clinical trial results.

Stirring Clinical Trials

On June 26, Intellia and its partner Regeneron Pharmaceuticals (NASDAQ:), gave interim trial results for NTLA-2001. The ATTR-PN is an incurable hereditary condition. This new therapy could offer a solution. Transthyretin begins to fall apart, causing severe organ and nerve damage. 

As time passes, fragments of transthyretin can become dangerous plaques. Patients who have received the NTLA 2001 treatment are not affected by this. The NTLA’s remarkable gene therapy involves a pair RNA messengers surrounded by lipid nanoparticles. Unlike Editas’ candidate, NTLA-2001 safely reaches the liver through the bloodstream. 

It seemed impossible to send RNA safely through the bloodstream in the distant past. Moderna and BioNTech demonstrated last year that LNP technology is finally possible and could be the breakthrough everyone had hoped for.

According to the trial results, a single dose NTLA 2001 lowered transthyretin levels by over half. This was the case for all three of the patients that received 0.1 mg/kg.   

The next group received a 0.3mg dose. The transthyretin levels were lowered by 87% with this dose.  

CRISPR-based businesses must be aware of potential dangers such as accidental deletion of untargeted genes. Intellia has never had to worry about this. Six patients who received NTLA 2001 treatment were not affected by adverse events. 

Analysts Take on NTLA Stock

As per TipRanks’ analysts rating consensus, Intellia is a Strong Buy. There are 13 Buy recommendations, 3 Hold recommendations out of 16 ratings.

Intellia Therapeutics’ average price target of $174.94 indicates a 17.3% upside. The price targets of analysts range from $130 to $252 per shares.

Bottom Line

These interesting trial results have resulted in record share price appreciation for NTLA. Long-term investors are indeed happy with these outcomes. NTLA stocks are becoming more popular among investors who want to invest in gene editing stocks that have high growth and a bright future. This sector is leading the pack, according to data. The market also agrees.

Disclosure: At the time of publication, Chris MacDonald did not have a position in any of the securities mentioned in this article

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