Intellia Therapeutics stock falls following strategic reorganization

Investing.com -- Shares of Intellia Therapeutics, Inc. (NASDAQ:NTLA ) fell 2.4% in pre-open trading Friday as the company announced a strategic reorganization focusing on key value drivers and an anticipated workforce reduction. The Cambridge-based clinical-stage gene editing company unveiled its strategic priorities and key anticipated milestones for 2025, which include focusing resources on high-value programs such as NTLA-2002 for hereditary angioedema (HAE) and nexiguran ziclumeran (nex-z) for transthyretin (ATTR) amyloidosis.

The company plans to complete enrollment for the Phase 3 HAELO study of NTLA-2002 in the second half of 2025 and expects to submit a Biologics License Application in the second half of 2026. Intellia also reported that enrollment for the MAGNITUDE study for nex-z in ATTR-CM is ahead of internal estimates, with over 550 patients expected by year-end.

To support these initiatives, Intellia is undergoing a strategic reorganization that includes discontinuing the development of NTLA-3001 and select research-stage programs. The reorganization will result in a net workforce reduction of approximately 27% in 2025. The company anticipates approximately $8 million in charges related to the reorganization, expected to be incurred in the first quarter of 2025.

Despite the market's response to the reorganization and workforce reduction, Intellia ended the fourth quarter of 2024 with a strong cash position of approximately $862 million. This financial stability, combined with the anticipated cost savings, is expected to provide the company with a cash runway into the first half of 2027.

The company also announced the retirement of its Chief Scientific Officer, Laura Sepp-Lorenzino, Ph.D., effective December 31, 2025, and the promotion of Birgit Schultes, Ph.D., to Executive Vice President and Chief Scientific Officer, effective January 13, 2025. Dr. Schultes brings over 20 years of experience in drug development and biotechnology to her new role.

Intellia's focus on NTLA-2002 and nex-z reflects its strategy to transition from a late-stage development company to a commercial-ready organization by the end of 2026. The company aims to drive focused clinical execution to complete or accelerate enrollment in pivotal studies and advance commercial readiness by implementing core commercialization and medical capabilities for initial U.S. launch.

John Leonard, M.D., President and Chief Executive Officer of Intellia, emphasized the progress made in 2024 and the company's commitment to addressing unmet patient needs despite the challenging market environment. The company's strategic priorities for 2025 aim to position Intellia for significant, near-term value creation and a successful transition to commercial operations.

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Source: Investing.com