Intellia Therapeutics Intrinsic Stock Value – Intellia Therapeutics’ Cash Burn Rate Under Scrutiny: What It Means for the Biotech Company
September 10, 2024

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Intellia Therapeutics ($NASDAQ:NTLA) is a biotechnology company that focuses on developing gene editing therapies to treat genetic diseases. The company has been making significant progress in its research and development efforts, with multiple clinical trials underway and strategic partnerships with larger pharmaceutical companies.
However, amidst all the excitement and potential for groundbreaking treatments, there is one crucial aspect that has caught the attention of investors and analysts – the company’s cash burn rate. This metric refers to the rate at which a company is spending its cash reserves and is often used as an indicator of its financial health. Currently, Intellia Therapeutics has a substantial amount of cash on hand, thanks to recent public offerings and partnerships. However, the concern lies in how quickly the company is using up this cash to fund its operations and clinical trials. In the biotech industry, where success often hinges on the results of clinical trials, having a high cash burn rate can be risky. Failure in a trial can result in a significant loss of funds and potentially jeopardize the company’s future operations. As such, investors are closely monitoring Intellia’s cash burn rate, looking for signs of effective cost management and progress in its research. To address these concerns, Intellia has been taking steps to reduce its cash burn rate. The company recently announced a restructuring plan to focus on its core programs and reduce operational expenses. In conclusion, while Intellia Therapeutics has shown promising potential in the field of gene editing, its cash burn rate remains a key factor to watch. With its current efforts to reduce expenses and generate additional funds through partnerships, the company will need to strike a delicate balance between funding its research and maintaining its financial stability. Ultimately, how effectively Intellia manages its cash burn rate will play a crucial role in determining its long-term success as a biotech company.
Share Price
INTELLIA THERAPEUTICS, a leading biotech company, has recently come under scrutiny for its cash burn rate. On Friday, the company’s stock opened at $21.0 and closed at $19.72, dropping by 5.78% from the previous closing price of $20.93. This decline in stock value has raised concerns among investors and analysts about the financial health of the company. The term “cash burn rate” refers to the rate at which a company is using up its available cash reserves to fund its operations. It is an important metric used by investors to assess a company’s financial stability and sustainability. A high cash burn rate can indicate that a company is spending more money than it is generating, which can be a cause for concern. For INTELLIA THERAPEUTICS, the drop in stock value and scrutiny over its cash burn rate stem from the company’s recent announcement of its second-quarter financial results. This has led to questions about the company’s spending and its ability to turn a profit in the near future. The company is competing with other biotech giants in the field of gene editing, such as CRISPR Therapeutics and Editas Medicine. As these companies continue to make progress in their research and development efforts, investors may be questioning whether INTELLIA THERAPEUTICS will be able to keep up and maintain its market position.
However, it is important to note that a high cash burn rate does not necessarily mean that a company is in financial trouble. Biotech companies often have high cash burn rates due to the costly nature of their research and development efforts. This is especially true for companies like INTELLIA THERAPEUTICS, which focuses on cutting-edge gene editing technology. While a high cash burn rate can be a cause for concern, it is important to consider the nature of the biotech industry and the potential for long-term growth. Investors will be closely watching the company’s future financial reports to see if INTELLIA THERAPEUTICS can effectively manage its cash reserves and turn a profit in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Intellia Therapeutics. More…
| Total Revenues | Net Income | Net Margin |
| 36.27 | -481.19 | -1326.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Intellia Therapeutics. More…
| Operations | Investing | Financing |
| -394.09 | -31.35 | 130.32 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Intellia Therapeutics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.3k | 250.81 | 11.29 |
Key Ratios Snapshot
Some of the financial key ratios for Intellia Therapeutics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -14.5% | – | -1420.5% |
| FCF Margin | ROE | ROA |
| -1124.9% | -30.9% | -24.8% |
Analysis – Intellia Therapeutics Intrinsic Stock Value
As a team at GoodWhale, we have conducted a thorough analysis of the fundamentals of INTELLIA THERAPEUTICS and have come to some key conclusions. Based on our research, we have determined that the fair value of INTELLIA THERAPEUTICS stock is approximately $58.4. This calculation was made using our proprietary Valuation Line, which takes into account various fundamental factors such as earnings, cash flow, and industry trends. It’s important to note that, currently, INTELLIA THERAPEUTICS stock is trading at $19.72. This means that the stock is undervalued by a significant margin of 66.2%. This presents a potential opportunity for investors to purchase the stock at a discounted price. Our analysis also looked at other key aspects of INTELLIA THERAPEUTICS, such as their financials and market position. We found that the company has a strong financial standing and a promising pipeline of products in the gene editing space. Additionally, they have established partnerships with major pharmaceutical companies, which could lead to future growth opportunities. In conclusion, our analysis suggests that INTELLIA THERAPEUTICS stock is currently undervalued and presents a potential buying opportunity for investors. However, as with any investment, it’s important to carefully consider all factors and do thorough research before making any decisions. We hope our analysis has provided valuable insights for those interested in INTELLIA THERAPEUTICS and its potential for growth. More…

Peers
The company was founded in 2014 and is based in Cambridge, Massachusetts. Intellia has developed a platform that can be used to edit genes in a variety of cells and tissues. The company is also working on developing CRISPR-based treatments for diseases such as cancer and HIV. Intellia’s main competitors are CRISPR Therapeutics AG, Regeneron Pharmaceuticals Inc, and Editas Medicine Inc.
– CRISPR Therapeutics AG ($NASDAQ:CRSP)
Crispr Therapeutics AG is a biopharmaceutical company that focuses on the development of CRISPR/Cas9-based therapeutics for serious diseases. The company’s market cap as of 2022 is 4.28B and its ROE is -18.27%. Crispr Therapeutics AG was founded in 2013 and is headquartered in Zug, Switzerland.
– Regeneron Pharmaceuticals Inc ($NASDAQ:REGN)
Regeneron Pharmaceuticals Inc is a global biopharmaceutical company that discovers, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions. The company’s products include EYLEA, Praluent, Dupixent, Libtayo, and Kevzara. As of 2021, the company had a market cap of $80.72 billion and a return on equity of 19.7%. Regeneron was founded in 1988 and is headquartered in Tarrytown, New York.
– Editas Medicine Inc ($NASDAQ:EDIT)
Editas Medicine Inc is a genome editing company based in Cambridge, Massachusetts. The company uses a technology called CRISPR to edit genes in order to treat genetic diseases. As of 2022, Editas Medicine Inc has a market cap of 886.02M and a Return on Equity of -23.75%. The company’s focus on genome editing makes it a leader in the field, and its market cap and ROE reflect this.
Summary
Intellia Therapeutics‘ cash burn rate is a key aspect to keep an eye on for investors. This refers to the amount of money the company is spending each month without generating any profits. Additionally, on the day that the stock price moved down, it is important for investors to consider the reasons behind this change in value. Overall, monitoring Intellia Therapeutics’ cash flow and stock price can provide valuable insights for investors looking to make informed decisions about their investments in the company.
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