NTLA Declines 67% in a Month: Should You Buy, Sell or Hold the Stock?

Shares of Intellia Therapeutics NTLA have witnessed a sharp decline in the past month, primarily due to a regulatory setback faced with one of its lead in vivo candidates, nex-z (formerly known as NTLA-2001), as well as the mixed third-quarter earnings results. The stock has plunged 67.3% in a month against the industry’s rise of 7.3%. NTLA’s shares have also underperformed the sector and the S&P 500 index in this timeframe, as seen in the chart below.

NTLA Underperforms Industry, Sector & the S&P 500 Index

On Nov. 6, Intellia reported mixed third-quarter results, beating estimates for earnings while missing the same for revenues. However, much of the share price decline can be attributed to the recent pipeline setback faced with nex-z, which has been developed in collaboration with Regeneron Pharmaceuticals REGN.

Nex-z is being evaluated in two late-stage studies, MAGNITUDE and MAGNITUDE-2, for ATTR amyloidosis with cardiomyopathy (ATTR-CM) and ATTR amyloidosis with polyneuropathy (ATTRv-PN), respectively.

While NTLA is the lead party in the deal for nex-z, REGN shares 25% of the development costs and commercial profits. The company’s top-line currently comprises only collaboration revenues from its partners, like Regeneron and others.

Let’s explore Intellia’s fundamentals to better understand how to play the stock amid the recent share price decline.

Pipeline Progress, a Key Focus Area for NTLA

One of Intellia’s lead candidates, nex-z, a CRISPR-based gene-edited therapy, holds great potential.

However, the company faced a major hurdle last month when the FDA placed a clinical hold on its phase III MAGNITUDE and MAGNITUDE-2 studies for ATTR-CM and ATTRv-PN, respectively. So far, Grade 4 liver enzyme elevations have been observed in under 1% of the MAGNITUDE study patients and none in the MAGNITUDE-2 study.

With the clinical hold in place, Intellia has suspended its milestone guidance for nex-z and will provide an update once a regulatory path forward is established. The company is presently working with investigators and regulators to understand the issue and develop additional risk-mitigation strategies.

Importantly, the collaboration with REGN for nex-z is a boost for Intellia, as it provides the latter with resources to support the development of the candidate.

However, the development setback has cast a doubt on the candidate’s long-term safety heading into the new year.

Moreover, the regulatory setback faced in the case of nex-z has also cast a doubt on the near-term outlook for Intellia's other in vivo candidate, lonvo-z, which is being developed for the treatment of hereditary angioedema (“HAE”).

Intellia has completed enrolling patients in the pivotal phase III HAELO study evaluating lonvo-z for treating HAE. The company expects to share top-line data from the same by mid-2026.

A successful data readout from the HAELO study lonvo-z can become a major catalyst for Intellia stock in 2026.

The company remains on track to submit a potential biologics license application for NTLA-2002 in HAE in the second half of 2026.

Competition in the Target Market, a Concern for NTLA

Intellia’s pipeline of innovative CRISPR-based therapies holds promise. However, upon successful development and potential approval, the candidates are likely to face competition from other therapies that are also being developed using CRISPR/Cas9 gene editing technology to address various diseases in specific areas.

CRISPR Therapeutics CRSP is the first and only company in the world to market a CRISPR/Cas9-based therapy. The company’s one-shot gene therapy, Casgevy, was approved in late 2023 and early 2024 across the United States and Europe for two blood disorder indications — sickle cell disease (“SCD”) and transfusion-dependent beta-thalassemia (“TDT”).

CRSP has developed Casgevy in partnership with large biotech, Vertex Pharmaceuticals, which is responsible for the therapy’s global development and commercialization. Vertex recorded $61.5 million in Casgevy revenues in the first nine months of 2025.

Meanwhile, Beam Therapeutics BEAM is developing its genome-editing candidate, BEAM-101, in the phase I/II BEACON study for treating SCD.

Beam Therapeutics is also developing in vivo therapies in early to mid-stage studies targeting AATD-associated liver disease and glycogen storage disease Ia indications.

NTLA’s Valuation and Estimate Revision

From a valuation standpoint, Intellia is trading at a discount to the industry. Going by the price/book ratio, the stock currently trades at 1.15 times trailing 12-month book value, lower than 3.28 times for the industry. The stock is trading below its five-year mean of 2.94.

The Zacks Consensus Estimate for Intellia’s 2025 loss per share has narrowed from $4.14 to $4.00 over the past 30 days. Loss per share estimates for 2026 have also narrowed from $4.10 to $3.61 during the same time frame.

How to Play NTLA Stock?

Though Intellia’s recent price decline has been concerning, a successful data readout from the ongoing studies on its gene-therapy candidate, lonvo-z, should help the stock bounce back and drive upward momentum while meeting investors’ expectations.

We would suggest investors retain this Zacks Rank #3 (Hold) stock for now. The fact that it is trading at a discount compared with the industry and the declining loss estimates are likely to keep investors optimistic. Any positive data announcement from the ongoing studies may provide an impetus to the stock.

However, the recent setback, faced with nex-z, has resulted in negative sentiment around the stock. Successful risk-mitigation strategies and a potential positive update on the regulatory path forward for nex-z may result in a rebound in the upcoming days.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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