Is Editas Medicine Going to $0?
When looking only at the past 12 months, Editas Medicine (NASDAQ: EDIT), a small-cap biotech company, seems to be doing well. The drugmaker's shares have soared by 80% over this period. However, zooming out gives a different picture: Editas Medicine has lost more than 90% of its market value in the past five years. Is the company's recent run sustainable, or will the stock -- whose price is just under $3 -- continue to fall until investors are left with worthless shares?
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Editas Medicine is a clinical-stage biotech. Pre-commercial drugmakers carry higher-than-average risk, as they routinely encounter significant clinical or regulatory roadblocks that sink their stock prices. Further, Editas Medicine specializes in gene editing. Although this technology is showing incredible promise in helping researchers find cures for previously untreatable conditions, it still has a long way to go before widespread adoption by the healthcare community, including health insurance companies that have to foot the bill.
Source Fool.com
