Precision BioSciences DTIL is a clinical-stage company leveraging its novel ARCUS genome editing platform to develop in vivo gene editing therapies for sophisticated gene edits, including gene insertion, elimination and excision. The company is expected to report its third-quarter 2024 results soon.
The Zacks Consensus Estimate is pegged at a loss of 79 cents per share. The Zacks Consensus Estimate for third-quarter revenues is pinned at $8.5 million.
Let's see how things might have shaped up for the upcoming quarterly release.
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Factors to Consider Regarding DTIL’s Q3 Earnings
In the absence of a marketed product in the company’s commercial portfolio, Precision BioSciences only recognizes collaboration revenues from its partners. DTIL currently collaborates with several pharma companies, including iECURE, Novartis, TG Therapeutics and Caribou Biosciences, across several cell therapy programs through which the company generates periodic milestone revenues.
In late September, Precision BioSciences submitted clinical trial applications across multiple geographies to initiate an early-stage study evaluating its lead gene therapy program, PBGENE-HBV, designed to potentially cure chronic hepatitis B virus (HBV). PBGENE-HBV has a unique mechanism of action that targets the root cause of disease by eliminating cccDNA and inactivating integrated HBV.
Precision BioSciences is also gearing up to submit additional regulatory applications as part of its global phase I regulatory strategy for PBGENE-HBV. The investors can expect an update regarding the final clinical candidate safety data and plans for the early-stage study in the upcoming earnings release.
Year to date, DTIL shares have plunged 22% compared with the industry’s 3.5% decline.
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Precision BioSciences is also currently evaluating PBGENE-PMM, a first-of-its-kind treatment for m.3243 associated mitochondrial disease, in pre-clinical studies. The company anticipates submitting regulatory applications seeking permission to initiate clinical studies on the candidate in 2025. DTIL is expected to provide an update on this program in its third-quarter earnings release.
During the third quarter, the company’s collaboration agreement with Prevail Therapeutics, a subsidiary of Eli Lilly, ended upon which Precision BioSciences is set to regain three pre-clinical gene therapy programs. In the upcoming earnings release, the company is likely to elaborate on plans regarding these returned programs, whether to develop internally and/or through new partners.
Apart from these, updates regarding certain partnered programs are also expected in the upcoming earnings release. DTIL’s partner, iECURE, is currently developing ECUR-506 in an early to mid-stage study to potentially treat neonatal onset ornithine transcarbamylase deficiency. Precision BioSciences, in collaboration with Novartis, is currently developing a custom ARCUS nuclease for patients with hemoglobinopathies, such as sickle cell disease and beta thalassemia.
DTIL’s operating costs in the third quarter of 2024 are likely to have increased compared to the previous quarter due to higher development costs associated with PBGENE-HBV and PBGENE-PMM programs as they continue to advance toward the clinical stage.
DTIL’s Earnings Surprise History
Precision BioSciences beat estimates in three of the trailing four quarters and missed once, delivering an average earnings surprise of 101.82%. In the last reported quarter, the company came up with an earnings surprise of 549.35%.
Earnings Whispers
Our proven model does not predict an earnings beat for Precision BioSciences this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: DTIL has an Earnings ESP of 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at a loss of 79 cents per share.
Zacks Rank: DTIL currently carries a Zacks Rank #3.
Precision BioSciences, Inc. Price and Consensus
Precision BioSciences, Inc. Price and Consensus
Precision BioSciences, Inc. price-consensus-chart | Precision BioSciences, Inc. Quote
Stocks to Consider
Here are some large pharma stocks worth considering from the overall medical sector, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Novo Nordisk NVO has an Earnings ESP of +1.02% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Novo Nordisk have gained 11.9% year to date. NVO beat estimates in three of the last four reported quarters and missed the mark once, delivering an average surprise of 3.18%. NVO is scheduled to report third-quarter results on Nov. 6, before the opening bell.
Pfizer PFE has an Earnings ESP of +2.68% and a Zacks Rank #3 at present.
Shares of Pfizer have gained 0.2% year to date. PFE beat estimates in each of the last four quarters, delivering an average earnings surprise of 69.82%. PFE is slated to report third-quarter results on Oct. 29, before market open.
Regeneron REGN has an Earnings ESP of +2.65% and carries a Zacks Rank #3 at present.
Regeneron’s shares have gained 7.2% in the year-to-date period. REGN beat estimates in three of the last four quarters and missed the mark once, delivering an average earnings surprise of 6.01%. REGN is scheduled to report third-quarter results on Oct. 31, before market open.
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