Maintaining Hold on Precision BioSciences Pending Clinical Data and Strategic Reassessments

Analyst Kostas Biliouris from BMO Capital maintained a Hold rating on Precision BioSciences (DTIL – Research Report) and keeping the price target at $34.00.

Kostas Biliouris has given his Hold rating due to a combination of factors including the progress of Precision BioSciences’ pipeline programs and the need for clinical data to boost investor confidence. Although the ARCUS technology has shown promise with its unique characteristics, such as its ability to enter mitochondria without the use of guide RNA, the company is still considered a “show me” story by investors. This is because the success of their lead program, PBGENE-HBV, is yet to be determined by clinical data outcomes, which are crucial to improving investor sentiment. The anticipation of IND/CTA filing for this program in 2024 and clinical readouts in 2025 are milestones that investors are closely watching.
Furthermore, while the second pipeline program, PBGENE-PMM, is advancing with potential for regulatory filing in 2025, the discontinuation of a major collaboration with Prevail/LLY has returned assets to Precision BioSciences, leading to strategic reassessments. The company’s financial position, reported to be strong enough to sustain operations into the second half of 2026, provides some stability. However, near-term market volatility and the discontinuation of in vivo assets that delay clinical de-risking contribute to the decision to maintain a Market Perform rating at this time.

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Precision BioSciences (DTIL) Company Description:

Precision BioSciences, Inc. is a biotechnology company, which engages in the development of genome editing technologies. It operates through the Therapeutics and Food segments. The Therapeutics segment focuses on the development of products in the field of immuno-oncology and of novel products outside immuno-oncology to treat human diseases. The Food segment applies ARCUS, the company’s propriety genome editing platform, to develop food and nutrition products through collaboration agreements with consumer-facing companies. The company was founded by Derek N. Jantz, Jeff Smith, and Matthew R. Kane in January 2006 and is headquartered in Durham, NC.