The FDA’s decision to lift the clinical hold on Intellia Therapeutics (NTLA) MAGNITUDE-2 study, following protocol changes and safety measures, brings renewed focus to how this gene editing stock may fit into a portfolio.

The FDA news arrives after a mixed stretch for the stock, with a 90 day share price return of 40.14% and a 1 year total shareholder return of 10.93%, set against a 3 year total shareholder return decline of 70.60%.

If the FDA decision has you looking more broadly at gene editing and related themes, it could be a good moment to scan 25 healthcare AI stocks as another way to source potential ideas in this area.

With the clinical hold lifted, a 3 year total return decline of 70.60%, and recent 90 day strength of 40.14%, should you view Intellia as a gene editing stock trading at a discount, or is the market already reflecting expectations for future growth?

Most Popular Narrative: 93.2% Undervalued

With Intellia Therapeutics last closing at $11.87 and the most followed narrative pointing to a fair value of $173.99, the gap between the current price and that narrative view is wide enough to catch most investors’ attention.

Strong Phase 2 Foundation: In the Phase 2 trial, the 50 mg dose (the dose used in Phase 3) achieved an 81% reduction in mean monthly attacks (Weeks 5–16) and a 77% reduction overall. Complete Response Rate: Perhaps most importantly for your "functional cure" assessment, 73% of Phase 2 patients (8 out of 11) in the 50 mg arm were completely attack-free through the primary observation period.

According to lexan99, this valuation story leans heavily on one program, one dosing level, and one set of late stage trial assumptions. Want to see how they connect those clinical results to multi billion sales potential, projected margins, and the kind of future multiple usually reserved for established large caps? The full narrative lays out the numbers tying that $173.99 fair value back to today’s share price.

Result: Fair Value of $173.99 (UNDERVALUED)

However, this story still hinges on successful Phase 3 HAELO data and eventual regulatory decisions, and any setback on either front could quickly undercut that bullish fair value.

Another Angle: Expensive On Sales, Despite DCF Support

The popular user narrative leans on future sales to argue that $11.87 is far below fair value. Yet today Intellia trades on a P/S of 23.9x. That is well above the US Biotechs industry at 11.3x, peers at 9.1x, and a fair ratio of 0x, which points to considerable valuation risk if expectations slip.

Build Your Own Intellia Therapeutics Narrative

If you see the numbers differently or just want to stress test these assumptions yourself, you can build a custom view of Intellia in minutes, Do it your way.

A great starting point for your Intellia Therapeutics research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.