Intellia Therapeutics faced a devastating blow as news emerged of a patient death in a crucial clinical trial, prompting immediate regulatory intervention from the U.S. Food and Drug Administration. The gene therapy company’s stock experienced a catastrophic decline, with market analysts swiftly downgrading their ratings and slashing price targets in response to the severe setback.
Regulatory Halt Follows Patient Death
The FDA imposed a clinical hold on Intellia’s MAGNITUDE and MAGNITUDE-2 studies on October 29, but the situation escalated dramatically when the company disclosed on November 6 that a participant in the Phase 3 MAGNITUDE trial had died. The patient had been hospitalized with serious liver damage after receiving a dose of the experimental gene therapy candidate, nex-z. Medical reports indicated dangerously elevated liver enzymes, classified as a Grade 4 event representing a life-threatening condition.
This development has significantly compromised the regulatory pathway for nex-z, with Intellia now awaiting formal communication from the FDA to determine its next course of action.
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Market Reaction and Analyst Downgrades
Trading activity turned turbulent following the Thursday evening announcement. In pre-market activity on Friday, Intellia shares plummeted 28-29%, crashing from Thursday’s closing price of $12.32 to as low as $9.67 at one point during the session.
Financial institutions responded rapidly to the negative developments. JPMorgan downgraded the equity from Neutral to Underweight while dramatically reducing its price objective from $12 to just $5. RBC Capital maintained its Sector Perform rating but lowered its target from $14 to $9. Similarly, BofA Securities withdrew its buy recommendation and adjusted its price target to $14.
Financial Position Amid Crisis
The company’s quarterly earnings report received minimal attention amid the clinical trial disaster. Intellia posted revenue of $13.8 million against a net loss of $101.3 million. One positive note emerged from the financial disclosures: with $669.9 million in cash reserves, the company maintains operational funding through mid-2027, assuming it can navigate the current crisis successfully.
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