4. Metagenomi, Inc. (NASDAQ:MGX)
Number of Hedge Fund Investors: 16
Metagenomi, Inc. (NASDAQ:MGX), a company situated in Emeryville, California, was established with the goal of developing a “comprehensive genome editing toolbox” that would aid in the genetic modification of diseases. All of the company’s prospects are currently in the preclinical or discovery stages of development. Metagenomi’s major focus includes liver diseases such as Hemophilia-A, primary hyperoxaluria Type 1, and Transthyretin Amyloidosis.
The company made its IPO on February 9, 2024. Insider Monkey disclosed 16 funds that owned MGX hedge funds in Q1 2024.
After going public in February, Metagenomi has been working on its Hemophilia A program and is in good financial standing, with enough cash on hand to support operations through 2027. The solid financial sheet has $327 million in cash and cash equivalents as of Q1 2024. The company plans to deliver 12-month non-human primate (NHP) durability data from its proof-of-concept study for hemophilia A later this year.
Metagenomi previously published encouraging findings, successfully integrating a functional Factor VIII gene in non-human primates. An important achievement was reached when this integration resulted in clinically meaningful levels of Factor VIII for as long as 4.5 months. The company wants to create a treatment for hemophilia that is more sustainable than BioMarin’s Roctavian, which may lose its effectiveness over a period of 12 to 18 months as a result of transgene deactivation.
Metagenomi is backed by major pharma firms and is well-capitalized. MGX saw significant revenue growth in Q1 2024, rising from $8.66 million to $11.16 million, a 99.45% increase over the same quarter the previous year. MGX had a whopping 160.21% YoY revenue growth from 2022 to 2023.
At major conferences, SGMT showcased their exciting developments in gene editing and hemophilia A. More than 900 base pair gene integrations in human cells and five times better genome targetability were highlighted in Q1 2024. Metagenomi’s CAST technology can execute large-scale DNA-templated integrations, competing against other companies in the long-sequence gene editing domain.
Brian C. Thomas, Chief Executive Officer and Founder of Metagenomi in Q1 2024 earnings call stated:
“Our continued execution in the first quarter of 2024 furthers our mission to develop potentially curative genetic medicines by leveraging our extensive genome editing capabilities,”. “We are excited by the reception of our presentation on our wholly-owned investigational development program in Hemophilia A at the World Federation of Hemophilia World Congress, which demonstrated Factor VIII expression in the therapeutic range in an ongoing NHP study. Furthermore, we see an opportunity to leverage our Hemophilia A program approach as a platform for additional indications requiring large gene integrations. Our updates regarding our base editing systems and RIGS at the American Society of Gene and Cell Therapy Annual Meeting exemplify our leadership in precision genome editing and complex, large genome corrections. In addition, we are thrilled to have recently regained full rights to our base editing and RIGS technology, and we plan to advance these technologies in indications with significant unmet need, such as Alpha-1 antitrypsin deficiency and Wilson’s disease, either on our own or in conjunction with potential partners.”
Despite the resignation of Chief Scientific Officer Luis Borges, H.C. Wainwright maintained a Buy recommendation on Metagenomi, Inc. (NASDAQ:MGX) in July with a $10.00 price objective. The company’s pipeline and financial stability are what motivate H.C. Wainwright to have faith in Metagenomi, highlighting the significance of the impending NHP results. The company also emphasized how Metagenomi’s genome modifications are based on metagenomics studies, highlighting MGX’s extensive genomic alteration toolbox.
On the other hand, once Metagenomi’s collaboration with Moderna (NASDAQ) ended, JPMorgan downgraded the company from Overweight to Neutral and decreased the price objective from $16.00 to $6.00. Notwithstanding this setback, the firm recognized that it was continuing to collaborate with Ionis and other near-term catalysts, but advised caution until more distinct execution capabilities and a clear route to clinical testing were shown.
Overall, the analysts propose a “strong buy” rating. Analysts’ average price goal of $17.83 suggests a potential profit of 392.54% from the current stock price of $3.62.
Investors are keeping a careful eye on Metagenomi’s pipeline advancements and milestones, as seen by the divergent opinions expressed by H.C. Wainwright and JPMorgan.
