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Shares of gene editing companies dropped on Friday as Wall Street reacted to Intellia Therapeutics' (NASDAQ:NTLA) plans to lay off 27% of its staff alongside a decision to halt a mid-stage clinical program targeted at a rare genetic disorder.

In October, Intellia reported phase 2 results with NTLA-2002 – which is pitching to become the first approved in vivo CRISPR therapy – saying the results suggested it could offer a "functional cure" for HAE by switching off a gene involved in the potentially life-threatening inflammatory attacks that characterise the disease.

Intellia Therapeutics Inc. is shedding employees and paring down its pipeline as it transforms from a late-stage development biotech to a commercial-ready company by the end of 2026.

Intellia Therapeutics (NASDAQ:NTLA) said it plans to focus its resources on developing drug candidates NTLA-2002 and nex-z and discontinue development of NTLA-3001, which will result in the company cutting around 27% of its workforce.