Why Prime Medicine Stock Is Soaring Today

Shares of Prime Medicine (NASDAQ: PRME) are surging on Thursday. The gene-editing company's stock gained 10.5% as of 2 p.m. ET and was up as much as 17% earlier in the day. The move up comes as the S&P 500 and Nasdaq Composite gained 0.4% and 0.7%, respectively.

The clinical-stage biotech unveiled a promising new preclinical program targeting a serious disorder of the lungs and liver.

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New gene-editing program revealed

Prime Medicine announced yesterday a new preclinical program for treating alpha-1 antitrypsin deficiency (AATD), a genetic disorder affecting lung and liver function. The announcement included plans to file an Investigational New Drug Application or Clinical Trial Application with the FDA by mid-2026.

Prime's universal liver lipid nanoparticle (LNP) technology is at the cutting edge of gene therapy. It will be used to edit the SERPINA1 gene, which when mutated is responsible for the condition.

Investors are reacting to the expectations of trials beginning by 2026 as well as compelling early data presented by the company in the release.

It is still early

Though the announcement brings some excitement, Prime Medicine is still a clinical-stage biotech company with substantial development risks ahead. A lot can go wrong in the course of developing new therapies. Even if it all goes according to plan, commercialization is years down the line and there is no guarantee another company won't beat it to the punch.

However, the company does have a portfolio of therapies further along in the pipeline and it does have impressive proprietary technology. If you are an investor with a high risk tolerance, Prime could be an interesting addition to your portfolio.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.