CRISPR Therapeutics (CRSP) stock has been pushing downwards in recent weeks, taking it near a 52-week low. The stock’s fall likely reflects the broader selloff and rotation away from technology stocks. This dip could present a buying opportunity at a discounted price.
I’m still bullish on CRISPR because of its market-leading portfolio of gene-editing therapies and first-to-market position in the treatment of sickle cell disease (SCD), though I do accept that there are challenges ahead.
CRISPR Therapeutics’ Updates
At the Jefferies 2024 Global Healthcare Conference in June, we learned that five patients had their cells collected to be treated with CASGEVY, the world’s first approved gene therapy, and that 25 of 75 treatment centers had been opened worldwide. In May, we heard that several patients had gone through cell collection. While no one expected quick progress, the lack of shared data about CASGEVY’s development has raised more questions about the therapy’s market prospects.
Some of the concerns are about how many people will use the treatment. Right now, gene therapy is a big and sometimes painful process for patients.
The Gene Therapy Process
First, patients need to find a treatment center that can provide the gene therapy. Then, with CASGEVY, patients have to have their cells collected and sent to a special facility where the gene editing happens.
This isn’t a simple process. It starts with about two months of blood transfusions to reduce sickle cells in the patient’s blood. Next, patients take medication to move blood stem cells from their bone marrow into the bloodstream, where a machine filters them out.
The lab work involves precise genetic manipulation that takes up to six months. Fortunately, patients don’t need regular visits to treatment centers during this time.
Once the gene editing is done, the modified cells are reintroduced into the patient’s body. This requires hospitalization, chemotherapy to remove old stem cells, and close medical supervision.
Eventually, the patient receives the edited cells through an infusion. After a few more weeks in the treatment center, they can hopefully return home with a functional cure for their debilitating illness.
Given the magnitude of this undertaking, it’s likely that only those suffering from the most severe forms of SCD would elect to take the treatment. This is why this current period is so important for gaining insights into adoption, as any early gains are likely to compound.
Despite the challenges, trial data is very positive, and demand will likely grow over time. The treatment has already been life-changing for nearly 30 people.
Is CRISPR Therapeutics Ahead of the Game?
CRISPR Therapeutics arguably has the most advanced pipeline in the gene editing world, with several therapies including those for the treatment of Type 1 Diabetes and cancers. Successful trial data and regulatory approval of new treatments would, naturally, add to top and bottom line growth prospects.
However, it’s also the case that this is a fast-developing sector of medicine. After all, CRISPR technology was only developed a decade ago. Two notable advancements in gene editing that hold significant promise are base editing and bridge editing. These new technologies could potentially surpass traditional CRISPR methods in terms of precision, safety, and effectiveness.
Difference Between Base Editing and Bridge Editing
Base editing is an advanced gene-editing technique that allows for precise, permanent changes to a single DNA base without causing double-strand breaks. Developed by Dr. David Liu’s team at the Broad Institute and Harvard University, base editors use a modified CRISPR/Cas9 protein that binds to DNA but doesn’t cut it, combined with enzymes that chemically change individual DNA bases. Beam Therapeutics (BEAM) is using this technique, but its SCD treatment is still a few years away.
Bridge editing is a new gene-editing technique that’s gaining attention. Scientists say it can significantly improve on CRISPR. It uses something called bridge RNA, which lets scientists target both the site to be edited and the new gene site at the same time. This is an upgrade over CRISPR, which can only specify the DNA sequence to be cut, not the one to be added.
The main point here is that while CRISPR is currently leading the gene-editing field, it may need to adopt new technologies to stay on top. Even so, CRISPR is in a strong position to commercialize gene editing, with several more therapies potentially getting regulatory approval in the next five years.
Is CRISPR Therapeutics Stock a Buy?
On TipRanks, CRSP is rated as a Moderate Buy based on nine Buys, six Holds, and one Sell assigned by analysts in the past three months. The average CRSP stock price target is $75.13, implying an upside potential of 31.37%.
The Bottom Line On CRISPR Therapeutics Stock
CRISPR Therapeutics is at the forefront of gene editing technology, with the most promising approved treatment worldwide and a highly advanced pipeline. It’s a great chance to invest in a sector that could revolutionize modern medicine. With the stock nearing its 52-week low, I’m certainly bullish.
However, it’s important to note that CRISPR gene editing technology is still relatively nascent. While effective, the treatment is tough on patients. The company may also need to adopt new technological breakthroughs to maintain its leading position in the sector.
