Gene editing has emerged as a significant trend in the biopharma investment landscape, contributing to transformative treatment possibilities through DNA modification. CRISPR Therapeutics (CRSP) is a standout company in this sector. It offers tremendous growth potential with its proprietary CRISPR gene modification platform and its early-stage clinical therapies pipeline. However, such investments also carry inherent risks, and obtaining a return on investment often requires time.
Despite being down 21% year-to-date, CRISPR Therapeutics is expected to witness growth, thanks to a promising lineup of targeted treatments for blood diseases, cancer, and diabetes. It is a high-risk, high-reward opportunity that could potentially yield significant returns for forward-looking investors.
CRISPER’s Promising Pipeline
CRISPR Therapeutics is a leading gene editing company focused on creating gene-based solutions for serious human diseases using its advanced CRISPR/Cas9 technology. It offers extensive treatment programs for numerous disease areas, including hemoglobinopathies, immuno-oncology, autoimmune diseases, and type 1 diabetes.
The company’s gene-based medicine, CASGEVY, has resulted in durable clinical benefits for more than 100 patients over five years. It is now approved in multiple countries for treating sickle cell disease and transfusion-dependent beta-thalassemia.
Currently, the company runs clinical trials for its next-generation CAR T product candidates, CTX112 and CTX131, which target CD19 and CD70 across various indications, such as treating large B-cell lymphoma. It also conducts trials for other potential candidates for multiple conditions, all based on its gene editing technology.
CRISPR Therapeutics’ Recent Financial Results
The company recently reported its second-quarter results for 2024. Revenue was $517,000, falling significantly short of the anticipated $3.54 million. The company’s R&D expenses were $80.2 million, a reduction from last year’s period due to decreased variable external research and manufacturing costs. The net loss rose from $77.7 million in Q2 2023 to $126.4 million in Q2 2024. Earnings per share (EPS) came in at -$1.49, surpassing analysts’ estimates of $1.52.
The company finished the quarter with cash, cash equivalents, and marketable securities of $2,012.8 million, a noticeable increase from $1,695.7 million at the close of 2023. This upturn in cash position can be attributed to various sources, including a $280.0 million direct offering in February 2024, receipt of $200.0 million from Vertex in connection with the approval of CASGEVY, and positive turnover from employee option exercises and interest income.
What Is the Price Target for CRSP Stock?
The stock has been volatile, sporting a beta of 1.89. It has bounced around over the past year, posting a 2% return. Shares trade at the lower end of the 52-week price range of $37.55 – $91.10 and show negative price momentum, trading below the 20-day (55.67) and 50-day (56.95) moving averages.
Analysts following the company have been cautiously optimistic about the stock. For instance, Needham analyst Gil Blum recently reiterated a Buy rating on the shares with a price target of $84.00, noting the company’s operational progress, financial position, and overall long-term potential.
Based on the recommendations and price targets assigned by 19 analysts, CRISPR Therapeutics is rated a Moderate Buy overall. The average price target for CRSP stock is $74.24, representing a potential 50.50% upside from current levels.
CRSP in Summary
CRISPR Therapeutics is leading the charge with its cutting-edge CRISPR/Cas9 technology. Although its investment landscape is marked by high risk and high reward, taking a long-term perspective reveals a promising pipeline of early-stage clinical therapies from blood diseases to cancer and diabetes. The company’s operational strides, financial standing, and potential for substantial long-term growth make it an attractive option for investors interested in cutting-edge biotechnology.
