Crisper Therapeutics (CRSP) (Biotech) $48 High Risk/High Reward,
Buy if you have the appetite for gene therapies or biotech companies.
- Among the gene therapy/biotech companies, Crisper started with the most promise even reaching $199 at its peak. In a risky segment, Crisper has a better chance than most of its peers.
- Positives
- Cautious optimism following FDA approval for gene therapy targeting sickle cell disease.
- Financial health of CRISPR is strong, with over 5 years of cash runway, but stock performance has lagged behind S&P 500 returns – stagnant, but in this industry its usually negative.
- CRISPR’s partnership with Vertex Pharmaceuticals mitigates some operational risks associated with gene therapy.
- Extensive pipeline including regenerative medicines (e.g., diabetes), in vivo approaches, immuno-oncology, and autoimmune targets
- Negatives
- Given the uncertainties, CRISPR Therapeutics stock may not get a decent valuation till commercial success is evident.
- Establishing niches in chronic and complex indications such as lupus appears to be a challenging task.
- Q2 2024 earnings revealed slow commercialization of Casgevy, with revenues significantly below expectations.