CRISPR Therapeutics’ stock has surged this year as the biotech company awaits potential regulatory approval for its groundbreaking gene-editing treatments.
CRISPR Therapeutics, a leading biotech company, is on the cusp of a major milestone: potential regulatory approval for its first-ever product. With the U.S. Food and Drug Administration (FDA) set to make decisions on exa-cel for sickle cell disease and beta thalassemia, excitement surrounding the company has propelled its stock to new heights. Despite a decline in previous years, CRISPR Therapeutics’ stock has soared by 64% in 2023, offering substantial gains to early investors. But what lies ahead for this gene-editing pioneer?
A Rollercoaster Ride to Success
The journey for CRISPR Therapeutics’ stock has been anything but smooth. Starting the year on a positive note, the stock experienced setbacks during the summer months before rebounding in November. Investors who weathered the storm and embraced a long-term investment strategy would have seen their initial $5,000 investment grow to $8,200 today. However, with the potential for slower growth in the future and the possibility of approval news already factored into the stock price, investors may be wondering if it’s time to cash in their gains.
Earnings Growth and Future Catalysts
While regulatory approvals can boost stock prices in the short term, sustained growth depends on earnings growth. CRISPR Therapeutics’ potential for future revenue growth lies in its gene-editing technology, with exa-cel as a prime example. Recently authorized in the U.K. as Casgevy, exa-cel represents the first-ever CRISPR-based treatment to receive regulatory approval. This milestone signifies a significant step forward for the entire field of gene editing and bodes well for CRISPR Therapeutics’ future prospects.
In the U.S., an FDA advisory committee has already indicated the potential benefits of exa-cel, providing a positive signal ahead of the regulatory decision. Though the treatment process is lengthy and may not be suitable for all patients, exa-cel offers a potential functional cure for sickle cell disease and beta thalassemia, addressing a significant unmet medical need. Analysts project that exa-cel could generate revenue of $1.7 billion by 2028, underscoring its market potential.
Diversified Revenue Streams and Collaborations
CRISPR Therapeutics’ revenue streams extend beyond its gene-editing treatments. The company has entered into partnerships, such as the $100 million deal with Vertex Pharmaceuticals, which includes upfront payments, milestone payments, and royalties. These collaborations not only provide immediate financial benefits but also pave the way for future revenue growth.
Furthermore, CRISPR Therapeutics is not solely reliant on exa-cel. The company’s immuno-oncology candidate, CTX-110, is also nearing commercialization, potentially diversifying its product portfolio and revenue streams. With multiple avenues for growth, CRISPR Therapeutics is positioning itself as a key player in the gene-editing industry.
CRISPR Therapeutics’ stock has experienced a remarkable turnaround this year, driven by the anticipation of potential regulatory approvals for its gene-editing treatments. While short-term gains may have already been priced into the stock, the company’s focus on long-term earnings growth and its pipeline of innovative treatments offer promising prospects. As CRISPR Therapeutics enters a new phase as a commercial-stage company, investors may find value in holding onto this gene-editing stock for the long term.