Biotech Breakouts: Why CRISPR Therapeutics and Viking Therapeutics Are High-Conviction Growth Bets

The mid-cap healthcare sector has long been a fertile ground for innovation, offering investors a unique blend of disruptive potential and manageable risk. In 2025, two names stand out as particularly compelling: CRISPR Therapeutics (CRSP) and Viking Therapeutics (VKTX). Both companies are navigating the high-stakes world of gene editing and metabolic disease therapeutics, respectively, with clinical and financial milestones that suggest they could deliver outsized returns for risk-adjusted growth. This analysis delves into their recent progress, competitive positioning, and the risks that must be managed to unlock their full potential.

CRISPR Therapeutics: Gene Editing's Next Frontier

CRISPR Therapeutics has emerged as a leader in the gene-editing space, leveraging its CRISPR-Cas9 platform to tackle diseases with unmet medical needs. The company's recent updates underscore its momentum. In Q1 2025, CTX310™, its lipid nanoparticle-based therapy targeting ANGPTL3, demonstrated dose-dependent reductions of up to 82% in triglycerides and 81% in LDL cholesterol in Phase 1 trials according to the company. These results position CTX310 as a potential blockbuster in the $100 billion lipid-lowering market, where current therapies like PCSK9 inhibitors fall short for many patients.

Meanwhile, Casgevy (exa-cel), its first-in-class gene therapy for hemoglobinopathies, continues to gain traction. As of September 2025, 39 patients had received infusions at authorized centers, with nearly 300 referrals according to the company. While the therapy's high cost and complex administration remain barriers, its transformative potential for sickle cell disease and beta thalassemia cannot be ignored.

Financially, CRISPR is in a strong position. The company ended Q3 2025 with $1.9 billion in cash and equivalents, providing a runway to advance its pipeline without immediate dilution according to the company. However, the biotech sector faces headwinds, including reduced venture capital investment and rising clinical trial costs as research shows. CRISPR's ability to scale its platform and diversify its pipeline-through programs like CTX112 for autoimmune diseases-will be critical to sustaining growth.

Viking Therapeutics: A High-Stakes Play in Obesity

Viking Therapeutics is betting big on VK2735, its dual GLP-1/GIP agonist for obesity and type 2 diabetes. The Phase 3 VANQUISH-1 trial, which enrolled 4,650 patients, has completed enrollment and is evaluating weight loss across three dose arms according to the company. Early Phase 2 data showed 12.2% body weight reduction in the highest-dose oral formulation, albeit with higher discontinuation rates as reported. The subcutaneous version, now in Phase 3, is seen as Viking's best shot to compete with market leaders like Eli Lilly's semaglutide and Novo Nordisk's Wegovy.

Financially, Viking's story is more precarious. The company reported a $0.81 per share loss in Q3 2025, driven by a 294% surge in R&D expenses to $90 million according to the company. Despite this, it maintains a $715 million cash balance, which should fund operations through 2026 according to financial reports. Analysts remain bullish, with a "Buy" consensus (50% "Strong Buy," 36% "Buy") and a $87.07 price target according to forecasts.

The obesity market is a $157 billion opportunity by 2029 as market analysis indicates, but Viking faces intense competition. Pfizer's $4.9 billion acquisition of Metsera and Amgen's MariTide program highlight the sector's consolidation as reported. Viking's small size and reliance on late-stage data make it a high-risk, high-reward play. However, its subcutaneous formulation of VK2735 could differentiate it if it demonstrates superior efficacy or tolerability.

Risk-Adjusted Growth: Balancing Potential and Peril

Both companies operate in high-risk, high-reward spaces. For CRISPR, the key risks include regulatory hurdles for gene therapies and delivery challenges in lipid nanoparticle systems as research shows. Viking, meanwhile, must navigate adverse events in its oral formulation and intense competition from pharma giants as reported.

Yet, both have mitigating factors. CRISPR's $1.9 billion cash runway and diversified pipeline reduce reliance on any single asset. Viking's $715 million liquidity and positive Phase 3 enrollment suggest it can withstand near-term volatility. Analysts also highlight Viking's "Buy" consensus and CRISPR's positive clinical data as tailwinds according to company updates.

Conclusion: High-Conviction Bets for the Long Term

CRISPR Therapeutics and Viking Therapeutics represent two sides of the same coin: innovative mid-cap biotechs with transformative pipelines and manageable financial risks. CRISPR's gene-editing prowess and Viking's obesity play are both positioned to capitalize on multi-billion-dollar markets, albeit with distinct risk profiles. For investors willing to tolerate short-term volatility, these names offer compelling upside in a sector where breakthroughs can redefine industries.

As always, the devil is in the details. CRISPR must prove its therapies can scale beyond rare diseases, while Viking needs to demonstrate that VK2735's subcutaneous formulation can outperform incumbents. But for those with a long-term horizon and a tolerance for risk, the potential rewards are substantial.