Chardan's Continued Buy Rating on CRISPR Therapeutics Amid Pivotal Clinical Progress and Revised Price Target

In a market where gene-editing pioneers face both scientific and commercial hurdles, CRISPR Therapeutics (NASDAQ: CRSP) has emerged as a standout player, balancing groundbreaking clinical advancements with strategic agility. Despite Chardan Capital's recent reduction of its price target from $82 to $74, the firm has reaffirmed its "Buy" recommendation for CRISPR Therapeutics, citing the company's robust pipeline, regulatory milestones, and competitive positioning in the rapidly expanding genome editing sector. This analysis explores the rationale behind Chardan's stance, evaluates CRISPR's clinical and strategic progress, and assesses the investment appeal of the company in a landscape marked by both promise and volatility.

Clinical Catalysts: Zugo-cel and the Path to Differentiation

CRISPR Therapeutics' most compelling asset remains its allogeneic CAR T-cell therapy, zugocaptagene geleucel (zugo-cel), which has demonstrated transformative potential in both hematologic malignancies and autoimmune diseases. In trials for relapsed or refractory large B-cell lymphoma (LBCL), zugo-cel achieved a 90% overall response rate and a 70% complete response rate (CRR) at the 600 million cell dose, with 67% of patients remaining in complete remission after 12 months. These results position zugo-cel as a formidable contender in the $10 billion+ lymphoma market, particularly as it advances into Phase 2 trials.

The therapy's application in autoimmune diseases further underscores its versatility. For systemic lupus erythematosus (SLE), zugo-cel induced DORIS-defined remission in a patient through Month 6, with no high-grade cytokine release syndrome (CRS) or neurotoxicity observed at the 100 million cell dose. This safety profile, combined with its off-the-shelf nature and CRISPR/Cas9-driven immune evasion, differentiates it from autologous CAR T therapies, which face manufacturing complexity and cost barriers. According to CRISPR's leadership, a collaboration with Eli Lilly to evaluate zugo-cel in combination with pirtobrutinib for aggressive B-cell lymphomas further broadens its therapeutic potential.

Strategic Realignment and Competitive Positioning

CRISPR Therapeutics' decision to discontinue its CD70-targeting CAR T candidate, CTX131, in November 2025, reflects a strategic pivot toward programs with higher long-term value. While CTX131 showed "encouraging" Phase 1 data, the company's focus has shifted to CTX112 (zugo-cel) and other preclinical candidates targeting rare genetic diseases like cystic fibrosis and Duchenne muscular dystrophy. This realignment aligns with its partnership with Vertex Pharmaceuticals, which has provided a strong cash runway and regulatory momentum through the approval of Casgevy-the first CRISPR-based therapy-for sickle cell disease and beta thalassemia.

In the broader gene-editing landscape, CRISPR Therapeutics holds a commanding position. The CRISPR/Cas9 segment, which dominates 55% of the market in 2025, benefits from the company's ex vivo gene therapy expertise and its first-mover advantage with Casgevy. While competitors like Editas Medicine and Intellia Therapeutics are advancing base and prime editing technologies, CRISPR Therapeutics' focus on scalable, off-the-shelf therapies offers a distinct commercial edge. The global genome editing market, projected to grow to $23.7 billion by 2030, provides ample room for expansion, particularly as CRISPR's pipeline matures.

Chardan's Rationale: Balancing Caution and Optimism

Chardan's revised $74 price target, while a 10% reduction from its prior estimate, reflects a recalibration of expectations rather than a loss of confidence. The firm cites CRISPR Therapeutics' third-quarter financials and clinical updates as evidence of its ability to navigate the high-risk, high-reward gene-editing sector. With a market cap of $5.4 billion as of December 2025, the company is trading at a discount to its peers, offering a margin of safety for investors. Chardan also highlights CRISPR's strong cash position-bolstered by Vertex's partnership-as a buffer against the volatility inherent in biotech development.

However, the firm acknowledges risks, including the discontinuation of CTX131 and the competitive pressures from emerging editing technologies. These factors justify the lower price target but do not negate the company's long-term potential, particularly as zugo-cel progresses toward pivotal trials and potential approvals.

Conclusion: A Buy Rating in a High-Stakes Sector

CRISPR Therapeutics remains a compelling investment for those willing to tolerate the inherent risks of gene-editing innovation. Its clinical progress with zugo-cel, strategic focus on scalable therapies, and regulatory milestones position it as a leader in a market poised for explosive growth. While Chardan's revised price target signals caution, the firm's continued "Buy" recommendation underscores confidence in CRISPR's ability to deliver value as it navigates the next phase of development. For investors, the key will be monitoring upcoming data from zugo-cel's Phase 2 trials and the broader adoption of Casgevy, which could catalyze a re-rating of the stock.