CRISPR Therapeutics: A Hidden Gem in Cathie Wood's Portfolio

In the rapidly evolving world of biotechnology, one company has caught the attention of renowned investor Cathie Wood and Wall Street analysts alike: CRISPR Therapeutics. Despite a recent 54% gain in stock price, CRISPR Therapeutics (CRSP) remains a beaten-down biotech stock with significant upside potential. Let's delve into the reasons why Cathie Wood loves this biotech stock and explore the potential for it to soar more than 65% in the coming months.

CRISPR Therapeutics is a biotech company that has developed a revolutionary gene-editing technology with the potential to transform lives. The company's most advanced programs are in phase 2 clinical trials, targeting beta-thalassemia, sickle cell disease, and transthyretin (ATTR) amyloidosis. GlobalData estimates that the ATTR amyloidosis market alone could reach $11 billion by 2029, presenting a substantial opportunity for CRISPR Therapeutics.



CRISPR Therapeutics' gene-editing technology has the potential to revolutionize drug discovery and development, reducing time and costs. As the first company to commercialize a CRISPR-based therapy, CRISPR Therapeutics is at the forefront of this innovation. Its strategic partnership with Vertex Pharmaceuticals for Casgevy, a functional cure for beta thalassemia and sickle cell disease, is expected to drive revenue growth. With its expertise in gene editing, CRISPR Therapeutics is well-positioned to capitalize on new opportunities and collaborations, driving long-term growth.



Cathie Wood's investment in CRISPR Therapeutics comes with a unique revenue-sharing agreement. CRISPR and Vertex Pharma have a 60:40 profit split deal, where CRISPR receives 60% of profits from Casgevy. This arrangement allows CRISPR to leverage Vertex's commercial infrastructure, reducing its upfront costs. However, Vertex takes 60% of the profit, which slows CRISPR's immediate revenue growth. As of Q1 2024, CRISPR's revenue was $43.1 million, with a net loss of $112.4 million. The profit-sharing agreement affects CRISPR's immediate revenue growth trajectory, but the long-term potential of its gene-editing technology remains promising.

The complexity of the Casgevy treatment process, involving stem cell collection and multiple steps, slows its adoption rate compared to simpler treatments like pills. This complexity also means revenue growth takes time, with only 45 centers activated and 40 patients treated so far. Despite this, CRISPR Therapeutics' partnership with Vertex leverages their commercial infrastructure, and the one-time functional cure nature of Casgevy could lead to significant long-term growth.

Upcoming catalysts for CRISPR Therapeutics include the progress of its Casgevy launch and updates from its pipeline. Casgevy is the company's first approved therapy, which has the potential to transform the lives of patients with beta thalassemia and sickle cell disease. As the rollout of the therapy continues, revenue growth is expected to follow. Additionally, CRISPR Therapeutics has several clinical trials ongoing for its CAR T candidates, which could lead to functional cures for specific diseases. The company's pipeline also includes a gene-editing candidate for the treatment of type 1 diabetes, which has the potential to revolutionize the market.

In conclusion, CRISPR Therapeutics (CRSP) is a biotech company with impressive technology and a promising pipeline. Despite a recent stock price gain, the company still presents an opportunity for investors. Cathie Wood's confidence in the company, along with Wall Street's prediction of a potential 65% increase in the stock price, suggests that the company's prospects are promising. Investors who follow Cathie Wood's lead and buy into the company at its current price may benefit significantly in the long run.