CRISPR Therapeutics(US:CRSP)2025-08-04 20:30PART I: FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (unaudited) CRISPR Therapeutics reported a significant increase in net loss for H1 2025, primarily due to a substantial acquired R&D charge, alongside a decrease in cash and a shift to net cash used in operating activities Condensed Consolidated Balance Sheet Data (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $193,618 | $298,257 | | Marketable securities | $1,527,619 | $1,605,569 | | Total Assets | $2,029,711 | $2,242,034 | | Total current liabilities | $104,362 | $87,782 | | Total Liabilities | $318,586 | $309,954 | | Total Shareholders' Equity | $1,711,125 | $1,932,080 | Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $892 | $517 | $1,757 | $1,021 | | Research and development | $69,894 | $80,165 | $142,378 | $156,338 | | Acquired in-process R&D | $96,253 | $— | $96,253 | $— | | Collaboration expense, net | $45,153 | $52,131 | $102,662 | $99,097 | | Loss from operations | ($229,324) | ($151,260) | ($377,748) | ($291,848) | | Net loss | ($208,549) | ($126,408) | ($344,545) | ($242,999) | | Net loss per share — basic | ($2.40) | ($1.49) | ($3.98) | ($2.92) | Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($167,827) | $14,170 | | Net cash provided by (used in) investing activities | $50,222 | ($224,705) | | Net cash provided by financing activities | $12,846 | $305,468 | | (Decrease) increase in cash | ($104,638) | $94,924 | - The company's May 2025 collaboration with Sirius Therapeutics resulted in a $96.3 million charge for acquired in-process research and development, comprising a $25.0 million upfront cash payment and $71.3 million in common shares issued to Sirius83119 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management attributes the increased net loss in Q2 and H1 2025 primarily to the $96.3 million acquired R&D expense, while maintaining a strong liquidity position expected to fund operations for at least 24 months Overview of Business and Programs CRISPR Therapeutics develops gene-based medicines across four core franchises, highlighted by the landmark approval of CASGEVY and advancements in CAR T, In Vivo, and siRNA therapies - CASGEVY, the first-ever approved CRISPR-based therapy, has received approvals in the U.S., E.U., Great Britain, and other countries for treating sickle cell disease and beta thalassemia127 - The company is advancing next-generation allogeneic CAR T programs, CTX112 and CTX131, for oncology and autoimmune indications, manufactured at its internal GMP facility130 - In May 2025, the company entered a strategic collaboration with Sirius Therapeutics to jointly develop and commercialize SRSD107, a long-acting siRNA targeting Factor XI for thrombosis139 Results of Operations Net loss significantly increased in Q2 and H1 2025, primarily due to a $96.3 million acquired R&D charge, despite a decrease in R&D expenses Comparison of Results (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Loss | ($208,549) | ($126,408) | ($344,545) | ($242,999) | | R&D Expenses | $69,894 | $80,165 | $142,378 | $156,338 | | Acquired In-process R&D | $96,253 | $— | $96,253 | $— | | Collaboration Expense, Net | $45,153 | $52,131 | $102,662 | $99,097 | - The $96.3 million acquired in-process R&D expense in Q2 2025 is entirely attributable to costs from the Sirius Agreement168177 - The decrease in R&D expenses for Q2 2025 was primarily driven by a $7.6 million reduction in employee-related expenses and a $2.8 million decrease in sublicense and license fees167169 Liquidity and Capital Resources The company maintains a strong liquidity position with $1.72 billion in cash and equivalents, expected to fund operations for at least 24 months, supplemented by recent ATM offering proceeds - The company holds $1,721.2 million in cash, cash equivalents, and marketable securities as of June 30, 2025181 - Existing cash is expected to fund operating expenses and capital expenditures for at least the next 24 months190 - From June 30, 2025, through the report's filing date, the company sold an additional 2.3 million shares under its ATM program for aggregate proceeds of $130.7 million185 Item 3. Quantitative and Qualitative Disclosures about Market Risk The company assesses its exposure to market risks, including interest rates and foreign currency, as not material due to conservative investment strategies - The company does not believe it has material exposure to interest rate risk due to its conservative investment portfolio203 - Exposure to foreign currency exchange rate risk, primarily Swiss Franc and British Pound, is not considered material, and no hedging transactions have been engaged204 Item 4. Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025207 - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025208 PART II: OTHER INFORMATION Item 1. Legal Proceedings The company reports no pending claims or actions likely to have a material adverse effect on its business, with no material developments since the last annual report - There are currently no claims or actions pending against the company that management believes are likely to have a material adverse effect on the business209 Item 1A. Risk Factors No material changes to the company's previously disclosed risk factors have occurred since the Annual Report for FY2024 and the Q1 2025 Quarterly Report - No material changes to risk factors have occurred since the company's Annual Report for FY2024 and the Quarterly Report for Q1 2025211 Item 5. Other Information CEO Samarth Kulkarni adopted a Rule 10b5-1 trading plan on June 10, 2025, for the potential sale of up to 75,000 common shares - On June 10, 2025, CEO Samarth Kulkarni adopted a Rule 10b5-1 trading plan for the sale of up to 75,000 common shares, active through March 31, 2026215