CRISPR (CRSP) Loses 24% YTD: How Should You Play the Stock?

Core Viewpoint - CRISPR Therapeutics (CRSP) has underperformed in the market despite receiving regulatory approval for its gene therapy Casgevy, which is the first CRISPR-based gene-editing therapy approved globally [1][3][11] Company Developments - CRSP's stock has declined 23.6% year-to-date, while the industry has only fallen by 1.7% [1][3] - The company received approval for Casgevy, a one-shot gene therapy for sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT), in the U.S. and Europe [3][4] - Casgevy is expected to provide a new treatment option for approximately 35,000 patients in the U.S. and Europe, with revenue generation anticipated to start in the second half of 2024 [4][5] Partnership Insights - CRISPR has a solid partnership with Vertex Pharmaceuticals, which began in 2015, focusing on gene editing therapies for various conditions [6][7] - The collaboration has expanded to include therapies for cystic fibrosis, Duchenne Muscular Dystrophy (DMD), and Myotonic Dystrophy Type 1 (DM1) [6] - CRISPR is eligible for over $1.3 billion in milestone payments and royalties from therapies developed under this partnership [7] Financial Metrics - CRISPR's shares are trading at a price-to-book (P/B) ratio of 2.05, which is lower than the industry average of 4.58 [8] - Loss estimates for 2024 have slightly improved from $5.65 to $5.61, while 2025 estimates have widened from $4.44 to $4.92 due to increased R&D costs [8][9] Market Position - The approval of Casgevy gives CRISPR an advantage over competitors like Beam Therapeutics and Editas Medicine, which are still in earlier stages of developing their therapies for SCD and TDT [11] - Management is also focusing on in vivo candidates, with two new candidates currently in phase I clinical studies [12]