CRSP's Q3 Loss Narrower Than Expected, Sales Miss Estimates

Core Insights - CRISPR Therapeutics reported a narrower loss of $1.01 per share for Q3 2024, compared to the Zacks Consensus Estimate of a loss of $1.33 and a loss of $1.41 per share in the same period last year [1] - Total revenues were $0.6 million, primarily from grant revenues, significantly missing the Zacks Consensus Estimate of $6.4 million [1] - The company had cash and equivalents of $1.9 billion as of September 30, 2024, down from $2.0 billion as of June 30, 2024 [3] Financial Performance - Research and development expenses decreased by 9% year over year to $82.2 million due to reduced external research and manufacturing costs [2] - General and administrative expenses fell by 5% year over year to $17.4 million [2] - Collaboration expenses were $11.2 million, down 52% year over year, mainly due to delays in reaching the deferral limit on costs related to the Casgevy program [2] Pipeline Developments - CRISPR and Vertex Pharmaceuticals' gene therapy, Casgevy, was approved for sickle cell disease and transfusion-dependent beta thalassemia in late 2023/early 2024 [5] - More than 45 authorized treatment centers have been activated globally since mid-October, with Vertex reporting $2 million in product revenues from Casgevy sales [6] - CRISPR is developing next-generation CAR-T therapies, CTX112 and CTX131, currently in separate phase I/II studies, with preliminary data from CTX131 expected by the end of 2024 [7] Future Plans - Management is exploring additional indications for next-generation candidates and has initiated two new clinical studies for CTX131 and CTX112 [8] - The company is studying its first two in-vivo candidates, CTX310 and CTX320, in separate phase I clinical studies [9] - Plans to expand the in-vivo pipeline with CTX340 and CTX450 are underway, with clinical studies expected to start in the second half of 2025 [10] Market Performance - Shares of CRISPR Therapeutics have declined by 19.5% year-to-date, compared to a 3.8% decline in the industry [3] - The company currently holds a Zacks Rank 2 (Buy) [11]