Investors looking for growth opportunities should not overlook CRISPR Therapeutics (NASDAQ:CRSP), a pioneering biotech company with revolutionary gene-editing technology. Despite the recent downtrend in electric vehicle stocks, CRISPR stands out with a unique potential to address genetic disorders, cancer, and various diseases at their root cause, paving the way for potential cures rather than mere symptom management.
CRISPR’s Milestone Achievement: First Approved Product
The stock experienced a 54% surge last year in anticipation of its first approved product. Now, with the FDA’s approval of Casgevy for the treatment of sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT), CRISPR has secured a significant milestone. The approval, originally slated for March, adds to the company’s credibility and growth potential.
Key Highlights of Casgevy’s Approval
Positive Impact on Diseases: Casgevy became the first approved therapy for TDT and SCD, offering a one-time treatment that could potentially transform patients’ lives.
Market Expansion: CRISPR and Vertex, its partner in this venture, are gearing up to make Casgevy available to patients. With authorized treatment centers in the U.S. and Europe, the companies plan to establish 50 centers in the U.S. and 25 in the European Union over time.
Financial Implications: The one-time treatment is expected to cost approximately $2.2 million. With 16,000 eligible patients for SCD treatment and 1,000 for TDT, the partnership with Vertex, including a $200 million milestone payment, positions CRISPR favorably.
Future Growth Prospects and Analyst Sentiment
Despite the recent achievement, CRISPR’s journey to significant revenue and earnings is projected to span several years. However, the company’s pipeline, featuring numerous products undergoing clinical trials, provides a catalyst-rich outlook for the next 12-18 months. CEO Samarth Kulkarni highlights the company’s positioning to address therapeutic areas such as oncology, autoimmune, cardiovascular, and diabetes.
Analysts, on average, have assigned a “moderate-buy” rating to CRSP. The stock has 13 “strong buy” ratings, one “moderate buy,” eight “hold” ratings, and a couple of “sell” recommendations. The average target price of $86.55 suggests a potential upside of 32.7% over the next 12 months.
Long-Term Investment Perspective
With a debt-free balance sheet and approximately $1.9 billion in cash, cash equivalents, and marketable securities, CRISPR is well-equipped to advance its pipeline. The global gene-editing market’s projected growth supports CRISPR’s potential to build investor trust in its capabilities. Long-term investors, drawn to cutting-edge technology in the biotech sector, may find CRISPR one of the best-undervalued growth stocks, especially with the stock still trading 15.2% below its 52-week high.
Conclusion
CRISPR Therapeutics emerges as a promising growth stock with the potential to redefine treatment approaches for various diseases. The recent approval of Casgevy signifies a significant step forward, and while short-term gains may be tempting, holding onto CRISPR stock for the long term could unlock substantial returns. Patient investors willing to wait for the company to reveal its full potential might find the current market conditions an opportune time to initiate a position in this innovative biotech player.
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