Biotech is an area that may offer your portfolio growth today and earnings stability tomorrow. The idea is a biotech stock might soar as investors bet on the company's cutting-edge technology through its development stages -- and the stock could continue to gain after that company moves into the product commercialization stage.Once biotech products reach the marketplace, biotech companies benefit just like pharma companies from the following: Patients need their treatments regardless of the general economic ...

Shares of CRISPR Therapeutics (CRSP) closed at $40.97 on Tuesday, close to their 52-week low of $36.52.This decline in CRSP stock is mainly due to a lack of pipeline updates, which is not sitting well with investors. Also, the company is yet to record revenues from the sales of its sole-marketed product Casgevy, despite it being approved in early 2024.Shares of CRISPR Therapeutics have plunged 43% in the past year compared with the industry’s 7% decline, as seen in the chart below. The stock has also underp ...

Core Insights - The Motley Fool aims to enhance the financial well-being of individuals by providing investment solutions and market analysis [1] Company Overview - Founded in 1993, The Motley Fool is a financial services company focused on making the world smarter, happier, and richer [1] - The company reaches millions of people monthly through various platforms, including premium investing solutions, free guidance, and market analysis on Fool.com [1] - The Motley Fool also produces top-rated podcasts and operates a non-profit organization, The Motley Fool Foundation [1]

Core Industry Insights - The biotech industry is highlighted as a sector with significant potential for explosive revenue growth and innovative products, alongside AI and quantum computing [1][2] - Companies in biotech focus on cutting-edge technologies like gene editing and messenger RNA, which could lead to substantial long-term returns if their products reach commercialization [2] Company-Specific Analysis 1. Viking Therapeutics - Viking Therapeutics is developing VK2735, a weight loss drug, in both injectable and oral formats, with the injectable version entering phase 3 studies soon [4][5] - The weight loss drug market is projected to exceed $100 billion by the end of the decade, and Wall Street expects Viking's stock to rise by 250% in the next 12 months if clinical trials continue to yield positive results [6] 2. Moderna - Moderna has faced a decline in stock value, losing 65% over the past year, primarily due to decreased demand for its COVID-19 vaccine [7][10] - The company has submitted three candidates for regulatory approval, including a next-generation coronavirus vaccine and a combined flu/coronavirus vaccine, with Wall Street predicting a 68% increase in stock value over the next year [9][10] 3. CRISPR Therapeutics - CRISPR Therapeutics achieved a significant milestone with the approval of its first product, Casgevy, for blood disorders, marking a validation of its CRISPR gene editing technology [12] - The company maintains a strong cash position of approximately $1.9 billion, allowing it to continue developing its pipeline, with Wall Street forecasting an 87% increase in stock value over the next 12 months [14]

Core Insights - CRISPR Therapeutics will present at the TD Cowen 45th Annual Health Care Conference on March 3, 2025, at 10:30 a.m. ET [1] - A live webcast of the presentation will be available on the company's website, with a replay archived for 14 days [2] Company Overview - CRISPR Therapeutics has transitioned from a research-stage company to a leader in gene-based medicines, celebrating the approval of the first CRISPR-based therapy [3] - The company has a diverse portfolio targeting various diseases, including hemoglobinopathies, oncology, regenerative medicine, cardiovascular, autoimmune, and rare diseases [3] - The first CRISPR/Cas9 gene-edited therapy was advanced into clinical trials in 2018 for sickle cell disease and transfusion-dependent beta thalassemia [3] - CASGEVY (exa-cel) received approval in several countries starting in late 2023 for treating eligible patients with these conditions [3] - CRISPR Therapeutics has formed strategic partnerships with leading companies, including Vertex Pharmaceuticals, to enhance its efforts [3] - The company is headquartered in Zug, Switzerland, with R&D operations in Boston, Massachusetts, and San Francisco, California [3]

Core Viewpoint - CRISPR Therapeutics (CRSP) stock surged over 25% in the past week due to strong Q4 2024 results and a rating upgrade from a Wall Street analyst, despite a year-over-year decline in earnings and sales [1][2]. Financial Performance - CRSP's quarterly earnings and sales declined year over year but exceeded estimates significantly [1]. - The company received a major milestone payment from Vertex Pharmaceuticals in the previous year, contributing to the financial context [1]. Product Development and Pipeline - The approval of Casgevy, the first CRISPR-based gene-editing therapy, marks a significant milestone for CRISPR Therapeutics, targeting sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT) [3][4]. - Casgevy offers a new treatment option for approximately 35,000 patients in the U.S. and Europe, with potential benefits in reducing blood transfusion needs and alleviating painful crises [4]. - Over 50 authorized treatment centers have been activated globally, with more than 50 patients undergoing cell collection [5]. Pipeline Advancements - CRSP is developing next-generation CAR-T therapies, including CTX112 and CTX131, with promising preliminary results reported for CTX112 [6][7]. - The company is also exploring in-vivo candidates, CTX310 and CTX320, targeting cardiovascular disease, with plans to expand this pipeline further [9]. Competitive Landscape - CRSP faces competition from other companies utilizing CRISPR technology, such as Beam Therapeutics and Intellia Therapeutics, which are also developing therapies for SCD and TDT [10][12]. Stock Performance and Valuation - CRSP shares have declined nearly 40% over the past year, underperforming the industry and S&P 500, but are currently trading above their 50-day and 200-day moving averages [13][15]. - The company's price-to-book value ratio stands at 2.20, lower than the industry average of 3.22, indicating a valuation discount [16]. Future Outlook - The company has a strong cash balance of approximately $1.9 billion, which supports ongoing operations and late-stage pipeline development [18]. - Estimates for CRISPR's 2025 loss per share have improved recently, indicating a potential positive shift in financial expectations [19].

Core Insights - CRISPR Therapeutics experienced a significant stock price increase of over 9% following the release of its quarterly earnings report, contrasting with a 0.3% decline in the S&P 500 index [1] Financial Performance - For Q4 2024, CRISPR reported revenue of just under $36 million, a substantial decrease from over $201 million in Q4 2023 [2] - The company recorded a GAAP loss of $37 million ($0.44 per share) compared to a profit of $98 million in the same quarter the previous year [2] - Despite the decline in both revenue and profit, the results exceeded consensus analyst estimates, which anticipated revenue of only $7.6 million and a net loss of $1.23 per share [3] Future Outlook - Management indicated that 2024 may be a transitional year for CRISPR, but provided updates that fostered optimism among investors [4] - The company anticipates 2025 to be a "milestone-rich year," with plans for a wider rollout of Casgevy, a treatment for sickle cell disease and transfusion-dependent beta-thalassemia, developed in collaboration with Vertex Pharmaceuticals [5] - CRISPR is also continuing to advance its gene-editing technology to develop effective therapies [5]

Group 1 - CRISPR Therapeutics AG reported a quarterly loss of $0.44 per share, significantly better than the Zacks Consensus Estimate of a loss of $1.15, representing an earnings surprise of 61.74% [1] - The company posted revenues of $35.69 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 252.50%, although this is a decline from $201.21 million in the same quarter last year [2] - Over the last four quarters, CRISPR Therapeutics has surpassed consensus EPS estimates three times, indicating a mixed performance trend [2][6] Group 2 - The current consensus EPS estimate for the upcoming quarter is -$1.43 on revenues of $8.09 million, and for the current fiscal year, it is -$5.25 on revenues of $155.74 million [7] - The Medical - Biomedical and Genetics industry, to which CRISPR Therapeutics belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Regulatory Approvals - CASGEVY became the first-ever approved CRISPR-based gene-editing therapy in 2023, approved in multiple regions including the US and EU for treating eligible patients aged 12 and older with SCD or TDT [599]. Financial Performance - Collaboration revenue for the years ended December 31, 2024, 2023, and 2022 was $35.0 million, $370.0 million, and $0.4 million, respectively, primarily from agreements with Vertex [617]. - Total revenue for 2024 was $37.3 million, down from $371.2 million in 2023, reflecting a decline of $333.9 million [640]. - The net loss for 2024 was $366.3 million, compared to a net loss of $153.6 million in 2023, an increase in loss of $212.6 million [640]. - Other income increased to $103.9 million in 2024 from $71.8 million in 2023, an increase of $32.1 million [640]. - Grant revenue for the year ended December 31, 2024, was $2.3 million, an increase from $1.2 million in 2023 [643]. Expenses - Research and development expenses were $320.7 million in 2024, a decrease of $66.7 million from $387.3 million in 2023 [640]. - General and administrative expenses decreased to $73.0 million in 2024 from $76.2 million in 2023, a reduction of $3.2 million [640]. - Total operating expenses for 2024 were $503.9 million, down from $593.7 million in 2023, representing a decrease of $89.9 million [640]. - Collaboration expense, net, was $110.3 million in 2024, down from $130.3 million in 2023, a decrease of $20.0 million [640]. - Research and development expenses decreased to $320.7 million in 2024 from $387.3 million in 2023, a reduction of approximately 17.2% [644]. - General and administrative expenses were $73.0 million in 2024, down from $76.2 million in 2023, reflecting a decrease of $3.2 million [645]. - Collaboration expense, net, decreased to $110.3 million in 2024 from $130.3 million in 2023, a decline of $20.0 million [646]. Cash and Financing - As of December 31, 2024, the company had $1,903.8 million in cash, cash equivalents, and marketable securities, with an accumulated deficit of $1,366.0 million [649]. - Net cash used in operating activities improved to $142.8 million in 2024 from $260.4 million in 2023 [657]. - Net cash provided by financing activities was $331.9 million in 2024, significantly higher than $62.7 million in 2023 [659]. - The company expects its existing cash and marketable securities to fund operations for at least the next 24 months [663]. - Future contractual payments on operating lease obligations due within one year are $29.4 million, and due greater than one year are $265.2 million [665]. - As of December 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $1,903.8 million, primarily invested in U.S. Treasury securities and government agency securities [669]. Research and Development - The company is advancing several CAR T programs, including CTX112 and CTX131, targeting CD19 and CD70, respectively, with enhanced product profiles and broader patient access [602]. - CTX310 and CTX320 are in vivo programs targeting cardiovascular disease, focusing on ANGPTL3 and Lp(a), respectively, with ongoing clinical trials [607][608]. - The company has established a portfolio of therapeutic programs across four core franchises: hemoglobinopathies, CAR T, in vivo approaches, and type 1 diabetes [596]. - The company is developing gene-edited stem cell-derived therapies for type 1 diabetes, including CTX211, which is in an ongoing clinical trial [610]. - The company has recognized $205 million in revenue from upfront and milestone payments related to its collaboration with Vertex for diabetes therapies [613]. - The company expects to continue incurring research and development costs consistent with its size and stage, potentially increasing as development programs progress [622]. - The company anticipates ongoing general and administrative expenses to support continued research and development activities and potential commercialization of product candidates [624]. Market and Economic Factors - The company does not believe it has a material exposure to interest rate risk, as a 1% change in interest rates would result in an immaterial change in the fair value of its investment portfolio [669]. - The company faces exposure to foreign currency exchange rate movements, primarily with the Swiss Franc and British Pound against the U.S. dollar, but foreign currency transaction gains and losses have not been material to its financial statements [670]. - Inflation has generally increased the company's labor, clinical trial, and manufacturing costs, but it has not had a material effect on the company's business or financial results during the years ended December 31, 2024, 2023, and 2022 [671]. Innovation and Partnerships - The CRISPR-X team is focused on innovating next-generation editing modalities to enhance gene editing capabilities [611]. - The company maintains broad partnerships to develop gene editing-based therapeutics across various disease areas, including collaborations with Vertex and others [612]. - Collaboration revenue decreased to $35.0 million in 2024 from $370.0 million in 2023, primarily due to a $200.0 million milestone in 2023 related to the approval of CASGEVY [642].

Financial Performance - CRISPR Therapeutics has approximately $1.9 billion in cash, cash equivalents, and marketable securities as of December 31, 2024, an increase from $1.7 billion at the end of 2023[16] - The net loss for Q4 2024 was $37.3 million, compared to a net income of $89.3 million in Q4 2023[16] - Total revenue for Q4 2024 was $35.691 million, a decrease of 82.3% compared to $201.206 million in Q4 2023[24] - Collaboration revenue for the full year 2024 was $35 million, down from $370 million in 2023, representing a decline of 90.5%[24] - Cash and cash equivalents as of December 31, 2024, were $298.257 million, down from $389.477 million as of December 31, 2023[26] - Total assets increased slightly to $2.242 billion as of December 31, 2024, from $2.230 billion in 2023[26] - Total shareholders' equity rose to $1.932 billion in 2024, compared to $1.883 billion in 2023, an increase of 2.6%[26] Research and Development - R&D expenses for Q4 2024 were $82.2 million, down from $95.1 million in Q4 2023, primarily due to reduced external research and manufacturing costs[16] - Research and development expenses for Q4 2024 were $82.155 million, compared to $95.144 million in Q4 2023, a decrease of 13.6%[24] - Clinical trials for next-generation CAR T product candidates CTX112 and CTX131 are ongoing, with updates expected in mid-2025[1] - CTX310 is in an ongoing Phase 1 clinical trial targeting ANGPTL3, with updates expected in the first half of 2025[10] - CTX320 is also in a Phase 1 clinical trial targeting LPA, with updates anticipated in the first half of 2025[10] - Updates on lead in vivo cardiovascular programs are anticipated in the first half of 2025[2] Product Development and Partnerships - More than 50 authorized treatment centers (ATCs) have been activated globally for CASGEVY, with over 50 patients having undergone cell collection by the end of 2024[3] - CRISPR Therapeutics has formed a strategic partnership with Nkure Therapeutics to co-develop and co-commercialize CTX112 in India[1] - The company has received approval for CASGEVY® (exa-cel) in several countries to treat sickle cell disease and transfusion-dependent beta thalassemia, marking a significant milestone[21] - CRISPR Therapeutics is focusing on expanding its gene editing programs and has formed strategic partnerships with leading companies, including Vertex Pharmaceuticals[21] - The company anticipates potential expansion into new indications and aims to enhance its manufacturing capabilities for ongoing and planned clinical trials[21] Future Outlook - The company expects significant growth in new patient initiations for cell collection throughout 2025[3]