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CRISPR Therapeutics(CRSP) - 2024 Q2 - Quarterly Report
CRSPCRISPR Therapeutics(CRSP)2024-08-05 20:10

CASGEVY Approval and Efficacy - CASGEVY, the first-ever approved CRISPR-based gene-editing therapy, has been approved in the United States, European Union, Great Britain, Kingdom of Saudi Arabia, and Kingdom of Bahrain for treating severe sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT) in patients aged 12 and older[51] - CASGEVY has shown efficacy as a potential one-time functional cure for severe SCD and TDT, with safety data consistent with autologous stem cell transplant and myeloablative conditioning[51] Next-Generation CAR T Cell Therapies - The company is advancing next-generation CAR T cell therapies, including CTX112 (targeting CD19) and CTX131 (targeting CD70), which show significantly higher CAR T cell expansion and functional persistence compared to first-generation candidates[53] - CTX112 is being investigated in clinical trials for relapsed or refractory CD19-positive B-cell malignancies and systemic lupus erythematosus, with early studies showing long-lasting remissions in autoimmune indications[54] - CTX131 is being developed for solid tumors and hematologic malignancies, including T cell lymphomas, with ongoing clinical trials assessing its safety and efficacy[55] In Vivo Gene Editing Programs - The company's in vivo gene editing programs, CTX310 and CTX320, target cardiovascular disease by disrupting ANGPTL3 and LPA genes, respectively, with up to 20% of the global population having elevated Lp(a) levels[57] Type 1 Diabetes Therapy Development - CTX211, an allogeneic, gene-edited, hypoimmune stem cell-derived product candidate for type 1 diabetes, is in a Phase 1/2 clinical trial, with the company receiving 170millioninupfrontandmilestonepaymentsfromVertexin2023[59]Next−GenerationEditingModalities−Thecompany′sCRISPR−Xresearchteamisdevelopingnext−generationeditingmodalities,includingwholegenecorrectionandinsertionwithoutrequiringhomology−directedrepairorviraldeliveryofDNA[60]StrategicPartnershipsandCollaborations−StrategicpartnershipswithVertex,ViaCyte,andBayerareacceleratingthedevelopmentofgene−editingtherapies,withVertexco−developingandco−commercializingCASGEVYandlicensingCRISPR/Cas9technologyfordiabetes[61]−AdditionalcollaborationswithcompanieslikeNkarta,CapsidaBiotherapeutics,andMaxCytesupportthecompany′shematopoieticstemcell,immuno−oncology,andinvivoprograms[62]FinancialPerformanceandExpenses−Thecompanyhasnotgeneratedanyrevenuefromproductsalesanddoesnotexpecttodosointhenearfuture.RevenueforthethreeandsixmonthsendedJune30,2024wasnotmaterial,whilerevenueforthesameperiodsin2023was170 million in upfront and milestone payments from Vertex in 2023[59] Next-Generation Editing Modalities - The company's CRISPR-X research team is developing next-generation editing modalities, including whole gene correction and insertion without requiring homology-directed repair or viral delivery of DNA[60] Strategic Partnerships and Collaborations - Strategic partnerships with Vertex, ViaCyte, and Bayer are accelerating the development of gene-editing therapies, with Vertex co-developing and co-commercializing CASGEVY and licensing CRISPR/Cas9 technology for diabetes[61] - Additional collaborations with companies like Nkarta, Capsida Biotherapeutics, and MaxCyte support the company's hematopoietic stem cell, immuno-oncology, and in vivo programs[62] Financial Performance and Expenses - The company has not generated any revenue from product sales and does not expect to do so in the near future. Revenue for the three and six months ended June 30, 2024 was not material, while revenue for the same periods in 2023 was 70.0 million and 170.0million,respectively,primarilyfromanupfrontpaymentandaresearchmilestoneachievedwithVertex[64][71][76]−ResearchanddevelopmentexpensesforthethreemonthsendedJune30,2024were170.0 million, respectively, primarily from an upfront payment and a research milestone achieved with Vertex[64][71][76] - Research and development expenses for the three months ended June 30, 2024 were 80.2 million, a decrease of 21.4millioncomparedto21.4 million compared to 101.6 million in the same period in 2023, primarily due to reduced external research and manufacturing costs[72] - General and administrative expenses for the three months ended June 30, 2024 were 19.5million,slightlyhigherthanthe19.5 million, slightly higher than the 19.0 million in the same period in 2023[73] - Collaboration expense, net, for the three months ended June 30, 2024 was 52.1million,anincreaseof52.1 million, an increase of 7.5 million compared to 44.6millioninthesameperiodin2023,primarilyduetocommercialandmanufacturingcostsrelatedtotheCASGEVYprogramwithVertex[74]−NetlossforthethreemonthsendedJune30,2024was44.6 million in the same period in 2023, primarily due to commercial and manufacturing costs related to the CASGEVY program with Vertex[74] - Net loss for the three months ended June 30, 2024 was 126.4 million, compared to a net loss of 77.7millioninthesameperiodin2023,drivenbyhighercollaborationexpensesandlowerrevenue[70]−ForthesixmonthsendedJune30,2024,thecompanyreportedanetlossof77.7 million in the same period in 2023, driven by higher collaboration expenses and lower revenue[70] - For the six months ended June 30, 2024, the company reported a net loss of 243.0 million, compared to a net loss of 130.8millioninthesameperiodin2023,primarilyduetoasignificantdecreaseincollaborationrevenueandincreasedcollaborationexpenses[75]−Researchanddevelopmentexpensesdecreasedby130.8 million in the same period in 2023, primarily due to a significant decrease in collaboration revenue and increased collaboration expenses[75] - Research and development expenses decreased by 45.2 million to 156.3 million for the six months ended June 30, 2024, primarily due to reduced external R&D costs (34.3 million), facility-related expenses (8.2million),andemployee−relatedexpenses(8.2 million), and employee-related expenses (4.0 million)[77] - General and administrative expenses decreased by 4.0millionto4.0 million to 37.4 million for the six months ended June 30, 2024, driven by lower employee-related and consulting expenses[78] - Collaboration expense, net, increased by 12.3millionto12.3 million to 99.1 million for the six months ended June 30, 2024, primarily due to commercial and manufacturing costs related to the CASGEVY program[79] - Other income increased by 19.8millionto19.8 million to 50.9 million for the six months ended June 30, 2024, mainly due to higher interest income from cash, cash equivalents, and marketable securities[80] Cash and Financial Position - The company had 2,012.8millionincash,cashequivalents,andmarketablesecuritiesasofJune30,2024,with2,012.8 million in cash, cash equivalents, and marketable securities as of June 30, 2024, with 154.1 million held outside the U.S. and an accumulated deficit of 1,242.7million[81]−Netcashprovidedbyoperatingactivitiesincreasedby1,242.7 million[81] - Net cash provided by operating activities increased by 138.6 million to 14.2millionforthesixmonthsendedJune30,2024,drivenbya14.2 million for the six months ended June 30, 2024, driven by a 270.0 million increase in accounts receivable[86] - Net cash used in investing activities was 224.7millionforthesixmonthsendedJune30,2024,comparedto224.7 million for the six months ended June 30, 2024, compared to 334.8 million provided in the same period in 2023, due to increased purchases of marketable securities[87] - Net cash provided by financing activities was 305.5millionforthesixmonthsendedJune30,2024,primarilyfromthesaleof305.5 million for the six months ended June 30, 2024, primarily from the sale of 280.0 million in common shares to institutional investors[88] - The company expects its existing cash, cash equivalents, and marketable securities to fund operations for at least the next 24 months, based on current R&D plans and timing expectations[84] - The company's cash, cash equivalents, and marketable securities of 2,012.8millionareprimarilyinvestedinU.S.treasurysecurities,governmentagencysecurities,corporatebonds,andcommercialpaper,withminimalexposuretointerestraterisk[91]LegalProceedings−Nomaterialadverselegalproceedingscurrentlypendingagainstthecompany[96]−Nosignificantdevelopmentsinpreviouslydisclosedlegalproceedings[96]FutureOutlookandExpectations−Thecompanyexpectstocontinueincurringsignificantresearchanddevelopmentexpensesasitprogressesitscurrentdevelopmentprograms,addsnewprograms,andpreparesregulatoryfilings[66]−Thecompanyhasahistoryofrecurringlossesandexpectstocontinueincurringlossesfortheforeseeablefuture,withexpenseslikelytoincreaseasitadvancesitsresearchanddevelopmentactivities[63]−ThecompanyhastheoptiontodeferspecifiedcostsontheCASGEVYprograminexcessof2,012.8 million are primarily invested in U.S. treasury securities, government agency securities, corporate bonds, and commercial paper, with minimal exposure to interest rate risk[91] Legal Proceedings - No material adverse legal proceedings currently pending against the company[96] - No significant developments in previously disclosed legal proceedings[96] Future Outlook and Expectations - The company expects to continue incurring significant research and development expenses as it progresses its current development programs, adds new programs, and prepares regulatory filings[66] - The company has a history of recurring losses and expects to continue incurring losses for the foreseeable future, with expenses likely to increase as it advances its research and development activities[63] - The company has the option to defer specified costs on the CASGEVY program in excess of 110.3 million for the years ended December 31, 2022, 2023, and 2024, with deferred amounts payable as an offset against future profitability of the program[68] - The company's revenue recognition for the three and six months ended June 30, 2023 was primarily related to an upfront payment from Vertex and a research milestone achieved in the second quarter of 2023[64][71][76]