Since Jennifer Doudna and Emmanuelle Charpentier discovered its essential components in 2011, the revolutionary gene-editing technology CRISPR has swept the scientific community by storm. This powerful tool has been creatively repurposed for use in biomedical, bioenergy, and agricultural sciences. It uses CRISPR-derived RNAs (crRNAs) to direct dedicated nucleases to complementary nucleic acid targets.
As the CRISPR technology market continues to grow, with estimates projecting a value of $7.1 billion by 2028 and $11.1 billion by 2030, investors are keen to explore the potential of CRISPR stocks. This article will delve into the top 6 CRISPR stocks for April 2024, discussing their recent developments, collaborations, and potential applications in treating genetic diseases such as sickle cell disease, cystic fibrosis, and cardiovascular disease.
1. CRISPR Therapeutics AG (CRSP)
CRISPR Therapeutics AG (CRSP) is a leading biotechnology company focused on developing transformative gene-based medicines for serious diseases using its proprietary CRISPR/Cas9 platform. The company’s stock reached $71.08 at the closing of the latest trading day, reflecting a -0.74% change compared to its last close, and outperformed the broader market with a +0.69% move from the previous day.
CRISPR Therapeutics AG has made significant progress in its gene-editing therapies, particularly with the FDA approval of Casgevy on Dec. 8, 2023, a gene-editing drug used to treat sickle cell disease and beta thalassemia, developed in collaboration with Vertex Pharmaceuticals (VRTX). The company’s proprietary CRISPR/Cas-9 technology is expected to lead to many more approvals in the future.
Despite the recent decline in CRISPR Therapeutics AG’s stock price, analysts remain optimistic about the company’s future prospects. The stock is currently trading 11.89% below the forecasted price for April 3, 2024, and Bank of America recommends CRISPR Therapeutics (CRSP) as one of the seven gene-editing stocks to buy, with a 40.9% implied upside. The company’s strong pipeline, which includes potential treatments for heart disease, oncology, and type 1 diabetes, and its aim to have 20 to 30 different programs in the clinic within five years position CRISPR Therapeutics AG as a key player in the gene-editing industry.
2. Editas Medicine, Inc. (EDIT)
Editas Medicine, Inc. (EDIT) is another prominent player in the CRISPR gene-editing space. The company recently reported its Q4 2023 earnings, beating expectations and prompting analysts to upgrade their estimates. As of March 28, 2024, Editas Medicine’s stock price was $7.42, representing a decrease of 0.3% or $0.02 compared to the previous close.
Despite the recent decline, one Wall Street analyst raised Editas Medicine’s price target by 45%, indicating a positive outlook for the company. However, an insider selling shares of Editas Medicine could potentially be seen as a negative signal. The company’s 1-year return is +0.13%, while the S&P 500’s 1-year return is +30.45%.
Editas Medicine’s stock price is expected to increase by 25.88% and reach $9.34 per share by April 3, 2024. The company’s stock prediction for 2025 is $8.40, assuming the average yearly growth rate continues, and the prediction for 2030 is $15.64. Even though The Motley Fool’s Stock Advisor service does not currently recommend Editas Medicine as one of the 10 best stocks to buy right now, the company still has a market capitalization of $609,921,856 and a PEG ratio of 0. It is still a significant player in the CRISPR gene-editing industry.
3. Vertex Pharmaceuticals Incorporated (VRTX)
Vertex Pharmaceuticals (VRTX) is a leading biotechnology company focused on developing transformative therapies for serious diseases. The company’s forward P/E ratio of 27x makes it expensive relative to the biotechnology sector, but it’s trading at a discount of over 50% relative to its five-year average. Vertex’s collaboration with CRISPR Therapeutics has led to the development of Exacel, a gene-editing therapy for severe sickle cell disease and beta thalassemia. The FDA will decide whether to approve Exacel for these indications in December and March, respectively.
Exa-cel has shown promising results in clinical trials, with beta-thalassemia patients needing fewer or no blood transfusions and sickle cell patients experiencing marked decreases in vaso-occlusive crises. If approved, Exacel would be the first-ever drug approved using CRISPR gene-editing technology, potentially positively impacting the broader biotech industry. However, the commercial opportunity for Exacel is questioned due to the need for patients’ bodies to be conditioned with busulfan, which can lead to infertility and other side effects.
As of March 29, 2024, the Vertex Pharmaceuticals (VRTX) stock price is $418.01, with a 5-day prediction of $435.91. The company has a strong earnings surprise history, beating estimates in each of the trailing four quarters, with an average earnings surprise of 3.76%. Vertex’s revenues are expected to be driven by the rapid uptake of its blockbuster CF medicine, Trikafta/Kaftrio, and the company is also developing several investigational therapies targeting acute and neuropathic pain, APOL1-mediated kidney disease, type I diabetes, and alpha-1 antitrypsin deficiency. With bullish sentiment and positive technical indicators, the average 12-month price target for Vertex Pharmaceuticals (VRTX) is $494.45, representing a +18.29% increase from the current price.
4. Ginkgo Bioworks Holdings, Inc. (DNA)
Ginkgo Bioworks Holdings, Inc. (DNA) is a biotechnology company that specializes in using genetic engineering to produce bacteria with industrial applications. The company’s stock has been in a neutral position, with an RSI approaching 34, suggesting it is likely at or near its support level. The stock price has fluctuated between $1.10 and $1.20, a 9.09% change, and has risen in 6 of the last 10 days, up by 9.43% over the past 2 weeks.
Despite the stock’s volatility, analysts have set a Wall Street target price of $1.97. The stock is expected to fall -18.85% during the next 3 months, with a 90% probability of holding a price between $0.717 and $1.13 at the end of this 3-month period. However, the 3-month Moving Average Convergence Divergence (MACD) has issued a buy signal.
Ginkgo Bioworks Holdings, Inc. has recently been awarded a $6 million DARPA contract to work on cold-weather applications for military and commercial use. The company won DARPA funding to produce novel proteins to control ice in extreme cold-weather environments. This contract highlights Ginkgo Bioworks’ expertise in genetic engineering and its potential to develop innovative solutions for various industries.
5. Beam Therapeutics Inc. (BEAM)
Beam Therapeutics is a leading biotechnology company specializing in base editing, a novel form of gene editing that differs from CRISPR by not requiring both strands of DNA’s double helix to be broken, potentially reducing the risk of unexpected side effects. Despite revenue estimates for 2024 being downgraded from US$73m to US$64m, representing an 83% decline compared to the previous year, and expected losses per share increasing from US$4.55 to US$5.55 [25], the company has received an upgrade in its Relative Strength (RS) Rating from 70 to 73.
Beam Therapeutics has several key events and milestones planned for the year ahead, including:
- Releasing results from a study on patients with sickle cell disease for its drug BEAM-101 in the second half of the year
- Extending its cash runway to 2027 through a deal with Eli Lilly (LLY)
- Holding the No. 227 rank among peers in the Medical-Biomed/Biotech industry group
The company’s approach to sickle cell disease involves base editing, which could offer superior safety profiles compared to existing therapies. Analysts covering Beam Therapeutics for 2024 have a consensus price target of US$48.38, suggesting that the business is performing in line with expectations despite lower earnings per share forecasts. The predicted price of the stock after a year is $44.790770000905, indicating a potential increase of 35.565%.
6. Investment Strategies for CRISPR Stocks
Here are some investment strategies for CRISPR stocks:
- Consider the growth potential of the gene-editing market:
- The gene-editing market is expected to grow 15.7% annually and reach $29.9 billion by 2032.
- Companies like Intellia Therapeutics (NTLA), Caribou Biosciences (CRBU), and Bluebird Bio (BLUE) have significant implied upsides and “buy” ratings from analysts.
- Look for companies with promising pipelines and recent FDA approvals:
- Bluebird Bio (BLUE) gained FDA approval for Lyfgenia, a gene therapy for sickle cell disease, which could represent a multibillion-dollar opportunity in the U.S. alone.
- Despite recent stock price declines, Bluebird expects to recognize its first Lyfgenia sales in the third quarter of 2024.
- Evaluate the market capitalization and financial ratios of CRISPR companies:
- Regeneron Pharmaceuticals (REGN) has a market capitalization of $106 billion, a P/E ratio of 27.79, and a PEG ratio of 1.554 [14].
- Smaller companies like Editas Medicine (EDIT), Cellectis (CLLS), and Sangamo Therapeutics (SGMO) have lower market capitalizations but may offer higher growth potential.
When investing in CRISPR stocks, it’s essential to consider the potential applications of gene-editing technology in treating genetic diseases such as sickle cell disease, cystic fibrosis, and cardiovascular disease. Companies collaborating with larger pharmaceutical firms, like Vertex Pharmaceuticals (VRTX) and CRISPR Therapeutics AG (CRSP), may have an advantage in bringing gene therapies to market.
As with any investment, it’s crucial to conduct thorough research and consider factors such as regulatory approvals, clinical testing results, and the competitive landscape before making investment decisions in the rapidly evolving field of CRISPR technology and gene editing.
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Conclusion
In summary, the CRISPR gene-editing technique has transformed biotechnology and opened up previously unimaginable possibilities for the treatment of hereditary illnesses. The leading CRISPR stocks—Editas Medicine, Vertex Pharmaceuticals, CRISPR Therapeutics AG, Ginkgo Bioworks Holdings, and Beam Therapeutics—have shown noteworthy progress in their partnerships and pipelines, underscoring the enormous promise of this technology. When evaluating CRISPR stocks, investors ought to take into account the technology’s auspicious uses, which include managing bacteria resistant to antibiotics, modifying genetic material to rectify mutations, and creating treatments for uncommon illnesses. The FDA drug administration’s most recent approvals and the advancements in clinical studies serve as additional proof that CRISPR technology has the potential to revolutionize the treatment of human diseases. Investors need to be aware of the most recent advancements in genetic editing, partnerships, and regulatory approvals, as the CRISPR market is expected to grow at a rate that highlights its growing impact. Investors can profit from this revolutionary field by concentrating on companies that have strong pipelines, partnerships, and a dedication to advancing CRISPR technology. The future of CRISPR stocks appears bright, with CRISPR Therapeutics AG and other top biopharmaceutical companies making progress in clinical trials and garnering positive analyst forecasts. As time goes on, the prospect of using CRISPR to treat a variety of human illnesses, from common ailments like muscular dystrophy and cardiovascular disease to uncommon genetic disorders, opens up new avenues for medical research and investment opportunities. CRISPR research has advanced significantly in the fourth quarter, addressing genetic mutations and allowing for the editing of genetic material. This has produced new breakthroughs in the use of drugs to treat uncommon diseases and in examining the enormous potential of the human genome. The application of short palindromic repeats in CRISPR technology has given gene-editing companies new opportunities by enabling them to precisely target specific regions of the genome.
With clinical studies highlighting the potential of prime editors and the lifting of clinical holds on specific therapies, the biopharmaceutical industry has witnessed a strong buy sentiment towards CRISPR stocks. American investors, who are interested in the latest developments in treating acute lymphoblastic leukemia and hereditary angioedema, have found this to be very popular. Some of the best CRISPR stocks in the biotech industry are Verve Therapeutics and other companies that are setting the standard for CRISPR-based therapies. Genome editing has gained prominence as the biotech sector develops, and collaboration revenue is essential for supporting research and development. A major turning point in the history of medicine is being reached as diseases affecting humans are being treated with never-before-seen precision. The Broad Institute is supporting the first-ever clinical application of CRISPR technology, and the technology’s annual growth rate indicates that CRISPR stocks have a promising future. Regulatory agencies in the UK and throughout the EU are keeping a careful eye on CRISPR technology advancements to guarantee safe and efficacious treatments for solid tumors and other disorders related to the genetic code. With CRSP stock at the forefront of this innovative field, there has never been a better opportunity to use CRISPR technology to treat rare genetic diseases.
In the future, independent research and third parties will be essential to the advancement of CRISPR technology. The global collaboration of scientists and researchers has resulted in the development of CRISPR-based therapies for genetic disorders, including liver diseases. The stock markets are closely monitoring the development of CRISPR technology, and analysts like Geoff Meacham are providing insightful commentary on the potential applications of these cutting-edge therapies.
The optimism surrounding this field is reflected in the Zacks Consensus Estimate for CRISPR Therapeutics AG (CRSP) and other biotechnology stocks. Given its high Zacks Rank and the positive sentiment expressed by hedge funds, CRISPR technology has a promising future in the treatment of cancer cells and other diseases. The capacity to precisely break DNA strands has created new opportunities for biotech businesses and ushered in a new era of medical care.
In summary, the top CRISPR stocks for April 2024 include a wide range of businesses that are at the forefront of the development of genetic editing and therapy. These businesses are setting the standard for leveraging the potential of CRISPR technology, from CRISPR Therapeutics AG’s breakthroughs in treating genetic diseases to Editas Medicine’s concentration on uncommon genetic eye disorders. Researchers and investors alike are looking forward to the next discoveries that will influence biotechnology and medicine as the field continues to advance.
FAQs
1. Which company is currently at the forefront of CRISPR technology? Editas Medicine is currently leading the charge in CRISPR technology, specifically in the treatment of rare genetic eye diseases. They have shared promising preliminary results from a phase 1/2 study of EDIT-101, aimed at treating Leber congenital amaurosis 10 (LCA10), as of September 2021.
2. Has Bill Gates made investments in CRISPR technology? Yes, Bill Gates, along with his colleagues, invested a significant amount of $120 million in Editas Medicine, a company at the forefront of CRISPR technology, often referred to as “The Genesis Engine” for its innovative approach to DNA editing.
3. What are the most exciting prospects of CRISPR technology? One of the most promising aspects of CRISPR technology is its potential to control antibiotic-resistant bacteria. The CRISPR-Cas system can be used as a precise gene-editing tool to identify and eliminate DNA sequences responsible for antibiotic resistance in bacteria, which could revolutionize the way we prevent and treat bacterial drug resistance.
4. Is it expected that CRISPR Therapeutics’ stock price will rise? According to the consensus of 20 Wall Street analysts, the average 12-month price target for CRISPR Therapeutics AG is $86.22, which would signify a 20.64% increase from its current price of $71.47. Analysts’ price targets range from a low of $30.00 to a high of $199.00, indicating varying levels of optimism about the stock’s future performance