CRSP Stock Surges 25%: Should Investors Buy, Hold, or Sell?

The stock of CRISPR Therapeutics (CRSP) has seen a remarkable rise, climbing over 25% in just one week. This surge is mainly due to the encouraging fourth-quarter 2024 financial results and a rating upgrade from a reputable Wall Street analyst.

In its quarterly performance, CRISPR Therapeutics reported a decline in earnings and sales compared to the previous year. However, the results surpassed market expectations. A significant milestone payment from partner Vertex Pharmaceuticals (VRTX) was received in the year-ago period, tied to the approval of the one-time gene therapy, Casgevy, for treating two blood disorders.

Along with the earnings results, CRISPR's management highlighted advancements in its pipeline, with updates on nearly all candidates expected to be released this year. Due to these positive developments in clinical programs, an analyst from Evercore ISI upgraded CRSP's rating from "In Line" to "Outperform" and significantly increased the price target by 65% to $99.

Successful Launch of Casgevy

The approval of Casgevy marks a significant milestone in medical science, as it stands as the first CRISPR-based gene-editing therapy approved globally. Developed in partnership with Vertex Pharmaceuticals, Casgevy received approval in late 2023/early 2024 for treating sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT) in both the U.S. and Europe.

Both SCD and TDT are conditions with a large unmet medical need. With Casgevy now available, it presents a new treatment option for approximately 35,000 patients across the U.S. and Europe who suffer from severe SCD or TDT, with additional patients in Bahrain and Saudi Arabia. The therapy has shown potential to reduce blood transfusion needs for TDT patients and alleviate the painful sickle crises for SCD patients.

According to management, over 50 authorized treatment centers were activated globally by the end of 2024, and more than 50 patients had undergone at least one cell collection across different regions. The number of new patients starting treatment is expected to increase significantly throughout 2025. Vertex reported $8 million in product revenues from Casgevy sales during its recent fourth-quarter earnings announcement.

Promising Pipeline Programs

CRISPR Therapeutics is actively developing CRISPR candidates aimed at creating innovative CAR-T cell therapies. The company is advancing two next-generation CAR-T therapy candidates, CTX112 (focused on CD19-positive B-cell malignancies) and CTX131 (targeting relapsed or refractory solid tumors), both currently in separate Phase I/II studies.

In December 2024, positive preliminary results for the CTX112 study were presented at a major medical conference. These results illustrated efficacy comparable to autologous therapies along with a tolerable safety profile and significant cell expansion. Management plans to engage with regulatory authorities regarding the pathway forward for CTX112 in B-cell malignancies, with an update expected in mid-2025.

Additionally, CRSP is investigating these next-generation candidates for other potential applications. Last year, two new clinical studies commenced—one focused on CTX131 for hematological cancers (including T-cell lymphomas) and another for CTX112 in systemic lupus erythematosus, systemic sclerosis, and inflammatory myositis. Updates on these studies are anticipated to be released later this year.

Building on the success of ex-vivo therapy Casgevy, management is ramping up efforts toward in-vivo candidates. Unlike ex-vivo therapies, which involve the removal and modification of cells before reinsertion, in-vivo therapies involve the direct infusion of new genes into the body. CRSP is evaluating two in-vivo candidates, CTX310 (targeting ANGPTL3) and CTX320 (aiming at lipoprotein(a) Lp(a), which are currently in early-stage studies. These are focused on validated therapeutic targets linked to cardiovascular diseases. Management intends to enhance the in-vivo pipeline by adding two new programs before the end of 2025.

Competition in Targeted Markets

CRISPR Therapeutics faces competition from several other firms leveraging CRISPR technology to target various conditions. For instance, Beam Therapeutics (BEAM) is working on an ex-vivo autologous transplant approach for SCD and TDT, focusing on its lead candidate BEAM-101 in the phase I/II BEACON study. Beam is also advancing an engineered stem cell strategy meant to tackle the toxicity issues associated with autologous transplants in affected patients.

In the realm of in-vivo therapies, CRSP appears to be trailing Intellia Therapeutics (NTLA), one of the few companies with in-vivo CRISPR candidates that are further along in clinical development. Intellia is developing an array of in-vivo CRISPR therapies aimed at various indications, including ATTR amyloidosis and hereditary angioedema.

CRSP Stock Performance and Valuation

Despite the recent surge, shares of CRISPR Therapeutics have declined nearly 40% over the past year, whereas the industry as a whole has dropped by about 9%. The stock has underperformed relative to the sector and the S&P 500 index. However, it is currently trading above both its 50-day and 200-day averages.

Stock Performance Compared to Industry

From a valuation standpoint, CRISPR Therapeutics' shares are priced lower than the industry average. The price-to-book (P/B) ratio currently stands at 2.20, which is below the industry average of 3.22.

Recent estimates for CRISPR’s loss per share in 2025 have improved from $5.30 to $5.07 over the past week, while estimates for 2026 have widened from $2.69 to $4.10.

Investment Recommendations for CRSP Stock

Given the growth potential, it is advisable to hold on to this Zacks Rank #3 (Hold) stock for the time being. Although a significant portion of CRISPR’s pipeline is still in the early development stages, the presence of a marketed product like Casgevy indicates it has successfully navigated one of its most significant challenges—a sustainable revenue stream.

With sales of Casgevy showing promise along with a solid cash balance of approximately $1.9 billion (as of the end of 2024), investors can take comfort knowing the company is well-positioned for its day-to-day operations and the advanced development phases of its pipeline. Unlike the previous year, CRSP has committed to providing updates throughout this year, which could serve as key catalysts for the stock.

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