CRISPR Earnings: Gene Editing Pipeline Continues to Make Progress, Shares Very Undervalued

CRISPR Therapeutics reported first-quarter results in line with our expectations, and its pipeline candidates are continuing to progress in development. We maintain our positive outlook and fair value estimate of $119 per share, and we view the stock as very undervalued. Collaboration revenue totaled $100 million in the quarter, which was largely attributable to an upfront payment from narrow-moat Vertex Pharmaceuticals. CRISPR ended the quarter in a healthy financial position with about $1.89 billion in cash, which will help fund its research and development expenses as it develops its pipeline candidates. Investors reacted favorably, sending the stock up 13%.