Crispr Earnings: Positive Long-Term Outlook as Launch of Casgevy is Underway; Shares Undervalued

Crispr Therapeutics’ second-quarter results are tracking our expectations, and its early-stage pipeline candidates are advancing in clinical trials. We continue to expect 2024 will be a pivotal year as Crispr rolls out commercialization efforts globally for its recently approved gene therapy, Casgevy, for the treatment of both sickle cell disease and transfusion-dependent beta thalassemia. We think Casgevy could hold strong pricing power and eventually become a blockbuster drug, generating over $1 billion annually in sales. We like that Crispr and Vertex are focused on opening approved treatment centers for Casgevy, and it has 35 centers active out of its plan to open around 75 across the globe. We maintain our positive long-term outlook and $119 fair value estimate. We view the stock as very undervalued, currently trading in 5-star territory. Crispr provides long-term investors who possess a high degree of risk tolerance with pure-play exposure to novel gene editing technology.