Crispr Therapeutics reported its first profit in 10 quarters on Wednesday, and CRSP stock whipsawed.
This is the company's first earnings report following the historic approval of Casgevy, its gene-edited treatment for sickle cell disease and beta thalassemia.
Crispr hasn't yet notched any sales of Casgevy — a lengthy process that involves first eliminating a patient's stem cells — but the profits are rolling in. During the quarter ended Dec. 31, Crispr earned $1.10 per share, flipping from a year-earlier loss of $1.41. That also easily beat forecasts for a 7-cent gain.
William Blair analyst Tim Lugo notes Casgevy is now approved in five regions with more expected over the course of 2024. Crispr developed Casgevy in partnership with Vertex Pharmaceuticals.
"We continue to hold the view that Casgevy remains highly competitive and could be a blockbuster product with the support of Vertex's top-tier commercialization expertise in rare diseases," he said in a report. Lugo kept his outperform rating on Crispr stock.
On today's stock market, CRSP stock jumped 4.7% to 82.41, returning to a gain after sliding as much as 2.1%. Shares broke out of a cup base with a buy point at 76.97 on Feb. 14, according to MarketSmith.com. Vertex stock dipped less than 1% to 419.63.
What's Next For CRSP Stock?
Fourth-quarter revenue also topped projections at $201.2 million. That consisted of $200 million in collaboration revenue and $1.21 billion in grant revenue. Analysts were expecting a lower $140.9 million. Crispr exited 2023 with about $1.7 billion in cash and roughly $2.1 billion in pro forma cash.
Now that Crispr and Vertex are working to commercialize Casgevy, investors are watching Crispr's earlier-stage pipeline efforts more closely. Chief Executive Samarth Kulkarni said Crispr began testing two treatments for cardiovascular diseases in people last year.
Further, the company is testing cancer treatments that "have the potential to be best-in-class cell therapies for the treatment of both liquid and solid tumors," he said in a written statement. He sees the next 12 to 18 months as being particularly "catalyst-rich" for the company.
CRSP stock has a promising Composite Rating of 92 out of a best-possible 99, according to IBD Digital. This means shares rank in the top 8% of all stocks when it comes to fundamental and technical measures.
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