Crispr stock is tumbling for the fifth straight week as the top Cathie Wood's holding struggles amid dimming expectations for its new Vertex-partnered gene-editing drug.
Crispr Therapeutics and Vertex Pharmaceuticals gained Food and Drug Administration approval for Casgevy on Dec. 8. On the same day, the FDA signed off on a rival gene therapy from Bluebird Bio called Lyfgenia. Both treat sickle cell disease.
But the launches have proved to be a slog. Bluebird said this week it didn't have any Lyfgenia sales in the fourth quarter. Though Casgevy approvals have climbed — the drug is also now approved in the U.S., Great Britain, Bahrain and the Saudi Arabia as a treatment for sickle cell disease or beta thalassemia — Crispr has yet to report any revenue for its first product.
Crispr stock has fallen 25% since notching a recent high at 91.10 in late February. Shares are the sixth biggest holding in the ARK Innovation exchange-traded fund. Bluebird stock, a dollar stock, has tumbled 33% from a recent high point last month. Vertex shares are also about 7% off their late January high.
Crispr Stock: Gene Editing Is Complicated
It's important to note that the companies won't report revenue from their genetic medicines until the first patient receives an infusion.
But these are complex therapies.
For Casgevy, patients must first undergo a "conditioning" regimen that prepares their bodies for treatment. The actual drug is comprised of a patient's own cells, which have been extracted and edited. The entire process can take months.
For Lyfgenia, patients must stop current treatments for two months. Then, they must undergo two cycles of blood transfusions in another two-month process.
Mizuho Securities analyst Salim Syed doesn't cover Bluebird stock, but has a buy rating on Crispr stock.
Bluebird, in its fourth-quarter call with analysts, "noted patients elect when to schedule treatment (often around life events), so timelines can be unpredictable," he said in a report to clients.
Bluebird expects a one- to two-quarter timeline from cell collection to infusion. The company expects to recognize its first Lyfgenia sales in the third quarter of 2024. Bluebird's gene therapy could represent a multibillion-dollar opportunity in the U.S. alone, he said.
Bearish Sign For Crispr Shares
Last week, Crispr stock crossed its 50-day moving average — a bearish sign.
Shares have a Relative Strength Rating of 87 out of a best-possible 99. This means Crispr stock has outranked 87% of all stocks over the past 12 months in terms of performance. But that's down from an RS Rating of 94 a month ago.
But Crispr stock still has a strong IBD Digital Composite Rating of 94, a measure of fundamental and technical metrics.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
