We recently compiled a list of the 10 Best Gene Therapy Stocks to Buy Right Now.In this article, we are going to take a look at where CRISPR Therapeutics AG (NASDAQ:CRSP) stands against the other gene therapy stocks.
Gene therapy is referred to as a medical technique that involves modifying or manipulating genes to treat or prevent disease. The therapy focuses on addressing the underlying genetic cause of a condition by repairing, replacing, or altering genes within an individual’s cells. Industry experts opine that this innovative therapy has the potential to treat a variety of genetic disorders, cancers, and other diseases.
As per IMARC, healthcare infrastructure in the US adapted to accommodate gene therapies. As per IQVIA’s tally, 114 gene therapy trials were initiated in the year 2023. Out of this, a large majority (~77%) were sponsored by the healthcare industry. As per Kella Kapnisi, Head of Cell and Gene Therapy at Team Consulting (a medical technology design and development consultancy), as of now, there are 38 cell and gene therapies approved by the FDA. Notably, many of these have reached commercialization through mostly manual laboratory manufacturing processes.
As per IMARC, the US gene therapy market size has been pegged at US$1,312.2 million in 2024. The market should reach US$3,697.8 millionby 2033. This phenomenal growth is expected to stem from the increasing prevalence of genetic disorders, genetic engineering advancements, a strong focus on strategic collaborations, supportive regulatory frameworks, and heightened investments in R&D.
Ever since the initiation of the Orphan Drug Designation program, the FDA designated over 1,000 medicines for uncommon diseases as orphan drugs, many of which are gene therapies. Furthermore, optimism around the gene therapy industry grew after the regulatory body showcased its dedication to promoting the development of these medicines in 2023. IMARC added that the FDA approved 3 novel gene therapies for conditions such as spinal muscular atrophy and hemophilia.
As per Kella Kapnisi, as the cell and gene therapy industry has been continuously evolving, the need and requirement for purpose-built technology is of utmost importance. Small batch manufacturing systems that are customized for personalized therapies and decentralized manufacturing, real-time process control with the help of advanced inline and online analytics, and sophisticated data analysis and management systems using ML technology remain important trends that might drive the growth of cell and gene therapy manufacturing.
As per IMARC, the collaborations between biotech companies, pharmaceutical firms, and university research institutes can pool the funds needed to address challenges related to creating and promoting gene treatments.
IMARC further added that the increased prevalence of genetic disorders and chronic diseases, together with increasing strategic collaborations and partnerships are important trends in the US gene therapy market. The growing cases of cancer and genetic disorders remain one of the key factors in the gene therapy market. Gene therapy is a key component of cancer treatment as it can precisely research and target malignant cells to prevent further damage.
Our Methodology
To list the 10 Best Gene Therapy Stocks to Buy Right Now, we conducted extensive research and scanned through several online rankings. After getting the initial list of 15-20 stocks, we shortlisted the ones having high hedge fund holdings. Finally, the stocks are arranged in ascending order of their hedge fund sentiments, as of Q3 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A laboratory cultivating cells for the development of gene and cell therapies.
Number of Hedge Fund Holders: 27
CRISPR Therapeutics AG (NASDAQ:CRSP) is focused on utilizing the revolutionary CRISPR-Cas9 gene-editing technology to develop transformative therapies for genetic diseases.
CRISPR Therapeutics AG (NASDAQ:CRSP) received a significant boost with the approval of a CRISPR-based therapy, Casgevy, for the treatment of sickle cell disease (SCD) and transfusion-dependent beta-thalassemia in patients aged 12 years and older. CRISPR Therapeutics AG (NASDAQ:CRSP) partnered with Vertex Pharmaceuticals for the development and commercialization of Casgevy, with strong initial uptake of the therapy. Transfusion-dependent beta-thalassemia (TDT) is a severe form of beta-thalassemia, a hereditary blood disorder caused by mutations in the HBB gene, which encodes the beta-globin component of hemoglobin.
TDT and SCD have high unmet medical needs. On a global basis, millions of patients are impacted, with a significant subset eligible for curative gene-editing treatments. Many patients are dependent on regular blood transfusions and face complications, making a potentially one-time curative therapy like Casgevy highly attractive.
Wall Street analysts expect high per-patient costs for Casgevy, which should significantly boost revenue. Furthermore, as a result of a strategic alliance with Vertex Pharmaceuticals, CRISPR Therapeutics AG (NASDAQ:CRSP) can leverage Vertex’s established commercial infrastructure and expertise, ensuring efficient market entry and scalability.
CRISPR Therapeutics AG (NASDAQ:CRSP)’s pipeline extends beyond Casgevy, with numerous promising candidates in various stages of development. Its allogeneic CAR-T cell therapy programs, mainly CTX112 for B-cell malignancies, demonstrated encouraging results.
Overall CRSP ranks 4th on our list of the best gene therapy stocks to buy right now. While we acknowledge the potential of CRSP as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than CRSP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
