10 Most Promising Biotech Stocks According to Hedge Funds

8. CRISPR Therapeutics AG (NASDAQ:CRSP)

Average Upside: 62.22%

Number of Hedge Fund Holders: 29

CRISPR Therapeutics AG (NASDAQ:CRSP), based in Zug, Switzerland, with operations in the U.S., is a biotechnology company leveraging the CRISPR gene-editing platform to develop treatments for both rare and common diseases. The company is advancing its pipeline with two key programs: CTX131, in Phase I trials for relapsed/refractory hematologic malignancies, and CTX112, also in Phase I for Systemic Lupus Erythematosus (SLE).

Needham recently lowered the price target on CRSP from $88 to $84 but maintained a Buy rating. The adjustment followed the company’s report of no Casgevy sales in Q2 2024. Despite the absence of sales, CRISPR Therapeutics AG (NASDAQ:CRSP) made strides in patient engagement, with about 20 patients undergoing cell collection for treatment—up from five in Q1. Additionally, more than 35 Authorized Treatment Centers (ATCs) are now operational.

The firm also revised its sales projections for Casgevy, reducing the 2024 forecast to $17 million from $43 million, and the 2025 forecast to $182 million from $304 million.

According to Insider Monkey, 29 of the 912 hedge funds profiled in Q2 2024 held positions in CRISPR Therapeutics AG (NASDAQ:CRSP). Cathie Wood’s ARK Investment Management was the largest shareholder, with $420.1 million in holdings.