In this article, we will take a look at the 5 gene editing stocks with the best long-term potential. To see more such companies, go directly to 12 Gene Editing Stocks With the Best Long-Term Potential.
5. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)
Number of Hedge Fund Holders: 38
Massachusetts-based Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) has several treatments in its pipeline based on gene therapies. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) in 2021 also entered into a deal with Beam Therapeutics to create new gene editing treatments.
A total of 38 hedge funds in Insider Monkey’s database of 943 hedge funds were bullish on Apellis Pharmaceuticals, Inc. (NASDAQ:APLS). The biggest hedge fund stakeholder of Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) was Kurt Von Emster’s VenBio Select Advisor which owns a $549 million stake.
4. Intellia Therapeutics, Inc. (NASDAQ:NTLA)
Number of Hedge Fund Holders: 39
Intellia Therapeutics, Inc. (NASDAQ:NTLA) shares jumped earlier this month after Canaccord Genuity started covering the stock with a Buy rating and a $66 price target. The firm cited Intellia Therapeutics, Inc. (NASDAQ:NTLA)’s expertise in the CRISPR-Cas9 gene editing technology. Canaccord’s analyst Whitney Ijem highlighted Intellia Therapeutics, Inc. (NASDAQ:NTLA)’s different approach in in-vivo gene editing and said that Intellia’s “methodical approach has paid off.”
Of the 943 hedge funds tracked by Insider Monkey, 39 hedge funds tracked by Insider Monkey had stakes in Intellia Therapeutics, Inc. (NASDAQ:NTLA). The total worth of these stakes was $690 million. The biggest stakeholder of Intellia Therapeutics, Inc. (NASDAQ:NTLA) was Catherine D. Wood’s ARK Investment Management which owns a $329 million stake.
3. Exact Sciences Corporation (NASDAQ:EXAS)
Number of Hedge Fund Holders: 39
Molecular diagnostics company Exact Sciences Corporation (NASDAQ:EXAS), which is focused on cancer, last year bought diagnostics company PreventionGenetics for $190 million. Exact Sciences Corporation (NASDAQ:EXAS) through the deal expanded its footprint in the hereditary cancer screening market.
Hedge fund sentiment for Exact Sciences Corporation (NASDAQ:EXAS) jumped in the fourth quarter of 2022. 39 hedge funds tracked by Insider Monkey had stakes in Exact Sciences Corporation (NASDAQ:EXAS), up from 34 hedge funds in the previous quarter. The most notable hedge fund stakeholder of Exact Sciences Corporation (NASDAQ:EXAS) was Catherine D. Wood’s ARK Investment Management which owns a $794 million stake.
2. Agilent Technologies, Inc. (NYSE:A)
Number of Hedge Fund Holders: 48
Agilent Technologies, Inc. (NYSE:A) makes tools for the gene editing space, including sample quality control (QC), next-generation sequencing (NGS) library prep and target enrichment, microarrays, CRISPR, PCR/qPCR, bioreagents and other solutions for data analysis and reporting.
Earlier this month, Agilent Technologies, Inc. (NYSE:A) launched Agilent SureSelect Cancer CGP (Comprehensive Genomic Profiling) Assay for somatic variant profiling for a range of solid tumors.
Out of the 943 hedge funds tracked by Insider Monkey, 48 hedge funds had stakes in Agilent Technologies, Inc. (NYSE:A) as of the end of the fourth quarter of 2022, up from 46 hedge funds in the previous quarter. The biggest stakeholder of Agilent Technologies, Inc. (NYSE:A) was Ian Simm’s Impax Asset Management which owns a $587 million stake in the company.
Cooper Investors made the following comment about Agilent Technologies, Inc. (NYSE:A) in its Q4 2022 investor letter:
“Agilent Technologies, Inc. (NYSE:A) finished a great year with +12% organic growth after a +15% year in 2021. As a supplier of liquid chromatography/ mass spectrometry instruments into the life sciences industry, Agilent enjoyed a period of super-normal growth over the 2020-2021 COVID pandemic. Like several of our healthcare and diagnostics investments Agilent de-rated quite sharply in the first half of 2022 as the market ‘faded’ the decline in COVID testing revenues. In our view this short term volatility obscures the high quality of Agilent’s business and long term growth opportunities. One example is environmental testing as mandated by the US EPA where US$4bn of funding in the infrastructure bill has been put aside for PFAS testing. As CEO Mike McMullen noted on the last call, ‘it’s the first time in my career we’ve seen this kind of government money coming in’.”
1. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Number of Hedge Fund Holders: 60
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) has been working on a key gene editing treatment in partnership with CRISPR. Recently, a US drug pricing group said that the Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) and CRISPR Therapeutics AG’s (CRSP.BN) one-dose gene editing therapy for sickle cell disease would be cost effective if priced at up to $1.9 million.
Earlier this month, the two companies completed a rolling submission of a Biologics License Application to the US FDA for exagamglogene autotemcel (exa-cel) for sickle cell disease and transfusion-dependent beta thalassemia.
Hedge fund sentiment for the stock saw a boost in the fourth quarter, as 60 hedge funds ended the period with Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) shares in their portfolios, up from 49 hedge funds at the end of the third quarter.
Artisan Partners made the following comment about Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its Q3 2022 investor letter:
“Biotechnology company Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) dominates the market for treatment of cystic fibrosis (CF) with limited competition. In addition to solid growth in CF revenues that has driven better-than-expected results, positive progress in its development pipeline has lifted shares. At the time of our Q2 2021 purchase, the stock was under pressure due to regulatory hurdles and Vertex’s decision not to pursue late-stage development of VX-864 after an unexpectedly unfavorable outcome. VX-864 is designed to treat alpha-1 antitrypsin deficiency (AATD), which is an inherited disorder with a strong correlation to pediatric liver disease. Irrespective of Vertex’s AATD pipeline, the company has nearly two decades of patent protection remaining for its CF franchise. Management maintains a healthy reserve of cash and is focusing on research and development. We believe near-term growth is likely to be driven by Vertex’s expanding geographic presence and expansion of medicines to lower age groups, with long-term gains arising from the company’s diversifying pipeline.”
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