We came across a bullish thesis on CRISPR Therapeutics AG (CRSP) on wallstreetbets Subreddit Page by MADD-Scientis. In this article, we will summarize the bulls’ thesis on CRSP. CRISPR Therapeutics AG (CRSP)’s share was trading at $40.97 as of March 18th. CRSP’s trailing and forward P/E were 22.55 and 23.36 respectively according to Yahoo Finance.
A lab scientist peering into a microscope focused on gene editing technology.
CRISPR Therapeutics (CRSP) is a pioneering biotech firm leveraging CRISPR gene editing technology to develop breakthrough treatments for genetic diseases. Its lead product, Casgevy, was co-developed with Vertex Pharmaceuticals and has become the new standard of care for sickle cell disease. CRSP earns 40% of Casgevy’s profits while Vertex handles commercialization, a strategic advantage given Vertex’s expertise in securing insurance reimbursement and physician adoption. Analysts project that Casgevy could generate $1 billion in sales by 2026 and reach $3.5 billion by 2030, with early patient uptake already underway. At a price of $2.2 million per treatment, just a few hundred patients could significantly impact CRSP’s revenue, making it a potential high-margin blockbuster.
CRSP’s valuation is currently weighed down by skepticism around the commercial viability of one-time curative therapies versus traditional chronic treatments. However, recent progress in securing insurance reimbursement, particularly through outcomes-based agreements (OBA), supports broader patient access and strengthens its long-term commercial outlook. With a market cap of $3.67 billion and an enterprise value of $1.8 billion, CRSP holds $1.9 billion in net cash, providing ample runway to fund operations and pipeline expansion. Given its quarterly operating expenses of approximately $130 million, dilution risk remains low, a rare trait for biotech firms at this stage.
The macro environment is shifting favorably for biotech, as anticipated rate cuts could drive renewed investor interest in growth sectors. Additionally, CRSP is poised for multiple near-term catalysts, with clinical data readouts expected in April/May and June/July. The company’s extensive pipeline includes wholly owned programs in gene editing and regenerative medicine, potentially unlocking significant upside beyond Casgevy. Notably, its in vivo liver editing candidates, CTX310 and CTX320, targeting LPA and ANGPTL3, could represent major breakthroughs in treating cardiovascular diseases. Meanwhile, its allogeneic CAR-T therapies, CTX112 and CTX131, offer a low-cost, scalable approach to oncology, a market that has seen billion-dollar deals for similar platforms.
Despite its promising outlook, risks remain. Patients may be hesitant to undergo the intensive conditioning regimen required for Casgevy, and insurance adoption could take time. Additionally, competitors are developing alternative gene-editing approaches, such as base and prime editing, that could challenge CRSP’s leadership. However, given its strong institutional ownership (70%), short interest of nearly 25% (raising the potential for a short squeeze), and a projected net present value (NPV) of $6 billion, CRSP offers a compelling investment case. With a conservative valuation assuming only Casgevy revenue, shares could be worth ~$132, representing over 230% upside. If its broader pipeline delivers, the long-term potential could be even greater.
CRISPR Therapeutics AG (CRSP) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held CRSP at the end of the fourth quarter which was 27 in the previous quarter. While we acknowledge the risk and potential of CRSP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an 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.
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Disclosure: None. This article was originally published at Insider Monkey.