Top 5 CRISPR Stocks To Invest In

In this article, we discuss the top 5 CRISPR stocks to invest in. If you want to read our discussion of the gene editing industry, head over to Top 11 CRISPR Stocks To Invest In. 

5. Exact Sciences Corporation (NASDAQ:EXAS)

Number of Hedge Fund Holders: 45

Exact Sciences Corporation (NASDAQ:EXAS) specializes in cancer screening and diagnostic test products, operating both in the United States and internationally. Their flagship product is Cologuard, a non-invasive stool-based DNA screening test designed to detect DNA and hemoglobin biomarkers associated with colorectal cancer and pre-cancer. It is one of the best gene editing stocks to invest in. 

On January 2, Benchmark upgraded Exact Sciences Corporation (NASDAQ:EXAS) stock to Buy and included it among its “best ideas” for 2024. The investment firm anticipates that Exact Sciences Corporation (NASDAQ:EXAS) will benefit from consistent growth in its core business, ongoing advancements in the new product pipeline, and a favorable interest rate environment. 

According to Insider Monkey’s third quarter database, 45 hedge funds were long Exact Sciences Corporation (NASDAQ:EXAS), same as the prior quarter. Ken Griffin’s Citadel Investment Group is a prominent stakeholder of the company, with 1.7 million shares worth $115.7 million. 

Artisan Small Cap Fund made the following comment about Exact Sciences Corporation (NASDAQ:EXAS) in its Q3 2023 investor letter:

“Among our top detractors were Lattice Semiconductor, Shockwave and Exact Sciences Corporation (NASDAQ:EXAS). Exact Sciences is a leading provider of diagnostic testing and maker of the noninvasive colorectal cancer screening test Cologuard®. The stock was a top performer through the first half of the year but pulled back in Q3. The company reported strong financial results as 31% growth in screening revenues (mostly Cologuard®) drove an overall 19% revenue increase. However, screening revenues fell slightly short of elevated expectations and were not good enough to support the stock’s year-to-date outperformance. We continue to be bullish on Cologuard’s® long-term growth potential; the addressable market expanded significantly in 2021 when the United States Preventive Services Task Force lowered the recommended age for colorectal cancer screenings to 45 from 50. Our research indicates the lowered screening age expands the company’s addressable market by ~18 million unscreened individuals. We also believe meaningful long term opportunities exist as the company develops additional high-value cancer tests.”

4. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Number of Hedge Fund Holders: 50

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a global biopharmaceutical company engaged in the discovery, development, manufacturing, and commercialization of medicines for eye disorders, allergies, inflammatory diseases, cardiovascular issues, infectious diseases, and rare diseases. It is one of the top gene editing stocks to invest in. 

On October 3, 2023, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) and Intellia announced an extended research partnership aimed at developing CRISPR-based therapies for treating neurological and muscular diseases. The collaboration leverages Intellia’s advanced genome editing platform, including its exclusive Nme2Cas9 technology, in conjunction with Regeneron’s proprietary antibody-targeted viral vector delivery technologies. Together, the two companies aim to advance in vivo programs targeting neurological and muscular diseases beyond the liver.

According to Insider Monkey’s third quarter database, 50 hedge funds were bullish on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), compared to 56 funds in the prior quarter. D E Shaw is the leading stakeholder of the company, with 370,421 shares worth $304.8 million. 

Bronte Capital Amalthea Fund made the following comment about Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its Q3 2023 investor letter:

“In the last quarterly letter, we discussed the problems in our long book. These were:

1. a) companies that sell technical products to improve the conversion of grain into meat (such as animal genetics and feed additives), and
2. b) Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), which had received a “Complete Response Letter” (an FDA rejection) for their new longer-lasting wet age-related macular degeneration drug.

The first of these problems has persisted. Grain prices remain high relative to meat prices and the stocks in question have followed their quality European peers down. The two losers in this sector are Genus and DSM-Firmenich…” (Click here to read the full text)

3. Gilead Sciences, Inc. (NASDAQ:GILD)

Number of Hedge Fund Holders: 55

Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company focused on discovering, developing, and commercializing medicines to address unmet medical needs globally. The company’s product portfolio includes treatments for HIV/AIDS, viral hepatitis, oncology, pulmonary arterial hypertension, and serious invasive fungal infections. It is one of the best gene editing stocks to invest in.

On August 17, 2020, Gilead Sciences, Inc. (NASDAQ:GILD) and Tango Therapeutics announced an expanded strategic collaboration, focusing on discovering, developing, and commercializing targeted immune evasion therapies for cancer patients. Building on their 2018 agreement, Tango will utilize its CRISPR-enabled functional genomics platform to identify novel immune evasion targets, increasing the number from five to 15. Gilead will have options for worldwide rights to programs targeting these newly identified targets over the next seven years. 

According to Insider Monkey’s third quarter database, 55 hedge funds were long Gilead Sciences, Inc. (NASDAQ:GILD), compared to 56 funds in the earlier quarter. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with 4.7 million shares worth $357.7 million. 

In its fourth quarter 2023 investor letter, ClearBridge Dividend Strategy stated the following regarding Gilead Sciences, Inc. (NASDAQ:GILD):

“In the second half of 2023 — as we were selling low-growth, high-multiple stocks and taking advantage of oversold conditions in infrastructure, real estate and utilities — we also found opportunities in overlooked areas of health care. After adding Gilead Sciences, Inc. (NASDAQ:GILD) in the third quarter, we bought AstraZeneca in the fourth quarter. Each of these stocks present distinct investment cases, but both are reasonably valued and have limited patent expiry or pipeline risk. Gilead’s strength comes from its dominant franchise in HIV. It offers lower growth, but it yields nearly 4% and trades at 11x earnings. AstraZeneca possesses a diversified portfolio of pharmaceuticals, which should deliver double-digit earnings growth, yet it trades at just 16x earnings. These stocks were underwritten individually, but collectively we like the idea of increasing our exposure to defensive and growing health care names at below-market multiples.”

2. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Number of Hedge Fund Holders: 57

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a biotechnology company focused on developing and commercializing therapies for cystic fibrosis. It is one of the best gene editing stocks to buy. On January 16, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) announced that it recently received FDA approval for its groundbreaking gene editing therapy, Casgevy, developed in collaboration with CRISPR Therapeutics. The approval is for individuals aged 12 years and older with transfusion-dependent beta-thalassemia (TDT). This follows the earlier FDA clearance for Casgevy in sickle cell disease, marking it as the first gene editing therapy to be approved in the U.S. Vertex also announced that nine clinical centers in the U.S. are now authorized to provide Casgevy for TDT patients, with additional sites scheduled to be launched in the coming weeks. 

According to Insider Monkey’s third quarter database, 57 hedge funds were bullish on Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), compared to 54 funds in the last quarter. Ian Simm’s Impax Asset Management is the largest stakeholder of the company, with 558,138 shares worth $193.7 million. 

Global Equity Strategy stated the following regarding Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its fourth quarter 2023 investor letter:

“Health Care outperformed due to a strong showing by US-based Vertex Pharmaceuticals, even as other holdings in the sector posted weak returns. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) reported positive phase 2 trial data for a drug to address diabetic neuropathic pain.

The potential for technological innovation to create shareholder value goes far beyond the effects of Al, of course. For example, Vertex Pharmaceuticals is building a significant competitive advantage through its unique approach to drug discovery.

Unlike most drug developers, which focus on mitigating symptoms of an illness, Vertex seeks to understand and address the causal biology of a disease more fully. This approach has helped the company establish a wide lead in treating cystic fibrosis (CF), a rare disease that causes mucus buildup in organs such as the lungs. Vertex’s research and treatments have targeted the root cause of CF, which is that a particular protein becomes misfolded and unable to move chloride out of a cell, resulting in an imbalance between salt and water. Its scientists have been able to do this by working with the lung cells of real CF patients, an advantage over using engineered animal cells to simulate the disease-causing mechanism to determine which drug candidate is most promising for humans. Vertex’s latest therapy, approved in 2019, is Trikafta, a combination of three medicines that targets a mutation found in 90% of CF patients. Vertex is now using the same approach to address other illnesses. In 2023, Casgevy, its treatment for sickle cell disease, became the first CRISPR-based gene-editing therapy to receive regulatory approval. (CRISPR, a technology honored by the Nobel Prize in 2020, allows scientists to make precise changes to parts of the genome, the set of DNA instructions found in a cell.) By correcting the faulty gene that causes sickle cell disease, Casgevy could offer a one-time therapy to cure approximately 16,000 patients who have the red blood cell disorder-a significant improvement over the usual course of treatment, which is merely to manage symptoms through blood transfusions and pain medicines…” (Click here to read the full text)

1. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 73

Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company engaged in discovering, developing, manufacturing, and selling medicines and vaccines worldwide. The company’s portfolio includes products in therapeutic areas such as cardiovascular, metabolic, infectious diseases, women’s health, and COVID-19 prevention and treatment. It is one of the best gene editing stocks to monitor. 

On July 6, 2023, Pfizer Inc. (NYSE:PFE) invested $25 million in Caribou Biosciences, expressing confidence in the gene-editing company and providing additional funding for its experimental multiple myeloma treatment, CB-011. The investment is earmarked for advancing CB-011, currently in Phase 1 testing for relapsed or refractory multiple myeloma patients. In return, Pfizer Inc. (NYSE:PFE) obtains a right of first negotiation if Caribou explores discussions with potential partners for CB-011. This investment not only boosts investor sentiment but also brings Pfizer’s developmental expertise to support Caribou’s efforts.

According to Insider Monkey’s third quarter database, 73 hedge funds were bullish on Pfizer Inc. (NYSE:PFE), same as the prior quarter. D E Shaw is the leading stakeholder of the company, with 13.15 million shares worth $436.2 million. 

Smead Value Fund made the following comment about Pfizer Inc. (NYSE:PFE) in its Q3 2023 investor letter:

“Through the first nine months of the year, we had a gain of 2.10%. The S&P 500 had a gain of 13.07% and the Russell 1000 Value had a gain of 1.79%. The stock market realized markedly higher riskless US Treasury interest rates had their effect on the stock market as it began to reassert what Warren Buffett calls the “gravitational pull” on price-to-earnings ratios (P/E).

On the downside, Target (TGT), Bank of America (BAC) and Pfizer Inc. (NYSE:PFE) detracted the most in the first nine months of the year. Pfizer (PFE) is suffering from a fall-off in Covid-19 vaccinations and we are trying to figure out what to do with it as a small holding.”

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