We recently compiled a list of the Top 11 CRISPR Stocks to Invest In. In this article, we are going to take a look at where Qiagen N.V. (NYSE:QGEN) stands against the other CRISPR stocks.
The pharmaceutical industry is buzzing with innovation, driven by the need for new treatments, tackling unmet medical challenges, and leveraging cutting-edge technologies like pharmacogenomics, digital therapeutics, and artificial intelligence. Among the most exciting breakthroughs are gene therapy and gene editing, with CRISPR-Cas9 leading the charge. This remarkable tool, inspired by bacteria’s natural defenses, acts like precise genetic scissors—faster, cheaper, and more accurate than other genome-editing methods.
Back in 2014, CRISPR and its associated Cas proteins were mostly limited to academic research, generating a lot of excitement but seeming far from real-world applications. Just six years later, after earning a Nobel Prize, CRISPR began to make its way into over 20 clinical trials. The COVID-19 pandemic further demonstrated its potential, with CRISPR-based tests delivering quick and accurate virus detection, while experimental treatments explored its use against the virus—showcasing the technology’s incredible flexibility in tackling public health crises.
The CRISPR technology market is poised for explosive growth. Coherent Market Insights estimates it will be worth $3.64 billion in 2024 and climb to more than $12.46 billion by 2031, growing at an impressive annual rate of 19.2%. Cell and gene therapies are game-changing for treating certain cancers and rare diseases. As of 2024, there are 38 FDA-approved cell and gene therapy products, including six CAR-T cell therapies targeting cancers like lymphoma, leukemia, and multiple myeloma. Several gene therapies are also available for rare genetic disorders, such as spinal muscular atrophy and Duchenne muscular dystrophy. The industry’s focus has evolved from simply proving these therapies work to optimizing their effectiveness, minimizing side effects, and broadening their applications.
However, these therapies can come with eye-watering price tags—ranging from $400,000 to $2 million per dose. Although the sector has faced tough investment conditions since its boom in 2020 and 2021, there are signs of a rebound. Investments in the first half of 2024 reached $10.9 billion, surpassing 2019’s $9.8 billion, though still shy of the record $19.9 billion and $22.7 billion seen in 2020 and 2021. Funding dipped to $12.6 billion in 2022 and $11.7 billion in 2023. But there’s hope: Morgan Stanley suggests that Federal Reserve interest rate cuts could breathe new life into riskier assets like cell and gene therapies, aligning with a broader recovery in biotech.
The regulatory landscape for gene and regenerative therapies has also come a long way. In the U.S., the FDA has created clearer pathways for development, aided by the Regenerative Medicine Advanced Therapy (RMAT) designation, which speeds up review times and offers additional support to developers. Similarly, Europe has made strides with its guidelines for Advanced Therapy Medicinal Products (ATMPs). In 2017, the European Commission introduced a joint action plan to simplify processes for companies. While there’s still progress to be made, the push toward harmonized international regulations has made it easier for companies to secure approvals across multiple regions.
Our Methodology
To identify the top 11 CRISPR stocks to invest in, we started by analyzing companies in the sector using ETF holdings and media coverage. We then narrowed down the list by focusing on top-performing stocks with the highest number of hedge fund investors, as tracked by Insider Monkey’s database of 900 hedge funds at the end 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 scientist in a lab coat using the latest medical equipment for nucleic acid purification.
Qiagen N.V. (NYSE:QGEN)
Number of Hedge Fund Holders: 26
Qiagen NV (NYSE:QGEN) is a leading provider of sample and assay technologies for molecular diagnostics, applied testing, academic, and pharmaceutical research. Renowned for its robust portfolio in healthcare, the company focuses on biotechnology, genomics research, and point-of-care diagnostics. Qiagen NV (NYSE:QGEN) recently enhanced its product offerings with the introduction of the QIAprep& CRISPR Kit and CRISPR Q-Primer Solutions, which streamline gene-editing workflows by integrating liquid-based sample preparation with PCR detection and Sanger sequencing.
On December 9, Jefferies initiated coverage of Qiagen NV (NYSE:QGEN) with a Buy rating and a price target of $54. The firm highlighted Qiagen’s competitive edge through its comprehensive product lineup spanning sample technologies, molecular diagnostics (qPCR and dPCR), and genomic consumables. Qiagen’s strong presence in high-margin sample-prep instrumentation and blood-based tuberculosis testing provides a solid foundation for its growth. Jefferies also cited the company’s Five Pillar growth strategy, which aims to deliver double-digit earnings growth through 2028, driven by mid-to-high single-digit revenue growth.
Qiagen NV (NYSE:QGEN) exceeded Q3 expectations, reporting $502 million in sales, reflecting a 6% increase at constant exchange rates. Adjusted diluted EPS reached $0.57, surpassing the $0.55 estimate. The company raised its 2024 adjusted EPS target to $2.19, up from $2.16, and projected a minimum Q4 adjusted EPS of $0.60. Key growth drivers included the Diagnostic Solutions product group and consumables, with the QIAstat product line achieving an impressive 40% growth. Moreover, the company reaffirmed its 2024 sales outlook, forecasting at least $1.985 billion.
Overall QGEN ranks 4th on our list of the top CRISPR stocks to invest in. While we acknowledge the potential of QGEN as an investment, our conviction lies in the belief that certain 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 QGEN 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 is originally published at Insider Monkey.
