CRSP: Investors motivated by a unique price and an intriguing pipeline
VSrispr Therapeutics AG (CRSP) offers a chance to buy into a pipeline of potential therapies, which, although not yet proven, have shown early success during its clinical trials. Although this company does not have a product on the market yet, after listening to Samarth Kulkarni, CEO of Crispr, I am convinced enough of his leadership and the technology his company has developed to say that I am very optimistic about it. title.
Kulkarni explained that the fundamental bet the company is making (and all investors are making with it) is that intelligent engineered cells can selectively target and kill cancer cells. I believe they are right. CRSP is creating these smart engineering cells and two other types of smart engineering cells that have the potential to change healthcare as we know it today. These cells could add what Kulkarni estimates to be ten years to the average human lifespan.
The first type of modified cell that CRSP created takes stem cells from a patient, reconfigures them using CRISPR technology, and then puts them back into the patient’s body to properly produce a protein and cell type. This will (hopefully) be used to treat conditions like sickle cell anemia and cystic fibrosis.
The second type of technology the company is creating will produce engineered immune cells that will specifically target and kill cancer cells (as Kulkarni described in the quote above).
The third would be to use CRISPR and stem cells to create standard organs, like the pancreas, that can treat type one and type two diabetes.
Truth be told, these goals, and the mission of the company in general, sound more like science fiction than something I would generally be optimistic about investing in. However, this company indicated that the technology works, in the first data reads of their studies. CTX-001 has shown in the first clinical trials that 17 people treated with the modified cells appeared as if the cells had functionally treated the disease. In other words, these 17 people are no longer suffering from the effects of sickle cell anemia or thalassemia (the diseases that CTX-001 treats).
The company also conducted a phase 1 clinical trial to define the toxicity of another therapy (CTX-110). Although the study did not specifically measure the effectiveness of the treatment, the company was able to say that not all people who received the treatment had cancer for a year.
Recent results and dividend
CRSP shares are trading between $ 68.02 (the 52-week low set on December 3, 2021) and $ 220.20 (the 52-week high set on January 14, 2021).
The CRSP generated revenues of $ 902.4 million in the past twelve months with a net profit of $ 411.0 million. This figure is a bit misleading as the company sold a 10% stake in CTX-001 to its partner, and that revenue is reported here. CRSP currently has no product on the market. It has also not received regulatory approval to market a product.
The company reported third quarter earnings of $ -1.67 per share, beating analysts’ estimates of $ -1.75 per share by $ 0.06.
The CRSP does not currently pay any dividends.
The company has a strong set of financial statements, as long as it has enough cash to fund its operations for another four years at its current burn rate.
The Taking of Wall Street
13 Wall Street analysts currently cover the CRSP and have released 12-month price estimates. Of the 13, ten rate the stock as a buy and three rate a wait, with a forecast high of $ 220.00 and a low of $ 90.00. The CRSP’s average price target of $ 153.70 implies a 127.2% hike.
TipRanks.com shows that of the 21 bloggers who blogged on CVS, 85% are bullish, while the industry average is around 69% bullish.
Based on the strength of CRSP’s early clinical data, pipeline, partner commitments, and the strength of the company’s management team, I am optimistic about this title. If the company can hit half of what seems possible based on its early readings of clinical data, this company could change medicine as we know it today. I am delighted to see where the company is going and the share price compared to where they are today.
Disclosure: At the time of publication, Tim O’Rourke does not own any titles mentioned in this article.
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