Crispr stock has been on a tumultuous journey, experiencing a significant decline for the fifth consecutive week as investors grapple with tempered expectations surrounding its new gene-editing drug, Casgevy, developed in partnership with Vertex Pharmaceuticals. The recent struggles of Crispr Therapeutics, one of Cathie Wood’s top holdings, have been exacerbated by the challenges encountered in the commercialization of Casgevy, particularly in comparison to the rival gene therapy Lyfgenia from Bluebird Bio.
Despite both drugs receiving FDA approval on December 8 for the treatment of sickle cell disease, the road to market success has been arduous. Bluebird Bio’s recent disclosure of zero Lyfgenia sales in the fourth quarter has underscored the difficulties inherent in bringing complex genetic therapies to market. Similarly, Crispr has yet to report any revenue from Casgevy, despite its approvals in multiple countries.
The complexities of these therapies, which involve conditioning regimens and intricate treatment processes, have contributed to delays in revenue recognition. For instance, Casgevy requires patients to undergo conditioning regimens before receiving edited cells, a process that can span several months. Similarly, Lyfgenia necessitates patients to cease current treatments and undergo blood transfusions over an extended period.
While Mizuho Securities analyst Salim Syed maintains a buy rating on Crispr stock, citing its long-term potential, the recent bearish trend has raised concerns. Last week, the stock crossed its 50-day moving average, signaling a potential downtrend. Despite its strong Relative Strength Rating of 87, indicating outperformance compared to most stocks over the past year, there has been a decline from its previous rating of 94. Nonetheless, Crispr stock retains a robust IBD Digital Composite Rating of 94, reflecting solid fundamentals and technical metrics.
The future trajectory of Crispr stock hinges on its ability to navigate the challenges associated with commercializing Casgevy effectively and demonstrate tangible progress in revenue generation. Investors will closely monitor upcoming developments in the gene-editing sector, particularly as companies strive to unlock the full potential of their innovative therapies.