Why Are Gene-Editing Stocks CRSP, EDIT, NTLA Stock Up Today?


  • Advanced biotech firm CRISPR Therapeutics (CRSP) jumped on a potentially lucrative drug.
  • Other gene-editing stocks popped higher in sympathy.
  • While compelling, this sector presents significant risks.
gene-editing stocks - Why Are Gene-Editing Stocks CRSP, EDIT, NTLA Stock Up Today?

Source: Natali_ Mis/ShutterStock.com

Against the backdrop of a solid day on Wall Street, CRISPR Therapeutics (NASDAQ:CRSP) distinguished itself, popping up nearly 16%. The catalyst appears to center on CRISPR’s single-dose therapy for sickle cell disease (SCD), which it’s developing with Vertex Pharmaceuticals (NASDAQ:VRTX). Per a drug-pricing group, the drug may prove lucrative. Because of the potential for underlying advanced biotechnologies to usher in a paradigm shift in medicine, gene-editing stocks responded positively.

According to The Motley Fool, CRSP stock bounced after the Institute for Clinical and Economic Review stated that the SCD drug the two biotechnology firms are developing — called exa-cel — may be cost effective if priced below $1.9 million. Presently, the partners await word from the Food and Drug Administration (FDA) for exa-cel’s approval to treat SCD. As well, they seek approval for exa-cel’s other indication for transfusion-dependent beta thalassemia (TDT), another rare genetic blood disorder.

According to the Institute for Clinical and Economic Review’s Chief Medical Officer David Rind, “[s]ickle cell disease can affect nearly every organ system in the body, and severe sickle cell disease affects nearly every aspect of a person’s life.”

Further, Dr. Rind added, “From the earliest days of gene therapy, patients, families, and clinicians have imagined that someday it might be possible to address the underlying genetics of sickle cell to achieve a cure. These first two genetic therapies, using different technologies and altering different genetic targets may mean that day has nearly arrived.”

Because of Dr. Rind’s support of exa-cel and its broader implications, gene-editing stocks like Editas Medicine (NASDAQ:EDIT) and Intellia Therapeutics (NASDAQ:NTLA) jumped in sympathy.

Gene-Editing Stocks Offer Massive Upside But Also Carry Risks

While CRSP managed to steal the show on the Street today, the SCD therapeutic announcement presents tailwinds for other gene-editing stocks. Notably, NTLA jumped nearly 13% while EDIT found itself inching toward 19% up.

Fundamentally, the innovations undergirding gene-editing stocks may forever change medicine. According to government resource MedlinePlus, “[g]enome editing (also called gene editing) is a group of technologies that give scientists the ability to change an organism’s DNA. These technologies allow genetic material to be added, removed, or altered at particular locations in the genome.”

Therefore, rather than relying on harsh attacks on disease that may harm patients as well, gene-editing offers targeted therapeutics. Theoretically, the innovation should alter society and the economy for the positive.

However, investors also need to apply a cautious approach with gene-editing stocks. While the science compels, it’s still largely unchartered territory.

Why It Matters

Interestingly, investor and entrepreneur Cathie Wood’s ARK Innovation ETF (NASDAQ:ARKK) acquired more shares of CRSP stock. In addition, Cantor Fitzgerald analyst Olivia Brayer recently initiated coverage of CRISPR with a “buy” rating. The expert’s price target stands at $72, which implies over 44% upside potential.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

Article printed from InvestorPlace Media, https://investorplace.com/2023/04/why-are-gene-editing-stocks-crsp-edit-ntla-stock-up-today/.

©2023 InvestorPlace Media, LLC