Among the more prominent gene-editing stocks on the market, investors in this space pay particularly close attention to CRISPR Therapeutics (NASDAQ:CRSP). That’s due to the fact that CRISPR is among the leading players in the high-growth biotech industry developing gene-based medicines using CRISPR/Cas9 gene-editing technology. Today, CRSP stock has been halted in anticipation of a key U.S. Food and Drug Administration (FDA) advisory decision, leading many investors to pay even closer attention to shares this afternoon.
It’s unclear when CRSP stock will begin trading again, or what the FDA committee’s ultimate ruling will be. Per the company’s statement on the halt:
“The U.S. Food and Drug Administration’s (FDA) Cellular, Tissue, and Gene Therapies Advisory Committee is meeting today to review the Biologics License Application (BLA) for exagamglogene autotemcel (exa-cel) for the treatment of sickle cell disease (SCD) in people ages 12 and older with recurrent vaso-occlusive crises.”
With that in mind, we’ll likely see some serious volatility whenever CRSP stock does resume trading. Let’s dive into what to make of this halt — and what investors should be watching.
CRSP Stock Halted Pending FDA Advisory Decision
This trading halt took me and many others in the market by surprise. Given the downward trajectory of CRSP stock over the past five days (shares have lost nearly 5% over this short time frame alone), it appears any sort of positive news around an FDA ruling certainly hasn’t been leaked. If insiders knew about something, they likely didn’t act; CRSP has moved lower, but so have many higher-beta stocks in the market over the past week.
If this landmark gene-edited therapy for sickle cell disease is approved, that could be a big deal for CRISPR Therapeutics, which was expecting a decision on its proposed therapy by Dec. 8, 2023. It’s unclear what a meeting prior to this date means, for better or for worse. But for now, investors both on the bullish and bearish side of the table are anxiously awaiting news.
Personally, I wouldn’t be surprised to see a double-digit percentage move following this stock’s resumption of trading. Whatever the verdict is, CRSP stock will have its trajectory altered in a big way by the decision. Thus, investors already in CRSP may want to strap in for some volatility this week.
On the date of publication, Chris MacDonald did not hold (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.
