Gene editing stocks represent one of the biggest investing trends in biopharma in recent years.

The gene editing field employs advanced technologies to edit the DNA of different organisms, thereby opening up possibilities for transformative treatment options. The most popular tool in the niche is CRISPR-Cas9, which has been touted for its precision, speed, and cost-effectiveness in modifying DNA.

However, with any transformative technology, breaking even takes time for companies. Therefore, investing in gene editing stocks has its risks, but the prospect of multi-bagger returns down the road is tough to ignore. The lure for investors doesn’t necessarily lie in immediate returns but rather in the robust growth potential these firms promise.

Therefore, it’s critical to approach this high-stakes realm with a mix of enthusiasm and caution. With that in mind, these three gene editing stocks fit the bill perfectly, offering substantial long-term upside.

Gene Editing Stocks To Buy: Crispr Therapeutics (CRSP)

Swiss biotech Crispr Therapeutics (NASDAQ:CRSP) is perhaps the earliest exponent of gene editing platforms, looking to target both rare and common diseases. Though it’s still in the pre-revenue stages, things will likely change dramatically this year. It recently got the green signal for its groundbreaking Casgevy therapy for treating sickle cell disease and transfusion-dependent beta-thalassemia. Consequently, analysts expect the firm to post $79.4 million in revenues this year and a whopping $330.7 million in 2025.

CRSP stock, though, has been laggard, having shed more than 12.8% of its value year-to-date (YTD). Much of this is linked to its inability to generate profits over the past decade since its inception. However, the past couple of years have been eventful, with the firm on a completely new trajectory. It’s advancing a promising pipeline of therapies targeting a variety of conditions, from blood diseases to cancer and diabetes, positioning it for explosive growth.

Vertex Pharmaceuticals (VRTX)

Vertex Pharmaceuticals (NASDAQ:VRTX) stands out as one of the most seasoned players in the biotech space. Unlike the sea of start-ups in the gene editing field, Vertex boasts a rich legacy in the pharma space, empowering it to leverage its massive financial resources.

In recent years, we’ve seen it dabbling into new areas like gene editing, targeting inflammatory and autoimmune disorders along with certain cancers. Moreover, it collaborated with Crispr Therapeutics on the development of the Casgevy therapy, which holds immense long-term potential as discussed earlier.

Vertex’s financials are in excellent shape, backed by a superb margin profile and growing sales.  Impressively, in its most recent quarter sales were up a heartening 13.3% year-over-year (YOY). Looking ahead to fiscal 2024, analysts expect the firm to post $10.75 billion in sales, marking a healthy 16.6% jump from the previous year. With these figures in play, VRTX stock is tough to ignore at current levels.

Beam Therapeutics (BEAM)

Beam Therapeutics (NASDAQ:BEAM) is another emerging startup in the gene editing arena that’s making waves with its novel prime editing techniques paired with CRISPR technology. Its innovative approach facilitates precise adjustments to specific parts of genes instead of a complete genetic replacement. Hence, the firm remains at the forefront of a sector brimming with tremendous potential, making it a compelling biopharma prospect.

Its flagship drug, BEAM-302, underscores the effectiveness of prime editing, targeting the direct cause of severe alpha-1 antitrypsin deficiency (AATD) with incredible precision. Also, from a financial perspective, Beam stands on robust ground, ending its most recent quarter with $1.2 billion in cash, as it projects funding operations through 2027. Hence, as an up-and-coming player in the niche, Beam continues pushing the boundaries of medical science while offering tremendous long-term upside ahead. Moreover, Wall Street assigns a consensus ‘buy’ rating to the stock, forecasting a 59% upside from current levels.

On the date of publication, Muslim Farooque 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

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.