stock is up more than 12% after the gene editing pioneer reported its Q4 2025 earnings on Feb. 13. At first glance, that may seem contradictory.
The company posted a larger net loss than forecast, and revenue came in at a fraction of expectations.
But CRISPR is a long-term story that is still in the early innings. The company has moved past its proof-of-concept phase, but investors will have to be patient. The payoff as the company moves into a mature growth phase is likely a year or two away.
Putting the Earnings Report Into Context
In December 2023, CRISPR received U.S. Food & Drug Administration (FDA) approval for CASGEVY. This was the company’s flagship gene therapy for sickle cell disease and beta thalassemia. It was the first CRISPR/Cas9 gene-editing technology to be approved by the FDA.
CRSP stock, however, is down approximately 19% since that announcement. Some of that has to do with growth already being priced in. However, some of it has to do with the nature of CRISPR’s partnership with
The partnership was critical to getting CASGEVY approved. But it also comes with a revenue split arrangement whereby CRISPR only recognizes revenue after Vertex has recouped a certain share of its launch and manufacturing costs. So while CASGEVY generated $54 million in the most recent quarter, CRISPR reported quarterly revenue of just $0.86 million.
This helps frame the investment thesis for CRSP stock. On the one hand, there is an increase in patients receiving CASGEVY. On the other hand, the company is reporting larger losses from operations as it works to bring additional pipeline candidates to market. The key number may be the company’s cash and investment balance of around $1.9 billion. That should provide a runway of three to four years.
The Pipeline Holds the Key
Even if adoption for CASGEVY continues to accelerate, there are structural costs that will make financial viability challenging. The treatments are given at once and at a high cost. That will require payment plans that stretch out revenue recognition.
That’s where, as with most biotechnology stocks, CRISPR’s pipeline comes into play. One of the more promising candidates is CTX611. This is in clinical trials for the prevention of blood clots (caused by strokes or deep vein thrombosis). The treatment targets the Factor XI protein, which is involved in bad clot formation, without impacting normal blood clotting for minor, everyday cuts.
CRISPR is currently testing CTX611 (SRSD107) in a Phase 2 trial for total knee arthroplasty (TKA). Blood clotting is a common post-operative complication in TKA procedures.
Early data in humans show it’s been well tolerated and produces strong, durable effects, with the potential for dosing as infrequently as every six weeks via the company’s siRNA platform, which also allows for designed reversibility.
If larger trials confirm lower bleeding risk plus convenient, infrequent dosing, CTX611 could tap into a roughly 20-billion-dollar global anticoagulation market and become a meaningful growth driver.
One Thing to Check Before Getting Involved With CRSP Stock
Analyst sentiment corroborates the “wait-and-see” story for CRISPR Therapeutics. The consensus rating is a Hold, punctuated by two sell ratings. That includes the recent Underweight rating issued by Morgan Stanley. Notably, the firm assigned a price target of $33 to CRSP stock, which would put it within approximately 10% of its 52-week low.
While the overall chart wouldn’t seem to support such a move, which would push the stock down about 37%, it’s worth noting that as of this writing, CRSP stock was trading right at the 200-day moving average. This has acted as support since November, and a confirmed break to the downside could bring more sellers into the picture.
CRSP Stock Is One to Own, Not Trade
It’s been a wild ride for long-term CRSP shareholders. But it’s important to note that it hasn’t been unprofitable. Since the company’s initial public offering in 2016, investors have received a total return of over 277%. However, that includes a period in 2020 and 2021 when the stock got caught up in the meme-stock mania, which may have encouraged some profit-taking.
The point is that CRISPR Therapeutics is delivering on the promise of its pipeline. However, it’s not delivering as fast as some investors would like. CRSP stock may not fit the portfolio of short-term traders who are looking for sharp price movements. But it may be an ideal fit for investors who have room in their portfolio for a stock with the potential for significant gains by the end of the decade.
Original Post
