CRISPR (CRSP) Q4 Earnings Top on Collaboration Revenues, Stock Up
CRISPR Therapeutics CRSP reported earnings of $1.10 per share for the fourth quarter of 2023 against the Zacks Consensus Estimate of a loss of 40 cents. In the year-ago period, the company had incurred a loss of $1.41 per share.
The positive result was driven by collaboration revenue received from Vertex VRTX in connection with the approval of Casgevy (exagamglogene autotemcel [exa-cel]) for two blood disorder indications. Shares of CRSP rose 4.7% on Feb 21 as investors cheered the encouraging financial result.
Casgevy was approved by the FDA in the United States for the sickle cell disease (SCD) indication in December 2023 and for the transfusion-dependent beta thalassemia (TDT) indication in January 2024. Casgevy secured its first-ever approval/authorization in the United Kingdom in November 2023. Casgevy was approved in the EU (conditional approval) for both SCD and TDT earlier this month.
CRISPR reported total revenues of $201.2 million in the fourth quarter of 2023, beating the Zacks Consensus Estimate of $138 million. The total figure comprises the $200 million collaboration revenues received from Vertex and the grant revenues of $1.2 million. In the year-ago quarter, revenues were less than $0.1 million.
Quarter in Detail
In the reported quarter, research and development expenses fell 8% year over year to $95.1 million, owing to reduced variable external research and manufacturing costs.
Also, general and administrative expenses declined 22% to $16.5 million due to a fall in external professional costs.
Collaboration expenses in the quarter reached $20 million, up 193% year over year. The massive uptick was primarily driven by an additional $20 million licensing fee owed to Vertex in connection with the collaboration agreement between the companies.
Shares of CRISPR have surged 64.7% in the past year against the industry’s 8.5% decline.
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As of Dec 31, 2023, the company had cash, cash equivalents, marketable securities and accounts receivables of $1.70 billion compared with $1.74 billion as of Sep 30, 2023.
Full-Year Results
For 2023, CRISPR generated total revenues of $371.2 million, reflecting a substantial increase over the previous year’s revenues of $1.2 million. Most of the 2023 total revenues comprised collaboration revenues from Vertex.
For the same period, the company reported a loss of $1.94 per share compared with the year-ago loss of $8.36.
Pipeline Updates
In December 2023, CRSP announced its decision to discontinue the development of first-generation allogeneic CAR T product candidates, CTX110 (targeting CD19) and CTX130 (targeting CD70).
Management shifted the focus on developing its next-generation CAR T candidates, CTX112 and CTX131. As part of this decision, it will transition patients treated with first-generation candidates to long-term follow-up programs where needed.
Currently, CTX112 (targeting CD19-positive B-cell malignancies) and CTX131 (targeting relapsed or refractory solid tumors) are being studied in separate phase I/II studies.
However, CIRSPR plans to initiate another study on CTX112 in systemic lupus erythematosusin the first half of 2024, with the potential to expand into additional autoimmune indications in the future. Per the company, the candidate’s novel mechanism of action has the potential to produce long-lasting remissions in multiple autoimmune indications.
Additionally, the company is also on track to initiate a separate phase I study on CTX131 in hematologic malignancies, including T- and B-cell malignancies, in the first half of 2024.
Switching gears to CRSP’s in-vivo gene editing programs, the company is currently studying its first two in-vivo candidates, CTX310 and CTX320, in separate phase I clinical studies. CTX310 is designed to target ANGPTL3, while CTX320 targets lipoprotein(a). Both ANGPTL3 and lipoprotein(a) are responsible for the development of atherosclerotic cardiovascular disease.
In the fourth-quarter earnings release, the company stated that it is looking to nominate additional in-vivo programs targeting both rare and common diseases this year, which are expected to disclose in mid-2024.
CRISPR Therapeutics AG Price, Consensus and EPS Surprise
CRISPR Therapeutics AG price-consensus-eps-surprise-chart | CRISPR Therapeutics AG Quote
Zacks Rank and Stocks to Consider
CRISPR currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the drug/biotech industry are Puma Biotechnology, Inc. PBYI and ADMA Biologics ADMA. While PBYI currently sports a Zacks Rank #1 (Strong Buy), ADMA carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has remained constant at 73 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has increased from 69 cents to 71 cents. Over the past year, shares of PBYI have rallied 59.6%.
PBYI beat estimates in three of the last four quarters while missing on one occasion, delivering a four-quarter average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has remained constant at 2 cents. The consensus estimate for ADMA Biologics’ 2024 EPS is pegged at 22 cents. Over the past year, shares of ADMA have jumped 48%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 63.57%.
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