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CRISPR Therapeutics (CRSP) Q2 Earnings Beat, Revenues Up Y/Y

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CRISPR Therapeutics AG CRSP reported second-quarter 2021 earnings per share of $9.44, beating the Zacks Consensus Estimate of $4.19. The company had reported a loss of $1.30 per share in the year-ago quarter.

CRISPR Therapeutics' total revenues, which comprise grants and collaboration revenues, came in at $901 million in the second quarter compared with less than $0.1 million reported in the year-ago quarter. The top line also substantially beat the Zacks Consensus Estimate of $678 million.

We note that CRISPR Therapeutics is solely dependent on Vertex Pharmaceuticals VRTX for collaboration revenues. Revenues were significantly higher in the second quarter due the to inclusion of $900.0 million in upfront payment from Vertex received in April.

In April, Vertex increased its investment in the existing collaboration agreement with CRISPR Therapeutics for the manufacturing and commercialization of CTX001, the latter’s lead pipeline candidate.

Shares of CRISPR Therapeutics were up 5.7% in after-hours trading on Thursday following announcement of its better-than-expected earnings results. However, the stock has declined 22.2% so far this year against the industry’s increase of 0.4%.

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Zacks Investment Research


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Quarter in Detail

In the reported quarter, research and development expenses were $108.3 million, up 82.3% from the year-ago figure due to increased headcount and development costs for pipeline development.

General and administrative expenses also surged 39.2% year over year to $29.8 million due to higher headcount-related costs.

As of Jun 30, 2021, the company had cash, cash equivalents and marketable securities of $2.6 billion compared with $1.8 billion as of Mar 31, 2021.

Pipeline Updates

CRISPR Therapeutics is developing CTX001 – an investigational ex-vivo CRISPR gene-edited therapy for treating sickle cell disease (“SCD”) and transfusion-dependent beta thalassemia (“TDT”) – in partnership with Vertex. The candidate is currently in development in a phase I/II study.

In June 2021, both companies announced positive new data from a phase I/II study evaluating CTX001 in patients with TDT as well as those with SCD, with a follow-up of at least three months. The gene-editing therapy candidate demonstrated a consistent and sustained response to treatment in the given patient population.

Enrollment and dosing are currently ongoing for both SCD and TDT studies on CTX001. The company plans to complete enrollment in both studies in the third quarter of 2021, with potential regulatory filings expected within the next 18-24 months.

CRISPR Therapeutics is also developing three gene-edited allogeneic cell therapy programs, chimeric antigen receptor T cell (CAR-T) candidates – CTX110, CTX120 and CTX130 – for the treatment of hematological and solid-tumor cancers.

The phase I CARBON study is evaluating the safety and efficacy of several dose levels of CTX110 for treating relapse/refractory CD19+ B-cell malignancies. The company expects additional data readouts for CTX110 later in 2021.

A phase I study is investigating the safety and efficacy of several dose levels of CTX120 for the treatment of relapsed or refractory multiple myeloma. Two independent ongoing phase I studies are also evaluating the safety and efficacy of several dose levels of CTX130 for treating solid tumors and certain hematologic malignancies. Top-line data from all these studies are expected later in 2021.

This apart, CRISPR Therapeutics, along with partner ViaCyte, remains on track to initiate a phase I/II study on their allogeneic stem-cell-derived therapy for the treatment of type 1 diabetes later in 2021.

CRISPR Therapeutics AG Price, Consensus and EPS Surprise

CRISPR Therapeutics AG Price, Consensus and EPS Surprise
CRISPR Therapeutics AG Price, Consensus and EPS Surprise


CRISPR Therapeutics AG price-consensus-eps-surprise-chart | CRISPR Therapeutics AG Quote

Zacks Rank & Stocks to Consider

CRISPR Therapeutics currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the biotech sector include Bio-Techne Corporation TECH and Repligen Corporation RGEN, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Bio-Techne’s earnings estimates have been revised 2.3% upward for 2021 and 4.2% for 2022 over the past 60 days. The stock has rallied 52.1% year to date.

Repligen’s earnings estimates have been revised 2.3% upward for 2021 and 3.5% for 2022 over the past 60 days. The stock has increased 25.8% year to date.


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