CRISPR Therapeutics (CRSP) Q3 Earnings Top, Sales Lag Estimates
CRISPR Therapeutics AG CRSP reported a net loss per share of $2.24 in third-quarter 2022, narrower than the Zacks Consensus Estimate and our estimate of a loss of $2.30 and $2.44. The company had posted a loss of $1.67 per share in the year-ago period.
CRISPR Therapeutics' total revenues, comprising grants and collaboration revenues, came in at $0.1 million in the third quarter compared with $0.82 million reported in the year-ago period. The revenues comprised entirely of collaboration revenues. Revenues substantially missed the Zacks Consensus Estimate and our estimate of $4.0 million and $6.0 million, respectively.
Post the announcement of the third-quarter results, CRISPR shares rose 3.4% in after-market trading on Nov 1. However, the stock has declined 31.4% so far this year compared with the industry’s fall of 20.4%.
Image Source: Zacks Investment Research
Quarter in Detail
For the reported quarter, research and development expenses were $116.6 million, up 40% from the year-ago figure to support the development of pipeline programs and costs related to the increased headcounts to support the developmental programs.
General and administrative expenses rose 14% year over year to $27 million.
Collaboration expenses for the third quarter reached $38.9 million, up 73% year-over-year. The rise was driven by increased pre-commercial and manufacturing costs associated with CRISPR’s hemoglobinopathies program under the Vertex VRTX collaboration.
As of Sep 30, 2022, the company had cash, cash equivalents and marketable securities of $1.97 billion compared with $2.07 billion as of Jun 30, 2022.
Pipeline Updates
CRISPR Therapeutics is developing exa-cel — an investigational ex-vivo CRISPR gene-edited therapy for treating sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT) — in partnership with Vertex Pharmaceuticals.
Last month, CRISPR and partner Vertex reported that the FDA granted exa-cel a rolling review for the potential treatment of SCD and TDT. Vertex will submit its biologics licensing application (BLA) for exa-cel for rolling review in November 2022. It expects to complete the submission by the end of first-quarter 2023. The companies are also on track to submit regulatory approvals of exa-cel for SCD and TDT in Europe and the United Kingdom by the end of 2022.
Exa-cel is currently being evaluated in two separate phase III studies, CLIMB THAL-111 and CLIMB SCD-121, for treating TDT and severe SCD, respectively.
Apart from CTX001, CRISPR Therapeutics is also developing three chimeric antigen receptor T cell (CAR-T) therapy candidates — CTX110, CTX120, and CTX130 — for hematological and solid-tumor cancers.
The company is currently evaluating CTX110 in a phase I CARBON pivotal study for the treatment of relapsed/refractory B-cell malignancies. The company is expected to report additional data from this study later this year.
An ongoing phase I study is evaluating the safety and efficacy of several dose levels of CTX120 for the treatment of relapsed or refractory multiple myeloma.
Two independent phase I studies are evaluating the safety and efficacy of several dose levels of CTX130 for treating solid tumors such as renal cell carcinoma (COBALT-RCC study) and certain T-cell and B-cell hematologic malignancies (COBALT-LYM study).
In September 2022, CRISPR received regenerative medicine advanced therapy (RMAT) designation for CTX130 from the FDA for treating mycosis fungoides and Sezary syndrome (MF/SS), which are different types of cutaneous T-cell lymphoma (CTCL)
CRISPR is also advancing several next-generation CAR-T product candidates, namely — CTX112 targeting CD19 antigen and CTX131 targeting CD70 antigen. These candidates have been designed to enhance CAR-T potency.
Recently the FDA cleared the investigational new drug (IND) application for CTX112 targeting CD19+ B-cell malignancies. CRISPR intends to initiate a clinical study for the candidate in the first half of 2023.
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 #3 (Hold).
Some better-ranked stocks in the same sector are Puma Biotechnology PBYI, carrying a Zacks Rank #1 (Strong Buy) and IntelliaTherapeutics NTLA, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Puma Biotechnology’s loss estimates for 2022 have remained steady at 6 cents over the past 30 days. Shares of PBYI have declined 26% year to date. Earnings of Puma beat earnings estimates in three of the trailing four quarters and missed the same in the remaining occasion. PBYI delivered an earnings surprise of 201.37%, on average.
Intellia Therapeutics’ loss estimates for 2022 have improved from $5.82 to $5.78 in the past 30 days. Shares of Intellia have declined 55% year to date. Earnings of NTLA missed earnings estimates in all the last four quarters. NTLA delivered a negative earnings surprise of 28%, on average.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
Puma Biotechnology, Inc. (PBYI) : Free Stock Analysis Report
Intellia Therapeutics, Inc. (NTLA) : Free Stock Analysis Report
CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
