The article below discusses the potential impact of CRISPR technology and the huge opportunity that exists for individuals that invest in CRISPR stocks. I’ve also included an update section below for news that will be updated on a regular basis.
September, 4, 2020
Absolutely brutal day for CRISPR stocks today as the whole group fell along with the market sell-off. At one point in the session $CRSP was down over 8%. These stocks have come well off their recent highs and are flirting with some important trend line support levels. Breaking these levels could result in some more downside, especially if the broad market continues to sell off.
Some of this is likely the fact that the market participants don’t want to hold over the weekend. Monday will be interesting for sure.
No specific news from any of the companies in the space currently other than updates on the next few biotech conferences, all of which could be a catalysts for these stocks.
Citi’s 15th Annual BioPharma Virtual Conference
Panel: Innovation in Cell Therapy
Date: Wednesday, September 9, 2020
Time: 3:20 p.m. ET
Wells Fargo 2020 Virtual Healthcare Conference
Date: Thursday, September 10, 2020
Time: 10:40 a.m. ET
Morgan Stanley 18th Annual Global Healthcare Conference
Date: Tuesday, September 15, 2020
Time: 10:15 a.m. ET
August 31, 2020
Gene editing stocks were certainly overshadowed by $ZM and $TSLA’s wild ride today. After splitting 5 to 1 on Monday $TSLA opened strong to finish all the way up to $500 at the close. And then another 16 point after market. $ZM absolutely crushed earnings and ran up an impressive $74 after the announcement.
While all this craziness was going on $CRSP, $EDIT and $NTLA experienced a relatively good day. $CRSP is holding nicely above $90 and slowly pushing back to $100. Moving up to this level and not pulling back again will be the real test in the coming weeks.
August 22, 2020:
CRSP pulled back from 52 week highs last week to settle close to $90 per share. The stock ripped up to $105 last week and pulled back hard to $90. This could represent a good pull-back opportunity for those looking to get long. That being said we’ll need to see some positive catalysts develop before CRSP can create some support at $100.
August 6, 2020:
Both EDIT and BEAM are up big on rumours that a deal between the two companies could happen soon. EDIT and BEAM are up over 20% and 30% respectively on the news.
End of Updates
What if you could go back in time and invest your money directly into stocks that would eventually power the internet, would you? Of course you would, however this is not possible. That being said, CRISPR stocks may provide for a similar opportunity for investors. The next Trillion dollar companies will likely not be traditional internet or SAS companies, but rather, medical technologies like CRISPR that could allow humans to fight deadly diseases or facilitate the ability to live well beyond 100 years.
So, what is CRISPR Technology?
In basic terms CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats Repetitive) is a technology that allows us to edit the human genome. Mutations in human genes can result in many diseases. CRISPR allows us to edit these genes in an effort to help eradicate some diseases. It is also being used to help improve the health and yield of food crops.
CRISPR and gene editing potential applications:
- re-engineering foods to help with allergies
- editing human genes to help cure disease and extend life expectancy
- management of environmentally destructive pests
- increase the nutritional content of animal protein and plant based foods
The following white paper produced by the good folks at Ark Invest outline some of the most interesting and exciting aspects of this new technology, namely:
- Current addressable market is over $1.9 Trillion for monogenic disease therapies
- Potential for $75B in revenue from 1,000 treatable diseases
- Potential to feed an additional 800 Million people through calorie increase CRISPR technologies
What could CRISPR mean for the future?
What’s most exciting about the emergence of CRISPR technology is the potential for disease eradication and solutions to some of the most important challenges we will soon face, such as global food shortages.
The potential for this technology to cure diseases will allow humans to not only extend their average lifespans but also live a much higher quality of life into their later years. Although we have had significant breakthroughs in medical technology in the last few decades therapies that will allow us to edit the genome in a way that results in disease prevention could be huge for humanity.
Why should I invest in CRISPR and gene editing Technology?
The same reason why you should have invested in internet and technology stocks 2 decades ago. Getting in before these technologies are properly proven out can provide so some significant growth opportunities for the next few decades. Imagine that could go back in time and invest in $AAPL, $AMZN, $TSLA or even Bitcoin…here’s your opportunity.
$CRSP will likely be a 100 Billion Dollar company in 10 years…— FarmBoyProfits (@FarmBoyProfits) August 23, 2020
How can I invest in CRISPR Technology?
Of course you can always try to find a CRISPR startup to invest in or become an investor in subsequent A or B rounds, however most people will simply try to buy publicly held CRISPR stocks that trades on US stock markets.
Anyone with a self-directed investment account will be able to search and execute most stocks that they’ve researched. If you currently pay someone to manager your money ask them for information on this new technology and related stocks. If they can’t buy individual stocks they may be able to purchase CRISPR stocks indirectly through certain innovation and biotech funds (see more on ARK below).
The potential for this technology to cure diseases will allow humans to not only extend their average lifespans but also live a much higher quality of life into their later years.
What are the best CRISPR stocks?
Of course this is a loaded question. We simply won’t know exactly which CRISPR stock will be the most successful company. We can however review all current options to see what stocks may be worth buying:
CRISPR Therapeutics AG is a $6.4B gene-based medicine company aimed at developing technologies that will help cure serious human diseases.
Currently the company is focused on hemoglobinopathies, cancer, diabetes and other diseases.
CRSP has had a nice run this year rocketed up from around $40 to just over $100 a few days ago. One of the highest performing CRISPR stocks of the last year and the largest by market cap, CRSP continues to hold the dominate position in the industry.
CRSP has some interesting therapies in their pipeline including life changing therapies that focus on:
- Regenerative Medicine
- In Vivo Approaches
You can read more about the company’s current pipeline therapies here.
CRISPR stocks are inherently difficult to value given the unique nature of the potential treatments. For example, CRSP is less expensive than it’s peers given valuation metrics such as Price/Sales. That being said, companies like this are often not value on any metric other than future potential for drugs or therapies to become something viable.
Editas Medicine ($EDIT)
Editas Medicine is a $2.6B company focused on gene editing solutions and therapies. The company is based in Cambridge, Massachusetts. It aims to develop therapies based on CRISPR–Cas9 gene editing technology.
EDIT works primarily with 2 different CRISPR nucleases, the Cas9 and Cas12a.
Editas has some interesting therapies in their pipeline including:
Intellia Therapeutics, Inc.($NTLA)
Intellia Therapeutics, Inc. is a $1.2B CRISPR therapeutics company located in Cambridge, Massachusetts.
Like most other gene editing companies NTLA focuses on developing therapies that will eventually help those suffering from rare genetic and oncological and immunological diseases.
NTLA’s current pipeline include both In Vivo and Ex Vivo therapies including partnerships with both Regeneron and Novartis.
Sangamo Therapeutics, Inc. ($SGMO)
Sangamo Therapeutics, Inc. is a biotech company based in Brisbane California and although it is not a pure CRISPR play it is heavily involved in research that helps develop gene editing therapies.
Sangamo has therapies in preclinical, phase 1 and 2 and phase 3 currently. Disease prevention initiatives include areas such as oncology, Huntington’s disease, sickle cell and fabry disease.
From a low of around $5 in early 2020 SGMO has settled nicely around $11.50 for August. Well off it’s 2018 highs of over $25.
Beam Therapeutics Inc. ($BEAM)
Beam Therapeutics Inc. is a biotech company located Cambridge MA. The company is developing gene therapies for serious diseases such as sickle cell disease and beta-thalassemia, therapies for alpha-1 antitrypsin deficiency and glycogen storage disorder 1A, and therapies for ocular, CAR-T cell therapies for pediatric T-cell acute lymphoblastic leukemia and pediatric acute myeloid leukemia and central nervous system disorders.
Beam is working on gene therapies that are develop around “base editing” which is a different gene editing technology than CRISPR.
BEAM’s portfolio include potential treatments for sickle cell disease, glycogen storage disorders and leukemia amongst other diseases.
This $1.2B company is much more of a speculative play as the company currently has negligible revenues.
Cellectis S.A. ($CLLS)
Cellectis S.A., a clinical stage biotechnological company, develops immuno-oncology products based on gene-edited T-cells that express chimeric antigen receptors to target and eradicate cancer cells. It operates through two segments, Therapeutics and Plants.
The company is developing UCART19, an allogeneic T-cell product candidate for the treatment of CD19-expressing hematologic malignancies, such as acute lymphoblastic leukemia (ALL); ALLO-501 to treat relapsed/refractory diffuse large B-cell lymphoma and follicular lymphoma; UCART123 for the treatment of acute myeloid leukemia (AML); and UCART22 to treat B-cell acute lymphoblastic leukemia.
$CLLS has performed quite well off the pandemic lows. Trading under $10 just a few months ago the stock is consolidating in the mid $18s.
How much could I make investing in CRISPR stocks?
Awe…the million dollar question…
One way to gauge how much you could potential make investing in CRISPR stocks is to look at the current market value of the stocks currently and attempt to predict how big these companies could become.
Let’s take CRSP for example. Right now CRSP has a $6.5B market cap. Larger biotech companies like REGN and MRNA have a market cap north of $50B currently. If you assume that CRSP could reach these levels that would be close to 10 times what it’s worth currently.
If we’re talking companies like EDIT or NTLA with much lower market caps your return could be close to 25 times or 2,500%.
Now, I’m simply comparing these stocks to mature pure biotech companies. If you look at larger full scale healthcare companies that trade over $100B and compare how future CRISPR therapeutics may fit into the mix you’re looking at potentially monster sized gains.
Of course this is only if these stocks develop lasting therapies that can be properly scaled, marketed and sold.
Some would argue that investing in CRISPR stocks is simply a gamble and not worth the risk. I would agree that although theses investments do carry more risk than average the potential payoff could be huge.
In a world where we have (or aim to have) amazing internet speeds, the potential to work from home, clean energy, access to global markets, unprecedented computing power, space travel and AI, one of the main “wants” left for humans is the ability to cure disease and help us live much longer than ever imagined.
If any of these companies crack the gene-editing code they could easily be the next trillion dollar industry if not the next trillion dollar companies to trade publicly.
When should I buy CRISPR stocks? Now, or wait?
The answer to this question really depends on a few factors…
- How old are you?
- What’s your investment time horizon?
- What’s your risk tolerance?
- Are you already heavily invested in biotech names?
If you’re young, don’t need the money for a long time and are comfortable taking risk, investing in this niche could pay off in a big way. That being said, with reward comes risk. If you can’t stomach 20% plus daily moves, maybe stocks like NTLA and EDIT are not for you.
Cost of gene sequencing falling each and every day. According to @ARKInvest this could lead to amazing therapies going forward.— FarmBoyProfits (@FarmBoyProfits) September 6, 2020
#crispr #crisprstocks #dna #biology #genetics #science #biotechnology #microbiology #cellbiology #geneticengineering $EDIT $CRSP $NTLA $BEAM pic.twitter.com/zy1R3GVrJj
In terms of timing, we are at an interesting inflection point. Stocks like CRSP are close to their 52 week high. It makes a lot of sense to diversify your investment into a mix of the stocks outlined above. That should spread out the single stock risk and allow you to benefit from most of the growth in the CRISPR space as a whole.
Should I buy these stocks in my ROTH IRA, IRA or regular investment account?
That’s a relatively difficult question to answer given how unique each investor’s situation can be.
If you knew the outcome of the investment and assumed it would grow to a significant amount, investing inside your ROTH would be most beneficial as any of the gains earned within the account would be tax-free. That being said, many investors don’t have a significant amount in their ROTH and would required the use of the IRA or non-registered investment account to make the investment.
As always, make sure to get advice from a competent tax accountant when reviewing tax consequences of investment transactions.
Anything else I should know?
Looks like we hit lots of great topics within this article…however:
Some of these companies will likely be bought out…
Given the level of partnership with larger drug companies like the NTLA example above with Novartis and Regeneron above it’s likely that some of these companies simply get bought out and pull into larger operations.
Although getting bought out would definitely be a positive for any CRISPR investor it could limit the potential for significant gains, especially if the investor chooses to liquidate shortly after the acquisition.
Also don’t forget about dilution..
It’s very common for biotech companies to raise money via share issuances. When CRISPR stocks run there is a very good chance that they announce some additional share issuances to take advantage of high share prices and to raise more money to fund additional research. These announcements can have a negative affect on stocks prices in the short-term and it should be something you definitely want to be prepared for.
Be prepared for volatility…
It can also be tough to own and watch these stocks each day. People often wonder why these CRISPR stocks have gone up or down for the day. The can often move significantly without any particular news directly affecting the companies.
We still have a long way to go, however stocks like EDIT, CRSP, NTLA and other CRISPR related stocks could provide for some of the most exciting opportunity in the next few decades. Make sure to bookmark this page as we will continue to update the article for any relevant news on CRISPR technology and related stocks.
You can also follow me on Twitter for further CRISPR stock updates.
What are your thoughts on CRISPR? Please let me know in the comment section below…