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CRISPR (CRSP) to Report Q3 Earnings: What's in the Cards?

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We expect investors to focus on the updates related CRISPR Therapeutics’ (CRSP - Free Report) pipeline candidates when it reports third-quarter 2022 results.

Shares of CRISPR Therapeutics have declined 33.5% in the year compared with the industry’s decline of 25.4%.

Zacks Investment Research
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CRSP’s earnings surpassed expectations in only one of the trailing four quarters and missed thrice, the average negative surprise being 8.42%. In the last reported quarter, CRISPR Therapeutics reported a negative earnings surprise of 7.62%.

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


Let’s see how things have shaped up for the quarter to be reported.

Factors to Consider

CRISPR Therapeutics’ top line primarily consists of grants and collaboration revenues earned by CRSP from its partnership with large-cap biotech Vertex Pharmaceuticals (VRTX - Free Report) .

In the absence of an approved/marketed product in its portfolio, the focus of the third quarter earnings is anticipated to be on updates related to the pipeline of CRISPR Therapeutics.

CRISPR Therapeutics, in collaboration with Vertex Pharmaceuticals, has been developing exagamglogene autotemcel (exa-cel, formerly CTX001), an investigational ex-vivo CRISPR gene-edited therapy in two separate phase III studies for sickle cell disease (SCD) (CLIMB-121) and transfusion-dependent beta thalassemia (TDT) (CLIMB-111). In September, CRISPR and 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.

CRISPR Therapeutics has also been developing its wholly-owned immuno-oncology pipeline, which currently consists of three chimeric antigen receptor T cell (CAR-T) therapy candidates, namely CTX110, CTX120 and CTX130, for the treatment of hematological and solid-tumor cancers.

CRSP is currently evaluating CTX110 in the phase I CARBON study to treat relapsed/refractory B-cell malignancies. Additional data from this study are expected later this year.

The safety and efficacy of multiple doses of CTX120 is currently being evaluated in an ongoing phase I study to treat relapsed or refractory multiple myeloma.

CTX130 is being evaluated in two ongoing independent early-stage studies to evaluate the safety and efficacy of several dose levels of the candidate in adults with solid tumors such as renal cell carcinoma (COBALT-RCC study) and certain T-cell and B-cell hematologic malignancies (COBALT-LYM study).

In June 2022, management announced preliminary results from the COBALT-LYM study, which demonstrated that treatment with CTX130 produced broad activity and deep responses in patients with relapsed/refractory T-cell lymphomas, especially at higher dose levels.

CRISPR is also advancing several next-generation CAR-T product candidates, namely — 112 targeting CD19 antigen and CTX131 targeting CD70 antigen. These candidates have been designed to enhance CAR-T potency.

Activities related to the development of pipeline candidates are likely to have escalated operating expenses in the to-be-reported quarter.

Earnings Whisper

Our proven model does not conclusively predict an earnings beat for CRISPR Therapeutics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: CRISPR Therapeutics has an Earnings ESP of +16.00% as the Zacks Consensus Estimate is lower than the Most Accurate Estimate, which is pegged at a loss of $1.93 .

Zacks Rank: CRISPR Therapeutics currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some stocks in the same industry that have the right combination of elements to beat on earnings this time around:

BioMarin Pharmaceutical (BMRN - Free Report) has an Earnings ESP of +10.77% and a Zacks Rank #2.

BioMarin’s stock has risen 1.7% this year so far. BMRN beat earnings estimates in all the last four quarters. It has an earnings surprise of 98.90%, on average.

Editas Medicine (EDIT - Free Report) has an Earnings ESP of +3.47% and a Zacks Rank #2.

Editas’ stock has declined 57.2% in the year so far. EDIT beat e earnings expectations in each of the trailing four quarters, the average surprise being 17.82%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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