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CRISPR's (CRSP) Q1 Loss Narrower-Than-Expected, Sales Miss
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CRISPR Therapeutics (CRSP - Free Report) reported earnings of $1.43 per share in the first quarter of 2024, surpassing the Zacks Consensus Estimate of a loss of $1.63. In the year-ago period, the company had incurred a loss of 67 cents per share.
The company’s total revenues, generated entirely from grant revenues, were $0.5 million in the first quarter. The reported figures significantly missed the Zacks Consensus Estimate of $8.3 million. In the year-ago quarter, the company generated revenues worth $100 million, which was in its entirety received as an upfront payment from Vertex Pharmaceuticals (VRTX - Free Report) .
Post the earnings announcement, CRISPR’s shares were down 2% in after-market trading on Wednesday, likely due to the lower-than-expected revenues.
The stock has lost 14.9% year to date compared with the industry’s 5.9% decline.
Image Source: Zacks Investment Research
Quarter in Detail
In the reported quarter, research and development expenses fell 24% year over year to $76.2 million, owing to reduced variable external research and manufacturing costs.
Also, general and administrative expenses declined 20% to $18.0 million due to a fall in employee-related and stock-based compensation expenses.
Collaboration expenses in the quarter reached $47.0 million, up 11% year over year. The uptick was primarily attributable to commercial and manufacturing costs.
As of Mar 31, 2024, the company had cash, cash equivalents, marketable securities and accounts receivables of $2.1 billion compared with $1.7 billion as of Dec 31, 2023. This surge in cash balance was mainly driven by proceeds from the February 2024 registered direct offering and a $200-million milestone payment received from Vertex in connection with the approval of Casgevy.
Recent Updates
The company achieved a milestone last year when it secured the first-ever authorization/approval for a CRISPR/Cas9 gene-edited therapy. CRISPR and partner Vertex’s one-shot gene therapy, Casgevy, was approved for two blood disorders, sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT), in the United States and Europe in 2023/early 2024. Per the terms of the partnership, Vertex leads the global development, manufacturing, regulatory and commercialization of Casgevy.
Per management, more than 25 authorized treatment centers (ATCs) have been activated globally, including centers in all regions where the therapy is approved. The company’s partner Vertex has also stated that it is making great progress with payers and is looking to provide rapid and equitable access to Casgevy. Vertex expects to start recording Casgevy sales in the second half of 2024.
CRISPR Therapeutics is pursuing the development of CRISPR candidates to create novel CAR-T cell therapies. Management is currently focused on prioritizing the development of next-generation CAR-T therapy candidates — CTX112 (targeting CD19-positive B-cell malignancies) and CTX131 (targeting relapsed or refractory solid tumors) — over the now-discontinued first-generation candidates. Both candidates are being evaluated in separate phase I/II studies. A data readout from the study on CTX112 is expected later this year.
CRISPR also plans to expand the next-generation candidates beyond immuno-oncology indications. The company intends to start a clinical study evaluating CTX112 in systemic lupus erythematosus (SLE) indication by first-half 2024, with the potential to expand into additional autoimmune indications in the future. Management also intends to start a clinical study on CTX131 in hematological malignancies in first-half 2024.
Apart from immuno-oncology candidates, CRISPR Therapeutics is also evaluating other candidates in its pipeline. Last year, management started separate early-stage clinical studies on two in-vivo candidates, namely CTX310 and CTX320, directed toward validated therapeutic targets associated with cardiovascular disease.
Alongside the earnings release, management announced the addition of two more in-vivo programs, CTX340 (for refractory hypertension) and CTX450 (for acute hepatic porphyria). While IND-enabling studies have already been initiated for both candidates, CRISPR expects to start clinical studies in second-half 2025.
CRISPR currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the overall healthcare sector include Ligand Pharmaceuticals (LGND - Free Report) and United Therapeutics (UTHR - Free Report) . While LGND sports a Zacks Rank #1 (Strong Buy) at present, UTHR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Ligand Pharmaceuticals’ 2024 earnings per share (EPS) have risen from $4.42 to $4.56. During the same period, EPS estimates for 2025 have improved from $5.11 to $5.27. Year to date, LGND’s shares have risen 12.5%.
Earnings of Ligand Pharmaceuticals beat estimates in each of the last four quarters. Ligand delivered a four-quarter average earnings surprise of 56.02%.
In the past 60 days, estimates for United Therapeutics’ 2024 EPS have improved from $23.15 to $24.00. During the same period, EPS estimates for 2025 have risen from $24.12 to $26.39. Year to date, shares of UTHR have inched up 18.7%.
Earnings of United Therapeutics beat estimates in each of the last four quarters. UTHR delivered a four-quarter average earnings surprise of 12.41%.
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CRISPR's (CRSP) Q1 Loss Narrower-Than-Expected, Sales Miss
CRISPR Therapeutics (CRSP - Free Report) reported earnings of $1.43 per share in the first quarter of 2024, surpassing the Zacks Consensus Estimate of a loss of $1.63. In the year-ago period, the company had incurred a loss of 67 cents per share.
The company’s total revenues, generated entirely from grant revenues, were $0.5 million in the first quarter. The reported figures significantly missed the Zacks Consensus Estimate of $8.3 million. In the year-ago quarter, the company generated revenues worth $100 million, which was in its entirety received as an upfront payment from Vertex Pharmaceuticals (VRTX - Free Report) .
Post the earnings announcement, CRISPR’s shares were down 2% in after-market trading on Wednesday, likely due to the lower-than-expected revenues.
The stock has lost 14.9% year to date compared with the industry’s 5.9% decline.
Image Source: Zacks Investment Research
Quarter in Detail
In the reported quarter, research and development expenses fell 24% year over year to $76.2 million, owing to reduced variable external research and manufacturing costs.
Also, general and administrative expenses declined 20% to $18.0 million due to a fall in employee-related and stock-based compensation expenses.
Collaboration expenses in the quarter reached $47.0 million, up 11% year over year. The uptick was primarily attributable to commercial and manufacturing costs.
As of Mar 31, 2024, the company had cash, cash equivalents, marketable securities and accounts receivables of $2.1 billion compared with $1.7 billion as of Dec 31, 2023. This surge in cash balance was mainly driven by proceeds from the February 2024 registered direct offering and a $200-million milestone payment received from Vertex in connection with the approval of Casgevy.
Recent Updates
The company achieved a milestone last year when it secured the first-ever authorization/approval for a CRISPR/Cas9 gene-edited therapy. CRISPR and partner Vertex’s one-shot gene therapy, Casgevy, was approved for two blood disorders, sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT), in the United States and Europe in 2023/early 2024. Per the terms of the partnership, Vertex leads the global development, manufacturing, regulatory and commercialization of Casgevy.
Per management, more than 25 authorized treatment centers (ATCs) have been activated globally, including centers in all regions where the therapy is approved. The company’s partner Vertex has also stated that it is making great progress with payers and is looking to provide rapid and equitable access to Casgevy. Vertex expects to start recording Casgevy sales in the second half of 2024.
CRISPR Therapeutics is pursuing the development of CRISPR candidates to create novel CAR-T cell therapies. Management is currently focused on prioritizing the development of next-generation CAR-T therapy candidates — CTX112 (targeting CD19-positive B-cell malignancies) and CTX131 (targeting relapsed or refractory solid tumors) — over the now-discontinued first-generation candidates. Both candidates are being evaluated in separate phase I/II studies. A data readout from the study on CTX112 is expected later this year.
CRISPR also plans to expand the next-generation candidates beyond immuno-oncology indications. The company intends to start a clinical study evaluating CTX112 in systemic lupus erythematosus (SLE) indication by first-half 2024, with the potential to expand into additional autoimmune indications in the future. Management also intends to start a clinical study on CTX131 in hematological malignancies in first-half 2024.
Apart from immuno-oncology candidates, CRISPR Therapeutics is also evaluating other candidates in its pipeline. Last year, management started separate early-stage clinical studies on two in-vivo candidates, namely CTX310 and CTX320, directed toward validated therapeutic targets associated with cardiovascular disease.
Alongside the earnings release, management announced the addition of two more in-vivo programs, CTX340 (for refractory hypertension) and CTX450 (for acute hepatic porphyria). While IND-enabling studies have already been initiated for both candidates, CRISPR expects to start clinical studies in second-half 2025.
CRISPR Therapeutics AG Price
CRISPR Therapeutics AG price | CRISPR Therapeutics AG Quote
Zacks Rank and Key Picks
CRISPR currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the overall healthcare sector include Ligand Pharmaceuticals (LGND - Free Report) and United Therapeutics (UTHR - Free Report) . While LGND sports a Zacks Rank #1 (Strong Buy) at present, UTHR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Ligand Pharmaceuticals’ 2024 earnings per share (EPS) have risen from $4.42 to $4.56. During the same period, EPS estimates for 2025 have improved from $5.11 to $5.27. Year to date, LGND’s shares have risen 12.5%.
Earnings of Ligand Pharmaceuticals beat estimates in each of the last four quarters. Ligand delivered a four-quarter average earnings surprise of 56.02%.
In the past 60 days, estimates for United Therapeutics’ 2024 EPS have improved from $23.15 to $24.00. During the same period, EPS estimates for 2025 have risen from $24.12 to $26.39. Year to date, shares of UTHR have inched up 18.7%.
Earnings of United Therapeutics beat estimates in each of the last four quarters. UTHR delivered a four-quarter average earnings surprise of 12.41%.