Why CRISPR Therapeutics Stock Rocked the Market Last Month
Key Points
The FDA-approved drug it helped developed saw a nearly 80% sequential rise in sales.
It also booked $10 million in upfront payments with a business partner.
Pioneering gene-editing company CRISPR Therapeutics (NASDAQ: CRSP) was a well-performing biotech stock in August. Its shares were hot in the hot month, zooming almost 19% higher thanks to a solid quarterly earnings report and business update.
A welcome update
CRISPR released its second-quarter financials and business update early in the month, on Aug. 3, to be exact. It quoted CEO Samarth Kulkarni as saying that this "reflected strong execution across CRISPR Therapeutics' portfolio and platform" -- and he was not wrong.
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The biotech's one approved product, the blood disorder treatment Casgevy (developed and marketed in partnership with Vertex Pharmaceuticals), saw a 78% quarter-over-quarter jump in sales to $76 million. Better, during the period, the U.S. Food and Drug Administration (FDA) approved Casgevy's label expansion to cover pediatric patients aged 2 and older.
While financial figures aren't as meaningful for biotechs, with their typically feast-or-famine business models, CRISPR's have been looking good lately.
Second-quarter revenue was boosted significantly by a $10 million upfront payment from a license and collaboration deal from a business partner that hasn't been identified. With that, the company's total top line expanded to nearly $10.2 million from the year-ago tally of $892,000.
I should note here that, under the CRISPR/Vertex partnership agreement, CRISPR does not recognize its share of Casgevy sales as revenue. Rather, its net share is bundled with its proportion of costs in the "collaboration expense, net" line item of its profit and loss statement.
As for CRISPR's bottom line, a steep decline in in-process research and development expenses, plus that $10 million infusion, narrowed the net loss considerably. It was just under $91.5 million ($0.94 per share) for the period compared to the second quarter of 2025's nearly $209 million deficit.
Analysts tracking the stock were modeling revenue of less than $7.5 million and a net loss of $1.20 per share.
CRISPR is a busy company that continues to use its proprietary gene-editing platform to develop new medications. In its pipeline are treatments targeting disorders like hypertension (high blood pressure) and alpha-1 antitrypsin deficiency, a genetic condition that can threaten the lungs and liver.
Bright future
Since we're still near the start of the gene-editing revolution in healthcare, it's likely to be some time before medicines developed with the technology become commonly available. While there are now numerous gene-editing businesses on the scene, CRISPR is a rare bird that has helped bring an actual product to market.
With that, I think it's always going to be in the mix with this future-forward technology, and I'd fully expect more products from its lab to reach pharmacy shelves. This remains a high-potential stock, I believe, but investors need to be patient with it.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vertex Pharmaceuticals. The Motley Fool recommends CRISPR Therapeutics. The Motley Fool has a disclosure policy.