What happened
Shares of CRISPR Therapeutics (CRSP 0.34%) are enjoying another strong session Monday. Specifically, the gene-editing company's stock was up by a healthy 7.26% on exceptionally heavy volume as of 2:02 p.m. ET Monday afternoon.
So what
CRISPR's shares have been steadily moving higher since the Institute for Clinical and Economic Review (ICER), a U.S drug-pricing group, stated in a draft report that its Vertex Pharmaceuticals's (VRTX -0.06%) partnered sickle cell treatment, exa-cel, would be cost effective if priced below $1.9 million.
Specifically, ICER issued the draft report last Thursday, and since then, CRISPR's stock has gapped up by a noteworthy 24.6%.
Today's move, however, appears to have more to do with a renewed optimism from investors toward all-things biotech following Merck's premium-laden buyout of Prometheus Biosciences. Underscoring this point, most biotech stocks are in positive territory in the wake of this deal.
Now what
Vertex and CRISPR recently submitted a regulatory application to the Food and Drug Administration (FDA) for exa-cel as a treatment for sickle cell disease and another rare blood disorder known as beta-thalassemia.
The FDA is expected to hand down its decision on the groundbreaking gene-editing candidate in either late 2023 or early 2024. In addition, the two companies have also filed for exa-cel's approval in Europe and the United Kingdom.
Meanwhile, Vertex could very well buy its gene-editing partner. CRISPR, after all, only sports a $4.26 billion market cap at the time of this writing. CRISPR, for its part, may resist a buyout due to its extensive pipeline of high-value candidates. Time will tell.
