Gene therapy stocks have been a bright spot in the market this week. For instance, gene correction specialist CRISPR Therapeutics (CRSP 0.34%) has so far gained 19.6% through the first four days of trading this week, according to data provided by S&P Global Market Intelligence.

What's lighting the fire in gene therapy?

On Tuesday, the Food and Drug Administration (FDA) held an advisory committee to discuss the safety profile of CRISPR and Vertex Pharmaceuticals' CRISPR/Cas9 gene-edited candidate, exa-cel, which is currently under review for two rare blood disorders: sickle cell disease (SCD) and beta thalassemia. The FDA expects to make a decision on the therapy's SCD indication by Dec. 8. The agency is then slated to make a call on exa-cel's beta thalassemia indication by March 30, 2024.

The FDA's panel of experts essentially agreed with the two companies' assessment that exa-cel's benefits outweigh its possible risks, potentially setting the stage for the first regulatory approval for a CRISPR/Cas9 gene-edited product in the U.S. later this year.

As a treatment for severe sickle cell disease, Wall Street and industry insiders think exa-cel could eclipse the $1 billion sales mark by 2030. Although CRISPR and Vertex have a revenue-sharing agreement in place, CRISPR still stands to benefit enormously from the therapy's commercialization. Investors, in turn, acted accordingly by bidding up this developmental gene therapy stock this week.

Is CRISPR Therapeutics stock still a buy?

This may be one of the easiest calls in the market today. Because of the ice-cold sentiment toward biotech over the past 24 months, CRISPR has shed over 76% of its market cap since hitting a high-water mark in January 2021. However, the biotech's core value proposition hasn't changed all that much over this period, and it now stands to benefit from being the first to market for a CRISPR/Cas9 gene-edited therapy for a major indication. While this market is sure to remain irrational so long as bond yields remain elevated, CRISPR stock should be a winner for investors willing to hold through this short-term volatility.