Leading gene therapy company CRISPR Therapeutics (CRSP 0.34%) had quite the memorable day on the market Tuesday. Following the release of encouraging quarterly results, bulls ran rampant on the stock, and it closed almost 14% higher. Meanwhile, the bellwether S&P 500 index could only muster a 0.3% bump today.
A notably narrower net loss in CRISPR's third quarter
CRISPR, which is a relatively early-stage company with sporadic revenue, did not record any take on the top line in its third quarter. On a year-over-year basis, it managed to trim operating expenses, which filtered down into a narrower net loss.
For the period, its shortfall was slightly more than $110 million ($1.41 per share), compared to a loss of over $176 million in the third quarter of 2022.
Fortunately for the highly specialized healthcare company and its shareholders, analysts were expecting much more red ink on the bottom line. On average, they were anticipating CRISPR would book a per-share net loss of $1.99.
The company also updated investors about its progress with a range of pipeline programs developed using its gene-editing capabilities. There could be important news coming about the most promising of these, sickle cell disease treatment exa-cel. CRISPR reiterated that it has received a Prescription Drug User Fee Act (PDUFA) action date of Dec. 8 for the therapy.
Costs falling, pipeline projects advancing
Since CRISPR, like many other biotechs, doesn't yet have a stable revenue base, investors are rightfully concerned about the development of its pipeline and how it's controlling costs. With its earnings release and business update, it obviously managed to convince the market that it's doing well on both counts.
