If you're looking for a stock that has the potential to grow your investment to $1 million, a good move may be to invest in a strong business that's in a fast-growing industry. Gene therapy is an example of just that. The market for gene therapy is worth a relatively modest $8.7 billion this year, according to estimates from Grand View Research. But those analysts also believe that by 2030, it could soar to more than $29.5 billion, if it expands at a compounded annual growth rate of 19.5%.
Gene therapies have significant potential, as they could give people with hard-to-treat diseases new hope. And one company that is becoming a big name in gene therapy these days is CRISPR Therapeutics (CRSP 0.34%). This mid-cap stock is worth over $5 billion today but has the potential to be much more valuable in the years and decades ahead. Could investing in this healthcare stock help make you a millionaire?
CRISPR now has its first approved product
Earlier this month, the U.S. Food and Drug Administration (FDA) approved Casgevy, a gene therapy treatment that CRISPR has been working on with Vertex Pharmaceuticals. The treatment, which has a list price of $2.2 million, can be a one-time functional cure for people with sickle cell disease. The price is so high because of how valuable it is, and how much time and money it can save the healthcare industry. It gives patients a much more promising solution, without the need for ongoing treatment.
CRISPR and Vertex are also hoping that the FDA approves the therapy as a treatment of transfusion-dependent beta thalassemia. Investors won't learn about that approval until next March, which is when the PDUFA date is set for that indication.
The future is looking brighter for CRISPR
When it comes to investing in biotech stocks, the big concern for investors often relates to cash burn and the need for frequent share offerings (i.e. dilution). But now that CRISPR has an approved treatment and product in its portfolio, there is less potential risk of that. While it will have to share in the profits on Casgevy with Vertex (CRISPR gets 40%), that's still a much better situation than where the company has been before now.
Over the trailing 12 months, the company has incurred net losses totaling just under $416 million. While CRISPR's expenses are likely to increase as it spends more money in the commercialization of Casgevy, its financials should improve significantly.
Now that CRISPR has one gene therapy treatment approved, the hope is that there could be others to follow. Its pipeline features other promising treatments, including VCTX210 and VCTX211, which could transform the lives of people with type 1 diabetes. While there's no certainty that other treatments will obtain approval, there is optimism that Casgevy could just be the start for CRISPR.
Can CRISPR Therapeutics stock get your investment to $1 million?
CRISPR's stock has a lot of potential to increase in value in the future, and I could see an investment in the healthcare company eventually growing to $1 million. But it also depends on the size of your investment. Putting just $100 into the stock means you would need it to generate 10,000x returns, which isn't very likely. The more you can invest, the more probable it is that your shares will eventually grow to $1 million.
The bottom line is that yes, CRISPR does have the potential to be a millionaire-making investment as it's achieving success in a fast-growing industry. Given its relatively modest valuation, now can be a great time to invest in the stock.
