CRISPR Therapeutics (CRSP 0.34%) already had a huge 2023. The biotech scored its first product approval for the blood-disorders therapy Casgevy -- winning the world's first-ever regulatory nod for a product based on CRISPR gene-editing technology. The company also saw its shares take off, gaining 54% for the year.
But what if I told you 2024 could be even bigger for this top innovator? Last year marked the start of the company's growth story, but as we move into the next chapters, things promise to get pretty exciting. And that means this is a stock to watch -- and add to your portfolio -- in 2024.
Let's take a closer look at why this could be another winning year for CRISPR Therapeutics.
Image source: Getty Images.
Regulatory approvals aren't over
First, it's important to note that regulatory approvals for Casgevy probably aren't over. The U.S. Food and Drug Administration (FDA) approved the gene-editing treatment for sickle cell disease, but it's set to issue a decision on the treatment for beta thalassemia in March. This potential approval could offer the stock an additional boost.
Also, CRISPR Therapeutics and its partner Vertex Pharmaceuticals continue to study Casgevy in phase 3 trials for patients ages 5 through 11 in both blood disorders. Today's regulatory nods for the treatment -- in the U.S. and the U.K. -- are for patients ages 12 and older. So, if all goes well, the companies could request that regulators expand indications into this younger age group in the not-too-distant future.
But the most significant progress this year could be CRISPR Therapeutics' taking its first steps as a commercial-stage company to generate product revenue. Following the U.S. approval, the biotech and its partner said, 16,000 people could be eligible for Casgevy. And the companies are quickly moving to make the product available, announcing nine authorized treatment centers now -- and preparing more to come.
Of course, Casgevy won't launch as quickly as a pill. The treatment process takes months and involves steps such as collection of blood stem cells, and chemotherapy to prepare the body for infusions of the curative therapy. So we may not see a burst of revenue, and instead will see it gradually build; this is just the nature of this sort of treatment.
Casgevy's blockbuster potential
But over time, Casgevy has the potential to reach blockbuster status -- a pretty big thing for a company's very first product. Why are analysts optimistic about Casgevy's chances of winning in the blood-disorders market? Because right now, treatment options are limited. And both sickle cell disease and beta thalassemia weigh heavily on patients' quality of life, resulting in repeated hospitalizations.
Participants in clinical trials who've gone on to speak about the treatment have said it's transformed their lives. If more and more patients echo this, we could see interest in Casgevy multiply.
Even though revenue may take time to grow, the fact that it will start rolling in this year is a big positive for the company -- and could give the stock reason to rise.
On top of this, investors may also like the idea that these regulatory nods represent a vote of confidence for CRISPR Therapeutics' entire pipeline. The company's other programs use the CRISPR gene-editing technique, so the fact that it's worked for blood disorders could make investors optimistic about its potential in other areas.
Finally, even though CRISPR Therapeutics' shares climbed last year, they still remain considerably lower than the peak they reached a couple of years ago -- and at that time we had less visibility on the power of the company's technology.
The share price could continue to advance this year, given a first wave of product revenue, the promise of this therapy to bring in more and more revenue, and the potential of the company's gene-editing technique to win in other treatment areas. 2024 could very well become CRISPR Therapeutics' best year yet.
