CRISPR Therapeutics (CRSP +1.79%) has had a volatile performance over the past five years. While its stock is up more than 40% this year, in three of the past five years it has fallen by more than 30%. Overall, the stock has declined more than 60% of the past five years. It hasn't been a good stock to own, especially when compared to the S&P 500, which has risen by 85% over that stretch.
The company does possess a lot of potential, with its approved gene-editing treatment Casgevy. Unfortunately, sales from that haven't exactly been soaring, and thus its financial performance has remained fairly underwhelming. But its development partner, Vertex Pharmaceuticals (VRTX +1.54%), is optimistic that 2026 will be a better year.
There are still many question marks around CRISPR's stock today. And with a market cap of around $5.4 billion, it's a modestly valued healthcare company with potential upside, but also some risk. What should you do with it, heading into 2026: buy, sell, or hold?
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Despite approval for Casgevy, CRISPR's financials remain deeply in the red
CRISPR and Vertex first obtained approval for their gene-editing therapy in December 2023 for treating patients with sickle cell disease. Then, a month later, Casgevy also got the green light to treat the blood disorder transfusion-dependent beta thalassemia. But although it's been a couple of years since being first approved, sales haven't taken off, and CRISPR's financials remain unimpressive.
In the trailing 12 months, the company has incurred a net loss of more than $488 million and has burned through more than $302 million from its operating activities. It can take time to roll out a product or therapy after obtaining approval, especially for a treatment such as Casgevy, which comes with a hefty price tag of $2.2 million. The good news is that it's a one-time treatment with the potential to drastically improve the lives of patients.
Could better results be coming in 2026?
In its most recent earnings release on Nov. 10, CRISPR said that Vertex has been seeing progress in the number of patients (currently around 300) being referred to treatment centers. Vertex sees revenue for Casgevy totaling more than $100 million for the current year, and "significant growth expected in 2026," the announcement said.
What's important to note, however, is that while Vertex reports all revenue from Casgevy, it will share in the profits with CRISPR (40% will go to CRISPR and 60% will stay with Vertex). Investors should keep that in mind when analyzing CRISPR's financials.
NASDAQ: CRSP
Key Data Points
Although CRISPR does have other treatments in development, none of them are far along. Thus, how the stock does next year will depend largely on how many people Casgevy ends up treating and how much that impacts the company's bottom line.
Why CRISPR's stock is worth buying right now
Although it hasn't been a smooth path for CRISPR in the past five years, I believe the business is moving in the right direction. Casgevy may finally break through in 2026 and generate some considerable revenue, leading to improvements in the company's financials along the way.
And with a strong balance sheet that features close to $2 billion in liquid assets (including cash and marketable securities) and no long-term debt, CRISPR also has the potential to be an attractive acquisition target for a larger healthcare company, given that it already has an approved therapy in its portfolio.
I see more positives than negatives around CRISPR's business, which is why I think it's a solid buy heading into 2026, and it can make for a good investment to hang on to for the long haul.
