Artificial intelligence (AI) is slowly changing and reshaping industries, from banking to telecom. The technology will likely make many jobs obsolete. Some of the corporations leading this revolution are already seeing massive financial benefits and outstanding stock market performance.
However, there are certain things AI can't do -- and may never be able to do. One of them is to cure diseases. Biotech companies that develop and market breakthrough therapies for, thus far, hard-to-treat or even impossible-to-treat conditions could deliver returns on par with some AI leaders.
One serious candidate to consider along those lines is CRISPR Therapeutics (CRSP +1.46%). This biotech company is somewhat risky, but it could generate strong returns in the long run.
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Something not even AI can do
CRISPR Therapeutics is a gene-editing specialist. The company develops therapies for conditions for which there are none, or at least, in areas where there is a dire need for new approaches. Let's consider three examples.
One of CRISPR Therapeutics' candidates, CTX211, is being developed as a potential treatment for patients with Type 1 diabetes. While people with this disease are normally unable to produce their own insulin, CRISPR Therapeutics' goal with CTX211 is to restore that ability.
CRISPR is also developing SRSD107, a potential anticoagulant that could address some of the shortcomings of the existing options in this niche. Many anticoagulants, though effective at preventing blood clotting, can cause severe bleeding. Many others are taken daily. SRDS107 is being developed to bypass these challenges -- a long-acting option that will reduce side effects such as excessive bleeding.
NASDAQ: CRSP
Key Data Points
Then there is CTX310, which CRISPR is developing to lower LDL cholesterol (the bad kind) and triglycerides (TGs). At high levels, both can cause a range of cardiovascular problems, potentially leading to severe disease or death. With 40 million patients who have elevated levels of either LDL or TGs, there is a vast addressable market here, considering current options to lower them are typically administered daily, and CTX310 could be a one-time treatment.
CRISPR Therapeutics' gene-editing platform looks promising because of its ability to develop transformative therapies in areas with high unmet needs. It has done so before: The biotech company has earned approval for Casgevy, a medicine that treats two rare blood disorders.
Beware of the risks
CRISPR Therapeutics is a smaller biotech that could offer massive upside potential without exposure to AI, something some investors are seeking right now amid fears of an AI bubble. However, the company carries its own risks. Clinical and regulatory setbacks could sink its stock price. And since gene-editing medicines are still relatively new and expensive, it hasn't been easy to get third-party payers on board.
Investors should keep that in mind before pulling the trigger, but even with these caveats, CRISPR Therapeutics' potential could be attractive to investors with higher risk tolerance levels.
