Gene-editing stocks are shares of biotechnology companies that focus on modifying DNA. How important are these stocks? A brief anecdote might explain it best.
In 2020, American biochemist Jennifer Doudna and French microbiologist Emmanuelle Charpentier were awarded the Nobel Prize in chemistry for their discovery of the CRISPR gene-editing technology. The Royal Swedish Academy of Sciences summed up the significance of their discovery by saying, "This year's prize is about rewriting the code of life."
Gene-editing companies using CRISPR technology have the potential to treat and even cure diseases caused by genetic variants. CRISPR (pronounced "crisper") is an acronym for "Clustered Regularly Interspaced Short Palindromic Repeats." The gene-editing market is projected to reach $30.8 billion by 2032.
Top gene-editing stocks for 2026
These are some of the gene-editing stocks investors should have on their watch list.
1. Intellia Therapeutics
NASDAQ: NTLA
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NASDAQ: CRSP
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CRISPR Therapeutics (CRSP -0.97%) was co-founded by Emmanuelle Charpentier in 2013. The company's mission is "developing transformative gene-based medicines for serious human diseases."
CRISPR Therapeutics and its big partner, Vertex Pharmaceuticals (VRTX -2.34%), became the first to win regulatory approval for a CRISPR gene-editing therapy in December 2023, with Casgevy for treating sickle cell disease. The two companies won U.S. Food and Drug Administration (FDA) approval the following month for Casgevy to treat transfusion-dependent beta-thalassemia.
The commercial launch of Casgevy continues to gain momentum, with Vertex leading the charge. Meanwhile, CRISPR Therapeutics is advancing several other gene-editing programs.
The company's pipeline includes an allogeneic chimeric antigen receptor T cell (CAR-T) therapy in clinical testing -- CTX112. Allogeneic (meaning involving genetically distinct tissues or cells) CAR-T therapies are often referred to as "off-the-shelf" because they don't require a patient's own cells to be genetically edited; instead, they use cells from healthy donors.
CRISPR Therapeutics is evaluating several in vivo gene-editing therapies, two of which are in clinical studies. The company is also conducting clinical testing of an experimental therapy for treating Type 1 diabetes.
3. Beam Therapeutics
NASDAQ: BEAM
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NASDAQ: SGMO
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Benefits and risks of investing in gene-editing stocks
The benefits of investing in gene-editing stocks include:
- Significant long-term growth potential.
- Gene editing is now a proven technology.
- Potential for acquisition by larger drugmakers.
- Most gene-editing stocks are available at discounted valuations compared to previous years.
While investing in gene-editing stocks can potentially generate significant returns over the long term, it also comes with several risks and challenges. These include:
- High volatility.
- Capital requirements could dilute the value of existing shares.
- Risk of failure in clinical trials.
- Risk of failure in securing regulatory approvals.
- Potential reimbursement hurdles after approval.
Should you invest in gene-editing stocks?
Investors with a high risk tolerance who have investing horizons of at least five to 10 years and are especially interested in disruptive technologies may want to consider investing in gene-editing stocks. They should also be comfortable with binary outcomes: One clinical trial result or regulatory decision could make or break a company.
However, risk-averse investors should probably avoid gene-editing stocks. Income investors will also want to look elsewhere, as no gene-editing company currently pays a dividend.
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