Please ensure Javascript is enabled for purposes of website accessibility

CRISPR Therapeutics Reports Q4 Earnings, Beats Revenue Expectations

By Mark Prvulovic - Updated Feb 12, 2020 at 9:52PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Financial figures across the board saw significant improvements.

CRISPR Therapeutics (CRSP 2.78%) reported its fourth-quarter financial results on Wednesday afternoon, substantially beating revenue expectations and impressing both analysts and investors alike.

Fourth-quarter revenue grew to $77 million, a substantial increase from the mere $100,000 reported in Q4 2018. Total annual revenue came in at $289.6 million, while last year's income came in at a much smaller $3.1 million. While this surge is mainly due to collaboration agreements with Vertex Pharmaceuticals as opposed to product sales, it's still an impressive increase considering analysts had expected just $45.2 million for the quarter.

Abstract image of several floating strands of DNA.

Image source: Getty Images.

Other financial metrics, such as CRISPR's cash position, have improved as well. By Dec. 31, cash and cash equivalents grew to $943.8 million, a 106.7% increase from the $456.6 million reported last year. The biotech company is also now reporting a net profit thanks to this revenue hike. Net income came in at $30.5 million, whereas last year CRISPR reported a net loss of $47.6 million in its 2018 fourth quarter.

A promising portfolio

CRISPR is developing four main treatments. CTX001 is a treatment for patients with sickle cell disease and transfusion-dependent beta thalassemia. Both of these are genetic blood disorders that impact the blood's ability to transport oxygen throughout the body.

The company's three other drugs, CTX110, CTX120, and CTX130, are types of cancer treatments known as CAR-T therapies. While other healthcare companies are developing their own CAR-T drugs, these types of therapies tend to be quite expensive. CRISPR's technology could make the development process for these types of drugs much cheaper than their competition.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

CRISPR Therapeutics Stock Quote
CRISPR Therapeutics
$66.96 (2.78%) $1.81

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.