We recently compiled a list of the 10 Best Genomics Stocks To Buy Right Now.In this article, we are going to take a look at where CRISPR Therapeutics AG (NASDAQ:CRSP) stands against the other genomics stocks.
Genomics is the study of genes and how they function. Many rapidly growing companies are emerging in the genomics field as technological advances substantially reduce the cost, accuracy, and time required to map a human being's genome.
Investors in innovation, like Cathie Wood, the CEO of ARK Investment Management, believe that these developments are bringing about a "Genomic Revolution." She stressed the potential of genomics and urged investors to see beyond conventional market benchmarks to seize revolutionary growth. On the eToro's Digest & Invest podcast on October 21, 2024, Wood emphasized that concentrating only on the most prominent indexes may restrict exposure to ground-breaking innovation. She stated that reduced AI training costs have boosted genomics productivity, opening the door to important breakthroughs like gene editing that targets diseases. She is nevertheless optimistic about these stocks' long-term worth, despite the present market reluctance and cash flow-driven tendencies made worse by ongoing high interest rates. According to Wood, avoiding this industry may result in missed opportunities as it progresses from development that relies heavily on investments to future profitability. She believes the market is changing and that early adopters will benefit from the convergence of genomics and AI.
Nonetheless, there have been encouraging breakthroughs from a number of genomic companies in 2024, and investors have seen financial rewards as the biotechnology sector of the broader market has risen by 29.33% since the beginning of the year.
According to Grand View Research, the global genomics market was estimated to be worth $32.65 billion in 2023 and is projected to grow at a compound annual growth rate of 16.5% between 2024 and 2030. Factors including the rising need for customized treatment, gene therapy, drug development, rising cancer rates, and a notable surge in consumer genomics demand in recent years are all contributing to the genomics market's expansion. The pharmaceutical and biotechnology companies segment dominated the global genomic market in 2023, as per the aforementioned research. In terms of market share, North America held the biggest share in 2023 (42.65%), while Asia Pacific is anticipated to develop at the fastest rate during the forecast period.
The fields of gene editing and cell and gene therapies (CGTs) are also developing quickly. The UK approved Casgevy for sickle cell disease and β-thalassemia, pointing out the potential of CRISPR gene editing. According to Deloitte’s research report, the growing market for CGTs, from US$5.3 billion in 2022 to $19.9 billion in 2027, signals a shift towards customized advanced medicine despite high costs leading innovative business models. Furthermore, as per the report, GenAI can analyze a variety of information, such as clinical history, genomes, and social determinants of health, to produce deeper insights that have the potential to completely transform the way healthcare is delivered.
Looking forward, Chris Garabedian, CEO of Xontogeny and Venture portfolio manager at Perceptive Advisors, stated:
“I think 2024 will be a transition year, a little more carnage left and a clearing. There are signs of hope this year, and after the election and that uncertainty is behind us, I think we're going to start to see 2025 look healthy.”
Methodology:
We sifted through holdings of Genomics ETFs and online rankings to form an initial list of 20 genomics stocks. Then we selected the 10 stocks that had the highest upside potential. The stocks are ranked in ascending order of the upside potential, as of November 14.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here)
A laboratory cultivating cells for the development of gene and cell therapies.
CRISPR Therapeutics AG (NASDAQ:CRSP) is a gene-editing firm that focuses on the development of CRISPR/Cas9-based therapies. CRISPR/Cas9 is a groundbreaking technology for precisely modifying specific genomic DNA sequences. The company's primary goal is to treat genetically specified disorders with this technique. This technology precisely breaks DNA to disrupt, delete, correct, and insert genes to treat genetically specified disorders, which is the focus of the company's unique platform.
CRISPR Therapeutics AG (NASDAQ:CRSP)'s first licensed medication, Casgevy, was created in partnership with Vertex Pharmaceuticals and addresses two conditions with significant unmet medical needs: sickle-cell disease and transfusion-dependent beta-thalassemia. The company is developing several gene editing projects in the fields of cardiovascular disease, immuno-oncology, and a stem cell-derived treatment for Type 1 diabetes.
Through partnerships, some of the expenses associated with clinical development can be covered while CRISPR Therapeutics AG (NASDAQ:CRSP) receives milestones and financial benefits from the advancement of therapeutic proposals.
The company maintains a strong cash position with nearly 1.9 billion in cash and continues to advance its diverse pipeline, including CAR-T and in-vivo therapies.
Analyst Salim Syed of Mizuho Securities has remained enthusiastic about CRISPR Therapeutics AG (NASDAQ:CRSP) stock, with a Buy rating on November 6, 2024. According to the analyst, Casgevy's price in Saudi Arabia seems to be about $2 million per patient, which is beneficial and more than earlier projections. Strong revenue potential can be seen by this pricing dynamic, which is viewed favorably. Furthermore, Casgevy's favorable reception in Washington and its strategic alliance with Lonza for global manufacturing, which is expected to satisfy rising demand, support the company's outlook. Additionally, ARK Invest's recent acquisitions of CRSP shares show faith in the company's prospects for the future, which is reinforced by ARK's recent remarkable performance.
Overall CRSP ranks 5th on our list of the best genomics stocks to buy. While we acknowledge the potential of the CRSP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRSP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
