The gene-editing niche of the biotech industry is gaining momentum, as various companies focused on these techniques — which allow scientists to alter patients’ DNA to treat some diseases — have made significant clinical progress over the past decade or so. Two notable gene-editing drugmakers are CRISPR Therapeutics (CRSP +0.92%) and Beam Therapeutics (BEAM +3.51%). Both have performed well over the past year and could see further gains ahead, given the important catalysts on the horizon. But which one is the better gene editing stock? Let’s find out.
Image source: Getty Images.
The case for CRISPR Therapeutics
CRISPR Therapeutics focuses on CRISPR-based gene editing, a technique that earned its creators a Nobel Prize in Chemistry. The biotech made a significant breakthrough in 2023 when it landed approval for Casgevy, a medicine for two rare blood-related disorders, sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT). CRISPR Therapeutics developed this therapy with Vertex Pharmaceuticals. Casgevy has not generated much revenue yet. Gene editing medicines are expensive and complex to administer. However, CRISPR Therapeutics and Vertex have made progress getting third-party payers on board.
Today’s Change
(0.92%) $0.46
Current Price
$50.36
Key Data Points
Market Cap
$4.9B
Day’s Range
$49.92 – $51.11
52wk Range
$35.38 – $78.48
Volume
1.6M
Avg Vol
1.9M
Gross Margin
-528340.24%
The medicine should see significant commercial momentum in the next few years. Meanwhile, CRISPR Therapeutics has important pipeline candidates. To name just one: The company’s CTX310 is being developed to help lower LDL cholesterol, which, in high levels, can cause various cardiovascular issues. While there are other medicines (and non-pharmaceutical ways) to decrease LDL, CTX310 could be a one-time option, potentially making it much more convenient than most other therapies in this niche. As CRISPR Therapeutics advances this and other programs in its pipeline, its stock price could soar.
The case for Beam Therapeutics
Beam Therapeutics currently doesn’t have any product on the market. However, the company focuses on base editing, a technique that could potentially allow it to develop gene-editing medicines with fewer side effects than those made with CRISPR. Beam Therapeutics’ most advanced candidate, Risto-cel, is being developed to treat SCD. This investigational therapy has, so far, delivered strong results in clinical trials.
Today’s Change
(3.51%) $0.97
Current Price
$28.64
Key Data Points
Market Cap
$2.9B
Day’s Range
$27.63 – $29.14
52wk Range
$15.35 – $36.44
Volume
1.3M
Avg Vol
2.1M
Gross Margin
86.36%
Beam Therapeutics plans to submit a regulatory application for approval as early as the end of this year. The company has several other candidates in the works that could also make progress. Beam Therapeutics may be a clinical-stage biotech company, but its innovative platform could lead to medical breakthroughs that might send its stock price much higher.
Which is the better buy?
Both stocks are fairly risky. Clinical setbacks could send their shares down significantly. However, CRISPR Therapeutics looks like the better gene editing stock right now. It already has an approved product in Casgevy whose sales will grow significantly in the next few years. It also has a deeper pipeline (which makes it less likely to suffer significant market losses due to clinical trial failures) and a stronger cash position: As of the end of the first quarter, CRISPR Therapeutics had $2.4 billion in cash, equivalents, and marketable securities, compared to Beam Therapeutics’ $1.2 billion. For all those reasons, investors choosing between the two should opt for CRISPR Therapeutics right now.
Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Beam Therapeutics, CRISPR Therapeutics, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
