CRSP - Crispr Therapeutics (CRSP) stock price is on the cusp of a 25% pop
2023-11-16 06:00:00 ET
Crispr Therapeutics (NASDAQ: CRSP) stock price will be in the spotlight on Thursday after the company made a major breakthrough in the UK. The shares surged to a multi-month high of $60 in the pre-market session. At its peak, they were up by about 60% from the lowest point this year.
Crispr Therapeutics UK approval
The main reason why CRSP stock price surged is that the UK became the first country to approve the company’s gene editing solution. According to the Medicines and Healthcare Regulatory Agency, CRISPR can go ahead and roll out its Casgevy product in the country for the treatment for sickle-cell disease and beta thalassemia.
Casgevy is a product that was created through the collaboration of Vertex Pharmaceuticals and Crispr Therapeutics. This approval will give other regulators more time to view its effectiveness before they also approve it. Regulators like the Fod and Drug Administration (FDA) and others in Europe are studying its results.
Most analysts believe that the FDA will approve the product. Earlier this month, a group of the FDA known as the Cellular, Tissue, and Gene Therapies Advisory Committee met to deliberate about the product. At the same time, an analyst at William Blair said :
“We view this AdCom meeting as overwhelmingly positive and supportive of the approval of exa-cel for SCD by the December 8 PDUFA. We continue to share the long-term view that exa-cel could be a blockbuster product.
The other reason why the CRSP stock price jumped was that the company published mixed financial results. It made no revenue in the last quarter as it did not receive any partner contribution funds.
The company ended the quarter with over $1.7 billion in cash, a small decline from the $1.8 billion it had in its December quarter. Its cash decline was due to its operation expenses, which were offset by payments from Vertex. Its R&D expenses stood at $90.7 million while the total loss came in at $112 million.
Crispr Therapeutics is about to disrupt an industry that analysts believe is set to explode in the coming years. In a recent research, Pharmweb estimated that it will have a double-digit CAGR growth rate and hit $7.4 billion by 2031.
Crispr Therapeutics stock price forecast
The daily chart shows that the CRSP stock price has made a bullish breakout in the past few months. This happened after the shares bottomed at about $42.23 a few months. Most importantly, the shares have moved above the 200-day and 50-day moving averages. The two averages are about to form a bullish crossover, which is known as a golden cross.
Therefore, the outlook for the shares is bullish as investors wait for the upcoming approvals by other regulators. If this happens, the shares will likely continue rising as buyers target to the key resistance level at $72.01, the highest point on May 23rd. This means that the stock could surge by over 23% from the current level.
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