CRSP - CRISPR Therapeutics Just Slashed Its Staff by 10%. Should Shareholders Be Worried?
2023-12-08 08:15:00 ET
As reported by Fierce Biotech on Nov. 22, gene-therapy star CRISPR Therapeutics (NASDAQ: CRSP) laid off 10% of its employees shortly after reporting its Q3 earnings earlier in the month. Given that the company and its collaborator Vertex Pharmaceuticals will hear back on Dec. 8 from the Food and Drug Administration (FDA) regarding the approval of exa-cel, their candidate to treat or cure sickle cell disease (SCD), the move is apt to rustle some feathers among shareholders.
Why would the business scale down its workforce now of all times, right before it might have a larger-than-ever need for staff? As it turns out, there's more of a rationale for what management is doing than you might think at first. So let's dive in and analyze whether there are any critical underlying issues.
CRISPR's gene therapy exa-cel is already approved in the U.K. The odds for it getting approval in the U.S. look optimistic, based on recent discussions with regulators. Typically, a biotech stock sees its share price soar upon getting an approval for its first medicine, as that provides its first real chance to generate recurring revenue from sales.
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CRISPR Therapeutics Just Slashed Its Staff by 10%. Should Shareholders Be Worried?