CRISPR Therapeutics Stock Is Up Only 8% This Year. Is Cathie Wood's Bet on the Gene-Editing Stock Dead Money?
This year, the biotech stock has underperformed both the Nasdaq Biotechnology Index and the S&P 500.
CRISPR Therapeutics, a biotech company focused on gene-editing technology, has seen a modest rise in its stock price this year, increasing by over 8%, which is far below the Nasdaq Biotechnology index's 27% return and slightly under the 12% performance of the S&P 500. This lackluster growth may raise questions about the current investment bet by Cathie Wood, renowned for her success in the biotech sector, through her Ark Invest ETFs.
Wood holds a significant stake in CRISPR Therapeutics, owning 94.6 million shares with an average price of $66. However, with the current stock price hovering around $52, she has unfortunately taken a loss on her investment.
Despite the present-day challenges, Wood remains optimistic about the biotech company's long-term potential. CRISPR Therapeutics, named after its groundbreaking CRISPR gene-editing technology, offers a compelling long-term investment opportunity. Its lead therapy, Casgevy, which is used to treat rare blood disorders like sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TBT), has demonstrated impressive revenue growth.
Additionally, the company is set to enter a phase 3 trial for its promising candidate CTX611, and it possesses nine other therapies in its pipeline, which could generate future revenue streams.
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