Cathie Wood Bought More CRISPR Therapeutics Stock 2 Days in a Row. Here's What She Sees in the Biotech Stock.

Ark Invest founder Cathie Wood increased her holdings in CRISPR Therapeutics (CRSP) on consecutive days, purchasing $1.1 million worth of stock on October 9 and $2.3 million on October 12, according to her ARK Genomic Revolution ETF (ARKG) investments. The biotech stock has experienced a decline of over 25% in the past year. CRISPR's primary product, Casgevy, is an expensive therapy for treating severe sickle cell disease and beta-thalassemia, with a list price of $2.2 million per patient. However, Wood remains optimistic about the company, citing several factors.

Firstly, CRISPR reported a 151% year-over-year increase in Casgevy revenue during the second quarter. Despite not being profitable yet, the company posted a net loss of $91.2 million, down from $208.5 million in the same quarter last year. Furthermore, CRISPR has a substantial cash reserve of $2.36 billion, which could sustain its operations for four years and provide time for the development of other therapies.

Secondly, CRISPR is developing another promising therapy called CTX-310. This treatment uses small fat-based particles to deliver its gene-editing mechanism to the liver, with the goal of switching off the angiopoietin-like protein 3 (ANGPTL3) gene. This action lowers LDL cholesterol and triglycerides, both of which are linked to heart disease.

In a phase 1a trial, CTX-310 showed impressive results, achieving an average reduction of 79% in ANGPTL3, a 53% drop in LDL levels, and a 48% decline in triglycerides in participants. CRISPR is now conducting a phase 2 trial for CTX-310, which is being compared with the standard enoxaparin in patients undergoing knee replacement surgery.

Lastly, the company is in the final stages of a phase 2 trial for CTX611, a blood thinner that works by editing a patient's small interfering RNA (siRNA) to reduce the Factor XI protein. This protein is involved in the formation of blood clots, and its reduction can target various clotting and thromboembolic conditions. These potential indications include atrial fibrillation, venous thromboembolism, ischemic stroke, cancer-associated thrombosis, peripheral vascular disease, chronic coronary artery disease, and thrombosis in chronic kidney disease.