Examples include CRISPR and other gene-editing technologies. These are becoming more precise and less time consuming, thus improving the effectiveness of the treatments and minimizing side effects. These are beneficial for the advancement of new generation therapies that can help cure genetic disorders.
Lately, U.S. FDA approval of gene-editing treatments has validated this technology’s efficacy to investors. These approvals enable new therapies to enter the market and encourage investment into research and development. As more therapies are approved, the gene-editing market continues to expand. This presents huge opportunities for the companies — and stocks — operating in this industry.
So, here are three gene-editing stocks for investors to consider.
CRISPR Therapeutics (CRSP)
CRISPR Therapeutics (NASDAQ:CRSP) is at the forefront of the gene-editing revolution.
CRSP is one of my favorite stocks to own because the company’s technology can change the course of genetic diseases. The company received the required approval for its Casgevy therapy for the treatment of sickle cell disease and transfusion-dependent beta thalassemia. This proves that CRSP’s CRISPR-Cas9 platform is commercially feasible.
CRSP’s Casgevy therapy employs the CRISPR-Cas9 system. This system modifies the patient’s own cells through the elimination of the faulty gene. This approach might be a one time treatment that holds the promise for curing such genetically inherited ailments.
CRSP is strategically placed to reap a lot of market share in these high value indications. The company has other gene-editing therapies in its pipeline for additional rare diseases, oncology and autoimmune disorders. This outlook supports the it’s long-term growth strategy, making it one of those gene-editing stocks to consider.
Editas Medicine (EDIT)
Editas Medicine (NASDAQ:EDIT) focuses on developing CRISPR-based gene-editing technologies. Also, the company has a large ongoing pipeline of gene-editing programs for various genetic diseases, cancers and autoimmune diseases. It has also roped in collaborations with key leaders such as Bristol Myers Squibb (NYSE:BMY) and Vertex Pharmaceuticals (NASDAQ:VRTX), adding credibility to the firm’s offering.
Editas has also developed a strong patent portfolio, including exclusive licenses to important CRISPR patents from the Broad Institute and Harvard. This IP position enhances the company’s capacity to build up and market new gene-editing treatments.
EDIT could be one of the more underappreciated gene-editing stocks, as companies like CRISPR Therapeutics seem to dominate the financial media. However, with a market cap of $461 million, the company offers investors significant upside potential and room for growth.
Intellia Therapeutics (NTLA)
Intellia Therapeutics (NASDAQ:NTLA) is developing CRISPR/Cas9-based therapies. Some of Intellia’s lead programs include NTLA-2002 for hereditary angioedema, which has produced promising results in the early stage of the clinical trials.
The high efficacy demonstrated by NTLA-2002 such as the more than 98% reduction in the mean monthly HAE attack rates make Intellia a company that may pose a threat to the current HAE treatment paradigms that are mainly based on chronic management. Intellia is now moving NTLA-2002 into later-stage trials this year and meaningful positive data could open the door to the first in vivo CRISPR gene-editing therapy approval.
For the more aggressive investors, Intellia’s highly risky asset may generate significant returns if the company manages to overcome the clinical and regulatory hurdles. It could then be one of those gene-editing stocks for investors to consider. It could also be a contrarian play, since it’s more speculative compared with the other names on this list.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.