Just when it looked like CRISPR Therapeutics (NASDAQ: CRSP) would give up all its gains, the stock bounced from $40 at the start of the month to test previous highs. The company benefited from Goldman forecasting 100 percent upside on the stock on Apr 6, followed by the company reporting major milestones afterward.
Crispr’s valuations expanded after Novartis (NYSE: NVS) bought out AveXis on Apr 9. That also gave Editas Medicine (NASDAQ: EDIT), Sangamo (NASDAQ: SGMO) and a lift and Ziopharm Oncology (NASDAQ: ZIOP), too.
Crispr is the most compelling idea of all. In Europe, regulators said on Apr 16 that the company may proceed with a trial of the DNA-splicing therapy. The company will study treating beta thalassaemia, a blood disorder.
Crispr’s technology has otential. Novartis, Regeneron (NASDAQ: REGN), and Celgene (NASDAQ: CELG) are all invested using CRISPR’s approach. On April 16, the company reported the potential effectiveness of off-the-shelf CAR-T cells. In vitro, the therapy selectively killed BCMA+ cells. In vitro and in vivo, it eradicated multiple myeloma cells.
Risk
With the market cap in the $2.5-billion range, the stock already prices drug testing in human trials and the efficacy of the CAR-T. It does not yet have phase 1 trials, so risks are high that the momentum in the stock could fall. Still, the short float is just 6.56 percent. Synergy Pharmaceuticals (NASDAQ: SGYP) has a product on the market but faces a short float of around 25%.
Bottom line
Watch Crispr for now. The potential in the company will play out and the stock will respond well over time.
