In the loud roar surrounding artificial intelligence (AI), investors more or less ignored other future topics in 2024. This also applies to biotechnology; on the Nasdaq, the sector did not make any headway on balance last year. Research companies specializing in innovative medicines were slowed down by the US elections, among other things. There are concerns that the environment could deteriorate with the return of Donald Trump to the White House. One indication of this is the possible nomination of Martin "Marty" Makary as head of the US Food and Drug Administration (FDA). The surgeon is not exactly known as a friend of the biotech and pharmaceutical industry. Even before the political decisions in the USA, CRISPR Therapeutics had already fallen off the stock market. In February 2024, the shares of the Zug-based biotech company had climbed to their highest level since fall 2021. Since then, the Nasdaq-listed stock has slumped by almost 60% compared to this top.
Little has actually changed in the company's equity story. CRISPR Therapeutics is working on putting a milestone reached in December 2023 on track. At that time, the FDA gave the green light for "Casgevy". This is a gene therapy for the treatment of sickle cell anemia, a serious blood disorder. The Zug-based company developed the product together with its US partner Vertex. Another indication for Casgevy is the chronic disease of the red blood pigment (hemoglobin), known as beta-thalassemia. CRISPR/Vertex has now received further approvals for these two treatment areas. According to the company, around 35,000 patients in the USA and Europe alone are eligible for treatment with Casgevy. However, apart from the milestone payments from Vertex, these successes have not yet yielded anything.
In the first nine months of 2024, CRISPR's operating loss increased by more than USD 100 million to USD 402 million. CEO Samarth Kulkarni remains confident. "The year 2025 promises to be a year of milestones," he announced at the beginning of the year. In addition to the commercialization of Casgevy, the top manager cites the research pipeline as a reason for optimism. "We will continue to expand our portfolio in the areas of oncology, autoimmune diseases and cardiometabolic diseases," explains the CEO in a press release. Kulkarni expects decisive progress to be made with "CTX112", among other things. This antigen receptor (CAR-T) against B-cell malignancies is currently undergoing clinical trials. CRISPR has the necessary capital for the research teams, most of whom work in the USA. According to the CEO, the company held cash, cash equivalents and marketable securities totaling approximately USD 1.9 billion at the beginning of 2025.
With this message in mind, the management traveled to San Francisco at the beginning of this week. In the US West Coast metropolis, CRISPR took part in a healthcare conference organized by J.P. Morgan on Tuesday, January 14, 2024. Let's see whether the Zug-based company was able to score points with investors with its presentation. Even if the USD 3.4 bn biotech stock doesn't get off the ground, attractive returns are possible with the new soft-callable barrier reverse convertibles. Leonteq has launched two variants of this structure based on CRISPR Therapeutics. The guaranteed coupon is 13% p.a. in the product currency CHF. With an allocation in USD, a distribution of 17.4% p.a. is due every three months. The barrier is a uniform 49% of the initial level. As long as CRISPR Therapeutics does not fall to or below this level during the 15-month term, the BRC yields the maximum return. Otherwise the partial protection expires and the investment is linked to the performance of the underlying share. Please also note the soft callable function. It makes early termination and redemption of these issues possible.
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