TLDR
- CRSP fell as much as 11.59% on Friday, trading as low as $51.21
- Q1 earnings missed badly: EPS of -$1.37 vs -$1.15 expected; revenue of $0.86M vs $4.72M expected — down 97.8% year-over-year
- Regeneron’s newly approved gene therapy, Otarmeni, will be offered free to eligible U.S. patients, raising concerns about pricing pressure on Casgevy
- CEO Samarth Kulkarni sold 10,349 shares on March 16; insiders have sold 51,828 shares over the past three months
- Analysts maintain a consensus “Moderate Buy” with an average price target of $64.53
CRISPR Therapeutics ($CRSP) had a rough Friday. The stock dropped as much as 11.59%, hitting a low of $51.21, before settling around $51.04 — down from a prior close of $55.18. Volume came in at roughly 1.36 million, about 27% below the average session.
The selloff was driven by two things hitting at once: a weak earnings report and a competitive threat from Regeneron.
On the earnings side, CRISPR reported EPS of -$1.37 for the quarter, missing the consensus estimate of -$1.15. Revenue came in at just $0.86 million — against expectations of $4.72 million. That’s a 97.8% drop year-over-year, and it caught investors off guard.
The company’s negative return on equity sits at -26.31%, and its net margin is deeply negative. Analysts currently expect full-year EPS of -$4.93.
Regeneron’s Free Gene Therapy Adds Pressure
The other piece of the story is Regeneron. The company received approval for Otarmeni, a gene therapy it plans to offer free of charge to eligible U.S. patients. That’s a direct shot at the broader gene-editing market.
CRISPR’s flagship therapy, Casgevy — developed with Vertex Pharmaceuticals — carries a list price of $2.2 million. The concern is that Regeneron’s free model could force pricing conversations across the sector, making it harder for expensive one-time treatments to justify their costs.
Casgevy was the first CRISPR-based therapy approved by the FDA, a major milestone. But commercial uptake has been slow, and the Regeneron news adds another layer of uncertainty around the revenue path.
Insider Selling Adds to the Unease
Insider activity hasn’t helped sentiment. CEO Samarth Kulkarni sold 10,349 shares on March 16 at an average price of $48.26, reducing his stake by about 4%. General Counsel James Kasinger sold 3,450 shares the same day.
Over the past three months, insiders have sold a combined 51,828 shares, worth approximately $2.58 million. Insiders currently own 4.30% of the company.
That level of selling, while not unusual for biotech executives managing equity compensation, adds to the cautious mood around the stock.
On the analyst side, the picture is mixed but leaning constructive. Bank of America has a Buy rating with a $89 target. Needham rates it Buy with an $82 target. TD Cowen holds a Hold rating with a $45 target. Citizens JMP is at Market Outperform with an $80 target. The consensus sits at Moderate Buy, with an average price target of $64.53 — well above current levels.
The stock’s 50-day moving average is $52.68 and the 200-day is $55.70. Market cap stands at approximately $4.90 billion with a beta of 1.80.
The most recent price action has CRSP trading around $51, still below both key moving averages.
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