Some of the best gene editing stocks could soon see a massive boost.
In just days, the U.S. FDA could approve the first gene-editing treatment of sickle cell disease (SCD) from CRISPR Therapeutics (NASDAQ:CRSP), a move that could set off a firestorm of interest in all things gene editing. All after a U.S. FDA advisory panel gave it the green light just days ago.
While CRSP already ran from about $37.50 to $67.89, it could see higher highs as it nears its Dec. 8 PDUFA date with the U.S. FDA. Even better, the drug—exa-cel, which works by increasing hemoglobin levels—could finally help millions.
In fact, according to the National Heart, Lung and Blood Institute, “The condition affects more than 100,000 people in the United States and 20 million people worldwide.”
While CRSP is at the top of our buy list, it’s not the only gene editing stock that could run. As excitement builds ahead of the CRSP PDUFA date, other gene editing stocks could run.
Editas Medicine (EDIT)
Since the start of November, Editas Medicine (NASDAQ:EDIT) ran from about $6.90 to a high of $9.78. From here, I’d like to see it test $12, as it piggybacks CRSP excitement and gets set to administer its EDIT-301 treatment in 20 sickle-cell patients by year-end.
As noted in a company press release, “The Company will share clinical data updates from the RUBY trial for severe sickle cell disease (SCD) and the EdiTHAL trial for transfusion-dependent beta thalassemia (TDT) in a company-sponsored webinar and in a poster at the American Society of Hematology (ASH) annual meeting on Monday, December 11.”
Earnings haven’t been too shabby, either. Earlier this month, EDIT beat its top and bottom lines. Q3 EPS came in at 55 cents, which beat the estimate by two cents. Revenue rocketed to $5.33 million, crushing estimates by $1.91 million.
ARK Genomic Revolution ETF (ARKG)
One of my favorite ways to diversify at low cost is with an exchange-traded fund such as the ARK Genomic Revolution ETF (CBOE:ARKG).
With an expense ratio of 0.75, the fund invests in stocks that benefit from genomics. Some of its top holdings include Exact Sciences (NASDAQ:EXAS), CRISPR Therapeutics, Schrodinger (NASDAQ:SDGR), Beam Therapeutics (NASDAQ:BEAM) and Intellia Therapeutics (NASDAQ:NTLA).
Since the start of November, the ARKG ETF jumped from a low of about $22 to $27.57. Given the excitement, I’d like to see it closer to $32 as we near catalyst dates for EDIT and CRSP in December.
Beam Therapeutics (BEAM)
Or, look at Beam Therapeutics, which is involved in base editing. Instead of gene-editing like other companies, BEAM is base editing, which allows it to remove a DNA base and replace it with another.
Since the start of November, the gene editing stock popped from about $19 to a recent high of $29.67. From here, I’d like to see it test $35 in the near term.
The company recently agreed to sell certain rights to gene editing drug candidates developed with Verve Therapeutics (NASDAQ:VERV) to Eli Lilly (NYSE:LLY) for $200 million in upfront fees, as noted in a company press release. That’s in addition to a $50 million equity investment to LLY to BEAM.
“Beam is also eligible to receive up to $350 million in potential future development-stage payments upon the completion of certain clinical, regulatory and alliance events for a total of up to $600 million in potential total deal consideration,” added the release.
Also, at the moment, BEAM’s pipeline includes two base editing therapies. BEAM 101 is being created for sickle cell disease. BEAM 201 is being developed for relapsed/refractory T-cell acute lymphoblastic leukemia (T-ALL)/T-cell lymphoblastic lymphoma (T-LL), as noted by Motley Fool.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
