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2021/02/18 BRAZIL: An Intellia Therapeutics logo is shown on a… [+] smartphone with a stock market image in the backdrop in this photo illustration. (Image courtesy of Rafael Henrique/SOPA Images/LightRocket/Getty Images)
Getty Images/SOPA Images/LightRocket
Intellia Therapeutics, a gene-editing startup co-founded by CRISPR pioneer and Nobel Laureate Jennifer Doudna, announced that their experimental medication for transthyretin amyloidosis, NTLA-2001, had shown promising results in an early stage trial. Despite the fact that the study was tiny, with only six patients, the business reported significant reductions in levels of a toxic liver protein linked to the condition after just one injection. Following the revelation, Intellia stock has risen about 80% in the last three trading days. We now believe that this could be a game-changer for the gene editing industry as a whole. This was the first report from a clinical trial utilizing genome editing inside the human body to treat disease, and the findings should help to confirm that gene-editing technology works and is safe in people. Our indicator theme of Gene Editing stocks has surged significantly over the last week, and is now up nearly 20% year-to-date, compared to the S&P 500, which is up about 15% in the same time frame. However, the gains are mostly driven by Intellia stock, which is up over 3x year to date, while the other five firms in our theme have underperformed or decreased this year. CRISPR Therapeutics, for example, has increased by roughly 6%, whereas Vertex Pharmaceuticals and Editas Medicine have decreased by 15% and 19%, respectively. Sangamo Therapeutics has dropped 23% (chart, 10-k), while bluebird Bio has dropped 26%. We could see rises in stock prices across the topic as more of these businesses take prospects into clinical stages and produce readouts.
[6/14/2021] Should You Invest In Companies That Edit Genes?
Our indicator topic of Gene Editing stocks is down roughly 12% year to date, compared to the S&P 500, which is up over 13%. Investors are shifting money from high-growth and futuristic sectors to more cyclical and value stocks in order to profit from the post-Covid spike in economic activity in the coming quarters. Because gene editing companies are largely clinical or pre-clinical stage biotechs with little or no income, they have been particularly hard struck by this trend. Although most of the companies in our theme are currently losing money and are out of favor with the market, the longer-term upside could be significant, given that they are developing potentially revolutionary drugs that could cure conditions ranging from cancer to rare genetic disorders for which there are currently no treatments, as well as chronic diseases like diabetes.
Due to favorable brokerage views and anticipation surrounding the company’s NTLA-2001 medication, which is a single-course, potentially curative therapy for transthyretin amyloidosis, Intellia Therapeutics was the best performance within our subject, climbing by nearly 57 percent year-to-date. A data release from the drug’s phase 1 trial is expected later this month. Editas Medicine, on the other hand, has been the worst performer in our theme, with a year-to-date decline of around -47 percent, owing in part to a large surge late last year, repeated analyst downgrades, and some top management changes.
[3/29/2021] The Stocks of Gene Editing Companies Have Corrected. So, what’s next?
In comparison to the S&P 500, which is up approximately 6% year to date, our suggested theme of Gene Editing equities is down roughly 19% year to date. Bond yields have been trending higher as the economy recovers, owing to lower Covid-19 infections and increasing vaccination rates, forcing investors to shift capital from highly valued growth names to more cyclical and value bets. Because gene editing companies are largely clinical or pre-clinical stage biotechs with little or no income, they have been particularly hard struck by this trend. However, given that these companies are working on potentially breakthrough developments that could heal ailments ranging from cancer to rare genetic abnormalities, we believe now is an excellent moment to explore into the industry.
ADDITIONAL INFORMATION FOR YOU
Intellia Therapeutics was the best performer in our subject, with a year-to-date gain of roughly 19%. The business started dosing in November for its phase 1 research, which is evaluating NTLA-2001, a single-course, potentially curative medication for transthyretin amyloidosis. A data readout is expected within the next few months. Editas Medicine, on the other hand, has been the poorest performer, down over 42% year to date, owing in part to a large surge late last year, repeated analyst downgrades, and some top management changes. For a more extensive look at the components of our Gene Editing stocks theme, see our previous updates below.
[2/10/2021] Stocks to Watch in the Gene Editing Industry
Gene Editing Stocks, our indicator subject, is up roughly 187 percent since the end of 2018 and about 5% year-to-date. This year, scientists utilized gene editing to cure progeria condition in mice, sparking optimism that the method could be used to treat humans as well. Progeria is a rare genetic disorder that causes children to age prematurely, reducing their lives to around 14 years. Investors are still intrigued in the industry because it has the potential to change medicine and because absolute values aren’t too expensive, with the majority of companies remaining in the mid-cap category.
Intellia Therapeutics (NASDAQ: NTLA) has been the best performer in our topic thus far this year, up around 35% since early January. The business recently announced its strategic targets for 2021, which include continuing to progress a phase 1 research for a single-course therapy for protein misfolding disorder and filing regulatory applications for the treatment of acute myeloid leukemia and hereditary angioedema later this year. Vertex Pharmaceuticals, on the other hand, has dropped nearly 10% year to date, owing in part to weaker-than-expected Q4 2020 results. For a detailed look at the components of our theme, see the updates below.
[1/27/2021] What Are the Prospects for Gene Editing Stocks?
Gene-editing technology can be used to insert, alter, or remove a gene from an organism’s genome, and it has shown promise in treating diseases ranging from cancer to uncommon genetic disorders. Since the end of 2018, our indicator theme on Gene Editing Stocks has returned over 170 percent, compared to the S&P 500’s return of roughly 54 percent during the same period. Year-to-date, the theme has returned around 2.4 percent. Given the sector’s upside potential and the fact that absolute valuations aren’t too high, with most of the stocks remaining in the mid-cap category, investor interest in gene-editing remains high. So far this year, Intellia Therapeutics (NASDAQ: NTLA) has been the best performer in our topic, up 18% since early January. The gains come as the business announces its strategic targets for 2021, which include continuing to progress a phase 1 study for a single-course medication for protein misfolding disorder and filing a regulatory application for the treatment of acute myeloid leukemia. [1] Editas Medicine, on the other hand, has dropped around 13% year to date after the business announced plans to raise additional money by issuing 3.5 million shares at $66 per share. For a detailed look at the components in our theme, see our update below.
[1/8/2021] Stocks for Gene Editing
Gene editing has become a hot topic in biotech. The technology is used to insert, modify, or delete a gene from an organism’s genome, allowing for the replacement of faulty genes that cause disease with healthy versions. This technology is being examined for diagnostic purposes as well as developing treatments for a variety of diseases ranging from cancer to rare genetic abnormalities that are otherwise difficult to cure. While there are three major gene-editing methods, “clustered regularly interspaced short palindromic repeats,” or CRISPR, has emerged as the method of choice for most businesses, owing to its lower cost, simplicity, and flexibility when compared to other tools like ZFN and TALEN.
While most gene-editing firms are still in the clinical stage and have a limited financial track record, investment has increased significantly, and larger pharma companies are also working with these companies, owing to the potential profitability of the medicines and the broader technology. While there is still a lot of promise in these firms, investing in them is risky. Because this is a new technology that has never been used in humans, there is a danger of serious adverse effects or the therapies failing to work. The cost of manufacturing and selling these medications is likewise unknown. These equities are also extremely volatile, with large fluctuations in price as fresh research or data on their potential or risk becomes available. Over the past two years, our indicator theme on Gene Editing Stocks – which includes firms like CRISPR Therapeutics, Editas Medicine, and others – has gained roughly 230 percent, compared to the wider S&P 500, which has returned about 52 percent. A little additional information about these businesses can be found below.
CRISPR Therapeutics AG is one of the most well-known gene-editing companies. CTX001, an experimental gene treatment that has shown promise in persons with sickle cell disease and transfusion-dependent beta-thalassemia – illnesses that damage the oxygen-carrying cells in human blood – is being co-developed by the business with Vertex Pharmaceuticals. In addition, the business is developing cancer therapeutic prospects on its own. T/nRead More

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