CRISPR Therapeutics Stock Falls 3.5% on Q3 Results

CRISPR Therapeutics (NASDAQ: CRSP) disappointed the market today with its third-quarter results, due in no small part to a dramatic but expected flip into the red on the bottom line.

For the quarter, the company's collaboration revenue withered to roughly $148,000, from the year-ago figure of nearly $212 million. The extreme fall was due to the fact that in the year-ago quarter, the clinical-stage company received development funds from longtime partner Vertex that comprised the vast bulk of its revenue.

3 strands of DNA.

Image source: Getty Images.

For similar reasons, CRISPR posted a loss in this most recent quarter. This amounted to almost $92.6 million, or $1.32 per share, against the year-ago net profit of $138.4 million.

Neither headline figure met analyst expectations. According to data compiled by Yahoo! Finance, on average, prognosticators tracking the stock were expecting nearly $2.1 million in revenue, and a per-share net loss of only $1.18.

CRISPR's earnings release comes shortly after the company, which specializes in therapies based on gene-editing techniques, made headlines for its off-the-shelf T-cell therapy CTX110. While the company reported some quite promising results in the early-stage trial for CTX110, this was marred by the death of a participant several weeks after he received a relatively high dosage of the treatment. Clinical-stage biotech stocks like CRISPR tend to be very sensitive to negative developments such as this, and shares took a serious hit despite those positive results detailed in the research.

Regardless, investors aren't particularly bullish on the company these days. On Wednesday, they bid the company's stock down by 3.5%, a steeper fall than that of the S&P 500 index.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CRISPR Therapeutics. The Motley Fool recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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