Yahoo Finance CRISPR Therapeutics AG Reports Q1 2024 Earnings: Misses Analyst Net Income Forecast
Revenue: Reported at $504K, significantly below the estimated $26.55 million.
Net Loss: Totaled $116.59 million, slightly above the estimated loss of $119.19 million.
Earnings Per Share (EPS): Recorded at -$1.43, worse than the estimated -$1.33.
Cash Position: Increased to $2.108 billion as of March 31, 2024, up from $1.696 billion at the end of the previous quarter.
R&D Expenses: Decreased to $76.2 million from $99.9 million in the same quarter the previous year.
G&A Expenses: Dropped to $18.0 million from $22.4 million year-over-year.
Collaboration Expense: Rose to $47.0 million, compared to $42.2 million in the first quarter of 2023.
On May 8, 2024, CRISPR Therapeutics AG (NASDAQ:CRSP) disclosed its first quarter financial results for 2024, revealing insights into its operational achievements and financial health. The company's detailed earnings report can be accessed through its 8-K filing.
Company Overview
CRISPR Therapeutics AG is a pioneering biopharmaceutical entity engaged in the development of gene-based therapies for serious diseases using its proprietary CRISPR/Cas9 platform. The company's flagship product, CASGEVY, targets sickle cell disease and transfusion-dependent beta-thalassemia and has been approved in multiple regions including the U.S. and the EU. The firm is also advancing a diverse pipeline across hemoglobinopathies, oncology, regenerative medicine, and other areas.
Financial Highlights
The first quarter of 2024 saw CRISPR Therapeutics AG report a net loss of $116.6 million, a significant increase from the net loss of $53.1 million recorded in the same period last year. This figure notably missed the analyst net income estimate of -$119.19 million. Total revenue for the quarter was $504,000, a stark contrast to the $100 million reported in the first quarter of 2023, primarily due to fluctuations in collaboration revenue.
The company's R&D expenses decreased to $76.2 million from $99.9 million year-over-year, reflecting reduced variable external research and manufacturing costs. General and administrative expenses also saw a reduction to $18.0 million from $22.4 million, attributed mainly to decreased employee-related and stock-based compensation expenses.
Operational Progress
CRISPR Therapeutics AG has made significant strides in expanding its treatment accessibility and advancing its clinical programs. Over 25 authorized treatment centers for CASGEVY have been activated globally. The company is also progressing with its next-generation CAR T product candidates, CTX112 and CTX131, targeting CD19 and CD70 respectively, which are in clinical trials for multiple indications.
Furthermore, the company is enhancing its in vivo gene editing capabilities with ongoing trials for CTX310 and CTX320 targeting cardiovascular diseases, and has introduced new pre-clinical programs using its lipid nanoparticle delivery platform for liver-targeted therapies.
Financial Position and Outlook
As of March 31, 2024, CRISPR Therapeutics AG reported a strong cash position with approximately $2.1 billion in cash, cash equivalents, and marketable securities, bolstered by a recent $280 million capital raise through a registered direct offering and a $200 million milestone payment from Vertex Pharmaceuticals. This financial stability supports the company's ongoing and future R&D efforts.
Strategic Collaborations and Future Directions
The company continues to benefit from its strategic collaboration with Vertex Pharmaceuticals, which now leads the global development, manufacturing, and commercialization of CASGEVY. Looking ahead, CRISPR Therapeutics AG anticipates multiple data readouts over the next 12-18 months, which could potentially broaden the impact of its gene-editing therapies across various patient populations.
In summary, while CRISPR Therapeutics AG faces challenges reflected in its increased net loss and reduced revenue, the company's robust pipeline and strong financial position provide a solid foundation for future growth and innovation in the gene-editing sector.
Explore the complete 8-K earnings release (here) from CRISPR Therapeutics AG for further details.
This article first appeared on GuruFocus.
