What Does It Mean for Investors if CRISPR Therapeutics Gets Bought Out in 2024?

CRISPR Therapeutics (NASDAQ: CRSP) has put itself on the map of the healthcare industry as a serious player in gene editing. Now that it has an approved treatment in Casgevy, there’s undoubtedly going to be more of a spotlight on the company.

Gene-therapy treatments are growing in popularity, and for a larger healthcare company that is perhaps looking into getting into the business, it could be more attractive to simply buy CRISPR Therapeutics than to develop its own therapies.

Here’s why CRISPR could be an attractive acquisition target, and what it would mean for investors if the company is bought out this year.

CRISPR’s valuation looks low

Although CRISPR’s stock received some great news late last year with the approval of Casgevy, a one-time treatment for sickle cell disease it has been developing with Vertex Pharmaceuticals, the stock hasn’t exactly been taking off since then.

CRISPR’s valuation sits at around $4.8 billion, which seems incredibly low given that at its peak, Casgevy could generate $3.9 billion in annual revenue. The company will share in the profits on Casgevy with Vertex. But with the treatment costing $2.2 million, odds are it should bring in a healthy profit for both businesses.

The two companies are also hoping that it obtains approval as a treatment for transfusion-dependent beta thalassemia. News on that decision should come by the end of March.

Now that CRISPR’s business looks to be in much better shape, it should attract a higher valuation, especially since the treatment could give the business a path to profitability. The company has incurred a net loss of $416 million over the past four quarters.

For a potential acquirer, CRISPR’s modest valuation could make it a fairly low-cost option to get into the gene-editing business.

The company has an attractive balance sheet

When companies seek out potential acquisitions, the balance sheet is often one place that needs improvement. This is why you might sometimes see a company selling and offloading…