CRISPR Therapeutics: Gene Editing Pipeline Candidates Make Progress, Shares Very Undervalued

CRISPR Therapeutics reported second-quarter results in line with our expectations, and its pipeline candidates are continuing to make progress. Collaboration revenue totaled $70 million, which was largely attributable to a research milestone achieved in connection with CRISPR’s agreement with narrow-moat Vertex Pharmaceuticals. We maintain our positive outlook and fair value estimate of $119 per share. We view the stock as very undervalued, currently trading in 5-star territory about 55% below our fair value estimate.