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Casgevy Starts Paying Off for CRISPR: Rapid Earnings Reaction

The Motley Fool · 4d ago

Key Points

  • Casgevy sales grew 30% from last quarter as approvals for younger children expanded.

  • CRISPR's own costs for the Vertex partnership are shrinking, though its net loss still widened.

  • Heart-drug data due next week may matter more to the stock than this quarter's numbers.

CRISPR Therapeutics (NASDAQ:CRSP) said sales of Casgevy, the sickle cell and beta thalassemia therapy it shares with Vertex Pharmaceuticals (NASDAQ:VRTX), reached $99 million in the third quarter. Shares fell about 2% in early after-hours trading. Casgevy is starting to pay CRISPR back, but the quarterly loss barely moved, so the pipeline still carries the stock.

Key Numbers

  • Casgevy sales: $99 million, up 30% from the second quarter and nearly six times the year-ago quarter.
  • Collaboration revenue: $12.3 million, versus none a year earlier.
  • Net loss: $111.4 million, versus $106.4 million a year earlier.
  • Cash and marketable securities: $2.28 billion, versus $1.98 billion at the end of 2025.

What It Means

CRISPR doesn't book Casgevy sales itself. Vertex runs the launch, and the two split profits and costs 60/40. A year ago, CRISPR's share of costs far outran any income. Now sales are large enough to shrink that bill, and net collaboration expense fell about 28% from a year earlier.

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The loss still widened, but spending isn't the main reason. Operating loss narrowed slightly, even with a milestone payment to siRNA partner Sirius Therapeutics. The swing came from other income, which fell by about $7.5 million. The release doesn't say why.

The bigger cash balance isn't a sign of self-funding. It rose because CRISPR sold $585 million of convertible notes in March, and without them cash would have shrunk. Convertible notes can turn into stock later, and the share count is already higher than a year ago.

What to Watch Next

The next test is CTX310's Phase 1b data in severe hypertriglyceridemia, set for a late-breaking talk at the American Heart Association meeting on Nov. 9. After that, watch whether Casgevy keeps cutting CRISPR's net collaboration expense next quarter.

David Kretzmann has positions in CRISPR Therapeutics. The Motley Fool has positions in and recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.