Wall Street Estimates That CRISPR Therapeutics Stock Could Jump 49%. Here's Why That's Right.
If the consensus price target set by Wall Street analysts is to be believed, CRISPR Therapeutics (NASDAQ: CRSP) stock is going to rise by 49% within the next 12 months. And while there's no telling precisely where its share price will end up next June, the analysts aren't getting caught up in hype or being overly optimistic with their forecasts -- they're probably pretty close to being on the money. Here's why.
To state the obvious, biotech stocks tend to fly when a company commercializes its first medicine. When a company makes money from drug sales for the first time, the market gains a lot of clarity regarding a stock's valuation. Likewise, if a player succeeds with moving one medicine to the market after years of research and development (R&D), its management team is sure to have gained a tremendous amount of relevant experience that'll make the process slightly less risky the next time around.
Before the end of the second quarter of 2024, CRISPR Therapeutics could have its gene therapy exa-cel approved and on the market for two different indications for rare blood disorders. Its requests for the go-ahead to commercialize exa-cel have already been submitted to the Food and Drug Administration (FDA) as well as authorities in the U.K. and European Union. On Dec. 8, the FDA will rule on whether exa-cel can be used to treat sickle cell disease (SCD), and on March 30, 2024, it will pass down a verdict for its transfusion-dependent beta thalassemia (TDT) indication.
Source Fool.com
