Crispr Therapeutics stock has surged 65% this year but remains 40% below Morningstar’s $106 fair value estimate. The biotech company aims for positive net income in 2029. Despite regulatory hurdles, Crispr is a buy for long-term investors. The company’s Crispr/Cas9 platform shows promise in treating genetic diseases.

Crispr lacks an economic moat but has strong funding and technology capabilities. The company’s early-stage pipeline faces regulatory uncertainties. Casgevy, developed with Vertex Pharmaceuticals, targets beta thalassemia and sickle cell disease. Crispr’s potential hinges on successful clinical trials and regulatory approvals.

Morningstar assigns Crispr a fair value estimate of $106 per share. Casgevy could become a blockbuster drug, with Crispr and Vertex sharing profits. Other pipeline treatments may not reach the market until 2028. The company’s high uncertainty warrants an 11% cost of equity, higher than other biotechs.

Uncertainty surrounds Crispr’s early-stage pipeline and regulatory approvals. Violations could lead to recalls, lawsuits, and patent issues. Sales depend on reimbursements from payers, with pricing pressures from governments. Partnerships help offset clinical development costs, but competition and pipeline development remain concerns.

Read more at Morningstar: This Cheap Stock to Buy Is Up 65% in 2025