Swiss biotech CRISPR Therapeutics (NASDAQ:CRSP) added ~15% on Thursday after Cantor Fitzgerald launched its coverage with an Overweight rating and a $72 per share target expecting a potential FDA nod for its gene-editing therapy exa-cel.
Early this month, CRISPR (CRSP) and its partner for exa-cel Vertex Pharmaceuticals (VRTX) sought the FDA’s priority review for the treatment targeted at sickle cell disease and transfusion-dependent beta-thalassemia.
“The company has a very good chance of commercializing the first-ever CRISPR gene therapy later this year (a functional cure for sickle cell disease and beta-thalassemia)” Cantor analyst Olivia Brayer wrote.
Cantor estimates a 90% probability of success for the approval and sets its risk-adjected 2023 peak sales for the treatment at more than $1.6B compared to $1.3B in the consensus.
“We like that CRISPR is transitioning to a commercial-stage company this year with its anticipated exa-cel approval in 2H23, but we still think the drug’s commercial potential is still underappreciated,” Brayer explained.
The upgrade coincides with a draft report from the drug pricing watchdog, Institute for Clinical and Economic Review (ICER) that estimated a $1.9M price tag for exa-cel and a rival sickle cell disease therapy from bluebird bio (BLUE) on Wednesday.
Read: The prospects for exa-cel, formerly known as CTX001, “is massive with attractive potential pricing and demand,” Seeking Alpha author SL Investments argued with a Buy rating on CRSP recently.
