In this article, we discuss 10 best gene editing stocks to buy.
A report by The Wall Street Journal dated September 16 suggests that Intellia Therapeutics, Inc. (NASDAQ:NTLA) revealed positive early-stage trial results for its CRISPR gene-editing treatments, which is the latest indication that the trailblazing technology could generate commercially viable drugs in the near future.
There have been many new developments in the gene editing space. A group of researchers from Northwestern University have developed a unique platform for gene editing that could be utilized in the future application of nearly limitless CRISPR-based therapeutics. The team found a solution to transform the Cas-9 protein into a spherical nucleic acid (SNA) and fill it with complex components as required to approach a huge range of tissue and cell types, as well as the intracellular compartments necessary for gene editing. This was previously a limitation of CRISPR. The new study improves upon a 25-year study led by nanotechnology pioneer, Chad A. Mirkin.
Similarly, the CRISPR innovator Feng Zhang is launching another aspiring gene-editing startup, funded by nearly $200 million from some of biotech’s most prominent investors. The startup, named Aera Therapeutics, aims to overcome a consistent gene-editing constraint – delivering genetic goods, including CRISPR, into multiple different organs. To benefit from the boom in the gene editing space, investors could check out some notable gene editing players in the market including AbbVie Inc. (NYSE:ABBV), Agilent Technologies, Inc. (NYSE:A), and CRISPR Therapeutics AG (NASDAQ:CRSP).
Our Methodology
We selected the following gene editing stocks based on growth fundamentals, ongoing and pipeline projects, positive analyst coverage, and strong hedge fund sentiment as of June 2022. We have arranged the list of the best gene editing stocks according to the number of hedge fund holders in each firm, tracked by Insider Monkey as of the second quarter of 2022.
Best Gene Editing Stocks To Buy
10. Allogene Therapeutics, Inc. (NASDAQ:ALLO)
Number of Hedge Fund Holders: 17
Allogene Therapeutics, Inc. (NASDAQ:ALLO) is a California-based clinical stage immuno-oncology company that develops and commercializes genetically engineered allogeneic T cell therapies for cancer treatment. On October 6, Allogene Therapeutics, Inc. (NASDAQ:ALLO) announced that it has started the phase 2 ALPHA2 trial of ALLO-501A, an allogeneic chimeric antigen receptor T cell (AlloCAR T) therapy for relapsed/refractory large B-cell lymphoma. The company is also in the process of initiating the phase 2 EXPAND trial for ALLO-647, an anti-CD52 monoclonal antibody, which would be utilized with ALLO-501A and other AlloCAR T therapies to enhance clinical results.
On September 22, B. Riley analyst Kalpit Patel maintained a Buy rating on Allogene Therapeutics, Inc. (NASDAQ:ALLO) but lowered the price target on the shares to $18 from $21 after the company revealed that Servier has sent a notice of termination of its participation in the development of all licensed CD19-targeting products, including UCART19, ALLO-501, and ALLO-501A. Servier’s discontinuation allows Allogene Therapeutics, Inc. (NASDAQ:ALLO) the right to gain a license for CD19 products outside the U.S. territories, the analyst told investors in a research note.
According to Insider Monkey’s data, 17 hedge funds were bullish on Allogene Therapeutics, Inc. (NASDAQ:ALLO) at the end of Q2 2022, compared to 20 funds in the prior quarter. Woodline Partners is the leading position holder in the company, with 5.85 million shares worth $66.80 million.
Like AbbVie Inc. (NYSE:ABBV), Agilent Technologies, Inc. (NYSE:A), and CRISPR Therapeutics AG (NASDAQ:CRSP), Allogene Therapeutics, Inc. (NASDAQ:ALLO) is one of the best gene editing stocks to invest in.
9. Beam Therapeutics Inc. (NASDAQ:BEAM)
Number of Hedge Fund Holders: 17
Next on our list of the best gene editing stocks is Beam Therapeutics Inc. (NASDAQ:BEAM), which was incorporated in 2017 and is based in Cambridge, Massachusetts. It is a biotechnology firm that develops precision genetic medicines for patients suffering from serious diseases in the United States. Some of its therapeutic focus areas include sickle cell disease, beta thalassemia, T-cell acute lymphoblastic leukemia, ocular diseases, and liver, muscle, and central nervous system disorders.
Beam Therapeutics Inc. (NASDAQ:BEAM) announced on September 19 new preclinical data indicating the potential of the company’s multiplex base editing approach to both reduce viral markers, including hepatitis B surface antigen expression, and prevent viral rebound of hepatitis B virus in ‘in vivo’ models. The findings show that base editing has the capacity to permanently inactivate cccDNA and integrated HBV DNA by developing mutations that stop HBV replication and suppress viral protein expression.
On August 10, Barclays analyst Gena Wang raised the price target on Beam Therapeutics Inc. (NASDAQ:BEAM) to $60 from $38 and maintained an Equal Weight rating on the shares following the Q2 results.
According to Insider Monkey’s data, 17 hedge funds were long Beam Therapeutics Inc. (NASDAQ:BEAM) at the end of the second quarter of 2022, compared to 20 funds in the prior quarter. Cathie Wood’s ARK Investment Management is the largest stakeholder of the company, with nearly 8.80 million shares worth $309.30 million.
Here is what Baron Health Care Fund has to say about Beam Therapeutics Inc. (NASDAQ:BEAM) in their Q1 2021 investor letter:
“Beam Therapeutics Inc. is a biotechnology company pioneering a novel technology called base editing, which allows for individual base pairs (the letters of DNA) to be modified. Shares fell along with other biotechnology stocks driven by a sudden rise in treasury yields. Early stage biotechnology stocks are particularly sensitive to interest rates because their cash flows are further in the future. We believe we are entering into a phase of significant advancement for the gene editing field that will eventually lead to curative therapies, and we think Beam has a unique platform technology.”
8. Editas Medicine, Inc. (NASDAQ:EDIT)
Number of Hedge Fund Holders: 18
Editas Medicine, Inc. (NASDAQ:EDIT) is a Massachusetts-based clinical stage genome editing company, specializing in the development of transformative genomic medicines to treat multiple serious diseases. It operates a proprietary gene editing platform based on CRISPR technology. The company reported a Q2 2022 revenue of $6.36 million, climbing 1573.7% on a year-over-year basis, beating market estimates by $2.07 million. It is one of the best gene editing stocks to invest in.
On September 29, BofA analyst Greg Harrison initiated coverage of Editas Medicine, Inc. (NASDAQ:EDIT) with a Neutral rating and an $18 price target. The analyst said the company posted “mixed” initial clinical data from its key program, EDIT-101 in LCA10, and he sees strong competition in hemoglobinopathies for EDIT-301. Data so far has been limited, and with the latest failures from peers, investors are wary. However, with no treatments available, the analyst thinks “the bar is low for approval” and sees a high penetration for EDIT-101 in new patients with peak sales of $295 million.
According to Insider Monkey’s data, 18 hedge funds held stakes worth nearly $65 million in Editas Medicine, Inc. (NASDAQ:EDIT) at the end of June 2022, compared to 18 in the prior quarter worth $98.2 million. Ken Griffin’s Citadel Investment Group is the leading position holder in the company, with 1.25 million shares worth about $15 million.
7. Sangamo Therapeutics, Inc. (NASDAQ:SGMO)
Number of Hedge Fund Holders: 19
Sangamo Therapeutics, Inc. (NASDAQ:SGMO) is headquartered in Brisbane, California, operating as a clinical-stage biotechnology company, focusing on the development of genomic medicines using platform technologies in gene therapy, cell therapy, genome editing, and genome regulation. Sangamo Therapeutics, Inc. (NASDAQ:SGMO) is one of the best gene editing stocks to buy now.
On October 11, Sangamo Therapeutics, Inc. (NASDAQ:SGMO) announced updated preliminary results from the Phase 1/2 STAAR clinical study evaluating ST-920, a wholly owned gene therapy product candidate for the treatment of Fabry disease. The data indicates that the treatment continued to be generally well tolerated, with no treatment-related serious risks found in the trial candidates. Sangamo Therapeutics, Inc. (NASDAQ:SGMO) is planning for a potential Phase 3 clinical trial.
Among the hedge funds tracked by Insider Monkey, 19 funds reported owning stakes worth $48.3 million in Sangamo Therapeutics, Inc. (NASDAQ:SGMO) at the end of Q2 2022, compared to 18 funds in the prior quarter worth $37.8 million. Chris Rokos’ Rokos Capital Management is the leading stakeholder of the company, with 3 million shares worth $12.5 million.
Here is what Wasatch Ultra Growth Fund has to say about Sangamo Therapeutics, Inc. (NASDAQ:SGMO) in its Q1 2021 investor letter:
“Another weak stock in the Fund was Sangamo Therapeutics, Inc. (SGMO). Some investors may have been spooked by the resignation of Sangamo’s chief financial officer (CFO) after a tenure of less than one year. After conducting our own research, which included a conversation with the departing CFO, we believe the move was purely for personal reasons. Sangamo specializes in the treatment and cure of single-gene disorders. We remain optimistic about its future prospects, current partnerships and development pipeline— which includes gene therapy, in-vivo gene editing and ex-vivo genome medicine. (Current and future holdings are subject to risk.)”
6. Caribou Biosciences, Inc. (NASDAQ:CRBU)
Number of Hedge Fund Holders: 20
Caribou Biosciences, Inc. (NASDAQ:CRBU) is a California-based clinical-stage biopharmaceutical company that engages in the development of genome-edited allogeneic cell therapies for the treatment of hematologic malignancies and solid tumors in the United States and internationally. In the beginning of September, Caribou Biosciences, Inc. (NASDAQ:CRBU)’s follicular lymphoma treatment was granted orphan designation by the FDA.
On August 29, Citi analyst Yigal Nochomovitz maintained a Buy recommendation on Caribou Biosciences, Inc. (NASDAQ:CRBU) but lowered the price target on the shares to $38 from $39. The analyst updated the company’s model after the Q2 results.
According to Insider Monkey’s second quarter database, 20 hedge funds were long Caribou Biosciences, Inc. (NASDAQ:CRBU), compared to 22 funds in the last quarter. Partner Fund Management is the biggest stakeholder of the company, with 6 million shares worth $32.5 million.
For exposure to the gene editing space, smart investors pile into Caribou Biosciences, Inc. (NASDAQ:CRBU), as well as AbbVie Inc. (NYSE:ABBV), Agilent Technologies, Inc. (NYSE:A), and CRISPR Therapeutics AG (NASDAQ:CRSP).
5. Graphite Bio, Inc. (NASDAQ:GRPH)
Number of Hedge Fund Holders: 20
Graphite Bio, Inc. (NASDAQ:GRPH) is a clinical-stage gene editing company based in San Francisco, California. It develops therapies for life-threatening diseases in the United States. Graphite Bio, Inc. (NASDAQ:GRPH) is one of the best gene editing stocks to invest in. As of June 30, the company reported that cash, cash equivalents, and investments in marketable securities came in at $328.3 million. Graphite Bio, Inc. (NASDAQ:GRPH) believes that this money can fund planned operations into the fourth quarter of 2024.
On September 15, Cantor Fitzgerald analyst Olivia Brayer initiated coverage of Graphite Bio, Inc. (NASDAQ:GRPH) with an Overweight rating and a $12 price target. The company’s primary program is still in early stages, but it is gaining visibility in the sickle cell disease space given its potentially unique and curative approach, the analyst told investors.
According to Insider Monkey’s data, 20 hedge funds were bullish on Graphite Bio, Inc. (NASDAQ:GRPH) at the end of June 2022, up from 12 funds in the prior quarter. Samsara BioCapital is the leading position holder in the company, with 8.45 million shares worth $23.2 million.
4. Intellia Therapeutics, Inc. (NASDAQ:NTLA)
Number of Hedge Fund Holders: 27
Intellia Therapeutics, Inc. (NASDAQ:NTLA) was incorporated in 2014 and is headquartered in Cambridge, Massachusetts. The genome editing company focuses on the development of therapeutics for transthyretin amyloidosis, hereditary angioedema, acute myeloid leukemia, sickle cell disease, cancer, and autoimmune disorders.
On October 11, Morgan Stanley analyst Terence Flynn initiated coverage ofIntellia Therapeutics, Inc. (NASDAQ:NTLA) with an Overweight rating and a $84 price target. Naming it “one of the leading genome editing companies,” the analyst noted that Intellia Therapeutics, Inc. (NASDAQ:NTLA) was the first to demonstrate the ability to edit a gene in the body, or “in vivo,” as compared to outside of the body, or “ex vivo.”
According to Insider Monkey’s data, 27 hedge funds held stakes worth $853 million in Intellia Therapeutics, Inc. (NASDAQ:NTLA) at the end of Q2 2022, compared to 35 funds in the prior quarter worth $1.15 billion. Cathie Wood’s ARK Investment Management is the largest stakeholder of the company, with 9.5 million shares worth $439 million.
Carillon Tower Advisers discussed its stance on Intellia Therapeutics, Inc. (NASDAQ:NTLA) in its Q2 2021 investor letter.
“Intellia Therapeutics is a clinical-stage genome editing company focused on the development of proprietary, potentially curative therapeutics. The company’s stock soared after announcing positive interim data from an ongoing phase 1 clinical study of its in vivo gene editing candidate, which is being developed as a single-dose treatment for hereditary transthyretin (ATTR) amyloidosis. This specific form of therapy would be the first of its kind resulting in the precision editing of a gene in a target tissue in the human body.”
3. Agilent Technologies, Inc. (NYSE:A)
Number of Hedge Fund Holders: 41
Agilent Technologies, Inc. (NYSE:A) was incorporated in 1999 and is headquartered in Santa Clara, California. The company provides application-focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. The Diagnostics and Genomics segment offers arrays for DNA mutation detection, genotyping, gene copy number determination, identification of gene rearrangements, DNA methylation profiling, gene expression profiling, next generation sequencing, target enrichment, and genetic data management. Agilent Technologies, Inc. (NYSE:A) is one of the best gene editing stocks to monitor.
On September 21, Agilent Technologies, Inc. (NYSE:A) declared a $0.21 per share quarterly dividend, in line with previous. The dividend is payable on October 26, to shareholders of record on October 4. The forward yield was 0.66%.
Credit Suisse analyst Dan Leonard on August 24 initiated coverage of Agilent Technologies, Inc. (NYSE:A) with an Outperform rating and a $165 price target. The analyst believes that the Street “underappreciates its ability to grow toward the top end of the industry in multiple macro environments”. The analyst believes a premium multiple to its peers is appropriate for Agilent Technologies, Inc. (NYSE:A) due to its quick growth prospects.
According to Insider Monkey’s Q2 data, 41 hedge funds were bullish on Agilent Technologies, Inc. (NYSE:A), compared to 43 funds in the earlier quarter. Ian Simm’s Impax Asset Management is the biggest stakeholder of the company, with 4.16 million shares worth $495 million.
Here is what Pershing Square Holdings has to say about Agilent Technologies, Inc. (NYSE:A) in its Q2 2021 investor letter:
“Our large commitment to UMG required that we raise cash from the sale of one of our other investments. In light of the high quality of companies in our portfolio, this was a difficult decision to make. Ultimately, we chose to sell Agilent, as its current share price approached our conservative estimate of intrinsic value. If we did not need the capital, we would not have sold the stock.
Agilent has been a highly successful investment since our original purchase nearly two years ago, compounded by our additional investment in the company in the Covid market decline last year. Agilent’s stock price has increased 2.2 times since our initial purchase as a result of the company’s acceleration in revenue growth and profitability. Agilent has been a critical supplier of technology and services to labs around the world fighting the Covid pandemic. The company’s management team led by Mike McMullen deserves enormous credit for the company’s success and for its important contribution to science and the fight against Covid for which we all should be extremely grateful.”
2. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Number of Hedge Fund Holders: 45
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a Boston-based biotechnology company that develops and commercializes therapies for treating cystic fibrosis. On September 28, MaxCyte, Inc. (NASDAQ:MXCT) announced that it has signed a non-exclusive licensing deal with Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), allowing the latter to use MaxCyte’s Flow Electroporation technology and ExPERT platform to develop the gene-edited therapy exa-cel, previously known as CTX001. Vertex is already developing exa-cel, currently in phase 2/3, with CRISPR Therapeutics AG (NASDAQ:CRSP). Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is one of the best gene editing stocks to purchase.
On September 27, after Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) and CRISPR Therapeutics AG (NASDAQ:CRSP) announced that Vertex has concluded discussions with the FDA and will submit its biologics licensing application for exa-cel for a review starting in November and expects to finish the submission by the end of Q1 2023, Morgan Stanley analyst Matthew Harrison called the timeline “better than feared.” Investors had worried the U.S. filing may not occur until Q4 2023, so this news is optimistic, noted the analyst. He maintained an Equal Weight rating and a $253 price target on Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) shares.
According to Insider Monkey’s data, 45 hedge funds were long Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) at the end of Q2 2022, compared to 49 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the leading position holder in the company, with 1.76 million shares worth over $496 million.
Here is what Carillon Tower Advisers specifically said about Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its Q2 2022 investor letter:
“Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), a provider of cystic fibrosis medications, rallied on a better outlook for its new product pipeline and fading concerns about potential competitive offerings in cystic fibrosis. The stock also may have attracted significant investor attention as a potential safety trade due to its relative low valuation and defensive business characteristics.”
1. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 71
AbbVie Inc. (NYSE:ABBV) is headquartered in North Chicago, Illinois, and the company manufactures and sells pharmaceuticals worldwide. In February 2021, AbbVie Inc. (NYSE:ABBV) announced a collaboration with Caribou Biosciences, Inc. (NASDAQ:CRBU), where they planned to work together to improve CAR-T cell therapies with the help of CRISPR gene editing technology. AbbVie Inc. (NYSE:ABBV) is one of the best gene editing stocks to consider.
On September 9, AbbVie Inc. (NYSE:ABBV) declared a per share quarterly dividend of $1.41, in line with previous. The dividend is distributable on November 15, to shareholders of record on October 14. The dividend yield on October 14 came in at 3.95%.
JPMorgan analyst Chris Schott said on September 21 that AbbVie Inc. (NYSE:ABBV) continues to be one of his favorite large cap ideas as investor focus centers on Humira generics and the company’s trough earnings profile. The analyst sees an attractive setup for AbbVie Inc. (NYSE:ABBV) stock given further clarity on Humira generic dynamics expected over the next few quarters. The analyst continues to see a solid case for multiple expansion and reiterated an Overweight rating on the shares with a $180 price target.
According to Insider Monkey’s data, 71 hedge funds held stakes worth $2.8 billion in AbbVie Inc. (NYSE:ABBV) at the end of June 2022, compared to 76 funds in the prior quarter worth $3.6 billion. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the largest stakeholder of the company, with 4.2 million shares valued at $654 million.
Here is what ClearBridge Investments said about AbbVie Inc. (NYSE:ABBV) in its Q2 2022 letter:
“We added to our health care exposure in the quarter with the purchases of Straumann Holding (OTCPK:SAUHF), a Swiss manufacturer of medical instruments, implants and related supplies for dental procedures, in the secular bucket and U.S. pharmaceutical maker AbbVie Inc. (NYSE:ABBV) in the structural bucket. Straumann is the global market leader in dental implants with 29% overall share, a meaningful position within premium implants and smaller share in value implants. The company is also involved in clear aligners through a series of acquisitions as well as peripheral capital equipment around those businesses.
Growth will come from increasing share in both value implants and clear aligners through expansion in emerging markets on top of market growth in its premium implant business. AbbVie is undergoing a transition in anticipation of loss of exclusivity for its blockbuster Humira in the next several years with several commercial therapeutics, led by Skyrizi for psoriasis and Rinvoq for rheumatoid arthritis.”
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Disclosure: None. 10 Best Gene Editing Stocks To Buy is originally published on Insider Monkey.
