CRISPR Therapeutics AG (CRSP): A Bull Case Theory

We came across a bullish thesis on CRISPR Therapeutics AG (CRSP) on Two Natural Cap’s Substack. In this article, we will summarize the bulls’ thesis on CRSP. CRISPR Therapeutics AG (CRSP)’s share was trading at $41.52 as of 11^th June. CRSP’s trailing and forward P/E were 22.55 and 23.36 respectively according to Yahoo Finance.

CRISPR has re-entered the spotlight thanks to a groundbreaking case where the technology was used to treat Baby KJ, born with a severe genetic liver disorder caused by a CPS1 enzyme deficiency. With only a 50% survival rate in infancy, traditional treatment included heavy medication and a strict low-protein diet. But researchers rapidly developed a personalized CRISPR therapy that KJ has now received three times, allowing him to eat a regular diet and significantly reduce medication use.

This marks a major milestone not only for KJ but for the broader gene-editing landscape. At its core, CRISPR-Cas9 was originally a bacterial defense mechanism that evolved to recognize and cut viral DNA. Scientists have since repurposed this system, using modified guide RNAs and engineered Cas9 proteins to target human DNA with remarkable precision.

In most therapeutic uses, CRISPR creates double-stranded breaks that are imperfectly repaired by the body—helpful for knocking out malfunctioning genes, as seen with CASGEVY, the FDA-approved therapy for sickle cell disease and beta thalassemia. KJ’s case went further, employing “base editing” to fix a single-letter DNA error using a deaminase-modified CRISPR complex that swapped an adenine for a guanine, correcting the mutation without a DNA break. This was delivered via lipid nanoparticles (LNPs), offering dosing flexibility over traditional viral vectors.

The success not only validates the science behind base editing but also uplifts companies like Beam, CRISPR Therapeutics, and Intellia after years of market declines. It also spotlights Danaher’s Aldevron and Acuitas Therapeutics, whose platforms were instrumental in the therapy’s development, underscoring the growing viability of personalized gene medicine.

We previously covered a bullish thesis on CRISPR Therapeutics (CRSP) from wallstreetbets by MADD-Scientis, emphasizing Casgevy’s revenue potential, strong cash runway, and optionality in oncology and cardiology. Since the coverage, the stock price has appreciated by roughly 1.3%. Two Natural Cap’s thesis adds depth by spotlighting CRSP’s role in a groundbreaking base-editing therapy, reinforcing the platform’s adaptability. Both cases point to CRSP’s leadership in curative gene editing.

CRISPR Therapeutics AG (CRSP) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held CRSP at the end of the first quarter which was 27 in the previous quarter. While we acknowledge the risk and potential of CRSP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.