What Makes Crispr Therapeutics Ag (CRSP) a Good Buy?

RGA Investment Advisors, an investment management company, has released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter-end figures concealed the inherent volatility in the market, which began with a steep sell-off and ended with clarity around global trade that changed the environment for evaluating enterprises. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, RGA Investment Advisors highlighted stocks such as CRISPR Therapeutics AG (NASDAQ:CRSP). CRISPR Therapeutics AG (NASDAQ:CRSP) is a gene editing company. The one-month return of CRISPR Therapeutics AG (NASDAQ:CRSP) was -8.57%, and its shares gained 19.87% of their value over the last 52 weeks. On August 15, 2025, CRISPR Therapeutics AG (NASDAQ:CRSP) stock closed at $59.73 per share, with a market capitalization of $5.432 billion.

RGA Investment Advisors stated the following regarding CRISPR Therapeutics AG (NASDAQ:CRSP) in its second quarter 2025 investor letter:

“After commercial approval of Casgevy, CRISPR Therapeutics AG (NASDAQ:CRSP) shares traded over $90. At their worst in the April crash, shares changed hands at $30, a 2/3rd discount to their post-approval peak. The trade war would ultimately have a negligible impact on CRSP, but shares dropped nearly 30% in the Spring collapse. This made little sense to us, especially given the substantial cash balance the company has built with prudent financings along the way.

When we bought shares of CRSP, the company’s Enterprise Value was below $800m, boasting over $1.8 billion in net cash. As the name would suggest, CRSP is a first-mover and leader in the Cell and Gene Therapy (CGT) space and the first to bring a life-changing gene editing therapy to FDA approval and commercial availability. For reference, CRISPR is a gene-editing technology that enables scientists to precisely alter DNA within living organisms by using a guide RNA and an enzyme (like Cas9) to cut and modify specific genetic sequences. We know the company well from following a basket of cell and gene therapy companies.

CRSP’s management has excelled at balancing capital discipline with R&D ambition. Now, with a commercial product and arguably the strongest balance sheet in its space, CRSP is in an enviable position, affording the opportunity to lean into its pipeline, while competitors retrench to conserve cash. We believe the company will retain over $900 million in cash by the time it turns cash flow positive. In essence, we’re buying Casgevy at a steep discount and getting the pipeline and cash for free. This is one of the more asymmetric setups we’ve encountered.”

In another article, we covered CRISPR Therapeutics AG (NASDAQ:CRSP) and shared the list of stocks Jim Cramer weighed in on. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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