Street View: Vertex/CRISPR at advantage as FDA approves sickle cell gene therapies

Crispr Therapeutics AG

11/12/2023 13:37

** U.S. FDA on Friday approved two gene therapies for sickle
cell disease - partners CRISPR Therapeutics'  CRSP.BN   CRSP.O 
and Vertex's  VRTX.O  Casgevy and bluebird bio's  BLUE.O 
Lyfgenia
    ** CRSP/VTRX's Casgevy, the first treatment in the U.S.
based on the Nobel Prize-winning CRISPR gene editing technology,
is priced at $2.2 mln, while BLUE's Lyfgenia is priced higher at
$3.1 mln even as it comes with a safety warning of the potential
risk of causing blood cancer
    ** CRSP's U.S. shares are down 1% premarket, while those of
BLUE and VRTX are up ~6% and 1.5%, respectively

ADVANTAGE: CASGEVY
    ** Brokerage Needham (CRSP rating: "buy"; PT: $88) says
lower pricing and lack of 'Black Box' warning provide Casgevy
"with a large, and potentially, insurmountable competitive
advantage" in SCD
    ** But most brokerages say demand is likely to be low
overall
    ** Brokerage Bernstein (VRTX rating: "outperform"; PT: $395)
says a highly toxic conditioning regimen with high-dose
chemotherapy, which almost invariably leads to infertility, is a
significant drawback for the gene therapies
    ** Bernstein says investor expectations are low, and patient
demand remains to be seen
    ** Another brokerage, RBC Capital Markets (CRSP rating:
"sector perform"; PT: $57), says most doctors think the launch
will be slow given the high cost, need for egg/sperm banking,
over 15-year follow-up, and involvement of multiple departments
like hematology and transplant teams, among others
    ** TD Cowen (CRSP rating: "underperform"; PT: $30) estimates
only 200-300 patients getting SCD gene therapy per year, with
Casgevy having a 60% market share
    ** Brokerage TD Cowen says Casgevy will not be used widely
enough to support the shares' valuation; cuts rating from
'market perform'
 


 

 (Reporting by Puyaan Singh and Leroy Leo)
 ((Puyaan.Singh@thomsonreuters.com;))