What Is A Better Investment Right Now: CRISPR vs. Invitae?
Within the biotech industry there is both high risk, but also high reward; but, is CRISPR or Invitae the better investment right now?
May 28, 2021

Biotechnology is an industry that is equal parts fascinating and risky. Yet, despite that, the possibility for reward is high as new technology advances are implemented and life-saving drugs are brought to the market. For investors, this industry is often overlooked as the businesses themselves are often difficult to understand. Furthermore, the need to make a successful commercial product alongside the valuable research that the majority of companies in this sector undertake, can either make or break the business.

With this in mind and the potential for high rewards in the future, we look at 2 stocks that have been making headlines over the past few years, CRISPR Therapeutics (NASDAQ: CRSP) and Invitae (NYSE: NVTA). But which one is the better investment? 

CRISPR: Bull vs Bear arguments

CRISPR Therapeutics is a biotechnology company that uses gene-editing technology to pioneer biotech therapies for numerous diseases. The company is currently up 85% over the past year. Although the stock is down 43% since its peak in February. 

Whilst CRISPR is admittedly a risky stock, due to the fact that it is a biotech stock, it is attracting big-name attention. The likes of Cathie Woods regularly scooping up CRISPR stock, in mid-May, she bought 55,894 shares for her ARK Invest. 

Furthermore, other biotech companies are impressed with that CRISPR is trying to achieve and its extensive data regarding gene therapies is invaluable for the development of new drugs. Vertex Pharmaceuticals has been collaborating with CRISPR since 2015 and together they are developing a potentially curative drug to treat sickle cell and transfusion-dependent beta-thalassemia. If approved, CRISPR will receive 40% of the profits. 

CRISPR, despite its brilliant innovation for the world of health, is a company that does not make money. It funds its operations through public and private offerings, thus whenever the company needs to finance future operations there is a risk of diluting the holdings that investors in the company own. This is the risk of investing in a research-based company such as CRISPR. The upside, however, is that its collaboration with Vertex could bring in profits should the trials all prove successful and the drug if it is taken to the market.

Invitae: Bull vs Bear arguments

Invitae is a leading medical genetics company that focuses on research and diagnostics. The company provides tests for multiple genes associated with hereditary cancer, as well as neurological disorders, cardiovascular disorders, and other hereditary conditions.

Invitae's stock is up 69% year-over-year, although it is down 48% since its peak in December. In Q1 this year, the pharmaceutical company reported a gross profit of $28 million on revenue of $103.6 million. Year-over-year, this is up 18% and 61% respectively. 

Unfortunately, in a similar thread to CRISPR, this is a company carrying out research in the biotech industry, thus, it does incur losses. With a Net loss of $122.2 million for Q1, this is up 53% from the year prior. Furthermore, its cash burn came in at $112 million, although this includes its acquisitions that it has made over the quarter. 

CEO, Sean, E. George, has sold a total of 42,117 of his own shares in the last 2 months. Whilst this doesn't necessarily mean anything negative just yet if the continual sale of his stock continues, this might shoot up red flags causing many investors to jump ship, bringing the share price down as a result. 

However, with Cathie Woods also taking a liking to this stock and calling it one of her most 'underappreciated holdings' you can make a bet that within the next few years, Invitae will be a company that you wish you had bought now, rather than later. 

So, which stock is a better buy right now? 

Currently, both are a good option for anyone looking for a stock that they can buy now and hold for the next 10 years. Biotech is constantly evolving and with new research and developments, and whilst both these stocks are going to incur losses for the next few years, it might be worth taking a chance on them. 

Out of the two, CRISPR is the most viable as it has been at the top of Cathie Wood's list for many months now. With its development of a new drug with Vertex Pharmaceuticals, CRISPR might even be on the way to earning some real revenue.

MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.

Top Ten Stocks To Buy Now
Commit to your future wealth today and join 1000s of subscribers receiving:
  • New stock picked every week out of 60,000 worldwide
  • Ten Foundational stocks to hold until 2034
  • A library of 60 stocks with analysis
  • 10 year Track record of performance
By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Policy and Terms of Use.

The Home of Successful Investing.

© 2024 MyWallSt Ltd. All rights reserved.







This website is operated by MyWallSt Ltd (“MyWallSt”). MyWallSt is a publisher and a technology platform, not a registered broker-dealer or registered investment adviser, and does not provide investment advice. All information provided by MyWallSt Limited is of a general nature for information and education purposes, and you should not construe any such information as investment advice. MyWallSt Limited does not take your specific needs, investment objectives or financial situation into consideration, and any investments mentioned may not be suitable for you. You should always carry out your own independent verification of facts and data before making any investment decisions, as we cannot guarantee the accuracy or completeness of any information we publish and any opinions that we publish may be wrong and may change at any time without notice. If you are unsure of any investment decision you should seek a professional financial advisor. MyWallSt Limited is not a registered investment adviser and we do not provide regulated investment advice or recommendations. MyWallSt Limited is not regulated by the Central Bank of Ireland. MyWallSt Limited may provide hyperlinks to web sites operated by third parties. Your use of third party web sites and content, including without limitation, your use of any information, data, advertising, products, or other materials on or available through such web sites, is at your own risk and is subject to the third parties' terms of use.