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Gene-editing company CRISPR Therapeutics (NASDAQ:CRSP) has priced their initial public offering and now, interested investors can purchase a piece.
Investors can expect to see a new biotech trading on the NASDAQ on October 19, 2016: gene-editing company CRISPR Therapeutics (NASDAQ:CRSP) has priced their initial public offering and now, interested investors can purchase a piece.
The IPO consists of 400,000 common shares priced at $14.00 each. A 30 day option allows underwriters to purchase an additional 600,000 common shares at this price. At the same time, CRISPR Therapeutics has sold another 2,500,000 shares to Bayer Global Investments, bringing in $35 million in funding—and perhaps winning the confidence of some individual investors.
The initial offering is expected close on October 24, 2016.
CRISPR Therapeutics filed their IPO on September 9, 2016, joining the ranks of several other biotechs based on CRISPR-Cas9 gene-editing technology: Intellia Therapeutics (NASDAQ:NTLA) and Editas Medicine (NASDAQ:EDIT) also went public this year. Each of those companies saw their IPOs bring in over $100 million.
So why the sudden rush of IPOs from gene-editing companies? It has to do with excitement over CRISPR-Cas9 gene-editing technology. Precise and cost-effective, this method—which manipulates guide RNA to alter genetic material—is considered a game-changer by many.
CRISPR Therapeutics will use it to tackle diseases like cystic fibrosis, hemophilia and Duchenne muscular dystrophy—conditions for which there are few, if any, available treatments. If successful, then, the company stands to capture a major part of the market share.
CRISPR-Cas9, however, is still a relatively new technology. And while it holds much promise, there are no guarantees. Indeed, both Intellia Therapeutics and Editas Medicine have seen their stock plummet in the months since their IPOs: year to date, Intellia has seen losses of 45.61 percent, while Editas’ stock has dropped 24.12 percent.
Will those numbers give investors pause over CRISPR Therapeutics? Or will the buy-in from Bayer, plus buzz over CRISPR-Cas9 technology, make this IPO a wild success?
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Securities Disclosure: I, Chelsea Pratt, hold no direct investment interest in any company mentioned in this article.