CRISPR and Merck stocks decline, potential value exists
Recent market declines have created buying opportunities, especially for two underperforming stocks: CRISPR Therapeutics and Merck. Both companies are known for their innovative medical therapies. Over the past year, CRISPR’s shares have fallen 41%, while Merck's have dropped 22%. CRISPR Therapeutics specializes in gene editing. It received approval for its treatment, Casgevy, in late 2023 but has not yet seen significant revenue. The treatment is costly and time-consuming to administer, and CRISPR shares profits with Vertex Pharmaceuticals, which developed the medicine alongside CRISPR. Despite these challenges, Casgevy has a large market potential, being available in multiple regions including the U.S. and Europe. The treatment is priced at $2.2 million per course and offers a one-time cure for severe blood diseases. CRISPR is also working on other therapies, like a potential cure for type 1 diabetes. With promising developments ahead, patient investors may find attractive returns in CRISPR’s stock. Merck is known for its leading cancer drug, Keytruda, which has many uses globally. However, competition from a new treatment, ivonescimab, could impact Keytruda's market share. Merck's revenue reached $64.2 billion last year, with Keytruda alone bringing in $29.5 billion, which is a significant portion of their earnings. Concerns about losing Keytruda due to upcoming patent expirations have investors worried. To address these risks, Merck is working on extending Keytruda’s patent life and developing new therapies. The company has partnered with Chinese firms to create new cancer medications and is also exploring treatments for weight management. Merck has a strong pipeline of future drugs and boasts a solid dividend, increasing payouts consistently over the last decade. Despite recent challenges, Merck's history of overcoming obstacles suggests it remains a strong option for long-term investors.