Why Crispr's Gene-Editing Dive Helped Reinvigorate Its Chief Rival, Allogene

 Analysts were split Wednesday as they compared Crispr Therapeutics' (CRSP) gene-edited cancer drug to Allogene's (ALLO) — but CRSP stock tumbled as ALLO stock popped.

Both companies are working on CAR-T treatments. This method of targeting cancer involves training white blood cells to find and destroy cancer, then infusing them into the patient. Existing drugs from Novartis (NVS) and Gilead Sciences (GILD) do this with a patient's own cells. But Crispr, Allogene and Fate Therapeutics (FATE) are attempting to use donor cells, a process called allogeneic.

Crispr unveiled test results for 26 lymphoma patients who received its drug, dubbed CTX110, for at least 28 days. Overall, 58% of patients responded to the treatment. And 38% had no signs of cancer, a phenomenon known as a complete response.

But analysts zeroed in on the durability of those responses. At six months, just 21% of Crispr's patients still had a complete response. In comparison, 36% of patients in Allogene's study showed no signs of cancer at the six-month mark. But Allogene's study was recently placed on hold due to safety issues.

"With the recent clinical hold placed on Allogene's programs, Crispr is now clearly leading the pack in the allogeneic CAR-T space," Needham analyst Gil Blum said in a report.

CRSP Stock Dives On Cancer Test

In midday trading on the stock market today, CRSP stock sank 6% near 96.40. Meanwhile, ALLO stock jumped 6.9% near 14.40, and FATE stock edged up 1.3% near 59.80.

Crispr says its allogeneic CAR-T drug could offer an improvement over autologous options, which uses a patient's own cells. Crispr applies its gene-editing technology — also known as CRISPR — to the donor cells. This "off-the-shelf" version of CAR-T could cheaper to make and easier to mass produce.

Needham's Blum notes the results from Crispr's study put it in line with already commercial CAR-T drugs from Novartis and Gilead. The studies used for their approvals show 72% of patients responded to Gilead's drug, Yescarta. Half of patients responded to Novartis' rival drug, Kymriah.

Crispr also argues that its drug is safer. The labels for Yescarta and Kymriah warn against a side effect known as cytokine release syndrome. In this, multiple organs become inflamed. But there were no serious cases of the syndrome in Crispr's test.

Just one patient died in Crispr's study vs. five in Allogene's study, RBC Capital Markets analyst Luca Issi said in a report. Infections were lower in Crispr's study, but rates of all cytokine release syndrome — which includes milder cases — were higher. Issi has a sector perform rating on CRSP stock.

Pivotal Time For Allogeneic CAR-T

Crispr is now planning to expand the study in the first quarter of 2022. The company hopes the study could offer enough evidence for approval.

The results came less than a week after the Food and Drug Administration placed Allogene's programs on a clinical hold, citing safety questions. ALLO stock collapsed more than 46% the following day. The news also sent CRSP stock down more than 4%.

Allogene uses several different technologies to create its "off-the-shelf" CAR-T. It uses a gene-editing method called TALENS and a non-harmful lentivirus to deliver the drug. Crispr's CTX110 relies on CRISPR technology for both the editing and drug delivery.

https://www.investors.com/news/technology/crsp-stock-will-it-and-its-gene-edited-cancer-drug-rise-after-allogene-fall/