CRISPR Therapeutics AG Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>CRISPR Therapeutics AG filed its Q1 2024 10-Q, detailing financial instruments and agreements with Vertex Pharmaceuticals.</b>

AI Summary

CRISPR Therapeutics AG (CRSP) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. CRISPR Therapeutics AG filed a 10-Q report for the period ending March 31, 2024. The filing includes data related to Vertex Pharmaceuticals Incorporated and its certain subsidiaries. Specific agreements mentioned include a Non-Exclusive License Agreement and an Amended and Restated Vertex Joint Development and Commercialization Agreement. Fair value measurements for recurring items are detailed for Level 1 and Level 2 inputs, including Certificates of Deposit, US Treasury Securities, and US Government Sponsored Enterprises Debt Securities. The report references various share types including Common Shares, Treasury Stock Common, and Unvested Restricted Common Shares.

Why It Matters

For investors and stakeholders tracking CRISPR Therapeutics AG, this filing contains several important signals. This filing provides an update on CRISPR Therapeutics' financial position and ongoing collaborations, particularly with Vertex Pharmaceuticals, which is crucial for understanding the company's operational and financial health. The detailed breakdown of financial instruments and fair value measurements offers insight into the company's investment strategy and risk management practices.

Risk Assessment

Risk Level: medium — CRISPR Therapeutics AG shows moderate risk based on this filing. The company's reliance on collaborations, such as those with Vertex Pharmaceuticals, introduces potential risks related to partnership performance and revenue sharing, as indicated by the multiple mentions of these agreements.

Analyst Insight

Monitor upcoming milestones and financial performance related to the Vertex Pharmaceuticals collaboration for potential upside or downside.

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q filing)
• 2024-05-08 — Filing Date (10-Q filing)
• 2023-03-31 — Prior Period End Date (Comparative financial data)
• 2023-12-31 — Prior Year End Date (Comparative financial data)

Key Players & Entities

• CRISPR Therapeutics AG (company) — Filer
• Vertex Pharmaceuticals Incorporated (company) — Collaboration partner
• Vertex Pharmaceuticals Incorporated And Its Certain Subsidiaries (company) — Collaboration partner
• Vertex Pharmaceuticals Inc (company) — Collaboration partner
• Jefferies LLC (company) — Sales agreement counterparty

FAQ

Risk Factors

• Fair Value Measurements [medium — financial]: The company's financial instruments are subject to fair value measurements, with disclosures for Level 1 and Level 2 inputs, including Certificates of Deposit, US Treasury Securities, and US Government Sponsored Enterprises Debt Securities.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides an update on the company's financial performance and condition during the quarter.)

Fair Value Measurements

The process of determining the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. (Indicates how the company values its financial assets and liabilities, impacting financial reporting.)

Certificates of Deposit

A savings account that holds a fixed amount of money for a fixed period of time. (Represents a type of short-term investment held by the company.)

US Treasury Securities

Debt securities issued by the United States Department of the Treasury. (Represents a significant portion of the company's investment portfolio, indicating a conservative investment strategy.)

Filing Documents

• crsp-20240331.htm (10-Q) — 1327KB
• crsp-ex31_1.htm (EX-31.1) — 11KB
• crsp-ex31_2.htm (EX-31.2) — 11KB
• crsp-ex32_1.htm (EX-32.1) — 10KB
• 0000950170-24-055719.txt (&nbsp;) — 6024KB
• crsp-20240331.xsd (EX-101.SCH) — 862KB
• crsp-20240331_htm.xml (XML) — 1109KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains "forward-looking statements" that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this Quarterly Report on Form 10-Q are forward-looking statements. These statements are often identified by the use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "potential," "will," "would" or the negative or plural of these words or similar expressions or variations, although not all forward-looking statements contain these identifying words. Forward-looking statements in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: the safety, efficacy and clinical progress of various clinical programs, including those for CASGEVY, CTX112, CTX131, CTX211, CTX310 and CTX320; plans and expectations for the commercialization of, and anticipated benefits of, CASGEVY, including the anticipated patient population eligible for CASGEVY in the United States and plans for patient access to CASGEVY, as well as timelines for and expectations regarding additional regulatory agency decisions regarding CASGEVY; the status of clinical trials, including development timelines and discussions with regulatory authorities related to product candidates under development by us and our collaborators; the initiation, timing, progress and results of our preclinical studies and clinical trials, including our ongoing clinical trials and any planned clinical trials, and our research and development programs, including delays or disruptions in clinical trials, non-clinical experiments and Investigational New Drug, or IND, application-enabling studies; the actual or potential benefits of regulatory designations, such as Orphan Drug, Fast Track and regenerative medicine advanced therapy, or RMAT, in the United States or such European equivalents, including

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (unaudited)

Item 1. Condensed Consolidated Financial Statements (unaudited) 2 Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 2 Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2024 and 2023 3 Condensed Consolidated Statements of Shareholders' Equity for the three months ended March 31, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 5 Notes to Condensed Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 25

Controls and Procedures

Item 4. Controls and Procedures 25

: OTHER INFORMATION

PART II: OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 26

Risk Factors

Item 1A. Risk Factors 26

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 26

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 26

Other Information

Item 5. Other Information 26

Exhibits

Item 6. Exhibits 27

—FINANCIA L INFORMATION

PART I—FINANCIA L INFORMATION

Financi al Statements

Item 1. Financi al Statements CRISPR Therapeutics AG Condensed Consolidat ed Balance Sheets (unaudited, in thousands, except share and per share data) As of March 31, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 707,427 $ 389,477 Marketable securities 1,400,698 1,304,215 Accounts receivable — 200,000 Prepaid expenses and other current assets 11,499 14,386 Total current assets 2,119,624 1,908,078 Property and equipment, net 147,253 151,945 Marketable securities, non-current — 1,973 Intangible assets, net 2 16 Restricted cash 11,516 11,591 Operating lease assets 151,254 153,993 Other non-current assets 9,368 1,975 Total assets $ 2,439,017 $ 2,229,571 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 16,463 $ 38,147 Accrued expenses 76,432 45,335 Deferred revenue, current 4,072 4,105 Accrued tax liabilities 1,207 438 Operating lease liabilities 15,992 15,625 Other current liabilities 4,824 5,141 Total current liabilities 118,990 108,791 Deferred revenue, non-current 13,541 14,012 Operating lease liabilities, net of current portion 218,935 223,007 Other non-current liabilities 3,615 958 Total liabilities 355,081 346,768 Commitments and contingencies, see Note 7 Shareholders' equity: Common shares, CHF 0.03 nominal value, 130,452,265 and 126,536,183 shares authorized at March 31, 2024 and December 31, 2023, respectively, 85,007,926 and 80,214,694 shares issued at March 31, 2024 and December 31, 2023, respectively, 84,837,610 and 80,044,378 shares outstanding at March 31, 2024 and December 31, 2023, respectively 2,658 2,497 Treasury shares, at cost, 170,316 shares at March 31, 2024 and at December 31, 2023 ( 62 ) ( 62 ) Additional paid-in capital 3,199,183 2,878,155 Accumulated deficit ( 1,116,291 ) ( 999,700 )

View Full Filing

View this 10-Q filing on SEC EDGAR