CRISPR Therapeutics' Net Loss Widens to $451M Amid R&D Shifts

TL;DR

**CRSP is burning cash faster than ever, but it's a necessary evil to fund their ambitious gene-editing pipeline; hold for long-term potential, but expect continued losses.**

AI Summary

CRISPR Therapeutics AG reported a significant increase in net loss for the nine months ended September 30, 2025, reaching $450.986 million, up from $328.941 million in the same period of 2024, representing a 37.1% increase. This was primarily driven by a substantial rise in collaboration expense, net, which surged to $159.777 million for the nine months ended September 30, 2025, from $110.250 million in the prior year, and the recognition of $96.253 million in acquired in-process research and development expenses in 2025. Research and development expenses, however, decreased to $201.280 million from $238.498 million year-over-year. The company's total revenue, primarily from grants, remained minimal at $2.646 million for the nine months ended September 30, 2025. Despite the increased losses, CRISPR Therapeutics maintained a strong liquidity position with $286.497 million in cash and cash equivalents and $1.629 billion in marketable securities as of September 30, 2025. The company also saw an increase in common shares outstanding to 93,872,794 as of September 30, 2025, from 85,741,981 at December 31, 2024, reflecting recent equity issuances that provided $286.599 million in proceeds for the nine months ended September 30, 2025.

Why It Matters

CRISPR Therapeutics' widening net loss, driven by increased collaboration expenses and significant acquired in-process R&D, signals intensified investment in its gene-editing pipeline, particularly around CASGEVY and other candidates like CTX112 and CTX131. For investors, this indicates a long-term growth strategy focused on clinical development and potential commercialization, but also highlights continued cash burn. Employees and customers could see this as a commitment to advancing innovative therapies, potentially leading to new treatments for severe diseases. In the competitive landscape of gene therapy, these investments are crucial for CRISPR to maintain its edge against rivals and capitalize on its foundational CRISPR/Cas9 technology, but successful clinical outcomes are paramount to justify the escalating costs and secure market position.

Risk Assessment

Risk Level: high — The company reported a net loss of $450.986 million for the nine months ended September 30, 2025, a significant increase from $328.941 million in the prior year. This substantial and growing loss, coupled with minimal revenue of $2.646 million, indicates a high burn rate and reliance on existing capital or future financing to sustain operations and R&D, which is inherently risky for a clinical-stage biotech.

Analyst Insight

Investors should closely monitor CRISPR Therapeutics' clinical trial progress for CASGEVY and other pipeline candidates, as well as future collaboration agreements. Given the high cash burn and increasing net loss, evaluate the company's ability to translate R&D investments into tangible product approvals and revenue streams before increasing exposure.

Key Numbers

• $450.986M — Net Loss (Increased from $328.941M in 2024 for the nine months ended September 30, 2025)
• $159.777M — Collaboration expense, net (Increased from $110.250M in 2024 for the nine months ended September 30, 2025)
• $96.253M — Acquired in-process research and development (New expense recognized for the nine months ended September 30, 2025)
• $201.280M — Research and development expenses (Decreased from $238.498M in 2024 for the nine months ended September 30, 2025)
• $2.646M — Total revenue (Primarily grant revenue for the nine months ended September 30, 2025)
• $286.497M — Cash and cash equivalents (As of September 30, 2025)
• $1.629B — Marketable securities (As of September 30, 2025)
• 93,872,794 — Common shares outstanding (As of September 30, 2025, up from 85,741,981 at December 31, 2024)
• $286.599M — Proceeds from issuance of common shares (For the nine months ended September 30, 2025)
• $1.17 — Net loss per common share - basic (For the three months ended September 30, 2025, compared to $1.01 in 2024)

Key Players & Entities

• CRISPR Therapeutics AG (company) — registrant
• Vertex Pharmaceuticals Incorporated (company) — manufacturer and exclusive license holder of CASGEVY
• CASGEVY (product) — gene therapy product
• CTX112 (product) — clinical program candidate
• CTX131 (product) — clinical program candidate
• SEC (regulator) — Securities and Exchange Commission
• Nasdaq Global Market (market) — exchange where common shares are registered
• September 30, 2025 (date) — end of the reporting period
• December 31, 2024 (date) — previous fiscal year-end
• CHF 0.03 (dollar_amount) — nominal value of common shares

FAQ

Filing Documents

• crsp-20250930.htm (10-Q) — 2620KB
• crsp-ex31_1.htm (EX-31.1) — 13KB
• crsp-ex31_2.htm (EX-31.2) — 13KB
• crsp-ex32_1.htm (EX-32.1) — 13KB
• 0001193125-25-273337.txt ( ) — 9584KB
• crsp-20250930.xsd (EX-101.SCH) — 992KB
• crsp-20250930_htm.xml (XML) — 1995KB

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: our strategic plans to develop and, if approved, subsequently commercialize any product candidates we may develop, including plans and expectations for the commercialization of, and anticipated benefits of, CASGEVY, as well as plans for patient access to CASGEVY; the safety, efficacy and clinical progress of various clinical programs, including those for CASGEVY, CTX112, CTX131, CTX211, CTX310, CTX320 and SRSD107; the status of clinical trials, including development timelines and discussions with regulatory authorities related to product candidates under development by us and us and our collaborators; the results of preclinical studies and clinical trials, including ongoing clinical trials and any planned clinical trials, and research and development programs; 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; our ability to advance product candidates into, and successfully complete, clinical trials; the size and growth potential of the markets for our product candidates and our ability to serve those markets, including our estimates regarding the add

: 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 September 30, 2025 and December 31, 2024 2 Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2025 and 2024 3 Condensed Consolidated Statements of Shareholders' Equity for the three and nine months ended September 30, 2025 and 2024 4 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 6 Notes to Condensed Consolidated Financial Statements 7

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 20

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 30

Controls and Procedures

Item 4. Controls and Procedures 30

: OTHER INFORMATION

PART II: OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 32

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 32

Other Information

Item 5. Other Information 32

Exhibits

Item 6. Exhibits 33

SIGNATURES

SIGNATURES 34 Table of Contents

—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 September 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 286,497 $ 298,257 Marketable securities 1,629,213 1,605,569 Accounts receivable — 25,000 Prepaid expenses and other current assets 13,382 8,306 Total current assets 1,929,092 1,937,132 Property and equipment, net 120,831 134,093 Marketable securities, non-current 28,412 — Restricted cash 8,006 11,519 Operating lease assets 134,659 143,461 Other non-current assets 24,308 15,829 Total assets $ 2,245,308 $ 2,242,034 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 11,798 $ 14,709 Accrued expenses 84,182 41,072 Deferred revenue, current 1,295 3,845 Accrued tax liabilities 3,426 451 Operating lease liabilities 18,256 17,288 Other current liabilities — 10,417 Total current liabilities 118,957 87,782 Deferred revenue, non-current 12,323 12,323 Operating lease liabilities, net of current portion 192,768 206,405 Other non-current liabilities 5,278 3,444 Total liabilities 329,326 309,954 Commitments and contingencies, see Note 7 Shareholders' equity: Common shares, CHF 0.03 nominal value, 132,477,166 shares authorized at September 30, 2025 and at December 31, 2024, 93,998,110 and 85,912,297 shares issued at September 30, 2025 and December 31, 2024, respectively, 93,872,794 and 85,741,981 shares outstanding at September 30, 2025 and December 31, 2024, respectively 3,013 2,698 Treasury shares, at cost, 125,316 and 170,316 shares at September 30, 2025 and December 31, 2024, respectively ( 60 ) ( 62 ) Additional paid-in capital 3,724,981 3,293,556 Accumulated deficit ( 1,816,938 ) ( 1,365,952 ) Accumulated oth

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