CRSP

CRISPR Therapeutics AG: Q3 2025 Financial Summary

Business Context and Reporting Period

This summary covers the quarterly period ended September 30, 2025, for CRISPR Therapeutics AG (CRSP), a leading gene-editing company. The Company operates as a single segment focused on discovering, developing, and commercializing therapies derived from CRISPR/Cas9 and SyNTase technologies. Key programs include the approved hemoglobinopathy therapy CASGEVY (in collaboration with Vertex), CAR T cell therapies (CTX112, CTX131), in vivo gene editing candidates (CTX310, CTX320), and Type 1 Diabetes programs (CTX211).

Key Financial Metrics

Note: Revenue consists primarily of grant revenue. The Company has no product sales revenue from wholly-owned products.

Material Changes vs. Prior Period

• Increased Collaboration Expense: Collaboration expense, net, surged to $57.1 million in Q3 2025 from $11.2 million in Q3 2024. This increase is primarily due to the expiration of the cost deferral limit under the Vertex Joint Development and Commercialization Agreement (JDCA) in 2024, which allowed the Company to defer costs exceeding $110.3 million. In 2025, no such deferral limit applied, resulting in the recognition of the Company's full share of CASGEVY operating expenses.
• Acquired In-Process R&D: The Company recorded a one-time expense of $96.3 million in the first half of 2025 related to the Sirius Therapeutics collaboration. This included a $25.0 million cash payment and $71.3 million in stock issuance costs. No such expense was recorded in the prior year.
• Reduced R&D Spend: Excluding the acquired in-process R&D charge, core Research and Development expenses decreased by $23.3 million in Q3 2025 compared to Q3 2024, driven by reduced headcount and lower external research costs.
• Capital Raising: The Company raised approximately $286.6 million in net proceeds through At-The-Market (ATM) offerings during the first nine months of 2025.

Outlook, Risks, and Unusual Items

• Outlook: Management expects existing cash, cash equivalents, and marketable securities ($1.94 billion) to fund operations for at least the next 24 months. The Company anticipates continued losses as it advances clinical programs.
• Government Shutdown Risk: A significant new risk factor was disclosed regarding the U.S. government shutdown beginning October 1, 2025. Furloughs at the FDA and SEC may delay regulatory reviews, IND submissions, and other critical activities, potentially impacting development timelines.
• Recent Clinical Data: On November 8, 2025, the Company announced positive Phase 1 data for CTX310 (targeting ANGPTL3), showing durable reductions in triglycerides and LDL cholesterol with a well-tolerated safety profile.
• Unusual Items: The $96.3 million Sirius acquisition expense is a non-recurring item impacting YTD 2025 results. Additionally, the timing of Vertex milestone payments significantly impacted cash flow comparisons between 2024 and 2025.

Key Facts for Investor Verification

• Liquidity Runway: Verify the sufficiency of the $1.94 billion cash position against the projected burn rate, considering the increased collaboration expenses with Vertex.
• Vertex Cost Deferrals: Confirm the status of the $221.8 million in deferred costs from 2022-2024 under the Vertex JDCA and the conditions required for their future payment.
• Sirius Collaboration Terms: Review the potential future milestone obligations (up to $387.5 million) and royalty commitments under the new Sirius Therapeutics agreement.
• Regulatory Impact: Monitor the duration of the U.S. government shutdown and its specific impact on FDA review timelines for CASGEVY and pipeline candidates.
• ATM Capacity: Note that $73.2 million remains available under the 2021 ATM and $588.3 million under the new 2025 ATM, providing flexibility for future capital raises.