Since the trial has a relatively small sample size, the technology requires additional testing ahead. However, the early-stage results of single-dose CRIPSR gene therapy could be a potential game changer to effectively eliminate genetic diseases as the industry continues to grow.
WHO Raises Regulations, Market Poised to Grow as Earnings Season Approaches
Potential applications of gene editing technology are virtually endless, boosting interest in what was once considered a relatively niche market.
Recent developments are even more impressive when you consider just how new gene editing technology is. Advanced Science News writes
that CRISPR tools were developed no more than a decade ago, and the growth of the market over that period has been tremendous.
According to a report from Markets and Markets, the
global gene editing market is poised to rise from $5.1 billion in 2020 to $11.2 billion by 2025, a CAGR of 17%. Similarly, Market Screener writes that the potential of gene editing is still largely unrealized, noting that the
technology could spur a flurry of activity leading to the next biotech investment boom.
One of the key factors that will contribute to growth is an increase in government funding, but in order for that to occur, gene editing technology needs improved regulation and stricter guidelines to allow the public to effectively access the treatments.
The Wall Street Journal recently reported that the World Health Organization (WHO) has
announced new standards for gene editing technologies, aimed at avoiding potentially dangerous usage of the tools. The announcement noted the exceptional growth of gene editing since 2018, a sign that WHO realizes the potential of the technology, and that its continued growth requires additional regulation. Gene editing companies would be held by the same standards for trial development and testing, which could accelerate the timetable of which these technologies become widely available to the public.
Intellia Therapeutics, which successfully tested the aforementioned CRISPR infusion strategy, told CNBC they
expect their gene editing treatment to reach patients “very, very soon.”
Further, a handful of gene editing companies are getting ready to report earnings in August, some of which could receive a boost from the slew of positive results seen in the second quarter. Forbes notes that the
CRISPR therapy results from Intellia should give the overall gene editing sector a lift. Intellia’s results caused the stock to jump nearly 80%, and is now up roughly 170% year to date. However, other gene therapy stocks have
largely underperformed the market recently, but recent advancements are overall bullish news for the sector.
Gene editing tech still has a long road ahead before it becomes widely available to the public, but initial results of recent human trials have been nothing short of remarkable. The success of Intellia’s single dose CRISPR therapy has paved the way for additional gene editing companies to follow suit, proving the new infusion breakthrough has the potential to more effectively treat a wide variety of genetic diseases. The market is poised to grow further as the World Health Organization creates new standards for companies to follow, making it easier for patients to access CRISPR therapies in the future while biotech companies develop gene editing technology.
Investors can gain exposure to gene editing via the ARK Genomic Revolution ETF (ARKG).