Is it advisable to invest in these two underperformers during October?

In October 2024, investors considering purchasing CRISPR Therapeutics (CRSP) and Moderna (MRNA) biotech stocks should carefully weigh the long-term potential against their recent performance and current market conditions. Despite significant recent declines and ongoing market downturns, both companies boast promising pipelines that could drive future growth, but investing in this sector involves notable risks and volatility.

Moderna has witnessed a steep revenue drop since the peak of its COVID-19 vaccine sales, plummeting from $19 billion in 2022 to approximately $3.24 billion in 2024, leading to a stock decrease of around 74% over the past year[3]. However, Moderna's pipeline remains attractive, with late-stage clinical trials for cancer vaccines (e.g., mRNA-4157 for melanoma), vaccine candidates for influenza, RSV, and even HIV in early trials[2][3]. Analysts foresee a potential upside of about 35%, and Moderna's innovation across multiple vaccine targets could fuel long-term growth if successful[1][2]. Despite the current reduced revenues and pipeline risks, Moderna is considered a riskier but potentially rewarding bet for investors with a higher risk tolerance, particularly those with a long investment horizon[2][3].

CRISPR Therapeutics, on the other hand, currently shows wider losses and negative profitability metrics compared to Moderna, with a net margin of -1,229% and negative return on equity around -20%[1]. The company reported a loss per share of about -$1.29 in Q2 2025, which beat analyst estimates but reflects ongoing expenses including a significant $96 million payment related to Sirius Therapeutics[4][5]. Despite weaker profitability, CRISPR Therapeutics maintains strong liquidity ratios, suggesting a stable short-term financial position[5]. Its focus on gene-editing therapies places it in a potentially transformative biotech segment, though clinical and commercial success remains uncertain[1][4].

A comparison of the two companies is presented below:

| Aspect | Moderna (MRNA) | CRISPR Therapeutics (CRSP) | |----------------------------|---------------------------------------------------|---------------------------------------------------| | Recent Stock Performance | Down ~74% past year | Shares down ~24% in past years | | Revenue Trend | Fell sharply post-pandemic | Negative net margins, widening losses | | Pipeline | Vaccines for cancers, RSV, influenza, HIV | Gene editing therapies with ongoing trials | | Analyst Ratings | Mixed; some buys, mostly holds and sells | Mostly holds, few buy ratings | | Upside Potential | ~35% potential upside noted | Lower; more speculative due to losses | | Investment Risk | Higher risk due to revenue drop, but strong pipeline | High risk due to losses and development-stage products | | Suitability | Better for long-term investors who tolerate volatility | Suitable for risk-tolerant investors seeking high innovation exposure |

Given the market downturn and the profile of these stocks, investors should consider their risk tolerance, investment horizon, and belief in biotech innovation before buying. Moderna may offer greater upside potential if its pipeline succeeds, whereas CRISPR is a more speculative play with significant financial losses but potential for disruption in gene editing.

It's worth noting that Moderna, like BioNTech, was a winner during the corona pandemic due to its own vaccine[6]. Additionally, Moderna has a vaccine candidate for the flu and corona combined, and it recently received approval for an RSV vaccine called mRESVIA[2]. Moderna's collaboration with Merck & Co. puts it back in competition with BioNTech on cancer medication[7].

CRISPR Therapeutics made headlines with the approval of its first in-house therapy, Casgevy, which is used to treat sickle cell anaemia and other conditions[8]. However, Casgevy's impact on Moderna's stock performance has not been mentioned in this article. Casgevy is the first drug on the market to use CRISPR gene-editing technology, and experts believe it could generate revenues of over $1 billion[9].

For October 2024, neither stock is a clear "safe" buy, but both could be attractive for long-term investors willing to accept volatility and uncertainty in pursuit of biotech breakthroughs[1][2][3][4].