CRISPR Therapeutics AG

CRISPR Therapeutics AG (NASDAQ: CRSP) is a Zug, Switzerland-based gene-editing company. It focuses on translating revolutionary CRISPR/Cas9 technology into transformative therapies. The Company has business offices in San Francisco, California and London, United Kingdom, as well as research and development operations based in Cambridge, Massachusetts.

The Company will present a poster at the AACR (American Association for Cancer Research) Annual Meeting, which is to be held from April 10 to 15 and May 17 to 21, 2021.

Investment Highlights – Buy at USD 121.99

• On the liquidity front, the current ratio was 18.21x in FY20, which was higher than the industry median. It has also maintained a current ratio above 16x for the last four years.
• The debt/equity ratio recorded by the Company in the past three years was considerably below the industry median. In FY20, the debt/equity ratio was nil.
• From a technical standpoint, 200-day SMA (USD116.75) and 14-Day RSI at 45.68 supports an upside potential.

Key Risks

• The certain potential risks can impact the business, such as emerging risk associated with Covid-19 pandemic as it can lead to unavailability of required staff and restricted access to key sites; changing healthcare structure of NHS; delays in regulatory approvals; rapid change in technology; and uncertainties regarding the creditworthiness of customers amid recessionary market conditions.
• The Growth of business is also dependent on external funding, which is difficult to get amid the weak internal cash generation.

Financial Highlights (for the fourth quarter and full-year ended 31 December 2020, as on 16 February 2021)

(Source: Company Website)

• Total collaboration revenue decreased to USD 0.2 million in the fourth quarter of 2020 and USD 0.5 million in the year ended 31 December 2020 as compared with the corresponding period of the last year, due to revenue recognized in connection with the sale of certain licenses under the CRSP’s collaboration with Vertex in FY19.
• R&D expenses increased to USD 82.4 million in Q4 FY20 and USD 266.9 million in FY20 as compared with the same period last year, driven by development activities.
• In FY20, the increase in general and administrative expenses was driven by headcount-related expense.
• On 31 December 2020, the cash, cash equivalents and marketable securities increased by USD 746.6 million to USD 1,690.3 million (31 December 2020: USD 943.8 million), with cash from financing activities of USD 1,016.1 million.

One Year Share Price Chart

 (Source: Refinitiv, Thomson Reuters)

Conclusion

In December 2020, CRSP and Vertex (its partner) collected positive data from 10 patients treated with the CTX001. The Company has entered 2021 with strong momentum and expects a new growth phase in the financial year 2021. "Further, in 2021, the Company will provide data updates on the three clinical allogeneic CAR-T programs, while it expects to complete enrolment in the CTX001 clinical trials. Overall, CRSP has shown a decent business model and robust liquidity, along with recent investments and a healthy innovation pipeline, which will boost performance further and generate value for shareholders. The stock made a 52-week low and high of USD 39.25 and USD 220.20, respectively.

Based on the factors discussed above, we have given a “BUY” recommendation on CRISPR Therapeutics AG at the closing price of USD 121.99 (as on 5 April 2021).

Hyliion Holdings Corp

Hyliion Holdings Corp (NYSE: HYLN) is a Texas, United States-based Company, which provides electrified powertrain solutions for commercial vehicles. The strategic combination between Hyliion Inc. and Tortoise Acquisition Corp. was completed in October 2020, and the combined entity was renamed as ‘Hyliion Holdings Corp’.

Investment Highlights – Buy at USD 10.75

• The Company achieved installation goals in 2020.
• The debt/equity ratio was considerably below the industry median. In FY20, the debt/equity ratio was nil.
• From a technical standpoint, 14-Day RSI (32.31) supports an upside potential.

Key Risks

• In the short-term, the Company’s financial performance is exposed to the COVID-19 pandemic, which is causing an unprecedented level of disruption.
• The adverse US federal income tax regimes and fluctuating exchange rates could also affect financial performance.

Financial Highlights (for the fourth quarter and full-year 2020, as on 23 February 2021)

(Source: Company Website)

• The company installed seven hybrid electric units in Q4 FY20 and 20 hybrid electric units in FY20. Therefore, it attained previously forecasted volumes for 2020.
• It also made developments toward commercialising its Hybrid and Hypertruck ERX solutions for the Class 8 truck market.
• The company did not generate any revenue in the given quarter. It made a loss of USD 20.5 million, compared to a loss of 4.09 million in Q4 FY19.
• At the year-end, the Company’s cash and cash equivalents of USD 389.71 million, an increase from the previous year.
• It has a robust capital position, which supports the advancement of commercialization strategy and scaling of the organization.

One Year Share Price Chart

(Source: Refinitiv, Thomson Reuters)

Conclusion

The Company has entered 2021 with strong financial and operational resources. Moreover, HYLN is positive on its prospects, after the strategic combination with Tortoise and is focused to position the company for long-term growth by capturing the market for the electrification of class 8 vehicles. Overall, the Board stays confident in HYLN's ability to emerge from such an unprecedented period. It also made several agreements, which will continue to see improvements in the Company's top and bottom line. The stock made a 52-week low and high of USD 9.83 and USD 58.66, respectively.

Based on the decent growth prospects, we have given a “Buy” recommendation on Hyliion Holdings Corp at the closing price of USD 10.75 (as on 5 April 2021).

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