What's the Next Big Thing After GLP-1 Drugs? CRISPR Therapeutics May Have the Answer.

Investors are always on the lookout for the next revolutionary technology or product. In recent times, this has proven to be GLP-1 drugs, treatments that have helped patients worldwide safely and rather quickly lose weight. Eli Lilly and Novo Nordisk, and their shareholders, have been the biggest winners here, as these companies developed the blockbuster drugs that have become household names -- Lilly sells Mounjaro and Zepbound, while Novo sells Ozempic and Wegovy.

The growth opportunity here may be far from over, with analysts forecasting that this market will reach almost $100 billion by the end of the decade. But, as I said, investors are eager to get in on the next major development and benefit from the early burst of growth. What's the next big thing after GLP-1 drugs? CRISPR Therapeutics (NASDAQ: CRSP) may have the answer.

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CRISPR Therapeutics' major milestone

First, a quick introduction to this exciting biotech company. CRISPR Therapeutics reached a major milestone a couple of years ago when it won approval for its very first product, Casgevy for blood disorders. CRISPR Therapeutics, in partnership with Vertex Pharmaceuticals, developed this product based on its CRISPR gene editing technology -- and it became the world's first CRISPR gene editing treatment to gain regulatory approval. The biotech player's technology involves "editing" the genes responsible for disease.

Launching such a product isn't as fast as launching a pill or injection. For example, Casgevy requires a cell collection process, then cells must be edited, and finally, they must be returned to the patient -- this months-long process means revenue growth also takes time. But Casgevy is progressively building momentum, with 147 people initiating the treatment process last year, and Casgevy generated $116 million in revenue last year -- so we may be optimistic about this treatment's growth over the long term.

Now, let's consider how CRISPR Therapeutics may be on track to treat the next big growth area in healthcare. And this area is autoimmune disease. The global autoimmune disease treatment market may reach $223 billion by 2034, according to iHealthcare Analyst. Autoimmune diseases involve dysfunction in the immune system -- as a result, this system normally meant to protect the body actually sees healthy cells as dangerous ones, and therefore, it attacks them.

A vast opportunity

The opportunity here is vast, given the wide range of autoimmune diseases and the scope of current treatments. Traditionally, immunosuppressant drugs have been used to reduce the immune response -- but they often come with side effects.

CRISPR Therapeutics, however, has a revolutionary approach, using its gene editing technology to manufacture CAR T cell therapy (chimeric antigen receptor T cell therapy) from healthy donors. The idea is that these CAR T cells will eliminate the unhealthy B cells that are attacking the body.

The company is studying zugocaptagene geleucel (zugo-cel), formerly known as CTX112, across several autoimmune indications as well as cancers that form in the bone marrow or immune system. The candidate is involved in phase 1 studies in systemic lupus erythematosus (SLE), systemic sclerosis, and inflammatory myositis.

In December, the company offered an early glimpse into the treatment of four patients who were given 100 million cells. After at least 28 days post-infusion, B-cell depletion was noted and maintained, and all patients showed significant improvement. CRISPR Therapeutics aims to offer further updates from the program in the second half of the year. The company also initiated a second phase 1 trial in immune thrombocytopenia purpura and warm autoimmune hemolytic anemia.

The potential risks

Of course, it's important to remember that the biotech is in the early stages of clinical studies and faces the risk of setbacks or, in the worst case, candidate failure. But this is the same risk faced by all biotech and pharma companies along the drug development path. Investors seeking to minimize this risk may opt for biotech companies that already have a product or products on the market -- CRISPR Therapeutics, thanks to Casgevy, now finds itself in this situation.

So, could CRISPR Therapeutics' zugo-cel become the next success of GLP-1 proportions? Considering the sustained demand for weight loss drugs and even other paths to weight loss, such as special diets and exercise trends, the weight loss drug opportunity may be difficult to beat.

That said, the autoimmune disease market is enormous, and if zugo-cel is able to treat several of these illnesses, it could become a blockbuster down the road. So even if a major autoimmune disease therapy doesn't surpass the weight loss opportunity, it still could become one of the next major growth themes -- and one that could deliver a win to CRISPR Therapeutics and its shareholders.

Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.