Recent market turbulence has certainly introduced some attractive buying opportunities. Yet, certain stocks like CRISPR Therapeutics and Merck have been trailing the market for over a year, making them stand out as appealing options regardless of 2025’s market shifts. Both companies are at the forefront of developing cutting-edge medical therapies, though they’ve faced a few challenges along the way.
Let’s take a closer look, beginning with CRISPR Therapeutics. This gene-editing pioneer hasn’t been performing as some might expect. Despite gaining approval for Casgevy, which addresses two rare blood disorders, its revenue stream from this treatment is still limited. The gene-editing process is not only costly but also requires significant time to administer. Additionally, CRISPR is sharing its profits from Casgevy with Vertex Pharmaceuticals, who is entitled to 60% of the earnings from their collaboration.
However, there’s a silver lining. Casgevy’s approval spans across the U.S., U.K., European Union, and several Middle Eastern countries, expanding its market far beyond what CRISPR could achieve alone. The partnership with Vertex has made this rapid, wide-ranging approval possible. With a price tag of $2.2 million per treatment and minimal competition, Casgevy offers a one-time cure for conditions that drastically shorten life expectancies and carry heavy emotional and financial burdens.
CRISPR Therapeutics is also advancing in other areas. Their work includes a potential cure for type 1 diabetes and CTX112, aimed at treating B-cell malignancies, which has been granted the Regenerative Medicine Advanced Therapy designation in the U.S. This significant status helps fast-track the development of drugs targeting serious health conditions showing promising early results.
The company’s knack for innovation holds promise for substantial clinical breakthroughs in the coming years. As sales from Casgevy begin to gain momentum, CRISPR Therapeutics is well-positioned to reward patient investors with strong returns after a steep 40% downturn over the past year.
Now, turning to Merck, their flagship product, Keytruda, stands out with numerous approvals across diverse cancer types worldwide. However, competition looms on the horizon. Last year, a new treatment, ivonescimab, outperformed Keytruda in Chinese clinical trials for a major segment of its market. With Keytruda’s patent set to expire in 2028, Merck faces potential market share erosion.
Despite these concerns, Merck posted a substantial revenue increase in the last year, reaching $64.2 billion, with Keytruda sales alone rising by 18% to $29.5 billion. This underscores the drug’s critical role in Merck’s portfolio. Anticipating the challenges, Merck is extending Keytruda’s patent through a new subcutaneous formulation to sustain sales well into the 2030s.
Moreover, Merck is not slowing down on innovation. They are collaborating with LaNova Medicines to develop LM-299, a treatment in ivonescimab’s therapeutic class, and actively pursuing advancements in weight management through a partnership with Hansoh Pharma. Winrevair, another promising addition addressing pulmonary arterial hypertension, is projected to become a billion-dollar revenue source. Merck’s robust pipeline further enhances its growth prospects.
Additionally, Merck offers a solid dividend yield exceeding 3.4%, with payouts having grown by 80% over the past decade. Despite facing legitimate challenges, Merck has a proven track record of overcoming similar hurdles throughout its history. Having dropped more than 20% over the last year, Merck remains a solid choice for long-term investors who value stability and growth potential.
