Happy Sunday Everyone 👋,
Action packed day with Wimbledon, Euro 2020 & Richard Branson joining the 60 mile high club…
Welcome to the +701 subscribers who have joined this week. If you’re reading this but haven’t subscribed, join our community of +33,290 smart, fun & edgy investors 👇
What if I told you that you could have Tom Brady’s touch-down throwing arm and (or) Gisele Bündchen’s supermodel legs… WITHOUT being one of their children?
Welcome to the world of gene editing.
Recently, there was a massive breakthrough at the forefront of gene-editing technology that sent quite a few related stocks up 20-65% (and put us one step closer to designer babies).
Superstar fund manager Cathie Woods has also pointed to this area as the next forefront of FANG-calibre names.
But what is this technology all about, what does the market look like, and how far is too far?
This week, in <5 minutes, we’ll cover gene editing:
Gene Editing 👉 A brief history, B.C. “Before CRISPR”
CRISPR 👉 Innovative technology
The Recent Breakthrough 👉 Intellia therapeutics
CRISPR players in the space 👉 Who is doing what
How GRIT’s Playing it 👉 My horse in the race
Let’s get started!
1. Gene Editing 👉 A Brief History, B.C. “Before CRISPR”
In the scientific community, a breakthrough is commonly the aggregate work of many brilliant minds working on a piece of the puzzle that comes together in the end.
The term “standing on the shoulder of giants” comes to mind.
Certain iterations of gene editing have been around since the discovery of the double helix in 1953 by James Watson and Francis Crick. This was one of the most significant discoveries that defined genetics as we know it today.
For the complete history of DNA which I found was a really cool timing ladder, you can read more here.
But we’re going to fast forward to 1972 to the creation of recombinant DNA (rDNA). rDNA had been created through the combination of elements of DNA from different organisms.
In theory, rDNA made it possible to take a virus like HIV, delete the harmful genes, and splice in a healthy gene [delete: for] to a human cell. You could then release copies of this recombinant (improved) virus in the cells of a patient with the diseased copy of this gene.
The virus would then naturally insert the new gene into the cells’ DNA, where it could compensate for the harmful diseased twin gene and alleviate the disease’s symptoms.
Kind of like how you can touch up pictures on Photoshop to remove redeyes. Except instead of pictures it’s humans, and instead of removing redeyes, it’s saving lives.
This is the basis for GENE THERAPY – turbocharging cells with healthy genes to make up for sick ones.
The 1990s were mostly a period of discovery in which the Human Genome Project succeeded in mapping the human genome with more than 20 thousand genes identified and documented.
This was very important because this global coordination effort essentially turned the Human Genome into data.
What’s exciting is how incredibly cheap the technology is becoming:
DNA sequencing could become so cheap it becomes part of our annual physical!
When you reduce the amounts of unknowns in an equation and increase your sample size, you can make more accurate assessments and improvements. The increased mapping of the genome helped us understand what else is out there.
Although the early principles of CRISPR were discovered in 1993, it wasn’t until 2012 that Jennifer Doudna & Emmanuelle Charpentier pioneered the technology.
UNDER THE RADAR…
Novamind does psychedelics, but not the way your deadbeat cousin does them! They’re an established psychedelics company that’s been at the forefront of mental health innovation since 2016. This year, they’ll conduct 65K clinic visits. See what they’re all about here!
Why is BILLIONAIRE mining mogul Richard Warke steadily increasing his position in Solaris Resources to the tune of $122 MILLION DOLLARS and counting? Maybe because they’ve made a MAJOR discovery at the beginning of a NEW COPPER supercycle!
North America’s leading cannabis distribution solution just got THAT much better. After helping lead Supreme Cannabis, Aphria (now Tilray), and Southern Glazers, new CEO Joel Toguri is ready to take Humble & Fume to the next level! Invest now!
JPMorgan thinks proof of stake will be a $40 billion industry by 2025. Want exposure? iMining is the place for everything crypto! They currently provide staking services. Soon, through their intent to acquire BitBit Financial, you’ll be able to trade, stake + lend crypto all on the same platform.
Where is the best place to produce gold? The place it’s already happened! Omai Gold Mines produced MILLIONS of ounces while the gold price was less than US$350/oz. I wonder what happens when the gold price is +$1778/oz ; )
*This is sponsored advertising content
2. CRISPR 👉 Breakthrough Technology
CRISPR technology has been generating a lot of buzz recently and stands for Clustered Regularly Interspaced Short Palindromic Repeats.
Simply put – CRISPR is a technology that can be used to edit genes. The idea behind it is to find a specific bit of DNA inside a cell, then usually to ALTER that piece of DNA.
Think: a cheat code for human DNA.
Alternatively, CRISPR has also been adapted to do other things such as turning genes on or off without altering their sequence.
There were ways to edit genomes of plants and animals before this, but it took years and cost hundreds of thousands of dollars. What CRISPR did was make this cheap and easy – a much more viable solution.
In a way, CRISPR has become the Swiss Army Knife of gene modification: it’s versatile and it literally cuts DNA.
Any time you make the input nodes in a data set more accessible and easier to input, the decisions you can make from the overall dataset improve.
Where it gets interesting is the applications of this technology.
The ideal and immediate use for CRISPR technology is to treat diseases by removing harmful components of the DNA strand as the virus is invading.
The DNA that is chopped off by this bacterial adaptive immune system is then “saved” in memory for fighting future infections.
A problem with this method is that it hasn’t been very precise until recently.
Examples of where this technology can be used are cancer treatments, tackling obesity, or even creating hornless cows. But where it becomes controversial is when you start messing with evolution and creating “gene drives” of preferential attributes.
You’ve probably heard about this in the form of “designer babies” which I alluded to above. So, what does that mean exactly?
Want your kid to have a better shot of going pro? Just ensure they’ll grow to be well over 6’0”!
Have dreams of raising the next Unicorn start-up founder? Boost IQ by 20 points to give them an extra edge!
A scary thought, but thankfully, not something we have to worry about quite yet!
3. The Recent Breakthrough 👉 Intellia Therapeutics
On June 26, 2021, Intellia released interim data from a Phase 1 trial of a CRISPR candidate showing the ability to genetically edit cells inside a liver.
CRISPR was previously restricted only to editing cells outside of the body or in the eye.
This time around, researchers injected a CRISPR drug into the blood of people born with transthyretin amyloidosis, a destructive disease that causes fatal nerve and heart disease.
The results showed that the editing technology was able to nearly shut off production of the toxic protein generated by their livers by knocking the gene's activity.
Below is the one-year performance of Intellia Therapeutics (NTLA-US) as a percentage of comps in the space:
Now, let’s check in with our Outrageous Chartered FinMEME Analyst Dr. Patel and see what he thinks about gene editing?
4. CRISPR players in the space 👉 Who is doing what
Beam Therapeutics (Ticker:BEAM)
Biotech company that is putting together a platform for precision genetic medicines. Beam has proprietary base editing technology, which potentially enables an entirely new class of precision genetic medicines that target a single base in the genome without making a double-stranded break in the DNA. Essentially a different way of going about it.
Editas Medicine (Ticker:EDIT)
Editas is one of a handful of companies that developed CRISPR technology. For now, it concentrates efforts on three major therapeutic areas: Ocular diseases, Sickle (cell disease and beta-thalassemia), and cancer where it continues to develop both autologous and allogeneic engineered cell medicines for the treatment of solid tumors and blood cancers.
Intellia Therapeutics (Ticker:NTLA)
This company finally made the breakthrough I mentioned above. If you want to go with momentum and inertia, buying after the initial pop fades a bit is usually a good strategy. A case in point on this one is Moderna, it has run steadily even after the initial jump.
This company combines deep scientific, technical, and clinical development experience and proprietary innovations in genome editing and delivery technologies.
They have a strong head start on their IP portfolio, which puts them in a position to unlock broad therapeutic applications of the CRISPR technology and create new classes of therapeutic products.
CRISPR Therapeutics (Ticker:CRSP)
This company hit the name and ticker jackpot, and rightfully so. One of their scientific founders is Dr. Emmanuelle Charpentier, who you’ll recognize from above as one of the scientists who discovered this breakthrough. They believe using CRISPR may enable an entirely new class of highly active and potentially curative therapies for patients for whom current biopharmaceutical approaches have had limited success.
5. How GRIT’s Playing it 👉 My horse in the race
For me, biotech is a HUGE “asymmetric bet” for the next decade. BUT, telling the difference between each company can be tough, especially in the Biotech space. Which is why I would recommend leaning on a biotech expert, or going with the most established players in the space.
Biotech stocks are typically binary: hit or miss. But with CRISPR technology, I still believe it is in early stages of development and each of these players has an opportunity to “stand on the shoulders” of their peers as the science is incrementally improved.
The name that I hold in my portfolio is CRISPR, because I like the track record of having one of the breakthrough scientists on the team. Plus they have plenty of cash on hand (~$1.7B) with a burn of $200-300MM/year giving them at least 7-8 years of runway to commercialization.
Any time a scientific breakthrough happens you have to pay attention. While I am no expert on the specifics of the technology, I understand very well the implications of the technology.
P.S Approximately 90% of #Bitcoin mining capacity in China is now closed. The price has barely moved. Remember when they said this would destroy Bitcoin? I think they accidentally made it stronger ; )
Until next time. Always Yours. Incessantly Chasing ROI,
-Genevieve Roch-Decter, CFA
MAGIC PLANTS, ROCKS & BLOCKS…
What’s better than psychedelics? Environmentally friendly psychedelics. Psybio Therapeutics is developing a portfolio of pharmaceutical candidates using BIO-SYNTHESIS which offers advantages in space, consistency, stability, production and makes them GREENER. The best part? Not only are they already a top-performing stock, but they soon plan on filing their first IND with the FDA and also plan to list on the NASDAQ!
Blockchain Foundry has been on a tear! Through various partnerships, they’re developing white-label NFT products for sports & entertainment, building an extended reality NFT marketplace, AND a crypto & NFT gifting platform! Get blockchain exposure without the steep price tag.
Blackrock is buying every single family house they can find, paying 20-50% above asking and outbidding normal home buyers. Why is the largest asset manager in the world doing this? Predictable cash flow + inflation-protection. How can you get in? Greenbriar Capital, one of only a handful of land developers that are publicly traded!
An investing platform like no other. On Public.com, you can buy stocks with any amount of money, see what others are investing in, and be part of a community of investors. Get up to $50 in free slice of stock when you deposit as little as $1.
*This is sponsored advertising content
We think you should share GRIT. Not only is it a smart thing to do for your friends, it’s also the smartest way to get showered in free GRIT swag.
Click HERE, share and soon you’ll be sporting these!
*The numbers below represent how many referrals to GRIT you need to make to receive this ICONIC FREE MERCH!
What else we Grittin’ On?
YOLO. How to get rich in the stock market? Join Congress. Check out Nancy Pelosi’s trades. Looks more like a Robinhood HODLer and less like a member of Congress. YOLO indeed, Madame Speaker!
Let’s get HIGH. The S&P 500 is at its highest valuation on record (based on EV /forecast sales (NTM)), exceeding that of the tech bubble EV / sales multiple of $SPX is up more than 100% over the past decade. This time its different.
Oversold. The U.S 10 year yield is the most oversold since the corona panic levels. A few weeks ago the 200 day moving looked impossible, but here we are! The trillion dollar question is who killed the recovery trade?
Disclaimer: Grit Capital Corporation is a publisher of financial information, not an investment advisor. We rely upon the “publisher’s exclusion” from the definition of investment advisor under Section 202(a)(11)(D) of the Investment Advisors Act of 1940 and corresponding state securities laws. We also rely on the exemption from registration under Section 34 of the Securities Act (Ontario) and its equivalents in other Canadian jurisdictions.
We do not provide personalized or individualized investment advice or advice that is tailored to the needs of any particular recipient. Any information provided as part of the services is impersonal and not specific to any person’s investment needs. You acknowledge and agree that no content published or otherwise provided as part of any service constitutes a personalized recommendation or advice regarding the suitability of, or advisability of investing in, purchasing or selling any particular investment, security, portfolio, commodity, transaction or investment strategy. To the extent that any of the content may be deemed to be investment advice or recommendations in connection with a particular security, such information is impersonal and not tailored to the investment needs of any specific person.
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Grit Capital Corporation does not provide individual investment counseling, act as an advisor, or individually advocate the purchase or sale of any security or investment. You assume the entire cost and risk of any investing or trading you choose to undertake. You are solely responsible for making your own investment decisions.
Grit Capital Corporation is NOT a registered investment advisor or dealer. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments discussed in this publication should only be made/considered after consulting with your investment advisor and only after reviewing the prospectus, other offering materials or financial statements of the issuer in question. Reading and using this website, newsletter or any content created by Grit Capital.