2 Healthcare Stocks to Buy Ahead of the New Year

CRISPR Therapeutics could see a material rerating in 2026 as commercial scale-up of Casgevy (expanded third‑party coverage and authorized treatment centers) and potential label expansion into 5–11 year olds coincide with expected readouts from pipeline programs such as SRSD107 (phase 2 anticoagulant with durable efficacy and potential twice‑a‑year dosing) and CTX112 (oncology/autoimmune), although clinical and regulatory setbacks remain a key risk. Vertex, while underperforming this year, continues to generate strong cash flow from its cystic fibrosis franchise (Q3 revenue $3.08 billion, EPS $4.20) and is steadily diversifying with new launches (Journavx), a planned regulatory submission for zimislecel next year, and phase 3 programs for inaxaplin and povetacicept targeting kidney diseases—supporting a lower‑risk, steady growth thesis. Together, the stocks present a contrast of higher upside/higher risk (CRISPR) versus slower, cash‑generating diversification (Vertex) that investors should weigh against clinical and commercialization execution risks.

Analysis

CRISPR Therapeutics is positioned for potential upside in 2026 driven by commercial scale-up of Casgevy and multiple pipeline readouts; management expects material growth after two years of expanding third-party coverage and establishing authorized treatment centers, and is pursuing a pediatric label expansion to ages 5–11 from the current 12+ population. Casgevy has not yet generated significant revenue because of complex administration, but SRSD107 (a Sirius-partnered anticoagulant) shows phase 1 durable efficacy up to six months and is in phase 2, and CTX112 (oncology/autoimmune) could produce readouts by year-end and into 2026 — each representing binary upside but also regulatory and clinical risk. Vertex offers a lower-volatility profile: Q3 revenue was $3.08 billion (+11% year over year) and GAAP EPS was $4.20 (+4.7% year over year), supported by its cystic fibrosis franchise, while diversification efforts include Journavx commercialization, a planned zimislecel regulatory submission next year, and phase 3 programs for inaxaplin and povetacicept. Market signals in the article are moderately positive overall (sentiment 0.45) with stronger bullishness on CRSP (0.8) than VRTX (0.5); investors should balance CRISPR's higher binary upside against Vertex's steady cash generation and staged de‑risking events.

Key Decisions for Investors

• Consider a limited, speculative position in CRSP to capture 2026 catalysts but size exposure conservatively and scale in on positive clinical/commercial milestones
• Monitor Casgevy commercial KPIs (third‑party coverage expansion, authorized center rollout, early revenue inflection) and SRSD107/CTX112 readouts; add materially on clear efficacy/safety wins and reduce on setbacks
• Maintain or modestly add to VRTX as a core holding given Q3 revenue of $3.08 billion and EPS of $4.20 while treating upcoming zimislecel submissions and phase 3 readouts as de‑risking events
• Use milestone‑based re‑evaluation and consider hedges or stop limits for CRSP given binary clinical/regulatory risk, and reallocate toward Vertex if CRISPR commercialization or trial progress disappoints