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Was a Drop in CRISPR Firms’ Stock Warranted?

A study of off-target effects that sparked fear among investors of genome-editing companies receives methodological criticisms.

Written byClaire Asher
| 5 min read

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ISTOCK, VCHALUpdate (June 15): Yesterday (June 14) Nature Methods posted an editorial note on the paper in question: “Readers are alerted that the conclusions of this paper are subject to criticisms that are being considered by editors. A further editorial response will follow the resolution of these issues.” —Jef Akst

Last week, a study made headlines worldwide with its claim that the CRISPR-Cas9 genome-editing technique is more error prone than expected. In response, some investors chose to sell their shares in CRISPR-based biotech firms and stock values dipped by up to 15 percent for some companies.

But do the findings in the latest CRISPR report justify all this panic?

Scientists and companies developing CRISPR-based treatments say no, pointing to flaws in the evidence. Furthermore, the need to screen for off-target mutations and optimize techniques long before they are presented to regulatory bodies is something CRISPR insiders are well aware of, says Ritu Baral, a biotechnology stock analyst from the investment firm Cowen. “All of these things are happening behind the scenes, but non-specialists and retail ...

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