Shares of companies developing CRISPR-based therapies recovered moderately in pre-market trade Tuesday after falling hard on news that two new studies showed edited cells might cause cancer.
Biotech’s revolutionary gene-editing technology, also known as CRISPR-Cas9 has inspired a billion-dollar boom in biotech investment. It has been hailed as a breakthrough that could allow scientists to treat and possibly even cure genetic diseases.
However, in two studies published Monday in the journal Nature Medicine, researchers found editing cells' genomes with the technique might increase the risk of cancer. Those edited cells are those ones that are intended to treat diseases.
Shares of Intellia Therapeutics which fell over 10% on Monday recovered 0.8% to US$24.75 in pre-market trade.
In 2011, one of Intellia’s founders Jennifer Doudna, a professor of biochemistry and molecular biology at the University of California, Berkeley published a landmark paper introducing the world to CRISPER with former University of Vienna professor Emmanuelle Charpentier.
Meanwhile, shares of CRISPR Therapeutics AG (NASDAQ:CRSP) which had tanked more than 13% Monday, gained 1.6% in the pre-market Tuesday as the company came out with a strong rebuttal.
"We do not believe the theoretical risks described in these papers apply to CRISPR Therapeutics' programs," the company said in a statement to CNBC. "We apply CRISPR for gene disruption or high-efficiency gene correction, neither of which are the focus of these reports. In any case, we seek to evaluate all potential risks carefully and assess thoroughly as we advance our programs to the clinic."
Intellia Therapeutics said in a statement it has "observed no signs of this type of toxicity or cells transforming into cancer or tumors in Intellia's in vivo and ex vivo programs."
Lukas Dow, a cancer researcher who uses CRISPR at Weill Cornell Medicine, also told CNBC it's "definitely worth paying attention to these effects, but a long way from a deal-breaker."
Shares of Editas Medicine Inc. (NASDAQ:EDIT) which had dropped nearly 8% also lifted 1.3% to US$36.60 in pre-market trade.