The following discussion and analysis of our financial condition and results ofoperations should be read in conjunction with (i) our unaudited condensedconsolidated financial statements and related notes appearing elsewhere in thisQuarterly Report on Form 10-Q and (ii) our audited consolidated financialstatements and related notes and management's discussion and analysis offinancial condition and results of operations included in our Annual Report onForm 10-K for the year ended December 31, 2021 filed with the Securities andExchange Commission, or the SEC, on February 15, 2022. Some of the informationcontained in this discussion and analysis or set forth elsewhere in thisQuarterly Report on Form 10-Q, including information with respect to our plansand strategy for our business and impact and potential impacts on our business,includes forward-looking statements that involve risks and uncertainties. As aresult of many factors, including, without limitation, those factors set forthin the "Risk Factors" section of our Annual Report on Form 10-K for the yearended December 31, 2021 and the "Risk Factors" section of subsequent QuarterlyReports on Form 10-Q, our actual results or timing of certain events coulddiffer materially from the results or timing described in, or implied by, theseforward-looking statements.

Special Note About Coronavirus (COVID-19)

Overview

We and Vertex have also initiated two additional Phase 3 clinical trials ofCTX001 in pediatric patients with TDT and SCD.

Immuno-Oncology

In addition, we are developing our own portfolio of CAR-T cell productcandidates based on our gene-editing technology.

In the fourth quarter of 2021, we released updated clinical data from theongoing CARBON trial for 26 patients treated with CTX110 who had reached atleast 28 days of follow-up.

Regenerative Medicine

In Vivo

Partnerships

Financial Overview

Revenue Recognition

Research and Development Expenses

employee-related expenses, including salaries, benefits and equity-basedcompensation expense;

costs of services performed by third parties that conduct research anddevelopment and preclinical and clinical activities on our behalf;

costs of purchasing lab supplies and non-capital equipment used in ourpreclinical activities and in manufacturing preclinical and clinical studymaterials;

facility costs, including rent, depreciation and maintenance expenses; and

fees and other payments related to acquiring and maintaining licenses under ourthird-party licensing agreements.

successful completion of preclinical studies and IND-enabling studies;

successful enrollment in, and completion of, clinical trials;

receipt of marketing approvals from applicable regulatory authorities;

establishing commercial manufacturing capabilities or making arrangements withthird-party manufacturers;

obtaining and maintaining patent and trade secret protection and non-patentexclusivity;

launching commercial sales of the product, if and when approved, whether aloneor in collaboration with others;

acceptance of the product, if and when approved, by patients, the medicalcommunity and third-party payors;

effectively competing with other therapies and treatment options;

a continued acceptable safety profile following approval;

enforcing and defending intellectual property and proprietary rights and claims;and

achieving desirable medicinal properties for the intended indications.

Except for activities we perform in connection with our collaborations withVertex and ViaCyte, as well as in connection with the Bayer Transaction, we donot track research and development costs on a program-by-program basis.

General and Administrative Expenses

Collaboration Expense, Net

Collaboration expense, net, consists of collaboration costs under ourcollaboration with Vertex.

Other Income (Expense), Net

Other income (expense), net consists primarily of interest income earned oninvestments.

Results of Operations

Comparison of three months ended March 31, 2022 and 2021 (in thousands):

3,504

Research and Development Expenses

$8.8 million of increased facility-related expenses, primarily related to ournew U.S. research and development headquarters;

$3.7 million of increased license fees; and

$2.9 million of increased consulting and professional services costs.

General and Administrative Expenses

$2.2 million of increased employee compensation, primarily due to increasedstock-based compensation expense of $1.9 million; and

$1.3 million of increased consulting and professional services costs.

Collaboration Expense, Net

$6.5 million of increased pre-commercial expenses associated with ourcollaboration with Vertex;

$5.3 million of increased manufacturing costs; offset by

$1.3 million of decreased other costs.

Other Income, Net

Liquidity and Capital Resources

Outlook

Cash Flows

The following table provides information regarding our cash flows for each ofthe periods below (in thousands):

Period to Period

Net cash used in operating activities $ (135,239 ) $ (100,663 ) $ (34,576 )Net cash used in investing activities

Investing Activities

Financing Activities

Critical Accounting Policies and Significant Judgments and Estimates

Recent Accounting Pronouncements

Edgar Online, source Glimpses

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CRISPR THERAPEUTICS AG Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q) - Marketscreener.com

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