Ark Invest CEO/CIO Cathie Wood is known for her ability to spot disruptive technologies and invest in them through her company’s family of exchange-traded funds, or ETFs. Ark Invest’s flagship ETF, Ark Innovation ETF (NYSEMKT: ARKK), focuses on companies that are at the forefront of innovation, with many being in the early stages of development.
This strategy has resulted in high levels of volatility and underperformance for the fund at times, but Wood is a long-term investor who thinks that investing in game-changing tech can deliver massive returns over time. One area where Wood has shown her unique foresight is in the emerging field of gene editing.
Image Source: Getty Images.
A major milestone for gene-editing
CRISPR Therapeutics (NASDAQ: CRSP) has been in Ark Invest’s portfolio since the second quarter of 2017, and the investment firm is now the biotech’s biggest shareholder, based on the latest 13F filings with the Securities and Exchange Commission. Wood’s willingness to hold shares of this novel biotech over a multiyear period is starting to look like a brilliant move.
This year, CRISPR Therapeutics achieved a significant operational milestone, with the first regulatory approvals for its gene therapy Casgevy, which it co-developed with Vertex Pharmaceuticals (NASDAQ: VRTX). Casgevy was approved in the U.K. for two rare blood disorders, severe sickle cell disease (SCD) and beta0thalassemia.
Shortly after, the U.S. Food and Drug Administration (FDA) also approved the therapy for severe SCD in patients 12 years or older. CRISPR and Vertex are expected to receive a decision from the FDA on Casgevy’s status for beta thalassemia next March. Most analysts believe that the therapy will score another approval in this setting, which could set it on the path toward blockbuster-level sales.
Why is CRISPR stock a buy in 2024?
Initial surveys among hematologists indicate that robust demand already exists for Casgevy. However, the therapy may still get off to a slow start due to its novelty and logistically burdensome manufacturing process. In other words, CRISPR’s first…
..
