Cathie Wood’s ARK Invest is doubling down on biotechnology, with a series of trades highlighting the fund manager’s conviction in gene editing, precision medicine, and genomic sequencing. The moves mark a notable pivot as ARK trims exposure to high-growth tech and consumer names like Roku and DraftKings while increasing stakes in companies pursuing disruptive advances in healthcare.
Gene Editing Takes Center Stage
Over the past week, ARK’s flagship Innovation ETF (ARKK) has accumulated large positions in CRISPR Therapeutics (Nasdaq: CRSP) and Intellia Therapeutics (Nasdaq: NTLA). On August 26, ARKK purchased 165,874 shares of CRISPR worth nearly $9 million, following a $10.3 million buy the previous day. The fund also added 191,705 shares of Intellia for $2.2 million, continuing a buying streak that included 359,000 shares acquired earlier in the week.
Intellia, which has seen its share price fall 57% over the past year, remains a high-risk bet. The company has streamlined operations, cutting programs and reducing its workforce to conserve capital. Yet it reported stronger Q2 results, narrowing losses and extending its cash runway through 2027. Its lead hereditary angioedema program is expected to reach a Biologics License Application filing next year. Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and a Street-high price target suggesting significant upside.
A Bold Bet on Genomic Newborn Screening
ARK also took a major new position in GeneDx (Nasdaq: WGS), investing roughly $21.5 million across 170,471 shares on August 18. The company is developing genome-wide sequencing tools to identify genetic conditions in newborns before symptoms appear. In neonatal intensive care units, its test can deliver actionable results within days, potentially transforming care for infants with rare diseases.
The opportunity is substantial. GeneDx’s market potential is tied to every annual U.S. birth, roughly 3.6 to 3.7 million babies, and globally to more than 130 million. The company’s recent Q2 report reinforced the bullish case, with revenue of $102.7 million, EPS of $0.50, and adjusted gross margins exceeding 70%. The stock has surged over 60% year-to-date and more than 280% last year, with analysts lifting price targets in response.
Strategic Rebalancing Across Portfolios
While ramping up biotech exposure, ARK has been reducing positions in non-healthcare growth stocks. Roku, which has gained 33% in the past three months, saw $6.6 million worth of ARK shares sold this week. DraftKings, up 34% over the same period, faced $6 million in sales. Smaller trims included Coinbase and Shopify across ARK’s Next Generation Internet ETF.
The rebalancing underscores Wood’s high-conviction style, leaning into volatility in sectors she believes can deliver exponential returns. “We know disruptive innovation is controversial, so we know there’ll be another side to a move like that,” Wood said in a 2021 interview. The transparency of ARK’s daily trade disclosures continues to make her moves influential among retail and institutional investors alike.
Investor Outlook
Cathie Wood’s renewed focus on biotech comes at a time when the sector is regaining momentum after a difficult 2022. Her bets on CRISPR Therapeutics, Intellia, and GeneDx highlight ARK’s conviction in gene editing and genomic medicine as platforms capable of reshaping healthcare. While risks remain high given clinical-stage uncertainty and capital intensity, analyst sentiment suggests upside potential if these companies can successfully advance pipelines toward commercialization.
For investors, Wood’s shift signals that genomics has returned to the forefront of ARK’s disruptive innovation thesis, even as the funds take profits in more mature tech names.
The post Is Biotech About to Boom? Cathie Wood Thinks So – ARK Invest Ramps Up Biotech Bets in Genomics appeared first on PRISM MarketView.
