Cathie Wood is known for two things: picking out innovators that will go on to score a win over the long run, and getting in on these stocks at a great price. The founder and chief executive officer of Ark Invest doesn't mind going against the crowd and choosing companies that have fallen out of favor with other investors. She sees the long-term potential, and this could pay off greatly over time.
One of Wood's favorite technologies in the healthcare space is gene editing, and she's invested in two very promising players in that space. In fact, she added to positions in those companies over the past several days. I'm talking about CRISPR Therapeutics(NASDAQ: CRSP) and Intellia Therapeutics(NASDAQ: NTLA), two companies using the CRISPR gene-editing technique -- this involves cutting DNA at a particular location and allowing a natural repair process to take over.
This is a game-changing technology because it could produce functional cures for various diseases -- and this may generate explosive growth for companies that sell these products. Let's find out more about these two Cathie Wood favorites.
Image source: Getty Images.
1. CRISPR Therapeutics
CRISPR Therapeutics is the second-biggest position in Wood's healthcare fund, Ark Genomic Revolution ETF, representing a key bet for the superstar investor. The stock has lost 47% over the past three years, but now may be the perfect time to get in on this innovative company. That's because CRISPR Therapeutics recently launched its very first product, Casgevy, for blood disorders beta thalassemia and sickle cell disease.
Big biotech partner Vertex Pharmaceuticals leads the commercialization efforts, a positive point since this company has many products on the market, so has expertise in this area. The Casgevy approval represents an important step for CRISPR Therapeutics because it can be seen as a vote of confidence in the company's technology -- Casgevy is the first-ever CRISPR-based gene-editing product to win approval. And it's key because it represents a source of revenue.
Meanwhile, CRISPR Therapeutics is moving forward with several other promising gene-editing candidates, from the areas of immuno-oncology to autoimmune diseases. And CRISPR Therapeutics also is generating revenue through the licensing out of its gene-editing technology to Vertex for Vertex's type 1 diabetes program.
Finally, another positive point is CRISPR Therapeutics' cash position. The company has more than $2 billion in cash on its balance sheet, so there's reason to be confident about its ability to advance its exciting pipeline programs.
2. Intellia Therapeutics
Intellia doesn't have products on the market yet, but the company is getting close. Today, Intellia is shepherding two candidates through late-stage clinical trials: potential treatments for transthyretin amyloidosis (ATTR) and hereditary angioedema (HAE).
ATTR is characterized by a buildup of a misfolded protein that negatively impacts various organs, while HAE involves the overproduction of a peptide that leads to recurrent and severe swelling. Intellia is enrolling patients in its phase 3 trial for ATTR with cardiomyopathy and expects to launch its phase 3 trial for NTLA-2002, the HAE candidate, during the second half of this year.
The company recently reported long-term follow-up data from the phase 1 trial of NTLA-2002, and it strengthened the case for gene-editing treatments becoming functional cures. The report showed that eight out of 10 patients remained completely attack free, and this is over two years when considering the first patients dosed in the trial. So, there's reason to be optimistic about the program as it progresses to its final clinical trial.
Like CRISPR Therapeutics, Intellia also maintains a solid cash position, in this case with more than $950 million on its balance sheet -- and the company says this will fund operations through late 2026. Considering the pace of clinical development, this could coincide with the launch of the company's first product.
Intellia shares have dropped 68% over the past three years -- but this doesn't scare off Cathie Wood. Instead, this represents a buying opportunity for savvy investors who, like Wood, aim to scoop up tomorrow's winning innovators at a rock-bottom price.
Should you invest $1,000 in CRISPR Therapeutics right now?
Before you buy stock in CRISPR Therapeutics, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CRISPR Therapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $740,688!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of June 3, 2024
Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics, Intellia Therapeutics, and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
