TLDR
- Cathie Wood’s ARK Invest bought 659,000 shares of Beam Therapeutics for $13.9 million, adding to an earlier $571,000 purchase
- ARK also purchased 102,806 shares of CRISPR Therapeutics worth $5.26 million after Needham reaffirmed a Buy rating
- Wood trimmed positions in Roblox ($3.25 million) and Roku ($1.83 million) as part of portfolio rebalancing
- Beam Therapeutics uses base-editing technology that Wood believes is safer and more precise than standard CRISPR methods
- Both biotech stocks are part of Wood’s long-term strategy to invest in gene-editing companies that could transform healthcare
Cathie Wood’s ARK Invest made major moves in the biotech sector this week, purchasing nearly $19 million in gene-editing stocks while reducing positions in gaming companies. The trades highlight Wood’s continued focus on breakthrough medical technologies.
ARK Invest bought 659,000 shares of Beam Therapeutics for $13.9 million across two of Wood’s funds. The purchase split between the ARK Innovation ETF and ARK Genomic Revolution ETF. This follows an earlier $571,000 purchase of Beam stock made earlier in the week.
Wood also added 102,806 shares of CRISPR Therapeutics worth $5.26 million. The purchase came after Needham reaffirmed its Buy rating on CRISPR stock with an $81 price target. CRISPR shares rose 7% following the analyst update.
Wood’s Biotech Vision Drives Investment Strategy
Wood has backed gene-editing companies since launching ARK’s first thematic funds. Her Genomic Revolution ETF was among ARK’s earliest offerings, loading up on companies like Editas Medicine and Intellia Therapeutics. The strategy paid off between 2019 and 2020 when ARKG posted large gains from positive trial results and pharma partnerships.
Beam Therapeutics stands out in Wood’s portfolio for its base-editing technology. The company’s method swaps out small DNA pieces one at a time rather than cutting both DNA strands. Wood believes this approach is safer and more precise than standard CRISPR methods.
The company’s pipeline includes treatments for sickle cell disease and beta-thalassemia. Multiple trial readouts are expected this year. Beam has funding through 2027, which reduces dilution concerns common with biotech stocks.
A partnership with Pfizer in cardiovascular disease adds credibility to Beam’s commercial prospects. The deal provides validation for the company’s technology platform. Wood sees this as evidence of Beam’s disruptive potential in healthcare.
Portfolio Rebalancing Reduces Gaming Exposure
Wood trimmed positions in gaming and streaming companies during the same period. ARK sold 31,416 shares of Roblox worth $3.25 million as the stock rebounded. This follows last week’s sale of 26,877 Roblox shares by ARK funds.
The firm also reduced its Roku position by 20,813 shares worth $1.83 million. ARK has been cutting streaming and media stocks recently. Roku trades over 80% below its 2021 high of $473 due to competition and weak advertising markets.
Wall Street analysts maintain positive ratings on both biotech stocks. CRISPR has a Moderate Buy consensus with a $69.44 average price target. The target implies 26.67% upside potential from current levels. CRISPR stock has gained 39.3% year-to-date.
Beam’s cash position provides runway for continued operations without immediate funding needs. The company’s partnership with Pfizer offers potential milestone payments and royalties. Wood views the combination of technology advantages and financial stability as key investment criteria.
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