Finance

1 Cathie Wood Stock to Buy, Hands on Fist in 2024


Ark Invest CEO/CIO Cathie Wood is known for her ability to identify disruptive technologies and invest in them through her company’s family of exchange-traded funds (ETFs). Ark Invest’s flagship ETF, Ark Innovation ETF (NYSE:ARKK)focusing on companies at the forefront of innovation, many in the early stages of development.

This strategy can sometimes lead to high volatility and underperformance in funds, but Wood is a long-term investor who believes investing in game-changing technology can deliver big returns over time.Wood has demonstrated her unique vision in this emerging field gene editing.

Clock with hands to read the time of purchase.

Image source: Getty Images.

An important milestone in gene editing

CRISPR therapy (NASDAQ:CRSP) Having been in Ark Invest’s portfolio since the second quarter of 2017, the investment firm is now the biotech’s largest shareholder, according to its latest 13F filing with the SEC. Wood’s willingness to own stock in this new biotech company for years is starting to look like a brilliant move.

This year, CRISPR Therapeutics achieved a major operational milestone when Casgevy, a gene therapy it co-developed with the company, received regulatory approval for the first time. Vertex Pharmaceuticals (NASDAQ: VRTX)Kagavi is approved in the UK to treat two rare blood disorders, severe sickle cell disease (SCD) and beta-thalassemia.

Soon after, the U.S. Food and Drug Administration (FDA) also approved the therapy to treat severe SCD in patients 12 years of age or older. CRISPR and Vertex are expected to receive an FDA decision on Casgevy’s beta thalassemia status next March. Most analysts think Therapeutic Score will gain recognition again in this case, which could put it on the path to blockbuster sales.

Why CRISPR Stock Is a Buy in 2024

Preliminary surveys by hematologists suggest demand for Casgevy is already strong. However, the therapy may still get off to a slow start due to its novelty and logistically burdensome manufacturing process. In other words, it’s unlikely that CRISPR’s first commercial product will hit the market. If that’s true, CRISPR stock prices could come under pressure in 2024.

However, this unfavorable dynamic shouldn’t worry long-term investors. While slow growth is certainly possible, most analysts believe Casgevy’s annual sales will exceed $1 billion before the end of the decade.

Additionally, CRISPR has a broad pipeline of differentiated drug candidates targeting multiple high-value indications, such as cancer, diabetes, and certain forms of cardiovascular disease. As a result, the company has a real chance to become a multi-product giant in the future.

What’s the bottom line?

The market is rarely patient with new drugs coming to market. So if CRISPR shares do fall on Casgevy’s tepid sales numbers, you probably shouldn’t hesitate to buy this biotech stock. After all, the long-term trajectory is extremely bright for this genomic medicine company.

At this point, gene editing is a powerful new paradigm that could change the curve for dozens of genetic diseases, and CRISPR is a The first one to move

Should you invest $1,000 in CRISPR therapies now?

Before buying CRISPR Therapeutics stock, consider the following factors:

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George Bardwell Holds a position at CRISPR Therapeutics. The Motley Fool has positions and recommendations at CRISPR Therapeutics and Vertex Pharmaceuticals. Motley Fool at disclosure policy.

1 Cathie Wood Stock to Buy, Hands on Fist in 2024 Originally published by The Motley Fool



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