A biotechnology exchange traded fund focusing on CRISPR gene editing bucked the broader market trends on Monday.
Among the best performing non-leveraged ETFs of Monday, the ARK Genomic Revolution Multi-Sector Fund (CBOE: ARKG) advanced 7.1%.
The ARK Genomic Revolution ETF tracks the convergence of tech and healthcare. The underlying components are expected to substantially benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments and advancements in genomics into their business.
Leading the biotech segment, Editas Medicine (EDIT) jumped 37.9%, Intellia Thera (NTLA) increased 17.5% and Crispr Therapeutics (CRSP) advanced 17.1%. ARKG includes a 7.2% position in CRSP, 1.9% in NTLA and 2.1% in EDIT.
All biotech stocks with a focus on CRISPR gene editing were rallying Monday. The positive sentiment may be partially attributed comments made last week by Ark Investment Management CEO Cathie Wood on the space, according to Keith Speights for The Motley Fool.
“I would have to say the biggest upside surprises are going to come from the genomic space. That’s because the convergence of DNA editing, artificial intelligence, and gene therapies, importantly CRISPR gene editing, is going to cure disease,” Wood told Bloomberg.
The CRISPR technology may also be under the spotlight as another disease fighting tool, with the world refocusing on the need for improved healthcare solutions. Disease fears are back as the coronavirus has mutated into a more contagious strain in the United Kingdom.
Leading the CRISPR-focused biotech group, CRISPR Therapeutics has enjoyed a couple of supporting factors in recent weeks. Editas has filed request with the U.S. Food and Drug Administration (FDA) to begin a phase 1/2 study of EDIT-301 in treating sickle cell disease. Editas is well-positioned with DIT-301 if its clinical results look as good as its preclinical data suggests. Editas’ short interest is also much higher than its rival’s short interest, so the surge on Monday may be the result of a short squeeze in motion as short-sellers scramble to close out their positions, pushing Editas shares higher as a result.
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