Two Biotech Stocks That Caught Cathie Wood’s Attention
Cathie Wood, the renowned portfolio manager of Ark Innovation ETF, has been bullish on two biotech stocks that align with her investment philosophy of disruptive innovation. These companies are Intellia Therapeutics and Recursion Pharmaceuticals, both of which have the potential to revolutionize their respective fields.
Intellia Therapeutics is a gene-editing biotech that aims to treat or cure inherited rare diseases by directly editing the dysfunctional genes responsible for each illness. With a strong pipeline of early-stage programs, including a late-stage gene-editing program for transthyretin amyloidosis and a mid-stage program for hereditary angioedema, Intellia has the potential to offer one-time doses that permanently reduce the burden of disease. Although the company faces risks related to scientific and regulatory obstacles, its cash reserves of $940 million and manageable R&D expenses make it an attractive investment opportunity.
Recursion Pharmaceuticals, on the other hand, is an AI-centric drug developer that has caught Wood’s attention. With a pipeline of five therapies in mid-stage clinical trials for rare diseases, Recursion is poised to become a leader in AI-driven drug development. Its merger with Exscientia will provide a cash runway through 2026, a larger oncology pipeline, and potential milestone payments of up to $200 million. With a combined cash reserve of $850 million and exposure to 10 clinical data readouts over the next year and a half, Recursion offers a high-risk, high-reward investment opportunity.
Both Intellia and Recursion have the potential to deliver significant returns, but investors must be prepared to stomach the risks associated with these innovative biotech stocks. If you’re willing to take on the uncertainty, these companies could be worthy additions to your portfolio.
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