Attention is squarely on the gene-editing space today as CRISPR Therapeutics (NASDAQ:CRSP) and several of its peers rally higher. Investors are welcoming the move, but there does not appear to be much company-specific news. So what do you need to know about CRSP stock now?
Importantly, CRISPR Therapeutics is a leading player among gene-editing companies. It uses Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR) to develop medicines for human diseases.
Essentially, CRISPR is a gene-editing technology that allows for precise changes to DNA. It can help scientists change DNA sequences and gene function, and has a wide range of potential applications. For instance, CRISPR Therapeutics has products in its pipeline for transfusion-dependent beta thalassemia and severe sickle cell disease. More broadly, scientists can use CRISPR to correct genetic defects and prevent or treat the spread of certain diseases.
But beyond the exciting science, why is CRSP stock climbing higher today? And why are peers like Editas Medicine (NASDAQ:EDIT) joining it in the green? Well, it looks like comments from Ark Investment Management may be behind the rally. Importantly, Ark has been a leader in disruptive companies and technologies. Through the guidance of CEO Catherine Wood, Ark made a big bet on Tesla (NASDAQ:TSLA). Now, with recent private equity drama under control, all eyes are on Ark Investment and Wood.
And as it turns out, Wood is looking ahead to all things gene editing.
“Tesla’s still in the running, but I would have to say the biggest upside surprises are going to come from the genomic space,” Wood told Bloomberg. “That’s because the convergence of DNA sequencing, artificial intelligence and gene therapies, importantly Crispr gene editing, is going to cure disease.”
CRSP Stock and Its Genetics Stock Peers
So why is this renewed bet from Wood sending CRSP stock and its peers higher? Well, just take a look at her track record. After making a bold move with Tesla, Wood and Ark Investment have watched TSLA shares skyrocket. The firm has also been a big believer in crypto, and bitcoin (CCC:BTC) has just set a series of all-time highs. If Wood thinks gene-editing stocks are next, it is no wonder CRISPR Therapeutics and its peers are in the spotlight today!
There are two other brief things to keep in mind. The first is that ARK Genomic Revolution (BATS:ARKG), an exchange-traded fund tracking the space, is also trending higher today. This makes sense, as CRSP stock is its top holding. Other portfolio companies like Invitae (NYSE:NVTA) and Pacific Biosciences of California (NASDAQ:PACB) are also up big.
The second thing to note is that CRISPR truly does have massive implications. Just earlier this month, investors learned of a potential test for Covid-19 that uses CRISPR. Although it is still in early stages, the thinking is that this test could rely on a smartphone camera and generate results in less than 30 minutes. As we embark into a new era of biotech innovation, these stocks should be squarely on your radar.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.