3 Stocks To Buy For The Genomic Revolution

Dna, Genetic Material, Helix, Proteins, Biology

Cathie Wood has been managing more than $26 billion in assets on which she has delivered robust returns over the past year. Some of her biggest bets on the healthcare industry are placed through Ark Genomic Revolution ETF (ARKG), which has gained more than 180% over the past year. The top holdings in this actively managed ETF include Novartis (NVS), Regeneron Pharmaceuticals (REGN), and Vertex Pharmaceuticals (VRTX). Let’s take a closer look at what Wood sees.

Cathie Wood is a long-time advocate of the technology industry, with a focus on industry disrupting  innovations. While her big gamble on Tesla, Inc. (TSLA) raised her profile as one of this century’s most successful investors, her bets on the forthcoming genome mapping revolution are gradually bearing fruit.

Wood’s Ark Genomic Revolution ETF (ARKG) is an actively managed ETF that invests in companies that have the potential to restructure the global healthcare and pharmaceutical industry through DNA sequencing and targeted therapeutics. With net assets of approximately  $7.67 billion as of March 31, ARKG has a weighted average market capitalization of $55 billion. With 2020 being one of the biggest years for the biopharma industry, genome mapping technology has taken off.

Wood’s  investments in the healthcare industry have been profitable. ARKG has gained more than 180% over the past year, and 47.6% over the past three months.

Among  ARKG’s top holdings are Novartis AG (NVS - Get Rating), Regeneron Pharmaceuticals Inc. (REGN - Get Rating) and Vertex Pharmaceuticals Incorporated (VRTX - Get Rating). They have  a combined 12.49% weighting in the ETF. So, we think it  wise to bet on these stocks now.

Click here to checkout our Healthcare Sector Report for 2021

Novartis AG (NVS - Get Rating)

As one of the largest pharmaceutical companies in the world, NVS is a prime holding in Wood’s  Ark Genomic Revolution ETF (ARKG). As of March 31, ARKG held  4.33 million shares of NVS, representing a 4.2% weighting  in the portfolio. Wood has a 3.92% stake in the NVS stock.

Based in Switzerland, NVS has operations around  the world, and is estimated to be the second largest company in the world based on projected sales in 2021. The company has more than 170 prescription drugs in its portfolio, with its top selling arthritis treatment drug Cosentyx generating nearly $4 billion in annual sales in 2020. While NVS didn’t launch an  individual COVID-19 treatment drug, it partnered with German biopharma CureVac NV to produce the latter’s vaccine candidate CVnCoV. However, the stock reported only modest price gains, rising  3.7% over the past year.

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