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Cathie Wood called this one of her most underappreciated shares. Its CEO explains its growth story


Shares of Invitae rose over 25% this week, a pointy transfer increased that got here after Ark Invest’s Cathie Wood called the corporate one of her most underappreciated shares in a CNBC interview on Monday.

Invitae was the 11th-largest holding in Wood’s flagship fund, the Ark Innovation ETF (ARKK), as of Thursday, giving it a weighting bigger than better-known firms comparable to DocuSign and PayPal.

The carefully watched investor and her agency are identified for his or her technique of investing round “disruptive innovation,” and a powerful efficiency final 12 months has precipitated billions of new {dollars} to circulate into Ark’s household of funds.

In a CNBC interview Friday, the CEO of Invitae defined the genetic-testing firm’s mission and long-term targets, providing perception into why Wood is bullish on its prospects.

“Genetic information is of fundamental importance in improving people’s health-care outcomes and lowering costs, and we are relentlessly pursuing the idea of getting that information into mainstream medical care, everyday use,” Sean George stated on “Closing Bell.” He co-founded the San Francisco-based agency in 2010, and it went public in 2015.

Invitae reported full-year revenues of $279.6 million in 2020, up from $216.eight million within the prior 12 months. Its internet loss widened $608.9 million final 12 months, in contrast with $242 million in 2019.

While genetic info could be a highly effective software in combating varied maladies, George stated excessive prices have traditionally restricted its availability and, by extension, the affect it could possibly have. However, he stated, latest gene-sequencing improvements have laid the groundwork for extra accessibility. He likened it to semiconductor enhancements serving to kickstart the computing and networking trade within the 1970s and early ’80s.

“That has enabled … application providers like us … to change what has fundamentally been in the past a rationed good in health care — genetic information, kind of in a niche, test-by-test, sample-by-sample lab industry set up — to something that looks much more like an information industry,” George stated.

George, who has a Ph.D. in molecular genetics, stated Invitae hopes to get its checks to the purpose the place sufferers and medical doctors can use them proactively in giant numbers. That manner, even when the fee of every check is cheaper, Invitae may have the dimensions to generate sufficient working money to thrive as an organization, he stated.

“The massive importance and central importance of genetic information in health care is about to — I’m certain in the next five to 10 years — is about to come front and center as an ability to get the right therapy earlier to individuals that can benefit, identify people at risk, and put in place monitoring and prevention modalities to certainly delay, if not even prevent, the onset of disease and generally provide a core understanding of risk that runs in families,” he added.

Ark Invest has positions in a spread of firms engaged on medical innovation past Invitae. Wood’s agency has an ETF devoted to it, called the Genomic Revolution ETF (ARKG). As of Thursday, it contains Teladoc, Regeneron Pharmaceuticals and CRISPR Therapeutics. Invitae is also in that fund, presently as its 16th largest holding.

Shares of Invitae closed Friday’s session down 0.5% at $42.70. Despite the inventory’s large good points this week, it stays beneath its all-time excessive of $61.59, on Dec. 14. It has rallied virtually 260% up to now 12 months.



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