(Bloomberg) — Crispr Therapeutics AG plunged 8.8% in postmarket trading Tuesday after an experimental blood cancer therapy disappointed investors. That may spell more bad news for a Cathie Wood fund that’s already slid more than 20% this year.
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Funds at Cathie Wood’s Ark Investment Management snatched up shares of the biotech company and another gene-editing peer Intellia Therapeutics Inc. ahead of Crispr’s results. ARK Investment Management is a top holder in Crispr, Intellia and Editas Medicine Inc., all of which use gene-editing technology known as Crispr.
Crispr fell after its CAR-T cell therapy cleared cancer cells in nine patients out of 24. Investors were hoping the so-called “off the shelf” treatment made from healthy donor cells would work better than existing therapies.
In the days leading up to the results the ARK Genomic Revolution ETF, or ARKG, and Wood’s flagship fund, the ARK Innovation (ARKK) added to positions in Crisp and Intellia. While Intellia rallied after positive results with partner and Regeneron Pharmaceuticals Inc., other stocks in the gene-editing sector have performed poorly this year as safety concerns and other setbacks hampered sentiment.
The ARK Genomic Revolution has peeled off 22% so far this year while ARKK has dropped 10%.
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