Cathie Wood, the brilliant mind behind ARK Invest, is known for her unique ability to spot disruptive trends in stocks. Her investment strategies have made waves in the financial world, and millions of investors eagerly follow her every move.
This article offers an exclusive look into Cathie Wood’s investment playbook. I will zoom in on three specific stocks she’s investing millions into. These three stocks aren’t just numbers on a screen, they represent the cutting edge of technology, medicine and innovation. The success or failure of these Cathie Wood stocks could reshape industries and affect millions of lives.
Intuitive Surgical (ISRG)
In Q3 2023, Intuitive Surgical (NASDAQ:ISRG) reported a 19% increase in procedures that used their da Vinci Surgical System. This growth is a clear indicator of the company’s strong market presence and the trust customers place in its products.
Notably, this growth was wider than one geographical area but extended internationally, with Germany, Japan, the U.K. and India standing out. In particular, the US saw substantial growth in dermal surgery procedures like cholecystectomy and colon resection.
Fundamentally, the introduction and success of new platforms, such as Ion and da Vinci SP, indicate the company’s commitment to innovation. Ion’s impressive 125% growth in the quarter underscores the demand for newer, cutting-edge systems. This allows the company to stay at the forefront of technological advancements in robotic-assisted surgery.
Finally, this trend is not limited to one specific system. It includes both single-port and multiport da Vinci systems and Ion systems, further diversifying the company’s revenue streams. Despite a slight decrease in system utilization growth, the company’s utilization rates remain above historical growth rates. Therefore, higher utilization increases customers’ return on invested capital, which is economically healthy for both customers and the company.
Verve Therapeutics (VERV)
A pivotal strength of Verve Therapeutics (NASDAQ:VERV) is its ability to navigate the complex regulatory landscape. The company successfully obtained clearance from the US Food and Drug Administration (FDA) for its Investigational New Drug Application. This enables Verve to conduct a clinical trial in the United States. Clearing this regulatory hurdle is a significant milestone that paves the way for further clinical development and eventual market entry.
Strategically, Verve’s partnership with Eli Lilly (NYSE:LLY) is a critical indicator of the company’s growth potential. The collaboration focuses on advancing Verve’s preclinical stage in vivo gene editing program that is targeting a known risk factor for cardiovascular diseases. The collaboration not only brought an upfront payment and equity investment of $60 million to Verve but also secured funding for research program costs through Phase 1 clinical trials. The potential to receive up to $465 million in research, development, and commercial milestones, along with tiered royalties on global net sales, further strengthens Verve’s financial position. As a result, it enables the company to scale up its research and development activities.
Beam Therapeutics (BEAM)
Beam Therapeutics (NASDAQ:BEAM) has demonstrated strategic acumen by prioritizing specific programs within its portfolio. For instance, Beam has chosen to prioritize the development of both ex vivo and in vivo sickle cell disease programs. Further, the decision to conduct an initial BEAM-301 clinical trial shows Beam’s commitment to expanding its pipeline to address a broad range of genetic diseases.
On the other hand, Beam Therapeutics has successfully entered into strategic collaborations with established industry players. These partnerships not only provide significant upfront payments but also offer the potential for substantial milestone payments. For instance, the collaboration with Pfizer (NYSE:PFE) includes a $300 million upfront payment. It also holds the potential for over $1 billion in milestone payments. This partnership involves working on three gene targets using Beam’s editing technology. It is oriented towards targeting the liver, muscles and central nervous system. The fact that Pfizer is willing to commit such substantial resources underscores confidence in Beam’s technology.
Finally, Beam’s partnership with Apellis (NASDAQ:APLS) features $75 million in upfront payments for base editing. It addresses complement-mediated diseases and highlights the technology’s potential applications in diverse therapeutic areas. Beam’s option to claim 50% of the US rights after Phase 1 on one program indicates its ability to capture a significant share of the value generated.
On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.