Biotech stocks got crushed in the first half of the year as a risk-off sentiment emerged and the growthiest segments of the market were punished, but have rebounded in recent months, with some companies posting highly impressive gains.
Shares of Butterfly Network rose about 16% last Wednesday after the company announced quarterly earnings that beat analyst expectations for both revenue and earnings. Management reported a significant lift in margins, suggesting continued momentum in software sales, and announced several other business development catalysts, including a collaboration with Texas-based Baylor Scott & White (BSW) that will deploy Butterfly’s Compass software at scale, ARK Invest wrote in a recent insight.
Butterfly Network is an innovative medical imaging company focused on commercializing a portable, low-cost point-of-care ultrasound (POCUS) system, according to ARK Invest. The company is a top 20 holding in ARKG, weighted at 2.39% as of August 12, according to the fund’s website.
The momentum following Butterfly Network’s strong earnings report has continued through this week, with the stock increasing over 30% over five days. Shares of the company have increased 127.2% over the past month and 25.7% year to date.
ARKG is an actively managed equity strategy that aims to provide exposure to DNA sequencing technology, gene editing, CRISPR, therapeutics, agricultural biology, and molecular diagnostics.
Companies within ARKG are focused on and are expected to substantially benefit from extending and enhancing the quality of human and other life by incorporating technological and scientific developments and advancements in genomics into their businesses, according to the firm.
ARKG typically holds between 40 and 60 securities and charges an expense ratio of 75 basis points. Top holdings in the fund as of August 12 include Exact Sciences Corp (EXAS), Signify Health Inc (SGFY), Ionis Pharmaceuticals (IONS), Teladoc Health Inc (TDOC), and Fate Therapeutics (FATE).
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