This year, some healthcare exchange traded funds are hot. Then there’s the ARK Genomic Revolution Multi-Sector Fund (CBOE: ARKG), which is absolutely sizzling.
ARKG includes companies that merge healthcare with technology and capitalize on the revolution in genomic sequencing. These companies try to better understand how biological information is collected, processed, and applied by reducing guesswork and enhancing precision; restructuring health care, agriculture, pharmaceuticals, and enhancing our quality of life.
Translation: ARKG is at the center of an array of disruptive, revolutionary healthcare concepts and another is emerging today thanks to Personalis (NASDAQ: PSNL), a top 10 holding in ARKG.
“In a quarter of record revenue growth and new product launches, Personalis (PSNL) – a burgeoning deep genomics company – expanded on a new commercial opportunity: population genomics. Recently, many nations and health systems have begun sequencing large populations to unlock critical genomic information,” according to ARK research.
Power of Personalis
Genomics companies spend a plethora of time and massive amounts of money to fund breakthrough biological treatments and diagnostic tools. Blossoming developments can literally change their fortunes, and the fortunes of shareholders overnight. Genomics is likely to be an integral part of the biotechnology growth story in the years ahead.
Making ARKG all the more alluring today are big opportunities in the population genomics, or pop gen, market.
“Using current projects as benchmarks, ARK estimates that the pop-gen market opportunity could scale to $4 billion during the next five years, though the barriers to launch such projects are formidable,” notes ARK. “While many countries have both the desire and the funding to get these ultra-high-throughput projects off the ground, they lack the genomics infrastructure and technological know-how.”
ARKG holding Personalis is establishing itself as a leader in the still overlooked, but rapidly growing pop gen arena.
“Personalis is conducting the largest ongoing pop-gen project in the United States in collaboration with the US Department of Veterans Affairs (the “VA”). Already it has sequenced the 75,000 of the 116,000 whole human genomes in the VA contract, giving Personalis the experience in process optimization necessary to establish sequencing centers around the globe,” according to ARK.
Population health is mounting as a big long-term driver for ARKG.
“Population health could be another exciting opportunity to build a foundation based on molecular information and enable biological discoveries and medical interventions during the next five to ten years,” notes the issuer.
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