The ARK Genomic Revolution Multi-Sector Fund (CBOE: ARKG) jumped 5.34% last week, run fueled by concerns of a second wave of the novel coronavirus and news that some of the ETFs components are making progress on the vaccine front.
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.
“Invitae (NVTA) closed up roughly 45% on Monday after announcing plans to acquire ArcherDx,” according to ARK Invest. “We believe that Archer’s strength in synthetic biology, reagent manufacturing, and somatic variant calling will supplement Invitae’s oncology portfolio. Invitae probably will focus on democratizing access to therapies with lower price points for testing, much like its strategy in the hereditary testing space.”
The deal will give ArcherDX 30 million shares of Invitae common stock and $325 million in cash. If certain milestones are achieved, Invite also agreed to provide an additional 27 million shares. The total transaction is valued at about $1.4 billion.
The combined company could transform care for cancer patients, accelerating adoption of genetics through the most comprehensive suite of products and services available, according to a press release. Integrating germline testing, tumor profiling, and liquid biopsy technologies and services in a single platform will enable precision approaches from diagnostic testing to therapy optimization and monitoring, expanding access to best-in-class personalized oncology.
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“Evogene (EVGN) closed up 24% on Tuesday after one of its patents (10,689,662) – covering methods to enhance crop yields – received wide publicity on June 23rd. Interestingly, Evogene filed this patent in 2018,” notes ARK.
Evogene is one of ARKG’s smaller components, but nonetheless the stock is on the ETF’s roster.
“Inovio (INO) closed up 41% on Tuesday and up 31% on Thursday after the US Department of Defense (DOD) allocated $71 million to its COVID-19 vaccine development program. It will be releasing results Phase 1 vaccine trial results later this month,” according to ARK.
Inovio was among the first groups to tackle the COVID-19 problem back in January, and now, the company has advanced to human testing and scored a $71 million contract from the U.S. government for a delivery device of the potential vaccine, FIercePharma reports.
Invitae and Inovio combine for 13.34% of ARKG’s weight.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.