Cathie Wooden referred to as this one in every of her most underappreciated shares. Its CEO explains its development story


Shares of Invitae rose over 25% this week, a pointy transfer increased that got here after Ark Make investments’s Cathie Wooden referred to as the corporate one of her most underappreciated stocks in a CNBC interview on Monday.

Invitae was the Eleventh-largest holding in Wooden’s flagship fund, the Ark Innovation ETF (ARKK), as of Thursday, giving it a weighting bigger than better-known corporations corresponding to DocuSign and PayPal.

The carefully watched investor and her agency are identified for his or her technique of investing round “disruptive innovation,” and a robust efficiency final yr has precipitated billions of latest {dollars} to circulation into Ark’s household of funds.

In a CNBC interview Friday, the CEO of Invitae defined the genetic-testing firm’s mission and long-term objectives, providing perception into why Wooden is bullish on its prospects.

“Genetic data is of basic significance in bettering folks’s health-care outcomes and reducing prices, and we’re relentlessly pursuing the thought of getting that data into mainstream medical care, on a regular basis use,” Sean George stated on “Closing Bell.” He co-founded the San Francisco-based agency in 2010, and it went public in 2015.

Invitae reported full-year revenues of $279.6 million in 2020, up from $216.8 million within the prior yr. Its internet loss widened $608.9 million final yr, in contrast with $242 million in 2019.

Whereas genetic data is usually a highly effective software in combating numerous maladies, George stated excessive prices have traditionally restricted its availability and, by extension, the impression it could have. Nonetheless, he stated, current gene-sequencing improvements have laid the groundwork for extra accessibility. He likened it to semiconductor enhancements serving to kickstart the computing and networking business in the 1970s and early ’80s.

“That has enabled … software suppliers like us … to alter what has essentially been up to now a rationed good in well being care — genetic data, sort of in a distinct segment, test-by-test, sample-by-sample lab business arrange — to one thing that appears way more like an data business,” George stated.

George, who has a Ph.D. in molecular genetics, stated Invitae hopes to get its checks to the purpose the place sufferers and medical doctors can use them proactively in giant numbers. That approach, even when the price of every take a look at is cheaper, Invitae can have the size to generate sufficient working money to thrive as an organization, he stated.

“The huge significance and central significance of genetic data in well being care is about to — I am sure within the subsequent 5 to 10 years — is about to return entrance and middle as a capability to get the best remedy earlier to people that may profit, determine folks in danger, and put in place monitoring and prevention modalities to definitely delay, if not even forestall, the onset of illness and usually present a core understanding of threat that runs in households,” he added.

Ark Make investments has positions in a spread of corporations engaged on medical innovation past Invitae. Wooden’s agency has an ETF devoted to it, referred to as the Genomic Revolution ETF (ARKG). As of Thursday, it consists of Teladoc, Regeneron Pharmaceuticals and CRISPR Therapeutics. Invitae is also in that fund, at present as its sixteenth largest holding.

Shares of Invitae closed Friday’s session down 0.5% at $42.70. Regardless of the inventory’s huge good points this week, it stays under its all-time excessive of $61.59, on Dec. 14. It has rallied nearly 260% up to now 12 months.