Ark Invest builds $362M CRISPR stake as CAR-T pipeline takes shape

Ark Investment Management holds $362 million in CRISPR Therapeutics across two ETFs, betting on the biotech's off-the-shelf CAR-T therapies as a catalyst beyond its gene-editing franchise.

The gene-editing specialist's allogeneic CAR-T program, including zugocabtagene geleucel now in phase 1 trials for lymphoma and autoimmune diseases, represents an opportunity many investors underrate, according to Ark's public portfolio disclosures.

Ark's flagship Innovation ETF holds about $270 million of CRISPR shares, while the smaller Genomic Revolution ETF holds another $92 million. CRISPR's Casgevy, approved by the FDA in late 2023 for sickle cell disease, uses a patient-specific approach that requires months of personalized manufacturing. Its CAR-T candidates, by contrast, use donor cells and can be produced at scale without waiting for individual patient samples.

The global CAR T-cell therapy market is projected to grow more than 30 percent annually through 2034, reaching $60 billion, according to Global Market Insights. CRISPR faces competition from Novartis, Bristol Myers Squibb and Gilead Sciences, which already have marketed CAR-T drugs on the market.

CRISPR's CTX110 remains in preclinical testing. Its zugocabtagene geleucel, formerly CTX112, is in phase 1 trials showing promise as a treatment for lymphoma and autoimmune conditions including lupus, systemic sclerosis and inflammatory myositis. The off-the-shelf approach cuts costs for both the company and patients by eliminating the need to harvest and engineer each patient's own cells. Any healthy donor can provide the T-cells needed to target the CD19 protein found on cancerous cells and cells associated with autoimmune conditions.

CRISPR Therapeutics shares rose 2.47 percent on the day of the disclosure, reflecting investor optimism around the pipeline expansion beyond gene editing.

The $362 million position signals Ark's conviction that CRISPR's CAR-T platform could unlock a larger total addressable market than its gene-editing franchise. Investors will watch for phase 1 data readouts for zugocabtagene geleucel, which could serve as the next catalyst for the stock.

This article is for informational purposes only and does not constitute investment advice.