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2 Pharmaceutical Stocks Cathie Wood Loves

Published 04/29/2021, 04:37 PM
Updated 04/29/2021, 05:30 PM
© Reuters.  2 Pharmaceutical Stocks Cathie Wood Loves

© Reuters. 2 Pharmaceutical Stocks Cathie Wood Loves

The booming pharmaceutical industry is showing no signs of slowing down. As the COVID-19 pandemic shows increasing signs of retreat in developed countries, major pharmaceutical companies are now turning their attention to the development of drugs for the treatment of other serious diseases. Cathie Wood is betting on DNA sequencing as the next big thing in the healthcare industry and has substantial investments in Novartis AG (NVS) and Bristol-Myers Squibb Company (NYSE:BMY). So, let’s look closer at these names.The pharmaceutical industry has fared relatively well over the past year due to surging capital inflows, investor optimism, and favorable tax treatment. The industry demonstrated impressive innovative capacity and resiliency and delivered multiple vaccines for coronavirus in less than a year.

Renowned investor Cathie Wood believes the sector's capacity to innovate will continue well into 2021 because biopharma companies are now focusing on developing cures for other life-threatening diseases. Given the ageing population in developed parts of the world, combined with inactive lifestyles amid the remote working structure, there is a huge market for therapies for critical ailments. Wood believes DNA sequencing to be the winning approach to solutions to such diseases and that it will revolutionize the healthcare industry.

Novartis AG (NVS) and Bristol-Myers Squibb Company (BMY) have made substantial progress in the field of cancer treatment and critical diseases, and are two of the top holdings in Wood’s Ark Genomic Revolution ETF (ARKG).

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Latest comments

This is not true. She is holding these positions to have something to sell in the event of a major market correction. These are not the 'pure play' disruptors she is talking about. You could say that she prefers them to certain other big pharma companies, but on medium or big down days for the biotech sector, she is always reducing her exposure to these names and adding to the smaller names. I cannot believe you would write something like this without providing the appropriate context for her purchases. Ark is super transparent about these things so it's not like this is secret information that is hard to find.
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