Cathie Wood Bets on Beaten-Down Biotech Amid Market Turmoil
Cathie Wood's latest MOVE highlights the high-stakes nature of biotech investing. Shares of a promising mRNA therapy developer cratered 50% after interim cystic fibrosis trial data failed to meet expectations, despite showing some positive signals in mucus reduction for certain patients.
The market's brutal reaction underscores the binary nature of clinical-stage biotechs. While ARCT-032 demonstrated tolerable safety and partial efficacy in four of six patients, the lack of significant lung function improvement proved decisive for traders. Such volatility creates opportunities for conviction investors like Wood who can stomach the risk.