Editas Medicine Inc (NASDAQ: EDIT), a genome editing company that utilizes CRISPR technology, stock surged 29.89% on December 21^st, 2020 (Source: Google finance) after the recently commentary from ARK Invest founder Cathie Wood saying genomic stocks will drive returns for her investment portfolios over the next five years. In an interview with Bloomberg on Friday, Wood said her and her team believes “the next FANG stocks are in the genomic age”. Editas Medicine is the 11th-largest holding in the ARK Innovation ETF, and CRISPR Therapeutics is the second largest, according to data from ARK Invest. Further, Editas has reported some great news in recent weeks, including filing a request with the U.S. Food and Drug Administration (FDA) to begin a phase 1/2 study of EDIT-301 in treating sickle cell disease. The company could have a winner with EDIT-301 if its clinical results ultimately look as good as its preclinical data. Editas’ lead pipeline candidate, EDIT-101, also could prove to be a game-changer in treating Leber congenital amaurosis type 10 (LCA10), the leading cause of childhood blindness. Editas’ short interest is also a lot higher than its rival’s short interest. The company could be seeing a short squeeze in motion as short-sellers scramble to close their positions, driving Editas’ shares higher in the process.

Meanwhile, the company has signed a new agreement with AbbVie that returned development and commercialization rights for ocular medicines to Editas Medicine. As part of the new agreement, AbbVie has transferred supplier contracts, including with the contract research organization (CRO), as well as sponsorship of the investigational new drug application (IND) for the BRILLIANCE Phase 1/2 clinical trial to Editas Medicine. The Company intends to continue to advance ocular medicines, including EDIT-101 for Leber congenital amaurosis 10 (LCA10).

On the other hand, for the three months September 30, 2020, the company reported net income attributable to common stockholders of $7.8 million compared to net loss of $32.9 million for the same period in 2019. Cash, cash equivalents, and marketable securities as of September 30, 2020, were $541.3 million, compared to $598.7 million as of June 30, 2020. The Company anticipates that its existing cash, cash equivalents and marketable securities of $541.3 million as of September 30, 2020, and anticipated interest income will enable it to fund its operating expenses and capital expenditures into 2023.