10 Worst ARK Stocks To Buy According to Short Sellers

6. Intellia Therapeutics, Inc. (NASDAQ:NTLA)

Short Interest as % of  Shares Outstanding: 16.07%

Number of Hedge Fund Investors In Q3 2024: 30

Ark Invest’s Q3 2024 Stake: $251 million

Intellia Therapeutics, Inc. (NASDAQ:NTLA) is another genomic stock. The firm is developing treatments for diseases such as angioedema, lung ailments, hemophilia, and others. Since Intellia Therapeutics, Inc. (NASDAQ:NTLA) does not sell any drugs in the market, under-development treatments are crucial to the firm’s hypothesis. Two of its leading drug candidates are NTLA-2002 and NTLA-2001. These drugs target angioedema and cardiomyopathy, respectively. They are currently in Phase 2 trials and Intellia Therapeutics, Inc. (NASDAQ:NTLA) is enrolling patients for NTLA-2002’s Phase 3 trials. The firm’s shares are down 52% year-to-date, but the two drugs will enter Phase 3 trials soon to further create certainty around Intellia Therapeutics, Inc. (NASDAQ:NTLA)’s portfolio. Additionally, the firm also has other drugs such as NTLA-3001 in its portfolio which creates additional room to get a drug to the market.

Intellia Therapeutics, Inc. (NASDAQ:NTLA)’s management commented on its under-development drugs during the Q3 2024 earnings call. Here is what they said:

“In October, at The American College of Allergy, Asthma and Immunology Annual Scientific Meeting, we presented unprecedented positive results from our Phase II study of NTLA-2002 for the treatment of Hereditary Angioedema. These results showed that a simple one-time infusion of NTLA-2002 offers patients the potential for a functional cure. For people living with HAE, current treatment options are limited to chronically administered prophylactic therapies to prevent or manage attacks, and the use of on-demand therapy to control breakthrough attacks.

Because of this, available therapies place emphasis on attack rate reductions for their lifelong treatments. However, our market research is clear; patients want to lead a normal life, one that is free of attacks, free of chronic treatment, and free of mental burden around potential triggers and the loss of access to their therapies. The emerging profile for NTLA-2002 provides hope that a single intervention may lead to the complete elimination of angioedema attacks and remove the need for subsequent prophylaxis therapy for most patients, the opportunity to deliver such a profile will create significant value for patients and the healthcare system as a whole. We’re extremely encouraged for our Phase II results, and we’re actively screening patients in the Phase III HAELO study.”