ARK Genomic Revolution ETF Buys $15.3 Million of Ionis Shares Amid Biotech Pivot
The purchase follows a 27% year-to-date decline in Ionis stock, driven by a late-stage trial failure for eplontersen, but coincides with strong revenue growth and FDA approval for its commercial drug Tryngolza.
Cathie Wood’s ARK Genomic Revolution ETF has purchased $15.3 million of Ionis Pharmaceuticals shares since the beginning of July 2026. The investment comes as the biotech firm navigates a significant strategic shift, moving away from its traditional model of developing drugs for licensing to larger pharmaceutical partners and towards commercialising its own assets. The purchases occurred after Ionis shares fell nearly 37% from their 2026 high, a decline largely attributed to a surprise late-stage trial failure for eplontersen in treating ATTR-CM, a rare heart disease.
Despite the setback with eplontersen, which prevents Ionis from sharing future profits or milestone payments for that specific indication, the company has reported robust financial results for the first quarter of 2026. Revenue surged 86% year-on-year to $246 million, while the net loss narrowed to $118 million from $146 million in the same period the previous year. These figures reflect the early impact of Ionis’s pivot to direct commercialisation, a strategy that allows the company to capture high-margin revenue rather than relying solely on royalty cuts.
A key driver of this commercial momentum is Tryngolza (olezarsen), which received FDA approval in June 2026 for severe hypertriglyceridaemia (sHTG). This approval expands the drug’s market beyond its initial 2024 indication for familial chylomicronemia syndrome, potentially reaching more than 3 million patients in the United States. Clinical data showed Tryngolza reduced triglyceride levels by up to 72% and cut life-threatening acute pancreatitis events by 85% to 91%. To ensure rapid insurer coverage, Ionis proactively slashed the annual list price from $595,000 to $40,000.
Wall Street firm William Blair expects the expanded market to push Tryngolza’s peak sales to $3 billion, leading Ionis to increase its annual peak net sales guidance from $2 million to $3 million. This commercial focus is supported by a diverse pipeline, including a New Drug Application with Priority Review for zilganersen to treat Alexander disease, accepted by the FDA in March 2026. Additionally, a phase 3 readout for pelacarsen, partnered with Novartis, is expected shortly.
The transition to a commercial-stage biotech has increased operating expenses, with cash, cash equivalents, and short-term investments falling from $2.7 billion to $1.9 billion in the first quarter. While part of this decline was due to paying off maturing convertible debt, the remainder funds launch preparations for Tryngolza and other wholly owned assets. Wood’s acquisition suggests a long-term view of the company’s value, although the Motley Fool’s Stock Advisor analyst team did not include Ionis in their list of 10 best stocks to buy now, citing the risks inherent in unprofitable biotech stocks.
