Shares of Zymergen soared as much as 76% on Thursday, helping the synthetic biology company recoup some of its massive losses from Wednesday.
Zymergen plunged 76% yesterday after it said issues with its main product would prevent the company from generating material revenue this year and next.
But Cathie Wood’s Ark Invest saw opportunity in Zymergen’s massive Wednesday decline and ultimately tripled its stake in the company. The Ark Invest Genomic Revolution ETF bought more than 2.5 million shares of the company on Wednesday, bringing its stake to more than 3.5 million shares.
Zymergen said in a statement on Tuesday that it became aware of issues with its commercial product pipeline that will impact the company’s delivery timeline and revenue projections. Zymergen is working to develop Hyaline, which enables flexible display applications for screens and devices.
“Several key target customers encountered technical issues in implementing Hyaline into their manufacturing processes,” Zymergen said, adding that while it made progress addressing the challenges, there will be a delay in the company’s commercial ramp.
Additionally, Zymergen said the total addressable market for foldable display applications is growing at a slower pace than anticipated, resulting in lower sales forecasts for the company.
Zymergen went public in April of this year. The Ark Invest Genomic Revolution ETF traded up more than 2% in Thursday trades.