Genomics stocks: 7 Best Genomics Stocks to Buy in 2023 The Motley Fool
Technology advancements are making sequencing cheaper, faster, and more accurate. Sequencing volumes continue to increase in research and are growing rapidly in clinical applications, with the key drivers including whole-genome sequencing, cancer testing, and recurrence monitoring. This important sector of the life science market is focused on how genes can help treat or prevent serious conditions in patients.
Pharma and biotech companies often dabble in genetics along with their core disciplines, meaning that some firms may also have operations in other areas. The top NASDAQ genetics stocks listed below have products related to gene therapy, genetic testing, genetically defined cancers and rare genetic diseases. Data for this list was collected on March 30, 2023, using TradingView’s stock screener, and the top NASDAQ genetics stocks are listed in order of best year-to-date performance.
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Regeneron’s product portfolio includes nine US Food and Drug Administration-approved treatments, and numerous product candidates in development. The biotech company’s Regeneron Genetics Center is conducting one of the world’s largest genetics sequencing efforts. Illumina gained its dominant market position by championing short-read sequencing technology, which breaks DNA into short segments to aid in analysis for genetic research. As the sequencing market expands from research to clinical applications, Illumina is developing tools to help physicians diagnose and select treatments for patients. Illumina is the industry leader in using short-read sequencing technology, which breaks DNA into short segments to aid in analysis for genetic research, testing, and medical treatment. With an installed base of more than 20,000 sequencing systems, Illumina holds around 80% of the global market.
In 2020, Fulgent Genetics’ revenue exploded from COVID-19 testing, which continued at a reduced rate in 2021 as the company supported return testing for schools and government. However, its COVID-19 testing revenue has recently declined significantly. Exact Sciences developed the Cologuard home test for colon cancer as an alternative to colonoscopies. The company also acquired Genomic Health in 2019, bringing the Oncotype DX cancer diagnostics platform into its product lineup.
Bionano Genomics Inc.
Some approaches, such as short-read sequencing, maximize the number of base pairs sequenced in the least amount of time. The company announced in August 2022 that it’s discontinuing one of its clinical programs, experimental cell therapy NTLA-5001. Instead, Intellia is now focusing its ex vivo development efforts on allogeneic cell therapies (often referred to as “off-the-shelf” therapies) that are made from healthy donors. In the first half of 2022, Exact Sciences reported revenue of a little over $1 billion, a 20% increase compared to the same period in 2021. Cologuard is expected to remain the company’s biggest growth driver over the near term. Sequencing volumes continue to grow in research and are growing rapidly in clinical applications, with the key drivers including whole-genome sequencing, cancer testing, and recurrence monitoring.
Progress in human health requires broader, deeper and more frequent access to genomic data. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Shares of 10x Genomics Inc. plunged 22.3% in active morning trading Friday, putting them on track to suffer a record one-day drop to a record low Friday, after the biotechnology company’s prompted BofA Securities analyst…
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Fulgent’s core genetic testing business, which excludes COVID-19 testing, has again become the company’s primary focus of attention. The business includes cancer tests, genetic tests for newborns, and screening for carriers of genetic diseases. In April 2022, Fulgent acquired Inform Diagnostics, which is a leading national independent pathology lab. Bionano Genomics Inc. priced a $200 million underwritten stock offering at a discount of $6 a share, selling 33.3 million shares. The Novo Nordisk Foundation Center for Genomic Mechanisms of Disease researches the genetics and gene regulation of common complex diseases, including type 2 diabetes and obesity. This research generates systematic datasets that help other pharmaceutical teams understand how human genetic variants affect a patient’s risk for developing serious diseases.
Despite an active review by regulators, Illumina surprised the industry by completing the acquisition of blood testing company Grail. However, CEO Francis deSouza acknowledged in Illumina’s second-quarter conference call that the company has considered its options for spinning off Grail if it’s forced to do so by regulators. With technology advancements dramatically improving the cost, accuracy, and time to map a person’s entire genome, many rapidly growing companies are emerging in the genomics sector. The genetics sector supports every other life science industry in a variety of ways. Founded in 1876, Eli Lilly and Company leverages its expertise in biotechnology, chemistry and genetic medicine to develop therapies for endocrinology, neuroscience, oncology, immunology and cardiovascular disorders.
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This includes the potential for healthcare professionals to implement gene therapy at the cellular level instead of using medication or surgery, replacing “faulty” genes with new ones to potentially cure diseases. A global leader in biotech, Amgen uses advanced human genetics to develop and manufacture therapeutics targeting a variety of diseases with unmet medical needs. Amgen states on its website that no other company has made a bigger bet on using human genetics to drive research and development. The firm is committed to aggressively leveraging human genetics in its research. Its aim is to move from one-off discoveries and instead take an industrial-scale approach to gene-based research.
Although the Human Genome Project was declared “complete” in 2003, it missed about 8% of the genome. PacBio highlighted the benefits of its HiFi whole-genome sequencing technology by helping scientists fill in that remaining 8%. The company known as PacBio is pioneering long-read sequencing technology, which uses longer DNA segments to map the whole genome. Texas-based Reata Pharmaceuticals is a biopharmaceutical company developing novel therapies for a variety of life-threatening chronic diseases with unmet therapeutic needs.
The company expects to put out top-line data in the fourth quarter and in 2024 will submit that data, along with long-term safety information, to the FDA and the European Medicines Agency . Investing in Gene-Editing Stocks The ability to edit genes may have applications across healthcare. Sequencing companies have the genetic version of the razor-and-blade business model where instruments are the equivalent of razors and consumables are blades. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Investing in Genetic Testing Stocks Exploring the human genome has both direct-to-consumer and medical applications.
Tempest Therapeutics is a clinical-stage oncology company advancing small-molecule therapeutics that modulate anti-tumor immunity pathways with the potential to treat a wide range of tumors. The company’s portfolio consists of clinical programs in various stages, from early research to investigational global studies. In 2023, Biomea Fusion plans to advance all three programs and deliver multiple clinical trial results throughout the year.
10X Genomics, Inc. is a life science technology company, which engages in building products to interrogate, understand and master biology. Its integrated solutions include single cell transcriptomics, single cell genomics, single cell epigenomes, linked-reads genomics and spatial transcriptomics. The company’s products include Single Cell Gene Expression, Immune Profiling, ATAC, and Genome.
Reata’s Skyclarys recently received FDA approval for the treatment of Friedreich’s ataxia, a debilitating neuromuscular disease. The company is also developing bardoxolone methyl for the treatment of patients with chronic kidney disease and cemdomespib for the treatment of patients with diabetic neuropathic pain. More recently, the company further expanded its growing pipeline of gene therapies with the acquisition of genetic medicine developer Akouos for US$487 million. Novo Nordisk is a leader in the treatment of diabetes and other serious chronic ailments, such as cardiovascular diseases, obesity and rare blood and endocrine disorders. It has operations in 80 countries and its products are available in around 170 countries. Instruments can range in cost from $20,000 to $1 million and are an important element of expanding the business and locking customers into long-term relationships.
Since its 1998 founding, Illumina has become an industry leader with more than 90% of the global sequencing market and an installed base of more than 17,000 sequencing systems. CRISPR Therapeutics reported revenue in the first half of 2022 of almost $1.1 million, down significantly from $901.2 million recorded for the same period in 2021. This decline was primarily the result of a drop in collaboration revenue after the company received a $900 million up-front payment from Vertex in the prior-year period. Intellia reported revenue of $25.3 million in the first half of 2022, all of which came from collaborations. In March, Reneo achieved the target enrollment for its STRIDE study of mavodelpar in primary mitochondrial myopathies.
Meanwhile, ARK Investment Management estimates sequencing costs will continue to sharply decline. In the first half of 2022, Invitae reported revenue of $260.3 million, a year-over-year increase of 18%. The company projects low-double-digit revenue growth for full-year 2022.
The company’s pipeline targets molecular pathways involved in the regulation of cellular metabolism and inflammation. Through its expanded genetic code technology platform, clinical-stage biopharma company Ambrx Biopharma is discovering and developing engineered precision therapies. The company’s portfolio of advanced clinical and preclinical programs is designed to improve efficacy and safety in the treatment of a number of cancer indications, such as prostate and breast cancers. Gene therapy is also a huge driver of growth in the overarching genetics market.
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