Looking to invest in genetic testing? Or learn more about the companies involved? Here are 7 genetic testing stocks to consider.
The DNA testing market is expected to be worth roughly $10.04 billion by 2022. By 2019, however, the global genetic testing market is showing some significant upside, with a 9.65 percent compound annual growth rate between now and then. What has made this area of genetic research so compelling is that genetic testing enable patients to take advantage of personalized medicines. Personalized medicines, for investors unfamiliar with the term, focuses on prevention and early treatment of a disease rather than reacting to it at a later stage.
With companies like 23andMe making genetic testing available to the masses, investors will no doubt be wondering which companies could help them get in the door in this exciting field. But how can investors invest in companies engaged in the genetic testing market? Here’s a look at seven companies that have a big stake in the global genetic testing market.
The companies below are listed in alphabetical order, with all numbers and figures current as of market close on March 1, 2018, with data compiled from Google Finance.
Bio-Rad Laboratories (NYSE:BIO)
Market cap: $7.88 billion; current share price: $264.82
Bio-Rad Laboratories is a clinical diagnostics company with a large portfolio of screening and diagnostics products. Though the company specializes in diabetes testing, it also is well-known for its blood virus testing as well as detection, blood typing, autoimmune and genetic disorders testing. Their products are distributed to research intuitions, hospitals, and commercial laboratories.
For the company’s full year 2017 financial results it highlighted an 8.6 percent increase in net sales. Norman Schwartz, president and CEO of Bio-Rad said, “The anticipated expansion in our operating margin for 2018 represents a significant step toward achieving our longer term goal of an EBITDA margin of 20 percent or better in 2020. Moreover, we will continue to look for ways to deploy our capital in a manner that enhances long-term shareholder value.”
Market cap: $66.96 billion; current share price: $95.99
A molecular diagnostics testing company, Danaher’s subsidy,Cepheid, aims to enable medical providers to identify and treat diseases early. The company’s GeneXpert systems can deliver faster, more accurate results to improve patient outcomes, operational efficiencies and also reduce the cost of care. Their GeneXpert I is a fully integrated and automated single module molecular diagnostic system.
Danaher had a strong 13.5 percent increase of net earnings to $2.5 billion for the fiscal 2017. Thomas Joyce, president and CEO said in the release he anticipates 2018 to be another strong year with the company’s huge portfolio, built largely from M&As.
Fulgent Genetics (NASDAQ:FLGT)
Market cap: $76.82 million; current share price: $4.31
Fulgent Genetics develops a wide range of affordable genetic tests to provide physicians with clinically actionable diagnostic information. The information is expected to help the quality of patient care and building a genetic reference library—bigger than their any of the company’s competitors—while maintaining accuracy, accessible pricing and turnaround time.
The company had a significant, 27 percent revenue drop in its Q4 2017 earnings, but is they’re expected to launch a new somatic-based cancer test into the genetic cancer testing market later this year.
Market cap: $33.01 billion; current share price: $224.54
This global leader in DNA sequencing has a broad genetic-based healthcare focus; Illumina has huge range of genetic tests for cancer, reproductive health, complex disease, and more. The company intends to improve human health by unlocking the power of the genome through their tests.
In 2017 2017, Illumina had a 15 percent increase in revenue to $2,752 million and a 26 percent revenue growth in their Q4 2017 year over year. The company projects a 13-14 percent revenue growth in 2018.
Interpace Diagnostics (NASDAQ:IDXG)
Market cap: $26.04 million; current share price: $0.96
Similar to like Cepheid, Interpace Diagnostics is focused on molecular diagnostic tests. The company’s tests deliver cutting-edge and much-needed mutational analysis that helps risk-stratify for thyroid, pancreatic and other types of cancer enabling patients and their care providers to make more informed treatment decisions. Interpace aims to improve patient care through personalized medicine and molecular diagnostic testing.
The company’s profits should continue to grow as insurance companies are able to cover the costs of the tests, making them accessible to a bigger audience. The largest health plan in New Jersey, Horizon Blue Cross Blue Shield of New Jersey agreed to cover costs of both of Interpace’s molecular-based thyroid tests.
Myriad Genetics (NASDAQ:MYGN)
Market cap: $2.22 billion; current share price: $31.80
Focused on developing innovative diagnostics tests to improve human health, Myriad Genetics is focused on six key areas: oncology, preventative care, urology, dermatology, autoimmune, and neuroscience. Myriad’s genetic tests are used to understand and diagnose diseases, and identify carriers and inherited predispositions for genetic diseases—also taking a angle at genetic specific cancer.
Myriad’s Prolaris genetic testing—specifically with prostate cancer patients—was able to discover that more than 12 percent of men with prostate cancer carry an inherited genetic mutation. Revenue for the Prolaris testing alone increased 61 percent year over year for its fiscal Q2 of 2018.
Market cap: $7.39 billion; current share price: $32.65
Qiagen aims to provide patients and health care providers with efficient and reliable diagnoses based on clinical value. The company’s molecular diagnostics is focused on three main areas: oncology, tuberculosis management and women’s health. The company’s GeneReader Next generation sequencing technology helps to identify the genetic variants that are most meaningful to research.
The US Centers for Disease Control announced in February that it now requires blood-based testing for tuberculosis screening, which may give extra sales to Qiagen. The center previously only required skin tests such as the company’s own QFT-Plus test. “It is currently estimated that 93% of the TB disease in the U.S. comes from the 13 million-person reservoir of latent TB infections, which primarily occurs through migration from higher burden countries,” said Dr. Masae Kawamura, Senior Director, TB Medical and Scientific Affairs, at QIAGEN.
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Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.