6 Top Genetic Testing Stocks

- June 26th, 2019

Looking to invest in genetic testing? Or learn more about the companies involved? Here are six genetic testing stocks to consider.

Genetic testing is a way to identify how chromosomes, genes and proteins change, according to the US National Library of Medicine.

There are currently thousands of genetic tests, with more being developed.

As noted by the US National Library of Medicine, types of genetic tests include: molecular genetic tests, which look at genes and short lengths of DNA to pinpoint mutations that result in a genetic disorder; chromosomal genetic tests, which review the entire chromosome or long lengths of DNA to determine any major genetic changes; and biochemical genetic tests, which study how active protein levels are and examine irregularities that cause genetic disorders.

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By using these methods, genetics testing opens up access to personalized medicines for patients. For investors unfamiliar with the term, these medicines focus on prevention and early treatment of diseases rather than reacting to them at a later stage.

Looking at the market growth potential of genetic testing, a report from Acumen Research and Consulting projects the global industry will be worth around US$18 billion by 2026, representing a compound annual growth rate of 11 percent between 2019 and 2026.

To inform investors of what genetic testing companies are out there, the Investing News Network has compiled a list of the top genetic testing stocks based on data from InvestSnip’s molecular diagnostic list. The list includes firms that develop, manufacture and market diagnostic and genetic tests and systems.

Companies are listed in order of market cap size, with all numbers and figures current as of June 26, 2019. The companies on this genetic testing stocks list all have market caps above US$500 million.

1. Exact Sciences (NASDAQ:EXAS)

Market cap: US$14.49 billion

Exact Sciences focuses on molecular diagnostic tests. The company has developed a molecular screening technology platform called Coleguard, which detects a range of cancers, including colorectal cancer. 

A positive result from Coleguard can mean that colorectal cancer or advanced adenoma is present, which means a diagnostic colonoscopy should be done to detect the disease. The Coleguard platform is geared towards patients over the age of 50 who have an average risk of colorectal cancer.

2. Genomic Health (NASDAQ:GHDX)

Market cap: US$2 billion

Like Exact Sciences, Genomic Health is focused on developing oncology tests to determine the best personalized treatment options available. The company’s genome testing targets the problems of overtreatment and optimal treatment of the early stages of cancer.

The company’s Oncotype IQ Genomic Intelligence Platform contains a portfolio of genomic tests such as its Oncotype IQ DX gene expression tests, which have been used to assist with medical treatment decisions for more than 1 million patients. The company is looking to expand its test portfolio to include the Oncotype DX AR-V7 Nucleus Detect test, which is geared towards determining the benefits of androgen receptor-targeted drugs in men with late-stage metastatic castration-resistant prostate cancer.

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3. Myriad Genetics (NASDAQ:MYGN)

Market cap: US$1.95 billion

Focused on developing innovative diagnostic tests to improve human health, Myriad Genetics is centered on six key disease areas: oncology, preventative care, urology, dermatology, autoimmune and neuroscience. Myriad’s genetic tests are used to understand and diagnose diseases, and to identify carriers and inherited predispositions for genetic diseases.

Many of Myriad’s products work in combination to diagnose patients. The company’s products in development target ailments like breast cancer, inherited health conditions, depression, hereditary cancers, melanoma, prostate cancer and rheumatoid arthritis.

4. Invitae (NYSE:NVTA)

Market cap: US$1.81 billion

With similar goals to other companies on this list, Invitae seeks to bring genetic testing to healthcare to revolutionize the overall quality of the industry. Invitae claims to be one of the fastest-growing genetics companies.

5. Natera (NASDAQ:NTRA)

Market cap:US$1.76 billion

Differentiated from the other genetic testing stocks on this list, Natera has developed cell-free DNA tests. The company’s primary area of focus is areas of women’s reproductive health, in addition to oncology and organ transplants. 

The company has products for advanced carrier screening, preimplantation genetics, miscarriage testing, newborn stem cell banking, molecular monitoring and transplant assessment.

6. Veracyte (NASDAQ:VCYT)

Market cap: US$1.07 billion

Last on our top genetics testing stocks list is Veracyte, another genomic diagnostic testing company. Veracyte has three genomic tests in its line of products for thyroid cancer, lung cancer and idiopathic pulmonary fibrosis.

The company’s technology uses RNA sequencing to obtain gene expression, DNA variants, RNA fusions, mitochrondrial DNA content and loss of heterozygosity. Veracyte obtains these feature sets through minimally invasive procedures.

Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.

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