Looking to invest in genetic testing? Or learn more about the companies involved? Here are 6 genetic testing stocks to consider.
The genetic testing market could be worth over US$22 billion by 2024, according to Global Market Insights.
What has made this area of genetics research so compelling is that genetics testing enables 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.
To help inform investors of what genetic testing companies are out there, the Investing News Network (INN) has compiled a list of top genetic testing stocks based on InvestSnip’s molecular diagnostic list. The list includes companies which develop, manufacture and market diagnostic and genetic tests, systems and more.
It’s clear the companies on this list have a growing or steady revenue stream to accompany its product line full of genetic tests.
Companies chosen for the list are distinguished by market cap, with all numbers and figures current as of market close on November 15, 2018, with data compiled from INN’s stock information. Companies on this list have market caps above US$500 million with all prices quoted in US dollars.
1. Exact Sciences (NASDAQ:EXAS)
Market cap: $8.46 billion; current share price: $68.87
First on our top genetic testing stocks list is Exact Sciences, which focuses on molecular diagnostic tests. With an oncology focus, its tests detect some of the most life-threatening cancers. The company’s only product is the Cologuard, which was approved in April 2014 to screen patients for colorectal cancer.
It is recommended by the American Cancer Society for colorectal cancer screening. Exact Sciences has increased patient access to the device with no out-of-pocket cost for top five commercial health can plans in the US. In Q3 2018, the company announced a 63 percent increase in revenue from the device to $118 million.
2. Myriad Genetics (NASDAQ:MYGN)
Market cap: $2.32 billion; current share price: $31
Focused on developing innovative diagnostics tests to improve human health, Myriad Genetics is centered 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.
Many of Myriad’s products work in combination to diagnosis patients to use genetic-specific drugs for Big Pharma companies. Announced in Q4 2018, Myriad received US Food and Drug Administration (FDA) approval for the BRACAnalysis CDx as a diagnostic test for Pfizer’s (NYSE:PFE) drug TALZENNA.
3. Genomic Health (NASDAQ:GHDX)
Market cap: $2.85 billion; current share price: $78.89
Epic sciences is also focused on oncology tests to determine the best personalized treatment options available. On a more advanced level, its No Cell Left Behind technology matches patients to therapies and monitors for drug resistance.
The company announced Medicare coverage for its Oncotype DX AR-V7 nucleus detect test, which will support expansion and availability. The test was developed from multiple studies and is the only liquid biopsy test that could potentially lengthen the lifespan of men with advanced prostate cancer.
4. Natera (NASDAQ:NTRA)
Market cap: $994.12 million; current share price: $16.08
Differentiated by other genetic testing stocks on this list, Natera has developed cell-free DNA tests. The company’s testing services range from care for pregnant women, research for biopharmaceutical companies and genetic laboratories.
Some of the research for said companies includes a partnership with Neon Therapeutics (NASDAQ:NTGN). The two companies will use Natera’s Signatera, a circulating tumor DNA assay, as a biomarker to measure the response rate to Neon’s drug NEO-PV-01.
5. Invitae (NYSE:NVTA)
Market cap: $962.56; current share price: $12.90
With a similar goal to other companies on this list, Invitae seeks to bring genetic testing to healthcare to revolutionize the overall quality of the industry. The company claims to be one of the fastest growing genetics companies.
Its Q3 2018 financial results didn’t disappoint either, the company reported 106 percent revenue growth, driven by 95 percent growth in volume from the quarter. Gross profits from the quarter were $16.9 million, which represented a $5 million growth from the same quarter of the previous year.
6. Veracyte (NASDAQ:VCYT)
Market cap: $561.06 million; current share price: $13.84
Last on our top genetics testing stocks is Veracyte, another leader in genomic diagnostic testing. The company has three genomic tests in its line of products for thyroid cancer, lung cancer and idiopathic pulmonary fibrosis.
In Q3 2018, Veracyte reported a 35 percent increase in revenue from $17.5 million to $23.5 million. Cost of revenue, research and development and selling and marketing expenses also increased to accommodate higher sales.
Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.