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, so what are the top genetic testing stocks?

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

Companies are listed in order of market cap size, with all numbers and figures current as of March 3, 2020. The companies on this genetic testing stocks list all have market caps above US$1 billion.

1. Seattle Genetics (NYSE:SGEN)

Market cap: US$18 billion

Seattle Genetics is first on our list of largest genetics stocks and describes itself as an “emerging multi-product, global biotechnology company.” This comparatively new firm develops and commercializes cancer-related therapies. Its flagship product is Adcetris, which is approved for the treatment of several types of CD30-expressing lymphomas, among other cancers.

The company’s areas of research include antibody-drug conjugate technology and sugar-engineered antibody technology. It has numerous products in its pipeline, and says it is focused on further expanding Adcetris, as well as addressing “significant unmet medical needs” through a new generation of targeted, empowered therapies.

2. Exact Sciences (NASDAQ:EXAS)

Market cap: US$9.38 billion

Exact Sciences focuses on molecular diagnostic tests. The company, which acquired Genomic Health towards the end of 2019, has developed a molecular screening technology platform called Coleguard, which detects a range of cancers, including breast cancer and 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 so that healthcare professionals can detect the disease. The Coleguard platform is geared towards patients over the age of 50 who have an average risk of colorectal cancer.

3. Natera (NASDAQ:NTRA)

Market cap: US$2.5 billion

Like others on this list, Natera is a genetics testing and diagnostics company. A key area of focus for Natera is developing non-invasive ways for analyzing DNA. Over the last 10 years, the company has introduced 10 molecular screening tests and runs thousands of genetic tests each month through its laboratory.

Natera’s areas of focus include women’s health via reproductive health, organ transplantation and cancer. Its genetic testing services, which use its cloud-based software platform, are aimed at educating biopharmaceutical company researchers and other healthcare professionals who test and treat pregnant women and genetic laboratories.

4. Invitae (NASDAQ:NVTA)

Market cap: US$1.6 billion

Invitae is a genetics information company that aims to push the field of medicine at large to use genetic testing and information to create personalized medicine, treatments that are more specific and preventative procedures.

The firm specializes in genetic diagnostics and has a vast portfolio that holds software tools, laboratory processes, genetics testing and analysis, to name a few. Invitae has diagnostic tests for hereditary cancer, metabolic disorders, genetic conditions, neurological and cardiovascular disorders, pediatric and developmental disorders, as well as miscarriage analysis and preimplantation and carrier screening for inherited disorders.

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$1.2 billion

Last on the list is Veracyte, which is a genomic diagnostics company combining advanced genomic technology, clinical science and machine learning into its products. The company claims this approach helps doctors and patients be informed of diagnosis and treatment options without the risk of surgery.

Veracyte was founded over a decade ago and, since then, has commercialized five genomic tests that are helping diagnose thyroid cancer, lung cancer and idiopathic pulmonary fibrosis.

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

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