Looking to invest in genetic testing companies? Here are five genetic testing stocks to consider.
Genetic testing stocks are getting a lot of investor attention. But what is genetic testing?
Genetic testing can identify changes in chromosomes, genes or proteins. In a medical context, the results of a genetic test can confirm or rule out a suspected genetic condition or help determine a patient’s chances of developing or passing on a certain genetic disorder.
There are currently thousands of genetic tests, with more being developed.
According to the US National Library of Medicine, genetic test types include: molecular genetic tests, which look at genes and short lengths of DNA to pinpoint mutations that result in genetic disorders; 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.
The genetic testing industry 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 Global Market Insights projects that the global industry will be worth around US$31.9 billion by 2027, representing a compound annual growth rate of 11.6 percent between 2020 and 2027.
Top genetic testing stocks
The Investing News Network has compiled a list of the top genetic testing stocks with market caps between US$2.5 billion and US$20 billion based on data compiled from TradingView’s stock screener on May 24, 2021. This top genetic testing stocks list includes firms that develop, manufacture and market diagnostic and genetic tests and systems.
1. Exact Sciences (NASDAQ:EXAS)
Market cap: US$18.83 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. Coleguard is geared towards patients over the age of 50 who have an average risk of colorectal cancer. Exact Sciences’ technology portfolio also includes the Oncotype DX test for breast cancer recurrence.
2. Natera (NASDAQ:NTRA)
Market cap: US$7.67 billion
Natera is a genetic testing and diagnostics company developing non-invasive methods for analyzing DNA. Over the last 10 years, it 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.
3. Invitae (NYSE:NVTA)
Market cap: US$5.73 billion
Invitae is a genetics information company that pushes for the use of genetic testing and data to create personalized medicine, treatments that are more specific and preventative procedures.
The firm specializes in genetic diagnostics and has a vast portfolio that includes software tools, laboratory processes, genetic testing and analysis. 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.
4. NeoGenomics (NASDAQ:NEO)
Market cap: US$4.63 billion
NeoGenomics is a leading provider of cancer genetics diagnostic testing and global oncology contract research services. The company’s operations include two segments, Clinical Services and Pharma Services, across a network of cancer-focused testing laboratories in the US, Europe and Asia.
In May 2021, NeoGenomics announced the acquisition of Inivata, a global commercial-stage liquid biopsy platform company headquartered in Cambridge, England. Inivata’s InVision platform reveals key genomic information for cancer patient care from a simple blood test.
5. Veracyte (NASDAQ:VCYT)
Market cap: US$2.54 billion
Last on the list is Veracyte, which is a genomic diagnostics company that combines 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 to diagnose thyroid cancer, lung cancer and idiopathic pulmonary fibrosis.
This is an updated version of an article first published by the Investing News Network in 2018.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.