Looking to invest in genetic testing? Or learn more about the companies involved? Here are four 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, 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 Acumen Research and Consulting projects that 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.
Top genetic testing stocks
To inform investors of what genetic testing stocks 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 18, 2020. The companies on this top genetic testing stocks list all have market caps above US$1 billion.
1. Exact Sciences (NASDAQ:EXAS)
Market cap: US$12.95 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.
2. Natera (NASDAQ:NTRA)
Market cap: US$3.57 billion
Like others on this list, Natera is a genetic testing and diagnostics company. A key area of focus for Natera is developing non-invasive ways 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 (NASDAQ:NVTA)
Market cap: US$2.21 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, genetic 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.
4. Veracyte (NASDAQ:VCYT)
Market cap: US$1.28 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.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.