Looking to invest in genetic testing companies? Here are five large-cap genetic testing stocks listed on US exchanges 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. Unsurprisingly, 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 growth potential of genetic testing, a report from Precedence Research projects that the global industry will be worth around US$15.8 billion by 2030, up from US$8 billion in 2021, representing a CAGR of 17.6 percent between 2021 and 2030.
Top genetic testing stocks
With that positive outlook in mind, the Investing News Network has compiled a list of NYSE and NASDAQ genetic testing stocks with market caps between US$2.5 billion and US$20 billion. The list includes firms that develop, manufacture and market diagnostic and genetic tests and systems, and data was gathered using TradingView’s stock screener on November 14, 2022.
Market cap: US$18.95 billion
Hologic's Breast Cancer Index is a molecular gene expression-based test that helps to inform physicians' treatment decisions for patients with early stage, hormone-receptive breast cancer in order to rule out unnecessary treatment options that may have significant side effects and safety challenges. This laboratory-developed test is the only validated, commercially available test that predicts the likelihood of benefit from extended endocrine therapy, according to the company.
Market cap: US$13.68 billion
Next up on this genetic testing stocks list is global life science firm Bio-Techne, which develops, manufactures and sells life science reagents, diagnostic instruments and bioprocessing services for research and clinical applications, including drug discovery. The global life science firm's family of brands includes R&D Systems, ProteinSimple and Novus Biologicals.
Bio-Techne generated approximately US$1.1 billion in net sales in its 2022 fiscal year. In October 2022, the company announced the addition of new automated co-detection assays to its Advanced Cell Diagnostics-branded RNAscope in situ hybridization portfolio. These assays are specifically designed for Roche's (OTC Pink:RHHBY,SWX:ROG) Discovery Ultra Platform, allowing for the simultaneous detection of RNA and protein on the same tissue section.
Market cap: US$12.89 billion
Bio-Rad Laboratories develops, manufactures and markets specialized life science technology for research and clinical diagnostics markets. The company's portfolio of products include instruments, software, consumables, reagents and content for a wide range of life science market segments, including cell biology, gene expression, protein quantitation and drug discovery and manufacturing.
Bio-Rad acquired Curiosity Diagnostics in August 2022 for US$170 million. Curiosity Diagnostics is working to develop a sample-to-answer, rapid diagnostics PCR system for the molecular diagnostics market. “Curiosity’s PCR platform, PCR|ONE, offers a streamlined workflow and rapid turnaround times, and is expected to extend our reach beyond high-complexity labs into near-patient molecular diagnostics labs,” said Dara Wright, Bio-Rad’s executive vice president and president of clinical diagnostics group.
Market cap: US$10.93 billion
Netherlands-based life science company Qiagen provides sampling and assay technologies for molecular diagnostics, applied testing and academic and pharmaceutical research with a focus on the building blocks of life: RNA, DNA and proteins.
Qiagen recently partnered with early stage biotech company Neuron23, which develops precision medicines for genetically defined neurological and immunological diseases. The two will work together to develop a companion diagnostic for Neuron23’s brain-penetrant, leucine-rich repeat kinase inhibitor for Parkinson’s disease.
Market cap: US$8.1 billion
Exact Sciences focuses on molecular diagnostic tests. The company, which acquired Genomic Health in 2019, has developed a molecular screening technology platform called Coleguard. Coleguard 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.
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.