The growth in genetic testing market can be attributed to factors like rise in incidence of genetic disorders, cancer and technological breakthroughs. Last year, sales were $394 million, up 18%, including U.S. revenue of $335 million ($299 million of which were sales of its Oncotype DX Breast Recurrence Score test). Whether its first earnings reports in the new year will herald a reckoning is anyone's guess. However, technological advances are making long-read sequencing a viable option as well. Gene therapies developed by these biotechnology companies may seek to shut off (or knock down) a gene's production of a gene, sidestep the mutation causing the genetic disease, or edit the gene to restore normal protein production. It also offers genetic testing for a handful of hereditary cancers and other disorders. Roche is a player in this field, too -- in 2018, it paid $2.4 billion to acquire Foundation Medicine after the FDA approved Foundation'sÂ comprehensive genetic screening test for cancer. A San Diego-based genetics company, Illumina, received the FDA's Emergency Use Authorization for its revolutionary type of COVID-19 testing. But you can still buy shares of companies for whom genetic screening is more of a specialty, including Myriad Genetics (NASDAQ:MYGN), Genomic Health (NASDAQ:GHDX), InvitaeÂ (NYSE:NVTA), and Guardant Health (NASDAQ:GH). Myriad Genetics' roots are in testing for hereditary forms of cancer, such as breast cancer and ovarian cancer caused by a mutation in the BRCA gene. Cumulative Growth of a $10,000 Investment in Stock Advisor, eliminateÂ the need for a lifetime of transfusions, it paid $2.4 billion to acquire Foundation Medicine, offer low-cost comprehensive genetic screening to everyone, Copyright, Trademark and Patent Information. Learn how to invest in marijuana stocks â¦ In February 2019, Roche announced it was acquiring Spark Therapeutics for $4.8 billion.Â Spark won FDA approval for Luxturna, a gene therapy for a rare cause of blindness, in December 2017. Seattle Genetics is first on â¦ Stock Advisor launched in February of 2002. The prospect of using our DNA to inform healthcare decisions is so significant that new players are flocking to this emerging industry all the time. In 2018, its sales eclipsed $3.3 billion, up from $2.7 billion in 2017, and in 2019, ongoing growth has management targeting sales of about $3.8 billion. Yescarta's sales were $284 million in 2018, including $81 million in the fourth quarter.Â. Market data powered by FactSet and Web Financial Group. The market reacted to their every peep, and there's a good chance that several of these stocks will have another bumper crop year in 2021. In 2003, Todd founded E.B. Gilead Sciences acquired Yescarta when it bought Kite Pharma for $11.9 billion in 2017. For example, long-read makes sense for complex organisms with little reference data, while short-read is best for analysis of DNA fragments. That led to sharply lower stock prices on Monday in nearly every industry, including genetic testing. There's more to the company than its coronavirus tests, however. Our genetic code contains everything we inherited from our parents and all the traits we'll pass along to our children. Between the complexity of the science and the demands of the clinical trials and regulatory approval process, it's also quite risky -- but the rewards can be immense. In fiscal 2018, Myriad's revenue totaled $773 million. Its liquid biopsy is already winning converts. A gene is essentially a building block of hereditary material. DNA contains four chemical building blocks, or bases, that always bond to the same partner in what's called a base pair. In mid-December, it announced that the government had taken an interest in developing a DNA-encoded monoclonal antibody therapy for COVID-19 using the company's technology. Up 1,000% in 2020, Is Co-Diagnostics Stock Still a Buy? Furthermore, Co-Diagnostics is moving quickly to develop new genetic tests that can detect viral mutations for the laboratory research market, ensuring that it will stay relevant through next year and beyond. A recent clinical update showed that its candidate might not be as protective as the other mRNA vaccines that are already approved for sale. There are various practical uses for gene sequencing, including research, drug development, biomarker analysis for treatment decisions, and determining ancestry. Furthermore, both companies have substantial gene therapy research programs underway that could result in future FDA approvals for other forms of cancer in the coming years. Arcturus Therapeutics (NASDAQ:ARCT) surged nearly 300% in 2020 by advancing its mRNA-based coronavirus vaccine program, which should enter phase 2 of its clinical trials in the first quarter of 2021. Investors should also keep an eye on progress being made in gene editing. To spot genetic mutations, researchers must sequence, or screen, a person's genetic material and then compare it to a baseline. Stock Advisor launched in February of 2002. Luxturna restores vision by using a deactivatedÂ virus to deliver a normal copy of a missing gene, RPE65,Â directly to cells in the retina.Â The acquisition also landed Roche a promising gene therapy for hemophilia A, SPK-8011, which attempts to restore production of a critical missing clotting factor that otherwise leaves patients exposed to the risk of uncontrollable bleeding. Genetics is a high tech, research-intensive business. Hereditary cancer tests accounted for almost 100% of revenue in 2013; however, they've fallen to about 25% of revenue in 2018 as more tests have been introduced, including GeneSight, a test for determining the best drugs for patients with depression, and prenatal screening tests for genetic disorders. So, the real question is: What management will choose to spend the windfall on? Intellia Therapeutics (NTLA) Intellia Therapeutics (NASDAQ:NTLA) is also working on a â¦ The traditional genetic testing market is growing in volume and growing in the breadth of tests creating a new life for the industry. Further investment in expanding its market penetration with these products will help to keep the company's momentum next year and beyond. We're already seeing collaborations that cut across these individual market segments, such as Grail, a company spun out of Illumina that's using gene sequencing to develop next-generation cancer tests that could catch disease at its earliest stage. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. To inspect the performance of the Genetic Testing Stocks portfolio, see the chart below. But the program wrapped up in 2003, when 99% of the genome was sequenced, at a total cost of $2.7 billion. Others, like its cytomegalovirus vaccine, may not make a big splash. Since these companies may wind up competing more aggressively with one another in the future, investors will want to keep close tabs on this market. There are about 700 gene therapies under development in roughly 1,800 clinical trials, about 500 of which are in the middle or late stages, according to Informa Pharma Intelligence's Trialtrove database.Â Most gene therapies target cancer, but they're also being developed for cardiovascular disease and infectious disease. ET on InvestorPlace.com Cannabis Stock Gainers And â¦ (Illumina also a foothold in long-read sequencing through its acquisition ofÂ Pacific BioSciences of California (NASDAQ:PACB), which was announced in 2018.). Todd has provided insight to a variety of publications, including SmartMoney, Barron's, and CNN/fn. Gene-sequencing companies: These companies market systems to researchers that can be used to sequence genes using short- or long-read technology. It also offers genetic testing for a handful of hereditary cancers and â¦ There's every indication that its vaccine will be a big moneymaker, potentially to the tune of $32 billion in 2021. Interestingly, its co-founder and executive chairman is Randy Scott, who was also the founderÂ of Genomic Health. Still, its coronavirus programs need to be proven definitively in clinical trials next year if its stock is to grow any further, and doubts remain about the viability of its DNA-based vaccines. Genetic Testing Companies Step In Privately held companies like 23andMe and Ancestry.com popularized genotyping, a method of looking for genetic differences in a â¦ But you can still buy shares of companies for whom genetic screening is more of a specialty, including Myriad Genetics (NASDAQ:MYGN), Genomic Health (NASDAQ:GHDX), Invitae â¦ Many genetics companies spent the year working on the projects that might become their first sources of revenue. The human genome was first sequenced by the U.S. government's Human Genome Project, which was announced in 1988 and funded by Congress in 1990. Thermo Fisher doesn't break out exactly how much money its sequencers contribute to its top line, butÂ its life sciences revenue increased 9% to $6.27 billion in 2018, accounting for 26% of the company's $24.4 billion in total sales. In addition to taking longer and costing more than short-read sequencing, it's also historically more error-prone. OverÂ 18 million cancer patients were diagnosed worldwide in 2018, and since understanding how genes contribute to disease is critical to better outcomes, each of these genetic screening stocks could have a long runway of success ahead of it. Shares of NeoGenomics (NASDAQ: NEO) fell nearly 15%, while shares of Exact â¦ Yet another way to invest in gene sequencing is to focus on the companies providing genetic screening tests for research trials or to inform doctors on how best to treat their patients.Â. Invitae was spun out of Genomic Health in 2012. There's reason to be excited about Inovio moving forward, too. The short-read sequencers used in the human genome project generated about 500 to 800 base pairs per run, so when repeats exceeded that size, gaps were left -- which is why the project was declared complete after 99%, rather than 100%, of the genome was sequenced. Sales jumped 117% year over year to $148 million in 2018, and in 2019, it's targeting revenue ofÂ $220 million. The company launched its latest gene-sequencing system, the Ion GeneStudio S5 Series next-generation sequencing system, in 2018, and it's a good bet that Thermo Fisher owns most of the remaining 25% market share not controlled by Illumina.Â. Today, the most common approach to short-read sequencing is sequencing by synthesis (SBS)Â biochemistry. As a DNA chain is copied, SBS tracks the addition of labeled nucleotides, allowing large genomes to be sequenced in a few days. Agilent Technologies, established in 1999 is one of the worldâs leading â¦ Our ability to treat health problems has historically been hamstrung by an incomplete understanding of the role our own genes play in the process. Capital Markets, LLC, a research firm providing action oriented ideas to professional investors. Trials are ongoing.Â Celgene has alsoÂ licensed rights to two CAR-Ts -- bb2121 and bb21217 -- developed by bluebird bio for use in multiple myeloma, a bone marrow cancer. As the gene-testing â¦ Seattle Genetics (NASDAQ:SGEN) Market cap: US$26.12 billion. Like Moderna, Inovio's pipeline also has a smattering of lesser-known vaccines in development, none of which garnered the market's attention very much. If you're interested in investing, the only thing to do at the moment is to watch for clinical trial updates to see how its core project is advancing. Celgene's gene therapy program stems from its $9 billion acquisition of Juno Therapeutics in 2018. Once the U.S. government's vaccine accelerator program invested in Inovio, it quickly entered the spotlight. Genetic testing is soaring, and so are these stocks, writes Michael Brush. During the past year, biotech stocks, as represented by the iShares Nasdaq Biotechnology ETF , have posted a total return of 23.5% compared to the Russell 1000's total â¦ In 2017, the U.S. Food and Drug Administration (FDA)Â approved the first two chimeric antigen T-cell receptor (CAR-T) gene therapiesÂ for fighting cancer. Here's what you need to know about the industry, how it's changing, andÂ the top gene-sequencing stocks worth owning. RNA can be ribosomal RNA (rRNA), which makes a specific protein; messenger RNA (mRNA), which delivers instructions on how to build a protein; or transfer RNA (tRNA), which transports the raw material necessary for making a protein. Some of these applications are better suited to short- or long-read sequencing. Check out Benzinga's best marijuana penny stocks for 2021: updated daily. Market data powered by FactSet and Web Financial Group. Single-strand RNA copies of DNA tasked with making proteins are usually made without a hitch, but sometimes the genetic instructions for making a protein are incorrect because of mutations. Using inactivated viruses from Regenxbio, Zolgensma inserts a gene that restores the production of a missing protein. The outlook for demand for machines and consumables used by them appears very good for these companies. Short-read technology remains the fastest and cheapest form of gene sequencing, so it'sÂ still the most commonly used approach. They also sell consumables that are used each time a gene sequence is done. Like many biotech companies, it doesn't have any products on the market or any recurring revenue to speak of. In the future, we may see more blurring of the lines separating gene-sequencing system manufacturers like Illumina, drug developers like Novartis, and genetic services companies like Guardant. Technological limits at the time made fragmenting and reassembly necessary, but this sequencing approach is unable to sequence complex genes, including those with particularly long repeats of genetic code. If management can execute on its goal of making genetic screening accessible to everybody, then that could only be the tip of the iceberg. But, the early signs don't look good. The number of people diagnosed with cancer is increasing because of a larger, longer-living population, and that suggests the need for genetic screening enabled by gene sequencing is heading higher. Over 250 companies are conducting this research, up from fewer than 70 in 2014. All 7 stocks are included in the portfolio computations. Ambry is committed to delivering accurate genetic test results for hereditary cancer. These broad types of diagnostic testing have the largest share of the genetics market, which also includes prenatal tests, tests to see how a person will respond to certain drugs and targeted tests for specific genetic conditions. Illumina estimates less than 0.1% of species, 0.02% of humans, and 1% of human variants have been genetically sequenced so far. Investors can take heart in the fact that with just over $307 million in cash, Arcturus has enough gas in the tank to explore a few options for boosting the vaccine's efficacy. Initially, the project's goal was to sequence the entire human genome by 2005 at a cost of $3 billion. We research and write about tech companies and stocks religiously, but weâve learned the hard way that trying to cherry-pick winning stocks â¦ There are about 3 billion base pairs containing instructions necessary for human existence, and there are anÂ estimated 30,000 genes, each responsible for making an average of three proteins. Selling coronavirus diagnostic tests is big business, as shown by the 990% rise of Co-Diagnostics (NASDAQ:CODX) this year. Multiple myeloma isn't the only indication bluebird bio is targeting, either. Thanks to hot demand for its coronavirus diagnostic products, Fulgent Genetics (NASDAQ:FLGT) grew by 280% in 2020, and its management increased its full-year revenue guidance by $100 million in November. For example, it's already filed for European approval ofÂ LentiGlobin, a gene therapy for transfusion-dependent Î²-thalassemia, an inherited blood disease that can result in severe anemia.Â LentiGlobin could eliminateÂ the need for a lifetime of transfusions by inserting a functional human beta-globin gene into the DNA of a patient's blood stem cells.Â Studies are also evaluating LentiGlobin's potential in sickle cell disease, a life-threatening blood disorder.Â. Some of those tests â¦ The current value of the portfolio assumes that $1,428.57 was invested (total of $10,000) in each stock â¦ Why Co-Diagnostics Stock Is Getting Clobbered Today, Copyright, Trademark and Patent Information. Investors should look forward to another great year in 2021, with the caveat that it'll be tough to grow nearly as quickly as it did this year now that the testing market is significantly more crowded with competitors. But advances in the accuracy, speed, and cost of genetic sequencing have led to breakthroughs that could only be imagined a few years ago -- and that's creating exciting opportunities for researchers and investors alike.Â. Here are four such stocks investors might want to keep an eye on: Among all the recent progresses related to COVID-19 testing kits, not only the United States but the entire world is â¦ Thermo Fisher Scientific is no slouch, either. Some are already making good on their potential. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. That number is expected to grow to 100 million by 2021. Inovio Pharmaceuticals (NASDAQ:INO) grew by 173% this year thanks to its coronavirus vaccine program. However, not all gene-sequencing stocks are likely to be winners. 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