In this article, we will discuss: 10 Best Genomics Stocks To Buy Right Now.
Genomics is the study of genes and how they function. Many rapidly growing companies are emerging in the genomics field as technological advances substantially reduce the cost, accuracy, and time required to map a human being’s genome.
Investors in innovation, like Cathie Wood, the CEO of ARK Investment Management, believe that these developments are bringing about a “Genomic Revolution.” She stressed the potential of genomics and urged investors to see beyond conventional market benchmarks to seize revolutionary growth. On the eToro’s Digest & Invest podcast on October 21, 2024, Wood emphasized that concentrating only on the most prominent indexes may restrict exposure to ground-breaking innovation. She stated that reduced AI training costs have boosted genomics productivity, opening the door to important breakthroughs like gene editing that targets diseases. She is nevertheless optimistic about these stocks’ long-term worth, despite the present market reluctance and cash flow-driven tendencies made worse by ongoing high interest rates. According to Wood, avoiding this industry may result in missed opportunities as it progresses from development that relies heavily on investments to future profitability. She believes the market is changing and that early adopters will benefit from the convergence of genomics and AI.
Nonetheless, there have been encouraging breakthroughs from a number of genomic companies in 2024, and investors have seen financial rewards as the biotechnology sector of the broader market has risen by 29.33% since the beginning of the year.
According to Grand View Research, the global genomics market was estimated to be worth $32.65 billion in 2023 and is projected to grow at a compound annual growth rate of 16.5% between 2024 and 2030. Factors including the rising need for customized treatment, gene therapy, drug development, rising cancer rates, and a notable surge in consumer genomics demand in recent years are all contributing to the genomics market’s expansion. The pharmaceutical and biotechnology companies segment dominated the global genomic market in 2023, as per the aforementioned research. In terms of market share, North America held the biggest share in 2023 (42.65%), while Asia Pacific is anticipated to develop at the fastest rate during the forecast period.
The fields of gene editing and cell and gene therapies (CGTs) are also developing quickly. The UK approved Casgevy for sickle cell disease and β-thalassemia, pointing out the potential of CRISPR gene editing. According to Deloitte’s research report, the growing market for CGTs, from US$5.3 billion in 2022 to $19.9 billion in 2027, signals a shift towards customized advanced medicine despite high costs leading innovative business models. Furthermore, as per the report, GenAI can analyze a variety of information, such as clinical history, genomes, and social determinants of health, to produce deeper insights that have the potential to completely transform the way healthcare is delivered.
Looking forward, Chris Garabedian, CEO of Xontogeny and Venture portfolio manager at Perceptive Advisors, stated:
“I think 2024 will be a transition year, a little more carnage left and a clearing. There are signs of hope this year, and after the election and that uncertainty is behind us, I think we’re going to start to see 2025 look healthy.”
With that said, here are the 10 Best Genomics Stocks To Buy Right Now.
A scientist in a lab conducting research on cell-based therapeutics and biotechnology.
Methodology:
We sifted through holdings of Genomics ETFs and online rankings to form an initial list of 20 genomics stocks. Then we selected the 10 stocks that had the highest upside potential. The stocks are ranked in ascending order of the upside potential, as of November 14.
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10. Twist Bioscience Corporation (NASDAQ:TWST)
Upside potential as of November 14: 21.51%
Twist Bioscience Corporation (NASDAQ:TWST) is a synthetic biology company. It creates a revolutionary platform for DNA synthesis with the objective of industrializing biological engineering. Utilizing a proprietary semiconductor-based synthetic DNA manufacturing process, the company’s DNA synthesis platform synthesizes DNA on silicon rather than conventional, well-plastic plates, resulting in the faster and more economical production of high-quality synthetic DNA. It also overcomes inefficiencies and powers rapid, cost-effective, high-throughput synthesis, allowing researchers to seize opportunities quickly. Geographically, the United States accounts for the majority of company revenue.
Twist Bioscience Corporation (NASDAQ:TWST) has achieved great progress, launching new products, forming new collaborations, and securing crucial financial arrangements. On October 22, 2024, the company announced that it entered into a royalty purchase agreement with XOMA Royalty (NASDAQ: XOMA). As per the agreement, XOMA will give TWST $15 million in cash in exchange for half of the future milestone and royalty rights from ongoing service agreements with biopharmacies and antibody research.
The stock is attractive due to Twist Bioscience Corporation (NASDAQ:TWST)’s steady revenue growth and improved margins. The company’s Q3 2024 revenue of $81.5 million exceeded its guidance of around $77 million, with a 27.81% YoY growth. The orders came to $85.3 million, and the strong order volume helped the gross margin to reach 43.3%, above the predicted 41-42%. The stock has surged by over 18% this year so far.
On October 1, 2024, Evercore ISI kept its Outperform rating on Twist Bioscience Corporation (NASDAQ:TWST) and increased its price target from $52 to $56. According to Evercore, usage in MedTech is still up through Q3, and the capital expenditure prognosis for the upcoming year is still “healthy.” The analyst tells investors in MedTech and Tools Q3 preview that while bioprocess trends in life science tools are expected to improve in the second half, the focus of discussion is on the instrument outlook and China stimulus given the recent surge in the area’s stocks.
9. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Upside potential as of November 14: 35.36%
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) finds, creates, and markets drugs to combat inflammation, cancer, heart disease, and eye illness. Low-dose Eylea and Eylea HD, which are approved for wet age-related macular degeneration and other eye conditions; Dupixent, which is used in immunology; Praluent, which lowers LDL cholesterol; Libtayo, which is used in cancer; and Kevzara, which is used in rheumatoid arthritis, are among the company’s marketed products.
There are now about 40 product candidates in the company’s varied clinical portfolio, and numerous pivotal trials are in progress. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) has earlier-stage partnerships that contribute new technology to the pipeline, such as Crispr-based gene editing (Intellia) and RNA interference (Alnylam), and it is working independently and with Sanofi and other partners to produce monoclonal and bispecific antibodies.
The Regeneron Genetics Center is an AI-powered genetic research facility that uses one of the biggest genetic research databases in the world to help create novel treatments.
The third quarter 2024 financial report from Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) was impressive. The company was twice as successful in surpassing quarterly revenue and total earnings per share. Due to higher sales of its medications, revenue climbed by 11% year over year.
Baron Health Care Fund stated the following regarding Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its Q3 2024 investor letter:
“We purchased Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), a biopharmaceutical company that was built on a foundation in basic scientific research and antibody development. The company has successfully developed several blockbuster medicines, including Eylea and Eylea HD for retinal diseases (such as wet age-related macular degeneration, diabetic macular edema, and diabetic retinopathy) and Dupixent for immunological and inflammatory diseases (such as atopic dermatitis, asthma, and COPD). While Eylea is nearing the end of its patent life and faces potential biosimilar competition, the company has been transitioning patients to Eylea HD, which is a higher dose, longer-acting formulation of Eylea, and Dupixent is growing rapidly through indication expansion. Beyond the current product portfolio, Regeneron has an exciting new product pipeline with over 35 candidates in various stages of development, including a novel treatment for treating severe food allergy, a combination checkpoint inhibitor therapy for melanoma, lung cancer and other solid tumors, biospecific antibodies for blood cancers, and Factor XI antibodies for blood clot prevention, among others. Based on Regeneron’s track record of success discovering and developing new drugs, we are optimistic the pipeline will deliver some successes, which we think will drive upside in the stock.”
On November 15, 2024, Wolfe Research began covering Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) with a price objective of $1,150 and an Outperform rating. Concerns about Eylea patent lawsuits had driven Regeneron down from its peak, and the company believes that its share price is now at a “particularly attractive entry point, with “limited downside risk.” “Its bullish outlook is based on the belief that peer-leading growth, through either successful launches or defensive positioning, will be rewarded in 2025,” Wolfe continues.
8. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Upside potential as of November 14: 41.25%
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) focuses on treatments for rare diseases. Through their joint venture, Genzyme and BioMarin market Aldurazyme, while BioMarin sells Naglazyme, Vimizim, and Brineura on its own. Additionally, BioMarin sells Palynziq and Kuvan to treat PKU, a rare metabolic disorder. In 2021, VOXZOGO (vosoritide) received approval for achondroplasia. In 2022 and 2023, BioMarin’s Roctavian (a gene therapy for hemophilia A) received approval in Europe and the US, respectively.
It is challenging to avoid historical analogies with Genzyme (bought by Sanofi) as BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) builds a portfolio of genetic disease therapies. Despite having several authorized treatments, BioMarin spent years in the red due to commercialization and R&D costs, but analysts have faith in the long-term, profitable potential of its current line of drugs. BioMarin is in a strong position because of its extensive internal pipeline and capacity to add expansion through strategic acquisitions.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)’s third quarter of 2024 experienced revenues of $746 million, a 28% YoY growth primarily due to the robust VOXZOGO contributions from new patient beginnings across all markets. During the quarter, VOXZOGO’s revenue grew 54% year over year due to strong demand, while the portfolio’s revenues from enzyme therapies increased 27% year over year. In Q3 2024, the company generated $221 million in operating cash flows, a 63% increase YoY.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) reaffirmed its 2027 revenue objective of about $4 billion and increased its full-year 2024 outlook due to the high demand for enzyme treatments and VOXZOGO.
On November 15, 2024, Wolfe Research commenced coverage of BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) with an Outperform rating and a price target of $95. In a research note, the analyst informs investors that “there is a lot to like about shares at current levels,” citing the company’s new management, strong growth potential for lead asset Voxzogo, and its legacy Enzyme Replacement Therapy business, as well as the low downside risk following the recent share pullback.
