In this article, we will discuss the 5 best genomics stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Genomics Stocks to Buy Now.
5. CRISPR Therapeutics AG (NASDAQ:CRSP)
Number of Hedge Fund Holders: 43
CRISPR Therapeutics AG (NASDAQ:CRSP) is a Swiss-American biotech company that is home to the CRISPR/Cas9 gene-editing technology that is working on treating cancer, diabetes, hemoglobinopathies, and other diseases.
CTX110 is a wholly-owned allogeneic CAR-T cell therapy aimed towards the treatment of CD19+ B-cell malignancies. The therapeutic has received the Regenerative Medicine Advanced Therapy (RMAT) status from the US FDA. This is similar to Breakthrough Therapy status. This recognition helps in receiving more intense guidance on research and development (R&D) and faster review of the marketing application.
CRISPR Therapeutics AG (NASDAQ:CRSP) along with its partner ViaCyte received approval from the Canadian health regulator to move ahead with the dosing of VCTX210 for type-I diabetes patients, who need daily shots of insulin to maintain their glucose level.
Following this development, in a research note issued on November 16, Joon Lee at Truist highlighted that there is “ample proof of principle” that the cell replacement therapy of CRISPR Therapeutics AG’s (NASDAQ:CRSP) VCTX210 is bordering on functional cure along with durability in the fight against diabetes. The analyst highlights the key concern related to the accessibility of cell replacement therapy to eight million patients suffering from diabetes in the US, who require a daily dose of insulin. Joon Lee is bullish on CRISPR Therapeutics AG (NASDAQ:CRSP) stock with a $220 price target and a Buy rating.
Of the 867 hedge funds tracked by Insider Monkey, 43 hedge funds held a stake in CRISPR Therapeutics AG (NASDAQ:CRSP) at the end of Q3 2021, up from 34 in the second quarter.
4. Exact Sciences Corporation (NASDAQ:EXAS)
Number of Hedge Fund Holders: 40
Exact Sciences Corporation (NASDAQ:EXAS) is a Madison, Wisconsin-based company that has invented the Cologuard home testing kit for the detection of colon cancer through DNA screening tests. The company also has Oncotype IQ in its portfolio, which is aimed towards diagnosing breast, colon, and prostate cancer through gene expression testing.
On November 3, ARK investment bought nearly 643,600 shares in Exact Sciences Corporation (NASDAQ:EXAS). ARK, under the leadership of Cathie Wood, manages numerous exchange-traded funds (ETFs) with a focus on investing in disruptive technologies. Meanwhile, Mark Massaro at BTIG maintained a Buy rating on Exact Sciences Corporation (NASDAQ:EXAS) stock with a $120 target price. The analyst is optimistic on Exact Sciences Corporation (NASDAQ:EXAS) stock due to the growth potential of the Cologuard platform, which has reached just 6% of the market and the management has a target of 40% market penetration in the long run.
Artisan Partners mentioned Exact Sciences Corporation (NASDAQ:EXAS) in its Q3 2021 investor letter. Here’s what the investment management firm said:
“In addition to trimming our positions in Atlassian, Global Payments and BioNTech, we also pared our exposure to Exact Sciences. Shares have underperformed as Cologuard’s reacceleration has not lived up to expectations. Generally, physicians’ offices are still restricting access to field sales representatives, and the delta variant is leading to another wave of delayed wellness/primary care visits. We believe inperson access to doctors for sales representatives—key to Cologuard’s growth—may remain limited for some time. Meanwhile, the company’s pipeline of new cancer diagnostics, while promising, is still several years away from contributing financially. We reduced our position size to fund investments with clearer near-to-intermediate term outlooks.”
3. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 44
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a $69 billion biotechnology company, which is making a foray into genetic sequencing through Regeneron Genetics Center. Furthermore, the Westchester County, New York-based company has its proprietary technologies, which uses genetically humanized mice to produce fully human antibodies. On the traditional front, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) has a blockbuster eye-care therapy in the form of Eylea. Furthermore, the company’s COVID-19 antibody therapy, REGEN-COV received $2.94 billion from the US government to produce 1.4 million doses. The antibody therapy is effective in all the known strains of COVID-19 now. Phase-III research has shown that administering REGN-COV can reduce the probability of hospitalization or death by 70%.
Evan Seigerman at BMO Capital terms the track record of Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) as the best amongst the large-cap biotech stocks in his research note that was published on November 18. This further strengthens the thesis regarding the shift towards the genetic sequencing and analysis element along with testing and diagnosis. The analyst has also highlighted the “compelling” valuation that undervalues the revenue growth potential with an Outperform rating on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) stock and a $780 price target.
Oakmark Funds shared its stance on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) in its Q2 2021 investor letter. Here’s what the investment management firm said:
“We restored Regeneron Pharmaceuticals from a rather trivial to a more normal position size. You may recall Regeneron performed well for the Fund during the Covid-19 crisis, so we significantly reduced our position as its price-value gap narrowed. During the past several quarters, however, the market has experienced the now infamous “reopening trade,” in which companies that performed well during the pandemic trailed as the economy reopened. Regeneron suffered a similar fate and its shares have lagged the S&P 500 by roughly 4000 basis points, despite the company’s strong fundamentals and robust pipeline of new products. The underperformance widened Regeneron’s price-value gap, so we restored it to a more normal position size.”
2. Intellia Therapeutics, Inc. (NASDAQ:NTLA)
Number of Hedge Fund Holders: 37
Intellia Therapeutics, Inc. (NASDAQ:NTLA) is involved in developing genome editing capabilities to cure diseases by leveraging the CRISPR/Cas9 technology. The Cambridge, Massachusetts-based company is applying two methodologies. The first approach is an in-vivo program, which uses CRISPR injected intravenously to edit particular genes that are the root cause of the disease. Meanwhile, under the ex-vivo program, CRISPR is used to create the therapeutic by manipulating the human cells to aid in the cure of cancers and autoimmune diseases.
NTLA-2001 is the lead candidate for Intellia Therapeutics, Inc. (NASDAQ:NTLA) targeted towards the treatment of transthyretin amyloidosis (ATTR). The medication has received orphan drug status from the US Food and Drug Administration (FDA). Furthermore, Intellia Therapeutics, Inc. (NASDAQ:NTLA) has announced that the UK Medicines and Healthcare products Regulatory Agency (MHRA) has given the go-ahead to expand to bring in patients from amyloidosis cardiomyopathy (ATTR-CM). This is a positive development because 200,000 to 500,000 patients are suffering from ATTR-CM as opposed to only 50,000 patients suffering from ATTR.
Furthermore, Intellia Therapeutics, Inc. (NASDAQ:NTLA) has received approval from the New Zeeland and the UK regulatory authorities regarding the first-in-human trial of NTLA-2002, which is an in-vivo therapeutic targeted towards the treatment of hereditary angioedema. Meanwhile, in the US, the drug is in the dose-escalation and expansion stage of the Phase I/II trial. In a research note that came out on November 16, Tony Butler at Roth Capital anticipates Intellia Therapeutics, Inc. (NASDAQ:NTLA) to induct 55 patients into the study and also highlighted these catalysts as the basis for a Buy rating with a $180 target price.
Carillon Tower Advisers discussed its stance on Intellia Therapeutics, Inc. (NASDAQ:NTLA) in its Q2 2021 investor letter.
“Intellia Therapeutics is a clinical-stage genome editing company focused on the development of proprietary, potentially curative therapeutics. The company’s stock soared after announcing positive interim data from an ongoing phase 1 clinical study of its in vivo gene editing candidate, which is being developed as a single-dose treatment for hereditary transthyretin (ATTR) amyloidosis. This specific form of therapy would be the first of its kind resulting in the precision editing of a gene in a target tissue in the human body.”
1. Illumina, Inc. (NASDAQ:ILMN)
Number of Hedge Fund Holders: 55
Illumina, Inc. (NASDAQ:ILMN) is the top company in the genetic sequencing and analysis sub-industry with a market value of $58 billion. The San Diego, California-based company has 7,300 customers, who own 17,000 DNA testing and sequencing machines. The production, selling, and distribution of these machines is only one aspect of the business. Illumina, Inc. (NASDAQ:ILMN) is involved in the disposal of consumables, which is responsible for more than 50% of the top line.
Back in August, Illumina, Inc. (NASDAQ:ILMN) announced the acquisition of GRAIL for $4.5 billion in stock and $3.5 billion in cash. GRAIL is a healthcare company working on the early detection of cancers. However, Illumina, Inc. (NASDAQ:ILMN) will maintain GRAIL as a separate entity until the go-ahead from the European regulators. The Court of Justice of the European (EU) will hear the claims of Illumina challenging the jurisdiction of the European Commission (EC) on the acquisition of GRAIL.
Regarding the acquisition of GRAIL, Kyle Mikson at Canaccord commented on August 31st that although the acquisition will be dilutive for the next several years, it will be net positive for Illumina, Inc. (NASDAQ:ILMN) as there is growth potential in GRAIL. However, the deal will face short-term uncertainty due to opposition from the regulators. The analyst has given a Buy rating to Illumina, Inc. (NASDAQ:ILMN) stock with a price target of $555, reflecting a potential upside of over 49% from the current stock price.
In its Q3 2021 investor letter, Ensemble Capital mentioned Illumina, Inc. (NASDAQ:ILMN). Here’s what the investment management firm said:
“Illumina: While the stock has had quite the turbulent year so far, the company’s fundamentals have been persistently improving as demand for its sequencing instruments and consumables continues to grow in a robust manner with estimated revenue growth over 30% in 2021, after a decline of 9% in 2020. The growth is being spurred by increasing use of sequencing in applications spanning cancer treatment and screening, prenatal testing, population health studies, and tracking new Coronavirus variants. However, its recent acquisition of GRAIL, which Illumina had previously founded and spun out for development, has presented legal challenges from the competition monitoring authorities in the US and EU. GRAIL has recently begun commercializing the only non-invasive 50 cancer screening test leveraging Illumina’s gene sequencing technology which we believe will be immensely beneficial in finding and treating cancers early and will be very valuable for shareholders in the long term given the large market opportunity. Despite the opportunity ahead, the uncertainty around GRAIL caused the stock to sell off by 13% in the third quarter, but the stock is still up 11% for the year.”
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