In this article, we will discuss the 5 Biggest Genomics Companies In The World. If you want to read our analysis of the genomics market, you can head on to the 12 Biggest Genomics Companies In The World.
5. Intellia Therapeutics, Inc. (NASDAQ:NTLA)
Market Capitalization: $3.95 billion
Number of Hedge Fund Holders: 27
Intellia Therapeutics, Inc. (NASDAQ:NTLA) is a pioneer in the genome editing industry and has contributed to the discovery and development of CRISPR/Cas9 platform. It is capitalizing on its modular platform to bring about development in curative in vivo and Ex vivo treatments which have largely been neglected. The company is also running a program to develop Ex vivo treatments to counter auto-immune diseases.
On October 11, 2022, Terence Flynn, an analyst at Morgan Stanley, started coverage of Intellia Therapeutics, Inc. (NASDAQ:NTLA) with an Overweight rating and a price target of $84 on the company’s stock. In a research note to investors, the analyst stated that the company is one of the leading genome editing companies in the world and also the pioneer in the field. The analyst stated that the company has demonstrated its capability to turn off a gene and awaits data from the NTLA-3001 study, which has the potential to open up a bigger opportunity for the company.
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.
At the end of the second quarter, 27 hedge funds in Insider Monkey database were bullish on the company. ARK Investment Management had an investment value of over $439 million in the company at the end of Q2 2022, making it the biggest stakeholder of the company.
4. CRISPR Therapeutics AG (NASDAQ:CRSP)
Market Capitalization: $4.10 billion
Number of Hedge Fund Holders: 25
Incorporated in 2013, CRISPR Therapeutics AG (NASDAQ:CRSP) produces radical gene-based medicines to treat serious diseases through its proprietary gene editing technology called the CRISPR/Cas9 platform. The firm’s diverse portfolio of therapeutics serves a vast array of diseases across four key franchises: hemoglobinopathies, immuno-oncology, regenerative medicine, and rare diseases. Headquartered in Zug, Switzerland, the company has its operation network across Switzerland, the US, and the UK.
On August 09, 2022, Benjamin Burnett, an analyst at Stifel, increased his target price to $69 from $55. The analyst believes that the approval of exa-cel in SCD and beta-thalassemia is likely; however, he remains cautious about the company’s gen CAR-T programs, which is why he keeps a Hold rating on the stock.
As per Insider Monkey database, 25 hedge funds remained bullish on the company’s stock at the end of Q2 2022. ARK Investment Management held the highest stake in the company during Q2 2022, with an investment value of over $564 million.
3. Natera, Inc. (NASDAQ: NTRA)
Market Capitalization: $4.56 billion
Number of Hedge Fund Holders: 39
Based in Austin, Texas, Natera, Inc. (NASDAQ: NTRA) is a global provider of cell-free DNA (cfDNA) testing services with more than 100 peer-reviewed research publications. The company has a dedicated commercial team and undertakes persistent research and development efforts to attain expansion in a sizable, underpenetrated market. It has an employee base of 2,670 individuals.
On October 27, 2022, David Westenberg, an analyst at Piper Sandler, named Natera, Inc. (NASDAQ: NTRA) as his best stock in minimal residual disease. The investor stated in a research note that Natera, Inc. (NASDAQ: NTRA) has plenty of room for growth, with the TAM of minimal residual disease market increasing to over $10 billion recently. The analyst stated that the market is growing rapidly and is expected to reach $93 billion by 2027, and Natera, Inc. (NASDAQ: NTRA) boasts a first-mover advantage and is well-positioned to increase its market share.
Here is what Baron Global Advantage Fund has to say about Natera, Inc. (NASDAQ:NTRA) in its Q1 2022 investor letter:
Natera, Inc. is a leader in non-invasive prenatal testing whose proprietary technology has also been applied to cancer recurrence detection. Shares dropped 67% during the quarter on disappointing quarterly results and a short report alleging aggressive sales practices. We sold our shares as the inflection point to profitability will take longer to materialize, resulting in heavier cash burn rates than we originally expected.
39 hedge funds were long on the company’s stock at the end of the second quarter, according to Insider Monkey database. Holocene Advisors was the biggest stakeholder of the company at the end of Q2 2022, with a holding of 2,983,154 shares.
2. Exact Sciences Corporation (NASDAQ:EXAS)
Market Capitalization: $6.00 billion
Number of Hedge Fund Holders: 28
Founded in 1995, Exact Sciences Corporation (NASDAQ:EXAS) is a key provider of cancer screening and diagnostic testing covering the top 15 leading lethal cancers. Its product portfolio encompasses any cancer patient’s journey from the point of detection through monitoring and treatment. The company operates as a single business unit with an employee base of 6,580 employees.
On October 19, 2022, Alex Nowak, an analyst at Craig-Hallum, reduced his price target on Exact Sciences Corporation (NASDAQ:EXAS) to $35. The analyst believes that the shares of Exact Sciences Corporation (NASDAQ:EXAS) remain under pressure as its rival is soon expected to announce the results of its study of a blood-based colorectal cancer screening test. Any positive results of the study would cause a downside in Exact Sciences Corporation (NASDAQ:EXAS) stock.
Here is what RiverPark Large Growth Fund has to say about Exact Sciences Corporation (NASDAQ:EXAS) in its Q4 2021 investor letter:
Exact Sciences: EXAS shares declined on a disappointing recovery in Cologuard screening due to COVID. Despite continued revenue growth from Precision Oncology and COVID testing, and Cologuard screening revenue growth of 30%, COVID restrictions limited access to physicians’ offices for the company’s and its Pfizer Joint Venture sales force as well as causing a severe drop off of in-person wellness visits.
In the last year, Exact has also pivoted the company significantly from its single cancer screening tests (Cologuard for colon cancer and Oncotype for breast cancer) to multi-cancer screening through its Thrive acquisition, and to minimal residual disease and recurrence monitoring through its Ashion and Tardis acquisitions. Through this pivot, Exact has tripled its market opportunity from $20 billion to $60 billion.
As per Insider Monkey database, 28 hedge funds remained bullish on Exact Sciences Corporation (NASDAQ:EXAS) at the end of the second quarter. With 14,971,765 stocks, ARK Investment Management remained the fund with the biggest holder of the company’s shares.
1. Illumina, Inc. (NASDAQ:ILMN)
Market Capitalization: $37.33 billion
Number of Hedge Fund Holders: 44
Incorporated in 1998 and headquartered in San Diego, Illumina, Inc. (NASDAQ:ILMN) is a global biotechnology company that develops unique sequencing and array-based solutions for genomic analysis. Its products serve customers across a wide range of industries. The company’s distribution footprint extends across North America, Latina America, Europe, and the Asia Pacific region.
On October 11, 2022, Jasper Hellweg, an analyst at Argus, reduced his target price on Illumina, Inc. (NASDAQ:ILMN) to $250. The analyst currently keeps a Buy rating on the stock and stated in a research note that the stock has fallen significantly over the past year as investors became concerned with slowing revenue. However, the company recently introduced a series of sequencers that are capable of providing significantly better throughput compared to earlier generations.
Here is what Harding Loevner specifically said about Illumina, Inc. (NASDAQ:ILMN) in its Q2 2022 investor letter:
Illumina, Inc. (NASDAQ:ILMN) enjoys an enviable recurring revenue model; sales of proprietary machinery bring customers onto its platform, but higher-margin consumables and services represent 80% of sales. The nature of the genetic sequencing business is such that as the cost of sequencing falls, demand increases because myriad new applications—from large population health studies to advanced areas of research such as single-cell analysis, proteomics, and spatial biology—become economically viable. Illumina has sustained strong earnings growth by using its technology and unmatched scale to keep its costs of production below those of its competitors while also capturing the lion’s share of increased volumes. Over the past five years, the company has grown revenues at a 14% annualized rate and generated US$3.5 billion cumulatively in free cash flow.
Now, though, the business is suffering fallout from its controversial decision last summer to acquire GRAIL, a groundbreaking Illumina-incubated startup, over antitrust objections from US and European regulators. Few have questioned GRAIL’s potential. The firm makes an early-detection diagnostic test capable of recognizing circulating tumor DNA long before a patient might exhibit symptoms of cancer. Even with the test’s current high rate of false positive results, a function of the limited data currently available on which its AI has been trained to make predictions, its future market opportunity is significant. The issue is whether Illumina will get to reap the benefit of the US$8 billion acquisition. The fact that this is a vertical merger could help Illumina prevail in its antitrust fight, but we acknowledge the possibility that it will be forced to spin off or sell GRAIL, possibly at a much lower valuation.
On an unrelated front, Illumina also appeared to face a pair of credible new rivals when the venture-funded firms Ultima and Element Biosciences separately announced competing technologies that, on paper at least, are more cost effective than those currently employed by Illumina. Some industry observers have seized on this incipient threat to question whether Illumina has somehow let its guard down in not pushing the price of sequencing even lower, and therefore left an opening for the new entrants to the marketplace. We see little evidence of that hypothesis (the price of sequencing over the past five years has declined at 20% a year) and, moreover, have questions whether the challengers’ claims are quite what they seem. The companies have produced a small run of prototype machines and published data claiming a lower cost of put-through. Will those economics hold up in the move into full-scale production? It’s hard to know. What is known is that when customers purchase and operate large-scale sequencing equipment, numerous ancillary costs and services are also involved. Illumina’s incumbency confers a huge installed base of instruments and informatic software—while the challengers will be starting from scratch… (Click here to read the full text)
Select Equity Group remained the biggest stakeholder of the company, with an investment value of $267 million in Illumina, Inc. (NASDAQ:ILMN) at the end of the second quarter. As per Insider Monkey database, 44 funds remained bullish on the company at the end of Q2 2022.
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