Jun 07, 2022 15:25
The globe is now confronted with a new COVID-19 variation that is even more contagious than the Delta form. The year 2020 was a turning point in global health, as the whole planet battled a single virus with much difficulty.
Despite the tragedy and continuing uncertainty, the COVID-19 pandemic offers a number of new scientific prospects for responding to this disaster. In addition to the very speedy generation of vaccinations, genome sequencing is a key accomplishment. When it comes to controlling the epidemic, sequencing aided in the quick detection of SARS-CoV-2 and the development of diagnostic tests and other instruments. In fact, consistent genome sequencing facilitates the tracking of the virus's propagation and evolution.
As novel variations continue to emerge, genomic data has enabled nations to swiftly make educated judgments about public health. Against the backdrop of pandemic-induced obstacles, the rising demand for genome sequencing will make this sector an enticing investment opportunity.
Genome sequencing involves determining the underlying sequence of DNA. This long, arduous, and prohibitively expensive procedure has finally reached a tipping point and is becoming economically feasible. While the field of genomics dates back to the early 1900s, it did not begin to develop until the 1950s, and in the last few years alone, we've made enormous strides in genetic research with the help of new technologies; and all of these advancements are leading to more precise identification of genetic mutations, which enables more effective disease prevention. The following are common uses of genome sequencing:
Rare Diseases Testing
Genome editing companies provide investors who can tolerate the inherent risks of emerging healthcare technology an attractive growth opportunity.
Companies specializing in genetic sequencing are the driving force behind the science of genomics and an integral part of genetic research and genetic testing. Due to technological improvements, sequencing is becoming less expensive, quicker, and more precise. Sequencing volumes continue to expand in both scientific and clinical applications, with whole-genome sequencing, cancer diagnostics, and recurrence monitoring as the primary drivers.
The America Rescue Plan of 2021 allocated $1.75 billion to assist genetic sequencing and monitoring projects at the Centers for Disease Control and Prevention. Although enhancing national surveillance is essential for governments to take prompt action, the turnaround time from sample collection to sequence analysis must be quick, and the data must be conveniently matched with patient records. Local sequencing is important for this to be accomplished efficiently. States have received substantial funding to create these sequencing initiatives.
Intriguingly, the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 provided an additional $19.1 billion to states to bolster laboratory testing by expanding the use of SARS-CoV-2 genomic sequencing and molecular epidemiology to assist state, local, and territorial health departments in establishing the capacity for COVID-19 mitigation activities, such as enhancing the capacity to detect and investigate cases and conducting contact tracing.
As the epidemic proceeds, new virus varieties seem to be emerging from all directions. It is now evident that the use of genome sequencing may be consolidated and expanded into new contexts and applications. In order for the global health community to be better prepared for future dangers, it is essential that genome sequencing be more thoroughly integrated into its operations.
In the absence of sequencing, public health officials will be uninformed of viral changes that might reduce the effectiveness of existing response measures, such as diagnostics and vaccinations, among others. Sequencing may aid in performing more effective case investigations, such as tracking viral ancestry, transmission, and rate of evolution, in addition to facilitating the implementation of informed public health measures.
In addition, genome sequencing may provide a method for measuring the efficacy of public health responses in real-time and adjusting appropriately. Sequencing has produced information that has enabled the rapid production of vaccination boosters that are effective against new strains.
That is a challenging question to address. Any of these investments have the potential to provide exponential profits over the next few decades.
Base editing and gene editing are in their earliest stages. However, Intellia's effective In Vivo therapy is a significant first step on the correct path.
As the genes are handed down from generation to generation, understanding how and why genetic illnesses function as they do will rely heavily on genome sequencing.
Even more, sectors are emerging in the subject of genetics that we haven't mentioned, such as synthetic biology, which produces synthetic DNA via made bio-organisms, and other wonderful kinds of technology.
The genetic material from which humans are produced has a long biological history. As the field develops, the probability of enhancing the quality of human existence increases. Over 6,000 genetic illnesses are estimated to exist, some of which are life-threatening or at the very least very disabling.
According to Britannica, 10 percent of the world population is considered to have some type of genetic illness, and this puts the current population between 700 and 800 million individuals.
Gene editing and gene therapy are at the forefront of contemporary biotechnology. Gene therapies are used to rectify genetic disorders by introducing genetic material at the cellular level and often include the addition of a functional copy of a gene. The cutting-edge science of gene editing seeks to directly modify the genome as a therapeutic method.
10x Genomics (TXG) is an early-stage genomics tools firm providing solutions to investigate biological systems at very high resolution and on a huge scale. Its market capitalization is $16.6 billion.
Nearly all of the top 100 worldwide research institutes and top 20 global pharmaceutical firms utilize 10x's products to produce significant cancer, immunology, and neuroscience discoveries.
Chromium and Visium instruments, consumables, and software comprise the company's product line. These genetic testing technologies allow scientists to assess biology at the greatest degree of precision, such as at the level of a single cell or with a high spatial resolution of tissues and organs.
The majority of the company's income comes from academic markets, although it also serves government, biopharma, and biotech clients. Consumables play a significant role (over 80% of revenue) and assist in smoothing out volatility in instrument sales, as they do for many firms in the sequencing industry.
Analysts are largely bullish on 10x Genomics' stock, citing the company's twin emphasis on an inexpensive single cell (Chromium) and spatial (Visium) biology platforms as providing a long runway for expansion. Visium is a relatively new platform that has had a successful debut.
Adaptive Biotechnologies (ADPT) is now a leader in the market for immune-driven pharmaceuticals, which is nearing $50 billion, spanning research ($1 billion), diagnostics ($16 billion), and drug development ($31 billion). The company's market capitalization is $5.7 billion.
Adaptive has created a platform that identifies the genetic code of the body's adaptive immune system. The platform sequences T-cell receptors (TCR) and B-cell receptors (BCR), maps receptors to antigens, links receptor chains, and discovers possible therapy-relevant drug candidates.
The present emphasis is on the creation of products for the diagnosis, treatment, and monitoring of illnesses, such as some malignancies, Lyme disease, and COVID-19. ClonoSEQ, which is utilized to identify and monitor minimum residual disease (MRD) in bone marrow from patients with multiple myeloma, B cell acute lymphoblastic leukemia (ALL), and lymphoblastic leukemia, is one of Adaptive's numerous growth areas (CLL). In 2021, the number of treated patients was projected to double.
In addition, Adaptive has just released the T-Detect COVID-19 test, which may confirm previous COVID infections by analyzing T-cells. In 2021, T-Detect Lyme and testing for Crohn's and Celiac disease were planned.
Lastly, in medication development, the business is collaborating with Genentech on a TCR candidate that may be effective against several solid cancers. It is also collaborating with Amgen to create therapeutic antibodies to cure or prevent certain COVID-19 strains.
Agilent Technologies (A, $65.19) is a non-pure gene sequencing investment. In actuality, it is a large, fairly complex corporation that operates in several areas, including diagnostics, pharmaceuticals, academic/government, food energy, and the environment. Together, the lab services and laboratory equipment businesses account for about 83% of the company's total income.
The Diagnostics and Genomics Group (DGG) competes in Agilent's fastest-growing end markets, which are increasing at an average rate of 3 to 5 percent, compared to DGG's growth rate of 5 to 7 percent. Agilent has been able to increase its genomics business by an average of 8 percent each year since 2015 while boosting its operating margins from 9 percent to 23 percent as of October 31 of the 2018 fiscal year.
Agilent has shown proficiency in exploiting mergers and acquisitions to strengthen its company, including its genomics division. In April 2018, Agilent acquired Lasergen for $105 million, two years after acquiring a 48% share in the firm. Lasergen expands Agilent's access to the worldwide molecular diagnostics industry via procedures used to assess genomic biological markers.
As its name indicates, Genomic Health (GHDX, $59.89) is a leader in genetic testing. After spending substantially on its goods, salesforce, and worldwide growth for many years, the firm attained profitability in 2017. And as the firm utilizes the infrastructure it has developed, and the market for genetic testing expands, the conditions for expansion are favorable.
The exclusive emphasis on Genomic Health is in the oncology sector. According to the company's investor presentation, the tests, which vary in price from $4,000 to $4,500, "clearly identify who does and does not benefit from chemotherapy." This resulted in a savings of around $5 billion for the U.S. healthcare system in 2017, which drives insurance coverage prices for its trademark Oncotype DX suite of tests for breast, colon, and prostate cancers. Oncotype testing is covered for around 90 percent of insured individuals.
Internationally, the possibility might be considerably greater. According to company estimates, approximately 220 million people are insured in its current markets, including Canada, the United Kingdom, France, and Spain. This number will rise to 490 million by 2020 and beyond as a result of greater insurance coverage and entry into new markets, such as Japan, Italy, and Germany.
In the previous five years, revenue growth has been moderate, increasing from $263 million in 2013 to $350 million in 2017. Profitability was reached in 2017 on an "adjusted basis," but it's even better than the firm has been profitable through the first nine months of 2018 without any accounting gimmicks. Genomic Health may capitalize on all of the genomics prospects in the next year.
Analysts at CFRA anticipate that the company's investments in its salesforce, foreign development, and new genetics section will continue the company's earnings growth.
Myriad Genetics (MYGN, $28.64) provides goods in the specialty of customized medicine, which is expanding. Myriad's diagnostics tools assist customers in understanding their likelihood of contracting a certain illness and in choosing which treatment choices may be most successful.
Myriad has a robust cancer testing business with a reputation for precision and a big database of variations, which enables the firm to retain premium pricing. Assisting patients with locating the best effective antidepressant medicine may provide Myriad with an even greater business potential. While the cancer diagnostic industry is around $4 billion with 1.5 million patients, the antidepressant market is nearly 2.5 times bigger with 8 million people.
GeneSight, a tailored genetic testing service offered by Myriad, has received favorable reimbursement coverage from insurers due to the expected savings of roughly $3,300 for people utilizing its tests. In addition, it is a significant step towards broadening its product offering. Myriad's sales and profitability have been flat to slightly negative since 2014. Nonetheless, as its product variety and reimbursement coverage continue to expand, the stock is primed for growth.
Pacific Biosciences of California, which develops and manufactures systems for gene sequencing, is a second great choice in the genomics market at this moment. Pacific Biosciences has developed a novel technology platform known as single-molecule, real-time (SMRT) technology, which allows the real-time study of biomolecules with single-molecule resolution and might revolutionize our understanding of biological systems. This technology is appealing to hospitals, pharmaceutical companies, and research organizations because of its precision in decoding DNA.
Already off to a fantastic start in 2021, Pacific Biosciences of California stock is up 39 percent year-to-date. It is a firm partnering with clients interested in clinical research and the potential diagnostic use of its sequencing technology, which might provide a substantial growth opportunity. For instance, the business is cooperating with Children's Mercy Kansas City to sequence instances of uncommon diseases and with the previously mentioned Invitae to enhance epilepsy diagnostic tests. PacBio even collaborates with Labcorp to get a deeper understanding of the immunological response to COVID-19. PacBio is a revolutionary startup in the genomics industry that is currently doing very well in 2021.
Personalis (PSNL) is a cancer genomics firm that provides next-generation sequencing (NGS) technology and data analysis services to promote the development of tailored cancer vaccines and immunotherapies. It also facilitates population sequencing programs with sequencing and data analysis. Its market capitalization is $1.1 billion.
Customers of genomic cancer services are mostly pharmaceutical and biotechnology firms, colleges, and non-profit organizations. The U.S and the Department of Veterans Affairs are in charge of population sequencing efforts for clients (VA).
This company's value stems from its patented ImmunoID NeXT Platform, which offers clients complicated genetic information from both tissue and liquid biopsy samples. Based on individual test costs ranging between $2,840 and $4,000, Personalis is aiming for a market worth around $40 billion, and its primary markets are the United States and Europe.
Personalis could perform well since the need for genetic data in immuno-oncology, and cancer treatment development is expanding. The potential of liquid biopsy is particularly enticing even though the firm is in its infancy and has encountered difficulties because of the COVID-19 epidemic. The pipeline of additional medicines and an expected volume increase post-COVID augur well for the second half of 2021 and beyond.
After acquiring Life Technologies in 2014, Thermo Fisher Scientific became a major gene sequencing leader. Last year, Thermo Fisher earned almost $2 billion on sales of $18.3 billion. Last year, the biosciences solutions business sector, which includes the company's gene-sequencing products, accounted for around 28 percent of overall sales.
The purchase of Life Technologies adds the Ion Torrent sequencing equipment to Thermo Fisher's product portfolio, and the business reports that Ion Torrent system adoption is robust. Thermo Fisher also sells the genetic analyzer SeqStudio, which uses Sanger sequencing, an older type of DNA sequencing.
Analysts predict that Thermo Fisher's profits will increase by roughly 11 percent yearly during the next few years. The business anticipates a 12 percent to 15 percent rise in its adjusted profits per share, aided in part by robust possibilities in the Asia-Pacific area.
Vertex Pharmaceuticals creates small molecule anti-inflammatory and cystic fibrosis treatments. In 2021, pending regulatory clearance, Vertex purchased the rights to sixty percent of the earnings from sales of CRISPR Therapeutics' gene-editing medicine CTX001 for up to $1.1 billion. Vertex signed a new $1.2 billion partnership with Arbor Biotechnologies in August 2021 to utilize Arbor's gene-editing technology to create therapeutics. In October, Vertex announced yet another partnership with Mammoth Biosciences Inc. for up to $691 million to research gene-editing medicines using Mammoth's ultra-small CRISPR technologies. According to Meacham, the most significant development for Vertex in 2022 will be regulatory submissions for the treatment of sickle cell disease and transfusion-dependent beta-thalassemia, a kind of genetic blood illness. The March 4 closing price for VRTX stock was $238.66, and Bank of America has a "buy" rating and a $275 price target.
Gene sequencing is unquestionably the future of medicine and healthcare. The procedures that have previously been conducted successfully are light-years ahead of any other medical therapy in human history. Picking the winners will be tough, but study and dedication will help you determine which firms will flourish and which will go away.
Jun 06, 2022 17:21
Jun 07, 2022 15:54