We recently compiled a list of the 10 Best Genomics Stocks To Buy Right Now. In this article, we are going to take a look at where Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) stands against the other genomics stocks.
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.”
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.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here)
A scientist in a laboratory making a breakthrough discovery in biotechnology.
Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)
Upside potential as of November 14: 64.11%
Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) is an industry leader in antisense technology for drug discovery and development. Cardiovascular, metabolic, neurological, and uncommon disorders are among the many ailments that are the focus of its extensive clinical and preclinical pipeline. Spinraza was introduced to the market by Ionis and partner Biogen in 2016 as a treatment for spinal muscular atrophy, a rare neuromuscular disorder. In 2023, Biogen introduced the ALS medication Qalsody. Through its cardiovascular-focused subsidiary Akcea, Ionis introduced two more medications to the market: Waylivra (Europe, 2019) and Tegsedi (2018), a medication for ATTR amyloidosis. In 2024, Ionis and AstraZeneca introduced Wainua, a medication for polyneuropathy.
As a pioneer in RNA-based treatments, Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)’ Spinraza, a medication for spinal muscular atrophy sold by partner Biogen, is the first to become a blockbuster. Gene editing and gene therapy pipelines at several companies, as well as RNA interference technologies from Alnylam, Arrowhead, and Novo Nordisk (Dicerna), pose a serious threat to the company’s antisense oligonucleotide, or ASO, technology. However, Ionis has created a vast pipeline of potential new medications that are quickly approaching the market.
The UK’s approval of eplontersen resulted in substantial financial gains and a favorable EMA opinion. Furthermore, a strong growth trajectory is suggested by the expected approval of olezarsen for familial chylomicronemia syndrome and the forthcoming data releases for several other medications in their late-stage trials.
Based on Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)’ recent advances and financial performance, Joseph Stringer rated it as a Buy on November 7. Even though the company’s total revenues were just less than Stringer’s own prediction, they nevertheless exceeded the mainstream projections. Ionis has also achieved great strides in its clinical pipeline, especially with the alignment on the design of the Phase 3 trial for its medicine ION582, which targets Angelman Syndrome and is anticipated to start in the first half of 2025.
Furthermore, by the end of 2024, Ionis expects significant future milestones, including the possible approval and introduction of Olezarsen in the treatment of familial chylomicronemia syndrome (FCS). The revised year-end cash estimate of $2.2 billion further demonstrates the company’s strong financial standing. Together, these factors support Stringer’s Buy recommendation for Ionis Pharmaceuticals, Inc. (NASDAQ:IONS).
Overall IONS ranks 2nd on our list of the best genomics stocks to buy. While we acknowledge the potential of the IONS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IONS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.