Investing in biotech companies certainly comes with its fair share of risk, as oftentimes a company can work on something for years and never deliver positive results. On the other hand, if you own a biotech company that receives FDA approval or positive results from a clinical trial it can send the share prices up into the stratosphere. That’s why it pays to do your homework about the specific type of treatments or therapeutics that a company is working on before you decide to invest. One area in the biotech realm called genomics is particularly attractive, as the science behind genomics has the potential to improve our health in so many different ways.
A genome is an organism’s complete set of DNA, including all of its genes, and many believe that genome editing could potentially unlock the secrets to curing deadly diseases and even expanding human lifespans. Companies involved in genomics are essentially working on genome editing systems that can alter or modify the DNA of a cell or organism. Many of them don’t currently generate revenue and are a long way from receiving approval for this type of therapy, but there is immense upside that could make adding shares worth it.
If you can stomach the risk and are interested in this exciting technology, keep reading below for a quick look at 3 genomics stocks to consider buying now.
CRISPR Therapeutics AG (NASDAQ:CRSP)
This Swiss-based gene-editing company is one of the top names in genomics for a reason. CRISPR Therapeutics was founded by one of the co-discovers of CRISPR technology, which is the primary way that companies in the genomics industry develop their therapies. The company’s CRISPR/Cas9 gene-editing platform essentially cuts genomes and slices up DNA to treat genetic diseases.
At the moment, CRISPR Therapeutics is hard at work developing its lead pipeline candidate CTX001, which could be a breakthrough treatment for transfusion-dependent beta thalassemia or severe sickle cell disease. It’s also worth noting that CRISPR can leverage its groundbreaking platform to create therapies for cancer, diabetes, and other serious diseases.
Intellia Therapeutics (NASDAQ:NTLA)
Starting a position in Intellia Therapeutics after the recent news that sent shares soaring over 96% is not for everyone, but if your risk tolerance is high it’s clearly one of the stop genomics names to consider adding. The company recently announced landmark clinical data that showed a deep reduction in disease-causing protein after a single infusion of an investigational CRISPR therapy. The news marked the first-ever clinical data supporting the safety and efficacy of in vivo CRISPR genome editing in humans.
This is a great reminder of how quickly a biotech stock can take off to the upside after positive Phase 1 trial news. The next steps for Intellia are to continue studying experimental CRISPR therapy and present additional data at a medical conference at a later date. Perhaps what is most impressive about the stock at this time is that the company announced a secondary offering of shares after its monster move up and is still heading higher, which is a great indicator of just how bullish the sentiment is for genomics companies at this time. If the stock can hold on to most of its gains from this week it would be a good sign that the entire genomics sector is possibly heading higher.
ARKK Genomics ETF (NYSEARCA:ARKG)
Since these types of stock can be extremely volatile, perhaps adding shares of Cathie Wood’s ARKK Genomics ETF is a safer way to add exposure to this burgeoning area of biotech. The actively-managed ETF is focused on companies that are using scientific developments and advancements in genomics to enhance the quality of human life. That means investors can gain exposure to companies involved with CRISPR, targeted therapeutics, stem cells, agricultural biology, and more through this fund.
ARKK Genomics ETF includes names like Twist Bioscience, CRISPR Therapeutics, Intellia Therapeutics, as well as more established biotech names like Bristol-Meyers Squibb and Regeneron Pharmaceuticals. With that diversified blend of biotech and genomics stocks, you don’t have to take as much risk to capitalize on the big moves in the industry. While the fund is down on the year, it’s poised for strong performance if the rally in genomics stocks has legs.
Featured Article: Trading on Margin
Once again it appears that the death of brick and mortar retail appears to be exaggerated. First-quarter earnings are showing that many retailers that rely on in-person traffic for a considerable chunk of their business are seeing a rebound in sales. And many are planning to open stores in 2021.
This isn’t to say that e-commerce is going away. In fact, a common feature for many of these stocks is that they either developed or enhanced their digital footprint during the pandemic.
This special presentation focuses on retailers that are planning to add to their brick-and-mortar footprint in 2021. And some are planning to do so by a substantial margin. Once again, this doesn’t signal a transformative shift in the overall trend, but it does mean that for the foreseeable future, brick and mortar will have some relevance.