In this piece, we will take a look at the 12 most promising gene editing stocks according to hedge funds. If you want to skip our take on how the gene editing industry sits right at the top of the global innovation food chain, then you can take a look at the 5 Most Promising Gene Editing Stocks.
In the old days, alchemists were described as chemists who could turn lead into gold. A process undoubtedly perceived as magic, it offered dreamers a chance to untold riches by simply converting a low value metal into a high value asset. While modern day technology has still to convert anything into gold, it has also provided us with a slew of technologies that can comfortably lay the claim to being magical.
One such technology is the ability to manipulate genes. Genes are the 'software code' of the human body and they determine how tall we are, what color our eyes are, and when we'll start to lose our hair. At the same time, in a rather cruel demonstration of the human condition, they also determine if someone will get a deadly disease. Genetic disorders are some of the most debilitating diseases known to humans. Some examples of these diseases are Sickle Cell Disease, Huntington's Disease, and Brugada Syndrome. Among these, Sickle Cell Disease prevents patients, including children, from living their lives fully as their body cannot transport oxygen internally to lead to healthy functioning. People who suffer from Huntington's Disease target the human mind, making brain cells called neurons break down. If a sufficient number of neurons are significantly damaged, then patients, either children or adults, lose their ability to normally function.
Additionally, genetic diseases and their patients suffer from the additional complication of a lack of treatment options. Viral and bacterial infections such as the coronavirus or pneumonia can be treated by medicine that targets the invading pathogens. However, genetic diseases result from 'bugs' in the human body's software, so unless portions of this software are rewritten, the disease continues to wreak havoc. This re coding is at the heart of the genomic editing industry, and within its ambit is genetic engineering, a science that introduces new genetic material into the body.
This industry's potential also makes it quite lucrative. For instance, market research shows that the global genomics industry was worth $27.58 billion in 2021 and is slated to grow at a compounded annual growth rate (CAGR) of 18.2% until 2026 for a final value of $63.5 billion. If you're interested in knowing more about genomics, which is pure play gene editing, then you can check out 12 Best Genomics Stocks To Buy Now.
Shifting gears to see what's happening in the gene editing industry, the market is booming. In fact, December 2023 might be one of the most important months in the gene editing industry. This is because the Food and Drug Administration (FDA) approved two treatments for Sickle Cell Disease. These are developed through a partnership between Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) and CRISPR Therapeutics AG (NASDAQ:CRSP) and by bluebird bio, Inc. (NASDAQ:BLUE). The Vertex+CRISPR treatment is the first of its kind that is developed through the CRISPR gene editing technology, and it marks a turn for the industry as it is one of the first genetic editing treatments that can be commercialized.
Of course, rewriting the human body's software is quite difficult. You can't use Python to do it, which makes such treatments among the costliest in the world. The Sickle Cell treatments from CRISPR+Vertex and bluebird cost an eye watering $2.2 million and $3.1 million, respectively. While they are one time treatments, this price naturally will exclude most patients due to the high sticker price. Additionally, while they are cutting edge medical treatments, Sickle Cell medicine comes with its own side effects. According to the FDA, bluebird's treatment called Lyfgenia can cause blood cancer among patients - in a worrying example of from the frying pan into the fire.
So, as gene editing continues to make history, we decided to take a look at some of the most promising gene editing stocks according to analysts. Some notable picks are Pfizer Inc. (NYSE:PFE), NVIDIA Corporation (NASDAQ:NVDA), and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). It may be surprising to see NVIDIA Corporation (NVDA) in this list but, NVIDIA has been directly investing in biotech companies and has been working on providing AI tools for drug development and discovery.
12 Most Promising Gene Editing Stocks According to Hedge Funds
A scientist in a lab holding a test tube of regenerated cells.
Our Methodology
To make our list of the most promising gene editing stocks according to hedge funds, we ranked the holdings of the ARK Genomic Revolution ETF by the number of hedge funds that had bought their shares during Q3 2023 and picked out the gene editing stocks with the greatest number of hedge fund shareholders.
12 Most Promising Gene Editing Stocks According to Hedge Funds
Teladoc Health, Inc. (NYSE:TDOC) is a digital health services provider that enables people access to healthcare professionals from the comfort of their homes. Its shares are rated Buy on average and analysts have set an average share price target of $22.26.
During this year's third quarter, 29 out of the 910 hedge funds covered by Insider Monkey's research had held a stake in the company. Teladoc Health, Inc. (NYSE:TDOC)'s biggest hedge fund shareholder is Catherine D. Wood's ARK Investment Management due to its $377 million stake.
Teladoc Health, Inc. (NYSE:TDOC) joins NVIDIA Corporation (NASDAQ:NVDA), Pfizer Inc. (NYSE:PFE), and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in our list of the most promising gene editing stocks according to hedge funds.
Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) is a biotechnology company that develops treatments for diseases such as muscle atrophy. The firm's treatment for a genetic disease that causes inflation scored a win in December 2023 when Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) teamed up with a Japanese company to commercialize the products in Europe.
Insider Monkey scoured through 910 hedge fund holdings for this year's September quarter to find 29 Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) shareholders. Mark Lampert's Biotechnology Value Fund / BVF Inc was the largest investor due to its $181 million stake.
UiPath Inc. (NYSE:PATH) is a technology company that provides products that enable businesses to automate their processes. While a counterintuitive addition to a list of the best gene editing stocks, its software, particularly when coupled with machine learning, has the potential to spur research in the field.
By the end of 2023's September quarter, 30 out of the 910 hedge funds surveyed by Insider Monkey were the firm's investors.UiPath Inc. (NYSE:PATH)'s biggest shareholder is Catherine D. Wood's ARK Investment Management due to its $809 million investment.
9. Pacific Biosciences of California, Inc. (NASDAQ:PACB)
Number of Hedge Fund Investors In Q3 2023: 31
Pacific Biosciences of California, Inc. (NASDAQ:PACB) is a backend gene editing company that sells products used in genetic sequencing. The firm has beaten analyst EPS estimates in two out of its four latest quarters and the shares are rated Buy on average.
As this year's third quarter ended, 31 out of the 910 hedge funds profiled by Insider Monkey had bought and owned Pacific Biosciences of California, Inc. (NASDAQ:PACB)'s shares. Catherine D. Wood's ARK Investment Management was the largest shareholder as it owned $249 million worth of shares.
Incyte Corporation (NASDAQ:INCY) is a biotechnology company that develops treatments for cancer and tumors. The firm scored a win in December 2023 when it shared that its treatment for complications of the liver met early phase objectives in a trial.
During 2023's third quarter, 36 hedge funds out of the 910 covered by Insider Monkey's database had held a stake in the company. Incyte Corporation (NASDAQ:INCY)'s biggest investor is Julian Baker and Felix Baker's Baker Bros. Advisors due to its $2 billion stake.
Moderna, Inc. (NASDAQ:MRNA) is the well known biotechnology company whose coronavirus vaccine was one of the most popular ones in the world. December was a crucial month for the company as it provided investors some hope as Moderna, Inc. (NASDAQ:MRNA) shared that its cancer treatment being developed with Merck was yielding positive outcomes.
Insider Monkey's third quarter of 2023 survey of 910 hedge funds revealed 37 Moderna, Inc. (NASDAQ:MRNA) shareholders. Patrick Degorce's Theleme Partners was the largest stakeholder as it owned 6.8 million shares that are worth $712 million.
Veeva Systems Inc. (NYSE:VEEV) is a diversified healthcare technology company that provides data analysis, customer engagement, and other products and services. The firm has beaten analyst EPS estimates in all four of its latest quarters and the shares are rated Buy on average.
41 out of the 910 hedge funds part of Insider Monkey's Q3 2023 database were the firm's investors. Veeva Systems Inc. (NYSE:VEEV)'s biggest investor is Henry Ellenbogen's Durable Capital Partners due to its $181 million investment.
Pfizer Inc. (NYSE:PFE), Veeva Systems Inc. (NYSE:VEEV), NVIDIA Corporation (NASDAQ:NVDA), and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) are some top gene editing stocks.
