5 Genomic Stocks that will Change Your Life [Literally]

hey bowtie nation joseph hogue here with the let's talk money channel and nation we could be about to enter a revolution in biotech medical advances that could take genomic stocks rocketing higher to date just 10 gene therapies have been approved but 712 clinical trials are underway if even a typical rate of approvals occur that could mean over 170 gene editing therapies approved over the next few years gene editing therapies and cancer screening is a 400 billion addressable market with just the oncology segment expected to increase 24 to 260 billion dollars in fact one stock i'm going to highlight in this video is expected to post sales growth of over 35 000 over the next three years sales growth that could make it one of the fastest growing stocks in the market that data is from the arc invest big ideas report a 112 page research report from kathy wood and the team over at arc funds on the 15 life-changing trends they're following so over the next few months i'm going to dig deep into those 15 disruptive trends show you that research help you analyze it and then reveal the top stocks to buy in each one i'll be putting these videos into a special playlist on the channel called arc invest stocks to buy make sure you join the community so you don't miss any of those videos because these are going to be the stocks that you want to be in over the next decade today though i want to focus on a segment that is probably one of the more neglected trends among investors just because it's so complicated the market potential for gene editing therapies and multi-cancer screening is immense but if you don't have a phd in biochemistry a lot of the research can just sound like a foreign language in this video i'm going to break down the most important research in gene editing and the trend to multi-cancer screening we'll look at the market potential for biotech advances in the space and how to find the best stocks to buy then i'll reveal what to watch for in biotech stocks and the five genomic stocks to buy ahead of this medical revolution i'll show you the rest of the research in the arc invest report but the biggest factor to remember here is just the speed at which this trend is accelerating because of advances in our artificial intelligence we're sequencing genes at a much faster pace that's enabling new gene editing and other genomic therapies and accelerating those approval rates that's why arc expects a baseline of 170 new commercialized therapies over the next decade 17 times the number of currently approved in the market in fact this trend in genomic editing and research is so strong art gave it three sections in its big ideas report studying sequencing multicancer screening and gene therapy now obviously the market for these kinds of advances is immense just the shift to that allogeneic therapies from autologous sales and cancer treatment could unlock a 260 billion dollar market now that's 20 times the current market size from just 13 billion dollars today that increases from applications that can be applied at earlier stages of a cancer being able to apply them on solid tumors which account for more than 80 percent of cancer patients versus liquid tumors and from lower costs of testing that opens up a much larger market innovation here has pushed the cost of multi-cancer screening down 95 percent from 2015 to just 1500 today and is expected to fall another 80 to just 250 by 2025 and just that current 1500 screening cost though the purple line here is still only reimbursable for those 60 and older as those costs lower you get the test down to where people much younger are being reimbursed and they're willing to pay at a 1 000 test level we could open multi-screening cancer to those as young as 40 years old nation being able to test people at a younger age could potentially save more than 60 000 people a year in the us alone and means a massive increase in the market for these screening and therapies biotech stocks i'm going to show you how to find those stocks in the genomic research and the gene editing but first you know i've got to send a special shout out to all you out there in the bowtie nation thank you for spending a part of your day to be here if you're not part of that community yet just click that little red subscribe button it's free and you'll never miss an episode and we can start our search for genomic stocks here in stockhart and one of the first places i usually look is this watchlist ideas section for those group stocks and a lot of our arc investing ideas here we've got lists of stocks in ai space travel and virtual reality but i don't see any here for gene editing just yet so we're going to go to our dashboard and do a search the search bar is another great function here because i can start typing on a topic and not only is it going to drop down with stocks but also with stock groups in that topic here we see groups around gene editing gene therapy and genomic diagnostic stocks i can click through here and it gives me 76 stocks to research in that gene editing theme i'll leave a link to stock card in the video description below don't forget to click through and follow our 2021 bowtie nation portfolio up 32 already and beating the market by 25 this year and as a special bonus i've negotiated an exclusive discount for everyone here in the community use the promo code bowtienation that's lowercase in all one word for an exclusive discount beyond the free trial now you've got your list of genomic stocks to research but a lot of you are probably asking why not just invest in the arc genomic revolution etf ticker arkg instead the fun targets companies expected to benefit from this trend in gene editing and the therapies it's produced a hundred and thirty percent return over the last year so why go through all the trouble of picking your own biotech socks and the problem is the fund isn't really a pure play on that gene editing theme in fact the largest holding here teledoc health is a health information tech company now i own shares in teledoc myself but if i were looking for a pure play in genomic stocks you've got to go with those individual stock picks just some last factors here to remember before we look at those five genomic stocks to watch in this theme remember most of these are biotech names in that developmental stage company they develop the therapies and the drugs but then sell them off to their larger medical companies after approval that means many of these companies are going to have low or no revenue so they need a strong balance sheet with lots of cash to see them through those clinical trials now looking through the balance sheet i want to see a high cash balance and relatively low debt here you also have to compare the pipelines across these companies now that's the timeline for different therapies drugs and and when the company expects those stages of testing to begin for these companies it's all about which can get approved for a blockbuster therapy fastest and collect those milestone payments from their drug company partners first up here is beam therapeutics ticker beam a 4.2 billion dollar gene editing stock with shares up 325 just over the last year beam is using a unique gene editing approach causing a chemical reaction designed to create precise and predictable changes rewriting a single base in the genome either directly changing it modifying the gene or activating it and one of the reasons i like beam here is because they're experimenting with three different delivery methods to see which one works best for different organs and and which are the most effective really diversifying their research here to find that one blockbuster technique the pipeline for its electroproration modality for sickle cell and leukemia is the closest to those clinical trials and carries the most potential revenue growth in that high margin oncology segment sales are expected to jump to 2.2 million dollars this year from just 24 000 last year and to double to 4.3 million next year and double akin to 15 million by 2023 so we see here that kind of explosive revenue growth that we're looking for in these genomic stocks now even on that growth though the shares are still terrifically expensive trading at 1900 times on a price to sales basis and even if we take that 20 sales estimate of 15 million that still puts the shares at 282 times revenue beam does have a healthy balance sheet though not quite as healthy as some of the other ones we'll look at with 300 million dollars in balance sheet cash against about 107 million dollars in debt now that still gives it plenty of flexibility though to see that research through to commercialization but but still shares are very expensive here and already quite a bit of debt next in our list of genomic stocks is iowans biotherapeutics ticker iova a 4.3 billion company focused on cancer treatment and iowa vance's strategy here is really interesting creating t-cell-based immunotherapies for patients with solid tumors and blood cancers now what happens here and i'm intimately aware of how this works because both my mom and stepfather died of cancer but but when your body detects those multiplying cancer cells it releases special immune cells to destroy it now usually that's enough but because of cancerous cells are able to adapt so quickly to these sometimes those special cells those lymphocytes just can't do the job but what iovans is doing is amplifying a patient's own special immune cells making them more effective against that cancer working with your own immune system to beat the cancer nation oncology is a huge market with 1.8 million new cases a year and 606 000 cancer deaths annually so this is where you see a lot of those biotechs targeting that massive and monetizable market the company has a solid pipeline with two indications for melanoma and cervical cancer already in the pivotal stage of trial so so very near to approval revenue of 3.4 million dollars expected this year is forecast to jump almost 30 full to 90 million in 2022 which again just like we saw with beam still puts it at 1270 times on that price to sales basis on this year's sales but actually pretty cheap if it can reach anything close to that 90 million revenue estimate the balance sheet here looks even better with 629 million dollars in cash versus just 52 million dollars in debt so so no trouble with that funding or the cash burn here in vitae corporation ticker nvta is larger here at 7.4 billion dollars in market cap and 154 return on the shares over the last year in vitae is leading in that genetic testing and screening area of the market focusing initially on the oncology segment but but really expanding it throughout genetic information testing to to answer those questions about health in all age groups from pediatric to fertility and diagnostics the company is estimating 154 billion market opportunity across these four segments and is already one of the most advanced in our genomic stocks for revenue sales were 280 million dollars last year expected almost double to 463 million this year and hit 1.2 billion by 2024 now that would also make it one of the least expensive on our list with a price of sales of just 16 times this year's expected sales now the balance sheet is a little shakier here than with the others uh with just 360 million dollars in cash against 330 million dollars in debt but i still don't think there's any financial trouble here with funding with that kind of sales growth the company is going to have no problem getting the funding it needs shares of twist biosciences ticker twst are up 330 percent over the last year though it's 32 percent off its high reached in january twist has developed a new process for manufacturing synthetic dna by writing it on a silicon chip a process it says is on a level 10 000 times more scalable than competitor models and with this technology it can create synthetic genes antibody libraries for drug discovery and enable partnerships in biologics the company is one of the largest holdings of the arc genomics etf at 4.2 percent of the fund and 400 million dollars invested in the shares it's got a strong partnership centered model with a stable of testing and different drugs and indications could really prove the concept over the next few years revenue is expected 30 higher this year to 120 million dollars from 90 million just last year and 166 million in 2022. that means it's not quite as expensive as some of the others on the list at 52 times on a price to expect a 2021 sales basis but also not quite as inexpensive as some of the others either the balance sheet here is exceptionally strong though with 587 million dollars in cash against just 34 million dollars in debt and the cash burn is slower here because of that partnership focused development model the largest company in our genomics list here at 8.6 billion dollars crispr therapeutics ticker crsp with 123 return on the shares over the last year crispr is leading in that allergenic cell therapy that arc research points out is so much more cost effective and scalable that it can reach those masses with screening in fact it's also one of ark's biggest holdings with 224 million dollars in the arc genomics fund and another 609 million invested in the ark innovation etf the company is already in clinical studies for five indications and has a strong overall pipeline with partners vertex and bayer as well as its wholly owned studies revenue growth for crispr is also one of the strongest on the list expected to surge 13-fold this year to nine and a half million dollars from just 719 000 last year and to a forecast of 253 million by 2023 now that's revenue growth of 35 000 percent over that three-year period of course growth like that doesn't come cheap and shares are traded at a price of 908 times this year's expected sales though just 34 times if it can meet that 2023 sales target click on the video to the right for the five fintech digital wallet stocks to buy right now five stocks in my favorite disruptive trend don't forget to join the let's talk money community by tapping that subscribe button and clicking the bell notification

Channel: Let's Talk Money! with Joseph Hogue, CFA

Views: 72,374

Rating: 4.9245281 out of 5

Keywords: genomic stocks, gene editing stocks, biotech stocks, gene therapy stocks, ark invest, cathie wood, arkg, arkg etf, ark genomic revolution etf

Id: Jl5omU2tqJk

Length: 12min 45sec (765 seconds)

Published: Mon Apr 19 2021