This growth is primarily fueled by the rising demand for personalized treatment options, especially in oncology, where tailored therapies based on genetic profiles are becoming increasingly common. Technological advancements, such as next-generation sequencing and AI-driven diagnostic tools, are also contributing to the market’s expansion by enabling more precise and efficient treatments.
North America remains the largest market for personalized medicine, supported by strong research initiatives and significant investments from major pharmaceutical companies. Europe and the Asia-Pacific regions are also seeing substantial growth, driven by supportive government policies and increased healthcare spending.
So with that being said, here are three of the best personalized medicine stocks to buy.
Exact Sciences (EXAS)
Exact Sciences (NASDAQ:EXAS) is a leader in cancer diagnostics, offering tests like Cologuard for colorectal cancer screening and Oncotype DX for breast cancer prognosis.
EXAS recently announced Q1 2024 results. Total revenue reached $638 million which was a 6% year-over-year increase. Exact Sciences maintained its full-year financial guidance.
For the full year, screening revenue is anticipated to be between $2.15 billion and 2.175 billion. Precision Oncology revenue is expected to range from $655 million to $675 million.
The company also submitted the final module of the next-generation Cologuard premarket approval application to the FDA and announced a total revenue outlook of $2.83 billion for 2024. This then makes it one of those stocks to consider.
Illumina (ILMN)
Illumina (NASDAQ:ILMN) is a global leader in DNA sequencing and array-based technologies, serving customers in the research, clinical, and applied markets.
The reason I’m bullish on ILMN is due to a key development that unfolded over the last week.
Illumina is set to conclude its long saga over the acquisition of Grail (NASDAQ:GRAL) by spinning off the cancer blood test developer this week, as promised last December. Analysts believe this resolution will allow Illumina to refocus on its core business. In connection with the spinout, Illumina entered into a credit agreement for a senior unsecured term loan of up to $750 million.
ILMN then is in a strong strategic position and has a long cash runway ahead of it relative to its rate of a cash burn.
ILMN also reported first-quarter 2024 adjusted earnings per share (EPS) of 9 cents, which beat the analysts’ consensus estimate of 3 cents per share. The bottom line exceeded the year-ago quarter’s figure of 8 cents. Including one-time items, the company’s GAAP loss per share was 79 cents compared to the year-ago quarter’s EPS of 2 cents.
Guardant Health (GH)
Guardant Health (NASDAQ:GH) specializes in blood-based tests for cancer diagnosis, monitoring, and treatment. The company’s liquid biopsy tests provide non-invasive options for early cancer detection.
There are several reasons to believe Guardant Health stock may be undervalued at its current price of $28.26. The average price target from 12 analysts covering the stock is $36.83, which represents a potential upside of 30.33% from the current level.
Looking at the company’s financial forecasts, revenue is expected to grow by 24.44% this year to $701.79 million and by another 19.44% next year to $838.19 million. While the company is still expected to post losses in the coming years, the magnitude of those losses is projected to decrease, with EPS improving from -$4.28 in 2023 to -$3.23 in 2024 and -$2.82 in 2025.
For these reasons and more I believe that GH stock is one of the best personalized medicine stocks to consider.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.