Bill Gates has known investments in the gene-editing industry.
Genetic Engineering is the field of science that manipulates DNA in order to change the gene expression. This technology is revolutionary as gene-editing and gene therapy could help people suffering from genetic disorders, as well as making humans more healthy. Applications include alleviating autoimmune disease, treatment of neurodegenerative disease, and other genetic disorders.
The field is expanding quickly, with more and more companies investing heavily into genetic engineering, especially the CRISPR/Cas9 System. CRISPR technology is considered the foremost precision gene editing tool.
Here are the top companies in the field:
Agilent Technologies (A-N)
This company is a spin-off from Hewlett-Packard, which broke away in 1999. At the time, their IPO was the largest in history in Silicon Valley. They announced on June 18, 2019 the opening of a production facility in Colorado to produce nucleic acid-based therapeutics.
He likes this for their US dividend fund. They will benefit from the urgency to build labs to find a vaccine for COVID-19. An interesting market to be involved in. The space is very oligopolistic and the the company owns a 20% marketshare. Its balance sheet is under-levered he feels and a large amount of…
Biogen IDEC Inc. (BIIB-Q)
A biotechnology company that focuses on treatments for neurodegenerative, and autoimmune diseases. They recently experienced a sell-off following news that they shut down a previously promising drug for Alzheimer’s. They acquired Nightstar Therapeutics this year, who focus on adeno-associated virus based gene-therapies.
Very high risk, very high reward. Seeing competition on its core drugs. Its Alzheimer's drug didn't get a great reception. Somewhere around June 7 the regulator will rule on this drug. Could be impacted 30% up or 50% down. Not for him.
Charles River Labs Intl (CRL-N)
A preclinical and clinical laboratory company for pharmaceutical and biotech firms. They are also a contractor that offers research and development outsourcing services. They offer a genetically engineered animal models and services, as well as CRISPR/Cas9 System research.
(A Top Pick May 30/19, Up 44%) A contract research organization who partners with major pharma companies for drug testing and clinical testing. This is the second company in this space that has done well for them. He would stick with it.
Novartis AG (NVS-N)
One of the largest pharmaceutical companies based out of Switzerland. They are working on a drug called Kymriah that has the ability to reprogram a patient’s own immune cells.
A joint pharmaceutical company that has two businesses: branded and generic. The generic side will be very interesting post-covid when countries will be indebted and must provide cost-effective health care. The product pipeline looks reasonable. 6% dividend growth in the past 10 years. A safe steady growth opportunity. (Analysts’ price target is $102.00)
Regeneron Pharmaceuticals Inc (REGN-Q)
A biotechnology company that has multiple key drugs, including Eylea for macular degeneration. They have one of the largest human DNA sequencing project that will help with drug discovery and development.
It confuses him. They produce great drugs and are run by a fine CEO, but they aren't making a lot of money on their Covid cocktail. The stock has been struggling, but he would not sell.
A french pharmaceutical company out of Paris that is the fifth largest in sales. They recently announced an over one billion dollar research deal with Denali Therapeutics for treatments for neurological and systemic inflammatory diseases.
In late-2019, a new CEO arrive to turn things around by spinning off the so-so consumer business and making small acquisitions. However, Covid hit them hard, and their vaccine development has disappointed. Reported a solid quarter this morning with a slight revenue miss, but strong earnings beat and bullish guidance for 2021. The stock rose…
Thermo Fisher Scientific (TMO-N)
A biotechnology and pharmaceutical lab equipment company. They are paying down debt and have made some acquisitions that will grow well over the next couple of years.
Stockchase Research Editor: Michael O'Reilly TMO is a $173 billion market-cap company that provides scientific instruments and consumables to companies involved in COVID-19 testing, treatment and vaccine production. Management expects another 50% increase in EPS this year, following last year's 74% boost. The company grew its cash position by over $7.5 billion company and it…
United Therapeutics Corp. (UTHR-Q)
An American biotechnology company. Their primary drug therapy is for pulmonary disease. They acquired SteadyMed Therapeutics, a competitor with whom they were locked in a legal dispute with, last year.
United Therapeutic (UTHR-Q) or Allergan (AGN-N)? This is a tough one because they are 2 very different companies. Allergan is a much larger company and more broadly-based, however, this one is a very fine company. Its primary drug therapy is dealing with pulmonary disease. The risk of owning this is that one drug represents a…
Illumina Inc. (ILMN-Q)
One of the only companies that can do high volume DNA sequencing. They have brought down the cost of genetic sequencing to retail levels. They are becoming more available outside of research for commercial use in clinics.
They're the global leader in DNA sequencing. It's had a huge run though come back a bit. It enjoys long-term technical support.
Gilead Sciences Inc. (GILD-Q)
An American biopharmaceutical company that is doing research on treating cancer using DNA targets to control it. They also released great results for a HIV treatment.
It is a healthcare name recently valued by investors. She likes to see a more visible pipeline in companies she buys. But this is a reasonable investment in this space.
Bristol Myers Squibb (BMY-N)
They got hit due to problems with the Celegene acquisition. Some shareholders like it, others don’t. They have an innovative pipeline and their drugs using genetic technology has performed well, as well as the biotech that will come under their wing from Celegene.
(A Top Pick Jan 22/20, Down 8%) Sexier areas of the market pulled money away from the boring companies. Over the next decade, sees a fantastic R&D pipeline of cancer drugs. Tremendous cashflow will be deployed in R&D and acquisitions to augment their growth profile. Stick with it to collect the dividend with some slow…
Roche Holding (RHHBY-OTC)
A Swiss multinational healthcare company. They acquired a biotech firm that does research and development for all their future products. They have some promising drugs for multiple sclerosis and cancer treatment.
(A Top Pick October 31/17 Up 10%) A steady business that pays a good dividend. You should make 10% a year return. There is a good pipeline of drug projects yet to come. Yield 3.5%
CRISPR Therapeutics AG (CRSP-Q)
One of the smaller companies developing transformative gene medications. Their gene-editing tool is used to splice DNA that has the potential of curing diseases such as Huntington’s Chorea and cancer.