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.
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.
Amgen (AMGN-Q), Celgene (CELG-Q) or Biogen (BIIB-Q)? These are 3 great companies. His preference would be Amgen, the leader in the space and the dominant player. This one is a great example of a mega-cap company that has a lot of pent-up interest in one of their phase III’s. Alzheimer’s hasn’t had a great success…
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.
Does safety testing, the efficacy, phase 1 through 3 trials for particular drugs for pharmaceutical companies. High growth, growing earnings last year at 17%.
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.
Healthcare. Has a decent vaccine business as well as a decent generics business. This would be a good solid hold. Organic growth will have to be a big part of the equation in order to continue to grow EPS. Good stock.
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.
Loves the biotech sector right now. If he had to invest money in one sector right now, it would be Biotechs. He likes this company. They are positioned very well.
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.
They missed their numbers by a little bit. They had a nice run, 3.7% yield, 14 times earnings. This would be a great company to buy and sell off its parts. It is not huge in any particular area. It will benefit from the possibility of takeovers in the industry. You get a good rate…
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.
Their model shows it in the top 50 of the S&P 500. Diversified product base. Earnings and ROE look excellent.
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.
It is going to be news driven. In October one of their drugs was turned down by the FDA. The more drugs they have in their pipeline the less you will see of this. Growing well. Thinks it is good value. 10 times earnings.
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.
Dominant player in gene sequencing business. Becoming more commercially available to clinics instead of just research labs. They are buying up some of their customers and going into competition with them. He is nervous of the valuation. It is at and beyond his expectations.
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.
Looking at the graph it has been in a very difficult position in the last coupe of years. They essentially cured hepatitis C. It was an expensive drug. $98,000 per patient. It has come off patent. Competitors came to produce it now. They have been on the penalty box for the past year and a…
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.
One of the few stocks that has actually traded up and down in some kind of range. Volumes have been pretty steady. We are a long way from the top, but the chart shows some kind of support level being built in the low $60s. This is a stock he would own. It looks good…
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.
This is interesting right now based on the value proposition that is going into the pharma space. They have a lot of M&A activity there. This has some growth potential because of breast cancer. Fundamentally the company looks solid and the dividend looks good.
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.
They produce a gene-editing tool that splices DNA that has the potential of curing diseases such as Huntington's Chorea and cancer. It's new technology, but he can't think of another company doing this. This segment is very rich and a trading opportunity at best.