Precision medicine is the idea that care works best when it is designed for you, not for “the average patient.” Instead of treating everyone with the same drug at the same dose, clinicians read a person’s DNA, tumors, proteins, and even health-record notes to reveal what actually drives their disease and how they metabolize medicines. The investment thesis follows that logic: own the tools, data pipes, and discovery engines that make tailored care possible. Sequencing firms turn raw samples into digital code; bioinformatics platforms turn that code into insights; AI-powered drug hunters craft therapies that fit precise molecular locks. Because these businesses sit upstream of clinical decisions, they profit whenever doctors, drugmakers, or insurers move toward personalization, no matter which single drug or test ultimately wins. The addressable market is already large—about $119 billion in 2025—and analysts expect it to quadruple to roughly $470 billion by 2034 as adoption widens across oncology, rare diseases, and chronic care.
In this report, we highlight the top precision medicine stocks to watch in 2025—curated for pure-play exposure to genomic sequencing, bioinformatics platforms, and AI-driven drug discovery.
Why precision medicine, why now?
- First, the cost is plummeting. Reading an entire human genome notoriously cost billions two decades ago; today the price hovers near $200, cheaper than some routine scans. That plunge unlocked population-scale sequencing projects and routine clinical use.
- Second, data and AI have caught up. Cloud computing and machine-learning models can sift through millions of genomes, images, and clinical notes in hours, unearthing treatment patterns no human could spot.
- Third, regulators are on board. In 2024 alone the U.S. FDA cleared 18 new personalized medicines—38 percent of all drug approvals—and green-lit multiple blood-based and companion diagnostics. Those nods give hospitals and insurers confidence to adopt precision tools.
- Fourth, the competitive stakes are rising. Blockbuster drugs now face biosimilar pressure, so pharma is betting on targeted therapies, cell and gene medicines, and AI-accelerated pipelines to stay ahead.
- Finally, demographics tilt in favor of personalization. An aging population means more cancer, heart disease, and neurodegenerative disorders—areas where one-size-fits-all care is notably inefficient.
Together, collapsing sequencing costs, mature AI infrastructure, regulatory momentum, and mounting clinical demand create a rare alignment. The timeline is long, but the foundations are suddenly in place, and the adoption curve is bending upward.
Genomic Sequencing & Multi-omics Tools
Genomic sequencing and multi-omics tools are the hardware and chemistry that turn a patient’s tissue into a digital readout of DNA, RNA, and proteins. They sit at the very first step of personalized care: no data, no precision medicine. For investors tracking precision medicine stocks, these companies are the picks-and-shovels—collecting revenue each time a sample is processed and expanding as testing shifts from research labs into routine clinical practice.
Illumina (NASDAQ: ILMN)
HQ: USA; Market leader in DNA sequencing, foundational to global genomics.
Illumina is effectively the backbone of the genomics revolution. The company’s DNA sequencers dominate the field – around 80% of all sequencing data globally is generated on Illumina platforms. This scale means that as precision medicine drives up demand for genomic information, Illumina stands to benefit enormously: any broad increase in sequencing needs is essentially a win for Illumina. Its machines are installed in laboratories and hospitals worldwide, powering countless genetic tests in cancer, rare diseases, and other conditions.
Importantly, Illumina isn’t standing still. It’s expanding into “multi-omics” – integrating DNA sequencing with other biological data – to deepen the insights available for precision care. In 2025, Illumina announced the acquisition of proteomics firm SomaLogic to accelerate its push into protein analysis alongside genomics. By combining genomics and proteomics, Illumina aims to enable more comprehensive patient profiles, identifying biomarkers that a DNA-only approach might miss. At the same time, Illumina has focused on making genomic testing more accessible. In 2024, its advocacy helped expand insurance coverage for DNA sequencing to 100 million additional lives. All these moves position Illumina as a cornerstone of precision medicine – the go-to provider of the genetic data underlying next-generation healthcare.
10x Genomics (NASDAQ: TXG)
HQ: USA; Pioneer in single-cell and spatial biology tools.
10x Genomics is a leader in the emerging field of single-cell analysis – essentially, zooming in to study biology one cell at a time. Instead of averaging signals across millions of cells, 10x’s tools let scientists see differences cell-by-cell. This is crucial in diseases like cancer, where one cell’s mutation can be the key to choosing the right therapy. 10x sells the instruments and kits that enable these high-resolution studies, and its technologies (such as Chromium for single-cell sequencing and Visium for spatial genomics) have become standard in cutting-edge labs. Thus, 10x is a picks-and-shovels player fueling a new wave of biomedical discovery.
By mapping gene activity in individual cells and even within the 3D context of tissues, researchers can uncover rare cell types, track how cells interact, and find targets that bulk analysis would miss. As precision medicine evolves, such granular insight is increasingly valuable – for example, identifying which immune cells help or hinder a patient’s response to a treatment. 10x Genomics has built a recurring revenue model (selling consumable kits for its devices), and it’s continually innovating to expand its platform. The company’s strong reputation and installed base give it a formidable position as labs worldwide adopt single-cell and spatial genomics to drive more tailored therapies.
Pacific Biosciences (NASDAQ: PACB)
HQ: USA; Long-read DNA sequencer with built-in epigenetic detection.
Pacific Biosciences (“PacBio”) specializes in DNA sequencing technology that reads genomes in ultra-long, continuous stretches. These long-read sequences reveal complex genetic variations – like structural rearrangements and repeat expansions – that conventional short-read sequencers can miss. For years, PacBio’s high cost meant long-read sequencing was used sparingly, but recent advances have dramatically improved its throughput and cost-effectiveness. Today, PacBio’s latest machines (like the Revio system) can sequence human genomes with far greater completeness, and the price gap with standard sequencing has narrowed substantially.
Notably, PacBio’s platform doesn’t just read DNA letters; it can also directly detect epigenetic markers (such as DNA methylation) in the process. This capability opens new frontiers in precision medicine, like spotting changes in gene regulation linked to cancer or other diseases – information that used to require separate tests. PacBio’s focus on accuracy (its HiFi long-read data is highly trusted) and on multi-dimensional data (genomic + epigenomic from the same run) gives it a unique edge. As the precision medicine era matures, comprehensive views of the genome are increasingly valuable, especially for diagnosing rare genetic disorders or informing personalized treatments. PacBio isn’t just refining sequencing; it’s helping set a new standard for what genomic insight means in patient care.
Qiagen (NYSE: QGEN)
HQ: Netherlands; Global supplier of molecular diagnostics and sample prep kits.
Qiagen is the often-unsung workhorse behind countless precision medicine workflows. A global leader in “sample-to-insight” solutions, Qiagen provides everything from DNA extraction kits to sophisticated diagnostic assays and interpretation software. In practice, whenever a blood or tissue sample is taken to guide treatment – say, sequencing a tumor or running a genetic test – there’s a good chance Qiagen’s products are involved in preparing that sample or analyzing the results. The company serves over half a million customers worldwide, including research labs and clinical hospitals, reflecting its ubiquity in the life sciences.
Qiagen is also at the forefront of companion diagnostics: tests that identify which patients will benefit from a particular drug. For example, Qiagen has partnered with pharma companies like Incyte to develop a new test for a specific genetic mutation in a type of rare blood cancer. As more targeted therapies emerge, each tied to a biomarker, Qiagen’s expertise in rapidly developing and globally distributing such tests becomes ever more valuable. The company’s product portfolio spans traditional PCR, next-gen sequencing panels, digital PCR, and more – a toolbox for precision medicine. In short, Qiagen’s strategic role is as an enabler of personalized care: it supplies the critical kits and know-how that turn a patient’s biological sample into actionable insights for treatment.
AI & Bioinformatics Platforms
AI and bioinformatics platforms are the digital nerve center of precision medicine. They fuse genomic sequences, medical images, and patient records, then apply machine learning to spot patterns a human might miss. In the universe of precision medicine stocks, these players generate value by turning raw data into actionable insights—helping doctors choose therapies and pharma companies design trials faster. Their business moats deepen with every new data point fed into their algorithms.
Tempus AI (NASDAQ: TEM)
HQ: USA; AI platform unifying clinical and molecular data at scale.
Tempus AI is a data powerhouse aiming to be healthcare’s central hub for precision medicine insights. The company has built an enormous “library” of patient data – over 8 million genomic and clinical records by mid-decade – and an AI platform to make sense of it. In plain terms, Tempus gathers DNA sequences, lab results, medical images, and doctors’ notes, then uses artificial intelligence to spot patterns that can guide care. With this multimodal dataset, Tempus can identify which genetic mutations might predict a patient’s response to a given drug, or find eligible patients for a clinical trial in minutes instead of months. It’s positioning itself as a one-stop shop for such AI-driven analysis in medicine.
Indeed, Tempus collaborates with 19 of the top 20 pharmaceutical companies, showing how deeply its technology is woven into drug research. The company also delivers insights directly to clinics; for example, its reports can help oncologists understand the molecular profile of a patient’s tumor and suggest targeted treatment options. Essentially, Tempus provides the digital infrastructure for personalized medicine – connecting vast genetic databases with machine learning algorithms to generate actionable insights. As precision medicine continues to grow, Tempus’s advantage is its head start in data and AI; the more data it accumulates, the smarter its algorithms become, creating a network effect that is difficult for others to replicate.
Schrödinger (NASDAQ: SDGR)
HQ: USA; Physics-based drug discovery software with internal pipeline.
Schrödinger is unique in that it straddles the worlds of software and biotech. On one hand, it provides a physics-based computational platform that 19 of the world’s top 20 pharmaceutical companies use in their research. On the other hand, Schrödinger also applies this platform internally (and with partners) to design new drugs. The technology allows researchers to simulate molecular interactions – essentially “pre-testing” how a drug molecule will bind to its target protein on a computer, long before it’s made in a lab. This can cut down a lot of the trial-and-error in drug discovery. In 2024, for example, Schrödinger inked a collaboration with Novartis that could exceed $2 billion in value, aimed at advancing multiple drug candidates with the aid of Schrödinger’s platform. Such a deal underscores the industry’s faith in Schrödinger’s approach.
Strategically, the company earns steady revenue by selling its software (it’s become a staple tool for many chemistry and drug design teams), while also retaining upside in the success of drugs it helps create via milestone payments or royalties. As precision medicine drives demand for more custom-tailored drugs – often targeting niche patient subgroups – Schrödinger’s ability to virtually craft molecules for very specific biological targets is a significant advantage. The company sits at the intersection of high tech and pharma, and it’s poised to grow as more drug discovery workflows shift from the lab bench to the computer screen.
Sophia Genetics (NASDAQ: SOPH)
HQ: Switzerland; Cloud-based bioinformatics platform powering global hospitals.
Sophia Genetics (stylized as SOPHiA GENETICS) is all about democratizing data-driven medicine. It offers a cloud-based platform where hospitals around the world can analyze genomic and other health data using advanced algorithms – without needing their own specialized bioinformatics teams. As of 2025, the SOPHiA DDM platform has processed over two million patient genomic profiles, drawing on contributions from 800+ healthcare institutions across 72 countries. This global network means that every new case uploaded can help inform the next – each data point makes the AI smarter. Essentially, a rare mutation observed by one hospital in, say, Switzerland could assist doctors in India in diagnosing another patient, because both are tapping into the same collective intelligence.
SOPHiA’s platform analyzes data across multiple dimensions (genomic, and often radiological or clinical data too), delivering actionable insights that clinicians can use for treatment decisions. For example, it might flag a particular cancer mutation and suggest which targeted therapies or clinical trials could be considered. The platform is regarded as highly accurate, and importantly it’s user-friendly – even smaller hospitals can adopt it. By centralizing and crunching vast real-world datasets, SOPHiA GENETICS ensures that the latest precision medicine knowledge is accessible anywhere, not just at big academic centers. Its cloud approach provides a scalable way to turn complex data into better patient care.
Certara (NASDAQ: CERT)
HQ: USA; Leader in biosimulation for drug development and regulatory use.
Certara operates behind the scenes of drug development, using sophisticated computer models to predict how drugs behave in the human body. In an industry that traditionally relied on trial-and-error (and lots of animal testing), Certara’s technology offers a faster, more precise alternative. Its biosimulation platforms – such as the Simcyp simulator – allow researchers and even regulators to virtually test drug doses, potential interactions, and pharmacokinetics in silico. This approach has already been broadly adopted: about 80% of recent FDA drug approvals that involved physiologically-based modeling relied on Certara’s Simcyp platform. In fact, the FDA itself uses Certara’s software internally, and recent U.S. policies encouraging non-animal testing methods have further highlighted Certara’s critical role.
For investors, Certara represents a picks-and-shovels play as the pharma industry modernizes its R&D. The company’s tools are used in regulatory submissions, to optimize clinical trial design, and to fine-tune dosing for specific populations – all key aspects of getting personalized therapies to market more efficiently. As more specialized and gene-targeted drugs are developed, drug makers will lean even more on simulation to answer complex questions without lengthy lab work. Certara’s position as the industry standard in this niche means it stands to gain from this shift. In the emerging era of AI-guided, model-informed drug development, Certara is not just a beneficiary but a driving force in how new medicines are brought forth.
AI-Driven Drug Discovery
AI-driven drug discovery companies take mountains of biological data and use algorithms to design new medicines in silico before a single molecule is synthesized. This approach slashes the time and cost of traditional lab-based R&D while aiming for therapies tailored to specific genetic profiles. Among precision medicine stocks, these innovators offer investors asymmetric upside: a single successful drug can deliver blockbuster returns, yet the platform model spreads risk across many experiments.
Recursion Pharmaceuticals (NASDAQ: RXRX)
HQ: USA; AI-native platform for automated, large-scale drug discovery.
Recursion Pharmaceuticals has set out to reinvent how new medicines are discovered by merging the power of automation, big data, and AI. The company recently joined forces with U.K.-based Exscientia, combining Recursion’s high-throughput biology experiments with Exscientia’s AI-driven drug design into one end-to-end platform. In practical terms, Recursion runs massive automated lab experiments on cells – mapping how genes and chemicals affect biological pathways – and then uses machine learning to identify promising drug candidates.
With Exscientia’s precision chemistry added, it can also rapidly generate and optimize molecules for those biological targets. The goal is to industrialize drug discovery, making it faster and cheaper to go from a hypothesis to a viable drug. The value of this approach is reflected in Recursion’s pipeline and partnerships. The combined company expects roughly 10 drug candidates to yield clinical trial results within about a year, thanks to its parallelized research model.
Recursion has also attracted alliances with pharma giants like Roche and Bayer, deals that carry over $20 billion in potential milestone payments if the partnered programs succeed. In the precision medicine realm, Recursion’s AI can search for patterns across many diseases at once. For instance, it might reveal that a drug developed for one rare disorder could also help treat another. It’s a high-risk, high-reward endeavor at the cutting edge of biotech and tech. If Recursion’s “search engine for biology” succeeds, it could dramatically speed up the arrival of new personalized therapies.
AbCellera Biologics (NASDAQ: ABCL)
HQ: Canada; High-throughput AI platform for antibody discovery.
AbCellera Biologics offers a new way to discover antibody drugs at lightning speed. Antibodies – the immune proteins that can be engineered to fight diseases like cancer or autoimmune disorders – are highly specific, but finding the right one has traditionally been slow. AbCellera’s platform turns this into a rapid, automated process. By scanning through natural immune cells (from humans or animals) and using microfluidics and AI, AbCellera can identify rare antibodies that bind to a desired disease target in a fraction of the time it once took. The result is a huge pipeline of opportunities: AbCellera partners with drug developers to feed them these antibody “hits” for further development. By 2025, AbCellera’s partners had started 97 discovery programs, and 16 of those antibody candidates reached clinical trials. This portfolio approach means AbCellera has many shots on goal – even one or two successes could earn AbCellera significant royalties.
Meanwhile, the company is also starting to develop some antibodies in-house, aiming for its own first-in-class therapies in areas like oncology and inflammation. AbCellera integrates cutting-edge technology and data science to solve tough antibody discovery problems. Strategically, AbCellera is like the arms dealer of the antibody world – as precision medicine identifies new disease markers, AbCellera supplies the tools to quickly generate a tailor-made antibody. It’s a scalable business model that could yield a steady stream of drug royalties in the long run.
Relay Therapeutics (NASDAQ: RLAY)
HQ: USA; Precision oncology platform for selective drug design.
Relay Therapeutics is focused on a frontier of drug design that plays directly into precision medicine: crafting drugs that hit only the intended disease target and little else. Relay’s specialty is understanding the dynamic shapes of proteins – how they bend and flex – and exploiting that knowledge to find unique binding pockets for drugs. The payoff is that its drug candidates can be highly selective. For example, Relay’s compound lirafugratinib (RLY-4008) zeroes in on a cancer-driving protein called FGFR2. Earlier FGFR inhibitors hit multiple related proteins and caused dose-limiting side effects, but RLY-4008 was designed to avoid those off-target hits, and it has shown strong efficacy in FGFR2-fueled tumors.
Relay is applying the same strategy to other tough mutations. It developed the first NRAS-specific inhibitor (RLY-8161) to address cancers driven by NRAS mutations while sparing the closely related KRAS and HRAS proteins – which could reduce toxicity and improve outcomes. Relay’s pipeline reflects this theme of “precision drugs for precision medicine” – each therapy is tailored to a specific genetic subset of disease. The company is still in clinical stages, so risks remain until trial results confirm the benefits. But Relay’s approach demonstrates a new era of drug design. If its bets pay off, patients with previously untreatable or difficult-to-treat mutations could finally get effective therapies with fewer side effects.