Precision medicine, also referred to as personalized medicine, is a major paradigm shift away from the traditional “one-size-fits-all” approach to healthcare. The basic idea is simple—tailor medical treatment to the individual characteristics of each patient. By considering factors like genetics, environment, and lifestyle, doctors can devise more effective and targeted interventions. It’s the difference between an off-the-rack pair of shoes “in your size” versus a custom-pitted pair that’s perfectly shaped around your unique bone structure. One might lead to blisters, while the other is almost guaranteed to pamper your feet.
Human beings are incredibly diverse, and so are the diseases that affect us. Two patients with the same diagnosis might respond differently to the same treatment due to subtle genetic variations or environmental factors. Precision medicine aims to understand these nuances, leading to better outcomes, fewer side effects, and more efficient use of resources. This is a quiet revolution that’s already well underway. In this guide, we’ll explore the top precision medicine stocks, ranked by pure-play focus.
Note: We make every effort to keep our information accurate and up-to-date. However, technology markets do move fast and company situations can change rapidly. Please use this guide as an introduction to the precision medicine landscape; but ultimately, do your own due diligence before taking action.
The reason precision medicine is gaining so much momentum boils down to one thing: the rapid evolution of genomic sequencing technology. To give you an idea of how far we’ve come, back in 2003, the Human Genome Project—an effort to map all of our DNA—took 13 years and cost a staggering $3 billion. Fast forward to today, and you can get your entire genome sequenced for less than $1,000, and it only takes a few hours. This massive drop in cost and time has made genomic sequencing way more accessible, shifting it from something that was only possible in cutting-edge research labs to a tool doctors can actually use in everyday healthcare.
The biggest hurdle, however, is figuring out how to turn all that genetic information into real, effective treatments. Sure, we can sequence genomes quickly and affordably now, but we’re still just scratching the surface when it comes to understanding how genetic differences actually cause disease. Many health issues are influenced by a combination of genes and environmental factors, which makes it tough to pinpoint exactly what’s happening at the molecular level. Here, artificial intelligence in drug discovery can play an important role.
Tier 1: Pure-Play Precision Medicine Stocks
This tier of precision medicine stocks includes companies whose primary business is precision medicine, focusing on genetic testing, personalized therapies, and diagnostics.
Praxis Precision Medicines (PRAX)
Praxis Precision Medicines (PRAX) develops targeted therapies for CNS disorders using human genetics and neuroscience.
Praxis Precision Medicines is zeroing in on a critical gap in the precision medicine landscape: central nervous system (CNS) disorders, such as epilepsy and movement disorders. While the genetics of many physical diseases have been studied extensively, CNS conditions remain a frontier for precision medicine. Praxis is tackling this by leveraging human genetics and neuroscience to develop more targeted therapies that address the root causes of these disorders.
Praxis uses a proprietary platform that combines genetic data with advanced models to predict how diseases develop at a molecular level. By identifying genetically defined patient populations, Praxis increases the odds that its therapies will succeed in clinical trials. This approach not only maximizes the chance of developing effective drugs but also ensures they can address unmet medical needs in a more targeted way than traditional treatments.
Guardant Health (GH)
Guardant Health (GH) offers liquid biopsy technology for real-time, non-invasive cancer genomic profiling.
Guardant Health specializes in cancer diagnostics with its breakthrough in liquid biopsy technology, which makes precision medicine more accessible for cancer patients. The company’s flagship product, Guardant360, allows doctors to perform comprehensive genomic profiling of solid tumors using only a blood sample. This is a game-changer because it eliminates the need for invasive tissue biopsies, which are not only painful but can be risky and expensive.
The real advantage here is that Guardant’s technology makes it possible to continuously monitor a patient’s cancer in real-time, tracking how tumors evolve and mutate. This allows for more dynamic treatment plans, where therapies can be adjusted quickly as new mutations emerge or resistance to treatment develops. In essence, Guardant Health is turning cancer treatment into a much more fluid, personalized process, where doctors can react to changes as they happen rather than relying on outdated snapshots from tissue biopsies.
Natera, Inc. (NTRA)
Natera, Inc. (NTRA) provides non-invasive prenatal testing and personalized cancer recurrence monitoring.
Natera is applying precision medicine principles to both prenatal care and oncology. In the prenatal space, their Panorama test is a non-invasive option for detecting chromosomal abnormalities like Down syndrome by analyzing fetal DNA present in the mother’s bloodstream. This test offers a safer, more comfortable alternative to traditional procedures like amniocentesis, which carry risks for both mother and baby.
In oncology, Natera’s Signatera test offers personalized monitoring for cancer recurrence. The test is customized for each patient by identifying the unique mutations present in their tumor, allowing doctors to detect minimal residual disease (MRD) long before it becomes visible through standard imaging techniques. This early detection of recurrence is critical, as it allows doctors to intervene earlier, potentially improving long-term survival rates for patients.
Myriad Genetics (MYGN)
Myriad Genetics (MYGN) specializes in genetic cancer risk testing and precision oncology diagnostics.
Myriad Genetics is a well-known name in genetic testing, particularly for its role in assessing hereditary cancer risks. Their BRACAnalysis test, which identifies mutations in the BRCA1 and BRCA2 genes, has transformed how doctors approach cancer prevention. By identifying individuals with a higher genetic risk of breast and ovarian cancers, Myriad has empowered patients to take proactive steps, whether through enhanced screenings or preventative surgeries.
Myriad has also expanded into precision oncology with their myChoice CDx test, which evaluates tumors for homologous recombination deficiency (HRD). This can identify patients who are likely to respond well to PARP inhibitors—a class of drugs that targets specific cancer cells based on their genetic vulnerabilities. Myriad’s role in precision medicine isn’t just about risk assessment anymore; they’re helping doctors fine-tune treatments based on the molecular makeup of each patient’s cancer.
Exact Sciences Corp. (EXAS)
Exact Sciences (EXAS) offers non-invasive cancer screening with its Cologuard test for colorectal cancer.
Exact Sciences is best known for Cologuard, a stool-based DNA test that has made colorectal cancer screening far more accessible. What sets Cologuard apart from traditional methods like colonoscopy is its convenience—patients can complete the test at home, without the need for invasive procedures, sedation, or bowel preparation. By removing these barriers, Exact Sciences aims to increase screening rates and catch colorectal cancer early, when it’s most treatable.
Exact Sciences is also actively researching ways to expand their diagnostic platform beyond colorectal cancer. They’re working to develop similar non-invasive tests for other types of cancer, including liver, lung, and pancreatic cancers. If successful, this could improve cancer screening across the board, making early detection more accessible and increasing the chances of survival for patients with a range of different cancers.
Adaptive Biotechnologies (ADPT)
Adaptive Biotechnologies (ADPT) analyzes immune responses and tracks minimal residual disease in blood cancers.
Adaptive Biotechnologies focuses on an often overlooked but essential part of precision medicine: the immune system. Their technology, immunoSEQ, examines T-cells and B-cells, which play crucial roles in identifying and fighting diseases. Instead of just sequencing DNA, they analyze how the immune system interacts with diseases like cancer and autoimmune disorders, offering insights into the body’s natural defense mechanisms.
A key product in their portfolio is clonoSEQ, a diagnostic tool that provides precise measurements of residual cancer cells in blood cancers like multiple myeloma. Unlike standard imaging tests that track tumor size, clonoSEQ detects minimal residual disease (MRD)—tiny traces of cancer that may remain after treatment. This helps doctors refine treatment strategies, allowing them to make informed decisions about whether to continue or adjust therapies. In this way, Adaptive Biotechnologies provides valuable data to guide more individualized cancer care, especially for patients undergoing long-term monitoring.
Fulgent Genetics (FLGT)
Fulgent Genetics (FLGT) provides customizable genetic tests across clinical areas with advanced data processing.
Fulgent Genetics takes a highly adaptable approach to genetic testing by offering customizable test panels across a range of clinical areas, from oncology to rare genetic diseases. What sets Fulgent apart is its proprietary platform that integrates next-generation sequencing with advanced data algorithms to process genetic information efficiently. This allows for high-throughput testing while maintaining precision.
Their platform’s flexibility is crucial in fields like reproductive health, where genetic information needs to be tailored to the specific needs of patients and their medical conditions. Fulgent’s ability to scale this kind of precision testing while keeping costs manageable makes their offering competitive. As personalized medicine evolves, the need for cost-effective, customized tests will likely grow, positioning Fulgent to meet a wide range of clinical demands with accurate, patient-specific insights.
NeoGenomics (NEO)
NeoGenomics (NEO) delivers detailed cancer diagnostics through molecular testing to guide treatment.
NeoGenomics is focused on cancer diagnostics, offering a range of molecular tests that help clinicians understand the genetic profile of various cancers. Their services, such as flow cytometry and next-generation sequencing, provide a detailed molecular breakdown of tumors, which can be critical in determining the most appropriate treatments for cancer patients. By specializing in oncology, NeoGenomics supports precision medicine’s goal of tailoring treatment to the specific characteristics of each patient’s cancer.
An important aspect of NeoGenomics’ approach is their ongoing investment in diagnostic technology and expanding their test offerings. Their extensive network of laboratories reduces the time it takes to process tests, which is important when quick diagnostic results can directly affect treatment decisions. This emphasis on efficiency and accuracy ensures that NeoGenomics remains a vital resource for oncologists seeking timely and detailed molecular insights to guide their clinical strategies.
Personalis, Inc. (PSNL)
Personalis, Inc. (PSNL) integrates genomic and immune analysis to advance personalized cancer treatments.
Personalis brings a comprehensive approach to cancer genomics with its NeXT Platform, which goes beyond traditional tumor sequencing by also examining the tumor’s microenvironment. This includes analyzing how the tumor interacts with the patient’s immune system, a critical factor in developing effective cancer treatments, especially in the field of immuno-oncology.
The integration of both genomic and transcriptomic data allows Personalis to uncover new biomarkers, which can help predict how a patient might respond to certain therapies, particularly immunotherapies. This dual analysis provides clinicians with deeper insights into both the genetic characteristics of the tumor and the broader biological environment that influences its growth and response to treatment. By offering this fuller picture, Personalis aids in the development of more targeted and potentially more effective cancer treatments.
Tier 2: Genomic Sequencing and Analysis Providers
These precision medicine stocks consist of firms providing the critical technologies for genomic sequencing and analysis, which are foundational for precision medicine but may serve other sectors as well.
Illumina, Inc. (ILMN)
Illumina (ILMN) is a leader in cost-effective, scalable NGS platforms for broad clinical adoption of genomics.
Illumina continues to lead the genomic sequencing market by refining its Next-Generation Sequencing (NGS) platforms to be more cost-effective and clinically relevant. Aside from driving the reduction in cost and time for sequencing, Illumina has also focused on making its technology scalable for broader clinical adoption. Their machines aren’t just faster and cheaper; they are designed to be user-friendly and adaptable to clinical workflows, which helps bridge the gap between complex research tools and practical medical applications.
A major strength of Illumina’s platforms is their compatibility with a wide range of bioinformatics software. This makes it easier for healthcare providers to interpret the vast amounts of genetic data that come from sequencing and apply it to treatment decisions. By focusing on accessibility and integration, Illumina enables the widespread use of genomics in routine clinical settings, which is essential for the broader adoption of precision medicine.
10x Genomics (TXG)
10x Genomics (TXG) is pioneering in single-cell and spatial analysis for detailed cellular insights in disease research.
10x Genomics specializes in analyzing gene expression at the single-cell level, offering a much more detailed view than traditional methods that look at bulk cells. This technology allows researchers to explore how individual cells within the same tissue can behave differently, which is particularly important in areas like cancer, where cellular diversity within a tumor can influence disease progression and response to treatment.
Their Chromium platform enables high-throughput single-cell analysis, which is critical for uncovering rare cell types that could be driving disease. Complementing this, the Visium platform provides spatial context, mapping gene activity in relation to the tissue’s structure. This dual focus—examining individual cells while preserving their location within tissues—adds depth to our understanding of diseases that involve complex tissue interactions, such as cancers or neurological disorders. These capabilities support the development of more targeted therapies by revealing how cellular functions vary in different disease states.
Pacific Biosciences (PACB)
Pacific Biosciences (PACB) specializes in long-read sequencing for comprehensive genomic and epigenetic analysis.
Pacific Biosciences focuses on long-read sequencing, which allows for more comprehensive analysis of the genome compared to short-read methods. The ability to read longer sequences of DNA helps resolve complex areas of the genome that can be critical in disease research, such as repetitive regions or large structural variants. These parts of the genome are often linked to genetic disorders but are difficult to analyze with other sequencing technologies.
Moreover, PacBio’s Single Molecule Real-Time (SMRT) sequencing can detect epigenetic changes, like DNA methylation, without requiring additional steps. This dual capability to sequence both genetic and epigenetic data provides a fuller picture of how genes are regulated and expressed, offering deeper insights into how diseases develop. This makes their technology especially useful in areas like oncology and rare genetic diseases, where understanding both genetic mutations and epigenetic changes is key to developing personalized treatment strategies.
Twist Bioscience (TWST)
Twist Bioscience (TWST) provides fast, scalable custom DNA synthesis for gene editing and antibody development.
Twist Bioscience focuses on the synthesis of custom DNA, applying semiconductor manufacturing techniques to produce large volumes of DNA sequences more efficiently than traditional methods. This capability is crucial for many precision medicine applications, as it allows researchers to generate the specific DNA sequences they need to study genetic functions or develop gene-editing technologies.
Twist’s technology is particularly useful in areas like antibody development and CRISPR gene editing, where precision and scale are essential. By reducing the cost and time involved in synthesizing long and complex DNA constructs, Twist helps accelerate research across multiple fields within genomics, making tools like CRISPR more accessible for broader research and therapeutic development.
QIAGEN N.V. (QGEN)
QIAGEN (QGEN) focuses on superior sample preparation and integrated sequencing for accurate genomic diagnostics.
QIAGEN aims to improve the accuracy and reliability of genomic analyses through effective sample preparation. Their products are designed to purify and process genetic material from a variety of biological samples, ensuring that the data obtained from genomic sequencing is as clear and accurate as possible. This step is crucial for maintaining the quality of downstream genomic tests, which are central to precision medicine.
QIAGEN also plays a significant role in the development of companion diagnostics, which help identify the most suitable treatments based on a patient’s genetic makeup. Their GeneReader NGS system is designed with clinical labs in mind, offering a more integrated approach to next-generation sequencing that simplifies workflow and reduces barriers to implementation. By focusing on both the preparation and analysis of genetic samples, QIAGEN contributes to making genomic data more usable in everyday medical practice, supporting the broader adoption of precision-based therapies.
Tier 3: Diversified Precision Medicine Stocks
This group of precision medicine stocks include large pharmaceutical companies that have significant precision medicine initiatives but also have diversified portfolios.
Roche Holding AG (RHHBY)
Roche Holding AG (RHHBY) integrates diagnostics with drug development to create targeted cancer therapies based on genomic data.
Roche is notable for its systematic integration of diagnostics with drug development, particularly in oncology. The company’s development of companion diagnostics allows physicians to identify which patients are most likely to benefit from specific therapies. This reduces unnecessary treatments and improves the effectiveness of patient care. Rather than relying on broad-spectrum treatments, Roche focuses on targeted therapies that are supported by diagnostic tools, allowing for more individualized treatment plans.
In addition, Roche’s subsidiary, Foundation Medicine, plays a key role in genomic profiling through next-generation sequencing (NGS) technologies. These tools provide a deeper understanding of the genetic mutations that drive cancers, which helps Roche develop therapies that are closely aligned with the molecular features of each patient’s cancer. This approach refines how cancer is treated by providing more precise therapeutic options based on an individual’s genomic data.
Novartis AG (NVS)
Novartis AG (NVS) focuses on personalized cell therapy and uses digital tools to enhance precision drug development.
Novartis stands out for its focus on cell therapy, especially with the development of Kymriah, the first FDA-approved CAR-T cell therapy. Kymriah takes a patient’s own immune cells (T-cells), modifies them to better recognize cancer cells, and then reinfuses them to target and eliminate the cancer. This highly personalized approach to treatment is an example of how Novartis is adapting therapies to individual patient profiles, which can be especially beneficial when traditional treatments are less effective.
Beyond cell therapy, Novartis is also heavily invested in using digital tools and data analytics to enhance drug development. By analyzing large-scale genomic data alongside real-world patient data, Novartis seeks to identify new drug targets more efficiently. This data-driven method also helps refine clinical trial design, making it possible to develop more effective therapies in a shorter amount of time by better identifying which patient groups will benefit from specific treatments.
AstraZeneca (AZN)
AstraZeneca (AZN) develops targeted therapies and companion diagnostics for genetically defined cancer subtypes.
AstraZeneca’s precision medicine efforts are highlighted by its work in targeted therapies for cancer, such as Tagrisso, which treats non-small cell lung cancer in patients with specific mutations in the EGFR gene. This type of treatment focuses on the underlying genetic drivers of disease rather than treating cancer more broadly. By concentrating on molecular subtypes, AstraZeneca aims to improve treatment outcomes by tailoring therapies to specific patient groups who exhibit certain genetic characteristics.
In addition, AstraZeneca collaborates with diagnostic companies to develop companion diagnostics that help identify which patients are most likely to respond to its therapies. This collaboration ensures that treatments are aligned with the patient’s genetic profile, improving the precision and effectiveness of cancer care while minimizing unnecessary treatments.
Bristol-Myers Squibb (BMY)
Bristol-Myers Squibb (BMY) pursues immuno-oncology treatments guided by biomarkers to enhance personalized cancer care.
Bristol-Myers Squibb is a major player in immuno-oncology, which involves treatments that stimulate the immune system to recognize and fight cancer. Its therapies, including Opdivo and Yervoy, are designed to work by targeting biological markers that affect how the immune system interacts with cancer cells. This approach represents a shift toward more personalized treatments based on each patient’s immune system.
To refine these therapies further, BMS is actively exploring biomarkers, such as PD-L1 expression levels, which can indicate how likely a patient is to respond to immunotherapy. By using these biomarkers to guide treatment decisions, BMS can help ensure that patients receive therapies that are more closely aligned with their individual biological profiles, potentially improving outcomes while reducing unnecessary side effects.
Amgen (AMGN)
Amgen (AMGN) leverages genetic data to create precision therapies targeting the genetic causes of diseases.
Amgen is advancing precision medicine by focusing on the genetic basis of disease. Its acquisition of deCODE Genetics has provided access to a comprehensive database of human genetic information, which Amgen uses to identify genetic variants associated with specific diseases. This information informs the development of new drugs that target the root causes of diseases at the genetic level, rather than addressing symptoms more generally.
In addition, Amgen applies this genetic information to stratify patients in clinical trials, selecting individuals whose genetic profiles suggest they are more likely to respond to a particular treatment. This helps improve the accuracy and efficiency of clinical trials, as it reduces variability in patient responses and accelerates the drug development process. The focus on human genetics allows Amgen to take a more precise approach to developing therapies, particularly for conditions with a known genetic component.