Earlier this week, the Global X Genomics & Biotechnology ETF (Nasdaq: GNOM) debuted, giving investors a new avenue for tapping the fast-growing genomics market.
GNOM tracks the Solactive Genomics Index and “seeks to invest in companies that potentially stand to benefit from further advances in the field of genomic science, such as companies involved in gene editing, genomic sequencing, genetic medicine/therapy, computational genomics, and biotechnology,” according to Global X.
Companies are only eligible for inclusion if they generate at least 50% of their revenues from genomics related business operations. The index is market cap weighted with a single security cap of 4.0% and floor of 0.3%.
In a recent research note, Global X highlighted four GNOM components that are at the forefront of various genomics endeavors, including genetic sequencing, gene therapy, gene editing and computational biology.
Four Important Names
Ilumina, Inc. (NASDAQ: ILMN) is a leader in the genetic sequencing market.
“The company has developed a large portfolio of sequencing products applicable to a range of genomic complexity and functional analysis,” said Global X. “Illumina’s primary method is sequencing by synthesis (SBS), which the company estimates generates more than 90% of the world’s sequencing data.”
Bolstering the long-term case for genetic sequencing is the field’s ability to help healthcare professionals more accurately diagnose ailments, delivering a higher level of personalized patient care.
When it comes to computational biology and genetic diagnostics, Genomic Health, Inc. (NASDAQ: GHDX) is creating an enviable market position for itself.
“Genomic Health leverages genetic insights to inform and even personalize patient engagement at every stage of care, from diagnosis to recovery. The company has explicitly committed itself to eliminating the ‘one-size-fits-all’ approach to oncology that can often result in over- or under-treatment,” according to Global X.
Another GNOM holding, bluebird bio, Inc. (NASDAQ: BLUE), is a leader in the fast-growing gene therapy market.
“Bluebird Bio is a gene therapy company that has focused on the latter approach. Its methods add functional copies of a faulty gene to a patient’s stem cells, which are in-turn re-administered to the body via a bone marrow transplant. The patient’s newly implanted cells duplicate via a process called engraftment,” according to Global X.
Swiss company CRISPR Therapeutics AG (NASDAQ: CRSP) is involved in gene editing and the much-hyped CRISPR-Cas9 technology.
“While gene editing is still very much an early-stage field, the few companies in the field like CRSPR Therapeutics have already built robust treatment pipelines,” said Global X. “Currently, CRSPR Therapeutics has R&D efforts to treat cystic fibrosis, Duchenne muscular dystrophy (DSD), Hurler syndrome, type 1 diabetes and several other diseases.”
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