Following the outbreak of Covid-19, medical institutions, pharmaceutical companies, and even governments are realising the importance and applications of genomics, both from a diagnostic and treatment perspective.

Consequently, analyst forecasts of the already $21.8bn genomics market predict immense double-digit 18.2% annual compounded growth over the next decade. After all, it could have a transformative impact on both medicine and diagnostics.

Needless to say, that could be a very lucrative opportunity. So, let’s dive into the details about investing in genetics shares.

What are genetics stocks?

Genetics stocks occupy a small section of the biotech industry. As the name suggests, these businesses focus on developing treatments for genetic diseases by repairing or replacing the faulty genes causing the problem.

The genomics industry isn’t particularly new and has been around for decades. But due to the high costs, commercialisation has been challenging and still remains that way today. However, thanks to recent technological advancements, development costs are falling drastically while simultaneously boosting accuracy. 

Therefore, it’s no surprise that research into gene therapy has accelerated, with potentially game-changing treatments entering clinical trials both in the UK and abroad.

Genetics shares can be categorised into three segments:

• Sequencing & analysis – Companies analysing genetic data to detect defects in patients
• Testing & diagnostics – Firms using sequencing data to diagnose genetic diseases
• Gene editing – Biotech groups developing gene therapies that eliminate defects in the genome sequence

While there is some overlap in each category, firms within their respective segments often have different target markets and don’t necessarily compete with each other. However, the level of competition within each category is rising as more businesses seek to capitalise on the massive growth opportunity.

Unsurprisingly, this level of growth comes with a high volume of risk. The medical industry is highly regulated, with each test, device, and drug required to meet rigorous standards. 

Drug development is particularly notorious for its difficulty. In fact, a study by the Biotechnology Innovation Organisation showed that only 9.6% of treatments that make it to phase one clinical trials actually reach the market.

So, it’s hardly surprising that most pure-play genetics stocks are exceptionally volatile. And in some cases, the failure of a clinical trial can be a death sentence for these businesses. But all it takes is one successful treatment to potentially unlock multi-billion-dollar annual revenues.

Top genetics shares in the UK

Let’s explore the top three UK genetics shares in order of market capitalisation as of January 2026.

Genus

Genus is a niche but world-leading genetics sequencing business that focuses on the animal agriculture industry. The company owns directly (and indirectly through partnerships) various herds of pigs and cattle.

Using its sequencing technology, the group tests and identifies key desirable traits among the herd, such as feed efficiency, disease immunity, protein and fat content, and fertility.

Management then generates revenue by selecting the animals with the strongest genetic profile for breeding with farmers’ herds. The end result is healthier offspring, lowering costs for farmers while simultaneously increasing the quality of the end product for consumers.

Oxford Nanopore Technologies

Oxford Nanopore was spun out of the University of Oxford in 2005. Since then, the business has become one of the UK’s largest genetics stocks, developing a proprietary DNA and RNA sequencing technology. It’s the first one of its kind to provide real-time data analysis and rapid testing.

This technology has been embedded into a variety of devices, which the group primarily sells to scientific researchers involved with clinical trials. However, management has also been broadening its horizon, targeting several applied markets. 

The list includes consumer healthcare with its Covid-19 rapid testing solution, agriculture by identifying superior plant genomes, and even the environment by analysing the microbial composition of glaciers.

More recently, with its Covid-testing segment unsurprisingly shrinking, the business primarily sells life-science research tools like DNA and RNA sequencing solutions (MinION, GridION, and PromethION platforms,) driving more consistent revenues and cash flows.

OXB

OXB (formerly known as Oxford Biomedica) is a rising global gene and cell therapy Contract Development and Manufacturing Organisation (CDMO).

The business outsources its capabilities to other drug developers via its LentiVector platform. This drastically reduces the cost of developing gene and cell therapies. So, it’s not surprising that pharmaceutical titans like Bristol Myers Squibb, AstraZeneca, and Novartis are all active customers.

These big pharma clients pay ongoing milestone fees throughout development, as well as a royalty on sales for any drug that makes it to market. Most of the current drug pipeline using LentiVector remains relatively early-stage. However, continued innovation and expansion have given the company a stronger manufacturing presence within the US market as part of its wider expansion strategy.

Investing in the US genetics industry

American genetics stocks have to navigate an equally complex regulatory environment. In the UK, all medical treatments and tests need to be approved by the Medicines & Healthcare Regulatory Agency (MHRA). In the US, approval is required by the Food & Drug Administration (FDA).

The US stock market has plenty of genetics shares listed. Here are some of the leading businesses in this space in order of market capitalisation as of January 2026:

1. Illumina (NASDAQ:ILMN) – $21.6bn market cap
2. CRISPR Therapeutics (NASDAQ:CRSP) – $5.1bn market cap
3. Fulgent Genetics (NASDAQ:FLGT) – $868.0m market cap
4. Pacific Biosciences of California (NASDAQ:PACB) – $667.2m market cap
5. Editas Medicine (NASDAQ:EDIT) – $198.2m market cap

Are genetics stocks right for you?

In 2026, genetics stocks continue to show tremendous long-term growth potential. But they remain highly volatile stocks making them a risky endeavour. Just looking at these eight UK and US genetics shares demonstrates that perfectly. 

Needless to say, individuals thinking about investing in genetics stocks need to have a high risk tolerance. While genetic research may have been around for decades, the same can’t be said for most of the stocks listed today.

Even the multi-billion-pound market cap stocks on this list are still executing fundraising efforts to fuel growth. And with a generally high failure rate within this industry, there’s a high chance most will fail in their quest to capture the multi-billion-dollar market opportunity.

Needless to say, prudent due diligence, careful research, and a diversified investing approach are critical when investing in such high-risk, high-reward sectors. By owning a basket of companies in this area, the odds of finding the future industry leader climb higher.

The post Investing in Genetics: Top UK Genetics Stocks of 2026 appeared first on The Twelfth Magpie.

After last week’s sell-off, Ark Invest started this week by purchasing shares several companies, including the three listed below.

All three are considerably down on their 2021 highs, and were pushed lower last week on the back of higher than expected US inflation data.

So, what was she buying? Wood added to her existing exchange-traded fund stakes in CRISPR Therapeutics (NYSE:CRSP), Invitae Corporation (NYSE:NVTA), and Pacific Biosciences (NASDAQ:PACB).

CRISPR Therapeutics

CRISPR Therapeutics is a biotech company using gene therapy to try to correct genetic mutations to treat and cure diseases. The firm has a market cap of around $4.28bn, but is down 57.1% over the past 12 months.

CRISPR (an acronym for clustered regularly interspaced short palindromic repeats) is a technology that can be used to edit genes. It’s considered more efficient than other technologies out there.

CRISPR plans on submitting its candidate treatment for blood disorders for regulatory approval at the end of this year. The company has also partnered with Vertex Pharmaceuticals, and reported positive clinical trial data with candidate products in sickle cell disease and beta thalassemia.

It could be a big winner, however, it will carry a lot of risk until it gains regulatory approval. The business itself has noted caution on the part of regulators with regards to gene therapy treatments.

Invitae Corporation

Invitae stock reached $61 a share last year before collapsing. It now trades for just $2.32. The stock is down 92% over the past year.

The biotechnology company does genetic screening and hopes to bring its product to billions of people. Invitae’s screening looks to highlight whether individuals have higher risk profiles for hereditary cancer and rare genetic diseases, among other illnesses.

Oncology is a major part of the business, accounting for almost two-thirds of its revenue in the first quarter.

The firm is in an interesting position after its stock price crash. It has a market cap of just short of $500m, but had $885 million in cash at the end of the first quarter. However, Invitae doesn’t anticipate being cash flow positive until 2025.

Pacific Biosciences

Pacific Biosciences is a biotech firm that develops and manufactures systems for gene sequencing and real time biological observation.

This stock has also crashed over the past year, from highs of $36 to the current $4.32. The stock is down 84% over the past year.

In 2019, Pacific Biosciences launched its Sequel II genome sequencing system, that offers eight times the data output of its older model. It also brought accuracy in line with traditional sequencing methods.

One issue is that the company is spending almost all of its revenue on development at the moment. Last year, it spent $113m. In 2021, the firm generated $130m in revenue.

On my to-do list

Given Wood’s interest in these stocks, I’ll be taking a closer look myself to see if any of them would be right for my portfolio. Biotechs are a bit new to me, so I’d want to do my research to understand both the risks and opportunities in the field.

The post Here’s what star stock picker Cathie Wood bought after the market correction! appeared first on The Twelfth Magpie.