Investing in genetics stocks is a risky endeavour. But given that industry specialists have and continue to describe this space as the future of medicine, the potential shareholder returns are undoubtedly impressive.
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 multi-billion-dollar genomics market predict immense double-digit annual 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.
| Company | Category | Description |
| Oxford Nanopore Technologies (LSE:ONT) | Sequencing & analysis | Provides real-time genomic data analysis solutions used by scientific researchers in and out of the pharmaceutical industry. |
| Genus (LSE:GNS) | Sequencing & analysis | Provides selective breeding services to the animal agriculture industry based on desirable genetic traits. |
| Oxford Biomedica (LSE:OXB) | Gene editing | Provides a proprietary drug development platform for larger pharmaceutical companies to develop gene and cell therapies at a significantly lower cost. |
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, it’s PromethION sequencing devices have been flying off the shelves, driving revenues above and beyond expectations in 2025.
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 Biomedica
Oxford Biomedica is a rising gene and cell therapy business specialising in viral vectors. In oversimplified terms, the company re-engineers existing viruses to deliver improved genetic material into patients’ cells.
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:
- Illumina (NASDAQ:ILMN)
- CRISPR Therapeutics (NASDAQ:CRSP)
- Fulgent Genetics (NASDAQ:FLGT)
- Pacific Biosciences of California (NASDAQ:PACB)
- Editas Medicine (NASDAQ:EDIT)
Are genetics stocks right for you?
In 2025, 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 is 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.