Genetic Analysis Stocks: Looking for Profits in Your DNA

Illumina (ILMN) earnings powered the genetic analysis sector on Wednesday.

Imagine a world where medications could be customized to work specifically for individual cases based on a patient’s genetic make-up. In the not so distant future, this could be possible, thanks to genetic analysis companies like Illumina. The industry’s largest player at $4 billion, Illumina applies cutting edge technologies to the analysis of genetic variation and function. After the bell yesterday, the company announced earnings of $24.7 million or 18 cents a share in the second quarter. The profits were nearly double last year’s $12.7 million Q2 profit, and EPS was in line with analysts’ expectations. Revenue was up 15% to $161.6 million. Today, Illumina shares are advancing by 9%, while most of rest of the sector moves modestly in either direction.

As a whole, Genetic Analysis Stocks Index is up by 1.5% today. It remains behind the S&P 500 by -14% over the last month.

Helicos BioSciences (HLCS) is also helping the industry average today. Shares of the Cambridge, Massachusetts-based company are adding 3% to a sector-leading 40% weekly rally. The company announced Wednesday the publication of what the press release described as, “a seminal discovery in nucleotide chemistry for single molecule sequencing.” The publication can be found in Nature Methods’ online edition.

Clinical Data (CLDA) is up by 2% today, as the remainder of the index moves sideways.

Shares of Affymetrix (AFFX) have shot up by 15% this week in anticipation of the company’s earnings report, which comes today after the bell. Yesterday Morgan Stanley analyst Marshal Urist upgraded the stock to equal-weight from underweight, saying that Q2 performance will be in line with or better than estimates.

Nanosphere (NSPH) is the Index’s worst performer over the last five days, down -9.5%. The company makes and markets the Verigene System — a molecular diagnostics platform that enables genomic and protein testing all in one place. Investors will have to wait until August 11 to hear the company’s second-quarter results.

On a daily basis, Myriad Genetics (MYGN), Exact Sciences (EXAS), and Luminex (LMNX) are laggards, slipping into negative territory.

As of this writing the Genetic Analysis Stocks Index is one of the three worst-performing tickerspy Indexes over the last month, down -7%.

Investors can follow the Genetic Analysis Stocks Index and view related performance charts and metrics at tickerspy.com.

Tags: AFFX, CLDA, EXAS, HLCS, ILMN, LMNX, MYGN, NSPH