Genomics: The Next Generation of Oncology Diagnostics

1 May

Max Klietmann, VP of Research, LSN

Genomics is becoming a major buzzword in the diagnostics space. In short, the concept boils down to mapping an individual’s genome and predicting health risks, therapeutic efficacy, and/or other variables based on genetic predisposition. Despite some disappointments with genomics in certain other applications, it is rapidly making its headway in preventative and personalized treatment, especially in the oncology space.

Oncology research has helped to identify a host of genetic biomarkers, which creates a particularly compelling opportunity for a robust application of genome sequencing. Moreover, cancer and oncology represent a major indication area and a highly favorable market profile from an investor perspective. Moreover, when used as a diagnostics tool, there is minimal regulatory risk, enhancing attractiveness to investors even more due to the fast track to cash flows. Finally, thanks to the rapidly declining cost of this technology and the accuracy of projections it can deliver on a patient-by-patient level, it is well positioned to become a standardized component of a typical person’s regular health screening. In short – this is a dream opportunity for investors looking to gain from the rapid growth in the life sciences space without risking regulatory exposure.

According to LSN Company Database data, there are 54 emerging companies specialized in this space globally, and less than 50% have secured financing since January of 2012. This presents a particularly interesting opportunity to investors who are seeking the opportunity to find undiscovered value in a non-competitive space. Keep your eyes on this area as a hot sector in 2013.

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