GenomeWeb Top 40 Down 10 Percent in September, Outpacing Decline in Broader Market

NEW YORK – Stocks of molecular diagnostics and omics companies were down in September, posting losses that outpaced a decline in the broader market.

Overall, the GenomeWeb Top 40 was down 10 percent. By comparison, the Dow Jones Industrial Average was down 4 percent, the Nasdaq was down 6 percent, and the Nasdaq Biotech Index was down 4 percent. Of the 40 firms tracked by GenomeWeb, 38 saw their stock prices fall month over month, and two saw their share prices rise.

Of the two stocks that saw gains in September, SomaLogic posted the largest rise in stock price, with shares up 8 percent month over month.

The company announced during the month that it has expanded its collaboration agreement with drugmaker Novo Nordisk. Under the expanded agreement, which runs until the end of 2025, Novo Nordisk will use SomaLogic's SomaScan platform for drug research and development and will use its SomaSignal tests for research into cardiometabolic conditions and other diseases.

Company researchers also published a study in Nature Scientific Reports in which they explored the use of its platform for the early detection and stratification of cancers.

Quanterix was the month's other winner, with shares up 1 percent.

The company did not report any news driving the gain, though investment bank Canaccord Genuity upgraded its rating on Quanterix from Hold to Buy and increased its price target from $25 to $32, citing Quanterix's successful implementation of its business realignment program.

Invitae posted the largest decline among Top 40 firms in September, with shares down 34 percent month over month.

The company received a notice of noncompliance from the New York Stock Exchange as a result of its stock price closing below $1.00 per share for 30 consecutive days. Invitae is in the middle of a restructuring effort aimed at streamlining and focusing its business.

Personalis saw the second largest decline in September, with shares down 33 percent month over month. The company did not report any news driving the decline.

NanoString Technologies also saw a 33 percent month-over-month drop in stock price.

During the month, rival 10x Genomics won a preliminary injunction by the European Unified Patent Court that prevents NanoString from selling its CosMx high-resolution spatial biology platform and associated RNA detection reagents in Europe. The firm plans to appeal the ruling.

Prior to the ruling, Canaccord Genuity reiterated its Buy rating and $10 price target for NanoString, with analyst Kyle Mikson writing in a note to investors that the company is a leader in multiplex RNA spatial analysis and that its CosMx product "is well positioned for solid near-term performance."

NanoString during the month released its GeoMx Immuno-oncology Proteome Atlas Panel, which enables spatial profiling of more than 500 immuno-oncology relevant targets from formalin-fixed, paraffin-embedded tissue samples.

*Becton Dickinson paid a dividend of $.91 on Sept. 7.

**Thermo Fisher Scientific paid a dividend of $.35 on Sept. 14.