GenomeWeb Top 40 Drops 7 Percent in October, Outpacing Decline in Broader Market

NEW YORK – Stocks of omics and molecular diagnostics companies declined more steeply in October than the broader market, as the GenomeWeb Top 40 tumbled 7 percent.

Meanwhile, the Dow Jones Industrial Average fell 1 percent, the Nasdaq fell less than 1 percent, and the Nasdaq Biotech Index declined 2 percent. Of the 40 firms tracked by GenomeWeb, 32 saw their stock prices fall month over month and eight saw their shares rise in value.

Pacific Biosciences led the winners in October, as its shares were up 28 percent month over month. In October, the sequencing company launched a new chemistry for its Revio platform that it said will reduce sample input requirements and cut experiment costs by as much as 50 percent. In a note to investors, TD Cowen analyst Dan Brennan said the new chemistry should expand the use case for the Revio system.

The company also announced during the month that its Onso short-read sequencing platform joined the 10x Genomics compatible partner program and that it signed a research collaboration agreement with the National Cancer Center of Singapore (NCCS) to study the genomics of prevalent cancers in Asia.

Castle Biosciences posted the second-largest gain during October, with shares up 22 percent. The company announced positive data from the CONNECTION study, which found use of its DecisionDx-Melanoma test could reduce unnecessary biopsies by 64 percent. It also presented data from a prospective, multicenter study at the International Congress of the Society for Melanoma Research showing that the DecisionDx-Melanoma test aided in patient risk assessment.

In a note to investors, BTIG analyst Mark Massaro highlighted the company's TissueCypher test, suggesting it represents "a large market opportunity." The bank reiterated its Buy rating and raised its price target to $40 from $35.

Illumina posted the third-largest gain in October, with shares up 11 percent. The company in October launched its MiSeq i100 instrument line, a push-button sequencing system. In a note to investors, TD Cowen's Brennan called the launch a "modest driver to growth" and said that it should "help solidify [Illumina's] position with smaller labs" and could open "a new lower throughput clinical opportunity."

Also in October, Illumina and researchers at Baylor College of Medicine published a benchmarking study that found its Dragen genome analysis software outperformed software from Google and the Broad Institute for variant analysis.

23andMe posted the largest decline in October, with its shares down 33 percent month over month. At the end of September, CEO Anne Wojcicki said in a US Securities and Exchange Commission filing that she would not consider third-party takeover proposals for the company and that she remained committed to taking it private herself. During October, the company executed a 1-for-20 reverse stock split.

CareDx reported the second-largest decline in October, with shares down 29 percent. The company reported during the month that it expects its Q3 2024 revenues to rise 23 percent year over year. However, in a note to investors, a BTIG analyst suggested that "confusing communications" at a company analyst day on Oct. 15 negatively impacted its stock, which fell 16 percent following a company presentation in which management did not comment on the firm's 2024 guidance and declined to take any questions. The bank maintained its Buy rating for CareDx's stock.

10X Genomics posted the third-largest decline in October, with shares down 29 percent. The company's shares dropped 26 percent early in the month after it released preliminary Q3 results showing a 1 percent decline in revenue year over year.