GenomeWeb Top 40 Index Grows 13 Percent in July, Outperforming Broader Market

In July, Thermo Fisher Scientific completed its acquisition of Olink. As a result, Olink was removed from the GenomeWeb Top 40 and replaced by 908 Devices.

NEW YORK – Stocks of omics and molecular diagnostics companies soared in July, outpacing the broader market.

Overall, the GenomeWeb Top 40 was up 13 percent. The Dow Jones Industrial Average rose 4 percent, the Nasdaq declined by 1 percent, and the Nasdaq Biotech Index increased 7 percent. Of the 40 firms tracked by GenomeWeb, 39 saw their stock prices rise month over month, while a single firm — Natera — saw its shares decrease in value.

Pacific Biosciences led the winners in July, as its shares were up 50 percent month over month. The company did not report any news that appeared to drive the rise in value, though PacBio's low share price means relatively small changes in price can produce dramatic swings on a percentage basis.

In a July note to investors, Canaccord Genuity analyst Kyle Mikson observed that the company will likely place significantly fewer of its Revio instruments in 2024 than it did in 2023 and that it faces headwinds including "uncertainty related to funding for new capital equipment, procurement delays, small to mid-size existing customers delaying upgrades to Revio, and long sales cycles for new customers."

CareDx posted the second-largest gain in July, with shares up 29 percent month over month. The company reported a 31 percent year-over-year rise in Q2 revenues as well as a 17 percent increase in test volume. It raised its 2024 revenue guidance to between $320 million and $328 million.

NeoGenomics Laboratories posted the third-largest gain, with shares up 28 percent month over month. For Q2, the company reported $164.5 million in revenues compared to $146.9 million in Q2 2023, beating analysts' average estimate of $162 million. It increased its full-year 2024 revenue guidance to a range of $655 million to $667 million, up from its previous guidance of $650 million to $660 million. It also raised its full-year 2024 net loss estimate, however, projecting a net loss of $81 million to $88 million, up from $66 million to $72 million.

Natera was the only company in the GW Top 40 to post a decline in stock price in July, with shares down 5 percent month over month. The company did not report any news that appeared to drive the decline.