We recently published a list of 8 Best Gene-Editing Stocks to Buy. In this article, we are going to take a look at where Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) stands against other best gene-editing stocks to buy.
Gene editing is an advanced medical technique within gene therapy that involves precisely modifying an individual’s DNA to treat or prevent diseases. This approach directly alters genetic material to correct mutations, enhance cellular functions, or eliminate disease-causing genes. Industry experts believe that gene editing has the potential to revolutionize the treatment of genetic disorders, cancers, and various other conditions.
According to IMARC, the U.S. healthcare infrastructure has adapted to support gene-editing therapies. IQVIA reported that 114 gene therapy trials were initiated in 2023, with approximately 77% sponsored by the healthcare industry. Kella Kapnisi, Head of Cell and Gene Therapy at Team Consulting, noted that the FDA has approved 38 cell and gene therapies, many of which have reached commercialization through predominantly manual laboratory manufacturing processes.
U.S. Gene Editing Market Growth, Breakthrough Therapies, and Challenges Ahead
The U.S. gene editing market has experienced significant growth, valued at $3.19 billion in 2024, while genome editing stood at $3.55 billion in 2023. Looking ahead, projections indicate a substantial surge, with gene editing expected to reach $13.99 billion and genome editing forecasted at $16.49 billion by 2034. These growth trends reflect compound annual growth rates (CAGRs) of 15.93% and 16.6%, respectively, underscoring the increasing adoption and investment in gene-editing technologies.
Several breakthrough therapies are paving the way for advancements in gene editing. Precision BioSciences’ PBGENE-HBV represents the first FDA-cleared in vivo gene-editing trial for chronic hepatitis B. Early data from the trial indicate a 70% reduction in the hepatitis B surface antigen (HBsAg) in two out of three patients at the lowest dose (0.2 mg/kg), targeting covalently closed circular DNA (cccDNA) to address the root cause of HBV persistence. YolTech Therapeutics has also made strides with its hyperoxaluria treatment, demonstrating a 70% reduction in harmful oxalate levels in patients with primary hyperoxaluria type 1 through lipid nanoparticle-delivered gene editing. Additionally, AccurEdit’s cholesterol therapy has shown promising results, achieving a 70% reduction in LDL cholesterol with a single-dose treatment by silencing PCSK9.
The number of patients receiving gene therapies is expected to fluctuate over the next decade. In 2020, 16,244 patients were treated, with this figure projected to rise to 94,696 by 2025 before gradually declining to 65,612 by 2034 as existing patient stocks deplete. Over the next decade, an estimated 1.09 million patients could benefit from gene therapies, with cancer patients making up approximately 48% of recipients.
From a financial and economic standpoint, annual spending on gene editing therapies is anticipated to peak at $25.3 billion in 2026 before stabilizing at $21.0 billion by 2034. These therapies are projected to yield an additional 5.12 quality-adjusted life years (QALYs) per patient, with each QALY valued at $43,110. Insurance coverage is expected to play a crucial role in facilitating access, with Medicare, Medicaid, and private insurers projected to cover $8.1 billion, $5.44 billion, and $12.2 billion annually, respectively.
Despite these advancements, the gene-editing industry faces key challenges. Delivery risks remain a concern, as adverse events associated with viral vectors and conditioning regimens pose safety hurdles. Regulatory scrutiny is also increasing, with the FDA’s pending decision on Abeona Therapeutics’ recessive dystrophic epidermolysis bullosa (RDEB) therapy, expected by April 29, 2025, highlighting the evolving standards for gene-editing approvals.
Our Methodology
For this list, we scanned Insider Monkey’s database of over 1,000 hedge funds as of Q4 2024 and selected companies involved in the development and commercialization of gene-editing technologies. From there, we picked eight companies with the highest number of hedge fund investors and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A healthcare professional in front of a console, monitoring the progress of a transplant patient.
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)
Number of Hedge Fund Holders: 27
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) stands seventh on our list of the 8 best gene-editing stocks to buy. It is a biotechnology company that uses genetic engineering to create bacteria for industrial applications. Its cell programming platform produces a variety of products, such as food ingredients, therapeutics, and chemicals.
Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) has formed strategic partnerships with major biopharma firms and government agencies, which allows it to scale operations and diversify its revenue streams. The company also achieved significant cost savings, reducing its operating expenses by $190 million annually by Q4 2024, which improves its path to profitability.
In Q4 2024, the corporation saw strong growth in Cell Engineering revenue, up 29% year-over-year to $35 million, thanks to expanding relationships with large biopharma customers. The company ended 2024 with $562 million in cash, no bank debt and reduced its cash burn to $55 million, providing a solid financial foundation. Total revenue for Q4 was $44 million, up from $35 million in Q4 2023, while the adjusted EBITDA loss narrowed to $57 million.
However, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) faced challenges, including a 51% decline in Biosecurity revenue due to the end of K-12 COVID testing contracts. For 2025, the company projects revenue between $160 million and $180 million, with Cell Engineering expected to contribute $110 million to $130 million and Biosecurity at least $50 million. The company aims to achieve adjusted EBITDA breakeven by the end of 2026 through cost reductions and strategic growth initiatives.
Overall, DNA ranks 7th on our list of best gene-editing stocks to buy. While we acknowledge the potential of DNA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center