Gene Tech Opens Doors
Your genes determine more than your eye color or your physique. The propensity of you or your offspring to develop certain diseases is highly influenced by genetics. The good news is research into the genome, your complete set of genes, has started to drive huge medical breakthroughs and new drugs are regularly approved for people with rare genetic conditions. As a result investment opportunities up and down the genomic food chain are plentiful.​​

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  • The cost of sequencing the human genome has declined considerably since 2001. According to Illumina, the premiere provider of genetic analysis technology, its goal is to reach a $100 cost sometime in the future. To date over 1.5 million genomes have been sequenced and studied.

  • Next-generation sequencing (NGS), which allows for analysis of the genome, is reducing the costs of treatment and improving the accuracy of diagnosis and the efficacy of treatment. As NGS advances, the research and development of drugs and diagnostic tools continue to accelerate.

  • Gene analysis is a priority worldwide. In the U.S. the All of Us study is geared to find genetic links to diverse diseases. Additionally, over 40 countries internationally are also analyzing the gene sequences of their citizens. These discoveries will spur even more research into diseases that can be targeted.

  • Investment opportunities exist in medical tools companies that are discovering the links between genes and medical conditions, testing companies that identify genetic abnormalities and biotechnology and pharmaceutical companies that develop products to treat the diseases that stem from genetic mutations.

The following position represented the noted percentage of Alger’s assets under management as of March 31, 2019: Illumina, 0.8%.

The views expressed are the views of Fred Alger Management, Inc. as of June 2019. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund shares.

Risk Disclosure: ​Investing in the stock market involves risks, and may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Technology and healthcare companies may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies.​​​​

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800.305.8547 (Retail) / 212.806.8869 (Institutional) ​