Drug Renaissance
Next-generation sequencing (NGS) allows for analysis of the human genome, the complete set of genetic material within a human. The ways drugs are developed and diseases researched have changed markedly because of NGS. Additionally, tools associated with NGS are reducing the costs of disease while improving the accuracy of diagnosis and the efficacy of treatment.


  • Since 2001 the cost of genome sequencing has declined considerably, allowing for more widespread use of these methods. As NGS technology advances and enables larger and more complex research projects, the cost of genetic analysis will continue to come down.

  • NGS has revolutionized drug development because researchers can now fully understand the effect of the human genome on disease as well as identify mutations to determine how best to treat diseases. Specifically, scientists are improving their understanding of cancer biology, discovering the causes of many heritable disorders and creating opportunities for preventive and predictive medicine.

  • NGS has only begun to unlock scientists’ understanding of biological systems. As NGS advances and more genetic data is collected, the research and development of drugs and diagnostic tools continue to accelerate.

  • To potentially capitalize on NGS, investors might consider health care technology companies that develop NGS equipment or tools as well as companies that use NGS to advance the diagnosis or treatment of diseases.​

The views expressed are the views of Fred Alger Management, Inc. as of March ​2018. 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.

Risk Disclosures: Investing in the stock market involves gains and losses and may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks, as the prices of growth stocks tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political and economic development.

Fred Alger & Company, Incorporated 360 Park Avenue South, New York, NY 10010 / www.alger.com

800.305.8547 (Retail) / 212.806.8869 (Institutional)​