Genomics: Investing in the building blocks of life

Keytrade Bank

keytradebank.be

September 14, 2026

3 minutes to read

After AI, investors are looking for the next long-term growth story. Genomics, the reading and rewriting of our genetic code, is one that crops up increasingly often. The opportunities seem huge, and not just in healthcare. Can you get a piece of the pie now, too?

Twenty years ago, having your DNA read and analysed cost millions of euros. Today, it can be done for a few hundred euros – in less than a day. This spectacular reduction in the cost has set an entire industry in motion. From cancer diagnoses to gene therapy and personalised medication, anyone who can read and edit the genetic code is changing healthcare on a fundamental level.

What exactly is genomics?

Genomics is the study of an organism's genome, meaning its genetic material or DNA. Whereas genetics traditionally focuses on individual genes, genomics looks at the bigger picture – how all the genes work together, with each other and with their environment.

That may sound academic, but the applications are very specific:

Diagnostics: Genetic tests that detect congenital disorders, hereditary cancer risks or rare diseases, sometimes using a simple blood sample.
Personalised medication: Treatments can be tailored to patients' genetic profiles. This is a game-changer in oncology in particular, as tumours can vary greatly from a genetic perspective.
Gene therapyand gene editing: Technologies such as CRISPR make it possible to 'rewrite' errors in DNA in a targeted manner. An initial CRISPR treatment has since been approved.
Synthetic biology: This not only sequences DNA, but can also be used for designing and building DNA, with applications in pharmaceuticals, agriculture and industry.

Why is the sector attractive to investors?

1. Falling costs, a growing market

The cost of sequencing a human genome has fallen from astronomical amounts to everyday prices in two decades. Mapping the first human genome cost more than $500 million and took thirteen years. Today, manufacturers market devices that can sequence a full genome for around $200 (source).

Every price fall opens up new markets, and what was previously only reserved for research laboratories may become routine in hospitals over time. The gene editing market alone is projected to grow from around $13.5 billion this year to almost $48 billion in 2034, with average annual growth of more than 17% (source).

Note, however, that a rapidly growing market is not yet a guarantee of returns on the stock market. In the cases of solar energy, the early days of the internet and electric cars, it later turned out that the technology did indeed break through, but many investors were unable to capitalise on the trend.

2. Artificial intelligence acts as an accelerator

Genomics produces huge amounts of data – far too much, in fact, for humans to process on our own. AI and machine learning assist with interpreting the mountain of genetic information, recognising patterns and identifying drug candidates faster. The cross-pollination between AI and genomics is one of the most debated issues in the biotech industry.

As an example, researchers recently used an AI model to design viruses that can kill certain antibiotic-resistant bacteria (source). While the medical promise is clear – creating new weapons against resistant bacteria – the technology naturally also raises questions about security and abuse.

3. Ageing and prevention

Our populations are ageing and the cost of care is rising. As genetic information becomes more affordable and more accessible, medicine may see a greater shift towards prediction and prevention.

However, success on a scientific level does not automatically mean success on a commercial level. One such example is Casgevy, a treatment for sickle cell disease and more. At the end of 2023, it was the first approved therapy based on the CRISPR genetic technology. Yet the commercial reality is more modest. In 2026, three years after its approval, around 500 patients worldwide received or had started treatment (source). The bottleneck lies not in the efficacy, but in the need for specialised treatment centres and how difficult it is to collect stem cells from patients. Add to that the cost of around $2 million per patient, which must be delivered by insurers and governments (source).

Which players can you find in the sector?

The genomics sector is more diverse than it may seem at first glance. Broadly speaking, we distinguish between three types of companies:

The 'shovels and pickaxes': Manufacturers of sequencing equipment, reagents and laboratory technology. Think of companies such as Thermo Fisher Scientific, Illumina and Twist Bioscience.
Therapeutics developers: Biotech companies working on gene therapies and gene editing. The upside potential is greatest here, as is the risk – one failed clinical study can cause a share price to plummet. Think of companies such as CRISPR Therapeutics, Intellia Therapeutics and Beam Therapeutics.
Data and software players: Companies that analyse, store and interpret genetic data, help to model proteins or design medicines. Think of players such as Tempus AI, Absci, Schrödinger, Recursion Pharmaceuticals and Sophia Genetics.

The risks – it's a marathon, not a sprint

Investing in genomics comes with significant risks:

High volatility: A large number of genomics companies are (still) losing money. Their valuation depends on future successes, meaning that prices fluctuate wildly.
Binary risk: For therapeutics developers, disappointing study results or being rejected by regulators can more than halve their price in one day.
Interest ratesensitivity: Growth companies with profits projected to arrive in a far-flung future are particularly sensitive to rising interest rates.
Competition and patent disputes: Technologies are evolving rapidly, and the legal battle for intellectual property is cause for concern.
Ethical andregulatory uncertainty: Gene editing raises societal questions, and regulation can slow down the time it takes for products to come to market. While there is widespread support in society for the treatment of serious hereditary diseases, this can dissipate when gene editing is used to improve human characteristics or when gene changes are passed on to the next generations.
Reimbursement: A brilliant test or therapy is only commercially successful if health insurers and governments want to pay for it.

How can you invest in genomics?

Individual shares

Those who do their homework thoroughly can invest directly in listed genomics companies. However, this requires knowledge of clinical pipelines, products and services, growth potential, cash positions ('how many months can the company continue without fresh capital?'), regulations and so on. For most individual investors, the chances of selecting the single winner are small, and the risk of getting their fingers burnt is very real.

Trackers (ETFs) and funds

Those who want to invest without putting all their eggs in one basket can opt for a tracker or investment fund on genomics, biotechnology or healthcare on a broader scale. Doing so will spread the company-specific risk over dozens of positions. You should bear the following in mind:

Composition: Some 'genomics' trackers primarily include small, speculative companies, while others rely on established pharmaceuticals.
Costs: Thematic trackers generally charge higher management fees than broad global index funds.
Currency: The sector is largely based on the US dollar, so you often run a dollar risk.

A satellite rather than a core

For most investors, genomics best fits in their portfolio as a satellite – a limited percentage on top of a well-diversified core portfolio. This allows you to benefit from breakthroughs in the sector without disappointments affecting your assets as a whole. Spreading investments over time (through regular purchases, for example) can also help to mitigate the high volatility.

Genomics is one of the most fascinating long-term themes of this decade. Science is making real breakthroughs, costs are falling, AI is accelerating research and an ageing population is creating long-term demand. Yet there is a long, bumpy road ahead between scientific promise and stock market gains. Investing in genomics is therefore best done with long horizons, a diversified approach and money that you can happily put aside for a few years.

Before investing, be sure to read up on the key features and risks of financial instruments.