The COVID-19 pandemic accelerated adoption of an array of disruptive growth technologies, including e-commerce, fintech, and more.
Healthcare innovation is part of that trend, and the ARK Genomic Revolution Multi-Sector Fund (CBOE: ARKG) is an exchange traded fund for investors to consider as the pandemic compels healthcare professionals to explore new concepts in genetic testing.
Prior to the pandemic, many patients didn’t discuss genetics with primary care providers, but that landscape is changing.
“Propelled by the COVID-19 pandemic, we believe innovative virtual healthcare and genetic testing companies are poised to address these obstacles,” according to ARK Invest research. “Perhaps more importantly, these groups are highly incentivized to work together.”
ARKG’s Genetics Testing Opportunities
When it comes to making genetics testing more accessible at the primary care provider level, some ARKG components are already making the necessary investments.
“Groups like Teladoc (TDOC), One Medical (ONEM), and Accolade (ACCD) have invested aggressively in virtual primary care services. One Medical’s ‘click-and-mortar’ platform spans both digital and in-person primary care and incorporates its own EHR system,” notes ARK Invest.
Teladoc is ARKG’s largest holding at just over 7% of the fund’s weight, as of June 1. Accolade and One Medical combine for 3.3% of the fund’s roster.
There are other avenues into the genetics testing realms. For example, some ARKG member firms are using AI to enhance genetics testing procedures and bring that concept to a wider audience of patients.
“Meanwhile, testing providers like Natera (NTRA), Invitae (NVTA), and Myriad Genetics (MYGN) have launched AI-enabled chatbots to facilitate genetic testing,” adds ARK. “With acquisitions of Clear Genetics and YouScript, for example, Invitae’s platform offers consent, pre- and post-test education, automated family history collection, results reporting, virtual genetic counseling, integration with electronic healthcare records like Epic and Cerner, CDST capabilities, and low-cost patient-pay options.”
Invitae accounts for 1.76% of ARKG’s weight. The overall genetics testing market is forecast to reach $21.26 billion by 2027, posting a compound annual growth rate of 10.1% from 2020 through 2027, according to Allied Market Research. Prenatal and predictive and pre-symptomatic testing are the largest segments in this arena.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.