The Human Genome Project1 took about 13 years and roughly $2.7 billion in public funding to produce the first reference human genome. Since then, the cost of reading a genome has fallen steeply. The National Human Genome Research Institute's own cost tracking2 puts the cost of sequencing a human genome at roughly $95 million in 2001 and under $1,000 by 2022. That tremendous change has altered what researchers, device makers, and drug developers can realistically attempt, and it is one reason genomics has become a serious topic for scientists and investors.
The business side
For companies in healthcare, cheaper sequencing shows up in practical ways. Diagnostics can be more targeted. Clinical trials can be built around patients who share a genetic marker, which can make them smaller and more focused. Tools and instrument makers sell into a growing base of labs, and in December 2023 the FDA approved the first therapy based on CRISPR gene editing.3 For executives and founders, this raises real questions about competition, partnerships, and where capital in the industry is flowing.
The investment side
Genomics is a long-horizon theme. Many companies in the space are early stage, and clinical setbacks, regulatory decisions, and reimbursement rules can move their stock prices sharply in either direction. A theme can be sound and still be a poor investment at the wrong price or at the wrong size in a portfolio. Any exposure is worth weighing against the rest of a person's financial plan rather than on its own merits.
A note for people who work in healthcare
If your career is in this industry, your salary, bonus, and any company stock or options may already depend on the same forces that move healthcare stocks. Adding a sector investment on top of that can concentrate risk more than it first appears. A useful starting point is to look at your whole picture, including your employer and your equity compensation, before adding exposure to any single theme.
November 10 webinar with Medical Alley
On November 10, Summit Investment Advisors is presenting a live webinar with Medical Alley titled AI, Longevity, and the Next Medical Breakthroughs: What It Means for Your Money. Our guest is Ovid Amadi, PhD, Multiomics Portfolio Manager and Director of Research at ARK, where he manages the firm's genomics- and biotechnology-focused portfolios and leads its life science research.
Before joining ARK in 2025, Dr. Amadi was a Managing Director at RTW Investments and a Principal at Boston Consulting Group. He holds a PhD in Medical Engineering and Medical Physics from the Harvard/MIT Division of Health Sciences and Technology.
Dr. Amadi will walk through how his team evaluates companies in the field, and we will cover how a theme like this fits into retirement and personal investment planning. The recording will go out to Medical Alley's list afterward for anyone who can't attend live.
The registration will be added here when available.
If you have questions about how genomics fits your plan, or how much of your net worth is already tied to healthcare, we are glad to talk it through. You can schedule a free consultation here.
1 https://www.genome.gov/11006929/2003-release-international-consortium-completes-hgp
2 https://www.genome.gov/about-genomics/fact-sheets/DNA-Sequencing-Costs-Data
Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Summit Investment Advisory Services, a Registered Investment Advisor. Summit Investment Advisory Services and Summit Investment Advisors are separate entities from LPL Financial. Investing involves risk, including possible loss of principal. Investments concentrated in a single sector may be more volatile than the broader market. The opinions of guest presenters are their own and may not reflect those of Summit Investment Advisors or LPL Financial. This is not a recommendation to buy or sell any security.
