Six stocks and funds to give investors exposure to genomics

The first map of the human genome, unveiled 14 years ago by Tony Blair and Bill Clinton at the White House, was not quite the game changer it had been expected to be.

Jung Ryu, a life sciences tools analyst at New York-based fund manager OrbiMed Advisors, says "The real catalyst for the take-off of genomics has been the next-generation technology that has brought the cost of gene sequencing to an incredibly low level", adding that "by the end of this year, it will be possible to buy table-top gene sequencing equipment that can do the same job for less than $1,000".

For investors, the question is how to play these developments - particularly since few of us are equipped to take an expert view on the scientific merit, or otherwise, of particular tools or technologies.

David Prosser outlines six ways for investors to gain the diversification that is important in all facets of investing in biotechnology.

Illumina

NASDAQ-listed Illumina has pioneered the development of affordable gene-sequencing equipment and continues to grow rapidly, attracting attention from a number of suitors.

Its latest coup is to pick up the contract for the NHS's 100,000 Genomes Project. Similar initiatives are running in countries all around the world.

Fluidigm

Based in San Francisco and also listed on NASDAQ, Fluidigm has developed techniques in areas such as single-cell biology, and has a diverse range of customers, ranging from big pharma to academic institutions to agricultural biotechnology companies.

Oxford Immunotec

One of the UK's leading biotech businesses, Oxford Immunotec's (OXFD) technology is focused on diagnostics - specifically it works with T cells, some of the body's specialist immune cells.

Products include a test for latent tuberculosis which has already been approved for sale in more than 50 countries. The firm is listed on NASDAQ.

Cellectis

French genome specialist Cellectis uses its technologies to alter the DNA of living organisms in order to modify or replace all or part of a gene.

Its work is being used in a variety of fields, ranging from new treatments for cancer and diabetes to the development of new crop varieties.

The company is quoted on the NYSE-Euronext exchange.

Biotech Growth Trust

For investors who prefer the collective fund approach, the Biotech Growth investment trust has an increasing exposure to genomics plays, including holdings in Illumina and Fluidigm.

The trust has been through several incarnations - and managers - since its launch as the Reabourne Merlin Life Sciences Investment Trust in 1997, but is now run with a mandate to invest globally, rather than only in Europe.

OrbiMed Advisors, the world's largest specialist healthcare fund manager, has been in charge since 2005.

Axa Framlington Health

Manager Gemma Game regards genomics as a key theme and Axa Framlington Health offers increasing exposure to such plays.

It has an impressive long-term record, although relative performance since Game took over in June 2011 has been patchy.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.