The pandemic makes genomics the new golden calf

Genetic code on a computer screen Bill Oxford / Getty Images

After 13 years, the international consortium of the Human Genome Project first deciphered the complete sequence of the human genome in 2003. Two years earlier, former US President Bill Clinton referred to an advanced first draft as "the most important and wonderful map ever produced. for humanity ”.

The entire project then cost $ 2.7 billion.

Today you can get one of those maps for almost ten million times less.

Technological development, the collapse of costs and the reduction of times have driven the genomics sector, called to revolutionize medicine.

The arrival of covid-19 has also put it in the crosshairs of biotechnology, institutions and health companies when it comes to seeking solutions, according to Damien Ng, an analyst at Julius Baer.

This discipline focuses on the study of all genes, the complete DNA, of an organism, or, in other words, in the genetic instruction manual for its construction and maintenance.

In the case of humans, reading it, that is, sequencing it, is aimed, among other aspects, at looking for mutations that over time can lead to diseases, making an early diagnosis of others or designing treatments adapted to the patient.

Writing it, or editing it, aims to prevent ailments and open a new range of possibilities to treat them.

"One of the great potentials of this technology is to be able to make an early diagnosis of cancer through a blood test", comments Jordi Xiol, doctor in biochemistry and senior associate of the specialized venture capital fund Ysios, about biopsies liquid.

It is still in development, but it already moves millions in investment.

As a sample button, Xiol is targeting two US companies, Grail and Freenome, who share the goal of diagnosing cancer early without having yet launched a product on the market.

"Grail has raised $ 1.5 billion in financing, with contributions from Bill Gates and Jeff Bezos," he tells about the company, founded in 2016 and acquired at the end of 2020 by Illumina, a benchmark in the sector, for $ 8 billion.

Freenome, its competitor launched in 2014, has raised 500 million.

"The life sciences sector has proven to be one of those that have aroused the greatest investment interest in recent months," says Susana de Antonio, head of Euronext in Spain, by email.

Of the 117 companies that are part of this pan-European Exchange, four are dedicated to genomics.

"All of them have had a very active profile in 2020, having launched different trials related to the development of tests, treatments or vaccines for covid-19," he adds.

Genomics is a global market, in which the major players are found, above all, in the United States and some European countries such as the United Kingdom and Germany, and in which China will probably have a say in the future.

However, in Spain there have been companies for years that decided to bet on it.

This is the case of NIMGenetics, founded in 2008, specialized in the design and commercialization of genomic products and services for diagnosis. "It was clear that genomics and genetics were going to impact medicine in a very important way," says Enrique Samper, one of the three co-founders and CEO.

"It is a field that evolves four times faster than computing," he asserts.

NIMGenetics, also present in the US and Latin America, has grown every year since its foundation.

At the beginning in a more accentuated way and in the last four, says the businessman, between 15% and 20% per year.

Its 2020 turnover will exceed 13 million euros.

Samper predicts a bright future for the sector.

"In Spain there are magnificent researchers, there are quite a few companies dedicated to diagnosing a quality that has nothing to envy foreign companies".

However, he points out, a lot of investment is needed to transfer that scientific knowledge to the market.

"I believe that science is a great unknown in Spain and there is very little investment," says Isabela del Alcázar, PhD in molecular biology and Director of Sustainability at IE Business School.

"And on this occasion, I do believe that thanks to covid-19 funds will surely be reactivated."

On the other hand, there are companies dedicated to genome editing, which develop treatments based on their ability to change it.

These include CRISPR Therapeutics, Editas Medicine, Intellia Therapeutics and Beam Therapeutics.

"Without yet having any product on the market and in very early stages of clinical development, they have a market capitalization of more than 25,000 million," says Xiol.

"In particular, genomic modification is being explored as part of research in diseases such as sickle cell anemia, cystic fibrosis, and hemophilia," Ng notes.

And this is just a first step.

"If it is shown that this technology can be used safely and effectively in patients, it could be used later to treat more common diseases, such as degenerative diseases, autoimmune diseases, cancer, etc.", says Xiol.

For Yazzan Romahi, head of the investment team of Quantitative Solutions at JP Morgan AM, gene therapies represent an interesting and innovative space that pharmaceutical companies see as "the new area of ​​growth within the health industry".

That interest is one of the main catalysts for its growth.

“We believe gene therapies are at a crucial inflection point as we are seeing the field move from the pipeline to commercial reality.

And therefore it has the potential to be a major disruptor to the existing biopharmaceutical industry, ”says Romahi.

The JP Morgan fund focused on this type of treatment, with assets in CRISPR and Intellia, among others, has obtained “strong returns” since its inception.

They believe this trend will continue, driven by advances in clinical trials and the development of acquisitions and collaborations with established healthcare players.

Despite the good expectations linked to the sector, there is one aspect that, according to De Antonio, should not be forgotten.

“It is a very capital-intensive sector, with very long periods of maturity due to having to go through different phases of clinical studies, approvals, etc.

This adds a component of uncertainty and risk that the investor has to assess ”, reflects the head of Euronext.

This young industry makes its disruptive potential, its guiding role in personalized medicine and the prediction of high sales its main economic attractions.

There have been great advances in the field in recent years, such as the CRISPR gene editing technique, which won the 2020 Nobel Prize in Chemistry to its creators, Jennifer Doudna and Emmanuelle Charpentier.

However, according to experts, the revolution is only beginning.

Unequal access to health care

Advances in genomics mark the opening of a new era of precision medicine.

"One of the main goals of personalized medicine lies in its promise to offer a better patient experience in terms of health outcomes," reads Julius Baer's study.

But if it does eventually materialize, who and how many will those patients be?

The costs of personalized treatments remain high and there is a risk that the gap will widen even more between rich and poor people within a country, which for example does not have a public and universal health system, and between countries.

"There are several issues that need to be addressed if personalized medicine is finally available in our health systems through genomics," says Ng.

According to the author, the health care community, authorities, insurance and citizens will need to get involved to find an answer together. In an interview with the Financial Times, Jennifer Doudna, one of those responsible for the "scissors" CRISPR to edit the genome, said that innovation was the way to ensure that the technique was not prohibitive.

Higher efficiency, better performance and lower cost.

“I guess I grew up in a capitalist society where as technologies become more capable, more companies can do cool things and that reduces costs.

And we've seen it over and over again, "said the biochemist.