The second quarter of the year saw significant developments benefiting many HTEC constituents. particularly in the Precision Medicine and Genomics subsegments, which have experienced robust growth in 2024. Conversely, telehealth continues to strive to establish itself as the key player in the post-pandemic landscape investors had anticipated.
Some companies within the index faced competitive pressures from technologies developed by other constituents or experienced negative market reactions to restructuring efforts. In terms of reconstitution, the index saw Peptidream, the “Drug Discovery Powerhouse”, and leader in peptide and radiopharmaceuticals from Japan, being added to the ranks, while Privia Health Group was removed.
VettaFi’s ROBO Global Healthcare Technology and Innovation Index provides investors with a comprehensive, transparent, and diversified benchmark representing the global value chain of disruptive and emerging technologies in the healthcare sector. The index holds companies that derive a distinct portion of their business and revenue from the field of healthcare technologies and have the potential to grow within this space through innovation and/or market adoption of their products and/or services.
Top Contributors (Return / Contribution)
Alnylam Pharmaceuticals, Precision Medicine 60.69%/0.53%
Alnylam Pharmaceuticals, a leader in RNA interference (RNAi) therapeutics, focuses on treating various genetic, cardio-metabolic, infectious, central nervous system, and ocular diseases. They pioneered the first RNAi-based therapy, ONPATTRO, in 2018. Recently, their drug Amvuttra showed success in treating ATTR-CM, boosting their stock by nearly 50%. With four drugs on the market and a robust pipeline making them the clear market and technology leader in this space.
Guardant health, Genomics +42.9% / +0.80%
Guardant Health (GH) is a leader in liquid biopsy testing, known for Guardant 360, the first FDA-approved comprehensive liquid biopsy test for late-stage cancer across 50 types. In 2021, they launched Guardant Reveal for detecting residual disease in colorectal cancer. This quarter saw their Shield blood test for colorectal cancer screening approved as a primary non-invasive option. That is keeping it on track to be the first FDA-approved blood test meeting Medicare coverage requirements. Guardant aims to provide comprehensive cancer testing for both liquid and tissue samples.
Twist Bioscience, Genomics +42.06% / +0.55%
Twist Bioscience pioneers DNA writing for synthetic biology, using a proprietary silicon chip platform to manufacture a wide range of synthetic DNA products. These include custom genes, oligonucleotides, NGS library prep tools, and antibody libraries for drug discovery. Serving thousands of customers across sectors like academia, pharma, and agriculture, Twist also engages in drug discovery with its own proprietary candidates and partners with biopharma to develop antibody therapies. This year saw them increase revenue fueled by loosening pharma budget a successful rollout of their Express Genes.
Bottom Contributors (Return / Contribution)
Ginkgo Bioworks, Process Automation -64.77% / -0.74%
Ginkgo Bioworks provides AI-driven automation for cell engineering R&D, aiming to “make biology easier to engineer.” They offer platform services enabling customers to bring products to market, earning through fees and downstream value shares like milestones, royalties, or equity. Facing revenue pressures, they shifted to frontloading contracts but still missed analyst estimates by 18%. Despite this, Ginkgo forecasts 24% annual growth over the next three years and burn rate has been extended.
Exact Sciences, Diagnostics -36.29% / -0.60%
Exact Sciences pioneered colorectal cancer screening with their non-invasive Cologuard Stool DNA test. This isthe first multitarget stool DNA test for colorectal cancer covered by Medicare and included in American Cancer Society guidelines. Despite meeting estimates, there’s concern that new liquid biopsies might replace Cologuard. Despite this, the company has no long-term debt. It has maintained 2024 guidance with expected screening revenues of $2.16-$2.18 billion. And it is developing their own liquid biopsy therapies. Cologuard remains preferred for patients avoiding clinics or blood draws.
Teladoc Health, Telehealth -35.43 / -0.36%
Teladoc Health, a US-based telemedicine provider, offers remote doctor consultations and virtual mental health services through BetterHelp. This quarter, revenue declined by 3.7%, following a previous miss in sales estimates. The decline is attributed to reduced ad spending and fewer paying users. However, the company added 2.2 million members since Q4, creating future cross-sell opportunities. Teladoc plans to target overseas markets to lower customer acquisition costs as well as AI powered member engagement.
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