New stars of Genomic Diagnostics: Who will catch up to the old leader?
Here’s a look at 4 companies in the lab diagnostics sector that could become serious competitors to Labcorp Holdings
Yesterday I published a detailed investment thesis on Labcorp Holdings (LH), a long-standing leader in the laboratory diagnostics market. If you haven’t read it yet, I highly recommend checking it out.
Today, I’m diving into a few emerging companies that are stepping up as new competitors to Labcorp.
A new wave of companies is reshaping the laboratory diagnostics and personalized medicine landscape in the U.S. Against the backdrop of rising demand for early cancer detection and molecular testing, three recently listed NASDAQ players are gaining serious momentum. All of them are showing revenue growth, advancing cutting-edge technologies, and could become strong investment candidates over the next 1–2 years.
GeneDx (WGS)
GeneDx (formerly Sema4, IPO 2021) specializes in clinical genomic diagnostics. It holds one of the largest rare disease databases and has demonstrated strong growth (revenues +37–40% in 2022, reaching ~$170 million). Strengths include advanced sequencing and analytics technology; risks include ongoing losses and recent business restructuring. GeneDx is much smaller than Labcorp but aims to achieve profitability by 2025. If growth continues and the profitability goal is met, GeneDx could become one of the most promising players in the sector over the next 1–2 years.
Tempus (TEM) — AI and Next-Gen Medicine
Tempus went public in June 2024 and immediately caught attention: the company has built one of the world’s largest clinical and molecular data libraries. Its core strength lies in integrating genome sequencing with artificial intelligence for personalized diagnostics across oncology, cardiology, and more.
Tempus partners with pharma giants like Pfizer and AstraZeneca, and its revenue surged 66% in 2023 to reach $532 million. Despite still operating at a loss, the gap is narrowing and its client base keeps expanding. Tempus stands out thanks to its unique positioning at the intersection of Big Data, AI, and medicine.
GRAIL (GRAL) — Revolutionizing Early Cancer Detection
Formerly part of Illumina, GRAIL specializes in multi-cancer early detection (MCED) tests. Its flagship product, Galleri, can detect over 50 types of cancer from a single blood draw — a true game-changer for diagnostics.
Galleri sales jumped 45% in 2024, with over 137,000 tests administered. GRAIL secured coverage for its test via TRICARE and entered a strategic partnership with Quest Diagnostics to broaden access. Key catalysts for 2025 include potential FDA approval and expanded insurance coverage. GRAIL is one of the strongest plays on the booming early cancer detection market.
Guardant Health (GH) — Leader in Liquid Biopsy
Though Guardant IPO'd earlier, it remains one of the fastest-growing players in molecular diagnostics, focusing on non-invasive blood-based cancer tests.
Guardant’s revenue climbed 31% in 2024 to $739 million. The company has significantly reduced its losses and improved margins. Big events are ahead: the anticipated FDA approval for its Shield test (for colorectal cancer screening) and expansion into early-stage disease testing. Guardant continues to solidify its position as the tech leader in liquid biopsy.
Bottom Line
All 4 companies have proven their viability in a competitive market and are poised for large-scale growth. Their successes reflect a major trend: the fusion of molecular medicine, AI, and diagnostics is becoming the key driver of the next cycle in healthcare.