Shares of the IBD 50's GeneDx — which skyrocketed almost 2,700% last year — surged again on Monday after the Food and Drug Administration issued guidance about using AI to develop medical devices.
The guidance pertains to the use of artificial intelligence across a device's total product life cycle. If finalized, the draft would be the first to provide recommendations for AI-enabled devices across design, development, maintenance and documentation.
The news is promising for GeneDx, which uses AI to provide genomics-related diagnostic testing.
GeneDx stock has been on a tear recently. Shares increased almost 30-fold in 2024 as the company turned around its financial fortunes. On today's stock market, GeneDx shares ramped up 13.2% to close at 89.61.
Shares broke out of a consolidation with buy point at 89.11 on Monday, according to MarketSurge.
GeneDx Provides DNA Sequencing
GeneDx provides whole genome and exome sequencing to help identify rare diseases, primarily in children. The genome includes all the DNA in the body, while reading the exome involves looking at only the protein-coding genes.
When performed early, genetic testing can lead to answers that help avoid what Chief Executive Katherine Stueland calls a "diagnostic odyssey." The company only tests for diseases where there is a solution — a clinical study, a dietary change or a treatment.
GeneDx stock ranks No. 40 on the IBD 50 list of elite growth stocks.
Follow Allison Gatlin on X/Twitter at @IBD_AGatlin.
