ARTICLE SUMMARY:
The diagnostic industry, a perpetual valuation laggard to higher-profile subsectors of the life sciences, with a short-lived exception during the height of COVID-19, may finally be having a moment. Reflecting this optimism, industry experts on a recent Arizona State University online seminar highlighted the success of rising young and increasingly profitable tech-enabled diagnostics companies, labeling them the “Terrific 10,” a moniker that references the tech industry’s “Magnificent 7.”
For most of the past 30 years, diagnostics has been the stepchild of the life sciences industry, in terms of investment, reimbursement, and valuation both in clinical care and on Wall Street. In 2021, during the height of COVID-19, capital suddenly flowed into the sector in record amounts, however, and broad public recognition of its importance surged.
But that was a moment. Then came the withdrawal. The years 2022 through 2024 were, to put it mildly, dark.
What a difference a year makes. At least that was the sentiment from a February 7 “Year in Review” online seminar summarizing the industry as of year-end 2025 and presented by the Biomedical Diagnostics Design program of Arizona State University (ASU). Three speakers from Illumina Ventures and the consulting firm Health Advances (HA) backed their enthusiasm for the future by pointing to leading companies’ increasing financial health and interest in building new kinds of business models based on emerging technologies and data.
