When Katherine Stueland was 11 years old, she went to a reunion for her mother’s branch of the family tree and learned that multiple cousins had cystic fibrosis.
Stueland didn’t know what it meant for her or her immediate family. So she hit the books.
“There was one written by sportswriter Frank DeFord”—Alex: The Life of a Child—”about his daughter having cystic fibrosis,” she tells Fortune. “I devoured it and decided I was going to change the world. I ended up raising $1,500 for the Cystic Fibrosis Foundation.”
That moment didn’t exactly set Stueland on a path to become a physician or a lab rat. She went on to earn a college degree in, yes, science, but also English literature, and build her professional career working in communications for health-adjacent companies.
But her career arc slowly bent back toward that childhood revelation. Today, Stueland is the CEO of GeneDx, a publicly traded genetic testing company with $302 million in 2024 revenue and a $2.6 billion market cap, headquartered in Stamford, Conn.
“Today I spend most of my time working with rare disease patient advocates,” she says. “It’s kind of full circle in a sense. I did not intend for it to be that way at all.”
From pharma to biotech
Stueland spent the first part of her career working on pharmaceutical concerns. She worked on the first protease inhibitor for HIV/AIDS and the first cancer immunotherapy approved by the Federal Drug Administration. She worked on Lexapro and the effort to destigmatize depression and anxiety. She worked on Namenda, used to treat the severe dementia that comes with Alzheimer’s disease.
But it took a 2013 divorce to disrupt her pattern, pull her out of the Midwestern corporate pharma world, and thrust her into a West Coast biotech scene that eschewed offices, emphasized teams, and encouraged taking big risks.
“The corporate environment gave me the stability to survive,” she says. “As I got my confidence up, and talking to these companies and seeing how scrappy they were, that felt very much like home to me. Migration was about taking a risk on myself and feeling comfortable taking risks on other people, too.”
It was also a landmark year for the business of genetics. In 2013, the U.S. Supreme Court ruled in Association for Molecular Pathology v. Myriad Genetics that isolated human genes couldn’t be patented.
Stueland began working for Invitae, now owned by Labcorp, which had spun out of Genomic Health in part with the hope that the courts would rule as they did.
“Another taking-a-big-risk moment,” she says. “The company placed a big bet on that.”
The impact of accessibility
The nascent genetic testing industry took off like a rocket. More and different kinds of people had testing done. Costs plummeted—what was once $3,500 to sequence a single gene became less than that to do a genome that contains 20,000 genes.
And with wider testing, more patterns about genetic conditions were observed. For breast cancer, for example, the same share of patients inside and outside recommended screening guidelines were found to be at risk, widening the necessary aperture.
“We’re diagnosing more women with breast cancer, earlier, because we’re screening more,” she says, “but the morbidity rate is going down because we’re finding them earlier and able to intervene.”
Stueland’s career was unquestionably soaring along with the genetic testing boom. But it wasn’t until 2021 that she entertained the idea of taking a company’s top job.
‘I was totally surprised’
“In the middle of the pandemic I got a call about my interest in taking a CEO job,” she recalls. “I felt like I had a lot of clarity before that moment that I had zero interest. I was a really good right-hand person. But ‘yes’ came out of my mouth. I was totally surprised.”
That call came from a rival genetic testing firm: GeneDx. She was familiar with the organization and its technology because she had competed against it for years. But Stueland was an unorthodox candidate—a veteran of the category, yes, but one without an MBA, MD, or PhD.
“I wanted to create a culture where people could take risks on themselves and create amazing career journeys—where people could take risks they couldn’t at other companies,” she says. “This team is scrappy with people with many different backgrounds coming together with a common purpose.”
She also wanted to give a “smart, cerebral, bespoke, academic” company burning tens of millions of dollars a quarter the commercial muscle it needed to function in the public markets.
“It was a huge transformation, and I underestimated that,” she says. “It took an immense amount of partnership across the company. I knew that culture was going to be a huge part of what made or broke us, without a doubt.”
Accomplishing that meant embracing the dynamism of an entrepreneurial approach—faster, decisive, more growth-oriented—that first attracted Stueland from more the conventional environments she occupied earlier in her career.
“You know what song you need to play, what musicians you need to bring, what notes you need to play [for a given audience],” she says. “I consider the meetings in which I don’t speak as much as they do to be the best meetings I’m in.”
After years of recalibration—and a hard slide from its frothy 2021 market peak—GeneDx is once again on the upswing. The company’s shares are selling at 10X what they were a year ago. It’s on track to profitability this year. It stands to benefit from recent FDA guidance on the use of AI in medical devices. And it’s chipping away at a rare disease economic burden that its CEO estimates to be $1 trillion.
That’s all good news for GeneDx’s top executive. But on a personal level, Stueland is grateful that her career has come back to that family reunion all those years ago.
“There’s been this wonderful consistent thread of working with people who want to improve people’s lives, as pithy as that sounds,” she says. “A lot of people come to this industry from personal experience or the experience of a loved one.”
Germany group Siemens said on Wednesday it is buying Dotmatics, a US software company, for $5.1 billion to leverage its use of artificial intelligence to make drug discoveries.
Siemens said the acquisition was “complementary” to its expansion into Life Sciences and would lift its game in a market needing more medication innovation as populations age.
“These trends underscore the need for digital transformation, with software spending expected to double over the next five years,” Siemens said in a statement.
The German group said that it expected Docmatics to be immediately profitable, and to bring in $100 million a year in revenue over the mid-term, rising to $500 million in the long-term.
It said the transaction would be completed in the first half of next year.
Siemens recently bought another US software firm also using AI, Altair Engineering, for $10 billion.
Docmatics, founded in 2005 and with a workforce of 800 people, presents itself as a leader in R&D software, and has a platform using AI to accelerate drug research.
Siemens, Germany’s second-biggest company by market capitalisation, has been seeing increased revenues from its software division as its digital products for factories face a slump.
In today’s CEO Daily: Diane Brady on Trump’s new taxes for international trade.
The big story: Tariffs were worse than expected.
The markets: Global selloff under way.
Analyst notes from Wedbush, EY, and Swoop Funding on—you guessed it—the tariffs, jobs, and Tesla.
Plus: All the news and watercooler chat from Fortune.
Good morning. Friend or foe? It hardly mattered yesterday as Donald Trump unveiled sweeping targets against all the trading partners of the United States. The headline numbers to know: A 10% baseline tariff on all imports, with specific and higher tariffs on some countries, including 34% on China (on top of the existing 20% tariffs), 20% on the EU and as high as 46% and 49% on Vietnam and Cambodia respectively. “They do it to us, we do it to them,” the President said during the Rose Garden tariff unveiling. Some food for thought as the fallout begins:
It’s worse than expected. As the White House was ironing out details of the plan deep into Tuesday, markets were showing some signs of life as investors hoped for last-minute leniency. But stock futures took a dive following Wednesday’s announcement. Only about half of what Americans buy is made in America, according to Commerce Department data, and industries like the auto sector that have complex global supply chains.
This undermines manufacturers’ China+1 strategy. Some Asian countries are especially hard hit with tariffs of 40% or more, dealing a blow to U.S. manufacturers’ push to diversify production beyond China to low-cost neighbors like Vietnam, Bangladesh and Cambodia, especially in areas like textiles and electronics. Gap Inc.—home to Gap, Athleta, Banana Republic and Old Navy—has reduced its exposure to China in recent years but still sources the vast majority of its apparel from Asian countries hit hard by the new tariffs. Change takes time.
A global backlash could hurt all companies. Trump described yesterday’s tariffs as “kind” to America’s trading partners. From the anger of foreign leaders to the foreign consumers boycotting U.S. products and travel, it’s clear that our partners disagree. Hostility is bad for business, with economists from EY, Goldman Sachs, and Moodys predicting lower growth from self-inflicted tariff wounds. I spoke this week with Niccolo De Masi, CEO of quantum computing company IonQ. “We’re building all of our stuff in America,” he said. “We’re not impacted negatively by tariffs but we are realistic that our ability to succeed in Asia and Europe comes with having more of a presence there.” That’s harder to do if a trade war whips up nationalist instincts.
This could devastate hard-hit economies and industries. Jacques Vandermeiren, the CEO of the Port of Antwerp-Bruges, Europe’s second largest port, told my colleague Peter Vanham earlier this fall, “If Trump puts in place tariffs of up to 10 percent, we’ll deal.” Substantially higher than that, Vandermeiren warned, could spell disaster for Europe’s steel, aluminum, auto, and other export-oriented industries. Switzerland’s struggling watch industry, which exports more of its products to the U.S. than any other country, will now face a hefty 31% tariff. Will those who crave a Rolex or Patek Philippe settle for a substitute? I doubt it.
There will be much negotiating in the coming days and business leaders know from experience that what appears on paper at a press conference may not translate to action at the border–or can be swiftly reversed. And U.S. consumers, whose spending accounts for more than two-thirds of GDP, aren’t looking that excited by all these tariffs that they’re told will help them in the end. Consumer sentiment tracked by the University of Michigan has been trending down this year to the lowest level since 2022.
Adam Smith once wrote that nations rarely thrive by beggaring their neighbors. That was in 1776, when mercantilism was dying and the U.S. was being born. Freed from British rule, the young nation used tariffs to develop homegrown industries that later competed on the world stage. With a globally connected U.S now returning to tariff levels last seen in the early 1900s, as cars were just coming on the scene, the impact could be very different.
More news below.
Contact CEO Daily via Diane Brady at diane.brady@fortune.com