Skip to content

How to invest in biotech and in companies in the industry

On June 16 last International Biotechnology Daya collection of technical applications aimed at creating or modifying products or processes from living organisms (cells, genes or enzymes) to produce new products or services.

This date was created to make the public aware of the importance of this science, very important for the sustainable development of the earth. Not surprisingly, biotechnology is even related 14 of the 17 Sustainable Development Goals (SDGs).

From an investment perspective, Biotechnology can be considered a megatrend for him the economic impact of the application of technology on industrial production and markets.

The best example of how biotechnology advances is creativity Covid-19 vaccine in record timeas explained by Spanish Institute of Medicine.

Today we will see what is importance of biotechnologyits main use, why it is a investment opportunities and the best ways to invest in biotech.

what is biotechnology

biotechnology

Biotechnology has recently come to the fore progress in the fight against COVID-19thanks to the fact that it allowed the genome of the SARS-CoV-2 virus to be deciphered.

But it has also allowed advances in gene therapy, growth hormone, insulin or other vaccinessuch as hepatitis A.

However, biotechnology is much more than innovation applied to pharmaceuticals. It is also present in agriculture, with the development of the use of non-food crops, by improving agricultural production, food, with genetically modified foodindustry, with smart materials or environmental protection with waste treatment or bioremediation.

Actually, last June 16 discovery in 1980 of oil-degrading bacteria and it has been used ever since in a leak, by genetic engineer Ananda Mohan.

Uses and applications

chemistry

loose use and application of biotechnology son many and varied. To understand them, we can refer to the colors into which this science is divided.

  • Azul: utilization of marine resources to obtain health products, aquaculture and cosmetics.
  • Yellow: nutrition and food production.
  • Blanca: biofuels and other industrial processes.
  • Gold: bioinformatics or the acquisition, storage and analysis of the sequence of DNA and other amino acids.
  • Pig: environmental use and restoration of ecosystems by removing pollutants and heavy metals.
  • Roja: use in medical processes such as the production of antibiotics, vaccines, new drugs, genetic engineering, molecular diagnostics or regenerative therapies.
  • Greens or vegetables: agricultural applications to obtain more sustainable crops that are resistant to pests and droughts or floods.

Relevant data on biotechnology

biotech investment

When we talk about biotechnology companies in the pharmaceutical sector, we mean those who biopharmaceuticals and their products such as biotechnological drugs. These biotechnological compounds are more difficult and expensive to produce because they have more complex molecular structures than normal drugs.

A third of drugs

These are important numbers because generic drugs make up close to 90% of the drugs out there, but Biologics already account for nearly a third of global drug sales.

Read Biologics reached $284 billion worldwide in 2020 but it is estimated that they will become 505,000 million in 2026, according to the study Rate Pharma World Preview 2020, Outlook to 2026.

Cancer treatments

Another important piece of information noted from the same source is that Oncology will be the main area of ​​investment in research and development in the coming years, with an estimate of 82 billion, more than triple any other region. This spending is expected to lead to 152 new drugs approved by FDA (Food and Drug Administration, EU) and 311,000 million sales in 2026.

Where are the biotech companies?

the biotechnology sector is highly concentrated between Europe and the US, and between the two regions they generate most of the $350,000 million sold worldwide, according to Statista.

  • American biotech AbbVie to sell Humirathe best-selling drug of biotechnology origin in the world today, which works against rheumatoid arthritis and psoriasis.
  • Merck has rights to Keytrudacancer drug, which could be the best-selling product in 2026.

How to invest in biotech

microscope

Many of the companies in the industry are technology startups which often end up in the hands of big pharmaceuticals when successful. For this reason they are a growth industry and an investment opportunitybut high risk.

Amgen

Focusing now on the top biopharmaceutical companies in the world, they are the largest by revenue in the United States Amgen ($26 billion in 2021)

Roche

but it is switzerland Rocheafter the acquisition of Genentechthe one that makes the most money in biopharmaceuticals in the world.

S&P Biotechnology Select Industry

At this time you can invest in the companies that form The S&P Biotechnology Select Industry index or in all exchange-traded funds (ETFs) that replicate it, including: Ark Genomics Revolution, Direxion Daily S&P Biotech, iShares Biotech, SPDR S&P Biotech, VanEck BioTech or Invesco Dynamic Biotechnology & Genome.

Intercept Pharmaceuticals

Among all kinds of biotech companies in the world, a recent report from Investopedia notes that Intercept Pharmaceuticalsdedicated to chronic kidney disease, is the one with better price/sale ratio and the higher investor valuation.

Beam Therapeutics

However, he points out that Beam Therapeutics is the company with the best sales growth according to quarterly results (first quarter 2022). Beam is dedicated to DNA editing technology to treat human disease.

Aadi Life Sciences

Finally, they believe that the biotech company that has provided the best performer in the last twelve months is Aadi Bioscience. It focuses on developing genetically defined cancer treatments in the US, but it is still a clinical-stage startup (it has no drugs on the market).

Be sure to read our article: Funds to invest in health, a megatrend with present and future to know the best specialized investment funds.

So long summary on what is biotechnologyits main uses, why it is an investment opportunity and the best ways to invest in biotechnology.

Activities with listed products are aimed at investors who need to have enough experience and financial knowledge to invest in them. Investing in these products requires constant monitoring of the situation, as they involve high risks and 100% of the invested funds can be lost.

Before entering into a contract, it is advisable to obtain legal, regulatory and financial information about the consequences of an investment.

The decisions that each investor makes, both regarding investment and the extent of allocation and advice, are their responsibility.

Past performance does not guarantee future performance.

No part of this document may be copied or reproduced in any form or by any means or redistributed without the prior written consent of Singular Bank.

Start investing your money in cryptocurrencies and get Free Bitcoin when you buy or sell 100$ or more if you register in Coinbase