Skip to content

Theme Investments – Genetics

The world of investing is quite wide as well as different ways of dealing with it.

This new opportunity will focus on thematic investments, an investment approach that seeks to find long-term development instead of focusing on specific companies or sectors. These megatrices often have different characteristics, such as innovative investments that tend to reshape the world. In addition, they could reflect great growth potential, but without forgetting that these are long-term investments.

Some examples are investments related to climate change, 5G technology, Fintech, demographic change or Genomics – also known as the human genome revolution – which is the concept that will be developed in the following lines.

To fully understand this megatrend, it is important to define two terms.
The first of these is DNA, which is the molecule that contains the genetic code of a living thing. And the other is the genes; which are a small part of DNA that has certain hereditary properties.

Humans have about 30,000 genes and all of the organism’s genetic material is called a genome. Genes are unstable and can be altered by hereditary mutations, with age or by altering or being damaged by chemicals or radiation.

The human genome revolution began in 1990 with an unprecedented $ 2.7 billion international project aimed at implementing the first complete sequence of an individual’s genome. It took 13 years and hundreds of scientists of different nationalities.

At the end of the project, the first draft of the human genome was reached and now the challenge for researchers and scientists is to decide how to read and interpret the content and then understand how they work together.

In this sense, genetic research will eventually enable medical science to develop highly effective diagnostic tools, to better understand people’s health needs based on their unique genetic makeup, and to design new, highly effective treatments for the diseases.

This has undoubtedly been the most ambitious project in the history of biology, even some scientists classify it as one of the great advances of mankind.

When we talk about genome medicine, this involves a series of therapies that try to cure diseases by altering a patient’s genome, altering the expression of genes within his body, even redesigning cells or sending instructions directly to them. Some of these therapies include gene therapy and cleavage, messenger RNA therapy – which was the basis of some covid-19 vaccines – cell therapy, epigenetics and molecular analysis.
Get the first line, it took more than 10 years and millions of dollars investment. However, less than two decades later, the cost of sequencing the genome has dropped to less than $ 600, and according to the research team of the CEO of ARK Investments, the cost could drop to less than $ 100 over the next five years. something important to increase its uptake as, despite its rapid decline, the high cost of sequencing has prevented the massive uptake of this technology in basic research in fields such as agriculture and life sciences.

When we analyze the growth prospects of the global genome market, according to research firm Fortune Business Insights, it is estimated that the size of the market will grow from $ 18.85 billion as it was estimated in 2019 to $ 82.6 billion in 2027. That would indicate 19.5 % compound annual growth.

In addition, there are other markets that are expected to benefit from this genetic revolution. According to Global Market Insights, the genetic testing market, valued at $ 14.8 billion by 2020, is expected to grow between 2021 and 2027 with a CAGR of 11.6%. Over 31.8 billion US dollars. This is mainly due to the growing use of genetic testing in areas such as oncology, genetic diseases and clinical care.

Some of the key factors driving the growth of these markets are the increase in government capital, the increasing incidence of cancer and rare diseases among the world’s population, and the scale of such technology, which is only beginning to be applied in fields such as medicine. ., agriculture, green energy with biofuels, in environmental protection and in food security.

There is no doubt that this sector is promising, but investing in it involves great risk. Historically, for every drug candidate marketed, 24 others have failed. In addition, the vast majority of biotechnology and genetics companies are small companies that focus on discovering and developing new drugs and treatments in the light of strict regulation, which increases the risk of drug instability.

In addition, these companies are growing and are largely unprofitable due to high development costs. Although effective drugs and treatment can generate billions in revenue, only 10% to 12% of the drugs that go into clinical trials reach the patient. Therefore, investing in this theme involves risk, something that reflects a large fluctuation where one would expect annual fluctuations – recommended standard deviation – between 30%, 40% or even 50%, so it is a long-term investment. does not fit all investment formats.

In collaboration with Eduardo González Ciccarelli

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