Why invest in Biotech?

I know I can’t speak for everyone but in my opinion there has been a slight shift in global consciousness over the last few years. The worldview I have and surely many of my friends and colleagues have is vastly different from that of generations past. I also tend to look at investing and investment strategy a little bit differently. When I consider what looks viable for future growth, I take a minute to think about the world and where we as a society are steering it.

One particular sector, which I believe has the potential for exponential growth over the medium to long term is Biotechnology. Now obviously everyone reading this not a Doctor, Scientist, Biologist, Researcher or Pharmacologist, so to elaborate properly on my position I want to break it down in layman’s terms.

Let’s firstly look at describing Biotechnology - in it’s simplest form, it literally is technology that is based on biology. Biotechnology harnesses cellular and bio-molecular processes to create and further develop existing treatments, procedures and products that not only help to improve our lives and longevity, but in recent years also the health of our planet.

As published in a recent article by Deloitte, out of the top 10 Pharma products by sales in 2014, the majority of them were biotech drugs. These included monoclonal antibodies and recombinant products. Now you’re thinking, what the hell does that mean, monoclonal antibodies are developed by cloning of cells. Recombiant products are also derived from DNA technology these are then used in the treatments for degenerative diseases, we have come a very long way from when we originally started with stem cell research.

Cancer, Rheumatoid Arthritis and Hepatitis C figured most prominently in the list of the most sales-generating drugs. Sadly I am sure this comes as no surprise, as most of us have been affected by Cancer maybe not directly but we all know someone who has Cancer, had Cancer or has it in their family. The most well-known degenerative diseases include: Alzheimer’s Disease, Cancer, Diabetes (Type II) ALS(Lou Gehrig’s Disease), Heart Disease, Huntington’s disease, MS, Parkinson’s, Osteoporosis, Osteoarthritis and Rheumatoid arthritis, but these are only the most commonly known and by no means the only one’s society has to worry about, the list of degenerative diseases has been on the increase over the last to decades, medical sciences need to advance at astronomical rates just to keep up with the needs of an ever growing population.

To give you an idea of where Biotech is in monetary terms, Biotech drug sales were an estimated $289 billion in 2014 and are projected to grow to at least $445 billion by 2019.That’s an increase of 53% in revenue over 5 years. In addition, biotech’s share of worldwide prescription drug and over-the-counter pharma sales is projected to increase from 23 percent in 2014 to 26-30% in 2019.

If the fundamental impact that Biotechnology has had on medicine is not enough to warrant your consideration, perhaps you are more of an environmentalist and would appreciate what this sector can and does for our planet.

Biotech crops contribute to reducing the environmental impact of productive agriculture, and as a result it increases global food security without the need for increased land clearance. Insect resistant crops offer an alternative to chemical inputs on some crops and have allowed development of more targeted, flexible, effective and sustainable integrated pest management programs.

Biotech applications in the R&D pipeline : disease resistant, drought and stress tolerant crops, offer additional opportunities to increase global food security while further reducing the environmental footprint of agriculture.

It has also made significant strides in helping to sustain and protect our marine life, over the last 5 decades most of the worlds coral reefs have died and continue to die at an incredible rate, Biotech has made it possible for our future generations to yet again be able to enjoy some of natures most beautiful organisms, not only are we currently replanting coral that has been grown using biotechnology, marine biologists have also been able to simulate what they call “Ocean simulator tanks” that mimic what ocean water conditions will be like in the years to come, this helps them to manipulate the newly developed coral genetics to prepare them to adequately survive these environmental changes.

Yes, our species have ruined this planet and ourselves through technology, but it is this same technology that will help us repair, restore and rejuvenate this planet and ensure the survival of the human race.