Biotech, short for biotechnology, is an industry responsible for making life-saving and life-changing drugs. The industry, having made a name for itself with the discovery of insulin, has helped the global population to live longer and healthier lives.
The sector is a major player in combating epidemics and pandemics – which, because of Covid-19, has made biotech more visible and able to grow through extensive investment.
Through research, clinical trials and manufacturing, companies like Vernal Biosciences are stocking pharmacy shelves with important vaccines and medicines.
It’s possible you’ve never heard of the biotech industry before now and so you may be surprised by how much money it generates. The biotechnology sector is worth hundreds of billions of dollars and is one of the largest industries in the world.
If you’re interested in exploring whether investment in this industry is wise, you’ve come to the right article. Read on to discover more about the industry and find out whether buying stocks is an economically-sound choice.
What Is Biotech?
Biotech is the process of using biological practices to solve health problems. It is a vital industry. The end-goal of the sector is the creation of safe and effective products which can be mass produced, including vaccines, drugs and medicines.
Biopharmaceutical processes are driven by technology, which is used to capture data, conduct research and create products for market.
The biotech industry is one of the largest industries in the world, worth over $1,023.92 billion. In the UK alone, the industry employs 268,000 people across 6,330 businesses – with a turnover of £88.9 billion. Evidence demonstrates that the industry continues to grow each year at speed, making it a viable consideration for personal investment.
Investing In Stocks
Investing in stocks can be a challenging game of luck, with many examples of misfortune and losses. Investing too much of your money in the wrong industry or product can have devastating results, including bankruptcy.
Fortunately, evidence points to the biotech space being a fruitful environment with gains to be made.
Investing In Biotech Stocks
The biotech industry is enjoying huge growth every year. This is largely a result of large investments, including the £2.8 billion injected in 2020 – a time when other industries were suffering as a result of the Covid-19 pandemic.
On the topic of Covid-19, this major global event has drawn more attention to the biotech industry than any event previously. This extra visibility has generated large investments, while high salaries in the sector are attracting more candidates to roles.
The immense growth of the industry makes investing in biotech stocks a largely economically-sensible decision. There are, of course, risks with all investing – but with the market expected to have a compound annual growth rate of 13.8% from 2022 to 2030, the evidence points to huge rewards for those who invest in biotech.
When To Invest In Biotech Stocks
There’s no better time than now to invest in the biotechnology industry. If growth in the sector happens as predicted, it’s best to get ahead of the curve and invest today. Leaving the decision to invest, while you wait to see how the sector performs, may leave you in a less financially-positive situation – able to generate less income.
The Bottom Line
The biotechnology industry is one of the largest sectors and Covid-19 has created major growth. While it’s always important to consider your financial position before investing, and understand the risks associated with doing so, buying stocks in biotech is one of the safest investment decisions you could make – based on growth predictions and market value.