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- Biotech, a business waiting to grow
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- Biotech, a business waiting to grow
ShareBiotech, a business waiting to grow
Biotechnology or biotech is the use of techniques or processes in bringing living things, parts of living things or products of living organisms to be applied to benefit humans in various fields such as medicine, food industry, agriculture or the environment.
After the outbreak of the COVID-19 virus, there is a lot of talk about modern biotechnology such as gene therapy. DNA fingerprinting, cloning, gene modification, etc. And the most talked about field of biotech is health biotech.
Technology will play a role in the natural sciences. which involves the mechanisms of living things or biology (Biology) to make people benefit and have more access to medicine Importantly, it can reduce side effects from using chemicals. instead of using cancer treatment with surgery or radiation for cancer treatment It produces innovative cancer drugs that can be treated at the cellular level. or preventing the COVID-19 virus, it is necessary to rely on new innovative treatments, including increasing the chances for humans to live longer. This makes biotech an important role in the aging society.
The innovation and drug production make sales of medicines produced from biotech innovations began to snatch more market share of the world drug. In 2022, innovative biotech drugs are expected to have a market share of 32%, an increase of 90% from 2012 with a market share of 20% (Source: Evaluate Pharma).
Likewise, biotech companies continue to grow. By the end of 2021, there were 6,728 Medical Technology companies worldwide. Innovations applied to business operations (Digital Health) around the world, totaling 3,265 places, and if including all branches of biotech companies around the world, there will be a total of 20,793 places. (Source: Biotechgate)
The factors that continue to grow the biotech business are the development of medical technology. which has new innovations from the rapid development of technology, thus helping to enhance the biotech business to develop faster as well, such as data storage and online diagnostics. Using robots to apply in treatment, etc.
By innovative treatments and new treatments and treatments that cannot be cured It will encourage the rate of new diseases to grow rapidly including an increase in the elderly population which is considered a group with high health spending. This allows biotech companies to benefit and grow accordingly.
World's largest 10 biotech companies market cap
Company |
Industry |
Market cap(Billion USD) |
Johnson & Johnson |
เmedical supplies consumer goods |
445.60 |
Roche |
pharmaceuticals and pharmaceutical products |
326.14 |
Pfizer |
manufacturing and distributing drugs |
273.57 |
AbbVie |
research and development of pharmaceutical products |
266.30 |
Eli Lilly |
diabetes drug manufacturers Cancer and nervous system treatment group |
250.34 |
Novo Nordisk |
pharmaceutical products and medical supplies |
238.61 |
Thermo Fisher Scientific |
research and manufacture of drugs |
214.94 |
Merck |
pharmaceutical production |
196.73 |
Novartis |
pharmaceutical production |
193.91 |
Astrazeneca |
research and manufacture of drugs |
184.17 |
Source: Companies market cap (4 March 2022)
The biotech business has a complexity and also often highly volatile. This is because there is a risky business model that the product or drug it produces has the potential to fail to cure the disease. This is a risk known as treatable or incurable (Binary Risk). Therefore, specialized knowledge in choosing a company to invest is very important. Therefore, it is advisable to seek advice from analysts with expertise in such business fields.
If you are interested in investing, you can invest in biotech stocks directly from brokers who open trading accounts or open an investment account through the application or invest through mutual funds that have a policy to invest in biotech businesses
