John Kim is a graduate of UCLA Anderson School of Management and participated in research studies related to biotechnology and healthcare. In the following article, John Kim UCLA discusses how biotechnology has become one of the fastest growing sectors in the medical industry, and how this growth can be the most profitable for investors.
Biotechnology is the future of medical science, fusing the power of advanced biological processes with diagnostic and preventative techniques. Through the use of genetic and tissue engineering, gene and cell therapies, and immuno-supportive treatments, biotechnicians have the potential to provide treatments for diseases that have long been considered incurable.
Now, John Kim UCLA explains that with such incredible advances on the horizon, and thanks in part to recent notable victories, biotechnology has become the focus of investment fervor. For this reason, many investors are wondering how they can get involved.
John Kim UCLA on Understanding the Scope of Biotechnology
John Kim of UCLA reports that as the SARS-CoV-2 virus was spreading like wildfire across the world, biomedical researchers and biotechnicians knew that the only way to halt its advance without leaving a wake of death and economic destruction was to develop a vaccine as quickly as possible. Previously, vaccines had been made by modifying existing viruses, but such a process could take years.
However, John Kim UCLA reports that biotechnology offered a solution that could develop a vaccine in a fraction of the timemRNA. Researchers at Pfizer and Moderna quickly set out to put the latest medical technology into action and, within the space of a year, they had successfully developed a vaccine for the novel coronavirus. This success showcased to the world that biotechnology has the potential to transform lives.
Following this success, investors have turned their attention to the field, recognizing the scientific and financial opportunities of getting in while the industry is still young.
Biotechnology Extends Beyond the Medical Field
John Kim UCLA says that biotechnology offers more than just a solution to health crises, though. It's a diverse and expansive field that can contribute to agriculture, the energy sector, and even the environment. For example, biotechnicians have successfully engineered new strains of crops that are more resilient to both environmental changes and pests. This has the potential to increase crop yields and reduce food shortages around the world.
Furthermore, biotechnology has developed fascinating new ways to generate energy from microbial fuel cells. Not only could this ween the world off of carbon-rich fossil fuels, but it could also increase biodiversity while converting organic matter into electricity.
So, John Kim UCLA states that it's clear that the economic reach of biotechnology extends to almost every sector of manufacturing. The question isn't so much whether to invest, but where to get started and how far can the profits reach.
The Main Players in Biotechnology
In terms of medical biotech, John Kim UCLA explains that there are currently four top firms revolutionizing the future of medical researchAmgen, Biogen, Gilead Sciences, and Celgene. Amgen is currently dedicated to researching cardiovascular and inflammatory diseases, as well as oncology, whereas Gilead Sciences is hoping to develop cures for HIV, liver disease, and cancer, and Celgene specializes in blood cancers.
John Kim UCLA says that other top names are likely already familiar to the public, thanks in no small part to their contributions to COVID vaccine research. These include AstraZeneca, BioNTech, and Johnson & Johnson. Most other pharma firms have been either bought up by the larger companies or lack the production facilities to produce widely known treatments.
Where to Invest
John Kim UCLA reports that although the industry is already dominated by several key players, many backers are looking to take a picks and shovels approach to investment. Rather than investing directly in the main four or five companies, investors are instead turning their focus to the smaller supply-side companies that are fueling the larger companies.
This is exactly how firms made a profit during the gold rushby supplying the picks, shovels, and pans needed to mine, not through mining itself. In this context, investors know that the smaller players have more room to grow and, therefore, are a better investment for the long term. John Kim UCLA says that even if they're eventually bought out by the top five firms, those shares will be bought out at a fair price.
The Bottom Line
John Kim UCLA says that the limits of biotechnology remain to be seen but if the recent success in conquering the COVID-19 virus is anything to go off of, it's safe to say that investing in the industry is a good bet. To join the wave of investments, though, it's perhaps better to diversify across a field of smaller firms rather than putting all of your eggs into a single basketthe top four firms.
