There are a lot of reasons why you should shy away from investing in any biopharmaceutical stocks. For one, it’s very complicated and only those who have in-depth knowledge of the industry are encouraged to do so. Another reason is the high regulation applied to biopharmaceutical companies resulting in slow growth changes. So why is it a good time to invest in biopharmaceutical?
All the above reasons are indeed true but recent statistics, analyses, and findings also show that the biopharmaceutical industry is also very profitable. More so, it is growing and those that are part of it are constantly innovating.
Here are some of the innovations in biopharma that can transform how medical experts will diagnose and treat diseases:
These are low-cost imitations of biologics, drugs that are made from natural sources and used to treat a wide range of diseases. To date, four biosimilars had already been approved for use. Big pharma companies see the potential in these types of drugs so they are now investing heavily in research and development of new biosimilars.
Since the sequencing of the first human genome 15 years ago, sequencing has already grown by leaps and bounds. The vast of data that have been gathered over the years resulted in much lower costs for DNA sequencing. What costs thousands of dollars once became just around $200 now.
Biosensors and trackers:
Wearable biosensors and trackers are getting smaller and more advanced. The main goal of these wearables is to gather patient information that will lead to cheaper and less intrusive interventions.
Checkpoint inhibitors and adoptive t-cell are two new therapies that show great promise in fighting life-threatening diseases and critical illnesses. They also have the potential in increasing the survival rate of cancer patients as well as reducing the effects of chemotherapy.
The Japanese biopharma, Otsuka, is the first company to have a chip in a pill approved. This technology allows doctors to track if patients take their medicines on time, how the medicine is spread in the body, and where the medicine is.
New therapeutic entities:
Also called NTEs, these new drugs contain reformulated, re-engineered, and repurposed molecules to target an unmet or specific need of a patient. Aside from this, NTEs are also more effective and have fewer side effects.
In terms of profitability, half of the companies that belong to the Top 10 most profitable biotech companies belong to the biopharmaceutical sector. In fact, the #1 spot belongs to a biopharma company which boasts of a 65.9% profit margin. Furthermore, statistics reveal that the biopharma industry has annual global sales of $200 billion which grows steadily at ≤15% annually.
The biopharma industry is growing at a steady phase with no significant threats seen in the future. This growth is not just happening locally but on a global basis. This means new opportunities also arise despite the slow nature of the industry.
Is it then a good time to invest in biopharma? The innovations and the figures say it all.