Biotechnology fundamentally uses livings systems and organisms to develop useful products. The sector has been faced with challenges in the past with the most recent being the 2009 recession. Nonetheless, technological advancements have revolutionized the ways through which the products are made simultaneously increasing efficiency of the experimental and manufacturing processes. Many applications integrate technology with biological living organisms and derivatives creating products and processes for specific uses.
The technological and biological integration has reduced the time required for drugs to complete the concept to the shelf process. Biotechnology comprises of four major industrial application areas. These applications include agriculture and crop production, environmental, healthcare (medical), and non-food industries like biodegradable plastics and biofuels.
Reasons for Growth in the Sector
Over the past five years, the biotech sector, especially the healthcare institutions and companies have been red hot. After the recession, investors were reluctant to invest in the sector since it was the only one that kept performing dismally. In 2010, President Obama had just signed the Affordable Care Act into law, and it was uncertain about how it would affect the market. As time went by, it was evident that the Obamacare law was beneficial thus the sector begun to rise steadily.
Currently, the markets show tepid growth prospects. If you wish to become a successful investor, you should bid up and invest in the steadily growing enterprises. The biotech sector basing on the past few years shows a consistent growth pattern and is set to deliver steady profits. Basing on statistics from the past three years, an 8% growth was recorded, and this is expected to increase to double digits in the coming years.
Ways to Join the Hot Sector Successfully
To stay afloat in the biotech sector, you need to develop ways to create and administer new and existing drugs in more beneficial and effective forms. When you are designing any drug, you should research on a way to provide the benefits of a three or four drug a day regiment in a single pill a day. This will make your drugs more effective than the existing competitors in the market.
The existing drugs have been proven to effective and are approved by the FDA. To gain quick approval, you can create improved versions of these existing drugs hence penetrating the markets faster. The penetration will be enhanced by the existing definite market and the healthcare experts and professionals who are familiar and comfortable using the existing compounds.
If you have a small company, you can become part of the next hot thing in the biotech sector by forming a partnership with a larger company. You can provide unique technology or a specific targeting platform while the larger partner will cater for all the costs to make the development effort possible. Given that many investors did not exploit the post-recession gains, the biotech sector still provides an excellent opportunity for growth making it an ideal investment prospect for you.
The Real Boom
You can create a specific drug for a particular disease rather than producing drugs for the masses. The focusing on a particular drug enables you to master their manufacture concept quickly hence making your brand formidable in the market. You can create advanced and effective drugs enabling you to make sales at higher prices. The disease-focused drugs present for you a massive sales potential as an investor. With 10 to 12 drugs in the pipeline projected to have a potential earning of at least $1 billion in revenue, the biotech sector is undoubtedly the next hot sector.