The Future of Medicine is Biotechnology: An Industry Rundown

Biotechnology is an extremely dynamic industry, spanning across multiple sectors and touching the lives of millions of people every day.

Understanding the biotechnology industry is rather complicated because its scope extends to much more than what’s obvious. From medical device manufacturing to biofuels, from drugs and pharmaceuticals to agricultural chemicals and feedstock, and research and development activities in medical labs, a multitude of market segments constitute the biotechnology industry and make it a dynamic force for the present and future.

Detailed industry reports estimated the global biotechnology industry size at $270.5 billion, with an estimated growth rate of 12.3%. In the years that followed, demand for therapeutics and diagnostics, along with proliferation of technologies such as red biotech, recombinant technology, and DNA sequencing kept the numbers in the sunny range. When America goes from recessionary levels to around a 3 to 4% growth rate, which is doable in 2017, this sector could go ballistic.

The U.S. biotech industry accounted for $111.2 billion in annual revenue in 2015, fueled by advanced research and development investments, intra-industry consolidations, and investments in the healthcare landscape as a whole. 2015 was not a banner year for American businesses, and with a pro-growth and pro-business president in office, America is poised for a serious ascension.

America has been waiting to take off, but it has been shackled by irrational regulations, which helped no one except a few selfish and misguided bureaucratic egos.

Factors such as organized research and development impetus from government organizations, growing rates of consumption of biotechnology-based products across developing countries, and large-scale manufacturing of medicine and medical equipment all but guarantee that the industry will maintain its growth trajectory until 2020 and past it.

Also, particularly in the U.S.A., President Trump’s regime has marked another spurt in biotechnology company stocks, as it’s overcome the negative sentiment that surrounded Hilary Clinton’s election campaign, as somewhat already insinuated above. Most industries are going to be rewarded under Trump’s presidency.

The graph below captures the size of the U.S. biotechnology industry and estimated growth until 2020, with contributions of biopharma, bioservices, bioagriculture, and bioindustrial segments.

Biotechnology is the Present and Future of Advanced Medicine

Among the most sought-after and strategically important biotechnologies are tissue engineering, nanobiotechnology, fermentation, DNA sequencing, cell-based assay, and chromatography.

Numerous startups with a focus on one or more of these biotechnologies have staked their claims to the top spots of biotech stocks to look out for.

We are tracking the growth and market activity of these companies and will soon reveal the best bets for investors looking to add biotech stocks to their portfolios.

Whereas tissue regeneration and tissue engineering showed marked dominance in the 2011-2016 period, the future will see DNA sequencing and cell-based assay grow as the powerhouses for the biotech industry.

Unflinching demands for regulations, global standards, advanced processes, and R&D have kept the industrial focus riveted on biotechnology. As the world gallops towards the end of this decade, biotech stocks are the real superstars in the making.

We are excited about the progress that the industry has showcased, and we will keep you at the top of your game with value-added insights on which biotech stocks to pick at the right time.

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