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Biotech Stocks Will Lead the Way in 2021

Biotech Stocks Will Lead the Way in 2021

Drug development has historically been an inefficient process.

Global research and development (R&D) spending increased fourfold between 2000 and 2020. But the number of new drugs approved each year has not increased proportionally.

In addition, after 10 to 15 years in development, only 2 of 10 marketed drugs return revenue that matches or exceeds their R&D costs.

Although there is a still a long way to go, advancement in computing and Big Data management will be the catalyst for biotech and life sciences innovation over the coming decades.

These Fields Are Defining Next-Gen Medicine

Technological advancement in drug development platforms has already contributed to huge reductions in cost.

According to BioSpace, recent studies suggest the average cost of bringing a new drug to market has been nearly cut in half, falling from $2.6 billion to $1.3 billion.

Supercomputer platforms will continue to enhance drug development, further reducing costs.

By utilizing machine learning and Big Data, these platforms can provide evidence early on as to whether specific molecules are worth targeting.

Improvements in technology have also led to the emergence of two fast-growing fields — genomics and proteomics.

Genomics is the study of genes, while proteomics is the study of proteins.

By combining the two, scientists can now determine potential for disease and understand how to treat diseases as they progress.

With demand increasing, the markets for genomics and proteomics are expected to increase by 331% and 338%, respectively, between 2020 and 2030.

genomics and proteomics markets chart

(Sources: Prescient & Strategic Intelligence and The Business Research Company.)

The market is realizing that these fields are defining next-gen medicine.

The Global X Genomics & Biotechnology ETF (Nasdaq: GNOM) has gained 56% over the past year, and the recent pullback presents a buying opportunity.

global x genomics biotech etf chart

(Source: Bloomberg.)

The Biotech Bull Run Is Just Getting Started

Investors who buy into genomics and proteomics have the potential to make huge gains over the coming years.

The GNOM exchange-traded fund (ETF) is a great way to get exposure. But if you’re looking to buy a particular biotech stock, you can check out Ian King’s new special report, The 20-Minute Retirement Solution: 5 Stocks for a Wealthy Retirement.

In the report, Ian provides details about a company that could become “the Amazon of the genetic testing space.”

You can learn more about Ian’s investing strategy by clicking here.

In any case, whether you buy GNOM or Ian’s special report stock, it’s time to invest in genetic testing before everyone else realizes this opportunity for incredible growth — and profits.

Regards,

Autonomous delivery will change the dynamic of the food industry, as well as boost U.S. productivity and quality of life over the coming decade.

Steve Fernandez

Analyst, Automatic Fortunes

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