Biotechnology is the application of technology and science to address social problems such as climate change mitigation and access to natural resources. Biotechnology companies are classified into various categories depending on the solutions that they provide.
Most biotech companies are pharmaceutical companies that make medicines for humans and animals. Drug development is a lengthy and risky process that can take years. 90% of the potential drugs never make it to the pharmacy shelves.
Biotech isn’t just limited to pharmaceuticals. It is used in a variety of industries. These include cosmetics, agriculture and food technology. Industrial biotechnology, nutraceuticals and veterinary products are her comment is here also included.
Other areas of research include mRNA vaccines which were utilized in the COVID-19 Pandemic, and monoclonal antibodies, which are currently being tested for HIV treatment. The industry is characterized as having high operating costs, and requires substantial funding to fund R&D.
Most biotech companies don’t make money in the initial stages. The ones that are profitable have pipelines that are strong, and they can generate non-organic revenues. Biotech investments can be rewarding however, you must consider the risks. It is not uncommon that biotech stocks will rise when there is news of a promising new therapy’s results. These fluctuations can be challenging for small investors.
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