The unfortunate advent of the COVID-19 pandemic has disrupted the operation of the stock market, giving rise to a lot of failures. However, it has also molded several winners, most of them being affiliated to the biotech industry. Though investments in this industry are usually considered quite unstable, today they are amongst the safest choices in the market.
Since financial stability is what every investor desires in these unpredictable times, the biotech space has become a haven for investors around the globe. If you are intrigued by the biotech industry, here are its top five trends that you must follow in 2020:
#1. Strong Sellers & Stable Products
Be it the 2008 economic meltdown or the tragedy of 2020, trends have always shown that enterprises that have a portfolio of strong sellers and stable products are likely to be immune against economic emergencies. Let us take an example of Jubilant Life Sciences, that has walked through the disastrous years of 2008 and 2020 without a scratch.
According to experts, it performed 76% better than its competition simply because it has an array of products under its purview, including a few revolutionizing products and a stable balance sheet.
Hence, financial history and stability are the new trends to look into in 2020. It is absolutely crucial that you invest in an experienced clinical data collecting team or a Contract Research Organization (CRO) that has a record growth rate and offer fully integrated discovery services.
#2. The Innovation of Revolutionary Products
In the biotech industry, only those players can succeed who can innovate new and better solutions to age-old medical problems. In today’s modern-day world, depression and anxiety are amongst the most persisting problems. Several biotech firms are developing medicines to combat such mental ailments, but most of them have ended up giving substandard results.
However, several enterprises are developing revolutionary products that can treat mental illnesses from the roots. Plus, out of these firms, a few also have natural-based products in their pipelines that can effectively treat anxiety and depression. Thus, investors must take note of such companies.
#3. Development of COVID-19 Vaccines
Most of the biotech firms around the world are working day-in and day-out to develop an effective and reliable COVID-19 vaccine. Those enterprises that have made strides in this sphere have stock prices shooting through the roof.
Be it the Remdesivir medicine of the Gilead Sciences or another COVID-19 med getting developed by Novartis, both the meds, while being in the development stages, showed promising results, and it indirectly led to the enhancement of their stock prices. As an investor, it becomes your responsibility to stay up-to-date on the firms that are developing meds and vaccines for the COVID-19 virus.
#4. Roots Across Multiple Industries
Those firms that have their roots spread across multiple hot industries are likely to yield better returns. Retail pharmaceutical firms have surely suffered at the hands of this global pandemic, with lockdowns being imposed now and then.
However, those enterprises that are also involved in other industries, such as health and insurance, would indefinitely cover their losses from the counterpart. CVS Health is the best example of how a firm can give profitable returns when they have access to multiple industries.
#5. Cutting Edge Technology
Apart from launching revolutionary medicines, a key factor for biotech firms is how they would deliver the medication to the patients. Those firms that fuse state-of-the-art technology along with game-changing medications are the ones that gain the spotlight on a global platform.
You could look into the case study of Becton, Dickinson, and Company and their launch of the medication that deals with diabetes. The use of cutting edge technology is amongst the key indications of a growth stock in the biotech industry.
The entire economy has slowed down to prevent the spread of the outbreak, but biotech firms have been investing heavily in research and development. They have given a proof of concept that they are resistant to the 2020 financial tumble and can recuperate faster and better than other industries.