Invest in Biotechnology

Invest in Biotechnology

Since the beginning of the new millennium with the completion of the mapping of the human genome, the biotechnology sector has undergone a phase of uninterrupted development. Just think of the fact that in 2005, in the top 10 of the world's best-selling drugs, eight were of chemical derivation and only two of biological origin. A decade later the proportion has been completely overturned and eight biotech products are on the list, against only two traditional ones. Turnover within the sector has increased handsomely over the same period and many biotech stocks have seen their value increase at an incredible pace, but the best is yet to come!


This exponential growth is intertwined with the demographic evolution, which offers one of the most interesting investment themes in the biotechnology and health sectors, given that the increase in life expectancy normally leads to an increase in per capita health costs. This also applies to drugs: the elderly often take twice as many medicines as those in their twenties or thirties. Many drugs are used to treat chronic conditions that usually occur in old age, such as diabetes, high blood pressure or high cholesterol.

The number of people over 65 is now 695 million, 9% of the world's population and will increase by 50% over the next thirty years. Therefore, in the face of these demographic trends and new biotech products, which are more effective and improve the quality of life of patients, the growth in profits of numerous listed companies has undergone a strong acceleration. In addition to the demographic aspect, the biotechnology market has success for a number of reasons: the abundance of biotech companies' pipelines, the quality of new drugs and the growing number of new product approvals by the FDA and the EMA.

The abundance of biotech companies' pipelines is increasingly attracting the attention of large pharmaceutical companies, to the spasmodic search for new molecules that can guarantee their future survival, triggering an intense M&A activity towards these more innovative companies.

 

 

 

 

The recent discoveries in the field of gene therapy and treatment of cancer represent an exponential leap in basic research and the success of biotech companies and their ability to give concrete answers to increasingly widespread and often unmet medical needs make the investment in biotechnology extremely attractive for investors.

To invest in biotechnology it is important to pursue a concrete investment strategy, preferring a portfolio approach that involves investing in a basket of promising companies, mitigating risk while providing excellent opportunities in one of the most promising investment sectors.


Far from the logic of venture capital, J. Lamarck considers only medium and large cap listed companies and creates specific investment portfolios for customers to ensure the diversification of assets, seizing the best opportunities on the markets. We dialogue with market players on a purely indicative basis, learning about market trends. We are extremely interested in all the details such as existing partnerships, future product pipelines and the results of clinical trials in order to understand the possible impact of these details on the market.