For investors looking to expand their stock portfolio, investing in bio-pharma might just be the “it” thing for you. And before you start doubting if or if not, listen; the global biopharma industry is set to go up 727 billion dollars by 2025 from a mere 369 billion dollars in 2016. That is definitely a big jump and very juicy investment opportunity for smart investors looking not only make money but make a significant impact in the drug industry.
What is Bio-Pharma?
Any drug produced using biotech is bio-pharma; this includes all drugs that use a living organism, system, or capsule acting as the carrier for the drug to remain active. This can be known as a living drug, hence the prefix bio.
5 Reasons to invest in Bio-pharma
Price stability and growth even in the face of regulatory price pressures
The ability of the stock to maintain steady growth despite insistent changes in price is enough to lure any investor looking for a durable and long intellectual property cycle.
Bio-pharma provides this guarantee for smart investors as the market has remained strong despite global talks on drug pricing with big drug facilities still making huge profits regardless of all the pressures from external forces.
Bio-pharma is growing innovation even in a slow economy
While many investors still look at technology, social networks as the main hub for making great ROI, they forget the exponential growth occurring in the bio-pharma sphere. As more investments are made in the field of medicine, producing drugs for the many ailments in the world, the huge benefits are the profit after the drugs get into the market. Furthermore, you can be sure you will not make a loss as people will always need drugs and seek cure and restitution from their problems.
Bio-pharma is safe from new computer technology on the market
As Artificial Intelligence and Machine Learning disrupt the market, many people fear for their investment in other sectors of the economy. However, this is not the case, as the technology has made it simpler for old folks to understand the market better and made drug production simpler, which equals to profit.
Bio-pharma industry is faced with less competition than regular pharmaceutical companies; this is because people are quick to come up with generic look-alike drugs that infiltrate the market causing the price to fall in the worst scenario 100 percent crashing the market with pharmaceutical drugs.
With bio-pharma, such cannot happen because of the way the drugs are made with a live component that is not easily accessible to people in the “black market” making the bio-pharma market a stable and secure one for all investors.
Investing in Trends
The world is in demand for something different from the drug industry, and biotech/bio-pharma is the way to go. The demand for prescription drugs is on the rise with the population consisting of seniors or more elder people in the next 20 to 25 years.
Investors can look into this trend and surf the wave of success with extra money under their mattress.
Although like any other industry, investing in bio-pharma has its risk, but you will be making a huge impact in the world of medicine while you make great returns on your investments. Furthermore, biopharma is a great investment with long term benefits.