Biotechnology growth

August 29, 2019 - 3 min read 🍵🍵

Tags: technology

With all the hype around the Beyond Meat Burger, it makes me wonder about what the future holds for us when it comes to saving the Earth from global warming. The next big thing is the exploding growth of biotechnology companies looking to disrupt the health industry, ranging from the products we consume to improving access to health care with a click of a button.

I recently stumbled upon an article online about how the biotech startups mirror a time where tech companies were fundraising 10 years ago[1]. Biotech companies are trying to solve Earth’s global warming crisis and that’s a business model that will definitely be making lots of money.

Perhaps it is time to start opening our eyes for the next equivalent APPL stock in biotech. The recent hype of Beyond Meat Burger reveals a huge interest in both investors and consumers.

The power of social media and healthy eating trends drive consumers to be more health-conscious and the market is trying to adapt. An example would be the sudden celery price increase. Canadians are consuming more celery than ever before due to social media touting its medical benefits. The sudden demand and low supply due to bad weather caused a price hike that made celery cost double than what it was years ago[2].

Biotech companies aim to solve many problems revolving around climate change and environmental concerns by reducing waste and finding new technologies to recycle. Take Aquaporin, for example, a company developing a special membrane protein in an industrial fermentation process that allows the creation of new generation water membranes. The system has the potential to recycle wastewater. This can allow farmers to reuse their water supply and reduce water consumption which diverts from our rivers, bays and estuaries[3].

Therapeutic companies in biotech are trying to disrupt the healthcare industry by levering the convenience that technology offers. A recent Toronto fertility startup, Lilia, attracted \$800,000 in only 5 weeks. A 29-year-old Alyssa Atkins wanted to create a company that aims to make navigating fertility issues easier and less overwhelming by providing at-home tests that measure hormone levels and predict the age of menopause[4].

Investments in software, diagnostics, products and services allow for faster and cheaper research for science companies. Developing technologies such as machine learning and artificial intelligence will produce the tools needed for biotech companies to pave the way into the future[5].

The rapid growth in biotech companies is overwhelming, like many technology companies, some will thrive and others will go bankrupt. A friend of mine linked me to an article that talks about an index fund Russell 2000 Growth Index (RUO) making a big bet on pharmaceuticals and biotech. It’ll be interesting to see what big biotech companies come out ahead in 10-20 years from now.

Whether you are thinking about investing in biotech companies to save the earth or switching out to meat alternatives to curb down meat consumption, you’ll be constantly hearing about environmental degradation from headlines, reminding us to be more green and eco-friendly. I believe it’s beneficial for us to be open-minded with the way science is approaching and embrace the world we live in.


A blog by Kien