The hardest part of investing is anticipating growth sectors, as buying an undervalued stock prior to its bump is how you make serious money. So the challenge for the investor is foreseeing trends in growth industries. One industry that is being seen as increasingly promising on the stock market is life sciences. Life sciences, which encompasses a wide array of scientific research as applicable to medicine, agriculture, biology and biotechnology, is viewed by many industry insiders and investors as the next big frontier on Wall Street. But why exactly is this such a good time to buy life science stocks. Here are three reasons:
The promise of biotechnology to create drugs. Investors can be reasonably certain that drug manufacturers will be using biotechnology more and more this decade in order to improve the efficacy of existing drugs as well as develop new drugs. This promises to be financially lucrative for research firms, diagnostic equipment manufacturers, pharmaceutical companies, life science investors, and even agricultural companies, who will be able to use the findings in order to improve crops.
Companies are beginning to invest heavily in pharmacovigilance. Buoyed by the research conducted by Huntingdon Life Sciences Inc., one the world’s premiere life sciences facilities, the field of pharmacovigiliance is expected to boom this decade. This field, which focuses on the assessment and oversight of pharmaceuticals, is being widely adopted by many life science companies. As drug manufacturers begin to release more biotech drugs it will be necessary to closely monitor their effects. Companies that specialize in this could receive a bounce on the stock market.
Genome sequencing is about to get huge. The promise of life sciences to affordably sequence the human genome and personalize medicine is expected to draw considerable investments for research funds in the coming years. Drug companies, which up until now, have been relatively hesitant to focus on personalized medicine, will now be doubling down on this technology in order to take advantage of the latest advances. Both as a diagnostic field that will eventually involve gene therapy and as a medicinal application, genome sequencing companies will soon flourish on the stock market.
These are three principal reasons why you can expect the stock market to soon embrace life sciences as a growth sector. The fields of biotechnology, pharmacovigilance and genome sequencing will all be a part of this revolution. Any undervalued companies that are poised to run with these should be carefully considered by investors.