Where to Invest? Biotechnology — The Science Changing the World

Biotechnology is a field at the intersection of biology and technology. It studies how living organisms can be used to solve practical problems: from creating new drugs to improving agriculture and the food industry.

Today, biotechnologies allow editing genes, treating previously incurable diseases, and even extending life. For example, using genetic technologies, scientists have already managed to make a human resistant to HIV — and this is not fantasy, but a real scientific case.

🚀 Why Is Biotechnology One of the Most Promising Sectors?

In the early stages of development, biotechnologies were mainly used in the agricultural sector and food industry. Now the focus has shifted to medicine: fighting cancer, Alzheimer’s disease, autoimmune disorders, and other serious diseases.

Scientists are also actively looking for solutions to global problems — for example, population aging. According to UN reports, the pace of human aging is causing increasing concern, and it is biotechnologies that can help slow down this process.

For me, this is an opportunity to invest in technologies that can change the very nature of human existence.

Market Size and Investor Interest

The global biotechnology market was valued at approximately $497 billion in 2020. According to Global Market Insights forecasts, it will grow by an average of 9.4% per year until 2027.

The industry is also actively supported by major investors. For example, one of the PayPal founders invested $17 million in a biotechnology company.

🧬 Popular Companies in Biotechnology

Hundreds of biotechnology companies are traded on stock markets. Here are some of the largest players available for investment through platforms like Lightyear, Revolut, or Interactive Brokers:

Ticker	Company	Founded	Employees	Market Cap	Stock Price	Revenue	Profit
AMGN	Amgen	1980	22,000	$135B	$235	$25.4B	$7.26B
ABBV	AbbVie	2013	30,000	$197B	$111	$45.8B	$4.62B
JNJ	Johnson & Johnson	1886	134,000	$437B	$166	$82.6B	$14.7B
BIIB	Biogen	1978	7,300	$43B	$286	$13.4B	$4B
PFE	Pfizer	1849	117,000	$219B	$39	$41.9B	$9.6B

Main Focus Areas of Companies:

Amgen (AMGN) — innovative drugs for oncology, arthritis, and kidney diseases.
AbbVie (ABBV) — manufacturer of well-known drugs Humira, Skyrizi, Rinvoq.
Johnson & Johnson (JNJ) — a diversified giant working in immunology, neurology, and oncology.
Biogen (BIIB) — specializes in treating multiple sclerosis and recently released the world’s first drug against Alzheimer’s disease.
Pfizer (PFE) — a world leader known for its vaccines and drugs, including Viagra and Lipitor.

Investing in biotech is not for the faint of heart. Stock prices can change by tens of percent due to news about approval or rejection by regulators for specific drugs.

For example, Biogen can soar 30% in one day — or crash by the same 30%. Therefore, speculating in this sector is risky. It’s much wiser to consider biotech as a long-term investment and use a dollar-cost averaging strategy.

If you don’t want to analyze dozens of individual companies, the optimal choice would be investing through ETFs — index funds tracking the biotechnology sector.

Examples of Funds:

Xtrackers MSCI World Health Care UCITS ETF (LHV) — includes Pfizer, Roche, Johnson & Johnson.
iShares Nasdaq Biotechnology ETF (IBB) — one of the largest biotech ETFs with a 0.47% fee.

Interestingly, during the 2008 crisis, NASDAQ Biotechnology ETF performed better than S&P 500, Dow Jones, and Nasdaq 100, making it a potentially defensive asset during market turbulence.

In our private investment club, residents know that I actively buy Biogen.