The biotechnology sector can indubitably be named one of the most critical segments in terms of developing new treatments for diseases as well as finding new approaches for expanding food and fuel. Biotechnology utilizes living organisms to make products or run processes and has been expanding rapidly since the 1990’s. The Biotechnology corner of the stock market is known to be risky and engaging however, not many industries are able to extend lifespans and greatly improve ones quality of life.
Currently, the biotechnology segment is on the rise especially as technology is advancing. Significant research is being conducted on cancer care and therapies for infectious diseases, diabetes and cardiovascular disease among others. However, even though the segment is growing with the new President Donald Trump’s policies and the threat of the appeal of Obama’s Affordable Care Act (ACA) the future is uncertain. Trump’s stance on policies often deviates and if he follows through with the repeal of the ACA investors should likely see a rise in profit of these large healthcare companies and biotech stocks. Currently, the ACA has regulations in place to keep drug prices low and by lifting these regulations the ACA will no longer be restricting potential profits. Also, with the abolition of the ACA and a Republican makeover there will be fewer insured Americans this will also increase profit since the healthcare companies will no longer be obligated to insure every American.
The Biotechnology sector is seeing medical breakthroughs ranging from a cure to sickle cell anemia utilizing synthetic blood to Tricorders which are portable tools used to diagnose health conditions and take vital signs. Those are some the intriguing developments seen in the biotech sector. Investors should keep an eye out on certain biotechnology companies that are expected to grow in 2017. The first one being Celgene Corp.(CELG), which targets inflammatory diseases and cancer. The companies revenues and income has been increasing for the past four years. CELG does not only make their own products but they also work with other drug makers to bring products to the market. Secondly, Gilled Sciences Inc. (GILD) a leading company in the development of HIV treatments, and of a successful drug for treating hepatitis C. GILD is expected to increase their earnings in 2017 lasting through 2019. Lastly, another biotech stock predicted to grow in 2017 is Enzo Biochem Inc. (ENZ) the company offers therapies for diabetes, cardiovascular disease, cancer and infectious disease. ENZ has been in an uptrend since March 2016 and has been increasing revenues steadily since 2014.
In the future, we can look to the biotechnology sector to produce ground breaking cures, and find innovative ways to produce fuel and food among others. However, as Donald Trump begins his presidency his policies will greatly influence the potential earnings and growth of biotech stocks. It is critical to find a balance between increasing profit for drug makers while at the same making these often life saving drugs an available option for society.The more people who are insured increases the likelihood of preventative services being utilized and would overall increase society wealth-with a healthy workforce. Nonetheless, obligating health care companies to insure everyone is a steep cost- which is why it is critical to find a medium between high prices and providing lifesaving care and treatments.