Biotechnology sector of the future: quantum leaps in drug development

Disruptive technologies and technological progress are increasingly permeating research, accelerating processes and bringing humanity one step closer to a full understanding of nature. Will bioTECHNOLOGY replace two purely technology-driven decades?

The number of research publications on new, innovative technologies is increasing rapidly, as is the number of programmes in preclinical and clinical development. Artificial intelligence will revolutionise basic research.

The pharmaceutical industry is threatened by patent expiries on a historic scale. To compensate for this competitive disadvantage, it has to buy in innovations - and finds them at biotech companies. This makes many biotech companies takeover candidates for which lucrative premiums are paid.

By 2060, there will be 1.7 billion people over the age of 65 worldwide. In addition, increasing prosperity is contributing to diseases of civilisation such as obesity.

As a highly interest rate-sensitive stock market segment, biotech stocks have suffered particularly from the rapid rise in interest rates. Until recently, a historically high number of biotech companies were valued "below cash". This was rare before 2021. The phase of irrational undervaluation of biotech companies is coming to an end, what counts again are the fundamentally significant advances in this industry of the future. This is a promising prospect for investors.

The downward trend in interest rates is supporting capital-intensive research, meaning that fundamental aspects such as the results of clinical trials and therapy approvals are likely to play a greater role in the valuation of biotech companies again. As a result, the headwind for biotech companies is turning into a tailwind for sentiment.