Since the onset of the COVID-19 pandemic, substantial government and private investments in developing vaccines and treatments to fight the virus have helped the biotech industry grow significantly. Continued breakthroughs to treat chronic diseases and increasing demand from an aging population should keep driving the industry’s growth. Moreover, biotech companies are integrating advanced technologies in the drug development process, which should help them generate high profits. The global biotechnology market is expected to grow at an 8.7% CAGR to reach $1.68 trillion by 2030.
Although the recent market sell-offs due to the expected aggressive interest rate hikes and continued geopolitical tensions have recently caused biotech stocks to witness a dip, surging demand for biotech products and impressive breakthroughs should allow these stocks to rebound soon.
