Here’s a look at why more and more investors are looking to the life science industry for opportunity.
By Tara Chloe Dusanj
Life science specifically involves the study of living organisms, which cross with multiple industry verticals like healthcare, technology and manufacturing. Seeing as it carries so much, diverse weight and impact, life science should be a standalone industry group.
Current research shows that when executed properly, life science is a wise investment. Compared to other sectors, Life science is not as celebrated, and is often looked over because of its complex subject matter.
Despite these realities, investing in life science has massive, world benefits. Life science improves human health and the global quality of life. It is a sector that is affecting society at large, and if invested in properly, life science can propel ground-breaking and monumental change.
Google, now Alphabet (NASDAQ:GOOG) is one of the biggest advocates for life science, having invested a large 36 percent of its money into healthcare and life-science start-ups. This is a huge increase from the nine percent that was given to these industries two years ago.
Google’s investment firm, Google Ventures has backed companies that help people personalize cancer treatments, make meat and cheese out of plants and provide people with a better understanding of their own DNA.
Google Managing Partner Bill Maris believes that the rapid advancements and discoveries in life science will not only change the way we communicate, but it will help people “suffer less and die less.”
Maris has faith that one day it will be possible to live until 500. He refers to this as the “transistor moment” for life science, which he thinks will be as revolutionary as the mobile phone.
The sequencing of the human genome began in 1991 and ended in 2004. There was no hope of curing Cancer previously to being able to sequence genomes.
There was the recent announcement that the consumer genetic leader AncestryDNA, partnered up with the Google-backed longevity company Calico, in order to share its proprietary databases, tools and algorithms.
This will enable Calico to extend its efforts to devise therapeutics that tackle the adverse effects of aging. This research will be a vital contributor to making Maris’s faith (that we can successfully live to 500), come true.
Certainly, ongoing investments in life science will present revolutionary changes. Life science advancements are common discoveries.
Decades of advancing genetic research (undergone by the biopharma industry) shows a revolutionary shift from “one-size-fits-all” drugs to targeted therapies, which open the door for massive start-up innovation.
Investing in life science is smart because it will help us get the solutions we are after. Funding start-ups can help us discover the next generation of drug therapies.
Venture capital funding for life science companies has increased nearly 29 percent in the last year, which is the highest funding amount since 2008.
Life science is a trending investment. Just take a look at The Top Life Science Investors of the 2015 Midas List. It is expected that the numbers will only continue to prosper. This will occur as long as the regulatory environment and exit markers remain favorable.
When Considering a Life Science Investment:
- Take your time
- Evaluate the management carefully
- Look for a diverse set of skills
- Ensure the knowledge is being properly communicated
- Know what you are getting into on every possible level
- Invest at the right time because Companies go through stages
Life science companies
Interested in the life science industry? The TSX Venture 50 list is a valuable place to begin. Here are five life science companies currently making waves:
- VANC Pharmaceuticals (TSXV:NPH)
- Tribute Pharmaceuticals Canada (TSXV:TRX)
- Medicure (TSXV:MPH)
- bioMmune Technologies (TSXV:IMU)
- Sernova (TSXV:SVA)
The hype surrounding life science continues due to the massive potential of the industry. As it includes a number of innovative organizations, life science is a significant contributor to the health and economy of the world.
Securities Disclosure: I, Tara Chloe Dusanj, hold no direct investment interest in any company mentioned in this article.