The biotechnology industry has created a lot of buzz over the last several decades as new medical advancements and therapeutic developments have begun to change the current life sciences landscape. The number of new therapies, drugs, and vaccines that are being developed has increased drastically, but this growth has not always been reflected in the market. However, forecasters are hopeful that there will be a positive trend in biotech stock value beginning in 2023. Understanding the biotechnology market forecast is an important tool for those looking to make lucrative investments, for start-up companies trying to find niche market segments, and for business owners looking to understand where their company fits in the market space.
Medical Biotech Industry
Although general awareness of biotechnology is growing, many consumers are still unaware of the breadth of the biotechnology space, largely in part because of how broad and unclear the definition of biotechnology can be. In its most basic sense, biotechnology is an industry that is based on the manipulation of living organisms to create commercial products. However, under this definition, there are two main market segments that can be considered: medical and agricultural biotechnology. Agricultural biotech can include any animal manipulation from livestock breeding to genetic engineering of food products. The medical biotech industry lists drug development and therapeutics for diseases as its distinguishers. Although it is difficult to further define and specify different biotech market segments (as there are a nearly unlimited number of segments that fall under these definitions), understanding what the market consists of is a key tool for consumers and investors alike.
Since 2020, many consumers would have expected the biotech market to grow, as the Covid-19 pandemic dramatically increased the need for medical biotechnological advancements. Although biotech companies are developing novel therapeutics to fight against the Covid-19 virus, they have yet to utilize revenues in a way that is favorable in the market, as the last several years have shown a decline in the market value of this space. As a result of this, there is some debate over how successful the biotech market will be in 2023, but the projections developing companies showed at year end will only serve to fuel the market in the coming years. Smaller companies are taking advantage of new spaces that fall within the biotech definition and serve a new segment of the market. They are looking to break through and have significant impacts in 2023. Unlike many traditional commercial markets, there will always be a need for healthcare and medical improvements.
2023 Biotech Trends
There are a few key trends predicted to take hold in 2023 that support claims that this will be the year the biotech market will see an increase in value.
- More personalized medicine – As technology has developed, researchers have been able to create custom treatment plans for patients so that the treatment is more successful. The more successful a therapy, the better the product will do in the market.
- An increase in collaborative efforts between biotech companies– Many of the criticisms towards the biotech industry are a result of the lack of collaboration that has traditionally been accepted in this field. The more secretive product development is, the more intellectual property (IP) protection is created, and the more individualized the profits are. This is what biotech companies have been programmed to strive for. However, in life sciences related fields, collaboration is what breeds collective success for the overall market.
- More accurate value-based pricing of biotech goods– Legislation has changed recently to help decrease the pricing of biotech goods for consumers. Companies are now presenting data detailing the efficiency of their products to give consumers an idea of the real-time value of their products. Having an accurate valuation of products gives an accurate valuation of the company and how it stands in the market.
- Small biotech companies are expanding in the market with greater ease– Although large pharma is still a huge player in dictating the biotech market, they are now looking to small biotech companies to fill pipelines that large companies lack. Large companies are looking to small companies to get the biggest bang for their buck, allowing small companies to have a more significant impact on the market space.
With this, it is easy to forecast that small biotech companies will be the future drivers of the market. One such company is StemCultures, LLC based in Rensselaer, NY. The company aims to revolutionize cell culture practices by way of controlled-release growth factor technology. The company’s products (StemBeads® and DISC Devices™) are culture media additives that slowly release growth factors over time at consistent levels. This method saves scientists time and money by reducing feeding schedules while improving cell quality. StemCultures was able to find a niche in the broadened medical biotech market as the sole manufacturer of control-release technology for the application of cell culture.
StemCultures anticipates growing with the expected market forecast for 2023. The company is looking to add a new StemBeads varieties to serve a broader customer base. While constantly working to expand the number of products commercially available, StemCultures also offers the option to have custom products made to fit your needs.
What does this mean for the biotech industry in 2023? Regardless of current market trends, over the last 10 years, the value of biotech indexes has increased over 1000% and investors have reason to believe these numbers will be matched over the next 10 years. However, recent advancements require investors and consumers to look at the industry from a different angle, focusing their efforts on fueling small companies because of the positive impact they will have on the industry. As the future is unpredictable, it is impossible to say for certain how the landscape of the biotech industry will look one year from now, but given the trends beginning to appear at year end 2022, the future for biotech looks bright.
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Note: Opinions and accounts expressed herein are those of the author(s) or interviewee(s) and may not reflect those of StemCultures, its officers, or directors.