Individual Investors

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After coronavirus vaccines made biotech the standout performer in 2020, the sector has faced a major reckoning this year. Small Biotechs Have Underperformed This Year Source: S&P Global, ETF Securities. Data as of 7 December 2021. Over the past year, the S&P 500 has delivered a return of 26%. Yet over the same period, the S&P Biotechnology Select Industry Index, which measures the US biotech sector on an equal weighted basis, is down 16%. The underperformance has left many wondering what’s going on. ...
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Biotechnology came into the spotlight in 2020 as many companies raced to test and register vaccines for COVID-19, however, the potential and growth of this industry extends far beyond the pandemic. Biotechnology is transforming the way we treat and manage a range of health concerns and diseases and can be a highly lucrative space. What is biotechnology? Biotechnology specifically refers to technologies that use biological processes, capturing companies that focus on research, development, manufacturing and/or marketing of products based on biological and genetic information. The different types of biotechnology include biological drugs, vaccines, immunotherapy, gene therapy, orphan drugs and genetic engineering. While Australian companies like CSL Ltd (ASX: CSL) are no slouches when it comes to innovative biotech, the US is typically viewed as the global centre. The dominance of the US market is partly due to the world-renowned US Food and Drug Administration (FDA) approval process and to the size of its customer base. As a result, many companies base themselves in the US for easier access to the process and more efficient ability to distribute and market to US consumers. Global innovators ...