Will The Business Of Biotechnology Be Profitable?

The biotechnology business is rapidly expanding as it becomes clear that the scientific research carried out can have a definite benefit to many industries. The most obvious example, and the one at its furthest stage of development, is crop growth within the agricultural sector. Still, there is also a medical application that has a huge potential for growth and profit. We may not have reached the level yet where most biotechnology companies have moved into profit, but these times are not far away.

The history of sciences that are revolutionary shows that there is a distinct phasing to development and growth. When science is young, progress is slow as hardly anyone is trying to carry out experiments or create new learning. Those who are trying only have the most primitive resources to work, as so little is known at this stage. The painfully slow progress quickens as more research is carried out, and the momentum gradually builds. As the first projects become commercially viable, capital comes in to fund new research, and the momentum quickens again.

We have gone past that stage with agricultural biotechnology. The initial research has already proven that it is possible to create new strains of crops resistant to disease and which can greatly increase food yields from the same area of ground. These techniques are now being implemented in commercial projects worldwide and are beginning to pay off in actual revenues. When businesses move into profit, the stage is now approaching, although there is still more research. There are ways to make crops even more resistant to the threats which are inherent within nature.
The business of biotechnology needs to take commercial advantage of every opportunity to increase food yields in difficult conditions. It is possible to grow crops resistant to disease, as this is already being done, but it is also possible that there will be ways to grow crops that are resistant to adverse weather conditions. There are always fluctuations in climatic conditions, but some years bring more severe weather than others. If crops could be produced which would survive through drought or extreme cold, average yields would increase.

The biotechnology business is not yet so advanced in the pharmaceutical sector, but the potential for future profits is definite and extensive. The main benefit is not producing new drugs but allowing medicines that have already been developed to be made more cheaply and consistently. It is possible to use genetics to combine synthetic drugs with plants and have those plants recreate and reproduce extra drug quantities. The potential benefits to the world population are vast, and the profits associated with pharmaceutical companies are a certain motivator for biotechnology researchers to be looking in this direction. This is likely to be the most profitable sector for many years to come.

There is no doubt that the business of biotechnology can be highly profitable, as long as the research is carried out in the right way and with the right commercial opportunity at the end of it. Although there is considerable profit potential when investing in biotechnology, it has to be understood that there is a significant risk factor. It is not easy to predict what will be possible in the future, and no company can expect the advances which a competitor might make. Be careful to balance your portfolio when you invest in the business of biotechnology.

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