Biotech can still be healthy to investors, says Rothman Research

One of the key drivers boosting demand for biotechnology products and services is the readiness for insurers to disburse funds for innovative therapeutics solutions and treatments, according to a new report from Rothman Research.

For companies to capture those demands and maximize their profit margins on them, it would generally depend on how they have invested in R&D and how resourceful their marketing strategies are, it notes. What makes this market interesting for small fish sharing the waters with larger pharmaceutical corporate is the fact that there is room for competitive co-existence provided the small companies have the proficiency in a particular field of research.

There is just fine line separating biotech and pharmaceutical industries and one could arguably identify the growing similitude between those two industries as more drugs are being created using biotechnology know-how. "The biotech industry is one of the pillar industries savvy investors look forward to invest in," commented Mathew Collier of Rothman Research. "However, it is also true that it is a risky venture which often gives way to speculations. The rewards are high if the company you invest on makes it through clinical trials and Food and Drug Administration's strict guidelines."