Simply put, biotechnology is a technology that is fundamentally based on the biology of living organisms and uses biological processes to develop new products and solutions for the better healthcare of the patients and the society as a whole. Simplest biological processes have been known to mankind since ages like making of curd, bread etc.
But the modern biotechnology space is striving to attain important goals related to the humankind like fighting with rare diseases, reducing the disease infected death rate, creating more advanced products and solutions in the medical space etc.
Australia’s top end research facilities, with well-talented scientists, have made Australia a lucrative destination for these companies. According to EIU’s rigorous international benchmarking, Australia is well placed for the competitiveness of its biotechnology, which has helped to attract more than 470 biotechnology companies.
Biotechnology as an industry is a part of a much larger healthcare sector, which also includes medical cannabis-based firms, medical technology firms, pharmaceutical companies etc. These companies work simultaneously to improve the entire healthcare of society.
As far as the overall healthcare is concerned, it’s been an ever-increasing sector growth since the last 10 years. The sector has constantly been growing due to the technological innovations and better availability of these services to the mass population, which was not as easy as today, compared to the previous 10 years.
If we go through the last 10 years of the Health care index of S&P/ASX 200, a cursory glance would confirm the uptrend that has been sustaining for the previous 10 years. The index of S&P/ASX 200 health care sector includes those companies which are recognized as GICS® members of the health care sector and other sub-industries. As there is no specific biotechnology index listed, we will take a look at the broader healthcare market, including biotechnology.
Currently, the index is comfortably trading above its trend line, and due to consistent innovations and upgradation, the healthcare market doesn’t seem to be depressed for the coming years.