Biotechnology is an industry that is focused on the manipulation of living organisms to create commercial products. Wait what? In simpler terms, the biotech industry makes products for four major industries: 1) healthcare (medical), 2) crop production and agriculture, 3) non-food (industrial) uses of crops and other products (biodegradable plastics, vegetable oil, biofuels), and 4) environmental uses.
The demand for personal protective equipment or PPE has been enormous throughout this pandemic. Unprepared to meet this unprecedented demand, hospitals and healthcare professionals have had to work with limited resources.
Clinics, hospitals, etc., will make sure they are well stocked in the future. And because most PPE has an expiration date, demand should remain steady.
Additionally, medical device companies should see large gains next year. Consider the medical device maker Boston Scientific (BSX) to see lots of growth over the next several months.
Because biotech makes products across four huge industries, many of which are growing, it’s not hard to see why people are looking to invest here in 2021.
Biotech Investments to Consider:
- iShares Nasdaq Biotechnology ETF (IBB)
- SPDR S&P Biotech ETF (XBI)
- Sanofi (SNY)
- Pfizer (PFE)
- GlaxoSmithKline (GSK)
- AbbVie (ABBV)
- Merck (MRK)
- BioNTech (BNTX)