Investing in biotech and pharmaceutical stocks can be incredibly lucrative. It is an industry where companies can live or die on the back of a single drug approval; and where share prices can move to a degree that reflects this extreme dichotomy. There are therefore large potential profits to be made in the sector, but it pays to be cautious, and to take a measured approach.
The sector benefits from spending and demographic trends, which sees an aging population in the western world spending increasing amounts of money to meet their healthcare needs. Indeed, per capita healthcare spending is rising at around 4.61% globally and around 7.24% in Australia per year.