Biotech-2019: where to invest?

Trends in the development of biotechnologies in 2019

Dmitry Tokarev, BitCriptoNews

Last year, the results of the development of biotechnologies attracted the attention of investors to the corresponding ETFs on the exchanges. In 2019, the profitability of investments in bioengineering will largely depend on the developments described by Shelly Fan, a neuroscientist at the University of California, San Francisco.

Gene drive in the wild

The concept of gene drive scares many for obvious reasons. Gene drive is a type of genetic engineering technology that distributes a specific set of DNA throughout a population. We will not go further into alleles. The main thing is to realize that this is a serious step forward, which will cause no less serious consequences in the development of gene editing tools in human embryos.

The potential benefits of the technology are huge ‒ the whole family can get rid of diseases transmitted by genes (schizophrenia, Alzheimer's disease, etc.) The risk is that the "editing" of sperm and eggs can lead to the opposite consequences ‒ the emergence of new diseases. In this case, the development of biotechnology can cause serious problems to entire species. The possibilities of gene drive are so great that they break the dogma "half of the DNA comes from dad, the other half comes from mom."

Mosquitoes or rodents may become a possible object of full-scale testing. By releasing just a few mutant mosquitoes with genetic inducements to infertility, scientists can potentially destroy entire populations carrying infectious disasters (malaria, Dengue fever or Zika). The technology is so powerful and dangerous that the US Defense Development Research Agency is allocating $65 million to research ways to control, counteract or even reverse possible negative advances in biotechnology.

Last year, the UN cautiously approved the use of gene drive in limited use. Currently, the first release of a genetically modified mosquito is being prepared for testing in Burkina Faso in Africa. The experiment will release 10,000 mosquitoes of the genus Anopheles, which are the main culprits of the spread of malaria. The non-profit consortium Target Malaria, supported by the Bill and Melinda Gates Foundation, is developing a Mosq gene drive that will spread infertility among insects with malaria. Target Malaria's attempt to save millions of people is scheduled for 2024.

Prospects of gene biotechnology and CRISPR

First, let's define the concepts and give the shortest overview of the work of CRISPR – the so-called "immune system" of a bacterium, which consists of repeating DNA sections. Spacer is a prototype of a virus that a cell has encountered throughout its life. The Cas9 protein compares the spacer with the DNA of the virus and cuts the harmful element. The idea of biotechnologists is that the Cas9 protein is programmed to edit an undesirable sequence of amino acids in DNA. Thus, Cas9 is endowed with an additional function for changing the gene.

In September 2018, the biotech company Sangamo Therapeutics from Richmond, California, conducted its own test. As part of it, the patient was injected with enzymes for gene editing, trying to correct a genetic defect in the breakdown of complex sugars.

Sangamo's experience involves the introduction of edited genes into the body directly through injection. Now the procedure looks safe, although at the time of writing the report on it it was still too early to determine the effectiveness. This year, the company hopes to finally answer whether such methods of biotechnology really work. Success will mean that devastating genetic disorders can potentially be treated with just a few injections. With a whole range of new and more accurate CRISPR and other gene editing tools, the list of curable hereditary diseases will grow.

A loud scandal with CRISPR children happened at the end of last year. A scientist from China, He Jiankui, announced the birth of the first children with an altered CCR5 gene. CRISPR technology was applied to girls named Nana and Lulu. The children are healthy and should now be immune to HIV. The statement caused a wide response and deep concern on the part of the public.

The investigation into the gene modifications of CRISPR children was completed on January 22, after which Jiankui was dismissed from Shenzhen University. Also, a Chinese scientist may be charged because of the falsification of the results of inspections by the ethics commission.

Neuralink and other interfaces of neurocomputers

Neuralink is a startup of Elon Musk, which is engaged in implanting tiny particles into the brain. The function of these particles is to connect human biological software with a computer and the Internet. Elon Musk appreciates the prospects for the development of biotechnology very highly. Musk's desire to achieve symbiosis with artificial intelligence is not the driving force for all neurocomputer interfaces. The main incentive is the rehabilitation of patients suffering from paralysis, memory loss or other nerve damage.

In 2019, the interfaces of neurocomputers and neuromodulators will finally be able to work autonomously in the damaged brain, using electrical stimulation only when necessary. Neurocomputers will allow scientists to control the brain without using optical fibers. Getting rid of the cable will only be the first step to fine-tuning neurological treatment.

Investments in biotechnology

After a certain stagnation, pharmaceutical companies have adjusted their approach to development, and the industry as a whole is increasingly pleased with success. Let's highlight some events that confirm the interest in the prospects for the development of biotechnologies in 2019:

• January brought the SPDR S&P Biotech ETF (XBI) a sharp jump of 20%.
• Bristol-Myers Squibb acquired Celgene Corporation specializing in cancer treatment for $74 billion.
• Eli Lilly has spent $8 billion on cancer drugs related to genetic mutations.

In addition to XBI, there are 6 other biotech ETFs that may be of interest to the investor:

• iShares Nasdaq Biotechnology ETF (IBB).
• ALPS Medical Breakthroughs ETF (SBIO).
• Invesco Dynamic Biotechnology & Genome ETF (PBE).
• SPDR S&P Biotech ETF (XBI).
• First Trust NYSE Arca Biotechnology Index Fund (FBT).
• iShares Evolved U.S. Innovative Healthcare ETF (IEIH).
• ARK Genomic Revolution Multi-Sector ETF (ARKG).

The last security is interesting because it is related to the CRISPR research.

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