09 April 2019

Don't miss the profit

The most profitable branches of medicine for investments are named

Georgy Golovanov, Hi-tech+

Technology and healthcare experts gathered at the Brainstorm Health conference in San Diego, shared their views on the most promising and profitable healthcare industries.

The bankers' conversation revolved around Amazon's contribution to healthcare, Fortune writes. Last year, the trading giant acquired the pharmaceutical company PillPack and formed a non-profit medical enterprise with Berkshire Hathaway and J.P. Morgan.

"Everyone wants to know what Amazon is doing," says Cherie Mowray of Morgan Stanley, but the company keeps its plans secret.

It remains only to observe how Jeff Bezos hires health professionals to participate in some classified programs. And assume that his next step will be the monetization of medical devices.

However, a lot of money – and a huge benefit for patients – lies in the field of new developments in biotechnology. According to Amit Sinha of Goldman Sachs, they are the future of healthcare, and this is true for both large and small companies. "If you look at immunotherapy in oncology, the biggest players today are big pharmaceutical companies, and this is partly because serious funding of hundreds of millions of dollars is required to unlock the full potential of some types of treatment."

Nevertheless, the contribution of small firms like Tmunity should not be neglected. Legendary Silicon Valley investor Beth Seidenberg of Westlake Village BioPartners said that Tmunity startup has prepared a product for clinical trials that turns off several cancer genes. "You often read about gene editing and CRISPR-Cas9 as a tool for turning certain genes on and off," said a veteran investor with 14 years of experience. – The question arises when they will be ready for people. I'm here to say – it's already happening."

In addition, cell therapy has a huge potential, which can complement and enhance drugs that affect the immune system.

"This industry alone will become the basis for the creation of very important drugs in the 2020s," the banker believes.  

And yet investors are still afraid of the high threshold of entry into the biotechnology market. The pace of development of the industry is even too high: what was a breakthrough yesterday may become obsolete tomorrow. Banks are cautious, expecting the appearance of large-scale medical research proving the viability of a particular medical technology.

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