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Biotechnology application major
Jun 01, 2018

Many people believe that 2000 was the year of investment in the biotechnology industry. The completion and publication of human genome sequencing is another milestone in the history of science that has captivated many investors. Biotechnology industry in the United States stock market in 2000 added $30 billion, that figure is greatly more than five years before the sum of investing in the stock market, the industry of biotechnology shares with other stock abnormal high technology industry. There are many signs that the biotechnology industry, though less than 30 years old, is maturing.

In 2001, when the U.S. economy was in recession, the biotechnology industry still absorbed $15 billion in investment, the second largest year in the industry's history. Investors believe biotech firms, especially those that specialise in new drugs, and their pharmaceutical partners, will introduce hundreds of new drugs over the next five years. Biotechnology in gene, protein science, bioinformatics, computer aided drug design, breakthrough in the field of DNA biochips and pharmacogenetics, for conquering the disease into the molecular level. Many investors believe that developing new drugs using biotechnology methods will pay off.

According to the United States biotechnology industry organization (BIO), between 1982 and 2000, about 120 biopharmaceuticals entered the market. In 2001 there were 300 new drugs in the final stages of clinical trials. According to past experience, by 2007 the us food and drug administration will have to approve about 240 of these new drugs on the market, doubling the number of biotech drugs on the market. Most biotech drugs are a class of drugs used to treat heart disease, cancer, diabetes and infectious diseases.

The remarkable application of biotechnology is not only in health industry, but also in other industries. Relying on biotechnology, agriculture produces more healthy food with less land; Manufacturing can reduce environmental pollution and save energy. Industry can use renewable resources to produce raw materials to protect the environment.

The maturity of the biotechnology industry is not only reflected in product development, but also in the industry's cash reserves. Since the biotechnology industry raised a lot of capital in society in 2000, most biotech companies had a good financial position in 2001. According to Ernst & Young's biotechnology report 2001, the United States listed 340 biotechnology companies, more than half of the company's cash reserves to maintain more than three years of operation, the future for the industry's rapid development has laid a good foundation.

Another sign of the maturing of the biotechnology industry is consolidation. Deep-pocketed biotechnology companies, such as gene, are mergers and other auxiliary technology company, forming a comprehensive biological pharmaceutical companies, development, production and sales of their products. Such merger activities not only increase the product types and income of enterprises, but also help to improve the competitiveness of the whole industry.

The biotechnology industry is the main driver of the new economy. Although shares in the biotechnology industry have also fallen sharply recently, they have gained more in the past than they have lost now. The nasdaq biotechnology index has fallen 20 per cent in the past year, but is still up nearly 100 per cent from the previous three years. In the current bear market, the index has outperformed both the nasdaq composite and the dow Jones industrial average. Many analysts believe that 2002 biological and pharmaceutical stocks will be mediocre but healthy development, in the next 12 to 24 months, biological shares will again take off, the new biotechnology products will begin to enter the market.

Many us state governments have supported the development of the biotechnology industry and have launched a number of economic development programs to attract biotech companies. Michigan, for example, is one of the top ten biotechnology states, state government promised to enter the top five in the field of biotechnology industry, plans to invest $1 billion, built of Michigan life sciences corridor, the corridor at present already had more than 300 biotechnology companies.

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