Why is healthcare/pharma sector so hot right now? Is it cyclical?
What changed in the healthcare/pharma sector? Why is it growing so rapidly? Most job openings in ER are in Heathare/Pharma/Medical.
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Speculating here... but would have to think it’s in part due to the government funding that is flowing into these spaces to try and stop the spread of COVID-19 and ultimately find a cure. I’m assuming whichever company will be able to mass produce a vaccine will probably see a very large monetary benefit, and firms are probably trying to identify which companies to invest in based on this.
Following this to see if someone closer to the space can confirm.
COVID-19 is biotech bubble... No biotech analysts take seriously for COVID except for a few star vaccine and antibody players as COVID actually disturbs all the trials and readout planned and, therefore, the money raising events. Biotech has been compressed for its valuation multiple since 2015/2016 and now kinda bounce back, as Americans realize WW people are free ride USA innovation. With a new wave of technology coming from private companies and entering clinic, we have another 3 years of capital market open for biotech IMHOz
Covid and drug makers will be the big talk for likely the next year. Banks are hiring in healthcare as a result of this.
Facts. I'm on a HC team and we are adding people during the pandemic.
If more than one company find a cure, do you think there'd be enough room for both to survive?
There are a few factors imo. There’s a lack of supply of those with sciences/medical backgrounds in finance, the sheer number of public biotechs (around 1000 in the US) that can help generating banking revenues or corporate access business, and healthcare generally being a defensive sector with high growth areas like in biotech.
Just to add to it, there are specifics to the sector that make it harder to cover than others. The truth is, having a science/medical background really makes it easier to understand the actual products. (as used as an example in another post on here - if you look at Autoimmune as a class, you have JAK inhibitors, Anti-TNFs, T-Cell Inhibitors, Interleukin Inhibitors, PDE-4 Inhibitors, Corticosteroids, and NSAIDs, among other drug types), or how the drug process works from 1st steps to final FDA approval. While folks with any background can learn, the learning curve is a lot shorter for folks with that background.
Agree. But immunology still is more to biopharma than biotech. Oncology is the biggest deal and that really require years of knowledge of pre-clinical and clinical data memory to play well in the field...imagine you have to be familiar with all PD1 PDL1 in development. :(
I don't disagree, but I think that using Immunology could be an easily digestible answer explaining the importance of a scince degree of a medical background. If I wanted to get technical here, Imunology has its biotech roots too. Look at Humira and Infliximab. These are biologics and when they were first introduced, they were at the forefront of biotech. Now, these aren't not Oncology products, and required a big understanding of clinical data when they were first launched too. Oncology is too vast a space to use as something that's easily digestible. I mean you have Car-T, PD1/PDL1, VEGF-A, Anti-CD20, etc. all targeting different subsetsof cancer. And in terms of knowledge, it's more about understanding to read and interpret than it is the nuts and bolts of a specific drug's preclinicals.
Bump
because COVID. The only funds getting raised right now are healthcare funds, and biotech stocks are thru the roof.
COVID is the obvious short-term answer, but if we zoom out and think bigger picture, aging population is a big secular theme. Probably one of the more durable growth sectors from that standpoint.
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