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Health became a number one priority in 2020 and the biotech sector soared. But, can this rise continue? What lies ahead for the biotech sector?

Let's start off by exploring what biotechnology is and the types of companies in the industry. 

What is Biotechnology?

Biotechnology combines biology and technology to find technological solutions for problems such as disease or pollution using life forms (bacteria, fungi, viruses, plants, animals etc,). Biotechnology is used to solve a wide range of problems, generally in the agricultural, medical, or industrial sectors. 

Biotechnology is used in a range of ways, such as to protect crops from pesticides, find medical cures, and create new biofuels. 

What Caused the Rise in Biotech?

The pandemic prompted scientists and medical researchers across the globe to find a treatment for the COVID-19 virus. With all eyes on the spheres of science and medicine, investors saw that investing in biotech acquisitions and partnerships was a smart investment. 

Despite a small downturn at the beginning of the pandemic, the biotech sector has thrived, outperforming technology companies, pharmaceuticals, and many other big names in share prices. 

The crisis may have been the catalyst behind the sector's record growth, but its commitment to innovation has allowed it to keep the momentum.

Types of Biotech Companies

Most biotech companies fall into one of the three main categories of biotechnology:

■ Medical (red)

■ Agricultural (green)

■ Industrial (white). 

Since biotech is one of the fastest-growing industries in the world of research and development, new types of biotech companies are emerging rapidly. Some of these companies straddle more than one of the main categories and others don't fit into any of them.

Let's deep dive into the three main types:

1. Medical Biotechnology

The medical biotech sector encompasses biotech companies that work to find health solutions in humans or animals. While a small segment of medical biotech companies specialises in veterinary treatment, the majority focus on humans.

This includes disease prevention, diagnostics, vaccines, therapies, cures and treatment for diseases. It also involves researching the biology of human cells to better understand how to maintain human health.

Many biotech industry leaders partner with contract development and manufacturing companies (CDMOs) that provide research, development, and manufacturing services to biopharma companies. This accelerates the progress of medical biotech products, regulates manufacturing practices, and leaves more resources for innovation. CDMOs carry out a wide range of functions, such as Cell line development services.

2. Agricultural Biotechnology

Biotech companies that work in agricultural biotechnology typically focus on solving farming problems by genetically modifying plants. This could be to increase crop yield or make crops hardier against certain pesticides or weather conditions.

Biotech companies in the agriculture sector also research solutions to make crops last longer, grow in difficult environments, or increase health benefits. For example, infusing foods with nutrients. 

Animal biotechnology works on improving the health of livestock and enhancing food production. 

A common tool in agricultural biotechnology is DNA modification. DNA modification may involve selective breeding to boost the health of livestock or crops. Biotech scientists do this by transferring genes from one plant to another to improve a certain characteristic. An example of this is taking a gene from a hardy plant and transferring it to other crops to help them grow in inhospitable environments. 

3. Industrial Biotechnology

Biotech companies in the industrial biotechnology sector use life forms such as microorganisms, algae, plants, and fungi to create energy, chemicals, and other materials. Most industrial biotech companies look for earth-friendly solutions such as biofuels and biodegradable plastics.

Industrial biotech companies cover everything from biofuels to cheese fermentation technologies to building buillet-proof fabrics using DNA modification.

The biotechnology field has shown its resistance in the face of trying circumstances and has continued to flourish. With biotech companies such as CDMOs in high demand, the rise of biotech looks set to continue.