The life sciences industry is fragmented and broad. The Life Sciences Tools & Services industry is no different, with many small vendors and niche players operating in this market. While that can make it more challenging for investors to identify opportunities, it also indicates there will be fragmented winners with limited overlap in their services or customers. The life sciences industry is one of the largest global markets today and one of the fastest-growing industries over the next decade. According to Market Watch, the global life sciences market is expected to grow from a value of $332 billion in 2018 to $445 billion by 2023. As a result, there has never been a better time to invest in these companies.
Adaptive Biotechnologies (ADPT)
Ticker: ADPTThis company is developing a platform for producing biosimilars. Biosimilars are a type of biologic that is similar but not identical to an existing biologic and is approved for use in the same condition. A biosimilar is expected to have a reduced risk of adverse side effects compared to the biologic.ADPT’s platform, called Immune Response Biologics, or IRB, is designed to enable the company to rapidly advance its biosimilar candidates through regulatory approval and commercialization, compared to the lengthy timelines required for conventional biologics manufacturing processes. This company also is developing a novel system to treat idiopathic thrombocytopenic purpura, or ITTP, an autoimmune disorder affecting the production of platelets, which are necessary to clot blood.
Pacific Biosciences of California (PACB)
Ticker: PACBThis company is commercializing a new single-molecule sequencing technology called the PacBio Sequel system, which it expects will significantly improve sequencing accuracy and resolution compared to its existing SMRT sequencing platform. It also offers a conventional sequencing service.PACB’s Sequel sequencing platform is expected to enable scientists to sequence complex genomes easily and at a meager cost. It is designed to offer the sequencing accuracy necessary for sequencing the genomes of plants or animals. It also has the resolution needed for sequencing the genomes of cells in the human body or for medical diagnosis.
ICON plc (ICLR)
Ticker: ICLRThis company offers a broad range of services to the life sciences industry. It provides contract research, manufacturing, and material supply services. ICLR also develops, manufactures, and commercializes branded prescription dermatological and wound care products. Its essential products include the Celonoid brand of hydrogels and dressings for wounds, the Transeaderm brand of hydrogels for chronic wounds, the Symbiotex brand of wound dressings, and the Interfuse brand of surgical meshes.ICLR also offers various laboratory services, including discovery research, development and manufacturing, and research and development consulting.
IQVIA Holdings (IQV)
Ticker: IQVThis company provides drug discovery and development services, marketing intelligence, and business analytics to the biopharmaceutical and biotechnology industries. It also offers to consult and contract research services to the pharmaceutical, biotechnology, and medical device industries.IQVIA’s drug discovery and development services include toxicology, safety, and pharmacokinetics studies. Its marketing intelligence services include monitoring, tracking, and analyzing competitive developments in the biopharmaceutical and biotechnology industries.IQVIA’s business analytics services include strategic planning, forecasting, and modeling. It also offers custom service programs to its customers.
The life sciences industry is one of the largest global markets today and one of the fastest-growing industries over the next decade. As a result, there has never been a better time to invest in these companies. Investors should keep an eye on companies developing platforms for producing biosimilars, like ADPT and single-molecule sequencing technologies like PACB. They should also pay attention to ICLR’s and IQVIA’s broad product offerings and services to the biopharmaceutical and biotechnology industries.