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How to Invest in Life Science

A breakdown of everything to know about how to invest in life science — from biotech and pharmaceuticals to medical devices and genetics.
The post How to Invest in Life Science appeared first on Investing News Network.

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The overarching term “life science” refers to the study of living organisms and life processes. Given the sector’s broad reach, many investors aren’t sure exactly how to invest in life science. 

To start, it’s important to understand that the industry encompasses the fields of biotechnology, pharmaceuticals, medical devices and genetics, to name just a few. Companies within each subsector are involved in researching and developing innovative products, advancing technology and striving towards drug or device commercialization by way of clinical trials and patent applications.

Read on for an overview of these four key life science sectors and how to invest in life science.

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1. How to invest in life science: Breaking down biotechnology

Biotechnology is backed by innovation and is a sector that uses cellular and biomolecular methods to improve or create products in various industries.

Public biotech companies are mostly focused on the medical markets. The majority of biotech companies are engaged in the long-term research and development of new medicines and vaccinations.

As it stands, there are hundreds of existing biotech products, as well as many products under development for hitherto untreatable diseases. Generally speaking, biotech products are geared towards eliminating infectious disease rates, treating patients with life-threatening diseases and providing individuals with treatments to reduce health problems and side effects.

2. How to invest in life science: Understanding the pharma space

The pharmaceutical sector is perhaps the area most associated with the healthcare sector. That is because pharma companies are the backbone behind bringing new cures to the market and improving the treatments that are available for patients.

However, diseases aren’t easily targeted; there’s no specific cure for all types of cancer or a direct method for stopping the various ailments that affect humanity.

As such, companies in the pharmaceutical sector expand the potential of treatments and seek new ways to work with what is already in place. For example, a company might develop drugs for multiple indications or could look at addressing broader categories, such as pain.

3. How to invest in life science: What to know about medical devices

In terms of medical devices, those interested in the long-term life science investing market should look to medical technology companies that are developing devices. These entities continue to play a prominent role in every level of healthcare.

 

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The medical device market covers a wide range of health and medical tools used in the treatment, mitigation, diagnosis and prevention of diseases and physical conditions. As modern medicine is rapidly advancing, medical device development must keep up.

Some medical device examples are neurostimulation devices, surgical implants, ultrasound imaging devices, robotic medical technology and insulin pumps and insulin pens for diabetes. Similar to how pharmaceutical companies aim to help unmet needs, medical device companies are looking to do the same through their technologies.

4. How to invest in life science: The complex world of genetics

Finally, genetics is the study of genes, their variations and hereditary characteristics. As Live Science describes it, genetics involves looking at how traits are passed on through generations.

Breaking that definition down, there are several major branches that make up the genetics tree: classical genetics, molecular genetics and evolutionary genetics. Aside from that, there are various other subcategories within those branches.

When it comes to genetics investing, companies in this niche life science sector are mostly focused on four areas: DNA sequencing, genetic testing, gene therapy and genomics, which includes genome editing.

The life science investing opportunity

For those interested in the life science sector, there is no shortage of investment opportunities. From top biotech stocks and exchange-traded funds (ETFs), to Big Pharma companies, pharma ETFs, medical device companies and genetics stocks, there are many stepping stones into life science investing.

According to a report from Deloitte, transformation is “at the core” for companies across these verticals, and that will force many of them to continue developing new innovative products through partnerships, acquisitions and, of course, technology.

While the life sciences industry may seem complex, its overarching future is promising and ripe with investment opportunities now and for years to come.

This is an updated version of an article originally published by the Investing News Network in 2013.

Don’t forget to follow us @INN_LifeScience for real-time updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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Costco Stock Forecast and Review

When looking at a Costco stock forecast, there are a few things to watch out for. The predictions for growth continue for investors.
The post Costco Stock Forecast and Review appeared first on Investment U.

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Costco (Nasdaq: COST) is currently the world’s 3rd largest retailer by revenue (behind Walmart and Amazon) and is well known for offering wholesale prices to its members. To start with a Costco stock forecast, it’s important to understand the business…

For just $60 per year ($120 if you go with the “Executive Member” plan), Costco members can save money on gas, groceries and just about every product in between. Costco also owns the highly-coveted title for “The World’s #1 Seller of Rotisserie Chickens.”

Costco opened its first store in Seattle in 1983 and today has grown to 815 warehouses. From the get-go, its strategy has been to eliminate all the “frills” associated with retailers in order to cut costs. By cutting its operating costs to the bare minimum, it’s able to save money and pass these savings on to its customers. Common retail expenses that you won’t find at a Costco location are salespeople, fancy buildings or delivery options (groceries excluded).

Costco Saves for Customers and Investors

Over the years, Costco has become popular for saving its members tons of money. However, to shop at Costco you need to join its membership program which currently sits at just under 110 million cardholders. This equates to at least $6.6 billion in annual recurring revenue for Costco. However, the loyalty that this membership builds is worth much more than $6 billion.

When you sign up for a Costco membership, Costco automatically becomes your de facto place to purchase goods. Almost without thinking, you’ll pick Costco over Target, Walmart or Amazon because you know that you’ll save money by shopping at Costco. On top of the savings, you also want to make sure that your $60 per year commitment doesn’t go to waste. When it gets a new member, Costco wins twice. It gets $60 in annual recurring revenue and it also gets a large chunk of that person’s daily spending, potentially for the rest of their life.

Programs like Amazon Prime and American Airlines’ AAdvantage program have been successful for similar reasons. After signing up, Amazon Prime members will slowly get in the habit of ordering everything from Amazon. They want to take advantage of free 2-day shipping. Also, some diehard AA members will not even consider booking with another airline because they want to ensure that they’re getting rewarded for flying (through AA miles).

With this in mind, should you include Costco stock in your portfolio, even if you don’t have a membership card at home?

Let’s take a quick look at a Costco stock forecast as well as a few predictions for the stock moving forward.

Costco Stock Price Forecast

Note: I’m not a financial advisor and am just offering my own research and commentary. Please do your own due diligence before making any investment decisions.

Costco is scheduled to announce earnings on September 23, 2021.

In today’s investing environment, so much relies on the coronavirus pandemic. Did the company have a business model that thrived during the pandemic? Did it capitalize on this position? Will this success continue now that the pandemic is mostly over? In Costco’s case, these answers are yes, yes and yes.

Costco was undeniably a Coronavirus winner (check out these telemedicine stocks as well). People were prepping for the COVID-19 quarantines like it was the apocalypse and Costco’s wholesale-style business is literally designed to help people save money while prepping for the apocalypse. What’s surprising, however, is that Costco is actually getting more traffic now than it was B.C. (Before-COVID).

According to foot traffic data from Placer Labs, Costco’s monthly visits were up 13.8% in July 2021 as well as 12.8% in August 2021 (when compared to 2019 numbers). During its December 2020 earnings report, it reported that revenue from memberships rose 7%. It’s likely that many people opened a new Costco membership in hopes of saving money while it stockpiled quarantine supplies. Now, even though the pandemic is over, this buying habit remains.

Notably, Costco’s success is not an outlier within the industry. Other wholesalers like Sam’s Club and BJ’s have also experienced higher traffic.

Costco Stock Predictions

Costco is scheduled to announce earnings on September 23, 2021. Analysts are expecting EPS of $3.54 and revenue of $61.45 billion. Both of these numbers are higher than the previous quarter where analysts were expecting EPS of $2.28 and revenue of $43.28 billion.

Costco has beaten its last four revenue predictions as well as three out of four of its EPS predictions. However, since investors have set a higher bar for Costco, it may be more difficult for it to reach it. It’s very possible that Costco reports an increase in revenue but still falls short of investors’ expectations, which could result in a lower stock price.

In 2020, Costco posted total revenue of $166.7 billion and a net income of $4 billion. This completed five years in a row of growing revenues with an average yearly growth rate of 7.57%. Costco also has a dividend yield of close to 1% and razor-thin profit margins of 2.4%.

Costco’s stock was up about 30% in 2020 and is up 200% over the past five years.

Is Costco Stock a Buy?

When making a Costco stock forecast, there are a few things to watch out for.

Mainly, record inflation numbers recently could hurt Costco’s profitability in the short term. Since Costco is known for low prices, it will likely do its best to avoid raising prices even as inflation pushed its costs higher. A similar situation happened with Kroger recently. Higher costs with the same prices would mean less profit for Costco, who already operates on razor-thin margins.

If you’re looking for stocks that can profit on inflation, check out these agriculture stocks. They can pass along increasing costs to customers over time.

On the bright side, Costco was able to use the pandemic to thrive in both the short term and (potentially) the long term. Costco added more memberships during the pandemic, which should result in more loyal shoppers and higher revenues for the years to come. When looking at the long-term Costco stock forecast, the outlook certainly looks rosy. This is especially true since Costco dominates the wholesale retail industry as it faces little competition from Sam’s Club and BJ’s.

The increase in Costco’s membership is also important because Costco is due to raise the price for its membership fee. On average, Costco increases its membership fee by about 10% every 5-6 years. Its last increase was a few years ago, so this fee should be coming in the next 18 months or so. Due to the immense size of this program, even a 10% price increase would boost revenue from memberships by at least $660 million.

Its membership fee is a significant contributor to its gross margin, so this extra revenue could have a big impact on profitability as well as Costco’s stock price. Of course, this is assuming that the membership price increase doesn’t also lead to a drop in total memberships.

As usual, assigning a Costco stock price prediction in the short term is always difficult. This is especially true because there are plenty of other factors that could hurt the market overall. Market-wide moves could hurt Costco stock.

For example, there are rumors that the Federal Reserve will raise interest rates. This increases concerns over inflation, as well as a stock market that has run 90% since its March 2020 low. These are all things to keep in mind when determining whether or not to buy Costco stock in the short term. With that said, Costco stock is certainly positioned well for continued success in the years to come.

Investing Beyond Costco Stock

I hope that you’ve found this Costco stock forecast to be valuable in helping you determine a Costco stock prediction! As usual, all investment decisions should be based on your own due diligence and risk tolerance.

If you’re looking for even better investing opportunities, sign up for Wealthy Retirement. It’s a free e-letter that’s packed with tips and tricks. You’ll hear directly from bestselling author Marc Lichtenfeld. He’s an income expert who literally wrote the book on getting rich with dividends.

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Potential COVID-19 Treatment Found in Llama Antibodies

The need to uncover effective COVID-19 treatments remains imperative, as case counts remain steady eighteen months into the pandemic. Recent findings point to unique antibodies produced by llamas—nanobodies—as a promising treatment. The small, stable,…

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A significant milestone in the COVID-19 pandemic was crossed this week. The number of deaths in the United States due to COVID-19—more than 675,000—has surpassed the number of deaths that occurred during the 1918 flu pandemic. In addition, there are still roughly 150,000 new cases every day. Eighteen months into the pandemic, the need for effective treatments against COVID-19 remains as great as ever.

One possible treatment, neutralizing single domain antibodies (nanobodies), has significant potential. The unique antibody produced by llamas is small, stable, and could possibly be administered as a nasal spray—an important characteristic as the antibody treatments currently in use require administration by infusion in the hospital. Now, new research shows that nanobodies can effectively target the SARS-CoV-2 virus.

The team from the Rosalind Franklin Institute found that short chains of the molecules, which can be produced in large quantities, showed “potent therapeutic efficacy in the Syrian hamster model of COVID-19 and separately, effective prophylaxis.”

This work is published in Nature Communications in the paper, “A potent SARS-CoV-2 neutralizing nanobody shows therapeutic efficacy in the Syrian golden hamster model of COVID-19.

The nanobodies, which bind tightly to the SARS-CoV-2 virus, neutralizing it in cell culture, could provide a cheaper and easier to use alternative to human antibodies taken from patients who have recovered from COVID-19.

“Nanobodies have a number of advantages over human antibodies,” said Ray Owens, PhD, head of protein production at the Rosalind Franklin Institute. “They are cheaper to produce and can be delivered directly to the airways through a nebulizer or nasal spray, so can be self-administered at home rather than needing an injection. This could have benefits in terms of ease of use by patients but it also gets the treatment directly to the site of infection in the respiratory tract.”

Credit: Rosalind Franklin Institute

The research team was able to generate the nanobodies by injecting a portion of the SARS-CoV-2 spike protein into a llama called Fifi, who is part of the antibody production facility at the University of Reading. They were able to purify four nanobodies capable of binding to SARS-CoV-2. Four nanobodies (C5, H3, C1, F2) engineered as homotrimers had pmolar affinity for the receptor-binding domain (RBD) of the SARS-CoV-2 spike protein. Crystal structures showed that C5 and H3 overlap the ACE2 epitope, while C1 and F2 bind to a different epitope.

Regarding their effectiveness against variants, the C1, H3, and C5 nanobodies all neutralized the Victoria strain, and the highly transmissible Alpha (B.1.1.7 first identified in Kent, U.K.) strain. In addition, C1 neutralizes the Beta (B.1.35, first identified in South Africa).

When one of the nanobody chains was administered to hamsters infected with SARS-CoV-2, the animals showed a marked reduction in disease, losing far less weight after seven days than those who remained untreated. Hamsters that received the nanobody treatment also had a lower viral load in their lungs and airways after seven days than untreated animals.

“Because we can see every atom of the nanobody bound to the spike, we understand what makes these agents so special,” said James Naismith, PhD, director of the Rosalind Franklin Institute. If successful and approved, nanobodies could provide an important treatment around the world as they are easier to produce than human antibodies and don’t need to be stored in cold storage facilities, added Naismith.

“Having medications that can treat the virus,” noted Naismith, “is still going to be very important, particularly as not all of the world is being vaccinated at the same speed and there remains a risk of new variants capable of bypassing vaccine immunity emerging.”

The researchers also hope the nanobody technology they have developed could form a so-called “platform technology” that can be rapidly adapted to fight other diseases.

The post Potential COVID-19 Treatment Found in Llama Antibodies appeared first on GEN - Genetic Engineering and Biotechnology News.

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Addressing the HIV epidemic in Eastern Europe and Central Asia

Working in partnership will be key, says Alex Kalomparis, vice president, public affairs, international at Gilead Sciences. 2021
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Working in partnership will be key, says Alex Kalomparis, vice president, public affairs, international at Gilead Sciences.

2021 marks 40 years since the first cases of HIV were reported. In that time, over 79 million people have been diagnosed with HIV, with more than 36 million dying from AIDS-related illnesses, more than any other infectious disease.

While there has been incredible progress in the HIV response, nearly 38 million people are living with HIV, with more than a million new cases every year, jeopardising the goal to end AIDS as a public health threat by 2030.

HIV places enormous burdens on the communities it affects most, straining health systems and government budgets. In the era of the global COVID-19 pandemic, where health systems are already stretched to breaking, it is tempting to cut costs in other areas, including HIV. If commitment to the HIV response wanes, the progress we have made is at risk, leading to increases in new infections in regions that can least afford to tackle them.

“An epidemic somewhere is an epidemic everywhere”

Throughout the COVID-19 pandemic, we have seen the temptation to focus on one’s own backyard, isolate oneself from the rest of the world, and believe one is safe and protected. We know now that this protection is an illusion. Regardless of the protections we erect in our own countries, allowing public health crises to persist in other parts of the world threatens our own progress and safety.

The message is clear: an epidemic somewhere is an epidemic everywhere. To find our way out of a pandemic, we must broaden our ideas of how to respond, and address the problems and inequities that allow diseases to thrive in other parts of the world. To be effective, our response must be global.

The same is true for HIV. HIV has persisted for 40 years, and is still here because root problems continue to drive the epidemic: stigma and discrimination, poverty, lack of access to services and treatments, lack of access to education, and the marginalisation of the people and communities most at risk of HIV. These are not issues that can be addressed by any one government, group, or company. They can be addressed only in partnership with one another, and by engaging those key marginalised communities in our effort to end the HIV epidemic.

Whilst the global community has the tools it needs to meaningfully address new HIV infections, HIV is on the rise in Eastern Europe and Central Asia (EECA). Unlike other regions in the world, rates of HIV in EECA have increased, with infections up by 72 per cent, and AIDS-related deaths up by 24 per cent since 2010.

Working with the Elton John AIDS Foundation

However, across EECA, a range of community partners are making significant contributions in the fight against HIV, such as the first wave of the RADIAN ‘Unmet Need’ fund and Model City grantees, previously announced in 2020. In the first nine months of the programme, these partners have already reached more than 12,000 people from vulnerable communities directly with services, initiating life-saving care in over 2,000 people living with HIV.

RADIAN, a ground-breaking partnership between Gilead Sciences and the Elton John AIDS Foundation, works with local experts to target new HIV infections and deaths from AIDS-related illnesses in EECA in the communities most vulnerable to HIV.

Focusing on the groups most affected by HIV in EECA (eg men who have sex with men, transgender people, sex workers, and people who use drugs), RADIAN engages with groups led by these communities and are sensitive to the difficulties unique to the region.

“We all have one common goal: ending HIV”

Anne Aslett, CEO of the Elton John AIDS Foundation, is clear that for the partnership to reach its goals, it’s crucial to listen to and amplify the voices of people for whom HIV is a tangible, daily reality.

“They understand better than anyone the challenges associated with the virus, and what works to stop it. No matter where we are in the world, we must partner with them, and follow their leadership. We are proud of our RADIAN partnership with Gilead, to champion the vital work of communities to bring an end to the AIDS epidemic in Eastern Europe and Central Asia.”

Companies like Gilead Sciences provide industry leading expertise, while Governments bring an understanding of health systems and funding, developing an infrastructure that enables access.

However, these efforts need community leadership because they know best how to ensure people can access those systems to get tested, and adhere to medication. They understand the fears and sensitivities, the strengths and stigma within those communities, the nuances that make the difference in linking their members to the care they need. No two regions of the world experience the ‘same’ HIV epidemic. People living with HIV are critical to the success of any HIV response.

This autumn, RADIAN will launch a campaign telling the inspirational stories of ordinary, yet remarkable, community members who are taking action to turn the tide of the HIV epidemic in EECA.

We all have one common goal: ending HIV. It is crucial that we all understand the role we can play to achieve this. Our access to global networks of public health expertise, government funding, and innovative HIV treatments are meaningless unless they are used in service of people living with, and at risk of, HIV. They are the core of any successful response, regardless of country or region. Working in partnership with them is the key to ending HIV. By respecting them as leaders and giving them the seat at the head of the table, we make our work more effective and responsive to local needs, bringing us closer to the end of the HIV epidemic globally.

About the author 

Alex Kalomparis is vice president, public affairs, international at Gilead Sciences. He joined the company in January 2017 and is responsible for all communications and patient advocacy activities across Africa, Asia, Australia, Canada, Europe, Latin America and the Middle East. Prior to that Alex held senior communication roles with a number of consumer and pharmaceutical companies, including Unilever, Rolls Royce, Novartis, Roche, AstraZeneca and GlaxoSmithKline.

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