Biotech stocks have had a good five years. Over this period, the MVIS™ US Listed Biotech 25 Index has risen 193.71%. But the period has had its ups and downs.

MVIS US Listed Biotech 25 Index (TR USD) Growth of $10k

Source: MV Index Solutions (15.03.2017)

So, what does the future hold for the biotech industry? If nothing else, the election last November of Donald Trump as U.S. American president has put some wind in its sails. The sources of this have included positive expectations on three different fronts:

  1. Decreased regulation
  2. Expedited approvals by the U.S. Food and Drug Administration (FDA)
  3. Innovation in new classes of immunotherapies

Much excitement in the industry stems from the possible use of immunotherapies to fight cancer. According to a recent article in the Wall Street Journal (quoting figures from the Cancer Research Institute), more than 1,100 different immunotherapy drugs are currently the subject of research.

For this alone, it looks as though biotechnology will, therefore, be an interesting industry to follow for some time yet.

About the Author:

Michael Cohick joined VanEck in 2011. He serves as a product manager responsible for VanEck Vectors non-taxable fixed income and industry equity exchange-traded funds. Prior to joining VanEck, he worked at ING Investment Management. Mr. Cohick earned an MS from Columbia University and a BA from Goucher College.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.