Investing in biotech innovation: Unlocking long-term returns in an ageing society

Investing,biotech, innovation, returns, ageing society, Alexandra Martinez, Clota Värde, society, challengesAlexandra Martinez, founder & CEO of Clota Värde, discusses unleashing the potential of age-related disease treatments for long-term returns.

As our society grapples with the challenges posed by an ageing population, investors have a unique opportunity to make a significant impact while securing long-term returns.

Groundbreaking strides in technology have enabled us to combat seemingly incurable diseases such as cancer or dementia, which become increasingly ubiquitous as populations become older. Now, genuine therapeutic treatment is within reach. Ensuring the right kind of financial backing for biotech pioneers is imperative if we are to progress research and make treatment accessible to as many patients as possible.

Growing demand

With the global population aged 65 and over projected to double by 2050, the demand for treatments and therapies for age-related diseases is reaching unprecedented levels. Conditions such as Alzheimer's, Parkinson's, and cardiovascular diseases are increasingly prevalent in older people, necessitating innovative solutions to mitigate their impact. Biotech companies that specialise in developing breakthrough therapies and interventions stand to benefit significantly from this growing market demand.

Take Alzheimer’s, for example. More than 55 million people are estimated to have symptoms of dementia globally. The impact of therapeutic treatment and early detection would be immense for individuals, as well as their families and friends. Almost everyone knows someone close to them afflicted by Alzheimer’s and knows the mental and physical stress associated with having to care for and look after a loved one. Having therapeutic and diagnostic treatment readily available could relieve families around the world of the considerable burden associated with Alzheimer’s disease.

It's not just the personal impact, however. Health and social care systems around the world are grappling with the cost and logistical consequences of Alzheimer’s. The annual global cost of dementia is now above US$ 1.3 trillion and is expected to rise to US$ 2.8 trillion by 2030. Caring for patients with the disease is a time-consuming and expensive process and requires around-the-clock supervision and support. Eliminating this cost could free up valuable resources for the global care system, which is struggling to keep up with ageing populations and growing demand.

Groundbreaking innovation

The biotech industry has witnessed remarkable technological advancements in recent years, fueling a revolution in healthcare. Groundbreaking innovations in testing methods, precision medicine, and mRNA-based treatments have already transformed our approach to combating diseases like cancer.

These advancements provide a solid foundation for addressing age-related diseases as we gain a deeper understanding of their underlying mechanisms and develop targeted therapies. Companies like Neuro-Bio, at the forefront of Alzheimer's research, are driving innovation in this space. By investing in these pioneers, we support the development of groundbreaking treatments that have the potential to halt or reverse the devastating effects of age-related diseases.

Yet these innovative approaches need considerable backing if they are to succeed in the mass market. We have seen repeatedly how seemingly expensive treatments can quickly become available widely and cheaply with the right kind of funding. There is, however, a balance to be struck. Ensuring the minds behind the treatment remain in control of the intellectual property is paramount if the integrity of the research is to be guaranteed.

The State of the Nation

According to a report by the U.K. BioIndustry Association and Clarivate, biotech investment in the U.K. had a slow start in 2023, with funds raised in the first quarter dropping by 39% compared to the same period in 2022. The lacklustre start, combined with macroeconomic factors, has led to low investor confidence. However, despite these challenges, notable funding successes can reinvigorate market confidence in the transformative potential of biotech innovators. Efforts to attract investors, both institutional and private, in order to create a favourable investment climate remain crucial for the sector's future growth and success.

For impact investment, it is crucial to approach biotech investment with a holistic perspective, considering not only financial gains but also ethical considerations and positive societal impact. Responsible investing practices that prioritize transparency, patient welfare, and equitable access to treatments should guide our decision-making. By supporting companies that are committed to ethical and sustainable practices, we can foster a brighter future for both investors and patients alike.

Investing in biotech innovation presents a compelling opportunity to address the pressing challenges posed by an ageing population. The growing market demand for age-related disease treatments, fuelled by transformative technological advancements and unwavering government support, creates an investment landscape ripe with potential. As an impact-focused corporate finance boutique, we have the power to help drive positive change while generating long-term returns. By supporting biotech companies focused on combating age-related diseases (such as Neuro-Bio), we contribute to the betterment of society and pave the way for a healthier and more prosperous future.

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