As equities continue to show uncertainty, some suggest that an opportunity exists to look toward the future and new product development. Time horizon is a bit more of an issue, but if the right product opportunity presents itself, extreme profit may well be in the cards. The real issue, however, is where to look for these opportunities. New products can and do present themselves everywhere, but there is really little telling what may be a winner or loser after the development process is complete. There are, however, areas where the likelihood of success is greater than others. As may be suspected, technology and healthcare are two such areas. In this respect, consider lead times and approvals involved in healthcare biotechnology as this may well be the more predictable avenue (relatively speaking.)
Perhaps one of the better aspects of choosing biotechnology as a long-term investment vehicle is the approvals process. This process allows one to have a look at what is in the pipeline for longer term profit potential simply because the product needs to be assessed for safety and effectiveness. In thinking about the process, however, one should not necessarily be considering just one product. A longer-term strategy in this sense should be thought of in terms of an entirely new class of biotechnology product.
Put in a slightly differing way, what is being described is a group of products that is not generally based on more typical molecular structures but molecular structures that have not been found before now. From an overall standpoint this may seem like a statement that is not likely. It is, in recent years, a reality and presents a longer-term opportunity for those interested in doing their homework to learn about the organic molecules that make the process possible.
With this in mind, what is being presented as a longer 5-10 yr. investment opportunity is a new microorganism called an entophyte. It is new simply because it was more recently discovered in rainforest plants but is, in fact, an ancient organism that aides plants in cellular health and other as of yet discovered ways. Currently, Elli Lilly is working with the discoverer of the organism to find compounds involved with fighting various maladies (with malaria being one of the first real leads discovered on the snake vine of Australia.) This, however, is not an end. Differing plants contain differing entophytes that tend or could work on a variety of health issues. Generally, it is just a question of finding which compound and plant will work on which issue, but the possibilities are almost limitless for the research company that cracks the so-called code.
Although becoming a junior venture capitalist looking for a company working at the outer reaches of technology may seem like a long shot in investment terms, it can be worth the time and effort. Spending time researching new products during a period of equities uncertainty is a use of time that may be more profitable than trying to figure out where the market is going and pulling hairs out when there is a 500+ point swing in the wrong direction.
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