Biotech stocks can produce enormous returns on capital in the blink of an eye. The primary reason is that the biotechnology space has finally started to capitalize on the amazing insights proffered by the human genome project, leading to the development of a vast array of new therapies for a variety of hard-to-treat conditions. As an important aside, biotech valuations have has also benefited greatly from the aging global population and expanding access to healthcare in numerous countries over the past decade.
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