Biotechnology--the use of living organisms or other biological systems in the manufacture of drugs or other products--has emerged as a critical sector for healthcare investors over the past several years. In 2012 alone, the biotech sector grew over 40% according to S&P Capital IQ. Biotech is expected to remain a hot market going forward, with considerable room for more growth. Last week, biotech firm Intrexon Corp. (XON-NYSE) made its IPO debut at $16/share and immediately soared 38%. Nearly double its IPO price, Intrexon opened at $29.99 this morning, August 13th.
In the clip below, Crystal Research Associates CEO and cofounder, Jeffrey Kraws, offers some advice for biotech investors looking to capitalize on performance in the sector following Intrexon's successful IPO. Tips include looking for companies with differentiated technologies that have the potential to reduce medical costs, looking for companies that can offer an advantage over an existing treatment in a therapeutic area, and looking for companies that could be acquisition targets for large-cap pharma companies seeking to bolster their pipelines.
Runtime: 2 minutes