What Is a Biotech Company and What Do They Do?

The word “biotechnology” sounds ultra-futuristic, but the truth is that it is one of the earliest known fields of science. From domesticating crops to discovering the process of fermentation, some of humankind’s formative discoveries can be credited to biotechnology. Essentially, it's the process of using living organisms, organic materials, and cellular and biomolecular processes to develop products to meet humanity’s needs.

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Modern Biotech Companies

Today, many biotech companies work in the field of medicine, but biotech has the potential to improve our lives in many other areas as well, such as:

• Agriculture
• Animal husbandry
• Environmental science
• Forensic investigations

Some examples of biotech companies include:

• Amgen
• Gilead Sciences Inc
• Regeneron Pharmaceuticals
• Moderna

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How Biotech Companies Are Funded

Biotechnology is a complex field involving extensive research, repetitive testing, and expensive lab equipment. To keep the lights on, they need regular sources of funding. Biotech companies draw on funding from a range of sources, including:

• Research grants
• Angel investors
• Venture capital firms
• Business partnerships
• Initial public offerings

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Should You Invest in Biotech Companies?

The biotechnology market has been growing globally and is slated to continue doing so for the future. Biotech is coming into its own alongside the pharmaceutical sector, making it an interesting choice for investors.