Examining the financial health of the biotech industry

A recent MU study has found that the biotech industry is currently experiencing financial instability, which could negatively affect medical innovations in the coming years.

Pate McCuien: Despite the initial profits that came from investments toward COVID-19 vaccines, a new study shows that the biotech industry has lost its financial footing. Researchers in the study analyzed biotech stock prices to determine the industry’s financial health.

Felipe Bastos Gurgel Silva is an author on the study and a professor in accounting at the University of Missouri. His research suggests that COVID-19 has negatively affected the potential returns for investors, resulting in less investors and lower stock prices. MZ000407-Silva says these issues could result in less medical innovation.

Silva: If financial rewards are not properly aligned or properly priced, there could be an impact on medical innovation, and innovation in biotech is something that makes a difference in a person living or dying, or at least living for more years depending on what disease we’re talking about.

McCuien: Silva’s research suggests future of the biotech industry may be challenging. He says that the biotech industry is growing increasingly more important.

Silva: You have this sector that is likely to make a difference in people’s lives. The relevancy of healthcare will be increasing over time because as people get older, you will need more healthcare solutions to increase your quality of life.

McCuien: For more on this research, visit showme.missouri.edu. I’m Pate McCuien with a Spotlight on Mizzou.

Learn more about the research here

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