Investing in Plant-Made Pharmaceuticals
The rising cost of health care and the high prices of new biotechnology drugs lead many experts to predict that new policies and new technologies to trim costs will soon be forthcoming. New policies may include price controls or economic incentives to reduce costs. New technologies may improve manufacturing efficiency resulting in reduced biotech medicine costs in the future.
The production of therapeutic proteins and vaccines in living green plants is one area of research that holds the promise of reducing costs and improving worldwide access to the benefits of biotech. Scientific research using this technology has shown repeated successes. This technology is not yet in mainstream pharmceutical industry use, but it may be a very good time for an investor to seriously consider taking a stake in its bright future.
Three companies seem to be among the brightest of the rising stars in this new green revolution. Sembiosys Genetics Inc of Calgary, Alberta (Toronto: SBS) is producing insulin in plants, and through its subsidiary, Botaneco, is collaborating with MannKind Corporation (Nasdaq:MNKD) on its commercial development.
In Newark, Delaware, iBioPharma Inc (OTCBB: IBPM) is collaborating with the Fraunhofer U.S.A. Center for Molecular Biotechnology, with funding by the Bill & Melinda Gates Foundation, to develop plant-made vaccines for influenza and other infectious diseases. IBioPharma recently announced new funding from the U.S. Defense Advanced Research Projects Agency for further development of green plant technology to meet various biodefense objectives.
A third company, well financed but still private, worth keeping an eye on. Biolex Therapeutics is developing human interferon made in a small floating plant called duck weed, and has already advanced its candidate product into phase 2 human clinical trials.
We all know that fruits and vegetables are essential for good health. Plant-made pharmaceutical companies may not only be good for our health, but also our investment portfolios.
Disclaimer: the writer does not currently own any position in the stocks discussed in this article. The contents of this article are intended for information purposes only and are not a recommendation to buy any particular security.
Filed under: Financial Advice