The Financial Implications Of Computational Biology: An Emerging Gold Rush

Rohith Jeganathan
The Catalyst
Published in
4 min readOct 26, 2023

An Introduction to Computational Biology

“With advanced quantum computational systems in place, we could have computed the COVID-19 vaccine within hours, if not minutes, of its discovery. Perhaps, any kind of life-threatening virus, since it is nothing more than a piece of code, will be completely preventable with the advances in quantum computing and computational biology. The question is, then, if we could eventually shield ourselves against the common viral micro-threat, what would a macro-threat of unknown nature mean for the human-machine civilization? We might soon need to decode another message from the transcendent realm edging us ever closer to the Cybernetic Singularity of some sort.”

― Alex M. Vikoulov, NOOGENESIS: Computational Biology

Cells, cells, cells. The living world is made out of cells, which in turn are made out of organelles, which are made of molecules, which are made out of atoms. This is, and has been biology. Biology of life and the universe. Now, there is an emerging technology, and field, called computational biology. This new and emerging field allows scientists to understand various biological processes, through the collection and utilization of vast biological and genetic matter. This allows researchers to draw conclusions from the vast biological matter. This field has improved Genomic Sequencing and The Human Genome Project, allowed protein structure predictions, and systems biology, and has improved drug discovery. This field is sure to grow into a titan. Startups are rapidly being created, and VC capital is flowing. In this article, we will discuss the implications of computational biology and the potential growth for investors.

Leading the Charge: Biotech Innovators and Investment Prospects

In an article by Bloomberg, “Computational Biology Market to Reach USD 34.87 Billion by 2030; Rising Clinical Studies in Pharmacogenomics and Pharmacokinetics to Propel Growth.” This shows the validity of the existing market and the potential for widespread growth across the Computational Biology field. This new and exciting field has proved exceedingly valuable for scientists all across the world. Lots of new finds and solutions have only been made possible through the advent of this technology. Through this, one can assume that computational biology will surely remain a mainstay in the science field. This shows an incredible investment opportunity. The field is already well established and has proven its usefulness. Yet a detractor is the limit of monetization currently available. Yet, computational biology as a field is sure to grow, and through economies of scale and making processes more efficient and commercialized, profit margins are sure to grow, which will certainly push up the market cap of this industry. This shows the undervalued nature of this emerging technology and industry. There isn’t too much public awareness laced on this field, due to the behind-the-scenes nature this field currently exudes. Yet as this field gets even more and more important and groundbreaking, yes will be upon it, raising its appeal. VC money is starting to flow to startups and companies in this field. Investment banks and hedge funds are opening wings and teams specialized to accurately and effectively deal in these fields.

Many Biotech companies such as Resilience, Sana Biotechnology, and Moderna Therapeutics have seen lots of investments. These companies do groundbreaking research and are slated to have big quarters coming up.

I hope you enjoyed this deep dive into the financial implications of Computational Biology. I’m Rohith Jeganathan, a Quantitative Engineering Team Manager and a writer for Alumnus Capital. I’m interested in finance and technology. You can keep in touch with me on my LinkedIn.

References:

Academic.Oup.Com, academic.oup.com/bioinformatics/article/15/9/717/229484. Accessed 26 Oct. 2023.

“Biology.” Biology | Special Issue : Computational Biology, www.mdpi.com/journal/biology/special_issues/computation. Accessed 26 Oct. 2023.

Bourne, Philip E. “Is ‘Bioinformatics’ Dead?” PLoS Biology, U.S. National Library of Medicine, 18 Mar. 2021, www.ncbi.nlm.nih.gov/pmc/articles/PMC7984605/.

“Computational Biology Global Market Report 2022.” Yahoo! Finance, Yahoo!, finance.yahoo.com/news/computational-biology-global-market-report-162000933.html?guccounter=1. Accessed 26 Oct. 2023.

Computational Biology Market Size & Share Analysis — Industry Research Report — Growth Trends, www.mordorintelligence.com/industry-reports/computational-biology-market. Accessed 26 Oct. 2023.

Computational Biology Market Size & Share Report 2030, www.grandviewresearch.com/industry-analysis/computational-biology-market. Accessed 26 Oct. 2023.

“Computational Biology Market Statistics, Trends: Forecast- 2030.” Allied Market Research, www.alliedmarketresearch.com/computational-biology-market-A11921. Accessed 26 Oct. 2023.

“Computational Biology Market to Reach USD 34.87 Billion by 2030; Rising Clinical Studies in Pharmacogenomics And.” Bloomberg.Com, Bloomberg, 22 Mar. 2022, www.bloomberg.com/press-releases/2022-03-22/computational-biology-market-to-reach-usd-34-87-billion-by-2030-rising-clinical-studies-in-pharmacogenomics-and.

“Computational Biology Quotes (1 Quote).” Goodreads, Goodreads, www.goodreads.com/quotes/tag/computational-biology. Accessed 26 Oct. 2023.

Conformal Piezoelectric Energy Harvesting and Storage from … — PNAS, www.pnas.org/doi/full/10.1073/pnas.1317233111. Accessed 26 Oct. 2023.

Nature News, Nature Publishing Group, www.nature.com/subjects/computational-biology-and-bioinformatics/srep. Accessed 26 Oct. 2023.

ValueArtifex. “Computational Biology: A New Investment Frontier.” Seeking Alpha, 17 June 2020, seekingalpha.com/article/4354202-computational-biology-new-investment-frontier.

Disclaimer: All views issued in this article are of my own. This is not financial advice, but my opinion.

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