Human lifespan could soon pass 100 years thanks to medical tech, says BofA
Human lifespan could soon pass 100 years thanks to
medical tech, says BofA
·
One of the biggest investment opportunities over
the next decade will be in companies working to delay human death, a market
expected to be worth at least $600 billion by 2025, according to Bank of
America analysts.
·
The analysts say companies such as Illumina and
Alphabet are on the cusp of "bringing unprecedented increases to the
quality and length of human lifespans."
·
The Bank of America team highlights five key
sub-themes, as well as several stocks with exposure to the trend.
Thomas Franck May 9, 2019
One of the biggest investment opportunities over the next
decade will be in companies working to delay human death, a market expected to
be worth at least $600 billion by 2025, according to one of Wall Street's major
investment banks.
Bank of America Merrill Lynch analysts Felix Tran and
Haim Israel believe that genome sequencers such as Illumina, high-tech players
such as Alphabet and biotech companies such as Novartis are on the cusp of
"bringing unprecedented increases to the quality and length of human
lifespans."
Innovation in genome science, big data and
"ammortality," which includes wearable technology and products in the
so-called wellness space, could soon prolong healthy human life well beyond 100
years, BofA told clients Wednesday.
"Medical knowledge will double every 73 days by 2020
vs. every 3.5 (years) in 2010, and genomic sequencing costs have fallen 99.999%
since 2003," Israel and Tran wrote. "This has enabled a new frontier
in precision medicine to further extend life expectancy, heralding a 'techmanity'
(technology meets humanity) revolution."
Extending human life to new bounds — long the domain of
science fiction novels — could increasingly be a compelling way to make money
in the public markets. With a market size already at $110 billion, the Bank of
America team highlighted five key sub-themes — genomics, big data/AI health,
future food, "ammortality" and "moonshot medicine" — as
well as several stocks that offer exposure to the trend.
Genomics
Genomics, or the study of the human genome, is expected
to be a $41 billion industry by 2025 and will provide the "next generation
of gene editing technology offering potentially revolutionary advances in
prevention and disease treatments," Bank of America said.
Companies such as $46 billion genome sequencer Illumina,
$27 billion lab instrument manufacturer Agilent and $89 billion life science
equipment maker Danaher all have exposure to the space.
Illumina in particular plays "an important role in
helping advance disease research, drug development, and the creation of
molecular tests," Tran and Israel wrote.
Big data/AI health
The growth of artificial intelligence combined with an
ever-growing body of health-care data should help researchers analyze
pathology, or the study of the causes and effects of diseases, in the years to
come. Improvements in the technology have the potential to bring down
health-related costs and enable precision medicine, the BofA analysts said.
Names in this space, which is expected to grow to $36
billion by 2025, include Google parent Alphabet, Amazon (including its joint
venture with Berkshire Hathaway and J.P. Morgan Chase) and Apple.
Future food
Future of food companies, which are expected to ensure
"healthier eating and sustainable humanity on the planet," include
Dow DuPont and WW International. These companies, according to BofA, should
leverage agricultural gene editing as well as healthier lifestyles and
consumption.
'Ammortality'
The "ammortality" theme, expected to be worth
$504 billion by 2025, "will help to improve health spans & [lifespans]
to the betterment of human vitality, enabling the world population to live
freer of disease rather than forever."
Companies that represent "ammortality" plays as
described by BofA include health-care technology firms such as Intuitive
Surgical and Zimmer, which worked with Apple Watch to start a clinical study
for 10,000 knee and hip replacement patients.
'Moonshot medicine'
"Moonshot medicine" companies — or those that
offer revolutionary solutions for health care — include the aforementioned
Illumina and genomics companies as well as therapy makers such as Sangamo,
Vertex Pharma and Neurocrine.
These companies are working on cures or treatments for
some of humanity's toughest diseases, ranging from cystic fibrosis to
Parkinson's and Alzheimer's.
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