What are cell and gene therapies?

Cell and gene therapies are advanced treatments that modify a patient's genetic material or cells to treat disease. Cell therapy involves introducing new cells into a patient's body, while gene therapy works by correcting or replacing faulty genes. These revolutionary approaches can potentially cure previously untreatable conditions, but they require extremely specialized manufacturing and handling—which is where the companies in this stock group come in.

What does "picks and shovels" investing mean?

"Picks and shovels" investing refers to buying stocks in companies that supply essential tools and services to an industry, rather than investing directly in the end products. The term comes from the California Gold Rush, where the most reliable profits often went to those selling mining equipment (picks and shovels) rather than the miners themselves. In biotech, this means investing in companies that provide critical infrastructure and services to therapy developers, potentially reducing risk while still gaining exposure to industry growth.

What is cryogenic logistics and why is it important?

Cryogenic logistics refers to the specialized transportation and storage of materials at extremely low temperatures, typically below -150°C (-238°F). This is crucial for cell and gene therapies because living cells and genetic materials must be preserved precisely to maintain their effectiveness. Companies specializing in cryogenic logistics provide the freezers, shipping containers, monitoring systems, and handling expertise to ensure these delicate therapies remain viable from manufacturing through administration to patients.

What are viral vectors?

Viral vectors are modified viruses used as delivery vehicles in gene therapy. Scientists remove the virus's disease-causing genes and replace them with therapeutic genes or genetic instructions. When introduced to a patient, these vectors use the virus's natural ability to enter cells and deliver the therapeutic genetic material. Manufacturing these vectors is highly complex, requiring specialized facilities and expertise—making companies involved in viral vector production valuable parts of the gene therapy supply chain.

How does this investment approach differ from traditional biotech investing?

Traditional biotech investing often involves betting on companies developing specific treatments, which can be risky since their success depends on clinical trial outcomes—potentially resulting in dramatic wins or total losses. The logistics and infrastructure companies in this group offer a different approach: they provide essential services needed by all therapy developers, regardless of which specific treatments succeed. While still exposed to the sector's overall growth or contraction, they typically have more diversified revenue streams and less binary risk than companies focused on single therapies.

15 handpicked stocks

Cell & Gene Therapy Logistics

This carefully curated collection features companies providing the essential infrastructure that makes advanced cell and gene therapies possible. Selected by expert analysts, these stocks represent the "picks and shovels" of the biotech revolution—giving you exposure to regenerative medicine's growth without the direct risks of clinical trials.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17