Sustainability challenge and related SDGs
#MedicalR&D ranges from fundamental research to the applicability of new or improved drugs, vaccines, therapies or devices. The objective is to gain a better understanding of the human body and develop appropriate medical solutions (prevention, diagnosis, treatment) to treat diseases and injuries.
However, conducting medical research and development is lengthy and expensive. In the pharmaceutical industry, R&D is strictly regulated and a new product has to go through several phases before it can be launched. Therefore, it is often carried out in high-income countries. According to the WHO, there are 56 times more health researchers in these countries than in low-income countries.
Moreover, for many diseases, we are still at the dawn of a solution. Take for example the development of health products for tropical diseases: only 0.5% of health products in development are aimed at curing these neglected but often deadly diseases. Thus, for malaria – one of the oldest and deadliest diseases in the world – there is still not enough research funding to eradicate the disease.
Another example is the actual lack of understanding in neurological diseases such as dementia, which will become more important in the coming decades with the ageing society.
Targeted research and development on the deadliest diseases and health conditions will increase life expectancy and improve the health and well-being of many people.
- 3.Good Health & Well-Being
- 9.Industry, Innovation and Infrastructure
Possible solutions and their contribution to achieving the SDGs
#MedicalR&D is important to make healthcare effective, affordable and accessible for all (#Healthcare4All). #MedicalR&D includes companies that provide, for example, research services for drugs and medical devices, laboratory equipment for pharmaceutical research, medical software solutions or clinical trial services.
These products and services will enable further progress in #MedicalR&D and contribute to achieving the goals of SDG 3 “Good Health and Well-Being”.
Primarily related SDG Targets: 3.b, 3.c, 9.5
Investment Rationale and Growth Potential
Staying healthy and avoiding critical health conditions as long as possible will always be a major preoccupation for people.
In recent decades, #MedicalR&D has not only improved the chances of survival and recovery for many patients but has also contributed to a significantly higher quality of life. The healthcare sector is growing: both R&D spending and the introduction of new drugs have increased over the last two decades. This offers interesting investment opportunities for investors eager to foster medical innovation.