What is biotech and why do you want to own shares of biotech stocks? Corinne Cardina, bureau chief of healthcare and cannabis at Fool.com, and Motley Fool contributor Taylor Carmichael define the biotech universe and discuss why you want to invest here. This segment was recorded live on March 5.

Corinne Cardina: Taylor, could you share one thing that investors should know about biotechs and what are their defining characteristics and we'll try to keep it brief so we can start talking about some names.

Taylor Carmichael: Well, to me biotech, what it really is, is technology, it's bringing technology to healthcare and so you think of a company like Moderna (NASDAQ:MRNA) or BioNTech (NASDAQ:BNTX) that had this mRNA platform. It's a new form of technology so it enables them to discover drugs quicker so that's the quintessential biotech kind of transition, that you have a new platform, a new form of technology. We've had drug discovery for a long time, but it's getting much more specific and quicker, faster, better. It's improving and we've had biotechs for, I don't know, since Amgen (NASDAQ:AMGN), I guess, 30 or 40 years. But the real kind of big event in terms of the biotech industry, I think, is sequencing the DNA, the human DNA and that has opened the door to a lot more knowledge and a lot more investing in terms of knowing more, giving drug researchers a map of the human body and being able to say, OK, this is what we want to target. This is what we want to do and we're getting more and more, you are seeing more and more of the kind of the interconnection of technology and tech stocks and healthcare and so you're seeing, you see that with Illumina (NASDAQ:ILMN), you see with Microsoft running the computers for Adaptive Biotechnologies (NASDAQ:ADPT). I mean, you just see a lot of high-tech stuff using computers, using artificial intelligence, supplying drug candidates. So that's all a part of biotech now.

More in category

One of the largest Las Vegas casinos ever built will open on June 24
April 19, 2021MarketWatch
One of the largest Las Vegas casinos ever built will open on June 24
Tobacco stocks drop on report Biden administration is planning to cut nicotine levels in cigarettes
April 19, 2021CNBC
Tobacco stocks drop on report Biden administration is planning to cut nicotine levels in cigarettes
The Village Voice Returns, and It’s ‘Very Village Voice-y’
April 19, 2021The NY Times
The Village Voice Returns, and It’s ‘Very Village Voice-y’
IBM surprises with revenue gain, and stock rallies
April 19, 2021MarketWatch
IBM surprises with revenue gain, and stock rallies
Facebook announces Clubhouse competitor among new audio tools
April 19, 2021MarketWatch
Facebook announces Clubhouse competitor among new audio tools
Lawsuits against Robinhood in the GameStop saga are getting their day in court — but there’s one big snag
April 18, 2021MarketWatch
Lawsuits against Robinhood in the GameStop saga are getting their day in court — but there’s one big snag
Young, healthy adults will be deliberately reinfected with COVID-19 to boost vaccine development
April 19, 2021MarketWatch
Young, healthy adults will be deliberately reinfected with COVID-19 to boost vaccine development
What we know about COVID vaccine side effects in women
April 18, 2021MarketWatch
What we know about COVID vaccine side effects in women
Big investors ask banks to get serious on climate change
April 19, 2021MarketWatch
Big investors ask banks to get serious on climate change
Dow snaps 3-day win streak and Nasdaq skids 1% lower
April 19, 2021MarketWatch
Dow snaps 3-day win streak and Nasdaq skids 1% lower
Forget bitcoin’s weekend slump. Watch these 2 key levels for what happens next, strategist says.
April 19, 2021MarketWatch
Forget bitcoin’s weekend slump. Watch these 2 key levels for what happens next, strategist says.
The pandemic may have permanently altered Apple’s path
April 16, 2021MarketWatch
The pandemic may have permanently altered Apple’s path
These stocks are ‘cash cows’ that give you a better way to play the value sector
April 16, 2021MarketWatch
These stocks are ‘cash cows’ that give you a better way to play the value sector
Opinion: Tech’s COVID-19 boom won’t last forever, but it’s not going to end just yet
April 16, 2021MarketWatch
Opinion: Tech’s COVID-19 boom won’t last forever, but it’s not going to end just yet
Bitcoin’s nosedive: What happened and what’s ahead?
April 19, 2021FOX Business
Bitcoin’s nosedive: What happened and what’s ahead?
Amazon chart produces 'death cross' pattern despite rising short- and long-term trend trackers
April 19, 2021MarketWatch
Amazon chart produces 'death cross' pattern despite rising short- and long-term trend trackers
IBM reports earnings on Monday — here’s what to expect
April 16, 2021MarketWatch
IBM reports earnings on Monday — here’s what to expect
MLB seeing record-high streaming viewership despite All-Star Game backlash
April 19, 2021CNBC
MLB seeing record-high streaming viewership despite All-Star Game backlash
Why Aphria, OrganiGram Holdings, and Aurora Cannabis Rose Today
April 19, 2021The Motley Fool
Why Aphria, OrganiGram Holdings, and Aurora Cannabis Rose Today
J&J vaccine manufacturing halted at US plant that had contamination issue
April 19, 2021FOX Business
J&J vaccine manufacturing halted at US plant that had contamination issue
Tesla's stock drops after reports of fatal crash of vehicle with apparently no driver
April 19, 2021MarketWatch
Tesla's stock drops after reports of fatal crash of vehicle with apparently no driver