Author Bio
Zhiyuan Sun is a statistician with a knack for analyzing clinical trials and company financials. Investing in healthcare and cannabis is his passion, as well as looking out for new, actionable stock investment ideas in these sectors. Fool since April 2020. Lives in Québec City, Canada.
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Biotech stocks are popular with investors because of their drugs' life-saving benefits and strong intellectual property moats. Current patent laws allow drug developers market exclusivity for two decades from the date of filing. This gives them a virtual market monopoly on their products. A portion of their sales is then reinvested into research and development, leading to a sustainable and wildly profitable business model.