Medical Aesthetics and Biotechnology Stock Investment Guide: Industry Leaders and Growth Opportunities

The medical and aesthetic fields are becoming focal points for global investment. As the aging population accelerates, new therapies continuously emerge, and telemedicine flourishes, this industry demonstrates enormous potential. Compared to traditional electronics industries, which are more susceptible to economic cycles, the healthcare biotech industry has anti-cyclical characteristics—people need medical services and beauty care regardless of economic conditions, making related stocks a stable growth investment choice.

Investment Value of Medical Aesthetic and Healthcare Biotech Stocks

The uniqueness of medical aesthetic biotech stocks lies in their combination of high gross margins typical of consumer goods and the stable demand for medical products. Unlike traditional pharmaceutical companies relying on patented drugs, aesthetic-related enterprises usually encompass diverse product lines such as skincare, medical devices, and beauty instruments, forming a more resilient revenue structure.

The US biopharmaceutical market is enormous, projected to reach $445 billion by 2027, with a CAGR( of 8.5%. The core characteristic of this market is that investors mainly focus on the company’s R&D potential rather than current profits. Once biotech companies receive FDA approval, their stock prices often experience significant increases. Taiwan’s Pharmare is a typical example—its stock doubled in 2022 due to orphan drug certification, even though EPS remained negative, as investors still pursued its future drug revenue prospects.

Risks and volatility cannot be ignored. Clinical trial results, competitor movements, policy and regulatory changes, and other factors can cause sharp stock price fluctuations. Investors need sufficient patience and risk tolerance. Additionally, the healthcare industry is highly regulated by governments and insurance systems; national healthcare policies and drug price regulations directly impact corporate profits.

Core Indicators for Evaluating Medical Aesthetic and Healthcare Stocks

Traditional financial metrics have limited reference value for biotech companies, as many are in R&D stages and lack stable cash flow. Key evaluation criteria include:

Blockbuster drug potential: The industry refers to a single drug with annual sales exceeding $1 billion as a “blockbuster.” Successful drug companies typically reinvest 50-60% of revenue into new drug R&D. Large investment institutions may raise target prices accordingly, expecting continuous innovation.

Importance of FDA approval: The FDA has the strictest drug monitoring standards globally. Once a drug is approved by the FDA, approval in other countries is usually swift. This makes FDA approval a critical milestone for investment decisions.

PSR valuation method: For companies in R&D stages, institutional investors often use PSR) (price-to-sales ratio) instead of traditional P/E ratios to assess value.

Competitive Advantages of the US Healthcare Biotech Industry

The US healthcare market leads due to its unique industry ecosystem. The US healthcare system allows for higher drug and service pricing, with insurance covering costs, providing ample room for R&D investment. In contrast, Taiwan’s national health insurance system regulates drug prices, discouraging many pharmaceutical companies from introducing the latest drugs.

The US healthcare sector employs nearly one million professionals across R&D, manufacturing, sales, and other segments, attracting top global talent. The capital market actively invests in this sector, creating a positive cycle that fosters a unique biotech ecosystem. As a result, the US is recognized by global investors as the best environment for healthcare industry development.

US Healthcare Biotech Stock Investment Strategies

The US healthcare market is divided into four main sectors: Pharmaceuticals, Biotechnology, Medical Devices, and Healthcare Services. Here are representative stocks from each sector:

( Leading Pharmaceutical Companies

Eli Lilly)LLY.US( is a globally prominent pharmaceutical giant. In 2024, its market cap reached $842.05 billion, making it the largest pharmaceutical company by market value worldwide. Its main market remains North America), accounting for about 60%###. The weight-loss drug sector still has growth potential in the coming years and is a must-watch for healthcare stocks.

Pfizer(PFE.US) maintains steady growth through products like COVID oral medications. It is often an entry point for long-term investors during US stock market corrections.

Johnson & Johnson(JNJ.US) has a stable stock price, generous dividends, and relatively moderate volatility, making it suitable for regular investment or long-term stock holding, and is considered a stable player among biotech stocks. Using margin trading to realize profits is also a feasible strategy.

AbbVie(ABBV.US) focuses on immunology, oncology, and virology drugs. Its flagship product Humira effectively treats rheumatoid arthritis. Despite patent expiration risks, the company holds hundreds of patents forming a protective barrier and has licensing agreements with giants like Pfizer and Amgen. Several new drugs are under development, so investors can consider positioning during downturns.

Merck(MRK.US)’s cancer drug Keytruda is one of the best-selling drugs globally, with steady stock price growth and high dividends, making it a good choice during market corrections.

UnitedHealth(UNH.US) benefits from the aging US population and increasing healthcare demand, with continuous growth in revenue and profit, a clear long-term upward trend in stock price, and attractive dividends.

Selection of Taiwanese Medical Aesthetic and Healthcare Stocks

Suntar Chemical & Pharmaceutical(1720) is a diversified pharmaceutical company involved in Western medicine, health supplements, medical devices, and cosmetics. Its revenue and net profit have shown gradual growth in recent years, with stable assets and healthy debt ratios. Due to stable dividends, it is popular among dividend investors.

KangKang Biotech(1783) produces and sells biotech products, medical devices, and health supplements, combining consumer and medical product features. Consumer products include facial cleansers, skincare, and aesthetic products; medical products include bone repair materials, injectables, and ophthalmic drugs. Profits turned positive in 2017, with stable fundamentals in recent years, healthy asset-liability ratios, and worth monitoring.

Investment Advice for Medical Aesthetic and Healthcare Biotech Stocks

Due to their high potential, medical aesthetic and biotech stocks attract attention. However, Taiwan’s overall capital market still focuses on electronics stocks, and even high-quality biotech companies rarely achieve the multi-tenfold gains seen in the US. As pandemic policies adjust, Taiwanese investors’ interest in biotech stocks may increase, but currently, the US remains the best market for healthcare.

The US has cultivated many excellent biopharmaceutical companies with larger scale, stronger innovation, and greater competitiveness, making it easier to identify suitable investment targets. In contrast, the Asian pharmaceutical market is still developing, and the stock performance of quality enterprises is not as strong as US healthcare stocks. This reflects both differences in capital markets and the disparity in medical technology and investor professionalism.

Investing in medical aesthetic and biotech stocks requires industry expertise. Interested investors are advised to keep abreast of developments in the US healthcare industry. Globally, US healthcare aesthetic and biotech stocks remain the top investment choices.