The biotech sector is forecasted to grow at a compound annual rate of 8.7% until 2030. This growth is driven by continuous advancements in medical technology and an increasing global demand for innovative healthcare solutions.

In regions like China and other developing nations, government initiatives are promoting the growth of biotech. These initiatives aim to simplify the process of bringing new products to market, from streamlining regulatory pathways to standardizing clinical studies, thereby accelerating product approvals.

Investing in biotech requires thorough research to understand the potential and effectiveness of products. Companies that develop drugs addressing significant health issues or that offer cost-effective technological solutions tend to have a higher success rate. This focus on community needs and healthcare affordability is crucial for the success of biotech firms.

However, the biotech sector's complexity poses a challenge for investors without a medical or scientific background. It can be difficult to evaluate the potential of biotech products and their likelihood of success in the market, adding layers of uncertainty to investment decisions.

Retail investors often depend on financial analysts for insights into promising biotech shares. While a 'buy' rating from an investment house can increase stock prices, these gains are not always sustained, introducing an element of volatility and uncertainty.

The journey to market for biotech products, especially those targeting rare diseases, is fraught with challenges. Each step, from clinical trials to regulatory approvals, carries the risk of failure. If a drug fails to get approval or a company reports unfavourable trial results, share prices can plummet swiftly, highlighting the high-risk nature of biotech investments.