Disclaimer - Nothing in this post is financial advise
Amazon keeps pushing into new market sector
Amazon, the number one in E-commerce and cloud services, starts developing cancer vaccines in collaboration with the Fred Hutchinson Cancer Research Center and recently launched an FDA-approved clinical trial.
Should the trial succeed, Amazon could be set up for a new revenue stream worth billions of dollars. This could boost the companies already incredible year-over-year revenue growth, which is currently at a 5 year average of 29.03%.
Health care sector keeps growing
The company's interest in the health care sector is no surprise, as the potential is enormous. Amazon already started acquiring companies in the health care sector years ago. So was PillPack acquired in 2018 and Health Navigator in 2019.
Statistics estimate global revenues could reach $3,200 billion by 2025.
For Phase 1 of the trial, 20 participants should be recruited by Amazon, according to information from the clinicaltrials.gov database. The goal of Amazon and the Fred Hutchinson Cancer Research Center is to develop personalized vaccines against breast and skin cancer. The trial is expected to be completed by November 2023.
Amazon is contributing "scientific and machine learning expertise to the trial to explore the development of personalized treatment for specific cancers," according to its release.
Personalized vaccines are not about a preventative measure, as seen in traditional vaccines. The vaccines are meant to work individually in the event of a disease and are made from a person's tumor tissue or blood characteristics. This procedure is made possible by mRNA technology which has been used to fight Corona by BioNTech(Ticker: BNTX) and Moderna(Ticker: MRNA).
Bottom Line
Amazon remains seeking new revenue streams for its business and the growing healthcare sector in the USA seems to be the perfect opportunity for the company. Shares of Amazon(Ticker: AMZN) are down 41.31% from their 52-week-highs and could offer a buying opportunity at current prices.
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