5 Biggest Biotechs on Earth

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A look at the biggest biotechs on the planet -- and how they got to where they are.

Published in: Economy & Finance, Business

5 Biggest Biotechs on Earth

  1. 1. 5 Biggest Biotechs on Earth
  2. 2. Who are the Biggest Biotechs on the Planet? • There are around 90 biotech companies that trade on the major U.S. stock exchanges • Many biotechs are small and struggling, but some have become big and wealthy over the years • We looked at every biotech in terms of market cap to determine the biggest of allSource: Wikimedia Commons
  3. 3. No. 5 – Regeneron Pharmaceuticals (Nasdaq:REGN) • Market cap around $23.6 billion • Revenue over the last 12 months totaled $1.74 billion • Gross profit of $1.29 billion over the last 12 months • Earnings of $848 million over the last 12 months
  4. 4. How Regeneron Became Big • Founded in 1988 and went public in 1991 • Collaborated with larger companies including Amgen, Procter & Gamble, and Sanofi during its early years • Launched wet age-related macular degeneration drug Eylea in 2011 Source: Y-Charts
  5. 5. No. 4 – Biogen IDEC (Nasdaq:BIIB) • Market cap around $50 billion • Revenue over the last 12 months totaled $5.94 billion • Gross profit of $4.97 billion over the last 12 months • Earnings of $1.61 billion over the last 12 months
  6. 6. How Biogen Idec Became Big • Biogen founded in 1978 while IDEC was founded in 1985 • Biogen achieved great success with multiple sclerosis drugs Avonex and Tysabri; IDEC profited from cancer drug Rituxan • The two firms merged in 2003 to become a global biotech powerhouse, going on to profit from newer drugs Tecfidera and Fampyra Biogen IDEC
  7. 7. No. 3 – Celgene (Nasdaq:CELG) • Market cap around $57 billion • Revenue totaled $5.93 billion over the last 12 months • Gross profit of $5.21 billion over the last 12 months • Earnings of $1.55 billion over the last 12 months
  8. 8. How Celgene Became Big • Founded in 1986 and went public in the following year • Began marketing Thalomid in 1998 for erythema nodosum leprosum, or ENL, indication • Huge success stemmed from launch of Revlimid in 2005 for treating myelodysplastic syndromes, or MDS – other indications, including multiple myeloma followed in later years Source: Y-Charts
  9. 9. No. 2 – Amgen (Nasdaq:AMGN) • Market cap around $80 billion • Revenue totaled $17.7 billion over the last 12 months • Gross profit of $14.35 billion over the last 12 months • Earnings of $4.59 billion over the last 12 months
  10. 10. How Amgen Became Big • Founded in 1980 and went public in 1983 • Generated billions of dollars in revenue through the years from anemia drugs Aranesp and Epogen, arthritis drug Enbrel, neutropenia drugs Neupogen and Neulasta, and others • Completed multiple acquisitions in its history – and still on the hunt Source: Wikimedia Commons
  11. 11. No. 1 – Gilead Sciences (Nasdaq:GILD) • Market cap around $89 billion • Revenue totaled $10.31 billion over the last 12 months • Gross profit of $7.23 billion over the last 12 months • Earnings of $2.93 billion over the last 12 months
  12. 12. How Gilead Sciences Became Big • Founded in 1987 and went public in 1992 • Launched AIDS drug Vistide in 1996, followed by multiple other successful HIV/AIDS drugs over the years • Expanded into hepatitis B indication with Hepsera in 2002 and Viread in 2008 Source: Wikimedia Commons
  13. 13. Big Biotechs, Big Gains Only Amgen underperformed the S&P 500 over the last decade. All of the other biggest biotechs beat the index by a factor of at least 7X . Source: YCharts
  14. 14. Bigger Isn’t Always Better Don’t expect the huge gains from the past decade to continue at the same torrid pace. Remember that the biggest gains often come from the companies that haven’t grown big yet. The biggest biotechs on Earth are likely to be beaten in terms of share growth by much smaller biotechs in the years ahead. Source: Wikimedia Commons
  15. 15. While it's no secret that biotech stocks have been soaring recently, the best investment strategy is to pick great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich” not only shares stocks that could help you build long-term wealth, but also winning strategies that every investor should know. Click here to grab your free copy today.

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