Like the whole healthcare industry, the biotech sector is undergoing enormous change, much of it for the good. On the Nasdaq, biotech has recently had the biggest weight of any industry, ahead of Internet and computer hardware companies. The 269 listed biotech companies have shown a more than 500% return over the past four years. But can that trend continue?
The growth in this sector has also been driven largely by blockbuster IPOs, mergers and multibilliondollar market valuations for biotech companies that don’t yet have a single product for sale. Investors are divided on what might happen next.
Bloomberg Business says “There are reasons to believe in the boom. Biotech’s current stock rise has been matched by an impressive pace of scientific achievements. New treatments in cancer, hepatitis C and genetic disorders are advancing in the pipeline or are approved and on the way to commercial success.” It points to startups getting moving with lower investment, greater access to leading-edge equipment, and an increasing list of FDA approvals. Here’s a snapshot of where we the Top 50 (based on revenue) are today. Companies are ranked by their 2014 revenue as furnished by their annual reports and publicly available sources Edgar and Morningstar stock information websites (figures of non-U.S. companies were converted to U.S. dollars from various currencies). Whether you’re a bear or bull on biotech, it’s an exciting sector of the industry.
Companies are ranked by their 2014 revenue as furnished by their annual reports and publicly available sources such as Edgar and Morningstar stock information websites. Figures of non-U.S. companies were converted to U.S. dollars from various currencies.
NOTES: REMOVED FROM 2014
Questcor, acquired by Mallinckrodt Cubist, acquired by Merck NPS Pharmaceuticals, acquired by Shire Dendreon, financial restructuring