Biotech continued its ups and downs in 2016. While the overall IPO market was weak, biotech led the healthcare sector, with over 75% of the healthcare deals (26 of 34). Valuations, however, did not fare as well. 2016 was a tough year for the biotech market sector, with a decline of 21% in the Nasdaq Biotech Index. As of today, one quarter into the year, stocks have currently regained half of that market value, but we still have a way to go.
The 2017 IPO market is off to a good start with AnaptysBio, Jounce Therapeutics and ObsEva SA, but there are some questions as to where it will go, since the next expected IPOs – Visterra and Braeburn—were pulled.
Total 2016 revenues for the top 50 increased at a rate of 4%, for a total of $264B, down from the 18% increase in 2015. Revenue is still dominated by the top 10 companies, which make up over 75% of the total. Each of them contributed at least $10B. Growth is still the mainstay for biotech, with 70% of the companies on the list experiencing an increase in revenue from 2015 and 30% of the companies experiencing a revenue decline.
Here’s a snapshot of where the Top 50 (based on revenue) were at year’s end. Companies are ranked by their 2016 revenue as furnished by their annual reports, earnings press releases and publicly available sources such as Edgar and Morningstar stock information websites. Figures of non-U.S. companies who did not report earnings in U.S. dollars were converted to U.S. dollars based XE currency data as of 12/31/16. Companies with fiscal year end dates in 2016 that are prior to 12/31/16 have their revenue listed as 2016 revenue. Additional company-specific notes for the compilation include: Salix was purchased by Allergan; Allergan was purchased by Acta-vis; Medivation and Anacor were purchased by Pfizer; Aegerion was purchased by Novelion; and Baxalta was purchased by Shire.
Companies are ranked by their 2016 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.