5 biggest biotechs on earth

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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.

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Page 1: 5 Biggest Biotechs on Earth

5 Biggest Biotechs on Earth

Page 2: 5 Biggest Biotechs on Earth

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

Page 3: 5 Biggest Biotechs on Earth

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

Page 4: 5 Biggest Biotechs on Earth

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

Page 5: 5 Biggest Biotechs on Earth

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

Page 6: 5 Biggest Biotechs on Earth

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$

Page 7: 5 Biggest Biotechs on Earth

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

Page 8: 5 Biggest Biotechs on Earth

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

Page 9: 5 Biggest Biotechs on Earth

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

Page 10: 5 Biggest Biotechs on Earth

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

Page 11: 5 Biggest Biotechs on Earth

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

Page 12: 5 Biggest Biotechs on Earth

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

Page 13: 5 Biggest Biotechs on Earth

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

Page 14: 5 Biggest Biotechs on Earth

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

Page 15: 5 Biggest Biotechs on Earth

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