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The EY Biotechnology Industry Report 2014 identifies Gilead Sciences, Amgen, Celgene and Biogen Idec as the four biggest biotech companies by market cap in 2013. Here’s an overview of what the four of them do.
They were also the biggest investors in R&D for the year, and EY states that together Biogen, Celgene and Gilead were the biggest drivers of growth. In short, these companies are the commercial leaders of the biotech industry, driving its growth and shaping its future. Here’s an overview of what the four of them do.
Gilead Sciences
Market cap: $153.82 billion
Gilead Sciences is a research-based biopharmaceutical company based out of Foster City, California. It works to develop and commercialize therapeutics for patients suffering from advanced, life-threatening diseases. In particular, Gilead focuses on HIV/AIDS, liver disease and respiratory and cardiovascular diseases.
The company recently made headlines over the cost of its hepatitis C cure, Sovaldi, which was released to the market in late 2013 with a price of $84,000 for 12 weeks of treatment. Despite backlash from insurers and hospitals over the drug’s hefty price tag, sales of the drug doubled this past quarter, reaching $4.55 billion.
Amgen
Market cap: $120.34 billion
Amgen is an independent biotech company that develops and manufactures human therapeutics and novel medicines for grievous illnesses. As Bloomberg Business recently reported, its Q1 2015 profit came in at $5.03 billion, topping analyst expectations of $4.89 billion. Amgen’s high earnings were driven by increased drug sales (including Enbrel, Prolia and Epogen), coupled with a company-wide restructuring.
Biogen Idec
Market cap: $90.69 billion
Biogen develops, manufactures and markets therapies that focus on neurology, oncology and immunology. Its products address diseases as diverse as multiple sclerosis, non-Hodgkin’s lymphoma, rheumatoid arthritis and psoriasis.
The company’s share price recently spiked on the news that its Alzheimer’s drug, BIIB037, was so successful in an early stage trial that it will move directly to Phase 3 trials (with between 2,700 and 2,800 patients tested). Biogen Idec plants to invest $2.5 billion in creating a manufacturing plant and running trials for the drug, all before knowing whether or not the drug is actually effective. CEO George Scangos is willing to take that risk largely due to his confidence in BIIB037.
Celgene
Market cap: $90.43 billion
Celgene discovers, develops and commercializes therapies that treat inflammatory-related diseases and cancer. According to Bloomberg Business, the company has seven approved drugs on the market. However, it relies mainly on one cancer medication.
In the interest of expanding and diversifying, Celgene has been investing heavily in small biotech startups. As compared to the industry average of $70 million, Celgene has made an average of $222 million in payments to partners in the past year. This initiative is being driven by Celgene’s head of dealmaking, George Golumbeski, who believes that the company’s willingness to establish partnerships will pay off. Investors seem to agree given that Celgene’s share price has increased 58 percent since 2014.
Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.
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