What are the biggest names in biotechnology? We count down the five top biotech stocks based on market cap and share what they’re up to.
What are the biggest names in biotechnology? The following five companies have market capitalizations worth billions of dollars and operate in countries all around the globe.
Plus, they have pipelines stuffed with potentially disruptive products — and enough revenue to recover should some of those products fail.
This means that investors can experience the excitement of biotech investing while minimizing risk. Although returns are never guaranteed, company size can and does insulate investors from volatility.
So if you’re feeling skittish, take heart: you’re not without options — the biotech stocks below may be good bets. Our list was compiled using Investing.com’s stock screener and companies are listed in order of market cap size. All numbers were current at the time of writing.
1. Amgen (NASDAQ:AMGN)
Market capitalization: US$115 billion
Amgen — which stands for Applied Molecular Genetics — was established in 1980 and has extended its global reach to roughly 100 countries.
Since its inception, the company has made a name for itself tackling life-threatening illnesses. It targets six key therapeutic areas: oncology/hematology, cardiovascular disease, inflammation, bone health, nephrology and neuroscience. According to its pipeline overview, Amgen has over 30 products in different stages of clinical trials.
Its products Amjevita/Amgetvita and Mvasi have received approval from the US Food and Drug Administration (FDA) and the European Commission (EC), while Kananjini has received EC approval. Amgen also has biosimilar products in early clinical stage development.
2. AbbVie (NYSE:ABBV)
Market capitalization: US$110.82 billion
This biopharmaceutical company is one of the most well-known organizations in the industry. AbbVie’s operations are spread throughout 75 countries and its products are sold in over 170 nations. The Chicago-based company aims to treat a range of diseases in five key areas.
The company’s treatment areas include: virology, which includes hepatitis C and HIV; neurodegenerative diseases, such as schizophrenia, Alzheimer’s disease, Parkinson’s disease and multiple sclerosis; immunology, including spondyloarthropathies, hidradenitis suppurativa and uveitis; oncology, which is the treatment of cancer; and general medicine, which includes women’s health.
In addition, in June 2019 AbbVie revealed its intended acquisition of Allergan (NYSE:AGN) in a staggering US$63 billion blockbuster deal. The acquisition will see Allergan’s product line — which includes Botox, a non-surgical cosmetic treatment — added to help diversify AbbVie’s portfolio. The proposed acquisition is one of the biggest mergers announced in the biopharma industry in 2019.
3. AstraZeneca (NYSE:AZN)
Market capitalization: US$110.16 billion
AstraZeneca focuses on treating conditions in many main areas: cardiovascular and metabolic diseases, oncology, respiratory diseases, inflammation and autoimmune diseases, as well as infection and neuroscience.
The company has 157 projects in its pipeline together with nine new molecular operations in the late stages of clinical development. While AstraZeneca has a wide range of focus areas, its primary focal point is non-small cell lung cancer. In addition, the company has research dedicated to small cell lung cancer.
In 2018, product sales for AstraZeneca touched US$21 billion, which is a slight increase from its sales of US$20.2 billion in 2017.
4. Gilead Sciences (NASDAQ:GILD)
Market capitalization: US$87.74 billion
With a mission to advance patient care for patients with life-threatening diseases, Gilead Sciences’ pipeline includes a range of treatment options for HIV/AIDS, liver diseases, hematology and oncology, as well as inflammation and respiratory. The company has a number of products in different stages of clinical development that are targeting these diseases.
5. Bristol-Myers Squibb (NYSE:BMY)
Market capitalization: US$76.16 billion
This global biopharmaceutical company was founded in 1858 and develops therapies for serious diseases such as diabetes and rheumatoid arthritis as well as psychiatric disorders.
The most recent figures show the company invested almost US$5 billion into research and development in 2016, which was used towards discovering and developing new therapies. To date, the company has developed over 30 products.
Similar to AbbVie, Bristol-Myers Squibb has a blockbuster merger worth US$74 billion under its belt with Celgene (NASDAQ:CELG). The deal was initially intended to close in Q3 2019, but it has now been pushed to the end of Q4 2019 or early 2020.
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This is an updated version of an article originally published by the Investing News Network in 2016.
Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.