The Biotech Sector Continues
From the immense activity in biotech, it’s obvious that healthcare is tilting in this
direction to bolster the industry. At the same time, analysts of all types are cautiously
optimistic about what’s happening here.
Perhaps the best headline is that 70% of the companies on this list saw an increase in
revenue over 2015, while 30% declined.
Despite the fact that the IPO market didn’t perform well, biotech still was ahead of
other sectors of the industry. It enjoyed three quarters of the healthcare deals, signi-
fying how hot this territory is. Nevertheless, on the Nasdaq Biotech Index it still dropped by 21%.
There are encouraging signs in 1Q 2017, though. Biotech stocks have regained half of that loss, and we
are looking to see further growth. Similarly, IPOs are showing some positive signs for this year, given
the announcements of AnaptysBio, Jounce Therapeutics and ObsEva SA. On the downside, however, the
Visterra and Braeburn deals didn’t come through.
For 2016 as a whole, revenues for the top 50, at $264B, increased only at 4%. This compared weakly with
the 2015 increase of 18%. And most of that went to the top ten companies. Combined, with at least $10B
for each, their numbers comprise three quarters of the total for the top fifty.
For a complex sector that has to spend more in development and take longer to get to market than
traditional therapies, biotech is showing continuing energy. Although many of its products don’t make it
from lab to shelf, those that do typically pay off in a big way. We look forward to seeing where the potential of this sector leads us in the next few years.
And always, please keep the feedback coming. It all goes to making the magazine better for all of us.
Cari Kraft, Publisher
Click to download to your mobile device of choice
CLICK HERE TO
GET TOP 50 BIOTECH