MF: Why Biotech Might Rival Big Pharma Soon…

Biotech has long been the little sibling of big pharmaceutical companies. And even the very biggest biotech companies’ annual revenue has totaled much less than that of their pharma rivals. For instance, biotech Amgen’s annual revenue has hovered around $22 billion in recent years. While Merck’s revenue has been closer to $40 billion.

But that may not be the case forever. Biotech companies are bringing more and more products through late-stage clinical trials. Some biotech’s – like Moderna ( MRNA 6.37% ) – have put the idea of biotech on the map with blockbuster products. I’m thinking of Moderna’s coronavirus vaccine. Big pharma’s like Pfizer ( PFE -0.02% ) have partnered with biotech companies to drive growth. I’m thinking of Pfizer’s partnership with BioNTech for their blockbuster coronavirus vaccine. And the following charts show two amazing clues that biotech revenue soon may rival that of big pharma.

The first clue has to do with revenue according to technology. The following chart separates revenue into conventional pharmaceutical technology, biotech, and unclassified sales. We’ll look at pharma and biotech. Back in 2012, pharmaceutical technology represented $443 billion in revenue while biotech only represented $149 billion in revenue. Biotech revenue has more than doubled from that level to $312 billion last year. Pharma revenue has only increased 14% in that period.

1 Like