As reported in Fierce Biotech, Burrill & Co did an analysis comparing biotechs to pharma over the past 3 years. Biotechs emerged as the winner on several key measures. Companies in the Big Pharma camp included J&J, Pfizer, Novartis, Merck, Roche, Sanofi, Novo Nordisk, GSK, Bayer, Lilly, AZ, and BMS. Under the biotech tent, we had Amgen, Biogen, Gilead, Celgene, Alexion, Regeneron. Shire, BioMarin, Elan and Onyx.
Key findings as reported by Fierce for the past 3 years, included:
- Value of biotech group up 57% to 17.4% by pharma
- Net income for biotech's were up 23.8% compared to 1.1% for pharma (OUCH!)
- Revenue was up 40.6% in biotech versus 17% for big pharma. Actual revenue was $48.6 B total vs $526.8 total. So pharma is still more than 10x larger in aggregate
- R&D spending went up 38.8% for biotech ($10.3 B) as compared to 11.7% for pharma ($76.3 B). Here pharma is only 7x in size. Is that a good thing given their returns on R&D of late?
Biotech's are clearly offering better results for their investors at the moment but are they just smaller and at an earlier stage of hitting the "pharma wall". Don't know. We'll find out.
Posted by Bruce Lehr Apr 17th 2013