10 Most Successful Innovative Companies in The World in 2016

Which are the most successful innovative companies in the world in 2016?

Bringing something new to the table is something that seems to be difficult these days, considering that many things have already been done, have already been invented, and have already been brought to the spotlight. Thus, figuring out which are the 10 most successful innovative companies in the world in 2016 is not an easy feat.

Awhile back, Forbes published research from the Innovator’s DNA, which is the result of an eight-year collaborative study during which nearly a hundred inventors of revolutionary products and services were interviewed, alongside founders and CEOs. The goal was to find those companies that innovate the most and bring something new to the world.

The companies are ranked by something called their “innovation premium”, which is the difference between their market caps and the net present value of cash flows from their existing businesses. Thus, the list is as much about companies that could be innovative in the future as opposed to ones which were innovative in the past (though both would naturally apply to many companies, short of a drastic change in managerial direction at some point in the past). To be on this list, firms needed to have at least seven years of public financial data and $10 billion in market cap. While you may not find companies that you think would be obvious members of this list, there are still names that are part of industries that are known to invest in innovation.

Without further ado, here are the 10 most successful innovative companies in the world in 2016.

10. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)

Innovation Premium – 64.7%

Market Cap – $15.2 billion

If the name didn’t give it away, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a pharmaceutical company which delves into the fields of biotechnology and life sciences. It has a market cap of over $15 billion and was founded nearly 20 years ago, in 1997, with its headquarters in California.

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is known for developing and selling medications for various diseases and medical conditions that are life-threatening. For instance, Naglazyme was created to fight against MPS VI (Mucopolysaccharidosis VI), which is a disorder that threatens lysosomal storage through a deficiency of an enzyme that is needed for the breakdown of certain carbs.

BioMarin is one of the most popular biotechs among the group of successful hedge funds tracked by Insider Monkey, several of which are focused exclusively on the healthcare sector. 42 funds in our system were long BioMarin on June 30, owning 11.90% of its shares. The largest position among them (4.81 million shares) was held by healthcare investing gurus Julian Baker and Felix Baker of Baker Bros. Advisors.

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9. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Innovation Premium – 67.9%

Market Cap – $21.4 billion

Founded in 1989, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is another pharmaceutical company that operates in the biotechnology and life sciences fields. The company seeks to discover, develop and sell treatments for people who suffer from serious conditions.

One of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s major programs targets cystic fibrosis. Other areas where it focuses its work are viral infections, cancer, autoimmune disorders, and more. In total it has over a dozen ongoing research programs, all aiming to figure out how to help people who are suffering from life-threatening diseases or serious disorders. While the its drugs may be quite pricey, its research is invaluable, especially for those suffering from cystic fibrosis.

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8. Unilever N.V. (ADR) (NYSE:UN)

Innovation Premium – 67.93%

Market Cap – $24.1 billion

Founded back in the 1930’s, this is one of the oldest companies on our list of most successful innovative companies in the world in 2016. Unilever is a company that creates a wide range of products, from nutrition, to hygiene, to personal care. Unilever N.V. (ADR) (NYSE:UN) owns a wealth of brands that you’re probably using in your current daily routine, including Dove, Axe, Clear, Rexona, and more.

Unilever N.V. (ADR) (NYSE:UN) not only invests big dollars into making its products, it also tries to reduce its environmental impact and water use. Unilever is also known for its investments in looking for ways to improve nutrition, especially since its products are consumed by some 1 billon people every day, according to the company.

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7. Monster Beverage Corporation (NASDAQ:MNST)

Innovation Premium – 68.8%

Market Cap – $25 billion

Based in California, Monster Beverage Corporation (NASDAQ:MNST), the next one in our list of most successful innovative companies in the world in 2016 has been around since 1990. For the most part, the corporation conducts its business through a series of subsidiaries. It is known for its involvement in developing, marketing, selling and distributing a wide range of beverages, including lemonades, juices, water, iced teas and so on. However, it is best know for its energy drinks. Burn, Monster Energy, Full Throttle, and Mother are just some of the brands in its portfolio.

Basically, Monster Beverage Corporation (NASDAQ:MNST) produces a drink for just about everyone, regardless of age, including juices for toddlers. Most of its products are the result of deep research and extensive testing, so they’re quite innovative, certainly more so than most people would likely think. This fiscal year, for instance, they are expected to launch four new drinks and/or beverage lines.

Monster Beverage shares were held by 33 of the hedge funds in our system on June 30, up from 31 on March 31. Stephen Mandel’s Lone Pine Capital was a big fan of the stock in the second quarter, hiking its position in it by 272% to 4.14 million shares.

6. Under Armour Inc (NYSE:UA)

Innovation Premium – 68.9%

Market Cap – $16.2 billion

We are continuing our list of most successful innovative companies in the world in 2016 with Under Armour Inc (NYSE:UA), that was founded in 1996 and it has its base in Baltimore. The company is known for its work in creating performance apparel, accessories and footwear for all age groups and genders, and has quickly grown to become one of the leading sports apparel brands in the world.

“Under Armour was founded on the following core values: Innovation, Inspiration, Reliability and Integrity,” the company states on its website. To this end, they seek to do business with suppliers and subcontractors that follow those same principles. While Under Armour had to trim its earnings growth guidance during its latest earnings call, it’s because the company continues to aggressively pursue growth.

Under Armour Inc (NYSE:UA) is also starting to make a name for itself among the hedge funds in our database, as 31 of them were long the stock at the end of June, up from 21 at the end of March.

5. Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)

Innovation Premium – 70%

Market Cap – $35.8 billion

Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) is a well-known name in the world of biopharmaceutical companies and it proudly takes the 5th place on this list of 10 most successful innovative companies in the world in 2016. Same as the other companies from the industry that are found on this list, Alexion invests in therapies for people suffering from rare disorders.

The company is known for having developed the first and only inhibitor used to treat patients suffering from paroxysmal nocturnal hemoglobinuria, a blood disease, as well as atypical hemolytic uremic syndrome, a disease affecting kidney function, both of which are life threatening.

Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) has also developed innovative enzyme replacement therapies designed for patients suffering from extremely rare disorders such as hypophosphatasia and lysosomal acid lipase deficiency. The fact that it focuses on ultra-rare diseases makes its research that much more important, since these groups of patients are often left by the wayside in favor of patients that are being affected by diseases which many others also suffer from.

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4. Incyte Corporation (NASDAQ:INCY)

Innovation Premium – 70.8%

Market Cap – $14.4 billion

Founded in 1991, Incyte Corporation (NASDAQ:INCY) which ranks 4th in our list of most successful innovative companies in the world in 2016 is another company that works in the biopharmaceutical industry. For the most part, Incyte is involved in the discovery, development, formulation, manufacturing and commercialization of proprietary medications. This means that it creates treatments for a multitude of purposes, although its main focus is oncology.

Incyte Corporation (NASDAQ:INCY) has developed or is working to develop medications for bladder cancer, hematological malignancies, tumors, melanoma, and more, including rheumatologic arthritis, all of which are in different stages of development. Some have just been discovered, while others have obtained clinical proof of concept or are already being marketed.

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3. Regeneron Pharmaceuticals Inc (NASDAQ:REGN)

Innovation Premium – 72.9%

Market Cap – $42.4 billion

Founded in 1988, Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is a biopharmaceutical company working on discovering, inventing, developing, manufacturing and selling treatments for a series of medical conditions that vary in gravity. Among its catalog are treatments that cater to patients suffering from eye diseases, hypercholesterolemia, rheumatoid arthritis, asthma, atopic dermatitis, and more.

When it comes to research, Regeneron Pharmaceuticals Inc (NASDAQ:REGN) which ranks third on our list of most successful innovative companies in the world in 2016 focuses on several areas, including cardiovascular and metabolism, inflammation and immunology, infectious diseases, such as Ebola and MERS, as well as rare diseases, such as Cryopyrin-Associated Periodic Syndromes (CAPS). Regeneron also runs plenty of programs seeking to discover how various genes work, as well as developing technology created specifically for this purpose.

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2. salesforce.com, inc. (NYSE:CRM)

Innovation Premium – 75.5%

Market Cap – $51.9 billion

The first tech company on our list of most successful innovative companies in the world in 2016 is salesforce.com, inc. (NYSE:CRM), which has been around since 1999 and has its headquarters in San Francisco, California, the tech capital of the world. If you’re familiar with the tech world, then you might already be familiar with the cloud computing services offered by Salesforce. The company takes things a step further, offering to build a close relationship with its clients. It also provides a platform specifically-built for customers to build and run apps.

All of its products are easy-to-use and intuitive. They’re ready to be used without many alterations, although customizations can be made easily. The services it offers are divided into multiple categories, such as those specifically built for small businesses, sales, services, marketing, apps and industries. Many companies offer cloud services nowadays as the industry continues to grow by leaps and bounds, but salesforce.com, inc. (NYSE:CRM) was one of the pioneers with its platform. It is one of the fastest-growing top-10 software companies in the world and has been on the list of the most innovative companies in the world for several years now.

60 hedge funds in our database were long salesforce at the end of June, down from 63 at the end of March. Billionaire Ken Fisher’s Fisher Asset Management lowered its stake in salesforce by 19% during the third quarter to 9,592 shares.

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1. Tesla Motors Inc (NASDAQ:TSLA)

Innovative Premium – 82.4%

Market Cap – $33.5 billion

At the top of our list of most successful innovative companies in the world in 2016 we find Tesla Motors Inc (NASDAQ:TSLA), which isn’t really a surprise considering all of the things that Elon Musk has created in the past few years and the driving force (pardon the pun) that Tesla has been in the automotive world.

At its core, Tesla focuses on designing, developing, manufacturing and selling electric vehicles and electric power train components. Its cars are considered to be some of the best out there, not only due to the tech under the hood, but also due to the cool designs they sport. While the cars are rather pricey, there’s a lot of money invested in research, innovation and testing that gets calculated into that final number. The Model S, Model X and Tesla Roadster are some of the names that have already made Tesla one of the biggest names out there when it comes to cars, even though that has yet to translate into big sales numbers, as the company continues to try and ramp up production. The electric vehicle market is also still in its infancy itself.

The latest update to reach Tesla Motors Inc (NASDAQ:TSLA)’s cars is its fully self-driving hardware, yet another major innovation. This is a rather controversial topic, which has raised lots of questions regarding the safety of the technology, but Tesla assures that it is 100% safe. Tesla’s new cars are installed with eight surround cameras providing 360-degree visibility at up to 250 meters of range, twelve ultrasonic sensors, a forward facing radar, and a new onboard computer to calculate all of the data coming in.

Hedge funds are still rather skeptical about Tesla’s long-term ambitions, as just 4% of the company’s shares were held by 36 of the hedge funds that we track as of June 30. Drew Cupps’ Cupps Capital Management slashed its Tesla position by 89% during the third quarter, leaving it with just 664 shares of the company on September 30.

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There are many things that fall under the word “innovative”, but these are, in the end, the 10 most successful innovative companies in the world in 2016.

Disclosure: None