20 Fastest Growing Biotech Companies in the US

Published on February 23, 2024 at 5:43 am by Laiba Immad in Lists, News

In this article, we will be taking a look at the 20 fastest growing biotech companies in the US. If you are not interested in learning about the landscape of biotech companies, head straight to the 5 Fastest Growing Biotech Companies In The US.

The biotechnology sector in the United States is witnessing a surge in innovation and growth, with numerous companies making significant strides in various fields. From groundbreaking medical advancements to cutting-edge agricultural solutions, the fastest-growing biotech companies in the US like Johnson & Johnson and Eli Lilly and Company are at the forefront of scientific progress. These companies are revolutionizing healthcare, agriculture, environmental sustainability, and beyond, driving the boundaries of what is possible in biotechnology.

Driving Medical Progress: Biotechnology and Pharmaceutical Industries

The global biotechnology market has witnessed remarkable growth, reaching a value of USD 1.55 trillion in 2023, with projections indicating a compound annual growth rate (CAGR) of 13.96% from 2024 to 2030. Advancements in technology, applications, and regional developments fuel this expansion. Significant players like Johnson & Johnson Services, Inc., F. Hoffmann-La Roche Ltd, Pfizer, Merck & Co., Abbott, Amgen, and Sanofi drive innovation. Key growth drivers include supportive government initiatives, decreasing sequencing costs, and rising demand for synthetic biology solutions.

The biotechnology industry has shown steady growth in the US, averaging a 1.5% increase annually from 2018 to 2023. North America, particularly the US, is a pivotal region in biotech, contributing significantly to the market’s overall growth. Health applications dominate the market, with segments such as food & agriculture, natural resources & environment, industrial processing, and bioinformatics also playing significant roles. Forecasts predict the market to reach around US$3.44 trillion by 2030, with the US and North America remaining integral to this expansion, driven by government policies, product launches, robust investments, and rising demand for biotech drugs. Looking ahead, the Asia-Pacific region, fueled by a substantial patient base in countries like India and China, is poised to become a dominant force in shaping the future trajectory of the biotechnology market.

The pharmaceutical industry remains at the forefront of driving medical progress by developing innovative therapeutics and biologics. Notably, companies like Eli Lilly and Company have showcased robust financial performance, underscoring their dedication to pioneering advancements in pharmaceuticals and biologics. Such companies exemplify a commitment to pushing the boundaries of medical science to improve patient outcomes and address unmet medical needs.

According to research findings, the average pre-tax cost of developing a new drug or biologic stands at approximately $1.39 billion, with total capitalized costs increasing at an annual rate of 8.5% above general price inflation. This substantial investment reflects the extensive resources required to bring new treatments to market and highlights the financial challenges inherent in pharmaceutical research and development.

The European Federation of Pharmaceutical Industries and Associations (EFPIA) further emphasizes the significant financial burden, citing an estimated cost of $2.5 billion in 2013 dollars for researching and developing a new chemical or biological entity. Economic reports from key industry players like Teva Pharmaceutical Industries also shed light on the sector’s multifaceted involvement in research and operations for generic and innovative medicines.

These financial disclosures underscore pharmaceutical companies’ diverse strategies to address global health challenges and meet the demands of an evolving healthcare landscape. Despite the formidable costs and complexities involved, the innovative pharmaceutical industry remains a critical driver of medical progress and a cornerstone of the global economy.

Transformative Impact of Genetic Engineering in Healthcare

Genetic engineering breakthroughs, particularly in gene-editing technologies, are revolutionizing healthcare by offering new therapeutic categories like cell therapy and gene editing, which can provide near-cures for various illnesses. The genomic medicines industry is expected to be worth $50 billion by 2028, up from just $5 billion in 2022. Genomic sequencing technology has already revolutionized the healthcare industry, providing a comprehensive toolkit of genomic diagnostics and treatments, with the price per genome expected to decrease to $100 by 2025.

The estimated annual spending on gene therapies in the United States is projected to be approximately $20.4 billion under conservative assumptions. Gene therapy can potentially treat and even cure previously intractable diseases, but existing gene therapy prices are high, raising concerns about their affordability. Gene therapy’s estimated annual financial impact on the U.S. market is expected to be significant, with annual spending on approved gene therapies estimated to reach $25.3 billion in 2026. The healthcare industry is now the most excellent data-generating industry in the world, and the industry’s ability to sequence DNA has outpaced its ability to decipher the information it contains.

The genomic revolution is driving innovation in every subsegment of the healthcare sector. It can transform the industry by offering novel blood-based diagnostic tests for cancer and Alzheimer’s, revolutionary preventative medicines, and enhanced wearable technology to help diagnose and monitor illnesses. The estimated annual financial impact of gene therapy in the United States is expected to be approximately $20.4 billion under conservative assumptions.

The cumulative discounted spending on treating patients with approved gene therapy products will reach $241 billion by December 2034. Using simulation methods allows for capturing inherent risks and uncertainty in costs, revenues, and other parameters of this new therapeutic class. Gene therapies offer breakthrough results but come with extraordinary expenses.

20 Fastest Growing Biotech Companies In The US

A biopharmaceutical research laboratory filled with scientists, illuminated by the glow of their equipment.

Our Methodology

For our methodology, we have arranged the fastest-growing biotech companies in the US based on their year on year revenue growth rates for latest fiscal years. We’ve obtained the data of YoY growth rates from Seeking Alpha.

Here is our list of the 20 fastest-growing biotech companies in the US.

20. Merck & Co., Inc. (NYSE:MRK)

Year on Year growth: 1.40%

Merck & Co., Inc. (NYSE:MRK) has strengthened its immunology pipeline through acquisitions like Prometheus Biosciences ($10.8 billion) and Harpoon Therapeutics ($680 million), which enhances its ability to treat immune-mediated diseases like ulcerative colitis and cancers. Merck & Co., Inc. (NYSE:MRK) focus on precision medicine and innovation, exemplified by Keytruda, reflects its commitment to addressing medical needs.

19. Baxter International Inc. (NYSE:BAX)

Year on Year growth: 2.12%

Baxter International Inc. (NYSE:BAX), a prominent medtech company, is undergoing strategic changes to boost operational efficiency and innovation. It’s selling its BioPharma Solutions business for $4.25 billion, focusing on core operations. Baxter is known for sterile contract manufacturing and has invested $100 million in its German facility. The divestiture may impact earnings by $0.10 per share in Q4 2023. Baxter International Inc. (NYSE:BAX) is exploring options for BPS and refining its operating model for enhanced patient care and innovation.

18. Sanofi (NASDAQ:SNY)

Year on Year growth: 2.32%

Sanofi (NASDAQ:SNY), one of the fastest growing biotech companies in the US, is expanding its biotechnology presence through acquisitions like Translate Bio. With a focus on immunology, vaccines, and oncology, it’s also addressing neglected tropical diseases. In 2023, it reported $50.26 billion in revenue and employs around 91,573 people. Sanofi (NASDAQ:SNY) emphasizes diversity, equity, and inclusion alongside social impact initiatives. While not the fastest-growing biotech company, its commitment to innovation solidifies its position in the pharmaceutical and biotech sectors.

17. AstraZeneca PLC (NASDAQ:AZN)

Year on Year growth: 3.29%

AstraZeneca PLC (NASDAQ:AZN), one of the biggest biotech companies in the US, focuses on oncology, rare diseases, and biopharmaceuticals, including cardiovascular and respiratory areas. It’s known for driving cancer research innovation and aims to provide cures for all cancer types. Recent highlights include acquiring Gracell Biotechnologies Inc. for cell therapy advancements and launching Evinova, a health-tech business. Financially, positive trial results and Priority Review grants in the US signify growth. AstraZeneca PLC (NASDAQ:AZN)’s dedication to R&D, strategic acquisitions, and health-tech initiatives solidifies its biopharmaceutical industry position.

16. Gilead Sciences, Inc. (NASDAQ:GILD)

Year on Year growth: 3.42%

Gilead Sciences, Inc. (NASDAQ:GILD) is a renowned biopharmaceutical company recognized for its commitment to responsible corporate behavior. It was named one of America’s Most Just Companies for creating a healthier world. Gilead expanded its liver portfolio by acquiring CymaBay Therapeutics and adding seladelpar for primary biliary cholangitis treatment. Known for antiviral drugs, it focuses on HIV/AIDS, hepatitis B and C, influenza, and COVID-19. Financially, it reported a 2.7% increase in Q1 2024 dividend. Gilead Sciences, Inc. (NASDAQ:GILD)’s upcoming trends include advancing HIV and cancer treatments, reflecting its dedication to tackling global health challenges.

15. Takeda Pharmaceutical Company Limited (NYSE:TAK)

Year on Year growth: 5.69%

Takeda Pharmaceutical Company Limited (NYSE:TAK) is a global biopharmaceutical company focusing on oncology, rare diseases, and neuroscience. Recent achievements include FDA approval for Gammagard Liquid for Chronic Inflammatory Demyelinating Polyneuropathy. Takeda Pharmaceutical Company Limited (NYSE:TAK) emphasizes innovative treatments and extensive R&D efforts. In February 2024, it announced Phase 3 trials for TAK-861 in Narcolepsy Type 1. The company’s upcoming trends center on advancements in oncology, rare diseases, and neuroscience treatments. Financially, Takeda reported $29.79 billion in revenue for fiscal year 2023, solidifying its position in the pharmaceutical industry.

14. Johnson & Johnson (NYSE:JNJ)

Year on Year growth: 6.46%

Johnson & Johnson (NYSE:JNJ), one of the fastest growing biotech companies in the US is known for its contributions to healthcare, including advancements in genomics and innovative treatments for conditions like atrial fibrillation and HDFN. It remains dedicated to tackling cancer and Alzheimer’s. Recently, Johnson & Johnson (NYSE:JNJ) was named the world’s most admired company for the 22nd consecutive year and reported strong financial performance in 2023. It acquired Ambrx Biopharma, Inc., emphasizing its commitment to expanding its portfolio. J&J continues to focus on health innovation and invests in nanotechnology, exemplified by its recent investment in Nanobiotix.

13. Pfizer Inc. (NYSE:PFE)

Year on Year growth: 7.00%

Pfizer Inc. (NYSE:PFE), a leading biopharmaceutical company, is dedicated to healthcare innovation, addressing health disparities, environmental sustainability, and breakthrough medicines. Its upcoming trends include a commitment to impacting a billion lives annually by 2027 and prioritizing oncology research. Financially, Pfizer Inc. (NYSE:PFE) anticipates full-year 2024 revenue of $58.5 to $61.5 billion, with $8 billion from Covid products and contributions from the Seagen acquisition. Operational revenue growth for 2024 is expected to be 8%-10%, excluding Comirnaty and Paxlovid revenues.

12. Amgen Inc. (NASDAQ:AMGN)

Year on Year growth: 7.09%

Amgen Inc. (NASDAQ:AMGN), a biotech pioneer founded in 1980, focuses on innovative therapeutics for serious diseases. Its contributions include impactful medicines for cardiovascular disease, osteoporosis, and more. Subsidiary deCODE Genetics aids in disease target identification. Amgen’s recent FDA priority review is tarlatamab to treat advanced small-cell lung cancer. Collaborations with PostEra and Q32 Bio aim to enhance drug discovery. Amgen Inc. (NASDAQ:AMGN)’s future trends involve advancing disease understanding and sustainability goals for carbon neutrality by 2027. Financially, it conducts 1,800+ clinical trials globally and sells products primarily through pharmaceutical distributors.

11. Novartis AG (NYSE:NVS)

Year on Year growth: 7.36%

Novartis AG (NYSE:NVS), a leading biotech company in the US, makes significant healthcare contributions globally. Initiatives like the Water Neutrality Project in India and the Partnership Against Epilepsy in Cameroon demonstrate its commitment. Novartis also supports breast cancer survivors and recently acquired MorphoSys for $3 billion to enhance its oncology pipeline and expand its neuroscience portfolio with DTx Pharma. Financially, Novartis AG (NYSE:NVS) reported strong 2023 results with 10% growth in net sales and an 18% increase in core operating income.

10. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Year on Year growth: 7.76%

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) a fastest growing biotech company in the US, is renowned for its life-transforming medicines. Its ‘homegrown’ pipeline covers numerous serious diseases, focusing on leveraging biology and technology. Recent highlights include an FDA priority review for Linvoseltamab in Relapsed/Refractory Multiple Myeloma and Japan’s approval of Dupixen for Chronic Spontaneous Urticaria. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)’s formation of Regeneron Cell Medicines via acquisition demonstrates its commitment to innovation.

9. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Year on Year growth: 10.51%

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), one of the biggest biotech companies in the US since 1989, is renowned for pioneering therapies for cystic fibrosis (CF) and genetic disorders. Vertex is exploring gene-editing technologies beyond CF and expanding collaborations to accelerate therapy development. With a focus on rare diseases and personalized medicine, the company aims to address diverse patient needs. Looking ahead, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) will continue advancing gene therapy and editing, leveraging strategic partnerships and research in oncology to impact global healthcare further.

8. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)

Year on Year growth: 15.00%

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), founded in 1997, is a leading biopharmaceutical company based in San Rafael, California. BioMarin specializes in rare genetic diseases and has developed groundbreaking treatments for conditions like mucopolysaccharidosis type I (MPS I) and phenylketonuria (PKU). Recent developments include an agreement on reimbursement for its gene therapy program, ROCTAVIAN, and a significant investment from Elliott Investment Management. With revenue of approximately US$2.4 billion in 2023, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) focuses on enhancing corporate governance and long-term shareholder value creation while pursuing a diverse pipeline of early-stage product candidates, such as VOXZOGO and ROCTAVIAN, to continue leading in genetic innovation.

7. Amicus Therapeutics, Inc. (NASDAQ:FOLD)

Year on Year growth: 15.18%

Amicus Therapeutics, Inc. (NASDAQ:FOLD), a leading biotech company in the US, specializes in advanced therapies for rare diseases. With a robust patient-centered approach, they prioritize access to medicines and maintain compassionate care. Currently, Amicus Therapeutics, Inc. (NASDAQ:FOLD) is advancing various pipeline projects for rare diseases and emphasizes patient engagement in decision-making processes. The company will continue focusing on rare diseases, mainly through pharmacological chaperones and enzyme replacement therapy while investing in innovative research and technology for genetic disorders.

6. Eli Lilly and Company (NYSE:LLY)

Year on Year growth: 19.56%

Eli Lilly and Company (NYSE:LLY), standing sixth among the fastest growing biotech companies in the US, demonstrated significant growth in Q3 2023 with a 37% revenue increase driven by strong sales of products like Mounjaro, Verzenio, and Jardiance. The company also received FDA approval for new treatments and expanded its business by acquiring POINT Biopharma Global Inc.

In Q4 2023, revenue surged by 28% compared to the previous year, accompanied by a sixth consecutive annual increase of 15% in dividends. Leadership changes included the retirement of Johna Norton. Looking ahead to 2024, Eli Lilly and Company (NYSE:LLY) emphasized innovation to address global healthcare challenges, with Q4 2023 revenue reaching $9.35 billion and reported net income of $2.19 billion.

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