In this article we discuss the 5 most valuable biotech companies in the world. If you want to read our detailed analysis of the biotechnology industry, go directly to the 15 Most Valuable Biotech Companies in the World.
5. Novartis AG (NYSE: NVS)
Market Cap: $204.405 billion
Number of Hedge Fund Holders: 19
Novartis AG (NYSE: NVS) is one of the largest pharmaceutical companies in the world and is headquartered in Basel, Switzerland. The company is making use of innovative digital technologies to innovate novel treatments for rare diseases and has consistently ranked amongst the top companies in research and development in the world. The Swiss biotech giant’s products have reached over 800 million people around the world and the company has several innovative projects in its pipeline. Novartis AG (NYSE: NVS) reported total revenue of $49.89 billion in FY 2020 and is showing a lot of promise for investors. With a market cap of $204.405 billion, the company ranks fifth in the list of the 15 most valuable biotech companies in the world.
Oakmark Global Fund, in their Q4 2020 investor letter, mentioned Novartis AG (NYSE: NVS) and emphasized their views on the company. This is what they said:
“Novartis is one of Europe’s largest pharmaceutical companies and possesses a highly diversified portfolio of innovative products. Its share price underperformed both the broader market and its pharma peers during 2020, largely due to a few disappointing late-stage trials and the company’s lack of Covid-19-related therapeutics or vaccines. These short-term issues provided us with an attractive entry point to invest in a leading pharmaceutical franchise with compelling economics. We estimate that the market is currently ascribing almost no value to Novartis’ pipeline despite the company’s excellent track record in new drug development. We expect that Novartis will deliver mid-single-digit, top-line growth and expand margins over the next five years as a result of its cost-savings plan. The company possesses one of the most diversified product portfolios in the pharma industry with 15 $1b+ compounds, which reduces its reliance on any single compound.”
4. Eli Lilly and Company (NYSE: LLY)
Market Cap: $233.244 billion
Number of Hedge Fund Holders: 55
Eli Lilly and Company (NYSE: LLY) is a pharmaceutical giant that is based in Indianapolis, Indiana. It was founded in 1876 and has since established itself as one of the most valuable biotech companies in the world with a market cap of $233.244 billion. It was the first company that engaged in mass production of the polio vaccine and human insulin by using recombinant DNA. Eli Lilly and Company (NYSE: LLY) has also acquired Protomer Technologies to advance its biotechnology treatments for diabetes. The company’s products are sold in over 125 countries worldwide. It has also acquired another biotech firm that specializes in gene therapy. Overall, 30% of Eli Lilly and Company’s (NYSE: LLY) drug portfolio consists of biotech medicines making it one of the most valuable biotech companies in the world.
Like Pfizer Inc. (NYSE: PFE), Johnson & Johnson (NYSE: JNJ), Novo Nordisk A/S (NYSE: NVO), Moderna, Inc. (NASDAQ: MRNA), and AstraZeneca PLC (NASDAQ: AZN), Eli Lilly and Company (NYSE: LLY) is one of the most valuable biotech companies in the world.
3. Pfizer Inc. (NYSE: PFE)
Market Cap: $234.039 billion
Number of Hedge Fund Holders: 65
Pfizer Inc. (NYSE: PFE) produces vaccines and other medicines for cardiology, neurology, oncology, endocrinology, and immunology. The company has several popular products which generate more than a billion dollars in revenue each year. The foundation of their research and production activities is biotech. Pfizer Inc. (NYSE: PFE) has recently produced 430 million doses of the COVID-19 vaccine in collaboration with BioNTech which have been distributed worldwide to combat the pandemic. Over 3 billion doses of this vaccine are expected to be produced by the end of 2021. Pfizer Inc. (NYSE: PFE) has also announced that it will invest up to $500 million in biotech companies to continue its clinical development programs through the Pfizer Breakthrough Initiative. With a market cap of $234.04 billion, Pfizer Inc. (NYSE: PFE) ranks third in the list of the 15 most valuable biotech companies in the world.
2. Roche Holding AG (OTC: RHHBY)
Market Cap: $326.101 billion
Number of Hedge Fund Holders: 3
Roche Holding AG (OTC: RHHBY) is a Swiss pharmaceutical and diagnostic business that is based in Basel, Switzerland. It produces pharmaceutical products for cancer, hepatitis, HIV/AIDS, dermatology, anemia, and other major illnesses. Since it was established in 1896, Roche has become one of the leading pharma companies in the world and has developed cutting-edge protein engineering biotech as well as world-class production facilities to become the leading biotech company in terms of sales. For FY 2020, Roche Holding AG (OTC: RHHBY) reported total revenue of $63.5 billion. The company ranks 2nd amongst the 15 most valuable biotech companies in the world.
Like Pfizer Inc. (NYSE: PFE), Johnson & Johnson (NYSE: JNJ), Novo Nordisk A/S (NYSE: NVO), Moderna, Inc. (NASDAQ: MRNA), and AstraZeneca PLC (NASDAQ: AZN), Roche Holding AG (OTC: RHHBY) is one of the most valuable biotech companies in the world.
In the Q4 2020 Investor Letter, Brown Capital Management highlighted a few stocks, and Roche Holdings AG (OTC:RHHBY) is one of them. This is what the fund said:
“We eliminated Roche Holdings, a Switzerland-based company that is the largest biotech in the world. While the company is on the cutting edge of drug discovery, particularly in cancer-related treatments, it is facing an uncertain growth path and pressure from generics in its mature drugs. Roche has been a positive contributor to the portfolio since its introduction more than a decade ago, and we now take the opportunity to recycle the capital into higher-growth companies.”
1. Johnson & Johnson (NYSE: JNJ)
Market Cap: $452.602 billion
Number of Hedge Fund Holders: 81
Johnson & Johnson (NYSE: JNJ) has landed at the top of the list due to its subsidiary Janssen Biotech, Inc. which is a biotech company with a particular focus on the development of monoclonal antibody technology. The leading pharma giant’s biotech subsidiary is working across six therapeutic areas: immunology, neuroscience, cardiovascular and metabolism, oncology, infectious diseases and vaccines, and pulmonary hypertension. Johnson & Johnson (NYSE: JNJ) has also acquired Momenta pharmaceuticals to expand its portfolio of autoimmune disorder treatments. In fact, this acquisition will give Johnson & Johnson’s biotech division access to other Momenta’s products as well. In 2021, the company has also been awarded a deal by the US government to produce 100 million doses of its COVID-19 vaccine. The company has a market cap of $452.6 billion, earning the top spot in Insider Monkey’s list of the 15 most valuable biotech companies in the world.
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