iShares Nasdaq Biotechnology ETF

With a market capitalization of $50.7 billion, Regeneron is one of the country’s major biotechnology companies. Its products and pipeline candidates focus on cancer, eye diseases, and cardiovascular diseases.

Amgen’s (AMGN) business model generates revenues in two ways: product sales and other revenues mainly comprised of royalties and corporate partner income.

An overview of global biotechnology company Amgen shows a market capitalization of $127.2 billion. Headquartered in Thousand Oaks, California, Amgen has a presence in 75 countries.

Celgene’s EBITDA margins were lower than those of its competitors. Its R&D investment appears to be higher than its peers, and its SG&A expenses have risen.

Celgene has entered the inflammation and immunology drug market, as well as the cell therapies market, in order to be less dependent on MM drugs.

Celgene has consistently delivered breakthrough innovations in biotechnology and has as actively pursued acquisitions of companies for access to compounds.

Gilead Sciences (GILD), a biotechnology leader in the human immunodeficiency virus, or HIV, market, offers drugs to eight out of every ten HIV naïve patients in the US.

Gilead Sciences’ business model consists of product sales in the HIV and HCV markets, as well as royalty, contract, and other revenues.

The strong leadership of Gilead’s talented scientists has enabled the company to consistently deliver innovative therapies in the market.

In 2Q15, Biogen (BIIB) posted mixed results for its pipeline drugs. Investor sentiment remained favorable for its innovative multiple sclerosis (or MS) drugs.

If approved, solanezumab would be a breakthrough therapy in the Alzheimer’s market. The drug actually seeks to cure the cognitive disease, not simply treat it.

In 2014, Biogen earned about 27% of its total revenues from international markets such as Canada, Europe, and emerging economies.

One of the world’s leading biotechnology companies, Biogen specializes in manufacturing and marketing therapies to treat serious ailments related to the nervous system, immune system, and blood.

A leader in the development of multiple sclerosis treatments, Biogen earned 82.5% of its total revenues from its MS drugs in 2014.

When a US biotechnology company uses market entry strategies to launch its drug directly in the European market, it has to bear all the expenses related to the drug approval process in Europe.

In the early stages of their life cycles, most biotechnology companies are financed by venture capital, which typically comes from wealthy investors who invest in startup companies.

The biotechnology sector is witnessing intense competition with big pharmaceutical companies entering into collaborations and mergers and acquisitions with biotechnology companies.

There’s no complete cure for rheumatoid arthritis, so most RA drugs are part of disease-management therapy. Humira accounts for 23.5% of the RA market share.

Most multiple sclerosis drugs are very costly at about $55,000 per year. The FDA’s April 2015 approval of a generic version of Copaxone is expected to lower the overall price of the therapy.

After 2012, the biotechnology industry (IBB) had a period of solid growth, mainly driven by novel scientific inventions and aggressive commercial distribution.

The biotechnology industry will witness 12 blockbuster drugs worth $67 billion in annual revenues lose their patents by 2020. This is the so-called patent cliff.

A drug approval process is required in order for a new drug to enter the market. Companies with new drugs in later stages of the approval process are more likely to earn a positive cash flow in the next few years.

The aging Baby Boomer population in the United States is one of the social factors driving the US healthcare industry. By 2030, Americans over 55 will be 31% of the population.

Compared to pure-play pharmaceutical companies, the biotechnology industry is more sensitive to economic factors such as changes in GDP, interest rates, and exchange rates.

The type of business model a biotechnology company selects depends on technical capability, availability of resources, and competition in the industry.

The two main classifications for drugs are chemical compound drugs and biologics. Medicinal drugs are broadly classified as prescription drugs and over-the-counter drugs.

Biotechnology is simply ‘technology based on biology.’ The biotechnology industry includes food technology, genetic research, healthcare, and environmental technology.