The Most Profitable Biotechnology Company in the World

In this article, we will be taking a look at the most profitable biotechnology company in the world. If you want to learn about more, head straight to the 15 Most Profitable Biotechnology Companies in the World.

Global Biotechnology Market Forecast: Strong Growth Driven by Healthcare and Food & Agriculture Innovations

The global biotechnology market was valued at USD 1.55 trillion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 13.96% from 2024 to 2030, reaching USD 3.88 trillion by 2030. The healthcare segment dominated the market in 2022, accounting for 50.69% of the revenue share, driven by the high penetration of personalized medicine and cost-effective treatment options. The food & agriculture segment is expected to be the fastest-growing application, with a projected 23.8% revenue share in 2022, fueled by the increasing global population, demand for sustainable agriculture practices, and the use of biotechnology products in food processing.

DNA sequencing held the largest technology segment share of 42.6% in 2022, owing to its wide usage in drug discovery, personalized medicine, agriculture biotechnology, and genetic testing. Tissue engineering & regeneration is identified as the fastest-growing technological segment, with a projected CAGR of 13.2%.

The U.S. biotechnology market size was valued at USD 246.18 billion in 2023 and is anticipated to reach around USD 763.82 billion by 2033, poised to grow at a CAGR of 11.90% from 2024 to 2033 which makes the US world leader in biotechnology. Some key players operating in the biotechnology market include Johnson & Johnson (NYSE:JNJ) Services, Inc., F. Hoffmann-La Roche Ltd, Pfizer Inc. (NYSE:PFE), Merck & Co., Abbott Laboratories (NYSE:ABT), Amgen, Sanofi, and others.

Johnson & Johnson (NYSE:JNJ) is a multinational corporation and one of the world's largest biotechnology companies. Its RYBREVANTTM (amivantamab-vmjw) is the first targeted treatment for non-small cell lung cancer with EGFR exon 20 insertion mutations. In Q1 2024 Johnson & Johnson (NYSE:JNJ) reported sales growth of 2.3% to $21.4 billion, with operational growth of 3.9% and adjusted operational growth of 4.0%. Johnson and Johnson is also one of the top earning biotech companies.

Pfizer Inc. (NYSE:PFE) is one of the world's largest and most prominent biopharmaceutical companies. Pfizer's oncology portfolio includes several innovative treatments that have revolutionized cancer care. Their targeted therapies, such as Ibrance (palbociclib) for breast cancer and Xalkori (crizotinib) for non-small cell lung cancer, have significantly improved patient outcomes and quality of life. Their blockbuster drug, Lipitor (atorvastatin), has helped millions of patients manage high cholesterol levels and reduce the risk of heart disease. In Q1 2024, Pfizer Inc. (NYSE:PFE) reported total revenues of $14.9 billion, down 20% year-over-year (19% operational decline). Pfizer is also one of the top earning biotech companies in the world.

Similarly, Abbott Laboratories (NYSE:ABT) also leads the way in the biotechnology sector. Abbott's nutritional products, such as Ensure and Pediasure, have played a crucial role in providing essential nutrients to individuals with specific dietary needs. In Q1 2024, their total sales increased 2.2% year-over-year to $9.96 billion. Organic sales growth, excluding COVID-19 testing sales, was 10.8% and their met earnings decreased 7% to $1.22 billion or $0.70 per share on a GAAP basis. Their adjusted diluted EPS was $0.98, a 5% decrease from Q1 2023. For the full-year 2024, Abbott Laboratories (NYSE:ABT) projects GAAP EPS of $3.25-$3.40 and adjusted EPS of $4.55-$4.70, raising the midpoint of its previous guidance range.

Companies developing cell and gene therapies raised over USD 23.1 billion in investments globally in 2021 which is an increase of about 16% over 2020's total of USD 19.9 billion. The biotech sector had significant changes in 2023, including leadership changes and layoffs. Due to difficulties at Silicon Valley Bank, investors began to focus on smaller, more significant transactions. From over 1,500 deals worth over $60 billion in 2021, the number of deals fell to about 840 totaling $24 billion.

Our Methodology

For our methodology, we have ranked the 15 most profitable biotechnology companies in the world based on their profit margins as of 2023. To find out the profit margins we divided their net income with their revenue and multiplied it by 100.

The Most Profitable Biotechnology Company in the World

1. AstraZeneca PLC (NASDAQ:AZN)

Profit Margin: 81%

AstraZeneca PLC (NASDAQ:AZN) is one of the most profitable biopharmaceutical companies in the world. AstraZeneca has made significant advancements in oncology, with medicines like Enhertu, an antibody-drug conjugate developed in collaboration with Daiichi Sankyo. Enhertu is approved for the treatment of HER2-mutated breast, lung, and gastric cancers, and has received multiple Breakthrough Therapy Designations from the FDA for various HER2-expressing tumors. AstraZeneca PLC (NASDAQ:AZN) plans to launch 20 new medicines by 2030, many with the potential to generate more than $5 billion in peak-year revenues.

 

You can also check out our full list of 15 Most Profitable Biotechnology Companies in the World.

 

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Disclosure. None: The 15 Most Profitable Biotechnology Companies in the World is originally published on Insider Monkey.