3 companies account for 85% of biotech profit

In this blog, our finance manager Robb Hughes offers a financial perspective on industry leadership.

Until last year, biotech as an industry has NEVER made a profit since the category’s founding by Genentech 42 years ago.

In 2008, biotech turned its first profit according to a survey by Burrill & Co. cited in BusinessWeek.  Total profits reached $9.4 billion; however, $8 billion of those profits originated from just three companies – Amgen, Genentech, and Gilead Sciences.

Only sixty-four other publicly traded biotechs pulled a profit. The remaining 306 publically traded companies lost a combined $6 billion.

The future looks challenging with more than 120 firms reporting less than six months of cash on hand.