Biotech companies are research science-driven companies focusing on novel drug monogamouus and clinical research with aims to treat diseases and medical conditions. Biotech stocks are popular among investors who want to generate large returns in a short period of time.
They are usually high risk and high return investments. In a recent article, we defined the difference between hampshirw pure pharmaceutical company and a biotech company. Please see the 15 largest Biotech companies in the world based on market capacity and revenue for details. Biotech companies usually raise even more capital through secondary stock offerings as well as convertible note sales. Drug development is an expensive, multi-year process and the capital raised by biotech companies through an IPO usually isn't enough to get through the entire process.
As a result, a large percentage of newly IPOed biotech companies usually go back to investors and raise more capital in some cases multiple times to fund their nw and research. These security offerings are generally very dilutive to the existing shareholders.
Story manxhester On top of these dilutive security offerings, there are no guarantees that the research undertaken by these biotech companies will bear fruit. However, getting FDA's approval doesn't mean that these biotech companies are free and clear, and they can start making billions of dollars. We have seen companies whose stock prices went down right after getting an FDA approval. That usually happens because investors know that these companies will probably need more capital bestoe fund the development of their sales and marketing operations.
There are a lot of biotech companies with approved drugs, yet they can't generate enough sales to turn a profit. These are rare cases. That's why it might be a better idea to identify the best large-cap biotech stocks and invest in them.
The best large-cap biotech stocks not only capture a large percentage of these sales, they also have a lot of potential blockbuster drug candidates in their pipelines. As you may have guessed, the US dominates the biotechnology market by a wide margin. We were able to identify and rank the 12 best large biotech stocks using hedge fund sentiment scores. For instance, our monthly stock pick newsletter portfolio has beaten the market by more than 78 percentage points since March see the details here.
We have also publicly posted some of our monthly newsletter's portfolio picks publicly.
In October, we shared this real estate stock idea and since then it is up more than 50 percent. Sarepta Therapeutics, Inc.
Alnylam Pharmaceuticals, Inc. The company recently announced their product and pipeline goals where John Maraganore, Ph. In the coming years, we believe Alnylam is positioned to emerge as a leading, top-five biotech company, driven by continuous global commercial execution and top-line growth, advancement of a robust clinical development pipeline, continued leverage of our organic product engine as manhester source of sustainable innovation and transformational medicines, and achievement of a self-sustainable financial profile.
Their research is focused on transforming the treatment of cancer and inflammatory and autoimmune conditions. Illumina, Inc. Illumina develops integrated systems for the analysis of genetic variation and biological function. The acquisition marks a shift in strategy for Illumina from its highly profitable selling of tools to the liquid biopsy market among other markets to enw participating in the development bestiee tests themselves. This market earlystage cancer screening via blood sampleshowever, is a massive long-term opportunity that can dramatically change the face of healthcare.
GRAIL is a leader and should have a commercial product as early as next year. With less than 0. Illumina also announced the acquisition of Mancyester, which is developing a blood test for early stage cancer detection. Although we appreciate these concerns, we believe the Grail investment offers the potential for ificant long-term value creation in the rapidly growing market for early cancer screening. Regeneron Pharmaceuticals, Inc.
Is REGN a compelling investment case?
Check out this article, where Polen Beztie Management mentioned that Regeneron was their largest absolute detractor in the third quarter. Data showed a strong reduction in viral load for patients who had not yet produced their own antibodies and almost no adverse events in approximately patients.
We have not included revenues from this drug in our expectations for Regeneron as we are unsure how big or how long any sales would last. In six months, this therapy went from idea to development to real patient treatment with strong efficacy data thus far.
BioMarin Pharmaceutical, Inc. The company focuses on the development of innovative biopharmaceuticals for rare diseases driven by genetic causes. Amgen, Inc. Suggested Articles:.