Article originally published on GEN
The biotechnology industry achieved many firsts this past year, from the first approved drug that can slow the rates of cognitive and functional decline in adults with Alzheimer’s disease, to the first CRISPR-based gene editing therapy. But another first that occurred during 2023 should give drug and tool developers—and their investors—reason for concern.
For the first time since 2012, when GEN began compiling its A-Lists of top biotechnology companies, we report a year-over-year decline in the market capitalization (the product of the share price and the number of outstanding shares) of the listed companies. As of December 8, 2023, the 25 largest biotechnology companies had a combined market capitalization of $1.711 trillion, down 2.2% from the $1.75 trillion market cap of GEN’s Top 25 Biotech Companies of 2023, an A-List published in May 2023.
However, biotechnology remains a profitable investment in the long term. Over the past five years, the market cap for the top 25 biotechnology companies soared nearly 78% from the combined $963.495 billion reported in GEN’s Top 25 Biotech Companies of 2019.
But the one-year decline is unmistakable evidence of how bearish the market has become..continue reading
