US Biotechnology Industry Booms with $90 Billion in Revenue

Strategic Insights -

The US biotechnology industry, comprising about 1,500 companies, has a combined annual revenue of more than $90 billion. The sector is driven by demand for new medical treatments, the need to produce more food for a growing population, and scientists' pursuit of solutions for complex scientific and medical issues. Major companies in the industry include Amgen, Biogen Idec, Genentech, Genzyme, Life Technologies, and Monsanto.

Key Takeaways:

  • The US biotechnology industry consists of approximately 1,500 companies with combined annual revenue exceeding $90 billion.
  • Major companies in the industry include Amgen, Biogen Idec, Genentech (owned by Roche), Genzyme, Life Technologies, and Monsanto.
  • The biotechnology and pharmaceutical industries overlap significantly due to the development of many drugs using biotechnology.
  • The industry is driven by insurers' willingness to pay for new medical treatments, the global need to produce more food for a rapidly expanding population, and scientists' desire to find solutions for complex scientific and medical issues.
  • Funding for biotech research is often provided by venture capital funds seeking to profit from new products.
  • The profitability of individual companies depends on the discovery and effective marketing of new products.
  • Small biotechnology companies can co-exist successfully with large ones if they have expertise in a particular line of research.
  • The industry is capital intensive, with average annual revenue per worker reaching $500,000.
  • Biotech firms face stiff competition from pharmaceutical and other companies seeking to be first with a new product or discovery.

Statistics:

  • The US biotechnology industry consists of approximately 1,500 companies.
  • The combined annual revenue of these companies exceeds $90 billion.
  • Average annual revenue per worker in the biotech industry reaches $500,000.

Sources:

  • Research and Markets (http://www.researchandmarkets.com/research/06f2d1/biotechnology_sect)
  • First Research ((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties.))
  • PressWIRE (http://www.presswire.net)