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Biotechnology and Industry 2023: Market Growth, Transformations, and Technological Milestones
The global biotechnology market was valued at approximately $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 a staggering $3.88 trillion by 2030. The United States is a world leader in biotechnology, with a market size valued at $246.18 billion in 2023, which is projected to reach $763.82 billion by 2033, growing at a CAGR of 11.90% from 2024 to 2033.
With 41.73% of revenue coming from applications in 2023, bio-pharmacy led the way, followed by bio-industries with 24.33%. Because of advances in healthcare infrastructure and favorable government laws, the Asia-Pacific area is expected to grow significantly, with a projected growth rate reaching 12.7% during the forecast period 2023-2033. The biotech sector had significant changes in 2023, including leadership changes and layoffs. Due to difficulties at Silicon Valley Bank, investors concentrated on smaller, more significant transactions. From over 1,500 deals totaling approximately $60 billion in 2021, the number of deals fell to about 840 deals worth $24 billion.
Talking about milestones in the Biotechnology sector, the FDA approved the first CRISPR gene therapy for genetic illnesses in 2023, and whole genome sequencing was widely used in clinical practice to screen embryos in IVF facilities and diagnose genetic problems.
Major Players in the Biotechnology Sector
Major companies like Amgen Inc. (NASDAQ:AMGN), Biogen Inc. (NASDAQ:BIIB), and Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), among many others, have been at the forefront and have been largely contributing to global healthcare with their unique inventions. For example, Amgen Inc. (NASDAQ:AMGN) invested heavily in research and development, spending $4.8 billion in 2023, an 8% increase from the previous year. Amgen pursues external innovation through strategic acquisitions, such as the $27.8 billion acquisition of Horizon Therapeutics in 2023, which established Amgen as a leader in treating rare inflammatory diseases.
Financially, In Q1 2024, Amgen Inc. (NASDAQ:AMGN)’s total revenues increased 22% YoY to $7.4 billion, driven by 25% volume growth. Their ten products delivered at least double-digit volume growth, including Repatha, TEZSPIRE, EVENITY, BLINCYTO, and TAVNEOS. Their sales from the Horizon Therapeutics acquisition contributed $914 million which was led by TEPEZZA, KRYSTEXXA, and UPLIZNA. Their product sales totaled $7.12 billion during the same period, a 21.7% increase year-over-year.
Similarly, Biogen Inc. (NASDAQ:BIIB) has established itself as a leader in the field of neuroscience, developing life-changing therapies for devastating conditions such as multiple sclerosis (MS), spinal muscular atrophy (SMA), and Alzheimer’s disease. Their portfolio includes groundbreaking treatments like Tecfidera and Tysabri for MS, and Spinraza, the first approved treatment for SMA. In 2023, Biogen Inc. (NASDAQ:BIIB) employees and the Foundation contributed over $3.3 million to support disaster relief efforts, address food insecurity, and provide essential services.
In Q1 2024, their total revenue declined 7% year-over-year to $2.3 billion which was driven by a 3% decrease in product revenue and significant reductions in contract manufacturing and other revenues. Their revenue from biosimilars increased 2%, partially offsetting declines in anti-CD20 therapeutics and other product lines. For the full year 2024, Biogen expects low- to mid-single-digit percentage revenue declines compared to 2023 but maintains its Non-GAAP EPS guidance of $15.00 to $16.00.
Finally, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)’s unique ability to repeatedly and consistently translate science into medicine has led to numerous FDA-approved treatments and a robust pipeline of product candidates. The company’s proprietary VelociSuite technologies, including VelocImmune, which utilizes genetically humanized mice to produce optimized fully human antibodies and bispecific antibodies, have revolutionized the drug development process. Financially, In Q1 2024, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)’s total revenues were $3.145 billion, a 1% decrease from Q1 2023. Excluding COVID-19 antibody Ronapreve, revenues grew 7% year-over-year. Their product, Dupixent’s global net product sales were $3.1 billion, up 24% year-over-year while Libtayo’s global net product sales increased 45% year-over-year.
A scientist examining a vial of drugs in a lab, representing the biotechnology company’s research.
The Biggest Biotechnology Company in Europe
Novo Nordisk A/S (NYSE:NVO)
Market Cap: $606.01 Billion
Talking about the biggest biotechnology company in Europe, Novo Nordisk A/S (NYSE: NVO) steals the position with it’s amazing contributions in the field. The company pioneered the production of insulin which is a life-saving medication for people with diabetes. Today, Novo Nordisk is also referred as a world leader in diabetes care, offering a comprehensive portfolio of insulin and other diabetes medications. In 2014, they launched Saxenda which is a once-daily injectable medication for chronic weight management, and more recently, in 2021, they introduced Wegovy which is a game-changing once-weekly injectable for obesity treatment.
Financially, in Q1 2024, Novo Nordisk A/S (NYSE:NVO)’s total sales increased by 24% in the first quarter of 2024 compared to Q1 2023 and their operating profit grew by 30% in the same period. Their Q1 2024 report also shows that their sales growth was driven by increased demand for Novo Nordisk’s GLP-1 diabetes treatments (up 32%) and obesity care products (up 42%), especially Wegovy. The company expects to complete its acquisition of three fill-finish manufacturing sites from Catalent towards the end of 2024 to increase production capacity.
While Novo Nordisk (A/S) ranks 1st in Europe, it ranks 2nd in the world on the list of biggest public biotech companies.
To see which one ranks 1st, visit 20 Biggest Publicly-Traded Biotechnology Companies.
Also check out 20 Highest-Paying Countries for Biotech Jobs.
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Disclosure: None. This article is originally published at Insider Monkey.