Image Source: Celgene
This listing has been discontinued. Please view the following links for our work on pharmaceutical stocks:
Pharmaceuticals – Big: ABBV, ABT, AMGN, AZN, BMY, GSK, LLY, MRK, NVO, NVS, PFE, SNY
Structure of the Biotechnology Industry
Firms in the biotechnology industry face no certain future. Drug development is complex, difficult, and risky, and failure rates are high. Product development cycles are extended—approximately 10 to 15 years from discovery to market. A potential new medicine must undergo years of testing to establish safety/efficacy. Sales depend on reimbursement from third-party payers. Competition can be fierce when biosimilar products exist, though patents are material competitive advantages. We like the group on the basis of patent protection, but the timing of expiration of such patents should be watched closely.