Only 12% of Public Biotechs are Profitable

Inside BIO Industry Analysis

Of the 286 biotech companies trading on public exchanges today, 241 focus on drug development, a slight drop in numbers from last year.* Of these 241 in the biopharmaceutical space, only 28 (12%) had both a product on the market and positive net income for FY 2012. This is about the same as the 13% reported last year, but different companies populate the list.  Unlike our last report (May 2012), when acquisitions of profitable companies had an impact on the numbers, the more recent buy-outs were mainly of pre-profit companies. However, this year we saw a few companies removed from the list due to a need to increase SG&A or R&D lines to support new marketing efforts or Phase III trials. For example, mid caps Regeneron and Vertex dipped into the red for 2012 net income.

2013-05 Profitable

The table above lists the 28 profitable companies. Just like last year, four companies reported over $1 billion in net income. Eight companies had between $100M-$1B in net income. 57% of those in the green had less than $100M in net income. To look at this another way, only 12/241 companies make over $100M – only 5%.**

*The slight drop in the total number of public companies from last year means that bankruptcy and acquisitions have outpaced the 22 IPOs we had since Jan 2012.

**Data for net income was generated using Factset.

 

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