Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Tweet of the Week: Big Biotech Dominates Industry Gains

This week's tweet comes from Bruce Booth (@LifeSciVC), who points out analysts at Bernstein concluded that just six companies contributed to 77% of the increase in value of the biotech sector over the past three years.

There's no doubt that Amgen, Biogen Idec (NASDAQ: BIIB  ) , Celgene (NASDAQ: CELG  ) , Gilead Sciences (NASDAQ: GILD  ) , Regeneron Pharmaceuticals (NASDAQ: REGN  ) , and Alexion Pharmaceuticals (NASDAQ: ALXN  ) have seen substantial gains over the past couple of years, but as Fool contributor Brian Orelli and health-care bureau chief Max Macaluso point out in the following video, the large sizes of the companies is what causes the large contribution.

A smaller biotech that goes from a market cap of $500 million to $1 billion doesn't add much to the overall valuation of the industry, but the company still provides a 100% gain for investors.

The stat is more relevant for generalist investors who invest in biotech ETFs. Since the funds are tied to indexes dominated by the larger companies, their increased valuation will drive returns for the shares of the ETF.

Looking for growth outside the biotech sector?
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multibagger stocks time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2906070, ~/Articles/ArticleHandler.aspx, 8/31/2015 5:19:08 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Brian Orelli

Dr. Orelli is a Senior Biotech Specialist. He has written about biotech, pharmaceutical, and medical device companies for The Motley Fool since 2007.

Today's Market

updated 2 days ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 3:59 PM
ALXN $178.86 Down -0.96 -0.53%
Alexion Pharmaceut… CAPS Rating: ***
BIIB $303.69 Down -0.80 -0.26%
Biogen Idec CAPS Rating: ****
CELG $124.04 Up +1.00 +0.81%
Celgene CAPS Rating: *****
GILD $107.78 Down -0.21 -0.19%
Gilead Sciences CAPS Rating: *****
REGN $536.70 Down -1.30 -0.24%
Regeneron Pharmace… CAPS Rating: ***