Is Pfizer a biotech or pharma company?

Pfizer is typically viewed as a pharma company because of its large size. However, it also develops and markets biologics.

Which is better, biotech or pharma?

There's no definitive answer to this question. Biotech stocks may suit some investors, while pharma stocks may suit others.

What does a biotech firm do?

Biotech companies make medicines from living organisms called biologics. However, small drugmakers are sometimes referred to as biotechs even when they don't develop drugs from living organisms.

Are vaccines pharma or biotech?

Vaccines are biotech products since they are made from living organisms (or, in the case of mRNA vaccines, synthetic versions of mRNA found in living organisms).

What is the highest-paying job in biotech?

CEOs and other top executives typically have the highest salaries in biotech (or any other industry, for that matter). Outside of the executive ranks, biotech product managers can earn the highest salaries, according to The Ladders, which operates an online job search service platform that focuses on high-paying jobs.

How do biotech and pharma companies generate revenue?

Both biotech and pharma companies generate revenue by selling approved products. In addition, some biotech and pharma companies make money by licensing their products to other companies.

What are the four types of biotech companies?

The four main types of biotech companies, along with their associated colors, are:Medical biotechnology (red).Agricultural biotechnology (green).Industrial biotechnology (white).Marine biotechnology (blue).

Biotechnology vs. Pharmaceuticals: What Are the Differences?

Q: Are biotech and pharma the same?

Although some use the terms biotech and pharma interchangeably, they’re not exactly the same. The main difference between biotech and pharma is that biotech companies make medicines from living organisms called biologics, while pharma (pharmaceutical) companies develop drugs from chemicals.

Biotech vs. Pharma: What's the Difference?

By Keith Speights – Updated Jun 14, 2026 at 7:53 PM EST | Fact-checked by Frank Bass

Key Points

Biotech firms create medicines from living organisms, while pharma companies use chemicals.
Investors should assess long-term company prospects, regardless of whether it produces biologics or drugs.
Future biotech and pharma trends include AI, gene editing, and personalized medicine.

Similar yet different. You can probably think of several things that meet this description. Butter and margarine. Jaguars and panthers. Jam and jelly. And, for those interested in the prescription drug industry, biotech, and pharma.

Some use the terms "biotech" and "pharma" interchangeably. However, they’re not the same. The difference between biotech and pharma is that biotech companies make medicines from living organisms called biologics, while pharma (pharmaceutical) companies develop drugs from chemicals.

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Woman using gloves to hold up and inspect a red pill. — Image source: Getty Images.

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There are even different regulatory paths for biotech and pharma products in the U.S. Companies that develop therapies derived from living organisms must file a Biologics License Application (BLA) with the U.S. Food and Drug Administration (FDA) to obtain approval. Companies that develop traditional medicines file a New Drug Application (NDA) to seek FDA approval.

Examples of biotech companies

The COVID-19 pandemic brought several biotech companies into the limelight. Moderna (MRNA +1.27%) and Regeneron Pharmaceuticals (REGN -1.37%) stand out.

Moderna developed the COVID-19 vaccine mRNA-1273 (later marketed under the brand name Spikevax). This vaccine uses messenger RNA (mRNA) to prompt the body to produce proteins identical to the spike protein on the surface of the novel coronavirus SARS-CoV-2. The body then produces antibodies that can fight the coronavirus.

Regeneron’s name might indicate that it’s a pharmaceutical company. However, Regeneron actually meets the definition of a biotech.

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The company became practically a household name when its monoclonal antibody COVID-19 therapy, REGEN-COV2, was used to treat President Donald Trump in 2020 during his first term. Monoclonal antibodies are clones of a single antibody produced in labs. In the case of REGEN-COV2, the antibody cloned is one that fights the coronavirus that causes COVID-19.

Regeneron also has several other approved monoclonal antibody therapies. The company partners with Sanofi (SNY +0.18%) to market Dupixent for treating diseases including asthma and atopic dermatitis, Kevzara for treating rheumatoid arthritis, and Praluent for treating high cholesterol and reducing the risk of cardiovascular disease. Regeneron purchased Sanofi’s stake in another monoclonal antibody therapy that the companies co-marketed, cancer immunotherapy Libtayo.

Other monoclonal antibodies in Regeneron’s product lineup include cholesterol drug Evkeeza and Zaire ebolavirus treatment Inmazeb. The company also co-markets the eye disease drug Eylea with Bayer (BAYR.Y +0.49%). Eylea isn’t a monoclonal antibody, but it is a biologic.

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Examples of pharma companies

The phrase “big pharma” is often used to describe large pharmaceutical companies. Johnson & Johnson (JNJ -0.77%) and Pfizer (PFE -1.59%) rank as two of the largest of today’s big pharma companies.

Johnson & Johnson doesn’t just focus on pharmaceuticals. The healthcare giant also has a multibillion-dollar medical device business. However, J&J’s biggest moneymaker is its pharmaceutical segment.

The company’s top-selling pharmaceutical products include autoimmune disease drugs Stelara and Tremfya, blood cancer drugs Darzalex and Erleada, and antipsychotic drug Invega Trinza/Trevicta. Johnson & Johnson’s product lineup features a long list of other drugs as well.

Pfizer is probably best known now for its COVID-19 vaccine Comirnaty and oral therapy Paxlovid. But the company has several other blockbuster products. Its Prevnar family stands out as a leader in the pneumococcal vaccine market. The company’s top cancer drugs include Ibrance and Xtandi. Pfizer co-markets blood thinner Eliquis with another big pharma company, Bristol Myers Squibb (BMY -1.90%). And Pfizer’s Vyndaqel/Vyndamax is an enormously successful treatment for a rare type of heart disease.

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Blurring the lines

Technically, Johnson & Johnson and Pfizer could also be viewed as biotech companies. Both big drugmakers develop biologics made from living organisms.

For example, J&J’s Stelara is a monoclonal antibody. So is Darzalex. Some of Pfizer’s top products are biologics, including Comirnaty and Prevnar.

There has been an increasing blurring of the lines between biotech and pharma. Many traditional big pharma companies now develop biologics. Some drugmakers refer to themselves as “biopharmaceutical companies” to reflect their focus on both biologics and traditional pharmaceuticals.

To confuse matters further, some companies that develop drugs not derived from living organisms are commonly referred to as biotechs. As a case in point, the State Street SPDR S&P Biotech ETF (XBI +0.03%), as its name suggests, owns biotech stocks. Vertex Pharmaceuticals (VRTX +1.10%) is one of the exchange-traded fund's holdings. But neither Vertex’s best-selling cystic fibrosis (CF) drug, Trikafta, nor the company's other CF drugs are biologics.

It has become widely accepted to categorize all small drugmakers as biotech companies, even when they don’t meet the definition of a biotech. Madrigal Pharmaceuticals (MDGL +3.87%), which has a relatively small market cap and "pharmaceuticals" in its name, is a holding of the State Street SPDR S&P Biotech ETF. However, Madrigal's only approved product, metabolic-associated steatohepatitis drug Rezdiffra, isn't a biologic.

Biotech vs. pharma: What's the difference?

How can you differentiate between a biotech company and a pharmaceutical company? The following table provides a quick way to determine which category a drugmaker belongs to:

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Biotech vs. Pharma Differences
Factor	Biotech	Pharma
Type of therapy made	Medicines made from living organisms (called biologics).	Medicines made from chemicals.
Regulatory approval process	Must file a Biologics License Application (BLA) to obtain approval from the U.S. FDA.	Must file a New Drug Application (NDA) to obtain approval from the U.S. FDA.
Size	Can be any size, but many small drugmakers are categorized as biotech companies.	Can be any size but are often large drugmakers.

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Considerations for investors

Big pharma stocks, such as Johnson & Johnson and Pfizer, are typically less volatile than smaller biotech stocks, primarily because of their size and financial strength.
However, large biotech companies are often less risky than smaller pharmaceutical companies that develop traditional medicines not derived from living organisms.
With opportunities in mRNA, monoclonal antibodies, gene editing, and other technologies, there will likely be more biopharma companies in the future than pure biotechs or pharmas.
Investors are better off focusing on the long-term prospects for the individual companies, regardless of whether their therapies are biologics or traditional drugs.
Evaluate the management teams, markets for targeted diseases, clinical results of pipeline candidates, and the financial positions of the companies.
In the end, what really matters is the potential return relative to the risk you take on.

The future of biotech and pharmaceuticals

Several trends will likely shape the future of biotech and pharmaceuticals, including:

Personalized medicine. Biotech and pharmaceutical companies will increasingly focus on developing therapies tailored to individuals based on their genetics and lifestyles.
Gene editing and gene therapy. Approaches such as CRISPR (clustered regularly interspaced short palindromic repeats) gene editing offer the promise to modify DNA to cure genetic diseases.
Artificial intelligence (AI). Some biotech and pharmaceutical companies are already using AI to discover new drugs. In the future, AI will likely be used much more widely to predict how potential medications will interact with the human body.
Quantum computing. In conjunction with AI, quantum computing could transform drug discovery with its ability to simulate complex biological interactions.

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Biotech vs. Pharma FAQ

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About the Author

Keith Speights is a contributing Motley Fool healthcare analyst covering publicly traded companies across pharmaceuticals, biotechnology, medical devices, technology, and marijuana. Prior to The Motley Fool, Keith was CEO of Constant Care Technology, a healthcare technology company; vice president of American HealthTech, a healthcare software company; and a director of operations for Blue Cross Blue Shield of Mississippi, a health insurer. He holds a B.S. in Industrial Engineering from Mississippi State University.

TMFFishBiz

Keith Speights has positions in Bristol Myers Squibb, Pfizer, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Bristol Myers Squibb, Moderna, Pfizer, Regeneron Pharmaceuticals, and Vertex Pharmaceuticals. The Motley Fool recommends Johnson & Johnson and SPDR Series Trust - SPDR S&P Biotech ETF. The Motley Fool has a disclosure policy.

Biotech vs. Pharma: What's the Difference?

Key Points

Examples of biotech companies

Examples of pharma companies

Blurring the lines

Biotech vs. pharma: What's the difference?

Considerations for investors

The future of biotech and pharmaceuticals

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Biotech vs. Pharma FAQ

Are biotech and pharma the same?

Are biotech and pharma the same?

Is Pfizer a biotech or pharma company?

Is Pfizer a biotech or pharma company?

Which is better, biotech or pharma?

Which is better, biotech or pharma?

What does a biotech firm do?

What does a biotech firm do?

Are vaccines pharma or biotech?

Are vaccines pharma or biotech?

What is the highest-paying job in biotech?

What is the highest-paying job in biotech?

How do biotech and pharma companies generate revenue?

How do biotech and pharma companies generate revenue?

What are the four types of biotech companies?

What are the four types of biotech companies?

About the Author

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Examples of pharma companies

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Biotech vs. Pharma FAQ

Are biotech and pharma the same?

Are biotech and pharma the same?

Is Pfizer a biotech or pharma company?

Is Pfizer a biotech or pharma company?

Which is better, biotech or pharma?

Which is better, biotech or pharma?

What does a biotech firm do?

What does a biotech firm do?

Are vaccines pharma or biotech?

Are vaccines pharma or biotech?

What is the highest-paying job in biotech?

What is the highest-paying job in biotech?

How do biotech and pharma companies generate revenue?

How do biotech and pharma companies generate revenue?

What are the four types of biotech companies?

What are the four types of biotech companies?

Blurring the lines

Biotech vs. pharma: What's the difference?