Biotech Bull Markets and Billion-Dollar Valuations
Biotech investors are an optimistic lot, so in a raging bull market like the one the sector's been living through for the past two-plus years, talk of valuation bloat recedes into the distance.
I don't have a crystal ball clear enough to forecast the direction of biotech stocks in 2015, but this year isn't ending on a high note, thanks to Express Scripts and its war against ever-escalating drug prices. (Or, maybe the villains are biotech companies who believed they could slap sky-high prices on their drugs without consequence.)
Whoever is to blame, the reality of reined-in (lower) drug pricing represents the greatest threat to the continued biotech bull market.
On that note, I compiled a list of the most expensive, development-stage biotech and drug companies, ranked by market cap. Development stage means no drugs approved, no meaningful revenue, and of course, no income.
The valuation of these stocks bake in A LOT of future success. They might also be at the most risk if investors turn sour on the biotech sector in 2015.
1. Alnylam Pharmaceuticals: $7.9 billion
2. Isis Pharmaceuticals: $7.4 billion [Isis has a drug approved but has never reported sales.]
3. Agios Pharmaceuticals $4.4 billion
4. Opko Health $4.3 billion
6. Intercept Pharma $3.3 billion
7. Acadia Pharma $3.2 billion
8. Synageva BioPharma $3.2 billion
9. Bluebird Bio $2.8 billion
10. Intrexon $2.7 billion
