Direct Answer
74 SEC filers are classified under the Standard Industrial Classification code that describes the large-cap biotechnology industry, and their latest annual reports show $92.6 billion of combined revenue and a median operating margin of -274.6%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Large-cap biotechnology companies are established developers with multiple approved drugs, strong cash flow and global commercial operations. They fund pipelines and acquisitions from product sales, but depend on a few major franchises. The first numbers to compare across companies here are revenue by product and growth, pipeline stage and readouts and operating margin.
Key Industry Metrics
- Revenue by product and growth: Sales split by drug and the growth of each. Because a few franchises dominate, this shows which products carry results and which are fading.
- Pipeline stage and readouts: Candidates by development stage and the trial results expected. It indicates how well future launches can replace aging products.
- Operating margin: Share of revenue left after cost of goods, research and selling. Large biotechs fund heavy research, so margin reflects both product profit and R&D intensity.
- Free cash flow and capital return: Cash generated after capital spending and the portion paid out via dividends or buybacks. It shows how much is left to fund deals and returns beyond research.
- Patent expiry exposure: Share of revenue from drugs losing exclusivity soon. High exposure means new launches or acquisitions must fill the gap.
Primary Macro Drivers
- New drug launches: Approved new drugs offset older ones losing sales and drive revenue growth, so launch uptake is watched through revenue by product.
- Pricing and reimbursement: Government and insurer price decisions set net revenue per patient, which moves operating margin on major products.
- Acquisitions and licensing: Buying or licensing drugs fills gaps in the pipeline and adds revenue, though it also brings integration cost and debt.
- Clinical data: Trial results shape expected future sales and which programs get funded, so late-stage readouts affect value.
Major Risks
- Patent cliffs: When key patents expire, copies cut sales sharply; watch patent expiry exposure and replacement products.
- Pricing reform: Price negotiation, rebates and policy changes lower net price on major products; watch net price trends and policy proposals.
- Trial failures: A failed late-stage study removes expected sales and can cause write-downs; watch readout dates and impairment notes.
- Concentration in key products: A few top products make up much of sales, so a problem with one moves results; watch revenue by product.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Defensive |
| Capital Intensity | Medium |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Large-Cap Biotechnology Filers in the SEC Record
74 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 2836. Their latest fiscal years end between 2022 and 2026, and together they reported $92.6 billion of revenue. Median revenue growth over the prior year was 14.0%. Median operating margin was -274.6% and median net margin -212.3%. Median total liabilities were 39% of total assets, and 17 of 74 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Amgen Inc | $36.8 billion | 10.0% | 24.7% | 21.0% | FY 2025 |
| Gilead Sciences, Inc. | $29.4 billion | 2.4% | 34.0% | 28.9% | FY 2025 |
| Biogen Inc. | $9.9 billion | 2.2% | n/a | 13.1% | FY 2025 |
| Neurocrine Biosciences Inc | $2.9 billion | 21.4% | 21.6% | 16.7% | FY 2025 |
| Exelixis, Inc. | $2.3 billion | 7.0% | 37.6% | 33.7% | FY 2026 |
| Moderna, Inc. | $1.9 billion | -39.9% | -158.1% | -145.2% | FY 2025 |
| Halozyme Therapeutics, Inc. | $1.4 billion | 37.6% | 33.6% | 22.7% | FY 2025 |
| Bio-Techne Corp | $1.2 billion | 5.2% | 8.4% | 6.0% | FY 2025 |
The 8 largest of 74 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Large-Cap Biotechnology guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Large-Cap Biotechnology industry?
Key performance indicators for the Large-Cap Biotechnology industry include: Revenue by product and growth, Pipeline stage and readouts, Operating margin, Free cash flow and capital return, Patent expiry exposure. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Large-Cap Biotechnology industry?
The Large-Cap Biotechnology industry is generally defensive, meaning demand tends to remain relatively stable regardless of the economic cycle. Companies in this space can provide portfolio stability during recessions, though growth may lag in strong expansions.
What are the biggest risks in the Large-Cap Biotechnology industry?
The primary risks for Large-Cap Biotechnology companies include: Patent cliffs, Pricing reform, Trial failures, Concentration in key products. Investors should assess each company's exposure to these factors and its track record of navigating them.