The graph below was produced by Capital Market Labs.
The health care sector and the biotechnology industry, in particular, have been substantial out-performers in this extended bull market run.
While investors have seen many “nano-biotechs” disappear with failed drugs and FDA panel results, others have boomed from the nano-world to the large-cap world.
Who’s next?
In biotechnology, it starts with an idea and then a product. Together, that means Research & Development.
The chart below displays all of the biotech companies in North America below $1 billion in market cap (x-axis), and their R&D expenses per $1 of operating expense (y-axis).
Of particular interest are the firms spending more than $0.50 out of every $1 in operating expense on R&D.
Synergy Pharmaceuticals Inc SGYP, Radius Health Inc RDUS and Argos Therapeutics Inc ARGS are a few of the biggest spenders (on a percentage basis).
Ophir Gottlieb can be found on Twitter @ophirgottlieb.
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