According to IBISWorld, revenue of global biotechnology companies will surge to $262 billion this year, up by 12.7%, year-over-year. This growth is due to rising research and development of new drugs, along with well-established production, commercialization, and distribution processes.
Here are three biotech companies that are developing new drugs, which have potential to provide upside to each company in the future. Will this potential translate into any interesting investment opportunities?
New blockbuster drug in the making
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is developing its new drug, “Pimavanserin”, which is used for the treatment of Parkinson’s disease psychosis, or PDP. This disease is the second most common neurological disease after Alzheimer’s disease psychosis, or ADP. There are around 500,000 patients in the U.S. suffering from this disease. The company will file an application with the U.S. FDA for the drug’s approval in the second half of next fiscal year and will launch it in 2015. Pimavanserin is expected to generate revenue of $108 million in 2015 from U.S. PDP patients and will reach peak sales of $348 million in 2018.
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is also testing Pimavanserin for the treatment of Alzheimer’s disease psychosis, or ADP. The company will initiate a level two feasibility trial in the second half of this year and invest around $28 million this year in trials. There are around 5.4 million Americans suffering from Alzheimer’s, and psychosis develops in 50% of cases, providing a huge potential market. The company expects to achieve revenue of $27 million from treating ADP in 2017, which will peak at $546.4 million in 2022.
New drugs for cancer treatment
Celldex Therapeutics, Inc. (NASDAQ:CLDX)‘s new drug “Rindopepimut” showed positive results in treating patients suffering from glioblastoma multiforme, a form of brain cancer. This vaccine is also known as CDX-110.
It is a promising drug, as the overall survival rate of patients using it increased from 12-16 months, to 20-22 months in the preliminary result. Celldex Therapeutics, Inc. (NASDAQ:CLDX) will conduct further clinical trials in phase three, and it plans to launch Rindopepimut by 2016 in the U.S. The drug will generate revenue around $119 million by 2016.
Additionally, Celldex Therapeutics, Inc. (NASDAQ:CLDX) is developing Conjugate, or CDX 011, which will be used in the treatment of breast cancer, more specifically to target Glycoprotein non-metastatic b, or GPNMB, which is a gene associated with triple-negative breast cancer, or TNBC. The company has completed two phases with the drug so far, and CDX 011 achieved a response rate of around 32%. There are around 9,000 patients with high GPNMB triple-negative breast cancer. Celldex Therapeutics, Inc. (NASDAQ:CLDX)will initiate the pivotal studies on in the second half of this year. It anticipates initial sales from the drug will be around $24 million in the U.S. in 2016 and reach peak sales of $534 million in the coming years.
Promising drug pipeline
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) achieved positive results for its new drug, ALN-TTR02, which is used in the treatment of TTR-mediated amyloidosis, or ATTR. Mutation in the TTR gene, which is predominantly found in the liver, causes ATTR.