5 Most Profitable Biotech Companies in the World

4. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Net Income (TTM): $20.87 billion

Johnson & Johnson (NYSE:JNJ) is a pharmaceutical giant that features next on our list of the most profitable biotech companies. The New Jersey-based company offers products through three segments: Consumer Products, Medical Devices, and Pharmaceutical. The pharmaceutical products include treatments for neuroscience, oncology, pulmonary hypertension, and cardiovascular and metabolic diseases, as well as immunology and infectious diseases.

In March, The New York Times reported that although once dismissed as less effective than Pfizer’s and Moderna’s Covid vaccine, Johnson & Johnson’s (NYSE:JNJ) Covid vaccine seems to be preventing infections and illness just as good as its competitors, with recent data suggesting that “punches above its weight for a single-dose vaccine.” In 2021, the firm was awarded a contract by the US government to provide 100 million doses of its single-shot Covid vaccine.

In 2020, Johnson & Johnson (NYSE: JNJ) acquired Momenta Pharmaceuticals, which deals in the discovery and development of novel therapies for immune-mediated diseases. This $6.5 billion deal will expand Johnson & Johnson’s (NYSE: JNJ) biotech portfolio in the field of autoimmune disorder treatments.

Johnson & Johnson (NYSE: JNJ) reported a revenue of $93.77 billion for 2021, increasing 13.55% from its revenue of $82.58 billion for 2020. Fundsmith LLP held 7.21 million shares worth $1.23 billion in Johnson & Johnson (NYSE: JNJ) over the fourth quarter, making it the largest shareholder of the firm.

Distillate Capital, an investment firm, talked about Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. The fund said:

“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”