5 Most Valuable Biotech Companies in the World

In this article we discuss the 5 most valuable biotech companies in the world. If you want to read our detailed analysis of the biotechnology industry, go directly to the 15 Most Valuable Biotech Companies in the World.

5. Novartis AG (NYSE: NVS)

Market Cap: $204.405 billion
Number of Hedge Fund Holders: 19

Novartis AG (NYSE: NVS) is one of the largest pharmaceutical companies in the world and is headquartered in Basel, Switzerland. The company is making use of innovative digital technologies to innovate novel treatments for rare diseases and has consistently ranked amongst the top companies in research and development in the world. The Swiss biotech giant’s products have reached over 800 million people around the world and the company has several innovative projects in its pipeline. Novartis AG (NYSE: NVS) reported total revenue of $49.89 billion in FY 2020 and is showing a lot of promise for investors. With a market cap of $204.405 billion, the company ranks fifth in the list of the 15 most valuable biotech companies in the world.

Oakmark Global Fund, in their Q4 2020 investor letter, mentioned Novartis AG (NYSE: NVS) and emphasized their views on the company. This is what they said:

“Novartis is one of Europe’s largest pharmaceutical companies and possesses a highly diversified portfolio of innovative products. Its share price underperformed both the broader market and its pharma peers during 2020, largely due to a few disappointing late-stage trials and the company’s lack of Covid-19-related therapeutics or vaccines. These short-term issues provided us with an attractive entry point to invest in a leading pharmaceutical franchise with compelling economics. We estimate that the market is currently ascribing almost no value to Novartis’ pipeline despite the company’s excellent track record in new drug development. We expect that Novartis will deliver mid-single-digit, top-line growth and expand margins over the next five years as a result of its cost-savings plan. The company possesses one of the most diversified product portfolios in the pharma industry with 15 $1b+ compounds, which reduces its reliance on any single compound.”