Jan 5, 2015

TOP 10: Innovative Pharma Companies to Watch in 2015

Medicine
Johnson & Johnson
Admin
3 min
The global pharmaceuticals market is worth $300 billion a year, a figure expected to rise to $400 billion within three years, according to the World Health Organization.
Pharmaceutical innovation was at its best in 2014 – the FDA approved a total of 44 drugs, 14 more than what was approved in 2013 and just nine...

Pharmaceutical innovation was at its best in 2014 – the FDA approved a total of 44 drugs, 14 more than what was approved in 2013 and just nine shy from tying the all-time high record of 53 approvals in 1996.

The outlook fueled enthusiasm for the pharmaceutical industry, filling investors with optimism about new medicines that are able to reach premium prices on the market.

The following ten pharma companies led 2014 with the highest total return investment rate, drug approvals and quarterly sales. Big things can be expected from them this year, as well. So keep an eye on them.

10. Johnson & Johnson

Total return: +17.3 percent

Market capitalization: $292 billion

Quarterly sales: $18 billion

New drug approvals: 1

Five-year return: +91.2 percent

Johnson & Johnson’s pharmaceutical business grew strongly due to the continued uptake in its current products. The company’s pharma revenues jumped by almost 17 percent in the first nine months of 2014, according to Forbes, while immunology drug sales increased 12.2 percent.

[READ MORE] TOP 10: Most Promising Drugs Guaranteed to Save Lives in 2015

9. AstraZeneca

Total return: +25.2 percent

Market capitalization: $89 billion

Quarterly sales: $6.5 billion

New drug approvals: 4

Five-year total return: 92.9 percent

AstraZeneca had more drug approvals from the FDA than any other company and its pipeline includes promising cancer and asthma drugs.

8. Merck

Total return: +16.9 percent

Market capitalization: $162 billion

Quarterly sales: $10.5 billion

New drug approvals: 3

Five-year total return: +89 percent

Merck’s melanoma drug Keytruda was approved by the FDA in 2014, which works by unlocking the immune system to attack tumors.

7. Novartis

Total return: +18.5 percent

Market capitalization: $224,118.3

Quarterly sales: $12.6 billion

New drug approvals: 2

Five-year total return: +100.1 percent

Novartis purchased GlaxoSmithKline’s cancer assets in 2014, continued investments in CAR-T therapy and continued to develop its heart failure drug LCZ696.

6. AbbVie

Total return: +28 percent

Market capitalization: $104 billion

Quarterly sales: $5 billion

New drug approvals: 1

AbbVie’s hepatitis C drug was released to the market in 2014 following the deal made with Express Scripts and excitement continues to build for its new cancer drug ABT-199.

5. Gilead Sciences

Total return: +25.5 percent

Market capitalization: $142 billion

Quarterly sales: $6 billion

New drug approvals: 2

Five-year total return: +335.7 percent

Gilead Sciences launched hepatitis C drug Sovaldi last year and Gilead offers a strong pipeline for the coming year.

4. Eli Lilly

Total return: 39.8 percent

Market capitalization: $77 billion

Quarterly sales: $4.9 billion

New drug approvals: 3

Five-year total return: 141.7 percent

Eli Lilly received FDA approval for its gastric cancer drug Cyramza and made inroads back into its traditional stronghold of diabetes.

3. Amgen

Total return: +42.3 percent

Market capitalization: $121 billion

Quarterly sales: $5 billion

New drug approvals: 1

Five-year return: 201 percent

Amgen’s biggest win was clinical data which supported the usefulness of Kyprolis, the multiple melanoma drug Amgen acquired when it bought Onyx Pharmaceuticals for $10 billion.

[READ MORE] TOP 10: Research Companies on the Forefront of HIV/AIDS Eradication

2. Celgene

Total return: +32.4 percent

Market capitalization: $89 billion

Quarterly sales: $1.98 billion

New drug approvals: 1

Five-year total return: +301.8 percent

Celgene has a lot of potential in the cancer drug development field. According to Bernstein Research, the patents for multiple myeloma drug Revlimid will hold until 2026.

1. Actavis

Total return: +53.2 percent

Market capitalization: $68 billion

Quarterly sales: $2.8 billion

New drug approvals: 1

Five-year total return: 549.9 percent

In 2014, Actavis spent $25 billion to buy Forest Laboratories and later announced plans to buy Botox-maker Allergan for $66 billion. Chief executive Brent Saunders is calling this trend “growth pharma,” where generic drug-making is being combined with creating franchises of valuable pharma brands.

While rising innovation is helping restore the industry fortunes, it also suggests that we are far from running out of innovation.

Statistics sourced via Forbes and Factset Systems. 

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Dec 10, 2018

Top 10 healthcare innovations for 2019

Telemedicine
medical devices
Top 10
Genetics
Catherine Sturman
6 min
healthcare innovations
We take a look at some of the top 10 healthcare innovations which are transforming the sector

We take a look at some of the top 10 healthcare innovations which are transforming the sector

10. Telehealth

The telehealth market is booming. Consumers are leading increasingly busy lifestyles, with up to 60% favouring digitally-led services. Providing clinical care at a distance, increasing accessibility and eradicating potential delays has given patients greater control, boosting patient satisfaction and overall engagement. Such is its exponential growth, The Centers for Medicare and Medicaid Services in the US has recently released its proposed Physician Fee Schedule and Qualified Payment Programme updates for 2019, where telehealth services has been heavily featured, in order to deliver ‘different access points’ for patients.  

9. Mobile technology

Consumers have become accustomed to accessing their data through the use of various digital tools, where the use of mobile and tablet health apps has tripled from 13% in 2014 to 48% today. Catering to this growing market, British based start-up Babylon Health is making waves on a global scale. Partnering with the National Health Service (NHS) and private health provider, Bupa, it has also cemented its presence across the flourishing Chinese market, with a membership base exceeding 1.4mn citizens across Europe, Asia and Africa. By partnering with global juggernaut Tencent, Babylon’s artificial intelligence system has enabled both parties to interact directly with users, identify specific illnesses, deliver health status assessments, and triage necessary actions. The mobile app is available to over a billion users and linked to more than 38,000 medical facilities in China alone.

8. Artificial intelligence 

Artificial intelligence (AI) applications, such as predictive analytics for patient monitoring has provided significant financial savings. Applications that target hospitals and medical institutions include patient monitoring and transcribing notes for electronic health records (EHRs). The European Union is set to invest $24bn into artificial intelligence (AI) by 2020 in a bid to catch up with Asia and the US, who have invested heavily in AI and cloud services. This year, Google revealed its plans to harness AI and machine learning across a multitude of consumer technologies, particularly in healthcare. “If AI can shape healthcare, it has to work through the regulations of healthcare. In fact, I see that as one of the biggest areas where the benefits will play out for the next 10-20 years,” Google CEO Sundar Pichai has previously stated.

7. Blockchain

Blockchain is estimated to reach over $5.61bn by the end of 2025, even though it remains dependent on the ability to record and store information conveniently, economically and securely amongst different applications and systems. Providing transparency and eliminating third-party intermediaries, processes are streamlined, reducing healthcare costs exponentially. Unlocking the ability for providers to deliver a value-based healthcare system and enhance patient engagement, blockchain could save the industry up to $100-$150bn per year by 2025 in data breach-related costs, IT costs, operations costs, support function costs and personnel costs, according to BIS Research. Partnering with pharmaceutical giant GlaxoSmithKline (GSK), Ethereum blockchain-based supply chain platform, Viant sought to accelerate the pace of blockchain-based supply chain systems. Accenture and supply chain giant DHL have also developed a blockchain-based serialisation prototype which tracks pharmaceuticals from the point of origin to the consumer.

6. Health wearables

With the rise of lifestyle diseases, such as diabetes, more consumers are turning to health wearables that monitor glucose, heart rate, physical activity and sleep to gain a greater understanding of their health conditions. Following on from the release of the first Bluetooth headset back in 2000, the growing interest in wearables has seen monitoring our health and data become standardised. This data can be analysed by sophisticated algorithms to drive long-term diagnosis and support. Partnering with Google, health wearables company Fitbit is exploring the development of consumer and enterprise health solutions. Its acquisition of HIPAA-compliant health platform, Twine Health has seen the business enhance its clinical services by bringing on board a coaching platform, empowering people to seek better health outcomes.

See also

5. Electronic health records tools

From 2018-2022, the electronic health records (EHR) market is expected to grow at a compound average rate of 6% per year Providers and organisations continue to house fragmented technologies which create barriers towards collaboration and data sharing opportunities. This is further exacerbated if a patient straddles both public and private healthcare. Technology giant Apple has integrated patients’ medical records into its Health App as part of its iOS 11.3 beta. The data is encrypted and protected with the user’s iPhone passcode. Partnering with hospital providers and clinics, patients are now able to view their medical records from multiple providers within one platform. Johns Hopkins Medicine, Cedars-Sinai, Penn Medicine, UC San Diego Health and even the Cleveland Clinic have implemented this technology.

4. Healthcare transportation 

Non-emergency health transportation remains a key issue worldwide, preventing patients from getting to or from a doctor’s appointment. 25% of lower-income patients have missed or rescheduled appointments due to lack of transportation, costing US health systems up to $150bn each year. Transportation companies such as Lyft and Uber have therefore entered the market by partnering with state governments to reduce these costs and deliver personalised patient care.

3. 3D Printing 

Healthcare providers are set to represent the second largest industry sector in 3D manufacturing. The Food & Drug Administration’s decision to release its first comprehensive framework advising manufacturers of 3D medical products highlights its growing impact where more than 100,000 knee replacement surgeries are completed each year using 3D-printed, patient-matched surgical guides, for example. Through this process, surfaces and structures can be optimised for strength, weight and material use. Consultation between surgeons and patients has also been bolstered, where patients can better understand the complexity of his or her specific needs.

2. Genomics

As consumers get more involved in the management of their health, consumer genetics and research companies have grown in popularity and scale. People want to further understand their genetic makeup, leading personal genomics and biotech company 23andMe to become one of the largest consumer-based organisations worldwide. Interestingly, this year, the company has entered a four-year collaboration with GSK to develop new treatments, but using human genetics as the basis for discovery.

Not only looking to develop treatments by analysing human genetics, pharmaceutical companies are looking to even remove hereditary genes which pass diseases down generations. In 2017, human embryos were successfully ‘edited’ through gene editing tool, CRISPR (Clustered, Regularly Interspaced, Short Palindromic Repeats), eradicating hypertrophic cardiomyopathy within 42 embryos.

1. Vertical integrations

As healthcare providers aim to provide greater transparency, promote collaboration and lower escalating patient costs, 2018 has been the year for a significant number of vertical integrations. CVS Health’s $68mn takeover of health insurer Aetna is a case in point. By influencing more of the supply chain, it will gain significant negotiating power to reduce costs for payers and patients, develop personalised solutions and improve overall outcomes. It will also promote the eradication of delays in process by removing any third parties within traditional business models. Other notable integrations are Optum’s acquisition of the DaVita Medical GroupHumana and Kindred Healthcare and Cigna and Express Scripts.

Reports have indicated that not only has the number of healthcare deals more than doubled in the last five years, the size of deals has also grown as a result of repeat investor interest, highlighting that this trend is here to stay.

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