All biotech companies – Gilead (GILD), Amgen (AMGN), Biogen Idec (BIIB) and Celgene (CELG), in past year, have given a positive return and hence increased the interest of biotech investors. These companies have been able to select therapy/niche indication where the high treatment cost justifies the need. While large pharma companies are active in M&A deals, the Mature biotech companies are sticking to its core expertise and venturing into unexplored/new therapy; e.g., GILD in anti-cancer and BIIB for hemophilia. Alike small molecule generics, biosimilar will also get easier and getting similar pace of recognition in coming years; where AMGN, BIIB already started investing in this space and can emerge as a big player in coming years.

REGN, ALXN, and VRTX have transformed into a large-cap mature biotech companies. Whether these three will be acquired or will remain independent and evolve in next giant is still a question, but both the cases present a good investment opportunity for those who willing to hold them for next five years.

GILD has announced the dividend payment and now all eyes will be on CELG and BIIB