Futuristic biotech lab with DNA hockey stick.

Biotech's Second Wind: How Innovation Keeps the Industry Growing

Reese Marlowe in Business & Economy December 2025 • 4 min read.

"Despite acquisitions and market shifts, biotech continues to thrive thanks to ongoing innovation and strategic realignments."

In modern biotech history, since the late 20th century, there have been two significant periods of rapid growth. The first occurred from 1990 to 2005. Data from annual reports showed that the top 10 U.S. biopharmaceutical companies increased their total revenues from $1.1 billion in 1990 to $32 billion in 2005. This dramatic increase resembled the steep rise of a hockey stick’s blade.

This growth was especially remarkable because the leading biopharma companies continually changed due to acquisitions by larger pharmaceutical firms. Only five of the top ten companies from 1990 remained in the top ten by 2005, and just two of them, Amgen and Biogen, were still in the top ten in 2014.

In August 2013, an article noted that in 2012, the top ten U.S. biopharma companies reported $44 billion in total revenues and $11 billion in net income. These figures represented increases of 38% and 77%, respectively, compared to the $32 billion in revenues and $6.2 billion in net income reported in 2005.

The Ongoing Reshaping of Biotech Leadership

Futuristic biotech lab with DNA hockey stick.

While the $12 billion revenue increase from 2005 to 2012 is significant, it's smaller than the $22 billion increase from 2000 to 2005. This difference is largely due to Roche's acquisition of Genentech in 2009 and Sanofi-Aventis' acquisition of Genzyme in 2011. The combined revenues of Genentech in 2008 and Genzyme in 2010 exceeded $17 billion. If these companies had remained independent and maintained their 2012 revenues, the net increase in the top ten's annual revenues from 2005 to 2012 would have been $28 billion.

By 2014, the top ten companies reported total revenues of $71 billion and a net income of $23 billion, 61% and 109% greater, respectively, than in 2012. The revenue curve from 2005 to 2014 once again resembles the shape of a hockey stick, indicating strong growth.

Strategic Acquisitions: The acquisition of key players like Genentech and Genzyme reshaped the landscape.
Revenue Growth: Despite these changes, the top companies continued to increase their financial performance.
Market Dynamics: Continuous shifts in company rankings reflect the dynamic nature of the biotech industry.

Interestingly, only four of the top ten companies from 2005 remained in the top ten in 2012, as the other six were acquired by big pharma. These four—Amgen, Biogen, Gilead Sciences, and Celgene—were still in the top ten in 2014, although their rankings changed. In 2005, they were ranked first, fourth, fifth, and tenth, respectively. By 2012, the rankings shifted to first, second, third, and fourth. In 2014, Biogen and Celgene maintained their positions, but Gilead Sciences surpassed Amgen to become the largest biopharma company. This was because Gilead’s hepatitis C virus treatment had not yet impacted the market in 2012 but generated $12.4 billion in revenues by 2014.

The Future of Biotech: Innovation and Adaptation

The biotech industry is constantly evolving. Companies like Cubist Pharmaceuticals, ViroPharma, Auxilium Pharmaceuticals, and Onyx Pharmaceuticals, which were top contenders in 2012, have since been acquired by larger entities. However, new companies like Emergent BioSolutions, Acorda Therapeutics, and Seattle Genetics have risen to take their place, demonstrating the industry’s resilience and potential for growth. With ongoing advancements in therapies and development processes, the biotech industry is poised to continue its upward trajectory.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1089/gen.35.10.03, Alternate LINK

Title: Biotech And The Hockey Stick

Subject: Management of Technology and Innovation

Journal: Genetic Engineering & Biotechnology News

Publisher: Mary Ann Liebert Inc

Authors: J. Leslie Glick

Published: 2015-05-15

Everything You Need To Know

How has the biopharmaceutical industry's revenue grown over time?

The biopharmaceutical industry has experienced significant revenue growth, particularly during two key periods. The first major growth phase occurred from 1990 to 2005, marked by a substantial increase in total revenues among the top 10 U.S. companies. A second phase occurred between 2005 and 2014. Despite strategic acquisitions, like Roche's acquisition of Genentech and Sanofi-Aventis' acquisition of Genzyme, which temporarily impacted the growth rate, the industry demonstrated resilience and continued to expand. This growth signifies the industry's capacity to innovate and adapt, driving financial success.

What impact do strategic acquisitions have on the biopharmaceutical industry?

Strategic acquisitions play a crucial role in reshaping the biopharmaceutical landscape. For example, Roche's acquisition of Genentech and Sanofi-Aventis' acquisition of Genzyme significantly altered the composition of the top biopharma companies. These acquisitions can lead to a consolidation of resources, expertise, and market share, influencing the overall dynamics of the industry. While they might initially slow down revenue growth for the top tier, they also pave the way for new companies to emerge and fill the gaps, showcasing the industry's fluidity.

What factors contribute to the ongoing reshaping of leadership within the biopharmaceutical industry?

Several factors contribute to the continuous reshaping of leadership within the biopharmaceutical industry. Strategic acquisitions frequently result in shifts in company rankings. The rise of companies like Gilead Sciences, driven by the success of its hepatitis C virus treatment, demonstrates how innovative therapies can propel companies to the forefront. Furthermore, the dynamic nature of the market, with new companies emerging and established ones being acquired, ensures that leadership is constantly being redefined.

What does the 'hockey stick' revenue curve indicate about the biopharmaceutical industry?

The hockey stick revenue curve illustrates the rapid growth experienced by the biopharmaceutical industry during specific periods. The steep rise in revenues between 1990 and 2005, and again from 2005 to 2014, resembles the blade of a hockey stick, indicating exponential growth. This pattern reflects the industry's ability to generate significant financial gains through innovation, strategic adaptations, and market expansion. The hockey stick shape did flatten between 2005-2012 due to major strategic acquisitions.

Why are innovation and adaptation important for the biopharmaceutical industry's future?

Innovation and adaptation are vital for the biopharmaceutical industry's sustained success and are key drivers of resilience and future growth. The emergence of new companies, such as Emergent BioSolutions, Acorda Therapeutics, and Seattle Genetics, demonstrates the industry's capacity to evolve and capitalize on new opportunities. Continuous advancements in therapies and development processes enable the industry to address unmet medical needs, expand its market reach, and maintain its upward trajectory. Strategic acquisitions and market dynamics also contributes to it's success.