The 4 Biggest Biotech Stocks In The Market

When the market gets a little sketchy, investors might tend to prefer the “blue chip” companies vs. the smaller companies due to the perceived safety in the bigger names.

To isolate those bigger names, the most common method is by searching for companies with the largest market capitalization (market cap).

Market cap is defined as the total dollar market value of all of a company's outstanding shares. Market cap is calculated by multiplying a company's shares outstanding by the current market price of one share.

As most investors know, biotechnology stocks have been hot. However, if the market’s recent weakness continues, investors that want to stay with the industry may want to migrate out of the smaller cap biotech names and into the larger caps.

Below is the list of the 4 biggest biotech stocks going.

Coming in as the 4th biggest biotech would be Celgene Corp (NASDAQ: CELG).

Celgene’s market cap currently sits near $94 billion, which is miles ahead of the #5 biotech on our list – Regeneron Pharmaceuticals (NASDAQ: REGN).

The 3rd largest biotech company as measured by its market cap is Biogen Idec, Inc. (NASDAQ: BIIB).

Biogen, with a market cap of $98 billion, just barely edged out Celgene. Biogen also hit a new high as recently as Thursday of last week.

The 2nd place spot goes to Amgen, Inc (NASDAQ: AMGN).

Even with a market cap of $117 billion, Amgen’s size falls way short of the #1 stock on our list. In addition, Amgen appears to have been trending lower since its December peak.

Speaking of the #1 biotech stock, it’s probably not a surprise to those in tune with the biotech world that the top on our list is Gilead Sciences, Inc. (NASDAQ: GILD).

Gilead’s market cap comes in at a whopping $151 billion. If large cap biotech is what investors are looking for, it doesn’t get any bigger than Gilead.

Gilead closed yesterday at $101.37/share.

Obviously, investors must conduct their own due diligence before investing in any stock, but large cap stocks could insulate investors from market weakness better than their small cap counterparts.

The biotech stocks considered for this review were confined to those over $10 per share that traded at least 500K shares a day based on a 90-day average.

Posted to The Biotech Trader on Mar 10, 2015 — 9:03 AM
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