Nasdaq Honors National Biotechnology Month
National Biotechnology Month, celebrated in January, was first introduced by President Clinton in 2000 to recognize and prioritize the achievements and potential of this important field of science. Biotechnology focuses on techniques that use organisms or living systems to develop or make products. It overlaps with several other scientific disciplines, and its applications are both groundbreaking and life-altering. A significant amount of research concentrates on genetics (the study of individuals’ inherited genes), genomics (the study of mutations in genes) and gene therapies.
Prior to Clinton’s announcement, Nasdaq had already recognized the significant contribution biotechnology companies are making to improve healthcare outcomes. As such, we created the Nasdaq Biotechnology Index® (NBI®) in 1993 to measure the performance of securities listed on The Nasdaq Stock Exchange (Nasdaq) that are classified as either biotechnology or pharmaceutical companies. Currently, about 98% of all U.S. public biotechnology companies are listed on Nasdaq , and many of them are components of the NBI.
In honor of National Biotechnology Month, we’d like to highlight three companies in the NBI that have made huge contributions in the fight against COVID-19 and the treatment of other diseases.
Moderna
Founded in 2010, Cambridge, Massachusetts-based Moderna (Nasdaq: MRNA) is a leading developer of vaccines, using messenger ribonucleic acid (mRNA) technology. Along with BioNTech, which partnered with Pfizer, Moderna created one of the first – and the most effective – vaccines against COVID-19 in record time. As of October 2021, 250 million people globally had received its vaccine. In addition to COVID-19, Moderna’s product pipeline includes prophylactic vaccines, cancer vaccines, intratumoral immuno-oncology, localized regenerative therapeutics, systemic secreted therapeutics, and systemic intracellular therapeutics.
Moderna now has around 1,300 employees. The company’s fiscal year 2021 revenue is estimated at $17.4 billion, up 2,070% from 2020. Its current market capitalization is about $103 billion, and its weight in the NBI is 5.87%[1].
Regeneron Pharmaceuticals
Tarrytown, New York-based Regeneron Pharmaceuticals (Nasdaq: REGN) was founded in 1988. Its Regeneron Genetics Center® is a uniquely integrated research initiative that seeks to improve patient care by using genomic approaches to speed drug discovery and development. In early 2020, the Center began developing and testing hundreds of virus-neutralizing COVID-19 antibodies in genetically engineered mice. In June 2020, it combined the two most potent, complementary, and non-competing antibodies into a single cocktail for large-scale manufacturing and clinical trials (REGEN-COV). Regeneron’s other products target patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, hematologic conditions, infectious diseases, and rare diseases.
Regeneron Pharmaceuticals has around 9,100 employees. The company’s fiscal year 2021 revenue is estimated at $15.4 billion, up 218% from 2020. Its current market capitalization is about $66.8 billion, and its weight in the NBI is 5.39%.
Intellia Therapeutics
Founded in 2014, Intellia Therapeutics (Nasdaq: NTLA) is a clinical stage genome editing company also based in Cambridge, Massachusetts. It uses CRISPR technology, which was discovered in 2012, to develop therapeutics for treatment of cancers and immunological diseases by permanently editing and/or correcting disease-associated genes in the human body with a single course. In August 2021, researchers published results of a six-person clinical trial – the first of its kind – using Intellia’s drug technology to fix a genetic defect that causes a rare, fatal liver condition. Patients in the trial saw as much as a 90% reduction in faulty liver cells.
Intellia Therapeutics has about 300 employees. The company’s fiscal 2021 revenue is estimated at $29.6 million, up 80% from 2020. Its current market capitalization is around $8.8 billion, and its weight in the NBI is 0.71%.
Investing in Biotech Innovation
Going forward, traditional pharmaceutical companies, which focus on creating medicines from chemicals to treat various conditions, will continue to play a key role in healthcare. At the same time, true breakthrough innovations stemming from biotechnology research will likely save lives and improve outcomes for patients across the globe.
Investors may participate in any single biotechnology company’s future by purchasing their shares outright, or they can invest in an exchange-traded fund (ETF) that tracks the performance of several hundred companies in the NBI. ETFs are a popular way for investors to gain exposure to a portfolio of stocks without having to take positions on an individual basis. They’re convenient because they trade throughout the day, like stocks, and they’re often more cost effective compared to mutual funds. The Invesco Nasdaq Biotechnology ETF (Nasdaq: IBBQ) is based on the NBI, and the fund normally invests at least 90% 2of its total assets in the securities that comprise the index.
Kudos to all biotechnology companies for their remarkable advances over the past two decades, and to the investors who support them.
[1] Unless otherwise noted, all index and market data as of December 31, 2021.
[2] https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=IBBQ
Sources: Nasdaq, FactSet, Moderna, NPR, Harvard Gazette, Bloomberg, Regeneron, Popular Science, Intellia Therapeutics. Data as of 12/31/2021.
Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing.
ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED. © 2022. Nasdaq, Inc. All Rights Reserved.
[1] Unless otherwise noted, all index and market data as of December 31, 2021.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Nasdaq Biotechnology Index
With disruption in our DNA, we are home to today’s top and emerging biotech companies, helping them pioneer a better tomorrow.
Contact Us for More Information
Global Indexes