Biotechnology Industry Financials

The technology sector in the US consists of almost 100,000 companies with combined annual revenues of about $800 billion. Although much of the industry revenue is concentrated in large companies like IBM, GE, Microsoft, Motorola, and Intel, the average tech company has annual revenue under $10 million. Industry concentration is high in many subsectors: the largest 50 participants often holding more than 60 percent of the market.

The healthcare industry in the US produces annual health spending of about $2 trillion. Goods and services are provided by manufacturers of drugs, medical devices, and other supplies, with combined annual revenue of $300 billion, and by care providers (hospitals, clinics, doctors offices, nursing homes) with combined annual revenue of $1.5 trillion. Much of the cost is funded by private health insurers with annual spending of $700 billion, and government health insurance programs like Medicare and Medicaid, with combined annual payments of $1 trillion. The industry is highly fragmented.

The US biotechnology industry includes about 1,000 companies, with combined annual revenue close to $50 billion. Large companies include Amgen, Monsanto, Genentech, Applera, Genzyme, and Biogen. Because many drugs are now developed using biotechnology, the biotechnology and pharmaceutical industries overlap considerably. The industry consists of a few very large companies and many very small ones, and is fragmented by type of product. Most companies have annual sales under $50 million.

Using the 2002 Census Bureau Economic Census, Hoover's has generated an industry financial summary for the Biotechnology industry.