The word "biotech" is often used interchangeably with "drug developer," but that's incorrect. Imprecise language impedes our ability to understand and analyze our world.

To be accurate and precise, "biotech" means using biology as technology. There are six major biotech sectors, including biopharma, industrial biotech, agricultural biotech, and environmental biotech. Biopharma is different from pharma. The former develops biologic drugs (enzymes, antibodies, nucleic acids, gene therapies, gene editors, vaccines, and so on) and the latter develops small molecule drugs (inhibitors, antivirals, peptides, radiopharmaceuticals, and so on).

Among all 152 blockbuster drug products in 2023, there was a near-even split between the number of biologics (78/152, 51%) and small molecules (74/152, 49%). However, 70% of the top 20 bestselling drugs globally (14/20) were biologics.

Biologics were responsible for 57% of total revenue from all blockbuster drugs, but that will change with the rise of drug products prescribed to treat obesity – including off-label use of type 2 diabetes medications. The trio of semaglutide brands from Novo Nordisk (Ozempic, Wegovy, and Ryvelsus) and the duo of tirzepatide brands from Eli Lilly (Mounjaro and Zepbound) utilize peptides, or short protein fragments, but are currently classified as small molecule drug products by regulators.