Forbes has released its sixth annual list of the "World’s Most Innovative Companies" which ranks companies on their creative disruption and innovation, as well as the amount of investor interest that they are able to garner. As a pre-requisite, these companies need to furnish financial records of the past seven years and have $10 billion in market capitalization.

“Companies are ranked by their innovation premium: the difference between their market capitalization and the net present value of cash flows from existing businesses (based on a proprietary algorithm from Credit Suisse HOLT). The difference between them is the bonus given by equity investors on the educated hunch that the company will continue to come up with profitable new growth,” Forbes said in its press release. Out of the top five names, three belong to life science and biotechnology while out of the top 10, they dominate with five entries. In terms of region, nine of the top 10 companies are U.S.-based while one is Indonesian. Here’s a look at the top five companies on this year’s list:

1) Tesla Motors Inc.

Tesla Motors Inc. (TSLA) tops the list of "The World’s Most Innovative Companies" for the second consecutive year. Founded in 2003, Tesla is a dominant player in the electric car segment and has challenged the superiority of gasoline-powered cars with its electric models. Tesla, under Elon Musk, has an equally strong number of critics and fans. Its revenue in FY2015 were $4.05 billion while it posted a loss of $888.66 million, primarily because of increased allocations towards research and development as well as sales, general and administration. It currently has a market capitalization of $33.10 billion and its shares are down 7.25% year-to-date. (For more, see: Tesla Stocks Higher Despite Production Fears.)

2) Inc. Inc. (CRM) came in second with its CEO Mark Benioff featuring on the magazine cover. Salesforce held the top slot on the list since the inception of the list in 2011, but was pushed down to the No. 2 spot by Tesla last year. Salesforce is a San Francisco-based cloud-computing company which lays special focus on customer relationship management, or CRM, among other enterprising cloud-computing solutions. The company was founded in 1999 and is known for “high-growth, above-market pay and lots of philanthropy.” Salesforce has been very active with acquisitions which helped the company grow faster by increasing its dimensions. Salesforce’s next big product called Einstein is an attempt to bring artificial intelligence to CRM. (For more, see: Salesforce to Acquire Quip Inc for $750 Million.)

3) Regeneron Pharmaceuticals Inc.

Tarrytown headquartered Regeneron Pharmaceuticals Inc. (REGN) founded in 1988 is No. 3 on the list of most innovative companies. With a vision that “brings innovative thinking to the challenge of discovering and developing new medicines,” Regeneron has developed some of the best medicines for eye diseases, colorectal cancer and a rare inflammatory condition, among other areas. The company posted a revenue of $4.10 billion during FY 2015 vis-à-vis $2.81 billion in FY 2014. It has assets worth $5.61 billion and declared a profit of $636 million in FY 2015, much above $338.12 million a year ago. It has a market capitalization of $42.67 billion and its shares are down by 25.35% year-to-date.

4) Incyte Corporation

Incyte Corporation (INCY) discovers, develops, formulates, manufacturers and commercializes propriety therapeutics to cater to the medical needs with a focus on oncology. Founded in 1991, the company is headquartered in Wilmington, Delaware, and has a market capitalization of $15.49 billion. The company engaged in multiple acquisitions and partnerships during the 1990s which helped it to gain prominence in the industry. Incyte’s revenue in FY 2015 was $753.75 million. The company was able to shrink its losses of $48.48 million in FY 2014 to enter the positive territory with a net income of $6.53 million. Its shares are down by 23.98% year-to-date.

5) Alexion Pharmaceuticals Inc.

At the fifth spot, we have yet another pharmaceutical company—Alexion Pharmaceuticals Inc. (ALXN). The company was founded in 1992 and is popular for its drug Soliris. In 2011, “Alexion responded to a historic public health crisis in Germany and provided Soliris without charge to hundreds of patients with life-threatening Shiga toxin E-coli-related hemolytic uremic syndrome (STEC-HUS).” The company has a market capitalization of $29.62 billion and its shares are down by 30.74% year-to-date. It posted a revenue of $2.6 billion in FY 2015 and a net income of $144.38 million. The company relocated its U.S. headquarters to New Haven, Connecticut in 2015.

The other names in the top 10 are Under Armour, Inc. (apparel, accessories & luxury Goods), Monster Beverage Corporation (soft drinks), Unilever Indonesia Tbk PT (household products), Vertex Pharmaceuticals Inc. (biotechnology) and Biomarin Pharmaceutical Inc. (biotechnology).