The pharmaceuticals market was estimated to be USD 1,114 billion in 2015 globally. The Market is highly consolidated. The top pharmaceutical companies had share of over 30% in market. These are very large companies located in U.S. and Europe. Moreover, these industries can be termed as power house of research and development. The R&D expenses of these companies outstrip the budget for life science in public sector.
An analysis for the top 10 organizations was used to develop ranking incorporating six criteria such as revenues, annual growth, contribution, and investment in R&D, revenue per employee, expanses and income.
The top ranked organization in the world is Johnson & Johnson (U.S.). The company generated highest revenue in 2015. 44.85% of its revenue was contributed by pharmaceuticals division in 2015. The company had the largest budget for R&D in 2015. One of the most important reasons for its high rank was the diversity of its product portfolio. The top 3 drugs for the company were Remicade, Zytiga and Stelara. The revenue generated in 2015 from these 3 products was USD 11,266 million.
Hoffmann-La Roche AG had revenue of USD 50,111 million in 2015. Its pharma segment contributed to 77.54% of its revenue. The company invested USD 9,972 million on R&D in 2015. However, the product portfolio of company is narrow. The top 3 drugs of company are Herceptin, Avastin and Rituxan in 2015. These drugs contributed to 50.53% of company’s revenue. All 3 products are related to oncology.
Standing on no.3 position, Pfizer Inc. had revenue of USD 48,851 million in 2015. The company invested USD 7,690 million on R&D in 2015. The top 3 drugs of the company gave revenue of 27.09%. Pfizar’s highest selling drug is Prevnar which helps company to maintain its market position. This company has a healthy product portfolio.
The revenue of Novartis was USD 49,414 million in 2015. The company had a budget of USD 8,935 million in R&D in 2015. Novartis AG has a diverse product offering and the top 3 drugs contributed 31.18% in 2015. The combined sales of Its top 3 product – Gilenya, Glivec and Lucentis was USD 9,494 million in 2015.
Holding the position of no. 6, the only German company is the list is Bayer AG. The revenue of these company was higher than those of Roche, Novartis and Pfizer, the revenue of its pharma segment was low i.e. USD 15,253 million in 2105.
Standing on no.6 is Merck & Co. having a total revenue of USD 39,498 million in 2015. The pharma division of company contributed to 88.06% of this figure in 2015. The R&D expense of company was USD 6,704 million in 2015, which is one of the highest of its revenue. However, the contribution of drugs to revenue was lowest for Merck i.e. 24.55% in 2015, second to the ratio fro GSK.
The first U.K based company in the list is GlaxoSmithKline plc. The total revenue of this company was USD 36,566 million in 2015. Glaxo invested USD 5,441 million on its R&D in 2015. The company was also having the lowest contribution from its top- 3 drugs – 21.50% in 2015.
The only French company to hold position top 10 is Sanofi. It was on of the two companies with positive growth rates. The revenue of company grew by 8.99% between 2014 and 2015 reaching USD 34,542 million in 2015. The expenses on R&D was USD 5,092 million in 2015. Its top 3 drugs – Lantus, Lovenox and Plavxi contributed only 29.06% to its revenue and the company is still expanding and diversifying its products.
The company with the highest growth rates in 2015 was Gilead Science, Inc. The company showed a growth of 31.13% between 2014 and 2015, reaching USD 32,639 million. The company’s expenses on R&D in 2015 was USD 3,014 million. Companies top 3 drugs – Hrvoni, Truvada and Sovaldi contributed USD 55.48% to the revenue. The ratio is too high among its peers in list. Moreover, the patent expiry is very long for all three products, which will help sustain the company.
The revenue of AstraZeneca plc was USD 23,641 million in 2015. The companies R&D expense was USD 5,997 million in 2015. The investment of company on R&D was highest among all companies compared to its revenue. Its top p3 drugs contributed 46.14% to its revenue in 2015.