Market intelligence > Top ten global pharma

Top ten global pharma

Dr Vishal Agrawal, project manager, and Sunehli Jamwal, analyst, from GlobalData, highlight the top ten pharmaceutical companies by 2011 revenue.

Pfizer

Johnson & Johnson

US pharmaceutical giant Pfizer maintained its top position in 2011 with stipulated revenue of $67.4 billion, up by 1% compared with $67.1 billion in 2010. The companys new marketing strategy, coupled with focused organisational, financial and R&D restructuring efforts, compensated for the losses caused by Lipitors patent expiry. The approval of Xalkori for lung cancer, Inlyta and pneumococcal vaccine Prevnar 13 have proved to be a real lifeline for Pfizer. Moving ahead, the steady progress of the late-stage pipeline (with 22 projects in phase III and 11 under registration) will be a primary source of confidence for the company. The key strategy of the group is now to advance experimental drugs towards approval: these include Bosutinib, Tofacitinib, experimental clot-preventing drug Eliquis and its many pipeline drugs to make up for the inevitable decline in Lipitor revenue. With a view to reducing costs, Pfizers huge research budget has been cut by 12%. In 2012, Pfizer will focus on small to mid-sized deals and effective research partnerships to strengthen its portfolio in all therapeutic segments.

Johnson & Johnson (J&J) reported 2011 revenues of $65 billion, a 5.6% increase over 2010. In 2011, the company generated 40% of its revenue from its medical devices and diagnostics businesses, followed by 37% from pharmaceuticals and 23% from consumer healthcare. Domestic sales fell by 1.1% while international sales rose by 21.3%. The good results were due to the strong growth of recently launched pharmaceutical products Stelara, Zytiga, Invega, Sustenna and Simponi, and the steady momentum of new product approvals across all J&J businesses. Also contributing to operational sales growth were Prezista and Velcade. During 2011, J&J obtained several regulatory approvals for additional indications for Xarelto and Remicade (infliximab) and for Nucynta ER, an oral analgesic for moderate to severe chronic pain. The European Commission granted marketing authorisation for Edurant, Zytiga (abiraterone acetate) and Incivo (telaprevir), making J&J even more confident about its 2012 results. The company also announced an agreement with Pharmacyclics to jointly develop and market the BTK inhibitor PCI-32765 for the treatment of cancer.

Novartis

Bayer

Novartis reported revenues of $58.6 billion during the fiscal year ending December 2011, 16% up from 2010s figure. The companys pharmaceutical division received 15 major regulatory approvals in the US, EU and Japan in 2011, including new indications for: everolimus (Afinitor in the EU and Votubia in the US); breakthrough multiple sclerosis therapy Gilenya in Europe and Japan; Dailies Total 1, a daily disposable contact lens in the EU; and WaveLight EX500 Excimer Laser in the US. It has more than 130 projects in development. Novartiss diversification strategy resulted in the acquisition of eye care global leader Alcon. The acquisition of oncology laboratory Genoptix strengthened the molecular diagnostics unit, while the purchase of vaccines firm Zhejiang Tianyuan provided Novartis with an expanded presence in the Chinese market. 2011 was the beginning of patent expiry for Diovan in the European and US markets, which amounted to a drop of $4 billion. Novartis plans to offset this by discovering innovative medicines and vaccines, and by offering low-cost, high-quality generics in preventive care and treatment.

Bayer, which is managed by the Bayer Group, operates through three subgroups: Bayer HealthCare, Bayer CropScience and Bayer MaterialScience. In the third quarter of 2011, Bayer delivered 5% organic sales growth with higher earnings and improved margins. The first three quarters of 2011 generated $38.06 billion and Bayers fourth-quarter consensus estimates are in the range of $12.7 billion, to result in a projected total sales growth of $50.76 billion. Sales in Bayers pharmaceutical segment were flat, marking $3.76 billion in the third quarter of 2011; however, the companys pharmaceutical innovation pipeline delivered exciting clinical results and enjoyed a positive regulatory progress. At the end of 2011, Bayer HealthCare received approval of Xarelto (rivaroxaban) for the prevention of strokes in adult patients with atrial fibrillation and the treatment of deep-vein thrombosis. The companys late stage pharma pipeline includes 13 phase III products and three potential blockbuster drugs: alpharadin, regorafenib, and VEGF Trap-Eye to be launched in the near future.

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Market intelligence > Top ten global pharma

F Hoffmann-La Roche

Merck & Co

Switzerland-based F Hoffmann-La Roche (Roche) maintained its strategic focus on innovative diagnostics and therapeutics in 2011. The company displayed strong results and a positive outlook, with revenues of $48.09 billion. Sales increased by 2% at constant exchange rates, with pharmaceuticals up by 1% (excluding Tamiflu) in line with market growth. Diagnostic sales increased by 6%, reinforcing Roches position as the leading supplier of in vitro diagnostics. In 2011-12, the company obtained US approval of Zelboraf for the treatment of late-stage (metastatic) or unresectable melanoma, with its companion diagnostic test the cobas 4800 BRAF V600 Mutation Test, and Erivedge for basal cell carcinoma. Roche has made significant pipeline progress, with over 200 drug development projects and 14 projects in phase III.

US pharmaceutical firm Merck registered total revenue of $48 billion in 2011, an increase of 4% on 2010. Sales were driven by good performances from the diabetes and vaccine portfolio. Sales from the emerging markets accounted for approximately 18% of pharmaceutical sales, with China contributing the most with 37%, and the animal health and consumer health with 11%. In terms of product performance, Gardasil, Janumet, Januvia and Isentress ended with strong growth percentages. Mercks R&D portfolio consists of 20 candidates in phase III clinical trials and seven under review for approval. For 2012, the firm will see renewed pressure on its top line as its asthma and allergy drug Singulair goes off patent in August. Merck also has plans to seek approval for five products in 2012 and 2013.

Sanofi

GlaxoSmithKline

Sanofi, a global and diversified healthcare group, reported 2011 revenues of $46.5 billion, a rise of 3.2%, exhibiting core strengths in healthcare with six growth platforms. In 2011, these platforms and Genzyme comprised 65% of its total revenues. Sanofi is one of the biggest global vaccine manufacturers and engaged in extensive acquisitions, an integral part of its corporate strategy, with the biggest being US biotech Genzyme worth $20.1 billion. Sanofi has built a leaner pharma research organisation, leading the group to refocus on high-value projects and to reallocate resources to external partnerships. Its expansion in emerging markets will be a key growth driver, which will generate 38-40% of its sales in this area by 2015, compared with 29% in 2010.

GlaxoSmithKline (GSK) reported a group turnover decrease of 3% to $43.92 billion in 2011, but highlighted underlying sales growth of 4% as a result of targeting different markets. Sales in the US remained steady, but were down in the EU. Japan saw a 28% rise, emerging markets 15% and Asia Pacific 10%. GSKs consumer healthcare accounted for 5% of sales growth with revenues of $8.32 billion, strong increases in oral and nutritional healthcare, and flat OTC sales. Product approvals for Benlysta, Trobalt and Horizant in 2011 helped the company to grow internationally. It has 34 new medicines and vaccines in the phase III stage, and seven under new regulatory filings, which will help to cushion the company from global economic pressures.

Abbott

AstraZeneca

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US pharmaceutical firm Abbott saw revenue grow by 3.6% to $38.8 billion in 2011. In terms of contributions, nutritionals and proprietary pharmaceuticals registered higher growth due to the strong sale of Humira (adalimumab) for rheumatoid arthritis, which increased by 11% to $17.02 billion in 2011. New products across pharmaceuticals, medical, nutritionals and diagnostics are a key part of Abbots strategy. In an expanded collaboration with Reata Pharmaceuticals, it plans to develop and commercialise second-generation oral antioxidant inflammation modulators in therapeutic areas, including pulmonary, CNS and immunology. In 2012, Abbott will separate into two companies with distinct strategies: one in diversified medical products and the other in research-based pharmaceuticals.

AstraZenecas 2011 revenue performance fell by 2% at constant exchange rates to $33.6 billion, but was up 1% on an actual basis. In the second quarter, the company sold its Astra Tech dental and medical devices business to focus on its core pharmaceutical competencies. Its portfolio includes 86 projects, of which, 79 are in the clinical phase of development and seven are approved. There are ten projects in phase III and six under regulatory review. The year ahead will be challenging due to ongoing generic competition and the anticipated loss of market exclusivity for Seroquel IR and Atacand in global markets, and Crestor in Canada. Its R&D-based strategies include increased focus on neuroscience therapy and creating a virtual Neuroscience Innovative Medicines Unit.

TOp TEN pHARMA: IN fIgURES

1. 2. 3. 4. 5. Pfizer: $67.4 billion Johnson & Johnson: $65 billion Novartis: $58.6 billion Bayer: $50.76 billion F Hoffman-La Roche: $48.09 billion 6. Merck & Co: $48 billion 7. Sanofi: $46.5 billion 8. GlaxoSmithKline: $43.92 billion 9. Abbott: $38.8 billion 10. AstraZeneca: $33.6 billion

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