40 PHARMACEUTICAL EXECUTIVE PHARMACEUTICAL EXECUTIVE

12 TH ANNUAL PHARM EXEC 50

STORMS
Will the recent wave of megamergers and a slow revival of biotech nancing be enough to counter a looming storm surge of patent expirations? US health reform is the next big game-changer, as companies seek a balance between earning prots and placating a restive new breed of payers and the ever-expectant patient
By Jerry Cacciotti and Patrick Clinton

between two

The

Lull
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MAY 2011 www.pharmexec.com

41

Revenue Distribution of Top 50

10%

8%

Top 10 accounts for $352.5 billion in sales, which is 59.40% of total revenues of the Top 50 Top 20 accounts for $483.8 billion in sales, which is 81.53% of total revenues of the Top 50
* Figures are rounded

6%

4%

2%

0%

he Pharm Exec 50 ranks the worlds largest pharmaceutical companies by global sales of prescription drugsa key indicator of market change. After last years storm of activity, the 50 set a more placid pace, as major players worked on integrating blockbuster mergers and licked their wounds after the latest round of Phase III failures. Late-phase problems are nothing new, and drug candidates can come back from them, but there was something particularly heartbreaking about the recent crop of dead ends, given the huge unmet medical need associated with these therapies: P zers Dimebon and Lillys Semagacestat for Alzheimers, Mercks vicriviroc for HIV, and Roches ocrelizumab for rheumatoid arthritis, to name just a few. Change was most visible on the macro level. The list of the top 10 companies was shaken up a bit, with Novartis passing Sano -Aventis to move into second place, and Merck jumping from seventh to fourth. It was also the rst year the top company crossed the $50 billion mark in sales of prescrip-

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P z N n o ov a er - Av r t is en M e t is G la rc xo S m Ro c k Jo it h he hn A st r K s o a Z li n e n & en Jo ec a hn s Br is t E li o n ol L My A b ill y er s b S q ot t ui b b Te A m va Bo ge eh Ba n r in ge Ta yer r k N o I n gel e d a vo h e N o im r di Da ii c A s t e s k hi S a ll a s nk yo Me E B a G il e a r c k is a i x te d KG r In S ci a A ter e n c na es t io n M y al S e lan Mi rv t su b is C h i e r hi u g a Ta i M e nab e n G e ar in nz i A ll y m e er g F o an r es t CS L U O t CB s C e uka B io l g ge e n e nI de Sh c Wa r n e A ir e r C lcon h C e il c o t ph t a W lo n K D a yow a L u n a t s o n ini p p H ak d b e c o n ko k S u K ir mi in to m Sh io n o Ac ogi t H o av is N y sp ir co a m Ap ed ot S t ex ad a Sa

P Novartis Roche Sano -Aventis zer Merck GlaxoSmithKline Lilly Teva Bayer JohnsonBristol-MyersAmgen NovoIngelheim Baxter International Menarini Forest UCBCelgene Warner Chilcott Hakko Kirin Nycomed AstraZeneca & Johnson Squibb Eli Abbott Boehringer Daiichi Merck KGaAMylanChugai Genzyme CSL Otsuka Shire Cephalon Takeda AstellasEisai Sciences Nordisk Gilead Sankyo Servier Mitsubishi Tanabe Allergan Biogen Idec Alcon Watson Kyowa LundbeckShionogi Dainippon Sumitomo Apotex Actavis Hospira Stada

tion drugsas P zer, fueled by its acquisition of Wyeth, grew from $45.4 billion in Rx sales to $58.5 billion. Meanwhile, consolidation in the ranks continues to place a premium on size and scale: This was the rst year that it took $2 billion in Rx revenues to join the 50. As recently as 10 years ago, you could make the list with revenues of only $500 million. Overall, the 50 accounted for $593.4 billion in human prescription drug sales in 2010. That represents an increase of nearly 8 percent from 2009, when the total was $550.5 billion. But among the top 10, there was slightly better growth. This years group grew its Rx revenues from $319.4 billion in scal 2009 to $352.5 last yearan increase of over 10 percent. A good percentage of that growth was fueled by mergers and acquisitions. In addition to P zer and its 29 percent increase, big gainers included Merck (58 percent growth after its merger with Schering Plough) and Abbott (up nearly 28 percent in the wake of its acquisitions of Solvay and Pira-

mal). But the biggest single-year bump came at a much smaller company: The Irish rm Warner Chilcott last year acquired the pharmaceutical business of Procter & Gamble, including the billion-dollar drug Actonel, and raised its Rx revenues a whopping 111 percent to $2.9 billion. Looming over the yearand the decadeis the shadow of US healthcare reform. Many in pharma feel they have dodged the bullet of new regulation and stand to gain as a projected 30 million previously uninsured Americans nally obtain insurance coverage for healthcare. But the Patient Protection and Affordable Care Act is not the end of the discussionits more like the beginning of an avalanche. The economic forces it sets in motion today will be playing out for payers, patients, providers, and pharma for the foreseeable future, changing the way care is delivered and paid for, creating numerous business threats, but, with luck, ending up with the possibility of getting a better alignment between helping the patient and earning a pro t.

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42

PHARMACEUTICAL EXECUTIVE

2011 Rank

Company HQ [website]

2010 Rx Sales

(USD billions) [% change from 2009]

2010 R&D spend

(USD millions)

2010 Top-Selling Drugs

[USD billions]

1 2 3 4 5 6 7 8 9 10

Pfizer

New York, New York [pfizer.com]

$58.5

[28.9%]

$9,413

Lipitor [10.7] Enbrel [3.3] Lyrica [3.1]

Novartis

Basel, Switzerland [novartis.com]

$42.0

[9.2%]

$7,100

Diovan/Co-Diovan [6.1] Gleevec/Glivec [4.3] Lucentis [1.5]

Sanofi-Aventis
Paris, France

[sanofi-aventis.com]

$40.3

[4.1%]

$5,147

Lantus [4.7] Lovenox [3.7] Taxotere [2.8]

Merck

Whitehouse Station, New Jersey [merck.com]

$39.8

[58.0%]

$11,000

Singulair [5.0] Remicade [2.7] Januvia [2.4]

Roche

Basel, Switzerland [roche.com]

$39.1

[4.1%]

$8,612

Avastin [6.8] MabThera/Rituxan [6.7] Herceptin [5.7]

GlaxoSmithKline

Brentford, England [gsk.com]

$36.2

[4.2%]

$6,126

Seretide/Advair [7.9] Pandemic Flu Vaccine [1.8] Flixotide/Flovent [1.2]

AstraZeneca

London, England [astrazeneca.com]

$33.3

[1.4%]

$4,200

Crestor [5.7] Nexium [5.0] Seroquel [4.1]

Johnson & Johnson

New Brunswick, New Jersey [jnj.com]

$22.4

[0.4%]

$4,432

Remicade [4.6] Procrit [1.9] Risperdal [1.5]

Eli Lilly

Indianapolis, Indiana [lilly.com]

$21.1

[5.4%]

$4,880

Zyprexa [5.0] Cymbalta [3.5] Alimta [2.2]

Abbott

Abbott Park, Illinois [abbott.com]

$19.9

[27.7%]

$3,724

Humira [6.5] Trilipix/TriCor [1.6] Kaletra [1.3]

Sources: corporate data (10Ks, annual reports, etc.) and Pharm Exec estimates

N/A = Not Available/Not Applicable * Estimate Figures are rounded

How the listings were compiled: Companies in the Pharm Exec 50 are ranked according to global human prescription drug sales. As far as company documentation allows, generics and vaccines are included; over-the-counter products, royalties, and contract manufacturing revenue are not. In most cases, numbers are taken from annual reports or SEC filings for the fiscal year that ended in 2010. For most American and European companies, that means the year ending Dec. 31, 2010; for many Japanese companies, it means the year ending March 31, 2010. In the case of private companies that do not report results, we have made estimates based on available data, including IMS reports. For companies that report in currencies other than US dollars, we have converted their numbers using the midpoint average interbank rate for the last day of the fiscal year. Some charts that accompany this article are based on numbers from IMS Health. These are based on a different methodology and will not be consistent with the figures we have compiled from financial filings. Percentage growth figures should be treated with caution, because they can be affected by fluctuating exchange rates.

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44

PHARMACEUTICAL EXECUTIVE

Global Pharma Sales by Region

Market Share Region USD in Billions
334.8 230.7

Growth from 2009

3.2% 1.8% 13.3% 0.4% 16.3%
Source: IMS Health, MIDAS Source: IMS Health

29.2% 12.4% 42.3% 10.8% 5.3%

North America Europe Asia/Africa/Australia 98.1 Japan 85.7 Latin America 42.0

Worldwide Totals: $791.4

4.2%

Sales represent audited market for pharma products only (Dec. 2009Dec 2010) IMS figures do not account for off-invoice discounts/rebates and can vary from reported mfr sales

Top 25 US Pharma Products by Sales

Product
1 Lipitor 2 Nexium 3 Plavix 4 Advair Diskus 5 Abilify 6 Seroquel 7 Singulair 8 Crestor 9 Actos 10 Epogen 11 Remicade 12 Enbrel 13 Cymbalta 14 Avastin 15 Oxycontin 16 Neulasta 17 Zyprexa 18 Humira 19 Lexapro 20 Rituxan 21 Aricept 22 Lovenox 23 Atripla 24 Copaxone 25 Spiriva Handihaler

2010
7.2 6.3 6.1 4.7 4.7 4.6 4.0 4.4 4.2 4.1 3.7 3.8 3.0 3.5 3.4 3.3 3.2 3.3 3.2 3.3 3.3 3.2 2.8 3.1 3.0 3.1 2.9 3.0 3.0 3.0 2.7 2.9 2.5 2.8 2.8 2.8 2.6 2.5 2.3 2.3 2.8 2.2 1.9 2.2 1.7 2.0 1.7 2010: $307.4

2009
7.6 6.3 5.6 -5.26

% Change
FLAT 8.92 FLAT 15.00 4.76 10.81 26.66 2.94 3.13 3.13 FLAT 14.29 3.33 6.90 FLAT 11.11 16.00 FLAT 7.69 8.7 -17.86 15.79 29.41 17.65 2.36%
Figures (rounded) in US billions

TOTAL US SCRIP MARKET:

2009: $300.3

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PHARMACEUTICAL EXECUTIVE

2011 Rank

Company HQ [website]

2010 Rx Sales

(USD billions) [% change from 2009]

2010 R&D spend 2010 Top-Selling Drugs

(USD Millions) [USD billions]

11 12 13 14 15 16 17 18 19 20

Bristol-Myers Squibb
New York [bms.com]

$19.5

[3.6%]

$3,566

Plavix [6.7]

Teva

Petach Tikva, Israel [tevapharm.com]

$16.1

[16.0%]

$933

Copaxone [2.9]

Amgen

Thousand Oaks, California [amgen.com]

$14.7

[1.8%]

$2,894

Neulasta/Neupogen [4.8]

Bayer

Leverkusen, Germany [bayer.com]

$14.5

[3.6%]

$2,320

Betaferon/Betaseron [1.6]

Takeda

Osaka, Japan [takeda.com]

$14.2

[0.1%]

$3,198

Actos/Glustin [4.2]

Boehringer Ingelheim
Ingelheim, Germany [boehringer-ingelheim.com]

$12.9

[10.8%]

$3,056

Spiriva [3.8]

Novo Nordisk

Bagsvaerd, Norway [novonordisk.com]

$10.8

[9.9%]

$1,709

NovoRapid [2.1]

Astellas

Tokyo, Japan [astellas.com]

$10.5

[6.0%]

$2,109

Prograf [1.9]

Daiichi Sankyo

Tokyo, Japan [daiichisankyo.com]

$9.8

[20.0%]

$2,124

Olmesartan [2.6]

Eisai

Tokyo, Japan [eisai.com]

$8.4

[8.0%]

$1,932

Aricept [3.5]

Sources: corporate data (10Ks, annual reports, etc.) and Pharm Exec estimates

N/A = Not Available/Not Applicable * Estimate Figures are rounded

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PHARMACEUTICAL EXECUTIVE

Top 20 Therapeutic Classes by Spending

Product 2010 2009 % Change
3.72 6.63 1.08 12.66 9.52 -15.60 0.87 9.28 12.19 1.16 5.00 14.28 9.23 -3.17 16.33 8.69 2.13 12.5 2.44 2.36%
Source: IMS Health Source: IMS Health

22.3 21.5 1 Oncologics 19.3 18.1 2 Respiratory Agents 18.8 18.6 3 Lipid Regulators 16.9 15 4 Antidiabetes 16.1 14.7 5 Antipsychotics 11.9 14.1 6 Antiulcerants 11.6 11.5 7 Antidepressants 10.6 9.7 8 Autoimmune Diseases 9.2 8.2 9 HIV Antivirals 8.7 8.6 10 Angiotensin II 8.4 8.0 11 Narcotic Analgesics 7.2 6.3 12 ADHD 7.1 6.5 13 Platelet Aggregation Inhibitors 6.1 6.3 14 Erythropoietins 15 Multiple Sclerosis 5.7 4.9 6.9 16 Antiepileptics 5.6 17 Vaccines (Pure, Combo, Other) 5.0 4.6 18 Hormonal Contraceptives 4.8 4.7 19 Anti-Alzheimers 4.5 4.0 20 Immunostimulating Agents 4.2 4.1 TOTAL US SCRIP MARKET: 2010: $307.4 2009: $300.3

-18.84

Figures (rounded) in USD billions Therapy Class defined using ATC-defined product groups and synthesized based on proprietary IMS Health definitons Immunostimulating Agents excludes interferons

Top 20 Therapeutic Classes by Prescriptions

Class
1 Lipid Regulators 2 Antidepressants 3 Narcotic Analgesics 4 Beta Blockers (Plain & Combo) 5 Ace Inhibitors 6 Antidiabetes 7 Respiratory Agents 8 Anti-ulcerants 9 Diuretics 10 Antiepileptics 11 Tranquilizers 12 Thyroid Preps 13 Calcium Antagonists (Plain & Combo) 14 Antirheumatics 15 Hormonal Contraceptives 16 Angiotensin II 17 Penicillins 18 Macrolides & Similar Type 19 Vitamins & Minerals 20 Hypnotics & Sedatives
TOTAL US SCRIP MARKET:

2010

2009
249.7 246.1 241.0

% Change
2.28 3.05 1.37 14.12 1.81 3.77 0.59 0.96 -0.53 5.55 4.42 1.8 3.16 2.70 -1.70 -0.83 -0.65 6.64 3.01 0.76 1.16%

255.4 253.6 244.3 191.5 167.8 168.7 165.7 165.0 159.0 153.3 152.4 147.1 145.7 131.0 131.7 121.7 115.3 108.6 104.0 107.2 105.3 97.9 94.9 95.0 92.5 92.3 93.9 83.7 84.4 76.1 76.6 73.9 69.3 71.9 69.8 66.0 65.5 2009: 3,949.2

2010: 3,995.2

Rx figures (rounded) in millions; Therapy classes defined using ATC defined product groups and synthesized based on proprietary IMS Health definitions

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PHARMACEUTICAL EXECUTIVE

2011 Rank

Company HQ [website]

2010 Rx Sales

(USD billions) [% change from 2009]

2010 R&D spend 2010 Top-Selling Drugs

(USD Millions) [USD billions]

21 22 23 24 25 26 27 28 29 30

Merck KGaA

Darmstadt, Germany [merck.de]

$7.8

[0.4%]

$1,547

Rebif [2.2]

Gilead Sciences

Foster City, California [gilead.com]

$7.4

[14.2%]

$1,073

Atripla [3.0]

Baxter International

Deerfield, Illinois [baxter.com]

$5.6

[1.3%]

$915

Advate [1.7]

Mylan

Canonsburg, Pennsylvania [mylan.com]

$5.2

[7.5%]

$282

EpiPen [0.3]

Servier

Neuilly-sur-Seine [servier.com]

$4.9

[6.6%]

$1,226

Coversil [1.5*]

Chugai

Tokyo, Japan [chugai-pharm.co.jp]

$4.6

[1.3%]

$671

Avastin [0.6]

Mitsubishi Tanabe

Osaka, Japan [mt-pharma.co.jp]

$4.4

[2.4%]

$897

Remicade [0.5]

Menarini

Florence, Italy [menarini.com]

$4.0*

[0.2%]

N/A

Migard/Allegro [0.1*]

Genzyme

Cambridge, Massachusetts [genzyme.com]

$4.0

[2.3%]

$847

Cerezyme [0.7]

Allergan

Irvine, California [allergan.com]

$4.0

[7.9%]

$805

Botox [1.4]

Sources: corporate data (10Ks, annual reports, etc.) and Pharm Exec estimates

N/A = Not Available/Not Applicable * Estimate Figures are rounded

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51

Top 25 Corporations by U.S. Sales

Product 2010 2009
19.8 18.3 27.8

% Change
-5.75 -5.05 FLAT 8.33 13.22 0.78 1.60 1.89 7.77 6.82 15.00 18.94

26.2 1 Pzer 18.8 2 Merck 18.3 3 AstraZeneca 15.7 13.2 4 Novartis 14.3 13.2 5 Lilly 13.8 14.2 6 Roche 13.7 12.1 7 Teva 13.6 15.0 8 GlaxoSmithKline 12.9 12.8 9 Johnson & Johnson 12.7 12.5 10 Amgen 10.8 10.6 11 Abbott 10.4 11.2 12 Sano-Aventis 9.7 9.0 13 Bristol-Myers Squibb 6.4 7.6 14 Boehringer Ingelheim 6.0 7.9 15 Takeda 4.7 4.4 16 Forest 4.7 3.9 17 Mylan 4.7 3.9 18 Gilead 4.6 4.0 19 Otsuka America 4.6 4.4 20 Eisai 4.5 3.7 21 Novo Nordisk 22 Watson 3.3 3.2 23 Nestle S.A. 3.2 2.8 24 Purdue 3.2 3.0 25 Galen Holdings 3.0 2.8

-2.82 -9.33

-7.14 -24.05 -15.79

20.51 20.51 21.62

4.54 3.12 6.67 7.14

14.28

TOTAL US SCRIP MARKET:

2010: $307.4

2009: $300.3

2.36%
Figures (rounded) in billions

Top 25 Corporations by Prescriptions

Corporation
1 Teva 2 Mylan 3 Novartis 4 Pzer 5 Watson 6 Endo 7 Lupin 8 Merck 9 Amneal 10 AstraZeneca 11 Covidien 12 GlaxoSmithKline 13 Boehringer Ingelheim 14 Actavis U.S. 15 Dr Reddy 16 Abbot 17 Zydus 18 Lilly 19 West Ward 20 Forest 21 Ranbaxy 22 Bristol-Myers Squibb 23 Par 24 Sano-Aventis 25 Aurobindo

2010
265.3 242.0 233.6 141.0 114.5 134.0 96.2 104.2 123.3 97.9 67.5 86.8 93.8 80.2 91.2 72.6 71.1 68.1 63.5 58.1 53.9 49.5 45.2 44.3 42.5 42.2 40.2 40.0 39.7 379.9 240.9 265.7 235.1

2009
639.3 347.2 629.8

% Change
-8.92 -0.64 -15.49 -7.46 -12.06 -7.16 -1.79 -4.22 -13.60 -4.75 -0.60 -4.11 -4.31 -16.60 -4.99 31.78 37.09 1.51 9.41 10.13 23.14

39.29 45.04

78.2 72.4 71.1 73.5 61.0 34.9 49.8 34.3 46.2 31.0 44.1 48.2 42.1 38.9

54.44

2.06

TOTAL US SCRIP MARKET:

2010: 3,995.2

2009: 3,949.2

1.16%
Figures (rounded) in millions

Top 25 U.S. Pharma Products by Prescriptions

Product
1 hydrocodone/acetaminophen 2 simvastatin 3 lisinopril 4 levothyroxine sodium 5 amlodipine besylate 6 omeprazole (RX) 7 azithromycin 8 amoxicillin 9 metformin HCL 10 hydrochlorothiazide 11 alprazolam 12 Lipitor 13 furosemide 14 metoprolol tartrate 15 zolpidem tartrate 16 atenolol 17 sertraline HCL 18 metoprolol succinate 19 citalopram HBR 20 warfarin sodium 21 oxycodone/acetaminophen 22 ibuprofen (Rx) 23 Plavix 24 gabapentin 25 Singulair

2010
94.1 87.4 70.5 66.0 57.2 51.3 53.4 45.4 52.6 53.8 52.3 52.4 48.3 44.3 47.8 47.9 46.3 43.9 45.3 51.7 43.4 43.5 38.9 41.1 38.0 35.1 36.3 39.3 35.7 34.2 33.0 26.9 32.1 27.1 32.0 31.6 31.9 30.2 31.1 30.3 29.5 29.9 29.3 25.4 28.7 28.6 131.2

2009
83.8 82.8 128.2

% Change
2.34 5.56 6.82 -2.23 -0.19 -0.21 -12.38 -0.23 -5.35 -7.63 4.38 1.27 5.63 2.64 0.35 18.45 5.47 12.29 11.5

17.62

9.03

8.26 22.68

-1.34

15.35

TOTAL US SCRIP MARKET:

2010: 3,995.2

2009: 3,949.2

1.16%
Figures (rounded) in millions

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Source: IMS Health

Source: IMS Health

Source: IMS Health

52

PHARMACEUTICAL EXECUTIVE

2011 Rank

Company HQ [website]

2010 Rx Sales

(USD billions) [% change from 2009]

2010 R&D spend 2010 Top-Selling Drugs

(USD Millions) [USD billions]

31 32 33 34 35 36 37 38 39 40

Forest

New York, New York [frx.com]

$3.9

[7.4%]

$1,054

Lexapro [2.3]

CSL

Victoria, Australia [csl.com.au]

$3.8

[3.6%]

$272

N/A [N/A]

UCB

Brussels, Belgium [ucb.com]

$3.7

[4.0%]

$1,044

Keppra [1.2]

Otsuka

Tokyo, Japan [www.otsuka.co.jp/en/]

$3.6*

[46.1%]

N/A

Abilify [4.5*]

Celgene

Summit, New Jersey [celgene.com]

$3.5

[36.7%]

$1,128

Revlimid [2.5]

Biogen Idec

Weston, Massachusetts [biogenidec.com]

$3.5

[10.1%]

$1,249

Avonex [3.5]

Shire

Dublin, Ireland [shire.com]

$3.1

[16.1%]

$662

Vyvanse [0.6]

Alcon

Hnenberg, Switzerland [alcon.com]

$3.1

[14.5%]

$747

Glaucoma products [1.3]

Warner Chilcott

Dublin, Ireland [wcrx.com]

$2.9

[111.0%]

$147

Actonel [1.0]

Cephalon

Frazer, Pennsylvania [cephalon.com]

$2.8

[28.3%]

$440

Provigil [1.1]

Sources: corporate data (10Ks, annual reports, etc.) and Pharm Exec estimates

N/A = Not Available/Not Applicable * Estimate Figures are rounded

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54

PHARMACEUTICAL EXECUTIVE

Top US Patent Expiries

Rank Product/Company
1 2 3 4 5 6 7 8 9 10 11 LIPITOR/Pfizer ADVAIR DISKUS/GSK ZYPREXA/Eli Lilly LEVAQUIN/Ortho-McNeil XALATAN/Pfizer FEMARA/Novartis ZYPREXA ZYDIS/Eli Lilly ADVAIR HFA/GSK PATANOL/Alcon PATADAY/Alcon VIVELLE-DOT/Novogyne

LOE date
Q4 2011 Q3 2011 Q4 2011 Q2 2011 Q1 2011 Q2 2011 Q4 2011 Q3 2011 Q2 2011 Q2 2011 Q1 2011

2010 Sales
7,244.1 4,711.4 2,957.6 1,522.4 710.8 681.6 331.1 254.6 241.1 215.0 215.0

Total Rx 2010
45.8 19.7 5.3 10.9 6.9 1.3 0.4 1.1 2.3 2.1 3.2

Sales figures (rounded) in USD millions; Rx figures rounded

LOE = Loss of Exclusivity

Top 20 Global Therapy Classes by Sales

Product
1 Oncologics 2 Lipid Regulators 3 Respiratory Agents 4 Antidiabetics 5 Antiulcerants 6 Angiotensin II Antagonists 7 Antipsychotics 8 Autoimmune Agents 9 Antidepressants 10 HIV Antivirals 11 Platelet Aggreg. Inhibitors 12 Antiepileptics 13 Narcotic Analgesics 14 Cephalosporins & Combs 15 Erythropoietin Products 16 Vaccines 17 Multiple Sclerosis 18 Antirheumatics (Non-steroid) 19 Hormonal Contraception 20 Calcium Antagonists

2010
36.4 35.8 34.4 56.0

% Change
6.7 2.0 7.0 -6.7 4.5 3.4 -3.3 -1.8 1.5 6.4 5.8 3.5 3.6 5.3 13.9

15.4 14.6 12.6 12.0 11.6 10.6 10.5 9.8 9.8 9.5 9.2

20.7 20.2

27.2 26.6 25.4

12.2

9.0

14.7
Source: IMS Health, MIDAS Source: IMS Health, MIDAS

13.2

-8.8

TOTAL US SCRIP MARKET: 2010: $408.3

2009: $384.9

6.10%

Figures (rounded) in USD billions (Dec 2009Dec 2010) Sales represent audited market for pharma products only IMS figures do not account for off-invoice discounts/rebates and can vary from reported mfr sales

Top 20 Leading Global Products by Sales

Product
1 Lipitor (atorvastatin) 2 Plavix (clopidogrel) 3 Seretide (uticasone/salmeterol) 4 Nexium (esomeprazole) 5 Seroquel (quetiapine) 6 Crestor (rosuvastatin) 7 Enbrel (etanercept) 8 Remicade (iniximab) 9 Humira (adalimumab) 10 Zyprexa (olanzapine) 11 Avastin (bevacizumab) 12 Singulair (montelukast) 13 Abilify (aripiprazole) 14 Mabthera (rituximab) 15 Lantus (insulin glargine) 16 Aricept (donepezil) 17 Actos (pioglitazone) 18 Lovenox (enoxaparin sodium) 19 Herceptin (trastuzumab) 20 Diovan (valsartan)

2010
8,816.5 8,468.6 8,361.5 6,815.6 6,796.3 6,167.2 6,038.6 5,959.5 5,736.3 5,532.2 5,465.4 5,430.3 5,033.2 4,685.3 4,432.1 4,317.3 4,282.0 4,165.1 4,156.4 12,656.1

% Change
-6.2 -3.4 4.4 1.3 5.2

13.2 10.3 11.1 9.1

24 19.7

6.6

7.8 3.9 3.5 8.5 6.7

16.3 16.7

-5.3

TOTAL US SCRIP MARKET:

2010: $123,315.5

2009: 116,221.7

6.10% Increase

Sales represent audited market for pharma products only

Figures (rounded) in USD millions (Dec. 2009Dec. 2010) Figures do not account for off-invoice discounts/rebates and can vary from reported mfr sales

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Source: IMS Health

56

PHARMACEUTICAL EXECUTIVE

2011 Rank

Company HQ [website]

2010 Rx Sales

(USD billions) [% change from 2009]

2010 R&D spend 2010 Top-Selling Drugs

(USD Millions) [USD billions]

41 42 43 44 45 46 47 48 49 50

Watson

Corona, California [watson.com]

$2.6

[27.0%]

$296

CNS generics [0.9]

Lundbeck

Copenhagen, Denmark [lundbeck.com]

$2.6

[0.6%]

$542

Cipralex/Lexapro [1.5]

Kyowa Hakko Kirin

Tokyo, Japan [kyowa-kirin.co.jp]

$2.6

[14.7%]

$429

Nesp/Espo [0.6*]

Dainippon Sumitomo

Osaka, Japan [ds-pharma.co.jp]

$2.6

[20.1%]

$554

Amlodin [0.6]

Shionogi

Osaka, Japan [shionogi.co.jp]

$2.4*

[35.2%]

$135

Crestor [0.3]

Actavis

Hafnarfjrur, Iceland [actavis.com]

$2.4*

[32.5%]

N/A

Oxycodone [0.4]

Hospira

Lake Forest, Illinois [hospira.com]

$2.3

[13.3%]

$301

N/A [N/A]

Nycomed

Zurich, Switzerland [nycomed.com]

$2.2

[20.2%]

$281

Pantoprazole [1.2]

Apotex

North York, Ontario, Canada [apotex.com]

$2.1*

[19.2%]

N/A

N/A [N/A]

Stada

Bad Vilbel, Germany [stada.de]

$2.1

[5.0%]

$73

Generic omeprazole [0.1]

Sources: corporate data (10Ks, annual reports, etc.) and Pharm Exec estimates

N/A = Not Available/Not Applicable * Estimate Figures are rounded

TOTALS:

2010: $593.4 billion

2009: $550.5 billion

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7.79%

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58

PHARMACEUTICAL EXECUTIVE

The Top 10 Year In Review

Jeff Kindler retired, succeeded by Ian C. Read. George Lorch elected Non-Executive Chairman of the Board. Sutent approved in EU for treatment of pancreatic neuro-endocrine tumors. Launched Prevnar 13, a vaccine against 13 strains of pneumococcal diseases in infants and young children. Also has 118 products in the R&D pipeline and had 1,300 clinical trials in 2010.

1. Pfizer President and CEO

Completed purchase of Alcon from Nestl for $38.7 billion. Jonathan Symonds promoted to CFO. David Epstein replaced CEO Joe Jimenez as Division Head, Pharmaceuticals. Thirteen major pharmaceutical approvals in the US, Europe, and Japan, with 147 products in development. Tasigna was approved in the US, the EU, Japan, and Switzerland for patients with newly diagnosed Philadelphia chromosome-positive chronic myeloid leukemia (Ph+ CML), a form of blood cancer. Menveo (vaccine against meningococcal disease) launched in the US, EU, and parts of Latin America and Asia. Sandoz launched generic enoxaparin, its most successful launch to date, and acquired Oriel Therapeutics.

2. Novartis

Bought Inspire for $430 million. Rotateq vaccine awarded top honor at Prix Galien USA 2010. Merck BioVentures entered into an alliance with Parexel for biosimilar development. Signed commercialization agreement with Lundbeck for Sycrest and a letter of mutual intent with Chinas Sinopharm. Pipeline has more than 20 late-stage candidates. Licensed oral mTOR inhibitor for multiple cancers from Ariad. Oral hepatitis C protease inhibitor Boceprevir granted Priority Review status by FDA.

4. Merck Elected Kenneth Frazier CEO.

EU. Kombiglyze XR, the only once-daily dose of DPP4/metformin, developed with Bristol-Myers Squibb, also approved in US. Nine molecules in Phase III trials or submitted for regulatory approval, with another 92 projects in development. Completed deal with Rigel for development of fostamatinib (rheumatoid arthritis).

8. Johnson & Johnson Completed

tender offer for Crucell N.V. in February 2011; acquired 98.93 percent of shares. Products under regulatory review include: Rivaroxoban for stroke prevention in patients with atrial fibrillation (US), Telaprevir for hepatitis C (US and EU), Abiraterone acetate for metastatic advanced prostate (US and EU), and rilpivirine for HIV. Eight more candidates planned for regulatory submission from 2011 to 2013.

Rituxan approved in US as first-line treatment for chronic lymphocytic leukemia (CLL) and relapsed/refractory CLL. Tarceva approved in US and EU for first-line treatment of non-small-cell lung cancer after chemotherapy. FDA rejected use of Avastin as a treatment for metastatic breast cancer; Roche has requested a hearing to appeal this decision. Daniel ODay appointed COO of the Pharmaceuticals division. Alan Hippe named CFO. Jean-Jacques Garaud appointed Head of Roche Pharma Research and Early Development.

5. Roche

6. GlaxoSmithKline Benlysta

3. Sanofi-Aventis Initiated

acquisition of Genzyme for $16.6 billion (completed in April) and finished acquisition of OTC company Chattem. Began collaboration programs with Harvard and Columbia Universities and a research alliance with Scripps Genomic Medicine. Jevtana approved in US for second-line treatment of metastatic hormone-refractory prostate cancer.

(belimumab, the first new lupus treatment in 60 years) approved by FDA in March. Six products in total approved by US and EU; seven more filed with regulators. Malaria vaccine in Phase III trials in Africa, with 30 other late-stage assets. Julian Heslop retired as CFO, succeeded by Simon Dingemans. Patents for active ingredients in Seretide/Advair expired.

Completed acquisition of Alnara and Avid Radiopharmaceuticals. Launched statin Livalo in the US with partner Kowa. Has 68 molecules in development. Several monoclonal antibodies for cancer in late-stage development. Phase III candidates include Necitumumab for non-small-cell lung cancer and Ramucirumab for metastatic breast and gastric cancers. Signed commercialization deal with Acrux for newly approved experimental testosterone solution Axiron.

9. Eli Lilly

Crestor substance patent upheld in US court. Approvals include Vimovo (naproxen/esomeprazole magnesium) in US and EU and Brilique (atherothrombotic event prevention) in

7. AstraZeneca

The year was marked by acquisitions, including the pharmaceutical business of Solvay for $6.1 billion plus milestones, and Piramal Healthcares Healthcare Solutions business, a leader in the Indian branded generics market, for $2.2 billion in cash, plus $1.6 billion in annual payments through 2014. Additional acquisitions included Advanced Medical Optics, STARLIMS Technologies (informatics), and the remaining shares of Facet Biotech.

10. Abbott

About the Authors

Jerry Cacciotti is a Partner in Oliver Wymans Health and Life Sciences Practice. He can be reached at Jerry.Cacciotti@oliverwyman.com Patrick Clinton is Marketing Director in the Health & Life Sciences practice of Oliver Wyman. He can be reached at Patrick.Clinton@oliverwyman.com

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