Top 10 Pharma

In 2012 the Top 10 pharmaceutical companies held 42% of the global market, according to data from IMS Health. Since 2007, IMS Health ranking of the Top 10 pharmaceutical companies has included the same societies, with some changes in the order position. The only excepition is Lilly that left its tenth place to Teva.

Top 10 Pharma – Source: IMS Health

Top   10 Corps 2007 Top   10 Corps 2012
Pfizer Novartis*
GlaxoSmithKline Pfizer*
Novartis Merck   & Co
Sanofi-Aventis Sanofi
AstraZeneca Roche
Johnson   & Johnson AstraZeneca
Roche GlaxoSmithKline
Merck   & Co Johnson   & Johnson
Abbot Abbott
Lilly Teva
Entry Into Top 10

The entry of Teva in the Top 10 is the most significant event in the last five years. Teva is the first non Western, non innovative – core pharma company in this list. Since 2008 the growth of the Israeli firm has been more than 20% each year due to a strong vertical integration of its business caused by the in house APIs production and its leadership in the biosimilars. Over the past five years the percentage of Teva revenue related to non-generic products has rosen from 19% (2007) to 40% (2012). Something could change in the future due to the loss of patent for Copaxone, a drug responsible for 20% of Teva revenue.

The generic portfolio is important also for the other Top 10 Pharma companies. The sales of Novartis include those of Sandoz, the generic company number two, which led to 16% of the 2011 revenue of the Swiss company and also the 5% of 2011 Sanofi sales were due to generics.

Even if the generics are important elements of revenue both in mature and emerging markets, the innovation, especially in niche and speciality areas, is still one of the biggest push to become a Top Pharma company. It is the case of Vertex Pharmaceuticals that jumped to the # 42 position in the 2012 list of the fastest growing corporation by non generic revenue directly from nowhere due to the successful launch of Incivek (telaprevir) in Hepatitis C and its promising pipeline in cystic fibrosis and other chronic inflammatory and autoimmune diseases. Very good was also the results of Actelion that in 10 years has moved from position #322 to #50 with annual growth rate (CAGR) of 60% based primarily on the sale of Tracleer (bosentan), the first oral treatment for pulmonary arterial hypertension.

The good market position depends on the investment in research, including almost all (except Lilly) top 10 market are also in the top 10 of the costs of R&D.

 

R & D spending in 2012 vs 2011 – Source: http://www.genengnews.com

Company 2012   U.S. Billion 2011   U.S. Billion Percent   Change 2012   % of Sales 2011   % of Sales
Novartis $   9.332 $   9.583 -2.6% 16.5% 16.4%
Roche $   8.990
CHF   8.475B
$8.564
CHF   8.037B
5.0%2%   at CER 18.9% 19.0%
Merck   & Co. $   8.168 $   8.467 -3.5% 17.3% 17.6%
Pfizer $   7.870 $   9.074 -13.3% 13.3% 13.9%
Johnson   & Johnson $   7.665 $   7.548 1.6% 11.4% 11.6%
Sanofi $6.451
CHF   4.922B
$   6.305
CHF 4.811B
2.3%-3.6%   at CER 14.1% 14.4%
GlaxoSmithKline $   5.958
£   3.968B
$   6.019
£   4.009B
-1.0% 15.0% 14.6%
Eli   Lilly $   5.278 $   5.021 5.1% 23.4% 20.7%
AstraZeneca $   5.243 $   5.523 -5.1% 18.7% 16.4%
Abbott   Laboratories $   4.322 $   4.129 4.7% 10.8% 10.6%