Market intelligence > Top ten global pharma

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global pharma

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

1US 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 company’s new

marketing strategy, coupled with focused organisational,

financial and R&D restructuring efforts, compensated for the

losses caused by Lipitor’s 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, Pfizer’s 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.

Pfizer

3Novartis reported revenues of $58.6 billion during the fiscal

year ending December 2011, 16% up from 2010’s figure. The

company’s 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.

Novartis’s 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.

novartis

2Johnson & 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.

Johnson & Johnson

4Bayer, 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 Bayer’s 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 Bayer’s pharmaceutical segment were flat,

marking $3.76 billion in the third quarter of 2011; however,

the company’s 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 company’s 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.

Bayer

Top ten

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Market intelligence > Top ten global pharma

WorldPharmaceuticalFrontiers | www.worldpharmaceuticals.net 11

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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 Roche’s 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. Merck’s

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, 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%. GSK’s

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.

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 Abbot’s 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.

AstraZeneca’s 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.

F hoffmann-la roche merck & co

sanofi GlaxosmithKline

abbott astraZeneca

toP ten Pharma: in FiGures1. Pfizer: $67.4 billion2. Johnson & Johnson: $65 billion3. Novartis: $58.6 billion4. Bayer: $50.76 billion 5. F Hoffman-La Roche: $48.09 billion

6. Merck & Co: $48 billion7. Sanofi: $46.5 billion 8. GlaxoSmithKline: $43.92 billion9. Abbott: $38.8 billion10. AstraZeneca: $33.6 billion

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