Merck Tops 2023 Global Pharma R&D Spending List, Ousting Roche After Nearly a Decade

Mar 20, 2024 11:59 CST Updated 12:00

Johnson & Johnson

Medical Device R&D and Manufacturer

Compiled by Wang Cong

Editor | Wang Duoyu

Typesetting | Shuicheng Wen

Recently, FIERCE Biotech releasedTop 10 Global Pharmaceutical Companies by R&D Investment in 2023, respectivelyMerck & Co.（Merck & Co.）、Johnson & Johnson（Johnson & Johnson）、Roche（Roche）、Novartis（Novartis）、AstraZeneca（AstraZeneca）、Pfizer Inc.（Pfizer）、Eli Lilly and Company（Eli Lilly）、Bristol-Myers Squibb（Bristol Myers Squibb）、AbbVie（AbbVie）、Sanofi（Sanofi）。

Compared with 2022, the list of pharmaceutical companies has not changed, only the ranking order has. After being at the top for nearly 10 years,Roche（Roche）Finally fell from the top position in annual R&D investment,Merck & Co.（Merck & Co.）With R&D investment exceeding 30 billion USD, it ranked first for the first time.

2023: A Year Full of Changes and AdjustmentsCOVID-19 Gradually Fades from the Forefront of the Pharmaceutical Industry as New Weight-Loss Drugs, GLP-1 Receptor Agonists, Take Center Stage. Consistently Ranking at the Top for Research and Development Investment Year After Year,Roche（Roche）In this year, byMerck & Co.（Merck & Co.）AndJohnson & Johnson（Johnson & Johnson）Surpassing in reverse, ranking only third.

Merck & Co.

Ranking: First

R&D Budget: $30.53 Billion

Change compared to 2022: 126%

Total Revenue in 2023: $60.1 billion

R&D Budget as a Percentage of Revenue: 50.8%

Merck reported full-year R&D expenses of up to $30.5 billion in 2023, with R&D expenses accounting for more than 50% of revenue, far higher than $13.5 billion in 2022. This amount is obviously very exaggerated. In fact, more than half of the $30.5 billion was related to deals, including an investment of $5.5 billion inDaiichi SankyoCollaborative Development of ADC Drugs, $114 Billion Investment in AcquisitionPrometheusAndImago BiosciencesIf the funds invested in collaborations and acquisitions are excluded, its R&D expenses in 2023 will drop to $13.6 billion, only $1 billion more than in 2022.

Johnson & Johnson

Ranking: Second

R&D Budget: $15.1 Billion

Change compared to 2022: 6.7%

Total Revenue in 2023: $85.2 billion

R&D Budget as a Percentage of Revenue: 17.7%

Roche

Ranking: Third

R&D Budget: $14.97 billion
Change from 2022: -5.7%
Total Revenue in 2023: $66.4 billion
R&D budget as a percentage of revenue: 22.6%

Novartis

Ranking: Fourth

R&D Budget: $11.37 Billion

Change compared to 2022: 23.9%
Total Revenue in 2023: $45.4 billion
R&D Budget as a Percentage of Revenue: 25%

AstraZeneca

Ranking: Fifth

R&D Budget: $10.94 Billion
Change compared to 2022: 12%
Total Revenue in 2023: 45.81 billion USD
R&D Budget as a Percentage of Revenue: 24%

Pfizer Inc.

Ranking: Sixth

R&D Budget: $10.67 billion
Change compared to 2022: -6.65%
Total Revenue in 2023: $58.5 billion
R&D budget as a percentage of revenue: 18.2%

Eli Lilly and Company

Ranking: Seventh

R&D Budget: $9.31 billion
Change from 2022: 29%
Total Revenue in 2023: $34.12 billion
Percentage of R&D budget to revenue: 27%

Bristol-Myers Squibb

Ranking: Eighth

R&D Budget: $9.29 billion
Change compared to 2022: -2.22%
Total Revenue in 2023: $45 billion
R&D Budget as a Percentage of Revenue: 20.6%

AbbVie

Ranking: Ninth

R&D Budget: $7.68 Billion
Change compared to 2022: 18%
Total Revenue in 2023: $54.32 Billion
R&D budget as a percentage of revenue: 14.1%

Sanofi

Ranking: 10th

R&D Budget: $7.32 billion
Change from 2022: 3%
Total Revenue in 2023: $46.81 billion
R&D Budget as a Percentage of Revenue: 15.6%

Reference Links：

https://www.fiercebiotech.com/biotech/top-10-pharma-rd-budgets-2023

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