2022 Global Industrial R&D Investment Scoreboard Reveals Three Multinational Pharma Giants Surpass €10 Billion in R&D Spending

　　【Pharmaceutical Network Industry Dynamics】New drug development is characterized by high investment. In recent years, with the expansion of pharmaceutical consumption demands and continuous breakthroughs in new therapies, the overall R&D investment of global pharmaceutical companies has shown an increasing trend. Recently, the European Commission released the "2022 EU Industrial R&D Investment Scoreboard," which listed a total of 24 pharmaceutical companies. The pharmaceutical companies on the top 100 list are mainly concentrated in the United States, Japan, Germany, the United Kingdom, Switzerland, and other countries.
 

According to the 2022 Global Top 100 List of Industrial R&D Investment (Pharmaceutical Companies), Roche ranked highest in R&D investment, with an investment of 13.3 billion euros, representing a 10% increase compared to 2021. In 2022, R&D investment accounted for 21.80% of sales.
 

As a global leading biopharmaceutical company, Roche's R&D expenditure has accounted for approximately 25% of its total revenue in recent years, demonstrating the company's significant investment in research and development. Currently, the group's pharmaceutical business mainly covers six disease areas: oncology, immunological diseases, infectious diseases, ophthalmology, neurological diseases, and others.
 

Roche's 2022 financial results show that the company achieved total annual revenue of 63.281 billion Swiss francs (approximately $66.331 billion), representing a 2% year-on-year increase. Of this, pharmaceutical business revenue was 45.551 billion Swiss francs ($47.747 billion, +2%), while diagnostic business revenue reached 17.73 billion Swiss francs ($18.585 billion, +3%). In China, Roche’s pharmaceutical business revenue for 2022 decreased by 7% year-on-year due to competition from biosimilars, a decline in ceftriaxone sales, and the impact of the pandemic. Roche also anticipates a low single-digit percentage decrease in sales revenue for 2023.
 

Following closely behind are Johnson & Johnson and Pfizer, with R&D investments both exceeding 10 billion euros, at 13 billion euros and 10.24 billion euros respectively. Their R&D investment as a percentage of sales revenue stands at 15.70% and 14.30%, respectively.
 

Among them, Johnson & Johnson is one of the most comprehensive and widely distributed healthcare enterprises in the world, with businesses covering three major fields: medical devices, pharmaceuticals, and consumer products.
 

In 2022, Johnson & Johnson achieved a total annual revenue of $94.943 billion, representing a year-on-year increase of 1.3%. Of this, pharmaceutical business revenue reached $52.563 billion, marking a year-on-year growth of 1.7%. Currently, in seeking new opportunities, Johnson & Johnson plans to complete the spin-off of its consumer health business in 2023 in order to move forward with a lighter asset structure.
 

Pfizer is a science-based, innovative, patient-first biopharmaceutical company with the goal of "delivering breakthrough innovations that change patients' lives."
 

Pfizer's 2022 financial report shows that the company's total annual revenue reached a record high of $100.33 billion, increasing by 23% year-on-year. Pfizer has also become the world’s first pharmaceutical company to achieve an annual income surpassing $100 billion. This achievement would not have been possible without the revenue contributions from Comirnaty and Paxlovid, which together generated sales revenue of $56.739 billion in 2022.
 

However, Pfizer expects that the revenues of its two products, Comirnaty and Paxlovid, may decline in 2023. The company has set its 2023 revenue guidance at $67 billion to $71 billion.
 

In addition to the three pharmaceutical companies mentioned above with R&D investments exceeding 10 billion euros, Bristol-Myers Squibb, Merck & Co., Inc. and other pharmaceutical companies also approached 10 billion euros in R&D investment in 2022. Specifically, Bristol-Myers Squibb's R&D investment reached 9.28 billion euros, accounting for 22.70% of net sales. Merck & Co., Inc.'s R&D investment was 9.13 billion euros, accounting for 21.20% of net sales.
 

Compared with multinational pharmaceutical companies, China's pharmaceutical companies still have a significant gap in R&D investment. Taking local innovative pharmaceutical companies represented by BeiGene, Hengrui Medicine, and Fosun Pharma as examples, even the highest R&D investment is only over 9 billion yuan. However, with the continuous release of policies encouraging new drug R&D in China, the R&D enthusiasm of local pharmaceutical companies has been increasing in recent years, and the overall R&D investment in the industry has also shown an upward trend. Industry insiders stated that China's pharmaceutical innovation has entered the second tier globally, with the number of innovative drugs ranking just behind the United States. As the R&D and innovation capabilities of domestic pharmaceutical companies improve rapidly, the innovative drug industry will enter a new stage of development oriented toward clinical value.
 

Disclaimer: Under no circumstances shall the information or opinions expressed in this article constitute investment advice to any person.