Eight Pharmaceutical Giants Including Pfizer, Roche, and Novartis Named to Fortune's 'World's Most Admired Companies 2019' List

Highlights

Recently, Fortune magazine released its list of the "World's Most Admired Companies 2019." The ranking evaluated 680 companies across more than 50 industries based on nine criteria: innovation, people management, use of corporate assets, social responsibility, quality of management, financial soundness, long-term investment value, quality of products/services, and global competitiveness. Eight pharmaceutical companies made the list, including Merck & Co., Inc. (MSD), Bristol-Myers Squibb, Pfizer, and AbbVie. How have these highly regarded companies performed? Let’s take a look at their financial reports.

Eight Pharmaceutical Companies Selected for the "2019 World's Most Admired Companies" List

Johnson & Johnson: Significant Advantages in Autoimmunity

According to Johnson & Johnson’s financial report, the company’s total revenue for the full year 2018 amounted to $81.582 billion, representing a year-on-year increase of 6.7%. Of this, pharmaceutical sales reached $40.734 billion, a 12.4% increase from the previous year. Total R&D expenditure stood at $10.775 billion, accounting for 13.2% of total revenue. Notably, this marks the 17th consecutive year that Johnson & Johnson has been included in Fortune magazine’s “World’s Most Admired Companies” list, ranking among the top 20 companies overall and securing the number one position among global pharmaceutical companies for the sixth consecutive year.

Top 3 Products by Sales (USD Billion)

Remicade (infliximab), a star autoimmune product marketed by Johnson & Johnson for over two decades, saw its sales continue to decline in 2018 amid competition from multiple biosimilars. Autoimmune diseases and oncology are key therapeutic areas for Johnson & Johnson. Among its major products, Opsumit (macitentan) and Darzalex (daratumumab) demonstrated the strongest growth momentum. Notably, Darzalex (daratumumab) generated $2.025 billion in sales, representing a year-over-year increase of 63.0%. As the first monoclonal antibody approved for the treatment of multiple myeloma, Darzalex is expected to receive regulatory approval in China in 2019.

MSD: Keytruda Makes a Comeback, Vaccines Continue Strong Performance

According to Merck & Co.’s financial report, the company’s total revenue for the full year 2018 amounted to $42.294 billion, representing a 5% year-over-year increase. Of this, pharmaceutical sales reached $37.689 billion, up 6% from the previous year. Merck & Co. projected its total revenue for 2019 to be between $43.2 billion and $44.7 billion.

Top 3 Products by Sales (USD billion)

Vaccines and diabetes are traditional strongholds for Merck & Co., Inc. (MSD). The robust growth of Keytruda (pembrolizumab) has not only surpassed Bristol-Myers Squibb’s Opdivo but also propelled MSD’s rise in the oncology sector. Meanwhile, the substantial demand in the Chinese market for quadrivalent and nonavalent HPV vaccines has helped MSD sustain its strong performance in the vaccine segment. However, the diabetes business is showing a downward trend, with sales of its flagship product, Januvia, declining by 1%.

Novartis: Gleevec Declines Further, Secukinumab Surges

According to Novartis’ financial report, the company’s total revenue for 2018 was $51.9 billion, representing a 6% year-on-year increase. Of this, innovative medicines generated $34.892 billion in revenue, while Sandoz’s generic drug business contributed $9.859 billion. Total R&D expenditure amounted to $9.074 billion, accounting for 17.5% of total revenue.

Top 3 Products by Sales (USD billion)

As sales of Gilenya (fingolimod) begin to plateau, Cosentyx (secukinumab) will become the primary sales driver. Meanwhile, sales of the heart failure drug Entresto and the new breast cancer drug Kisqali surged, with year-over-year growth of 103% and 209%, respectively. In addition, Novartis’s Gleevec (imatinib) recorded sales of $1.561 billion in 2018, representing a 20% decline from the previous year.

Roche: Three Monoclonal Antibodies Reach Peak

According to Roche’s financial report, the company’s total revenue for the full year 2018 amounted to CHF 56.846 billion (equivalent to USD 44.7 billion), of which pharmaceutical sales reached CHF 43.967 billion, representing a 7% year-on-year increase.

Top 3 Products by Sales (CHF Billion)

In 2018, the three major monoclonal antibodies—Herceptin, Rituxan, and Avastin—continued to demonstrate strong sales performance, with expectations of once again ranking among the top 10 global drugs by sales. However, as biosimilars have already been approved for marketing in the European Union and by the U.S. FDA, their sales growth has begun to decline. Notably, Ocrevus, a new drug for the treatment of multiple sclerosis launched in 2017, showed robust performance, achieving sales of CHF 2.353 billion in 2018, representing a year-on-year increase of 172%.

Amgen: Star Products Hit by Biosimilars

According to Amgen’s financial report, the company achieved a total revenue of $23.747 billion in 2018, representing a 4% year-over-year increase. Total R&D investment amounted to $3.737 billion, accounting for 15.7% of its revenue.

Top 3 Products by Sales (USD billion)

In 2018, Amgen secured FDA approval for Aimovig, the first drug approved for the preventive treatment of migraine, which generated $119 million in revenue within its first six months on the market, marking a strong start. Meanwhile, revenue growth for star products such as Enbrel and Neulasta declined due to the market entry of biosimilars.

Bristol-Myers Squibb: Opdivo Overtaken by Keytruda, Lenalidomide May Make a Surprise Entry

According to Bristol-Myers Squibb’s financial report, the company’s total revenue for the full year 2018 was $22.561 billion, representing a 9% year-over-year increase. Total R&D expenditure amounted to $6.345 billion, accounting for 28.1% of revenue. In January 2019, Bristol-Myers Squibb announced its acquisition of Celgene for $74 billion, thereby securing the blockbuster drug lenalidomide. According to Celgene’s financial report, lenalidomide generated sales of $9.685 billion in 2018, a year-over-year increase of 18.3%.

Top 3 Products by Sales (USD billion)

The oncology drug Opdivo and the anticoagulant Eliquis are the primary drivers of Bristol-Myers Squibb’s performance growth, contributing over 58% of the company’s revenue, while sales of liver disease medications such as entecavir have declined sharply. A cause for concern for Bristol-Myers Squibb is the slowing sales growth of Opdivo, with its growth rate dropping from 10.2% to 0.6% between the second and fourth quarters of 2018. Meanwhile, Merck & Co.’s Keytruda generated $7.171 billion in sales revenue in 2018, taking the lead in the PD-1 market.

Pfizer: Slowing Performance Growth, Welcomes 4 New Drugs

According to Pfizer’s financial report, the company’s total revenue for 2018 was $53.647 billion, a year-on-year increase of 2%. Performance growth slowed due to the expiration of patents on multiple products, including Viagra. The full-year revenue was primarily composed of innovative medicines and mature medicines, accounting for 62.31% and 37.69%, respectively. Total R&D investment amounted to $8.006 billion, representing 14.9% of revenue. Meanwhile, Pfizer projected its total revenue for 2019 to be between $52 billion and $54 billion.

Top 3 Products by Sales (USD billion)

Among the top three products, sales growth for Prevnar 13 and Lyrica has slowed, while sales of Ibrance, a new breast cancer drug, surged by 32% to exceed $4 billion. With its approval for launch in China in 2018, Ibrance is expected to contribute even more significantly to Pfizer’s sales.

In 2018, Pfizer received FDA approval for four new drugs: Vizimpro (dacomitinib) and Lorbrena (lorlatinib) for non-small cell lung cancer, Talzenna (talazoparib) for breast cancer, and Daurismo (glasdegib) for acute myeloid leukemia. Pfizer’s robust and comprehensive product portfolio spans multiple sectors, including biopharmaceuticals, vaccines, and consumer healthcare products, with vaccines, small-molecule drugs, and biopharmaceuticals serving as the primary drivers of its performance growth.

AbbVie: Humira Scales New Heights, Brushing Past $20 Billion

According to AbbVie’s financial report, the company’s total revenue for the full year 2018 amounted to USD 32.733 billion, representing a year-on-year increase of 15.2%. Total R&D expenditure reached USD 10.329 billion, accounting for 31.6% of its revenue.

Top 3 Products by Sales (USD Billion)

Adalimumab (Humira) is AbbVie’s most important product in the field of autoimmune disease treatment, contributing over 60% of the company’s revenue and retaining the title of global “blockbuster drug” for many consecutive years. With the expiration of Humira’s patent in the European market, its revenue growth has slowed. AbbVie is currently developing next-generation new drugs for rheumatoid arthritis, while several new molecular compounds in its oncology portfolio are also undergoing clinical trials.

Conclusion

Judging from the financial reports, Pfizer, the “pharmaceutical giant,” still dominates the multinational pharmaceutical companies with a revenue of $53.6 billion, followed closely by Novartis with $51.9 billion in revenue. By analyzing the sales and growth performance of core products from major pharmaceutical giants, it is evident that while blockbuster drugs remain formidable, the impact brought by generics and biosimilars is also unmistakable. Fortunately, as new generations surpass the old, innovative products are gaining momentum and gradually becoming the key drivers of business performance.

Menet Database Reminder: In the pharmaceutical industry, R&D comes first; if new drugs underperform, financial results will bring tears. The importance of new drug development goes without saying. A flagship product is to a pharmaceutical company what Humira is to AbbVie.