The global pharmaceutical
market was estimated at USD 1.11 trillion in 2017 and projected to reach USD
1.43 trillion by 2020. In 2017, North America, Asia Pacific and Western Europe
pharmaceutical market approximately accounted for 37%, 22% and 20% global
market share respectively.
In 2017, top-10 global pharmaceutical
companies generated sales of USD 437.257 billion accounting for roughly 40%
global market share and top-15 global pharmaceutical companies generated sales
of USD 568.617 billion accounting for 51% global market share. A comparative
analysis of the top-15 organizations was used to develop a ranking for these
companies.
The ranking model incorporated
seven criteria for each organization with focus on revenues generated by
pharmaceutical products and growth in pharmaceutical revenues (2016 – 2017).
The criteria includes pharmaceutical revenues, annual pharmaceutical revenue
growth, total R&D expense, total expense, total income, proportion of
revenue from top three pharmaceutical products and revenue per employee. A
score statistic was developed based on these selected criteria. Each company
was assigned a score for each criteria and a weighted sum was used to arrive at
the final score statistic. Pharmaceutical revenue received the highest weight
(45%) while revenue from top 3 products (5%) receives the lowest. The score
statistic represented the pharmaceutical financial health and diversity of
product portfolio of each company.