FiercePharma | Eric Sagonowsky
The pharma industry is always
in flux, but the big names always turn up near the top of yearly sales
rankings. This year is no different, with Johnson & Johnson, Roche,
Pfizer, Novartis and Merck & Co. taking the top 5 spots in Big Pharma
companies by 2018 sales.
In fact, the top 15 names
are the same against prior year rankings, but the order has
shifted. Last year’s No. 5, Sanofi, slipped to No. 7 as its sales sank
almost 2% year over year. Gilead Sciences, famously under hepatitis C pricing
pressure for years, sank even farther in 2018, slipping three positions to
No. 13.
On the flip side,
Bristol-Myers Squibb climbed from No. 15 to No. 12. And if the company scores
its massive Celgene buyout, it’ll be even higher next year. Adding Celgene’s
$15 billion in 2018 revenue would have given BMS nearly $38 billion in annual
sales, ranking it among the top 10 pharma companies by annual sales
And next year’s ranking will
see at least one entirely new entrant in Takeda. The Japanese biopharma
recently scooped up Shire but hasn't released its combined financials for
2018 to make it eligible for the rankings.
Many companies on this
list have faced big patent losses in recent years, while some have big launches
coming up, too. Amgen and Johnson & Johnson saw their first copycat
competition for anemia drugs Procrit and Epogen last year, while Amgen
also had to face off against Neulasta biosims.
Looking ahead, several of
these top companies will be working on blockbuster launches. Market
watchers believe AbbVie, which markets the world's top drug, Humira, will win
approval for rheumatoid arthritis drug upadacitinib this year. Analysts predict
the drug will generate $2.24 billion by 2024, a much-needed boost as
megablockbuster Humira starts facing biosims in 2023. Novartis, AstraZeneca and
other drugmakers have blockbuster launches slated for 2019 as well.
For these rankings and company
profiles, FiercePharma consulted company earnings reports, securities
filings, earnings transcripts and analyst reports, plus our own archives.
We segregated Bayer’s crop sciences unit as too far removed from
human or animal health but included healthcare businesses at other top drugmakers,
such as J&J’s medical devices and Roche’s diagnostics divisions.
We converted 2018 results to
U.S. dollars using average exchange rates for the year provided by drugmakers.
Average conversion rates for the year were 1 Swiss franc to $0.98 USD, £1 to
$1.33 and €1 to $1.18.
Boehringer Ingelheim might
have generated enough sales last year to make the list, but the company
doesn't report until April 17. We'll update the report after Boehringer
releases 2018 results.
Beyond their individual challenges,
these top-ranked companies saw plenty of shared changes and setbacks last
year. The Trump administration rolled out numerous drug pricing measures and
proposals, some favored by the industry and others hated. In one big setback,
last year Congress boosted their share of responsibility in Medicare Part D’s
“doughnut hole.” The change could cost some companies hundreds of millions of
dollars, or even billions, each year. But drugmakers support the
administration's proposal to shake up rebates in Medicare and Medicaid.
Overall, the industry garnered
approvals for 59 novel drugs last year, setting a record, according to the
FDA. Among them were the pharma industry’s first cannabinoid-derived
drug, Epidiolex from GW Pharma, and several new CGRP migraine
prevention drugs. Amgen and Novartis, Teva and Eli Lilly are working to
build that new class.
Drugmakers face some big
question marks in 2019. With Democrats in control of the U.S. House, lawmakers
have already called top CEOs on the carpet to explain their drug pricing, and
numerous bills aimed at cutting drug costs are in the offing.
And perhaps more importantly,
FDA Commissioner Scott Gottlieb, M.D., will be handing over the reins. It
remains to be seen who the Trump administration will tap to run the agency and
just how active that new chief might be. During his time at the FDA, Gottlieb
garnered an industry-friendly reputation, instituted new programs and
guidelines across the board, and worked hard to fight high drug
costs.
The top 15 pharma
companies by 2018 revenue
