The global pharmaceutical industry is huge and was estimated to be over $1.11 Trillion in 2017. The Top 10 firms alone generated revenues of over $437.0 billion accounting for about 40% of the global market share according to a report published earlier this year by IGEA Hub. They analyzed the top 15 companies to develop and identify the top ranked 10 companies. The criteria used in the ranking is described below:
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.
The following infographic shows The Top 10 Pharmaceutical Companies 2018 based on revenues in 2017:
Click to enlarge
Source: IGEA Hub
The US market tickers of the above firms are listed below:
Europe-based: Roche Holding AG (RHHBY), Novartis AG (NVS), Sanofi (SNY), GlaxoSmithKline (GSK)
US-based: Pfizer Inc (PFE), AbbVie Inc(ABBV), Johnson & Johnson (JNJ), Merck & Co Inc (MRK), Gilead Sciences, Inc.(GILD), Amgen(AMGN)
Investors looking to add some exposure to the pharma sector can start their research beginning with these drug giants.
Disclosure: No Positions
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