Global pharmaceutical market revenues are growing steadily. From 2001 to 2020, the figure is estimated to have risen from 390.2 billion to 1,265.2 billion in 2020. The pharmaceutical industry is crucial to the research and distribution of medicines. But which companies have the highest turnover in the sector? What is their net profit and what are their R&D expenses?
According to financial statements published by companies in the sector, Johnson & Johnson is the world’s leading company by turnover. With a turnover of more than 82 billion, this company, founded in 1886, tops the charts. J&J has 132,200 employees worldwide as of 2019.
Sinopharm ranks second among pharmaceutical companies with the highest turnover. Sinopharm is a Chinese state-owned company founded on 26 November 1998 in Beijing. According to published data, Sinopharm achieved a turnover of 66.3 billion in 2020. This puts it in second place worldwide, just ahead of Roche.
Roche is a Swiss multinational company now in the pharmaceuticals and diagnostics sector. It too was founded in the 19th century, in Basel. In 2020 Roche had a total turnover of 62.05 billion, just behind Sinopharm. In 2017 there were 93,734 employees at this company and net profit, sun a turnover of 53.3 billion, was CHF 8.8 billion.
Eight of the world’s top companies are from the USA. In addition to the aforementioned Johnson & Johson, which will be in first place in terms of turnover in 2020, there are Merck & Co. , AbbVie, Bristol Myers Squibb and the world-famous Pfizer. Pfizer has seen its 2020 turnover fall from 51.75 billion to 41.9 billion. But in the 2021 projections it managed to return to higher levels, reaching $55.52 billion in sales.
Top Biotech and pharmaceutical companies by net income
We have seen the ranking of the top pharmaceutical companies by turnover. But which are the world’s top companies by net profit?In first place – among the companies whose balance sheets are available – is Johnson & Johnson. J&J’s turnover is over 82 billion while net profit is 17.88 billion. In second place is Roche with a profit of 15.3 billion and in third place Pfizer with 12.4 billion in net profit.
Spending on pharmaceutical research and development
We’ve seen how pharmaceutical companies’ revenues have increased. But has research spending also increased? Generally speaking, yes. Spending in 2012 on research and development was 137 billion in total. In 2021, it is estimated that this may have reached 212 billion with a growth of 75 billion in just nine years. The absolute figure therefore tells us that there has been growth.
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See the video here: Top Pharmaceutical Companies