The pharmaceutical industry is responsible for the research, development, production, and distribution of medications. The market has experienced significant growth during the past two decades, and pharma revenues worldwide totaled 1.25 trillion U.S. dollars in 2019.
Top pharmaceutical companies
The pharma industry is comprised of some major multinational companies. Based on the prescription drugs market, Pfizer is one of the world’s leading pharmaceutical companies. The company, which has its global headquarters in New York City, generated total revenues of around 51.7 billion U.S. dollars in 2019, the majority of which was derived from sales of its products. Other top global players from the United States include Johnson & Johnson, Merck & Co., and AbbVie.
Pharma industry by country
Many of the leading pharma companies come from the United States, and, therefore, it is no surprise that the country has the largest pharmaceutical market worldwide. China has become one of the main players in the industry, and annual growth rates of the emerging pharma market have been strong in recent years. However, projected pharmaceutical sales show that the established markets of North America and Europe will still be leading the way in 2023. Some of the biggest European companies are Novartis, Roche, GlaxoSmithKline, and Sanofi.
How much do companies spend on R&D?
More than any other industry, the pharmaceutical sector is highly dependent on research and development, with some companies investing around 20 percent of their sales revenues in R&D projects. This share can be much higher at companies that specialize in research and generate low sales. The discovery of new drugs is vital for the continued growth of pharma companies, and sales of new branded drugs can provide sizeable contributions to total revenues. However, the loss of patent protection can have serious consequences, and competition from generic drugs is a major challenge for companies. The expiration of a product patent can result in a significant reduction in revenues, as experienced by Pfizer’s Lipitor from 2012 onwards.
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In the following 6 chapters, you will quickly find the 42 most important statistics relating to "Global pharmaceutical industry".