Though the statistics aren’t out for 2017 yet, worldwide the pharmaceutical market has increase a trillion dollar industry year-over-year since 2014. Even with threats from major tech companies like Apple (NASDAQ:AAPL), Google (NASDAQ:GOOGL), and Amazon (NASDAQ:AMZN) expressing interest in the industry, the pharmaceutical industry only shows signs of developing and growing stronger.
This week, Intermountain Healthcare made an announcement that may shake the pharmaceutical industry—if they’re successful, that is. They’re focusing to end drug shortages and reduce prices by establishing a not-for-profit generic drug company. The initiative is in collaboration with Ascension, SSM Health, and Trinity Health, in consultation with the US Department of Veterans Affairs, which jointly represent more than 450 hospitals around the US. But, it’s doubtful this will affect stocks in 2018 as it often takes years for new companies to be established.
Here we take a look at the top 10 largest pharmaceutical companies dominating the industry to give investors insight. These companies have all made it to the top spots by developing new medications which have shaped the world, and have earned a spot in the top 10 by selling a variety of stable products. It’s always important to focus attention on these companies because in many ways, they dictate where the pharmaceutical industry is heading.
1. Johnson & Johnson (NYSE:JNJ)
It’s no secret that this company has been a household name for decades. With a market cap shy just shy of $400 billion—almost double the market cap than its closest competitor—it shouldn’t be a surprise Johnson & Johnson is top on our list. The company is the top in its industry based on consumer healthcare revenue with revenue of $71.89 billion. They’re also the name behind some of the most common American products such as Tylenol, Aveeno, and Bandaid. In 2017, its third-quarter sales increased by 10.3 percent from 2016, totaling $19.7 billion.
2. Pfizer (NYSE:PFE)
Pfizer works with a range of health products and treatments from therapeutics to technologies impacting drug discovery and development. As it currently stands, Pfizer’s market cap is $220.13 billion. Pfizer is the brains behind Advil, Emergen-C, and Robax. In December of last year alone, the company had three FDA approvals for new drugs.
3. Roche Holdings (OTCMKTS:RHHBY)
The Swiss Roche Holdings currently has a market cap of $210.18 billion. The company ended 2017 by purchasing Ignyta, a US Cancer drug maker for $1.7 billion, and with an FDA and EC approval for its new treatment, Roche’s Perjeta, for a specific treatment of early stage breast cancer. Both of its pharmaceutical and diagnostic divisions grew by five percent to a total of $49 billion since the beginning of 2017.
4. Novartis (NYSE:NVS)
Novartis is a Swiss multinational pharmaceutical company based in Basel. Similar to Roche Holdings, Novartis’ market cap is $203.34 billion. Net sales from the company increased two percent from all products to $12.413 billion, growing the net income seven percent to $2.083 million. Some of the company’s focus are cancer, cardio-metabolic, neuroscience, immunology and dermatology, among others.
5. AbbVie (NYSE:ABBV)
With a market value at $170 billion, AbbVie is a global company developing and commercializing advanced therapies and oncology treatments. Their worldwide net revenues increased 8.8 percent year-over-year in 2017 with $6.9 billion in Q3. Sales for one of its most popular products, HUMIRA, a medication used to treat types of arthritis and Crohn’s disease, increased by 15.8 to $4.70 billion.
6. Merck (NYSE:MRK)
Another company also focused on animal health, Merck, a company that first developed vaccines for mumps and rubella. As it currently stands, Merck has a market cap of $166.6 billion. Last year, however, the company had a two percent decrease in revenue in Q3 to $10.3 billion. This came as a result of a cyberattack, which resulted in Merck losing $135 million in sales and another $240 million from a borrowing from the U.S. Centers for Disease Control.
7. Sanofi (NYSE:SNY)
The France-based Sanofi has started the year off by acquiring Bioverativ (NASDAQ:BIVV) for $11.6 billion to enhance their own revenue and earnings growth, whose market cap is currently $107.9 billion. Some of the company’s lead products include Dulcolax for digestive health, Selsun Blue for Health and Beauty, and Cliniderm for Cosmeceuticals.
8. Bayer (OTCMKTS:BAYRY)
This German multinational company has a market cap of $107.77 billion and is focused on consumer health, animal health, and crop science—the latter explains their $63.5 billion deal with Monsanto, which is yet to be approved by the EU. Their third quarter earnings showed their sales are almost five percent higher than the full 2016 year at $42 billion, but profits may be higher this year if the Monsanto deal goes through. Bayer’s best known product is Aspirin.
9. Gilead Sciences (NASDAQ:GILD)
Gilead Sciences, with a market cap of $106.34 billion, is a US-based company with a broad focus which include HIV/AIDS, Liver Diseases, and Inflammation/Respiratory. They are currently playing a central role with developing a single tablet regimen for patients with HIV/AIDS. The total revenue for their 2017 third quarter was $6.5 billion, which was $1 billion lower than the same quarter in 2016.
10. GlaxoSmithKline (NYSE:GSK)
This British company develops a wide range of prescription medicines, vaccines, and commonly known consumer health products such as Voltaren, NeoCitran and Sensodyne. Its market cap is $95.59 billion with main growth in pharmaceuticals and consumer healthcare products. GlaxoSmithKline’s new product sales increased to $2.377 billion thanks to Nucala a respiratory and meningitis vaccine, and Shingrix, a shingles vaccine approved in the US and Canada.
This is an updated version of an article originally published on the Investing News Network in 2016.
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Securities Disclosure: I, Gabrielle Lakusta, hold no investment interest in any of the companies mentioned.