OCTOBER 2017 MED AD NEWS • 9
top 50 pharma companies
Tracleer expands our Janssen
business and provides a leading
commercial position in an estab-
lished area of transformational
medical innovation for patients
with serious illnesses and signif-
icant unmet medical needs.”
In 2016, Pfizer concluded
an extensive assessment of its
commercial businesses – Pfizer
Essential Health and Pfizer In-
novative Health. “We concluded
that shareholders would benefit
best from our continuing to op-
erate these two businesses within
Pfizer, taking advantage of our
operational strength and finan-
cial flexibility,” says Pfizer CEO
Company executives say Pfizer Innovative Health achieved
strong revenue growth in 2016
due to the performance of a differentiated and diverse group
of new and older products, including the breast cancer drug
Ibrance, the vaccine Prevnar
13, the rheumatoid arthritis drug
Xeljanz, the neuropathic pain
drug Lyrica, and the anti-smoking drug Chantix.
Pfizer Essential Health established market-leading positions
in sterile injectables with more
than 250 products, biosimilars
with three marketed products
and the industry’s largest anti-infectives portfolio with 80 assets globally. The anti-infectives
portfolio was further bolstered
through the acquisition of AstraZeneca’s small molecule anti-infectives portfolio primarily
outside of the United States. The
Essential Health business also
includes many of Pfizer’s long-established products such as
Lipitor and Celebrex.
Acquisitions again played an
important role in 2016 as well as
thus far in 2017 with the companies profiled in this issue.
In August 2017, Gilead and
Kite Pharma announced that
the companies had entered into a
definitive agreement pursuant to
which Gilead would acquire Kite
for $180.00 per share in cash.
The transaction, which values
Kite at about $11.9 billion, was
unanimously approved by both
the Gilead and Kite Boards of Directors and is anticipated to close
in the fourth quarter of 2017.
Pfizer in 2016 acquired Bam-
boo Therapeutics, a privately
held biotechnology company
based in Chapel Hill, N.C., fo-
cused on developing gene ther-
apies for the potential treatment
of patients with certain rare
diseases including Duchenne
muscular dystrophy (DMD) and
Friedreich’s ataxia (FA). Through
this acquisition, Pfizer acquired
a number of novel assets, key
technology and manufacturing
capabilities that executives say
position the company to be a
leader in this promising area of
research that has the potential to
For Bayer (see profile on page
31), a particular highlight of 2016
was the acquisition of Monsan-
to, which is intended to further
strengthen Bayer as a life science
company and create substantial
additional value in the long-term
value via more innovation, stron-
ger growth and greater efficiency.
“The two businesses are highly
complementary, both in terms of
their geographical fit and their
product portfolios,” says CEO
Werner Baumann. “It is a good
step for Bayer as a whole since
the two companies’ combined
expertise will improve our ability
to help address one of the most
urgent issues of our time: how to
feed the some 10 billion people
who are expected to be living on
our planet by 2050.”
Baumann says with Monsan-
to, Bayer would be better able
to provide farmers worldwide
with a product offering that is
tailored to their needs and offers
them genuine added value: from
the right choice of seeds through
seed treatment to controlling
weeds, pests and plant diseases.
In a more pharma-focused
move, in December 2016 Bayer
established a joint venture called
BlueRock Therapeutics with
Versant Ventures with combined
funding of $225 million. The ven-
ture will develop stem cell thera-
pies for curing a range of diseases.
“BlueRock Therapeutics is the
second large investment made
by the Bayer Lifescience Center,
which has the mission to rapidly
uncover, encourage and unlock
fundamental scientific breakthroughs in medicine and agriculture,” Baumann says.
Pharma companies are trying
(and with some success) to
overcome the impact of generic
competition with a renewed focus on R&D and the reshuffling
of resources. These are not the
only strategies the industry uses
but one of those longstanding
tactics has drawn the attention
of U.S. lawmakers.
In September, Reuters reported
that a hearing, held by members of
the House Judiciary Committee’s
antitrust subcommittee, discussed
ways to prevent drugmakers from
using rules developed to safeguard
patients to instead block the sale
of cheaper medicines.
The focus of the hearing was
on the use by some pharmaceutical companies of FDA’s “Risk
Evaluation and Mitigation Strategies” program to protect their
pharmaceuticals from generic
According to Reuters, under the
FDA program, generic companies
often must buy samples of a drug
they want to copy from the brand
name company that makes the
drug, rather than a wholesaler.
Drugmakers have been accused
of refusing to make such sales,
and the House and Senate are
both considering legislation that
would allow generic drug compa-
nies to sue to demand samples.
The legislation under consideration would also provide for damages for generic companies denied access to brand name drugs.
Under the FDA’s REMS program, 71 drugs are covered by
varying levels of protection. Drugs
with REMS include Indivior’s
Suboxone, Sanofi Genzyme’s
Lemtrada and Danco Laboratories’ Mifeprex. medadnews
General notes: For this annual special report, which is in its 31st year
of publication, Med Ad News editors rank and pro;le the world’s top
50 companies that generate revenue from healthcare products.
Companies that research, develop, manufacture, and sell healthcare
products with a strong base in pharmaceuticals are eligible to be included in this special report. As de;ned by Med Ad News, healthcare
products include human prescription and over-the-counter pharmaceuticals, generics, imaging agents, medical devices, medical
equipment, medical/surgical supplies, raw pharmaceutical chemicals, diagnostics, and animal healthcare products.
To be considered for the top 50 company list, companies must
be independent and publicly traded (or make their ;nancials public) and must have the capability to develop, manufacture, and market human prescription therapeutic drugs. Companies are ranked
according to the name of the parent company. All companies are
ranked in the main table by their worldwide 2016 healthcare revenue. This number was provided by the companies, unless otherwise
noted. Unless other wise stated, all other data in tables represent
the group’s consolidated ;nancial ;gures.
There are two companies debuting for the ;rst time in Med Ad
News’ top 50 listing: Lupin at No. 46 and Cipla at No. 50.
Many top 50 companies reported on a calendar-year basis (year
ended Dec. 31, 2016). These companies reported on a ;scal-year basis (year ended March 31, 2017): Astellas Pharma, Cipla, Daiichi Sankyo, Eisai, Lupin, Mitsubishi Tanabe Pharma, Shionogi, Sumitomo
Dainippon Pharma, Sun Pharmaceutical Industries, Taisho Pharmaceutical Holdings, and Takeda Pharmaceutical. The ;scal year for Aspen and CSL ended June 30, 2017. Mallinckrodt’s ;scal year ended
Sept. 30, 2016 (September 2017 year-end ;nancials were not available as this magazine went to press).
Revenue: In tables that rank by revenue, each company is positioned according to worldwide revenue – either by healthcare or
consolidated group, depending on the chart. The revenue ;gures
include net sales of healthcare products, and potentially interest,
dividends, and other income when provided. Sales from discontinued operations have been included when applicable.
Earnings: This number represents the net-income ;gure that appears in the income statement, after taxes and after nonrecurring
and extraordinary charges. The net-income ;gure is based on the
consolidated sales of the group. Figures with a minus sign (-) indicate a loss.
Earnings per share: The number for earnings per common share is
taken directly from company ;nancial statements. This ;gure, based
on consolidated results of the group, is adjusted for stock splits and
stock dividends. Med Ad News editors used the diluted earnings
per share ;gure when provided. Figures with a minus sign (-) indicate a loss.
Research and development: In the chart that ranks each top 50
company according to the research and development expenditure
of healthcare products, the numbers were provided by the companies. Also provided is each company’s total R&D expenditure (
consolidated) for all businesses. For some of the Japanese companies,
the healthcare R&D was not provided and thus the consolidated ;gure was used in its place; in these instances, the di;erence between
the healthcare and consolidated R&D totals was not a large amount.
Total assets: This number represents the company’s year-end total
assets as reported in the company’s balance-sheet statement, and
is for the group.
Shareholders’ equity: This number represents total shareholders’ equity at year-end as reported in the company’s balance-sheet
statement, and is for the group.
Employees: This number represents the total number of employees for the year.
Market capitalization: The information that appears in this chart
shows the market capitalization of companies. The information
came from Yahoo! Finance, Google Finance, and other sources and
re;ects company market capitalization as recently as Sept. 22, 2017.
Exchange rates: For non-U.S. companies reporting in foreign currency, Med Ad News editors used exchange rates to convert income-statement and balance-sheet ;gures to U.S. dollars. The conversions have been made for the purpose of convenience and
comparison only. Med Ad News editors used average exchange rates
to calculate income-statement ;gures and balance-statement ;gures. The exchange rates are based on data made available by the
U.S. Federal Reserve Board ( federalreserve.gov) and certain company documents. Unless otherwise indicated, the editors used the average 2016 exchange rates. So that the percent change in ;nan-cial-statement and balance-sheet information re;ects the actual
increase or decrease in the company’s home-country currency, the
editors used a constant rate of exchange for 2016 and 2015. This re;ects the increase or decrease actually reported by the non-U.S.
company. The same exchange rate was used for the income-statement and the balance-sheet ;gures.
For the companies that report in euros, Med Ad News translated U.S. dollar amounts from euros at the rate of €1.00 to $1.1072,
the average rate of exchange in 2016. The top 50 companies that reported in euros were: Bayer, Boehringer Ingelheim, Grifols, Merck
KGaA, Sano;, Stada, and UCB.
For the companies that report in yen, Med Ad News translated
U.S. dollar amounts from yen at the March 2017 rate of ¥112.9165
to $1.00, except for Chugai Pharmaceutical, Kyowa Hakko Kirin and
Otsuka Holdings, whose numbers were translated at the 2016 average rate of ¥108.66 to $1.00. The top 50 companies that reported in yen were: Astellas, Chugai, Daiichi Sankyo, Eisai, Kyowa Hakko Kirin, Mitsubishi Tanabe, Otsuka, Shionogi, Sumitomo Dainippon,
Taisho, and Takeda.
For the company that reports in pounds sterling, Med Ad News
translated U.S. dollar amounts from pounds sterling at the rate of
£1.00 to $1.3555, the average rate of exchange in 2016. The top 50
company that reported in pounds sterling was GlaxoSmithKline.
For the company that reports in Swiss francs, Med Ad News trans-
lated U.S. dollar amounts from Swiss francs at the rate of SFr0.9848
to $1.00, the average rate of exchange in 2016. The top 50 company
that reported in Swiss francs was Roche.
For the companies that report in Danish kroner, Med Ad News
translated U.S. dollar amounts from the kroner at the rate of
DKr6.7276 to $1.00, the average rate of exchange in 2016. The top
50 company that reported in Danish kroner was Novo Nordisk.
For the companies that report in Indian rupees, Med Ad News
translated U.S. dollar amounts from the rupee at the March 2017
rate of Rs65.8009 to $1.00. The top 50 companies that reported in
Indian rupees were Cipla, Lupin and Sun.
For the company that reported in South African rand, Med Ad
News translated U.S. dollar amounts from the rand at the June 2017
rate of R12.8924 to $1.00. The top 50 company that reported in
South African rand was Aspen.
Selection criteria for Company of the Year
The criteria for selecting the Company of the Year are based on a model developed by the editors of Med Ad News. Each one of the top 50
companies is evaluated on a number of categories, including these:
• Recent and projected future ;nancial strength
• Number of billion-plus drugs on the market
• Number of potential billion-plus drugs in the pipeline
• Recent number of new drug introductions
• Number of new drugs to be launched in the near future
• Quality of new products
• Quality of management and vision
• Marketing ability and activity
• Strength of the product pipeline
• First-half current-year performance
• Formative events and actions
• Business strategy
• Corporate governance and ethics
• Wall Street standing
• Responsiveness to market forces
• Shareholder value
• Future direction and potential
PAST COMPANIES OF THE YEAR
2015: Gilead Sciences
2013: Novo Nordisk
2012: Teva Pharmaceutical Industries
2005: Johnson & Johnson
1999: Eli Lilly
1996: Abbott Laboratories
1994: SmithKline Beecham
On Generic Competition