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Analysis Provides Snapshot Of Growth Revenue In Top 20 Publicly Traded Pharma Companies

In terms of revenue generation, 2018 was a good year for the pharmaceutical industry, with 16 of the top 20 publicly traded companies posting year-on-year growth in revenue.

This morning, GlobalData, a data and analytics company, noted that multiple companies posted more than 25% gains in revenue for last year, including Takeda, Celgene and AbbVie. Those three companies posted the largest gains over the year, GlobalData said.

Takeda’s revenue increased by 18.5% to $18.9 billion, driven by the strong performance of its key drugs Entyvio (vedolizumab) and Ninlaro (ixazomib), GlobalData said. The company is banking on continued revenue growth from its acquisition of Shire, which was completed earlier this year.

Celgene, which is in the midst of being absorbed by Bristol-Myers Squibb, saw a 17.5% growth in revenue for 2018, a $2.5 billion gain. The company’s revenue gains were primarily driven by sales of Revlimid (lenalidomide), which earned about $10 billion in sales last year, Otezla (apremilast) and Pomalyst/Imnovid (pomalidomide). This morning, BMS and Celgene announced the sale of Otezla to Amgen for $13.4 billion. Last year, Otezla generated about $1.6 billion for Celgene.

Illinois-based AbbVie saw the bulk of its revenue driven by Humira, which generated about $20 billion in sales last year. Over 2018, the company’s revenue grew by $4.5 billion, a 16.1% increase from 2017. In addition to Humira, AbbVie’s revenue was also boosted by sales of Mavyret (glecaprevir/pibrentasvir) and Imbruvica (ibrutinib). Patent protection for Humira is running out in the United States, with a 2023 cliff looming and the company is looking for new revenue drivers. The rheumatoid arthritis treatment has already lost exclusivity in Europe.

Many of the companies that saw gains in 2018 benefitted from a repatriation of taxes, GlobalData said. According to the report, half of the companies on the list reported over 25% growth in net profit, while Eli Lilly, Johnson & Johnson, Bristol-Myers Squibb, Amgen, Merck and GlaxoSmithKline reported more than 100% growth in profits.

The biggest losers of 2018 were Gilead Sciences and Allergan, which is currently being acquired by the aforementioned AbbVie. Gilead saw a 15.2% decline in revenue due to the weak performance of its hepatitis C virus drugs including Harvoni and Viread. Harvoni, which at one time brought in more than $20 billion in revenue, posted $3.1 billion in sales in 2018. That marked a 72% decline from the previous year, GlobalData reported. Viread generated $700 million, a 71% decline from the previous year, according to the analysis.

Operating profit was also key for several companies, who benefited from a one-time repatriation tax opportunity, said Peter Shapiro, GlobalData’s director. Shapiro noted that Eli Lilly, GlaxoSmithKline and Merck all reported more than 25% growth in operating profit.  Novartis posted a 61.5% increase in its operating profit that was primarily driven by the growth in income of its associated companies due to the pre-tax gain of $5.8bn from the sale of its 36.5% stake in the GSK consumer healthcare joint venture, Shapiro said.

GlobalData generated its report, which focused on year-over-year change and compound annual growth rate for revenue, operating profit and net profit. It selected the top 20 publicly traded companies based on 2018 revenues and the innovative nature of their revenues. – Bio Space

 

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