GlobalData Industry Profile
Global Pharmaceuticals
October 2023
Reference Code: 0199-0372
Publication Date: October 2023
Primary NAICS: 325412
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Global Pharmaceuticals
Industry Profiles
1. Executive Summary
1.1. Market value
The global pharmaceuticals market grew by 4.6% in 2022 to reach a value of $1,299.3 billion.
1.2. Market value forecast
In 2027, the global pharmaceuticals market is forecast to have a value of $1,639.3 billion, an increase of
26.2% since 2022.
1.3. Geography segmentation
Asia-Pacific accounts for 32.7% of the global pharmaceuticals market value.
1.4. Market rivalry
The global research-based pharmaceuticals market is dominated by a relatively small number of
multinational corporations, alongside smaller firms such as biotech players focused on a small number of
new products; generics companies are also present. The presence of large international incumbents, as
well as the number of companies operating within the market, increases the level of rivalry. The leading
players in the market include Johnson & Johnson, Bayer, Novartis, and Pfizer. The presence of large-scale
global competitors and smaller generics companies fighting for each drug's approval in a lucrative market
ensures rivalry is strong.
1.5. Competitive landscape
The global pharmaceuticals market is dominated by several large multinational corporations such as
Johnson & Johnson, Bayer, Novartis, and Pfizer that leverage their financial muscle, brand reputation, and
significant research and development investment to gain a competitive edge. These companies also have
a widespread geographical presence, meaning that they benefit from the scale of their international
operations. Nonetheless, several smaller firms, such as biotech players, that are focused on a small
number of new products also influence the market, and the large number of companies operating overall
intensifies competition.
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TABLE OF CONTENTS
1.
Executive Summary
3
1.1.
Market value ................................................................................................................................................3
1.2.
Market value forecast ..................................................................................................................................3
1.3.
Geography segmentation.............................................................................................................................3
1.4.
Market rivalry...............................................................................................................................................3
1.5.
Competitive landscape.................................................................................................................................3
2.
Market Overview
8
2.1.
Market definition .........................................................................................................................................8
2.2.
Market analysis ............................................................................................................................................8
3.
Market Data
3.1.
4.
Market value ..............................................................................................................................................10
Market Segmentation
4.1.
5.
6.
11
Geography segmentation...........................................................................................................................11
Market Outlook
5.1.
10
12
Market value forecast ................................................................................................................................12
Five Forces Analysis
13
6.1.
Summary ....................................................................................................................................................13
6.2.
Buyer power...............................................................................................................................................15
6.3.
Supplier power ...........................................................................................................................................17
6.4.
New entrants .............................................................................................................................................19
6.5.
Threat of substitutes ..................................................................................................................................21
6.6.
Degree of rivalry.........................................................................................................................................23
7.
Competitive Landscape
25
7.1.
Who are the leading players? ....................................................................................................................25
7.2.
What strategies do leading players follow? ...............................................................................................25
7.3.
What are the most recent market developments?....................................................................................26
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Global Pharmaceuticals
Industry Profiles
8.
Company Profiles
28
8.1.
Bayer AG ....................................................................................................................................................28
8.2.
Novartis AG ................................................................................................................................................33
8.3.
Pfizer Inc.....................................................................................................................................................38
8.4.
Johnson & Johnson ....................................................................................................................................42
9.
Macroeconomic Indicators
9.1.
10.
47
Country data ..............................................................................................................................................47
Appendix
48
10.1.
Methodology..............................................................................................................................................48
10.2.
Industry associations..................................................................................................................................49
10.3.
Related GlobalData research .....................................................................................................................50
| About GlobalData
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Industry Profiles
LIST OF TABLES
Table 1: Global pharmaceuticals market value: $ billion, 2017–22
10
Table 2: Global pharmaceuticals market geography segmentation: $ billion, 2022
11
Table 3: Global pharmaceuticals market value forecast: $ billion, 2022–27
12
Table 4: Bayer AG: key facts
28
Table 5: Bayer AG: annual financial ratios
30
Table 6: Bayer AG: key employees
31
Table 7: Bayer AG: key employees Continued
32
Table 8: Novartis AG: key facts
33
Table 9: Novartis AG: annual financial ratios
35
Table 10: Novartis AG: key employees
36
Table 11: Novartis AG: key employees Continued
37
Table 12: Pfizer Inc.: key facts
38
Table 13: Pfizer Inc.: annual financial ratios
39
Table 14: Pfizer Inc.: key employees
40
Table 15: Pfizer Inc.: key employees Continued
41
Table 16: Johnson & Johnson: key facts
42
Table 17: Johnson & Johnson: annual financial ratios
44
Table 18: Johnson & Johnson: key employees
45
Table 19: Johnson & Johnson: key employees Continued
46
Table 20: Global exchange rate, 2018–22
47
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LIST OF FIGURES
Figure 1: Global pharmaceuticals market value: $ billion, 2017–22
10
Figure 2: Global pharmaceuticals market geography segmentation: % share, by value, 2022
11
Figure 3: Global pharmaceuticals market value forecast: $ billion, 2022–27
12
Figure 4: Forces driving competition in the global pharmaceuticals market, 2022
13
Figure 5: Drivers of buyer power in the global pharmaceuticals market, 2022
15
Figure 6: Drivers of supplier power in the global pharmaceuticals market, 2022
17
Figure 7: Factors influencing the likelihood of new entrants in the global pharmaceuticals market, 2022
19
Figure 8: Factors influencing the threat of substitutes in the global pharmaceuticals market, 2022
21
Figure 9: Drivers of degree of rivalry in the global pharmaceuticals market, 2022
23
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2. Market Overview
2.1.
Market definition
The pharmaceuticals market consists of ethical drugs only and does not include consumer healthcare or animal
healthcare.
Market values have been calculated at ex-factory prices (the value at which manufacturers sell the drugs to
distributors).
All market data and forecasts are represented in nominal terms (i.e., without adjustment for inflation) and all
currency conversions used in the creation of this report have been calculated using constant 2022 annual
average exchange rates.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific,
the Middle East, Ghana, Morocco, Nigeria, and South Africa.
North America consists of Canada, Mexico, and the United States.
South America consists of Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Panama,
Peru, Puerto Rico, and Uruguay.
Europe consists of Austria, Belgium, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal,
Romania, Russia, Slovak Republic, Spain, Sweden, Switzerland, Turkey, Ukraine, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific consists of Australia, China, Hong Kong, India, Indonesia, Japan, Kazakhstan, Malaysia, Myanmar,
New Zealand, Pakistan, the Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Turkmenistan, and
Vietnam.
The Middle East comprises Bahrain, Egypt, Iran, Israel, Kuwait, Oman, Saudi Arabia, and the United Arab
Emirates.
2.2.
Market analysis
The global pharmaceuticals market experienced healthy growth during the historic period. The market
experienced healthy growth of 4.6% in 2022, owing to the increased need for drugs and medicines as a result of
the rise in acute and chronic diseases. The market is expected to experience healthy growth over the forecast
period.
The Asia-Pacific region acquired a 32.7% share of the global pharmaceuticals market in 2022. The growth in the
global pharmaceuticals market is mainly due to the growth in emerging markets such as China and India.
Emerging markets bring new opportunities to pharmaceutical companies. Moreover, according to GlobalData, by
2025, 50% of the new patients in high-growth areas, including diabetes and oncology, are expected to come from
BRIC countries. Additionally, the increasing population of people aged 65 and older consumes more medical
solutions than younger people and is more susceptible to chronic diseases such as ALS, which weakens muscles in
the elderly, and heart failure. For instance, according to GlobalData, the population aged above 65 years in China
increased by 3.8% in 2022 from the previous year.
The global pharmaceuticals market had total revenues of $1,299.3 billion in 2022, representing a compound
annual growth rate (CAGR) of 5.5% between 2017 and 2022. In comparison, the Asia-Pacific and US markets grew
with CAGRs of 9.1% and 4.1%, respectively, over the same period to reach respective values of $424.4 billion and
$408.0 billion in 2022.
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The growth of the pharmaceuticals market in recent years can be partly attributed to rising GDP, increased
specialty drug innovation, and increasing access to medicines. For instance, the real GDP annual growth rate of
China in 2022 stood at 3%, according to in-house research. Moreover, specialty medications are frequently
shielded by patents, which give the manufacturer exclusive rights for a predetermined amount of time. In
contrast, when these patents expire, generic versions of the medications may be released on the market,
increasing competition and possibly driving down prices. Pharmaceutical businesses lessen the effects of patent
expirations and continue market expansion by consistently inventing and creating new specialty pharmaceuticals.
Taking these factors into consideration, the global pharmaceuticals market is poised for sustained growth.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 4.8% over 2022–27, which
is expected to drive the market to a value of $1,639.3 billion by the end of 2027. Comparatively, the Asia-Pacific
and US markets will grow with CAGRs of 7.6% and 2.6%, respectively, over the same period to reach respective
values of $613.1 billion and $463.0 billion in 2027.
The global pharmaceuticals market is poised for sustained growth in the future, propelled by a proactive
embrace of emerging technologies, digitalization to enhance operational efficiency, and government support and
funding. The Indian Ministry has launched a "Strengthening of Pharmaceutical Industry (SPI)" scheme, totaling
INR5 billion, to support existing pharma clusters and MSMEs in improving productivity, quality, and sustainability.
FDI is allowed up to 100% through the automatic route for greenfield pharmaceutical projects and up to 74% for
brownfield pharmaceutical projects through the automatic route and government approval. Moreover, in August
2023, the government also announced a scheme to promote research and innovation in the pharmaceutical
medical technology sector, estimated to cost INR50 billion ($636.1 million), to reduce the country's dependence
on imports of orphan drugs and medical devices. The government will select nine manufacturers of drugs and
medical devices to conduct research in six priority areas.
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3. Market Data
3.1.
Market value
The global pharmaceuticals market grew by 4.6% in 2022 to reach a value of $1,299.3 billion.
The compound annual growth rate of the market in the period 2017–22 was 5.5%.
Table 1: Global pharmaceuticals market value: $ billion, 2017–22
Year
$ billion
€ billion
% Growth
2017
994.6
943.9
2018
1,114.3
1,057.4
12.0%
2019
1,135.4
1,077.4
1.9%
2020
1,184.2
1,123.8
4.3%
2021
1,241.7
1,178.3
2022
1,299.3
1,233.0
4.9%
4.6%
CAGR: 2017–22
Source: GlobalData
5.5%
© GlobalData
Figure 1: Global pharmaceuticals market value: $ billion, 2017–22
Source: GlobalData
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4. Market Segmentation
4.1.
Geography segmentation
Asia-Pacific accounts for 32.7% of the global pharmaceuticals market value.
United States accounts for a further 31.4% of the global market.
Table 2: Global pharmaceuticals market geography segmentation: $ billion, 2022
Geography
2022
%
Asia-Pacific
424.4
32.7
United States
408.0
31.4
Europe
353.5
27.2
Middle East
21.3
Rest of the World
92.1
1.6
7.1
1,299.3
100%
Total
Source: GlobalData
© GlobalData
Figure 2: Global pharmaceuticals market geography segmentation: % share, by value, 2022
Source: GlobalData
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5. Market Outlook
5.1.
Market value forecast
In 2027, the global pharmaceuticals market is forecast to have a value of $1,639.3 billion, an increase of 26.2%
since 2022.
The compound annual growth rate of the market in the period 2022–27 is predicted to be 4.8%.
Table 3: Global pharmaceuticals market value forecast: $ billion, 2022–27
Year
$ billion
€ billion
% Growth
2022
1,299.3
1,233.0
4.6%
2023
1,363.3
1,293.7
4.9%
2024
1,432.1
1,359.0
5.0%
2025
1,505.7
1,428.9
5.1%
2026
1,569.2
1,489.1
2027
1,639.3
1,555.6
4.2%
4.5%
CAGR: 2022–27
Source: GlobalData
4.8%
© GlobalData
Figure 3: Global pharmaceuticals market value forecast: $ billion, 2022–27
Source: GlobalData
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6. Five Forces Analysis
The pharmaceuticals market will be analyzed taking pharmaceutical manufacturers as players. The key buyers
will be taken as hospitals, pharmacies, and government healthcare programs, and providers of active
pharmaceutical ingredients, appropriate manufacturing/laboratory equipment and clinical trial services as the
key suppliers.
6.1.
Summary
Figure 4: Forces driving competition in the global pharmaceuticals market, 2022
Source: GlobalData
© GlobalData
The global research-based pharmaceuticals market is dominated by a relatively small number of multinational
corporations, alongside smaller firms such as biotech players focused on a small number of new products; generics
companies are also present. The presence of large international incumbents, as well as the number of companies
operating within the market, increases the level of rivalry. The leading players in the market include Johnson &
Johnson, Bayer, Novartis, and Pfizer. The presence of large-scale global competitors and smaller generics companies
fighting for each drug's approval in a lucrative market ensures rivalry is strong.
Buyer power is strengthened by the oligopoly status and price control policies of state and private sector institutions
that are ultimately the major purchasers of drugs. Obtaining high-quality materials, equipment, personnel, and thirdparty clinical testing services is vital to the business of pharmaceutical companies. The pharmaceuticals market is
characterized by strong buyer power, with the ease of market entry strongly affected by legal and regulatory
frameworks.
Major suppliers to the pharmaceutical market are manufacturers of active pharmaceutical ingredients (APIs), which
form a sub-sector of the chemical industry. Some of the leading suppliers of raw ingredients in the global market
include BASF, Bayer, and DuPont de Nemours (formerly DowDuPont), which produce key inputs such as disintegrants,
glidants, and diluents.
New entrants must satisfy regulators that their products are safe and effective. Non-drug therapies are substitutes for
many pharmaceuticals. In addition, research-based drugs that are no longer protected by patents may be substituted
by cheaper generic copies, with many 'blockbuster' drugs coming off patent in the next few years, giving the market a
so-called 'patent cliff' to negotiate.
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There are several substitutes for pharmaceuticals considered in this report. Patients may choose traditional remedies.
Physicians may opt for non-drug treatments if they consider them more appropriate. Successful drugs coming off
patent also allow buyers to purchase generic drugs. This risk is, however, mildly reduced, as not all drugs have an
effective generic replacement, meaning the original can be sold unhindered by competitors even after the patent
ends. In some instances, it is even the original company that produces the generic to try to prevent generic makers
from smuggling into the market.
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6.2.
Buyer power
Figure 5: Drivers of buyer power in the global pharmaceuticals market, 2022
Source: GlobalData
© GlobalData
Pharmaceutical manufacturers may sell to drug wholesalers, which then sell on to pharmacies or healthcare
institutions such as hospitals. Mature markets are facing rising healthcare costs due to aging populations, and
governments are therefore putting increasing pressure on prices. Conversely, emerging markets are growing in
potential and becoming more important for manufacturers. Some of the largest buyers in the global market include
various National Health Services, CVS Corporation, Cigna, and Walgreens, all of which have strong financial muscle and
purchase large quantities of drugs. Some independent pharmacies exist, but they often operate on a small scale and
supply isolated communities.
Except for OTC and similar drugs, prescriptions are generally required to obtain pharmaceutical products. The
marketing of prescription drugs by their manufacturers is therefore largely directed at medical practitioners, with
whom they wield a significant influence. In fact, with the notable exception of the US, advertising such products
directly to consumers is usually illegal.
Depending on the medical condition, there may be several different drug treatments available, and product
differentiation in these cases weakens buyer power. Such differentiation can include efficacy, ease of use, side effects,
and cost-effectiveness. The move towards genetic and genomic research, giving rise to the possibility of personalized
medicine, is also likely to decrease buyer power. Conversely, where generic equivalents to a branded drug exist,
differentiation is decreased and buyer power is enhanced.
The primary source of funds for drug purchases is, in most cases, a public or private-sector health insurer or similar
body. These may fund purchases directly, as does the National Health Service in the UK, or they may reimburse some
or all of an end-user’s initial purchase. This increases buyer power. Not only can such large purchasers exert
monopsony market power, but it is also very common for them to use one or more specific price control strategies.
Governments may simply set drug prices directly, in which case it becomes illegal to sell at a different price. Where
governments are responsible for the reimbursement of consumers, they may set a very low reimbursement price for
new or existing drugs on the market.
Reference price regimes, in which reimbursement levels are set by comparison of the price of a drug in peer-group
countries and/or therapeutic categories, are common. Where a therapeutic category contains generics, the effect may
be to push down the reference price for on-patent drugs in the same category. A similar effect can occur when peer
group countries have lower per capita incomes than the country making the comparison.
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Several countries, such as the US and Germany, are moving towards a value-based pricing system in which the price of
drugs is based on health outcomes rather than development costs.
Price, volume, or profit controls may exist. These set a limit to the volume of a drug that may be sold in the country or
to the amount of profit a drug company can make, beyond which manufacturers must offer either compensatory
payments to the government or price reductions. Import tariffs are also used to encourage manufacturers to locate in
a given economy.
Such systems may be regarded as market distortions. However, where they are in force, it is because policymakers
consider that the social benefits of lower-cost drugs, such as improved access to healthcare, outweigh the social
harms, such as a potential reduction in pharmaceutical companies’ ability to invest in R&D.
Price sensitivity is becoming a key issue for new drugs. However, this is not because healthcare providers are unwilling
to pay high prices for new and innovative therapies, but because of the growing media backlash against drug
companies charging hundreds of thousands, sometimes millions, of dollars for advanced therapy treatment regimens.
Vertex Pharmaceuticals exemplifies this debate in the US and UK: having developed multiple therapies for cystic
fibrosis, a rare and incurable genetic disease, the company is in an ongoing battle with reimbursement agencies
regarding the pricing of its latest therapy—$293,000 per patient.
Factors weakening buyer power include the high importance of pharmaceuticals in healthcare. This is obvious in
systems such as the US, where many individuals are personally responsible for significant co-pays and private
insurance premiums. But even in the UK, where the National Health Service is funded entirely by taxation and free at
the point of use, it would be politically hazardous for a government to neglect healthcare. The COVID-19 pandemic
has made this issue ever more important as governments around the world demand vaccinations and other
treatments to help control the spread of the virus.
Although the ultimate users (individual patients, i.e., voters) of pharmaceuticals interact with the pharmaceutical
market through the political system rather than a straightforward value chain, they still have a significant impact on
the purchasing process.
Overall, buyer power is assessed as moderate.
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6.3.
Supplier power
Figure 6: Drivers of supplier power in the global pharmaceuticals market, 2022
Source: GlobalData
© GlobalData
Major suppliers to the pharmaceutical market are manufacturers of active pharmaceutical ingredients (APIs), which
form a sub-sector of the chemical industry. Some of the leading suppliers of raw ingredients in the global market
include BASF, Bayer, and DuPont de Nemours (formerly DowDuPont), which produce key inputs such as disintegrants,
glidants, and diluents.
Several leading pharmaceutical companies have major investments in fine chemical manufacturing, providing them
with a degree of self-sufficiency, which reduces supplier power to some extent. APIs are supplied on a contractual
basis, so pharmaceutical companies are likely to risk high switching costs if they consider taking their business
elsewhere. In turn, pharmaceutical companies employ sourcing managers to minimize costs and mitigate supplier
power. The development of new therapeutic agents requires the sourcing of newer APIs, for which chemical
manufacturers can charge pharmaceutical companies higher prices. If the novel drug successfully reaches the market,
the supplier of the API can make a large amount of money.
Market players tend to purchase their raw materials from numerous suppliers, reducing their reliance on any
particular company. In general, laboratory equipment and chemicals show little differentiation between suppliers,
with customers utilizing a high degree of choice to obtain the best quality and cost relationship, reducing supplier
power. However, there are instances where specialized facilities or raw materials are required, such as the sterile
processing of biological materials. In such cases, supplier power is much stronger. It is unlikely that suppliers would
forward-integrate into the pharmaceutical market; however, their capabilities in chemical synthesis make them ideal
candidates for forward integration into the manufacture of generic drugs.
Over recent years, larger pharmaceutical companies have turned to producing their chemicals in a bid to enhance
profits; however, smaller companies lack the resources required to do this and remain reliant on API manufacturers.
For instance, Sanofi announced its plans to launch a new standalone business unit called EUROAPI in the recent past.
The company intends to become the largest API producer in the European region with the introduction of a new unit.
Pharmaceutical companies will likely be keener to backward integrate into APIs because those ingredients are
essential to producing the final generic drug and are therefore going to be most in demand.
In September 2022, the Department of Health and Human Services announced investment plans of $40 million to
expand the role of biomanufacturing for active pharmaceutical ingredients (APIs), antibiotics, and the crucial raw
materials required to produce vital medications and combat pandemics. However, several API suppliers in the US
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market could weaken supplier power by providing pharmaceutical companies with a greater ability to shop around
and select suppliers based on factors such as price.
The Indian pharmaceuticals market has witnessed considerable growth in recent years; however, the country relies
heavily on the import of APIs to manufacture pharmaceutical goods and meet rising demand. In response, the Indian
government announced plans in recent years to implement a production-linked incentive scheme for the promotion
of domestic manufacturing key starting materials (KSMs), drug intermediates (DIs), and APIs. Under the scheme, the
government planned to invest in new machinery and equipment, research facilities, and the building of new
production plants. India has started manufacturing 38 active pharmaceutical ingredients (APIs) in the last 1.5 years,
reducing import dependency under the production-linked incentive (PLI) scheme, according to the Union Health
Ministry.
It is common for pharmaceutical companies to outsource their drug testing and clinical trials to third-party test service
providers. Given the importance of these trials for regulatory approvals, these service providers are also important
suppliers.
Overall, supplier power is moderate.
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6.4.
New entrants
Figure 7: Factors influencing the likelihood of new entrants in the global pharmaceuticals market, 2022
Source: GlobalData
© GlobalData
Regulation and legal frameworks can affect the ease of market entry in several ways. Firstly, a company wishing to
market its products must demonstrate that its drugs are safe and effective, to the satisfaction of the national
regulator. Examples of regulators include the Health Sciences Authority in Singapore, India’s Drug Standard Control
Organization, and the Pharmaceutical and Food Administration (FDA) in the US.
A start-up company that intends to develop an entirely new biotech drug will need significant up-front investment,
often from venture capital companies, and this must be available for the time it takes to develop and test the product.
In Singapore, the National Medical Research Council (NMRC) offers up to $250,000 in funding for the development of
an innovative healthcare-related product up to the point of commercialization. This could provide an opportunity for
smaller players with something new to offer to gain entry to the market by assisting with the high costs that act as a
barrier. Similarly, the Dutch government offers an Ambitious Entrepreneurship Action Plan, in which a total of EUR75
million ($86 million) of funding has been set aside for entrepreneurs and start-up companies with innovative
contributions across a range of industries.
Meeting regulatory requirements is time-consuming; it can take 10 to 15 years to bring a drug to market. According to
the Pharmaceutical Research and Manufacturers of America (PhRMA), out of 5,000 to 10,000 screened compounds,
only 250 enter preclinical testing, of which only five enter human clinical trials, and finally just one will be approved. In
addition to investing a significant amount in research and development, manufacturers also spend substantial costs
on marketing, which further increases the capital required by new entrants.
On the other hand, entering a specific country market with an existing drug is likely to be easier, provided the
licensing authority there is satisfied.
A further regulatory barrier to entry is the use of restrictive formularies: for a specific therapeutic category, only
certain drugs may be listed as preferred. This does not mean that non-formulary alternatives are unsafe or ineffective.
Rather, they can only be prescribed in special circumstances with prior approval from the relevant authority or with
more substantial co-payments from the patient. The potential market for non-formulary drugs will therefore be
smaller than the size of the therapeutic class market might imply.
Due to the relatively low manufacturing costs of small molecules, patent protection is the major barrier to entry for
new entrants into the market. The intensity of competition can result in significant legal action around the time a
major drug reaches the end of its patent life, particularly for ‘blockbuster’ drugs that sell more than $1 billion a year.
Secondary patents covering new alterations in the drug formulation, dosing regimens, or methods of administration
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are usually pursued, prompting litigation between major pharmaceutical and generic companies. Indeed, it is usually
worthwhile for a manufacturer to spend millions in legal fees to delay the launch of a new generic product by several
weeks, due to the profitability of major blockbuster drugs.
The nature and strength of intellectual property protection are dependent on the specific market; however,
compliance with international IP legislation is improving in developing markets, particularly where these markets are
shifting to knowledge-led economies.
New entrants will also have to recruit specialists in the field to develop and produce innovative medications.
Researchers often have a bachelor’s degree in chemistry or a related field; potential employees with qualifications of
this nature often command higher salaries, which could prove to be a barrier for new entrants.
Entry into markets around the world varies significantly, but there is an overall trend of reducing opportunities as
governments seek to lower drug prices, particularly for generic drugs. Even countries such as South Korea, which has
an aging population, have limited prospects for new entrants because of government pressure on companies to
reduce prices. Developing markets are improving regarding regulation, making the task of entering the market for
large foreign companies easier. In markets with the wealthiest healthcare systems, getting access is difficult.
Regulatory authorities impose sets of rules that demand the highest testing standards and are motivated to keep
prices as low as possible.
Current players in the generics market, with whom new entrants must compete, are well-established companies that
benefit from scale economies. These include leading companies such as Teva and Sandoz (a division of Novartis).
Barriers to entry for a generics company will depend on factors such as the expiration of patents on those drugs it
intends to replicate and the likelihood that the patent holder will protect its market position by offering a similar drug
under a new or extended patent. Also, laws defending intellectual property vary from country to country. In some
cases, patent law may be undeveloped. In others, governments may explicitly prioritize public health needs over
private intellectual property rights. For example, India did not allow drugs to be patented until 2005 (in line with WTO
requirements) and currently only grants patents to completely new drugs rather than improvements to existing
products.
Overall, the barriers to market entry are high, and the threat of new entrants is weak.
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6.5.
Threat of substitutes
Figure 8: Factors influencing the threat of substitutes in the global pharmaceuticals market, 2022
Source: GlobalData
© GlobalData
There are several substitutes for pharmaceuticals considered in this report. Patients may choose traditional remedies.
Physicians may opt for non-drug treatments if they consider them more appropriate. Successful drugs coming off
patent also allow buyers to purchase generic drugs.
Switching costs for patients here are relatively low. However, they may be more significant for the ultimate buyers,
the healthcare providers. For example, suppose a national healthcare system reviewed the clinical evidence and
decided that a chronic condition that had been treated by drugs taken for the patient’s lifetime could be treated by a
simple surgical procedure. This would be a beneficial and cheap alternative. However, it might require more surgical
teams to be trained and more operating theaters to be made available, which the healthcare system would also need
to fund. These would constitute switching costs.
The main substitutes for branded drugs are generics and biosimilars (also known as follow-on biologics).
Manufacturers of generics can offer the same drug at a much lower price, as they rely on the safety and efficacy data
provided by the innovator product, and they therefore do not have to conduct costly clinical trials. According to the
NHS, 81% of all drugs used in primary care in England are prescribed generically to generate savings for the country’s
health system. The Australian government has aimed to increase the prescription of generic and biosimilar medicines
and is undertaking several initiatives to increase healthcare professionals' and consumers' awareness of and
confidence in the use of biosimilar medicines. China’s National Health Commission has also been encouraging the
production of generic alternatives in recent years, increasing the threat of this substitute. For example, China is in
talks with Pfizer to secure a license allowing domestic drugmakers to manufacture and distribute a generic version of
Pfizer's COVID-19 antiviral drug Paxlovid in China. This follows a licensing arrangement with the U.N.-backed
Medicines Patent Pool, which allows 35 generic drugmakers, including five Chinese firms, to produce cheap versions
of Paxlovid for 95 poorer countries. Overall, the push to use generic drugs where possible in many countries around
the world increases the threat of this substitute.
Despite the growth of conventional medicine, particularly in the Asia-Pacific region, old ideas about the supposed
healing qualities of rhino horn and parts of other animals remain embedded in a large number of people. The
continued use of treatments that predate modern medicine is a threat to the pharmaceutical market. Increasing
demand for herbal medicines and alternative drugs is expected to offer substantial opportunities to substitute for the
pharmaceutical market. Alternative medicines and treatments are also popular in other countries in the region, such
as Japan, Singapore, and South Korea. Chinese traditional medicine and Ayurvedic medicine are two of the oldest
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systems of medicine in the world and have been practiced in those regions for thousands of years. They are both
extremely popular all over the Asia-Pacific region, and many countries have adopted their take on the teachings.
Although there has been a backlash against these products, they have been retained within many systems in part
because of their effectiveness as placebo therapy. Medical practitioners consider prescribing a ‘pure’ placebo
unethical, and therefore alternative medicines continue to be a prescribed substitute product in many healthcare
systems.
Counterfeit drugs are also an issue in Russia. A report by Deutsche Welle estimated that some 50% of drugs sold
through online pharmacies could be fake, and as many as 27% of drugs on Russian pharmacy shelves are fake.
However, the Russian government has enacted several laws, including a 12-year prison sentence and a large fine for
counterfeiting or falsifying medicines.
The threat of substitutes is assessed as moderate.
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6.6.
Degree of rivalry
Figure 9: Drivers of degree of rivalry in the global pharmaceuticals market, 2022
Source: GlobalData
© GlobalData
The global research-based pharmaceuticals market is dominated by a relatively small number of multinational
corporations, alongside smaller firms such as biotech players focused on a small number of new products; generics
companies are also present. The presence of large international incumbents, as well as the number of companies
operating within the market, increases the level of rivalry. The leading players in the market include Johnson &
Johnson, Bayer, Novartis, and Pfizer.
A further trend is big players' swapping key asset portfolios. The practical benefit is reducing overall costs by
increasing specialization, therefore eliminating research in less profitable areas. The downside is the possibility that
drugs will be produced by fewer companies, decreasing the chance of breakthroughs.
Large companies often lose revenue due to the expiration of patents and are increasingly motivated to acquire
smaller companies that have strong revenue potential due to innovative products. In July 2023, Novartis acquired DTx
Pharma, a preclinical biotechnology company that focuses on oligonucleotide therapeutics, for around $1 billion. The
acquisition will allow Novartis to develop life-changing medicines for patients with neuromuscular diseases and
nervous system disorders, strengthen its neuroscience pipeline, and expand its capabilities in RNA therapeutics.
Therefore, acquisitions are common in this particular market and are a key way for companies to establish a
competitive edge.
Research-based pharmaceutical companies are similar to media companies in that they rely on initially creating
valuable intellectual property at a high cost, which can then be used to create mass-produced products at a relatively
low cost. The ability of generics companies to be profitable while selling the same molecule at a much lower price
than the originator, following patent expiration, shows that establishing high-quality manufacturing processes is not
prohibitively costly. A secondary effect of this is that it is relatively easy for research-based companies to expand
output, for example, through licensing agreements with other companies, without the need to scale up their
production facilities. Given the increasing linkages between regulatory authorities and the greater likelihood of a drug
being approved in multiple locations, this tends to boost rivalry.
The Asia-Pacific is the largest pharmaceutical market globally, accounting for 32.7% of the global market’s total value
in 2022, while the US and European regions accounted for 31.4% and 27.2%, respectively. The US continues to be a
good market for new drugs; its consistent growth and sheer size have made it an attractive prospect for doing
business. However, growth in the US market is anticipated to decelerate somewhat over the next five years.
Comparatively, the Chinese market, which is the largest in the Asia-Pacific region and accounted for 50.2% of total
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Asia-Pacific value in 2022, is expected to grow over the forecast period. Therefore, the global market could see a shift
towards production and manufacturing in China, intensifying rivalry if market activity becomes more concentrated in
this geography.
Overall, the degree of rivalry is strong.
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7. Competitive Landscape
The global pharmaceuticals market is dominated by several large multinational corporations such as Johnson &
Johnson, Bayer, Novartis, and Pfizer that leverage their financial muscle, brand reputation, and significant
research and development investment to gain a competitive edge. These companies also have a widespread
geographical presence, meaning that they benefit from the scale of their international operations. Nonetheless,
several smaller firms, such as biotech players, that are focused on a small number of new products also influence
the market, and the large number of companies operating overall intensifies competition.
7.1.
Who are the leading players?
Johnson & Johnson
Johnson & Johnson (J&J) is one of the leading companies in the global pharmaceutical market. The company
develops, manufactures, and markets pharmaceuticals, consumer healthcare products, and medical devices. It
offers pharmaceuticals in the therapeutic areas of immunology, oncology, neuroscience, infectious diseases and
vaccines, pulmonary hypertension, cardiovascular, and metabolism. The company is headquartered in the US and
has a business presence across various regions, including Europe, Asia-Pacific, Africa, and the Western
Hemisphere (excluding the US), allowing it to benefit from the scale of its international operations.
Bayer
Bayer AG is a Germany-based life science company that develops, manufactures, and commercializes products
for human health and agriculture. It offers medicines for various diseases and technologies, including
cardiovascular diseases, cancer, hematology, and ophthalmology. It develops, produces, and sells
pharmaceutical, agricultural, and polymer products. The company classifies its business into three segments:
pharmaceuticals, consumer health, and crop science. The company markets its healthcare and crop protection
products through wholesalers, pharmacies, hospitals, and retailers, with subsidiaries in Asia-Pacific, Europe,
North America, Latin America, Africa, and the Middle East.
Novartis
Novartis AG is a Swiss healthcare company that specializes in the discovery, development, manufacture, and
marketing of prescription and generic pharmaceutical products and eye care products. It offers drugs for various
diseases, including cancer, cardiovascular, dermatological, neurological, ophthalmic, respiratory, hematologic,
solid tumors, immune disorders, and infections. The company conducts research through the Novartis Institutes
for BioMedical Research (NIBR) and operates through subsidiaries and offices worldwide.
Pfizer
Pfizer is a US-based biopharmaceutical company that develops, manufactures, and commercializes products for
various conditions like cardiovascular, metabolic, pain, women's health, cancer, inflammation, immune disorders,
and rare diseases. The company sells its products through wholesalers, retailers, hospitals, clinics, government
agencies, and pharmacies. Pfizer has manufacturing facilities in India, China, Japan, Ireland, Italy, Belgium,
Germany, Singapore, and the US and distributes its products in North America, South America, Asia-Pacific,
Australia, Europe, Africa, and the Middle East.
7.2.
What strategies do leading players follow?
Johnson & Johnson expands its operations and improves its presence through contracts and agreements. For
instance, in February 2023, Johnson & Johnson (China) Investment announced the renewal of the partnership
with Zhongchao to further strengthen cooperation in the field of innovative medicine and health. This extended
partnership helps in providing online professional medical training and education services for medical workers for
their diagnostic and therapeutic capabilities. This helps improve the accessibility and affordability of medical and
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health services and provides quality medical resources. In January 2023, the company, along with Walmart,
teamed up with CareSource to launch a new program supporting black maternal health across the state of
Georgia. This program aims at four factors: self-care support, high-touch pregnancy care, and healthcare
professional education. The agreement helps expand communities in the future and provides quality care to our
customers and patients. In October 2022, the company reached a cooperation agreement with Mersana
Therapeutics to jointly develop three new-generation ADC drugs. The company and Mersenna Research target
candidates during preclinical development. The company offers proprietary antibodies, whereas Mersana
provides its Dolasynthen platform to help find new ADC product candidates. After the preclinical stage, J&J
handles the clinical development and commercialization of the product. The agreement helps in the introduction
of new ADC drugs from the company and increases financial stability.
Pfizer's ability to receive approval for its products will enable it to enhance operations and strengthen its market
presence. In May 2023, the company announced that the U.S. Food and Drug Administration had approved
ABRYSVO for the prevention of respiratory syncytial virus (RSV) in older adults. The approval of this product
marks a significant milestone in Pfizer's dedication to addressing the substantial burden of RSV (Respiratory
Syncytial Virus) among higher-risk populations, including older adults. In March 2023, the company’s ZAVZPRE
(zavegepant) Migraine Nasal Spray received approval from the US Food and Drug Administration (FDA) for the
acute treatment of migraine. ZAVZPRET offers an alternative treatment option for people with migraines to gain
relief and get back to their daily lives. This increases the company’s migraine franchise by supporting billions of
people worldwide. In February 2023, the company’s CIBINQO (abrocitinib) received approval from the US Food
and Drug Administration (FDA). CIBINQO was approved to be used in the treatment of refractory, moderate-tosevere atopic dermatitis (AD). The product offers potential relief for young atopic dermatitis patients in need and
their families. This presents the company with fresh prospects in adolescent products. In January 2023, the
company secured approval from the Therapeutic Goods Administration for the bivalent COVID-19 vaccine.
Novartis views acquisitions and divestments as a major part of its growth. These initiatives are intended to
supplement Novartis’s growth and help expand its business and territorial coverage. In September 2022, the
company planned to invest $300 million in next-generation biotherapeutics. The investment will be $100 million
for the NIBR biologics center, $110 million for the clinical manufacturing and technical capabilities improvement
of Biocampus in Slovenia, and $60 million for Schaftenau in Austria. In June 2022, the company announced plans
to invest in the expansion of RLT production capabilities in both Millburn and Ivrea as well as building a new
radioligand manufacturing facility in Indianapolis, Indiana. In the same month, the company invested $250
million over five years to research and develop new treatments for neglected tropical diseases and malaria. In
this investment, $100 million is for advanced research and development for Chagas disease, leishmaniasis,
dengue fever, and cryptosporidiosis, whereas $150 million is for next-generation antimalarials and a new
formulation. In the same month, the company and other investors invested $119 million in AllAdapt
Immunotherapeutics. This investment helps in the improvement of ADP101, an FDA-approved therapy to treat
food allergies in patients.
Bayer's regulatory approvals and product launches have enhanced its outreach and financial performance. In
March 2023, the company and Orion received the Chinese National Medical Products Administration's approval
for the oral androgen receptor inhibitor (ARi) Nubeqa (darolutamide) in combination with docetaxel for the
treatment of patients with metastatic hormone-sensitive prostate cancer. Nubeqa has already received approval
in China for treating high-risk patients diagnosed with non-metastatic castration-resistant prostate cancer
(nmCRPC) to prevent the development of metastatic disease. This will help the company cater to more patients
in the Chinese region.
7.3.
What are the most recent market developments?
In August 2023, Chinook Therapeutics merged with Novartis AG, acquiring Chinook for $3.2 billion in cash. The
merger represents a premium of 83% to Chinook's 60-day volume-weighted average stock price and 67% to its
closing price in June 2023. Chinook shareholders will receive contingent value rights (CVRs) for up to $4 per share
upon future regulatory milestones for its lead product candidate, atrasentan. The total consideration, including
the CVRs, is estimated to be around $3.5 billion. The transaction has been approved unanimously by both
companies' boards of directors.
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In July 2023, Novartis acquired DTx Pharma, a preclinical biotechnology company that focuses on oligonucleotide
therapeutics, for around $1 billion. The acquisition will allow Novartis to develop life-changing medicines for
patients with neuromuscular diseases and nervous system disorders, strengthen its neuroscience pipeline, and
expand its capabilities in RNA therapeutics. The Falcon platform enables the delivery and activity of small
interfering RNA therapeutics to tissues beyond the liver.
In March 2023, Pfizer agreed to acquire Seagen for $43 billion. The acquisition helps in the expansion of the
company’s oncology product portfolio. Its major products include Padcev for the treatment of bladder cancer
and other ADCs. Seagen’s ADC technology improves innovative cancer care and enhances the existing portfolio
across both solid tumors and hematologic malignancies.
In October 2022, Pfizer completed the acquisition of Global Blood Therapeutics for $5.4 billion. The acquisition
enhances the innovation of the company and improves the potential treatments for people living with sickle cell
disease. This acquisition provides an opportunity to transform the lives of patients suffering from sickle cell
disease with the help of Global Blood Therapeutics product portfolio and clinical trials.
In October 2022, Pfizer completed the acquisition of the US-based Biohaven Pharmaceutical Holding Company.
Biohaven is a producer of NURTEC ODT (rimegepant), a migraine therapy used in the treatment of acute migraine
and the prevention of episodic migraine in adults. The acquisition helps in the addition of the calcitonin generelated peptide (CGRP) to the Pfizer portfolio, which includes Rimegepant, Zavegepant, and pre-clinical CGRP
assets. These products strengthen Pfizer’s innovative internal medicine portfolio.
In June 2022, Novartis completed the acquisition of US-based Kedalion Therapeutics and AcuStream technology.
The acquisition helps to increase the ophthalmics portfolio of the company and enhances the solution for unmet
patient needs in front-of-eye conditions.
In February 2022, Novartis acquired the UK-based Gyroscope Therapeutics from Syncona. Gyroscope
Therapeutics is used to develop pharmaceutical medicines for rare diseases of the eye to treat diseases of the
eye that cause vision loss and blindness. This acquisition enhances the expertise in retinal diseases, gene therapy,
and ophthalmology gene therapy of the company.
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8. Company Profiles
8.1.
Bayer AG
8.1.1.
Company Overview
Bayer AG (Bayer or 'the group') is a life science company that develops pharmaceutical, and chemical
products. The company offers prescription and non-prescription medical products, cosmetics, seeds, plant
traits, chemical, and biological crop protection products. It also offers products and solutions for the
prevention and treatment of diseases in companion and farm animals. The company markets its products
under various brands including Adalat, Redoxon, Baytril, Xofigo, Nativo, Serenade, Canesten, Afrin, Cydectin
and Seresto brand names. Bayer distributes its products directly to farmers and through pharmacies, retailers,
wholesalers, hospitals, veterinarians, supermarkets and drugstore chains. It has business presence in the Asia
Pacific, Europe, North America, Latin America, Africa, and the Middle East. The company is headquartered in
Leverkusen, Germany.
The company reported revenues of (Euro) EUR50,739 million for the fiscal year ended December 2022
(FY2022), an increase of 15.1% over FY2021. In FY2022, the company’s operating margin was 13.8%,
compared to an operating margin of 7.6% in FY2021. In FY2022, the company recorded a net margin of 8.2%,
compared to a net margin of 2.3% in FY2021. The company reported revenues of EUR10,342 million for the
third quarter ended September 2023, a decrease of 6.4% over the previous quarter.
8.1.2.
Key Facts
Table 4: Bayer AG: key facts
Head office:
Kaiser-Wilhelm-Allee 1 , Leverkusen, Germany
Telephone:
49214301
Fax:
492143066328
Number of Employees:
100873
Website:
www.bayer.com
Financial year-end:
December
Ticker:
BAYN
Stock exchange:
XETRA
Source: COMPANY WEBSITE
8.1.3.
© GlobalData
Business Description
Bayer AG (Bayer or 'the company) is a manufacturer and distributor of products for preventing, treating, and
alleviating diseases. The company develops medicines for cardiovascular diseases, women’s health, cancer,
hematology, ophthalmology, and other diseases. As of December 2021, the company operated 374 consolidated
companies in 83 countries.
The company operates through four reportable segments: Pharmaceuticals, Consumer Health, Crop Science, and
All Other segments.
The Pharmaceuticals segment offers prescription products for cardiology and women’s healthcare, and specialty
therapeutics in the areas of hematology, oncology and ophthalmology. It also includes the radiology business
that markets diagnostic imaging equipment together with the necessary contrast agents. It also offers products
for curing pulmonary hypertension, bacterial infections, dermatology and diabetes. The segment markets these
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products under Aspirin, yasmin, Xofigo, Adalat, Adempas, Xarelto, Stivarga, Mirena, Levitra brand names. The
segment distributes these prescription products through pharmacy wholesalers and hospitals. In FY2022, the
Pharmaceutical segment reported revenue of EUR19,252 million, which accounted for 37.9% of the company’s
revenue.
The Crop Science segment offers prescription products that includes seeds, plant traits, chemical and biological
crop protection products and digital for sustainable agriculture. The segment also provides pest and weed control
products and services to professional users outside the agriculture industry. It offers products under Acceleron,
Adengo, Nativo, Alion, Serenade, Fox, Gaucho, Harness, Maxforce, EsplAnade, FiberMax, Flint, Movento brand
names. The company sells these products directly to farmers and through wholesalers and retailer. In FY2022,
the Crop Science segment reported revenue of EUR25,169 million, which accounted for 49.6% of the company’s
revenue.
The Consumer Health segment offers nonprescription (over-the-counter) products, cosmetics, medicines and
other self-care solutions in the nutritional, dermatology, allergy, cardiovascular risk prevention, digestive health,
foot care, cough and cold and sun protection categories. The company markets these products under Claritin,
Aspirin, Aleve, Bepanthen/Bepanthol, Canesten, Afrin, Redoxon, Rennie, and Supradyn. The company sells these
products through supermarket and drugstore chains, pharmacies, online retailers and other large retailers. In
FY2022, the Consumer Health segment reported revenue of EUR6,080 million, which accounted for 12% of the
company’s revenue.
The All Other segment offers business support services. It also includes operations of Currenta, which manages
and operates the Chempark sites in Krefeld-Uerdingen, Dormagen, and Leverkusen. In FY2021, the All Other
segment reported revenue of EUR217 million, which accounted for 0.4% of the company’s revenue.
Geographically, the company operates in four regions: Europe, Middle East and Africa; North America; Asia
Pacific; and Latin America. In FY2022, the United States with 30.9% of the company’s revenue, followed by
Middle East, and Africa (excluding Germany and Switzerland) with 22.4%, Brazil with 10.5%, the Asia Pacific
(excluding China) with 10.2%, China with 8.4%, Latin America (excluding Brazil) with 7.8%, Germany with 4.9%,
North America (excluding the US) accounted for 3.7% and Switzerland with 1.2%.
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Table 5: Bayer AG: annual financial ratios
Key Ratios
Growth Ratios
Sales Growth %
Operating Income Growth %
EBITDA Growth %
Net Income Growth %
EPS Growth %
Working Capital Growth %
Equity Ratios
EPS (Earnings per Share) EUR
Dividend per Share EUR
Dividend Cover Absolute
Book Value per Share EUR
Profitability Ratios
Gross Margin %
Operating Margin %
Net Profit Margin %
Profit Markup %
PBT Margin (Profit Before Tax) %
Return on Equity %
Return on Capital Employed %
Return on Assets %
Return on Working Capital %
Operating Costs (% of Sales) %
Administration Costs (% of Sales) %
Liquidity Ratios
Current Ratio Absolute
Quick Ratio Absolute
Cash Ratio Absolute
Leverage Ratios
Debt to Equity Ratio Absolute
Net Debt to Equity Absolute
Debt to Capital Ratio Absolute
Efficiency Ratios
Asset Turnover Absolute
Fixed Asset Turnover Absolute
Inventory Turnover Absolute
Current Asset Turnover Absolute
Capital Employed Turnover Absolute
Working Capital Turnover Absolute
2018
2019
2020
2021
2022
4.93
-41.49
13.22
-76.89
-25.46
-51.82
18.52
20.50
-1.73
141.36
-4.12
16.17
-4.93
-488.49
-130.54
-356.54
-137.50
-111.85
6.48
120.74
109.53
452.10
-390.48
15.10
109.13
110.88
315.00
84.94
-15.72
3.47
2.80
1.24
49.30
3.33
2.80
1.19
48.10
-1.25
2.00
-0.62
31.07
4.39
2.00
2.20
33.61
8.12
2.40
3.38
39.47
58.14
9.40
4.61
138.88
5.13
3.69
3.33
1.68
43.50
90.60
40.50
59.55
9.56
9.39
147.23
6.55
8.66
4.04
3.24
45.12
90.44
37.10
53.77
-39.06
-25.35
116.32
-41.67
-34.38
-20.20
-8.64
1479.32
139.06
38.60
61.85
7.61
2.27
162.14
4.64
3.03
3.69
0.84
105.61
92.39
34.87
60.84
13.82
8.18
155.34
9.20
10.70
7.81
3.39
262.03
86.18
33.35
1.34
0.86
0.18
1.40
0.94
0.14
0.97
0.67
0.11
1.11
0.72
0.16
1.08
0.69
0.15
0.88
0.78
0.47
0.82
0.71
0.45
1.36
0.97
0.58
1.20
0.96
0.54
1.07
0.80
0.52
0.36
3.57
1.74
1.20
0.35
4.63
0.34
3.43
1.62
1.37
0.42
4.72
0.34
3.42
1.77
1.22
0.52
-37.88
0.37
3.61
1.51
1.29
0.49
13.88
0.41
3.85
1.59
1.44
0.57
18.96
Source: COMPANY FILINGS
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Table 6: Bayer AG: key employees
Name
Job Title
Board
Alberto Weisser
Director
Non Executive Board
Andre van Broich
Director
Non Executive Board
Andrea Sacher
Director
Non Executive Board
Antoine Bernet
Head Country Division Crop Science Canada
Senior Management
Asha Hope
Head North America Diversity, Equity and
Inclusion
Senior Management
Asha Hope
Vice President
Senior Management
Director
Non Executive Board
Vice President Communications, Crop Science
North America.
Senior Management
Head Oncology Strategic Business Unit
Pharmaceuticals Division
Senior Management
Global Head, Clinical Development and
Operations, Research and Development,
Pharmaceuticals
Senior Management
Claudia Schade
Director
Non Executive Board
Colleen A. Goggins
Director
Non Executive Board
President Consumer Health North America
Senior Management
Ertharin Cousin
Director
Non Executive Board
Francesco Grioli
Director
Non Executive Board
Frank Lollgen
Director
Non Executive Board
Chief Financial Officer Bayer U.S.
Senior Management
Barbara Gansewendt
Ben Kampelman
Christine Roth
Christoph Koenen
Dave Tomasi
Guru Ramamurthy
Heike Hausfeld
Vice Chairman
Executive Board
Heike Prinz
Chief Talent Officer
Senior Management
Heike Prinz
Labor Director
Senior Management
Heiko Schipper
Head Asia Pacific
Senior Management
Heiko Schipper
President Consumer Health Division
Senior Management
Heinz Georg Webers
Director
Non Executive Board
Horst Baier
Director
Non Executive Board
Jost Reinhard
Head Investor Relations
Senior Management
Juergen Eckhardt
Head Pharmaceuticals Business Development and
Licensing, Open Innovation
Senior Management
Kimberly Mathisen
Director
Non Executive Board
Michael Westmeier
Director
Non Executive Board
Source: COMPANY FILINGS
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Table 7: Bayer AG: key employees Continued
Name
Job Title
Board
Head Crop Science, UK, Ireland and Nordics
Senior Management
Norbert W. Bischofberger
Director
Non Executive Board
Otmar D. Wiestler
Director
Non Executive Board
Paul Achleitner
Director
Non Executive Board
Robert Gundlach
Director
Non Executive Board
Head Crop Science
Senior Management
Sarena Lin
Chief Transformation and Talent Officer
Senior Management
Sarena Lin
Director Labor
Senior Management
Head US Operations
Senior Management
Director
Non Executive Board
President Bayer South Asia
Senior Management
Head Pharmaceuticals
Senior Management
Head Oncology Development Oncology Strategic
Business Unit
Senior Management
William N. Anderson
Chief Executive Officer
Executive Board
William N. Anderson
Director
Executive Board
Wolfgang Nickl
Chief Financial Officer
Senior Management
Wolfgang Nickl
Head North America
Senior Management
Yasmin Fahimi
Director
Non Executive Board
Nils Bauer
Rodrigo Santos
Sebastian Guth
Simone Bagel-Trah
Simon-Thorsten Wiebusch
Stefan Oelrich
Tara Frenkl
Source: COMPANY FILINGS
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8.2.
Novartis AG
8.2.1.
Company Overview
Novartis AG (Novartis or ‘the company’) manufactures, and supplies pharmaceutical products, and generic
and biosimilar medicines. The company’s product portfolio includes biopharmaceuticals, ophthalmic
pharmaceuticals, anti-infectives, retail generics, vision care products, generic medicines and biosimilars. It
provides products for cancer, cardio metabolic, cell and gene therapy. Novartis offers its products under
Alcon, Azarga, Ciprodex, Cibacen, Cosentyx, Sandoz, Votrient, DAILIES, Clear Care, AIR OPTIX, FreshLook and
Lucentis brand names. It also conducts various research and development activities through its Novartis
Institutes for BioMedical Research (NIBR). It has operations across Asia, Europe, the US, and Africa. The
company is headquartered in Basel, Switzerland.
The company reported revenues of (US Dollars) US$51,742 million for the fiscal year ended December 2022
(FY2022), a decrease of 2.1% over FY2021. In FY2022, the company’s operating margin was 17.8%, compared
to an operating margin of 22.1% in FY2021. In FY2022, the company recorded a net margin of 13.4%,
compared to a net margin of 45.4% in FY2021. The company reported revenues of US$12,092 million for the
third quarter ended September 2023, a decrease of 46.9% over the previous quarter.
8.2.2.
Key Facts
Table 8: Novartis AG: key facts
Head office:
Lichtstrasse 35 , Basel, Switzerland
Telephone:
41613241111
Fax:
41613247826
Number of Employees:
103000
Website:
www.novartis.com
Financial year-end:
December
Source: COMPANY WEBSITE
8.2.3.
© GlobalData
Business Description
Novartis AG (Novartis or ‘the company’) is a provider of healthcare products worldwide. It manufactures,
develops, and sells eye care, generic and biosimilar medicines, oncology and pharmaceuticals medicines and
other products.
The company operates through two business segments: Sandoz and Innovative Medicines.
Under the Innovative Medicines (IM) segment, the company produces, develops, and sells patented prescription
medicines. It performs operations under two business units: Novartis oncology business unit and Novartis
pharmaceuticals. The Novartis oncology business unit consists of the global business franchises oncology is
responsible in the areas of cancer and hematologic products. Its Novartis pharmaceuticals business unit includes
global business franchises ophthalmology, neuroscience, immunology, hepatology and dermatology, respiratory,
cardio-metabolic, renal and metabolism, and established medicines. Novartis sell these products under Tasigna,
promacta/revolade, Zortress, Voltaren/Cataflam, Jadenu, Zykadia, Travatan Z, Tafinlar + Mekinist, Gilenya,
Diovan, Exelon, Galvus, Rydapt, Sandostatin LAR, and Votrient brand names. In FY2022, the Innovative Medicines
segment reported revenue of US$41,296 million, which accounted for 81.7% of the total net sales to third
parties.
Through Sandoz segment, Novartis offers patients and healthcare professional’s generics, anti-infectives and
biosimilars under units including biopharmaceuticals, retail generics, and anti-infectives in over 100 countries. It
operates manufacturing facilities in Barleben, Holzkirchen and Rudolstadt, Germany; Kundl and Schaftenau,
Austria; Ljubljana, Slovenia; and Strykow, Poland. The key products and brands include amoxicillin/clavulanic
©GlobalData THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
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Global Pharmaceuticals
Industry Profiles
acid (antibiotic); Glatopa (glatiramer acetate injection) 20 mg/mL, multiple sclerosis treatment; zoledronic acid,
osteoporosis treatment (retail generics). The company also manufactures classical and semisynthetic macrolides;
oral and sterile penicillins; clavulanic acid and mixtures with clavulanic acid (anti-infectives); Omnitrope; Zarzio,
Zarxio and Filgrastim Hexal, Zessly, Rixathon, Binocrit and Epoetin alfa Hexal (biopharmaceuticals). In FY2022, the
Sandoz segment reported revenues of US$9,249 million, which accounted for 19.3% of the total net sales to third
parties.
Geographically, the company classifies its operations into three segments: Europe, the Americas, and
Asia/Africa/Australasia. In FY2022, the Americas accounted for 42.6% of the total net sales to third parties,
followed by Europe (36.5%), Asia/Africa/Australasia (20.9%).
©GlobalData THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
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Global Pharmaceuticals
Industry Profiles
Table 9: Novartis AG: annual financial ratios
Key Ratios
Growth Ratios
Sales Growth %
Operating Income Growth %
EBITDA Growth %
Net Income Growth %
EPS Growth %
Working Capital Growth %
Equity Ratios
EPS (Earnings per Share) USD
Dividend per Share USD
Dividend Cover Absolute
Book Value per Share USD
Profitability Ratios
Gross Margin %
Operating Margin %
Net Profit Margin %
Profit Markup %
PBT Margin (Profit Before Tax) %
Return on Equity %
Return on Capital Employed %
Return on Assets %
Return on Working Capital %
Operating Costs (% of Sales) %
Administration Costs (% of Sales) %
Liquidity Ratios
Current Ratio Absolute
Quick Ratio Absolute
Cash Ratio Absolute
Leverage Ratios
Debt to Equity Ratio Absolute
Net Debt to Equity Absolute
Debt to Capital Ratio Absolute
Efficiency Ratios
Asset Turnover Absolute
Fixed Asset Turnover Absolute
Inventory Turnover Absolute
Current Asset Turnover Absolute
Capital Employed Turnover Absolute
Working Capital Turnover Absolute
2018
2019
2020
2021
2022
6.13
63.08
44.39
63.72
14.85
23.95
5.67
-35.98
-23.15
-6.97
2.03
-79.18
2.62
11.73
11.43
-31.20
13.94
-373.06
5.97
15.14
7.14
197.58
152.32
-558.06
-2.15
-21.32
-8.00
-71.05
-59.79
-46.78
3.79
2.90
1.31
34.01
3.87
3.05
1.27
24.49
4.41
3.39
1.30
25.08
11.12
3.20
3.48
30.27
4.47
3.46
1.29
28.00
70.54
30.84
27.41
239.48
30.63
16.04
12.24
9.05
238.30
69.16
29.75
71.35
18.69
24.13
249.06
18.39
21.15
10.08
8.89
732.74
81.31
29.45
71.14
20.35
16.18
246.51
19.80
14.26
10.72
6.56
-299.82
79.65
28.24
70.81
22.11
45.43
242.58
49.43
35.51
11.51
18.51
75.36
77.89
28.02
71.01
17.77
13.44
244.99
16.18
11.72
10.36
5.58
111.42
82.23
27.42
1.20
0.97
0.45
1.04
0.83
0.39
0.90
0.68
0.29
1.51
1.29
0.41
1.29
1.04
0.10
0.41
0.21
0.29
0.53
0.32
0.34
0.67
0.47
0.40
0.46
0.04
0.31
0.47
0.15
0.32
0.33
2.86
1.96
1.44
0.40
7.73
0.37
3.30
2.15
1.49
0.54
39.21
0.41
3.60
2.20
1.69
0.53
-14.74
0.41
3.91
2.24
1.40
0.52
3.41
0.42
4.09
2.17
1.25
0.58
6.27
Source: COMPANY FILINGS
©GlobalData THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
© GlobalData
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Global Pharmaceuticals
Industry Profiles
Table 10: Novartis AG: key employees
Name
Job Title
Board
Chief Strategy and Growth Officer
Senior Management
Ana de Pro Gonzalo
Director
Non Executive Board
Bridgette Heller
Director
Non Executive Board
Charles L. Sawyers
Director
Non Executive Board
Charlotte Pamer-Wieser
Secretary
Senior Management
Daniel Hochstrasser
Director
Non Executive Board
Aharon Gal
Elizabeth (Liz) Doherty
Director
Non Executive Board
Fiona H. Marshall
President BioMedical Research
Senior Management
Frans van Houten
Director
Non Executive Board
Chief Financial Officer
Senior Management
Harry Kirsch
Joerg Reinhardt
Chairman
Executive Board
John D. Young
Director
Non Executive Board
Karen L. Hale
Chief Legal Officer
Senior Management
Kees Roks
Chief Audit Officer
Senior Management
Klaus Moosmayer
Chief Ethics, Risk and Compliance Officer
Senior Management
Lutz Hegemann
President Global Health and Sustainability
Senior Management
Michelle Wees
Head Corporate Affairs
Senior Management
Michelle Weese
Head Corporate Affairs
Senior Management
Nancy C. Andrews
Director
Non Executive Board
Patrice Bula
Director
Non Executive Board
Patrick Horber
President International
Senior Management
Rob Kowalski
Chief People & Organization Officer
Senior Management
Shreeram Aradhye
Chief Medical Officer
Senior Management
Shreeram Aradhye
President Development
Senior Management
Vice Chairman
Executive Board
President Operations
Senior Management
Director
Non Executive Board
Chief Executive Officer
Senior Management
Simon Moroney
Steffen Lang
Ton Buechner
Vasant Narasimhan
Source: COMPANY FILINGS
©GlobalData THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
© GlobalData
Page | 36
Global Pharmaceuticals
Industry Profiles
Table 11: Novartis AG: key employees Continued
Name
Victor Bulto
Job Title
Board
President Innovative Medicines US
Senior Management
Director
Non Executive Board
William T. Winters
Source: COMPANY FILINGS
©GlobalData THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
© GlobalData
Page | 37
Global Pharmaceuticals
Industry Profiles
8.3.
Pfizer Inc.
8.3.1.
Company Overview
Pfizer Inc. (Pfizer or 'the company') is a research-based global biopharmaceutical company. It develops
consumer healthcare products, vaccines, medicines, and therapies to treat various heath conditions including
inflammation and immunology, neuroscience and pain, cardiovascular and metabolic, oncology and rare
disease. The company sells its consumer healthcare products through pharmacies, distributors, and
convenience stores. It also sells prescription medicines through retailers, wholesalers, hospitals, pharmacies
and government agencies. Pfizer has business operations in Americas, Europe, Asia-Pacific, the Middle East
and Africa. The company is headquartered in New York, the US.
The company reported revenues of (US Dollars) US$100,330 million for the fiscal year ended December 2022
(FY2022), an increase of 23.4% over FY2021. In FY2022, the company’s operating margin was 36.1%,
compared to an operating margin of 28.9% in FY2021. In FY2022, the company recorded a net margin of
31.3%, compared to a net margin of 27% in FY2021.
8.3.2.
Key Facts
Table 12: Pfizer Inc.: key facts
Head office:
66 Hudson Boulevard East New York, New York, United States
Number of Employees:
83000
Website:
www.pfizer.com
Financial year-end:
December
Ticker:
PFE
Stock exchange:
New York Stock Exchange
Source: COMPANY WEBSITE
8.3.3.
© GlobalData
Business Description
Pfizer Inc. (Pfizer or 'the company'), a global bio-pharmaceutical company, is involved in the discovery,
development, and manufacture of healthcare products. The company operates in more than 185 countries across
Europe, Asia, the Americas, the Middle East and Africa.
The company conducts its business through two reportable segments: Biopharma and Pfizer CentreOne (PC1).
Under the Biopharma it includes six business units – Oncology, Inflammation & Immunology, Rare Disease,
Hospital, Vaccines and Internal Medicine. Its major products include Prevnar 13/Prevenar 13, Ibrance, Eliquis,
Xeljanz, Enbrel (outside the U.S. and Canada), Chantix/Champix, Sutent , Xtandi , Vyndaqel/Vyndamax. In FY2022,
the Pfizer Biopharmaceuticals Group segment reported revenue of US$98,988.0 million, which accounted for
98.7% of the company’s total revenue.
Under PC1 the company offers contract development and manufacturing organization and supplies specialty
active pharmaceutical ingredients. In FY2022, the PC1 segment reported revenue of US$1,342.0 million, which
accounted for 1.3% of the company's total revenue. Geographically, the company classifies its operations into
two segments: the US and International. In FY2022, the US accounted for 42.3% of the company’s revenue,
followed by Developed market 21.9%, Emerging Markets 20%.
©GlobalData THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
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Global Pharmaceuticals
Industry Profiles
Table 13: Pfizer Inc.: annual financial ratios
Key Ratios
Growth Ratios
Sales Growth %
Operating Income Growth %
EBITDA Growth %
Net Income Growth %
EPS Growth %
Working Capital Growth %
Equity Ratios
EPS (Earnings per Share) USD
Dividend per Share USD
Dividend Cover Absolute
Book Value per Share USD
Profitability Ratios
Gross Margin %
Operating Margin %
Net Profit Margin %
Profit Markup %
PBT Margin (Profit Before Tax) %
Return on Equity %
Return on Capital Employed %
Return on Assets %
Return on Working Capital %
Operating Costs (% of Sales) %
Administration Costs (% of Sales) %
Liquidity Ratios
Current Ratio Absolute
Quick Ratio Absolute
Cash Ratio Absolute
Leverage Ratios
Debt to Equity Ratio Absolute
Net Debt to Equity Absolute
Debt to Capital Ratio Absolute
Efficiency Ratios
Asset Turnover Absolute
Fixed Asset Turnover Absolute
Inventory Turnover Absolute
Current Asset Turnover Absolute
Capital Employed Turnover Absolute
Working Capital Turnover Absolute
2018
2019
2020
2021
2022
-22.31
-68.73
-45.76
-47.67
-54.74
68.64
0.85
203.57
75.58
45.92
17.12
-124.91
1.16
-38.90
-32.88
-43.72
18.34
-303.22
95.16
211.73
132.94
139.98
252.05
86.09
23.43
54.29
44.02
42.73
22.76
-46.42
1.05
1.36
0.77
11.09
1.23
1.44
0.85
11.41
1.45
1.52
0.96
11.36
5.12
1.56
3.28
13.74
6.28
1.60
3.93
17.03
78.27
9.95
27.32
360.16
8.80
17.59
3.18
6.73
22.48
90.05
30.42
80.46
29.95
39.52
411.90
27.90
25.77
9.46
9.95
-273.96
70.05
30.32
79.82
18.09
21.99
395.55
16.89
14.48
5.87
5.69
82.37
81.91
27.38
62.25
28.89
27.04
164.90
29.91
28.47
16.92
13.09
137.97
71.11
14.90
66.02
36.12
31.27
194.25
34.61
32.80
23.37
16.57
397.29
63.88
13.01
1.57
1.33
0.04
0.88
0.69
0.03
1.35
1.04
0.07
1.40
1.19
0.05
1.22
1.00
0.01
0.66
0.36
0.40
0.83
0.67
0.45
0.63
0.44
0.39
0.50
0.10
0.33
0.37
0.14
0.27
0.25
3.00
1.18
0.90
0.32
2.26
0.25
2.98
1.10
1.00
0.32
-9.15
0.26
2.82
1.11
1.23
0.32
4.55
0.48
4.92
3.59
1.72
0.59
4.78
0.53
5.42
3.78
1.81
0.65
11.00
Source: COMPANY FILINGS
©GlobalData THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
© GlobalData
Page | 39
Global Pharmaceuticals
Industry Profiles
Table 14: Pfizer Inc.: key employees
Name
Job Title
Board
Aamir Malik
Chief Business Innovation Officer
Senior Management
Aamir Malik
Executive Vice President
Senior Management
Albert Bourla
Chairman
Executive Board
Albert Bourla
Chief Executive Officer
Executive Board
Chris Boshoff
Chief Oncology Research and Development Officer
Senior Management
Chris Boshoff
Executive Vice President
Senior Management
Dan R. Littman
Director
Non Executive Board
David M. Denton
Chief Financial Officer
Senior Management
David M. Denton
Executive Vice President
Senior Management
Douglas M. Lankler
Executive Vice President
Senior Management
General Counsel
Senior Management
Douglas M. Lankler
Francesca DeMartino
Chief Investor Relations Officer
Senior Management
Helen H. Hobbs
Director
Non Executive Board
James C. Smith
Director
Non Executive Board
James Quincey
Director
Non Executive Board
Joseph J. Echevarria
Director
Non Executive Board
Meenakshi Nevatia
Director
Executive Board
Meenakshi Nevatia
Managing Director
Executive Board
Mikael Dolsten
Chief Scientific Officer
Senior Management
Mikael Dolsten
President Worldwide Research, Development and
Medical
Senior Management
Mike McDermott
Chief Global Supply Officer
Senior Management
Mike McDermott
Executive Vice President
Senior Management
Payal Sahni Becher
Chief People Experience Officer
Senior Management
Payal Sahni Becher
Executive Vice President
Senior Management
Ronald E. Blaylock
Director
Non Executive Board
Sally Susman
Chief Corporate Affairs Officer
Senior Management
Sally Susman
Executive Vice President
Senior Management
Scott Gottlieb
Director
Non Executive Board
Source: COMPANY FILINGS
©GlobalData THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
© GlobalData
Page | 40
Global Pharmaceuticals
Industry Profiles
Table 15: Pfizer Inc.: key employees Continued
Name
Job Title
Board
Shantanu Narayen
Director
Non Executive Board
Susan Desmond-Hellmann
Director
Non Executive Board
Susan Hockfield
Director
Non Executive Board
Suzanne Nora Johnson
Director
Non Executive Board
Source: COMPANY FILINGS
©GlobalData THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
© GlobalData
Page | 41
Global Pharmaceuticals
Industry Profiles
8.4.
Johnson & Johnson
8.4.1.
Company Overview
Johnson & Johnson (J&J or 'the company') is a health care company that develops, manufactures, and markets
consumer health care products, pharmaceuticals, and medical devices. It offers pharmaceuticals in the
therapeutic areas of immunology, oncology, neuroscience, infectious diseases and vaccines, pulmonary
hypertension, cardiovascular and metabolism. Its medical devices include general surgery, biosurgical,
endomechanical and energy products; electrophysiology products, vision products and phthalmic products.
The company buy raw material from multiple sources. The company markets its products under Simponi,
Remicade, Stelara, Aveeno, Clean & Clear, Johnson's Adult, Dabao, Le Petite Marseillais, Neutrogena and Ogx
brand names. J&J distributes its pharmaceutical products, medical devices and consumer products to retailers,
wholesalers, health care professionals and hospitals and through a network of retail outlets and distributors. It
has business presence across the Americas, Europe, Asia-Pacific and Africa. The company is headquartered in
New Brunswick, New Jersey, the US.
The company reported revenues of (US Dollars) US$94,943 million for the fiscal year ended January 2022
(FY2022), an increase of 1.2% over FY2021. In FY2022, the company’s operating margin was 22.9%, compared
to an operating margin of 24.3% in FY2021. In FY2022, the company recorded a net margin of 18.9%,
compared to a net margin of 22.3% in FY2021. The company reported revenues of US$21,351 million for the
third quarter ended October 2023, a decrease of 49.7% over the previous quarter.
8.4.2.
Key Facts
Table 16: Johnson & Johnson: key facts
Head office:
One Johnson & Johnson Plaza , New Brunswick, New Jersey, United States
Telephone:
17325242455
Fax:
17322140332
Number of Employees:
152700
Website:
www.jnj.com
Financial year-end:
January
Ticker:
JNJ
Stock exchange:
New York Stock Exchange
Source: COMPANY WEBSITE
8.4.3.
© GlobalData
Business Description
Johnson & Johnson (J&J or 'the company') is a manufacturer and marketer of healthcare products. The company
offers a range of medical devices, consumer healthcare and pharmaceutical products. J&J sells its products
through retailers, wholesalers, hospitals and health care professionals. It has business operations in the
Americas, Europe, Asia-Pacific and Africa.
The company operates through three reportable business segments: Pharmaceutical, MedTech and Consumer
Health.
The company’s Pharmaceutical segment produces and markets products in six therapeutic areas, including
immunology (rheumatoid arthritis, inflammatory bowel disease and psoriasis), infectious diseases and vaccines
(HIV/ AIDS), neuroscience (neurodegenerative disorders, mood disorders and schizophrenia), oncology (prostate
cancer and hematologic malignancies), pulmonary hypertension (pulmonary arterial hypertension) and
cardiovascular and metabolism (thrombosis and diabetes). The segment’s major products in include Simponi,
Remicade, Stelara, Simponi Aria, Edurant, Tremfya, Prezista, Intelence, Symtuza, Prezcobix/Rezolsta, Invega
Trinza/Trevicta, Concerta, Risperdal Consta, Invega Sustenna/Xeplion and Zytiga. It also offers Darzalex,
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Global Pharmaceuticals
Industry Profiles
Procrit/Eprex, Velcade, Imbruvica, Xareltoe, Opsumit, Invokana, Invokamet/Vokanamet and Uptravi. The
company distributes these products directly to retailers, wholesalers, hospitals and health care professionals for
prescription use. In FY2022, the Pharmaceutical segment reported revenue of US$52,563 million, which
accounted for 55.4% of the company’s total revenue.
J&J’s MedTech segment manufactures and markets products used by physicians, nurses, hospitals, eye care
professionals and clinics. These products include orthopaedic products, general surgery, biosurgical,
endomechanical and energy products; electrophysiology products for the treatment of cardiovascular disease;
sterilization and disinfection products to reduce surgical infection; and vision products, including disposable
contact lenses and ophthalmic products related to cataract and laser refractive surgery. The segment distributes
its products to wholesalers, hospitals and retailers. In FY2022, the MedTech segment reported revenue of
US$27,427 million, which accounted for 28.9% of the company’s total revenue.
The company's Consumer Health segment develops, manufactures and markets products for baby care, oral care,
beauty, women's health care and wound care. It also offers over-the-counter (OTC) pharmaceutical products. The
company markets baby care products under Johnson's brand, Oral care products under Listerine brand, beauty
products under Aveeno, Clean & Clear, Dabao, Johnson's Adult, Le Petite Marseillais, Neutrogena and Ogx brand
names. It sells women's health care products under Stayfree and Carefree sanitary pads and O.B. tampon brands
outside of North America. The company’s major wound Care brands include Band-Aid and Neosporin. The
company's OTC pharmaceutical products include cold, flu, allergy and heartburn products, which are marketed
under Tylenol, Sudafed, Benadryl, Zyrtec, Motrin IB ibuprofen and Pepcid brand names. J&J sells its consumer
products to both retail outlets and distributors globally. In FY2022, the Consumer segment reported revenue of
US$14,953 million, which accounted for 15.7% of the company’s total revenue.
Geographically, the company classifies its business operations into four regions: US; Europe; Asia-Pacific, Africa;
and Western Hemisphere excluding US. In FY2022, the United States accounted for 51.2% of the company's total
revenue, followed by Europe (24.7%), Asia-Pacific, Africa (17.7%), and Western Hemisphere excluding US (6.5%).
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Global Pharmaceuticals
Industry Profiles
Table 17: Johnson & Johnson: annual financial ratios
Key Ratios
Growth Ratios
Sales Growth %
Operating Income Growth %
EBITDA Growth %
Net Income Growth %
EPS Growth %
Working Capital Growth %
Equity Ratios
EPS (Earnings per Share) USD
Dividend per Share USD
Dividend Cover Absolute
Book Value per Share USD
Profitability Ratios
Gross Margin %
Operating Margin %
Net Profit Margin %
Profit Markup %
PBT Margin (Profit Before Tax) %
Return on Equity %
Return on Capital Employed %
Return on Working Capital %
Operating Costs (% of Sales) %
Administration Costs (% of Sales) %
Liquidity Ratios
Current Ratio Absolute
Quick Ratio Absolute
Cash Ratio Absolute
Leverage Ratios
Debt to Equity Ratio Absolute
Net Debt to Equity Absolute
Debt to Capital Ratio Absolute
Efficiency Ratios
Asset Turnover Absolute
Fixed Asset Turnover Absolute
Current Asset Turnover Absolute
Capital Employed Turnover Absolute
Working Capital Turnover Absolute
2018
2019
2020
2021
2022
0.59
-3.73
-2.37
-1.16
13.70
-37.11
0.64
-4.80
-2.50
-2.68
-11.24
-6.08
13.55
38.06
27.13
41.89
32.01
80.16
-14.70
-15.00
-12.72
-14.07
-12.32
-103.22
6.46
-22.20
-22.20
95.94
23.51
-100.00
7.87
3.75
2.10
22.44
6.99
3.98
1.76
22.59
9.22
4.19
2.20
24.04
8.09
4.45
1.82
28.16
9.99
4.70
2.12
29.39
66.54
21.12
18.42
198.87
21.12
25.60
14.79
121.59
78.88
27.03
65.70
19.98
17.82
191.54
19.98
25.42
14.23
186.12
80.02
26.74
68.16
24.29
22.26
214.10
24.29
23.25
12.46
188.67
75.71
26.30
69.25
24.20
22.43
225.22
24.20
28.20
16.65
144.58
75.80
25.31
68.82
17.69
41.28
220.71
17.69
23.36
14.71
-3810.83
82.31
25.26
1.47
1.20
0.19
1.26
1.01
0.15
1.21
0.99
0.12
1.35
1.12
0.11
0.99
0.77
0.18
0.50
0.17
0.33
0.47
0.14
0.32
0.56
0.16
0.36
0.46
0.03
0.31
0.52
0.21
0.34
0.53
4.60
1.80
0.67
5.51
0.50
4.30
1.71
0.67
8.81
0.53
4.73
1.67
0.62
9.44
0.43
3.92
1.38
0.69
5.95
0.91
8.15
3.08
0.61
-157.46
Source: COMPANY FILINGS
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Table 18: Johnson & Johnson: key employees
Name
Job Title
Board
A. Eugene Washington
Director
Non Executive Board
Anne M. Mulcahy
Director
Non Executive Board
Ashley McEvoy
Chairman Medical Devices
Executive Board
Ashley McEvoy
Company Group Chairman, Consumer Medical
Devices
Senior Management
Ashley McEvoy
Executive Vice President
Executive Board
Charles Prince
Director
Non Executive Board
D. Scott Davis
Director
Non Executive Board
Darius Adamczyk
Director
Non Executive Board
Elizabeth Forminard
General Counsel
Senior Management
Eugene A. Woods
Director
Non Executive Board
Hubert Joly
Director
Non Executive Board
Ian E. L. Davis
Director
Non Executive Board
James Swanson
Chief Information Officer
Executive Board
James Swanson
Director
Executive Board
James Swanson
Executive Vice President
Executive Board
Director
Non Executive Board
Jennifer Taubert
Chairman Pharmaceuticals
Executive Board
Jennifer Taubert
Company Group Chairman, Pharmaceuticals, The
Americas
Senior Management
Jennifer A. Doudna
Jennifer Taubert
Executive Vice President
Executive Board
Jessica Moore
Vice President Investor Relations
Senior Management
Joaquin Duato
Chairman
Executive Board
Joaquin Duato
Chief Executive Officer
Executive Board
Executive Vice President Pharmaceuticals,
Research and Development
Senior Management
Kathryn E. Wengel
Chief Global Supply Chain Officer
Senior Management
Kathryn E. Wengel
Executive Vice President
Senior Management
Kurt Van den Bosch
Chief Financial Officer
Senior Management
Marillyn A. Hewson
Director
Non Executive Board
Mark A. Weinberger
Director
Non Executive Board
John Reed
Source: COMPANY FILINGS
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Global Pharmaceuticals
Industry Profiles
Table 19: Johnson & Johnson: key employees Continued
Name
Job Title
Board
Mark B. McClellan
Director
Non Executive Board
Mary C. Beckerle
Director
Non Executive Board
Michael H. Ullmann
Executive Vice President
Senior Management
Michael H. Ullmann
General Counsel
Senior Management
Nadja West
Director
Non Executive Board
Paula A. Johnson
Director
Non Executive Board
Peter M. Fasolo
Chief Human Resources Officer
Senior Management
Peter M. Fasolo
Executive Vice President
Senior Management
Director
Non Executive Board
Thibaut Mongon
Chairman Consumer Health
Executive Board
Thibaut Mongon
Ronald A. Williams
Executive Vice President
Executive Board
Vanessa Broadhurst
Director
Executive Board
Vanessa Broadhurst
Executive Vice President Global Corporate Affairs
Executive Board
William N. Hait
Chief External Innovation, Medical Safety and
Global Public Health Officer
Executive Board
William N. Hait
Director
Executive Board
William N. Hait
Executive Vice President
Executive Board
Source: COMPANY FILINGS
©GlobalData THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
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Global Pharmaceuticals
Industry Profiles
9. Macroeconomic Indicators
9.1.
Country data
Table 20: Global exchange rate, 2018–22
Year
Exchange rate (€/$)
2018
1.1810
2019
1.1200
2020
1.1405
2021
1.1832
1.0538
2022
Source: GlobalData
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Global Pharmaceuticals
Industry Profiles
10. Appendix
10.1. Methodology
GlobalData Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, crosschecked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, GlobalData’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of
each definition are carefully reviewed at the start of the research process to ensure they match the requirements of
both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
GlobalData aggregates and analyzes a number of secondary information sources, including:
-
National/Governmental statistics
-
International data (official international sources)
-
National and International trade associations
-
Broker and analyst reports
-
Company Annual Reports
-
Business information libraries and databases
Modeling & forecasting tools – GlobalData has developed powerful tools that allow quantitative and qualitative data
to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which
can then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date
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Global Pharmaceuticals
Industry Profiles
10.2. Industry associations
10.2.1. International Federation of Pharmaceutical Manufacturers & Associations (IFPMA)
Chemin des Mines 9, 1202 Geneva, Switzerland
Tel.: 41 22 338 32 00
Fax:
www.ifpma.org
10.2.2. Pharmaceutical Research and Manufacturers of America
950 F Street, NW Suite 300, Washington, DC 20004
Tel.: 202 835 3400
Fax:
https://phrma.org/
10.2.3. European Federation of Pharmaceutical Industries and Associations (EFPIA)
Leopold Plaza Building, Rue du Trone 108, B-1050 Brussels
Tel.: 32 02 626 25 55
Fax:
https://www.efpia.eu/
10.2.4. Association for Accessible Medicines
601 New Jersey Ave NW, Suite 850
Washington DC 20001
Tel.: 202 249 7100
Fax:
https://accessiblemeds.org/
10.2.5. International Pharmaceutical Federation
Andries Bickerweg 5
2517 JP The Hague
Netherlands
Tel.: 31 0 70 30 21 970
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Global Pharmaceuticals
Industry Profiles
Fax:
https://www.fip.org/
10.3. Related GlobalData research
10.3.1. Industry Profile
Global Generics
Pharmaceuticals in Canada
Pharmaceuticals in the United States
Pharmaceuticals in Europe
Pharmaceuticals in Asia-Pacific
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Global Pharmaceuticals
Industry Profiles
| About GlobalData
GlobalData is a leading provider of data, analytics, and insights on the world's largest industries.
In an increasingly fast-moving, complex, and uncertain world, it has never been harder for organizations and decision
makers to predict and navigate the future. This is why GlobalData’s mission is to help our clients to decode the future
and profit from faster, more informed decisions. As a leading information services company, thousands of clients rely
on GlobalData for trusted, timely, and actionable intelligence. Our solutions are designed to provide a daily edge to
professionals within corporations, financial institutions, professional services, and government agencies.
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sectors, markets, and companies offering growth opportunities across the world's largest industries.
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We leverage the collective expertise of over 2,000 in-house industry analysts, data scientists, and journalists, as well
as a global community of industry professionals, to provide decision-makers with timely, actionable insight.
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We help you work smarter and faster by giving you access to powerful analytics and customizable workflow tools
tailored to your role, alongside direct access to our expert community of analysts.
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you easy access to a complete, dynamic, and comparable view of the world’s largest industries.
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Disclaimer: All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or
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