This report provides a global overview of the pharma sector and lists the top 1000 companies by value. This ranking is global in scope and includes publicly traded companies in branded pharma, generics and biotech. private companies and pharma-focused segments of large, diversified companies.
The report was Published by Torreya Partners, a New York based global M&A boutique, to help the world appreciate the pharmaceutical sector’s inventiveness, its globality, its diversity and, also, its fragility. They believe that policymakers and the populace in many countries have regulated the pharmaceutical sector in ways that have not been conducive to long-term investment in innovation.
The report profiles of the many companies in the industry notes the challenges that companies have faced in countries where governments have clamped down on pricing. The key finding is that there has been an increasing democratization of the pharma sector due to rapid growth in the Chinese pharma sector, explosion of the biotechnology sector and major spinouts in the animal health sector.
“Big Pharma” is less important today than it was five years ago. The top eighteen pharmaceutical companies today comprise less than half the value of the sector whereas in 2003 they accounted for over three quarters of the sectors value.
The total annual trailing revenue of the Pharma 1000 companies is over $1.2 trillion. And, by our estimate, the total value of the global pharmaceutical sector today is $6.65 trillion.
The pharmaceutical industry, in aggregate, is the third most valuable industry in our economy – at least if one looks at the value of public companies worldwide. Only the finance and e-commerce/internet areas are bigger.
The value of the pharma sector is up 20% in the last year, largely due to an influx of capital from investors who decided they were underweight biopharma after seeing the COVID-19 pandemic. Over the last 17 years, the value of the industry has tripled, reflecting exploding demand for medicines amidst a high level of innovation.
Virus Project Members can download the report and the deck HERE.