Glenmark has become the first pharmaceutical company in India to obtain endorsement for the usage of Favipiravir as a Corona drug. The national pharmaceutical giant declared the launch of the primary oral Favipiravir following the 'FabiFlu ' brand.
Research conducted by Bentley University found that large pharmaceutical companies make more profits than S&P 500 companies. The study found that large pharma companies make more profits than knowledge-driven companies. Thus, such companies enjoy large profit margins. Having said that, which drug is most profitable? Here’s a quick look at some of the most profitable pharmaceutical medications in the market.
How big is the pharma industry?
A study by the Center for Integration of Science and Industry found that large pharma companies make more money than most companies on any list. The study aimed at looking at the profitability of large pharmaceutical companies that research, develop, create, and market drugs. The investigation began as a result of most people having the opinion that drugs are overpriced massively. Between 2000 and 2018, pharmaceutical companies had revenues above $11.5 trillion with a net income on the upper side of $1.9tr.
The net income gives the difference between revenue and expense, and therefore, shows their profit earnings. Pharmaceutical companies represent just one component of the extensive pharmaceutical system. The other players in this sector are benefit managers, wholesalers, retail pharmacies, and healthcare providers. Therefore, it is safe to say that the pharma industry is one of the biggest in the world.
World’s Most Profitable Drugs
- Xarelto – $6.5bn
Xarelto is an oral coagulant drug developed by Johnson & Johnson and Bayer, which has grown in sales by over 5% since 2018. It helps in the treatment of Coronary Artery Disease, and is widely popular, both in the US and Europe.
- Opdivo – $6.7bn
Opdivo saw a rise in sales by over 36% worldwide in 2018. Regarded as the world’s first anti-programmed death receptor, this drug was made by Bristol Myers Squibb. It helps in the treatment of over 12 different types of cancers and will enjoy patent protection until 2027.
- Eylea – $6.7bn
Regeneron and Bayer co-developed Eylea for ophthalmic treatment. Outside the US, the drug enjoyed a sales boost of 12% in 2018, after coming out in 2011.
- Avastin – $6.9bn
Avastin became so popular due to its market penetration in China, which led to a skyrocketing sales growth. A drug developed by Roche, Avastin’s net sales grew by 12% in the international market due to its doing well in China.
- Herceptin – $7bn
Approved in 1998, Herceptin is a Roche drug that helps in the treatment of HER2-positive breast cancer. Sales grew by 1% in 2018, but the future might be challenging for this drug. This is primarily due to the entry of biosimilars in the market.
- Enbrel – $7.1bn
Amgen’s Enbrel generated sales revenue exceeding $5bn in the US and Canada, and $2.1bn outside North America. Primarily used for the treatment of plaque psoriasis and psoriatic arthritis, Enbrel faces strict competition now.
- Keytruda – $7.1bn
Keytruda helps in the treatment of 11 different types of cancer, and net sales skyrocketed by approximately 47% in 2018.
- Revlimid – $9.7bn
Revlimid saw a rise in net sales by over 18% in 2018. Due to an increase in the penetration of market share. The drug helps with the treatment of multiple myeloma and mantle cell lymphoma.
- Eliquis – $9.8bn
Eliquis is one of the fastest-growing franchises of BMS, as it witnessed a 32% growth in net sales in 2018. A joint venture between BMS and Pfizer, the drug helps in preventing stroke and systemic embolism.
- Humira – $19.9bn
Humira generated almost 61% of the total revenue of Abbvie in 2018, and it is their largest and most profitable product. With net sales growing by 7% worldwide in 2018, the drug which helps in the treatment of rheumatoid arthritis is the company’s biggest hope.
Which is the most profitable pharmaceutical drug ever?
Pharmaceutical Drug, LIPITOR created, marketed, and sold by PFIZER corporation is regarded to be the most profitable drug in the pharma field. While it enjoyed patent protection, the drug generated over $131 billion in sales. Lipitor was released in 1997, the year which saw the FDA allow targeted drug ads. PFIZER used this opportunity and spent over $272million annually for the promotion of the drug via ads and awareness programs. They employed a team of over 2000 sales reps to continually visit doctors and get them to push the drug.
By 1994, Lipitor became the first mega-blockbuster drug in the world, with annual sales crossing $10billion. However, when its patent expired in 2011, sales went down by over 71% worldwide, and the sensation died down. But, when the drug was popular, it amounted to 25% of Pfizer’s annual revenue, making it the world’s most profitable pharma drug.
Conclusion
As you can see, the industry is one of the largest in the world and makes a lot of money. However, experts argue that overpricing drugs has made it difficult for the general public to afford them. The best balance would be for the pharma companies to make a profit without exploiting the common man. This is what the government tries to implement through its patent laws.
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