The global top 10 drug companies reshuffle the landscape What signals are revealed by multinational drug companies’ 2021 financial reports?

Once the new crown vaccine/drug was launched, it changed the top 10 global pharmaceutical revenue ranking by itself.

In January 2021, Pfizer’s move to change its logo kicked off a new round of reshuffling in the global pharmaceutical landscape.

The impact of the new crown epidemic is gradually dissipating, multinational pharmaceutical companies or divestiture restructuring or mergers and acquisitions, but from the current successive release of each 2021 financial results, their performance is almost unaffected, but the increase rose sharply. For individual companies, this is due to the support of the new vaccine/drug crown. Pfizer is a prime example.

Newly crowned vaccines and drugs have been the highlight of the past year’s results for a number of multinational companies. However, it is undeniable that the 3%-95% growth rate of performance is also inseparable from the performance of each company’s core varieties. Had it not been for Pfizer’s new vaccine, 2021 would have been the eighth year that AbbVie’s Xumile would have been the “drug king”. The much-anticipated battle for OK drugs is so far behind O drugs that the outcome is clear: global sales of K drugs are already approaching $20 billion in 2021.

And judging from each company’s earnings release, there are several other drugs that are one step closer to the ranks of the super heavy hitters ($10 billion). Johnson & Johnson and AbbVie’s Ibrutinib (Imbruvica), on the other hand, is the most promising entry into the super heavy bomb category with $9.777 billion in sales.

In addition, as in 2020, seven multinational drug companies still reported China results this time: Eli Lilly, Merck Sharp & Dohme, Novartis, AstraZeneca, Sanofi, Novo Nordisk and Roche. In the past year, these companies, which have entered the Chinese market for more than 30 years, have reaped significant performance increases after responding to changes in the market environment and actively seeking changes. Among them, Merck Sharp & Dohme China’s results grew by 60% year-on-year, which can be described as a ride.

Global pharmaceutical landscape reshuffled, Pfizer towards 100 billion

In 2021, the new crown vaccines / drugs on the market, on its own to change the global pharmaceutical revenue of the top ten ranking. Among them, Pfizer can be regarded as a perfect example of reversing fate in the epidemic.

Relying on the new crown vaccine Comirnaty, Pfizer rose seven places in 2021 to return to the No. 1 spot and moved closer to $100 billion with $81.288 billion in revenue, a year-over-year increase of up to 95%. Among them, Comirnaty achieved sales of $36.781 billion, and together with the $75 million sales of the new crown oral drug Paxlovid (nirmatrelvir + ritonavir), Pfizer’s new crown business achieved a total revenue of $36.857 billion, accounting for 45.34% of total revenue.

You know, in 2020, the impact of the epidemic also made Pfizer’s revenue fell 22.6% in the first three quarters, eventually falling out of the top five global pharmaceutical rankings. In just one year, the sea has changed.

In 2020, the top three global pharmaceutical revenue is still Novartis, AbbVie and Johnson & Johnson. This time, Novartis has slipped from the global number one to the third place. Johnson & Johnson’s pharmaceutical business, on the other hand, came to the second position in the world with several products such as Stelara (ustekinumab), Darzalex (daratumumab), Imbruvica (ibrutinib), and the new crown vaccine (Ad26.COV2.S), achieving revenue of $52.80 billion, up to 14.3% year-on-year.

In fact, judging from the earnings reports released by each so far, five of the top ten multinational pharmaceutical companies in terms of global pharmaceutical revenue achieved sales of New Crown vaccines/New Crown neutralizing antibodies/New Crown therapeutics in 2021.

Pfizer’s Comirnaty was newly crowned “King of Drugs,” edging out Xumel, which was supposed to be in its eighth year of reign. According to AbbVie’s earnings report, in 2021, Syumetrol still exceeded the $20 billion mark, with revenues of $20.996 billion, up 3.5% year-over-year. In addition, combined with the business explosion from the acquisition of Allergan, AbbVie achieved a 23% increase in revenue last year, totaling $56.197 billion. And Xumile accounted for nearly half of that. But even so, the gap between Semen and Comirnaty is already nearly a full year’s sales of K drugs.

Johnson & Johnson’s New Crown vaccine (Ad26.COV2.S) also contributed $2.385 billion in sales revenue. Also benefiting from the New Crown vaccine/drug was AstraZeneca. Looking at AstraZeneca’s financial results, the New Crown vaccine has become its second best-selling product last year. Despite the news of the vaccine’s side effects flying around during its launch, it does not seem to have affected its sales in any way.
In 2021, AstraZeneca achieved total global revenue of $37.4 billion, up 41%, excluding the New Crown vaccine revenue growth of 26% to $33.4 billion. By this figure, AstraZeneca’s New Crown vaccine sales in 2021 are $4 billion, second only to its star lung cancer drug Teriflexa. The drug grows 13 percent to $5 billion in 2021 for the full year.

The New Crown vaccine and drug, was one of the highlights of the earnings release for a number of companies. Regeneron and Gilead also reaped notable results with their neutralizing antibodies and therapeutic drugs, respectively – the former with revenue of $7,573.9 million and the latter with $5,565 million.

Top 10 new drugs out, 6 cross $10 billion sales mark

But in addition to the new crown business, the oncology and immunology sectors continued to be the main revenue generators for multinational drug companies in the past year.
AbbVie’s Xiomel is the rightful first in the immune field. In oncology, BMS’ three pillars Revlimid, Opdivo and Pomalyst contributed $23.6 billion in sales, accounting for 78.4% of its $30.1 billion in total oncology sales. With this performance, BMS is also known as the “King of Oncology”.

In addition, a number of multinational pharmaceutical companies have also laid out the neuroscience field, such as Johnson & Johnson, Roche, AbbVie, Novartis, Sanofi, Merck Sharp & Dohme, etc.. Among them, Johnson & Johnson in the field of neuroscience performance, followed closely by Roche, respectively, in the business to achieve revenue of $ 7 billion and $ 6.8 billion.

In 2021, Boeing Health’s new Alzheimer’s drug Aduhelm was approved, sparking a huge controversy. According to its financial report, Boeing Health’s annual revenue will be $10.98 billion in 2021, down 19% year-on-year. Among them, Aduhelm achieved $1 million in revenue in the last three months of last year and $3 million in revenue for the year. By the end of 2021, Aduhelm’s inventory was valued at approximately $225 million.

And according to the top 10 new drug sales revenue rankings compiled by EYU Health, six products have crossed the $10 billion mark in the past year, while in 2020, only three drugs crossed the line successfully; Xumel and the new crown vaccine Comirnaty broke the $20 billion mark. Johnson & Johnson and AbbVie’s top-selling anticancer drug Imbruvica (ibrutinib), on the other hand, is approaching the $10 billion sprint line with annual revenues of $9.777 billion.

Ibrutinib, approved in late 2013, is the world’s first marketed BTK inhibitor, jointly developed and commercialized by AbbVie and Johnson & Johnson, with AbbVie having U.S. market rights and Johnson & Johnson having market rights outside the United States. To date, it has 11 indications approved in six disease areas, and is also the only drug for the treatment of Fahrenheit macroglobulinemia and chronic graft-versus-host disease.

And for AbbVie, ibrutinib will be one of the straws that saves it from falling on hard times as the U.S. market exclusivity period for Xumel is set to end in January 2023. Last September, AbbVie won a case in U.S. federal court to uphold the patent on ibrutinib. At that time, some analysts said the result foreshadowed that AbbVie would not have significant IP losses until 2030 after losing the exclusive rights to Xumel, and had a bullish revenue outlook.

It is fair to say that the victory in the ibrutinib patent litigation is significant for AbbVie. In addition, AbbVie also has the IL-23 antibody Skyrizi (rasalizumab) and the JAK inhibitor Rinvoq (ubatinib) to fill the “hole” of Xumel, as well as the product support from the acquisition of Allergan. AbbVie pointed out in this earnings report that Skyrizi and Rinvoq’s total risk-adjusted sales in 2025 will exceed the $15 billion upfront revenue estimate.

How can multinational drug companies adapt to the Chinese market by seeking changes and adaptations?

In 2021, the same seven multinational drug companies announced their China results in their earnings reports. In the past, the big market for multinational pharmaceutical companies was in the United States, but in recent years, both biotech and multinational pharmaceutical companies have been mentioning in China for global, which shows that the status of the Chinese market in multinational pharmaceutical companies has been gaining more and more attention.

Through these seven companies’ financial reports, we can see that the performance of China is in the midst of growth. In particular, Merck Sharp & Dohme China’s revenue growth rate is the highest, with total revenue reaching $4.262 billion in 2021, up 60% year-on-year. As a result, Merck Sharp & Dohme China will be the best performing region for Merck Sharp & Dohme globally in 2021. This growth rate is unmatched among a group of multinational drug companies.

According to Merck Sharp & Dohme’s earnings report, this may be due to the cervical cancer vaccine Gardasil/Gardasil 9. Availability of the vaccine resumed in the second quarter of 2021, and in the fourth quarter of 2021, revenues from markets outside the U.S. (including China) came to $1.253 billion, up 177% year-on-year.

If we look at the percentage share, China, on the other hand, remains one of the key sources of revenue for AstraZeneca. in 2021, its China revenue generation grew 12% year-on-year to $6.011 billion, representing 16% of the total, leading the seven companies.

However, compared to its 20% share in 2020, AstraZeneca’s growth in China has slowed. Since the second half of last year, AstraZeneca China seems to be in an “eventful period” – firstly, due to the pressure of price reduction in health insurance negotiation and procurement, the growth in China continued to slow down in the second half of 2021, and in the fourth quarter, its revenue even fell by 4% year-on-year. In the fourth quarter, revenue declined by 4% year-on-year. In addition, AstraZeneca expects total China revenue to decline by about 5% in fiscal 2022, also due to health insurance negotiations and price cuts, followed by the departure of several executives and the splitting and consolidation of several business units.

In recent years, as the development of innovative drugs in China is gaining momentum, more and more executives from multinational drug companies in China have started to flow to local innovative drug companies. According to some statistics, as many as 32 multinational pharmaceutical companies’ China executives left in 2021, among which, AstraZeneca’s “personnel earthquake” has caused great concern – a total of seven executives left, such as Yin Min, former general manager of AstraZeneca’s China Oncology Division, who joined For example, Min Yin, former General Manager of AstraZeneca’s China Oncology Business Unit, joined Baekje Shenzhou as Chief Commercial Officer of Greater China, member of the China Leadership Team and the Global Executive Committee.

For Roche Pharmaceuticals China, the change of CEO may also be behind the impact of strategic adjustments. 2021 In July, the president of Roche Pharmaceuticals China, Zhou Hong, left the company, and since October 1, then vice president of market access, Bian Xin, will take over as president of Roche Pharmaceuticals China.

In the past, under the helm of Zhou Hong, Roche Pharma China has seen rapid growth. 2021, Roche Pharma China ranked first in terms of performance, with annual revenue of US$6.165 billion, up 13% year-on-year. Among them, the pharmaceutical business revenue achieved year-on-year growth of 4.2% to $3.557 billion, ranking third among these seven companies.

However, at this time, Zhou Hong chose to leave, the industry speculation that this or with Roche Global is setting off a “big change” related. Since 2020, Roche began to build a new business model of “ecosystem”.

But since the second half of 2021, after six months of exploration, Roche “ecosphere model” officially offline, the original “product line model”, “regional model” and “Ecosystem model” three models unified integration to the oncology field and the field of special drugs as the core of the “customer interaction business model”, in order to seek to continue to consolidate Roche’s dominant position in the market. Roche at this time to choose the side of Xin to replace Zhou Hong, the industry speculation that this is also from the side of the new “head” needs to have the sensitivity of the rapid changes in the domestic market.

In fact, in recent years, the volume procurement and medical insurance negotiations are profoundly affecting the Chinese market, along with the rise of local innovative drug companies, multinational drug companies in China have long faced the environment is not the same day. Actively seeking innovation and transformation, more focused business has become the way of survival for these multinational pharmaceutical companies.

In 2021, most of the multinational drug companies have changed their attitude towards collective procurement and medical insurance negotiation from the previous attitude of “lying flat” and choose to actively reduce prices in response. In the insulin special collection, Novo Nordisk, Sanofi, Eli Lilly three multinational giants bid products all to be selected; in the national talks, Bojian originally “700,000 a shot” of Nocinasan sodium injection, with a very sincere price of 33,000 yuan per shot into the new version of the medical insurance drug catalog.

When the product price pressure and the rise of new technologies, on the one hand, with the rise of local pharmaceutical companies R & D power, most multinational pharmaceutical companies have begun to change the thinking of the past new drug market layout. Today, their R&D has begun to tilt toward the Chinese market, and they have touted early stage R&D projects in China.

In October last year, AstraZeneca’s Global R&D China Center was officially opened in Shanghai. It is reported that its work will expand to earlier R&D and use multiple fields such as bioanalysis, translational medicine, artificial intelligence and big data to help R&D. In terms of new drug development, the China Center has more than 120 projects in development, of which the proportion of projects in simultaneous global development exceeds 85%.
Sanofi, on the other hand, established the Sanofi Research Institute in March, which will focus on early-stage research capabilities in immunology, oncology, inflammation and related therapeutic areas. By accelerating basic research and drug development, these multinational pharmaceutical companies will be able to explore more new drugs suitable for the Chinese market and thus find new growth points in the Chinese new drug market.

On the other hand, unlike their previous “wait-and-see” attitude, multinational pharmaceutical companies have become more certain in the past year in the construction of the ecosystem. 2021, the layout of multinational pharmaceutical companies in China has been accelerated from drugs to services, through multiple cooperation, and constantly expand the ecosystem.

Cooperation, innovation and localization have been the three key words for the development of multinational pharmaceutical companies in China. China’s huge population base and aging trend give countless drug companies room for reverie, and with a large number of local innovative drug companies emerging, it is foreseeable that no multinational drug company will be willing to lose this fertile and imaginative market.

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