By Sanjay Pingle, Mumbai
The top 15 global pharmaceutical companies suffered a major setback in their working during the year ended December 2010. The operations of these companies affected mainly on account of stiff competition from generics, expiry of their patented products, restrictive healthcare policies and failure in creating breakthrough drugs, as per a Pharmabiz study.
Although the global economy recovered from the deep recession somewhat quickly during 2010, higher restructuring and acquisition costs, research and development expenditure and litigation charges put additional burden on overall working of these companies.
The aggregate worldwide revenues from pharmaceuticals, generics, vaccines, diagnostics, consumer healthcare, nutritional products and animal healthcare, of 15 global pharma companies increased by 11 per cent to US$ 567 billion during the year ended December 2010 from $ 511 billion in the previous year. This was mainly on account of significant higher sales by Pfizer and Merck & Co with merger of Wyeth and Schering-Plough respectively. The aggregate revenues of Pfizer went up by 36 per cent to $68 billion and that of Merck moved up by 68 per cent to $46 billion in 2010. For better comparison, Pharmabiz study has converted all currencies into US Dollar at a constant exchange rate as at the end December 2010 and 2009.
The aggregate revenues, in terms of US dollar, of sanofi-aventis, GlaxoSmithKline and Johnson & Johnson declined by 4.1 per cent, 2.8 per cent and 0.5 per cent respectively to $40 billion, $44 billion and $62 billion during 2010. Abbott Laboratories, Novartis International, Takeda Pharmaceutical Co and Teva Pharmaceutical have registered growth of over 14 per cent in aggregate revenues. All other companies viz., Amgen, AstraZeneca, Bayer, Bristol-Myers Squibb, Eli Lilly and Co and Roche Group registered revenue growth in the range of 1-6 per cent during 2010.
The net profit of 15 global companies declined sharply by 20.1 per cent to $85,955 million in 2010 from $107,595 million in the previous year with major setback for Merck, Bristol-Myers and GlaxoSmithKline (GSK). The net profit of these three companies declined in the range of 68-93 per cent. Further, net profit of Abbott Labs, Bayer, Pfizer, sanofi-aventis and Takeda Pharmaceutical declined in the range of 4-19 per cent in 2010. The net profit of Amgen improved marginally by 0.5 per cent to $4,626 million.