Pharmaceutical Industry Profits In 2022
The year 2022 was a good one for the pharmaceutical industry. The 2022 Fortune Global 500, which came out earlier this month, showed that the top five pharmaceutical companies by revenue made a total of $734.8 billion in sales and $130.6 billion in profits.
Author:Suleman ShahReviewer:Han JuFeb 03, 2023106 Shares1.7K Views
The year 2022 was a good one for the pharmaceutical industry.The 2022 Fortune Global 500, which came out earlier this month, showed that the top five pharmaceutical companies by revenue made a total of $734.8 billion in sales and $130.6 billion in profits.
Biggest Pharmaceutical Industry Revenues
Profit is a key indicator that shows investors how well the business is doing and has been run. Revenue, on the other hand, shows how well a pharmaceutical company is selling its products and services.
GlaxoSmithKline
GlaxoSmithKline is an international company based in the UK. Glaxo Wellcome plc and SmithKline Beecham plc merged in 2000 to form GSK, a company that specializes in pharmaceuticals, biologics, vaccines, and consumer healthcare.
In 2022, the business, medicine, and vaccines divisions sales added up to US$34 billion, which was a 3% increase from the year before.
The pharma segment was driven by sales of Xevudy, a monoclonal antibody treatment for COVID-19. These sales added almost 6 percentage points to the overall growth of pharmaceuticals. The COVID-19 virus caused a drop in the number of adults who wanted to get vaccinated, which made up part of the 2% CER increase in vaccine sales due to the pandemic.
GSK said at the beginning of 2022 that it would split off its consumer healthcare business and start a new one called Haleon in the middle of the year. With the split, GSK will be able to focus on biopharmaceuticals and put most of its money into making new vaccines and specialized drugs.
Novartis
At first, the fact that Novartiswould be the most profitable biopharma business in 2022 was a bit of a surprise. Even though it was only sixth in termsof total sales, the Swiss pharmaceutical company has a large generic business that makes less money.
Novartis' net income went from $8.07 billion in 2020 to $24.02 billion in 2022, which is a big jump. The company's net profit doesn't usually go over $10 billion a year, except for the years when it spun off the eye care company Alcon and sold its share in a consumer healthjoint venture with GSK.
In 2022, a merger like this would be good for Novartis. It made an extra $14.6 billion when it sold 53.3 million shares of Roche, a competitor across the street, for almost $20.7 billion. Even without that one-time item, Novartis' net profit would have gone up last year. It would have been a big enough change for us to include it on our list.
Last year, Novartis's total sales went up by 6% to $52.88 billion, and its gross profit went up by almost the same amount. R&D and non-product costs, which are sometimes called selling, general, and administrative costs, also went up, but not as much as revenue.
Novartis has been trying to make it easier for the company to make money from sales. The company hopes that the core operating margin for its innovative medicine division will be in the high 30s. Using this measure, Novartis' core operating income went from 35% of sales in 2020 to 36.2% of sales in 2017.
But Sandoz generics, a part of the company, was a letdown. In 2022, the franchise's core operating margin went from 24.2% to 21.4% because prices were still being pushed down, especially in the US. Novartis expects Sandoz's margin to go down even more in 2022, but CEO Vas Narasimhan says that the company will "move toward a growth dynamic" in the second half of the year.
Pfizer
The fact that Pfizer didn't dominate the biopharma sector may have been the biggest surprise to the business when it looked at its 2022 profit performance. Comirnaty, a vaccine for COVID-19, helped the company's revenue reach $81.29 billion in 2022.
But Big Pharma in the United States only made a little less than $22 billion last year, which was less than Novartis. Even though they came in second, it is easy to say that Pfizer had a better year than any other drug company in 2022.
After getting FDA approval for its COVID-19 vaccine in late 2020, the company that made it spent a lot of time last year fighting the pandemic in public.
As part of their Comirnaty agreement, Pfizer and BioNTech of Germany split development costs and profits equally. Over the past year, Pfizer and its manufacturing partners made more than 3 billion doses of the shot, which helped stop the pandemic and save many lives.
Last year, Pfizer's sales went up by 94% from $41.9 billion in 2022, but its cost of sales went up by almost the same amount. The company's cost of sales went up by 260%, from $8.4 billion in 2020 to $30.8 billion in 2022.
Astrazeneca
After getting Alexion, AstraZenecamoves all the way up to ninth place in 2022. AstraZeneca's global headquarters are in Cambridge, UK. The company focuses on treating serious diseases like cancer, heart disease, digestive problems, infections, neurological problems, respiratory problems, and inflammation.
In 2022, AstraZeneca made US$37.4 million in sales, which is a 41% increase. Even though things were hard in China, the company grew evenly in all of its main areas of focus, with double-digit growth in all major geographies, including emerging markets.
In 2022, oncology brought in 38% of the company's income, which was 19% more than in 2020. The bad effects that COVID-19 had on the number of diagnoses and treatments were partially made up for by more money and more launches.
AstraZeneca wants to keep growing through innovation for the foreseeable future by supporting its blockbuster drugs, continuing to invest in the clinical stage pipeline, and working on strategic clinical stage business development.
Johnson And Johnson
Johnson & Johnson, also known as J&J, came in third place on the list of the top pharmaceutical companies for this year. Johnson & Johnson's corporate headquarters are in New Jersey.
The company makes medicines, medical equipment, and health products for the general public. The pharmaceutical division of the company's sales grew by 14% from the previous year.
This was due to several standout products, such as Darzalex, which treats multiple myeloma; Stelara, which treats a number of immune-mediated inflammatory diseases; Tremfya, which treats plaque psoriasis and psoriatic arthritis; Erleada, which treats prostate cancer; and Invega sustenna/xepli, which is
Also, the FDA approved J&J's single-dose COVID-19 vaccine for emergency use at the beginning of 2022. This helped the pharmaceutical division of the company grow quickly and bring in US$2.3 billion in sales. However, the fact that remicade wasn't very effective at treating immune-mediated inflammatory diseases lessened this.
Abbvie
Innovation-driven AbbVie is the second-largest pharmaceutical company in terms of sales this year. The company broke away from Abbott in 2013, which led to the creation of AbbVie. AbbVie has 47,000 experts working for it in more than 70 countries around the world.
Its R&D efforts are focused on treating diseases that are hard to treat. In May 2022, the company successfully bought Allergan. This strengthened its position in a number of therapeutic areas, such as immunology, oncology, and neuroscience.
AbbVie's sales reached $56.1 billion in 2022, which was a 22% increase from the previous year.
This was because of how well the company's immunology portfolio did, which led to sales of $25.28 billion, an increase of 14.1% on a reported basis and 13.5% on an operating basis. AbbVie's hematology, oncology, and neuroscience portfolios each saw their sales go up by 8.7% and 69.5%.
Biosimilars are expected to hit the market before Humira, a popular drug for rheumatoid arthritis made by AbbVie. This means that Humira will likely have to compete with these drugs in the coming year. The drug Humira is still expected to be very popular.
AbbVie's market position is expected to improve a lot because of these sales and the fact that more money is coming in from the Jak inhibitor Rinvoq, the psoriasis treatment Skyrizi, and the cancer drug Venclexta.
People Also Ask
What Is Called Pharmaceutical Industry?
The pharmaceutical industry is made up of both public and private organizations that find, develop, and make drugs and medicines.
What Does Pharmaceutical Industry Include?
The pharmaceutical industry is made up of companies that make drugs, companies that work with biotechnology, and distribution and wholesale companies that deal with the products made.
Chemical and biological compounds used in medicine and animals are the main focus of this industry.
How Big Is Pharmaceutical Industry?
Research, development, production, and distribution of medicines are all done by the pharmaceutical industry. In the last 20 years, the market has grown a lot, and in 2021, pharma sales all over the world added up to 1.42 trillion U.S. dollars.
Conclusion
The pharmaceutical industry around the world has continued to grow and was worth a staggering US$1.6 trillion in 2022, thanks to new products and a growing number of older people. The market is growing a lot because new drugs are always being made, approved, and put on the market.
At PureNetWorth, the best website about the world's richest people, you can learn how some of the most important executives at big pharmaceutical companies increase their wealth.
Suleman Shah
Author
Suleman Shah is a researcher and freelance writer. As a researcher, he has worked with MNS University of Agriculture, Multan (Pakistan) and Texas A & M University (USA). He regularly writes science articles and blogs for science news website immersse.com and open access publishers OA Publishing London and Scientific Times. He loves to keep himself updated on scientific developments and convert these developments into everyday language to update the readers about the developments in the scientific era. His primary research focus is Plant sciences, and he contributed to this field by publishing his research in scientific journals and presenting his work at many Conferences.
Shah graduated from the University of Agriculture Faisalabad (Pakistan) and started his professional carrier with Jaffer Agro Services and later with the Agriculture Department of the Government of Pakistan. His research interest compelled and attracted him to proceed with his carrier in Plant sciences research. So, he started his Ph.D. in Soil Science at MNS University of Agriculture Multan (Pakistan). Later, he started working as a visiting scholar with Texas A&M University (USA).
Shah’s experience with big Open Excess publishers like Springers, Frontiers, MDPI, etc., testified to his belief in Open Access as a barrier-removing mechanism between researchers and the readers of their research. Shah believes that Open Access is revolutionizing the publication process and benefitting research in all fields.
Han Ju
Reviewer
Hello! I'm Han Ju, the heart behind World Wide Journals. My life is a unique tapestry woven from the threads of news, spirituality, and science, enriched by melodies from my guitar. Raised amidst tales of the ancient and the arcane, I developed a keen eye for the stories that truly matter. Through my work, I seek to bridge the seen with the unseen, marrying the rigor of science with the depth of spirituality.
Each article at World Wide Journals is a piece of this ongoing quest, blending analysis with personal reflection. Whether exploring quantum frontiers or strumming chords under the stars, my aim is to inspire and provoke thought, inviting you into a world where every discovery is a note in the grand symphony of existence.
Welcome aboard this journey of insight and exploration, where curiosity leads and music guides.
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