Pharmaceutical world market. World ranking of pharmaceutical companies The best drug companies in the world

Bayer is an international company with expertise in the natural sciences: health and agriculture. The company includes about 302 representative companies in 75 countries around the world. The company's products and services aim to benefit people and improve the quality of life. The company's activities are based on the principles of sustainable development, economic stability and social responsibility.

The company was founded in 1863 in Barmen (now a district of Wuppertal) by Friedrich Bayer and Johann Friedrich Weskott as a general partnership of Friedr. Bayer et comp. The company was established with the aim of producing and selling synthetic dyes.

Today, the company's business operations are organized into three divisions: Pharmaceuticals develops and manufactures prescription drugs and health care products, Consumer Health offers over-the-counter drugs, Crop Science works in crop protection for quality food companies, including animal health.

In 2016, the number of employees of the group in the world amounted to 115,200 people, with sales of 4.7 billion euros. Capital expenditures in 2016 amounted to 2.6 billion euros, while expenditures on research and development amounted to 4.7 billion euros.

Bayer has been doing business in Ukraine since 1992. A team of over 450 professionals is working to present their knowledge and innovation in new products to the Ukrainian industry.

British pharmaceutical company, one of the largest in the world. The headquarters is in Brentford, a suburb of London. The company was formed in 2000 through the merger of Glaxo Wellcome and SmithKline Beecham.

The main production facilities are concentrated in the UK, Spain, Ireland, USA and Singapore. The main sales are provided by drugs in therapeutic areas: respiratory diseases, oncology, HIV / AIDS, diabetes, mental disorders, prevention of infectious diseases (vaccines for various age groups).

Johnson & Johnson is the world's largest manufacturer of human health products, medicines and medical devices. On the territory of Russia and the CIS countries, the products of Johnson & Johnson companies have been represented since 1992 in three areas: consumer products, products for hospitals, and pharmaceutical products.

The Pharmaceutical Division is represented by the Janssen Group, whose research areas include oncology (including multiple myeloma and prostate cancer), immunology (psoriasis), psychiatry (schizophrenia, Alzheimer's disease), infectious diseases (HIV / AIDS, hepatitis C and tuberculosis) , as well as cardiovascular diseases and metabolic disorders (diabetes).

Today, MSD is a global leader in healthcare offering medicines, vaccines, biological therapies, general medicines and veterinary products to consumers.

The company does business in more than 140 countries, implementing innovative solutions for maintaining and restoring health. MSD's portfolio of medicines and main research areas are focused on the treatment and prevention of diseases that are a major threat to public health: infectious diseases, cardiovascular diseases, diabetes, women's health and respiratory diseases.

Novartis is a multinational pharmaceutical corporation that today consists of six business divisions: Pharma (innovative prescription drugs), Alcon (full range of eye care products), Sandoz (high-quality generics and biosimilars), OTC (over-the-counter products), Vaccines and Diagnostics (vaccines and test systems), Animal Health (drugs for animals).

The main areas of research and development of Novartis (Novartis) are oncology, cardiovascular diseases, ophthalmology, neurology, biological preparations.

The company is also developing innovative areas such as immuno-oncology, aging prevention, regenerative medicine and infectious diseases.

The headquarters is located in Basel, Switzerland. The company has about 120,000 employees in more than 140 countries around the world.

Representative office of Novartis in Ukraine was opened in 1993.

The company was founded in 1896 in Basel, Switzerland and today has offices in 150 countries and employs more than 80,000 people. As one of the leading manufacturers of original drugs in the field of oncology, virology and transplantology, the company pays special attention to the issues of combining the effectiveness of its products with the convenience and safety of their use.

In addition to F. Hoffmann-La Roche, the Roche Group includes Genentech, USA and Chugai, Japan. Roche's activities in Ukraine began in 1998 with the establishment of a representative office. In 2009, Rosh Ukraine LLC was registered.

Sanofi is a diversified pharmaceutical company. Its divisions operate in more than 100 countries around the world. Subsidiaries of Sanofi are the following companies: Sanofi Pasteur - production of vaccines; Genzyme is an innovative biotechnology company; Chattem - production of over-the-counter drugs; Merial - production of veterinary drugs; Zentiva is a manufacturer of generic drugs.

Main areas of work: emerging markets; diabetes; vaccines; health products; innovative products; animal health.

Teva Ukraine LLC is part of the TEVA Corporation, a leading international pharmaceutical company specializing in the development, production and marketing of generic and original medicines, as well as active pharmaceutical ingredients.

The company started operating in Ukraine in 1997 and is now one of the top three leaders in the Ukrainian pharmaceutical market. About 400 employees work here today.

The company's activities in Ukraine are concentrated in the following areas of medicine:

• CNS diseases
• mental illness
• diseases of the respiratory system, both viral and bacterial etiology
• oncology
• diseases of the cardiovascular system
• women Health
• bone metabolism disorder
• diseases of the liver and gastrointestinal tract.

AbbVie is a global research and development biopharmaceutical company.

The company's activity is focused on the development of medicines with a pronounced clinical effect that benefit the patient and are cost-effective, especially in those areas where there is the greatest need for them, in particular - in the treatment of hepatitis C, chronic kidney disease, neurology, immunology, oncology and women's health.

On March 21, 2019, it became known that the top 10 best-selling drugs in 2018 were announced. AbbVie's Humira (adalimumab) has been the top selling drug for the past 2 years, according to Nature Reviews Drug Discovery Biobusiness Review. Global sales of this drug increased in 2017 by $18.4 billion. USA, and in 2018 - by 19.9 billion dollars.

As reported, at the end of 2018, the US Food and Drug Administration (FDA) approved the biological analogue of Humira - Hyrimoz (Sandoz). However, due to patent protection, this drug will not be on the market until 2023.

The 2nd place in 2018, as in the previous year, is occupied by the drug used to treat blood cancer Revlimid (lenalidomide) from Celgene. Sales of this drug in 2018 amounted to $9.7 billion. compared with 8.2 billion dollars. in 2017

3rd place is occupied by a drug from Merck Keytruda (pembrolizumab), which is a programmed inhibitor of ligand-1 cell death and is used to treat lung cancer and other types of oncological pathology. In 2017, with sales of $3.8 billion. Keytruda was not among the top 10 best-selling drugs. However, in 2018, its sales volume reached 7.2 billion dollars, which ensured it the 3rd place in this rating.

The following 3 places, respectively, are occupied by drugs for the treatment of oncology from Roche: 4th place - Herceptin (trastuzumab), whose sales in 2018 amounted to $ 7.1 billion, which is equivalent to 2017; 5th place - Avastin (bevacizumab) with sales in 2018 at the level of 7 billion dollars. compared with 6.8 billion dollars. in 2017; 6th place - Rituxan (rituximab), its sales in 2018 amounted to 6.9 billion dollars. compared with 7.5 billion dollars. in 2017

As of March 2019, it is not clear how long these 3 drugs will dominate the global market given the recent US approval of their biosimilars.

Bristol-Myers' monoclonal antibody Squibb Opdivo (nivolumab), which is indicated for the treatment of various types of cancer, including lung cancer and melanoma, ranked 7th in this ranking. In 2018, sales of this drug amounted to 6.7 billion dollars, which is 4.9 billion dollars. more than in 2017

The 8th place is occupied by Eliquis (apixaban), again from Bristol-Myers Squibb. The drug is a direct inhibitor of factor Xa, which is used to treat venous thromboembolic complications and prevent stroke in patients with atrial fibrillation. In 2018, sales of the drug amounted to 6.4 billion dollars. compared with 4.9 billion dollars. in 2017

Pfizer's pneumococcal vaccine, Prevnar 13, ranked 9th in this ranking with sales of $5.8 billion. in 2018 compared to $5.6 billion in 2017

Rounding out the top 10 is Johnson & Johnson's Stelara (ustekinumab), an inhibitor of interleukin-12 and interleukin-23, which is used to treat psoriasis, active psoriatic arthritis, and moderate to severe Crohn's disease. In 2018, sales of this drug amounted to $5.7 billion. against 4 billion dollars. a year earlier.

2017

Sales $789 billion

Oncology and diabetes mellitus are the main therapeutic areas

No. p / p	Therapeutic direction	Sales volume in 2017, billion dollars	Sales volume in 2024, billion dollars USA	Average annual growth/loss rates, %
1	Oncology	104	233	12,2
2	Diabetes	46,1	59,5	3,7
3	Rheumatism	55,7	56,7	0,2
4	Vaccines	27,7	44,6	7,1
5	Antivirals	42,4	39,9	-0,9
6	Immunosuppressants	13,7	38,1	15,7
7	Bronchodilators	27,2	32,3	2,5
8	Dermatology	12,9	30,3	13
9	Preparations for the treatment of diseases of the sense organs	21,6	26,9	3,2
10	Antihypertensive drugs	23	24,4	0,8

2016

USA the largest pharmaceutical market, Russia No. 14

Company				Sales volume, 2016, $ billion

The global pharmaceutical landscape is constantly changing - new companies are emerging, former outsiders are moving to the forefront, and leaders are not able to cope with increased pressure. In this publication, we will analyze the successes and failures of the top 50 leading global companies in 2015 and try to understand what is the key to the success of the leaders. Below are the top 50 pharmaceutical companies by global prescription drug sales, according to market research firm Evaluate Ltd, showing top drug sales and total investment in R&D in 2015.

This rating is the result of important changes in the global pharmaceutical market and the transformation of the healthcare business model. At the same time, it is expected that the landscape of the pharmaceutical market will continue to change further under the influence of both new players and innovative trends.

The total sales of prescription drugs by companies in the top 50 amounted to more than 620 billion dollars. USA, and the total investment in R&D exceeded $110 billion. (table).

p / p No. 2015	p / p No. 2014	Company, headquarters location	Sales volume of Rx-drugs in 2015, USD bln	The volume of investments in R&D at the end of 2015, billion dollars	Top 3 best-selling prescription drugs in terms of sales in monetary terms in 2015, billion dollars
1	2	Pfizer, New York, USA	43,112	7,678	Prevnar 13 - 5,940; Lyrica - 4,839; Enbrel - 3,333
2	1	Novartis, Basel, Switzerland	42,467	8,465	Gleevec - 4,658; Gilenya - 2.776; Lucentis - 2,060
3	3	Roche, Basel, Switzerland	38,733	8,452	Rituxan - 7,321; Avastin - 6,945; Herceptin - 6,794
4	5	Merck & Co., Kenilworth, New Jersey, USA	35,244	6,613	Januvia - 3,863; Zetia - 2,526; Janumet - 2,151
5	4	Sanofi, Paris, France	34,896	5,638	Lantus - 7.089; Plavix - 2.140; Lovenox - 1,907
6	9	Gilead Sciences, Foster City, California, USA	32,151	3,018	Harvoni - 13,864; Sovaldi - 5,276; Truvada - 3,459
7	6	Johnson & Johnson, New Brunswick, New Jersey, USA	29,864	6,821	Remicade - 5,779; Stelara - 2.474; Zytiga-2,231
8	7	GlaxoSmithKline, Brentford, UK	27,051	4,731	Seretide/Advair - 5.625; Pediarix - 1,120; Triumeq - 1,116
9	8	AstraZeneca, London, UK	23,264	5,603	Crestor - 5.017; Symbicort - 3.394; Nexium - 2,496
10	10	AbbVie, North Chicago, Illinois, USA	22,724	3,617	Humira - 14.012; Viekira - Pak - 1,639; Lupron - 0.826
11	11	Amgen, Thousand Oaks, California, USA	20,944	3,917	Enbrel - 5.364; Neulasta - 4.715; Aranesp - 1,951
12	28	Allergan, Irvine, California, USA	18,403	2,781	Botox - 1,976; Restasis - 1.048; NamendaXR - 0.759
13	12	Teva Pharmaceutical Industries, Petah Tikva, Israel	16,982	1,525	Copaxone - 4.023; Treanda - 0.741; ProAir HFA - 0.549
14	15	Novo Nordisk, Bagsværd, Denmark	16,054	2,024	NovoRapid - 3.082; Levemir - 2.722; Victoza - 2,682
15	14	Eli Lilly, Indianapolis, Indiana, USA	15,792	4,478	Humalog - 2.842; Alimta - 2,493; Cialis - 2,291
16	13	Bayer, Leverkusen, Germany	15,558	2,588	Xarelto - 2.062; Eylea - 1.362; Kogenate - 1.281
17	18	Bristol-Myers Squibb, New York, USA	14,480	4,037	Eliquis - 1,860; Sprycel - 1.620; Daklinza - 1,315
18	17	Takeda, Osaka, Japan	12,565	2,776	Velcade - 1.192; Protonix - 0.840; Entyvio - 0.581
19	16	Boehringer Ingelheim, Ingelheim, Germany	12,348	2,802	Spiriva - 3,912; Pradaxa - 1,831; Micardis - 1.019
20	20	Astellas Pharma, Tokyo, Japan	10,937	1,960	Xtandi - 2.089; Prograf - 1,600; Vesicare - 1,128
21	24	Mylan, Canonsburg, Pennsylvania, USA	9,291	0,652	EpiPen - 1.073; Fentanyl TDS - 0.258; Esomeprazole magnesium - 0.169
22	22	Biogen, Cambridge, Massachusetts, USA	9,189	2,013	Tecfidera - 3.638; Avonex - 2,630; Tysabri - 1,886
23	26	Celgene, Summit, New Jersey, USA	9,069	2,295	Revlimid - 5,801; Pomalyst - 0.983; Abraxane - 0.968
24	23	Merck KGaA, Darmstadt, Germany	7,693	1,453	Rebif - 1.995; Erbitux - 0.997; Gonal-F - 0.760
25	25	Daiichi Sankyo, Tokyo, Japan	7,215	1,618	Benicar - 1,900; Nexium - 0.652; Loxonin/Loxonin Poultice - 0.382
26	33	Valeant Pharmaceuticals International, Mississauga, Ontario, Canada	7,013	0,333	Xifaxan 550 - 0.578; Jublia - 0.338; Wellbutrin XL - 0.320
27	27	Otsuka Holdings, Tokyo, Japan	6,728	1,595	Abilify - 2.896; Samsca - 0.346; Abilify - Maintena - 0.337
28	34	CSL, Melbourne, Australia	6,294	0,564	Privigen - 2.462; Human albumin - 0.835; Humate P - 0.538
29	—	Baxalta, Cambridge, Massachusetts, USA	6,148	1,176	Advate - 2.240; Gammagard Liquid - 1.523; FEIBA VH - 0.706
30	30	Shire, Dublin, Ireland	6,100	0,884	Vyvanse - 1,722; Lialda - 0.684; Cinryze - 0.618
31	32	Sun Pharmaceutical Industries, Mumbai, India	4,503	0,297	Imatinib Mesylate - 0.196; Atorvastatin - 0.178; Absorica - 0.156
32	29	Les Laboratoires Servier, Neuilly-sur-Seine, France	4,470	1,122	Aceon - 0.706; Diamicron - 0.528; Vastarel - 0.480
33	35	Eisai, Tokyo, Japan	3,909	1,043	Aricept - 0.470; Aloxi - 0.370; Methycobal - 0.355
34	36	UCB, Brussels, Belgium	3,763	1,150	Cimzia - 1.202; Vimpat - 0.753; Keppra - 0.730
35	31	Abbott Laboratories, Abbott Park, Illinois, USA	3,720	0,137	Femelle - 0.026; Geptor - 0.019; Quetidin - 0.013
36	37	Fresenius, Bad Homburg, Germany	3,709	0,375	Heparin - Sodium - 0.072
37	40	Grifols, Barcelona, ​​Spain	3,365	0,235	GamunexIGIV - 1.057; Flebogamma - 0.655; Prolastin-C - 0.461
38	38	Chugai Pharmaceutical, Tokyo, Japan	3,297	0,677	Actemra - 0.221; Edirol - 0.191; Neutrogin - 0.122
39	—	CJ (CheilJedang), Seoul, South Korea	3,228	N/A	Epokine - 0.023; Mosawon/Mosaone - 0.004; Hepcure - 0.002
40	46	Mallinckrodt, Dublin, Ireland	2,976	0,185	H.P. Acthar Gel - 1.037; Ofirmev - 0.263; Optiray - 0.198
41	43	Sumitomo Dainippon Pharma, Osaka, Japan	2,902	0,684	Latuda - 0.920; Brovana - 0.225; Meropen - 0.186
42	47	Endo International, Dublin, Ireland	2,856	0,045	Voltaren Gel - 0.207; Opana ER - 0.176; Xiaflex - 0.158
43	39	Menarini, Florence, Italy	2,836	N/A	Lobivon/Nebilet/Nebilox - 0.277; Enantyum/Quiralam/Quirgel - 0.132; Adenuric - 0.093
44	—	Regeneron Pharmaceuticals, Tarrytown, New York, USA	2,689	1,621	Eylea - 2.676; Arcalyst - 0.014
45	48	Alexion Pharmaceuticals, Cheshire, Connecticut, USA	2,603	0,544	Soliris - 2,590; Strensiq - 0.012
46	41	Aspen Pharmacare, Durban, South Africa	2,586	0,001	Fraxiparine - 0.244; Arixtra - 0.109; Orgaran - 0.024
47	44	Mitsubishi Tanabe Pharma, Osaka, Japan	2,542	0,609	Remicade - 0.573; Talion - 0.141; Ceredist - 0.121
48	—	Nestle, Vevey, Switzerland	2,431	N/A	Restylane - 0.394; Epiduo - 1.212; Oracea - 0.206
49	—	Meda, Somerset, New Jersey, USA	2,139	0,108	Dymista - 0.119; Dona - 0.101; Betadine - 0.098
50	42	Hospira, Lake Forest, Illinois, USA	2,131	0,247	Precedex - 0.139; Hydromorphone - Hydrochloride - 0.087; Vancomycin - 0.086

Source: data from the analytical company "Evaluate Ltd"

The ranking includes 18 pharmaceutical companies headquartered in the US, 8 in Japan, 4 in Germany, 3 in Switzerland, 3 in Ireland, 2 in the UK, 2 in France, and 1 each in Denmark, Israel, Canada, Australia, India, Spain, Belgium, Italy, South Korea and South Africa. It should be noted that the total number of European pharmaceutical companies is also 18. At the same time, there are no enterprises from the countries of Central and Eastern Europe among European pharmaceutical companies.

While the companies in the top 50 global sales in value terms have remained remarkably stable over time, their relative position on the list continues to change. This reflects the importance that the launch of a new drug and the successful promotion of existing drugs at every stage of the product life cycle now play a key role in gaining a competitive sales advantage. This helps explain why Pfizer returned to its position as the #1 prescription drug sales leader this year, displacing Novartis from No. 1. Key to Pfizer's success in this context has been an increase in sales in the vaccine segment, which Novartis recently exited, thanks in part to strong sales of the American company's pneumococcal vaccine Prevnar 13.

Further down the rankings, we find signs of a noticeable pause in the climb to the top of the mid-range companies with innovative products and a fresh look at their marketing, which could enter the top 10. So far, however, only one of them has managed to achieve this high bar - this feat was accomplished by Gilead Sciences, which jumped from 25th place to 9th the year before last. This was made possible by the development of a drug for the treatment of hepatitis, which became a real breakthrough in this direction and provided a record high sales volume for the company. But having set the bar so high, the company must now continue to live up to the expectations of the stock markets - it's time for an encore, otherwise Gilead Sciences risks not maintaining its position in the top 10 pharmaceutical companies in terms of sales in monetary terms. In addition, the emergence of the top 10 generic pharmaceutical companies is also just around the corner. For example, Teva, an already huge product portfolio, recently acquired Allergan's generics business. However, Teva's move into the top 10 could be hampered by price cuts, product launch delays and other regulatory issues.

In 2015, the rating included 3 American companies Meda, Regeneron and Baxalta, as well as Korean CJ and Swiss Nestle, displacing Baxter International from the top 50 (USA, 21st place ), Stada Arzneimittel (Germany, 45th), Lundbeck (Denmark, 49th), Kyowa Hakko Kirin (Japan, 50th). Actavis also left the rating, which in early 2015 completed the acquisition of Allergan and changed its corporate name to Allergan. The deal amounted to 70.5 billion dollars. in money and securities. The company's management expected that this combination could create one of the top 10 pharmaceutical companies in terms of sales with expected revenue in 2015 of more than $ 23 billion. However, Allergan failed to enter the top 10 in prescription drug sales, but improved its position by 14 points over Allergan and 7 points over Actavis. , taking the 12th position with sales of prescription drugs in 2015 in the amount of more than 18 billion dollars.

Traditionally, Big Pharma's leading players rely on the development of innovative, often first-in-class drugs that are destined for blockbusters. Therefore, it is only natural that pharmaceutical companies in the top 10 invest heavily in R&D (Figure 1). At the same time, many of them occupy a leading position in terms of investment in R&D, not only within the healthcare sector, but also globally. Thus, according to PricewaterhouseCoopers, pharmaceutical companies such as Roche, Novartis, Johnson & Johnson, Pfizer, Merck & Co., Sanofi, GlaxoSmithKline and AstraZeneca are among the top Top 20 companies in terms of investment in R&D in 2015 among all industry representatives.

According to the estimates of the international analytical company "Evaluate Pharma", in 2017 the volume of the global pharmaceutical market reached 1,200 billion US dollars, which is 3.6% more than in 2016 ( picture 1).

Picture 1

Dynamics of the development of the global pharmaceutical market in 2012-2017, US$ billion

Source: Evaluate Pharma, 2017, World Preview 2017 outlook to 2022

Data calculated on the basis of producer prices without taking into account discounts due to legislative reduction in selling prices

As before, the US pharmaceutical market not only remains a regional leader, but also determines the main trends in the development of the global pharmaceutical industry. In 2017, its volume increased by 4% and reached 456 billion US dollars. The fears of American pharmaceutical companies that took place at the beginning of 2017 and related to the introduction by the new President Donald Trump of measures aimed at curbing the rise in drug prices were not confirmed. On the contrary, Trump appointed former Elly Lilly executive Alex Azar as secretary of state for health, from whom one can hardly expect decisive action contrary to the interests of the pharmaceutical industry. U.S. Senator Ron Wyden commended the president's policies: "At every step of the health care policy, Mr. Trump is breaking promises to lower medical and drug costs, expand and provide widespread access to health care services that he has given to American families. in my oath." On the contrary, companies such as Celgene, AbbVie, Roche, Allergan, Amgen, and Novo Nordisk have even managed to significantly increase the prices of their innovative drugs.

Until recently, everyone in the US was waiting for a new player in the prescription drugs segment - the largest online retailer Amazon, which already sells medical devices, nutritional supplements and over-the-counter drugs via the Internet. This event would mean the emergence of a powerful competitor for pharmacy chains and large wholesale companies such as CVS Health, Walgreens Boots Alliance, Express Script Optum Rx in the stationary trade segment. But Amazon abandoned plans to supply medicines to medical facilities. The company has been unable to persuade major hospitals to change their traditional purchasing process, which is through pharmaceutical distributors and has evolved over decades. Amazon's warehouse and logistics infrastructure, which is not designed for the storage and delivery of heat-sensitive drugs, has also become a serious obstacle. However, the scenario in which Amazon will act as an investor and create its own network of retail outlets is still possible.

The Chinese pharmaceutical market firmly held the second place in the world ranking in 2017. Its volume reached 165 billion US dollars. At the same time, it is growing twice as fast as the developed pharmaceutical markets. At the last congress of the ruling Communist Party, the strategic goals for the development of Chinese society were announced. Among them: improving the quality of life and health of the population of the Middle Kingdom.

At the same time, the Chinese government is betting on such reforms of the healthcare system as the expansion and decentralization of its infrastructure. It intends to introduce new, increased requirements for the registration of medicines and change the pricing system for medicines, taking into account the pharmacoeconomics.

Since the share of foreign suppliers in China's drug supply is only 25%, there are great prospects for expansion and growth for global pharmaceutical companies. However, due to various reasons inherent in the local culture and mentality, entering the Chinese pharmaceutical market may not be so easy. That is why most pharmaceutical companies prefer a form of cooperation with local companies or the establishment of subsidiaries, including research and development centers. In the face of skyrocketing drug supply costs, China's authorities are taking drastic measures to control prices and reduce distribution costs, including by cutting back on the supply chain. Despite all this, analysts support the view that the size of the Chinese pharmaceutical market by 2020 could reach 200 billion US dollars.

In 2017, the Japanese pharmaceutical market maintained its third position in the global ranking. Despite all the efforts made by the Japanese government to contain the costs of the healthcare system, in 2017, prescription drug spending still increased by 1% and the market reached US$120 billion. The Japanese government is seeking to control rising costs, in particular, measures are being taken to increase the share of generics from 60% to 80%. In addition, the goal is to reduce prices for expensive innovative medicines by up to 50%.

The market for over-the-counter drugs is in the phase of deregulation. This process is associated with the growth of online trade and the increase in the market share of over-the-counter drugs to 20%.

Takeda, the leader of the Japanese pharmaceutical market, is strengthening its position. Moreover, it does this not only by creating a joint venture with the largest player in the generics market - the Israeli company TEVA, but through active international expansion. In early 2017, Takeda bought out US-based Ariad Pharmaceuticals for $5.2 billion. With this acquisition, it plans not only to significantly expand the range of anticancer drugs, but to strengthen its market position in the US market for prescription drugs.

An important place in the global pharmaceutical market is occupied by the group of countries “Pharmerging’markets” (highlighted by the analytical company IMS Health and consists of 21 countries). According to economic indicators, it is divided into three subgroups. The first included China, the second - Brazil, India and Russia, and the third - 17 countries with a significant population and with great growth prospects. These markets over the past decade have become the locomotive and main driver of growth in the global pharmaceutical market. On average, they increase annually by 11-15%, while the saturated traditional pharmaceutical markets grow by only 1-4% per year. In 2017, the total volume of pharmaceutical markets "Pharmerging'markets" reached 405 billion US dollars, which is 33.8% of the global pharmaceutical market.

According to analysts' forecasts, the annual growth rate of the global pharmaceutical market in the coming years will be 3-6%.

TOP-20 drugs

To understand what factors are driving the development of the pharmaceutical industry, one should certainly analyze the TOP-20 drugs that became leaders in terms of sales in 2017.

Let's look at these molecules separately.

Table 1

TOP 20 drugs by achieved sales in 2017

Rank	A drug	Substance	Manufacturer	Turnover in billion US dollars in 2016	Turnover in billion US dollars in 2017	Growth in 2016/2017, %
		Pneumococcal conjugate

It should be noted that almost all drugs that were among the leaders in sales in 2017 are biotechnological products.

A clear proof of the importance of biotech drugs is such an indicator as their share in the total turnover of the leaders of the pharmaceutical market.

The share of biotech drugs in the total turnover of Abbvie is 65%, Pfizer - 50%, Roche - 45%. Their importance is so great that this topic is worthy of a separate article.

In 2017, the trend of increasing the introduction of new molecules or even new therapeutic regimens (and mainly biotech drugs) to the market continued. Perhaps this area is now at its peak. At the end of 2017, 43 new drugs received FDA approval. Their sales, according to market experts, in 5 years after the launch will reach 31.6 billion US dollars.

The EMA has granted marketing licenses for 31 new molecules. Of these, 92% are biotech products (eg, monoclonal antibodies and various cell receptor inhibitors). The share of biosimilars is growing. Let us consider the new molecules in more detail.

table 2

New drugs registered in Europe in 2017

The product's name	Active substance	developer manufacturer	Therapeutic scope
			Lungs' cancer
			Metastatic Merkel cell carcinoma
	Inotuzumab/Ozogamicin		Lymphocytic leukemia
	Cerliponase alfa		Enzyme Replacement Therapy
			Eosinophilic asthma
			Diabetes
			Atopic dermatitis
			Progressive renal carcinoma
			Rheumatoid arthritis
			metastatic breast cancer
			Severe form of plaque psoriasis
			Multiple sclerosis
	Glecaprevir/Pibrentasvir		Chronic hepatitis C
			Chronic hypoparathyroidism
			multiple myeloma
			Primary biliary cirrhosis
		Dompe Farmaceutica	Corneal diseases
			Secondary hyperparathyroidism
			Supraventricular tachycardia
	Nonacog beta pegol		coagulation factor
	Follitropin delta		Reproductology
			Acute myeloid leukemia
			Severe simple psoriasis
			Severe plaque psoriasis
			Lungs' cancer
			Severe plaque psoriasis
			Preventing Side Effects of Chemotherapy
			Chronic lymphocytic leukemia
	Sofusbuvir/Velpatasvir/Voxilapevir		All genotypes of hepatitis C
			Rheumatoid arthritis
	Ceftazidem/Avibactam		Antibiotic - bacterial infections
			Treatment of ovarian or peritoneal carcinomatosis
			Prevention of recurrence of infection

An analysis of the list of new drugs shows that the most promising areas, as before, include: oncology, HIV infection, diabetes mellitus, multiple sclerosis, orphan diseases and biosimilars. With full confidence, we can expect that these trends will continue in 2018. German market analysts predict that 30 new molecules will be introduced to the market in 2018. One third of them will have to improve the treatment of cancer patients.

This list is a direct consequence of the fact that leading pharmaceutical companies direct large investments in the development of new promising groups of drugs. R&D spending increased by another 4% and amounted to USD 158.9 billion in 2017. Today, the world's leading pharmaceutical companies invest in R&D from 13% (Celgene) to 36% (Johnson&Johnson) of their net turnover.

TOP-15 global pharmaceutical companies

To what extent have companies managed to adapt to new trends in the industry? The results of their business activities in 2017 will best tell about this.

Table 3

TOP-15 global pharmaceutical companies by sales and net profit in 2017

	Company	Sales volume, mln USD		Growth 2016/2015, %	Net income in US$ million
							Growth 2017/2016
	Johnson & Johnson*
	BristolMyersSquibb

*Pharmaceuticals and OTC only

**Bayer Healthcare only

Source: pharmaceutical companies annual reports, 2017

An analysis of the results of economic activities of leading pharmaceutical companies shows that after the invasion of the TOP-15 by the American company Gilead (this event took place in 2014), the composition of the elite of the global pharmaceutical business has not changed much. However, a certain rotation was observed within the group of leaders.

Of course, not all companies cope equally well with the challenges of today's reality, someone does it better, someone worse. Among these challenges are:

• the patent collapse on traditional synthetic chemical blockbusters;
• the development of biotechnology and the emergence on the market of a completely new group of biological products, which partially or completely revolutionizes the therapy of many types of diseases;
• expanding the scope, levels of marketing and sales of pharmaceutical products;
• the emergence of new counterparties on the market in the form of pharmacy chains or retail operators operating via the Internet;
• the right combination of forms of stationary and non-stationary trade in the form of multi-channel sales.

individual leaders

Let's look at the situation of individual leaders in more detail:

1. Roche

In 2017, the Swiss company Roche was able to continue its path of organic growth. The group increased its sales by 5% (based on constant exchange rates). This growth was driven primarily by the Prescription Products Division, with the launch of new drugs such as Ocrevus (ocrelizumab), Tecentriq (atezolizumab), Alecensa (alectinib). These three drugs alone accounted for 65% of the growth, and already in the first year after the launch, their share in the unit's sales volume reached 4%.

The company's net income declined due to R&D costs, the launch of new molecules and the fulfillment of pension obligations.

Sales of blockbusters from Mabthera/Rituxan and Avastin were down 11% and 2%, respectively, due to competition from biosimilars in European markets.

Through the final acquisition of US biotech company Ignyta, Roche has strengthened its strong position in the field of oncology. Managing Director Daniel O'Day commented on the deal as follows: “Cancer is a complex disease and many patients suffer from mutations that are falsely detected and even more difficult to treat. The integration of Ignyta perfectly complements our global anticancer portfolio.”

1. Pfizer

In 2017, the American company Pfizer, despite a slight decline in turnover (-1%), entered the top three leading pharmaceutical companies. The decline in sales was due to the following factors:

• Expiration of patent protection for Enbrel, Lyrica and Vfend in developed markets in Europe and for Pristiq and Viagra in the US (-$2.1 billion);
• Interruptions in production of Hospira injectables in the US;
• Decline in Prevnar 13 vaccine sales due to removal of the adult indication.

These negative developments were offset by increased sales of key products such as Ibrance, Eliquis, Inflectra globally and Xelianz in the US market, as well as an increase in sales in emerging markets by US$1.1 billion (11%).

After major acquisitions in 2016, Pfizer was on a wait-and-see basis in terms of M&A in 2017. This policy was dictated by the change in the US presidential administration and the lack of clarity on further tax and legislative reforms, rather than the availability of sufficient financial resources. On the contrary, in 2017, Pfizer management announced that it was considering strategic alternatives for the division, up to and including a sale.

With such interesting brands as Centrum, Advil, Nexium 24 HR, Nexium Control Robitussin, the turnover of this division in 2017 reached 3.41 billion US dollars. Pfizer management said it expects to receive at least US$20 billion from the deal. This amount turned out to be too large for such a giant as the American company Johnson & Johnson. Only the American company Procter & Gamble was able to take part in the competition.

1. Novartis

In 2017, the Swiss company Novartis almost managed to reverse the decline in sales. They decreased only by 1.22%. This result was driven by strong growth in sales of Cosentyx (secukinumab) and Entresto (sacubitril/valsartan). Thus, sales of Cosentyx increased to 2.1 billion US dollars, and Entresto - to 507 million US dollars. This is much more than in 2016, when they amounted to 972 and 400 million US dollars, respectively.

These results were needed to offset the continued decline in sales of drugs that had lost patent protection. For example, sales of Gleevec/Glivec decreased by $1.38 billion (-42%) in 2017.

Due to known reasons for the lack of profitability, Alcon's ophthalmology division was subjected to a strategic review in 2017. As a result of this process, the company returned to the path of stabilization and growth.

In 2017, this division's sales grew by 4%, while operating profit increased by 5%. That didn't do away with the company's desire to say goodbye to this generally unfortunate acquisition (if a buyer could be found), but it did give the division some breathing room to decide whether to sell until 2019.

Novartis made a number of small acquisitions in 2017, such as US-based Encore Visoin Inc. for 456 million US dollars and the British company Ziarco Group for 420 million US dollars. Their purchase was due to the desire to strengthen the dermatological and ophthalmic divisions.

Despite certain shifts, the current managing director, Joseph Jimenez, had to leave his chair in February 2018 and transfer the business to his heir, Mr. Vas Narasimhan. Apparently, shareholders no longer believed that Mr. Jimenez was in a position to decisively turn around and modernize the pharmaceutical heavyweight at the right pace.

On this occasion, it is interesting to note that Novartis, already under new management, announced the sale of its share (36.5%) in the joint venture with GSK for the sale of over-the-counter drugs GSK Consumer Healthcare to the British company GSK. In 2017, the Novartis/GSK joint venture generated a turnover of $10 billion and a net profit of $1.8 billion. The cost of this transaction is estimated at 13 billion US dollars. Obviously, the process of clearing assets and focusing on key segments of the company's activities continues, but it is happening more decisively.

1. GlaxoSmithKline

The British pharmaceutical giant in 2017, with an overall increase in sales of 8%, showed growth in all of its main three business segments.

The Innovative Prescriptions segment grew 8% to £17.3bn. In the same segment, new drugs posted sales of £6.7bn, up 51% from 2016.

Vaccine division up 12% to reach sales of £5.2bn

GSK Consumer Healthcare achieved sales of £7.8 billion, up 8% from 2016.

In its traditional area of ​​respiratory and asthma medicines, GSK has experienced strong competition from generics. Sales of Advair (fluticasone propionat) and Seretide decreased by 14% in 2017. The reason is the necessary price reduction and the transition to more modern drugs in therapy.

This has encouraged GSK to invest heavily in R&D in its main therapeutic segments, namely in the development of drugs for the treatment of respiratory diseases, HIV infection, malignancies and autoimmune diseases. And new developments in the field of respiratory infections, in particular, drugs Ellipta (Umecledinium) and Nucala (Mepolizuab), have already brought the first results. These new molecules generated sales of £1.93 billion in 2017.

There have been rumors that GSK has shown interest in acquiring the over-the-counter division of the American company Pfizer. However, GSK is unlikely to be willing to spend $20 billion on such an acquisition, which is exactly what Pfizer expects to receive from the deal.

1. Johnson & Johnson

In 2017, the American giant J&J developed its pharmaceutical and over-the-counter business very rapidly. As a result, global sales of the pharmaceutical division increased by 11.4% to $40.4 billion. Sales of anticancer drugs developed successfully, which showed an increase of 25% and reached 7.26 billion US dollars. The top sellers in this segment were Darzalex/daratumumab (+117%) and Imbruvica/ibrutinib (+51.3%).

To strengthen its pharmaceutical business, J&J acquired Swiss biotech company Actelion in 2017 for $30 billion.

This acquisition was commented by market analysts as follows: "The acquisition price is too high and exceeds 30 times the company's expected sales in 2018." So far, Actelion drugs have not even added a billion to actual sales. All hopes for the future are associated with the rapid introduction of a new BTX inhibitor into the practice of treating oncological diseases.

Sales of the company's best-selling drug Remicade (infliximab) fell 13.1% to $7.1 billion. This is due to the fact that competitor Pfizer brought its Inflectra biosimilar to the market at a price 15% cheaper than the original.

The second drug that showed a decline in sales is Invokana (canagliflozin), intended for the treatment of diabetes. Its sales decreased by 21% to US$1.11 billion.

The turnover of the OTC division showed a positive increase of 3.7% to 4.13 billion US dollars. At the same time, sales in two segments, namely women's health and dermatology, decreased by 2.3% and 1.5%, respectively. Perhaps because of this sluggish development of the business segment, J&J showed interest in Pfizer's OTC range.

Back in 2006, J&J bought brands such as Listerine, Nicorette und Zyrtec from Pfizer. However, too high expectations from a potential seller pushed J&J to formally abandon the deal.

1. MerckSharpDome

In 2017, the American company Merck showed sales growth of only 1%. Global sales of the flagship product portfolio, Keytruda (pembrolizumab), increased from $1.402 billion to $3.809 billion. This was due to a significant expansion of indications and approval of the drug as a monotherapy in the treatment of lung cancer. This decision of the regulatory authorities can be considered as a revolutionary coup, since monotherapy with the drug frees patients from the serious side effects of traditional chemotherapy. These facts forced the company's management to cancel the decision to close production facilities in Ireland. On the contrary, a plan was born to expand them.

Of course, Merck does not live outside the reality of today's pharmaceutical world, and therefore such traditional products of the company as Januvia (-3%), Vytorin (-43%), have suffered a big decline in sales.

Despite large margins, Merck showed sluggish M&A activity in 2017 and bought out German immunotherapy specialist Rigonetic for just $600 million.

Merck is one of those companies that has drastically shed its OTC business to focus on its core pharmaceutical business. Probably, in the case of this company, this decision will be correct.

1. Sanofi

The French company Sanofi ended 2017 with impressive results. The company's total turnover increased by 5.6% and reached the level of 35.1 billion euros. The largest growth was demonstrated by the biotechnology business segment, based on the assortment acquired from the American company Genzyme. In 2017, it added 15.1% and reached 5.67 billion euros.

Many of the company's hopes were realized only in the fourth quarter of 2017, when the new molecules Dupixent (dupilumab) and Kevzara (sarilumab) were introduced to the market, intended for the treatment of atopic dermatitis and rheumatoid arthritis, respectively.

The Vaccine Sales Business Unit grew 8.1% to €5.101 billion.

The traditional segments "diabetes" and "cardiovascular diseases" lost in sales. They decreased by 14.3% to 5.4 billion euros.

Old hits such as the insulin analogue Lantus (-17.5%) and Insuman (-15.5%), as well as Allegra (-12.9%) and Renagel (-12.3%) were affected by generic competition .

With the aim of developing the most dynamic and promising biotech segment, Sanofi made two major acquisitions in 2017, US biotech companies Bioverativ and Ablynx. They strengthen Sanofi's position in haemophilia and rare blood disorders (Bioverativ) and nanotechnology (Ablynx).

Significant to Sanofi is its strategic collaboration with biotech company Regeneron in the development of human monoclonal antibodies.

Sales in the OTC segment increased by only 2.5% to reach 4.834 billion euros. In general, there is very little information on the results and prospects of the over-the-counter business, which, after the merger last year with the business unit of the German company Boehringer, had high hopes and expectations, is very scarce. According to Managing Director of Sanofi, Mr. Brandicourt, this acquisition should have catapulted the company to a market share of 4.6% among the leaders in this market segment. Using the example of further analysis of the development of this division, it will be possible to find an answer to a rather controversial question: is the over-the-counter business a sufficiently large resource for promoting the economic activities of large pharmaceutical companies?

1. AbbVie

In 2017, the sales of the American company AbbVie increased by 10.5% and reached 28.2 billion US dollars. AbbVie is heavily dependent on sales of its blockbuster Humira (adelimumab). This unique drug, which the company received in 2000 through the acquisition of the German company Knoll-BASF Pharma, turned out to be a diamond and has been leading by a clear margin in the ranking of the best-selling drugs for many years. In 2017, this drug also managed to show an increase of 14.6%. But Humira's share of AbbVie's turnover is 65%, this single-drug dependence is a real industry precedent, which is why many experts have already dubbed AbbVie "Humira Corporation". This situation makes the company very vulnerable to competition from biosimilars. There are already several "biocopies" of the adelimumab molecule on the market, including those from Amgen, Boehringer Ingelheim, Sandoz, Fujiil Kyowa. While the last three competitors operate primarily in Europe and Japan, the biggest threat to AbbVie's US$10.4 billion in sales in the US market is Amgen's biosimilar. For this reason, AbbVie in September 2017, as part of a patent litigation, won an agreement from a competitor to refrain from actively marketing its drug Amjevita until 2023. This success gives the company much needed breathing space to close the gap that inevitably arises as a result of the introduction of a number of biosimilars into the market.

1. Gilead

In the past three years, including 2017, sales of this American biotech giant have been declining. At the end of last year, they decreased by 14% to 26.1 billion US dollars. This was mainly due to sales of blockbusters Sovaldi (sofusbovir) and Harvony (Ledipasvir/Sofosbuvir) falling from a peak of US$19.1 billion in 2015 to US$5.35 billion in 2017. Yet, with the new combination drug Epclusa/Vosevi (sofosbuvir/velpatasvir) in 2017, the company managed to slow down such a steep peak and achieve sales of US$9.1 billion in hepatitis C drugs. However, AbbVie's American competitor, with cheaper competitor drug Mavyret, is successfully wresting significant market share from the former monopolist. These harsh facts make the prospects for sales of these drugs very dire. According to experts, in 2018 sales will amount to 3.5-4 billion US dollars.

It should be noted that Gilead has a rich potential range of its own developments. Examples include HIV drugs such as Genfoya, Odefsey and Descovy, which saw a 10% increase in sales between 2016 and 2017 to reach US$5.99 billion. The company's portfolio includes Truvada, a unique HIV prevention drug with huge sales potential, and a promising development in the treatment of non-alcoholic steatohepatitis. But it becomes clear that, relying only on their own efforts, the company will not be able to return to the former peaks of sales. For this reason, for a couple of years the company has been faced with the task of diversifying its product range. In this regard, the management of Gilead decided to acquire other people's potential assets according to an already proven successful scheme. The US$11.9 billion buyout of Kite Pharma opened the door for Gilead into a promising new field of cell therapy. It should be noted that all developments of the new acquisition are still far from commercialization. This means that in order to quickly improve business results, Gilead must expect more decisive action in the M&A market.

1. Bayer Healthcare

If the turnover of the German concern in 2017 practically experienced stagnation, the pharmaceutical division of Bayer Healthcare showed an increase of 6%. Among the drugs that stood out were: the blood clotting inhibitor Xarelto (+13%), the drug for the treatment of age-related macular degeneration Eylea (+16%), the anticancer drug Xofigo (+23%).

Bayer's headache is its OTC business. Sales of this division decreased in 2017 by 3% to 5.87 billion euros. At the same time, it will not be possible to integrate and successfully develop the over-the-counter brands acquired from MSD. Range leader Claritin was down 3.3%, while the umbrella brand Dr. Scholl, despite the repositioning of the brand, decreased by 10.2% to 211 million euros.

In the past year, many experts have expressed fears that the buyout of the American agricultural giant Monsanto will be too large an indigestible piece for Bayer. But Bayer has increased activity in the pharmaceutical segment, in particular, Bayer, together with the biotechnology company Loxo Oncology, has developed and registered in the United States the substance larotrectinib for the treatment of a number of oncological diseases. At the very least, Bayer is showing the pharmaceutical community that it has not forgotten the importance of its pharmaceutical division and is making the necessary financial effort to develop it.

1. Amgen

In 2017, the American biotechnology pioneer did not see the same growth as in previous years. The company's turnover practically remained at the level of 2016. This is due to the fact that top-sellers such as Neupogen (-27%), Aranesp (-7%), Neulasta (+-0) and Enbrel (-13%) decreased by almost USD 1 billion due to for competition from biosimilars.

New products such as Repatha (Evolocumab) (+69%), which lowers cholesterol levels, despite the growth achieved, have not yet reached the required growth rate and absolute sales level. In addition, Repatha faces strong competition from the start with Praluent (Alirozumab), which is a joint venture between Sanofi and Regeneron. However, Praluent is undergoing clinical trials in which it may show effects that will significantly expand the registered indications.

It should be noted that at the moment Amgen has 7 projects at the last stage of clinical development in very promising areas of modern medicine. This means that Amgen has enough resources for internal organic growth.

1. AstraZeneca

In 2017, the British company continued its policy of focusing on selected therapeutic groups (Growth Platforms). Among them: oncology, diabetes and diseases of the respiratory tract. This allowed it to improve its R&D cost savings. The company managed to slow the decline in turnover from 7% in 2016 to 2% in 2017, thereby mitigating the impact of the patent collapse on Nexium (-4%) and Crestor (-30%), as well as the sale of Pfizer's antibiotic range.

However, the first positive trends can be noted based on the results of sales of 5 new drugs - Brilinta, Farxiga, Fasenra, Imfinyi Calquence, which were especially evident in the 4th quarter of 2017. At the same time, in the 4th quarter of 2017, sales of Brilinta and Farxiga increased by 23% and crossed the threshold of one billion US dollars, thus becoming blockbusters. Sales of drugs included in the Growth Platform grew by 6% and in 2017 amounted to 68% of sales achieved. AstraZeneca has taken a number of steps to reduce operating costs. For example, the company sold its range of drugs for $555 million to Aspen Global Incorporated.

Moreover, the company cut R&D spending by 4% to $5.4 billion. Basic operating expenses fell by 4%. Meanwhile, costs associated with bringing new molecules to market rose by 9%.

Managing Director Mr. Pascal Soriot said: "Our new strategy, backed by a strong portfolio of new scientific developments, a brilliant organization, a sales force and a policy of austerity in costs, has begun to bear fruit."

1. Teva

Kåre Schultz, the new Danish managing director of an Israeli company, was unable to sum up a successful outcome in 2017. The company's global sales rose 2% to $22.4 billion. However, the company's operating loss was $17.5 billion. The company, with a market value of $12.3 billion, had $35 billion in debt at the end of 2017. It was led to this situation primarily by the massive US$40 billion acquisition of Allergan's generics, the dramatic drop in generic prices in the US, the decline in sales of the blockbuster Copaxon (Glatirameracetat) due to generic competition, and a significant delay in registration and introduction of new drugs to the market. For this reason, the new head of the company initiated an extensive restructuring program in 2017, in which measures are being taken to reduce operating costs. Among them:

1. Sale of non-key assets such as a range of contraceptives and women's health products with an expected revenue of US$2 billion;
2. Closure of 15 production sites out of the existing 87;
3. Exit from 45 sales markets with 100 existing ones;
4. Reduction of 14,000 jobs, including 270 jobs in Germany.

There is speculation that Teva will reconsider its relationship with PGT Healthcare, a global OTC joint venture formed in 2011 with Procter & Gamble. The company currently operates in 70 countries.

The company's management is confident that the measures taken will bring the first positive results in 2018 and will bring the company back to its former healthy economic state. On the positive side, the company's share price drop has attracted celebrity investors such as Lem Blavatnik ($3 billion) and Warren Buffet ($360 million). This immediately boosted the company's stock price and creditworthiness and is likely to attract even more investors.

1. Eli Lilly

The American company turned out to be quite successful in 2017 and increased its turnover by 8% to 22.87 billion US dollars. Given that the company's turnover in 2015 was below $20 billion, it can be concluded that Eli Lilly has finally managed to balance the effects of the patent collapse, the end of marketing exclusivity, the emergence of therapeutic analogues on the market with an active policy of introducing new molecules to the market. This conclusion is supported by sales figures for specific drugs.

On the one hand, the traditional drugs of the company (Strattera (-60%), Humalog (-5%), Cialis (-12%), Cymbalta (-17%), Erbitux (-6%), Alimta (-3%) Zyprexa (-1%)) significantly lose in sales. On the other hand, new drugs Trulicity (+93%), Cyramza (+16%) are gaining in terms of sales and growth rates. In addition, such new products as Taltz (141%), Jardiance (+95%), Basaglar (+252%) demonstrate rapid growth. These new drugs are helping the company not only offset the decline in sales of traditional drugs, but also get back on track for growth.

At the same time, 18 projects are at the final stage of development. Most of these new developments have the potential to become a blockbuster, and therefore generate a turnover of more than one billion US dollars.

David Ricks, Managing Director of the company, gave the following assessment of what is happening: “We have numerous opportunities based on 8 new molecules brought to the market over the past 4 years and 2 molecules in stock. However, in order to really put this resource on track, we abandoned part of the non-strategic assortment, took steps to streamline our administrative structure and reduce operating costs.”

1. Bristol-Myers Squibb

In 2017, the American company Bristol-Myers Squibb managed to increase turnover by 7%. A group of priority drugs, including blockbusters Opdivo (nivolumab), Eliquis (apixaban), grew in sales by 27% or $3.2 billion. At the same time, sales of so-called established brands fell by 40% or $1.8 billion.

The company is actively conducting regulatory work on a global scale to expand the field of use of its Opdivo/Yervoy products as combination therapy.

The American concern, since 2008, has completed a series of acquisitions of foreign assets in order to strengthen its progressive portfolio in the field of oncology and diabetes.

In September 2017, BMS bought out IFM Therapeutics for US$300 million to strengthen its oncology division.

Despite this positive development, rumors about a possible next mega-deal do not cease in the market. Its object may be Bristol-Myers Squibb, and the actors may be the American companies Pfizer, Gilead Sciences, or the Swiss companies Roche and Novartis. All candidates float in liquidity. Of the $250 billion of free cash in the industry, Pfizer alone has $80 billion. All players have long been looking for a major victim to take over. However, the market value of Bristol-Myers Squibb, according to experts, reaches 100 billion US dollars. The question arises: which of the applicants is able to absorb and assimilate such a tasty morsel?

Mergers and acquisitions

Undoubtedly, the process of consolidation in the industry continues and will remain a major driver of market development.

Let's take a look at M&A transactions in 2017 that exceeded US$1 billion in volume.

Table 4

Top of Mergers and Acquisitions in the Pharmaceutical Industry in 2017

	Buyer				Field of activity	Transaction volume, USD mln
				Switzerland	biotechnology
		Ireland			biotechnology
					oncology
			Juno Therpeutics		oncology
	Thermo Fisher Scientific	Ireland		Holland	medical equipment
			Ariad Pharmaceuticals		dermatology
	Pamplora Capital Management				clinical trial
					nanotechnology
	Bain Capital Given	Great Britain		Germany	generics and over-the-counter
		Germany			generics
		Switzerland	Advanced Pharmaceutical:		contract manufacturing
	BristolMyersSquibb	Great Britain	IFM Therapeutics		biotechnology
		Switzerland	Atrium Innovations		vitamins, enzymes
		Switzerland			oncology
	Great Group Corporation			Germany	diagnostics
					orphan drugs
	Mitsubishi Tanabe				dermatology
	Sawai Pharmaceutical				generics

Our top 10 pharmaceutical companies in Russia will tell you about a dozen well-known Russian drug manufacturers.

10 Veropharm

Veropharm was founded in 1997. The founders of the company were the shareholders of Pharmacy Chain 36.6. Veropharm owns 3 plants: the Voronezh chemical and pharmaceutical plant, the Belgorod enterprise for the manufacture of finished dosage forms and the VEROPHARM plant in Volginsky, Vladimir Region. Basically, this drug manufacturer produces generics, medical patches and oncological drugs.

9 NPO Petrovax Pharm

As a full-cycle biopharmaceutical company, NPO Petrovax Pharm has its own research and development center. High-tech pharmaceutical production makes it possible to annually produce over 160 million doses of immunobiological preparations. With over 20 years of experience, the company manufactures pharmaceuticals, vaccines, cosmetics and veterinary products.

8 OZONE Pharmaceuticals

The history of this pharmaceutical company began in 2001. It was then that a decision was made to establish the OZON Pharmaceuticals company and decided to build a production complex in the city of Zhigulevsk. In 2003, the company launched the first series of drugs "Nitroglycerin" and "Captopril". In 2017, OZON Pharmaceuticals produced 350 million drug packs per year.

7 Valenta Pharm

Valenta Pharm is a Russian innovative pharmaceutical company. It was founded in 1997. The company's activities are focused on the development and production of new original drugs. The therapeutic areas of Valenta Pharm products are quite diverse. The company develops, manufactures and markets prescription and over-the-counter drugs in the areas of immunology, virology, antibacterial therapy, psychoneurology, gastroenterology, urology and other areas.

6 R-Pharm

R-Pharm is a group of companies whose activities are focused on high-tech medicines. R-Pharm researches and develops innovative drugs and technologies, and then brings innovative projects to life. As a result, the group of companies produces and brings to the market modern medicines.

5 Pharmstandard

This company was founded in 2003. Now its medicines are produced at 9 factories located in Russia, Ukraine and Singapore. In total, Pharmstandard annually produces over 1.7 billion packs of medicines. The company's factories produce more than 250 types of medicines. Of this number, over 120 items are included in the "List of vital drugs."

4 Sotex

The company was founded in 1999. Now it produces more than 150 drugs. They belong to different areas: neurology, psychoneurology, oncology, nephrology, rheumatology and other areas. "Sotex" tries to produce the most diverse dosage forms, dosages and packaging of drugs. This allows doctors to select the most convenient treatment option for the patient.

3 Akrikhin

In the 1930s, more than 9 million people in Russia suffered from malaria. The drug Akrikhin helped to cope with the epidemic. The company was named after him. Now Akrikhin produces medicines that belong to various popular therapeutic groups. The company's products include more than 200 different medicines. Every year, Akrikhin introduces at least 10 new medicines to the market.

2 Biocad

Biocad is a biotechnology company. It researches, develops, manufactures and distributes pharmaceutical and biopharmaceutical products. Biocad offices and representative offices are located in the USA, Brazil, China, India, Singapore and other countries of the world. The company produces original medicines, as well as biosimilars in two areas: oncology and autoimmune diseases.

1 STADA

STADA was founded in 1895 in the German city of Dresden. Now this independent international company is one of the leading manufacturers of affordable and high-quality generics, as well as well-known branded products. Among STADA products in Russia there are more than 150 types of medicines.

Mankind, unfortunately, is subject to many diseases, so that it cannot do without medicines. Pharmaceutical companies are engaged in the creation of a variety of drugs to give people health and thus improve their lives.