The pharmaceutical market is beginning to show signs of stability, with a review of 30 leading companies highlighting combined revenues of $718.7 billion in 2013, down just 0.2% from 2012, according to research and consulting firm GlobalData.
The company’s latest report* states that while overall industry revenues were relatively unchanged, a familiar pattern saw a number of companies recording significantly lower sales in 2013 than in the previous year.
Adam Dion, MS, GlobalData’s Analyst covering Healthcare Industry Dynamics, says that a major contributor to the pharmaceutical market’s decline in 2013 was Pfizer, which saw its top-line sales decrease by 12.5% or $7.4 billion.
Dion comments: “While Pfizer’s fall in sales was largely the result of the separation of its animal health business, it also underlines the impact of a number of patent expirations and the graduated termination of the company’s agreement with Boehringer Ingelheim.
“However, the bad news did not fall on all drug makers. Johnson & Johnson was the growth leader in absolute dollars, increasing by $4.1 billion in 2013, driven by the company’s immunology and oncology portfolios.”
According to GlobalData, Biogen Idec was the peer group revenue growth leader in 2013. Biogen’s sales increased to $5.5 billion in 2013, a 25.7% rise from the $4.2 billion the company reported in 2012.
Dion explains: “Biogen’s revenues soared as a result of Tysabri (natalizumab), the company’s injectable monotherapy for treating relapsing forms of Multiple Sclerosis (MS), and its new oral MS drug Tecfidera (dimethyl fumarate).
“Sales of Tysabri grew 36.4% year-to-year from $1.1 billion in 2012 to $1.5 billion in 2013. The company also benefited from recognizing $876.1 million in new revenues from sales of Tecfidera, despite the drug only having been approved in March 2013.”
Looking forward to 2014, the analyst adds that Gilead is well on track to make a significant impact, with its blockbuster hepatitis C drug, Sovaldi (sofosbuvir). Approved by the US Food and Drug Administration in December 2013, Sovaldi posted unprecedented sales of $5.8 billion in the first half of this year.
