If 2020 underscored the importance of the pharma industry’s social importance, 2021 demonstrated the industry’s ability to translate R&D into profitable commercialized products.
But while strong demand for COVID-19 therapies in 2021 provided unprecedented revenue levels for a handful of Big Pharma companies, it didn’t result in substantial changes in R&D spending. (Look out for more insights from our annual Pharma 50 report.)
In 2019, pharmaceutical companies spent an average of roughly 25% of their revenue on R&D, according to federal government statistics. In 2021, top R&D spenders invested closer to one-fifth of their revenue in R&D.
FDA approvals of new drugs in 2021 also held steady. The agency approved 50 novel drugs in 2021, which was roughly in line with the 53 drugs that won approval a year prior.
| Companies | R&D Spend | R&D as a percentage of revenue |
| 1. Pfizer | $13,829,000,000 | 17.0% |
| 2. Roche Pharmaceuticals (division of Roche Group) | $13,342,082,240 | 27.1% |
| 3. Merck & Co. | $12,245,000,000 | 25.1% |
| 4. Janssen (Johnson & Johnson’s pharmaceutical segment) | $11,882,000,000 | 22.8% |
| 5. Bristol Myers Squibb | $11,354,000,000 | 24.5% |
| 6. AstraZeneca | $9,736,000,000 | 26.0% |
| 7. Novartis | $9,540,000,000 | 18.5% |
| 8. AbbVie | $7,084,000,000 | 12.6% |
| 9. Eli Lilly | $7,025,900,000 | 24.8% |
| 10. Sanofi | $6,716,560,000 | 15.1% |
| 11. GlaxoSmithKline (GSK) (minus consumer segment) | $6,571,776,000 | 14.0% |
| 12. Gilead Sciences | $5,363,000,000 | 19.6% |
| 13. Amgen | $4,819,000,000 | 18.5% |
| 14. Takeda Pharmaceutical | $4,149,672,251 | 14.3% |
| 15. Bayer (Pharmaceuticals Division) | $3,704,020,000 | 17.1% |
| 16. Vertex Pharmaceuticals | $3,051,000,000 | 40.3% |
| 17. Regeneron Pharmaceuticals | $2,908,100,000 | 18.1% |
| 18. Novo Nordisk | $2,829,936,306 | 12.6% |
| 19. Biogen | $2,501,200,000 | 22.8% |
| 20. Merck KGaA, Darmstadt, Germany/Merck Group/EMD Group | $2,434,340,000 | 12.8% |
|
Top R&D spenders ranked by overall spending.
|
Filed Under: RD
Tell Us What You Think!
You must be logged in to post a comment.