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.
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Filed Under: RD
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