The 10 Highest-Earning Pharma Companies of 2024
The pharmaceutical business, essential to healthcare worldwide, has grown remarkably in the past two decades. This expansion is driven by advances in medical research and technology, rising disposable incomes in emerging regions, and an ageing global population that demands better healthcare solutions. Leading the charge in this transformation are pharmaceutical companies, which use extensive research and development to create ground-breaking treatments for complex diseases.
Pharmaceutical companies make significant investments in R&D, which helps the industry grow. These investments facilitate clinical studies, the marketing of new medicinal compounds, and the identification of new therapeutic targets. Such initiatives expand the industry's market reach and produce substantial revenue. Globally, as disposable incomes grow, rising markets present new prospects, but ageing populations require more medications.
Top Pharmaceutical Companies
The pharmaceutical industry showed great profitability and innovation in 2024, with a number of companies standing out for their earnings, market share, and therapeutic advances. Johnson & Johnson led the industry with profits of Rs. 18.39 billion and a strong revenue of $87.69 billion. Its R&D expenses reached $16.414 billion in the 12 months ending September 30, 2024, marking a 16.49% year-over-year increase. Over 55% of J&J's total sales came from its pharmaceutical division, which brought in $45.57 billion in 2023. Pharmaceuticals such as Tremfya (guselkumab) for plaque psoriasis, Erleada (apalutamide) for prostate cancer, Spravato (esketamine) for depression, and Darzalex (daratumumab) for multiple myeloma were the main drivers of this 8.4% increase.
Novo Nordisk came in second with earnings of Rs. 16.85 billion. Its R&D spending increased to $6.286 billion, a 61.25% year-over-year increase. Ozempic, a glucagon-like peptide 1, was Novo Nordisk's top seller and brought in over 96 billion kroner in 2023. Nearly 60% of Novo Nordisk's total sales came from the North American market. Roche spent $15.73 billion on research and development in 2023 while reporting $71.88 billion in revenue and Rs. 16.74 billion in profits in 2024. Notable contributors included Vabysmo, a key growth driver with $3 billion in sales; Ocrevus, which achieved $7.6 billion in sales (16% growth); and Hemlibra, generating $4.9 billion (19% growth).
Merck's revenue and earnings were $62.47 billion and Rs. 16.49 billion, respectively, with $30.5 billion going on research and development. With $25 billion in revenue from Keytruda, the company's flagship medication, it secured its place as the largest drug in the world by sales. Novartis made Rs. 12.73 billion in 2024 and invested $9.747 billion in research and development. In 2023, the business made $6 billion worldwide with Entresto, its best-selling medication.
CVS Health led the industry by revenue, achieving $363.24 billion. Its pharmacy services segment was the most profitable, contributing $187 billion in 2023. Other notable companies include Pfizer, AbbVie, and Sanofi, with revenues of $55.64 billion, $55 billion, and $53.50 billion, respectively. AbbVie's Humira remained its top revenue generator with $14.4 billion, while Sanofi’s Lantus, an insulin glargine, plays a major role in diabetes management.
Eli Lilly emerged as the leader in market capitalization at $692.74 billion, with Trulicity and Mounjaro generating $7.1 billion and $5.1 billion in revenue, respectively. Novo Nordisk followed with a market cap of $443.16 billion, while J&J, AbbVie, and Merck held $368.36 billion, $294.35 billion, and $244.21 billion, respectively. Roche and Novartis followed with market caps of $228.53 billion and $206.46 billion. AstraZeneca is valued at $197.81 billion, with Amgen at $150.48 billion and Pfizer rounding out the top ten at $142.24 billion.
The United States continues to be the primary source of income for major pharmaceutical players. Europe is another major market, contributing $15 billion to Novartis and $20.4 billion to J&J's pharmaceutical sales. Asia Pacific, including China and Japan, accounted for $13.2 billion of Merck's sales revenue in 2023. Overall, these companies rely heavily on the US and Europe for a large percentage of their sales.
The pharmaceutical sector is poised to grow further as it manages challenges in global healthcare. Its success relies on ongoing investment in research and development, with companies adapting to new demands and opportunities.