In this article, we list the 5 biggest pharmaceutical companies in the world. If you want to read about our detailed analysis of these pharmaceutical companies, go directly to the 25 Biggest Pharmaceutical Companies in the World.
5. Novo Nordisk A/S (NYSE: NVO)
Market Capitalization as of September 11, 2021: $228.5 billion
Market Capitalization as of September 02, 2022: $236.4 billion
Novo Nordisk A/S (CPH: NVO) has been providing impeccable solutions to serious chronic diseases such as obesity, diabetes, and rare blood and endocrine diseases for over 100 years. The innovative medicines and digital health tools developed by Novo Nordisk A/S (CPH: NVO) such as insulin pens that benefit millions of people all around the world. Not only this, Novo Nordisk A/S (CPH: NVO) attempts to provide easy access to these medicines and tools to everyone in need around the globe. Novo Nordisk A/S (CPH: NVO) is ranked 6th on the list of 25 biggest pharmaceutical companies in the world.
In the Q2 2021 investor letter of LRT Capital Management, the fund mentioned Novo Nordisk A/S (NYSE: NVO). Here is what the fund said:
“Novo Nordisk is the global leader in insulin, which is, sadly, a growing business as more and more people around the world suffer from diabetes. Millions of people need daily injections of insulin to stay alive50, a number that, unfortunately, is likely to continue to grow by millions more in the coming decade. It may seem at first glance that insulin should be a commoditized business, after all, it was discovered and synthesized over a hundred years ago, but nothing could be further from the truth. There are many types of insulin and Novo Nordisk has spent billions on R&D over the years to develop new products. On February 11th, the company reported favorable results from a phase-3 trial of Semaglutide, a drug that is currently used for Type 2 diabetes treatment. The study evaluated the use of Semaglutide for weight loss treatment in non-diabetic patients and found a significant impact on weight loss for patients receiving Semaglutide vs. the placebo control group. If Semaglutide is approved for weight loss treatment, we expect it will be meaningfully accretive to the company’s bottom line.
The company’s proprietary product line supports returns on invested capital of over 40%, and while sales growth is relatively slow (+6% annualized CAGR over the past decade), the company’s shares trade at a reasonable valuation of only 22x forward earnings. For a company with an extremely predictable business, high returns on capital, and an easily forecastable future, we believe this to be highly attractive.
Shares are +34.43% year-to-date and +40.92% over the past twelve months.”
4. Eli Lilly and Company (NYSE: LLY)
Market Capitalization as of September 11, 2021: $229.1 billion
Market Capitalization as of September 02, 2022: $286.3 billion
The core values that have been established by Eli Lilly and Company (NYSE: LLY) make a huge difference in making this company rule over all around the world in terms of medicines and health care products. The products of Eli Lilly and Company (NYSE: LLY) are sold in over 124 countries around the globe. The company is most popular for being the largest producer of psychiatric medications such as Zyprexa, Prozac, and Dolophine. People at Eli Lilly and Company (NYSE: LLY) are continuously struggling to discover and make new ways through which they can promote a better living environment worldwide.
In the Q2 2021 investor letter of DEVON Equity Management, the fund mentioned Eli Lilly and Company (NYSE: LLY). Here is what the fund said:
“In one of the most controversial moves in its long history, the US FDA approved Biogen’s (BIIB US) Alzheimer’s drug Aducanamab for commercial usage. The background is complicated and beyond the scope of this letter, but the controversy centres on both the interpretation of clinical trial data and the efficacy of the drug itself. The ultimate surprise came in June, when the FDA approved Aducanamab for commercial use with generous labelling (until at least 2030) in direct contradiction to the recommendation of the FDA’s own Advisory Committee of experts (AdCom), who in December 2020 voted against approval by 10 to 0 (with one abstention).
The decision caused a storm of criticism from clinicians and triggered a wave of resignations from members of the AdCom who had issued the original judgement (though ‘advisory’, the views of these expert panels typically carry enormous weight with the FDA)…” (Click here to see the full text)
3. Pfizer Inc. (NYSE: PFE)
Market Capitalization as of September 11, 2021: $255.6 billion
Market Capitalization as of September 02, 2022: $256.5 billion
Pfizer Inc. (NYSE: PFE) is a Brooklyn-based pharmaceutical company that has been providing innovative solutions to the most challenging health problems since 1849. Pfizer Inc. (NYSE: PFE) has recently become even more prominent globally due to its vaccine against the COVID-19 coronavirus, distributed in over 19 countries. Pfizer Inc. (NYSE: PFE) manufactures medicines as well as vaccines for medical issues in various fields such as immunology, oncology, cardiology, endocrinology, and neurology.
2. Roche Holding AG (OTC: RHHBY)
Market Capitalization as of September 11, 2021: $328.6 billion
Market Capitalization as of September 02, 2022: $260.3 billion
Roche Holding AG (SWX: ROG.SW) has been helping millions of people globally since 1896 by creating both diagnostic tests and medicines. Roche Holding AG (SWX: ROG.SW) is famous for being the leading producer of cancer treatments worldwide. In addition to oncology, the medicines produced by Roche Holding AG (SWX: ROG.SW) range across infectious diseases, neuroscience, immunology, and ophthalmology. Roche Holding AG (SWX: ROG.SW) always brings targeted treatments to its patients while its diagnostics division plays a major role in the company’s research projects.
In its Q4 2020 investor letter, Brown Capital Management highlighted a few stocks, and Roche Holdings AG (NYSE:RHHBY) is one of them. Here is what the fund said:
“We eliminated Roche Holdings, a Switzerland-based company that is the largest biotech in the world. While the company is on the cutting edge of drug discovery, particularly in cancer-related treatments, it is facing an uncertain growth path and pressure from generics in its mature drugs. Roche has been a positive contributor to the portfolio since its introduction more than a decade ago, and we now take the opportunity to recycle the capital into higher-growth companies.”
1. Johnson & Johnson (NYSE: JNJ)
Market Capitalization as of September 11, 2021: $439.5 billion
Market Capitalization as of September 02, 2022: $427.9 billion
Johnson & Johnson (NYSE: JNJ) has been serving the nation for more than 130 years and ranks second in the 25 biggest pharmaceutical companies in the world. Johnson & Johnson (NYSE: JNJ) works for the wellness of people of all ages, from infancy to old age. People at Johnson & Johnson (NYSE: JNJ) are wholly committed to developing a healthy environment within reach of every single individual regardless of color, creed, or race.
In the Q2 2021 investor letter of Distillate Capital, the fund mentioned Johnson & Johnson (NYSE: JNJ). Here is what the fund said:
“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”
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