Top 20 Drug Companies in the US by Revenue

Published on November 9, 2023 at 3:49 am by Afreen Umair in Industries, Lists, News

In this article, we will be taking a look at the top 20 drug companies in the US by revenue. To skip our detailed analysis, you can go directly to see the Top 5 Drug Companies in the US by Revenue.

Following the Covid-19 pandemic, which drastically altered the way of living, the top pharmaceutical or drug companies in the world became the center of attention for people everywhere due to the spike in demand for drugs and vaccines. To be on top of the game in 2020, some of the best pharmaceutical companies invested $200 billion in the research and development (R&D) of new drugs. Furthermore, in light of the sustained trend of spending on Covid-related medications through 2022, some of the leading firms in the sector are projected to have made about $100 billion in revenues last year.

Don’t Miss: Top 20 Most Profitable Pharmaceutical Companies in The World

Nevertheless, with the pandemic now behind us, the pharmaceutical industry is now focusing on cutting edge technologies such as artificial intelligence to transform the drug discovery process and expedite the release of new treatments to cure diseases like cancer, which was the leading cause of death globally in 2020. This will open up new revenue streams for the industry, according to a report by Bayer Aktiengesellschaft, a German multinational pharmaceutical and biotechnology company. The global population of people 65 years of age or older is expected to double to over 1.5 billion by 2050. Meanwhile, it is anticipated that the prevalence of chronic illnesses will rise at a similarly rapid rate, with patients frequently experiencing multiple ailments. Moreover, by 2030, the prevalence of diseases like cancer and cardiovascular diseases is expected to rise by at least 40%, accounting for nearly 80% of all deaths in people 60 years of age or older. Therefore, because of the aforementioned reasons, the report estimates that the global pharmaceutical market is projected to grow at a compound annual growth rate of 3-6% through 2025.

Similarly, another report estimates that the global pharmaceutical market was valued at $1454.7 billion in 2021, and is anticipated to reach $2135.18 billion by 2026 at a compound annual growth rate of 7.7%. The primary factor propelling this growth will be the rising ageing population since it will result in a greater number of patients with various chronic conditions like diabetes, cancer, rheumatoid arthritis, and hypertension. As a result, there will be a greater demand for drugs used to treat these illnesses. Per the report, North America remained the largest region in the pharmaceuticals market in 2021.

You can also check out our article on the 25 Biggest Pharmaceutical Companies in the World for further information on the sector’s outlook.

The US Drug Market

The United States has one of the biggest pharmaceutical markets in the world, accounting for 42% of global sales in 2022 ($630 billion). Moreover, as per a report published by Public Citizen, an advocacy group for consumer rights, the nation’s sales of the 20 top-selling drugs worldwide in 2020 amounted to 101.1 billion, which was almost twice the amount paid by the rest of the world for the same drugs ($57 billion). For some medications, there was a greater revenue disparity. For example, sales of Gilead Sciences, Inc. (NASDAQ:GILD)’s HIV medicine Biktarvy generated $6.1 billion in the country, which is five times higher than the $1.2 billion it made globally. Similarly, AbbVie Inc. (NYSE:ABBV)’s autoimmune disease drug Humira had U.S. sales revenue four times greater than the rest of the world. Furthermore, Trulicity, a type 2 diabetes drug, by Eli Lilly and Company (NYSE:LLY) had U.S. sales revenue of $3.9 billion, more than triple the rest of the world ($1.2 billion).

It is interesting to note that all of the above-mentioned companies are also some of the top drug companies in the US by revenue.

Meanwhile, In America, the cost of prescription drugs is two to three times higher than in other wealthy nations. Besides, Medicare— federal health insurance for people 65 or older, and some people under 65 with certain disabilities or conditions — was prohibited from negotiating prices with the pharmaceutical companies until recently.

President Joe Biden’s signature Inflation Reduction Act (IRA) passed last year, granted federal government the power to negotiate prices for certain high-cost drugs under Medicare. With the goal of saving $25 billion annually on drug costs by 2031, the program has drawn a lot of criticism from the pharmaceutical industry, which has since filed lawsuits against it.

This August, the Biden administration announced the list of the first 10 drugs, used to treat diabetes, heart disease, blood cancer, blood clots and rheumatoid arthritis, whose new prices will go into effect in 2026.

Today we will take a look at the top drug companies in the US by revenue which include Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ), and Merck & Co., Inc. (NYSE:MRK), among others.

Top 20 Drug Companies in the US by Revenue

Our Methodology

To identify the top 20 drug companies in the US by revenue, we compiled a comprehensive list of renowned US-based drug manufacturers. We then narrowed it down to only include companies with a significant market share, research and development efforts, production capacity, and a diversity of product lines to evaluate the commercial success of these companies. This was accomplished by carrying out a thorough analysis of numerous industry papers, financial reports, company websites, journals, and news articles.

The companies have been ranked in ascending order of their annual revenues based on data from their financial reports as of 2022.

Top Drug Companies in the US by Revenue

20. United Therapeutics Corporation (NASDAQ:UTHR)

2022 Revenue: $1.94 billion

First up on our list of the top drug companies in the US by revenue is United Therapeutics Corporation (NASDAQ:UTHR).The company develops pharmaceuticals to treat cardiovascular disorders, particularly pulmonary arterial hypertension, and infectious diseases.

United Therapeutics Corporation (NASDAQ:UTHR) made $1.94 billion in revenue in 2022, up 14.88% from the previous year.

19. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)

2022 Revenue: $2.1 billion

BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), founded in 1997, develops and markets innovative medicines for the treatment of rare genetic diseases and medical conditions such as Duchenne muscular dystrophy (DMD), achondroplasia, phenylketonuria (PKU), late infantile neuronal ceroid lipofuscinosis (CLN2) and hemophilia A.

Hedge funds like the stock. According to Insider Monkey’s second quarter database, 58 hedge funds were bullish on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), compared to 56 funds in the prior quarter.

18. Incyte Corporation (NASDAQ:INCY)

2022 Revenue: $3.4 billion

Another significant US drug company is Incyte Corporation (NASDAQ:INCY) that develops and manufacturers prescription biopharmaceutical medications in multiple therapeutic areas including oncology, inflammation, and autoimmunity.

The company’s best-selling medication, Jakafi, used to treat certain bone marrow disorders (myelofibrosis and polycythemia vera), generated $2.41 billion in sales last year.

17. Elanco Animal Health Incorporated (NYSE:ELAN)

2022 Revenue: $4.4 billion

Elanco Animal Health Incorporated (NYSE:ELAN), founded in 1954, is an American pharmaceutical company which produces medicines and vaccinations for pets and livestock. Its products are available in more than 90 countries worldwide.

The number of hedge funds tracked by Insider Monkey owning stakes in Elanco Animal Health Incorporated (NYSE:ELAN) grew to 31 in Q2 2023, from 28 in the previous quarter. The collective value of these stakes is $738.9 million.

16. Organon & Co. (NYSE:OGN)

2022 Revenue: $6.2 billion

Organon & Co. (NYSE:OGN), among the top drug companies in the US by revenue on our list, is based in Jersey City, New Jersey. The company’s primary therapeutic areas of expertise are anesthesia, hormone replacement therapy, psychiatry, reproductive medicine, and contraception.

The company has around 10,000 employees, and its products are available to people in more than 135 countries.

15. Zoetis Inc. (NYSE:ZTS)

2022 Revenue: $8.1 billion

Zoetis Inc. (NYSE:ZTS), one of the world’s largest producers of medicine and vaccines for pets and animals, has a market capitalization of $71.8 billion as of October 30.

Moreover, the company is well-liked by a number of hedge funds. According to Insider Monkey’s second quarter database, 65 hedge funds were bullish on Zoetis Inc. (NYSE:ZTS), compared to 55 funds in the prior quarter. William Von Mueffling’s Cantillon Capital Management is the leading position holder in the company, with 1.5 million shares worth $251.5 million.

14. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

2022 Revenue: 8.93 billion

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), based in Boston, Massachusetts, is a biopharmaceutical company that specializes in the development and commercialization of therapies for the treatment of a variety of conditions, including cystic fibrosis, neurological disorders, autoimmune diseases, infectious diseases, cancer, and inflammatory bowel disease. As of November 3, the stock has returned 30.39% to investors on a year-to-date basis.

The company beat market expectations on earnings per share and revenue in the second fiscal quarter. Moreover, it also raised its full year CF product revenue guidance to $9.7 to $9.8 billion, compared to a prior forecast of $9.55 billion to $9.7 billion.

13. Biogen Inc. (NASDAQ:BIIB)

2022 Revenue: 10.1 billion

Biogen Inc. (NASDAQ:BIIB), Massachusetts-based biotechnology company, discovers and manufactures treatments for neurological and neurodegenerative diseases. According to Insider Monkey’s second quarter database, a total of 64 hedge funds were bullish on Biogen Inc. (NASDAQ:BIIB). D. E. Shaw’s D E Shaw held the largest position in the company, with 846,444 shares worth $241.2 million.

12. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

2022 Revenue: 12.17 billion

Next on our list of top drug companies in the US by revenue is Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN). Based in Tarrytown, New York, it discovers, develops, and commercializes drugs for the treatment of serious medical conditions. The company sells a number of well-known drugs, including Libtayo, EYLEA, Dupixent, ARCALYST, and ZALTRAP among others.

The company was founded in 1988 and currently employs 11,851 people.

11. Viatris Inc. (NASDAQ:VTRS)

2022 Revenue: 16.26 billion

Viatris Inc. (NASDAQ:VTRS), a Pennsylvania-based pharmaceutical and healthcare company, produces medicines for patients across broad range of major therapeutic areas spanning both noncommunicable and infectious diseases.

It is one of the major drug companies in the US. In addition, Viatris Inc. (NASDAQ:VTRS) beat market expectations on earnings per share and revenue in the second fiscal quarter, and reaffirmed FY23 outlook.

10. Moderna, Inc. (NASDAQ:MRNA)

2022 Revenue: 19.3 billion

Moderna, Inc. (NASDAQ:MRNA), founded in 2010, is one of biggest pharmaceutical companies in the US by revenue. It is located in Cambridge, Massachusetts, and specializes in RNA therapeutics, especially mRNA vaccines.

It is also among the biggest vaccine manufacturers globally and, as previously noted, produced a successful vaccine for battling the Covid-19 pandemic.

9. Amgen Inc. (NASDAQ:AMGN)

2022 Revenue: 26.3 billion

Amgen Inc. (NASDAQ:AMGN) is a Thousand Oaks, California-based biopharmaceutical firm that develops drugs to treat high cholesterol, leukemia, and osteoporosis, among many other medical problems.

On October 24, Amgen Inc. (NASDAQ:AMGN) declared a quarterly dividend of $2.13 per share, which was in line with its previous dividend. On the other hand, the company is also popular among several hedge funds. According to Insider Monkey’s second quarter database, a total of 57 hedge funds were bullish on Amgen Inc. (NASDAQ:AMGN) and disclosed positions worth $1.6 billion in the company.

8. Eli Lilly and Company (NYSE:LLY)

2022 Revenue: $28.5 billion

Founded in 1876, Eli Lilly and Company (NYSE:LLY) is one of the leading pharmaceutical companies in the United States and around the world. Over 7 billion dollars, or more than 25% of the company’s $28.5 billion in revenue, were made last year from its diabetes medication Trulicity.

7. Gilead Sciences, Inc. (NASDAQ:GILD)

2022 Revenue: $27.3 billion

Biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD) is based in Foster City, California and focuses primarily on HIV, AIDS, liver disease, and serious cardiovascular and respiratory conditions. As one of the leading drug companies in the US by revenue, Gilead Sciences, Inc. (NASDAQ:GILD) recorded $27.3 billion in revenue last year.

During this year’s second quarter, 56 hedge funds among the 910 polled by Insider Monkey had bought and invested in Gilead Sciences, Inc. (NASDAQ:GILD)’s shares. Cliff Asness’ AQR Capital Management is the biggest investor among these since it owns 4.2 million shares that are worth $324.7 million.

6. Abbott Laboratories (NYSE:ABT)

2022 Revenue: $43.7 billion

Founded in 1888, Abbott Laboratories (NYSE:ABT) sells medical devices, diagnostics, branded generic drugs and nutritional products.

On October 18, Abbott Laboratories (NYSE:ABT) posted earnings for the third quarter of 2023, reporting a NON-GAAP EPS of $1.14, beating market estimates by $0.04. The revenue over the period was $10.14 billion, down 2.5% compared to the revenue over the same period last year.

Click to continue reading and see Top 5 Drug Companies in the US by Revenue.