Top 50 Pharma Companies 2022: Notes & Methodology
View the full set of company rankings in the Med Ad News October 2022 issue.
General notes: For this 36th annual special report, Med Ad News editors rank the world’s top 50 companies that generate revenue from prescription medicines and healthcare products. Companies that research, develop, manufacture, and sell healthcare products with a strong base in pharmaceuticals are eligible to be included in this special report. As defined by Med Ad News, healthcare products include human prescription and over-the-counter pharmaceuticals, generics, imaging agents, medical devices, medical equipment, medical/surgical supplies, diagnostics, and animal healthcare products.
To be considered for the top 50 company list, companies must be independent and publicly traded (or make their full financial statements public) and must have the capability to develop, manufacture, and market human prescription therapeutic drugs. Companies are ranked according to the name of the parent company. All companies are ranked in the main table by their worldwide 2021 prescription medicine revenue. This number was provided by company documents, unless otherwise noted. All other data in the tables represent the group’s consolidated financial figures, unless otherwise stated.
Three companies appear in this year’s Med Ad News top 50 listing that were not ranked in the magazine’s October 2021 annual report: Moderna Inc. at No. 17; Organon & Co. at No. 32, and Jazz Pharmaceuticals plc at No. 45.
Thirty-nine of the top 50 companies reported financials with a year-end date of Dec. 31. These 10 companies reported financials with a March 31, 2022, fiscal year-end: Astellas Pharma, Aurobindo Pharma, Cipla, Daiichi Sankyo, Eisai, Mitsubishi Tanabe Pharma, Ono Pharmaceutical, Sumitomo Pharma, Sun Pharmaceutical Industries, and Takeda Pharmaceutical. CSL reported financials with a June 30, 2022, fiscal year-end.
Revenue: In tables that rank by revenue, each company is positioned according to worldwide revenue – either by prescription, healthcare, or consolidated group, depending on the chart. The revenue figures include net sales of healthcare products, and potentially interest, dividends, and other income when provided and applicable. Sales from discontinued operations have been included when applicable.
Earnings: This number represents the net income figure that appears in the income statement, after taxes and after nonrecurring and extraordinary charges. The net income figure is based on the consolidated sales of the group. Figures appearing in parentheses or with a minus sign indicate a loss.
Earnings per share: The number for earnings per common share is taken directly from company financial statements. This figure, based on consolidated results of the group, is adjusted for stock splits and stock dividends. Med Ad News editors used the diluted earnings per share figure when provided. Figures appearing in parentheses or with a minus sign indicate a loss.
Research and development: In the chart that ranks each top 50 companies according to the research and development expenditure of prescription and/or healthcare products, the most of the numbers were provided by the companies. Also provided is each company’s total R&D expenditure (consolidated) for all businesses. For some of the international companies, the prescription/healthcare R&D was not provided and thus the consolidated figure was used in their place; in these instances, the difference between the prescription/healthcare and
consolidated R&D totals were negligible.
Total assets: This number represents the company’s year-end total assets as reported in the balance sheet statement, and is for the group.
Shareholders’ equity (Deficit): This number represents total shareholders’ equity (deficit) at year-end as reported in the company’s balance sheet statement, and is for the group.
Employees: This number represents the total number of employees for the year.
Market capitalization: The information that appears in this chart shows the market capitalization of companies. The information came from Google Finance, Yahoo Finance, and other sources and reflects company market capitalization as recently as Sept. 27, 2022.
Exchange rates: For non-U.S. companies reporting in foreign currency, Med Ad News editors used exchange rates to convert income statement and balance sheet figures to U.S. dollars. The conversions have been made for the purpose of convenience and comparison only. Med Ad News editors used average exchange rates to calculate income statement figures and balance statement figures. The exchange rates are based on data made available by the U.S. Federal Reserve Board (federalreserve.gov) and certain company documents. Unless otherwise indicated, the editors used the average 2021 exchange rates. So that the percent change in financial statement and balance sheet information reflects the actual increase or decrease in the company’s home-country currency, the editors used a constant rate of exchange for 2021 and 2020. This reflects the increase or decrease actually reported by the non-U.S. company. The same exchange rate was used for the income statement and the balance sheet figures.
For the companies that report in euros, Med Ad News translated U.S. dollar amounts from euros at the rate of €1.00 to $1.183, the average rate of exchange in 2021. The top 50 companies that report in euros were: Bayer, Boehringer Ingelheim, Grifols, Ipsen, Merck KGaA, Sanofi, Stada, and UCB.
For the companies that report in yen, Med Ad News translated U.S. dollar amounts from yen at the March 2022 rate of ¥118.5774 to $1.00, except for Chugai, Kyowa Kirin and Otsuka, whose numbers were translated at the 2021 average rate of ¥109.8429 to $1.00. The top 50 companies that reported in yen were: Astellas, Chugai, Daiichi Sankyo, Eisai, Kyowa Kirin, Mitsubishi Tanabe, Ono, Otsuka, Sumitomo, and Takeda.
For the company that reports in pounds sterling, Med Ad News translated U.S. dollar amounts from pounds sterling at the rate of £1.00 to $1.3764, the average rate of exchange in 2021. The top 50 company that reported in pounds sterling was GlaxoSmithKline.
For the company that reports in Swiss francs, Med Ad News translated U.S. dollar amounts from Swiss francs at the rate of SFr0.9144 to $1.00, the average rate of exchange in 2021. The top 50 company that reported in Swiss francs was Roche.
For the company that reported in Danish kroner, Med Ad News translated U.S. dollar amounts from the kroner at the rate of DKr6.2897 to $1.00, the average rate of exchange in 2021. The top 50 company that reported in Danish kroner was Novo Nordisk.
For the companies that report in Indian rupees, Med Ad News translated U.S. dollar amounts from the rupee at the March 2022 rate of Rs76.1896 to $1.00. The top 50 companies that reported in Indian rupees were Aurobindo Pharma, Cipla, and Sun Pharmaceutical.
For the companies that report in Chinese renminbi, Med Ad News translated U.S. dollar amounts from the renminbi at the rate of RMB6.4508 to $1.00, the average rate of exchange in 2021. The top 50 companies that reported in Chinese renminbi were CSPC Pharmaceutical Group, Shanghai Pharmaceuticals Holding, and Sino Biopharmaceutical.
Selection criteria for Company of the Year
The criteria for selecting the Company of the Year are based on a model developed by the editors of Med Ad News. Each one of the top 50 companies is evaluated on a number of categories, including these:
- Recent and projected future financial strength
- Number of blockbuster drugs on the market
- Number of potential blockbuster drugs in the pipeline
- Recent number of new drug launches
- Number of new drugs to be launched in the near future
- Quality of new products
- Quality of management and vision
- Marketing ability and activity
- Strength of the product pipeline
- First-half current-year performance
- Formative events and actions
- Business strategy
- Corporate governance and ethics
- Wall Street standing
- Responsiveness to market forces
- Shareholder value
- Future direction and potential
Past companies of the year
2020: Bristol Myers Squibb
2018: Johnson & Johnson
2015: Gilead Sciences
2013: Novo Nordisk
2012: Teva Pharmaceutical Industries
2005: Johnson & Johnson
1999: Eli Lilly
1996: Abbott Laboratories
1994: SmithKline Beecham