The financial information company S&P Global $SPGI, most known for the S&P 500 index, rated the world’s top pharmaceutical companies in a new report this month. Its ratings were based on two factors: business strength — which includes competitive advantage, prospects for sustaining revenue growth, and product diversification — as well as financial risk.
These are 10 of the strongest pharma companies, according to S&P.
1 / 10
Johnson & Johnson $JNJ was one of two companies determined by S&P to have an excellent business risk profile and a minimal financial risk profile. S&P said that Johnson & Johnson’s main strength was its scale. In 2023, the pharma giant generated $85 billion in revenue — the most of any company on this list.
2 / 10
Roche was the other pharma company to have an excellent business risk profile and a minimal financial risk profile. Its primary strength was its number of blockbuster drugs — drugs that generated over $1 billion in sales annually. In 2023, the company had 15 blockbuster drugs.
3 / 10
Although Sanofi was determined to have an excellent business risk profile, it has a modest financial risk profile, according to S&P. In 2023, the French pharma giant generated $46 billion in sales and its net income was $11 billion.
4 / 10
S&P said that Novartis has an excellent business risk profile and a modest financial risk profile. Among its strengths was the diversity of its products at targeting different diseases. The company’s three top-selling drugs in 2023 treated heart failure, psoriasis, and anemia.
5 / 10
AstraZeneca $AZN joins Sanofi and Novartis in having excellent business risk profile and a modest financial risk profile. S&P said one of its weaknesses was its history of revenue declines. In the last 10 years, AstraZeneca had four years where its sales fell year over year.
6 / 10
Novo Nordisk, the maker of Ozempic, is the only company on this list to have a strong business risk profile and a minimal financial risk profile. Its strengths are a lack of historical revenue declines and innovation driven revenue growth. Its main weakness is a lack of product diversity. S&P wrote that Novo Nordisk’s revenue concentration from its top product “is materially higher than the average of peers,” at above 40% of its total revenue.
7 / 10
Eli Lilly $LLY, the company behind Mounjaro, rated slightly below its rival Novo Nordisk with a strong business risk profile and a modest financial risk profile. It had similar strengths and weaknesses as Novo Nordisk.
“Both Eli Lilly and Novo Nordisk have higher focus in products for a single disease (diabetes) than similar peers,” wrote S&P in its report. “We expect this will decline, helped by strong revenue growth in GLP-1 based products approved for obesity.”
8 / 10
Merck $MRK, like Eli Lilly $LLY, was rated as having a strong business risk profile and a modest financial risk profile. Its main strength was that it generated over half of its revenue outside of the United States.
9 / 10
Despite being rated as having an excellent business risk profile, Pfizer $PFE was also rated has having an intermediate financial risk profile. S&P noted that a decline in sales in COVID-19 related products in recent years has significantly reduced revenues at Pfizer.
10 / 10
GSK had the same ratings as Pfizer $PFE — an excellent business risk profile and an intermediate financial risk profile. Its weakness was it scale. In 2023, it generated $38 billion in revenue, among the lowest from companies on this list.
