 |
|
Analysis of Corporate Profits, 1999
Source: Patented Medicine Prices Review Board of Canada, 1999 Annual Report. Percentages reflect relative price levels of drugs sold by drug manufacturers to wholesalers, hospitals and pharmacies.
Source: European Federation of Pharmaceutical Industries and Associations, The Pharmaceutical Industry in Figures, 2000. A drug is defined as a new chemical or biological entity if it has never before been marketed regardless of dosage form. This measure more accurately reflects the number of new drugs approved in a country or region of the world.
Source: Fortune Magazine, April 2000, Fortune 500 (www.fortune.com); 1999 Company Annual Reports.
Source: Fortune Magazine, April 2000, Fortune 500 (www.fortune.com).
Note: Due to the different number of companies in the Fortune 500 from selected industries, industry totals include profits from the nine largest (or most profitable) companies in each industry.
Source: Fortune Magazine, April 2000, Fortune 500 (www.fortune.com).
Source: Fortune Magazine, April 2000, Fortune 500 (www.fortune.com).
|
Profitability of Fortune 500 Drug Companies 1999 and 1998
|
|
Rank
|
Company
|
1999 Revenues (millions $)
|
% Change from '98
|
1999 Profits (millions $)
|
% Change from '98
|
Profits as % of Revenue
|
Profits as % of Assets
|
Profits as % of Stockholders' Equity
|
|
1
|
Merck
|
$32,714
|
22%
|
$5,891
|
12%
|
18%
|
17%
|
44%
|
|
2
|
Johnson & Johnson
|
$27,471
|
16%
|
$4,167
|
36%
|
15%
|
14%
|
26%
|
|
3
|
Bristol-Myers Squibb
|
$20,222
|
11%
|
$4,167
|
33%
|
21%
|
24%
|
48%
|
|
4
|
Pfizer
|
$16,204
|
10%
|
$3,179
|
-5%
|
20%
|
15%
|
36%
|
|
5
|
American Home Products*
|
$13,550
|
1%
|
-$1,227
|
-150%
|
-9%
|
-5%
|
-20%
|
|
6
|
Abbott Laboratories
|
$13,178
|
6%
|
$2,446
|
5%
|
19%
|
17%
|
33%
|
|
7
|
Warner-Lambert
|
$12,929
|
27%
|
$1,733
|
38%
|
13%
|
15%
|
34%
|
|
8
|
Eli Lilly & Co
|
$10,003
|
0%
|
$2,721
|
30%
|
27%
|
21%
|
54%
|
|
9
|
Schering-Plough
|
$9,176
|
14%
|
$2,110
|
20%
|
23%
|
23%
|
41%
|
|
10
|
Pharmacia & Upjohn
|
$7,253
|
7%
|
$803
|
16%
|
11%
|
8%
|
14%
|
|
11
|
Amgen
|
$3,340
|
23%
|
$1,096
|
27%
|
33%
|
27%
|
36%
|
|
12
|
Allergan
|
$1,406
|
11%
|
$188
|
NA
|
13%
|
14%
|
30%
|
|
Total
|
$167,446
|
|
$27,274
|
|
|
|
|
|
Median
|
$13,054
|
11%
|
$2,278
|
20%
|
18%
|
16%
|
35%
|
|
Source: Fortune Magazine, April 2000, Fortune 500 (www.fortune.com).
|
|
|
|
* American Home Products recorded a litigation charge of $4.8 billion in the third quarter of 1999 to provide for the expected paymentsto a nationwide, class action settlement brought against AHP regarding the use of the antiobesity products Redux and Pondimin.
|
Source: Public Citizen update of Stephen W. Schondelmeyer calculation, Competition and Pricing Issues in the Pharmaceutical Market, PRIME Institute, University of Minnesota based on data found in Fortune Magazine, 1958 to 1999; Fortune Magazine, April 2000, Fortune 500 (www.fortune.com).
Source: Public Citizen update of Stephen W. Schondelmeyer calculation, Competition and Pricing Issues in the Pharmaceutical Market, PRIME Institute, University of Minnesota based on data found in Fortune Magazine, 1958 to 1999; Fortune Magazine, April 2000, Fortune 500 (www.fortune.com).
Source: Fortune Magazine, April 2000, Fortune 500 (www.fortune.com).
Source: Fortune Magazine, April 2000, Fortune 500 (www.fortune.com); 1999 Company Annual Reports.
|
Fortune 500 Drug Companies - Comparison of 1999 Revenue
Dedicated to Profits, R&D, and Marketing/Administration
|
|
Rank
|
Company
|
Revenues (millions $)
|
Profits (millions $)
|
Profits as % of Revenue
|
R&D
(millions $)
|
R&D as
% of Revenue
|
Marketing & Admin.
(millions $)
|
Marketing/Admin. as % of Revenue
|
|
1
|
Merck
|
$32,714
|
$5,891
|
18.0%
|
$2,068
|
6.3%
|
$5,200
|
15.9%
|
|
2
|
Johnson & Johnson
|
$27,471
|
$4,167
|
15.2%
|
$2,600
|
9.5%
|
$10,503
|
38.2%
|
|
3
|
Bristol-Myers Squibb
|
$20,222
|
$4,167
|
20.6%
|
$1,843
|
9.1%
|
$4,578
|
22.6%
|
|
4
|
Pfizer
|
$16,204
|
$3,179
|
19.6%
|
$2,776
|
17.1%
|
$6,351
|
39.2%
|
|
5
|
American Home Products*
|
$13,550
|
-$1,227
|
-9.1%
|
$1,740
|
12.8%
|
$5,040
|
37.2%
|
|
6
|
Abbott Laboratories
|
$13,178
|
$2,446
|
18.6%
|
$1,194
|
9.1%
|
$2,857
|
21.7%
|
|
7
|
Warner-Lambert
|
$12,929
|
$1,733
|
13.4%
|
$1,259
|
9.7%
|
$5,959
|
46.1%
|
|
8
|
Eli Lilly & Co
|
$10,003
|
$2,721
|
27.2%
|
$1,784
|
17.8%
|
$2,758
|
27.6%
|
|
9
|
Schering-Plough
|
$9,176
|
$2,110
|
23.0%
|
$1,191
|
13.0%
|
$3,434
|
37.4%
|
|
10
|
Pharmacia & Upjohn
|
$7,253
|
$803
|
11.1%
|
$1,434
|
19.8%
|
$2,800
|
38.6%
|
|
11
|
Amgen
|
$3,340
|
$1,096
|
32.8%
|
$823
|
24.6%
|
$654
|
19.6%
|
|
12
|
Allergan
|
$1,406
|
$188
|
13.0%
|
$168
|
11.9%
|
$588
|
41.8%
|
| Total |
|
$167,446
|
$27,274
|
|
$18,880
|
|
$50,722
|
|
|
Median
|
$13,054
|
$2,278
|
18.3%
|
$1,587
|
12.4%
|
$4,006
|
37.3%
|
Source: Fortune Magazine, April 2000, Fortune 500 (www.fortune.com); 1999 Company Annual Reports.
* American Home Products recorded a litigation charge of $4.8 billion in the third quarter of 1999 to provide for the expected payments in a nationwide, class action settlement brought against AHP regarding the use of the antiobesity products Redux and Pondimin.
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