Top 20 R&D Spending Biopharma Companies of 2024

Shots:

Research & Development (R&D) plays an instrumental role in paving the foundation for innovative therapeutic options in the healthcare sector
The global Top 20 pharmaceutical industry spent $148B in 2022 and grew to $180B in 2023, with Merck & Co., had the highest R&D expenditure of $30.53B, followed by Roche ($15.73) and Johnson & Johnson (15.08)
PharmaShots brings a concise report on the Top 20 R&D Spending Biopharma Companies along with their focus area

Rank	Companies	R&D Expenditure (2022 $B)	R&D Expenditure (2023 $B)	Percentage Change (%)
1	Merck & Co.	13.54	30.53	125.35
2	Roche	14.33	15.73	9.72
3	Johnson & Johnson	14.13	15.08	6.72
4	Novartis	9.17	11.37	23.97
5	AstraZeneca	9.76	10.93	12.01
6	Pfizer	11.42	10.67	6.55
7	Eli Lilly	7.19	9.31	29.51
8	Bristol-Myers Squibb (BMS)	9.5	9.29	2.2
9	GSK	6.64	7.92	19.3
10	AbbVie	6.51	7.67	17.89
11	Sanofi	7.19	7.42	3.19
12	Boehringer Ingelheim	5.41	6.36	17.5
13	Bayer	7.05	5.92	15.93
14	Gilead Sciences	4.97	5.71	14.88
15	Takeda	4.16	4.92	18.32
16	Moderna	3.29	4.84	47.04
17	Novo Nordisk	3.46	4.8	38.8
18	Amgen	4.43	4.78	7.89
19	Regeneron	3.59	4.43	23.56
20	Vertex Pharmaceuticals	2.54	3.16	24.5

Note: Columns 1 and 2 represent ranks and companies, while Columns 3, 4, and 5 showcase the total immunology revenue of 2022, the total revenue of 2023, and the percentage change.

20. Vertex Pharmaceuticals

R&D Expenditure: $3.16B

Market Cap: $125.79B

Founded Year: 1989

Total Employees: 5400

Headquarters: Massachusetts, United States

Stock Exchange: NASDAQ

Vertex is a global biotech company with approved medications to treat sickle cell disease, transfusion-dependent beta-thalassemia, and cystic fibrosis. Vertex's pipeline comprises clinical-stage studies in CF, sickle cell disease, beta thalassemia, acute and neuropathic pain, APOL1-mediated renal disease, type 1 diabetes, myotonic dystrophy type 1, and alpha-1 antitrypsin deficiency.
In 2023, the company's R&D expenditure increased by 24.5% compared to 2022. The funds allocated to the R&D were aimed at strengthening the company's pipeline candidates in mid-to-late-stage clinical development
In Apr’23, Vertex entered into a definitive agreement to acquire Alpine Immune Sciences

19. Regeneron Pharmaceuticals

R&D Expenditure: $4.43B

Market Cap: $131.42B

Founded Year: 1988

Total Employees: 13,450

Headquarters: New York, United States

Stock Exchange: NASDAQ

Regeneron discovers, develops, manufactures, and commercializes therapies to treat life-threatening diseases. The company's key therapy areas are Ophthalmology, allergic and inflammatory diseases, oncology, cardiovascular and metabolic diseases, pain, hematology, infectious diseases, and rare diseases.
In 2023, Regeneron's R&D expenditure increased by 23.56% compared to 2022. The rise in R&D expense was aimed at strengthening the company's pipeline
In Oct’23, Regeneron and Intellia expanded their research collaboration to develop CRISPR-based gene editing therapies for neurological and muscular diseases

18. Amgen

R&D Expenditure: $4.78B

Market Cap: $176.54B

Founded Year: 1980

Total Employees: 26,700

Headquarters: California, United States

Stock Exchange: NASDAQ

Amgen is a global biotech company that discovers, develops, manufactures, and delivers innovative therapies. The company focuses on cardiovascular diseases, oncology, bone health, neuroscience, nephrology, and inflammation
In 2023, the company spent 7.89% more on R&D than in 2022 to strengthen the late-stage clinical programs and support for marketed products, including Horizon acquisition programs
In Oct’23, Amgen completed the acquisition of Horizon Therapeutics

17. Novo Nordisk

R&D Expenditure: $4.8B

Market Cap: $462.73B

Founded Year: 1923

Total Employees: 64,319

Headquarters: Denmark

Stock Exchange: CPH

A Danish multinational biopharma company, Novo Nordisk discovers, develops, manufactures, and commercializes medicinal products across multiple indications
Novo Nordisk pipeline candidates focus on diabetes, cardiovascular, neurology, and chronic kidney diseases, among others. In 2023, the company spent 38.8% more on R&D compared to 2022 to bolster late-stage study and early research activities, and the Forma Therapeutics and Inversago Pharma acquisitions raised R&D spending.
In May’23, Novo Nordisk and Life Edit Therapeutics formed a multi-target collaboration to discover and develop gene editing therapies for rare and cardiometabolic diseases

16. Moderna

R&D Expenditure: $4.84B

Market Cap: $33.42B

Founded Year: 2010

Total Employees: 5,600

Headquarters: Massachusetts, United States

Stock Exchange: NASDAQ

Moderna is an American multination biopharma company that develops messenger RNA (mRNA) medicines using its mRNA platform. Moderna focuses on infectious diseases, immuno-oncology, rare diseases, and autoimmune diseases
In 2023, the company’s R&D expenditure increased by 47.04% compared to 2022. The rise in R&D spending was aimed at strengthening Infectious disease vaccines and technical development and unallocated manufacturing
In Sep’23, Moderna and Immatics announced a strategic multi-platform collaboration to develop innovative oncology therapies

15. Takeda

R&D Expenditure: $4.92B

Market Cap: $47.63B

Founded Year: 1781

Total Employees: 49,281

Headquarters: Tokyo, Japan

Stock Exchange: TYO

Takeda is a multinational pharmaceutical company with a key focus on Gastrointestinal, Rare diseases, PDT Immunology, Oncology, and Neuroscience
In 2023, the company's expense on R&D increased by 18.32% as compared to 2022 to strengthen the development of its pipeline candidates
In Oct’23, Takeda presented topline data of the P-III ADMIRE-CD II study assessing Alofisel (darvadstrocel) in Complex Crohn's Perianal Fistulas

14. Gilead Sciences

R&D Expenditure: $5.71B

Market Cap: $93.06B

Founded Year: 1987

Total Employees: 18,000

Headquarters: California, United States

Stock Exchange: NASDAQ

A research-based biopharma company, Gilead Sciences discovers, develops, and delivers medicines for life-threatening diseases, including infectious diseases including HIV, viral hepatitis, coronavirus disease, and cancers
In 2023, the company's R&D expenses increased by 14.88% compared to 2022. The increase in R&D expense was aimed at strengthening the company's dominance in oncology and virology
In Nov’23, Kite, a Gilead subsidiary, expanded its strategic partnership with Arcellx

13. Bayer

R&D Expenditure: $5.92B

Market Cap: $30.87B

Founded Year: 1863

Total Employees: 99,723

Headquarters: Leverkusen, Germany

Stock Exchange: ETR

Bayer is a global healthcare and nutrition company. Crop science, pharmaceuticals, and consumer health are the company's three business segments. Bayer focuses on cardiology, gynecology, diabetes, oncology, and ophthalmology.
In 2023, the R&D expense of the company declined by 15.93% compared to 2022 due to low reported sales
In Nov’23, Bayer and CrossBay Medical entered a development and option to license agreement to develop and produce a single-handed inserter

12. Boehringer Ingelheim (BI)

R&D Expenditure: $6.36B

Market Cap:

Founded Year: 1885

Total Employees: 53,500

Headquarters: Rhein, Germany

Stock Exchange: N/A

A research-driven multinational private pharmaceutical company, BI discovers, develops, and manufactures innovative healthcare products. The company operates in three business segments viz. Human Pharma, Animal Health, and Biopharma Contract Manufacturing. The company currently focuses on developing drugs in therapeutic areas heart diseases, metabolic diseases, chronic kidney diseases, oncology, immunology, respiratory retinal diseases, and mental disorders
In 2023, the company spent 17.5% more as compared to 2022. The rise in R&D fund allocation is aimed at expanding the company's pipeline
In Nov’23, Boehringer Ingelheim acquired T3 Pharma to expand its immuno-oncology portfolio

11. Sanofi

R&D Expenditure: $7.42B

Market Cap: $138.42B

Founded Year: 1956

Total Employees: 86,088

Headquarters: Paris, France

Stock Exchange: NASDAQ

Sanofi is a research-based global French pharmaceutical and healthcare company that develops, manufactures, and markets innovative therapeutic options. Immunology & Inflammation, neurology, oncology, rare diseases, and vaccines are the areas in which the company focuses
In 2023, the company’s R&D expenditure increased by 3.19% compared to 2022. The rise in R&D expense was aimed at strengthening its immunology pipeline
In Apr’23, Sanofi, AstraZeneca, and Sobi simplified contractual arrangements for nirsevimab

10. AbbVie

R&D Expenditure: $7.67B

Market Cap: $346.47B

Founded Year: 2013

Total Employees: 50,000

Headquarters: Illinois, United States

Stock Exchange: NYSE

AbbVie discovers, manufactures, and commercializes products in oncology, immunology, neuroscience, eye care, aesthetics, and other chronic and complex diseases
In 2023, AbbVie spent 17.89% more on R&D compared to 2022, mainly impacted by increased funding to support all stages of the company's pipeline assets
In Dec’23, AbbVie and BigHat Biosciences announced a research collaboration to leverage AI and ML to discover next-generation therapeutic antibodies

9. GSK

R&D Expenditure: $7.92B

Market Cap: $86.25B

Founded Year: 2000

Total Employees: 70,212

Headquarters: London, United Kingdom

Stock Exchange: LON

GSK is a research-based multinational biopharma company that discovers, manufactures, and commercializes innovative therapeutic products. Infectious disease, HIV, Respiratory/immunology, and oncology are the areas of focus for R&D
In 2023, GSK’s R&D expense registered a spike of 19.3 percent compared to 2022. The rise in R&D expense aimed at strengthening the late-stage pipeline
In Dec’23, GSK entered into an exclusive agreement with Hansoh for HS-20093

8. Bristol-Myers Squibb (BMS)

R&D Expenditure: $9.29B

Market Cap: $99.30B

Founded Year: 1887

Total Employees: 34,100

Headquarters: New Jersey, United States

Stock Exchange: NYSE

BMS is an American biopharma company that discovers, develops, licenses, manufactures, markets, and distributes biopharmaceutical products on a global basis. BMS conducts R&D in Solid tumors, hematology, immunology, neuroscience, and cardiovascular
In 2023, the company's R&D expenditure registered a slight decline by 2.2% compared to 2022 owing to the unwinding of inventory purchase price adjustments for clinical usage ($130 million)
In Dec’23, BMS strengthened its neuroscience portfolio by acquiring Karuna Therapeutics

7. Eli Lilly

R&D Expenditure: $9.31B

Market Cap: $902.88B

Founded Year: 1876

Total Employees: 43,000

Headquarters: Indiana, United States

Stock Exchange: NYSE

Eli Lilly is an American pharmaceutical company that specializes in bone and joint disease, cancer, cardiovascular disease, diabetes, endocrine illness, immunology, neurodegeneration, neurology, and pain management
In 2023, the R&D expenditure increased by 29.51% as compared to 2022 owing to increased expenses for late-stage asset development and early-stage research
In Aug’23, Lilly completed the acquisition of Versanis Bio, which focuses on cardiometabolic diseases

6. Pfizer

R&D Expenditure: $10.67B

Market Cap: $163.77B

Founded Year: 1849

Total Employees: 88,000

Headquarters: New York, United States

Stock Exchange: NYSE

Pfizer is a research-based biopharma company that discovers, develops, manufactures, markets, and distributes innovative therapeutic solutions. The company operates in two segments: Biopharma and Business Innovation. The pipeline candidates in R&D focus on anti-infectives, inflammation & immunology, internal medicine, oncology, and vaccines
In 2023, Pfizer spent 6.55% less in R&D compared to 2022 owing to lower spending on ongoing vaccine and hospital programs
In Jun’23, Takeda and Pfizer revealed four-year results from a successful P-III HD21 study of additional ADCETRIS combination in frontline Hodgkin Lymphoma

5. AstraZeneca

R&D Expenditure: $10.93B

Market Cap: $263.85B

Founded Year: 1999

Total Employees: 89,900

Headquarters: Cambridge, United Kingdom

Stock Exchange: LON

AstraZeneca discovers, develops, and commercializes therapies in oncology, cardiovascular, renal, metabolic, respiratory, and immunology, vaccines and immune therapies, and rare diseases.
In 2023, the company’s R&D expenses increased by 12.01% as compared to 2022, predominantly to support the late-stage portfolio: in Oncology, camizestrant, volrustomig, and the ADC portfolio; in BioPharmaceuticals, Breztri/Trixeo and tozorakimab
In Sep’23, AstraZeneca’s Fasenra met the 1EPs in MANDARA P-III study in eosinophilic granulomatosis with polyangiitis (EGPA)

4. Novartis

R&D Expenditure: $11.37B

Market Cap: $257.39B

Founded Year: 1996

Total Employees: 19,607

Headquarters: Basel, Switzerland

Stock Exchange: SWX

An innovative medicines company, Novartis discovers, develops, and markets products in cardiovascular, renal, metabolic (CRM), immunology, neuroscience, and oncology
In 2023, the company spent 23.97% more on its R&D compared to 2022, majorly affected by higher impairments from the discontinuation of early-stage development projects
In Dec’23, Novartis announced the latest 48-week findings from the P-III APPLY-PNH study, showing the sustained efficacy and long-term safety of Fabhalta (iptacopan) in adults with PNH

3. Johnson & Johnson

R&D Expenditure: $15.08B

Market Cap: $385.54B

Founded Year: 1886

Total Employees: 131,900

Headquarters: New Jersey, United States

Stock Exchange: NYSE

Johnson & Johnson is a global healthcare company that provides innovative therapeutic and MedTech solutions in oncology, immunology, neuroscience, cardiology, pulmonary hypertension, and ophthalmology
The company focuses on the R&D of assets in oncology, immunology, and neuroscience. In 2023, J&J reported 6.72% more R&D expense compared to 2022 owing to higher milestone payments in the Innovative Medicine business
In Mar’23, Janssen announced a novel dengue antiviral (JNJ-1802) showcasing efficacy in its pre-clinical data

2. Roche

R&D Expenditure: $15.73B

Market Cap: $312.42B

Founded Year: 1896

Total Employees: 100,000

Headquarters: Basel, Switzerland

Stock Exchange: SWX

Roche is a global multinational healthcare company that discovers, develops, and commercializes therapeutic and diagnostic products. The company operates under two business segments, i.e. Pharmaceuticals and Diagnostics. Oncology/hematology, cardiovascular & metabolism, immunology, neuroscience, infectious disease, and ophthalmology are the areas in which the company allocates R&D resources
To strengthen the company's existing pipeline, Roche registered an increase in R&D expenditure by 9.72% in 2023 compared to 2022
In Sep’23, Roche and Alnylam announced favorable topline data from the P-II KARDIA-1 study of zilebesiran, an investigational RNAi therapy aimed at treating hypertension in high-risk cardiovascular patients

1. Merck & Co.

R&D Expenditure: $30.53B

Market Cap: $291.86B

Founded Year: 1891

Total Employees: 69,000

Headquarters: New Jersey, United States

Stock Exchange: NYSE

Merck provides innovative therapeutic solutions by developing and producing medicines, vaccines, biological treatments, and health products for animals and humans. The corporation works in two business segments: pharmaceutical and animal health. The company's R&D focuses on antibacterial/antifungal, antiviral, cardiovascular, endocrinology, immunology, neuroscience, oncology, respiratory, and vaccines.
In 2023, Merck spent 125.35% more on R&D than in 2022. The increase in R&D expense in 2023 is attributed to higher charges for business development activity
In Dec’23, Merck announced to stop KEYLYNK-008 study evaluating KEYTRUDA (pembrolizumab) + LYNPARZA (olaparib) in patients with metastatic squamous NSCLC

Sources: