Shots:
- Research and Development (R&D) serves as the driving force behind groundbreaking therapeutic innovations, laying the foundation for advancements that transform patient health and overall well-being
- The global Top 20 pharmaceutical leaders spent ~$180B in 2024, with Merck & Co. contributing the most with a whopping $17.93B, followed by Johnson & Johnson ($17.23B) and Roche ($14.43B)
- PharmaShots brings a concise report on the Top 20 R&D Spending Biopharma Companies, along with their focus areas
| Rank | Companies | R&D Expenditure (2023 $B) | R&D Expenditure (2024 B) | Percentage Change (%) |
| 1 | Merck & Co. | 30.53 | 17.93 | -41.27 |
| 2 | Johnson & Johnson | 15.08 | 17.23 | 14.25 |
| 3 | Roche | 15.72 | 14.43 | -8.2 |
| 4 | AstraZeneca | 10.93 | 13.58 | 24.24 |
| 5 | AbbVie | 7.67 | 12.79 | 66.75 |
| 6 | Bristol-Myers Squibb (BMS) | 9.29 | 11.15 | 20.02 |
| 7 | Eli Lilly | 9.31 | 10.99 | 18.04 |
| 8 | Pfizer | 10.67 | 10.82 | 1.4 |
| 9 | Novartis | 11.37 | 10.02 | -11.87 |
| 10 | GSK | 7.92 | 8.04 | 1.51 |
| 11 | Sanofi | 7.18 | 7.7 | 7.24 |
| 12 | Novo Nordisk | 4.8 | 6.71 | 39.79 |
| 13 | Boehringer Ingelheim | 6.36 | 6.47 | 1.72 |
| 14 | Bayer | 5.92 | 6.46 | 9.12 |
| 15 | Amgen | 4.78 | 5.96 | 24.68 |
| 16 | Gilead Sciences | 5.71 | 5.9 | 3.32 |
| 17 | Regeneron | 4.43 | 5.13 | 15.8 |
| 18 | Moderna | 4.84 | 4.54 | -6.19 |
| 19 | Takeda | 4.92 | 4.5 | -8.53 |
| 20 | Vertex Pharmaceuticals | 3.16 | 3.63 | 14.87 |
Note: Columns 1 and 2 represent ranks and companies, while Columns 3, 4, and 5 showcase the total immunology revenue of 2023, the total revenue of 2024, and the percentage change.
20. Vertex Pharmaceuticals
R&D Expenditure: $3.63B
Market Cap: $101.11B
Founded Year: 1989
Total Employees: 6,100
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
- In 2024, the company’s R&D expenditure increased by 14.87% compared to 2023. The funds allocated to the R&D were aimed at strengthening the company’s pipeline candidates in mid-to-late-stage clinical development
- In December 2024, the US FDA approved Vertex’s Alyftrek for the treatment of cystic fibrosis
19. Takeda
R&D Expenditure: $4.5B
Market Cap: $48.91B
Founded Year: 1781
Total Employees: ~48,100
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 2024, the company’s expenses on R&D decreased by 8.51% compared to 2023. The funds were allocated to strengthen the development of its pipeline candidates
- In May 2024, Takeda’s ADAMTS13 received the CHMP’s positive opinion for congenital thrombotic thrombocytopenic purpura (cTTP)
18. Moderna
R&D Expenditure: $4.54B
Market Cap: $10.46B
Founded Year: 2010
Total Employees: 5,800
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 2024, the company’s R&D expenditure decreased by 6.19% compared to 2023, due to a decrease in clinical trial expenses. The R&D spending was aimed at strengthening Infectious disease vaccines and technical development, and unallocated manufacturing
- In August 2024, Moderna’s mRESVIA (mRNA-1345) vaccine gained the EC’s approval to prevent lower respiratory tract disease (LTRD)
17. Regeneron Pharmaceuticals
R&D Expenditure: $5.13B
Market Cap: $62.64B
Founded Year: 1988
Total Employees: 13,600
Headquarters: New York, United States
Stock Exchange: NASDAQ
- Regeneron Pharmaceuticals is a biotechnology company dedicated to the discovery, development, manufacturing, and commercialization of innovative medicines, primarily in the fields of immunology, oncology, ophthalmology, and rare diseases
- In 2024, Regeneron’s R&D expenditure increased by 15.8% compared to 2023. The rise in R&D expense was aimed at strengthening the company’s pipeline
- In June 2023, Regeneron’s Ordspono gained the CHMP’s positive opinion to treat r/r Follicular Lymphoma (FL) or Diffuse Large B-Cell Lymphoma (DLBCL)
16. Gilead Sciences
R&D Expenditure: $5.9B
Market Cap: $147.32B
Founded Year: 1987
Total Employees: 18,000
Headquarters: California, United States
Stock Exchange: NASDAQ
- Gilead Sciences discovers, develops, and delivers medicines for life-threatening diseases, including infectious diseases, such as HIV, viral hepatitis, coronavirus disease, and cancers
- In 2024, the company’s R&D expenses increased by 3.32% compared to 2023. The increase in R&D expense was aimed at strengthening the company’s position in oncology and virology
- In December 2024, Gilead received the CHMP’s positive opinion of Seladelpar to treat Primary Biliary Cholangitis (PBC)
15. Amgen
R&D Expenditure: $5.96B
Market Cap: $159.6B
Founded Year: 1980
Total Employees: 28,000
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 2024, the company spent 24.68% more on R&D than in 2023 to strengthen the late-stage clinical programs and support for marketed products
- In May’24, Amgen’s Imdelltra (Tarlatamab-dlle) received the US FDA’s approval to treat extensive-stage small cell lung cancer
14. Bayer
R&D Expenditure: $6.46B
Market Cap: $32.16B
Founded Year: 1863
Total Employees: ~89,600
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 2024, the R&D expense of the company increased by 9.12% compared to 2023, mainly focused on oncology, cardiovascular, neurology & rare diseases, and immunology
- In Dec’24, BridgeBio & Bayer reported the CHMP’s positive opinion of Beyonttra (Acoramidis) to treat transthyretin amyloidosis cardiomyopathy
13. Boehringer Ingelheim (BI)
R&D Expenditure: $6.47B
Market Cap: N/A
Founded Year: 1885
Total Employees: ~54,500
Headquarters: Rhein, Germany
Stock Exchange: N/A
- BI is a research-driven multinational private pharmaceutical company that discovers, develops, and manufactures innovative healthcare products. The company operates in three business segments, viz. Human Pharma, Animal Health, and Biopharma Contract Manufacturing
- In 2024, the company’s R&D spending was 1.72% more than in 2023. The rise in R&D fund allocation was aimed at expanding the company’s pipeline
- In May 2024, the US FDA approved a high concentration of BI’s Cyltezo (Biosimilar, Humira)
12. Novo Nordisk
R&D Expenditure: $6.71B
Market Cap: $184.09B
Founded Year: 1923
Total Employees: ~77,300
Headquarters: Denmark
Stock Exchange: CPH
- Novo Nordisk is a Danish multinational biopharma company that discovers, develops, manufactures, and commercializes medicinal products across multiple indications
- In 2024, the company spent 39.79% more on R&D compared to 2023, mainly focusing on diabetes, cardiovascular, neurology, and chronic kidney diseases, among others
- In Mar’24, Novo Nordisk’s Awiqli received the CHMP’s positive opinion for the treatment of diabetes
11. Sanofi
R&D Expenditure: $7.7B
Market Cap: $124.63B
Founded Year: 1956
Total Employees: ~82,900
Headquarters: Paris, France
Stock Exchange: NASDAQ
- Sanofi is a multinational pharmaceutical and healthcare company headquartered in France, focused on the development, manufacturing, and marketing of therapies across key areas including immunology and inflammation, neurology, oncology, rare blood disorders, rare diseases, and vaccines
- In 2024, the company’s R&D expenditure increased by 7.24% compared to 2023. The acceleration in R&D spend was focused mainly on key projects in immunology, rare diseases, neurology, and vaccines
- In Sep’24, Sanofi, RadioMedix, and Orano Med join forces to develop AlphaMedix (212Pb-Dotamtate) for rare cancer treatment
10. GSK
R&D Expenditure: $8.04B
Market Cap: $81.15B
Founded Year: 2000
Total Employees: ~68,600
Headquarters: London, United Kingdom
Stock Exchange: LON
- GSK is a British multinational biopharmaceutical company focused on developing therapies across infectious diseases, HIV, immunology/respiratory, and oncology
- In 2024, GSK’s R&D expense registered a spike of 1.51% compared to 2023. The rise in R&D expense is aimed at strengthening the late-stage pipeline
- In Dec’24, GSK’s ViiV Healthcare reported the CHMP’s positive opinion of Vocabria plus Rekambys for HIV treatment
9. Novartis
R&D Expenditure: $10.02B
Market Cap: $268.14B
Founded Year: 1996
Total Employees: ~75,900
Headquarters: Basel, Switzerland
Stock Exchange: SWX
- Novartis is an innovative medicines company that discovers, develops, and markets products in cardiovascular, renal, metabolic (CRM), immunology, neuroscience, and oncology
- In 2024, the company spent 11.87% less on its R&D compared to 2023, driven by lower impariments from discontinued early-stage projects
- In Oct’24, Monte Rosa Therapeutics and Novartis collaborate to advance VAV1-directed molecular glue degraders
8. Pfizer
R&D Expenditure: $10.82B
Market Cap: $144.3B
Founded Year: 1849
Total Employees: 81,000
Headquarters: New York, United States
Stock Exchange: NYSE
- Pfizer is an American multinational pharmaceutical company engaged in the discovery, development, manufacturing, and marketing of medicines and vaccines. It operates through three segments: Biopharma, PC1, and Pfizer Ignite
- In 2024, Pfizer spent 1.4% more on R&D compared to 2023, owing to the development of certain product candidates acquired from Seagen
- In Sep’24, Acepodia partnered with Pfizer to develop antibody-cell conjugation-based cell therapies for autoimmune disorders
7. Eli Lilly
R&D Expenditure: $10.99B
Market Cap: $667.67B
Founded Year: 1876
Total Employees: 47,000
Headquarters: Indiana, United States
Stock Exchange: NYSE
- Eli Lilly is a U.S.-based pharmaceutical company with a therapeutic focus spanning bone and joint disorders, cancer, cardiovascular conditions, diabetes, endocrine diseases, immunology, neurodegeneration, neuroscience, and pain management
- In 2024, the R&D expenditure increased by 18.04% as compared to 2023, owing to increased expenses for late-stage asset development and early-stage research
- In Sep’24, HAYA Therapeutics and Eli Lilly partnered to discover novel regulatory genome targets for obesity and other metabolic conditions
6. Bristol-Myers Squibb (BMS)
R&D Expenditure: $11.15B
Market Cap: $98.23B
Founded Year: 1887
Total Employees: 34,100
Headquarters: New Jersey, United States
Stock Exchange: NYSE
- Bristol Myers Squibb (BMS) discovers, develops, and delivers innovative therapies addressing unmet medical needs. The company primarily focuses on therapeutic areas including oncology, hematology, immunology, cardiovascular diseases, and neuroscience
- In 2024, the company’s R&D expenditure registered a spike of 20.02% primarily due to higher drug development costs to support our broader portfolio & recent acquisitions
- In Dec’24, BioArctic collaborated with BMS for its pyroglutamate-amyloid-beta antibody programs
5. AbbVie
R&D Expenditure: $12.79B
Market Cap: $369.48B
Founded Year: 2013
Total Employees: 55,000
Headquarters: Illinois, United States
Stock Exchange: NYSE
- AbbVie discovers, develops, and commercializes products in oncology, immunology, neuroscience, eye care, aesthetics, and other chronic and complex diseases
- In 2024, AbbVie spent 66.75% more on R&D compared to 2023, mainly impacted by increased funding to support all stages of the company’s pipeline assets
- In Oct’24, AbbVie inked a pact with Gedeon Richter to discover and develop novel targets for neuropsychiatric conditions
4. AstraZeneca
R&D Expenditure: $13.58B
Market Cap: $249.5B
Founded Year: 1999
Total Employees: 94,300
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 2024, the company’s R&D expenses increased by 24.24% compared to 2023. Out of the total investment, 39% was invested in discovery and early-stage development, and 61% in late-stage development
- In Oct’24, AstraZeneca inked a pact with CSPC Pharmaceutical Group to advance a lipid-lowering pre-clinical candidate
3. Roche
R&D Expenditure: $14.43B
Market Cap: $297.96B
Founded Year: 1896
Total Employees: ~103,200
Headquarters: Basel, Switzerland
Stock Exchange: SWX
- Roche is a multinational healthcare company focused on developing innovative solutions across a wide range of therapy areas through medicines and diagnostic solutions. The company focused on ophthalmology, oncology, neuroscience, and women’s health
- Despite the company’s focus on strengthening its existing pipeline, Roche’s R&D expenses decreased by 8.2% compared to 2023
- In Oct’24, Dyno Therapeutics collaborated with Roche to develop AAV gene therapy vectors for neurological diseases
2. Johnson & Johnson
R&D Expenditure: $17.23B
Market Cap: $430.71B
Founded Year: 1886
Total Employees: ~138,000
Headquarters: New Jersey, United States
Stock Exchange: NYSE
- Johnson & Johnson (J&J) is a multinational healthcare company engaged in the research, development, manufacturing, and commercialization of a broad range of healthcare products. The company operates through two primary business segments: Innovative Medicine and MedTech
- In 2024, J&J spent 14.25% more on its R&D as compared to 2023, owing to acquired in-process research & development expenses
- In Oct’24, Johnson and Johnson acquired V-Wave, expanding and strengthening the J&J MedTech segment
1. Merck & Co.
R&D Expenditure: $17.93B
Market Cap: $211.46B
Founded Year: 1891
Total Employees: 75,000
Headquarters: New Jersey, United States
Stock Exchange: NYSE
- Merck is a research-driven pharmaceutical company offering innovative therapies across human health, vaccines, biologics, and animal health. The company operates through two primary segments: Pharmaceutical and Animal Health
- In 2024, Merck spent 41.27% less on R&D than in 2023. The decline was primarily due to lower charges for business development activity and the favourable effect of foreign exchange
- In Dec’24, Merck collaborated with Hansoh Pharma to develop HS-10535, an investigational preclinical oral small molecule GLP-1 receptor agonist
Sources:
- Annual reports
- SEC Filings
- Press releases
- Company websites
Currency Conversion: Oanda (£1 – $1.25, €1 – $1.04, kr.1 – 0.13, CHF 1 – 1.1; Dec 31, 2024)
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