Top 20 biopharma companies see 7.9% increase in aggregate revenue in 2024: GlobalData

The biopharmaceutical industry had a positive year in 2024, with obesity drug developers continuing to witness success. Nearly all (19) of the top 20 players publicly traded global biopharmaceutical companies reported revenue growth in 2024, with an overall 7.9 per cent year-on-year (YoY) increase in aggregate revenue to $880.4 billion, reveals GlobalData.

Seven out of the top 20 companies registered over 10 per cent YoY revenue growth from 2023 to 2024. They include Eli Lilly (32 per cent), Novo Nordisk (25.5 per cent), Astellas Pharma (19.2 per cent), Amgen (18.6 per cent), AstraZeneca (18 per cent), CSL (11.2 per cent) and Novartis (10.8 per cent).

Eli Lilly experienced the highest revenue growth of 32 per cent to $45 billion in 2024, followed by Novo Nordisk with 25.5 per cent to $42.1 billion, both fueled by the strong successes of their blockbuster drugs for obesity and diabetes. Eli Lilly’s Mounjaro and Zepbound generated total global sales of $16.5 billion in 2024, while Novo Nordisk’s Ozempic and Wegovy amassed combined global sales of $25.9 billion. Eli Lilly’s revenue growth was further driven by its breast cancer drug Verzenio, which recorded global sales of $5.3 billion in 2024.

Alison Labya, MSc, Business Fundamentals Analyst, GlobalData, comments, “Eli Lilly is projected to see 34.3 per cent revenue growth to $59.2 billion in 2025, whereas Novo Nordisk is expected to see only a 16.4 per cent increase to $47.7 billion, with the gap widening between these two companies, according to GlobalData’s Sales and Forecast database.”

Astellas Pharma also demonstrated strong performance with revenue growth to $13.2 billion, driven by the sales of Xtandi for prostate cancer, which registered global sales of $5.98 billion in 2024.

Half (10) of the top 20 companies recorded over 10 per cent YoY growth in their operating profit in 2024, and among those, Pfizer (1,134.1 per cent), Merck & Co (1,017.1 per cent), Eli Lilly (99.7 per cent) and Astellas Pharma (52.5 per cent) reported more than 50 per cent growth. Pfizer’s massive increase in its operating profit was attributed to ongoing cost-cutting initiatives saving $4.5 billion by the end of 2025. Meanwhile, the strong success of Merck & Co’s Keytruda led to a surge in its operating profit growth of 1,017.1 per cent and was further enhanced by lower royalty rates and reduced R&D expenses. On the other hand, Bristol-Myers Squibb (-171.7 per cent), Bayer (-111.6 per cent), and Gilead Sciences (-78.1 per cent) reported more than a 50 per cent decline in their operating profit in 2024.

Labya continues, “In terms of profitability, four out of the top 20 companies achieved over 100 per cent growth in net profit; Merck & Co (4,589 per cent), Pfizer (279 per cent), Astellas (197.7 per cent) and Eli Lilly (102 per cent). Merck & Co’s growth was primarily driven by its operating income, as well as the absence of legal settlement charges, which had impacted its net income in 2023 due to the Zetia antitrust case, while Eli Lilly’s growth was primarily driven by an increase in gross margin.”

Meanwhile, 11 companies reported YoY decline in profitability, with Bristol-Myers Squibb (-211.5 per cent), Gilead Sciences (-91.5 per cent) and Johnson & Johnson (-60 per cent) reporting more than 50 per cent decline. Bristol-Myers Squibb and Gilead Sciences’ decrease in operating income by 171.7 per cent and 78.1 per cent, respectively, and net income by 211.5 per cent and 91.5 per cent was primarily attributed to impairment charges and in-process research and development (IPR&D) expenses.

Labya concludes, “The top biopharmaceutical companies have witnessed a rebound in growth, with obesity drug developers continuing to reap success. Eli Lilly is poised to outpace Novo Nordisk in revenue growth over the next few years to capture long-term market share from Novo Nordisk in obesity and type 2 diabetes. However, the momentum in revenue growth is anticipated to flatten in 2025, as the biopharmaceutical industry faces headwinds including loss of exclusivity for major drugs and drug pricing pressures in the US.”