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Top 3 drugs_2013_v3


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Ranking the pharma industry's three biggest winners of 2013.

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Top 3 drugs_2013_v3

  1. 1. Ranking Big Pharma’s Top Drugs of 2013
  2. 2. Pharmaceutical Industry • Drug development is a risky process; it takes several years and, by some estimates, more than $1 billion to bring a new drug to the market • Many big pharmas aggressively compete for market share in certain therapeutic areas • Companies are also racing against time; after they lose patent protection for a product, generic pharma specialists can sell cheaper versions of their drug
  3. 3. Blockbuster Drugs • However, if a product is effective and maintains market exclusivity, annual sales can surpass $1 billion • These products are referred to as “blockbuster drugs” • The big pharmas and biotechs have blockbusters in their portfolio, but what were the three biggest products of 2013? Note: Sales data from company filings, compiled by Bloomberg.
  4. 4. #3 Enbrel • Enbrel, an autoimmune drug, was the third best- selling product in 2013 • It’s marketed by big biotech Amgen in the US and Canada, and by pharma giant Pfizer outside of these two countries • Total sales topped $8.3 billion last year, with almost $4.6 billion going to Amgen and nearly $3.8 billion to Pfizer
  5. 5. #3 Enbrel • Amgen is heavily reliant on this product, as it accounts for a quarter of its total sales • However, the company has other blockbuster drugs, including Neupogen and Epogen, that help grow the top line • It also has several promising drugs in late-stage development, including T-Vec for the treatment of melanoma and a PCSK9 inhibitor for the treatment of high cholesterol
  6. 6. #3 Enbrel • Pfizer’s partnership with Amgen for co-marketing this drug in the US ended last October. Pfizer will also face headwinds when Enbrel’s patent expires in major EU markets in 2015 • However, the company has a rich pipeline, including cancer drug palbociclib and a PCSK9 drug for high cholesterol
  7. 7. #2 Remicade • Remicade, an inflammatory disease drug, is sold by Dow components Johnson & Johnson and Merck • Topping $8.94 billion in sales, it was the second best-selling drug in the world last year • It also competes with Enbrel (and the top drug on this list), for certain indications
  8. 8. #2 Remicade • Remicade is Merck’s third best-selling drug, but a biosimilar of the drug has been approved by the EC and key patents will expire in EU markets in 2015. Merck is developing new drugs with blockbuster potential, including its anti-PD-1 immunotherapy drug, to help drive future growth • The drug was 9.4% of J&J’s revenue last year, but its patent won’t expire until 2018. • J&J also has a growing pharma division
  9. 9. #1 AbbVie’s Humira • After taking the top spot in 2012, AbbVie’s autoimmune disease drug Humira retained its crown in 2013 • It brought in almost $10.7 billion last year and makes up a whopping 57% of AbbVie’s total revenue • The only problem with having the best selling drug in the world is thinking about what happens when it loses market exclusivity …
  10. 10. #1 AbbVie’s Humira • AbbVie’s patent for Humira expires in December 2016, and the product may be exposed to competition • But it is difficult to manufacture biologics and get approval for products like Humira, so AbbVie may not face intense competition right away • Fortunately, the company has a number of drugs in its pipeline that can add to its portfolio, including a drug for the treatment of hepatitis C
  11. 11. 1 Stock to Own in 2014 Discover what The Motley Fool’s Chief Investment Officer named as his high conviction stock pick for 2014.