Patent  expiry and subsequent stiff competition faced by blockbuster drugs have given major setbacks to top global pharmaceutical companies during last ten years. Though, new blockbusters have come in the market subsequently with investments in Research & Development, the loss of patents of blockbusters of last ten years has not  been made up yet. There were 100 blockbuster products in 2016 of 15 leading pharma companies selected by Pharmabiz as against 77 products in 2007.

The Pharmabiz study of 15 international pharma giants reveals that the R&D expenditure of these companies increased by only 4 per cent to US$ 91,059 million during 2016 from $87,522 million in the previous year which worked out to over 20 per cent of their sales. Thus, there is very little growth in investments in R&D and outcome. Over the next few years, several patent will expire and more products may face severe competition from generic sales.  

The major blockbusters brands with sales of above $1 billion in the year 2007 like Lipitor, Norvasc, Celebrex, Enbrel and Xalatan (Pfizer), Nexium and Seroquel (AstraZeneca), Diovan (Novartis), Zyprexa, Cymbalta and Gemzar (Eli Lilly & Co), Plavix, Lovenox, Taxotere, Eloxatin, Stilnox and Aprovel (Sanofi), Cozaar/Hyzaa, Singulair and Fosamax (Merck & Co), Epogen (Amgen), Avandia product, Lamictal and Valtrex (GlaxoSmithKline), Tamiflu and CellCept (Roche), Abilify (Bristol-Myers Squibb), and Yaz/Yasmin and Betaferon (Bayer) received major set back in sales during last decade and several of these brands lost blockbuster status. Lipitor of Pfizer for the treatment of reduction of LDL cholesterol was No 1 brand in 2007 with net sales of $12.675 billion and it declined sharply to $1.758 billion in 2016. Further, GSK's Seretide, the second largest brand in 2007 with net sales of $6.985 million declined to $4.287 in 2016. Many blockbuster products of 2007 do not figure in the list of 2016 due to patent expiration.

However, with investments in R&D various new blockbuster product emerged with sales of over $2 billion during 2016 as against negligible in 2007. These brands like Harvoni, Truvada, Sovaldi, Atripla, (Gilead Sciences), Opdivo, Eliquis, Orencia (Bristol-Myers), Vytorin, Zetia (Merck), Stelara, Invega Sustenna, Zytiga (J&J), Gilenya, (Novartis), Xarelto (Bayer and J&J), Alimta (Eli Lilly), Ibrance (Pfizer), Trumeq (GSK), etc., achieved strong presence in international market.

Similarly, nearly 47 new brands entered the list of blockbuster products with sales of above $1 billion during 2016 as compared to list of products in 2007 which includes few major brands like Januvia, Cubicin(Merck) Copaxone (Teva Pharma) Stribild, (Gilead Sciences), Prezista (J&J), Lucentis (Novartis), Imbruvica ( AbbVie), Sprycel, Yervoy (Bristol-Myers), Perjeta, Tarceva, Activase/TNKase(Roche), Sutent (Pfizer), Renagel/Renvela (Sanofi), etc. (see table).

The R&D expenditure of Pharmabiz 15 international pharma companies reached at $ 91 billion in 2016, a growth of 4 per cent only. Out of 15 companies, R&D spending of 6 companies declined during 2016. GSK's spending declined by 15.4 per cent to $4,463 million and that of Bristol-Myers declined by 16.6 per cent to $4,940 million. Pfizer's R&D expenditure increased by 2.4 per cent to $7,872 million and that of Novartis improved by 1.2 per cent to $9,039 million. Gilead Sciences R&D spending increased sharply by over 69 per cent to $5,098 million from 3,014 million in previous year and that of Teva Pharma also moved up by 38.4 per cent to $2,111 million from $1,525 million. 



Blockbuster products 2007-2016