US Pharma Companies
Peer Benchmarking Tearsheet (H1'2023)As the pharmaceutical industry adapts to a post-pandemic landscape, we are analyzing the mid-year performance of the top ten US companies.
Sales metrics present a diverse landscape, with the majority of companies experiencing modest growth at best. Pfizer recorded a significant 41.9% year-over-year decline as global demand for its COVID-19 offerings diminished. AbbVie and Bristol Myers Squibb also reported decreased year-over-year sales by 7.2% and 4.1%, respectively. The expiration of Humira's patent exclusivity has negatively impacted AbbVie, while lower Revlimid sales have affected Bristol Myers Squibb's performance. On the other hand, Vertex maintained strong growth driven by its cystic fibrosis product line; Eli Lilly benefited from surging diabetes drug sales; and Regeneron's collaboration with Sanofi and robust Libtayo sales boosted its growth.
Increasing research and development (R&D) and marketing costs have surpassed revenue growth across all the companies, influencing year-over-year growth in operating profits. However, profit margins have remained consistent.
| JNJ | LLY | MRK | ABBV | PFE | BMY | AMGN | GILD | REGN | VRTX | |
| 听Sales | 50.28 | 15.27 | 29.52 | 26.09 | 31.02 | 22.56 | 13.09 | 12.95 | 6.32 | 4.87 |
| 听yoy | 6.0% | 6.8% | -3.2% | -7.2% | -41.9% | -4.1% | 2.0% | 0.8% | 8.6% | 13.4% |
| 听Sales [2023 est.]听 | 100.23 | 33.65 | 59.27 | 53.45 | 66.01 | 44.95 | 27.08 | 26.86 | 12.77 | 9.87 |
| 听Sales [2022]听 | 94.94 | 28.54 | 59.28 | 58.05 | 100.33 | 46.16 | 26.32 | 27.28 | 12.17 | 8.93 |
| 听yoy | 5.6% | 17.9% | 0.0% | -7.9% | -34.2% | -2.6% | 2.9% | -1.5% | 4.9% | 10.5% |
| 听Gross Profit | 33.67 | 11.84 | 21.57 | 17.86 | 22.89 | 17.12 | 9.56 | 10.11 | 5.46 | 4.29 |
| 听yoy | 5.4% | 9.7% | 3.2% | -10.2% | -34.2% | -6.7% | -2.1% | 1.2% | 6.6% | 13.4% |
| 听margin | 67.0% | 77.5% | 73.1% | 68.5% | 73.8% | 75.9% | 73.0% | 78.0% | 86.4% | 88.2% |
| 听RnD* | 7.39 | 4.34 | 17.60 | 4.03 | 5.15 | 4.58 | 2.17 | 2.85 | 2.19 | 1.53 |
| 听yoy | 3.2% | 28.0% | 227.4% | 29.6% | 0.7% | 0.0% | 8.7% | 25.2% | 33.5% | 27.2% |
| 听% of sales | 14.7% | 28.4% | 59.6% | 15.4% | 16.6% | 20.3% | 16.6% | 22.0% | 34.6% | 31.4% |
| 听SGnA | 12.80 | 3.67 | 5.18 | 6.31 | 6.91 | 3.70 | 2.55 | 3.17 | 1.25 | 0.50 |
| 听yoy | 5.3% | 15.4% | 7.2% | -26.1% | 22.5% | 2.2% | -0.1% | 29.8% | 35.3% | 17.0% |
| 听% of sales | 25.5% | 24.1% | 17.6% | 24.2% | 22.3% | 16.4% | 19.5% | 24.5% | 19.8% | 10.3% |
| 听Operating Income | 13.20 | 3.82 | -1.43 | 7.28 | 10.77 | 8.85 | 4.61 | 3.37 | 1.96 | 1.81 |
| 听yoy | 6.1% | -9.4% | -113.6% | -9.1% | -54.5% | -12.8% | -1.5% | 51.4% | -17.1% | -15.9% |
| 听margin | 26.3% | 25.0% | -4.8% | 27.9% | 34.7% | 39.2% | 35.2% | 26.0% | 31.1% | 37.1% |
| 听Net Income | 5.08 | 3.11 | -3.15 | 2.27 | 7.89 | 4.34 | 4.22 | 2.02 | 1.79 | 1.62 |
| 听yoy | -49.1% | 8.8% | -138.1% | -58.2% | -55.6% | 60.2% | 51.1% | 76.5% | -2.2% | 2.7% |
| 听margin | 10.1% | 20.4% | -10.7% | 8.7% | 25.5% | 19.3% | 32.2% | 15.6% | 28.3% | 33.2% |
| 听Adj. Net Income** | 14.43 | 3.37 | -1.65 | 9.56 | 10.88 | 8.00 | 4.82 | 3.41 | 2.35 | 1.81 |
| 听yoy | 2.7% | -3.9% | -116.2% | -17.9% | -48.2% | -4.8% | -0.3% | -26.8% | -3.9% | -1.6% |
| 听margin | 28.7% | 22.1% | -5.6% | 36.6% | 35.1% | 35.4% | 36.8% | 26.4% | 37.2% | 37.1% |
| % diff vs GAAP听 | 184.2% | 8.4% | -47.6% | 321.5% | 37.8% | 84.1% | 14.3% | 68.7% | 31.5% | 11.9% |
| 听Op. Cash Flows | 7.44 | 2.36 | 5.04 | 10.51 | 0.00 | 4.86 | 5.17 | 4.08 | 2.39 | 2.03 |
| 听yoy | -22.2% | -36.3% | -44.4% | 6.0% | -100.0% | -20.0% | 26.4% | 12.1% | -10.4% | -2.9% |
| % of sales听 | 14.8% | 15.5% | 17.1% | 40.3% | 0.0% | 21.5% | 39.5% | 31.5% | 37.8% | 41.8% |
| 听Capital Expenditure | 1.99 | 1.41 | 1.97 | 0.35 | 2.05 | 0.54 | 0.62 | 0.25 | 0.29 | 0.10 |
| 听yoy | 35.2% | 91.0% | -6.7% | 15.7% | 47.3% | 2.3% | 41.1% | -36.4% | -1.4% | -13.0% |
| % of sales听 | 4.0% | 9.2% | 6.7% | 1.4% | 6.6% | 2.4% | 4.7% | 1.9% | 4.6% | 2.1% |
| 听Free Cash Flows | 5.45 | 0.96 | 3.07 | 10.16 | -2.05 | 4.32 | 4.56 | 3.83 | 2.10 | 1.93 |
| % of sales听 | 10.8% | 6.3% | 10.4% | 38.9% | -6.6% | 19.1% | 34.8% | 29.6% | 33.2% | 39.7% |
| 听Cash & ST Inv. | 28.51 | 2.83 | 6.38 | 8.77 | 44.79 | 8.73 | 34.25 | 0.96 | 8.93 | 11.24 |
| 听yoy | -12.5% | 3.4% | -37.0% | -12.0% | 34.5% | -34.0% | 376.8% | 4.2% | 18.0% | 21.4% |
| 听Total Debt | 45.60 | 18.82 | 36.91 | 61.02 | 65.34 | 37.68 | 61.54 | 25.25 | 1.98 | 4.88 |
| 听yoy | 39.9% | 11.9% | 16.6% | -16.3% | 62.2% | -10.4% | 68.5% | -3.7% | 0.1% | 33.7% |
| net debt听 | 17.10 | 15.99 | 30.53 | 52.25 | 20.56 | 28.95 | 27.30 | 24.28 | -6.95 | -6.36 |
| total debt to equity听 | 0.60 | 1.69 | 0.95 | 4.74 | 0.66 | 1.18 | 9.08 | 1.20 | 0.08 | 0.32 |
| 听Assets | 191.69 | 54.81 | 104.47 | 135.37 | 220.17 | 93.49 | 90.27 | 62.34 | 30.66 | 20.35 |
| debt to assets听 | 0.24 | 0.34 | 0.35 | 0.45 | 0.30 | 0.40 | 0.68 | 0.40 | 0.06 | 0.00 |
| return on assets [ltm]听 | 6.8% | 11.9% | 3.0% | 6.4% | 9.8% | 8.5% | 8.8% | 8.7% | 14.0% | 16.5% |
| return on equity [ltm]听 | 17.1% | 58.3% | 8.0% | 67.6% | 21.7% | 24.9% | 117.7% | 25.8% | 17.9% | 21.8% |
| asset turnover听 | 0.52 | 0.61 | 0.57 | 0.39 | 0.30 | 0.48 | 0.30 | 0.43 | 0.42 | 0.49 |
| 听Share Price (08/23/23) | 164.53 | 553.36 | 111.3 | 147.08 | 36.66 | 61.56 | 257.36 | 77.04 | 840.81 | 350.6 |
| 52w high听 | 179.8 | 553.7 | 117.6 | 165.2 | 52.8 | 79.1 | 283.3 | 86.9 | 844.4 | 362.5 |
| 52w low听 | 149.9 | 255.4 | 73.6 | 129.0 | 35.0 | 60.2 | 212.6 | 54.3 | 548.3 | 235.0 |
| 听EPS, Diluted | 1.93 | 3.44 | -1.24 | 1.26 | 1.38 | 2.06 | 7.86 | 1.63 | 15.68 | 6.21 |
| year ago听 | 3.73 | 3.16 | 3.25 | 3.03 | 3.10 | 1.25 | 5.13 | 0.92 | 16.07 | 6.09 |
| 听Adj. EPS, Diluted | 5.48 | 3.73 | -0.65 | 5.37 | 1.90 | 3.80 | 8.98 | 2.71 | 20.32 | 6.95 |
| year ago听 | 5.26 | 3.87 | 4.01 | 6.52 | 3.66 | 3.89 | 8.89 | 3.70 | 21.26 | 7.11 |
| 听EPS Estimate [2023] | 10.75 | 9.85 | 3.02 | 11.06 | 3.30 | 7.43 | 18.25 | 6.63 | 41.79 | 14.71 |
| year ago听 | 10.15 | 7.94 | 7.48 | 13.77 | 6.58 | 7.70 | 17.69 | 7.26 | 44.98 | 14.88 |
| 听Market Cap (08/23/23) | 427.51 | 497.86 | 282.59 | 259.89 | 206.98 | 128.85 | 137.69 | 96.22 | 89.97 | 90.35 |
| price to 2023 sales听 | 4.27 | 14.80 | 4.77 | 4.86 | 3.14 | 2.87 | 5.08 | 3.58 | 7.05 | 9.15 |
| price to ltm earnings听 | 32.75 | 76.62 | 90.69 | 29.90 | 9.62 | 16.15 | 17.26 | 17.68 | 20.93 | 26.85 |
| price to 2023 eps听 | 15.31 | 56.18 | 36.85 | 13.30 | 11.11 | 8.29 | 14.10 | 11.62 | 20.12 | 23.83 |
| market cap to ltm ocf听 | 22.41 | 81.26 | 56.04 | 10.18 | 14.22 | 10.87 | 12.75 | 10.12 | 18.99 | 22.21 |
| market cap to ocf [2x*h1]听 | 28.73 | 105.37 | 28.02 | 12.36 | 25872.79 | 13.26 | 13.31 | 11.79 | 18.82 | 22.21 |
| 听Enterprise Value | 448.96 | 461.33 | 324.06 | 290.06 | 269.63 | 162.90 | 146.05 | 115.57 | 78.05 | 80.68 |
| ev to 2023 sales听 | 4.48 | 13.71 | 5.47 | 5.43 | 4.08 | 3.62 | 5.39 | 4.30 | 6.11 | 8.17 |
* Merck's significant increase in 2023-H1 RnD expenses was primarily due to a $10.2 billion charge for the acquisition of Prometheus
** Adjusted net income are non-GAAP numbers reported by the company in 8-K filings