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 | |
| Sales | 50.28 | 15.27 | 29.52 | 26.09 | 31.02 | 22.56 | 13.09 | 12.95 | 6.32 | 4.87 |
| yoy | 6.0% | 6.8% | -3.2% | -7.2% | -41.9% | -4.1% | 2.0% | 0.8% | 8.6% | 13.4% |
| Sales [2023 est.] | 100.23 | 33.65 | 59.27 | 53.45 | 66.01 | 44.95 | 27.08 | 26.86 | 12.77 | 9.87 |
| Sales [2022] | 94.94 | 28.54 | 59.28 | 58.05 | 100.33 | 46.16 | 26.32 | 27.28 | 12.17 | 8.93 |
| yoy | 5.6% | 17.9% | 0.0% | -7.9% | -34.2% | -2.6% | 2.9% | -1.5% | 4.9% | 10.5% |
| Gross Profit | 33.67 | 11.84 | 21.57 | 17.86 | 22.89 | 17.12 | 9.56 | 10.11 | 5.46 | 4.29 |
| yoy | 5.4% | 9.7% | 3.2% | -10.2% | -34.2% | -6.7% | -2.1% | 1.2% | 6.6% | 13.4% |
| margin | 67.0% | 77.5% | 73.1% | 68.5% | 73.8% | 75.9% | 73.0% | 78.0% | 86.4% | 88.2% |
| RnD* | 7.39 | 4.34 | 17.60 | 4.03 | 5.15 | 4.58 | 2.17 | 2.85 | 2.19 | 1.53 |
| yoy | 3.2% | 28.0% | 227.4% | 29.6% | 0.7% | 0.0% | 8.7% | 25.2% | 33.5% | 27.2% |
| % of sales | 14.7% | 28.4% | 59.6% | 15.4% | 16.6% | 20.3% | 16.6% | 22.0% | 34.6% | 31.4% |
| SGnA | 12.80 | 3.67 | 5.18 | 6.31 | 6.91 | 3.70 | 2.55 | 3.17 | 1.25 | 0.50 |
| yoy | 5.3% | 15.4% | 7.2% | -26.1% | 22.5% | 2.2% | -0.1% | 29.8% | 35.3% | 17.0% |
| % of sales | 25.5% | 24.1% | 17.6% | 24.2% | 22.3% | 16.4% | 19.5% | 24.5% | 19.8% | 10.3% |
| Operating Income | 13.20 | 3.82 | -1.43 | 7.28 | 10.77 | 8.85 | 4.61 | 3.37 | 1.96 | 1.81 |
| yoy | 6.1% | -9.4% | -113.6% | -9.1% | -54.5% | -12.8% | -1.5% | 51.4% | -17.1% | -15.9% |
| margin | 26.3% | 25.0% | -4.8% | 27.9% | 34.7% | 39.2% | 35.2% | 26.0% | 31.1% | 37.1% |
| Net Income | 5.08 | 3.11 | -3.15 | 2.27 | 7.89 | 4.34 | 4.22 | 2.02 | 1.79 | 1.62 |
| yoy | -49.1% | 8.8% | -138.1% | -58.2% | -55.6% | 60.2% | 51.1% | 76.5% | -2.2% | 2.7% |
| margin | 10.1% | 20.4% | -10.7% | 8.7% | 25.5% | 19.3% | 32.2% | 15.6% | 28.3% | 33.2% |
| Adj. Net Income** | 14.43 | 3.37 | -1.65 | 9.56 | 10.88 | 8.00 | 4.82 | 3.41 | 2.35 | 1.81 |
| yoy | 2.7% | -3.9% | -116.2% | -17.9% | -48.2% | -4.8% | -0.3% | -26.8% | -3.9% | -1.6% |
| margin | 28.7% | 22.1% | -5.6% | 36.6% | 35.1% | 35.4% | 36.8% | 26.4% | 37.2% | 37.1% |
| % diff vs GAAP | 184.2% | 8.4% | -47.6% | 321.5% | 37.8% | 84.1% | 14.3% | 68.7% | 31.5% | 11.9% |
| Op. Cash Flows | 7.44 | 2.36 | 5.04 | 10.51 | 0.00 | 4.86 | 5.17 | 4.08 | 2.39 | 2.03 |
| yoy | -22.2% | -36.3% | -44.4% | 6.0% | -100.0% | -20.0% | 26.4% | 12.1% | -10.4% | -2.9% |
| % of sales | 14.8% | 15.5% | 17.1% | 40.3% | 0.0% | 21.5% | 39.5% | 31.5% | 37.8% | 41.8% |
| Capital Expenditure | 1.99 | 1.41 | 1.97 | 0.35 | 2.05 | 0.54 | 0.62 | 0.25 | 0.29 | 0.10 |
| yoy | 35.2% | 91.0% | -6.7% | 15.7% | 47.3% | 2.3% | 41.1% | -36.4% | -1.4% | -13.0% |
| % of sales | 4.0% | 9.2% | 6.7% | 1.4% | 6.6% | 2.4% | 4.7% | 1.9% | 4.6% | 2.1% |
| 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 | 10.8% | 6.3% | 10.4% | 38.9% | -6.6% | 19.1% | 34.8% | 29.6% | 33.2% | 39.7% |
| Cash & ST Inv. | 28.51 | 2.83 | 6.38 | 8.77 | 44.79 | 8.73 | 34.25 | 0.96 | 8.93 | 11.24 |
| yoy | -12.5% | 3.4% | -37.0% | -12.0% | 34.5% | -34.0% | 376.8% | 4.2% | 18.0% | 21.4% |
| Total Debt | 45.60 | 18.82 | 36.91 | 61.02 | 65.34 | 37.68 | 61.54 | 25.25 | 1.98 | 4.88 |
| yoy | 39.9% | 11.9% | 16.6% | -16.3% | 62.2% | -10.4% | 68.5% | -3.7% | 0.1% | 33.7% |
| net debt | 17.10 | 15.99 | 30.53 | 52.25 | 20.56 | 28.95 | 27.30 | 24.28 | -6.95 | -6.36 |
| total debt to equity | 0.60 | 1.69 | 0.95 | 4.74 | 0.66 | 1.18 | 9.08 | 1.20 | 0.08 | 0.32 |
| Assets | 191.69 | 54.81 | 104.47 | 135.37 | 220.17 | 93.49 | 90.27 | 62.34 | 30.66 | 20.35 |
| debt to assets | 0.24 | 0.34 | 0.35 | 0.45 | 0.30 | 0.40 | 0.68 | 0.40 | 0.06 | 0.00 |
| return on assets [ltm] | 6.8% | 11.9% | 3.0% | 6.4% | 9.8% | 8.5% | 8.8% | 8.7% | 14.0% | 16.5% |
| return on equity [ltm] | 17.1% | 58.3% | 8.0% | 67.6% | 21.7% | 24.9% | 117.7% | 25.8% | 17.9% | 21.8% |
| asset turnover | 0.52 | 0.61 | 0.57 | 0.39 | 0.30 | 0.48 | 0.30 | 0.43 | 0.42 | 0.49 |
| 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 | 179.8 | 553.7 | 117.6 | 165.2 | 52.8 | 79.1 | 283.3 | 86.9 | 844.4 | 362.5 |
| 52w low | 149.9 | 255.4 | 73.6 | 129.0 | 35.0 | 60.2 | 212.6 | 54.3 | 548.3 | 235.0 |
| EPS, Diluted | 1.93 | 3.44 | -1.24 | 1.26 | 1.38 | 2.06 | 7.86 | 1.63 | 15.68 | 6.21 |
| year ago | 3.73 | 3.16 | 3.25 | 3.03 | 3.10 | 1.25 | 5.13 | 0.92 | 16.07 | 6.09 |
| 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 | 5.26 | 3.87 | 4.01 | 6.52 | 3.66 | 3.89 | 8.89 | 3.70 | 21.26 | 7.11 |
| 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 | 10.15 | 7.94 | 7.48 | 13.77 | 6.58 | 7.70 | 17.69 | 7.26 | 44.98 | 14.88 |
| 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 | 4.27 | 14.80 | 4.77 | 4.86 | 3.14 | 2.87 | 5.08 | 3.58 | 7.05 | 9.15 |
| price to ltm earnings | 32.75 | 76.62 | 90.69 | 29.90 | 9.62 | 16.15 | 17.26 | 17.68 | 20.93 | 26.85 |
| price to 2023 eps | 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 | 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] | 28.73 | 105.37 | 28.02 | 12.36 | 25872.79 | 13.26 | 13.31 | 11.79 | 18.82 | 22.21 |
| 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 | 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