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PHARMACEUTICAL EXECUTIVE

GROWTH BOTTOM
from the

Up

By Patrick Clinton and Jerry Cacciotti of Oliver Wyman

MORE CONSOLIDATION DIDN’T BOOST SALES AT THE TOP, BUT A HANDFUL OF NIMBLE NEWCOMERS POSTED IMPRESSIVE GROWTH ON THE OTHER END OF THE CURVE

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his year’s Pharm Exec 50 shows an industry whose growth has slowed to a crawl in the face of patent expirations, aggressive payers, and a tough environment for approvals. The 50 this year sold $610 billion in human prescription pharmaceuticals, up just 2.8 percent from last year’s $593 billion. The top 10 grew even more slowly—by just 2.6 percent—and accounted for 59 percent of the 50’s total sales, just like last year. In a year in which investors have looked with increasing disfavor on large R&D budgets, R&D spending grew by just 4.5 percent, from $101 billion to $105. Among the top 10, R&D was almost at, growing by just 1.6 percent. Four companies dropped off the 50 because of mergers: Genzyme (last year’s number 29), now a part of Sano Aventis; Alcon (previously 39), which was acquired by Novartis; Cephalon (previously 40), which is now a part of Teva; and Nycomed (previously 48), bought by Takeda. The consolidation that knocked these companies off the list had another effect: The companies at the bottom of the list are smaller. Every company in the 50 last year

had sales of at least $2 billion. This year, the smallest, Aspen, had sales of $1.66 billion. The drop is even steeper when you look at revenue as a percentage of the total revenues of the whole Pharm Exec 50. Last year’s smallest company accounted for 0.4 percent of the total revenue of all 50 companies in the ranking. This year, the equivalent gure was 0.2 percent—only half as big a percentage. By way of comparison, in 2004, the rst year when all 50 companies had sales of more than $1 billion, the smallest company accounted for 0.3 percent of the revenue of the 50. New additions include a reincarnated Valeant (44), formed when Biovail—Canada’s largest publicly held pharma, a specialist in CNS drugs and delivery—purchased the American firm for $3.3 billion, adopting its name and putting Valeant CEO Michael Pearson in charge of the combined operation. Endo Pharmaceuticals (45) is currently in the process of “reinventing” itself with a new business model and name (Endo Health Solutions); the company grew its branded and prescription pharmaceutical business by 38 percent in 2011. Grifols, the Spanish manufacturer of plasma fractionation products (47), grew revenues by more than 80 percent, partly as a result of the acquisition of US-based Talecris. And finally, Aspen Pharmacare, the 50’s first African company, grew its revenues by 29 percent last year, and its CAGR since 1998 is 46 percent. The company has been expanding its footprint, most recently by the acquisition of Australia’s Sigma. While some of the data this year may be a little depressing (incidentally, the anti-depression class of drugs jumped to number one in the US, surpassing lipid regulators), the hint of diversity and new ideas creeping up from the bottom of the list is a cause—albeit a small-cap one—for optimism.
Getty Images / Jed Share

*Special thanks to the IMS Institute for Healthcare Informatics and IMS Health for supplemental data

3 8.7 5.4 $5 5.0 24.695 Independent 483 740 Home Health Care $2.1 7. At right.9 Figures are in US$ billions.1 0.9 7. prescriptions in millions.6 9.5 5.5 4.7 8.8 13. MIDAS.0 7.3 6.4 12.6 3.8 5.9 14.8 6. December 2011 14.6 Clinics $38.04 –6.2 21.7 4.3 6.7 –0.5 10.1 Mail Service Institutional Channels Food Stores Independent At left.4 .0 26.3 3.3 16.2 4.3 11. sales in US$ billions Report reflects Prescription-bound products including Insulins (and excludes other products such as OTC) IMS routinely updates its market audits.4 –1.9 15.8 12.5 3.4 7.4 7.4 14.2 Long-Term Care $15. 5 $112.4 8.8 3.7 5.2 % Change 7.5 % Change –3.7 5.2 2010 23.4 4.1 13.MAy 2012 www.7 8.com 25 Top 20 Global Products Product 1 Lipitor 2 Plavix 3 Seretide 4 Crestor 5 Nexium 6 Seroquel 7 Humira 8 Enbrel 9 Remicade 10 Abilify 11 Singulair 12 Zyprexa 13 Mabthera 14 Lantus 15 Avastin 16 Herceptin 17 Cymbalta 18 Spiriva 19 Neulasta 20 Glivec 2011 9.4 10. MIDAS.6 18.4 10.0 20.7 28. Inhibitors 12 Anti-Epileptics 13 Vitamins & Minerals 14 Vaccines 15 Narcotic Analgesics 16 Cephalosporins 17 Multiple Non-Narcotic Analgesics 18 Hospital Solutions 19 Anti-Rheumatics.3 12.1 –7.4 $38.5 7.4 4.3 20.1 6.1 –3. Growth rates in US$ are not recommended due to extreme fluctuations in the value of the dollar The figures above include prescription and certain over the counter data and represent manufacturer prices Sales cover direct and indirect pharmaceutical channel wholesaler and manufacturers Channel Distribution by US Dispensed Prescriptions and US Sales Retail Channels 3.8 6.2 Non-Federal Hospitals 260 Food Stores HMO $2.8 5.7 0.9 11.8 Figures are in US$ billions. 2 12 329 Mail Service Chain Stores Institutional Channels 92.8 8.1 9.pharmexec.7 62.0 7.7 –6. which can and does result in changes to previously reported market size and growth rates.2 11.4 9.2 13.1 5.9 11. Growth rates in US$ are not recommended due to extreme fluctuations in the value of the dollar The figures above include prescription and certain over the counter data and represent manufacturer prices Sales cover direct and indirect pharmaceutical channel wholesaler and manufacturers Top 20 Global Therapeutic Classes Class 1 Oncologics 2 Respiratory Agents 3 Antidiabetics 4 Lipid Regulators 5 Antipsychotics 6 Angiotensin II Antagonists 7 Anti-Ulcerants 8 Autoimmune Agents 9 Antidepressants 10 HIV Antivirals 11 Platelet Aggr.2 38.9 7.1 12.8 4.7 0.2 19.4 14.6 2.5 17.7 4. December 2011 5.5 10.1 17.3 Chain Stores Source: IIMS National Prescription Audit™ $38.7 Miscellaneous $1 Retail Channels $227.0 5.Updated February 23. 2012 Source: IMS Health.4 39.8 Federal Facilities $4.3 10.4 27.4 6.5 9.4 Source: IMS Health.6 15.1 19.3 6.1 11. Non-Steroidal 2011 39.2 6.6 13.6 7.4 $2 1.

press coverage.3 80. Source: IMS Health.77 -12.6] Cymbalta [4.com] Sources: corporate data (10K’s.033 $5.3] Remicade [2.7] Plavix [2.2] Zyprexa [4.100 $8.4 6.9 59. 2012 2012 Company Rank HQ [website] 2011 Rx Sales (USD billions) 2011 R&D spend (USD millions) 2011 Top-Selling Drugs [USD billions] 1 2 3 4 5 6 7 8 9 10 Pfizer New York [pfizer.7] Enbrel [3.5 67.6 63.5 88.51 -3. and blood fractionation products.0 $34.7 $54. contract manufacturing.2 40.2 63.9 100.) and Pharm Exec estimates N/A = Not Available/Not Applicable How the listings were compiled: Companies in the Pharm Exec 50 are ranked according to global human prescription drug sales.32 15.58 -6.5] Januvia [3.8 71.9] Trilipix/TriCor [1.5 39.com] London. For most American and European companies.2] Alimta [2.54 -3. 2011.4 $21.7 74.com] $57.78% Figures in millions of prescriptions Report reflects Prescription-bound products including Insulins (and excludes other products such as OTC) IMS routinely updates its market audits.64 17.7 72. and royalty revenue.64 -12.4] Kaletra [1.8 156. vaccines.26 1.pharmexec.1 87.com] GlaxoSmithKline AstraZeneca Brentford.6] Lyrica [3.4 $33.0 $41. All figures represent the fiscal year that ended in 2011.com] Roche Basel.6] Herceptin [5.3 $37.com] Whitehouse Sation.3 303.7 7 0. annual reports. etc.6] Risperdal [1.020 Lipitor [9.03 35.6 46.67 23.4] Avastin [5.com Top 25 Corporations by US Prescriptions Corporation 1 Teva 2 Mylan 3 Novartis 4 Watson 5 Pfizer 6 Endo Pharm 7 Lupin laboratories 8 Amneal Pharm 9 Boehringer Ingelheim 10 Merck & co 11 Astrazeneca 12 Covidien 13 Dr Reddys Lab 14 Actavis 15 Zydus Cadila 16 Daiichi Sankyo 17 GlaxosmithKline 18 Abbott 19 Hikma Pharma 20 Lilly 21 Aurobindo 22 Forest 23 Taro Pharma 24 Perrigo 25 Par Pharm 2011 558.05 18.78 -4.47 -11.6 44. NJ [merck.4 264.67 15.467 $6.112 $9.2 50.1 133. In a handful of cases we have had to use estimates.9 45.8] Fixotide/Flovent [1.8 220.3] Advodart [1.Updated February 23.5 40.9 33 40.9 $34.7 366. we used the fiscal year ending March 31. Switzerland [roche. 2011.com] Paris.2] Crestor [6.4] Remicade [5. New Jersey [jnj.7 % Change -13.7] Gleevec/Glivec [4. Whenever possible.63 -6. we have taken figures from companies’ annual reports and SEO filings. we have supplemented these documents with figures from IMS and EvaluatePharma.2 43.6] MabThera/Rituxan [6.7 16. As needed (and especially in the case of privately held companies). As far as possible we have excluded OTC products.99 0. That includes generics.com] Eli Lilly Indianapolis.26 26 PHARMACEUTICAL EXECUTIVE PHARMACEUTICAL EXECUTIVE MAy 2012 www. England [astrazeneca. Switzerland [novartis.3 2010 645.5 76.7] Diovan/Co-Diovan [5.4 $22. England [gsk.86 17.02 2010: 3. Indiana [lilly.6] Seroquel [5.0] Lovenox [2.55 380.62 24.1 49.6 39. France [sanofi.8 289.54 TOTAL US SCRIP MARKET: 2011: 4.7 248. MIDAS.55 8.34 -5. and other sources.5 53 71.5] * Estimate Figures are rounded Novartis Merck Sanofi Basel.8] Nexium [4.8 63.2 176.1 98.6 43.1 82.com] Abbott Park.com] Johnson & Johnson Abbott New Brunswick.007 $7. Illinois [abbott. Foreign currencies were converted using the average midpoint interbank rate for the month following the end of the fiscal year. December 2011 .6] Humira [7. hospital supplies such as IV fluids. For many Japanese companies.5] Procrit/Eprex [1.138 $4.3 113.2 88.6] Seretide/Advair [7.7] Lucentis [2.9 $9.6 $24.4 68. which can and does result in changes to previously reported market size and growth rates.862 $5.27 2.63 -1.129 $5.2 152.48 3.7] Lantus [5.1 77. that means the year ending December 31. These are noted with an asterisk.1] Singulair [5.822 $5.6 54.1 251.

Germany [merckgroup.7 13. Japan [daiichisankyo.9] NovoLog/NovoRapid [2. Illinois [baxter.03 -6.974 $1.6 5.49 11.1] Copaxone [3. Germany [bayer.979 $2.2 15. New York [bms.2] Abilify [4. which can and does result in changes to previously reported market size and growth rates.4 $8.20 5.9 15.3 $15. 4 Novartis 5 Teva 6 Lilly 7 Roche 8 GlaxoSmithKline 9 Amgen 10 Johnson & Johnson 11 Sanofi 12 Abbott 13 Bristol-Myers Squibb 14 Boehringer Ingelheim 15 Takeda 16 Mylan 17 Gilead Sciences 18 Novo Nordisk 19 Otsuka 20 Forest Laboratories 2011 25. Israel [tevapharm.8 $11.04 10. Japan [otsuka. Japan [astellas.5 19.167 $3.64 TOTAL US SCRIP MARKET: 2011: $319.67% Figures in US$ billions.255 Plavix [7.com] Takeda Osaka.4 $7.38 16.1 $7.72 2.5 $11.9 6.2 12.15 5. 2012 2012 Company Rank HQ [website] 2011 Rx Sales (USD billions) 2011 R&D spend (USD millions) 2011 Top-Selling Drugs [USD billions] 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Bristol-Myers Squibb Teva New York.9 2010: $308.50 -5.607 $1.4] Olmesartan [2.com] Baxter International Mylan Deerfield.2 % Change -7.332 $1. Report reflects Prescription-bound products including Insulins (and excludes other products such as OTC) IMS routinely updates its market audits.pharmexec.9 12.com] Bagsvaerd.466 N/A $1.6] * Estimate Figures are rounded Amgen Thousand Oaks.com] Tokyo.76 6.1 12.com] Servier Neuilly-sur-Seine.2 $6.com] Boehringer Ingelheim [boehringer-ingelheim.com] Gilead Sciences Otsuka Foster City.08 3.78 13. MIDAS.229 $1.com] Bayer Leverkusen.2] Lipitor [1.8 4.662 $2.8 $12.com] Sources: corporate data (10K’s.5 $5.3 14.577 $946 $294 $1.9 13.2 11.5 15.8 14.2] Advate [1.67 17.com] Canonsburg.67 4.com] Daiichi Sankyo Novo Nordisk Astellas Tokyo.com Top 25 Corporations by US Sales Corporations 1 Pfizer 2 AstraZeneca 3 Merck & Co. Japan [takeda.4] Betaferon/Betaseron [1.6 19.7] Spiriva [4.2 2010 27. December 2011 . France [servier.1 14.com] Merck KGaA Darmstadt.6 5.58 -6.6 $11.com] Tokyo.2] Atripla [3.3 4.3 18 19.7 $15.com] $21.5 4. Pennsylvania [mylan.2 $13.1 19.) and Pharm Exec estimates N/A = Not Available/Not Applicable Source: IMS Health.7 5.0 $3.9 18.02 17.4] Rebif [2.2 $16.28 28 PHARMACEUTICAL EXECUTIVE PHARMACEUTICAL EXECUTIVE MAy 2012 www. annual reports.2 14.5 5. etc.2] Actos/Glustin [4.7 6.6 4. California [amgen.4 7 6. Denmark [novonordisk.1 $5.28 1.6 3.22 9.1 12.8 10.6] Neulasta/Neupogen [5.20 -3.8 10.7 5. California [gilead.9 11.com] Petach Tikva.05 3.080 $3.2 4.5 9.9] Generics [N/A] Coversyl [1.800 $1.Updated February 23.

8] * Estimate Figures are rounded Allergan Forest Irvine.3 47. California [allergan.7 $3.6] Cipralex [1.1 30.78% Figures in millions of prescriptions.44 TOTAL US SCRIP MARKET: 2011: 4. New York [frx.37 5.3 40. 2012 2012 Company Rank HQ [website] 2011 Rx Sales (USD billions) 2011 R&D spend (USD millions) 2011 Top-Selling Drugs [USD billions] 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Mitsubishi Tanabe Celgene CSL Osaka.66 1.8 $3.3] Lunesta [0.82 4.4 47.4 42. annual reports. Connecticut [purduepharma.7 $4.7 28. Report reflects Prescription-bound products including Insulins (and excludes other products such as OTC) IMS routinely updates its market audits.600 $349 $902 $715 $817 $770 n/a $1.8 31.7 33.3 53.8 46. Italy [menarini.com] Lundbeck Copenhagen.6 31.com] Tokyo.au] $4.004 $295 N/A $620 $107 Remicade [0.9 $2.57 11.0] Actonel [0.4 $4.2 1.7] Revlimid [3.2 62.83 5.2 33 34.com] Sources: corporate data (10K’s.com] Warner Chilcott Dublin.com] New York.6 55.14 3.) and Pharm Exec estimates N/A = Not Available/Not Applicable Source: IMS Health.9 37.1] OxyContin [2.9 26.3 52.2 1 Hydrocodone/Acetaminophen 2 Simvastatin 3 Lisinopril 4 Levothyroxine Sodium 5 Amlodipine Besylate 6 Omeprazole (Rx) 7 Azithromycin 8 Amoxicillin 9 Metformin Hcl 10 Hydrochlorothiazide 11 Alprazolam 12 Furosemide 13 Lipitor ® 14 Zolpidem Tartrate 15 Metoprolol Tartrate 16 Citalopram Hbr 17 Sertraline Hcl 18 Metoprolol Succinate 19 Prednisone 20 Atenolol 21 Gabapentin 22 Tramadol Hcl 23 Oxycodone/Acetaminophen 24 Ibuprofen (Rx) 25 Warfarin Sodium 94. Japan [eisai.7 $2.4 59.jp] Summit.com.2] Generic atovastatin [0.42 13.1 57.6 87.6 70.5 74.3 33.7 $3.com Top 25 US Pharma Products by Prescriptions Product 2011 2010 131.26 3.02 2010: 3.8 32.3 32.7 $2.com] Biogen Idec Eisai UCB Weston.8 48.740 $1.8 43.0 $3.pharmexec.99 0. which can and does result in changes to previously reported market size and growth rates.co. Ireland [shire.2 4.2 29.7 $4.4 88.13 2.7 37.66 2.com] Stamford. Australia [csl.11 -2.31 22.com] Osaka. Japan [mt-pharma.com] Dainippon Sumitomo Shire Dublin.99 -9.93 -2.3 52.30 30 PHARMACEUTICAL EXECUTIVE PHARMACEUTICAL EXECUTIVE MAy 2012 www.0 $4. Denmark [lundbeck. etc.1 46. December 2011 8.6] Vyvanse [0.7 35.9 32. Japan [ds-pharma.26 2.05 .com] Brussels.8] n/a [n/a] Avonex [2.1 53.9 $3. Ireland [wcrx.5 33. Belgium [ucb.com] Melbourne.5] Keppra [1.3 36.55 17.76 -8.8 38 39.1 37. Massachusetts [biogenidec.9 32 136 % Change 3.9 48.7] Aricept [3. MIDAS.68 4.7 $788 $1. New Jersey [watson.1 45.com] Watson Purdue Parsippany.45 17.4 38. New Jersey [celgene.82 -3.87 3.5 $4.8 32.com] Menarini Florence.1 96.Updated February 23.2] Privigen [n/a] Botox [1.2 $4.219 $1.6] Lexapro [2.

2 3.4 $2.8 $1.7 4.3 6.9 3.6 5.4 3 3. Spain [grifols.com] Barcelona.8 $4. Pennsylvania [endo.1 2.8 2.7 2.5 3.57 18.Updated February 23.8] Crestor [0.2] Lidoderm [0.6 4. etc.3 2.3 2.15 -12.06 6.04 Source: IMS Health.79 15.32 32 PHARMACEUTICAL EXECUTIVE PHARMACEUTICAL EXECUTIVE MAy 2012 www.9 -6.5 3.43 -15.53 TOTAL US SCRIP MARKET: 2011: $319.1 2.7 2.4 3. Japan [shionogi.3 Nesp/Espo [0. annual reports.9 3.8 7.6 3.6 $2. Switzerland [actavis.com] Sources: corporate data (10K’s.45 3. December 2011 4. Switzerland [galderma.8 $1.3 3 2.pharmexec. MIDAS.9 Major Patent Expiries in 2012.6] Restylane [0.com] Chadds Ford. Illinois [hospira.1 2 2 -2.86 4.9 3. Ontario [valeant.5 3. Switzerland [actelion.2 $2.6 $2. 2012 Patent expiries Major Patent Expiries in 2012 Plavix / Sanofi-BMS Seroquel / AstraZeneca Singulair / Merck Actos / Takeda Lexapro / Forest Sales in 2011 (in billions) $6.6 $3.7 6.6 2 2. South Africa [aspenpharma.0 $1.48 13.3] generic injectables [n/a] Welbutrin [219.com Top 25 US Pharma Products by Sales Product 1 Lipitor® 2 Plavix® 3 Nexium® 4 Abilify® 5 Advair Diskus® 6 Seroquel® 7 Singulair® 8 Crestor® 9 Cymbalta® 10 Humira® 11 Enbrel® 12 Remicade® 13 Actos® 14 Neulasta® 15 Rituxan® 16 Zyprexa® 17 Copaxone® 18 Lexapro® 19 Oxycontin® 20 Epogen® 21 Avastin® 22 Atripla® 23 Spiriva Handihaler® 24 Januvia® 25 Lantus® 2011 6.69 6.8 4.3 3.com] Lake Forest.8 3 3 3 2.7 $543 $611 $358 $65 $182 n/a $98 $486 $363 $1.8 3.com] Endo Pharmaceuticals Actavis Grifols Zug.18 20 23.66% Figures in US$ billions Report reflects Prescription-bound products including Insulins (and excludes other products such as OTC) IMS routinely updates its market audits.13 5. which can and does result in changes to previously reported market size and growth rates.55 12.com] Osaka. Singulair France: Singulair Germany: Seroquel 2012 Company Rank HQ [website] 2011 Rx Sales (USD billions) 2011 R&D spend (USD millions) 2011 Top-Selling Drugs [USD billions] 41 42 43 44 45 46 47 48 49 50 Kyowa Hakko Kirin Shionogi Hospira Tokyo.7 $2.4 $2.7 2.com] Durban.19 15.) and Pharm Exec estimates N/A = Not Available/Not Applicable .2 6.com] Galderma Aspen Lausanne.9 2010: $308.4 4.3 2010 7.5 3.14 0 10 30.com] $2. Ex-US: Japan: Seroquel UK: Seroquel.48 11.6 $4.6 4.63 20.1] N/A [n/a] * Estimate Figures are rounded Valeant Pharmaceuticals Mississauga.2 2.1 4.06 7.6 3.3 3.4 1.8] Generics [n/a] Plasma fractionation products [n/a] Tracleer [1.1 % Change -1.59 -2.2 4.com] Actelion Allschwil.9 $1. Japan [kyowa-kirin-pharma.

In a controversial decision. announced the $660 million sale of 17 noncore OTC brands. Xalatan. the family-owned bloc of Roche shares dipped below 50 percent when Maia Oeri dropped out of the group. and a research-based pharmaceutical company. Sanofi acquired Genzyme for $20 billion in April. and Horizant for restless leg syndrome (developed with XenoPort). It also launched the oral MS drug Gilenya. as well as giving the nod to 6. AstraZeneca 4. Other approvals included Juvisync. Merck gained FDA and EU approv- al for Victrelis. As the year ended. 9. FDA approval for Zelboraf. took a commanding position in the orthopedic market with its $21. sold its Astra Tech subsidiary.com . FDA withdrew approval of Roche’s Avastin for breast cancer—though CMS announced it would continue to reimburse for it. Still. and hit a key landmark as Sandoz’s generic version of the anticoagulant enoxaparin became the company’s first “generic blockbuster. Vfend. launched in Europe.34 PHARMACEUTICAL EXECUTIVE MAy 2012 www. only to have the nine-yearold partnership break up in November. while struggling to put manufacturing problems behind it. It also acquired King for $3. Fiber Choice.B.Clinton@oliverwyman. Lost market exclusivity included Taxotere. a combination of the diabetes drug Januvia with the statin Zocor. It won US and EU market approval for Bydureon. an ophthalmic specialty firm. It announced a strategic alliance with Boehringer Ingelheim focused on diabetes. He can be reached at Jerry. J&J exited the drug-eluting stent market it helped create. and revenues that topped $500 million in 18 countries outside the US. the acquisition of pediatric specialist Topaz Pharmaceuticals and Universal Medicare. and the Allegra family of allergy products launched in the US on an over-the-counter basis. Lilly acquired the animal health business of Janssen. AZ’s new anticoagulant. acquired last year. and bought the over-the-counter brands of India’s J. replacing Richard Clark. It also acquired Anadys. Meanwhile.com Patrick Clinton is Marketing Director in the Health & Life Sciences practice of Oliver Wyman. and Nasacort in the US and Aprovel in Western Europe. Novartis bought Genoptix. providing a broader profile in pain. The partnership won US and UK approval for Tradjenta/Trajenta. preserving its market exclusivity until at least June 2013. US approvals included Benlysta.6 billion.Cacciotti@oliverwyman.” with sales of more than $1 billion. and nutritionals. the largest of 30 new transactions in 2011. Goody’s. Joseph’s aspirin. Japanese regulators approved Nexium— a decade after the drug’s US launch. Xatral. In July. the first new lupus treatment in more than 50 years (developed with Human Genome Sciences).8 billion. Lipitor. for advanced prostate cancer.pharmexec. He can be reached at Patrick. for $458 million. It won approval for Zytiga (for late-stage prostate cancer) and the anticoagulant Xarelto. and Japan. Approvals included Xalkori (crizotinib) for some lung cancers with the ALK gene. Johnson & Johnson. While still integrating Alcon. and its companion diagnostic test—a first. for $430 million and formed alliances with India’s Sun Pharma (to promote branded generics in emerging markets) and Parexel (to pursue biosimilars). Others included off a challenge to its Cymbalta patent in federal court. FDA approved Brilinta. the anticonvulsant Potigal (developed with Valeant). The spinoff is slated to take place late this year. 10. reversing its 2010 rejection of the drug. Jevtana. and sold formulation specialist Capsugel. the world’s largest eyecare company. the first new medicine for chronic hepatitis C in almost a decade. and Tagamet. for $230 million. Among them was US approval for Arcapta Inhalr for COPD. Ecotrin. About the Authors Jerry Cacciotti is a Partner in Oliver Wyman’s Health and Life Sciences Practice. 8. and announced a partnership with Evotec to develop oncology biomarkers. the industry giant had five products that sold $2 billion or more. and Protonix as well. Caprelsa. It sold off its Jannsen dermatology business and the US rights to St. Abbott announced plans to split 3. the diabetes drug it developed with Amylin. but Aromasin. and filed for multiple new indications for Humira. GlaxoSmithKline itself into two companies: a medical products company focused on medical devices. Chemicals & Pharmaceuticals. including Beano. a hepatitis C specialist. Merck also bought Inspire. a diagnostics company. Sominex. CEO Kenneth Frazier was appointed chairman.3 billion acquisition of medicalequipment maker Synthes. the EU. an orphan condition.com The Top 10 Year In Review 1. to Dentsply for $1. a consumer health company in India. the first approved therapy for nonoperable advanced medullary thyroid cancer. which makes dental implants and medical devices for surgery and urology. Abbott also received European approval for a new absorbable heart stent. Roche gained simultaneous 2. Eli Lilly successfully fended 7. a targeted therapy for metastatic melanoma. Pfizer faced a brutal year of patent expirations in 2011. branded generics. For the first time. to Prestige Brands. including not just US exclusivity loss for its leading product. a Johnson & Johnson company. 5. Novartis won 15 approvals in the United States.