Curious to know which treatments are among the 15 bestselling most profitable drugs of all time? The pharmaceutical industry has been a topic of interest for investors, market researchers and just about anyone who’s curious enough to find out the dynamics of this ever-expanding and somewhat controversial sector. Market research firm Evaluate Pharma estimates that the global pharmaceutical industry will grow at a compound annual growth rate (CAGR) of 6.3% through 2022, reaching a market worth of over $1.12 trillion.
Sedentary lifestyles, unhealthy diets, weakening immune systems, and impurities in water are resulting in swiftly-increasing health problems and chronic diseases. According to an estimate by the World Health Organization, more than 2 million people die per year mainly because of physical inactivity. As a result, the sales of medicines are skyrocketing worldwide. “Big Pharma”, which consists of companies like Allergan plc Ordinary Shares (NYSE:AGN), Astellas, Bristol-Myers Squibb Co (NYSE:BMY), Pfizer Inc. (NYSE:PFE), Merck & Co. Inc. (NYSE:MRK), Roche and Sanofi SA (ADR) (NYSE:SNY), have been immensely profitable because of rising drug sales.
President Trump started calling for a cap on drug prices in the country immediately after coming to office. In June, the New York Times reported that President Trump was ready to sign an executive order on drug pricing, but nothing substantial has been done by the new administration yet. Earlier this month, FDA Commissioner Scott Gottlieb said that rising drug prices have become a “health concern” and the agency will take action to solve the problem.
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We have seen sudden and somewhat shocking drug price hikes over the last few years in the U.S. In August, UK-based pharmaceutical company Hikma increased the U.S price of its diarrhea treatment by a whopping 430%. In 2015, Martin Shkreli, famously known as the “Pharma Bro,” increased the price of life-saving drug Daraprim by 4,000%, after becoming the CEO of Turing Pharmaceuticals. Similarly, famous drugmaker Mylan came under fire after it upped the price of its EpiPen anti-allergy device to $600 from $90.
The state of California might be the first to take practical steps to control drug prices. Governor Jerry Brown is set to sign a bill that will necessitate pharmaceutical companies notifying authorities at least 60 days before increasing the price of drugs. Currently, companies can increase drug prices at will. Earlier this year, Maryland also passed a law which requires healthcare officials to notify the state’s attorney general should the price of a generic drug be raised by 50% or more.
Having these market dynamics in view, let’s find out the 15 bestselling most profitable drugs of all time. This article sorts the drugs based on their total revenue through the end of 2016. Check it out beginning on the next page.