Financial analysis and economic trends in major global pharmaceutical companies: a review of the past five years

Authors

DOI:

https://doi.org/10.31637/epsir-2024-1400

Keywords:

Pharmaceutical industry, financial analysis, R&D, horizontal analysis, vertical analysis, profitability, operating margin, operating income

Abstract

Introduction: The pharmaceutical industry played a crucial role during the COVID-19 pandemic, focusing on research, development and commercialization of treatments and vaccines. Methodology: A financial statement analysis was performed using tools such as horizontal and vertical percentages and ratios. The data came from the ORBIS database, which classifies companies according to the NACE (European Classification of Economic Activities). The study focused on the top twelve pharmaceutical companies by revenue and assets, mostly located in the U.S. Results: An upward trend in revenue, profitability and other indicators was observed in all twelve companies. Pfizer stood out as the leader in 2022, driven by the success of its vaccine developed with BioNTech. Discussion: Despite high R&D costs, the efforts made by pharmaceutical companies during the pandemic produced favorable economic results, especially for those involved in vaccine development. Conclusions: Investment in R&D was key to the profitability of the pharmaceutical sector during the pandemic, evidencing the positive impact of these investments on the financial results of major companies

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Author Biographies

Patricia Granados-González, Rey Juan Carlos University

Lecturer at the Universidad Rey Juan Carlos de Madrid in the Department of Financial Economics and Accounting. Graduate in Business Administration and Management (ADE), Master's Degree in Financial Management and International Accounting and Master's Degree in Financial and Tax Consultancy in the framework of IFRS. Extensive teaching experience in company analysis and accounting. I have taken multiple courses in the teaching and research area, strengthening and improving my knowledge in teaching and research. Published articles and book chapters related to accounting, finance and education.

Elena Lindez Macarro, Rey Juan Carlos University

Lecturer at the Universidad Rey Juan Carlos de Madrid in the Department of Financial Economics and Accounting. Degree in Economics from the University of Granada, Master's Degree in Tax and Financial Consultancy in a National and International Framework from the URJC. He has taken several courses in the area of teaching and research. Currently a doctoral student at the International Doctoral School at the same university.

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Published

2024-11-05

How to Cite

Granados-González, P., & Lindez Macarro, E. (2024). Financial analysis and economic trends in major global pharmaceutical companies: a review of the past five years. European Public & Social Innovation Review, 9, 1–15. https://doi.org/10.31637/epsir-2024-1400

Issue

Vol. 9 (2024)

Section

INNOVATING IN TRADITIONAL AND DISRUPTIVE ECONOMY

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Copyright (c) 2024 Patricia Granados-González, Elena Lindez Macarro

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