Pharma firms reveal stellar 2021 business

New products are helping pharma groups advance ever higher in financial performance, photo Le Toan

Swiss healthcare company Novartis said that net sales were $51.6 billion for 2021, while operating income rose to $11.7 billion, mainly driven by higher sales and lower legal expenses and partly offset by increased marketing and sales, research and development (R&D) investments, and higher amortisation.

In 2021, the company continued to build depth in five core therapeutic areas, strength in technology platforms such as cell therapy and gene therapy, and ensure a balanced geographic footprint.

Commenting on the results, CEO Vas Narasimhan said, “Novartis delivered another year of solid operational performance with mid-single-digit top-line growth, margin expansion, and strong free cash flow. Our in-market growth drivers continue to perform well across geographies, supporting our confidence in our mid and long-term growth outlook.”

Novartis is focused on delivering on its pipeline and key technology platforms, which include over 20 potential assets with significant sales, to be approved by 2026.

The company has made remarkable progress in Vietnam in global clinical trials for 10 years with more than 50 studies and 1,000 local patients in various therapeutic areas. It also recently signed an MoU with the Ministry of Health to help Vietnam access its pandemic response portfolio at zero profit.

Amitabh Dube, country president at Novartis Vietnam, told VIR, “Key priorities for us in 2022 and beyond would be to reimagine medicine and patient care in Vietnam. Our focus remains on triple win-win for patients, the healthcare system, and our employees. Through various initiatives and partnerships, we will work together with various stakeholders to strengthen the healthcare system. We want to go beyond medicine to provide healthcare solutions.”

Similarly, French group Sanofi reported strong 2021 sales and business earnings per share (EPS) growth enabling increased investment in R&D. In particular, its full-year 2021 delivered 7.1 per cent sales growth to €37.76 billion ($41.2 billion).

CEO Paul Hudson said, “Sanofi has closed 2021 with a strong performance in the fourth quarter driven by high double-digit sales growth of Dupixent, which continues to set impressive record sales quarter after quarter. At the same time, vaccines delivered another year of record influenza sales and are on a clear growth path as demonstrated at our recent Vaccines Day.”

Sanofi expects 2022 business EPS to grow at low double-digits in coupon equivalent rate, barring unforeseen major adverse events. Applying average January 2022 exchange rates, the positive currency impact on 2022 business EPS is estimated to increase 2/3 per cent.

Last month, Sanofi and GSK announced that they intend to submit data from both their booster and Phase 3 efficacy trials as the basis for regulatory applications for a COVID-19 vaccine.

In November last year, Sanofi announced plans to add investment in domestic production and expand the scale of production plants for export. The group envisions a multi-year investment plan of around $5.8 million to support the expansion of its manufacturing plant in Vietnam, along with localisation through technology transfer to Sanofi Vietnam.

Sanofi is the only multinational in the pharmaceutical industry operating three factories of WHO-GMP standards in Vietnam, supplying 80 per cent of the company’s volume in the country.

Elsewhere, American multinational Pfizer made nearly $37 billion in sales from its COVID-19 vaccine last year – making it one of the most lucrative products in history – and has forecast another bumper year in 2022, with a big boost coming from COVID-19 pill Paxlovid. The US drugmaker’s overall revenues in 2021 doubled to $81.3 billion, and it expects to make record revenues of $98-102 billion this year.

According to Vietnam’s Ministry of Health, from March to December 4, 2021, the country received over 150 million doses, made up of Pfizer, AstraZeneca, and Moderna. Recently, the Vietnamese government agreed to buy about 22 million doses of Pfizer’s vaccine for children aged 5-11.

Merck, known as MSD outside the United States and Canada, meanwhile announced fourth-quarter worldwide sales of $13.5 billion – an increase of 24 per cent from the same period in 2020. Excluding the impact from foreign exchange, sales grew 23 per cent.

CEO and president Robert M. Davis said, “Our business achieved strong revenue and earnings growth this quarter and for the full year. Throughout 2021, we invested in the discovery, development, production and commercialisation of medicines and vaccines, furthering the sustainability of our business.” MSD anticipates full-year 2022 worldwide sales to be between $56.1 billion and $57.6 billion.

In Vietnam, MSD has launched vaccines to help prevent diseases such as mumps-measles-rubella, varicella, and rotavirus. It is also a leader in oncology, focusing on immunotherapy. Molnupiravir, its oral antiviral COVID-19 medicine that could help keep mild to moderate infected patients away from hospitalisation and prevent disease progression, is included in Vietnam’s pilot programme in 51 cities and provinces.