The world drug market: oligopoly

The major pharmaceutical companies, or large pharmaceutical companies, control the global drug market. Its influence extends to the political currents of the countries in which it operates or even outside of it. It is capable of financing billions of dollars and has enormous development capabilities that also create great investment opportunities. In other words, these companies that work in the humanitarian field have political orientations and are linked to economic interests. It is the most powerful international circle of influence, but also one of the most profitable.

The pharmaceutical giants accumulate profits steadily. The world’s top ten pharmaceutical companies have annual revenues of $ 392 billion of total revenue for the entire global market of $ 1.25 billion, which means that their share amounts to 31% of the total global market. In terms of market value, the world’s top 10 pharmaceutical companies, estimated at $ 2,043 billion, and their revenues represent about 19% of their market value. These companies spend a significant part of their income on what is called “research and development.” In 2019, the application of the top ten companies amounted to about $ 84 billion, or about a fifth of their revenue, but research and development are the main drivers of all revenue and profit, and thanks to them, they can produce and monopolize drug formulations for periods of up to 15 years. This large expenditure on research and development is the main source of his desire to obtain “patents” that allow him to exercise an international monopoly and generate enormous profits.
In a broader context, it can be observed, through the classification of the main companies by country of origin, that revenues are concentrated in certain countries. The United States of America takes a 51% share of the revenues of the top ten companies, followed by Switzerland and Great Britain with 25% and 17%, respectively, and France with 7%.

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