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Top 25 pharma and biopharma report.

01 Novartis

02 Pfizer

03 Sanofi

04 Merck & Co.

05 Roche

06 GlaxoSmithKline

07 Gilead

08 Johnson & Johnson

09 AstraZeneca

10 AbbVie

11 Amgen

12 Eli Lilly & Co.

13 Teva

14 Bristol-Myers Squibb

15 Boehringer Ingelheim

16 Takeda

17 Novo Nordisk

18 Allergan

19 Bayer

20 Merck KGaA

21 Otsuka

22 Biogen

23 Mylan

24 Celgene

25 Daiichi Sankyo
TOP 25 PHARMA AND BIOPHARMA COMPANIES
(Based on 2015 Sales, in $U.S. Millions)

1. Novartis                $49,414
2. Pfizer                  $48,851
3. Sanofi                  $40,486
4. Merck & Co.             $39,498
5, Roche                   $37,667
6. GlaxoSmithKline         $35,463
7. Gilead                  $32,639
8. Johnson & Johnson       $31,430
9. AstraZeneca             $24,708
10. AbbVie                 $22,859
11, Amgen                  $21,662
12. Eli Lilly & Co.        $19,958
13. Teva                   $19,652
14. Bristol-Myers Squibb   $16,560
15. Boehringer Ingelheim   $16,167
16. Takeda                 $16,068
17. Novo Nordisk           $15,801
18. Allergan               $15,071
19. Bayer                  $15,017
20. Merck KGaA             $14,034
21. Otsuka                 $11,993
22. Biogen                 $10,764
23. Mylan                  $9,363
24. Celgene                $9,256
25. Daiichi Sankyo         $8,770

01 NOVARTIS

Headquarters: Basel, Switzerland
twitter.com/novartis
www.novartis.com

HEADCOUNT:              119,000
YEAR ESTABLISHED:       1996
REVENUES:               $49,414                      (-5%)
PHARMA REVENUES:        $30,445                      (-4%)
NET INCOME:             $17,794                      (+73%)
R&D:                    $8,935                       (-2%)

DRUGS APPROVED

DRUG                    INDICATION

Afinitor                advanced gastrointestinal
                        (GI) and lung
                        neuroendocrine tumors
Revolade                chronic immune
                        (idiopathic) thrombocyto
                        penic purpura
Cosentyx                ankylosing spondylitis and
                        psoriatic arthritis
Entresto                heart failure
Farydak                 multiple myeloma
Tafinlar and Mekinist   melanoma
Odomzo                  advanced basal cell
                        carcinoma
Promacta/Revolade       pediatric immune
                        thrombocytopenia

DRUGS PENDING

DRUG                    INDICATION

osentyx                 ankylosing spondylitis,
                        psoriatic arthritis,
                        nonradiographic axial
                        spondyloarthritis
Arzerra                 chronic lymphocytic
                        leukemia (extended
                        treatment), chronic
                        lymphocytic leukemia
                        (relapse), non-Hodgkin's
                        lymphoma
Afinitor/Votubia        nonfunctioning Gl and lung
                        neuroendocrine tumors,
                        tuberous  sclerosis
                        complex seizures
Jadenu Exjade           iron overload
film coated tablet

PHASE IIB AND BEYOND

DRUG                    INDICATION

BKM120                  breast cancer
BYL719                  breast cancer
LCI699                  Cushing's disease
PKC412                  acute myeloid leukemia
Tasigna                 chronic myeloid leukemia
Zykadia                 ALK9+ advanced nonsmall
                        cell lung cancer
Votrient                renal cell carcinoma
                        (adjuvant)
ACZ885                  cardiovascular events
RLX030                  acute heart failure
Entresto                chronic heart failure with
                        preserved ejection
                        fraction, postacute
                        myocardial infarction
QMF149                  asthma
JM112                   immune disorders
llaris                  hereditary periodic fevers
BAF312                  secondary progressive
                        multiple sclerosis
Gilenya                 chronic inflammatory
                        demyelinating
                        polyradiculoneuropathy
AMG 334                 migraine
BYM338                  sporadic inclusion body
                        myositis
EXE844b                 anti-infective
OAP030                  neovascular agerelated
                        macular degeneration
RTH258                  wet agerelated macular
                        degeneration

EARLY RESEARCH PROJECTS

DRUG                    INDICATION

ABL001                  chronic myeloid leukemia
ASB183                  solid and hematologic
                        tumors
LJM716                  solid tumors
PIM447                  hematologic tumors

DRUGS COMING OFF PATENT

DRUG                    INDICATION                   YEAR

Gilenya                 autoimmune disease           2017
Exjade                  iron chelation               2017
Starlix                 blood glucose lowering
                        agent                        2017
Lotrel                  cardiovascular disorders     2017
Exforge                 hypertension                 2017
Diovan                  hypertension                 2017

TOP SELLING DRUGS

                                                     2015
DRUG                    INDICATION                   SALES     (+/-%)

Gleevec/Glivec          oncology                     $4,658    -2%
Gilenya                 autoimmune disease           $2,776    12%
Lucentis                age-related macular
                        degeneration                 $2,060    -16%
Tasigna                 chronic myeloid leukemia     $1,632    7%
Sandostatin             acromegaly                   $1,630    -1%
Afinitor                oncology                     $1,607    2%
Diovan                  hypertension                 $1,284    -45%
Galvus                  diabetes                     $1,140    -7%
Exforge                 hypertension                 $1,047    -25%
Exjade                  iron chelation               $917      -1%


Novartis moved into 2015 having acquired GlaxoSmithKline's (GSK) oncology products, solidifying its position as a global leader in cancer treatments. The two companies also merged their over-the-counter (OTC) businesses into a joint venture that is one of the world's largest consumer healthcare companies, 36.5% owned by Novartis. At the same time, Novartis sold its vaccines business, excluding the influenza business, to GSK. The influenza vaccines business was sold to CSL Limited while the animal health business was sold to Eli Lilly.

Altogether Novartis reported sales of $49.4 billion in 2015. The pharmaceuticals division was responsible for $30.4 billion of total revenue followed by the eye care business with $9.8 billion. The generics business brought up the rear with $9.2 billion of revenue.

As this issue went to press, Novartis unveiled plans to restructure its pharmaceuticals division by creating two business units--Novartis Pharmaceuticals and Novartis Oncology. From July 1, 2016 Novartis will continue to have three focused, customer-facing divisions: Innovative Medicines (formerly the Novartis Pharmaceuticals division), which will include the new Novartis Pharmaceuticals and Novartis Oncology business units; Sandoz, the generics and biosimilar division, which includes the retail generics, anti-infectives and biopharmaceuticals franchises; and Alcon, the eye care devices division, which includes the surgical and vision care franchises.

Paul Hudson has been appointed chief executive officer, Novartis Pharmaceuticals, and Bruno Strigini will become chief executive officer, Novartis Oncology. Both will report directly to Joseph Jimenez, chief executive officer, Novartis. With these changes, David Epstein, division head and chief executive officer, Novartis Pharmaceuticals, has decided to leave the company. The new structure reflects the importance of oncology to the company following the integration of the oncology assets acquired from GSK mentioned above.

GROWTH PRODUCTS LEAD THE CHARGE

In today's pharmaceutical environment, growth products are a vital component to renew product portfolios, while at the same time helping to offset the impact of patent expirations. Across Novartis' divisions, its portfolio of growth products continued to support performance in 2015. Sales of growth products increased 17% to $16.6 billion, or 34% of net sales. In the pharma division, sales of growth products increased 33% and accounted for 44% of net sales, up from 36% in 2014.

Pharmaceutical growth products in 2015 included Gilenya ($2.8 billion, +21%), an oral therapy for multiple sclerosis; Tasigna ($1.6 billion, +16%), a treatment for chronic myeloid leukemia; and Afinitor ($1.6 billion, +10%), a treatment for several types of cancer.

In the generics division, sales of biopharmaceuticals, including biosimilar follow-on versions of complex biologic drugs, surged 39% to $772 million globally.

Geographically, efforts to expand in emerging growth markets such as those in Asia, Africa and Latin America continued to deliver results for Novartis, although growth moderated as overall economic activity slowed in China, Brazil, India and elsewhere. Net sales in emerging markets rose 7% to $12.4 billion, led by Turkey, up 14%, and Brazil, up 12%.

To increase efficiency, an ongoing effort begun in 2010 to optimize its global manufacturing network continued to take shape. In 2015, Novartis announced plans to exit Sandoz manufacturing sites in Frankfurt and Gerlingen, Germany, as well as in Turbhe, India. It also closed a pharmaceuticals division facility in Resende, Brazil, divested an Alcon site in Kaysersberg France, as well as a pharmaceutical site in Taboao da Serra, Brazil, and announced the downsizing of a pharmaceuticals division site in Ringaskiddy, Ireland. To date, 25 sites in Novartis' continuing operations have been, or are being restructured or divested.

INNOVATION ACROSS THE BOARD

Novartis made significant progress in research and development in 2015, with 20 major approvals in key markets and 14 major submissions.

On the cardiovascular front, Novartis had notable success during the year with the approval in the U.S. and EU of Entresto (formerly LCZ696) to treat chronic heart failure with reduced ejection fraction, a condition where the heart muscle does not contract effectively and less oxygen-rich blood is pumped around the body. Entresto is the first new drug in decades to treat this form of heart failure. It is also the only heart failure drug to show a significant mortality benefit in a head-to-head trial against the existing best treatment, enalapril.

In oncology, new cancer drugs gained regulatory approval in 2015. Zykadia, for patients with non-small cell lung cancer, was approved in the EU, a year after its U.S approval. The treatment is from a new class of medicines known as anaplastic lymphoma kinase (ALK) inhibitors.

In September, Novartis received EU approval for Tafinlar + Mekinist, the first combination therapy approved for patients with unresectable or metastatic melanoma with a BRAF V600 mutation--the most aggressive form of skin cancer and one associated with low survival rates. This approval followed two Phase III trials in which the Tafinlar + Mekinist combination showed significant overall survival benefit. The FDA approved the Tafinlar + Mekinist combination in late 2015.

The FDA and the European Commission also approved Novartis' first-in-class multiple myeloma drug Farydak (panobinostat), shown in trials to boost progression-free survival by about 7.8 months.

The company also reached major development milestones during the year with promising pipeline products, including CTL019 in non-Hodgkin's lymphoma, a difficult-to-treat disease. CTL019, a personalized cell therapy for cancer, is being developed with the University of Pennsylvania.

In immunology and dermatology, in early 2015, Novartis received approval in the U.S. and EU for Cosentyx to treat moderate to severe plaque psoriasis. Cosentyx is the first approved human monoclonal antibody that selectively binds to circulating interleukin-17A, which plays an important role in driving the body's immune response in several disorders. In total, 50 countries have approved Cosentyx for the treatment of moderate-tosevere plaque psoriasis. In November, Cosentyx was approved in Europe for the treatment of psoriatic arthritis and ankylosing spondylitis. Novaartis received FDA approval in January 2016.

For biosimilars, Sandoz received FDA approval in March for Zarxio (filgrastim), the first biosimilar approved in the U.S. under the new biosimilar pathway created in the Biologies Price Competition and Innovation Act of 2009. The drug, which stimulates white blood cell production in some cancer patients undergoing chemotherapy, is called Zarzio in Europe and is a biosimilar to Neupogen from Amgen. The FDA and the European Medicines Agency accepted an application for etanercept, a biosimilar to Amgen's Enbrel for several autoimmune diseases, including rheumatoid arthritis and psoriatic arthritis. The FDA also accepted an application for pegfilgrastim, a biosimilar to Amgen's Neulasta, used against infections in patients receiving chemotherapy.

EXPANDING THE PIPELINE

In June 2015 Novartis expanded its neuroscience portfolio with novel angiotensin II type 2 receptor antagonist for the treatment of chronic pain when it acquired Spinifex Pharmaceuticals, a U.S. and Australian privately held development stage company, focused on developing a peripheral approach to treat neuropathic pain.

Novartis bought Melbourne-based Spinifex for $312 million. The acquisition is centered on Spinifex's lead candidate EMA401, a novel angiotensin II type 2 (AT2) receptor antagonist, being developed as a potential first-in-class oral treatment for chronic pain, particularly neuropathic pain, without central nervous system (CNS) side effects.

Positive results from Spinifex's Phase II clinical trial of EMA401 in PHN, a painful condition that develops in some people following herpes zoster (shingles), have been published. Novartis will continue the development of EMA401 and is planning to initiate Phase lib clinical trials in patients with PHN or PDN. Novartis also intends to build on these two key indications and pursue a broad peripheral neuropathic pain (PNP) label for EMA401.

In October 2015 Novartis broadened its immuno-oncology pipeline with the acquisition of Admune Therapeutics and licensing agreements with XOMA and Palobiofarma.

With four candidates currently in clinical trials and five more agents expected to enter the clinic by the end of 2016, Novartis has rapidly built a robust portfolio of programs focused on stimulating the body's immune system to combat cancers that includes novel checkpoint inhibitors, chimeric antigen receptor T-cell (CART) technology, myeloid cell targeting agents, and STING agonists. Currently Novartis' myeloid cell targeting program (MCS-110) and checkpoint inhibitors targeting PD-1 (PDR001), LAG-3 (LAG525), are in Phase I clinical trials. The CART program (CTL019) is in Phase II clinical trials. The anti-TIM-3 program (MGB453) is expected to enter the clinic by the end of 2015 and a STING agonist (MIW815), through collaboration with Aduro Biotech, and GITR agonist are progressing toward first-in-human clinical trials in 2016.

The acquisition of Admune adds an IL-15 agonist program currently in Phase I clinical trials for metastatic cancer. The licensing agreement with Palobiofarma gives Novartis development and commercialization rights to PBF-509, an adenosine receptor antagonist currently in Phase I clinical trials for non-small cell lung cancer. The agreement with XOMA gives Novartis development and commercialization rights to XOMA's TGF-beta antibody programs. All three programs will be explored as monotherapies and in combination with therapies in Novartis' immuno-oncology and targeted therapy portfolios.

In preclinical studies, IL-15 therapies have been shown to activate CD8+, CD4+ memory T cells and Natural Killer (NK) cells that play a critical role in stimulating the immune system. Adenosine and TGFfi both drive immune suppression in the tumor microenvironment, which allows cancer cells to escape immune surveillance, making inhibition of these two pathways an attractive next-generation immuno-oncology approach.

NOVARTIS, AMGEN ENTER NEUROSCIENCE ALLIANCE

Aims to advance Alzheimer's and migraine programs

During the year Novartis and Amgen entered a collaboration in the areas of Alzheimer's disease and migraine using Novartis' differentiated and genetically validated Alzheimer's program directed at genetically predisposed individuals at risk. The collaboration also allows Amgen to focus on the commercialization of its migraine programs in the U.S., Canada and Japan, while leveraging Novartis' commercial capabilities in neuroscience throughout Europe and other markets.

The agreement combines each company's BACE (beta-site APP-cleaving enzyme-1) programs targeting Alzheimer's disease into a global co-commercialization and co-development arrangement. Novartis' Phase 1/2a BACE inhibitor (CNP520) will be the lead molecule and each company's preclinical BACE inhibitor programs will be potential follow-ons.

Amgen is responsible for upfront and milestone payments, and will be responsible for disproportions! R&D costs for an agreed-upon period followed by a 50/50 cost and profit share arrangement. Amgen was the first company to clone the BACE gene and subsequent genetic validation of the BACE target has been confirmed by Amgen subsidiary deCODE Genetics.

Novartis receives global co-development rights and commercial rights outside of the U.S., Canada and Japan to investigative molecules in Amgen's migraine portfolio. This includes AMG 334 in Phase III and AMG 301 in Phase I, as well as an option to commercialize an additional early-stage Amgen molecule. Novartis will fund disproportions! amounts of global R&D expenses for the migraine programs and pay Amgen royalties on sales.
02 PFIZER, INC.

Headquarters: New York, NY
twitter.com@pfizer_news
www.pfizer.com

HEADCOUNT:              73,800
YEAR ESTABLISHED:       1849
REVENUES:               $48,851                      (-2%)
BIOPHARMA REVENUES:     $45,708 billion              (-5%)
NET INCOME:             $6,960                       (-24%)
R&D:                    $7,690                       (-8%)

DRUGS APPROVED

DRUG                    INDICATION

QuilliChew ER           ADHD
Sayana Press            injectable contraceptive
Rapamune                lymphangioleiomyomatosis

DRUGS PENDING

DRUG                    INDICATION

Ibrance                 HR+, HER2- metastatic
                        breast cancer
Xalkori                 ROS1-positive metastatic
                        non-small cell lung cancer
Xeljanz                 severe chronic plaque
                        psoriasis

PHASE IIB AND BEYOND

DRUG                    INDICATION

avelumab                non-small cell lung
                        cancer, gastric cancer,
                        ovarian cancer, renal cell
                        carcinoma, uro-thelial
                        cancer
Ertugliflozin           type 2 diabetes
Ibrance                 early breast cancer
MOD-4023                adult growth hormone
                        deficiency
bococizumab/RN316       hyperlipidemia
Rivipansel              vaso-occlusive crisis
                        associated with sickle
                        cell disease
Tanezumab               OA signs and symptoms,
                        chronic low back pain,
                        cancer pain
Vyndaqel                cardiomyopathy
PF-06834635             metastatic merkel cell
                        carcinoma
Coagulation Factor IX   hemophilia
Dekavil                 rheumatoid arthritis
glasdegib               acute myeloid leukemia
lorlatinib              non-small cell lung cancer

EARLY RESEARCH PROJECTS

DRUG                    INDICATION

PF-06282999             acute coronary syndrome
PF-06293620             type 2 diabetes
PF-06480605             Crohn's disease
PF-06650833             lupus
PF-04958242             schizophrenia
PF-05251749             Alzheimer's disease
PF-06669571             cognitive disorder
PF-04136309             pancreatic cancer
PF-06647020             cancer
PF-06801591             cancer immunotherapy
PF-04447943             sickle cell anemia
PF-06741086             hemophilia
PF-05402536             smoking cessation
PF-06753512             prostate cancer
PF-05206388             age-related macular
                        degeneration

DRUGS COMING OFF PATENT

DRUG                    INDICATION                   YEAR

Spiriva                 COPD                         2016
Vfend                   antifungal                   2016
Zyvox                   bacterial infections         2016
Relpax                  migraine                     2016
Tygacil                 bacterial infections         2016
Effexor XR              anxiety                      2017
Lyrica                  epilepsy, neuropathy         2018

TOP SELLING DRUGS

                                                     2015
DRUG                    INDICATION                   SALES    (+/-%)

Prevnar family          pneumoccal vaccine           $6,245   40%
Lyrica                  epilepsy, neuropathy         $4,839   -6%
Enbrel                  rheumatoid arthritis         $3,333   -13%
Lipitor                 cholesterol                  $1,860   -10%
Viagra                  erectile dysfunction         $1,708   1%
Sutent                  cancer                       $1,120   -5%
Premarln                menopause                    $1,018   -5%
Norvasc                 hypertention                 $991     -11%
Zyvox                   bacterial infections         $883     -35%
Celebrex                pain                         $830     -69%


Pfizer was at the center of the biggest story to rock the pharma world in 2015 when it was announced in November that it and Allergan would merge in a $160 billion deal, catapulting the combined company past Novartis atop the pharma leader boards.

But, the inversion deal didn't happen. It was called off at the last minute after a change in U.S. tax law.

If it had gone through Allergan would have acquired Pfizer and the two businesses would be combined under Allergan pic, to later be renamed Pfizer pic. Although on paper Allergan would be buying Pfizer, Pfizer would have retained control of the company with Pfizer stockholders holding 56% of the combined company and Allergan shareholders owning 44%.

02 PFIZER

In addition, the combined company was expected to maintain Allergan's headquarters in Ireland creating a huge tax incentive for Pfizer. The U.S. corporate tax rate is 35%, while Ireland's is just 12.5%. Pfizer's global operational headquarters would be in New York and its principal executive offices in Ireland.

However, the U.S. Treasury Department introduced rules aimed at reducing the incentives for companies to carry out inversions and taking advantage of another nation's lower tax rate.

According to Pfizer, the change in rules was impactful enough to reduce the advantages expected from the merger. Pfizer paid Allergan $150 million to cover expenses related to calling off the deal.

If it still has its eyes set on becoming the largest pharma giant in the world, they're going to have to wait for the time being. That being said, 2015 wasn't just about the failed Allergan deal.

Pfizer gained a portfolio of biosimilars and sterile injectable products when it bought Hospira for $17 billion. Hospira has built a reputation as a leading provider of injectable drugs and infusion technologies, as well as biosimilars. The global market value for both generic sterile injectables and biosimilars is expected to grow, estimated to be $70 billion and $20 billion in 2020, respectively.

The acquisition expands Pfizer's portfolio of sterile injectable pharmaceuticals with Hospira's generic sterile injectables product line, including acute care and oncology injectables, with a number of differentiated presentations. Pfizer's branded sterile injectables include anti-infectives, anti-inflammatories and cytotoxics. Pfizer also plans to employ its commercial capabilities, global scale, and scientific and development capabilities to significantly expand Hospira's portfolio of marketed biosimilars, including Retacrit to treat anemia associated with chemotherapy, and Nivestim, a biosimilar version of filgrastim (GCSF), to treat neutropenia.

In another deal, Pfizer acquired a minority equity interest in AM-Pharma and secured an exclusive option to acquire the company. AM-Pharma is a privately held Dutch biopharma company focused on the development of recombinant human alkaline phosphatase (recAP) for inflammatory diseases.

Pfizer made an upfront payment of $87.5 million for the minority interest and exclusive option, with additional potential payments of up to $512.5 million upon the potential launch of any product from this agreement.

Pfizer may exercise the option upon completion of a Phase II trial of recAP in the treatment of Acute Kidney Injury (AKI) related to sepsis, for which there are no drugs currently approved. Results from the Phase II trial are expected in 2H16.

During the year Pfizer also acquired a controlling interest in Redvax GmbH, a spin-off from Redbiotec AG, a privately held Swiss biopharma company, gaining access to a preclinical human cytomegalovirus (CMV) vaccine candidate, as well as intellectual property and a technology platform related to a second, undisclosed vaccine program. CMV is a herpes virus, infecting 50-90% of the adult population, with a majority remaining asymptomatic. A large segment of young adults, especially women of childbearing age, are at high risk of CMV infection during pregnancy and of passing the infection on to the unborn child. One out of every five children born with CMV infection may experience hearing loss and severe neurologic disorders.

In another transaction, Pfizer entered into an agreement with GSK to acquire its quadrivalent meningitis ACWY vaccines, Nimenrix and Mencevax, for a total consideration of approximately $130 million. Nimenrix is a single dose meningococcal ACWY-TT (tetanus toxoid) conjugated vaccine designed to protect against Neisseria meningitidis, an uncommon but highly contagious disease that can lead to disability and death. It was launched three years ago and is indicated for all age groups one year and older. Nimenrix is currently approved in 61 countries, with registrations under review in another 18 countries across Africa, Asia, Eastern Europe and the Middle East. Mencevax is a single-dose meningococcal ACWY unconjugated polysaccharide vaccine used to control outbreaks of meningococcal infection and for travelers to countries where the disease is endemic. It's indicated for use across all age groups from two years of age, and is currently registered and approved in 79 countries across Africa, Asia, Australia, Europe, Latin America, Middle East and New Zealand.

SEGMENT AND PRODUCT PERFORMANCE

Total revenues for Pfizer were $48.9 billion in 2015, driven by the performance of several key products in developed markets, including the continued strong uptake of Prevnar 13, Ibrance, Eliquis, Lyrica and Xeljanz. Direct product sales of more than $1 billion were reported for seven products in 2015.

Pfizer operates through two distinct businesses: an Innovative Products business and an Established Products business. The Innovative Products business is composed of two operating segments--the Global Innovative Pharmaceutical segment (GIP) and the Global Vaccines, Oncology and Consumer Healthcare (VOC).The Established Products business consists of the Global Established Pharmaceutical segment (GEP).

GIP recorded sales of $13.9 billion in 2015. Key therapeutic areas include inflammation/immunologycardiovascular/metabolic, neuroscience/pain and rare diseases and include leading brands, such as Xeljanz, Eliquis, Lyrica (U.S. and Japan), Enbrel (outside the U.S. and Canada) andViagra (U.S. and Canada).

VOC netted $12.8 billion in sales and focuses on the development and commercialization of vaccines and products for oncology and consumer healthcare manufacturing and marketing several well known, over-the-counter (OTC) products..

GEP is the largest of Pfizer's business areas with $21.5 billion in revenue and includes legacy brands that have lost or will soon lose market exclusivity in both developed and emerging markets, branded generics, generic sterile injectable products, biosimilars and infusion systems. Hospira and its commercial operations are now included within GEP.

Geographically, in the U.S., revenues increased $2.6 billion, or 14%, in 2015, compared to 2014, reflecting, among other things the performance of several key products, including Prevnar 13 primarily in adults, up approximately $1.9 billion; Ibrance, which was launched in the U.S. in February 2015, up approximately $720 million; as well as Lyrica (GIP), Eliquis, Xeljanz, Viagra (GIP) and Nexium 24HR, collectively up approximately $1.0 billion in 2015.

Performance was offset by losses of exclusivity and associated multi-source generic competition for Celebrex in the U.S. in December 2014, down approximately $1.6 billion in 2015; the loss of exclusivity for Zyvox and Rapamune, as well as the termination of the Spiriva co-promotion collaboration, collectively, down approximately $620 million in 2015; and the performance of Lipitor and BeneFIX, collectively, down approximately $160 million in 2015.

In Pfizer's international markets, revenues decreased $3.4 billion, or 11%. Total share of international revenues also dropped in the year from 62% the prior year to 56% in 2015.

Emerging markets represented continued strong operational growth primarily from the Innovative Products business, including Prevenar and Enbrel, among other products, and Lipitor, up approximately $600 million in 2015; higher revenues in developed markets for Eliquis and Lyrica (GIP), as well as from vaccines acquired in December 2014 from Baxter in Europe, collectively, up approximately $590 million in 2015.

Business was offset by lower revenues in developed markets for Lyrica (GEP), Celebrex, Inspra and Viagra (GEP) as a result of the loss of exclusivity, as well as the performance of Lipitor and Norvasc in developed markets, and Zosyn/Tazocin in emerging markets, collectively down approximately $1.0 billion in 2015.

R&D COLLABORATIONS

During the year Pfizer and Adaptive Biotechnologies entered into a translational research collaboration to leverage next-gen sequencing of the adaptive immune system to advance Pfizer's immuno-oncology pipeline. The companies will combine drug development and platform technology biomarker expertise to identify patients who may benefit from immunotherapy.

Adaptive's immunosequencing platform measures the patient's immune-cell repertoire, providing a translational tool to accelerate Pfizer's immuno-oncology biomarker and drug development programs. Adaptive will work with Pfizer to apply its platform technology, bioinformatics capability, and scientific expertise.

Merck KGaA and Pfizer entered into a collaboration Syndax Pharmaceuticals to evaluate avelumab, an investigational fully human anti-PD-L1 IgGl monoclonal antibody, in combination with Syndax's entinostat, an investigational oral small molecule that targets immune regulatory cells (myeloid-derived suppressor cells and regulatory T-cells), in patients with heavily pre-treat ed, recurrent ovarian cancer. Avelumab is currently being investigated across a broad range of tumor types under the alliance between Merck KGaA and Pfizer. This is an exclusive agreement with Syndax to study the combination of these two compounds in ovarian cancer. Syndax will be responsible for conducting the Phase Ib/II trial.

Pfizer and BIND Therapeutics extended the terms of their global collaboration through to create Accurins that optimize two of Pfizer's targeted oncology drugs. The collaboration was established in April 2013 under which Bind employs its nanomedicine platform to develop targeted and programmable therapeutics known as Accurins.

Pfizer has the exclusive option to pursue development and commercialization of the Accurins selected, at which point Pfizer will have responsibility for development and commercialization of the selected Accurins. Both companies will work together on preclinical research. BIND has the potential to receive as much as $88.5 million based on specified development and regulatory milestones, as well as $110 million for specified commercial events and royalties for each Accurin commercialized.

PFIZER CONSOLIDATES RESEARCH LABS

Will create a single Pfizer Cambridge campus for discovery and development efforts

Pfizer has unveiled plans to expand its lease agreement with a subsidiary of Massachusetts Institute of Technology, creating a unified Pfizer campus in Kendall Square. With this expansion, Pfizer has leased the full 500,000 square feet at 610 Main Street in Kendall Square. This space will continue to house the R&D activities that relocated to 610 Main Street in 2014, and will enable the consolidation of Pfizer's three other leased spaces in Cambridge into the one campus.

This most recent lease addition secures an added 130,000 square feet of space for potential expansion in the future and will be available for sub-tenancy in 2017. Once the three remote sites are consolidated, 610 Main Street will house approximately 1,000 Pfizer employees.

Pfizer's R&D efforts in Cambridge will continue to focus on rare diseases, cardiovascular and metabolic disease, inflammation and immunology, neuroscience, and advanced biotherapeutic technologies. The expanded 370,000-plus square foot KSQ research center will help foster a strong laboratory culture, with experimentation and collaboration in the heart of Cambridge's Kendall Square innovation hub, featuring state-of-the-art labs and an open design to help foster breakthrough productivity and innovation that will potentially advance Pfizer's pipeline.

The Pfizer Cambridge campus provides more laboratory capabilities in proximity to one another; opportunities for collaborations between Pfizer and smaller start-ups and/or biotechs; the ability to coalesce functions from across Pfizer R&D currently spread across Cambridge; and close proximity to new companies.
03 SANOFI

Headquarters: Paris, France
twitter.com/sanofi
www.sanofi.com

HEADCOUNT:              115,631
YEAR ESTABLISHED:       2004
REVENUES:               $40,486                    (-1%)
NET INCOME:             $8,053                     (+8%)
R&D:                    $5,863                     (-5%)

DRUGS APPROVED

DRUG                    INDICATION

Dengvaxia               tetravalent dengue
                        vaccine
Praluent                hypercholesterolemia
Toujeo                  type 1 and type 2
                        diabetes

DRUGS PENDING

DRUG                    INDICATION

sarilumab               moderate-to-severe
                        rheumatoid arthritis
PR5i                    DTP-HepB-Polio-Hib
lixisenatide            type 2 diabetes
LixiLan                 type 2 diabetes
VaxiGrip QIV IM         quadrivalent inactivated
                        influenza vaccine

PHASE IIB AND BEYOND

DRUG                    INDICATION

SAR342434               type 1 and type 2
                        diabetes
sotagliflozin           type 1 diabetes
sarilumab               rheumatoid arthritis
dupilumab               atopic dermatitis,
                        asthma
patisiran               familial amyloidotic
                        polyneuropathy
revusiran               familial amyloidotic
                        cardiomyopathy
Jevtana                 metastatic prostate
                        cancer (IL)
Clostridium difficile   toxoid vaccine
VaxiGrip QIV IM         influenza vaccine
                        (6-35 months)
Pediatric pentavalent   DTP-Polio-Hib
  vaccine
Men Quad TT             2nd generation
                        meningococcal ACYW
                        conjugate vaccine

EARLY RESEARCH PROJECTS

DRUG                    INDICATION

GZ402668                relapsing multiple
                        sclerosis
GZ389988                osteoarthritis
SAR425899               type 2 diabetes
SAR566658               solid tumors
SAR439684               cancer
GZ402666                Pompe disease
SAR339375               Alport syndrome
fitusiran               hemophilia
SAR228810               Alzheimer's disease
SAR439152               hypertrophic
                        cardiomyopathy
Streptococcus           meningitis & pneumonia
  pneumonia             vaccine
Herpes Simplex          HSV-2 vaccine
Virus Type 2
UshStat                 Usher syndrome 1B

DRUGS COMING OFF PATENT

DRUG                    INDICATION                 YEAR

Eloxatin                cancer                     2016
Nasacort AQ             allergy                    2016

TOP SELLING DRUGS

                                                   2015
DRUG                    INDICATION                 SALES    (+/-%)

Lantus                  diabetes                   $6,981   -9%
Plavix                  heart attack, stroke       $2,107   -7%
Lovenox                 thrombosis                 $1,878   -9%
Polio/Pertussis/        vaccines                   $1,473   5%
Hib Vaccines
Influenza               vaccines                   $1,444   1%
Vaccines
Renvela/                hypocalcemia               $1,022   23%
Renagel
Aprovel/Avapro          hypertention               $832     -6%
Cerezyme                Gaucher disease            $827     -5%
Myozyme/                Pompe disease              $710     8%
Lumizyme
Meningitis/             vaccines                   $671     21%
Pneumonia
Vaccines


After a bit of a turbulent close to 2014 that saw the ouster of former chief executive officer Chris Viehbacher, who was fired amid whistleblower lawsuit claims that the company was involved in a kickback scheme, Sanofi brought in Olivier Brandicourt as the new chief executive to right the ship. With nearly 30 years experience in the pharma industry and the former chair of Bayer Healthcare's management board, Mr. Brandicourt led the French pharma giant to $40.5 billion in revenue in 2015.

Pharmaceutical segment sales rose by 7.5% and includes Genzyme operations as well as a broad range of prescription medicines, generic medicines, and consumer health products.

Sales for the diabetes division were down nearly 7% mainly due to lower sales of Lantus in the U.S., where sales dropped 17%. Outside the U.S., the division posted 9% growth driven by emerging markets, which were up 16%. Western Europe posted more modest sales growth of 3% due to the entry of a biosimilar of insulin glargine into the market in the second half of the year. As a result, sales for the glargine franchise, which includes Lantus and Toujeo, a new-generation basal insulin launched in 2015, fell by 8.5%.

In the oncology business sales were down 1.9%. The company says solid performances from Jevtana and Mozobil were offset by the impact of generic versions of Taxotere in Japan. Sales of Jevtana were up 9.5% driven by a strong performance in the U.S. and Japan, where the product was launched in September 2014. Mozobil sales were up 16% mainly on sales growth in the U.S. Taxotere saw net sales fall sharply by 22% because the product is facing competition from generics in emerging markets and in Japan.

The Genzyme business posted sales growth of nearly 30% driven by a solid performance from the multiple sclerosis franchise. Aubagio sales surged by 78% while the ongoing launch of Lemtrada continued to yield very positive results.

Sales for the consumer health care business rose by 3% on strong sales from Allegra OTC in the U.S. following the launch of a new formulation. The generics business posted sales growth of 7.6% in 2015 driven by increased sales of the authorized generic of Lovenox.

In 2015, net sales for the Vaccines segment, which includes the Sanofi Pasteur MSD joint venture with Merck, were up 19%.

Within the vaccines segment sales of Polio/Pertussis/Hib vaccines rose by 8% boosted by the performances of Pentaxim and Hexaxim. Sales in emerging markets grew strongly by 33% due to sales of Pentaxim and polio vaccines in China.

Sales of influenza vaccines rose by 2% with strong growth in the U.S., while in emerging markets sales declined by 15%. Sales of meningitis/pneumonia vaccines climbed 17%. Adult booster vaccines net sales increased by 10%.

INNOVATION ALLIANCES

In 2015 Sanofi announced a number of strategic alliances designed to drive product innovation and business growth. On the cancer front, Regeneron Pharmaceuticals and Sanofi entered into a immuno-oncology global collaboration to discover, develop and commercialize new antibody cancer treatments. The companies will jointly develop a programmed cell death protein 1 (PD-1) inhibitor currently in Phase I and plan to initiate trials in 2016 with new preclinical therapeutic candidates. Regeneron received a $640 million upfront, and the companies will invest $1 billion for discovery through proof of concept/Phase IIa of monotherapy and novel combinations of immuno-oncology antibody candidates to be funded 25% by Regeneron ($250 million) and 75% by Sanofi ($750 million). The companies have also committed to equally fund an additional $650 million for development of REGN2810, a PD-1 inhibitor. Also, Sanofi will pay Regeneron a one-time milestone of $375 million should sales of a PD-1 product and any other collaboration antibody exceed $2 billion in any consecutive 12-month period.

In another cancer deal, Sanofi and BioNTech A.G. entered into a multi-year exclusive collaboration and license agreement to discover and develop as many as five cancer immunotherapies, each consisting of a mixture of synthetic messenger RNAs (mRNAs).

BioNTech received $60 million in upfront and near-term milestone payments, and is eligible to receive more than $300 million in development, regulatory and commercial milestones per product, as well as royalties on sales. Also, BioNTech has the option to co-develop and co-commercialize two of the five mRNA therapeutics products with Sanofi in the EU and U.S.

Leveraging Sanofi's global oncology footprint and scientific expertise, BioNTech will combine the use of its mRNA technology platform to develop immune-stimulating pharmaceuticals. As part of this effort, BioNTech will utilize its mRNA formulation technology, which enables targeted mRNA delivery in vivo, to generate novel cancer immunotherapies. BioNTech will also supply part of the mRNA material needed for development activities from its GMP manufacturing unit.

Also in the field of cancer research, Evotec AG and Apeiron Biologies AG, a biotech company with a focus on immunological approaches to treat cancer, formed a strategic collaboration with Sanofi to develop novel small molecule-based cancer immunotherapies.

This collaboration includes major research and development efforts to advance a first-in-class small molecule approach to treat solid and haematopoietic cancers by enhancing the anti-tumor activity of human lymphocytes. Based on Evotec's technological expertise and Apeiron Biologies' immunological know-how, the collaboration will also focus on the identification of novel small molecule hits and their targets for next-generation therapies in immuno-oncology, which are expected to complement the current offerings of checkpoint inhibitors.

The collaboration is set up as an initiative to support long-term pipeline building for Evotec, Apeiron Biologies and Sanofi. All three companies will make contributions to this collaboration in terms of scientific expertise, technological platforms and resources.

The agreement triggers two years of research payments for Evotec and Apeiron Biologies with the opportunity to receive preclinical, clinical, regulatory and commercial milestones which could total over 200 million [euro] as well as royalties upon commercialization.

Evotec and Sanofi also formed a collaboration in the field of diabetes. The goal of this collaboration is to develop a beta cell replacement therapy based on functional human beta cells derived from human stem cells. In addition, Sanofi and Evotec will also use human beta cells for high-throughput drug screening to identify beta cell active small molecules or biologies. The agreement triggers an upfront payment of 3 million [euro], potential preclinical, clinical, regulatory and commercial milestones, which could total over 300 million [million] as well as significant royalties and research payments.

Also in diabetes, Sanofi and Lexicon Pharmaceuticals entered into a collaboration and license agreement for the development and commercialization of sotagliflozin, an investigational new oral dual inhibitor of sodium-glucose cotransporters 1 and 2 (SGLT-1 and SGLT-2), which could be a potential treatment option for people with diabetes. The developmental medicine sotagliflozin (LX4211) is currently being studied in two Phase III trials in type 1 diabetes, which are expected to report top-line results during the second half of 2016. Phase III trials in type 2 diabetes are expected to begin in 2016.

Sotagliflozin could have the potential to become an important option among oral anti-diabetic medicines and provide a strong rationale for the further investigation of this compound as a treatment for people with diabetes. Lexicon received an upfront payment of $300 million and is eligible to receive development, regulatory and sales milestone payments of up to $1.4 billion. Lexicon is also entitled to tiered, escalating double digit percentage royalties on net sales of sotagliflozin.

During the year Adimab entered a multi-target discovery and optimization collaboration with Sanofi to use its platform to generate bispecific molecules against multiple targets. Sanofi has the right to develop and commercialize any resulting therapeutic antibodies and bispecifics. Adimab receives an undisclosed upfront payment, research fees and technical milestones. Also, for each target, Sanofi will have the option to exclusively license antibodies and bispecifics generate during the collaboration, at which point, Adimab would receive license fees, clinical milestones and royalties on product sales.

Sanofi and Boehringer Ingelheim entered an alliance to extend Sanofi's manufacturing capacity network for therapeutic monoclonal antibodies. Boehringer's cell culture operations will provide contract manufacturing capacities to support the production of Sanofi's biologies pipeline. Under the agreement, Sanofi will have access to Boehringer's capabilities to transfer and manufacture therapeutic monoclonal antibodies for global market supply. Initial product transfers will begin in early 2015.

Sanofi also entered into a collaboration with Catalent Pharma Solutions to implement Catalent's SMARTag technology in the development of next generation antibody-drug conjugates (ADCs). Catalent will develop site-specifically modified antibody conjugates using Sanofi's antibodies, enabling Sanofi to evaluate site selective payload conjugation in order to enhance ADC pharmacokinetics, efficacy and safety. The collaboration involves teams at Sanofi and Catalent's facility in Emeryville, CA.

SANOFI REVEALS NEW GLOBAL BUSINESS UNIT STRUCTURE

Three new global business units for general medicines and emerging markets, specialty care, and diabetes and cardiovascular

In July of last year Sanofi released plans to create five global business units: General Medicines and Emerging Markets; Specialty Care; Diabetes and Cardiovascular; Sanofi Pasteur; and Merial.

"The new organization simplifies and focuses Sanofi to optimize growth," said Olivier Brandicourt, chief executive officer, Sanofi. This is a necessary step for ensuring that Sanofi's new medicines and vaccines continue to build on our heritage of providing innovative healthcare therapies."

The General Medicines and Emerging Markets global business unit is led by Peter Guenter and consists of Sanofi's established products, generics, consumer healthcare, and all pharmaceutical businesses in emerging markets.

The Specialty Care global business unit, called Sanofi Genzyme, is led by David Meeker and consists of Sanofi's medicines in rare diseases, multiple sclerosis, oncology and immunology, including the two, investigational biologies, sarilumab and dupilumab.

The Diabetes and Cardiovascular global business unit is led by Pascale Witz and consists of Sanofi's diabetes care medicines as well as cardiovascular, including Praluent (alirocumab), which is currently under review by the U.S. FDA and the European Medicines Agency (EMA).

Sanofi Pasteur and Merial are both global business units and will continue to manage their current portfolios of vaccines and animal health products. Olivier Charmeil will continue to lead Sanofi Pasteur and Carsten Hellmann will continue to lead Merial.

The composition of the executive committee remains unchanged and the leadership roles announced above became effective January 1, 2016.
04 MERCK

Headquarters: Whitehouse Station, NJ
twitter.com/Merck
www.merck.com

HEADCOUNT:                68,000
YEAR ESTABLISHED:         1889
REVENUES:                 $39,498                      (-6%)
PHARMA REVENUES:          $34,782                      (-3%)
NET INCOME:               $4,442                       (-63%)
R&D:                      $6,704                       (-7%)

DRUGS APPROVED

DRUG                      INDICATION

Emend for injection       chemotherapy induced
                          nausea and vomiting,
                          pediatric
Zepatier                  chronic hepatitis C virus
Keytruda                  advanced melanoma,
                          non-small cell lung cancer
Bridion                   reversal of neuromuscular
                          blockade

DRUGS PENDING

DRUG                      INDICATION

Zinplava                  Clostridium difficile
                          Infection
Keytruda                  head and neck cancer
V419                      pediatric hexavalent
                          combination vaccine

PHASE IIB AND BEYOND

DRUG                      INDICATION

verubecestat              Alzheimer's disease
anacetrapib               atherosclerosis
relebactam                bacterial infection
Keytruda                  bladder cancer, multiple
                          myeloma, breast
                          cancer, colorectal cancer
letermovir                CMV prophylaxis in
                          transplant patients
MK-8342B                  contraception
ertuglifiozin+metformin   diabetes
V920                      Ebola vaccine
Sivextro                  HABP/VABP bacterial
                          pneumonia
V212                      herpes zoster
doravirine                HIV
odanacatib                osteoporosis

EARLY RESEARCH PROJECTS

DRUG                      INDICATION

rVSV-EBOV                 Ebola vaccine
V160                      cytomegalovirus
V114                      pneumococcal infections
MSC1936369B               solid tumors, cancer
MK-3475                   clear cell renal carcinoma
OTX015/MK-8628            cancer

DRUGS COMING OFF PATENT

DRUG                      INDICATION                   YEAR

Zetia                     cholesterol                  2016
Cancidas                  antifungal                   2016
Ivanz                     infections                   2016
Cubicin                   antibiotic                   2016
Asmanex Twisthaler        asthma                       2017
Dulera                    asthma                       2017
Nasonex                   allergic rhinitis            2017
Emend                     chemotherapy induced         2018
                          nausea and vomiting

TOP SELLING DRUGS

                                                       2015
DRUG                      INDICATION                   SALES    (+/-%)

Januvia/Janumet           diabetes, obesity            $6,014   0%
Zetia/Vytorin             cholesterol                  $3,777   -9%
Gardasil                  HPV vaccine                  $1,908   10%
Remicade                  rheumatoid arthritis         $1,794   -24%
Isentress                 HIV/AIDS                     $1,511   -10%
Proquad, MMR,             vaccines                     $1,505   8%
  and Varivax
Cubicin                   antibiotic                   $1,127   n/a
Singular                  asthma                       $931     -15%
Nasonex                   allergic rhinitis            $858     -22%
Keytruda                  cancer                       $566     n/a


Due to the ongoing impacts of the loss of market exclusivity for several products, worldwide sales for Merck dropped 6% to $39.5 billion in 2015. However, the company reported that these unfavorable impacts were partially offset by volume growth in oncology, diabetes, women's health and vaccine products.

Sales in the U.S. were $17.5 billion, an increase of 3%, driven primarily by the acquisition of Cubist Pharmaceuticals, as well as higher sales of the company's lung cancer treatment Keytruda, Gardasil/Gardasil 9, Januvia/Janumet, Zetia, a cholesterol modifying medicine, and higher third-party manufacturing sales.

International sales declined 13% to $22 billion in 2015 due mostly to unfavorable foreign exchange across all regions. Lower sales in the pharmaceutical segment reflected declines in Europe and Japan, partially offset by growth in the emerging markets. Sales in Europe declined 19% to $7.7 billion because of bad foreign exchange and lower sales of Remicade, as well as lower sales of products for the treatment of HCV and from product divestitures and ongoing generic erosion. Sales in Japan declined 23% to $2.6 billion. Again aside from foreign exchange, the sales decline was largely driven by product divestitures and the ongoing impacts of the loss of market exclusivity for several products, including Cozaar and Hyzaar, treatments for hypertension, as well as lower sales of Peglntron and Januvia.

Emerging market revenue also dropped but not as sharply as Europe and Japan. Sales were $7.3 billion, a decline of 6%.Total international sales for Merck represented 56% of total sales in 2015.

ON THE M&A FRONT

At the tail end of 2014 Merck struck a major deal when it acquired Cubist Pharmaceuticals for $9.5 billion. Cubist develops therapies to treat infections caused by a broad range of increasingly drug-resistant bacteria. Its antibiotic Cubicin is the only approved once-a-day therapy for both S. aureus bacteremia and complicated skin and skin structure infections (cSSSI). In addition, Cubist has a late-stage pipeline of anti-infective medicines, including Zerbaxa, which at the time of the deal was pending FDA approval. Merck said the deal added more than $1 billion of revenue to its 2015 base.

In another transaction, Merck acquired cCAM Biotherapeutics, a privately held biopharmaceutical company focused on the discovery and development of novel cancer immunotherapies. Merck made an upfront payment of $95 million, with an additional $510 million to be paid when certain clinical development, regulatory and commercial milestones are met.

The acquisition provides Merck with several early immunotherapy candidates including cCAM Biotherapeutics' lead pipeline candidate, CM-24--a novel monoclonal antibody (mAb) targeting the immune checkpoint protein CEACAM1 that is currently being evaluated in a Phase I study for the treatment of advanced or recurrent malignancies, including melanoma, non-small-cell lung, bladder, gastric, colorectal, and ovarian cancers. Based on the transaction, cCAM Biotherapeutics, headquartered in Israel, will become a wholly owned subsidiary of Merck and continue to advance the development of CM-24 in its ongoing Phase I clinical trial. cCam was originally established under the Israeli Office of Chief Scientist's incubators program.

At the very beginning of 2016 Merck acquired IOmet Pharma, a drug discovery company focused on the development of medicines for the treatment of cancer, with a particular emphasis on the fields of cancer immunotherapy and cancer metabolism.

BIO FOCUSED

During the year Merck entered into a multi-year collaboration with NGM Biopharmaceuticals to research, discover, develop and commercialize novel biologic therapies across a wide range of therapeutic areas. The collaboration includes multiple drug candidates currently in preclinical development at NGM, including NP201 being evaluated for the treatment of diabetes, obesity and nonalcoholic steatohepatitis (NASH). NGM will lead R&D for existing preclinical candidates and pursue other discovery stage programs. Merck will have the option to license any resulting NGM programs following human proof of concept trials for global product development and commercialization.

NGM received $94 million upfront and Merck purchased a 15% equity stake in NGM for $106 million. Merck said it will commit as much as $250 million to fund NGM's efforts under the initial five-year term of the collaboration, with the potential for additional funding.

Prior to Merck initiating a Phase III study for a licensed program, NGM may elect to receive milestone and royalty payments or to participate in a global cost and revenue share arrangement of as much as 50%. NGM also has the option to participate in the co-promotion of any co-funded program in the U.S. NGM's lead program, NGM282, currently in clinical development for primary biliary cirrhosis (PBC) and NASH, are not subject to the option under the Merck collaboration.

ADVANCING THE PIPELINE

During 2015, Merck continued to execute its research and development focused-strategy, advancing its pipeline and commercial portfolio.

Merck is focusing its research efforts on the therapeutic areas that it believes can make the most impact on addressing critical areas of unmet medical need, such as cancer, hepatitis C, cardiometabolic disease, resistant microbial infection and Alzheimer's disease.

During 2015, the company continued to make strides in its late-stage pipeline. MK-6072, bezlotoxumab, is an investigational antitoxin for the prevention of Clostridium difficile (C. difficile) infection recurrence that is currently under review with the FDA and the European Medicines Agency (EMA). MK-1293, an insulin glargine candidate for the treatment of patients with type 1 and type 2 diabetes being developed in a collaboration, is also under review in the EU, as is Zepatier. Keytruda is under review in the EU for the treatment of NSCLC.

In addition to Phase III programs for Keytruda in the therapeutic areas of bladder, breast, colorectal, gastric, head and neck, multiple myeloma, and esophageal cancers, the Company also has more than 10 candidates in Phase III clinical development in its core therapeutic areas, as well as other areas with significant potential, including MK-3102, omarigliptin, an investigational once-weekly dipeptidyl peptidase-4 (DPP-4) inhibitor in development for the treatment of adults with type 2 diabetes; MK-0822, odanacatib, an oral, once-weekly investigational treatment for patients with osteoporosis; MK-8835, ertugliflozin, an investigational oral sodium glucose cotransporter-2 (SGLT2) inhibitor being evaluated alone and in combination with Januvia (sitagliptin) and metformin for the treatment of type 2 diabetes; and MK-8237, an investigational allergy immunotherapy tablet for house dust mite allergy. Merck expects to submit applications for regulatory approval in the United States for each of these candidates, as well as MK-1293 described above, in 2016.

As a result of continued portfolio prioritization, the company is out-licensing or discontinuing selected late-stage clinical development assets. During 2015, the company out-licensed MK1602 and MK-8031, investigational small molecule oral calcitonin gene-related peptide (CGRP) receptor antagonists, which are being developed for the treatment and prevention of migraine.

[ILLUSTRATION OMITTED]

KEYTRUDA LEADS THE WAY

In terms of product approvals, Merck received several in 2015 that include expanded indications for Keytruda, which was initially approved by the FDA in September 2014 for the treatment of advanced melanoma in patients with disease progression after other therapies. Merck announced during the year that the lung cancer treatment is launching in more than 40 markets, including in the EU.

In 2015, Merck achieved multiple additional regulatory milestones for Keytruda including accelerated approval from the FDA for the treatment of patients with metastatic NSCLC whose tumors express PD-L1 as determined by an FDA-approved test, and who have disease progression on or after platinum-containing chemotherapy. In addition, the FDA approved an expanded indication for Keytruda to include the first-line treatment of patients with unresectable or metastatic melanoma.

Additionally, in 2015, the European Commission approved Keytruda for the treatment of advanced (unresectable or metastatic) melanoma in adults. The Keytruda clinical trials program currently includes more than 30 tumor types in more than 200 clinical trials, including over 100 trials that combine Keytruda with other cancer treatments.

The company is also launching Zepatier and Bridion in the United States, as well as U.S. FDA approval for Bridion (sugammadex) Injection, a medication for the reversal of two types of neuromuscular blocking agents used during surgery.

GROWTH IN HOSPITAL ACUTE CARE MARKET

Merck's strategically focused initiative looks to meet unmet needs in the hospital setting

When Merck announced that it was buying Cubist Pharmaceuticals for $9.5 billion, it signaled that the acute care market within the larger hospital setting was becoming a top priority for the pharma giant. Hospitals are a central hub for healthcare delivery around the world and currently represent 25 percent of overall healthcare spend. At the time of the deal Merck said it was an optimal time to significantly grow its hospital acute care presence because of the positive regulatory and reimbursement trends in the hospital setting and the increasingly important role that hospitals are expected to provide in healthcare overall.

For more than 20 years, Cubist has been a global leader in antibiotics and has built a strong portfolio of both marketed and late-stage pipeline medicines to treat serious and potentially life-threatening infections caused by a broad range of increasingly drug-resistant bacteria. Cubist's antibiotic Cubicin is the only approved once-a-day therapy for both S. aureus bacteremia and complicated skin and skin structure infections (cSSSI). It has been used to treat more than two million patients and continues to be an important therapy in the acute care environment. Cubist's in-line and late-stage pipeline of anti-infective medicines, including Zerbaxa, which is pending approval from the U.S. FDA, will enhance Merck's hospital acute care business in a variety of therapeutic areas, including Gram-positive and Gram-negative multi-drug resistant infections.

Merck said Cubist complements its strategy and the global initiative it launched last year, particularly in the area of its commercial focus on key therapeutic areas that have the potential to deliver the greatest return on investment. With the company's investment in anti-infectives as well as its customer-focused operating model, Merck identified the hospital acute care segment as one of the company's key priority areas to address significant unmet medical needs.
05 ROCHE

Headquarters: Basel, Switzerland
twitter.com/Roche
www.roche.com

HEADCOUNT:               91,747
YEAR ESTABLISHED:        1896
TOTAL REVENUES:          $48,578                        (+1%)
PHARMA REVENUES:         $37,667                        (+2%)
NET INCOME:              $9,137                         (-5%)
R&D:                     $9,667                         (-7%)

DRUGS APPROVED

DRUG                     INDICATION

Avastin (bevacizumab)    advanced, metastatic or
                         recurrent non
with Tarceva             squamous non-small cell lung
                         cancer
Gazyva                   follicular lymphoma
(obinutuzumab)
Cotellic with Zelboraf   advanced melanoma

DRUGS PENDING

DRUG                     INDICATION

rituximab                chronic lymphocytic leukemia
                         subcutaneous formulation
bevacizumab              1st line glioblastoma
                         multiforme
atezolizumab             metastatic non-small cell
                         lung cancer, 2nd-3rd-line,
                         2nd-line metastatic
                         urothelial bladder cancer

PHASE IIB AND BEYOND

DRUG                     INDICATION

RG1273 pertuzumab        2nd line HER2-positive
                         breast cancer, gastric
                         cancer
RG3502 trastuzumab-      early HER2-positive breast
                         cancer adj
DM1
RG435 bevacizumab        relapsed ovarian cancer,
                         platinum-sensitive
RG7159 obinutuzumab      diffuse large B-cell
                         lymphoma
RG7204 vemurafenib       adjuvant melanoma, BRAF
                         mutation positive
RG7388 idasanutlin       acute myeloid leukemia
RG7446 atezolizumab      2nd line non-small cell lung
                         cancer, non-squamous
                         non-small cell lung cancer
RG7446+Avastin           renal cell cancer
atezolizumab
RG1569 tocilizumab       giant cell arteritis,
                         systemic sclerosis
RG3637 lebrikizumab      severe asthma
RG7413 etrolizumab       Crohn's disease
RG1450 gantenerumab      Alzheimer's disease
RG1594 ocrelizumab       relapsing multiple sclerosis
RG6013 emicizumab        hemophilia A

EARLY RESEARCH PROJECTS

DRUG                     INDICATION

RG7935                   Parkinson's disease
RG7916                   spinal muscular atrophy
RG7906                   psychiatric disorders
RG7893                   pain
RG7203                   schizophrenia
RG7992                   metabolic diseases
RG7944                   hepatitis B
RG7861                   infectious diseases
RG6080                   bacterial infections
RG6024                   influenza B
RG4929                   glaucoma or ocular
                         hypertension
RG7880                   inflammatory diseases
RG7845                   autoimmune diseases
RG6149                   asthma
RG6125                   rheumatoid arthritis
RG6069                   fibrosis
RG7986                   B cell non-Hodgkin's
                         lymphoma
RG7888                   solid tumors
RG7882                   ovarian cancer, pancreatic
                         cancer
RG7828                   hematologic tumors
RG7775                   acute myeloid leukemia
RG6047                   metastatic estrogen
                         receptor-positive,
                         HER2-negative breast cancer

DRUGS COMING OFF PATENT

DRUG                     INDICATION                     YEAR

Kytril                   post operative                 2016
                         nausea and vomiting
Tamiflu                  influenza                      2017

TOP SELLING DRUGS

                                                        2015
DRUG                     INDICATION                     SALES

MabThera/                rheumatoid arthritis           $7,108   2%
Rituxan
Avastin                  breast cancer                  $6,744   4%
Herceptin                cancer                         $6,597   4%
Lucentis                 macular degeneraton            $1,534   -11%
Perjeta                  breast cancer                  $1,458   57%
Actemra/                 rheumatoid arthritis           $1,445   17%
RoActemra
Xolair                   asthma                         $1,288   31%
Tarceva                  lung cancer                    $1,192   -9%
Activase/TNKase          acute myocardial infarction    $943     25%
CellCept                 organ rejection                $792     -3%


In Roche's pharmaceuticals division sales rose 5% to $37.6 billion driven by the oncology portfolio (+8%), led by the HER2 medicines and Avastin. Sales of the immunology franchise grew by 24%, driven by the strong uptake of Esbriet, a new medicine for idiopathic pulmonary fibrosis, as well as higher sales of Actemra/RoActemra and Xolair. Sales of Pegasys declined due to competition from a new generation of treatments, while Valcyte/Cymevene and Xeloda faced generic competition as expected.

All regions contributed to the sales growth, with particularly strong performance in the U.S. (+6%) and in Europe (+4%), which was driven by strong demand for the HER2 medicines along with the strong uptake of Esbriet. Growth in the International region (+5%) was driven by key markets including Brazil (+10%) and China (+4%). In Japan, sales grew by 6%, driven by Avastin, the HER2 franchise and the new lung cancer medicine Alecensa.

Roche made positive pipeline progress in 2015. For its investigational medicine ocrelizumab, Roche announced strong data in both relapsing and primary progressive forms of multiple sclerosis. In addition, the company presented promising results for its lead investigational cancer immunotherapy medicine atezolizumab in bladder and lung cancer. Roche also received EU and U.S. approval for Cotellic plus Zelboraf to treat metastatic melanoma, and U.S. approval for the cancer medicine Alecensa for a specific form of lung cancer.

Towards the end of 2015 Roche announced plans to restructure its small molecule manufacturing network, prompting it to close four sites, affecting 1,200 positions. The affected sites are in Clarecastle, Ireland; Leganes, Spain; Segrate, Italy; and Florence, U.S. The company said the closures were necessary to address current underutilization as a result of its evolving portfolio and to support the manufacture of a new generation of specialized small molecule medicines--produced in lower volumes than traditional medicines. For this effort Roche is investing 300 million Swiss francs in a dedicated facility in Kaiseraugst, Switzerland to provide future technology requirements. The transition began in 2016 and is planned to end by 2021. Restructuring costs are estimated to be CHF 1.6 billion until 2021, of which as much as CHF 600 million will be in cash.

BOLSTERING ITS PORTFOLIO

Early in 2015 Roche expanded its portfolio in neuromuscular disease when it acquired Trophos, a privately held biotechnology company based in Marseille, France. Trophos's proprietary screening platform generated olesoxime (TR019622), which is being developed for SMA, a rare and debilitating genetic neuromuscular disease that is most commonly diagnosed in children. Results from a pivotal Phase II clinical trial with olesoxime in SMA showed a beneficial effect on the maintenance of neuromuscular function in individuals with Type II and non-ambulatory Type III SMA, as well as a reduction in medical complications associated with the disease. U.S. and EU regulatory authorities have granted orphan drug designation to olesoxime. The acquisition highlights Roche's commitment to developing medicines for spinal muscular atrophy, a serious disease with no effective treatment.

Roche acquired Kapa Biosystems to strengthen its next-generation sequencing product offerings. Kapa is a provider of genomic tools in the life sciences sector that employs proprietary technologies to optimize enzymes for next-generation sequencing (NGS), as well as polymerase chain reaction (PCR) and realtime PCR applications. The company's proprietary protein engineering technology is highly customizable and allows for the generation and screening of large numbers of enzyme variants. Tailored enzymes with improved performance for specific applications can be rapidly selected, expediting product development timelines. Kapa's portfolio of NGS reagents includes enzymes such as novel DNA polymerases, with the potential to improve the performance of the entire sequencing workflow.

KEY APPROVALS AND BREAKTHROUGHS

In 2015, the FDA and the European Commission approved Cotellic in combination with Zelboraf for the treatment of people with BRAF mutation-positive metastatic melanoma. Updated pivotal data showed that the combination helped people to live significantly longer, with a median of two years, compared to Zelboraf alone.

The FDA also approved Alecensa for people with advanced ALK-positive NSCLC whose disease had progressed following treatment with crizotinib. This is the second approval for this medicine, which was created by Chugai, a member of the Roche Group, and approved in Japan in 2014.

Roche was granted FDA breakthrough therapy designation to ACE910 (RG6013, R05534262) for the prophylactic treatment of people who are 12 years or older with haemophilia A with factor VIII inhibitors. In a Phase I study, ACE910 showed promising results as a prophylactic treatment administered as a weekly subcutaneous injection in people with severe haemophilia A with and without inhibitors to factor VIII.

Roche also received breakthrough status for Actemra/Actemra in systemic sclerosis. According to the company, Actemra/Actemra monotherapy and combination treatment regimens almost double sustained remission rates in people with early rheumatoid arthritis. In addition, five-year sustained efficacy of Actemra/Actemra was demonstrated in children with systemic juvenile idiopathic arthritis. Roche has initiated a global Phase III clinical trial initiated in systemic sclerosis, a potentially fatal disease with limited treatment options.

FDA also granted breakthrough therapy designation for Roche's investigational cancer immunotherapy MPDL3280A (anti-PDL1) in non-small cell lung cancer. The designation was granted for the treatment of people with PD-L1-positive (Programmed Death-Ligand 1) non-small cell lung cancer (NSCLC) whose disease has progressed during or after platinum-based chemotherapy (and appropriate targeted therapy for those with an EGFR mutation-positive or ALK-positive tumor). This is the second FDA Breakthrough Therapy Designation for MPDL3280A following bladder cancer in 2014.

CLINICAL TRIAL ALLIANCES

During the year, Roche and Celldex Therapeutics entered into a clinical trial collaboration to evaluate the safety, tolerability and preliminary efficacy of varlilumab, Celldex's CD27 targeting investigational antibody, and MPDL3280A (anti-PDL1), Roche's investigational cancer immunotherapy in a Phase 1/2 study in renal cell carcinoma.

Varlilumab and MPDL3280A are part of a new class of investigational medicines known as cancer immunotherapies that are designed to harness the body's own immune system to fight cancer through separate yet complementary mechanisms of action that may enable the activation of T cells, restoring their ability to effectively detect and attack tumor cells. Preclinical data suggest the combination of these two mechanisms are synergistic and may enhance anti-tumor immune response compared to either agent alone.

In an immunotherapy alliance, Roche teamed up with Amgen to evaluate investigational candidates in cancer patients. The Phase lb study the two firms are collaborating on is to evaluate the safety and efficacy of talimogene laherparepvec, Amgen's investigational oncolytic immunotherapy, in combination with Roche's investigational anti-PDL1 therapy, atezolizumab (also known as MPDL3280A), in patients with triple-negative breast cancer and colorectal cancer with liver metastases.

Talimogene laherparepvec is an investigational oncolytic immunotherapy designed to selectively replicate in tumors (but not normal tissue) and to initiate an immune response to target cancer cells. Atezolizumab is an investigational monoclonal antibody designed to interfere with the PD-L1 protein.

The combination trial aims to activate an anti-tumor immune response with talimogene laherparepvec and to block inhibitory T cell checkpoints with atezolizumab, to potentially increase the anti-tumor activity relative to each agent alone.

Roche and Upsher-Smith Laboratories, through its wholly-owned UK subsidiary Proximagen, formed an agreement for the further development of a novel, oral small molecule inhibitor of Vascular Adhesion Protein 1 (VAP-1), a cell-adhesion molecule that may be effective in the treatment of inflammatory diseases. The VAP-1 inhibitor is currently in Phase II clinical development. Roche is granted a worldwide exclusive license to develop and commercialize the compound. In a novel collaboration model, Roche and Proximagen will conduct additional Phase II studies to further define the therapeutic potential of the VAP-1 inhibitor. Based on these data Roche will assume responsibility for late stage development and worldwide commercialization. Proximagen will receive an upfront payment, along with downstream development, regulatory and sales milestones. In addition, Proximagen will also receive tiered royalties on net sales of a potential future product containing the molecule.

RESEARCH COLLABORATIONS

On the research front, Roche entered a collaboration with Catalent, through its subsidiary Redwood Biosdence, to develop next-generation molecules coupling different therapeutic modalities using Catalent's proprietary SmartTag technology. Roche gains non-exclusive access to the SmarTag platform and will have an option to take commercial licenses to develop molecules directed to a defined number of targets. Use of SmarTag Catalent's programmable protein-modification technology, combined with the highly stable hydrazino-Pictet-Spengler (HIPS) conjugation platform, will permit evaluation of alternative sites of drug conjugation so that Roche may develop molecules optimized for efficacy, safety and stability. Roche paid Catalent an upfront fee of $1 million and is to provide additional research funding during the initial phase of the collaboration. Catalent has the potential to receive up to $618 million in development and commercial milestones, plus royalties on net sales of products, if Roche pursues commercial licenses and all options are exercised.

In another alliance, Roche, Meiji Seika Pharma and Fedora formed a license agreement for the development and commercialization of OP0595, a beta-lactamase inhibitor in Phase I clinical development. Under the agreement, Roche obtains worldwide rights from both companies for development and commercialization with the exception of Japan, where Meiji will retain sole commercialization rights. Beta-lactamase inhibitors restore or potentiate the activity of beta-lactam antibiotics. The combination of OP0595 with a beta-lactam antibiotic targets severe infections caused by Enterobacteriaceae, including multi-drug-resistant strains. Roche entered the deal because it said there is an urgent need for new antibiotics able to combat the increasing resistance to antibiotics that is being seen worldwide.

ROCHE TEAMS UP WITH FOUNDATION MEDICINE

Collaboration focuses on molecular information in oncology

In January 2015 Roche and Foundation Medicine, Inc. (FMI) entered a broad strategic collaboration to further advance FMI's market-leading position in molecular information and genomic analysis while providing Roche the opportunity to optimize the identification and development of novel treatment options for cancer patients.

According to the companies, the emerging field of molecular information and genomic analysis will play an increasingly important role for future medicines and diagnostic solutions, in particular for cancer patients. FMI supports physicians by providing comprehensive molecular information to characterize a tumor that is being matched with approved targeted therapy options and novel treatments under development. Understanding the comprehensive genomic profile of a cancer patient's disease will enable better personalized healthcare solutions to optimize treatment outcomes for patients.

Under the terms of the R&D collaboration agreement, Roche is committing to R&D funding of potentially more than $150 million for a minimum of five years and will contribute its expertise and breadth in oncology. FMI will continue to operate independently and will contribute its experience in the development of comprehensive genomic profiling tests for oncology. The initial focus of the R&D collaboration will be on developing genomic profile tests for cancer immunotherapies and for continuous blood-based monitoring.

Roche will be able to utilize FMI's proprietary molecular information platform to standardize clinical trial testing. This aspect of the relationship is designed to enable comparability of clinical trial results for R&D purposes, and ultimately in the clinic.
06 GLAXOSMITHKLINE

Headquarters: Brentford, Middlesex, UK
twitter.com/GSK
www.gsk.com

HEADCOUNT:              101,255
YEAR ESTABLISHED:       2000
REVENUES:               $35,463                        (-7%)
NET INCOME:             $12,410                        (+166%)
R&D:                    $5,277                         (-7%)

DRUGS APPROVED

DRUG                    INDICATION

Nucala                  severe asthma
Volibris                pulmonary arterial
                        hypertension
Breo Ellipta            once-daily treatment of
                        asthma

DRUGS PENDING

DRUG                    INDICATION

2696273                 adenosine deaminase severe
                        combined immune deficiency
chlorhexidine           prevention of omphalitis
FluLaval Quadrivalent   influenza A subtype and
                        type B viruses

PHASE IIB AND BEYOND

DRUG                    INDICATION

3684934                 HIV
tafenoquine             plasmodium vivax malaria
mepolizumab             COPD
sirukumab               rheumatoid arthritis, giant
                        cell arteritis
systemic lupus          vasculitis
erythematosus
2998728                 transthyretin-mediated
                        amyloidosis
mepolizumab             eosinophilic granulomatosis
                        with polyangiitis
Shingrix                herpes zoster prophylaxis
MMR                     measles, mumps, rubella
                        prophylaxis
retosiban               spontaneous pre-term labour

EARLY RESEARCH PROJECTS

DRUG                    INDICATION

mepolizumab             severe atopic dermatitis
oxytocin                postpartum hemorrhage
2881078                 muscle wasting
2798745                 heart failure
daprodustat             wound healing
RSV vaccine             respiratory syncytial virus
                        prophylaxis
HIV vaccine             HIV infection prophylaxis
2696277                 beta-thalassemia
3179106                 inflammatory disorders of
                        the bowel
3117391                 rheumatoid arthritis
3050002                 psoriatic arthritis
2831781                 autoimmune disease
2618960                 Sjogren's syndrome
2330811                 systemic sclerosis
525762                  solid tumors and
                        haematological malignancies
2256098                 mesothelioma
2636771                 castration resistant
                        prostate cancer
2857916                 multiple myeloma
2879552                 acute myeloid leukemia and
                        small cell lung cancer
3008348                 idiopathic pulmonary
                        fibrosis
2878175                 hepatitis C
3389404                 hepatitis B

DRUGS COMING OFF PATENT

DRUG                    INDICATION                     YEAR

Zofran                  nausea and vomiting            2016
Valtrex                 herpes viruses                 2016
Serevent                asthma                         2016
Tykerb                  breast cancer                  2017
Kivexa                  HIV                            2019

TOP SELLING DRUGS

                                                       2015
DRUG                    INDICATION                     SALES    (+/-%)

Seretide/Advair         asthma, COPD                   $5,632   -19%
Infanrix, Pediarix      pediatric vaccine              $1,121   -18%
Epzicom/Kivexa          HIV                            $1,068   -16%
Avodart                 enlarged prostate              $1,006   -24%
Flixotide/Flovent       respiratory                    $953     -18%
Ventolin                asthma                         $949     -13%
Lamictal                anti-epileptic                 $812     -7%
Augmentin               antibacterial                  $808     -14%


In 2015 GlaxoSmithKline (GSK) reported sales of $35.5 billion. The key event was the completion of its three-part deal with Novartis that was announced the year before. As a result of this transaction, GSK acquired Novartis's global vaccines business, excluding influenza vaccines, for $5.25 billion. As part of the deal, GSK has also created a new leading consumer healthcare joint venture with Novartis in which GSK has majority control of 63.5%. Finally, GSK divested its oncology business to Novartis for $16 billion.

Following the Novartis deal, GSK further expanded its vaccines presence in the U.S. by establishing a new global center for vaccines research and development (R&D) in Rockville, MD. The site will become one of three global vaccines R&D centers for GSK, complementing the company's existing global R&D centers in Rixensart, Belgium and in Siena, Italy, a site GSK recently acquired as part of the Novartis deal.

The new U.S. vaccines R&D center will expand GSK's efforts to discover and develop novel vaccines and it will consolidate vaccines R&D activities currently conducted at other GSK sites including in Philadelphia, PA and Cambridge, MA, into one centralized location. Key late stage development programs, as well as vaccine discovery and new platform technology development will be led from Rockville.

Also on the research front, GSK unveiled plans to become a key partner, with an investment of $25 million, in a pioneering new global fund for dementia research. The Dementia Discovery Fund, established by the UK government with initial commitments totaling $100 million, brings together leading pharmaceutical companies, the UK government and Alzheimer's Research UK to address the rising threat posed by dementia by supporting research into future treatments. The fund aims to identify and nurture promising new avenues of research from around the world in the field of dementia and supports GSK's commitment to explore novel, collaborative approaches in challenging areas of research.

In a unique public-private collaboration formed to create an HIV Cure center and a new company to bring together academic and pharmaceutical research scientists, The University of North Carolina at Chapel Hill and GSK, unveiled plans to create a dedicated HIV Cure center and a jointly owned new company that will focus on discovering a cure for HIV/AIDS. The HIV Cure center will be located on the UNC-Chapel Hill campus and will focus exclusively on finding a cure for HIV/AIDS. The new company, Qura Therapeutics, will handle the business side of the partnership, including intellectual property, commercialization, manufacturing and governance. Together, the HIV Cure center and Qura Therapeutics will serve as a catalyst for additional partners and public funding.

Through the new company, GSK will invest $4 million per year for five years to fund the initial HIV Cure center research plan, and a small research team from GSK will move to Chapel Hill to be co-located with UNC researchers. The University will provide world-class laboratory space on its medical campus for the HIV Cure center and the new company.

Further strengthening its HIV pipeline and outlook, GSK, through its global HIV business, ViiV Healthcare, reached two separate agreements with Bristol-Myers Squibb (BMS), to acquire its late-stage HIV R&D assets and to acquire its portfolio of preclinical and discovery stage HIV research assets.

Late stage assets, including fostemsavir (BMS-663068), an attachment inhibitor, currently in Phase III development for heavily treatment experienced patients that has received a breakthrough designation from the FDA and is expected to be filed for regulatory approval in 2018. The second late stage asset is a maturation inhibitor (BMS-955176), currently in Phase lib development for both treatment-naive and treatment experienced patients. A back-up maturation inhibitor candidate (BMS-986173) is also included in the purchase.

Assets in preclinical and discovery phases of development include a novel biologic (BMS-986197) with a triple mechanism of action, a further maturation inhibitor, an allosteric integrase inhibitor and a capsid inhibitor.

Also on the research front, during the year GSK teamed up with Merck to initiate a Phase I clinical trial designed to evaluate GSK's investigational immunotherapy GSK3174998 as monotherapy and in combination with Merck's anti-PD-1 therapy, Keytruda (pembrolizumab) in patients with locally advanced, recurrent or metastatic solid tumor(s) that have progressed after standard treatment.

In terms of acquisitions, in February GSK acquired GlycoVaxyn AG, a specialist vaccine biopharmaceutical company based in Switzerland. Since forming a scientific collaboration in 2012, GSK has held a minority stake in GlycoVaxyn. It acquired the remaining shares for $190 million to take full ownership of the company.

GlycoVaxyn has developed an innovative biological conjugation platform technology, which has the potential to play an important role in the development of new prophylactic and therapeutic vaccines for a range of bacterial diseases. This proprietary technology also has the potential to enable GSK to develop a simplified conjugate vaccine manufacturing process.

As part of the deal, GSK also acquired a small number of early stage vaccines in development against bacterial infections such as pneumonia, pseudomonas, staphylococcus aureus and Shigellosis, supplementing the company's existing vaccines pipeline.

Also of note in 2015, GSK started building its largest Indian tablet manufacturing pharmaceutical factory. When fully operational in 2017, the $140 million factory will make more than 8 billion tablets and 1 billion capsules a year in the areas of gastroenterology and anti-inflammatory medicines for the Indian market. The facility will be built on a 50-acre site in Vemgal, Karnataka. The facility will also include a warehouse, site infrastructure, employee welfare center and utilities to support the manufacturing and packing of the medicines.

During the year GSK also established a new global headquarters for Asia in Singapore. The eight-story, nearly 15,000 square meter facility will have capacity for up to 1,000 employees across GSK's pharmaceuticals, vaccines and consumer healthcare businesses. Key leadership is already transitioning into the region with almost 150 global or regional roles moving to Singapore in the last year. Construction is expected to be complete by the end of 2016 and all employees will be situated at the new site during the second half of 2017.
07 GILEAD SCIENCES

Headquarters: Foster City, CA
twitter.com/gileadsciences
www.gilead.com

HEADCOUNT:                8,000
YEAR ESTABLISHED:         1987
REVENUES:                 $32,639                    (+31%)
NET INCOME:               $18,108                    (+50%)
R&D:                      $3,014                     (+6%)

DRUGS APPROVED

DRUG                      INDICATION

Descovy                   HIV
Odefsey                   HIV-1 infection
Harvoni in                chronic hepatitis C with
                          advanced liver
combination with          disease, once-daily STR
ribavirin
Genvoya STR               HIV-1 infection
Letairis                  pulmonary arterial
                          hypertension

DRUGS PENDING

DRUG                      INDICATION

STR rilpivirine/          HIV/AIDS
emtricitabine/tenofovir
alafenamide
STR of sofosbuvir/        chronic HCV infection
velpatasvir
Tenofovir alafenamide     chronic HBV infection
CTAF)

PHASE IIB AND BEYOND

DRUG                      INDICATION

Bictegravir/F/TAF         HIV/AIDS
Sofosbuvir, velpatasvir   chronic HCV infection
and voxiiaprevir
Idelalisib                relapsed refractory CLL
Momelotinib               myelofibrosis
GS-5745                   gastric cancer
Eleclazine                long CT-3 syndrome
GS-5745                   ulcerative colitis

EARLY RESEARCH PROJECTS

DRUG                      INDICATION

GS-9620                   HIV/AIDS
GS-9674                   NASH
GS-5745                   colid tumors
GS-4059                   B-cell malignancies
GS-5829                   solid tumors
GS-5745                   COPD, rheumatoid
                          arthritis
GS-9876                   rheumatoid arthritis
GS-5734                   Ebola virus infection

DRUGS COMING OFF PATENT

DRUG                      INDICATION                 YEAR

Emtriva                   HIV                        2016
Atripla                   HIV                        2016
Truvada                   HIV                        2017
Complera                  HIV                        2017-2018

TOP SELLING DRUGS

                                                     2015
DRUG                      INDICATION                 SALES       (+/-%)

Harvoni                   chronic hepatitis C        $13,864     552%
Sovaldi                   chronic hepatitis C        $5,276      -49%
Truvada                   HIV                        $3,459      4%
Atripla                   HIV                        $3,134      -10%
Complera/                 HIV                        $1,427      16%
Eviplera
Stribild                  HIV                        $1,825      52%
Viread                    chronic hepatitis B        $1,108      5%


Having been referred to as "the Apple of healthcare" another jump for Gilead in the 2015 rankings has the burgeoning biotech up two spots to number 7. While the company's growth is impressive, driven by staggering Harvoni and Sovaldi sales of $13.9 billion and $5.3 billion, respectively, maintaining this surge within a more crowded Hep C market may prove difficult. Despite pricing pressures and competition for its top Hep C sellers, it still holds a solid 90% market share. Gilead also maintains its dominant position with its growing flagship HIV franchise.

The first quarter of 2016 saw revenues up 3% to $7.8 billion, while net income was down 16% to $3.6 billion due to acquisition-related, up-front collaboration, stock-based compensation expenses, as well as reflecting lower revenues in the Hep C arena. Antiviral product sales, which include HIV and liver disease areas, were $7.2 billion, up 3%. Truvada sales were up 16% to $898 million, Atripla sales declined 8% to $675 million due to patent expirations, and Stribild sales were up 34% to $477 million. While Harvoni sales slipped 16% in the first quarter, Sovaldi sales were up 31%.

The Hep C market saw a significant drop in prices as a result of the launch of Merck's Zepatier in January, which considerably undercut both AbbVie's Viekira Pak and Gilead's Harvoni on price--not to mention this strategy could give payers the leverage needed to negotiate even further discounts. Viekira Pak launched in December 2014, just two months after Harvoni was approved, and exclusive deals with insurers to cover the drug in return for discounts quickly ensued. Gilead was forced to do the same, impacting 1Q16 sales.

Compared to its closest competitors, AbbVie, Merck, and Celgene, Gilead's financials and assets appear in good working order, and its pipeline comprises several late-stage product candidates for high value indications, namely cancer, heart disease, and HIV. While these candidates are not likely to have the financial impact of Harvoni and Sovaldi, they're diversified and have the potential to replace some of the lost revenue in the Hep C arena, which, due to the curative nature of these therapies, is not likely to be able to support multiple blockbusters long term.

Additions to Gilead's HIV therapies include the FDA approval of Odefsey (emtricitabine /rilpivirine /tenofovir alafenamide or R/F/TAF) for the treatment of HIV-1 infection. Odefsey is Gilead's second TAF-based regimen to win FDA approval and represents the smallest pill of any single-tablet regimen currently available for the treatment of HIV. The drug will likely gain EU approval as well, with the European CHMP adopting a Positive Opinion for Odefsey this past April. Emtricitabine and tenofovir alafenamide are from Gilead, while rilpivirine is from Janssen Sciences Ireland.

The European Medicines Agency (EMA) also adopted a positive opinion for two doses of Descovy (emtricitabine 200 mg/tenofovir alafenamide 25 mg, F/TAF), an investigational fixed-dose combination for the treatment of HIV-1 in combination with other antiretroviral agents.

Antiviral asset bictegravir (GS-9883), an investigational integrase strand transfer inhibitor achieved proof-of-concept based on data from four preclinical and Phase I studies evaluating the antiviral potency, resistance profile, pharmacokinetics and safety. Bictegravir, including in combination with tenofovir alafenamide and emtricitabine as a single tablet regimen, is an investigational treatment for HIV currently in Phase III trials as part of the single tablet regimen.

In HCV, Harvoni picked up two supplemental indications for use in chronic hepatitis C patients with advanced liver disease. Also, the FDA granted priority review to the company's NDA for an investigational once-daily fixed-dose combination of sofosbuvir and velpatasvir (SOF/VEL) for the treatment of chronic genotype 1-6 HCV infection. The FDA has set a target action date under the Prescription Drug User Fee Act of June 28, 2016.

Finally, while Gilead terminated its Phase II study of the investigational monoclonal antibody simtuzumab in patients with idiopathic pulmonary fibrosis (IPF) due to lack of efficacy, Phase II studies of simtuzumab are ongoing in patients with non-alcoholic steatohepatitis (NASH) and primary sclerosing cholangitis (PSC).

In addition to these pipeline assets, several noteworthy acquisitions and collaborations broadened Gilead's portfolio. Most recently, the company acquired Nimbus Apollo and its AcetylCoA Carboxylase (ACC) inhibitor program for $400 million upfront, and an additional $800 million in development milestones. The Nimbus Apollo program includes the lead candidate NDI-010976, an ACC inhibitor, and other preclinical ACC inhibitors for the treatment of NASH, and for the potential treatment of hepatocellular carcinoma (HCC) and other diseases. NDI-010976 was Fast Tracked by the FDA in February 2016 and Phase I data for the compound is expected to be available soon.

Gilead also acquired EpiTherapeutics, a privately-held Danish company, for $65 million, gaining a portfolio of histone demethylases for the treatment of certain cancers.

Finally, Galapagos and Gilead Sciences completed the closing of their global license and collaboration agreement on filgotinib, triggering an upfront license fee payment of $300 million to Galapagos. Gilead has also made a $425 million equity investment in Galapagos and now owns 14.75% of its outstanding shares.

The companies entered a collaboration for the joint development and commercialization of filgotinib in inflammatory diseases in December 2015. Galapagos co-funds 20% of global development activities and Gilead is responsible for manufacturing and worldwide marketing and sales activities.

A Phase III program with filgotinib in rheumatoid arthritis will be initiated mid-2016. Filgotinib has also been shown to be safe and effective in moderate to severe Crohn's disease, based on Phase II study results.

In executive news, as of March 2016, John C. Martin, Ph.D., chairman and chief executive officer of Gilead stepped down, assuming the role of executive chairman of the company. John F. Milligan, Ph.D., was promoted to CEO and will serve on the board of directors. Dr. Martin joined the company in 1990 and served as CEO since 1996. Dr. Milligan also joined Gilead in 1990 and most recently served as president and chief operating officer. Under Martin, Gilead grew from a small biotech worth $1 billion, to a top 10 biopharma company bringing in nearly $33 billion in 2015. If Dr. Milligan can keep pace in today's challenging environment, Gilead's outlook is strong.
08 JOHNSON & JOHNSON

Headquarters: New Brunswick, NJ
twitter.com/JNJComm
www.jnj.com

HEADCOUNT:                 127,000
YEAR ESTABLISHED:          1887
REVENUES:                  $70,074                     (-6%)
PHARMA REVENUES:           $31,430                     (-3%)
NET INCOME:                $16,323                     (+18%)
R&D:                       $9,046                      (+7%)

DRUGS APPROVED

DRUG                       INDICATION

Darzalex                   double refractory
                           multiple myeloma
Edurant STR                single tablet regimen for
                           HIV
Invega Trinza              schizophrenia--3 month
                           injectable
Imbruvica                  Waldenstrom's
                           macroglobulinemia
Prezcobix                  HIV-1
Yondelis                   unresectable or
                           metastatic liposarcoma or
                           leiomyosarcoma

DRUGS PENDING

DRUG                       INDICATION

Invokana                   fixed dose combination
                           with Metformin XR, IR
Stelara                    Crohn's disease
Imbruvica                  relapsed-refractory
                           chronic lymphocytic
                           leukemia with
                           Bendamustine and
                           Rituximab

PHASE IIB AND BEYOND

DRUG                       INDICATION

Xarelto (rivaroxaban)      major adverse cardiac
                           events, prevention of
                           symptomatic VTE
Invokana (canagliflozin)   diabetic nephropathy
guselkurnab                moderate to severe plaque
                           psoriasis
Simponi Aria               ankylosing spondylitis
(golimumab)
esketamine                 treatment-restistant
                           depression
Imbruvica                  mantle cell lymphoma,
                           indolant non-Hodgkins
                           lymphoma
apalutamide                prostate cancer
(ARN-509)
JNJ927/ARN-509/            prostate cancer
Zytiga
Yondelis (trabectedin)     relapsed ovarian cancer

EARLY RESEARCH PROJECTS

DRUG                       INDICATION

CPI-1205                   B-cell lymphoma
CPI-0610                   leukemia, myelocytic,
                           acute; myelodys-plastic
                           syndrome
Galantamine                obesity
Doxazosin                  PTSD; alcohol use
                           disorder
VLX600                     refractory cancer
FLX925                     acute myeloid leukemia
ALRN-6924                  solid tumor; lymphoma
LY3002813                  Alzheimer disease
CRLX301                    advanced solid tumor
                           malignancy
CMB305                     sarcoma; melanoma; non-
                           small cell lung cancer;
                           ovarian cancer
MGCD516                    advanced cancer
AGT-182                    mucopolysaccharidosis

DRUGS COMING OFF PATENT

DRUG                       INDICATION                  YEAR

Zytiga                     metastatic, castrate        2016
                           resistant prostate cancer
Topamax                    migraine                    2016
Concerta                   ADHD                        2017
Prezista                   HIV/AIDS                    2017
Risperdal Consta           schizophrenia               2017
Invega Sustenna            schizophrenia               2017

TOP SELLING DRUGS

                                                       2015
DRUG                       INDICATION                  SALES    (+/-%)

Remicade                   rheumatoid arthritis        $6,561   -5%
Stelara                    psoriasis                   $2,474   19%
Olysio/Sovriad             hepatitis C                 $2,302   n/a
Zytiga                     prostate cancer             $2,231   0%
Xarelto                    deep vein thrombosis,
                           pulmonary embolism          $1,868   23%
Invega Sustenna            schizophrenia               $1,830   15%
Prezista                   HIV/AIDS                    $1,810   -1%
Velcade                    velcade, mantle cell
                           lymphoma                    $1,333   -18%
Simponi                    rheumatoid arthritis        $1,328   12%
Invokana                   type 2 diabetes             $1,308   n/a


Johnson & Johnson (J&J) has a portfolio focused on five core therapeutic areas--immunology, infectious diseases and vaccines, neuroscience, cardiovascular and metabolism, and oncology. Combined segment sales in 2015 were $31.4 billion, a decrease of 2.7% from 2014. J&J said the pharma segment was negatively impacted by the introduction of competitive products to the company's Hepatitis C products, Olysio/Sovriad (simeprevir) and Incivo (telaprevir).

Immunology products achieved sales of $10.4 billion in 2015, representing an increase of 2.1% compared to the prior year driven by the increased sales of Sterlara (ustekinumab) and Simponi/Simponi Aria (golimumab). Growth was partially offset by lower Remicade (infliximab) sales due to the weakening of the euro and biosimilar competition in Europe.

Infectious disease products sales were $3.7 billion, a decline of 34.7% from 2014. Competitive products to the company's Hepatitis C products, Olysio/Sovriad and Incivo had a significant negative impact on U.S. sales and will continue to have a negative impact on future sales, according to the company.

Neuroscience products sales were $6.3 billion, a decrease of 3.5% from 2014. J&J reports the U.S. sales growth of Concerta/methylphenidate was primarily due to a therapeutic equivalence reclassification of generic competitors by the FDA in November 2014. In addition, strong sales were reported upon the launch of Invega Trinza. However, neuroscience products sales were negatively impacted by the U.S. divestiture of Nucynta (tapentadol) and lower sales of Risperdal Consta (risperidone).

Oncology products achieved sales growth of $4.7 billion in 2015, representing an increase of 5.3% as compared to the prior year. Contributors to the growth were strong sales of Imbruvica (ibrutinib) due to the approval of new indications, additional country launches and strong patient uptake. Additionally, sales of Zytiga (abiraterone acetate) grew in the U.S. and in Asia and Latin America, but were lower in Europe due to competition.

Cardiovascular, metabolism and other products achieved sales of $6.4 billion in 2015, representing an increase of 15% as compared to the prior year due to strong sales of Xarelto (rivaroxaban) and Invokana/Invokamet (canagliflozin).

While overall sales were down, the innovation engine at J&J steams ahead. During the year, the pharma giant unveiled plans to file for regulatory approval of more than 10 new products between 2015 and 2019, each with the potential to exceed $1 billion in revenue, as well as more than 40 line extensions of existing and new medicines. Janssen Pharmaceuticals, one of the Janssen Pharmaceutical Companies of Johnson & Johnson, has launched 14 new products since 2009, seven of which already exceed or are on track to achieve sales in excess of $1 billion.

Late-stage products expected to drive growth in the next several years, following regulatory approvals, include daratumumab for multiple myeloma; sirukumab for rheumatoid arthritis; guselkumab for psoriasis; JNJ-927 (ARN-509) for pre-metastatic prostate cancer; imetelstat for myelofibrosis; JNJ-493 (FGFRi kinase inhibitor) for urothelial cancer; esketamine for treatment-resistant depression; AL-8176 for respiratory syncytial virus (RSV); fulranumab for osteoarthritic pain; JNJ-872 (VX-787) for influenza A; JNJ-922 (Orexin-2 antagonist) for primary insomnia; and AL-335 for hepatitis C.

In addition, daratumumab and esketamine have both received Breakthrough Therapy Designations from the U.S. FDA. Janssen also announced plans to submit a Biologic Licensing Application to the FDA and a Marketing Authorization Application to the EMA this year for daratumumab in double refractory multiple myeloma.

ACQUISITIONS AND PARTNERSHIPS

In March 2015, Janssen acquired XO1 Limited, a privately held asset-centric virtual biopharmaceutical company founded to develop the anti-thrombin antibody ichorcumab. Ichorcumab is a recombinant human antibody developed to mimic the activity of a human antibody, which appears to produce an anti-coagulated state without predisposition to bleeding.

Ichorcumab complements the Janssen cardiovascular portfolio. With its strong position in the fields of anticoagulation and biologies, J&J is well positioned to explore the potential of this next generation anticoagulant. The opportunity was identified and facilitated through Johnson & Johnson Innovation, London.

Ichorcumab was initially developed by Cambridge University Hospitals and Cambridge University with support from Cambridge Enterprise, the University's commercialization arm. The technology was licensed by Cambridge Enterprise to XO1 Limited in order to take its development towards the clinic. XO1 Limited was established by Index Ventures as an asset centric company, a model advanced by Index, via a fund launched in 2012 in which Johnson & Johnson Innovation--JJDC, Inc. is an investor.

In another acquisition deal later in the year, J&J strengthened its pipeline to combat Hepatitis B virus when it acquired Novira Therapeutics, a privately held, clinical-stage biopharmaceutical company. The acquisition included Novira's portfolio of novel antivirals, including its lead candidate, NVR 3-778, a small molecule, direct acting antiviral, for oral administration in patients with HBV that inhibits the HBV core or capsid protein. HBV core is a novel and promising drug target since it is involved in multiple activities required for viral replication and persistence.

During the year J&J also completed the divestiture of its Cordis business to Cardinal Health for an approximate value of $2 billion. The Cordis business is a global leader in the development and manufacture of interventional vascular technology and generated net revenues of approximately $780 million in 2014. At the time of the deal J&J reinforced its commitment to cardiovascular disease, focusing on its leading cardiovascular medicine, Xarelto.

During the year Janssen entered into a collaboration and license agreement with Bavarian Nordic to leverage their MVA-BN technology, jointly with Janssen's own AdVac technology, in the development and commercialization of a heterologous prime-boost vaccine for the treatment of Human Papillomavirus (HPV) chronic infections, which can lead to cancer. Janssen will conduct all clinical development and, subject to regulatory approval, will be responsible for registration, distribution and commercialization of the potential combination vaccine worldwide.

Janssen also obtained worldwide rights, excluding China and Korea, to develop and commercialize oxyntomodulin-based therapies including HM12525A, a biologic that is completed Phase I and entered Phase II, from Hanmi Pharmaceutical. HM12525A is an oxyntomodulin-based therapy (GLP-l/glucagon receptor dual agonist) that has shown evidence of improving multiple metabolic parameters that lead to improved blood glucose, body weight, and insulin sensitivity. J&J said this asset has the potential, as a once weekly therapy, to be a best-in-class oxyntomodulin-based therapy.
09 ASTRAZENECA

Headquarters: London, UK
twitter.com/astrazeneca
www.astrazeneca.com

HEADCOUNT:               61,500
YEAR ESTABLISHED:        1999
REVENUES:                $24,708                    (-5%)
NET INCOME:              $2,826                     (+129%)
R&D:                     $5,997                     (+7%)

DRUGS APPROVED

DRUG                     INDICATION

Bevespi Aerosphere       COPD
Tagrisso                 mutation-positive
                         metastatic non-small
                         cell
                         lung cancer
Zurampic                 gout
Brilinta                 patients with a history
                         of heart attack
Iressa                   1st line EGFR non-small
                         cell lung cancer

DRUGS PENDING

DRUG                     INDICATION

saxa/dapa (saxagliptin   type-2 diabetes
and dapagliflozin)
Caz AVI                  serious infections
Brilique                 patients with a history
                         of heart attack

DRUGS IN PHASE IIB AND BEYOND

DRUG                     INDICATION

Brilinta                 arterial thrombosis
Epanova                  severe
                         hypertriglyceridaemia
Farxiga                  type 2 diabetes
Tagrisso                 2nd line advanced EGFRm,
                         NSCLC
acalabrutinib            B-cell blood cancers
cediranib ICON 6         PSR ovarian cancer
selumetinib              thyroid cancer
PT010                    COPD
Zurampic                 gout
brodalumab               psoriasis
AZD3293                  early Alzheimer's
                         disease
MEDI-550                 pandemic flu
Zinforo                  pneumonia, skin
                         infections

EARLY RESEARCH PROJECTS

DRUG                     INDICATION

AZD4076                  non-alcoholic fatty
                         liver disease
AZD5718                  coronary artery disease
MEDI8111                 trauma/bleeding
MEDI0382                 diabetes/obesity
AZD0156                  solid tumors
AZD9150                  haematological
                         malignancies
AZD9496                  breast cancer
AZD9291 +                advanced EGFRm NSCLC
Durvalumab
AZD1419                  asthma
AZD5634                  cystic fibrosis
AZD7896                  COPD
AZD9567                  rheumatoid arthritis
MEDI15872                systemic lupus
                         erythematosus
MEDI9314                 atopic dermatitis
MEDI4920                 primary Sjogren's
                         syndrome
ATM AVI                  serious bacterial
                         infections
AZD8108                  suicidal ideation
MEDI7352                 osteoarthritis pain

DRUGS COMING OFF PATENT

DRUG                     INDICATION                 YEAR

Crestor                  cholesterol                2016
Byetta                   type 2 diabetes            2016-2020
Rhinocort                allergy                    2017
Symbicort                asthma                     2017
Seroquel XR              anti-psychotic             2017
Iressa                   lung cancer                2017

TOP SELLING DRUGS

                                                    2015
DRUG                     INDICATION                 SALES       (+/-%)

Crestor                  cholesterol                $5,017      -9%
Symbicort                asthma                     $3,394      -11%
Nexium                   acid reflux                $2,496      -32%
Seroquel XR              anti-psychotic             $1,025      -16%
Pulmicort                asthma                     $1,014      7%
Zoladex                  cancer                     $816        -12%
Onglyza                  type 2 diabetes            $786        -4%
Seloken/Toprol-XL        hypertention               $710        -6%
Faslodex                 breast cancer              $704        -2%
Synagis                  RSV                        $662        -26%


Continuing to support is growing biologies portfolio, AstraZeneca, which reported sales of $24.7 billion in 2015, made several significant transactions during the year to bolster its biologies growth strategy. The company laid out plans to invest approximately $285 million in a new high-tech facility for manufacturing of biological medicines in Sodertalje, Sweden. The new plant will be focused on filling and packaging of protein therapeutics. It is anticipated that the new facility will supply medicines for clinical trial programs of AstraZeneca and MedImmune, the company's global biologies research and development arm, from the end of 2018, and will deliver finished products for commercial use once fully operational by 2019.

Sodertalje is currently home to AstraZeneca's largest global tablets and capsules manufacturing facility and is also a launch platform site for the company, with specialist capabilities onsite that allow large-scale production of new medicines, working closely with the research and development organization.

Biotech medicines make up 50% of the company's pipeline with more than 120 ongoing programs, including more than 30 in clinical development. The new manufacturing facility in Sweden will support the progression of drug candidates across the main therapy areas and be aligned with investments being made in the current biologies manufacturing centers, such as the expansion in Frederick, MD, announced in November 2014.

Expanding its biologies footprint further, AstraZeneca purchased a high-tech biologies bulk manufacturing facility from Amgen, growing its biologies manufacturing capability in the U.S. The Lake Center facility, located in Boulder, CO, is expected to be operational and licensed for commercial production by late 2017. Down the road, the company said this site will eventually double the biologies manufacturing capacity in the U.S. to accommodate its maturing pipeline.

Further supporting its push into biologies, AstraZeneca, through MedImmune, entered into a license agreement and collaboration with Inovio Pharmaceuticals, a biotechnology company developing DNA-based immunotherapies for cancer and infectious diseases. MedImmune acquired exclusive rights to Inovio's INO-3112 immunotherapy, which targets cancers caused by human papillomavirus (HPV) types 16 and 18. INO3112, which is in Phase I/II clinical trials for cervical and head and neck cancers, works by generating killer T-cell responses that are able to destroy HPV 16- and 18-driven tumours. These HPV types are responsible for more than 70 percent of cervical pre-cancers and cancers.

MedImmune made an upfront payment of $27.5 million to Inovio as well as potential future payments upon reaching development and commercial milestones totaling up to $700 million. MedImmune will fund all development costs. Inovio is entitled to receive up to double-digit tiered royalties on INO-3112 product sales. MedImmune intends to study INO3112 in combination with selected immunotherapy molecules within its pipeline in HPV-driven cancers. Emerging evidence suggests that the benefits from immuno-oncology molecules, such as those in MedImmune's portfolio, can be enhanced when they are used in combination with cancer vaccines that generate tumour-specific T-cells.

During the year MedImmune also formed a strategic alliance with WuXi AppTec to bring research and technical capability for biologies to China. AstraZeneca will have the option to acquire WuXi's biologies manufacturing facility in Wuxi city in the next few years. Prior to that, WuXi Biologies remains the exclusive partner for R&D manufacturing for MedImmune's innovative biologies in China. The alliance builds on the existing joint venture between the companies formed in 2012 to develop and commercialize MEDI5117, a biologic for autoimmune and inflammatory diseases. The IND application was subsequently accepted by CFDA for review in March 2015. WuXi will continue manufacturing for the program at its cGMP facilities. WuXi is building its largest biomanufacturing facility using 14 2000L and two 1000L disposable bioreactors to support late-phase clinical and commercial manufacturing. The first phase of the facility will be operational in January 2017.

AstraZeneca also formed a three-year collaboration with Orca Pharmaceuticals, a UK-based biopharmaceutical company, to develop inhibitors of retinoic acid-related orphan nuclear receptor gamma (ROR[gamma]). Inhibitors of this receptor are believed to have potential against a wide range of autoimmune diseases for which there is currently no safe, orally available and effective treatment.

ROR[gamma] plays a key role in the immune system. Specifically, it helps to convert a population of immune cells called CD4+ T cells into T-helper 17 (TH17) cells, which, in turn, produce chemicals (cytokines) that drive the immune response. However, excessive activity of TH17 cells and other ROR[gamma]+ immune cells have been implicated in a wide range of autoimmune conditions such as inflammatory bowel disease, psoriasis, arthritis and multiple sclerosis.

AstraZeneca gains access to ROR[gamma] inhibitors developed by Orca Pharmaceuticals and will integrate these into its in-house program. Working together, scientists from AstraZeneca and Orca Pharmaceuticals will identify lead compounds from this program for progression and characterize the autoimmune condition to which the lead compounds are best suited. Orca Pharmaceuticals received an upfront payment with potential future milestone payments from AstraZeneca dependent on the success of their ROR[gamma] inhibitors in the program with a potential total value of $122.5 million. AstraZeneca has the option to acquire the Orca compounds at the end of the collaboration.

AstraZeneca formed some other collaborations of note in 2015. Together with Pelago Bioscience AB, it entered into a 2-year strategic research collaboration and license agreement. The companies will collaborate on specified joint projects and AstraZeneca will also be granted a license to use and apply the Cellular Thermal Shift Assay (CETSA) for determination and quantification of drug-target interactions in other AstraZeneca discovery projects.

Peregrine Pharmaceuticals expanded its ongoing cancer immunotherapy clinical collaboration with AstraZeneca to include a second, late-stage trial. The companies will now evaluate the combination of Peregrine's phosphatidylserine (PS)-targeted immune-activator, bavituximab, and AstraZeneca's anti-PD-L1 immune checkpoint inhibitor, durvalumab (MEDI4736), in a global Phase II study in previously treated squamous or non-squamous non-small cell lung cancer (NSCLC). Peregrine will conduct the randomized Phase II trial.

Valeant Pharmaceuticals' affiliate entered into a collaboration agreement with AstraZeneca under which Valeant was granted an exclusive license to develop and commercialize brodalumab, an IL-17 receptor monoclonal antibody in development for moderate-to-severe plaque psoriasis and psoriatic arthritis.

Lastly, Charles River Laboratories and AstraZeneca extended their initial three-year partnership for an additional five-year period through 2020. Charles River retains its position as AstraZenca's preferred strategic partner for outsourced regulated safety assessment and development DMPK (drug metabolism and pharmacokinetics).
10 ABBVIE

Headquarters: North Chicago, IL
twitter.com/abbvie
www.abbvie.com

HEADCOUNT:          28,000
YEAR ESTABLISHED:   2013
REVENUES:           $22,859                        (+15%)
NET INCOME:         $5,144                         (+190%)
R&D:                $4,285                         (+30%)

DRUGS APPROVED

DRUG                INDICATION

Imbruvica           chronic lymphocytic
                    leukemia, Waldenstrom's
                    macroglobulinemia
Zinbryta            multiple sclerosis once
                    monthly
Viekira Pak         chronic hepatitis C virus
Venclexta           chronic lymphocytic leukemia
Viekirax            genotype 1 chronic
                    hepatitis C
Humira              moderate to severe
                    hidradenitis suppurativa
Technivie           genotype 4 chronic
                    hepatitis C

DRUGS PENDING

DRUG                INDICATION

Humira              non-infectious uveitis,
                    pediatric Crohn's disease

PHASE IIB AND BEYOND

DRUG                INDICATION

ABT-199             chronic lymphocytic leukemia
Imbruvica           pancreatic cancer, DLBCL
Duvelisib           chronic lymphocytic leukemia
Elotuzumab          multiple myeloma
Veliparib           NSCLC, breast cancer,
                    ovarian cancer
ABT-494             rheumatoid arthritis
ABT-493 / ABT-530   hepatitis C
Elagolix            endometriosis
Atrasentan          diabetic nephropathy

EARLY RESEARCH PROJECTS

DRUG                INDICATION

ABBV-838            multiple myeloma
ABT-399             solid tumors
BTK Inhibitor       autoimmue disorders
ABBV-084            systemic lupus erythematosus
ABBV-672            Alzheimer's disease
ABBV-8E12           progressive supranuclear
                    palsy, Alzheimer's disease
ABBV-974            cystic fibrosis

DRUGS COMING OFF PATENT

DRUG                INDICATION                     YEAR

Humira              rheumatoid arthritis           2016-2018
Kaletra             HIV/AIDS                       2016-2018
Biaxin XL           bacterial infections           2017
Simcor              cholesterol                    2017
Niaspan             cholesterol                    2017
Avicor              cholesterol                    2017
Vicoprofen          pain                           2017

TOP SELLING DRUGS

DRUG                INDICATION                     2015 SALES   (+/-%)

Humira              rheumatoid arthritis           $14,012      12%
Viekira             hepatitis C                    $1,639       n/a
Synagis             RSV                            $740         -11%
AndroGel            testosterone                   $694         -26%
Lupron              hormone treatment              $826         6%
Kaletra             HIV/AIDS                       $700         -20%
Imbruvica           chronic lymphocytic            $754         n/a
                    leukemia
Synthroid           hyperthyroidism                $755         6%
Creon               digestion                      $632         23%
Sevoflurane         anesthesia                     $474         -14%


AbbVie's revenues increased more than 22%, to $22.8 billion in 2015. The biopharma company has continued to drive significant growth from its leading product Humira, with 2015 sales of $14 billion, an increase of 19% compared to 2014. The company also expanded its flagship therapies to include the HCV franchise and oncology product Imbruvica, a first-in-class BTK inhibitor, which positions AbbVie as an oncology leader. Additionally, during the year AbbVie received FDA approval of Duopa for patients with Fhrkinson's disease in the U.S. AbbVie has a growing number of programs in mid- and late stage development, and it continues to make significant pipeline advancements. During the year, it submitted regulatory submissions for Venetoclax for relapsed/refractory chronic lymphocytic leukemia (CLL); Imbruvica for first-line CLL; Zynbryta for multiple sclerosis; and Humira for uveitis. The company also successfully transitioned several mid-stage pipeline assets into late-stage development, including its JAK1 inhibitor, ABT-494, in rheumatoid arthritis; a pan-genotypic, next-generation HCV combination therapy; elagolix for uterine fibroids; and ABT-414, an antibody drug conjugate for glioblastoma multiforme.

The big news during the year occurred in March when AbbVie announced it was buying Pharmacyclics, a biopharmaceutical company that develops and commercializes novel therapies for cancer treatment. The $21 billion deal closed in May 2015 and expands AbbVie's clinical and commercial presence in oncology giving it ownership of Pharmacyclics' flagship asset Imbruvica, a highly effective treatment for hematologic malignancies.

Imbruvica is a Bruton's tyrosine kinase (BTK) inhibitor approved for four indications to treat three different types of blood cancers including chronic lymphocytic leukemia, mantle cell lymphoma and Waldenstrom's macroglobulinemia. Imbruvica received FDA approval in 2013 and is the only therapy to have received three Breakthrough Therapy designations by the FDA. It is currently approved in more than 40 countries

Potential further Imbruvica indications include solid tumors, as well as the potential to leverage AbbVie's immunology expertise for the development of Pharmacyclics'immunology program, and advance AbbVie's efforts in hematologic malignancies.

Expanding its manufacturing capabilities, AbbVie announced during the year the expansion of one of its existing sites in Puerto Rico with an estimated investment of $30 million. This expansion will add to Puerto Rico's capabilities as a manufacturing destination for biotechnology and is expected to create as many as 100 new jobs during the next two years. The expansion will take place at AbbVie's site located in the northern municipality of Barceloneta. This site is already home to two of the company's state-ofthe-art facilities.

At the tail end of 2014, AbbVie expanded capacity to support its immunology and oncology pipelines when it acquired a small molecule API manufacturing site in Singapore's Tuas Biomedical Park. AbbVie's first manufacturing facility in Asia, the 120,000 square meter site increases capacity for compounds in its immunology and oncology pipelines. It includes a contained API facility, additional buildings, and ancillary equipment.

AbbVie will also construct a bulk biologies manufacturing facility on the property, which is expected to be operational in 2019. The combined facilities will add more than 250 new employees, including positions across manufacturing, technical operations, administration, quality, IT and supply chain. The company is also renovating its small molecule facility.

On the research front, AbbVie and Calico entered an R&D collaboration to discover, develop and market new therapies for age-related diseases, including for neurodegeneration and cancer. Calico is funded by Google and led by former Genentech executives Arthur Levinson and Hal Barron. Calico will establish a new R&D facility in the San Francisco Bay Area with a focus on drug discovery and early drug development and AbbVie will provide scientific and clinical development support, as well as its commercial expertise. Together, the firms will initially contribute as much as $250 million to fund the collaboration with the potential for an additional $500 million each.

Calico will be responsible for research and early development for the first five years and to advance collaboration projects through Phase Ha for a 10-year period. AbbVie will support Calico in its early R&D efforts and, following Phase Ha studies, will have the option to manage late-stage development and commercial activities.

At the start of 2015 AbbVie opened an Innovation Center on the campus of the University of Illinois Research Fhrk in Urbana-Champaign. The Innovation Center plans to employ more than 18 undergraduate and graduate students on a part-time basis. Eight students have begun working on several AbbVie R&D Information Technology projects, which is the initial focus of work at the center.

Students will work on real-world projects ranging from utilizing visualization software in clinical trial research, to harnessing the power of reporting tools for the identification of additional areas of research, to using informatics, text mining and other analytics software in medical research. An AbbVie site manager will oversee the students and serve as liaison between the AbbVie Innovation Center and the University.

In other news, AbbVie entered a global collaboration and license agreement with Halozyme Therapeutics to develop and commercialize products combining AbbVie compounds with Halozyme's Enhanze platform. Halozyme received $23 million upfront and milestone payments totaling approximately $130 million for as many as nine collaboration targets, as well as royalties if products under the collaboration are commercialized. The Halozyme Enhanze platform is based on a recombinant human hyaluronidase enzyme (rHuPH20) that temporarily degrades hyaluronan, a chain of natural sugars in the body, to aid in the dispersion and absorption of other injected therapeutic drugs. For AbbVie, this technology may allow for more rapid delivery of injectable medications through subcutaneous delivery.

Another collaboration saw AbbVie enter into an exclusive worldwide license agreement with C2N Diagnostics to develop and commercialize a portfolio of anti-tau antibodies for the treatment of Alzheimer's Disease and other neurological disorders. Tau stabilizes proteins that are responsible for the structure and transport in neuronal cells. Abnormal accumulation of altered tau protein is a leading indicator in a variety of neurodegenerative conditions including Alzheimer's Disease, Progressive Supranuclear Palsy and Corticobasal Degeneration. In these conditions, the development of tau pathology strongly correlates with clinical disease progression.

At the very beginning of 2016, AbbVie and MD Anderson Cancer Center entered a three-year immunotherapy collaboration to efficiently select and conduct preclinical and clinical studies evaluating new ideas in the area of immuno-oncology. AbbVie's research efforts in immunotherapy leverage the company's strengths in biology, protein engineering and chemistry. MD Anderson's immunotherapy platform includes technology for preclinical modeling, clinical trials and immune monitoring before, during and after treatment to better understand drug mechanisms and identify biomarkers to guide treatment. AbbVie and MD Anderson will each assign two scientists to a joint scientific committee to decide on projects to pursue. The collaboration will initiate with projects driven by AbbVie Biotherapeutics, AbbVie's center of innovation in the biotech hub of the San Francisco Bay Area. Future projects will draw from AbbVie's portfolio of oncology programs.
11 AMGEN

Headquarters: Thousand Oaks, CA
twitter.com/Amgen
www.amgen.com

HEADCOUNT:          17,900
YEAR ESTABLISHED:   1980
REVENUES:           $21,662                            (+8%)
NET INCOME:         $6,939                             (+35%)
R&D:                $3,917                             (-5%)

DRUGS APPROVED/LAUNCHED

DRUG                INDICATION

Repatha             high cholesterol
Kyprolis            relapsed multiple myeloma
Imlygic             unresectable melanoma

DRUGS PENDING

DRUG                INDICATION

Enbrel              chronic severe plaque psoriasis
Blincyto            pediatric and adolescent
                    relapsed or refractory B-cell
                    precursor acute lympho-blastic
                    leukemia
etelcalcetide       secondary hyperparathyroidism

DRUGS IN PHASE IIB AND BEYOND

DRUG                INDICATION

AMG 334             prophylaxis of migraine
Aranesp             myelodysplastic syndromes
Kyprolis            multiple myeloma who have
                    received at least one prior
                    therapy
Parsabiv            secondary hyperparathyroidism
Prolia              glucocorticoid-induced
                    osteoporosis
Romosozumab         osteoporosis
Vectibix            wild-type KRAS exon 2 mCRC
Xgeva               prevention of bone metastases in
                    patients with adjuvant breast
                    cancer

EARLY RESEARCH PROJECTS

DRUG                INDICATION

AMG 211             cancer
AMG 224             multiple myeloma
AMG 228             solid tumors
AMG 232             cancer
AMG 301             migraine
AMG 319             hematologic malignancies
AMG 330             acute myeloid leukemia
AMG 557             systemic lupus erythematosus
AMG 592             inflammatory diseases
AMG 820             cancer
OPROZOMIB           hematologic malignancies

DRUGS COMING OFF PATENT

DRUG                INDICATION                         YEAR

Neulasta            rheumatoid arthritis               2017
Sensipar            primary                            2016
                    hyperparathyroidism

TOP SELLING DRUGS

                                                       2015
DRUG                INDICATION                         SALES    (+/-%)

Enbrel              rheumatoid arthritis               $5,364   14%
Neulasta            neutropenia                        $4,715   3%
Aranesp             anemia                             $1,951   1%
Epogen              anemia                             $1,856   -9%
Sensipar/Mimpara    renal disease                      $1,415   22%
Xgeva               bone cancer                        $1,405   15%
Prolia              bone cancer                        $1,312   27%
Neupogen            neutropenia                        $1,049   -9%
Vectibix            colorectal cancer                  $549     9%
Nplate              immune thromboytopenia             $525     12%
Kyprolis            multiple myeloma                   $512     55%


Holding steady at 11 once again this year, Amgen, the grandfather of biopharma, is certainly consistent and key drug approvals for Kyrpolis in multiple myeloma and cholesterol drug Repatha, as well as Imlygic in metastatic melanoma, may help offset some patent losses for key products in the next few years.

Amgen is off to a good start this year. Revenues were up 10% in the first quarter to $5.5 billion, with 7% product sales growth driven by Enbrel (+24%), Prolia (+29%), Aranesp (+11%), Neulasta (+4%), Kyprolis (+43%) and XGEVA (+11%). Earnings were up 17% to $1.9 billion. Overall, Amgen had nine drugs that saw double-digit percentage growth in 1Q16. However, sales of Neupogen were down 13% impacted by the launch of Sandoz's biosimilar Zarxio in the U.S.

The company is challenged with patent expirations for several significant drugs. Biosimilar rivals for Neupogen and Epogen are beginning to hurt sales, and Neulasta will soon face the same fate. Enbrel could also face biosimilar competition soon. Sandoz's biosimilar version of Enbrel is expected to come up before the FDA's Arthritis Advisory Committee next month. The 10-month review process could mean approval by mid 2016, although a launch will depend on the outcome of patent litigation between the two companies. The original patent on Enbrel was set to expire October 2012, but Amgen says it's protected from biosimilar competition until 2029.

Amgen is pursuing the biosimilar market as well with nine biosimilar candidates representing potential annual revenues of more than $3 billion. The company plans to launch its first biosimilar in 2017, and subject to approval, four others through 2019.

The FDA's Arthritis Advisory Committee will review data supporting the company's biologies license application for ABP 501, a biosimilar version of AbbVie's best-selling drug, Humira, and a final decision regarding approval is expected by September 25th. It's also under review in the EU. Humira, used to treat rheumatoid arthritis and a number of other inflammatory diseases, had sales of $14 billion in 2015 and is among the top-selling drug products in the U.S.

Nevertheless, innovative pipeline advances are key to sustaining Amgen's long-term strength. Kyprolis, approved for relapsed multiple myeloma, also got a positive CHMP opinion for expanding the label to include treatment in combination with dexamethasone for patients with multiple myeloma who have received at least one prior therapy. Kyprolis' label was expanded in the U.S. earlier this year for this indication and is well-positioned to gain market share.

Recent analyses from Phase III studies of Kyprolis, a product of Amgen's subsidiary Onyx Pharmaceuticals, showed patients with relapsed multiple myeloma live longer without disease progression. Additional analysis based on a head-to-head trial showed Kyprolis with Lenalidomide and Dexamethasone offers substantial value over previous standard of care, and that Kyprolis and Dexamethasone doubled progression-free survival versus Takeda'sVelcade (Bortezomib) and Dexamethasone.

Also, Repatha was approved last August for the treatment of persistently high LDL cholesterol. Studies showed that patients experienced approximately 65% reduction in LDL-C from baseline to end of study.

As far as cholesterol drugs go, Repatha and Sanofi/Regeneron's Praluent are considered breakthrough therapies for hardto-treat patients and are the first highly effective cholesterollowering medications in a generation. Repatha's cost is $14,100 per year but as the companies are battling it out to gain payer reimbursements, discounts and deals are unfolding. For example, in the U.S. Express Scripts agreed to offer both Praluent and Repatha on its formulary in exchange for discounts, while Praluent will be UnitedHealth Group's "preferred" drug for treating high LDL cholesterol and Amgen won a formulary exclusive with CVS.

Lastly, Imlygic, approved for melanoma, has become the first oncolytic viral therapy approved by the FDA based on therapeutic benefit. Imlygic is derived from a herpes simplex virus that has been genetically engineered to infect cancer cells and cause cell death. While the drug has not been shown to improve overall survival, its unique approach provides another option for treating this complex disease that often requires the use of several therapeutic modalities.

Amgen anticipates the average cost of this novel, first-in-class oncolytic viral therapy to be approximately $65,000 and expects variability of IMLYGIC dosing from patient to patient.

Amgen also has collaborations to study the use of Imlygic in combination with two PD-1 inhibitors, Merck's Keytruda (pembrolizumab) and Roche's atezolizumab (MPDL3280A). With Merck, the combination is being tested in Phase I open-label trials in melanoma and head and neck cancer, and in a Phase III randomized trial in melanoma. The Roche collaboration is studying Imlygic with atezolizumab in a Phase I study in triple-negative breast cancer and metastatic colorectal cancer. Data indicate that combining the two modalities has a synergistic effect, and the combination has a better side effect profile than the combination of two checkpoint inhibitors.

Imlygic joined Amgen's portfolio with the January 2011 acquisition of Biovex Group, a privately held, venture-funded, biopharma company headquartered in Woburn, MA, in a deal worth as much as $1 billion, of which $475 million was paid up front, with additional payments of $575 million based on certain regulatory and sales milestones.

Considering the highly lucrative biosimilars market, competition is certainly intensifying. If Amgen can hold off Enbrel competition, it stands to recoup some losses with its late stage biosimilar assets, as well as advance the twelve Phase III clinical studies currently underway.
12 LILLY

Headquarters: Indianapolis, IN
twitter.com/EliLillyCo
www.lilly.com

HEADCOUNT:               41,000
YEAR ESTABLISHED:        1876
REVENUES:                $19,959                   (+2%)
NET INCOME:              $2,408                    (+1%)
R&D:                     $4,796                    (+1%)

DRUGS APPROVED

DRUG                     INDICATION

Ixekizumab               moderate-to-severe
                         plaque psoriasis
Jentadueto XR            type 2 diabetes
Humulin R U-500          severely insulin-
                         resistant diabetes
Basaglar                 type 1 and type 2
                         diabetes
Portrazza                metastatic squamous
                         non-small cell lung
                         cancer
Synjardy                 type 2 diabetes
Humalog 200              type 1 and type 2
                         diabetes

DRUGS PENDING

DRUG                     INDICATION

Baricitinib              rheumatoid arthritis
Olaratumab               advanced sarcoma
Empagliflozin            cardiovascular outcomes

PHASE IIB AND BEYOND

DRUG                     INDICATION

Nasal glucagon           severe hypoglycemia in
                         diabetes
BACE-AZD3293             Alzheimer's disease
Galcanezumab             cluster headache,
                         chronic and episodic
                         migraine
Solanezumab              Alzheimer's disease
Tanezumab                osteoarthritic pain,
                         cancer pain
Abemaciclib              breast cancer
Empagliflozin            type 1 diabetes
Ramucirumab              2nd line bladder
                         cancer, hepatocellular
                         carcinoma, EGFR
                         positive NSCLC

EARLY RESEARCH PROJECTS

DRUG                     INDICATION

BAFF/IL-17               immune diseases
VEGFR-1 Mab              diabetic nephropathy
D1 potentiator           dementia
Met/EGFR                 bispecific cancer
BTK inhibitor            immunology
N3pG-AB MAb              Alzheimer's disease
Pan-Rat                  cancer
Pomaglumetad methionil   schizophrenia
Blosozumab               osteoporosis
DGAT-2 inhibitor         dyslipidemia
CSF-1R MAb               cancer

DRUGS COMING OFF PATENT

DRUG                     INDICATION                YEAR

Alimta                   nonsquamous non-small     2016-2017
                         cell lung cancer
Cialis                   erectile dysfunction      2017
Zyprexa                  depression                2017
Stmbyax                  depression                2017
Seroquel XR              antipsychotic             2017

TOP SELLING DRUGS

DRUG                     INDICATION                2015 SALES   (+/-%)

Alimta                   cancer                    $2,493       -11 %
Humalog                  diabetes                  $2,842       2%
Cialis                   erectile dysfunction      $2,311       1%
Cymbalta                 anxiety, depression       $1,028       -36%
Humulin                  diabetes                  $1,307       -7%
Forteo                   osteoporosis              $1,348       2%
Zyprexa                  schizophrenia             $940         -9%
Strattera                ADHD                      $784         6%
Effient                  anticoagulant             $523         0%
Erbitux                  head and neck cancer      $485         30%


In 2015 Lilly returned to revenue growth, led by Cyramza and Trulicity following their launches, with significant contributions from its enlarged animal health business, which got a boost after it completed the acquisition of Novartis Animal Health for $5.28 billion at the start of the year under review. Revenue increased 2 percent to $19.96 billion, with six products topping $1 billion in annual sales.

Lilly also reported positive advances in its pipeline of molecules in clinical development. Highlights include: in diabetes, positive cardiovascular outcomes data for Jardiance; in immunology, four positive Phase III studies on baricitinib and strong Phase III data on ixekizumab; and in oncology, Breakthrough Therapy Designation for olaratumab and abemaciclib, several important business development deals in immuno-oncology, and the approval of Portrazza for the treatment of metastatic squamous non-small cell lung cancer late in the year.

The year was active for Lilly on the collaboration front, which saw it expand already existing agreements and form new alliances as well. With Innovent Biologies, Lilly has in place a plan to develop and commercialize a portfolio of cancer treatments. In 2015 the two companies expanded the drug development collaboration, already one of the largest in China between a multinational and domestic biopharmaceutical company. The companies said they will collaborate to support the development and potential commercialization of up to three anti-PD-1 based bispecific antibodies for cancer treatments over the next decade, both inside and outside of China. Lilly will exercise its rights to develop, manufacture and commercialize these potential cancer treatments outside of China, while Innovent will now have the rights to develop, manufacture and commercialize these potential cancer treatments for China.

Also in China, WuXi PharmaTech (Cayman) and Lilly entered into a strategic collaboration to develop, manufacture and commercialize a novel small molecule.The once-daily oral agent, discovered by Lilly, has the potential to address cardiovascular risk in patients with dyslipidemia. An estimated 276 million patients in China are affected by these conditions. The drug aims to reduce cardiovascular events in patients with elevated LDL cholesterol and triglycerides at high risk of cardiovascular events. WuXi will be responsible for regulatory, development and manufacturing activities in China and Lilly will be responsible for commercial activities. Both companies will invest in this potential new medicine in China. An Investigational New Drug (IND) application will be filed in China by WuXi, and product development and registration will take place within China.

[ILLUSTRATION OMITTED]

A collaboration agreement was formed with Hanmi to develop and commercialize Hanmi's compound being investigated for the treatment of autoimmune and other diseases. Lilly received rights to the molecule for all indications on a worldwide basis excluding China, Hong Kong, Taiwan, and Korea, and will be responsible for leading development, regulatory, manufacturing, and commercial efforts in our territories.

Another research collaboration with BioNTech aims to discover novel cancer immunotherapies. The companies will collaborate to identify and validate tumor targets and their corresponding T cell receptors (TCRs) in one or more types of cancer. These tumor targets and TCRs may then be engineered and developed into potent and selective cancer therapies.

Lilly entered a global collaboration and license agreement with Halozyme to develop and commercialize products combining its proprietary compounds with Halozyme's Enhanze platform to aid in the dispersion and absorption of other injected therapeutic drugs. For Lilly, this technology may allow for more rapid delivery of injectable medications through subcutaneous delivery.

Toward the end of the year, Lilly and Merck extended an existing collaboration to evaluate the safety and efficacy of the combination of Lilly's Alimta (pemetrexed for injection) and Merck's Keytruda (pembrolizumab) in a Phase III study in first-line non-squamous non-small cell lung cancer (NSCLC). The expansion of this oncology trial collaboration follows encouraging data from a Phase I study, which evaluated pemetrexed, carboplatin and pembrolizumab in first-line nonsquamous NSCLC.

Lilly and AstraZeneca also extended their existing immuno-oncology collaboration exploring novel combination therapies for the treatment of solid tumors. The companies will now evaluate the safety and efficacy of a range of additional combinations across their portfolios. Lilly will lead the studies and both companies will contribute resources. Earlier in the year, the companies entered a Phase I clinical trial collaboration to evaluate the safety and preliminary efficacy of combining durvalumab and ramucirumab as a treatment for patients with advanced solid tumors.

R&D EXPANSIONS

In November Lilly unveiled plans to expand its global R&D headquarters in Indianapolis, IN, adding 130,000 square feet to its existing complex. The $70 million investment will feature a multi-disciplinary lab that facilitates collaboration across multiple research functions. The new building is part of Lilly's continued growth of its Indianapolis footprint, which included a $400 million expansion initiated in 2013 to increase its insulin manufacturing capacity.

When complete in 2017, the new building will enable chemists and engineers to work together a collaboration-centric workspace with modelling, analytical and formulation scientists. The company's strategy incorporates flexible labs that can adapt as research and technology needs evolve, as well as open, interactive meeting spaces that are meant to promote multi-disciplinary problem-solving.

The lab will focus its efforts on small molecules, which currently comprise about half of Lilly's investigational drug portfolio.

In May, Lilly unveiled plans to establish a new drug delivery and device innovation center in Cambridge, MA, which was opened by year's end. The Lilly Cambridge Innovation Center is designed to allow life science organizations to explore how emerging technologies and connectivity can advance drug delivery and device innovation. The center increases the company's delivery and device R&D space by nearly 50% and increasing staff by 25%.

According to the company, the center will serve as a portal for external partnerships and collaboration activities with the company's existing research facilities in San Diego, New York City and Indianapolis. During the year Lilly also said it expanded the San Diego biotech center as well as its presence at the Alexandria Center for Life Science in New York, NY.

More than half of the company's pipeline now comprises biologies that require some type of injection. The company expects its revenues from device-enabled products to double by 2020.
13 TEVA

Headquarters: Petach Tivka, Israel
twitter.com/tevapharm
www.tevapharm.com

HEADCOUNT:                   42,888
YEAR ESTABLISHED:            1901
REVENUES:                    $19,652                   (-3%)
SPECIALTY PHARMA REVENUES:   $8,338                    (-3%)
NET INCOME:                  $1,597                    (-48%)
R&D:                         $1,525                    (+2%)

DRUGS APPROVED

DRUG                         INDICATION

ProAir RespiClick            pediatric asthma
Cinqair                      severe asthma

DRUGS PENDING

DRUG                         INDICATION

Vantrela ER abuse            pain
deterrent
TEV-90109                    opioid addiction
Copaxone 40mg                multiple sclerosis
SD-809                       Huntington disease
Reslizumab IV                asthma
Fluticasone                  asthma, COPD
Salmeterol Spiromax

PHASE IIB AND BEYOND

DRUG                         INDICATION

TEV-48125                    chronic and episodic
                             migraine
TV-46763                     pain
Laquinimod                   multiple sclerosis
SD-809                       Tardive dyskinesia
Fluticasone                  asthma
Propionate MDPI
Reslizumab SC                asthma
CEP-41750                    chronic heart failure

EARLY RESEARCH PROJECTS

DRUG                         INDICATION

TV-46139                     pain
SD-809                       Tourette syndrome
SD-1077                      Parkinson's disease
SD-560                       Idiopathic pulmonary
                             fibrosis
Fluticasone Salmeterol       asthma, COPD
TEV-46017                    COPD
TEV-90110                    HIV
TEV-90111                    HIV

DRUGS COMING OFF PATENT

DRUG                         INDICATION                YEAR

Azilect                      Parkinson's disease       2017

TOP SELLING DRUGS

                                                       2015
DRUG                         INDICATION                SALES    (+/-%)

Copaxone                     multiple sclerosis        $4,023   -5%
Treanda                      cancer                    $741     -3%
ProAir                       asthma                    $549     15%
Azilect                      Parkinson's disease       $384     -10%
Nuvigil                      insomnia                  $373     -4%
Qvar                         asthma                    $392     37%


Generic drug giant Teva reported sales of $19.7 billion in 2015. The company's generics business generated 49% of total revenue and includes tablets, capsules, injectables, inhalants, liquids, ointments and creams. Teva is the leading generic drug company in the U.S. and Europe, with 51% of generic revenues in the United States, 28% in Europe and 21% in ROW markets.

Teva's specialty medicines segment includes several franchises, most significantly in the therapeutic areas of central nervous system (CNS) medicines, such as Copaxone, Azilect, Nuvigil and Zecuity and respiratory medicines such as ProAir HFA and QVAR. The specialty medicines segment was responsible for 42% of total revenue and includes other therapeutic areas, such as oncology and women's health.

The big news during the year came on the heals of a failed bid to buy Mylan. After the deal fell through Teva got back on the acquisition horse and acquired Allergan Generics for $40.5 billion, bringing together two leading generics businesses and catapulting Teva to the top of the generic leader board.

When combined, with Teva's strong generics portfolio, Allergan Generics' generics pipeline, which holds a leading position in first-to-file opportunities in the U.S., further enhances Teva's stated goals of delivering the highest quality generic medicines at the most competitive prices and cultivating the best development pipeline in the industry. The resulting world-class product portfolio will be complemented by an expanded and more efficient global footprint, including leadership positions and strengthened operations, sales and R&D platforms in markets around the world.

The transaction has also bolstered Teva's R&D capabilities in the generics industry, directed at fostering innovation, with approximately 320 combined pending ANDAs in the U.S., including exclusive offerings of approximately 110 U.S. FTF pending ANDAs.

During the year Teva also acquired Representacionese Investigaciones Medicas, S.A. de C.V. (Rimsa), a pharmaceutical manufacturing and distribution company in Mexico, along with a portfolio of products, assets, and companies in Latin America and Europe, for $2.3 billion. Rimsa had $227 million in revenues in 2014 with an annual growth of 11%. The company has an extensive portfolio of specialty products, including fixed-dose combination products. The deal makes Teva a leading pharma company in Mexico, the second largest market in Latin America.

[ILLUSTRATION OMITTED]

Auspex Pharmaceuticals was also bought by Teva in a deal worth approximately $3.2 billion and expands Teva's CNS franchise. Auspex's lead investigational product, SD-809 (deutetrabenazine), leverages its deuterium technology platform, and is being developed for the potential treatment of chorea associated with Huntington's disease, tardive dyskinesia, and Tourette syndrome. The company expects commercial launch for this indication in 2016.

The year also saw Teva divest several assets. ANI Pharmaceuticals acquired 22 previously marketed generic drug products from Teva for $25 million in cash and a percentage of future gross profits from product sales. The acquisition includes 19 solid-oral dosage products, and three oral suspension products. ANI will initially focus to tech transfer four products that qualify as CBE30 filings into ANI's two manufacturing facilities; these four products have a combined trailing twelve month market value of $210 million, according to IMS Health. The total market value for the 22 products is $650 million on a trailing twelve-month basis, per IMS Health.

In other news, Ignyta, an oncology focused biopharma company, acquired worldwide rights and assets to four of Teva's targeted oncology development programs for approximately $41.6 million.

Several alliances were formed during the year as well. Notably, Teva and Takeda established a new business venture to meet a range of needs for generics in Japan. Japan is among the fastest growing generics markets in the world, driven by social requirements for stable supply of affordable high quality medicines and the Japanese government's policy of reduction of healthcare expenditures. Takeda's strong distribution presence in Japan will combine with Teva's supply chain, operational network, global commercial infrastructure, and R&D.

The business venture will offer patients and the healthcare system the portfolio of Teva's generic medicines and Takeda's products. Teva will have a 51% stake in the new company and Takeda will have 49%. The business venture will operate as an independent company with its own board of directors, chief executive officer, and executive leadership team.

In February 2015, Teva entered into an exclusive license agreement with Eagle Pharmaceuticals for Eagle's EP-3102, a bendamustine hydrochloride rapid infusion product. In December 2015, the FDA approved the product, Bendeka (bendamustine hydrochloride), an injection for the treatment of patients with chronic lymphocytic leukemia (CLL) and for the treatment of patients with indolent B-cell non-Hodgkin lymphoma (NHL) that has progressed during or within six months of treatment with rituximab or a rituximab-containing regimen. Teva is responsible for all U.S. commercial activities for the product including promotion and distribution. Bendeka became commercially available in January 2016.

Teva also entered a partnership to explore ways to apply Microchips Biotech's implantable drug delivery device to Teva's portfolio of products to enhance clinical outcomes for chronic drug therapies. Microchips Biotech's electronic device is made up of microchip arrays that can store hundreds of therapeutic doses of drug for periods ranging from months to years and releases each dose at precise times. The device can be programmed to release drug on a pre-determined schedule and will have wireless control features.

The partnership will initially focus on one selected disease area with the option to expand the program into several additional therapeutic areas. As programs advance, Microchips Biotech will receive development and commercial milestone payments and royalties on future product sales. Microchips will also receive funding to develop products for any future additional indications Teva may develop, and Teva will be responsible for Phase II and III development and regulatory filings.

Lastly, Teva entered an agreement to acquire Gecko Health Innovations, a software and product solutions company that aids in compliance and adherence improvement in the management of respiratory diseases. As a result of the deal, Teva gains CareTRx, a cloud-based solution designed to simplify chronic respiratory disease management, connecting patients and caregivers through remote monitoring and real-time adherence tools. Teva will explore ways to apply the CareTRx technology to its pipeline and portfolio of respiratory products with the goal of enhancing clinical outcomes.
14 BRISTOL-MYERS SQUIBB

Headquarters: New York, NY
twitter, com/bmsnews
www.bms.com

HEADCOUNT:              25,000
YEAR ESTABLISHED:       1887
REVENUES:               $16,560                        (+4%)
NET INCOME:             $1,624                         (-19%)
R&D:                    $5,920                         (+31%)

DRUGS APPROVED

DRUG                    INDICATION

Opdivo                  classical Hodgkin lymphoma,
                        advanced renal cell
                        carcinoma, BRAF advanced
                        melanoma
Empliciti               multiple myeloma
Opdivo + Yervoy         advanced melanoma
Daklinza                genotype 1 or 3 chronic
                        hepatitis C
Yervoy                  cutaneous melanoma
Evotaz                  HIV-1
Nivolumab               metastatic squamous
                        non-small cell lung cancer

PHASE IIB AND BEYOND

DRUG                    INDICATION

Prostvac                immuno-oncology
IKur Inhibitor          cardiovascular
PEG-FGF21 (1)           fibrotic diseases
LPA1 Antagonist         fibrotic diseases
Pentraxin-2             genetically defined diseases
Lulizumab               immunoscience

EARLY RESEARCH PROJECTS

DRUG                    INDICATION

PAR4 Antagonist         cardiovascular
Factor Xla Inhibitor    cardiovascular
PEG-FGF21 (2)           fibrotic diseases
Galectin-3 Inhibitor    fibrotic diseases
Anti-eTau               genetically defined diseases
Anti-Myostatin          genetically defined diseases
Lirilumab (Anti-KIR)    immuno-oncology
Urelumab (Anti-CD137)   immuno-oncology
Anti-PD-L1              immunoscience
Anti-CD40L              immunoscience
Mesothelin-ADC          oncology
Ulocuplumab             oncology

DRUGS COMING OFF PATENT

DRUG                    INDICATION                     YEAR

Reyataz                 HIV/AIDS                       2018
Sustiva                 HIV/AIDS                       2018

TOP SELLING DRUGS

                                                       2015
DRUG                    INDICATION                     SALES    (+/-%)

Orencia                 rheumatoid arthritis           $1,885   14%
Eliquis                 deep vein thrombosis           $1,860   n/a
                        and pulmonary embolism
Sprycel                 leukemia                       $1,620   9%
Baraclude               hepatitis B                    $1,312   -9%
Sustiva                 HIV/AIDS                       $1,252   -13%
Franchise
Reyataz                 HIV/AIDS                       $1,139   -16%
Yervoy                  oncology                       $1,126   -14%
Opdivo                  melanoma, lung cancer,         $942     n/a
                        renal cancer


Investing in the future of its R&D operations is a top priority for Bristol-Myers Squibb (BMS), which recorded sales of $16.56 billion in the year under review. On the R&D front BMS bolstered its organization when it unveiled plans to expand its presence within hubs of scientific excellence and innovation with the opening of a new state-of-the-art research site in Cambridge, MA, in addition to the ongoing expansion of the company's R&D Discovery site in the San Francisco Bay Area.

The new facility in Cambridge is expected to open in 2018 while the ongoing site expansion in the San Francisco Bay Area adds 61,000 square feet of laboratory and office space at the Woodside Technology Park life science campus and is expected to be completed in 2016. Consistent with evolution of the R&D organization's strategic focus, which was previously announced in 2013, the company also discontinued discovery research efforts in virology. BMS made a deal during the year with ViiV Healthcare to divest its pipeline of investigational HIV medicines in various stages of development, for $350 million upfront with potential development and regulatory milestone payments of as much as $518 million for clinical assets and as much as $587 million for discovery and pre-clinical programs.

In Cambridge, Bristol-Myers Squibb scientists will focus on the company's ongoing discovery efforts in genetically defined diseases, molecular discovery technologies and discovery platform chemistry. The company will relocate up to 200 employees from its Wallingford, CN, and Waltham, MA, sites, and a limited number from its central New Jersey locations. As part of this transition, the Waltham site is expected to close in early 2018. The existing site in Wallingford will also close in early 2018 with up to 500 employees relocating to a new location in Connecticut.

The Woodside Technology Park life science campus in the San Francisco Bay Area serves as BMS's Discovery hub for researching breakthrough cancer immunotherapies. The company will fully occupy two of the three buildings at the campus totaling 194,100 square feet and will provide additional capacity to conduct biologies drug discovery research. The site expansion is expected to be completed in 2016.

In other expansion news, at the tail end of 2014 BMS unveiled plans to construct a new large-scale biologies manufacturing facility in Dublin, Ireland to produce multiple therapies for the company's biologies portfolio. Once completed, the investment will in the new facility total nearly $1 billion and will significantly increase BMS's biologies manufacturing capacity and play a central role in its global manufacturing network.

[ILLUSTRATION OMITTED]

The company's portfolio of approved and investigational biologies covers multiple therapeutic areas including oncology, virology and immunoscience. The 30,000-square meter project will house six 15,000-liter bioreactors and a purification area as well as office and lab space. The plant will be built on the grounds of the company's existing bulk pharmaceutical manufacturing plant and the cost is expected to be comparable to the approximately $900 million investment in the company's biologies manufacturing facility in Devens, MA. Approximately 350 to 400 scientists, engineers, bioprocess operators, quality specialists and other professionals are expected to work at the facility when operational in 2019.

ACQUISITION HUNGRY

During the year, BMS made a $1.25 billion deal with Promedior to acquire its lead asset PRM-151, a recombinant form of human pentraxin-2 protein in Phase II development for the treatment of idiopathic pulmonary fibrosis (IPF) and myelofibrosis (MF). PRM-151 has been granted Fast Track designation in the U.S. and Orphan designation in the U.S. and Europe for the treatment of MF and Orphan Designation in the U.S. and Europe for the treatment of IPF. Promedior is a clinical stage immunotherapy company developing targeted therapeutics to treat fibrotic diseases. Total aggregate payments to Promedior under the agreement have the potential to reach $1.25 billion, which includes an upfront cash payment for the right to acquire Promedior, an exercise fee payable if Bristol-Myers Squibb elects to exercise its right to acquire the company, and subsequent clinical and regulatory milestone payments.

BMS also acquired Flexus Biosciences, a privately held biotechnology company focused on novel anti-cancer therapeutics, for a potential total consideration of $1.25 billion, including $800 million upfront and development milestones. BMS gains full rights to Flexus'lead preclinical small molecule, F001287, an IDO1-inhibitor targeted for IND filing in 2H15, as well as its IDO/TDO discovery program, which includes its IDO-selective, IDO/TDO dual and TDO-selective compound libraries. A newly formed entity established by the current shareholders of Flexus will retain all non-IDO/TDO assets of Flexus including those related to Phase I FLT3 and CDK4/6 inhibitor, its earlier stage small-molecule Treg cancer immunotherapy programs, and its current personnel and facilities.

BMS bought another private biotech, Cardioxyl Pharmaceuticals, which is focused on the discovery and development of novel therapeutic agents for the treatment of cardiovascular disease. The acquisition gives BMS full rights to Cardioxyl's lead asset CXL-1427, a novel nitroxyl (HNO) donor (prodrug) in Phase II clinical development as an intravenous treatment for acute decompensated heart failure (ADHF). The transaction includes upfront and near-term milestone payments of up to $300 million and potential additional consideration of up to $1.775 billion upon the achievement of certain development, regulatory and sales milestones.

In addition to acquisitions, BMS entered several strategic alliances during the year. Together with Bavarian Nordic it entered an agreement that provides it with an exclusive option to license and commercialize Prostvac, Bavarian Nordic's Phase III prostate-specific antigen (PSA)-targeting cancer immunotherapy in development for asymptomatic or minimally symptomatic metastatic castration-resistant prostate cancer (mCRPC).

Other collaborations include a deal between BMS and uniQure that provides BMS with exclusive access to uniQure's gene therapy technology platform for multiple targets in cardiovascular disease. With the Moffitt Cancer Center BMS entered into a collaboration agreement as part of its Immuno-Oncology Rare Population Malignancy (1-0 RPM) program in the U.S. Also, Five Prime Therapeutics entered into an exclusive worldwide license and collaboration agreement with BMS for the development and commercialization of its colonystimulating factor 1 receptor (CSF1R) antibody program, including FPA008 which is in Phase I development for immunology and oncology indications.
15 BOEHRINGER-INGELHEIM

Headquarters: Ingelheim, Germany
twitter.com/Boehringer
www.boehringer-ingelheim.com

HEADCOUNT:             47,501
YEAR ESTABLISHED:      1817
REVENUES:              $16,167                          (+11%)
NET INCOME:            $1,723                           (+51%)
R&D:                   $3,282                           (+13%)

DRUGS APPROVED

DRUG                   INDICATION

Giotrif                squamous cell carcinoma of the
Praxbind               lung reversal of the
                       anticoagulant effects of
                       dabigatran
Spiolto Respimat       COPD
Synjardy               type 2 diabetes
Glyxambi               type 2 diabetes
Vargatef               non-small cell lung cancer
Jentadueto XR          type 2 diabetes
Pradaxa                prophylaxis of deep venous
                       thrombosis and pulmonary
                       embolism in hip
                       replacement surgery

PHASE IIB AND BEYOND

DRUG                   INDICATION

Idarucizumab           reversal of anticoagulant
                       effect of dabigatran etexilate
Afatinib               head and neck squamous cell
                       carcinoma
Bl 695501              rheumatoid arthritis
Bl 695502              non-squamous non-small cell
                       lung cancer
Dabigatran etexilate   stroke prevention
Empagliflozin          type 1 and type 2 diabetes
Linagliptin            type 2 diabetes
Nintedanib             colorectal cancer

Volasertib             acute myeloid leukemia
Bl 409306              schizophrenia
Bl 655066              psoriasis, psoriatric
                       arthritis

EARLY RESEARCH PROJECTS

DRUG                   INDICATION

Bl 836845              prostate cancer
Bl 836826              non-hodgkin lymphoma
Bl 836858              acute myeloid leukemia
Bl 836909              multiple myeloma
Bl 836880              solid tumors

DRUGS COMING OFF PATENT

DRUG                   INDICATION                       YEAR

Combivent Respimat     COPD                             2018
Spiriva                COPD                             2018
Mirapex                restless legs syndrome           2018

TOP SELLING DRUGS

                                                        2015
DRUG                   INDICATION                       SALES    (+/-%)

Spiriva                COPD                             $3,882   10%
Pradaxa                atrial fibrillation              $1,406   7%
Micardis               hypertension                     $1,044   -12%
Trajenta               type 2 diabetes                  $993     43%


Jumping four spots to 15, this year proved more successful for Boehringer Ingelheim, having overcome market challenges with pricing in the U.S. for its top selling drugs, and winning proval of Praxbind, a much needed reversal agent for Pradaxa, which helped boost sales that were beginning to slip in 2014 due to the potential dangers of internal bleeding.

Having been named one of the most innovative companies worldwide in 2015, this research-driven pharmaceutical company ranked among the 100 leading global innovators named by news agency Thomson Reuters. Key efforts to remain highly competitive included the sale of its generics business, U.S. subsidiary Roxane, and at the end of 2015. Also, Boehringer entered strategic negotiations with Sanofi to trade its consumer health care business for Sanofi's animal health business. Shortly thereafter, Boehringer made a strategic investment of .5 billion euros to expands its biopharmaceutical production facility in Vienna.

While the company is pursuing biosimilars, we'll focus on innovative efforts for the sake of space. With looming patent expirations for Boehringer's bestseller, respiratory drug Spiriva, it won't be long before new products are needed to replace future lost sales of the $3.9 billion drug. The significant approval of Praxbind in the U.S. and Europe means that Boehringer now has an agent that reverses the anticoagulant effect of Pradaxa, which is Boehringer's second top seller.

In Boehringer's prime indication area, respiratory diseases, the company gained key product approvals in several countries: Spiriva Respimat for asthma, Spiolto for chronic-obstructive pulmonary disease (COPD) and OFEV, which is used to treat the rare disease idiopathic pulmonary fibrosis (IPF) and has been shown to slow disease progression. A Phase III study of OFEV (Nintedanib) in people with systemic sclerosis and lung fibrosis is underway.

Further, the FDA approved Gilotrif (afatinib) as a new oral treatment option for patients with squamous cell lung cancer, providing a new second-line treatment option for patients with the second largest sub-type of non-small cell lung cancer (NSCLC), representing about 20-30% of cases. Studies showed significantly improved overall survival and progression-free sur vival compared to Genentech's Tarceva (erlotinib). Gilotrif is already approved in more than 60 countries for the treatment of distinct types of EGER mutation-positive NSCLC.

Additionally, a head-to-head study demonstrated Gilotrif significantly improved clinical outcomes compared to AstraZeneca's Iressa (gefitinib) in EGFR mutation-positive advanced nonsmall cell lung cancer.

In metabolic diseases, under the Boehringer/Lilly alliance, the FDA approved Synjardy (empagliflozin and metformin hydrochloride) tablets for the treatment of type 2 diabetes. Synjardy is the third product containing empagliflozin to be approved by the FDA, following Jardiance (empagliflozin) and Glyxambi (empagliflozin/linagliptin).The Synjardy combination uses complementary mechanisms of action to help control blood glucose. Empagliflozin is the only diabetes medication to show a significant reduction in both cardiovascular risk and cardiovascular death in a dedicated outcome trial.

Among late stage assets and alliances, Boehringer and Abb Vie partnered to develop and commercialize BI655066, an anti-IL-23 monoclonal antibody in Phase III development for psoriasis. Boehringer's BI 655066 cleared skin better, faster and for longer than Janssen's Stelara (ustekinumab) in a Phase II psoriasis trial. The companies are also evaluating the drug's potential in Crohn's disease, psoriatic arthritis and asthma.

Boehringer's third generation EGFR TKI, BI 1482694, received FDA Breakthrough Therapy Designation for the treatment of non-small cell lung cancer and has the potential to become a new treatment option for patients. Phase I/II data showed 62% objective responses in patients, including 46% with confirmed tumor response. A new global Phase II trial is enrolling patients.

Additionally, Boehringer expanded its position in lung cancer obtaining exclusive rights from Hanmi Pharmaceutical to HM61713, a novel 3rd generation EGFR targeted therapy. This new partnership aims to achieve market authorization for HM61713 for patients with EGFR mutation-positive NSCLC by 2017 in the U.S.

Some early stage R&D efforts include collaborations with Inventiva, BioMed X, and The University of Texas MD Anderson Cancer Center. The Inventiva alliance is and example of Boehringer's focus on external innovation and aims to develop potential new treatments for idiopathic pulmonary fibrosis and other fibrotic diseases. The BioMed X collaboration aims to identify novel approaches for the treatment psychiatric diseases, and the alliance with MD Anderson Cancer Center will explore new medicines to treat pancreatic ductal adenocarcinoma (PDAC).

Lastly, Boehringer exercised its option under the Oxford Bio Alliance, gaining exclusive rights to an oncology target. This is the second option exercised under the companies' oncology alliance established in 2013. Boehringer appears well positioned to resume steady growth.
16 TAKEDA

Headquarters: Osaka, Japan
twitter.com/TakedaPharmaDe
www.takeda.com

HEADCOUNT:          31,328
YEAR ESTABLISHED:   1781
REVENUES:           $16,068                         (+2%)
NET INCOME:         $742                            (-$1,196 FY14)
R&D:                $3,075                          (-10%)

DRUGS APPROVED

DRUG                INDICATION

Leuplin             prostate cancer,
                    premenopausal breast cancer
Ninlaro             relapsed or refractory
                    multiple myeloma
Dexilant            acid-related diseases
Copaxone            relapse prevention of
                    multiple sclerosis
Vaxem Hib           haemophilus influenzae type b
vedolizumab         ulcerative colitis, Chron's
                    disease

DRUGS PENDING

DRUG                INDICATION

Adcetris            post-autologous stem cell
                    transplant
                    Hodgkin lymphoma
Brintellix          major depressive disorder
Nesina              type 2 diabetes

DRUGS COMING OFF PATENT

DRUG                INDICATION                      YEAR

Actos               diabetes                        2016
Avandamet           type 2 diabetes                 2016
Actoplus MET XR     type 2 diabetes                 2018
Prevacid            GERD                            2018-2019

TOP SELLING DRUGS

                                                    2015
DRUG                INDICATION                      SALES       (+/-%)

Velcade             multiple myeloma                $1,440      9%
Leuprorelln         prostate cancer, breast         $1,106      0%
                    cancer, endometriosis
Pantoprazole        peptic ulcer                    $896        -3%
Lansoprazole        peptic ulcer                    $796        -13%
Entyvio             ulcerative colitis,             $766        58%
                    Crohn's disease
Candesartan         hypertension                    $754        -41%
Dexilant            acid reflux                     $668        13%
Azilva              hypertension                    $525        14%
Nesina              diabetes                        $435        5%
Colcrys             gout                            $413        -12%


The product liability lawsuits that were pending against Takeda in the U.S., which accused the company of failing to warn users about research that linked the diabetes drug Actos to an increased risk of bladder cancer, was settled for $2.7 billion in April 2015, hopefully resolving the matter for Japan's largest pharma firm. Despite the difficulties created by the Actos suits, the fiscal year under review had many highlights. In gastroenterology, Takeda was granted marketing authorization for Entyvio (vedolizumab) in the U.S. and Europe. Entyvio is a biologic therapy planned and developed for moderate to severe active ulcerative colitis concomitantly with Crohn's disease.

In oncology Takeda received approval from the FDA for an additional indication of Velcade (bortezomib) for the retreatment of adult patients with multiple myeloma who had previously responded to Velcade therapy and relapsed at least six months following completion of prior Velcade treatment. The company also received approval from the FDA for an additional indication ofVelcade for use in previously untreated patients with mantle cell lymphoma. As a promising successor proteasome inhibitor to Velcade, MLN9708 (ixazomib) is now in five Phase in clinical trials for patients with multiple myeloma and relapsed or refractory primary (AL) amyloidosis in Japan, the U.S., and Europe. Takeda was granted Breakthrough Therapy status from the FDA for MLN9708 for the treatment of relapsed or refractory systemic light-chain (AL) amyloidosis.

At the end of 2014 Takeda formed a dedicated global oncology business--Takeda Oncology--headquartered in Cambridge, MA. Comprised of Takeda's global oncology commercial operations, the oncology business unit remains aligned with Takeda's global oncology R&D function, the oncology therapeutic area unit, and Takeda's oncology drug discovery unit. The company is currently investigating compounds across more than 17 forms of cancer, including ixazomib in AL amyloidosis and multiple myeloma as well as alisertib in relapsed/refractory peripheral T-cell lymphoma, recurrent ovarian cancer, and small cell lung cancer, among other malignancies.

On the R&D front, Takeda continued to intensify its focus on external innovation. One important example is the 10-year collaboration agreement between Takeda and the Center for iPS Cell Research and Application (CiRA) of iyoto University into which it entered in April 2015. The agreement is to develop clinical applications of induced pluripotent stem (iPS) cells across multiple therapeutic areas.

With Mersana Therapeutics, Takeda expanded the ongoing collaboration to create Fleximer antibody-drug conjugate (ADC) drug candidates to include additional oncology targets. During the year Takeda also licensed exclusive rights to use ImmunoGen's ADC technology to develop and commercialize targeted anticancer therapeutics for as many as two undisclosed targets with the option to take a license for a third target as well.

In another partnership, Takeda and Teva have established a new business venture to meet a range needs for generics in Japan, which is among the fastest growing generics markets in the world.
17 NOVO NORDISK

Headquarters: Bagsvaerd, Denmark
twitter.com/novonordisk
www.novonordisk.com

HEADCOUNT:              41,600
YEAR ESTABLISHED:       1989
REVENUES:               $15,801                 (+22%)
NET INCOME:             $5,104                  (+32%)
R&D:                    $1,992                  (-13%)

DRUGS APPROVED

DRUG                    INDICATION

Tresiba and Ryzodeg     diabetes

DRUGS PENDING

DRUG                    INDICATION

Xultophy                type 2 diabetes
Faster-acting insulin   type 1 and 2 diabetes
aspart
N9-GP                   haemophilia
Nonacog beta pegol      haemophilia B

PHASE IIB AND BEYOND

DRUG                    INDICATION

Semaglutide             diabetes
Oral semaglutide        diabetes
N8-GP                   haemophilia
Somapacitan             growth disorders

EARLY RESEARCH PROJECTS

DRUG                    INDICATION

LAI287                  diabetes
LAI287                  diabetes
OI320GT                 diabetes
AM833                   obesity
G530L                   obesity
PYY 1562                obesity
Concizumab              haemophilia

DRUGS COMING OFF PATENT

DRUG                    INDICATION              YEAR

Levemir                 diabetes                2017
Victoza                 diabetes                2017
NovoLog                 diabetes                2017
Norditropin             growth hormone          2017

TOP SELLING DRUGS

                                                2015
DRUG                    INDICATION              SALES    (+/-%)

NovoRapid               diabetes                $3,033   7%
Levemir                 diabetes                $2,679   15%
Victoza                 diabetes                $2,639   20%
Human insulins          diabetes                $1,644   -2%
Novo Mix                diabetes                $1,631   1%
Norditropin             HGH deficiency          $1,145   8%


In 2015 Novo Nordisk unveiled plans for a new $2 billion production facility in Clayton, NC, where construction has since begun. The facility will produce active pharmaceutical ingredients (APIs) for a range of the company's current and future GLP1 and insulin products. When fully operational in 2020, the site will take on production capacity for diabetes care products in the U.S. The new site is adjacent to Novo Nordisk's existing 42,000 square-meter facility, which assembles and packages FlexPen and FlexTouch prefilled insulin devices for the U.S. market.

In other expansion news, Novo Nordisk said it is planning to invest more than 100 million [euro] in production facilities at its site in Chartres, France, in an effort to meet the increasing worldwide demand for its diabetes medicines. The new facilities will be built on Novo Nordisk's existing 31,000 square-meter site in Chartres, which produces a range of the company's insulin products as well as FlexPen, the world's most widely used insulin injection device. The products are exported to more than 40 countries all over the world.

On the product approval front, the big news came when FDA approved Novo Nordisk's weight management drug Saxenda (ligraglutide 3mg). The drug is being touted as the first once-daily human glucagon-like peptide-1 (GLP-1) analogue for the treatment of obesity. Saxenda is indicated as an adjunct to a reduced-calorie diet and exercise for chronic weight management in obese adults or who are overweight with at least one weight-related comorbidity such as type 2 diabetes and cardiovascular disease. Phase III trial data showed that Saxenda, in combination with a reduced-calorie diet and increased physical activity, resulted in significantly greater weight loss than diet and physical activity alone.

In R&D alliances, Novo Nordisk and Ablynx entered into a global exclusive collaboration and licensing agreement to discover and develop novel multi-specific Nanobody drug candidates for use in an undisclosed disease area, with an option to expand the agreement to include a second nanobody program. Ablynx received an upfront license fee of 5 million [euro] and up to 4 million [euro] in research funding during the initial three-year research term of the collaboration. If Novo Nordisk decides to exercise the option to the second program, the company will pay Ablynx an exercise fee of 4 million [euro]

In another deal, XOMA Corporation licensed the global development and commercialization rights to its XMetA program of allosteric monoclonal antibodies that up-regulate the insulin receptor to Novo Nordisk. XOMA retains commercialization rights for rare disease indications. Novo Nordisk has an option to add these additional rights in rare diseases to its license. XOMA received $5 million in an upfront payment, and the agreement includes up to $290 million in additional milestones. XOMA is also eligible to receive tiered royalties on product sales.
18 ALLERGAN

Headquarters: Dublin, Ireland
twitter.com/Allergan
www.allergan.com

HEADCOUNT:             31,200
YEAR ESTABLISHED:      2015
REVENUES:              $15,071                          (+124%)
NET INCOME:            $3,683                           (-$1,630 FY14)
R&D:                   $2,359                           (+289%)

DRUGS APPROVED

DRUG                   INDICATION

Juvederm Volbella XC   perioral lines
Byvalson               hypertension
Teflaro                acute bacterial skin and
                       skin structure
                       infections, pediatric
Botox Vista            crow's feet lines
Aczone                 acne vulgaris
Botox                  lower limb spasticity
Viberzi                irritable bowel syndrome with
                       diarrhea
Avycaz                 complicated intra-abdominal
                       infections

DRUGS PENDING

DRUG                   INDICATION

linaclotide            chronic idiopathic
                       constipation
oxymetazoline HCI      persistent facial erythema
cream 1.0%

DRUGS COMING OFF PATENT

DRUG                   INDICATION                       YEAR

Zymaxid                antibiotic                       2016
Aczone                 acne                             2016

TOP SELLING DRUGS

                                                        2015
DRUG                   INDICATION                       SALES   (+/-%)

Botox                  chronic migraine,                $656    n/a
                       overactive bladder
Restasis               dry eye                          $365    n/a
Lumigan                ocular hypertension              $192    n/a
Namenda XR             Alzheimer's disease              $190    27%
Delzicol/Asacol        ulcerative colitis               $163    3%
Bystolic               hypertension                     $169    10%
Alphagan/              glaucoma,                        $139    n/a
Combigan               ocular hypertension
Linzess/               irritable bowel syndrome         $131    39%
Constella


In 2014 after Actavis acquired Allergan in a mega deal worth $66 billion it adopted the Allergan name. The deal was completed in March 2015 and the company's portfolio was bolstered by the addition of Legacy Allergan's therapeutic franchises in ophthalmology, neurosciences and medical aesthetics/dermatology/plastic surgery complementing the its existing central nervous system, gastroenterology women's health and urology franchises.

The combined company benefited from Legacy Allergan's global brand recognition and consumer awareness of key products, including Botox and Restasis. The transaction also expanded the its presence and market and product reach across many international markets, with strengthened commercial positions across Canada, Europe, Southeast Asia and other high-value growth markets, including China, India, the Middle East and Latin America.

The year will be remembered more though for the proposed merger of Pfizer and Allergan in November for a whopping $160 billion, a deal that would have created the largest pharma company in the world. But, the deal didn't go through. It was called off at the last minute after a change in U.S. tax law and is discussed in more detail in Pfizer's profile at the beginning of this report.

However, there were several other deals of note that did go through. One was the acquisition of Kythera Biopharmaceuticals for $2.1 billion. Kythera is focused on the discovery, development and commercialization of novel prescription aesthetic products. Its lead product, Kybella injection, is the first and only FDA-approved, non-surgical treatment for moderate to severe submental fullness, commonly referred to as double chin.

In another deal, Allergan acquired Auden Mckenzie, a company specializing in the development, licensing and marketing of niche generic medicines and proprietary brands in the UK and across Europe for approximately $500 million. The acquisition of Auden Mckenzie makes Actavis the number one supplier of generic pharmaceuticals in the UK and gives the company the number three position in the supply of UK pharmaceuticals.

With Ironwood Pharmaceuticals, Allergan struck a deal to acquire rights to Constella (linaclotide) in the EU, Switzerland, Turkey.

Allergan also acquired certain products in early stage development from Naurex, $571 million plus future contingent payments up to $1.1 billion. The deal expands Allergan's pipeline with Naurex's two leading product candidates GLYX-13 and NRX-1074, two compounds that utilize NMDA modulation as a potential new approach to the treatment of major depressive disorder (MDD).

Lastly, the company entered into an agreement with Merck to acquire the exclusive worldwide rights to Merck's early development stage investigational small molecule oral calcitonin gene-related peptide receptor antagonists, which are being developed for the treatment and prevention of migraines for $250 million. Additionally, Merck is owed contingent payments based on commercial and development milestones of up to $965 million as well as royalties.

During the year Allergan entered into an exclusive licensing agreement with Mimetogen Pharmaceuticals, a clinical stage biotechnology company, to develop and commercialize tavilermide (MIM-D3), a topical formulation of a novel small molecule TrkA agonist for the treatment of dry eye disease.
19 BAYER

Headquarters: Leverkusen, Germany
twitter.com/Bayer
www.bayerpharma.com

HEADCOUNT:           111,800
YEAR ESTABLISHED:    1971
REVENUES:            $50,611                      (+12%)
PHARMA REVENUES:     $15,017                      (+13%)
NET INCOME:          $4,490                       (+20%)
R&D:                 $2,549                       (+12%)

DRUGS APPROVED

DRUG                 INDICATION

Gadavist injection   contrast agent
Xofigo               prostate cancer with bone metastases
Kovaltry             hemophilia A
Eylea                secondary to myopic choroidal neovascu-
                     larization, retinal vein occlusion
Xarelto              secondary prevention of pulmonary throm-
                     boembolism
Finacea              pustules of mild to moderate rosacea

DRUGS PENDING

DRUG                 INDICATION

LCS-16               five-year contraceptive

DRUGS COMING OFF PATENT

DRUG                 INDICATION YEAR

Kogenate             antihemophilic factor 2017
Avelox               antibiotic                   2019
Levitra              erectile dysfunction         2018

TOP SELLING DRUGS

                                                  2015
DRUG                 INDICATION                   SALES    (+/-%)

Xarelto              atrial fibrillation          $2,460   34%
Eylea                macular degeneration         $1,342   62%
Kogenate             hemophilia                   $1,262   4%
Mirena               women's health               $1,058   18%
Nexavar              oncolgy                      $975     15%
Betaferon            multiple sclerosis           $900     flat
Yaz                  women's health               $771     -8%
Adalat               hypertension                 $692     8%
Aspirin Cardio       cardiovascular               $572     8%
Glucobay             diabetes                     $571     18%


Sales of Bayer's pharmaceuticals segment climbed nearly 10 percent in 2015 driven by five recently launched products--Xarelto, Eylea, Stivarga, Xofigo and Adempas.

At the end of the year, the company established its new Bayer Life Science Center. This strategic innovation unit has been designed to help uncover, encourage and unlock breakthrough cross-species technologies and know-how for Bayer by enabling collaborations with entrepreneurial best-in-class companies. The first of these partnerships is a joint venture with Crispr Therapeutics AG, a company specialized in utilizing the new crispr-cas9 gene editing technology.

The partnership will focus on the discovery, development and commercialization of therapeutics for blood disorders, blindness and congenital heart disease. Crispr Therapeutics will contribute its crispr-cas9 gene-editing technology and intellectual property, while Bayer will provide protein engineering expertise and relevant disease knowledge.

The joint venture will be based in London, UK, with operations in Cambridge, MA. This long-term strategic partnership represents the first of its kind investment in the development of target delivery systems in an effort to bring systemic in vivo crispr-cas9 gene editing technology applications to patients.

This is the first investment by the newly established Bayer LifeScience Center, which operates as a strategic innovation unit within Bayer aimed at discovering scientific and medical break throughs more rapidly by enabling innovative partnerships. Bayer will provide a minimum of $300 million in R&D investments during the next five years and will acquire a minority stake in Crispr Therapeutics for $35 million.

During the year Bayer and The Johns Hopkins University entered into a five-year collaboration agreement to develop new ophthalmic therapies targeting retinal diseases. The partners will jointly work on the discovery and development of innovative drugs for the treatment of serious back-of-the-eye diseases that affect many people worldwide, including age-related macular degeneration (AMD), diabetic macular edema (DME), geographic atrophy, Stargardt's disease, and retinal vein occlusion (RVO).

Bayer also licensed a thrombosis drug from Ionis and as part of the deal will assume clinical development and commercialization of it as well. The deal relates to Isis-FXIRx, an antisense investigational drug in development for the prevention of thrombosis. Bayer will further develop and commercialize Isis-FXIRx in areas of high unmet medical need.

Bayer Healthcare and Aronora entered a strategic alliance to manufacture Aronora's AB-022 compound for the treatment of cardiovascular diseases.

In other news, Bayer unveiled plans to invest $100 million in its Berkeley, CA manufacturing site to build a product testing facility that will support the next generation of treatments for hemophilia A.
20 MERCK KGAA

Headquarters: Darmstadt, Germany
twitter.com/emdserono
www.merck.de

HEADCOUNT:           50,000
YEAR ESTABLISHED:    1668
REVENUES:            $14,034                          (+13%)
NET INCOME:          $1,218                           (-4%)
R&D:                 $1,867                           (flat)

DRUGS APPROVED

DRUG                 INDICATION

DRUGS PENDING

DRUG                 INDICATION

Cladribine Tablets   relapsing-remitting multiple
                     sclerosis

PHASE IIB AND BEYOND

DRUG                 INDICATION

Avelumab             non/small cell lung cancer,
                     gastric cancer, bladder
                     cancer, ovarian cancer
                     platinum resistant/
                     refractory, renal cell
                     carcinoma

EARLY RESEARCH PROJECTS

DRUG                 INDICATION

Tepotinib            solid tumors
M2698                solid tumors
M7824                solid tumors
M3814                solid tumors
M1095                psoriasis
M2951                systemic lupus erythematosus

DRUGS COMING OFF PATENT

DRUG                 INDICATION                       YEAR

Serostim             HIV                              2016
Saizen               growth hormone deficiency        2016

TOP SELLING DRUGS

                                                      2015
DRUG                 INDICATION                       SALES    (+/-%)

Rebif                multiple sclerosis               $1,964   -11%
Erbitux              oncology                         $982     -2%
Gonal-f              fertility                        $748     4%
Concor               cardiovascular disease           $506     9%
Glucophage           type 2 diabetes                  $477     20%
Euthyrox             hormone therapy                  $341     5%


Merck KGaA strengthened its drive to become a leading oncology company by taking full promotional responsibility for Erbitux (cetuximab) in Japan in 2015. The move ended the co-promotion agreement it had with Bristol-Myers Squibb. Merck KGaA said expanding its oncology presence in Japan is an important strategic step along achieving its long-term goal to become a leading global player in oncology and immune-oncology. The transfer of promotional responsibilities for Erbitux in Japan further increases the presence of the company in this strategic market, where it has already positioned Japan as its regional research and development hub for South East Asia.

Also during the year, Merck KGaA and Pfizer finalized an agreement allowing the companies to co-promote Pfizer's anaplastic lymphoma kinase (ALK) inhibitor Xalkori (crizotinib), the first ALK inhibitor approved in the U.S., Japan and the EU. The drug is supported by two positive global randomized trials in the first- and second-line ALK-positive advanced non^small cell lung cancer (NSCLC) treatment settings. Globally more than 8,000 patients have been treated with Xalkori, including those who received Xalkori in clinical trials. This co-promotion relationship is related to the announcement in November 2014 of a global strategic alliance between Merck KGaA and Pfizer to jointly develop and commercialize avelumab, an investigational anti-PD-L1 monoclonal antibody. The immuno-oncology alliance will also advance Pfizer's PD-1 antibody.

By the end of 2015, the two companies had advanced clinical development program with two additional Phase III trials of avelumab. The Javelin Ovarian 200 trial is the first Phase III study of a PD-L1 inhibitor investigated as a treatment for platinum resistant/refractory ovarian cancer. The alliance also announced that the FDA provided approval to move forward with a Phase III study of avelumab as a maintenance treatment, in the first-line setting, in patients with locally advanced or metastatic urothelial cancer.

The clinical development program for avelumab now includes more than 1,500 patients who have been treated across more than 15 tumor types, including breast cancer, gastric/gastro-esophageal junction cancers, head and neck cancer, melanoma, Merkel cell carcinoma, non-small cell lung cancer, ovarian cancer, renal cell carcinoma and urothelial (bladder) cancer. The alliance has initiated six pivotal trials, reaching its goal for 2015, with additional trials expected to initiate in 2016.

Also on the regulatory front, Merck KGaA was granted Fast Track designation for the development of evofosfamide (previously known as TH-302), administered in combination with gemcitabine, for the treatment of previously untreated patients with metastatic or locally advanced unresectable pancreatic cancer. Evofosfamide is an investigational hypoxia-activated prodrug thought to be activated under severe tumor hypoxic conditions, a feature of many solid tumors. The compound, currently in Phase III trials, is being developed in collaboration with Threshold Pharmaceuticals.
21 OTSUKA

Headquarters: Tokyo, Japan
www.otsuka.com

HEADCOUNT:          28,000
YEAR ESTABLISHED:   1921
REVENUES:           $11,993                          n/a *
NET INCOME:         $698                             n/a
R&D:                $1,668                           n/a

DRUGS APPROVED

DRUG                INDICATION

E Keppra            epilepsy
Onzetra Xsail       acute migraine
Lonsurf             colorectal cancer

DRUGS PENDING

DRUG                INDICATION

Abilify             autism
Samsca              hepatic edema, cardiac edema,
                    autosomal dominant polycystic
                    kidney disease
TAC-202             allergic rhinitis
OPC-1085EL          glaucoma

PHASE IIB AND BEYOND

DRUG                INDICATION

Abilify Maintena    agitation associated with
                    dementia of the
                    Alzheimer's type, Bipolar I
Rexulti             major depressive disorder,
                    schizophrenia, agitation
                    associated with dementia of
                    the Alzheimer's type,
                    posttraumatic stress disorder
Lu AE58054          Alzheimer's disease
ASC-01              major depressive disorder
AVP-923             dyskinesia associated with
                    Parkinson's disease
AVP-786             agitation associated with
                    dementia of the
                    Alzheimer's type
Lu AA36143          lowering alcohol consumption
                    of alcohol dependence
TS-1                uterocervical cancer
TAS-118             pancreatic cancer, gastric
                    cancer
SATIVEX             cancer pain
SGI-110             acute myeloid leukemia
Deltyba             multi-drug-resistant
                    tuberculosis
OPC-12759E          dry eyes

TOP SELLING DRUGS

                                                     2015
DRUG                INDICATION                       SALES    (+/-%)

Abilify             schizophrenia                    $2,883   -31 %
Pletaai /Mucosta    anti-platelet agent /            $393     -11 %
                    gastritis, gastric ulcers
Abilify Maintena    schizophrenia                    $335     136%

* Due to a change in the fiscal year end to December 2014, percentage
changes compared to the previous fiscal year are not applicable.


At the very end of 2014 Otsuka made a move to expand its portfolio and expertise in psychiatric diseases with the $3.5 billion acquisition of Avanir, a Southern CA-based biopharma company specialized in central nervous system (CNS) diseases.

Avanir developed and launched Nuedexta (dextromethorphan hydrobromide/quinidine sulfate) in the U.S. in 2011 as the first and only approved treatment for the neurologic disease pseudobulbar affect (PBA). Sales of Nuedexta in fiscal year 2013 were $94 million, a 50% increase for the year. The acquisition also gives Otsuka the late-stage investigational compound AVP-786 in clinical development to treat agitation associated with Alzheimer's disease, and Avanir's clinical development and commercial expertise in neurologic diseases, which supports Otsuka's expansion strategy in psychiatric diseases.

Otsuka kicked off 2015 by established a presence in Australia with a new office in Sydney as part of an effort to build a larger, long-term presence in Australia and Oceania. These regions have been experiencing single-digit percentage growth in the past several years and were estimated at approximately $13 billion in 2012.

While Otsuka focuses on the development of new drugs for CNS such as schizophrenia, depression and Alzheimer's disease, it said these are areas where patients in Australia and elsewhere need better treatments.

The opening in Australia represents Otsuka's 27th affiliate outside Japan, an important milestone the company said as it continues its mission to expand around the globe.

On the product front, during the year Otsuka's schizophrenia treatment Abilify was granted approval in Japan for a new formulation. Ability extended-release injectable suspension, for intramuscular use, is administered to the patient just once every four weeks. It first became available to patients in the U.S. in March 2013 and is also available in 18 European countries, starting with the UK in 2014.

Also during the year, the FDA approved Rexulti (brexpiprazole) as an adjunctive therapy for the treatment of adults with major depressive disorder (MDD) and as a treatment for adults with schizophrenia. Rexulti was discovered by Otsuka and codeveloped with H. Lundbeck A/S. It will be co-marketed by the two companies and is currently available to patients in the U.S.

At the end of the year, Otsuka and UCB Japan announced the launch of E Keppra for IV Drip Infusion 500 mg (levetiracetam) in Japan. Like its oral formulations, E Keppra IV Drip Infusion will be indicated for partial-onset seizures in epilepsy patients as a temporary alternative when they are unable to ingest oral formulations.
22 BIOGEN

Headquarters: Cambridge, MA
twitter.com/biogenidec
www.biogenidec.com

HEADCOUNT:            7,350
YEAR ESTABLISHED:     2003
REVENUES:             $10,764                          (+11%)
NET INCOME:           $3,547                           (+21%)
R&D:                  $2,013                           (+6%)

DRUGS APPROVED

DRUG                  INDICATION

Zinbryta              once-monthly relapsing forms
                      of multiple sclerosis
Alprolix              haemophilia B
Elocta (rFVIIIFc)     haemophilia A

DRUGS PENDING

DRUG                  INDICATION

Tysabri               disease modifying therapy for
                      relapsing-remitting multiple
                      sclerosis

DRUGS IN PHASE IIB AND BEYOND

DRUG                  INDICATION

Aducanumab            Alzheimer's disease
Nusinersen            spinal muscular atrophy
Obinutuzumab          front-line diffuse large
                      B-cell lymphoma, front-line
                      Indolent non-Hodgkin's
                      lymphoma
Ocrelizumab           primary progressive and
                      relapsing multiple sclerosis
Amiselimod            inflammatory bowel disease
BG00011               idiopathic pulmonary fibrosis
Opicinumab            multiple sclerosis

EARLY RESEARCH PROJECTS

DRUG                  INDICATION

BIIB054               Parkinson's disease
BIIB059               systemic lupus erythematosus
BIIB061               multiple sclerosis
BIIB063               Sjogren's syndrome
BIIB065               myotonic dystrophy
BIIB067               SOD-1-amyotrophic lateral
                      sclerosis
Dapirolizumab pegol   systemic lupus erythematosus

DRUGS COMING OFF PATENT

DRUG                  INDICATION                       YEAR

Tysabri               multiple sclerosis               2017-2020
Tecfidera             multiple sclerosis               2018
Gilenya               multiple sclerosis               2019

TOP SELLING DRUGS

                                                       2015
DRUG                  INDICATION                       SALES    (+/-%)

Avonex                multiple sclerosis               $2,630   -13%
Tecfidera             multiple sclerosis               $3,638   25%
Tysabri               multiple sclerosis               $1,886   -4%
Plegridy              multiple sclerosis               $339     n/a


Coming off another great year, Biogen continued its growth in 1Q16 with revenues up 7% to $2.7 billion and earnings of $971 million, up 18%. Growth was driven by Tecfidera, up 15% to $946 million, Eloctate sales of $108 million, and Alprolix sales of $75 million. While revenues were partially offset by a 19 % drop in Avonex sales, Tysabri brought in $477 million, up 3 %.

Among recent pipeline advances, Biogen and AbbVie won FDA approval for Zinbryta (daclizumab), a new once-monthly, self-administered, subcutaneous treatment for relapsing forms of multiple sclerosis (RMS). Zinbiyta significantly reduced the annualized relapse rate, the primary endpoint of studies, by 45% compared to Avonex and by 54% compared to placebo.

EU approval for Zinbryta is on the horizon as well and some analysts expect the drug to reach peak sales of around $500 million. While Zinbryta offers greater convenience, Biogen already markets its every-two-weeks MS treatment Plegridy, approved in 2014, and both drugs will compete with Avonex.

Biogen's MS franchise is not without its challenges. Tecfidera, despite impressive sales, has seen a slowing growth rate, and earlier this year Europe revoked one of its key patents. Biogen is appealing the decision but stands to lose as much as $1 billion in annual sales if it fails.

On the biosimilar front, Biogen won key approvals in the EU for Flixabi, an infliximab biosimilar referencing Remicade, developed by the joint venture Samsung Bioepis, and Benepali, the first Etanercept biosimilar referencing Enbrel.

Among Biogen's late-stage assets, Aducanumab, its investigational drug for early Alzheimer's disease was accepted into the EMA PRIority MEdicines (PRIME) program, and is currently being evaluated in two global Phase III studies for safety and efficacy in slowing cognitive impairment and disease progression.

Finally, Biogen recently unveiled plans to spin off its hemophilia business as part of an effort to focus on neurology therapies. In January, Biogen and development partner Sobi received EU approval for ELOCTA for the treatment of haemophilia A, and in May, Alprolix, an extended half-life therapy for haemophilia B was approved. The two drugs, previously approved in the U.S., had combined revenues of $640 million during the twelvemonth period ended March 31, 2016. Biogen says the spin-off will result in two lean, profitable companies. CP
23 MYLAN

Headquarters: Canonsburg, PA
twitter.com/MylanNews
www.mylan.com

HEADCOUNT             35,000
YEAR ESTABLISHED      1970
REVENUES:             $9,363            (+22%)
SPECIALTY SEGMENT:    $1,205            (+2%)
NET INCOME:           $848              (-9%)
R&D:                  $672              (+15%)

Dey, Mylan's specialty business, focuses on respiratory, allergy and
psychiatric therapies. Its flagship product is EpiPen Auto-Injector,
which treats anaphylaxis; the product is the No. 1 prescribed
auto-injector with over 90% market share in the U.S. and worldwide.

DRUGS PENDING

DRUG                  INDICATION

abacavir/lamivudine   HIV-1 infection in pediatric patients


After a failed bid for Perrigo, Mylan moved forward with a $9.9 billion deal to merge with Swedish pharma company Meda, boosting its range of branded and generic pharmaceuticals. The deal also gives Mylan a better position in the market for over-the-counter (OTC) medicines. After the deal goes through, the Mylan/Meda OTC business will have sales of around $1 billion per year.

OTC medicines have become an attractive area of the pharma industry as their growth has outstripped the prescription drug sector, mainly driven by emerging markets. Meda's key products including allergy therapy Dymista (azelastine/fluticasone) and Elidel (pimecrolimus) for dermatitis and eczema are set to benefit from Mylan's greater international scale. The deal reduces Mylan's reliance on generic drugs with the addition of specialty brands that are less prone to pricing pressure and competition.

During the year, the company, through its Indian subsidiary Mylan Laboratories, acquired certain female health care businesses, including Jai Pharma, from Famy Care, a specialty women's health care company with global leadership in generic oral contraceptive products (OCPs) for $800 million.

The acquisition builds on Mylan's existing partnerships with Famy Care in North America, Europe and Australia, and provides Mylan with an enhanced and now vertically integrated platform that will accelerate the company's growth in the global women's health care space. This transaction especially complements Mylan's acquisition of Abbott's non-U.S. developed markets specialty and branded generics business, which also includes women's health care portfolio and sales and marketing capabilities. Additionally, the acquisition of the Famy Care businesses will make Mylan a hormonal contraceptives leader in high-growth emerging markets around the world.

In another deal announced in 2015, Renaissance Acquisition Holdings, a portfolio company of private equity firm RoundTable Healthcare Fhrtners, sold its topical pharmaceutical business to Mylan for $1 billion. The topical division is a specialty pharmaceutical business focused on the manufacture, development, sales and marketing of branded and generic topical pharmaceutical products. RoundTable started Renaissance in 2010 when it acquired two contract manufacturing and development organizations, Confab Laboratories and DPT Laboratories. Renaissance, through significant investments in senior leadership, product acquisitions, R&D, capital expenditures, and the development of a pipeline of more than two dozen topical ANDAs and NDAs, has developed into one of the largest, privately-held, specialty pharmaceutical companies in the topicals/dermatology market in North America.

At the beginning of 2016, Mylan entered into an exclusive global collaboration agreement with Momenta Pharmaceuticals to develop, manufacture and commercialize six of Momenta's biosimilar candidates, including abatacept (Bristol-Myers Squibb's rheumatoid arthritis drug Orencia), which had $1.9 billion in sales in 2015.

Momenta received $45 million up front and as much as $200 million in milestone-related payments, with each company sharing the costs and profits for the products. The companies will be jointly responsible for product development, and Mylan will lead worldwide commercialization.

This collaboration builds upon Mylan's existing biologies and insulin analog partnership with Biocon, which includes six biosimilar programs (trastuzumab, pegfilgrastim, adalimumab, bevacizumab, etanercept and filgrastim) and three insulin analogs (glargine, lispro and aspart). Five of these biosimilar programs have successfully completed Phase I trials, and four are in Phase III development. Mylan and Biocon plan on submitting three biosimilar applications and one insulin application in the U.S. and Europe in 2016.

Also on the biosimilar front, during the year Mylan launched the first biosimilar to GlaxoSmithKline's Seretide Evohaler (salmeterol xinafoate/fluticasone propionate) under the name Sirdupla in the UK. Sirdupla is a pressurized metered-dose inhaler (pMDI) indicated to treat symptoms of asthma. 3M Drug Delivery Systems will manufacture the product, which is available in 125/25 meg and 250/25 meg with 120 doses.

In another development and commercialization deal, Mylan and Theravance Biopharma partnered on TD-4208, a novel investigational once-daily nebulized long-acting muscarinic antagonist (LAMA) for chronic obstructive pulmonary disease (COPD) and other respiratory diseases. TD-4208 has shown positive results in COPD in multiple Phase II studies, and the design of the Phase III registrational program for 2016.
24 CELGENE

Headquarters: Summit, NJ
twitter.com/celgene
www.celgene.com

HEADCOUNT:          7,000
YEAR ESTABLISHED:   1986
REVENUES:           $9,256                            (+21%)
NET INCOME:         $1,602                            (-20%)
R&D:                $3,697                            (+52%)

DRUGS APPROVED

DRUG                INDICATION

Revlimid Plus       newly diagnosed multiple
                    myeloma
Dexamethasone
Vidaza              acute myeloid leukaemia

DRUGS PENDING

DRUG                INDICATION

Revlimid            mantle cell lymphoma:
                    relapsed/refractory
Abraxane            gastric: metastatic

DRUGS IN PHASE IIB AND BEYOND

DRUG                INDICATION

Revlimid            multiple myeloma maintenance,
                    diffuse large B-cell (ABC-
                    subtype): first-line
CC-486              lower-risk myelodysplastic
                    syndromes
Vidaza              post-induction AML maintenance
Istodax             peripheral T-cell lymphoma:
                    first-line
Abraxane            pancreatic cancer: adjuvant
Otezla              psoriasis/PSA, ankylosing
                    spondylitis
ozanimod            relapsing multiple sclerosis

EARLY RESEARCH PROJECTS

DRUG                INDICATION

durvalumab          multiple myeloma
CC-486              myelodysplastic syndromes
EPZ-5676            acute myeloid leukemia
CC-122              Indolent lymphoma
CC-486              lymphoma
AG-120              solid tumors
CC-90003            solid tumors
PNK-007             acute myeloid leukemia

DRUGS COMING OFF PATENT

DRUG                INDICATION                        YEAR

Revlimid            multiple myeloma                  2018
Thalomid            multiple myeloma,                 2018
                    Hansen's disease

TOP SELLING DRUGS

                                                      2015
DRUG                INDICATION                        SALES    (+/-%)

Revlimid            multiple myeloma,                 $5,801   17%
                    mantle cell lymphoma
Abraxane            breast, lung,                     $968     14%
                    pancreatic cancer
Pomalyst            multiple myeloma                  $983     45%
Vidaza              myelodysplastic syndrome          $591     -4%
Otezla              psoriasis                         $472     n/a


Committed to expanding a sustainable pipeline of cancer treatments Celgene Corporation acquired privately held Quanticel Pharmaceuticals, a biotechnology company focused on cancer drug discovery. Celgene bought Quanticel for $100 million upfront with an additional $385 million paid out upon research, development, and regulatory advances related to Quanticel's research and development platform.

Through the agreement, Celgene will have full access to Quanticel's proprietary platform for the single-cell genomic analysis of human cancer, as well as Quanticel's lead programs that target specific epigenetic modifiers to advance Celgene's pipeline of innovative cancer therapies.

The acquisition culminates a 2011 strategic alliance between the two companies. Over the course of the three-and-a-half year alliance, Quanticel industrialized its single-cell platform for analysis of tumor cellular content and applied it to novel target discovery and the generation of high-quality drug candidates. Multiple drug candidates from Quanticel are expected to enter the clinic in 2016.

In another deal during the year, Celgene expanded its inflammation and immunology portfolio with the acquisition of Receptos for roughly $7.2 billion. The acquisition expands its inflammation and immunology portfolio with the addition of Ozanimod, an oral, selective sphingosine 1-phosphate 1 and 5 receptor modulator (SIP), to its pipeline of potential disease-altering medicines and investigational compounds.

Clinical studies of Ozanimod have demonstrated several areas of potential advantage over existing oral therapies for the treatment of ulcerative colitis (UC) and relapsing multiple sclerosis (RMS), including its cardiac, hepatotoxicity and lymphocyte recovery profile.

To develop small molecule therapeutics in oncology, inflammation and immunology and immune-oncology, Celgene partnered with Nurix during the year. In an R&D alliance set up to discover and develop therapeutics for ulcerative colitis and Crohn's disease, Celgene teamed up with Inception IBD, a Quebec-based biotechnology company, and Inserm Transfert Initiative, created under the initiative of Inserm, the French National Institute of Health and Medical Research.
25 DAIICHI SANKYO

Headquarters: Tokyo, Japan
www.daiichisankyo.com

HEADCOUNT:               18,434
YEAR ESTABLISHED:        2005
REVENUES:                $8,770                         (+7%)
NET INCOME:              $715                           (-75%)
R&D:                     $1,855                         (+9%)

DRUGS PENDING

DRUG                     INDICATION

Edoxaban                 atrial fibrillation, venous
                         thromboembolism
Hydromorphone            cancer pain extended-
                         release and immediate-
                         release formulations
                         acute pain
CL-108                   prevention of seasonal
                         Influenza
VN-100

PHASE IIB AND BEYOND
DRUG                     INDICATION

Tivantinib               hepatocellular cancer
Denosumab                breast cancer adjuvant,
                         rheumatoid arthritis
Nimotuzumab              gastric cancer
Quizartinib              newly diagnosed AML patients
Pexidartinib/PLX3397     tenosynovial giant cell
                         tumor
Prasugrel                ischemic stroke
Mirogabalin              fibromyalgia, diabetic
                         peripheral neuro
                         pathic pain
CHS-0214                 rheumatoid arthritis
VN-0105                  prevention of pertussis,
                         diphtheria, teta-
                         nus, poliomyelitis and Hib
VN-0107/MEDI3250         prevention of seasonal
                         influenza

EARLY RESEARCH PROJECTS

DRUG                     INDICATION

DS-3032                  solid cancer, lymphom,
                         leukemia
PLX7486                  solid cancer
DS-3201                  non-Hodgkin's lymphoma
PLX73086/AC708           tenosynovial giant cell
                         tumor
PLX51107                 hematologic malignancies
DS-1040                  acute ischemic stroke
DS-2330                  hyperphosphatemia in chronic
                         kidney disease
DS-9231/TS23             thrombosis
DS-9001                  dyslipidemia
DS-1971                  chronic pain
DS-1501                  osteoporosis
DS-7080                  neovascular age-related
                         macular degeneration
DS-2969                  Clostridium difficile
                         infection
DS-5141                  Duchenne muscular dystrophy
VN-0102/JVC-001          prevention of seasonal
                         influenza

DRUGS COMING OFF PATENT
                         INDICATION
DRUG                                                    YEAR
                         hypertension
Tribenzor (Olmesartan)                                  2016

TOP SELLING DRUGS

                         INDICATION                     2015
DRUG                                                    SALES    (+/-%)
                         hypertension
Olmesartan               cholesterol, type 2 diabetes   $2,526   -3%
Welchol                  platelet inhibitor             $403     -7%
Prasugrel                iron deficiency                $286     29%
Venofer                  platelet inhibitor             $260     0%
Effient                                                 $173     8%


Daiichi Sankyo unveiled plans during the year to overhaul its U.S. operations, saying the company was transitioning from a maturing primary care product portfolio to a differentiated specialty portfolio including areas such as cardiovascular, pain management and oncology.

To reduce expenses, the company eliminated 1,000 to 1,200 positions across the U.S. commercial function located in Earsippany, NJ, as well as field-based sales and other positions throughout the country. The reorganization does not include U.S.-based R&D functions, which have staff concentrated in Edison, NJ, or its packaging plant in Bethlehem, PA.

The reorganization was driven by the loss of exclusivity on Daiichi Sankyo's best-selling medication, Olmesartan/Benicar, which loses its patent protection in 2016. Benicar is used in the treatment of hypertension and was responsible for about 27 percent of annual revenue for the company. Last year the medication brought in $2.6 billion. Benicar is prescribed to keep blood vessels from narrowing, which lowers blood pressure and improves blood flow.

Leading up to 2015, Daiichi Sankyo bolstered its pipeline when it gained Phase III acute myeloid leukemia (AML) candidate quizartinib after acquiring Ambit Biosciences in a deal worth $410 million. Ambit is a biopharma company focused on the discovery and development of medicines to treat unmet medical needs in oncology, autoimmune and inflammatory diseases by inhibiting enzymes behind those diseases. Ambit's lead drug candidate, quizartinib, is targeted at patients with AML.

In another move, Japan-based Daiichi Sankyo's U.S. subsidiary merged with its U.S.-based sister company, Asubio Pharmaceuticals, which will be integrated into the Daiichi Sankyo global development organization.

Contributors

Editor: Tim Wright

Associate Editor: Kristin Brooks

All profiles compiled by Tim Wright, except Gilead, Amgen, Boehringer-Ingelhaim and Biogen, by Kristin Brooks Pipeline/revenue information compiled by Kristin Brooks

* Profile information is sourced from each company's annual report along with press releases distributed throughout the year.
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Author:Wright, Tim
Publication:Contract Pharma
Article Type:Cover story
Geographic Code:4E0EE
Date:Jul 1, 2016
Words:28993
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