· Abbott breaks into the top 10 most valuable pharmaceutical brands ranking on the back of 77% year-on-year growth
· Roche defends the title of the world’s most valuable pharmaceutical brand, valued at US$6.4 billion
· Up 20% to US$5.6 billion, Bayer overtakes Pfizer in second place
Abbott has been ranked as one of the world’s top ten pharmaceutical brands for the first time, according to the latest report by Brand Finance, the world’s leading independent valuation and strategy consultancy. With a 77% brand value growth to US$3.7 billion, American pharma giant Abbott enters the Brand Finance Pharmaceuticals 10 ranking in 4th place following its acquisition and rebranding of medical device firm St. Jude Medical and diagnostic-testing company Alere, which were both successfully completed last year.
Abbott is now at the forefront of the medical devices and diagnostics markets, with a rapidly expanding presence in cardiovascular care, large and high-growth cardiovascular device generation. The brand’s largest business is its medical devices unit, which includes minimally invasive support for heart diseases, stroke, carotid artery disease. Abbott’s other significant segments span across nutritionals, point-of-care diagnostics and pharmaceuticals.
Meanwhile, Roche (brand value up 5% to US$6.4 billion) retains its title as the world’s most valuable pharmaceutical brand after a strong and stable year. The Swiss brand improved on all measures, with the Brand Strength Index (BSI) score climbing from 72.5 to 78.2 out of 100, and its brand rating a notch higher at AA+ from AA last year.
David Haigh, CEO of Brand Finance said:
“Abbott’s intelligent M&A activity combined with a clear strategy in extending the Abbott brand, has boosted its performance this year. Abbott enters the top ten ranking with an impressive 4th place debut, firmly positioning itself as a global leader in medical products. Whilst Roche has remained steady at the top of the ranking, Abbott is growing rapidly and may challenge for the top spots if it sustains this promising growth in the future.”
Bayer’s brand value on the up
Germany’s Bayer (up 20% to US$5.6 billion) is ranked the world’s second most valuable pharmaceuticals brand, overtaking Pfizer (down 15% to US$4.1 billion). Separate from Bayer’s brand activity in the pharmaceutical industry, Bayer is now integrating Monsanto’s chemical business following the $66 billion takeover. This will have limited direct impact on Bayer’s pharmaceutical business, though shedding the association with the detested agrochemical industry brand will be a challenge for all of Bayer’s operations. Brand strength might help Bayer pull through this difficult transition period. With a Brand Strength Index (BSI) score of 81.2 and a high AAA- brand rating, Bayer is the strongest of all pharmaceutical brands in the top 10 ranking.
David Haigh, CEO of Brand Finance said:
“Although Bayer has moved up into second place in this year’s ranking, its M&A activity – in contrast to Abbott’s – puts question marks over the future of its brand. Bayer’s share price sliding last week, when Monsanto was ordered to pay damages over cancer risks associated with their products, reveals the weight of the reputational liability brought in with the acquisition.”
Pfizer and Novartis lose brand value
Pfizer suffered a significant brand value loss, more than any other brand in the Brand Finance Pharmaceuticals 10 2018. Reduced revenues, lower forecasts, and a heightened sense of sector risk adversely affected Pfizer’s brand value. The drug maker has also been hit by significant legal fees after paying out against accusations that it violated the False Claims Act.
Novartis (down 12% to US$3.6 billion) fell one place since last year, as a result of Abbott’s new entry to the Brand Finance Pharmaceuticals 10 2018. In addition, Novartis endured a difficult year, with the departure of their CEO Joe Jimenez who was embroiled in controversy regarding signing off questionable payments to Donald Trump’s then lawyer Michael Cohen. The brand’s head of legal Felix Ehrat claimed responsibility for the scandal by resigning.
Novartis’s new CEO Vas Narasimhan has an opportunity to build the strength of the Novartis brand by returning to an innovative culture that takes advantage of new developments in data and technology whilst also focusing on its ethics and compliance functions.
Note to Editors
Every year, leading valuation and strategy consultancy Brand Finance values the world’s biggest brands. The 10 most valuable pharmaceuticals brands in the world are included in the Brand Finance Pharmaceuticals 10 2018 league table.
Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is assessed through a balanced scorecard of factors (such as marketing investment, stakeholder equity, and business performance) and used to determine what proportion of a business’s revenue is contributed by the brand.
Additional insights, more information about the methodology as well as definitions of key terms are available in the Brand Finance Pharmaceuticals 10 2018 report.
Brand Finance helped craft the internationally recognised standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation – ISO 20671.
Data compiled for the Brand Finance league tables and reports are provided for the benefit of the media and are not to be used for any commercial or technical purpose without written permission from Brand Finance.