The Pharma 1000: Top Global Pharmaceutical Company …

The Pharma 1000 Top Global Pharmaceutical Company Report

September 2020

? 2020. All rights reserved. Securities offered in the United States are offered through Torreya Capital LLC, Member FINRA/SIPC. In Europe

such services are offered through Torreya Partners (Europe) LLP, which is authorized and regulated by the UK Financial Conduct Authority.

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Table of Contents

The Evolving Global Pharmaceutical Sector The Biotechnology Sector The Branded Pharma Sector The Generic Drug Sector Financial Players in Pharma: Private Equity and Royalty Firms Top Players by Country and Segment The Pharma 1000 List About Torreya and Acknowledgements

5 16 24 34 38 44 55 96

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Torreya's Pharma 1000 Report

Download the Full Report

Torreya is a globally active investment bank focused on the

pharmaceutical sector.

We began to track assets, people and companies in the industry

with our own database in 2012.

In "The Pharma 1000" report, we leverage our database to

identify the top 1000 companies by value today.

This presentation provides a summary of the key findings of the

report.

We hope to give you a greater sense of the global scale of the

pharmaceutical industry and its extraordinary growth.

We also wish to recognize the companies that appear on the

Pharma 1000 list for the accomplishment of becoming a top company in one of the world's most important and challenging industries.

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Torreya Pharma 1000 Study Approach

We identified approximately 30,000 pharmaceutical companies in 2012. Our team studied these companies and

pulled out the active operating companies in ethical pharmaceuticals which had a tangible basis for valuation. We have tracked this group and added to it ever since.

To be included in the dataset, a company had to be primarily focused on the production and marketing of ethical

pharmaceutical products or be directly involved in the marketing of such products, to derive revenue from such marketing activities or to be doing research with the intention of developing marketed pharmaceutical products.

We excluded OTC companies, pharmaceutical distributors, pure play manufacturers and API players from the

ranking.

Because over half the companies are not listed on a stock market, we developed an approach to impute value for

private companies (based on financial metrics where available). Our approach is to use publicly-traded company multiples to impute private company value.

We value publicly-traded companies using their enterprise value as this reflects the capital market's valuation of

core operations. This is computed using the market close price of a company's common shares on September 15, 2020 multiplied by the number of common shares outstanding as of the last reported financing period. We then subtracted cash and liquid securities and added back debt to arrive at enterprise value.

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The Evolving Global Pharmaceutical Sector

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Sector Size Industry is quite large

Torreya's Estimate of Total Global Revenues of the Ethical Pharmaceutical Sector in 2020:

$1.24

Trillion

Torreya's Estimate of Industry Size:

$1.24 Trillion in revenue

Our estimate higher than what has been derived by EvaluatePharma and IQVIA.*

This estimate is the sum of net sales of the largest 1,600 companies in the pharmaceutical sector.

The value of the commercial side of the drug sector is approximately $6.65 trillion. Of this, $5.65 trillion is associated with publicly-traded companies.

Putting it in Perspective:

Pharma is a large and complex growing part of the global economy.

If the pharma sector were a country, it would be ranked #15 in the world. Ahead of the GDP of Mexico, Indonesia, Sweden or Poland.

* See EvaluatePharma?, World Preview 2019, Outlook to 2024, June 2019 and Global Medicine Usage Trends and Outlook to 2024, IQVIA Institute, March 2020.

Torreya's Estimate of Total Global Value of the Ethical Pharmaceutical Sector in 2020:

$6.65

Trillion

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Pharma is the World's Third Largest Industry

(comparison of the aggregate value of the publicly-traded components of all major industries)

Rank Sector

Public Market Value ($Trillions)

1 Banks, Insurance and Finance 2 E-commerce + Internet Services 3 Pharmaceuticals (public companies only)

$18.5 $6.0 $5.65

4 Software

$4.2

5 Integrated Oil and Gas

$3.6

6 Technology Hardware

$2.9

7 Semiconductors

$2.4

8 Electric Utilities

$2.4

9 Integrated Telecom Providers

$2.2

10 Automobile Manufacturers

$2.0

Note: this table shows the aggregate market value of all publicly-traded global companies by S&P market group in the world's top 20,000 traded companies by market as of September 6, 2020. Source: S&P CapitalIQ, Torreya analysis.

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Value of Industry Has Tripled Since 2003

Aggregate value of the global pharmaceutical industry 2003 to 2020 ($trillions)

$6.65

$3.76

$4.31

$5.16

$5.02

$5.28

$5.35

$1.99

2003

2014

2015

2016

Source: Torreya analysis of data from Bloomberg, CapitalIQ and a number of private companies.

2017

2018

2019

2020

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