Pharmaceutical Powerhouse: Johnson & Johnson is once again the world's most valuable and strongest pharma brand
Once again, Johnson & Johnson has claimed the title of the world's most valuable and strongest pharmaceutical brand, according to a new report by Brand Finance, the world’s leading brand valuation consultancy. Johnson & Johnson has maintained its top-ranking position for brand value for the sixth consecutive year and recorded a 5% increase in brand value to USD 13.4 billion this year.
In a strategic move that marked the largest restructuring in its nearly 140-year history, Johnson & Johnson completed the spinoff of its consumer business, under the new parent company Kenvue, which includes brands like Band-Aid, Tylenol, Neutrogena, and Clean & Clear.
Johnson & Johnson's restructuring mirrors a broader trend among industry leaders. Pfizer (brand value down 1% to USD 6.1 billion) and GSK (brand value up 6% to USD 3.8 billion) demerged its consumer health joint venture to create Haleon, known for products like Sensodyne toothpaste, while Novartis (brand value 10% to USD 3.3 billion) spun off its Generics and Biosimilars business, Sandoz. Sanofi (brand value up 7% to USD 4.4 billion) is also in the process of separating its consumer healthcare division.
Novo Nordisk (brand value USD 5.1 billion) and Lilly (brand value USD 5.9 billion) are the two fastest-growing pharma brands this year, up 64% and 53%, respectively.
Novo Nordisk and Lilly exemplify success through adaptation. Their proactive strategies, particularly in the successful introduction of weight-loss drugs, have propelled them up the Brand Finance Pharma 25 ranking. Following skyrocketing demand for semaglutide under the brand names Wegovy and Ozempic, Novo Nordisk's has become Europe's most valuable company by market cap, overtaking LVMH. These brands have not only experienced substantial growth in their financial forecasts but have also garnered significant public exposure as a result of the massive possible impact of a “cure for obesity” upon modern humanity.
Both brands have embarked on their own M&A endeavours, with Lilly's acquisition of Akouos and Novo Nordisk's finalisation of the Forma Therapeutics acquisition, both occurring at the close of 2022.
Hugo Hensley, Valuation Director, Brand Finance, commented:
“The intense demand for weight-loss drugs such as Ozempic and Wegovy are the latest wave driving the growth of the pharmaceutical industry, continuing an upward trajectory that dates back to the introduction of vaccines in response to COVID-19. In this dynamic and increasingly competitive environment, a brand's ability to build trust among the public, regulators, and investors is a powerful asset for pharmaceutical companies. Pharmaceutical brands must balance their ability to rapidly meet demand for new products against their reputation as a safe, reliable provider of quality goods."
Four Chinese brands feature in the Brand Finance Pharma 25 2024 ranking, recording mixed performances. Guangzhou Pharmaceutical has shown the strongest performance among Chinese brands, recording an 11% increase in brand value to USD 2.5 billion. This growth is attributed to rising demand for popular brands within its portfolio, alongside expanded sales channels.
Sinopharm, the highest-ranked Chinese brand in 13th position, saw a 6% decline in brand value to USD 3.6 billion. This decline was driven by weaker brand strength and long-term growth rates, despite strong revenue growth.
Shanghai Pharmaceuticals Holding experienced a slight decline in brand value, down 1%, but has seen high demand for its Chinese medicine products. Yunnan Baiyao secures 25th spot in the ranking with a brand value of USD 822 million.
Fresenius has overtaken Medtronic to secure its position as the world's most valuable medical devices brand, following a 6% increase in brand value to USD 7.7 billion.
Increased demand for plasma-derived therapies and autotransfusion treatments has contributed to Fresenius’s expanding market presence. Additionally, Fresenius highlights that its surge in revenue is driven by rising admissions as individuals resume pre-COVID healthcare patterns.
Conversely, Medtronic has experienced an 11% decrease in brand value to USD 7.2 billion, ending its three-year reign at the top of the Brand Finance Medical Devices 25 ranking. The company aims to divest its patient monitoring and respiratory interventions businesses in the first half of fiscal year 2025, following the successful divestment of its renal care solutions business to Mozarc Medical.
UnitedHealthcare retains its position as the world's most valuable healthcare services brand, boasting a 28% increase in brand value, standing at USD 47.6 billion at 1 January 2024. While subsequently embroiled in a massive brand crisis related to cybersecurity, at the time of this valuation, UnitedHealthcare was in a highly regarded position. For the first time in Medicare’s history, more than half of eligible people with Medicare are now enrolled in private Medicare Advantage plans, and UnitedHealthcare is the largest provider of these. This expansion of the government segment has bolstered revenue streams for healthcare brands like UnitedHealthcare.
Elevance Health (brand value up 28% to USD 25.5 billion) and Humana (brand value up 27% to USD 30.0 billion) are also both poised for a bigger resurgence as they also capitalise on the expansion through Medicare Advantage offerings.
Hugo Hensley, Valuation Director, Brand Finance, commented:
“The most valuable healthcare services brands have experienced a 16% year-on-year increase in total value. This growth is indicative of a thriving sector driven by several factors. The heightened significance of healthcare-related issues post-pandemic, coupled with continuous technological advancements, has bolstered sector efficiency and reduced production costs. Additionally, the ageing population has contributed to a surge in demand for healthcare services, further fuelling market expansion.”