Fierce Biotech has published its annual ranking of the ten largest companies by R&D investment volume. Although the composition of the Top 10 remained unchanged from last year, the balance of power within it has noticeably shifted (the percentage change in the budget compared to the previous year is indicated in parentheses next to the amount).
Rating Leaders: Merck Holds Its Ground, Roche Overtakes J&J
1. Merck & Co. — $15.79 billion (-12%)
Despite a 12% cut in its overall budget, Merck confidently holds the top spot in the global ranking for the second consecutive year. The decrease in spending is attributed to a relatively quiet year in mergers and acquisitions (M&A). However, the company’s internal investments in new molecule discovery and early clinical development actually grew by $700 million, reaching $10.8 billion. The main task of Merck’s research division (24,700 employees) is to prepare the portfolio for the impending patent expiration of their super-blockbuster Keytruda. In 2025, the company successfully obtained phase 3 data for its oral PCSK9 inhibitor and an HIV combination therapy.
2. Roche — $14.73 billion (-6%)
The Swiss company rose from third to second place. Roche’s main focus remains oncology (particularly the development of the KRAS inhibitor divarasib and the drug giredestrant). However, the real breakthrough of 2025 was the company’s ambition in the obesity drug market. Roche announced its intention to enter the “top three” in this segment and is actively developing its dual GLP-1/GIP receptor agonist CT-388, which in phase 2 showed results comparable to Eli Lilly’s Zepbound.
3. Johnson & Johnson — $14.66 billion (-14.9%)
After many years in the number two position, J&J dropped to third place due to a radical R&D budget cut of almost 15%. The company compensated for the reduction in internal research by aggressively acquiring external assets: 2025 began with the biggest M&A deal of the year — the purchase of CNS disease specialist Intra-Cellular Therapies for $14.6 billion, followed by the acquisition of Halda Therapeutics for $3 billion. The year was also notable for J&J spinning off its DePuy Synthes orthopedic division into a separate company.
4. AstraZeneca — $14.23 billion (+5%)
The British giant showed moderate investment growth, retaining the fourth spot (its R&D budget accounted for 24.2% of total revenue). Despite several clinical setbacks (including trial failures in amyloidosis and lung cancer), AstraZeneca invested heavily in the future: the company allocated $15 billion for development in China and struck an $18.5 billion deal in the obesity drug space with CSPC Pharmaceutical.
Rapid Ascent: The Triumph of Eli Lilly and Novartis’s Appetites
5. Eli Lilly — $13.34 billion (+21.4%)
Lilly became the main phenomenon of the year, jumping two spots at once. The phenomenal success of the obesity drug tirzepatide (which surpassed Keytruda in sales) made Eli Lilly the first pharma company to reach a $1 trillion market capitalization. The massive revenues allowed it to increase its R&D budget by more than 21%. The funds went toward launching the industry’s largest supercomputer, LillyPod (in partnership with Nvidia), acquiring gene therapy company Adverum, and making large-scale investments in artificial intelligence for drug discovery (deals with Insilico Medicine and XtalPi).
6. Novartis — $11.2 billion (+12%)
The Swiss corporation made the biggest leap in the ranking — up three positions. The spending growth is driven by massive M&A activity: Novartis spent $12 billion to acquire Avidity Biosciences (aiming to become a leader in treating neuromuscular diseases) and $2.9 billion on MorphoSys. At the same time, the company continued a strict “clean-up” of its own pipeline, abandoning unpromising projects.
7. Pfizer — $10.44 billion (-4%)
Pfizer cut its budget but still moved up to seventh place. The main event of the year for the company was the purchase of biotech Metsera for $10 billion after a tense battle with Novo Nordisk for this obesity treatment asset. Pfizer also licensed a GLP-1 candidate from Fosun Pharmaceutical for $1.9 billion, while actively shedding assets acquired from its Seagen purchase.
8. Bristol Myers Squibb — $9.95 billion (-11%)
BMS launched a strict cost-saving program aimed at saving $1.5 billion over 20 months, which led to a reduction in the R&D budget and the closure of several clinical programs (for example, alnuctamab).
9. AbbVie — $9.1 billion (-28.9%)
After showing an incredible 66% growth in investments in 2024, AbbVie demonstrated the deepest drop in the Top 10 in 2025 (almost 29%). A schizophrenia treatment candidate acquired from Cerevel for $8.7 billion failed in phase 2, costing the company $3.5 billion. Nevertheless, AbbVie continued its shopping spree, paying $2.1 billion for in vivo CAR-T therapy specialist Capstan Therapeutics and $1.2 billion for Gilgamesh. Meanwhile, the internal research staff faced layoffs.
10. Sanofi — $8.85 billion (+6%)
The French company slightly increased its budget, but the year proved to be a clinical failure. A series of setbacks in trials for asthma, psoriasis, and COPD drugs exhausted the board of directors’ credit of trust. As a result, CEO Paul Hudson was dismissed, and Belén Garijo (former CEO of Merck KGaA) was brought in to replace him, with the urgent task of increasing the productivity and innovative potential of the R&D division.
