The pharmaceutical industry is a major player in the overall life science sector, responsible for developing and manufacturing the majority of prescription drugs.
Companies in this space are constantly researching and creating innovative treatments for various medical conditions. In recent years, there has been a particular focus on developing new treatments for diabetes, weight loss and cancer.
With global spending on medicine using list prices growing by 38 percent over the past five years and a forecasted increase of 35 percent through 2029, there is an opportunity for investors to gain exposure to the growth potential of this industry while also benefiting from the diversification and stability provided by established companies.
With that in mind, the Investing News Network has compiled a list of the five biggest drug companies by market cap on the New York Stock Exchange (NYSE). Data for this article was compiled using TradingView’s stock screener on September 22, 2025.
1. Eli Lilly and Company (NYSE:LLY)
Market cap: US$715.16 billion
Founded in 1876, Eli Lilly and Company employs approximately 10,000 individuals for research and development in seven countries and has products marketed in 110 countries, including therapies for diabetes, cancer, immune system diseases and a wide range of mental health conditions.
The company also has drugs in development for various medical conditions, such as skin ailments, cancers, Crohn’s disease, diabetes, obesity and Alzheimer’s disease.
So far in 2025, Eli Lilly has made a number of portfolio expanding acquisitions of private and public biotechnology companies. This includes private biotechnology companies Scorpion Therapeutics, which develops small molecule precision oncology therapies; SiteOne Therapeutics, which develops non-opioid medicines for pain management; and Verve Therapeutics, which develops genetic medicines for cardiovascular disease.
Early in the year, Eli Lilly announced plans to more than double its US manufacturing investment since 2020 to more than US$50 billion, representing the largest pharmaceutical manufacturing investment in the country’s history.
In mid-September, as part of this investment, the company shared plans to build a US$5 billion manufacturing facility in the state of Virginia. The facility will develop active pharmaceutical ingredients for cancer, autoimmune and other advanced therapies. The same month, Eli Lilly reported plans to build a new US$6.5 billion facility in Texas to manufacture small molecule synthetic medicines.
2. Johnson & Johnson (NYSE:JNJ)
Market cap: US$419.6 billion
Johnson & Johnson operates on a massive scale and encompasses various segments through its subsidiaries. Its primary pharmaceutical subsidiary is Janssen Pharmaceuticals, which focuses on cardiovascular disease and metabolism, infectious diseases and vaccines, neuroscience, oncology, immunology and pulmonary hypertension.
Johnson & Johnson acquired a clinical-stage biopharmaceutical company called Ambrx Biopharma last year, which will allow the company to further develop antibody-drug conjugates, expanding its offering of targeted oncology therapies. This year, the company acquired Intra-Cellular Therapies in a US$14.5 billion deal, which includes lumateperone, the first and only treatment approved by the US Food and Drug Administration (FDA) for bipolar I and II depression as an adjunctive and monotherapy.
In March, Johnson & Johnson announced it plans to invest more than US$55 billion in manufacturing, research and development and technology in the US over the next four years, up 25 percent over the previous four years.
Market cap: US$394.05 billion
AbbVie is a global biopharmaceutical company that discovers and delivers innovative medicines and solutions to address complex health issues. The company has identified five areas of focus where it believes it can make a significant impact in improving treatments for patients: immunology, oncology, neuroscience, eye care and aesthetics.
A few of AbbVie’s drugs garnering FDA approval this year include upadacitinib, the first and only oral JAK inhibitor approved for the treatment of giant cell arteritis in adults; telisotuzumab vedotin-tllv for the treatment of adult patients with certain types of non-squamous non-small cell lung cancer; and glecaprevir/pibrentasvir, the first oral eight-week pangenotypic treatment option approved for people with acute or chronic hepatitis C.
In August, AbbVie announced it will build a US$195 million facility to increase its active pharmaceutical ingredient production capacity in the US. The spend is part of the company’s plan to invest more than US$10 billion in the US pharma market over the next 10 years announced in April.
Market cap: US$270.84 billion
Danish company Novo Nordisk has demonstrated a commitment to addressing various health conditions, such as type I and II diabetes, obesity, hemophilia and growth disorders, and markets its therapies in 170 countries. The company’s main product is the diabetes drug Ozempic, which is also marketed for obesity under the name Wegovy.
It has been conducting research into a new obesity treatment called amycretin, which targets both GLP-1 and amylin receptors. In June, Novo Nordisk announced that amycretin will enter Phase 3 development in weight management in the first quarter of 2026.
In September, the company presented top-line Phase 3 REDEFINE 1 clinical data for another obesity drug, cagrilintide. The drug candidate will move into the more advanced Phase 3 RENEW clinical program in Q4 2025.
Novo Nordisk has a working partnership with Microsoft (NASDAQ:MSFT) through which it uses the tech giant’s artificial intelligence (AI), cloud and computational services to facilitate the discovery of new drugs and treatments.
5. Abbott Laboratories (NYSE:ABT)
Market cap: US$237.78 billion
Abbott Laboratories creates a wide range of products, from diagnostics to medical devices to branded generic pharmaceuticals. Its medical devices focus on segments including vascular diseases, diabetes and optometry.
The company’s Tendyn transcatheter mitral valve replacement system received FDA approval in May. The system is designed to treat people with mitral valve disease without the need for open heart surgery.
In August, Abbott’s Navitor transcatheter aortic valve implantation system was granted the CE Mark designation in Europe, as was its Esprit BTK dissolving stent system. The Navitor system is designed to treat people with symptomatic, severe aortic stenosis who are at low or intermediate risk for open-heart surgery, while the Esprit BTK system allows treatment of patients with peripheral artery disease below the knee.
FAQs for pharmaceutical stocks
What does the pharmaceutical industry do?
The pharmaceutical industry encompasses a variety of companies that have different — although sometimes overlapping — roles to play. The most famous players are the “Big Pharma” companies. These giants often have a variety of subsidiaries, large pipelines and many products in their portfolios.
There are also smaller pharma R&D companies, which sometimes get acquired by larger firms if their work seems promising. Companies in these categories research, develop and bring to market drugs aimed at filling unmet needs, or helping people who are resistant to pre-existing treatments.
Once patents run out on prescription drugs, generic drug manufacturers create much cheaper generic versions. Wholesale companies also play a large role in the pharma sector. According to Common Wealth Fund, wholesalers have four areas through which they affect drug buying and distribution: “setting generic drug prices, leveraging list price increases, competing in specialty drug distribution, and mitigating or exacerbating drug shortages.”
What is the big pharma business model?
Big Pharma companies have a fairly consistent business model. Often, the company’s R&D team will slowly develop a new drug through many stages of testing to prove the drug’s efficacy, safety and necessity.
If all trials are completed successfully, the company will apply to government organizations such as the FDA, which must approve the drug before it can be mass produced, marketed and sold. Companies can skip a number of these steps by acquiring smaller companies, or through in-licensing, which results in two companies sharing the burden of a drug’s development through to commercialization. However, it’s worth noting that large pharma companies have many drugs in their pipelines at any given time, and many don’t make it to approval.
Once a drug is approved by the relevant health organization, it can be marketed and prescribed. Because patents expire after 20 years, companies lobby and advertise to try to get as many sales as possible during that window.
Which country is number one in the pharma industry?
The US is the top pharmaceutical country, with six of the top 10 pharma companies by revenue headquartered in the nation. The country is also in the lead when it comes to consumer spending on pharmaceuticals — this is due to the high cost of brand-name drugs. Aside from that, the US is the top country globally for pharma R&D spending, with 48 percent of global biopharma R&D companies headquartered there. Together they account for 55 percent of global R&D investments and 65 percent of funding at the development-stage.
What is the future of pharmaceuticals?
Pharmaceutical companies will have to adapt to changing times. The world is shifting, with economic woes, geopolitical disruptions and supply chain concerns affecting nearly every sector. Innovation continues to accelerate as well, and the medical landscape has changed in the wake of COVID-19. Additionally, the US government is making moves to address the astronomical prices of prescription medicine as the industry comes under more scrutiny.
For a look at what is else is effecting the market, read our 2025 Pharma Market Forecast.
Are pharmaceutical stocks risky?
While established players like the Big Pharma and wholesale companies discussed above should be relatively consistent, small companies are make-or-break depending on whether their drugs are successful. This means that investors could see much higher returns compared to large companies, but run the risk of taking massive losses in the case of failure.
This is an updated version of an article originally published by the Investing News Network in 2016.
Don’t forget to follow @INN_LifeScience for real-time updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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