The Architecture Of A Blockbuster

Mega blockbusters (in this study defined as >$10bn) such as Keytruda (pembrolizumab) or Humira (adalimumab) can completely determine the fate of even the largest big pharma. According to analyst consensus Keytruda is roughly responsible for two-thirds of Merck & Co., Inc.’s share price. And even though the key patents on Humira have run out and biosimilars are available, the drug still makes up 28% of AbbVie Inc.’s share price. Also, Celgene as a company was built largely on the back of one mega blockbuster, Revlimid (lenalidomide), and though Celgene is now part of Bristol Myers Squibb Company and generics are expected in 2022, the drug is still responsible for one-fifth of its share price.

As important as blockbusters may be, they are also exceedingly rare. In fact, only 0.5% of drugs that were launched after the 1980s until now have achieved blockbuster status. There...