According to the S&P Global Pharmaceutical Strength Rating, Johnson & Johnson (JNJ.US) and Roche (ADR) (RHHBY.US) ranked first with their outstanding performance, covering the comprehensive evaluation of the top 17 leading pharmaceutical companies globally.

During the rating process, S&P used a variety of measurement tools to evaluate companies' competitive advantages, sustained revenue growth prospects, operational efficiencies, scale, scope, and diversification, including business and financial risks. These considerations were carefully divided into two categories of business risks and financial risks to accurately determine the comprehensive strength ratings of each company.

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Business risks focus on measuring a company's long-term profitability, while financial risks focus on the company's credit ratio, which evaluates its debt repayment ability through leverage ratios. S&P's report stated that although leading branded pharmaceutical companies generally have strong competitive advantages and differentiated products, the difference in business strength is still significant across the entire industry.

Johnson & Johnson and Roche stood out not only for their excellent abilities in the pharmaceutical field but also for their independent medical technology businesses, which added highlights to their overall strength. It is particularly worth mentioning that both companies are also at the forefront of financial risk ratings, classified as 'minimal', demonstrating their outstanding performance in financial stability.

Meanwhile, companies such as Sanofi (SNY.US), Novartis (NVS.US), AstraZeneca (AZN.US), Pfizer (PFE.US), and GlaxoSmithKline (GSK.US) received the highest ratings in the business risk category. However, their financial risk status is slightly lower, ranking in the 'medium' category. Novo Nordisk (NVO.US) and Eli Lilly and Co (LLY.US) saw their stock prices soar due to the hot sales of diabetes and obesity products, with Novo Nordisk being classified as 'strong' in business risk, and Novo Nordisk was even rated 'the smallest' in financial risk.

S&P also pointed out that although Novo Nordisk and Lilly hold leading positions in market capitalization, their business diversification is not as high as other pharmaceutical giants. Lilly and Novo Nordisk have a high degree of focus on diabetes treatment, but with the strong growth of GLP-1 products' revenue for the treatment of obesity, it is expected that this focus will decrease.

Companies that are rated 'strong' in the business risk category also include Merck & Co., Inc, AbbVie, Inc, Bristol-Myers Squibb Co, Takeda Pharmaceutical Co Ltd, and Amgen Inc. Regarding financial risks, Amgen has become the only company in the study to be rated as 'significant' due to several acquisitions in recent years.

Companies like Biogen Inc (BIIB.US), Regeneron Pharmaceuticals Inc (REGN.US) and Gilead Sciences Inc (GILD.US) have shown 'satisfactory' performance in business risks, but their financial risks are relatively high, especially with Biogen and Regeneron Pharmaceuticals rated as 'the lowest' and Gilead Sciences as 'medium'.

S&P emphasized that Johnson & Johnson's main advantage lies in its size, with revenue expected to reach $85 billion in 2023, far exceeding other companies. S&P believes that economies of scale, bargaining power, and market leadership are the main competitive advantages of larger companies.

It is worth noting that despite the outstanding performance of some pharmaceutical companies' stock returns in the performance to date this year, they have not appeared on the list of companies with the highest overall returns. For example, Eli Lilly and Co.'s stock price has risen about 58%, mainly due to the strong sales performance of its GLP-1 drugs Mounjaro (tirzepatide) and Zepbound (tirzepatide) in the type 2 diabetes and weight loss markets.

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Similarly, Regeneron Pharmaceuticals Inc.'s stock price has also performed well, rising about 34% year-to-date, thanks to the sustained sales of its VEGF inhibitor Eylea and Eylea HD (aflibercept) and allergy biologics Dupixent(dupilumab), which it jointly sells with Sanofi. These significant growth not only highlights these companies' professional advantages in specific treatment areas but also reflects the market's highly recognized demand for their innovative drugs.

Finally, the report points out that due to the development of the industry and regulation, the overall business strength of the pharmaceutical industry has declined in the past few years. At the same time, the report also predicts the fastest-growing treatment areas in the next seven years, including gastroenterology (16.6%), dermatology (13.5%), oncology (9.8%), and cardiology (9.4%).