Net product revenue is the top pharmaceutical revenue KPI in 2027, followed by volume versus price growth and the gross-to-net discount. Lilly reported Q3 2026 revenue of $24.4 billion, up 39% on a 53% volume increase and a 15% price decrease. Bristol Myers Squibb reported gross-to-net adjustments of 47% of gross product sales for 2025, and Merck says Keytruda was 49% of its 2025 sales. Where no company publishes a figure, this page says so.
Bristol Myers Squibb reconciles gross product sales to net product sales by subtracting gross-to-net adjustments, so net revenue is what the company keeps after discounts and rebates
Seeing the size of the business after discounts and rebates, the starting point for every other pharma KPI
Bristol Myers Squibb: revenue is reduced from wholesaler list price for expected charge-backs, discounts, rebates, sales allowances and returns, which it calls gross-to-net adjustments
Understanding how far list price sits from the revenue a company actually books
Definition: Bristol Myers Squibb reconciles gross product sales to net product sales by subtracting gross-to-net adjustments, so net revenue is what the company keeps after discounts and rebatesEli Lilly, Q3 2026: Revenue of $24.4 billion, up 39%; full-year 2026 revenue guidance of $91.0 to $92.0 billionPfizer, Q3 2026: Total revenues of $16,583 million versus $16,654 million a year earlier; full-year 2026 revenue guidance of $62.0 to $64.0 billionMerck, Q3 2026: Total worldwide sales of $18.1 billion, up 5%AbbVie, Q3 2026: Net revenues of $17.404 billion, up 10.3% on a reported basis
Net product revenue is what a drugmaker books after discounts and rebates. Lilly reported $24.4 billion for Q3 2026, Pfizer $16,583 million, Merck $18.1 billion and AbbVie $17.404 billion, with Lilly guiding to $91.0 to $92.0 billion for the year and Pfizer to $62.0 to $64.0 billion.
Go ifSeeing the size of the business after discounts and rebates, the starting point for every other pharma KPI
Skip ifYou need one comparable figure; each company reports a different quarter end and mix of products and alliances
Why #1 over #2: Every other pharma KPI is a slice or a ratio of this number.
2
Pharmaceutical Volume vs Price Growth
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Answrs VerdictThe growth-quality KPI.
Definition: Lilly explains its revenue change as a change in volume offset or helped by a change in realized pricesEli Lilly, Q3 2026: Worldwide revenue up 39%, driven by a 53% increase in volume, partially offset by a 15% decrease in realized pricesEli Lilly by region, Q3 2026: U.S. revenue up 34% on a 41% volume increase and a 7% price decrease; outside the U.S. up 47% on a 76% volume increase and a 29% price decreaseNovartis, Q3 2026: Net sales of USD 14.5 billion, up 4%, with volume contributing 14 percentage points, generic competition taking away 9 points and pricing taking away 1 pointDrug Channels, 2025: Across eight manufacturers, the average list price rose 3.7% while the average net price fell 1.8%
Lilly split its 39% Q3 2026 growth into a 53% volume increase and a 15% price decrease. Novartis reported volume adding 14 percentage points, generic competition taking away 9 and pricing taking away 1. Drug Channels found the 2025 average list price rose 3.7% while the net price fell 1.8%.
Go ifFinding out whether growth comes from selling more units or from charging more
Skip ifYou need one definition; Lilly, Novartis and Drug Channels each measure price differently
Why #2 over #3: It shows the source of growth, which a revenue total hides.
3
Pharmaceutical Gross-to-Net Discount
Photo: UKM Elisabeth Deiters-Keul / CC BY-SA 3.0 via Wikimedia Commons
Answrs VerdictThe pricing-reality KPI.
Definition: Bristol Myers Squibb: revenue is reduced from wholesaler list price for expected charge-backs, discounts, rebates, sales allowances and returns, which it calls gross-to-net adjustmentsBristol Myers Squibb, fiscal 2025: Gross product sales of $88,085 million less gross-to-net adjustments of $41,329 million left net product sales of $46,756 million; the adjustments were 47% of gross sales versus 44% in 2024Bristol Myers Squibb by region, 2025: Gross-to-net adjustments of 53% in the U.S. versus 49% in 2024, and 19% outside the U.S. versus 20%Drug Channels, 2025: Across three manufacturers that disclose it, the unweighted average discount from list price was 51.7%; Drug Channels estimates total gross-to-net reductions for brand-name drugs at $416 billion for 2025Other companies: Not published: the Lilly, Pfizer and Merck third quarter 2026 releases read give no gross-to-net percentage
Bristol Myers Squibb turned $88,085 million of gross product sales into $46,756 million of net product sales in 2025, a gross-to-net rate of 47% versus 44% in 2024, and 53% in the U.S. Drug Channels put the unweighted average discount at three companies at 51.7%. Lilly, Pfizer and Merck publish no such percentage in the releases read.
Go ifUnderstanding how far list price sits from the revenue a company actually books
Skip ifYou want one market-wide percentage; only a few companies disclose it, in different ways
Why #3 over #4: It explains the gap between list price and booked revenue, which margin alone does not.
4
Pharmaceutical Gross Margin
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Answrs VerdictThe profitability KPI.
Definition: Lilly reports gross margin as a percent of revenueEli Lilly, Q3 2026: Gross margin of 83.9% of revenue, up 1.0 percentage points; non-GAAP gross margin of 84.4%Merck, Q3 2026: GAAP gross margin of 72.9% versus 77.7% a year earlier; non-GAAP gross margin of 81.4%AbbVie, Q3 2026: GAAP gross margin ratio of 75.4% and adjusted gross margin ratio of 85.1%Pfizer, Q3 2026: Reports cost of sales rather than gross margin: 24.3% of revenues as reported and 23.2% adjusted
Lilly reported a gross margin of 83.9% for Q3 2026, Merck 72.9% on a GAAP basis and 81.4% non-GAAP, and AbbVie 75.4% GAAP and 85.1% adjusted. Pfizer reports cost of sales instead, at 24.3% of revenues as reported.
Go ifChecking how much of each revenue dollar is left after making the product
Skip ifYou compare GAAP with non-GAAP figures; the gap between them is large at Merck and AbbVie
Why #4 over #5: It shows what is left after production cost, which R&D share cannot.
5
Pharmaceutical R&D as a Share of Revenue
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Answrs VerdictThe reinvestment KPI.
Definition: Lilly states research and development expense as a share of revenueEli Lilly, Q3 2026: Research and development expenses rose 23% to $4.2 billion, or 17% of revenueAbbVie, Q3 2026: GAAP research and development expense of 14.7% of net revenues; adjusted 13.9%Johnson & Johnson, fiscal Q3 2026: Total research and development expense of 18.3% of sales versus 15.3% a year earlier; Innovative Medicine 23.2% versus 18.9%Pfizer, Q3 2026: Not published as a ratio: the release gives R&D expense in dollars and shows percent of revenues only for cost of sales
Lilly spent 17% of revenue on R&D in Q3 2026, or $4.2 billion. AbbVie reported 14.7% of net revenues on a GAAP basis and Johnson & Johnson 18.3% of sales in its fiscal third quarter, with Innovative Medicine at 23.2%. Pfizer gives R&D in dollars but no ratio.
Go ifJudging how much of revenue a company puts back into its pipeline
Skip ifYou compare firms with large acquired in-process R&D charges, which some include and others exclude
Why #5 over #6: It shows how much revenue feeds the pipeline, which new-product revenue only shows later.
6
Pharmaceutical Revenue from New Products
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Answrs VerdictThe renewal KPI.
Definition: Pfizer: Launched and Acquired Products are select recently launched and acquired products, including new indicationsPfizer, Q3 2026: Revenues of launched and acquired products grew 32% operationally; non-COVID products grew 7% operationallyEli Lilly, Q3 2026: Key Products revenue of $17.1 billion; Key Products in Immunology, Oncology and Neuroscience grew 100%Merck, Q3 2026: Winrevair sales of $694 million, up 93%; Keytruda Qlex sales of $830 millionAbbVie, Q3 2026: Global Skyrizi net revenues of $5.776 billion, up 22.7%, and Rinvoq of $2.706 billion, up 23.9%
Pfizer said launched and acquired products grew 32% operationally in Q3 2026. Lilly reported Key Products revenue of $17.1 billion, Merck sold $694 million of Winrevair, and AbbVie reported Skyrizi at $5.776 billion and Rinvoq at $2.706 billion.
Go ifSeeing whether new launches are replacing revenue from aging products
Skip ifYou need one definition of new; each company chooses its own list of products
Why #6 over #7: It shows replacement revenue, while the patent cliff shows what is at risk.
7
Pharmaceutical Patent Cliff Exposure
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Answrs VerdictThe looming-risk KPI.
Definition: Merck: patent protection is of material importance to marketing its products, and the 10-K lists key patent expiration years by marketMerck, fiscal 2025: Keytruda represented 49% of total sales; key patent expiration of 2028 in the U.S. and 2031 in the EUBristol Myers Squibb, fiscal 2025: For Opdivo Qvantig, estimated minimum market exclusivity dates of 2028 in the U.S. and 2030 in the EU; Pomalyst generic entry expected in the first quarter of 2026 in the U.S.Pfizer, 2026 guidance: Anticipated unfavorable revenue impact of approximately $1.1 billion from generic and biosimilar competition
Merck states Keytruda was 49% of its 2025 sales and lists key patent expiration of 2028 in the U.S. and 2031 in the EU. Bristol Myers Squibb lists 2028 and 2030 for Opdivo Qvantig, and Pfizer expects about $1.1 billion of unfavorable revenue impact in 2026 from generic and biosimilar competition.
Go ifSizing how much revenue sits behind patents that expire soon
Skip ifYou expect one cliff date; each company lists dates by product and market
Why #7 over #8: It looks forward at risk, while erosion measures damage already done.
Definition: Johnson & Johnson measures the hit as the negative impact of the Stelara sales decline, due to biosimilar competition, on operational sales growthJohnson & Johnson, fiscal Q3 2026: Stelara worldwide sales of $716 million versus $1,570 million, down 54.4%; the decline cut worldwide operational sales growth by approximately 4.2%AbbVie, Q3 2026: Global Humira net revenues of $683 million, down 31.2% on a reported basisNovartis, Q3 2026: Generic competition took away 9 percentage points of net sales growth in the quarter, 12 points over nine months
Johnson & Johnson reported Stelara worldwide sales of $716 million versus $1,570 million, down 54.4%, which cut worldwide operational growth by about 4.2%. AbbVie reported Humira down 31.2% to $683 million, and Novartis lost 9 points of Q3 growth to generics.
Go ifMeasuring how fast revenue falls once biosimilars or generics arrive
Skip ifYou want a forecast; these figures are what has already happened
Why #8 over #9: It is a measured result, which exposure only estimates.
9
Pharmaceutical U.S. vs International Revenue Mix
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Answrs VerdictThe market-dependence KPI.
Definition: Johnson & Johnson reports Innovative Medicine sales split between U.S. and internationalJohnson & Johnson Innovative Medicine, fiscal Q3 2026: U.S. sales of $10,447 million, up 11.1%, and international $6,310 million, up 2.4%; worldwide $16,757 million versus $15,563 million, up 7.7%Pfizer, Q3 2026: U.S. revenues of $10,602 million versus $10,691 million, and international revenues of $5,981 million versus $5,963 millionEli Lilly, Q3 2026: U.S. revenue of $15.1 billion, up 34%, and revenue outside the U.S. of $9.3 billion, up 47%
Johnson & Johnson Innovative Medicine sold $10,447 million in the U.S. and $6,310 million internationally in its fiscal third quarter. Pfizer reported $10,602 million U.S. and $5,981 million international revenues, and Lilly $15.1 billion U.S. versus $9.3 billion outside it.
Go ifSeeing how dependent revenue is on U.S. pricing and U.S. payers
Skip ifYou need a like-for-like split; each company draws the regions differently
Why #9 over #10: It shows dependence on one payer system, which the total market view does not.
10
Pharmaceutical U.S. Market Spending
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Answrs VerdictThe market-size KPI.
Definition: IQVIA measures U.S. medicine spending at net prices, meaning after discounts, rebates and other price concessionsIQVIA, 2025: Net medicine spending of $606 billion in 2025 versus $548 billion in 2024, up 10.6%, and an average of 9.3% a year over five yearsIQVIA forecast: Net spending forecast to grow 4.5 to 7.5% through 2030, against 6 to 9% at list pricesCMS, 2024: Retail prescription drug spending of $467.0 billion in 2024, up 7.9% versus 10.8% in 2023, with retail prescription drug prices up 1.4%
IQVIA put 2025 U.S. net medicine spending at $606 billion, up 10.6% from $548 billion, and forecasts 4.5 to 7.5% net growth through 2030. CMS reported retail prescription drug spending of $467.0 billion in 2024, up 7.9%.
Go ifPutting one company revenue growth against the size and speed of the whole U.S. market
Skip ifYou need company revenue; these are market totals from IQVIA and CMS
How we ranked these
We ranked ten pharmaceutical revenue KPIs by how directly each measures a drugmaker’s revenue and whether a public filing, IQVIA or CMS publishes a figure for it. Benchmarks come from the Eli Lilly third quarter 2026 release (October 2026), the Pfizer third quarter 2026 release (November 2026), the Merck third quarter 2026 release, the AbbVie third quarter 2026 release (October 2026), the Johnson & Johnson Form 10-Q for the quarter ended in September 2026, the Novartis third quarter 2026 report, the Bristol Myers Squibb and Merck fiscal 2025 Form 10-Ks, the Drug Channels review of 2025 gross-to-net data (republished in October 2026 from July 2026), the IQVIA Institute U.S. Medicine Use Trends 2026 report (April 2026, covering 2025) and the CMS National Health Expenditures 2024 highlights. Figures come from the company releases and filings or the pages read, and we did not read the full IQVIA or Drug Channels reports. Periods differ by company and some figures are GAAP while others are non-GAAP, so compare each with its own history first. Where no figure is published, we say so instead of estimating. This is business information, not investment advice. Facts are taken from each maker's own published information; check the official site before you buy.
Questions people ask
What is gross-to-net in pharmaceutical revenue?
Gross-to-net is the gap between list-price sales and the revenue a company books after charge-backs, rebates and discounts. Bristol Myers Squibb reported adjustments of 47% of gross product sales for 2025, up from 44% in 2024.
What share of revenue do drugmakers spend on R&D?
Lilly reported research and development of 17% of revenue in Q3 2026, AbbVie 14.7% of net revenues on a GAAP basis, and Johnson & Johnson 18.3% of sales in its fiscal third quarter.
How much did Lilly revenue grow from volume versus price?
Lilly reported Q3 2026 worldwide revenue up 39%, driven by a 53% increase in volume and partially offset by a 15% decrease in realized prices.
How much of Merck sales comes from Keytruda?
Merck states that sales of Keytruda represented 49% of the Company total sales in 2025, and lists a key patent expiration of 2028 in the U.S.
Revenue growth in the third quarter of 2026, in percent, as reported at a glance
Novartis4 %
Merck5 %
Johnson & Johnson Innovative Medicine7.7 %
AbbVie10.3 %
Eli Lilly39 %
Revenue growth in the third quarter of 2026, in percent, as reported, as published by each maker. Picks without a published figure are left off.
