Large-cap pharma firms top global ranking of firms creating value

 
Billy Bambrough
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Three of the top five positions were taken by pharmaceutical groups
Three of the top five positions were taken by pharmaceutical groups (Source: Getty)

Big biopharma firms have topped the list of the world’s best firms for creating shareholder value.

An annual report from the Boston Consulting Group (BCG) has found three of the top five positions were taken by pharmaceutical groups.

US-based Regeneron Pharmaceuticals grabbed the top spot with a total shareholder return (TSR) of 75.3 per cent, more than 30 percentage points greater than that of the number two company, Allergan.

TSR measures the combination of share price gains and dividend yield for a company’s stock over a given period.

Of the 89 companies that have appeared in the top 10 since BCG began publishing the rankings in 1999, only 19 have appeared in the top 10 for three years or more.

“Over time, companies tend to fade to average market performance,” said Jeffrey Kotzen, BCG senior partner.

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