The R&D Index for the week ending August 17, 2018 closed at 4,730.92 for the 25 companies in the R&D Index. The Index was down 0.47% (or -22.45 basis points) from the week ending August 10, 2018. Fourteen R&D Index companies gained value last week from 0.03% (Roche Pharm) to 4.84% (Apple Computer). Eleven R&D Index companies lost value last week from -0.22% (Amazon) to -14.52% (Bayer AG).
Bayer’s dramatic stock drop last week followed a California State ruling that Bayer subsidiary Monsanto was ordered to pay $289 million for a lawsuit where its weed killers, Roundup and Ranger Pro, were claimed to cause cancer. With this verdict, the number of similar pending cases could multiply. Monsanto’s Roundup business unit produced more than $350 million in 2017 profits for the company which is now at risk for the future if future court cases find that the product should be banned.
R&D Index member Intel has held onto a 99% semiconductor microprocessor market share for more than 20 years. But former Intel CEO Brian Krzanich now says Intel expects to lose market share to competitor AMD (Advanced Micro Devices) who is producing its latest Epyc server microprocessor and expects to ship these in volume in 2019. Intel’s newest server microprocessor is at least a year behind and won’t ship theirs in volume until 2020. Nearly $100 billion in data centers utilizing these types of microprocessors are expected to deploy in 2018 alone to companies like Amazon, Google, Microsoft and Facebook. Intel could lose as much as 10% market share in this situation. Intel stock was down -3.6% for the week. It expects to increase its R&D spending by about 4% in 2019 to $14.2 billion. AMD expects to increase its R&D spending by about 9% in 2019 to $1.4 billion, barely 10% of Intel’s R&D investments.
Germany’s economic growth grew in 2Q by about 0.5% or an annualized rate of 1.8%, ensuring the risk of a Eurozone slowdown, according to a report by the EU’s Federal Statistical Office last week. This faster than expected growth is expected to translate into a 1.5% annualized growth for the Eurozone. Economic activity in Italy and Spain slowed in 2Q, while France grew at a steady, albeit slow, pace.
China reported last week that its spending on fixed assets, such as factory machine or public works projects slowed to its lowest point in nearly 20 years (1999). The spending only increased by about 5% from similar spending in 2017.
R&D Index Week Ending August 17, 2018 |
Ticker | Exchange | 2018 R&D millions U.S. $ | 08/10/18 | 08/17/18 | 8/17/18 to 8/10/18 | 8/17/18 to 12/29/17 | ||
1 | Amazon | AMZN | NASDAQ | 26,750 | 1,886.30 | 1,882.22 | -0.22% | 60.95% |
2 | Alphabet/Google | GOOGL | NASDAQ | 18,796 | 1,252.51 | 1,215.85 | -2.93% | 15.42% |
3 | Apple | AAPL | NASDAQ | 14,037 | 207.53 | 217.58 | 4.84% | 28.57% |
4 | Intel | INTC | NASDAQ | 13,702 | 48.85 | 47.10 | -3.58% | 2.04% |
5 | Microsoft | MSFT | NASDAQ | 13,558 | 109.00 | 107.58 | -1.30% | 25.77% |
6 | Roche Pharm | RHHBY | OTC | 12,284 | 30.03 | 30.12 | 0.03% | -4.62% |
7 | Johnson & Johnson | JNJ | NYSE | 11,493 | 130.75 | 134.47 | 2.85% | -3.76% |
8 | Merck & Co. | MRK | NYSE | 11,323 | 66.07 | 69.06 | 4.53% | 22.73% |
9 | Volkswagen AG | VLKAY | OTC | 10,915 | 32.33 | 32.01 | -0.99% | -20.85% |
10 | Toyota | TM | NYSE | 10,848 | 124.23 | 123.28 | -0.76% | -3.06% |
11 | Novartis | NVS | NYSE | 8,934 | 82.10 | 83.04 | 1.14% | -1.10% |
12 | Honda | HMC | NYSE | 8,180 | 30.09 | 30.00 | -0.30% | -11.97% |
13 | Pfizer | PFE | NYSE | 7,942 | 40.93 | 42.09 | 2.83% | 16.21% |
14 | Daimler | DDAIY | OTC | 7,615 | 65.41 | 63.21 | -3.36% | -25.25% |
15 | General Motors | GM | NYSE | 7,278 | 36.59 | 36.38 | -0.57% | -11.25% |
16 | Oracle | ORCL | NYSE | 7,001 | 48.32 | 48.36 | 0.08% | 2.28% |
17 | Bristol-Myers Squibb | BMY | NYSE | 6,981 | 59.31 | 60.89 | 2.66% | -0.64% |
18 | Eli Lilly Co | LLY | NYSE | 6,769 | 102.25 | 105.55 | 3.23% | 24.97% |
19 | GlaxoSmithKline | GSK | NYSE | 6,394 | 40.15 | 41.25 | 2.74% | 16.30% |
20 | Cisco | CSCO | NASDAQ | 6,009 | 43.78 | 45.87 | 4.77% | 19.76% |
21 | IBM | IBM | NYSE | 5,842 | 144.48 | 146.06 | 1.09% | -5.04% |
22 | Bayer AG | BAYN | OTC | 5,743 | 26.59 | 22.73 | -14.52% | -26.89% |
23 | Astra Zeneca PLC | AZN | NYSE | 5,483 | 39.38 | 38.12 | -3.20% | 9.86% |
24 | Qualcomm | QCOM | NASDAQ | 5,183 | 64.82 | 66.06 | 1.91% | 3.19% |
25 | Sanofi SA | SNY | NYSE | 4,694 | 41.57 | 42.04 | 1.13% | -2.23% |
Total | 243,754 | 4,753.37 | 4,730.92 | -0.47% | 24.77% | |||
Biopharmaceutical | 659.13 | 669.36 | 1.55% | 4.96% | ||||
Automotive | 288.65 | 284.88 | -1.31% | -12.94% | ||||
ICT | 1,919.29 | 1,894.46 | -1.29% | 14.31% |
About the R&D Index
R&D Magazine’s R&D Index is a weekly stock market summary of the top international companies involved in research and development. The top 25 industrial spenders of R&D in 2017 were selected based on the latest listings from Schonfeld & Associates’ June 2018 R&D Ratios & Budgets. These 25 companies include pharmaceutical (11 companies), automotive (5), ICT (8) and conglomerate (1) organizations who invested a cumulative total of more than $209 billion in R&D in 2017, or approximately 10% of all the R&D spent in the world by government, industries and academia combined, according to R&D Magazine’s 2018 Global R&D Funding Forecast. The stock prices used in the R&D Index are tabulated from NASDAQ, NYSE, XETRA and OTC common stock prices (in U.S. dollars) for the companies selected at the close of stock trading business on the Friday preceding the publication of the R&D Index in R&D Magazine’s R&D Daily eNewsletter.
The companies used in the R&D Index include Amazon, Alphabet/Google, Microsoft, Intel, Apple, Volkswagen AG, Roche Pharma, Toyota, Johnson & Johnson, Novartis, General Motors, Pfizer, Bristol-Myers Squibb, Cisco, Qualcomm, Oracle, Honda Motor Company, Astra Zeneca plc, Merck & Company, Daimler, Bayer AG, Sanofi SA, IBM, GlaxoSmithKline and Eli Lilly Co. Stock prices are based on those stocks traded on the U.S. exchanges. R&D Index trends (in the stock prices) are just one indicator of the amount of capital available to these high-technology companies to invest in R&D and should not be implied to indicate the absolute value of R&D investments made by these organizations. The companies chosen for the R&D Index have very large sophisticated internal and global R&D organizations with each company investing between $4.5 and $17 billion annually on their R&D efforts.