According to a report by GlobalData, the market capitalization of the top 20 global biopharmaceutical companies increased by 4.3% in the second quarter of 2024. This growth reflects the overall resilience of the biopharmaceutical sector amid improving global market conditions and investor optimism, potentially spurred by anticipated interest rate cuts from the US Federal Reserve. The aggregate market capitalization rose from $3.8 trillion on March 31, 2024, to $4 trillion on June 30, 2024.
Ophelia Chan, MSc, Business Fundamentals Senior Analyst at GlobalData, noted that out of the twelve companies with positive growth in market capitalization, seven witnessed an increase exceeding 10%. The top five firms maintained their rankings from the first quarter of 2024.
Eli Lilly & Co. led the sector with a 16.3% rise in market capitalization during the quarter, largely driven by high demand for its medications including Mounjaro for type 2 diabetes, Zepbound for weight loss, and Verzenio for breast cancer. In July 2024, Lilly further strengthened its position with FDA approval for Kisunla, a treatment for Alzheimer’s disease, enhancing its portfolio in metabolic disorders, oncology, and neurological disorders.
Novo Nordisk saw a 10.8% increase in market capitalization, supported by its leading position in the GLP-1 market with drugs like Ozempic and Wegovy for type 2 diabetes and weight loss. The approval of Wegovy in China positions the company to expand its influence in the weight loss sector within the country.
AstraZeneca reported a 15.5% growth, attributed to strong sales of its oncology products, including Tagrisso and Imfinzi. The company also completed its acquisition of Fusion Pharmaceuticals in June 2024, aiming to advance in next-generation radioconjugates for cancer therapy.
Vertex Pharmaceuticals experienced a 12% rise in market capitalization, driven by ongoing demand for its cystic fibrosis treatments and the strategic acquisition of Alpine Immune Sciences for $4.9 billion.
Moderna's market capitalization increased by 11.5% following the U.S. FDA approval of its mRNA RSV vaccine, mRESVIA, marking the company's second approved mRNA product.
Conversely, eight companies reported declines in market capitalization during the quarter. Bristol-Myers Squibb experienced a 23.2% decrease, despite robust sales of Eliquis and Opdivo. In response to challenges from patent expirations and new pricing regulations, the company plans cost reductions of $1.5 billion by 2025, reallocating resources toward key drug brands and R&D initiatives.
GSK's market capitalization fell by 10.5% after a Delaware State Court decision allowed jury trials for cancer claims related to Zantac. However, GSK successfully resolved a lawsuit in August 2024, with the jury finding the company not liable. Nonetheless, GSK's sales in specialty medicines for HIV and oncology doubled to $400 million in Q2 2024.
Ophelia Chan concluded that despite macroeconomic challenges, restructuring of drug prices, and upcoming patent expirations, the leading biopharmaceutical companies remain committed to advancing their R&D programs. Many are strategically positioning themselves within the rapidly expanding GLP-1 market.
