Top 20 global biopharma companies report 5.7% fall in market capitalization in Q2 2025, reveals GlobalData

New Delhi: The biopharmaceutical industry faces headwinds from Trump administration’s ongoing tariffs and drug pricing pressures in the US. As a result, the top 20 global biopharmaceutical companies have reported a 5.7% quarter-on-quarter (QoQ) downturn in their combined market capitalization from $3.9 trillion on 31 March 2025 to $3.7 trillion on 30 June 2025, reveals GlobalData, a leading data analytics and research company.

A decrease in market capitalization was seen for 16 of the top 20 players. However, Alnylam Pharmaceuticals (21.8%),Novartis(7.7%), Takeda (3.4%) and Novo Nordisk(0.5%) registered growth in market capitalization.

Alison Labya, MSc, Senior Business Fundamentals Pharma Analyst at GlobalData, comments: “Alnylam witnessed the largest market capitalization growth of 21.8% to $42.5 billion, and secured a spot as a new entrant in the top 20 players. The company’s growth was largely driven by the strong performance of its RNA interference (RNAi) therapeutic Amvuttra for transthyretin amyloidosis cardiomyopathy (ATTR-CM), which saw a 59% year-over-year (YoY) increase in global sales to $310 million in Q1 2025.”

Novartis reported a 7.7% increase in market capitalization in Q2 2025 due to its strong financial performance, with growth in sales seen across its blockbuster drugs in 2024, including Entresto, Cosentyx, Kesimpta and Kisqali. Novartis’ market capitalization growth was further fueled by the completion of its acquisition of Regulus Therapeutics in June 2025, valued at $1.7 billion, representing a strategic move to strengthen its renal disease portfolio.

Meanwhile, Bristol Myers Squibb (-22.9%), Regeneron (-18.7%), Sanofi (13.8%), and Merck & Co (11.8%) recorded negative growth of over 10% in Q2 2025.

Bristol Myers Squibb’s market capitalization fell 22.9% over Q2 2024, following the announcement of its mixed Q1 2025 financial performance and disappointing trial results. Of note, the company’s Phase III ARISE trial investigating Cobenfy as an adjunctive therapy to atypical antipsychotics for schizophrenia did not meet its primary endpoint of change in the Positive and Negative Syndrome Scale (PANSS).

Regeneron (-18.7%) and Sanofi (-13.8%) experienced drops in their market capitalization due to the failure of itepekimab—their partnered IL-33-targeting monoclonal antibody— to meet its primary endpoint in the Phase III AERIFY-2 trial for chronic obstructive pulmonary disease (COPD). The AERIFY-2 trial is one of a pair of Phase III trials (AERIFY-1 and AERIFY-2) that aimed to achieve a reduction in moderate or severe exacerbations of COPD.

Labya adds: “The failure of the AERIFY-2 trial represents a setback for itepekimab, for which Sanofi had planned to file for regulatory approval in the US and EU in H2 2025. However, other trials evaluating itepekimab in COPD remain ongoing, including the Phase II AERIFY-3 and Phase III AERIFY-4 trials. Despite the setback, itepekimab is forecasted to achieve analyst consensus global sales exceeding $1 billion by 2031, according to GlobalData’s Sales and Forecast database.”

Merck & Co witnessed a 11.8% decline in market capitalization during Q2 2025, primarily driven by concerns over the performance of its Gardasil vaccine in China, which contributed to a 40% decline in global sales to $1.3 billion in Q1 2025.

Labya concludes: “Investor sentiment has been impacted by the US tariff announcements and mounting drug pricing pressures in the US, leading to significant declines in market capitalization among the top biopharmaceutical companies in Q2 2025. Moreover, the US plans to impose 250% tariffs on pharmaceutical imports is expected to further impact share prices over Q3 2025. Nonetheless, some companies, such as Alnylam and Novartis have shown resilience amid these challenges by demonstrating strong financial performance.”