Top 20 global biopharma players witness 2% growth in market capitalization during Q3 2024

New Delhi: The biopharmaceutical industry demonstrated signs of recovery in the third quarter (Q3) of 2024, with increased investor optimism following the interest rate cuts by the US Federal Reserve in September 2024.

As a result, the top 20 global biopharmaceutical companies reported an upturn of 2% in aggregate market capitalization from $4.2 trillion as on 30 June 2024 to $4.3 trillion as on 30 September 2024, reveals GlobalData, a leading data analytics and research company.

Alison Labya, MSc, Business Fundamentals Analyst at GlobalData, comments: “Over two thirds of the top 20 biopharmaceutical companies reported positive growth in market capitalization, where eight companies including Bristol-Myers Squibb (24.6%), Gilead Sciences (22.1%), Sanofi (19.2%), AbbVie (15.2%) and Alnylam Pharmaceuticals (14.9%) witnessed more than 10% growth.”

Bristol-Myers Squibb witnessed the largest growth in market capitalization of 24.6% to $105 billion in Q3 2024, fueled by robust pipeline progress and the FDA approval of its antipsychotic drug Cobenfy for the treatment of schizophrenia in September 2024.

Gilead Sciences achieved a market capitalization growth of 22.1%, owing to the FDA accelerated approval of its PPARD oral agonist Livdelzi for the treatment of primary biliary cholangitis, as well the approval of its antibody-drug conjugate (ADC) Trodelvy in Japan for the treatment of HR-/HER2- breast cancer.

Sanofi reported a 19.2% increase in market capitalization due to the strong performance of its blockbuster drug Dupixent in Q2 2024 for the treatment of atopic dermatitis (AD), asthma, chronic rhinosinusitis with nasal polyposis, eosinophilic esophagitis and prurigo nodularis.

Dupixent’s EMA and FDA approval for the treatment chronic obstructive pulmonary disease (COPD) received in July and September  2024, respectively, further fueled Sanofi’s market capitalization growth. Meanwhile, the success of AbbVie’s immunology blockbuster drugs – Humira, Skyrizi and Rinvoq – drove its market capitalization by 15.2%, with reported Q2 sales of $2.8 billion, $2.7 billion and $1.4 billion, respectively.

Alnylam Pharmaceuticals saw a 14.9% market capitalization growth, positioning the company in the top 20 global biopharmaceutical companies by market capitalization in Q3 2024. This growth was primarily due to its RNA interference (RNAi) drug vutrisiran having met its primary endpoint of reduced all-cause mortality and recurrent cardiovascular events in the Phase III HELIOS-B trial for ATTR amyloidosis with cardiomyopathy (ATTR-CM).

Roche’s market capitalization growth of 13.8% was driven by FDA approvals for two key products in September 2024: Ocrevus Zunovo, the first twice-yearly 10-minute subcutaneous injectable for relapsing and progressive multiple sclerosis, and Tecentriq Hybreza, a subcutaneous PD-L1 inhibitor for oncology indications. Tecentriq Hybreza is currently the only approved subcutaneous PD-L1 inhibitor on the market.

Novo Nordisk witnessed a 18.2% decline in market capitalization in Q3 following the FDA’s rejection of the BLA filing for its once-weekly Awiqli (insulin icodec). Novo Nordisk’s GLP-1 agonist rival, Lilly had also reported a decline in market capitalization of 2.1%. Despite this, Lilly and Novo Nordisk maintained their leading positions on the list, owing to the continued success of their weight loss and diabetes drugs Mounjaro/Zepbound (Lilly) and Ozempic/Wegovy (Novo Nordisk).

Meanwhile, Merck registered a market capitalization fall of 8.2% over Q3 2024 due to an unexpected sales decline for its HPV cancer vaccine Gardasil in China.

Labya concludes: “The biopharmaceutical industry is poised for a recovery, fueled by multiple FDA approvals leading to a rebound in companies that have seen declines in market capitalization in previous quarters, such as Gilead Sciences and Bristol-Myers Squibb. Industry leaders are driving innovation by advancing their R&D pipelines and entering billion-dollar strategic alliances, which has been facilitated by interest rate cuts by the US Federal Reserve.”