The biopharmaceutical industry remained resilient in the second quarter (Q2) of 2024 as global markets and investor optimism improved with anticipation of a potential interest rate cut from the US Federal Reserve. The top 20 global biopharmaceutical companies reported a total increase of 4.3 per cent in market capitalisation from $3.8 trillion as on 31 March 2024 to $4 trillion as on 30 June 2024, reveals GlobalData.
Ophelia Chan, MSc, Business Fundamentals Senior Analyst at GlobalData, states, “Among the 12 companies that reported a positive increase in market capitalisation, seven experienced a surge of over 10 per cent. Notably, the top five companies maintained their positions from Q1 2024.”
Lilly retained its leading position, achieving the highest market capitalisation growth of 16.3 per cent in Q2 2024, surpassing $800 billion. This success was driven by the soaring demand for Lilly’s type 2 diabetes drug Mounjaro, weight loss drug Zepbound and breast cancer drug Verzenio. In July 2024, Lilly also received FDA approval for Kisunla, for Alzheimer’s disease, further solidifying the company’s strong presence across metabolic disorders, oncology and neurological disorders.
Novo Nordisk dominated the GLP-1 market with its type 2 diabetes and weight loss drugs, Ozempic and Wegovy, driving a 10.8 per cent increase in the company’s market capitalisation. Wegovy was also approved in China during Q2 2024, the world’s second-largest economy after the US. This positions Novo Nordisk to potentially dominate the weight loss market in China.
AstraZeneca reported a 15.5 per cent increase in market capitalisation, fueled by the demand for its blockbuster oncology drugs, including Tagrisso for non-small cell lung cancer (NSCLC) and Imfinzi for various cancers including NSCLC. AstraZeneca has also marked a significant step in transforming cancer therapies with the completion of its acquisition with Fusion Pharmaceuticals in June 2024, a strategic move aimed at developing next-generation radioconjugates.
Vertex achieved a 12 per cent increase in market capitalisation, attributed to continued demand for its cystic fibrosis therapies, multiple approvals, and the completion of a $4.9 billion acquisition of Alpine Immune Sciences. The acquisition includes Alpine’s lead asset, povetacicept, indicated for multiple autoimmune and inflammatory diseases.
Moderna reported a market capitalisation growth of 11.5 per cent driven by the US FDA approval of its mRNA respiratory syncytial virus (RSV) vaccine, mRESVIA, in May 2024. This marks Moderna’s second approved mRNA product.