Top 20 global biopharma companies report 9.6 per cent market cap growth in Q1 2024: GlobalData

Despite the ongoing uncertainties surrounding macroeconomic activities, fluctuating interest rates, and changes in the Medicare Drug Price Negotiation landscape, the top 20 global biopharma companies experienced a promising first quarter this year. They reported a total increase of 9.6 per cent in market capitalisation from $3.67 trillion as on 31 December 2023 to $4 trillion as on 31 March 2024, reveals GlobalData.

Over half of the top 20 pharma companies reported positive growth in market capitalisation over Q1 2024, with seven companies- Lilly (33.7 per cent), Novo Nordisk (23.8 per cent), Merck & Co (21.0 per cent), AbbVie (17.8 per cent), GSK (17.7 per cent), Daiichi Sankyo (15.0 per cent) and Regeneron Pharmaceuticals (10.4 per cent)- reporting over 10 per cent growth in market capitalisation.

Ophelia Chan, Business Fundamentals Analyst at GlobalData, comments, “Lilly maintains its lead with the largest market capitalisation growth of 33.7 per cent over Q1 2024, closely followed by Novo Nordisk, which saw a market capitalisation of 23.8 per cent, surpassing Johnson & Johnson.”

Lilly’s market capitalisation growth was driven by the strong sales of Mounjaro, its glucagon like peptide 1 (GLP-1) drug for treating type 2 diabetes. Furthermore, the FDA approval of Zepbound in November 2023, containing the same active ingredient as Mounjaro but for obesity treatment, further contributed to Lilly’s growth. Mounjaro’s global sales reached $5.3 billion in 2023 and is forecasted to achieve $12.3 billion in 2024, according to GlobalData’s Drugs Database Pharma Intelligence Center.

Lilly’s GLP-1 agonist rivals, Novo Nordisk had also witnessed a remarkable market capitalisation growth owing to the success of its diabetes and obesity drugs, Ozempic and Wegovy, which reported sales of $13.5 billion and $4.4 billion, respectively, in 2023.

Merck & Co’s market capitalisation growth of 21 per cent was attributed to the US FDA approval of Winrevair, a treatment for pulmonary arterial hypertension (PAH). This approval marks the first FDA-approved activin-signaling inhibitor therapy for PAH.

AbbVie reported market capitalisation growth of 17.8 per cent in Q1 2024, driven by its strategic acquisitions. The acquisition of ImmunoGen, valued at $10.1 billion and definitive transaction worth $8.7 billion to acquire Cerevel Therapeutics, will bolster AbbVie’s oncology and neuroscience portfolios.

GSK saw a 17.7 per cent market capitalisation growth fueled by its 12 per cent revenue increase in 2023 (excluding COVID-19 solutions) and robust pipeline progress. Last year, GSK obtained approvals for four major products: Arexvy RSV vaccine, Apretude for HIV prevention, Ojjaara for myelofibrosis and Jemperli for endometrial cancer. These advancements aim to mitigate the impact of the upcoming patent loss of exclusivity for GSK’s HIV blockbuster drug, Dolutegravir, starting in 2028.

Eight biopharma companies saw their market capitalisation decline in Q1 2024, with Roche registering a market capitalisation fall of 12.4 per cent. This drop was mainly attributed to the reduced demand for COVID-19 related products. Nonetheless, Vabysmo, approved for wet macular degeneration in 2022, experienced a significant sales increase, tripling to $2.5 billion in 2023, reveals GlobalData’s Drugs Database Pharma Intelligence Center.

Gilead Sciences reported a market capitalisation decline of 9.6 per cent over Q1 2024 primarily due to its drug Trodelvy (sacituzumab govitecan) failing to meet the primary endpoint of overall survival (OS) in the Phase III EVOKE-01 trial for previously treated advanced non-small cell lung cancer (NSCLC).

Chan concludes, “In response to the evolving regulations, the industry is shifting its focus towards increasing drug prices as biopharma companies prepare for the Medicare negotiated prices set to take effect in September 2024. Additionally, companies are strengthening their portfolios to address impending patent cliffs.”