(MENAFN- Investor Ideas) 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% in market capitalization from $3.8 trillion as on 31 March 2024 to $4 trillion as on 30 June 2024, reveals GlobalData, a leading data analytics and research company.
Ophelia Chan, MSc, Business Fundamentals Senior Analyst at GlobalData, comments:“Among the 12 companies that reported a positive increase in market capitalization, seven experienced a surge of over 10%. Notably, the top five companies maintained their positions from Q1 2024.”
Lilly retained its leading position, achieving the highest market capitalization growth of 16.3% 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% increase in the company's market capitalization. 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% increase in market capitalization, 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% increase in market capitalization, 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 capitalization growth of 11.5% 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.
Eight biopharmaceutical companies saw their market capitalization decline in Q2 2024. Bristol-Myers Squibb saw a 23.2% drop despite increased sales driven by its blood thinner, Eliquis and oncology drug, Opdivo. The company plans to cut $1.5 billion in costs by 2025 in response to pressures from the upcoming patent expirations and new prescription drug pricing structures under Biden's Inflation Reduction Act. These savings will be redirected to top drug brands and R&D programs to help offset revenue losses from its top-selling treatments.
GSK's market capitalization fell by 10.5% following a Delaware State Court ruling, permitting jury trials for cancer claims linked to the heartburn drug Zantac. At the beginning of August 2024, GSK resolved another Zantac lawsuit, with the jury ruling the company not liable for the plaintiff's colorectal cancer. Despite these legal challenges, GSK's Q2 2024 performance remained strong with sales of its specialty medicines in HIV and oncology more than doubling to $400 million.
Chan concludes: "The top biopharmaceutical companies remain steadfast in the face of ongoing macroeconomic pressures, drug price restructuring and impending patent expirations. These industry leaders continue to advance their R&D programs, with multiple approvals on the horizon, and many are strategically entering the rapidly growing GLP-1 market."
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Notes to Editors
Quotes are provided by Aurojyoti Bose, Lead Analyst at GlobalData
The information is based on GlobalData's Financial Deals Database
This press release was written using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData's team of industry experts.
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